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Evening star. [volume] (Washington, D.C.) 1854-1972, December 22, 1929, Image 77

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WASHINGTON BANKS
ENDINGGOOD YEAR
Dividend and Bonus Declara*
tions Show Prosperous
Condition.
BY EDWARD C. STONE.
Dividend declarations during the past
few days, Including several extras and
bemuses, indicate that Washington banks
*re winding up a particularly good
year. For the first 10 months bank
profits reached record proportions and
indicated the 12-month earnings would
establish a new peak. Local bankers
say that the stock smash and the de
cline in business in November and De
cember have prevented a new high rec
ord in earnings, but that profits will
almost equal those of 1928. And 1928
was considered the best year the banks
in Washington have ever enjoyed.
One of the most important dividend
announcements of the past week came
yesterday, when the directors of the
Lanston Monotype Co. met and declared
a regularly quarterly dividend of $1.75
a share Instead of $1.50, and then voted
a 25-cent extra disbursement. This ac
tion raised the dividend rate from 8
per cent to 8 per cent, provided the
25 extra is declared each quarter. Lans
ton stock is very widely held in Wash
ington and the advance in the dividend
rate caused great satisfaction. Both
dividends are payable February 28 on
•tock of record on February 18.
The higher dividend will make Lans
ton stock yield about 7.3 per cent. Listed
on the local exchange, 3,063 shares have
already changed hands this year. The
stock opened the year at 120, went to
132‘4, dropped to 105 and sold last at
110.
The latest Christmas bonus for bank
employes is announced by the Columbia
National. The president. Frank J.
Stryker, delighted the hearts of his
faithful staff when he gave away the
secret yesterday, stating that on "top
of a good year, the directors of the
Columbia National Bank have voted a
full month’s salary to all the employes
—of the bank.’’
As David Friday Sees 1939.
"What may we expect in 1930? That
depends,” says David Friday of Wash
ington. in the Bankers’ Magazine, “first
of all upon the extent and duration of
the decline in industrial production.
The Harvard Economic Service in its
November 16 issue sums up its view to
the effect that, “a severe depression like
that of 1920-21 is outside the range of
probability.” But, something more than
a mild recession such as that which
occurred at the end of 1927 is already
certain. This means that the only
forecasts worth considering are (1) a
severe recession lasting a few months
longer and followed by recovery; and
<2) a mild depression lasting at least six
months and not so promptly followed
by a return to prosperity. Precedent
favors the first of the alternatives and
makes it premature to forecast a
depression.
"If these two groups of predictions
come true we will experience a depres
sion more severe than in 1927 but less
serious than in 1924. It will probably
carry the index of industrial production
down from 126, its highest point, in
June. 1929, to 105. The average level
for the year 1930 should not fall below
that of 1928, which was 110. This was
the highest for any full year up to that
time. In 1929 it will average 120 even
with the recession which we are ex
periencing at its close.
"Under these conditions the profits of
all corporations will fall. But even if
they decline by the same per cent as
in 1924. they will still be well above
the total dividends paid in 1929. The
corporations will, therefore, be able to
maintain their dividends on the high
level of the current year if they choose
to do so. In the depressions of the
last eight years they have never allowed
them to recede.”
Saturday Trading on Exchange.
Trading was dull on the Washington
Stock Exchange yesterday. The only
bond transfer was a $3,000 sale in Ana
eoetia St Potomac Guaranteed 5s at
BVA.
Twenty shares of Liberty National
Bank stock changed hands at 215, same
as the last sale. Fifteen shares of
Munsey Trust Co., a stock that appears
only rarely on the exchange, sold yes
terday at 155, while two shares of Park
Cavings Bank stock moved at 85.
There were three 10-share sales in
Mergenthaler Linotype at 106*4. ex
dividend; 79 shares of National Mort
gage St Investment preferred brought
4*4 and 140 shares of Real Estate Mort
gage St Investment preferred registered 7.
The stock sheet shows that nearly
all the bank stocks in Washington and
many of the miscellaneous issues are
now selling ex dividend. The reduction
during the week of the dividend on
Capital Traction, to 6 per cent, caused
that stock to sell off about a point.
Pale’s Recommendations Grip Attention.
Local bankers were intensely in
terested in Controller Pole’s annual
report made public yesterday. The most
important general recommendation
favors the extension of branch banking
which he advocated at the last meeting
of the American Bankers’ Association.
The controller’s case for extension
of branch banking is based upon the
apparent strength of large system bank
ing in the post-war period against weak
ness of small operating units which lack
diversified service.
"Banking,” he says, "is following in
the wake of the trend of business in
general toward larger operating units
with stronger capital funds and more
experience and highly trained manage
ment. The natural result has been that
the larger cities are being favoree with
banking organization of great financial
stability with the capacity to render a
better and more diversified type of serv
ice.
"In the principal cities, therefore, in
various parts of the country, there have
grown up through mergers and through
increases in the variety and volume of
business banking Institutions which for
strength of capital and management
technique were unknown in the pre-war
period. There have been no failures of
any of these types of metropolitan
banks. These banks comprise both unit
and branch banking systems.
“The aggregate of all banking re
sources in the United States is $72,000,-
000,000, held by a little more than 25,000
banks as of June 29, 1929, but 250 banks
hold resources to the aggregate amount
of about $33,400,000,000.
January Advance Held Likely.
No drastic decline in actual consump
tion has taken place nor is it expected,
say Hornblower Sc Weeks in their De
cember Investment Review. While there
seems to be much uncertainty generally
. as to the business outlook for the early
months of 1930, fundamental conditions
remain sound and we are inclined to
feel that the market will experience its
usual January advance, but sustained
improvement is not likely to occur until
late Spring.
Regarding the bond market. Horn
blower Sc Weeks say that it has not
fully reflected the stimulus of generally
easier credit conditions. “The bond
market as a whole appears to have re
sisted sustained rallies, meeting realiz
ing sales on almost every advance. Such
action indicates a continuation of sales
to protect margin accounts and probably
selling to take advantage of lower stock
prices.
“While the next few weeks may show
further hardening of money rates due to
Christmas and year end movement of
funds, we would expect bond prices to
show gradual improvement after the
turn of the year.”
Gleaned in Financial District.
Bank clearings in Washington for the
week endin'? December 19 totaled $28.-
100,000. ag~ ■ $28,503,000 in the pre
, [ flous week, dealings here were 9.3
T FINANCIAL I
Radio Orders Large
Despite Stock Drops,
Leading Dealer Says
CHICAGO, December ll.—One
of the leading radio manufac
turers announced today that it
had on hand orders for 1,306,000
sets to dealers in 1930.
This is taken as an answer to
those who had been looking for
a drastic curtailment in luxury
lines, particularly in radio. It
had been expected that if any
commodity suffered this would be
the one to bear the brunt of the
slump in stock prices.
"When we resume operations on
December 26 we will start manu
facturing 4,000 sets a day,” the
president of the concern said.
"We estimate our business for the
fiscal year ending May 31 will
reach approximately $70,000,000.
In the previous fiscal year sales
were only $49,318,000.”
NEW BONO ISSUES
AT RECORD FIGURE
Total of $225,000,000 for
Week Establishes High
Mark in Year.
Special Dispatch to The Star.
NEW YORK, December 21.—New
bond financing to the amount of $225,-
000,000 featured the investment market
in the past week. This is the largest
amount that has been brought out in'
one week this year. The largest pre
vious total was $196,327,000, In the week
of October 11, which Included the SIOO,-
000,000 of 5 per cents by the Texas
Corporation.
Last week's total of $99,000,000 was
insignificant by comparison, when it is
considered that it included $65,000,000
of New York City bonds.
Bond trading Is now in a better posi
tion than it has been previously this
year, with new offerings finding ready
buyers at prices favorable to municipals
and other legal types which must ob
tain a yield being 4 and 5 per cent.
Offerings Listed.
The largest offering was one of $41,-
000,000 of 4>/a per cent of San Fran
cisco. The money is required for the
purchase of the Spring Valley Water
Co. system. Bonds had been offered
some weeks ago at a time when, owing
to market conditions, dealers were un
able to make the necessary par bid.
They lay on the shelf until this week
and the city was considering the rais
ing of the coupon Tate by means of a
referendum when a syndicate headed
by the National City Co. came forward
with a satisfactory bid.
Next in size was an offering of the
Canadian Pacific Railway of $30,000,000
of 5 per oents. These were offered to
the public at par and are payable on
the due date (1054) either in Canadian
or American funds at Montreal or New
York.
Municipal offerings accounted for
about half of the week’s total, Mont
real putting out $18,300,000 of 5 per
cents and Chicago $7,275,000 of « per
cents.
Other sizeable issues Included: Mil
waukee Electric Railway St Light Co.,
$10,000,000 of St; Union Electric St
Power, $15,090,000, and Illinois Power i
St Light, $5,000,000, The balance was
made up of small Insular loans, mu
nicipals, Industrials, rail offerings and
public utilities.
Foreign Loan. •
There was one foreign loan. The
Province of Buenos Aires sold $5,000,-
000 in 6’4s in New York. This la the
first South American loan here in some
months, but It does not indicate,
traders think, the reopening of this
market to the flotation of large
amounts of South American financing,
such as wax the cast In the immediate
post-war period.
The market Itself had a poor week
In point of activity and price < range.
Each day the list dropped a little, with
a slight recovery Wednesday, until on
Friday both the domestic and foreign
lists reached a low average for the
month. However, both sections are
still about two points above the low
average for the year.
Money tightened a little at the end
of the week under pressure from a
falling stock market, and this, com
bined with the tax jelling Incidental
to the year end. brought some liquida
tion. Late Friday afternoon there was
a moderate amount of distress selling
as equities went to their lowest levels
since the recovery from the November
crash.
Argentine government issues, with
the loans of the Argentine cities and
provinces, were in the spotlight in the
middle of the week when President
Irigoyen ordered the conversion office
elosed in order to stop lurther gold
exports. These bonds went to new low
levels for the year, but made a partial
recovery on Thursday and Friday.
Argentine is considered the strong
est of the South American Republics
in a financial way, and her 6 per cents
have always sold at or near par, so
that the panicky selling of Wednesday
was considered ill-advised. Other
South Americans were lower in sympa
thy. duplicating their action In last
month’s crisis, when they were thrown
into the market for what they would
bring.
European descriptions were firm most
of the week and on Friday made some
substantial gains In the face of a lower
tendency in the rest of the list. There
was some favorable new s to aecourt
for this.
Problems Abroad.
France’s financial condition, of
course, continues to improve, and as
a matter of fact French issues h v»
sold at or near their highs of th- year
for about a month past. In Germany
the economic muddle consequent on
the Berlin Bourse's decline has been
shaped Into something resembling
order, and the Reichsbank has deci ied
to make a loan to the government of
$79,200,000, drawing on its New York
credits for this purpose. In return
the government hat undertaken to
stabilize the national finances.
In Austria the government has suc
cessfully negotiated a $100,000,000
credit, and Spain sold out her internal
loan, to take care of New York and
London credits of last year, soon after
the books were opened.
Der cent below the corresponding week
last year.
Christmas decorations adorn most of
the local banks. Some of them are more
attractive than ever and show a great
deal of care in preparation. The trees
are particularly attractive.
R. H. Aishton of Washington, con
nected with the American Railway As
sociation, and Arthur J. May, of this
city, of the National Hardware Asso
ciation. have been’ placed on the ad
visory committee of the National Busi
ness survey Conference.
Easier money rates, expected during
1930 ss a result of the decline in stock
prices, should encourage building con
struction. as well as Federal. State and
municipal improvements, thus mate
rially aiding the cement industry, ac
cording to the Fortnightly Review of
G.-M.-P. Murphy St Co.
Volume of money turnover during
week ended December 14. as measured
by check payments, was lower than in
'•ither the previous week or the corre
sponding period of last year, according
to the Department of Commerce.
Harry C. Butcher, chief assistant to
the executive secretary of the National
Fertilizer Association, has resigned to
become Washington representative of
the Columbia Broadcasting 4system.
THE SUNDAY STAR, WASHINGTON, D. C., DECEMBER 22, 1929—PART SIX
STOCK PRICES LOSE
PART OF RECOVERY
Market Affected by Pessi
mistic View of Traders.
Business Sound.
BY CHARLES F. SPEARE.
Special Dispatch to The Star.
NEW YORK, December 21.—1 t has
been a discouraging week in the mar
ket for those who held stocks through
the Autumn break and for the banking
pool that supported it at that time;
also for the recent "bargain hunters.”
Prices have been dropping on small
volumes of sales until Friday, when the
turnover in a session that was con
spicuous for its substantial net de
clines surpassed that of the previous
week, when the averages touched the
high point of the recovery.
The market is now 25 points lower
than on December 9, but 30 points
higher than on November 13. One
prominent stock has fallen well below
its former low price. Others have ap
proached uncomfortably near it.
Undue Pessimism Rules.
Wall Street is always overconfident
or unduly pessimistic. It had been for
months placing the emphasis on busi
ness profits, mergers, "split-ups,” trad
ing corporation purchases, the public's
preference for common stocks over
bonds, the financial supremary for the
United States, etc., and translating all
of these Into extravagant stock valua
tions. Now it lends its ear only to
rumors of business failures, the predica
ment of overextended trading com
panies. the effect on money of a loss
of part of our $3,000,000,000 gold, etc.,
and tells its “equities” at a 40 to 50 per
cent decline from the prices at which
it rushed to buy them four or five
months ago.
It is now admitted that the market
was rushed up too rapidly after the
break and that it is feeling the effect
of this false start, which gave the bear
element an opportunity to resume its
operations and the pools the advan
tage of prices on which they could sell
at a profit. The decline has been as
sisted by the heaviest selling to estab
lish losses for income tax purposes since
1924, by the receivership for one much
exploited and mismanaged company, by
the financial troubles of another whose
commitments during a period of pros
perity are slowly being worked out, when
more attention is being given to im
mediate returns on investments than
on long-term possibilities.
Gold Shipments Are Factor.
Other factors that have led to de
clining stock prices are heavy ship
ments of gold to France, the dramatic
action or the President of the Argen
tine government in closing the gold
exchange office and thereby forcing
Argentina off a gold basis, unsettlement
in the leading American commodity
markets, the sharp drop in the per
centage of iron and steel production so
far this month, with predictions of a
further decline before the end of De
cember, and a hardening in money
rates In anticipation of the currency
requirements during the holidays. Rail
road earnings for November that have
been reported indicate traffic losses both
in the agricultural and Industrial sec
tions of the United States.
The financial and business situation,
however, has had its brighter aspects.
All of the evidence goes to show that
holiday trade has held up well in spite
of the fact that the weather over large
areas this week has been most unfa
vorable for it. Corporations and busi
ness firms have been recommending the
Kyment of bonuses to employes on as
ge and. in many Instances, a higher
basis than a year ago. Not so many
dividend Increases have been announced
this week as a week ago. but none of
importance has been reduced or passed,
and scores are daily being reported from
all lines of business that must by this
time have had some indications as to
whether they suffered from or are to
be materially affected by the stock
market panic.
New Financing Heavy.
The total volume of new financing
this week was the heaviest for the yesr,
with practically all of the $225,000,000
offered for subscription in the nature
of high-grade bonds or preferred stocks.
This contrasts with what has been hap
pening since January. In the 11 months
to November 30 over 50 per cent of the
entire corporate financing arranged was
in common stocks, with the ratio of
junior to senior securities in the four
months between June 30 and October
31 nearly 75 per cent. So complete has
been the change in sentiment that, in
November, the amount of new stock of
fered by finance companies was only
$3,435,000, compared with more than
$1,614,000,000 in the previous four
months.
The securities now being sold are of
a kind that lend themselves to con
servative investors. They are being rap
idly absorbed. Nearly all are of do
mestic origin. Not until there is greater
improvement in the American bond
market can there be any hope for re
suming the issuance of dollar bonds.
Every week there seems to be some
new episode In foreign finance or politics
that makes it just so much more dif
ficult to interest Investors in the se
curities of other countries. The ex
posure of the German government's
deficit last week was not encouraging
to the American holders of 110 Issues
of German dollar bonds aggregating
$1,100,000,000. The Argentine incident
was highly disturbing to American in
vestors in the score of Argentine gov
ernment, municipal and provincial loans
held in this country in the amount of
$365,000,000. Prom time to time in
recent months there have been de
velopments of a political or economic
character elsewhere that have shaken
confidence in the obligations of other
South and Central American states. Os
Brazilian loans $360,000,000 have been
sold here. Loans of Chile aggregate
$220,000,000; of Colombia, $160,000,000;
of Peru, $110,000,000, and of Bolivia,
$75,000,000. On the total dollar loans
to South and Central American coun
tries of $1,250,000,000, the shrinkage
from the original subscription averages
between 15 and 20 per cent.
All of this has a relation to our ex
port trade, which has been stimulated
by foreign loans to the benefit of the
exporter, but which have so far been
a poor investment for the individuals
who purchased them at any time within
the last two years.
Rail Consolidation Helpful.
The rail consolidation plan reported
by the Interstate Commerce Commis
sion should be a helpful influence, al
though the main features of it have
been given wide publicity in advance.
It at least offers the carriers a means
of getting together and endeavoring to
adjust their views to a set of official
recommendations for merging inde
pendent lines with groups already in
existence or to be created. It will
necessitate sacrifice by some roads in
order to strike a better balance between
the lines in their territory. The con
test which It revives will be mainly
in the East, for comparatively little
change la recommended west of the
Mississippi River.
| Railroad men have claimed that at
I least $1,000,000,000 of new construction
j and betterment work is being postponed
from lack of a merger plan, as they
were not willing to put new capital into
| their own properties when a new
scheme of consolidation might give a
portion of them to a competitor. There
is an opportunity now for the exercise
of more statesmanship in working out a
plan than has been witnessed the last
few years In Eastern railroad circles.
From a market standpoint, immediate
benefits of the consolidation plan can
hardly be expected.
Week’s Financial High Lights
Special Dispatch to The Star.
NEW YORK, December 21, 1925.
This Week. - Last Week.
High. Low. High. Low.
Stocks (average of 50 shares) 208.58 202.65 216.97 209.58
This Week. Last Week.
Bonds (average of 40 issues) 86.06 87.10
Foreign bonds (average of 10 issues) 106.56 105.61
This Week. Last Week. Year Ago.
Federal Reserve ratio 69.3 71.6 64.5
Money rates in New York: This Week. Last Week.
CaU 4*4 to 5 4*4
Time 4% to 5 4% to 5
Month of Month of Month of
Nov., 1926. Oct.. 1929. Nov., 1928.
Unfilled steel orders 4,125.345 4.086,562 3,676.000
Pig iron production 106,047 115,745 110,084
Building permits;
Number of cities 587 584 587
Amount $191,798,495 $250,583,028 $268,455, 135
Commercial failures (R. O. “Dun St Co. reports):
Number 1.798 1.822 1.836
Liabilities $52,000,005 $31,314,000 $40,600,000
Revenue car loadings: Week of December 7,1929. Previous week. Year ago.
All commodities 966*25 837,107 994.773
Grain and grain products 47,983 36*98 56,699
Coal and coke 2*0*90 191,797 209,797
Forest products 52.901 49,599 63,129
Miscellaneous products 818,194 302,871 353,824
Ore 6.806 9,438 11,193
Live stock 25,765 25,756 25,623
BUYERS THRONG CITY MARKETS
AS HOLIDAY SEASON BEGINS
Large, Attractive Displays of Fowl, Meats,
Vegetables and Fruits on Hand
for D. C. Public.
Everything about Center Market and
the several smaller retail markets scat
tered in various sections of the city
these days was suggestive of the ap
proaching Christinas holiday season.
Probably the chief interest of consumers
was directed toward the Center Market,
several times larger than the other
buildings and where vastly heavier
quantities of foodstuffs are disposed of
in the course of a day's trading.
“Christmas buying has not yet
started in earnest,” was the observation
of a merchant last night. "It Is
showing a gradual increase, however,
and trading should be heavy from now
until the close of business Just before
the dawn of Christmas.”
While inside the big building which
is doomed to soon cease to be a land
mark. Congress already having decreed
that it must go. dealers had decorated
their stands with holly and other Christ
mas greens, it was admitted by consum
ers that the attractive array of food
stuffs of every variety could not be Im
proved by the added greens.
Tree S apply Large.
Outside the market last night were
trees enough to give the place the ap
pearance of a miniature forest, and in
addition to the trees were immense
quantities of wreaths, strings of greens
sold by the yard, bunchas of various
greens and mistletoe. The large quan
tity of trees was suggestive to casual
observers of the depletion of woods and
forests.
"But what does the depletion of the
forests mean, when the greens are to
bring happiness to many persons?”
queried a customer.
“Deed,” observed an elderly colored
woman from the country who was offer
ing a bunch of bitter-sweet to a lady
patron, "you don’t know what it means
to gather all this stuff.
"My old man had to climb 70 feet up
a tree to get this bunch of mistletoe,”
she added, “and now people think they
are being robbed when I ask only a
few cents for it.”
It was explained by a man from the
country who was offering a truckload
of holly to the trade that much diffi
culty is experienced in efforts to get
supplies for the holiday trade, owners
of land upon which it Is found also
demanding pay for it.
Much of the holly this season, he
added, has red berries and faded leaves,
while some of It Is Just the reverse,
having green leaves and berries not
red enough to claim attention of
buyers.
"And the most attractive trees,” said
the hauler, "usually stand out alone
in fields, presenting such an attractive
appearance that owners will not per
mit them to be cut.”
One of the haulers related a story
of an elderly colored man who had
nursed a big holly tree, growing directly
in front of his house, over a period of
more than a quarter of a century.
Once a year, the hauler related, the
elderly man cut holly enough to pay
for what was needed in connection
with his Christmas celebrations.
Trees from New England, many cut
in the mountain section In the vlclnty
of Woodstock, Vt„ were in exceptionally
heavy receipt today, having reached
here as early as last week, some shipped
in open cars arriving here covered with
snow. It probably was due to the snow
that they were received in such good
condition. Prices of the trees ranged
from 50 cents to $lO.
Wreaths In Supply.
Wreaths of various sizes and dif
ferently made, some suggestive of the
work of artists and others having no
attractive feature, were offered from
10 cents to 50 cents, the general run
of them selling around 15 cents and
25 cents. Bunches of holly sold at
various prices, from a few cepts to a
dollar or more, while holly trees sold
as high as $lO.
Moes, used years ago for Christmas
tree gardens, was not much in evidence,
very few persons any longer using it.
It was suggested by both dealers and
consumers this morning that there
probably will be large quantities of
trees and other evergreens left on
hand at the close of the holiday mar
ket. The discarded trees probably will
provide fuel for a bonfire.
Everything from a bunch of onions '
to a 25-pound turkey was to be found 1
on the market benches, dealers being
able to meet demands of consumers
for anything in the line of food.
Poultry dealers had plentiful supplies
of turkeys, chickens, ducks, geese,
keats, squabs, rabbits and a few im
ported pheasants.
Turkeys were not much in demand,
however. Prices of poultry covered a
wide range, size and quality of the sup- j
plies governing the price. Capons, of-!
sered around 50 cents a pound, were
in fair demand, the demand for keats. I
usually heavy at UMs season, being
light, although prkßfl Rere lower than
usual.
Fruit and vegetable auDplles were
more attractive than ever. Dealers had
immense quantities of all varieties of
both fruits and vegetables to be had
at this season and supplies were ar
ranged to the best possible advantage.
Celery and cranberries, both in demand
to be served with the Christmas dinner,
proved good sellers.
"No Christmas dinner is complete
without cranberries and celery,” ob
served a dealer, "and consumers will be
able to get all the supplies needed.
Cranberries are not so plentiful, but
there will be enough to supply demand
st 20 and 25 cents a quart, slightly
higher th*n usual.
"Celery." he added, “is plentiful and
cheap, being received chiefly from Cali
fornia and New York. There is plenty
heart celery to be had at 5 and 10
cents, stalks of the heavy celery sell
ing at io and 15 cents.”
Fruit Receipts.
large navel oranges, product
-California, was one of the attractions
In the fruit market, some large Florida
stock also attracting attention. The
lerge fruit sold anywhere from $0 cents
$1 a dozen, smaller fruit selling
much cheaper. ’Tangerines were sell
ing at 25 and 35 cents a dozen, being
a Christmas fruit much in demand.
Grapefruit, chiefly Florida stock, was
in demand for fruit salads and cock
tails, selling at 10 and 15 cents. Pine
apples, also in demand, most of them
from Cuba, and Mexico, were priced at
$0 and 75 cents. Tokay and Malaga
grapes were in plentiful supplies and
much in demand, the former selling at
50 and the latter at 15 and 25 cents
a pound. Kaznquats were quoted at
35 cents a quart box.
Cape Cod cranberries, not so plenti
ful, were in the usual Christmas de
mand, Christmas dinners not being
complete without cranberry sauoe.
The cranberries sold at 25 cents a quart,
15 and 20 cents being the price during
most former Christmas holiday sea
sons. Fancy strawberries, product of
Florida, reported of exceptional size
and quality, were offered around 76
cents a quart and, according to mer
chants, strawberry shortcake promises
to supplant heavier Christmas desserts
in many homes.
Alligator pears, in demand for holi
day salads, found ready sale at prices
determined by size and condition of
the fruit. California persimmons, not
in great demand, were to be had for
10 cents. Bananas, not so plentiful the
past few days, were slightly higher,
choice stock selling around 40 cents,
while smaller fruit sold as low as 20
cents.
Dealers had practically everything in
the line of vegetables to offer Christ
mas shoppers. Lima beans and peas,
some from Mexico and Cuba, some of
the peas also coming from Florida, were
among the offerings which attracted
much attention. Shelled beans were
offered around $1 a quart, while the
peas, in pods sold at 30 cents a pound.
Red ripe tomatoes, choice hothouse
stock selling at 35 cents and California
and Florida stock around 25 and 30
cents a pound, found plenty buyers.
Tomatoes always being in demand for
dinners during the holiday season.
Brussels sprouts were to be had at
35 cents a quart box; cabbage sold
around 5 cents a pound, while kale and
spinach sold at 10 and 15 cents a pound,
respectively. Quart baskets of new
Sots toes from Bermuda were offered at
5 cents a quart basket, while broccoli
sold around 60 and 75 centa a bunch.
Both sweet and whit* potatoes were
plentiful and cheap.
Hothouse mushrooms were in demand
at a wide range of prices, best quality
selling around 50 and 75 cents a pound,
while some not so good, sold as low as
30 cents. Hothouse cucumbers brought
10 and 15 centa each. Florida stock sell
ing at 5 and 10 cents. Quart boxes of
okra sold for a quarter.
Meat Supplies and Prices.
Cauliflower, product of California,
was offered at prices ranging from 35
to 60 cents; fresh okra, received from
Florida, selling at 25 cents a quart.
Bpring onions, beets and carrots sold
at 10 cents a bunch. Turnips, parsnips
and cabbage were other vegetables
which claimed the attention of buyers.
Meat dealers had most attractive
supplies of all kinds of meats and meat
products to offer the trade at a wide
range of prices, grade of the meet de
termining the prices. Other market
dealers had attractive supplies of cakes,
candles and other sweets in demand
for the holiday season. Nuts, canned
goods and other varieties of foods also
were to be had, market dealers having
substantially every commodity patrons
desired.
Dealers In marine products also had
their supplies attractively arranged.
They do not anticipate heavy trading
in fish during the holiday season, but
expect there will be a good demand for
oysters, lobsters and erabmeat.
Oysters were not exceptionally plenti
ful, dealers said, and probably will not
be any more plentiful until after Christ
mas. Bivalves, dealers said, are in de
mand for turkey dressing, cocktails and
to be served on the half shell at Christ
mas dinner.
Shucked stock this morning sold from
80 cents to a $1 a quart, counts selling
as high as $5 per 100. Barrel stock, as
to size and quality, aold $5 to sl4.
COTTON PRICES HIGHER.
Trade Buying and Week End Cow
ering Cause Rally.
NEW YORK, December 21 OP). —
Cotton was higher today on trade buy
ing and week end covering. The ad
vance was considered partially a re
flection of the market's technical posi
tion following recent declines, while
the buying was encouraged by rather
more eheerful reports from the goods
markets and comparatively smalt of
ferings from the South. January con
tracts sold up to 17.02 and closed at
17.01, with the general market closing
firm at net advances of 23 to 27 points.
Futures closed firm, 23 to 27 points
higher: December, 17.00; January.
17.01a17.02; March. 17.32; May, 17.56a
17.58; July, 17.75a17.77; October. 17.75a
17.77. Spot steady; middling. 17.25.
UTILITIES GAIN MOST
BY HOOVER CONFERENCE
opeeUl Dispatch to The Star.
BOSTON, December 21.—The chief
effects of the Hoover conference, ac
cording to this week’s United Business
Service Report, will doubtless be felt in
the fields of public utility construction,
and secondly in commercial and indus
trial building.
The very considerable increase in cor
porate and municipal bond issues over
the past two months distinctly fore
casts a similar Increase in this type of
construction.
Furthermore, the easier money and
credit conditions which now exist and
which may be reasonably expected to
continue, open the road to a further
though moderate expansion of building.
In general, prospects appear brightest
In the New York district, the Northwest
and in Texas.
MARKETING AGENCY
DUE FOR MARYLAND
Grain-Selling Organization to
Be Set Up by Leading
Farm Interests.
Special Dispatch to The Star.
BALTIMORE. December 21.—The es
tablishment of a grain marketing
agency as a part of the Agricultural
Corporation of Maryland has been de
cided upon by a group of State farm
leaders. They decided to use the cor
poration rather than set up a separate
organisation.
The farm leaders represented Farm
Bureau. Orange. Maryland State Dairy
men's Association, the Agricultural Cor
poration, Maryland State Horticultural
Society. Maryland Crop Improvement
Association and the University of Mary
land Extension Service.
The Agricultural Corporation was
formed In 1921 for the co-operative pur
chase of supplies for agricultural use.
The charter, however, provided for mar
keting work, but this Held was not en
tered.
In addition to deciding to enter the
grain-marketing field, the farm leaders
voted to amend the charter of the cor
poration in order to bring It under the
provisions of the new Federal farm
marketing act.
The authorized capital is to be In
creased from $250,000 to $500,000, one
half of which is to be common stock
and the remainder preferred stock. Only
one share of common, or voting, stock
will be allowed a member, to provide
for the co-operative of one man, one
vote. Dividends or oommon stock are
to be limited to 8 per cent a year, while
the preferred stock Is to bear $ per cent
interest annually and be cumulative.
The change recommended by the di
rectors will be acted upon at the an
nual meeting of the stockholders of the
corporation on January $, 19JO.
A number of county farm bureaus are
operating now as country farm bureau
co-operative associations and can be
used as the agency through which to
receive and load the grain, It was ex
plained.
BONDSHOLDSTEADY
IN LISTLESS TRADING
Convertibles Improve in Sympathy
With Gains in Stock
Market Issues.
BY JOHN L. COOLEY.
Associated Press Writer.
NEW YORK, December 21. —The
bond market held steady today In a
dull two-hour trading session. Trans
actions were of a minor nature, reflect
ing the pre-holiday lethargy, and prices
ruled small.
United States ' Government Liberties
and Treasury certificates were firm and
fairly active. Convertibles, reversing
their movement of yesterday, made
progress toward recovery, but turnovers
indicated lack of Interest.
There was little inquiry for high
grade bonds, but offerings were also
light and the spread between bid and
asked prices was slight. A few semi
speculative issues traded at declines on
minor selling. In the rail group St.
Paul adjustment Income 5s lost a point.
New financing scheduled for next
week shows a sharp reduction over this
week’s total of $225,569,000, the largest
of the year, but the decrease Is due to
the holiday. Municipal offerings will
drop to about $11,000,000, as compared
with $73,000,000 In the current week,
■■ » ■■ ■ .
COMMERCIAL CREDIT CO.
SIGNS NEW CONTRACTS
The Commercial Credit Co. of Balti
more announced yesterday the signing
of contracts with the Btewart Motor
Corporation of Buffalo and the Motor
Wheel Corporation of Lansing, Mich.,
for the wholesale and retail time sale
financing of the products of these man
ufacturers. The contracts provide for
a Nation-wide financing service through
more than 450 branch and service of
fices.
Motor Wheel Corporation does an
annual volume in excess of $50,000,000
and It Is hoped that these figures will
be materially enhanced through deferred
payment selling. Besides manufactur
ing automotive shop equipment, Includ
ing wheel aligning tools. Motor Wheel
manufactures wheels for many different
automobile manufacturers.
Corporation News
NEW YORK. December 21.—The fol
lowing is today's summary of Important
corporation news, prepared by Stand
ard Statistics Co.. Inc., New York, for
the Associated Press:
Newa Trend.
Automobiles.—Additional evidence of
the current lull In the buying of so
called luxury articles Is furnished by
the latest returns of new car registra
tions. Reports from 21 States show
passenger car registrations for Novem
ber of 50,125, a decline of over 3$ per
cent from October and 14 per cent from
the same month of 1928. Complete re
turns on registrations from all States
for the first 10 months of this year
were 3,557,899 passenger cars, an in
crease of * 28.6 per cent over the cor
responding period of 1928. Ford regis
trations for the period totaled 1,188,748
cars, against 356,629 last year.
Railroads.—Official announcement of
the Interstate Commerce Commission
consolidation plan has finally been
made. The plan calls for allocation of
roads into 19 divisions, excluding two
Canadian systems, under the following
heads: Pennsylvania, Baltimore St
Ohio, Chesapeake Sc Ohio, New York,
Chicago St St. Louis; Wabash-Seaboard
Air Line, New York Central. New York,
New Haven St Hartford; Atlantic Coast
Line, Illinois Central, Southern Rail
way. Missouri Pacific. Chicago, Rock
Island St Pacific; St. Louis. San Fran
cisco; Great Northern. Chicago. Mil
waukee, St. Paul Sc Pacific; Chicago,
Burlington St Quincy; Chicago North
Western, Atchison, Topeka St Santa
Fe; Union Pacific and Southern Pacific.
Steel.—Price of semi-finished steel
has been reported reduced by leading
producers to 834 a ton, 81 below the
prevailing price. Reduction applied to
bare, billets and slabs. Pig iron and
No. 2 foundrv remains at $18.50 a ton.
The Companies.
Alliance Realty declares extra divi
dend of 60 cents and quarterly payment
of 75 cents, placing common stock on
a $3 annual basis against $2.50 pre
viously.
Borg-Warner earned $5.63 in 11
months to November 30; forms sub
sidiary to market replacement parts
made by company.
Chesapeake St Ohio earned $19.88 In
11 months to November 30.
Hocking Valley earned $43.07 in 11
months to November 30, vs. $38.74 last
year.
Louisville Gas St Electric net after
taxes, in 12 months to October 31, up
7.7 per cent from year ago.
Philadelphia Co. (after ordinary
taxes) 12 months to October 31, up 12
per cent.
Standard Gas St Electric (Including
subsidiaries, net (after ordinary taxes)
in 12 months to October 31, up 22 per
cent from year ago.
Youngstown Sheet St Tube reported
contemplating acquisition of Acme Steel
Co.
FINANCIAL
New Building Record
In New York Marks
Month of November
Br the Associated Press.
NEW YORK, December 21.
New building And engineering
work In New York State during
November Amounted to *152,-
982,300, the largest amount for
any month on record, according
to the F. W. Dodge Corporation.
The figure compares with
$80,662,900 In October and $113,-
307,000 In November, 1928.
CONTROLLER URGES
MORE CHAIN BANKS
Advantages to Rural Sections
Cited in Annual Report
of Official.
By the Associated Prese.
Urging the extension of branch bank
ing by national banks as away to as
sure a safe and sound system to rural
communities, John W. Pole, controller
of the currency, declares In his annual
report that such a development would
be of advantage to agricultural com
munities.
At the same time the controller
pointed to the growth of group bank
ing, in which holding companies have
acquired the stock of several banks,
and the defections of banks from the
national field to seek broader privileges
Imder State laws as reasons why the
national bank laws must be liberalised.
Ke said that total resources of all of
the 25,330 banks In the country on last
June 30 aggregated 872,172,505,000, an
increase of $598,177,000 over the previ
ous year. National banks, numbering
7,506, were shown to have total re
sources of 827,440,228,000. a decrease
of 81,068,000,000, while the number of
all banks had decreased In the year
by 883.
Os the total resources, he continued.
250 banks In the cities had resources
of 833,400.000,000, while three-fourths
of the banks of the Nation were In
country communities and classed as
country banks. The country banks, he
said, operate with small capital funds,
and economic developments since the
war have had the effect of decreasing
their opportunities to operate at a
profit.
Country Depositors Suffer.
On the question of bank failures,
Pole said that no “Important failures”
had occurred among banks In the larger
cities between last January l and No
vember 1, and that “whereas a deposi
tor In a large city bank, whether a
was* earner or a business man, has had
full protection, the depositor in the
small country bank has suffered se
verely from the Inability of so many
banks to meet their deposit liabilities.”
'ft is cause for Immediate concern
that the operating conditions faced by
country banks show no prospect of Im
provement under the present system.
Thgre y*. ®»ny country banks now
operated at a loss and many others op
*amlngs Insufficient to
Jurttfy their capital Investment. • • •
Comprehensive study of the banking
situation for the past nine years clearly
indicates that the system of banking
to rural communities has broken down
through »uses beyond the control of
the Individual banker or the local com
nunity.
Pole said that the causes were of a
bask nature due largely to the fact that
Independent local utility and Industrial
organisations have moved toward a
And more centralised form of
operation, which has curtailed the
country bank's opportunity for diversi
fying and extending their business.
Mast Bald Advantage.
Because of this, he said, group bank
ing had sprung up, with local holding
companies controlling the stock in a
group of banks. To remedy this sltua
tion, he urged that national banks be
permitted to have branches within
trade areas, but not beyond the
**2“ * #d * rml Reserve district
to which they are situated. Such leg
islatlon, he said, mutt be such as to
Itate^banks 100 * 1 b * n *“ adv * nU *« over
"The announced legislative policy of
the so-called McFadden bank act of
February 25 1927. was parity between
the national and State systems.” Pole
continued. “The purpose of the bill
was to make the charter powers of na
ttonal banks approximately equal in
operating advantage to those of State
Nearly three years of operation
under that act has demonstrated that
it has failed of its purpose in this re
spect. • • •
“The propepal for the extension of
branch banking which is here made
wmud have the direct effect of estab
lishing a strong system of banks in the
rural districts, and Indirectly it would
lead to the gradual restoration of the
national banks as the primary system
of commercial banking in the country.”
Foie also recommended that Con
gress enact laws to bring the holding
S22ZSS. 1 ? I** 1 ** to l .* rou P banking under
Federal supervision.
ELECTRICITY DEMAND
AHEAD OF YEAR AGO
November Reports, However, Indi
ct* Recession in Nation’s
Business Activity.
4
The output of electricity during No
vember, for the country as a whole
shows a substantial gain over the same
period during 1928, as reported by the
National Elictric Light Association
| However, for the first time this year the
increase has fallen below the figure of
normal growth, as determined by past
experience. The figures suggest some
recession in Industrial activity.
Analyzed according to the various
economic regions of the country, these
figures reveal definite trends. As a
general rule, those regions which gave
evidence of the greatest I.,crease in in
dustrial activity during the past 12
months are the ones which now show
the largest relative decline; the regions
devoted primarily to agriculture and to
related products show a smaller de
crease; whil? the f (nt*rs of commerce
and trade (as distinguished from man
ufacture) show, as yet. little evidence
of any marked business recession.
According to the outuut of electricity,
business in New Eng’anci and the North
Atlantic seaboard continued at very
nearly the same active levels that have
prevailed throughout the late Summer,
and while some slackening la indicated
In the South, its Industry and trade
continue at satisfactory rales
IRON ANDSTEELSHOW
MODERATE RECOVERY
Special Dispatch to The Star.
CLEVELAND, December 21.—Further
signs of gradual recovery in the Iron
and steel markets are conspicuous this
week, says Iron Trade Review. Con
tracting for first quarter is moderately
active, and whUe progress probably will
not be greatly accelerated over the re
mainder of this year, quiet negotiations
between producers and consumers give
evidence of normal contract needs for
the next three months. This pertains
especially to structural shape buyers.
Implement makers, railroads and gen
eral manufacturers. In many other di
rections the markets reflect expanding
needs, and the outlook Is distinctlv
brighter than two weeks ago.
INCREASED WHEAT
UNITS SAVE COST
Large Grower Says Produc
tion Is Cheapened by
Big Operations.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.
NEW YORK, December 21.—Twenty
years ago—even 10 years ago—the unit
wheat farm was a small one—from 160
to 320 acres. Farm mortgage com
panies were glad to receive applications
from the small farm owners—"much
safer loans” was the opinion. But it
was much more difficult to place loans
on the big farms—the bonanas ones;
too risky and dangerous, it was thought.
But the last five years has seen a
real change in this situation. Today
the farm movement Is toward the
larger and largeT wheat unit, and it
is net confined to any one section of
the West.
J. 8. Bird, president of the Wheat
Farming Co. of Topeka. Kans., which
company farms approximately 30,000
acres of Western Kansas land. Is one
of the new leaders. He will have 27,000
acres in crop of 1930 sown.
Cost of Production.
"Our records show that the cost of
producing wheat in this large-scale way
for the two years of the company’s
operat.on has been under 40 cents a
bushel,” said Mr. Bird.
“The cost-accounting system of the
company shows that the cost, exclusive
of our land rent, Is about $5 per act*.
We use no horses. All labor is hired
and the company goes in for tractors
and combines.”
“What is your solution of the wheat
farmer problem?" he was asked.
“In the recent agitation for farm
relief, we have been forgetting entirely
that there is a consumer in the matter.
There has been too much emphasis on
the price for which a farmer sells his
products, and too little emphasis on re
ducing the cost of production. It is
impossible to artiflcally keep the price
high, and, besides. It does the consumer
an injustice. The ultimate solution of
the farm problem has to be in the
reduction of the cost of production.”
“Is electricity and machine power the
coming method in wheat farming?” I
asked him.
"The application of power to trans
portation, manufacturing, etc., cheapens
the cost, and, at the same time, opens
vast new uses for the production of
these industries. Many more people
travel when the cost Is only 3% cents a
mile than there were that traveled In
the days when a stage coach trip cost
more than $1 per mile. And yet, be
cause of the reduction and the cost of
operation, the Investors In the new pow
er Industries reap profits out of all pro
portion to those realized by the investors
in the old stagecoaches and hand-craft
Industries.
"The development of power In farm
ing may serve the same purpose, and
open up new uses for farm products
which we have never yet thought of.
But the large-scale wheat farm Is here
to stay.”
Non-Voting Stock.
It’s far more difficult to successfully
analyze great trends and movements
than many people think. For such a
forecast deals with the unseen things—
vital factors that do not often appear
on the surface of things. The careful
student must dig them out, correlAte
and analyze.
One trend seems to be pretty well
cleared up this year, and that Is that
the non-voting stock —by which the
average Investor In a company was
"painlessly” alienated from tne control
of the company nnd its management—
Is no longer popular.
The New Yori: Stock Exchange joined
In the movement against non-voting
stocks by ruling that such stocks would
not be suitable for a listing in the fu
ture. The exchange has come to the
protection of the stockholder’s rights.
With the growing Idea of trusteeship
In the management of larger cor
porations, and the sale of common stock
to more and more people, ownership
will not be considered the Important
thing in the future. Character and
integrity of management will be.
The year Just closing has seen again
the rising power of management and
the lessening power of ownership In
American business.
Economic Policy Commission
John O. Lonsdale, president of the
American Bankers' Association, has ap
pointed a very strong committee to act
as his economic policy commission for
the year This body was specifically
instructed at the San Francisco meeting
of the bankers to make an exhaustive
study of the extension of branch and
chain banking. .
In addition to R. s. Hecht, the young
president of the Hibernia Bank Sc
Trust Co. of New Orleans, who remains
as chairman, the other members ap
pointed are: George E. Roberts, vice
i president National City Bank of New
York, vice chairman; Nathan Adams,
American Exchange National
Bank, Dallas, Tex; Leonard P. Ayres,
vice president Cleveland Trust Co.,
Cleveland, Ohio; Frank W. Blair, chair
man of board Union Trust Co., Detroit,
Mich; Walter W. Head, president, State
Bank of Chicago, Chicago; W. D. Long
year. vice president Security-First
National Bank, Los Angeles, Calif.;
Walter S. McLucas. chairman of board
Commerce Trust Co.,Kansas City, Mo.;
Max B. Nahm, vice president Citizens’
National Bank, Bowling Oreen, Ky.;
Melvin A. Traylor, president. First
Nations! Bank, Chicago; Paul M. War
burg, chairman of board International
Acceptance Bank, New York, N Y.; O.
Howard Wolfe, cashier Philadelphia
National Bank, Philadelphia, Pa.;
Gurden Edwards, American Bankers’
Association, New York City, secretary.
All of these were members of the com
mission last year with the execeptlon of
Messrs. Blair. Head and Longyear, who
are new members.
Last year's committee made a survey
showing the extent to which chain and
group banking had developed In the
United States. It was a graphic and
vivid report. Any one interested in
this very Important subject can secure
a copy of the report from the American
Bankers' Association.
Five-Day Week.
Thomas Edison, busy at Fort Myers,
Fla., on his rubber experiments, stops
long enough to say that he believes the
time has arrived when It should require
less work to earn a decent living than
ever before. In the field of power and
machinery, the amount of work that a
man needs to do in order to support
himself and his family should be very
much less than In any time in history.
The famous inventor thinks that the
five-day week Is coming. The eight
hour day Is here—4o hours of work a
week. Some think In 25 years the
work week will be reduced to 25 hours.
"People want to know nowadays about
economics and finance—more about
how the machine works, and they are
going to find out. In the process they
will distinguish the true from the
false.”
That Is the hope of Industry—facts,
more facts and still more facts.
iCoprrlcht. 1929. North American Newspaper
Alliance.)
0. C. FIRM BUYS WHARF.
RICHMOND, Va.. December 21 (Spe
cial).—The A. W. Kmbrey Lumber Co.
of Fredericksburg, Va., one of the old
est and largest firms of Its kind In .
Virginia, has sold Its wharf on the
Rappahannock River and its offices on
the National Boulevard to L A. Clark
Sc Sons, Washington concern, which
$35 000? ** t€ ™ vt] y to Virginia, for
5

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