Evening star. [volume], November 11, 1934, Image 61

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

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News of Markets
Pages 1 to 4
FINANCIAL AND CLASSIFIED
taf
We
Classified Ads
Pages 5 to 11
Part 5—12 Pages
WASHINGTON, D. C., SUNDAY MORNING, NOVEMBER 11, 1934.
HEM SALES UP
28 PER CENT ABOVE
YEAR AGO IN 0. C.
[Ten Months' Record Also
Far Above 1933 Showing,
Bank Reports.
FIFTH DISTRICT GAINS
20 PER CENT IN MONTH
Washington Bankers to Hold
Special Meeting to Study
Loan Expansion.
BY EDWARD C. STONE.
Retail sales in Washington depart
ment stores in October soared 28.7
per cent above the mark reached in
October, 1933, according to the
monthly report made yesterday by. the
Federal Reserve Bank of Richmond. .
For the first 10 months of the pres
ent year dollar sales in eight local de
partment stores were 19.8 per cent
ahead of the same period a year ago,
the report added.
Retail sales in the whole fifth re
serve district averaged 20 per cent
more in dollar volume than in Oc
tober, 1933, and sales during the first
10 months of 1934 revealed an in
crease of 18 per cent over sales in the
first 10 months of 1933.
A glance at the figures shows that
Washington stood way ahead of all
the other cities in the fifth district
except Charleston, W. Va., in October,
and that sales for the 10 months also
were better in the Capital than else
where In this trade area.
Sales Here Lead District.
Individual percentage for cities in
which three or more stores reported
for October this year compare as fol
lows with corresponding periods
in 1933:
Jan.-Oct.
Cities. Oct. 1034. 1934.
Baltimore. Md .... — 13.0 4-13.1
Charleston W Va... 4-~!*5 4· 33.3
Huntington. W. Va.... 4 15.0 4-17.ti
Lynchburg. Va —14.0 +1Û.5
Norfolk. Va -τ 1 : s. l 4-1H.·*
Richmond. Va -4- 1Τ .î» -^-1!).N
Washington —•.'s.Τ — ΙΜ.κ
Other cities --15.4 4-23.ο
Fifth district 50 stores -4-20.0 4-is.η
United States. 52U stores 4-11.0 4-13.0
State figures—
Virginia J-lfi.l 4-1Π.7
West Virginia 4-24.2 4-27.3
The Carolmas -t-14.7 +21.1
The sharp gains all over the fifth
district are considered a most hopeful
sign and prove that the year's sales
totals will be far ahead of the returns
in 1933.
Sales in Other Districts.
The Federal Reserve Board an
nounced here yesterday that prelim
inary figures on the- value of depart
ment store sales show an increase from
September to October of about the
estimated seasonal amount. The Fed
eral Reserve Board's index, which
makes allowance for differences in the
number of business days and for usual
seasonal changes, was 75 in October,
on the basis of the 1923-1925 average
as 100, the same as in September and
compared with 79 in August.
In comparison with a year ago, the
value of sales for October was 11 per
cent larger; when allowance is made
for the fact that there was one more
trading day this year than last, the
increase from last year is about 7 per
cent. The largest increases compared
■with last year in total sales for the
month were shown in the San Fran
cisco, Richmond and Atlanta districts.
The aggregate for the first 10 months
of the year was 13 per cent larger
than last year.
Percentage increases from a year
ago are as follows:
Jan.1 to
Oct.· Oct. 31 · Stores. Cities.
Total ... -r 11 4-13 529 245
Districts—
Boston ... 4- 7 — β 54 30
New York . . -4- Κ 4-7 50 27
Piiiladclpnia . — 5» 4- !> 30 15
Cleveland . . . 4- κ 4-17 27 11
Pichmond ... 4-2 η —is 50 '2'Z
Atlanta '4-1H ~ :s 41 23
Chicago 4-11 4-1!· 02 -jo
St Louis .. -+- t» — 17 30 ]ί)
Minneapolis — κ 4-1 ο 30 IT
Kansas City . -- 7 -17 21 15
Dallas — ί» 4 24 lil S
San Francisco 4-20 4- !» 91 32
'October figures preliminary: in most
Cities the month had one more business
day this year than last year.
«rarey u» Atiaress Bankers.
A special meeting of the District of
Columbia Bankers' Association has
been called by Frederick P. H. Siddons,
president, for Friday, November 16,
at 8 p.m. in the board room of the
American Security & Trust Co., at
■which time J. Howard Ardrey, deputy
administrator of the Federal Housing
Administration, will speak on titles 2
and 3 of the Federal housing act.
The general information regarding
the operations of titles 2 and 3 of
the Federal housing act, is being sent
out by the Housing Administration.
Blanks on which the lending insti
tutions will make formal application
for approval as mortgagees and the
blanks on which mortgagors will make
application to such mortgagees for
loans on properties will be issued this
■week.
Bankers in the city desiring 'o co
operate with the Federal Housing Ad
ministration will listen with interest
to Mr. Ardrey's talk. His suggestions
will help the local banks to determine
the ways and means whereby they can
find proper employment for their
lunds.
Washington banks have recently
been making special efforts to increase
their loans, both for the benefit of
the business community and for their
own good. Lack of a borrowing de
mand has been a difficult handicap.
Heard in Financial District.
Controller of the Currency J. F. T.
O'Connor told Kansas City bankers
Friday night that the administration's
banking policy is sound, but that
some amendments to the banking laws
should be made by the next Congress.
He particularly stressed opposition to
the opening of too many new banks.
"We don't want to go through the
experience again of having a bank
opposite every filling station in the
country," he said.
Robert C. Jones, of Robert C. Jones
& Co., investment bankers, is spend
ing the week end duck shooting at
the Jefferson Island Club, of which
he is a member.
Henry T. Rinck, Roscoe Admore and
Oscar Baum, young men employed by
W. B. Hibbs & Co., have just re
ceived New York Stock Exchange In
stitute certificates on completion of
special correspondence courses In
finance. The special work covers an
eight-month period.
Brokers Predict
More Extras and
Special Dividends
Threat to Surpluses Held
Cause of Directors*
Liberal Attitude.
By the Associated Press.
NEW YORK, November 10.—Com
mission house statisticians expect
Santa Clans to visit the financial
district this year with a somewhat
heavier pack of extra dividends and
special payments than he had the
last two years.
Last year more than 20 outstanding
corporations declared extras or special
dividends toward the end of the year
I in keeping with the Christmas spirit.
I The frowns in Washington at "un
I reasonable" additions to corporate
I surpluses is expected, as one reason,
to make directors more generous this
I year.
ΥΙΕ FUNDS RISE
ABOVE 1933 MARK
IMHKS
$33,426,919 Savings Ex
ceed Last Year's Figures
by $2.206,510.
Special Dispatch to The Star.
NEW YORK, November 10.—
Christmas shopptrs owning accounts
in Christmas clubs of mutual savings
banks in the 15 States where such
institutions are located will have
more money to spend this year than
a year ago. Their savings of $33.
426919 are $2206510 in excess of those
of 1933.
Accounts total 828.8^97, a gain of
56.818 over a year ago. The average
account available for Santa Claus is
$40.72.
Christmas shoppers in New York
State, according to John W. San
stedt, executive secretary of the Na
tional Association of Mutual Savings
Banks, will have $14.999.695 to spend
from their Christmas clubs. These
club members number 351.433.
Massachusetts ranks second with
$8.000,000, belonging to 200.000 de
positors. Connecticut mutual banks
are to pay out $2.606,449, the holi
day savings of 74.918 persons. Penn
sylvania mutuals, in the fourth place,
hold $2.265,941 of Christmas funds
for 47.886 depositors. New Jersey
mutuals will distribute $1,571,728 to
39,140 depositors, and in Maryland
42.492 savers will receive $1,443,400.
Maine mutuals have $780,464, the
property of 20.498 savers, and in New
Hampshire $670,039 belongs to 15,741
depositors.
Rhode Island credits $454.800 to
its 11,925 savers, while Ohio reports
[ $263.100 for 5.956. Vermont mutuals
I will distribute $162,644 to 4,626 de
j positors. The 3.351 savers in Dela
| ware piled up deposits of $110.000.
Indiana's !\407 savers goi together
I $77.000. while 524 in Wisconsin saved
$22.000.
Savings bank officials point out
I that the increase of Christmas funds,
and particularly the broader spread
of this money, reflects public determi
nation to provide for holiday needs.
As virtually all Christmas clubs are
opened at the first of the year, regu
lar payments into the clubs through
out 11 months furnished evidence of
better pay rolls.
(Copyright. 19.14.)
MARKETS WILL CLOSE
FOR ARMISTICE DAY
I
By the Associated Press.
! NEW YORK, November 10 —Busi
! ness in Wall Street will be suspended
I on Monday. Armistice day. and lead
i ing security and commodity markets
1 in other financial centers throughout
I the country will likewise remain
I closed. In New York it will mark the
first observance of the day as a legal
J holiday, the Legislature having so
designated it at its last session.
·
D. C. POSTMASTER GIVEN
BRANCH BANK POST
The Bank of Commerce & Savings
announced today that William M.
Mooney, Postmaster for the District
of Columbia, had been elected to the
advisory board of its H street branch
which is to be located on H street
at North Capitol.
The remodeling of the bank Is
moving along rapidly and it is ex
pected to be open for business about
November 23.
AMERADA NET HIGHER.
NEW YORK, November 10 </P).—
Amerada Corp. and subsidiaries report
for the third quarter net profit of
$424,657 after charges, equal to 54
cents a share, compared with $322,101
in the September quarter last year
which was equal to 42 cents a share.
FRENCH MB
FOI) 'STRONG MAN'
BUT NONE APPEARS
World Business Expected
to Be Unsettled for Some
Time as Result.
PARIS STOCKS DUMPED,
HOARDING ON INCREASE
Germany Conducts Intensive
Drive to Become Free of
Foreign Materials.
Special Dispatch to The Star.
NEW YORK, November 10—Busi
ness everywhere will react to the fall
of the Doumergue government in
Prance and the unsettlement will con
tinue for some time to come, the Euro
pean news bureau of Business Week
reports in its issue today. "Able
Frenchmen," the report continues,
"are clamoring for r 'strong man,' but
none has yet appeared. Until he does
conditions In the country will not
settle themselves. And with France
—backbone of the gold bloc—in
trouble, it is unwise to predict the
future of the currencies concerned."
Other cables and radio dispatches
to Business Week give the following
survey of business abroad for the week:
Paris—"Dramatic events this week
in Paris culminated in the govern
ment crisis which caused anxious spec
ulators to dump rentes and stocks
and francs. The Radical-Socialist
party caused the break when they
refused to support a demand for con
tinuation of the 1934 budget schedule
during the first quarter of next year
until, supposedly, the problem of con
stitutional reform could be handled.
"Business and the public anticipated
the crisis. Withdrawals from savings
banks in the last half of October
totaled more than 118.000.000 francs
to accentuate an already serious
hoarding situation. The gold flow
was reversed, shipments to London
and New York assuming considerable
proportions even before the cabinet's
resignation. The number of jobless
is increasing steadily.
"Outlook for the immediate future
is not bright. Opposition to the recent
government which was unable, de
spite no end of patriotic appeals to
the country for support, to solve the
problem of steady deflation which has
retarded business, increased the num
ber of unemployed, failed to reduce
taxes and to balance the budget. And
yet, from the opposition there is no
strong leader or group of leaders who
appear ready with a 'plan.'"
V — 1IT ._i.i ι
LONDON—"Developments in France
and the feeling that the German sit
uation is not good and may affect
world business have caused a feeling
of uncertainty this week which has
slightly disturbed business. The franc
is already weak on the belief that
there may be a succession of quick
government changes in Prance. The
internal political confusion may be
sufficient to push the franc off gold,
and carry with it the remaining Euro
pean gold currencies.
"The Anglo-German debt accord
is accepted with mingled feelings.
While it is an agreeable settlement as
far as Britain is concerned, there is
little confidence that Germany can
or will carry out the terms.
"New issues continue to flow, al
though not in such volume as was
expected before the Marseille mur
ders unsettled matters. The gilt
edged markets remain in the ascen
dant, with British funds touching new
highs There is still an expectation
that the treasury may convert its 5
per cent and 4'ί per cent conversion
stocks. The first of these has only
10 years before its earliest redemption
date and stands well over 18 points
above parity. A total of over 600,
000.000 pounds would be affected.
"Birmingham, England's largest
I provincial city, has been selected as
the location for their British plant by
a number of American firms. Among
the more recent are Schrader's Sons,
Inc., of Brooklyn, the motor tire valve
manufacturers, and the Cincinnati
Milling Machine Co. The latter firm
has just completed the erection of the
first section of its factory on a 3-acre
site and has in production several
types of machines not previously
manufactured ift Englahd."
Reich War Days Recalled.
BERLIN—"Not unlike the cam
paigns of war days to 'save raw mate
rials' are the present government
campaigns to help Germany become
free of foreign materials. Germans
are urged to save everything from
empty tooth paste tubes to empty tal
cum powder cans, turn them in for
use again in some new form.
"Reminded daily of the shortage of
materials in Germany, the public has
become jittery and rushed to lay in
supplies of goods for the Winter.
; Bedding, clothing, food, all have been
in abnormal demand all Fall, with
retailers fast selling out their stocks
without being able to replace them. No
(Continued on Third Page.)
Denounces Liquidation Plan
For Joint Stock Land Bank
Special Dispatch to The Star.
NEW YORK, November 10.—If
bondholders assent to the pro
posed plan of liquidation for
the St. Louis Joint Stock
Land Bank, involving approx
imately $18,000,000 par value of bonds
widely held throughout the United
States, the assets of the bank will be
taken from under the contiol of the
Farm Credit Administration and
placed in the hands of a private
trustee and a private corporation, ac
cording to a statement issued today by
David Lobdell of Lobdell & Co., spe
cialists in tax-exempt securities, who
has just made a survey of this situa
tion.
"Such procedure may mean that In
the future those bondholders who do
not wish to participate in such plans
will be farced to take a sacrifice price
in the sale of the assets to similar pri
vate liquidation corporations," Mr.
Lobdell states. "In the case of the
<£t. Louis bank, 77 ί» per cent of out
*
I standing bonds have been deposited to
date and holders of such bonds must
decide before November 15 whether
to withdraw or go along under the
plan.
"In the event the St. Louis bank is
liquidated by other than a govern
mental agency, it will establish a prec
edent which may be followed by other
joint stock land banks now nearing
liquidation, and provide the method
lor the settlement of $100,000,000 to
$200,000,000 of bondholders' claims.
"Under the proposed St. Louis plan,
which offers very little advantage to
bondholders, the major part of the
good mortgages, representing approx
imately 45 per cent of the total assets,
are to be placed in the hands of a
trustee who is given almost unlimited
discretion under the trust indenture
to liquidate them as he sees fit. This
could very well mean an extended
liquidation, depending upon the policy
of the trustee. Bondholders' interest
in these mortgages is to be represented
•by non-voting trust receipts."
%
EXPERTS FORESEE
SPEEDY BUS ERA
Passenger Lines and Trucks
to Top Rail Records,
Engineers Told.
Special Dispatch to The Star.
NEW YORK, November 10 —
Streamlined busses and trucks that
will beat by hours the recent records
of streamlined trains were predicted
today at the November meeting ol
the metropolitan section of the So
ciety of Automotive Engineers, held
at Newark in conjunction with the
Newark Chamber of Commerce and
the New Jersey Motor Truck Asso
ciation.
These new busses and trucks would
be cooled by the same fuel that drives
their high-speed motors. They would
use high-speed highways, like the
Pulaski skyway in New Jersey.
Saving about 20 per cent in the
weight of fuel carried for the same
run and nearly doubling gasoline
motor compression ratios, the new
fuel of butane and propane gives
promise of revolutionizing engines lor
streamlined busses, trucks and rail
cars, according to W. Z. Friend, chief
technologist of Phillips Petroleum Co.
and G. L. Tinkham, McCo.'d radia
tor engineer.
The use of such fuels, accordin? to
automomtive engineers, necessitates
relatively minor changes, chiefly in
carburation, in gasoline engines. It
is estimated the changes would cost
the average truck only $1007 and it
might be cut to $25 if handled on a
commercial production basis.
"Butane and propane are used to
cool bus interiors and engines be
fore being used as fuel," Mr. Tinkham
explained. "They act very much like
electric and gas refrigerators in our
homes, except that they do not re
quire bulky mechanical equipment.
They cool in direct proportion to the
fuel consumed, or the speed of the
engine, and thus are ideal for engine
cooling."
(Copyright. 1934.)
BUSINESS VOLUMES
AGAIN ON UPGRADE
Present Trend Contrasts Sharplj
With General Recession in
Closing 1933 Months.
Special Dispatch to The Star.
NEW YORK, November 10.—In lti
weekly summary of the general busi
ness situation the Standard Statistic!
Co. of New York, currently eommenti
as follows:
The present gradual uptrend of bus
iness volumes, which has been undei
way since September, is contrasts
sharply with the receding trends gen
erally evident during the final month!
of 1933. As a result, an Increasing
number of lines are again register
ing year-to-year gains, for the flrsi
time since May.
While this seasonal expansion ha:
been of comparatively moderate pro
portions, it has been essential];
healthy In character. Business gen
erally has been stimulated by a par
tial lifting of the uncertainties which
hitherto ha\e surrounded varioui
phases of administration policies, anc
by fecent clear-cut victories in th<
struggle against coercive tactics bj
unions, as well as by the substantia
increase in 1934 farm incomes.
DIVIDEND IS ORDERED.
NEW YORK, November 10 (JP).—
Directors of Collins & Aikman Corp
have declared the regular quarterly
dividend of $1.75 a share on the pre
ferred stock, payable December 1 t(
stockholders of record November W5
•
Virginians Cheered
By High Prices at
Dark - Fired Sales
By the Associated Press.
LYNCHBURG, Va., November 10 —
Prices more than doubled the open
ing prices a year ago cheered growers
of dark-fired tobacco as the markets
opened over the Stat* this week.
The Lynchburg market opened with
sales of 90,583 pounds at an average
of $18.24 a hundredweight, about $10
higher than last year. The market
here opened a day in advance of the
other dark-fired markets.
Blackstone sold 35.318 pounds at
slightly better than $21 on Thursday
and Petersburg handled a light break
of 5.000 pounds but with prices better
than $21.46 per hundred.
The dark-fired markets are open
only the first four days of the week, so
that Monday will be the second day
of sales of all except Lynchburg.
OGILVIE MADE HEAD
OF BANKING FORUMS
Institute Chapter Will Hear C. 0.
Hardy at Opening Session
November 22.
Walton L. Sanderson of the Hamil- I
ton National Bank, président of j
Washington Chapter, American Insti- !
tute ot Banking, has appointed Stuart !
_ S Oo · ' vip oceict
ant «r.shier of
the Srrond Na
tional Bank, as
chairman of the
Forum Commit
tee. Other mem
bers oi the com
mittee are: E. A.
Ginnetti, Second
National: Arthur
H. Lamar, Wash
ington Loan «ι
Trust Co.; Rob
ert A. SissoA,
Hamilton Ν a -
Stuart s. otiiTie. «aonal; James J.
Dulin, jr., treas
urer, American Security Si Trust Co.:
J. Earle McGeary. W. B. Hibbs Co.:
Robert M. Poole. Riggs National.
The first meeting is scheduled for
Thursday, November 22, in the board
room of the American Security &
; Trust Building.
The committee has been fortunate
in engaging C. O. Hardy of the Brook
ings Institute to lead this meeting.
Mr. Hardy has been a member of the
staff of the institute for more than 10
years, was professor of economics end
banking in the Chicago chapter of
the American Institute of Banking,
and also served on the staff of the
Chicago University and University of
Iowa. His subject will be "Credit
Outlook for Banking."
$2,011,782 LOANS
MADEINCAPITAL
Building Groups Reveal
Huge October Total Un
der F. H. A. Plan.
»
Building and loan associations of
the District of Columbia, co-operating
with the Federal Housing Administra
tion, made loans during the month of
October amounting to $2,011,782.
These loans vere made to 573 different
people in all parts of the city. This
makes the total loaned by building
and loan associations so far in 1934
well over $12,000,000.
The monthly report of William S.
Quinter, the secretary of the league,
shows that all of the associations have
funds to make further loans, and it is
expected that this amount will be ex
ceeded during the present month.
All of the associations showed a
gain in assets, and a large number of
new accounts are being opened month
ly in the association, officials report.
Mr. Quinter stated that a good por
tion of the amount loaned was used for
modernization purposes, and that all
of the associations here are co-operat
ing with the President in his housing
program.
Board Sets Date
For Peoples Drug
Stock Dividend
The 100 per cent stock dividend on
the 122,727 shares of Peoples Drug
Stores, Inc., common stock, just de
clared by the directors, will be paid
December 31 to shareholders of record
at the close of business December 21,
It was announced at the company's
head offices here yesterday afternoon.
Application has been made to the
New York Stock Exchange for listing
of the additional stock and request
has also been made for registering the
stock with the Securities and Ex
change Commission.
In addition to the regular quarterly
dividend of 25 cents per share, the
directors have declared an extra of
$1.50 a share on the old stock. Both
these payments will be made January
2 to stock of record December 21.
The common stock jumped another
point on the New York Exchange yes
terday, making a 5-point advance in
two days. It opened Friday at 60 and
at one time yestertiay touched 66.
The stock opened Î934 at 21. Only
a handful of stocks on the New York
board have scored any such advance
during the past 10 months.
ANOTHER TOUGH WORKOUT FOR THE HORSE
PACE QUICKENED
Aï STEEL PLANTS
BY MANY FACTORS
Housing, Farm Purchases,
Repeal, Autos and Rail
roads Cited.
NEW OUTLETS OPEN
FOR SHEET AND STRIPS
Gas and Electric Refrigerators,
Washing Machines, Kitchen
Furniture on List. '
BY JOHN A. CRONE.
Special Dispatch to The Star.
NEW YORK, November 10—Na
tional housing rural prosperity, re
peal. the New Deal, automobiles, rail
roads and foreign demand are al
factors in the 14 6 per cent rise ir
steel operations in the last three week;
and the 5.8 per cent gain in pig iror
output in October.
Home modernization brought loca
iron and steel jobbers 20 per cent mori
business in October than in September
The bulk of such sales were in pip*
for heating systems, nails, galvanize*
sheets and miscellaneous home hard
ware. Radiator makers, though the;
stocked up liberally in the first hal
of the year, when prices were low
bought additional pig iron.
Building, aside from Governmen
and industrial projects, is taking mori
steel, especially for frameworks, meta
lathing, window frames and othe:
home needs. The American Iron <5
Steel Institute, in boosting steel fo
homes, has emphasized steel frames.
The American Institute of Stee
Construction suggests the use of stee
floors for bridges and buildings in nev
construction, steel floors for recon
structed bridges, steel dams, structura
sheet and thin plate steel, and stee
piling abutments.
Building High on List.
Building always has ranked as on
of the five big steel users. Back it
1927 building used 19 per cent of a]
American steel produced. This de
clined to 16.5 per cent in 1928. re
mained at that level the next year, re
covered to 19 per cent in 1930. the]
fell to 18 5 per cent in 1931. to 16 pe
cent in 1932 and last year to 11.5 pe
i cent.
Meanwhile, new avenues were devel
oped for sheet and strips. Househol
equipment, especially gas and electrics
refrigerators, washing machines an
kitchen furniture, was one of thes
new fields. Sheet steel now is bein
purchased by makers of radiators, ο
heaters and storage tanks, furnace
and pipes, stoves, ranges and nuwei
ou* small items, such as dustpan:
wastebaskets and kitchenware.
Steel products, such as fençini
roofing, stores, numerous small hard
ware items and implements, are mov
ing down to farms, where the greates
general prosperity in four year? i
being enjoyed. Agricultural impie
ment makers now are busier tha:
they have been in several years, parti
in anticipation of demand next Sprinf
Implement sales in the first eigh
months of 1934 were 85 per cent ove
1932, the low of recent years. In buy
ing steel and iron, implement maker
declare 1934 production will doubl
that of 1933.
Repeal has helped steel container:
which took 19 per cent of our outpu
in 1929, fell to β per cent in 1931
rising to 9 per cent in 1931, to 11.
per cent In 1932 and 13.5 per cent i
1933. Containers this year «re usin
more steel than in 1933, thanks t
increased output of steel barrels, triir
mlngs, tubing and miscellaneous item
Two million tons of fabricated strut
tural steel were credited directly t
the New Deal In thfc first nine month
of 1934. In view of Tuesday's vie
tories, the administration will pus
many projects, ranging from bridge
dams and post office buildings to can
ning and road activities. Manufactui
ers of road-making machines an
steam shovels are stepping up pre
duction in anticipation of more Go\
ernment orders. Additional naval cor
tracts promise another iron and stei
outlet.
Cast-iron pipe makers hailed th
New Deal victory, since it will mea
pipe laying in many communities i
the West and Northwest through 1
W. A. assistance. Birmingham. Ala
where 55 per cent of our cast-iron pit
is made, is jubilant over the prospect
More IVd in Autos.
A 3 per cent gain in steel consumf
tion for every 100,000 automobili
made in a month is the way steel me
look at motor statistics. Mott
makers have increased their steel tai
ings steadily for the last 15 year
Steel tops on autos will keep up th
trend.
Railroads usually order rails at th
season. Last year they cook i.OOO.OC
tons, because President Roosevelt ha
the price lowered to $36.375 a toi
Many of these rails are not yet lai<
Only the Norfolk & Western now
inquiring for rails, and for only 10,0C
tons, which will be laid this Winte
Carriers are waiting to see if th
streamlined trains take hold—if the
do light rails will be needed. Rai
roads, however, are preparing to bu
new equipment.
(Copyright. 1934.)
Extension of Auto Code to February Will Raise
Labor Issues at Crucial Time for Industry
BY EDWARD W. MORRISON.
Special Dispatch to The Star.
DETROIT, November 10—Al
though Detroit sees In the
extension of the automobile
manufacturing code until
February 1 a victory for the
companies, industrial circles here take
> no complacent attitude toward the
situation created by the armistice
between labor leaders and the motor
magnates.
The date on which the code will
expire under the temporary agreement
pack· a carload of dynamite. Febru
ary always la one of the busiest
months of the year for the factories.
Orders pile into the offices in the
wake of the January shows and the
companies bend ev»ry hand to stock
, their dealers with cars for the Spring,
t
Φ
season. February 1 becomes, there
fore, a crucial date.
Should the manufacturers remain
firm In their refusal to recognize the
American Federation of Labor or to
concede one inch in their fight for
retention of the merit clause in the
code, an Impasse might be brought
about which would close the factories
at the time when 1935 production
will be getting under steam.
The question would arise whether
labor could afiord to achieve a vic
tory made under threat· to tie up
the Industry In its busy season. In
the same fashion the manufacturers
would be caught in a corner.
The automobile manufacturer* will
not let the dangers that lurk In the
situation deter them from going ahead
with their _ 193S plans. The early
Winter climb In Detroit employment
aireadj bas started, it appears to
»
be moving at a swifter pace than
did last year, presaging more De
cèmber activity than was visible in tt
factories a year ago.
The other manufacturers are watcï
ing with much interest the plans <
the Ford Motor Co. to build a millic
cars next year. They are aware, f<
one thing, that the Ford sales o<
ganization is well keyed for an ir
tensive campaign. Money for sal·
promotion never was more freely spen
The manufacturers like the ps;
chology of the situation, at any rat
The promise of a million cars by Foi
will stimulate sales in other directioi
they are sure. Privately they expre.
the opinion that Ford is in a positic
little different from their own. i
will make and sell as many cars ι
people will buy.
(Copyright. 1234 J
BUSINESS READY
10 MOVE FORWARD
AFTER EECÎIONS
Voters Apparently Unafraid
of Inflation Talk or
Budget Outlook.
FARM BUYING GROWS
AT REMARKABLE RATE
Effects of Housing Program
Spread, but High Coiti and
Terms on Loans Are Checkt.
BY CHARLES F. SPEARE.
Special DUpatcb to The 8t»r.
NEW YORK, November 10.—Look
ing at Tuesday's election* from the
standpoint of the country at large,
rather than that of Wall Street, It Is
ι clear that the economic and mone
tary policies of President Rooeevelt
have been given strong sanction.
1 There has apparently been less anxle
ι ty than had been supposed over the
. effect of dollar devaluation or the
possible extension of this to a level
I where currency inflation might be
■ serious.
The voters have likewise not ex
Γ hibited alarm concerning the mount
, ing expenses of the Government, dis
playing a cheerful, if undue optimism
; that somehow the national budget
i will be balanced before the credit of
I the Government is impaired.
The defeat in California of Upton
; Sinclair emphasizes the fact that,
• while the American people have be
come more liberal-minded with re
[ spect to economic and social policies.
1 they are still unwilling to subscribe
' to doctrines that savor of Commu
■ nism. So capital, terribly frightened
1 for a while by what it feared might
I happen on the Pacific Coast, is more
composed and satisfied than it ap
peared to be a week ago.
Trend of New Deal.
The administration having b?en
given the vigorous support of a ma
jority of the voters, the business and
j banking world now inquires what use
i it will make of it. Because its liberal
ι ] policies have been approved, will it
r I become more liberal? Will Congress
r in its new fiarty majorities demand
more of the kind of legislation that
- the vocal elements of the public are
1 supposed to want or will it become
1 more cautious in suggesting laws that
1 alarm those who employ labor and
e so further retard recovery?
g Undoubtedly, with the election!
,1 over, interests that see no escape from
s steady deflation, except by the process
- of lifting the price of gold and bring
ing the level of commodities to that
of 1926, will press their claims on the
administration with more vigor. There
" is not, however, in the new Congress
- enough change from conservative to
I radical membership greatly to affect
5 the policies with which President
- Roosevelt and his cabinet have been
ι identified.
j The elections probably have been a
. factor in deferring business commit
t ments. Now that they are over and
r the results have been so definite, de
- layed orders will begin to appear in
5 wholesale and retail trade. The iron
t and steel ratio of production is up
this week and is at the best level since
. the end of July. A gradual broaden
t ing out of the automobile industry is
ι, to be expected through the remainder
5 of the year.
Farm Purchase· Growing.
Quite reftarkablc returns are being
published of ttw turnover of the chain
and merchandising stores. Thoee of
Montgomery Ward were 30 per cent
greater last month than in the same
period of 1933, which reflects, among
other things, a considerable degree
of purchasing power among the farm
ers. Gains of 10 to 26 per cent are
shown by other distributors dealing
in special lines. Going back to Sep
tember we find exports 30 per cent
in excess of last year and 40 per cent,
or $460.000.000. greater for nine
months than in the first three-quarters
of 1933.
Gradually the impact of the hous
ing program is having its effect on
the building trade, as each week wit
nesses more banking affiliation with
it, but the scheme is still handicapped
by the high cost of labor and ma
terials and the onerous terms imposed
on the borrower. There should be a
way found to relieve him of the ex
cess charges for service and insur
ance, bringing his interest cost down
actually, rather than academically, to
5 per cent.
For interest rates should come down
where they have been maintained at
old levels. There is a glut of unem
ployed capital. The lender by hold
ing to traditional returns is reducing
his income when he may pick and
choose in markets that offer him
sound security if the rate is reason
able. In all probability this will be
the situation for an indefinite period.
It is not only true in this country
but abroad, where this week British
consols, the register of the money
market trend, have advanced to th·
highest prices in 25 years. And again
this week the action of prime Amer
ican corporation securities give· no
hint that they are to be disposed of
and the proceeds plac«d In common
stocks.
Social Legislation Expected.
It is with the hazards of the In
dividual that the social philosophy
of today is concerned—those of sick
ness, accident, unemployment and
the inevitability of a more or less de
pendent old age. Congress will un
doubtedly be called on to deal with
them at its next session, and, as
the position of President Roosevelt
on this general question has long been
known, it is fair to say that Tuesday's
vote was, in part an expression of
approval of the humanitarian pha#e
of his general economic and social
policy.
The prospect of Federal and State
legislation along the lines of employ
ment insurance and old age pensions
will Incline to make business timid.
In spite of the modifications of the
N. R. A. codée, the better feeling
established between Washington and
Wall Street and the evidence that un
trained economists are now taking ft
smaller part than a few months ago
In fashioning the ideas of the Govern·
ment.
(Coprrliht. 1PS4. br the North Amcrleta
Newspaper Alliance. Incj