Evening star. [volume], June 12, 1930, Page A-12, Image 12

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
A-12
REPARATIONS LOAN j
ANNOUNCER TODAY
$98,250,000 of $300,000,-
000 German Bond Issue
to Be Sold in U. S.
By the Associated Press.
NEW YORK, Juris 12.—Announce
ment was made last night that the
American portion of the long-awaited
8300,000.000 German loan, amounting
to $98,250,000, will be offered today by
& syndicate headed by J. P. Morgan
& 00.
The American portion of th# loan,
known officially as the German gov
ernment international 5 1 2 per cent
loan of 1930. will be offered at 90
and accrued interest. The bonds run
for 35 years and are priced to yield
6.20 per' cent.
Other portions of the loan are being
offered either tomorrow or Friday in
France. Great Britain. Holland, Sweden,
Switzerland. Germans', Italy and Bel
gium. The loan is the direct and un
conditional obi gntion of the German
government and its epprarance is
heralded bv bankers as a final step
in the settlement of the German repa
rations question growing out of the
World War.
The issuance is an integral part of
the Young plan and is the final step
In the adoption of the plan, transfer
ring the reparations question from the
political to the commercial field. Two
thirds of the total issue goes toward
the commercialization of annuity pay
ments in settlement of the r.-parations
debt of Germany to creditor powers,
and will be placed to their credit in
the Bank of International Settlement'.
The remaining $100,000,000 raised by
th* bond issues will be used by the
German government for the require
ments of the German Railway Co. and
the German post office and tel~graphs.
To Buy With Sinking Fund.
A cumulative sinking fund, computed
to be sufficient to retire the entire Issue
at or before maturity, is to be applied
to the purchase of the bonds at or be
low- 100 and accrued interest, or other
wise. to the redemption at the price of
bonds drawn by lot. The bonds are
redeemable at 100 and accrued interest
upon not less than 45 days previous
notice, on June l.of any year, through
the sinking fund, and on June 1, 1935,
and yearly thereafter, in amounts of
not 'less than $7,500,000. principal
amount at the option of the Govern
ment. Coupon bonds are in denomina
tions of SI,OOO, SSOO and SIOO. The
principal and interest is payable in gold j
at the office of J. P. Morgan <fc Co. |
without deduction for any German
taxes, present or future.
Bankers point out that the sole con
nection of the Bank of International
Settlements, acting as trustee, is as the
agency through which payment will be j
effected in accordance with the terms
of the Young plan, but that connection !
in no way qualifies or limits the direct j
unconditional obligation of Germany to j
bondholders.
No further issues for the mobilization |
of the German annuity payments may j
be made on any market without the j
consent of the international bank for!
the purpose of internal conversion of.
the national debt of a creditor nation, j
Any offering in the United States, even j
with the consent of the international j
bank, bankers say, must have the ap-i
proval of the Federal Reserve Bank of;
New York.
No More American Issues.
While no definite statement has bpen j
made, leading American bankers do not j
believe there will be any further Amer- i
lean issues and that offerings made with
the approval of the International Bank
w-ill be marketed within the countries;
to whose governments the annuities flow.
Widespread interest has been shown
by financial interests in New York and
throughout the country in the German
bond issue, appearance of which has
been expected for some time. It was
explained today that the delay was
largely due to discussion of phraseol- ;
ogy in translating the terms of the loan :
into French. German and English.
Bond houses report sales on a when
issued basis during the past 10 days,
with some prices a full point above the
offering price. The American issue is
the only one for North America, it was
learned, and whether any bonds are sold
to Canadian houses or individual in- !
vestors will depend upon the decision of I
the offering syndicate. With this ex
ception, the syndicates handling the j
offering in each country are expected to
Bell nationally only.
OPEN CREDIT SALES
SHOW SMALL LOSSES
The average lass from bad debts on j
open credit sales of more than 10,000
retail establishments employing such ;
terms was .6 of 1 per cent. Department I
of Commerce learned in connection j
with its retail credit survey.
The second volume of this survey, j
dealing with automobiles and acces- 1
zones, radio, bakery products, groceries, j
jewelry, electrical appliances and opti- j
cal goods, was issued Wednesday.
Although the average loss to all retail
establishments included within this
study was only .6 of 1 per cent, there j
were considerable variations among ;
different trades and among different i
establishments within the same trade, I
the department pointed out.
NEW INVESTMENT TRUST.
NEW YORK, June 12 </P).— Brook-
Wire Investors, Inc., a new management I
type of investment trust with a capital !
of approximately $50,000,000, has been j
organized. The new company is spon- j
sored by the Brookmire Economic Serv
ice and has a capitalization of 1,000.000
no par common shares, which will bo
offered to the public at about $54 a
•hare,
DIVIDENDS DECLARED
NEW YORK. June 12 (/P). —
Regular.
Pe- Pay- Hldrs. of
Company. Rate.riod. able. record.
Aiemco Associates, ,40c Q July 1 June 23
Am D Tel of N J... .M Q July 15 June 15 s
_ Do. o f -. 1175 Q July 15 June 15
Canad Eagle Ord. * 12c
Do Pt pf *23 88c j
Canada Southern.? l .so ra Auk. 1 June 27 :
Chi It'd 4 L Ry..J2 50 SA July 10 June 24
Do Pf 12 SA July !0 June 24 I
Lawyers Title & 0.. 13 Q July 1 June 20
Mexican Eagle Ord 6'
Do pf. 8
Murphy <OC> Co pf »2 Q July' 2 Juiie'ii |
fc'whernr J J *l5O Q Aug. t July 16 I
Do 6t;V pf. . 41.62 1 a Q Aug. 1 July 16 !
Safety Car Htg A. Lt 12 O July 1 June 14 !
Transamerica Corn 40c Q July 25 July 5 ;
Extra.
Burmah Corp 2 annas |
Chi Ind A Lou Ity ?1 .. July 10 June 24 j
Initial.
Am Invest C 0.... st SO .. June 30
Pennroad Corp 20<- . Sept 15 Aug. 8 1
Twin Sts Nat G pf 25c Q July 1 June 16
Reduced.
French Line 59fr
Final.
Burmah Corn.. 4 annas
Omitted.
General Paint B 37'aC Q Due July t.
Nachman-Spnnsf d 50c O Due July 1.
Pender <D) Gro B 25c Q Due July 1.
Do. B 25c Ex Due July 1.
Deferred.
General Paint A . 50c Q Due July 1.
-Canadian currency
L A. ACIDOPHILUS
is of maximum strength
That'a what gives it its superior
efficacy in healthizing the Intes
tinal tract and ridding it of the
infections which breed indiges
tion. constipation, flatulency,
colitis, arthritis, etc.
The b. A. brand is a laboratory
culture—and will be delivered by
messenger to any local address.
Nat. Vaccine & Antitoxin Inst.
1515 You St. North 0089
«*
I STOCK MARKET HELD STRONGER 1
FROM TECHNICAL STANDPOINT
Important Banking Interests Do Not Share
Pessimism Shown Recently by Pro
fessional Trading Element.
BY CHARLES F. SFF.ARE.
Special Dispatch to The Star.
NEW YORK, June 12.- -In its pres
ent cynical mood Wall Street is in- |
dined to gfre ear to every bit of gossip
that floats through the financial dis
trict and to listen to those who profes
sionally attempt to make capital out
of the misfortunes of the stock market.
Effort is being made by these interests,
through rumor and suggestion and by
comparison with conditions last Autumn,
to unsettle prices.
Against this is the calm judgment
of bankers and industrial leaders, who. !
while admitting that the improvement
in business is slow and might not get
under good headway until the end of
this year, were emphatic in their state
ments that, both from a techincal
standpoint and in the light of its in
vestment status, the stock market now
is stronger than it Ins been at any
time within the last nine months, and j
that investors who own their securities j
and those who have them amply mar- j
gined need have no occasion for alarm. !
rublic Account Small.
The most influential factor in the
present market situation is the absence
from it of the public. This includes
the condition of relatively small loans
on securities bv the banks compared
with the huge totals last October and
November. The advance in prices in
March and April was primarily the
work cf the professional trader.
The testimony of the majority of
Stock Exchange houses is that the
public did not follow this movement
to any extent. So it was not crippled \
when prices broke in May. It has not
been greatly affected by the secondary
decline that has occurred since and
which has been most violently mani
fested in this month's reaction. While
margin calls sent out Saturday after
noon and Monday night were numerous
in comparison with thase in previous
months, they were relatively small and
did not occasion a great deal of dis
tressed selling.
The money situation now existing
and the position of brokers’ loans rep
resents as positive a change from a j
highly unfavorable set of credit con
ditions to one of extreme ease as could
- ----- . -j
Corporate
Trust Shares
Practically every individual
in this country comes in
daily contact with at least
half of these companies or
their products. These
shares are, therefore, an
investment in the very
backbone of American
business.
Common stocks of these s 8 com
panies are deposited under Corpor
ate Trust Shares.
New York Central -
Illinois Central
Union Pacific
Southern Pacific
Louisville &■ Nash villa
Pennsylvania
Atchison
Stand. Oil (New Jersey!
Stand. Oil of New York
Stand. Oil of Ind.
Stand. Oil of Cal.
Texas Corporation
American Tel. 8t Tel.
Western Union
Con. Gas of New York
General Electric
W’estinghouse Elec.
United States Steel
American Tobacco
International Harvester
Otis Elevator
Ingersoll-Rand
du Pont
United Fruit
American Radiator
Wool worth
Eastman Kodak
National Biscuit
PRICE AT MARKET
ABOUT s9»g PER SHARE
CirciAar on request
Graham. Parsons X Co.
l4St WALNUT *T. WALL ST.
PHILADELPHIA NEW YORK
300 SOUTHERN BUILDING
WASHINGTON
PIADINfi V SOITON TSINTON
PITTSBURGH SCRANTON NeWARK
.ALTIMORt WASHINGTON
The r&Jlmbw Guaranteeing
Trade Mark Vufy Satisfaction
1886-1930
44 Years of Constant Progress
STOCKETTALK NO. 15
This is our Story and we’re
going to Stick to it!
In planning to maintain a
high degree of perfection in
our sales service, we do not
overlook our Telephone Order
Department.
I This department is now in
charge of a trained Station
er, competent to take and fill
your orders intelligently—able
to advise you on problems of
Office Equipment thoroughly
posted on the latest Efficiency
Devices for the modern office.
Use this service.
1. Phone “National 9176—Order
Department.”
J Your order will he filled ac
curately and delivered promptly.
STOCKETT
FISKE CO
PRODUCING STATIONERS
919 K ®T- -N -w
WASH INOTON'D'C
We Want Your Business!
the evening star, Washington, d. c„ Thursday, june 12. 1930.
! have occurred within a six or seven
| months’ period.
With comparatively few exceptions, ]
j and m spite of the record of nearly j
140 new low prices for the year for
I stocks on Monday, most of the eight j
or nine hundred active trading units
on the Stock Exchange are selling above
the bottom figures for 1930. Thase;
that by rpason of poor earnings and
reduced dividends have dropped into
lower ground are the coppers, which
have fallen even lower than last year;
I several of the rails, including members
I of the Northwestern group, along with
! Southern Railway and Erie, and such
| formerly buoyant issues as Montgomery
Ward and Simmons.
t Utilities Stocks.
American A- F’oreign Power, against
which the professional attack has been
mast, severe recently, was about 25
| points higher than last Autumn. Amer
j ican Power cV Light was up 39 points
| from that level. American Water
| works was quoted at almost double the
j figure reached on November 13.
I United Corporation sold as low last,
year as 19, after touching in May.
Today is was approximately 100 per
cent above its former low price. Con
solidated Gas broke to about 80 last :
November, a perpendicular decline of |
over 100 points, and is now 40 points l
above this figure. And so on through
the list of prominent power and light
securities.
NEW B. & 0. CARS.
BALTIMORE. June 12 (Special).—
Some of the 50 new individual seat
coaches, ordered some time ago by the
Baltimore & Ohio Railroad, are now
being received and installed in regular
train service, according to officials of
the company. When the entire order
of 50 cars is received, the road will have
89 cars of this type in operation.
This style of coach was introduced
by the Baltimore & Ohio in April, 1926.
The company plans to extend the fea
ture from time to time and make use
of the individual seat coach general on
trains throughout its territory.
Every Veedol victory is a victory for your pocketbook
“when hurricanes howled their hymn of hate
g MM MW ■
jjIF
j||||g”*”” f||l|l JB|j| South P01e... That was a victory for VE EDO L. (
| But both of these unparalleled tests of motor !
4ft #
■ ill I °*l were victories for your pocketbook .
was worth a dollar a drop to F „^^_,„., v „,,,.„„
■ £* ,mma W | ff matter how severe the service, it will keep
| pi | M AhhPl I W*\ motors humming sweetly and save costly
II Iv VJI Ql Z_VLJIJdl|| LADY DRUMMOND HAY breakdowns and repairs.
\
, w -» / VEEDOL has proved that it gives a quality of
OA\ AGE squalls could not still the serene performance that no other motor oil can excel.
song of the Graf Zeppelin motors . , . as
1 they hummed their way around the world. * Now the thriftiest motorist can give his
EpDOLjl fflMSjSjB That was a victory for VEEDOL. motor the thrill of a genuine 100% paraffine
MmN-J® '■JOW, Pitiless cold gave no pause to eager pistons stantial money savings in upkeep and repairs.
Slraf MBf TIDEWATER OIL SALES CORPORATION
Met. 0158 Met. 0159 Plant, Rosslyn, Va. West 3045
STOP rod GAS WHERE STOP TOR OIL WHERE
YOU SEE THIS PUMP YOU SEE THIS SION %
- , . . I _ 1 MADS BY TM* WAKEHS OF TYDOL ITHYL AJN D HI-TEST (*»R««.W) TYOOL QASOkIMfiJ
••T- ~™ Xm ~ , ~ f *» ' t
TRAVELING BY BUS
BECOMES POPULAR
Passenger Lists of Various
Companies Show Big ,
Gain in Year. I
BY JOHN F. SINCLAIR.
! Special Dispatch to The Star.
NEW YORK, June 12.—"1t is a
racket—this bus business. Look at the \
• back of them, made to look like an ob- j
i servation car. I tell you it is a racket,’’ i
says one of New York's “show-me” men, I
in discussing the transcontinental bus |
line activity these days.
But it must be a healthy” racket to I
be able to carry 3,000.000,000 passengers I
annually in the United States or 24 !
times the population. These are the |
figures given out by the Department of
Commerce,
Wait on any paved-road corner to
day, and one Is apt to find a bus com
ing along, at the rate of 25 or 35 miles
an hour, filled with interstate pas
sengers.
Passenger busses leave New York
every hour for California. Cities and
villages in between are comb:d and I
honey-combed with “feeder” lines.
So the highway improvements have
brought in their wave not only the
driving of 27,000,000 automobiles, but
they have also brought the most effec
tive and efficient bus transportation
| systems that exist in the world today.
| These various systems are now in the
! merger stage. .
In another five years, an effective
day-and-night bus line service, with all
the accommodations of a Pullman train,
will be available at prices so reasonable
that few can afford to ignore them.
Two New York bank executives,
George W. Davison, president of the:
Central Hanover Bank <fc Trust Co., and
Albert H. Wiggin of Chase National
Eank, have joined hands to oppose the
extension of bank branches in the
United States.
Mr. Davison bases his main argument
upon the fact that bank consolidations
did not necessarily reduce the danger
of bank failures, for ’’the history of j
chain banks thus far has been that j
when one goes they all go.”
Mr. Wiggin takes much the same 1
point of view. Within city limits,
! branch banking is efficient and work-T
! able, he declares, but when it is ex- j
teryied beyond city lines new dangers
I begin.
Both agree that brapeh banking yith
in the city, renders as effective service I
to the community, without sacrificing
I the advantages which flow from unit-!
1 banking.
Neither, however, attempted to answer
the argument advanced by the advocates
of group banking, who believe their
plan gives prompt and satisfactory
I banking services to small as well as !
| large communities, while maintaining
j bank unit independence.
What should the American people do? j
Ever since the war they have been !
charged with many things and told
what to do and what not to do. It's a
hard nut to crack.
They have been called upon to:
1. Cancel war debts and save the
; world.
2. Quit playing the shylock and help
j the rest of the world recover its busi
i ness prosperity.
3. Join hands with the World Court
; and the League of Nations and thereby I
| help to foster world peace.
4. Loan more money to the starving
i industries of Europe. /
5. Cut down tariff walls, so that the j
: rest, of the world can do business on !
American soil.
6. Ship morp gold, so that the rest of
the world ran “hold together.”
7. Give the world a chance to sell
goods on a fair basis in the greatest I
trade market of the world and thereby i
keep millions of people from starving.
Some of these suggestions are good— !
some are not. What should be the I
! policy of American business? Should j
tariff walls come down so that Canada !
and France, for Instance, might be able
to sell more goods In the United States? j
Walter Lippman, New York editor,
recently made this statement:
“We'are today living in an era which
might be very well known as a period of
American hesitation. We stand deeply
bewildered on the threshold of an im
mense destiny, and until our conscious
ness of what we are and what we mean
to the world comes up with a reality
we shall continue to deal with the prob
lems of the present day with a mind 30
years out of date.’’
This confusion in the United States
results very largely upon a misconcep
tion of the position of a debtor and
creditor nation in the modern world.
The United States is now a creditor
nation, the greatest creditor nation.
But many Americans still try to keep
in vogue the international practices
used by the United States when she was
a weak, struggling, poor debtor nation.
1 (Copyright, 1930. b.v North American News
paper Alliance.)
' Swallowing a pin caused the death of
a reindeer at the london Zoo recently.
1
Corporation News
NEW YORK. June 12.—The following
is today's summary of Important cor
j poration news prepared by Standard
1 Statistics Co.. Inc., New York, for the
| Associated Press:
News Trend.
Outstanding in thp day's corporation
news is the announcement of the for
i mation of the Continental Construction
| Co., which will construct the $100,000.-
: 000 Texas-Chicago natural gas pipe
1 line, under sponsorship of Cities Service,
, Insull interests. Standard Oil of New
Jersey and four other large oil and gas !
| companies. Initial daily delivery ca
pacity of line will be about 300.000.- i
000 cubic feet, and more than 50 com- j
munities will be served. Unfavorable \
dividend announcements were made by !
Evans Auto Loading and David Perider i
Grocery, both passing dividends due j
July 1. An initial payment of 20 cents j
: was declared by Pennrcad Co.
Department store sales in May by 551 i
| stores in leading cities made a better |
] showing for the month than in pre- -
i reding periods of the year. Accor -ting !
! to preliminary reports to the Federal
Reserve system, May sales decreased !
j about 1 per cent from last year, while I
for the five months’ period decline was
about 3 per cent. Districts of the sys-
I tem in which May returns were larger
j than a year ago included New- York,
i Boston, Minneapolis and Richmond.
The Companies.
American Ice May profits estimated
at 10 per cent above year ago.
American Utilities Az General has ac
quired 251,743 class B stock and voting
trust certificates of Consolidated Gas
Utilities through exchange.
Aviation Corporation carried 6,935
pas-engers in May, 2.8 per cent over
April. Revenue expanded about 4 per
cent, due to increase in length average
ride. •
Colorado Az Southern Railway—lnter
state Commerce Commission denies pe
tition for abandonment of 185-mile line
i between Denver and Leadville, Colo., op
erated at loss since 1900.
Commonwealth & Southern Corpo
ration Mav electric output off 5.4 per
cent, five months, down 2.2 per cent: 12
months, up 3.9 per cent over previous
year. May gas output increased 2.4 per
cent, five months declined 2.2 per cent,
12 months ofT 8.7 per cent.
Continental Construction, organized
to construct the $100,000,000 Texas-Chi
cago natural gas pipe line, sponsored
by Cities Service, Insull interests,
Standard Oil of New Jersey, Texas Cor
poration. Skelly Oil. Phillips Petroleum
and Columbian Carbon. Gas will b”
1
distributed by Peoples Gas Light &
Coke.
Consolidated Retail Stores May sales
off 0.7 per cent, five months, 12 4 per j
cent above year ago.
Delaware. Lackawanna & Western R.
R. earned 55 cents on common stock in ;
March quarter, agalrfst $1.38 in 1929 j
period.
Evans Auto Loading passes quarterly
dividend 62> 2 cents, due July 1.
MacMarr Stores operated 1.407 stores !
and 463 markets in May. against 1.335 ;
and 252. respectively, year ago.
John Morrell <fc Co. earned $2.27 on
common stock in six months to May 3.
against $4.80 in six months to March
30. 1929.
North American Aviation acquires
Berliner-Joyce Aircraft of Baltimore.
Novadel-Agene president reports four
months’ net 7 per cent above year ago.
David Pender Grocery omits dividend j
of class B stock. Last distributions 25 j
' cents regular and 25 cents extra.
Pennroad Corporation declared initial j
dividend of 20 cents on common stock.
Peoples Gas Light & Coke propose
gas rate schedule on basis-of heat units
You Own a Car to Use It
So don’t let parking difficulties and penalties rob you of
its convenience and comfort. Come downtown in it—and
park it with us. Here it’ll be safe—out of reach of traffic
tickets and all-too-numerous damages.
No matter where you are bound downtown —we’re con
veniently located—and your car will be given excellent care
while it is here.
35c for 3 hours Additional Hour
Have our experts give your car a
“Capital Wash” you’ll like it.
Capital Garage
1320 New York Ave. District 9500
T
rather than volume of gas consumed.
Change proposed as gas supply will be
i augmented by naturr.l gas from Texas
! which has greater heating power.
Pierce-Arrow Car May deliveries to
I consumers largest of any month this
year.
Republic Steel subsidiary. Bourne
Puller, shuts down open hearth division
b~cause cf low current rate of opera
i tions.
United Aircraft A- Transport-sub
] sidiary carried 163.076 pounds mail
! over Chieago-San Francisco route In
! April, against 156,505 in March.
United Stores earned sl.lß on com
mon stock In 1929, against 54 cents in
: 1928.
Western Ajr Express carried 72.328
I pounds mail over Salt Lake-Los Angeles
line in April, against 71.208 in March.
Youngstown Sheet <fc Tube to con
| struct plant for production of electri
cally welded pipe; cost about $2,000,000.
With the exception of one cottage,
the entire village of Fenwick, England
was sold at auction recently.