New Britain Herald Newspaper, December 31, 1928, Page 13

Second Section BANKERS, BROKERS AND MANUFACTURERS PREDICT MANUFACTURERS OPTIMISTIC OVER BUSINESS PROSPECTS Leaders of New Britain In- dustry Forecast Sound i Conditions for Next Six ' Months at Least. ——— Manufacturers generally are en- eouraging in statements made to the Herald in connection with the out- Jook for business for 1929. George T. Kimball, president of the American Hardware Corp., ex- preases the belief that “business will be.equal to and, poasibly, a little bit more than for the first six months of 1928" although the corporation originally expected a slight decrease for that period. Charles F. Smith, chairman of the “‘Our opinion as to the New Year will probably coincide with many others, and is necessarily based on the past as an indication for the future. “The year 1928 was an improve- ment over 1927 in the volume of business, and as the year closes, our incoming orders warrants the belief that business is to continue at least as good as 1927 and, we believe, with prospects of some increase. “During the year we have made substantial progress on a new line that gives promise of increased business. There seems to us to be indications of a good, healthy busi- ness in the manufacturing line for at least the early months of 1929." J. J. ROBINSON ] board of directors of Landera, Frary & Clark, is conservative in his esti- mate, saying that “we believe that this country can reasonably expect & continuance of the business condi- tions that it has obtained during re: eent years.” C. F. Bennett, president of the Stanley Works, says that “fundamen- tal conditions are such that indica- tions for at least the first half .of 1929 appear to be good for continued prosperity in this country.”" Frederick M. Holmes, president of WNorth & Judd Mfg. Co., states that in spite of economic weakneases in some fields, “there is good reason ' to anticipate active business in the girst half of 1929.” Salesmen of the Hart & Cooley Mfg. Co. report that there is no pes- simism among their gustomers, J. H. Robinson, chairman of the board of directors of that corporation says, eoncluding with: ‘wouldn't be sur- prised if all of the manufacturers of New Britain are comparatively busy this coming year.” A. F. Corbin, president of the Union Mfg. Co. is optimistic, saying “there seems to us to be indications of & good healthy business in the manufacturing line for at least the early months of 192 E. J. Skinner, chairman of the board of directors of the 8kinner Chuck Co., shares with other lead- ers of industry the conviction that 1929 will be & sound business year. “We expect our plant will be more largely employed than at any time since the boom of war times” he says. Complete statements by the manu- facturers follow: GEORGE T. KIMBALL Prosident American Hardware Corp. “Replying to your letter of Decem- ber 21st, would say that, while our original estimate for the first half of 1929 would be about 7 per cent lower than for the corresponding period last year, we have now re- vised our plans and expect that the business will be at least equal to and, possibly, a little more than for the firat six months of 1928." CHARLES F. SMITH ‘Chairman of Board, L. F. & O. “If we can have as good & year in 1929 as in the year just ending we shall be satistied. We' belleve that i» all the country, generally speaking can reasonably expect. There are al- ways difficulties, embarrassments and hazards connected with = change in the federal administration of this country. These things we do not have now to reckon with and we belleve that this country can reason- ably expect a continuance. of the busincss conditions that have obtain- ed during recent years.” C. F. BENNETT President Stanley Works “In answering your inquiry of December 21, fundamentsl condi- tions are such that indications for at least the first half of 1929, ap- pear to be good for continued pros- perity in this country. “It this condition exists thers is mo reason why New Britain manu. facturers and merchants should not share in it, and it is my bellet that this will be the case.” FREDERIUK M. HOLMES President North & Judd Mfg. Oo. “It would be an exaggeration to state that conditions in all indus- trics are eminently satisfactory. There are still some depressed ones, such as coal, railroad equipment, textiles, which need help as much as agriculture does, and for the same reason, viz, the profitable disposa’ of their excess output However, fundamental conditions are sound. At present there is ne inflation in commodity prices, in- ventories are at reasonable levels, there is ample labor available, re- Iations between management and labor are harmonious, transporta- tion systems are functioning smoothly, competition for business is keen, interest rates for ordinary business purposes are not excessive, purchasing power of both agricul- tural and {ndustrial communities are strong. “There is g0ood reason to antiel- pate active business in the first half of 1929.” E. J. SKINNER Chatrman of Board, Skinner Chuck Co. *“This year has been satisfactory as to volume of business for our company, showing a large increase over the year 1927. “For the coming year we antici- pate a business of greater volume than 1928. In s0 far as we have heard from the trade the impression is that 1929 will show further in- erease. “We expect our plant will be more largely employed than at any time since the boom of war times. “Business in general will be good throughout the country, with labor Sully empleyed.” “Replying to your favor of De- cember 21 in regard to the outloox tor the early part of 1929, would say, that quite a number of our saleamen have been in their differ- ent territories and from reports coming from them, the prospects look very favorable for business for the first half of next year. “Records coming in show that not a single pessimistic report has been received from any of our job- bing customers. It seems they arc all preparing for a large business, if not an increased business, for the first part of the year. Most of them have already sent in considerable business for shipment after the firet of January. “We are cooperating in every way we possibly can with our jobbers, by keeping our prices nominally lcw and in this way enabling them to secure a tonnage that otherwise they probably wouldn’t be able to secure. “I wouldn't be surprised if all the manufacturers of New Britain are comparitively busy this §>ming year.” SEES LOGAL STOCKS ON SOUNDER BASES Developments Make for Progress F.R. . & Co. Statistican Says BY J. MORE GREENMAN, JR. Ass't. Statisticlan Fuller, Richter, Aldrich & Company Many interesting and significant events have occurred in the Hart- ford insurance stock market during 1928, but the most important devel- opment has only recently been an- nounced. It has long been realized that Hartford insurance companies would eventually follow the prece- dent established by New York com- panles of reducing thelr par valdes. New York insurance companies have so acted in order to gain wid- er markets for their shares, and with the purpose of exciting and re- taining public interest in individual companies to prepare for capital ex- pansion. Now it seems reasonably certain that Connecticut companies will follow the same procedure. The year 1928 has witnessed oth- er incidents, however, which indi- cate the sound and progressive de- velopment of Connecticut compan- fes, Three capital increases have taken place during the past year, namely, the increase in ‘the capital of Aetria Casualty & Surety from $2,000,000 to $3,000,000; that of the | Travclers from $15,000,000,000 to $17,500,000; and that of the Aetna (Fire) Insurance from $5,000,000 to $7,500,000. The Aetna (Fire) In- surance increase was the first change in this company's capital structure since 1910. These capital increases represented a distribution to stockholders O “rights” worth at average market quotations ap- proximately $58,750,000. It seems falrly certain that the 1928 annual reports, which will be- gin to appear in a little over a month, will establish 1928 as a record year for insurance stocks. Very substantial investment gains seem inevitable. Fire {insurance companies, moreover, because of the favorable fire loss records throughout the country, are expect- ed at least to duplicate 1927 under- writing results. The life companies furthermore have experienced a favorable mortality rate. Bank Stocks ‘While Hartford bank stocks ad- vanced in price during the spring of 1928, thess advances can hardly be called commensurate with those which took place in the New York bank stock market, nor were capi- tal increases, dividend increases and reduction of par values nearly so prevalent as among New York banks. A very significant development in local banking during the past year ‘has been the organization of secur- ity companies affiliated with the banks, formed for the purpose of handling the investment business of the company’s customers. The growth of security companies, a movement which is common to the whole country, should materially strengthen the position of the banks, and result not only in profits for the stockholders of the security companies, but also materially im- prove the bank’s earnings. Public Utllities ‘The outstanding event in the lo- cal public utility stock market dur- ing 1928 has been the reduction in the par value of both the Connecti- cut Power and Hartford Electric Light Companies’ stocks, and the NEW BRITAIN DAILY HERALD, MONDAY, DECEMBER 31, 1923, The most spectacular advance which has taken place in the locas industrial stock market during 1928 has been that if Niles, Bement, Pond Co. stock. This rise in price has, of course, been based upon re- ports of the profitable operations of its subsidiary—The Pratt & Whit- ney Alrcraft Corporation, combined with slightly better conditions fin the heavy tool industry. Niles, Be- ment, Pond Company selling around $30 last January was advanced to over $200 per share, and it has re- cently been announced that the Pratt & Whitney Aircraft, through exchange of stock will become part of a complete aircraft unit, consist- ing of a motor manufacturer, & manufacturer of aeroplanes, and a transportation company. Other industrial stocks, with the possible exception of Colts, have moved relatively little, though it is expected that 1928 will prove a profitable year, and that mamy of the New Britain companies will re- port increased earnings, BUSINESS SOUND, BANK DEAN SAYS A. J. Sloper Believes Congress Will Increase Tarili Rates BY A. J. SLOPER Chairman Board of Directors, New Britain National Bank In spite of the vast amount of money tied up in stock speculation, money conditions will remain easy outside the large cities, General business conditions appear to be sound, and for that rcason I think we may confidently expect a con- tinuance of good business for the next few months at least, The growing tendency of dealers to keep their inventories of mer- chandise down, and to buy from hand to mouth, does not help to Improve the profits of manufactur- ers, but it does insurc a fairly sta- blc business. As the purchasing power of the country is enormous and the capacity to produce has been so greatly increased, competi- tion is bound to be active and keen —and I think the fecling among manufacturers is that the tariff, on lines of goods manufactured in New England, should be increased avoid the dumping of forelgn goods, which is going on increasingly. For- tunately, the incoming congress can be depended upon to take care of that phase of tha situation. DIVIDEND CHECKS T0 BE DISTRIBUTED Brokerage House Expects Money Will Be Invested Again BY EDDY BROS. AND CO. The outlook for business in 1929 is very promising. All of the local manufacturing companies have end- ed 1928 with very satisfactory busi- ness and are all in excellent cash position. American Hardware, Landers, Frary & Clark, Stanley Works, Faf- nir Bearing, Hart & Cooley, North & Judd and George Prentice Mfg. Co., all declared extra dividends and th= New Britain Machine Co. has re- sumed dividends on its common stock. There will be more money distributed on January 1 than ever before and a large portion of this money should seek 'reinvestment—a great deal of it in New Britain se- curities. If, in the near future, the money market improves, we see no reason why the local stocks should not sell materially higher during the next 12 months. If, however, the money situation remains as it is at the pres- ent time, there may be a tendency for business to slow up. We confi- dently expect that money will ease up and become more plentiful in the near future. OUTLOOK BETTER THAN LAST YEAR increass in capital of the Connecti- eut Power Company, V. E. Attwood Sees Improve- ment if Money Is Not. Tight BY W. E. ATTWOOD If excessive use of money to finance unusual speculation in stocks does not unduly shorten the supply of money for the normal needs of business, 1929 ought to be a good business year both countrywise and locally. The local outlook seems much better for the coming year than it did in December, 1927. Hitchcock Loses Four Houses in Conflagration ! New York, Dec. 31 P — Four horses owned by Thomas Hitch- cock, jr., polo player, and one owned by Thomas McCreery, a trainer, were burned to death in a fire which destroyed the McCreery stables at Belmont park last night. The horses were valued at $30,000, the stable at $20,000. Matthew Connor, watchman at the Green Tree stable, died of a heart attack duting the fire. The Hitchcock horses, all less than one year old, arrived recently from England. (20 PURCHASING POWER OF FARMER GROWS Secretary Jardine Believes Agri- culture Is Regaining Strength ‘Washington, Dec. 31 UP—Ameri- can agriculture is in better shape than commonly supposed. ‘This is attested by the recent ad- vance in the purchasing power of its products, by its progress in me- crops and livestock, and by its in- creasing cooperative control over marketing. Each season inevitable sees the overproduction of certain crops, but agriculture as a whole adjusts sup- ply to demand with constantly In- creasing skill, as is evidenced by the fact that it has regained more than three-fourths of the buying power lost per unit of its products in the post-war decline. Great readjustments have been made in farm enterprises since the war, generally in & manner approv- ed by economic science and a vindi- cated by cash resuits. Farmers do not wilfully {ignore supply and demand conditions. Some branches of our agriculture have been expanded considerably since the war, but this is not necessarily for the expansion were ill-advised. Expansion and development are as good a ground for inferring health and vigor In agriculture as in other Industries. The progressive farmer puts his faith in sclence and mechan- ization, and thus armed, feels well equipped for the competitive strug- | gle. In large measure the recovery made by American agriculture from the post-war depression is the re- sult of the farmers’ energy and en- terprise. This should not cause us to conclude that no assigtance need be given. The post-war depression had complex economic and social causes, and the nation must accept |its share of responsibility dn seeking ln‘n"d applying sound and adcquate re- ef. It is well to bear in mind, never- theless, that the most powerful re- tion by the agricultural industry it- self, through increased efficiency. and a better adjustment of crop en- terprises to market requirements. Any governmental action that may be taken should strengthen and not weaken the curative influences themselves. 'BANKER PREDICTS PROSPERITY IN 2 E. N. Stanley Explaing Optimis- tic Outlook for Coming Year BY E. N. STANLEY President Savings DRank of New Britain Times are prosperous. Times are going to be prosperous during the year 1929. There are spots here ana there that do not bear out this statement, and there will be spots here and there during the coming year of which this statement will not be true; but as a general state- ment, applying in an all around way, this prediction is justified by the present outlook. The stecl business, which s con- sidered the keynote of .general busi- ness, is in a very prosperous condi- tion, the crops are good, exports are large, conditions in European coun- tries are rapidly approaching normal, and the people in the main are well employed at satisfactory wages. In- dividual house ownership is rapidly increasing and never was so large as at the present time. The class of people for which the mutual savings banks'were established (which em- braces a very large portion of tne community) is constantly saving, and savings deposits are increasing in almost all parts of the country. Notwithstanding the tendency to ex- travagant living and free spending, the increasing numbers of automo- bile owners ani the indulgence in othew articles of luxury (which, of course, from one angle are contri- butions to increased business and prosperity), nevertheless the great masses of the pple are thrifty and it ‘cannot be said of the present that the “rich are growing richer and the poor poorer.” Today the poor are growing richer. There 1s, of course, the menace of the rank speculation in the stoea market, with its attendant increase in the rate of interest for borrowed money, which in itself is a serious handicap to all legitimate business. This situation, however, is bound to correct ‘tself and probably without disaster except possibly to the speculators themselves. Another handicap which business and the people are suffering is the attitude of the Treasury Depart- ment of the government toward re- duction in the income tax. This tax is & serious burden to business ana should be lightened, I believe, more rapidly than it has been. An income tax is universally recognized as m war measure and should not be continued . indefinitely in peace times. Every time the matter of tax reduction comed up the Treasury Department predicts a diminishing revenue surplus and insists upon very meagre reductions, but year after year the government closes the fiscal year with very large sur- pluses. The national debt is being reduced by a billion dollars or more & yoar and, at the rate it s being chanization, in that improvement of | evidence that the farmers responsible | medial agency has been set in mo- | brought Into play by the farmers! pald, will be entirely wiped out within fifteen years. This is not fair to the present generation. It im- poses an unnecessary and unjusti- fled burden upon this generation. The payment of ‘this national debt should be distributed over a long- er period and the coming genera- tions should be made to feel a little of the sting of war and perhaps thereby keep out of war, In al proposals to foreign countries for the settlement of their debt to this country & period of sixty-five years or thereabouts s named as a short cnough period within which they should extinguish their debt. It would seem that the attitude of the government should at least be as considerate of its own people as of the people of foreign countries and adopt a policy of more rapid relief of this burdensome tax upon all business and, indirectly, upon an the people. NVESTMENT FIELD FUTURE PROMISING High Grade Opportunities Ex- pected to Present Themselves By J. M. CHERNOFF President Fidelity Industrial Bank NEW BRITAIN HERALD SOUND TRADE ERA FOR SIX MONTHS Brokémge House Analyzes Pros: By PUTNAM & CO. The year 1928 will doubtless go down in history as one of the most | interesting in financial circles. At {the outset there was great actlvity, {both from a speculative and invest- ment standpoint. High grade in- | vestments such as bonds and pre- iferred stocks were in tremendous demand, and rapidly enhanced in | market value. As time went on the | speculative interest in the market | became more and more pronounced, with trading on the New York stock exchange in unprecedented | volume. Interest on the part of the public was country-wide. For the first five months prices advanced vigorously, with the result that a great many individuals had huge paper profits. However, during th |month of May credit began to {tighten and rates for money ad- |vanced, and it was inevitable that the market should ultimately have to recognize these conditions, with American business is closing its books for the year with new records to its credit. The general level of busineas activity prevalent in recent lmonthl forccasts a more favorable (start for the New Year than was {the case in 1928. Industrial trends in the fall of 1927 were downward. This year the tendency was upward. The resulti upon to mdintain the present com- paratively high position of the im- months of 1929, The record actlvity of the steel in- dustry in 1928 constituted one of the strongest factors in the general busi- ness situation of the year. The history of past security mark- ets reveals the fact that interest rates over the long pull do not af- ifect the normal market. have often risen in the face of high rates and have often declined when money was easy. Where corpora- tions are showing good earnings thelr stocks will sooner or later {show a corresponding increase in priccs. However, high money rates have the effect of discouraging ex- pansion and new ventures. This in turn sooner or later causes a leth- argic industrial situation, Another favorable stock market factor is the continued pronounced trend for further consolidations. It would not be surprising to see a greater concentration of capital in the rubbers, olls, automobile and su- gar industries. With these prospects in view security prices will show corresponding advances with the progress of industry. Hectic and stupid speculation will be discourag- ed and once again stocks having merit will advance, in banking, {investment securiti and younger industries. The avi tion industry, amusement enter- prises, radio manufacturers, the ray- on industry, chain store systems in newer fields, the electric refrigera- tion Industry, all have expanded their production and sales, strength- ened thelr financial situation, adopt- ed more efficient operating methods. and introduced better products. All of these industries will show a much larger growth. The success of the Investment trust movement has been due in no small measure, to the application of scientific, expert, consistert inteldi- gence to Investments in common stocks. « It ould he remembered, how- ever, that the experience of the automobile and the petroleum indus- tries has shown that as youthful in- dustries grow many of the ploneer |companies fall by the wayside. Par- ticipation in the growth of a new industry may bring enormous re- turns—and it may bring loss. Sound jjudgment must be exercised if suc- cess is to be assured by investment of funds in a new and growing busi- ness. Many high-grade investment op- portunities will present themselves during 1929, and systematic invest- ment is the foundation of financial independence. The purchase of a well-diversified list of outstanding common and preferred stocks will assure the largest return upon capi- capital appreciation, Judge Fahey to Retire In Rockville Today Rockville, Dec. 31 P—Judge John E. Fahey, who has been associated in the police court since 1907, and judge of probate for 20 years, to- day, brought his official duties to a close as he will be retired tomor- row under age limitation of 70. At the recent election C. Dennison Talcott, former senator and repre- sentative, and well known manufac- turer, was elected judge of probate, and the governor has appointed Ed- gar B. Dawkins, & Yale man, to the city court office. Dead Girl Formerly Lived in Torrington Waterbury, Dec. 31 (P—The Miss Alice Judd who was killed in a grade crossing accident at Kenosha, Wis., yesterday with four others, was daughter of Clark 8. Judd, for- merly of Torrington, and now vice president of the Kenosha Branch of the American Rrass company. Word to this effect came to John A. Coe, Sr., president of the American Brass company. The Judds went west about 12 years ago. Miss Judd was & college student. momentum is counted | portant barometers during the early ' 8tocks The year 1928 has been a year of | material and outstanding progress | tal funds and greatest possibilities o? | the result that during June and {July there was a substantial reac |tion in prices. For a while in both | speculative and investment circles |dullness was the outstanding fea- (ture. Late in August activity again began on a large scale, and after a few weeks transactions on the New York stock exchange were in such volume that the ticket tape was frequently one hour behind in | printing quotations. These condi- itions continued until late in No- vember and early December, when another fairly substantial price re- action took place. The year closed however, with spcculative activity on a large scale. Perhaps the clear- est picture of stock exchange ac tivity can be h~d through the fol- lowing figures: As of Deccmber 29. the total sales in 1927 were 575.- 866,675, For the same period in 1928 the number of shares traded in was 912,975,612, It is exceedingly hazardous to make any prediction regarding the future. The one thing that both bankers and brokers are watching most carefully is money. Naturally iat the close of the year rates are very high, call money going to 12 per cent and outside loans be- ing made as high as 15 per cent. However, tight money and high rates have been more or less in ef- fect for the past six months, and the market has apparently ignored !them. There is a limit somewhere, | !and with brokers' loans still over | the five billion dollar mark, it would seem as though an abundant sup ply of credit for stock speculation iwas not only improbable, but im- | possible. We feel that many invest- ment {ssues can be bought today on !most attractive terms. As far as speculative commitments are con- cerned, we think these should be made with the utmost caution. From all the reports we hav» read, it would seem as though gen- eral business during the coming six imonths at least will be most satis- factory. Beyond that hardly anyone year a great many kinds of busi- ‘ness have been exccedingly pros. | perous, and recently there has been a noticeable improvement in some other lines such as the textiles, which is most encouraging. MERGERS FEATURE MOTOR INDUSTRY Big Consolidations Combine (Gapital and Factory Facilities Detroit, Dec. 31, P—A concentra- tion of production capacity in the consolidation of various companies, with assets totalling well over half | billion dollars, marked the year {1928 in the automobile industry. The {year brought no outstanding me- chanical changes that would indicate any definite trend away from pres- ent day standards. What changes have been made |in motor cars have been chiefly in body design and a tendency to fully equip cars from bumpers to wind- shield wipers. The changes in body ;dcfligl\ ‘have been to give the auto- | mobile & more massive appearance | with little, if any, alterations in chas- ‘lll. Larger radiators also havt made their appearance carrying out the ‘lmpr:ulon of ‘“larger” cars. Afr cleaners and ofl filters have been made standard equipment on many cars, and even the Ford company this year went in for fully equipped products. Four Cylinder Car Going Elimination of more four cylinder cars in favor of the six-cylinder mo- tor also was noted during the past | year, and automobile authorities say | that 1929 will see only two four-cyl- |inder cars In production. In the more than half billion dol- {lars in assets effected by mergers iand consolidations, the Chrysler- {Dodge Brothers, Inc., union, an- nounced May 29 last, led the way \W‘Rh tangible balance sheet assets of itime the consolidation was announc ed the two companies had stock out- standing valued at $450,000,000, ac- ;cording to New York stock exchange | prices. Next in line in the tendency to- ‘ward closer- unity of production fa- cllities was the merger of the Stude- \ i Early in September the dares to predict. During the past | |approximately $235,000,000. At the | | baker and the Pierce-Arrow compan- | tes. Plants, properties and other as- |scts totalling $160,000,000 were in- !volved. The merger was approved | by stockholders of both companies |late last June. A most recent consolidation of sizeable proportions was that involv- ing acquisition of Chandler-Cleve- land Motors corporation by the Hup; | Motor Car corporation, with com- WJ(S 0‘ BI]SiCSS COI]dlfiOIlS | bined assets at the time, November 30, of approximately $130,000,000. Auburn Automobile company of Auburn, Ind., announced it had acquired u controlling interest in the Lycoming | Manufacturing company of Willlams- port, Pa.; Duesenberg, Inc., of Indi- |anapoli¢, and the Limousine Body Co., of Kalamazoo, Michigan. Totai assets of the four companies con- cerned were estimated at approxi- mately $14,000,000, While these consolidations and mergers that gave group strength agoinst competition of the larger producing organizations were being effected, one large concern, Velie, of Moline, Ill,, announced discontin- uance of motor car production and entry into the airplane business. BUILDING AND LOAN BUSINESS 15 VAST 113,000 Associations Pay $375,-. 000,000 Dividends During Year The beginning of the new year, will mark the winding up of one of "the largest financial melons ever cut by any business in the United States, | ' when 13,000 building and loan asso- | |clations, homestead companies and | cooperat:ve banks, conclude dividend | payments of $187,500,000 for the last | six months of the year. | | The sams institutions paid out & 'similar sum in interest and divi- dends for the first half of 1928, mak- 1 ing a total for the year of $375,00,- 000, which went to 12,000,000 stock. | holders and depositors. People in ev- ery state in the United States shared in the distribution of this immense Ifuna, according to the statement just made public by Herman F. Cellarius, | Secretary of the U. 8. League of bn»‘ cal Building and Loan Associations. Pennsylvania got the lion's share of the interest and dividend distri- bution, more than $60,000,000 being distributed among 1,776,000 people in that state. Ohlo depositors and stockholders, numbering 2,282,000 were paide in excess of $50,000,000 in interest and dividends during tha |year. Other states sharing richly in the distribution included: New Jersey. Massachusetts, Illinois, New York, California, Wisconsin, Loulsiana, Missouri, Nebraska, Michigan, Kan- | sas, Oklahoma, Washington and | Maryland. Building and loan associ- ations in other states distributed substantial amounts. Largest in History Interest and dividend payments by building and loan associations for the past 12 months were the largest in their history and marked one of the most successful years ever en- joyed by these institutions, accord- ing to Mr. Cellatius, Despite incrcased money rates in Wall Street, building and loan asso- | ciations throughout the United States did not increase thelr rates| to borrowers during the year, an.x{ in many instances lowered them. Sconomical management, according |to Mr. Cellarius, permitted these in. | stitutions to operate on a margin averaging one and one-half per cent ! |profit, which was sufficient to pay depositors and stock holders a high- | cr rate than most other financial in- |stitutions and yet afford home buy- ers and builders an incxpensive way f home financing. | More than two billion dollars was | loaned to home owners during the! |vear, which was used to finance ap- | proximately 700,000 new homes, | |giving shelter to 3,500,000 people. | | The beginning of the new year. !according to Mr. Cellarius, will find home financing institutions in the | United States well supplied with | money to fifance the usual spring: building program. The predicition was made that residential construc- | tion during 1929 will continue apace | with the record set during 1928, | when building and loan associations | financed more homes than in any other similar period in their history. VOLUNE INGREASE. FOR EARLY MONTHS {Paul K. Rogers Believes Efficient | Business Will Prosper BY PAUL K. ROGERS President City National Bank The indications are that the first few months of 1929, at least in {most lines should be showing as | §ood volume, if not somewhat bet- ter than the closing months of 1028, A business that is run efficiently undoubtedly can look forward to fairly goed profits. Changes in the demands of the public however are 130 rapid that it is necessary for a | merchant or manufacturer to keep | his inventory low enough to secure & rapid turnover, and also to con- form promptly to changes in style and to new improved methods if he is to show satisfactory results. PROSPERITY BUSINESS LEADERS HOPEFUL FOR 192 Advance in Living Standards Anticipated as Nation Grows New York, Dec. 31, (P—Promin- {ent American business men and fin- | dustrial leaders tell the Associated | Press 1929 will be a prosperous year—It business and industry apply |the same intelligence, encrgy’ and i(oren.m displayed during 1928. Reviews of the trends of 1928 and outlines of the prospects of 1929 {written exclusively for The Associ- |ated Press by naarly 200 heads of corporations and trade organizations representing 75 different industries ,Indicate there is nothing in general | economic conditions to create any ex- | pectations of either depression or a slowing down of business progress. They look for further mergers and consolidations in virtually every fleld as an economic necessity, but believe the new organizations will promote efticiency in production and distribution. They see furthe advance in living standards resulting in vastly increas- ed demand for American-made pro- ducts and a substantial gain in for- eign trade. They belleve this country | steadlly is growing in world import- ance, with its industries and busin- esses keeping pact with the progress such leadership implies. Industries which felt depression during 1928 appear to have ascer- tained the underlying causes of their economic illness and are ready to take the prescribed treatment which will rectify the situation in 1929. Some industries are asking greater public intercst, more—or less—legis- lative assistance or a change in the scheme of things through which fate has given them something of an un- fair deal. But all seem to expect even unfavorable conditions, and these seem largely to be local rather than general, to change for the bet- ter in the new year. Forecast By Edgerton John E. Edgerton, president of the Natlonal Assoclation of Manufactur- ers, makes the following statement: Drawing a picture of the business ahead for 1929, of all parts of the Country—and it has been my good fortune to have visited every section of industrial America within the last few months—I can say, with a great deal of conservatism, that I believe we are going to advance along the same plane of good business, or bet- ter, that we have had during the passing year. On all sides of me I have found heads of industry who are content with the volume of busi- ness they are doing; the great ma. Jority are optimistic, although many of them are expecting-something of & shading off in prices. Only in a few places have I found forebodings. Ono or two of our industries are suffer- ing heavily because of the trends in our everyday life. But, somewhat off- {setting these, I have found numer- ous extensions in the newer indus- tries that have transformed some of |these losses into gains. Contrary to the general impression that the coming into office of & new president means a general shaking of business, I believe we have every reason to be happy and confident that the incumbent who will take {his seat in March will do nothing to disturb our {ndustrial equanimity. His accession to the Presidency might be likened to the advancement of a sub-executive of a great corpor- ation, with which he had been for years, to be chairman of the board. By reason of being head of thé De- partment of Commerce for nearly ten years, he has had his fingers on the pulse of industry and business, He has made his cabinet office one of intimate association and under- standing of the problems of industry and business, not only of his own country, but of the world at large He has had numerous committees of close contact constantly function- ing. He takes to the White House the widest industrial and business background. And in addition, as Food Administrator during the War, he had further actual experience with various of those larger admin- istrations that lead into the White {House. I think we have every rea- son to rejoice in the outlook for the new year.” 300 Jailed in Whalen’s Latest Campaigning New York, Dec. 31 () — After another week-end round up in Com- missioner Whalen’s anti-crime cam- paign, 300 suspects were in jail to- day. 8ix men wanted for homicide, one accused as a counterfeiter and a mall robbery suspect were sald by police to be the most important catches, Others faced larceny, felonious assault, pocket picking and lemser charges. Raids on speakeasies and . other hangouts of undesirables and sus- pects were begun by detectives be- fore sundown Saturday and con- tinued all night and through & large part of yesterday. In all but & few cases magistrates ordered those arrested held without bail. PROHIBITION MEASURES Manchester, Dec. 31 (M—Legisla- tive matters will be followed in be- half of the Connecticut prohibition state committee by Louis 8t. Clair Burr, of this town who was chosen Saturday to be temporary state chairman to fill the vacancy caused by death of E. L. G. Holénthal. Mr. Burr has been of the com- mittes and familiar to large degree Money rates are high and undoubt- edly will continue so as long as th present extreme activity in the stock market is maintained. with the work Mr. Hohenthal did. READ HERALD CLASSIFIED ADS