The Brooklyn Daily Eagle from Brooklyn, New York • Page 43

1 COMMODITIES BUSINESS BROOKLYN EAGLE FINANCIAL SECTION STOCK QUOTATIONS BROOKLYN, N. SUNDAY, APRIL 30, 1939 D5 Stock Exchange Ready for Fair Visitors Stock Market Fails To Show Reaction After Hitler Talk Estimate Alien Bond Holdings At 3 Billions Agency Survey Says One-third of Issue Held Here in Default First Quarter Building Rate At 8-Year Top Nationwide Survey Reveals Substantial Upturn in All Areas Chicago, April 29 W) Building ac 5 I mmMimu, 1 -'v I -I i Vt- isSJii '4 Zj I "-a-i lV. TI" io si -l it Vr oi 4 v-- 7 1 mi.h i An. iifV-) -7: .1 i I A ft Prices Continue to 3Iove in Narrow Line As Trading Remains Extremely Dull The week ending with the clos of the stock market on Friday was another period of waiting to see what would develop both abroad and at home. Trading continued at a low ebb, with volume averaging around the half-million mark, and the Dow-Jones industrial average figure hovered within the narrow range between 126 and 132, only slightly better than a week ago.

For most market operators the big event of the week was supposed to be the speech by Adolf Hitler early on Friday morning. Ever since the Saturday before last Wall Street had been pausing in anticipation of the words that would proclaim peace or war. It was disappointing, then, when the market failed to show any lasting response to the German dictator's words. Friday's Anticipations Many market observers had predicted that Friday would mark the beginning of a sharp movement either up or down for stocks, on the grounds that prices had reached the state technically known "triangle," from which they should rise or fall with force In the event of any important news. Strangely enough, prices, which dilly-dallied all week within a two point range, took a sudden Jump upward at the opening Priday, shortly after Hitler completed his address.

This is The exhibit room arranEed by the New York Stock Exchange to illustrate its functions and operations. part of the reception facilities of the Exchange which have been enlarged to welcome World's Fair visitors. The room contains an electrically iluminated an doperated diagram, showing, through the use of progressively lighted miniature lamps connecting member firm offices with the Exchange, the extensive wire systems used in the brokerage business. World's Fair Debentures Dull As Civic Pride Checks Sales Current Quotations Are Below Year's Peak Price of Subscribed -A In IVett? Post George F. B.

Owens Elected assistant vice president of the Brooklyn Union Gas Company last week. Mr. Owens has been manager of the New Business Department since May, 1937. He will be succeeded by Walter E. Bolte, who was also appointed last week.

New York City Bond Offering Next Tuesday New York City will offer city serial bonds next Tuesday at competitive bidding, Controller Joseph D. McGoldrick announced. Bids will be received at noon. All of the bonds will be dated May 1, 1939, with Interest payable semi-annually on May 1 and Nov. 1, the controller stated.

Of the total issue, $15,000,000 is for rapid transit, dock improvements and water supply, and the principal is payable in equal annual instalments for 40 years on May 1. Por school construction, water supply and various other municipal purposes, $12,150,00 of 1-30 year bonds will be issued. One to 15 year bonds totaling $750,000 will be issued for various municipal purposes. A total of $7,700,000 in 1-10 year bonds will be issued for dock improvements, water supply, school construction and various municipal purposes, and $100,000 in 1-4 year bonds will be sold for the construction of rapid transit railroads. Lehigh Warehouse To Operate Here The Lehigh Warehouse Transportation Company, 98-108 Frelinghuysen Newark, N.

announce that they have completed arrangements with the Austin Nichols Company for the leasing of the latter company's building at Kent Ave. and N. 3d Brooklyn. The lease was negotiated by Albert B. Drake, president of Lehigh, directly with Austin Nichols Company.

Lehigh will take over at once and intends to operate it as a merchandise distribution warehouse in con-Junction with its present warehouses at Newark and Elizabeth. With the three facilities Lehigh intends to offer shippers a completely co-ordinated metropolitan distribution service. The plan anticipates that considerable savings will result to storers through single inventories and control of stocks to supply the entire New York market Including Long Island, Westchester and northern New Jersey. Wholesale Volume Larger in March Washington, April 29 Department of Commerce reported dollar sales of 3,042 wholesalers representing all parts of the country increased 4.8 percent in March over the same month a year ago. Sales of these wholesalers last month showed an increase of 19.4 percent from February, reflecting the three additional days in the month.

Sales of the group in March totaled $210,188,000. Sales of 2,320 reporting firms dur ing the first quarter of this year totaled $506,763,000, a gain of 4.9 percent over the same period last year. Report showed cost value of stocks on hand at the end of the month was 6.6 percent le.ss than a year ago, but showed practically no change from the value at the beginning of the month. Hearing Ordered On Utility Issue Washington, April 20 OP) The Federal Power Commission today ordevd a hearing May 10 on an application of the Montana-Dakota (Utilities Company to issue 000 of bonds and notes to refund outstanding obligations. The Commission said the company planned to issue $9,000,000 of 4'i percent first mortgage bonds, dated May 1, 1939, and due May 1, 1954.

to be partially retired before security through operation of a sinking fund; and $2,100,000 of unsecured serial promissory notes, to be issued simultaneously, and to mature in six $350,000 installments on March 15, 1940 to 1945, Inclusive. f- I LA a wasnmgton, April 29 W) The mmerce Department estimated t-xlay that Investors of this country own foreign lands with a par value of $3,598,000,000. but that a third of ie securities were in default American holdings of foreign securities, the department said, have decreas3d gradually in recent years, Americans buying few new ones and Hie foreigners either paying up the u.i-uciauiicu issues or Duylng back at depreciated prices the defaulted Issues. The market value of the remaining foreign bonds owned here now is $2,465,000,000. or an average im eooa per ti.uou Dond.

Foreign investments in this coun try nave been placed at slightly mn o.uuu,uuu,uuu, including about $4,000,000,000 worth of American securities.) Canadian Bonds Lead The largest and best-rating of the foreign bonds owned here are those of Canada, totaling $1,407,900,000 practically all of which is in good standing. German bonds, including those of Austria, Czechoslovakia and the Saar, are next in size. They total $364,100,000, but are 26.4 percent in default, primarily because Germany's currency restrictions hinder payments outside of Germany Braiils Defaulted Brazil's $298,300,000 share is third nd is rated 24.3 percent in default, although Brazil, as a part of its recent financial pact which the export-import bank here, has agreed to resume service of Its debt to the United States soon. Nearly 90 percent of the foreign bonds owned here, the report adds, are obligations of foreign governments, their political subdivisions or government guaranteed corporations. TVA-Nashville Agi 9 rreement on Power Ready Nashville, April 29 IP) Consummation of the purchase of Tennessee Power Company properties by TV A and several municipalities seemed assured today with agreements ty Nashville to sig a contract for its share in the deal.

Ending a three-day conference with TV A officials late yesterday, ire power Board announced it reached "complete agree ment wnn tva ana would sign a contract next week for formal transfer of the properties June 20. 'Thus was removed the final barrier to the $78,600,000 deal in which Nashville. Chattanooga and several miller communities will join with TVA to take over the Commonwealth South subsidiary for distribution of Tennessee Valley Authority power. The price Nashville will pay was tentatively at $14,200,000. Chat-jtenooga's share is about $11,000,000.

The TVA's cost for power production and transmission lines of Tepco i3 About $45,000,000. M.rtin A Hayes, vice chairman of the Nashville board, said TVA power T'ould mean "a large annual savings to Nn'iiviUe consumers, estimated at $1,500,000." Ban Alien Minin Grants In Mexico Mexico City, April 29 (U.R) A Presidential decree prescribed new regulations for mining concessions In tiational mining reserves today and ordered that In future only Mexl-rans could obtain concessions. The measure affects only future concessions and has no bearing on Ahe Important concessions now held United States and other foreign Interests. A Department of National Economy tatemcnt explaining the decree laid: "It is obvious that the national inineral reserves should be worked exclusively by Mexicans." A second Presidential decree revoked the concession of the Poto-lna Hydro-Electric a subsidiary of Electric Bond and Share, to utilize the waters of the Naranios River at Ciudad del Mais in San Luis Potosl State. The revocation was ordered on the ground that the company had failed to carry out Its projects.

Two Major Steel Areas Cut Rate Pittsburgh, April 29 Steel Ingot production in this district is scheduled to start Monday at 45 percent, a drop of two points from last Monday. A month ago the rate was 51 percent and a year ago 28 percent. Ingot steel production in the Chicago district is scheduled to start Monday at 45 percent, off 2.1 points rom a week ago, and 6.8 points lower than four weeks ago. A year ago production was at 33.1 percent of capacity. Demand Better Boston, April 29 (JP) CO.

S. Dept. Agr.) Business In wocl on the Boston market during the past week was the broadest that it has been for several weeks. Fair quantities of tpot wools, especially in the fine grades of Western grown lines, were sold at prices showing a firming tendency. Orders were taken also lor fair amounts of territory and fleece wools for future delivery at teady to slightly higher prices than quoted last week.

tivity during the first 1939 quarter was the best for the period in seven or eight years, a nation-wide survey disclosed today. Dollar valuation of residential and Industrial construction in 44 states for which building permits were is sued during the quarter was estimated at $846,189,562. the National Association of Building Trades em ployers reported. This compared with $595,982,843 in the Initial 1938 quarter, $721,439,136 in 1937 and $602,958,791 In 1936. which up to that time was the best in four or five years, the association said.

Home building in 34 leading cities Increased 119 per cent during the quarter, compared with the like 1938 period. Easily available financing, Gov ernment aid and replacement of obsolescent houses combined to aid the upturn, said E. M. Craig, executive secretary of the association. DOLLAR VALUE JUMPS Estimated dollar value of buildings for which permits were issued in 42 cities totaled $199,383,570 compared with $194,233,513 In 1938 and 986.959 In 1937.

Individual permits of the 42 cities were 55,548 compared with 43,759 In 1938 and 42,204 In 1937. Building permits were issued in 34 cities for 11,570 homes valued at 253.065, compared with permits for 5.564 homes valued at $27,448,259 for tne 1938 quarter. Despite the uturn In home con struction, however, Craig said most nation-wide contractors believed home construction costs "should be reduced to be consistent with present earning power of the working masses." NEW VORK IN FOREFRONT Of the 42 cities reporting 34 showed a rebound comoared with last year. New York remained in first place with permits for an es timated $61,356,084 In construction, although that was approximately $47,000,000 behind a year ago. Los Angeles was second with $19,041,682, Detroit third with $12,576,769 and Boston fourth with $10,856,350.

Chicago was seventh with $7,053,654. Tulsa's $1,088,667 total included $964,792 for home building. Youngs-town showed the largest volume increase over 1938, or $2,552,187 compared with $167,476 a yar ago. Los Angeles had the largest number of individual permits, 9,634, and Cincinnati was second with 5,525. Los Angeles, with 2,649 homes val ued at $9551,191 under construction or completed during the quarter, was the nation's home building leaner, uetroit Was second with 1,852 nomes valued at $9,493,711.

Boston's town or lie homes Included four Federal Housing Association proj- ecia costing Quebec Asbestos Output Expands Quebec, April 29 Production asbestos by mines in Province Quebec for first quarter totaled 62, 684 tons against 51,303 tons in like 1938 quarter, an increase of 11504 tons or 22.1 percent, according to Bureau of Mines. Production in March was 22,680 tons against 21,224 tons in February and 22,281 tons in March last year, Air Conditioning Sales Near Peak First quarter sales in the air con ditioning industry were the second highest on record, being exceeded only by the first quarter of 1937, according to a review of air conditioning industry by La Rue Applegate in the current issue of the Annalist. Sales of air conditioning equipment In the first quarter totaled about $16,500,000, a gain of 33 percent over the $12,444,000 of sales in the first quarter of 1938. March sales were probably the highest since June, 1937, apparently passing the mark a gain of 65 percent over a year ago. Although business in March was unusually good it failed to come to the high November level after allowance for seasonal factors.

In that respect the air conditioning industry has followed the pattern of general business. Many Industries established their 1938-39 peaks in the closing months of last year and since then have had a declining trend. Gains INDEX 110 100 90 80 70 40 40 OCT. NOV. DEC Automobile assemblies of 90580 units were at their highest level for the year.

Possibility of a coal shortage caused curtailment of operations by some steel producers, with mills operating at 50 per cent of capacity. Cotton deliveries dropped 9,000 bales in the week. i I i I names as sellers until after the Fair is over. It Is the opinion of many bond traders that the incompleted state of the Fair at its opening will have an adverse effect upon visitors and that revenues at the gate will fall short of earlier expectations. The indenture under which the tonds were originally sold provides that today and hereafter the corporation shall pay to the Manufac turers Trust of New York, as trustee, 40 percent of the gate re ceipts received.

The first $100,000 collected is to be turned over to the Controller of New York City to redeem $100,000 worth of debentures previously deposited with his office as a guarantee of proper perform ance by the corporation of its obii gations under the lease signed with the City. The remainder of the proceeds to be placed on deposit with the bank are to go towards redeeming the debentures on or befora their due date. It Is understood that pro ceeds from the advance sale of special ticket books and season passes, ammounting to more than $3,000,000, are not included In this stipulation which specifies April 30 as the date upon which the trustee will begin to receive payments. Boro Insurance Men Win Cruise Three Brooklynltes, Irving Barba-nell, 7314 21st Samuel J. Aron-son, 919 East 28th and Lawrence Horowitz, 4103 Bedford will sail for Bermuda on Tuesday as guests of the Security Mutual Life Insurance Company, Binghamton, N.

to attend their company's agency convention and enjoy the vacation trip as a reward for exceptional production during the past eighteen months. These three Brooklyn Insurance men have all earned membership in their company's Select Circle, an organization among the agents, membership in which is earned by reason of exceptional production of new business. They are to be especially congratulated by reason of then-having earned this reward during their first year as representatives of Security Mutual The convention party will sail on the Monarch of Bermuda and will consist of nearly one hundred persons including the agents, their guests and officers of the company. Convention meetings will be held on board ship and also at Bermuda. The party expects to return to New York on May 8.

On the eve of the official opening of the World's Fair this morning, the 4 percent debentures of the New York World's Pair 1939 Corporation, due 1941, are currently quoted in the over-the-counter market at 75 bid, 78 asked. The notes were originally issued on Jan. 1, 1937, at $100 denomination. The bonds have sold since issuance in a range between $50 and $95, with the current year's high point being $79.50 and the low $60. According to well Informed quarters, there has not been an active market for World's Pair securities, although It is estimated that some 25 brokerage houses are handling them at present.

The Pair Corporation's financial report issued as of Feb. 7, 1939, stated that of an authorized 000 total, $27,863,700 worth of the debentures had been subscribed or committed, including $2,500,000 ab sorbed by the governors and mem bers of the Terrace Club. Market for Bonds Dull It Is understood in Wall Street that the market In Pair obligations has been dull, largely because these notes were sold on the basis of civic pride and cooperation and not primarily as an investment. Holders of these fully registered bonds are therefore reluctant to have their To Delay Public Probe of Utility Washington, April 29 W) Federal Judge Oscar R. Luhring today referred to a three-Judge court the petition of counsel for Union Electric Company of Missouri, asking for temporary suspension of a securities commission Investigation.

The SEC has charged that Union Electric Company of Missouri made political contributions in violation of the Public Utility Holding Company act of 1935. Judge Luhring asked the Securities Commission to suspend its public investigation of the charge pending a decision by the three-Judge Federal Court in the District of Columbia. Chester T. Lane, SEC general counsel, agreed to a suspension of the public investigation, which was scheduled to start May 1, if In the meantime the company would agree to make available to the commission all records and books that were called for in the commission's order for an Investigation. Counsel for the company agreed to that stipulation.

17. S. INDEX Metal Prices Remain Firm Copper Quotations in Domestic Trade Vary Zinc Sales Improve A firm undertone was evident in non-ferrous metal markets yesterday. Prices generally were un changed from the previous day's levels, but buying as is more or less usual on Saturday was practically at a standstill. In the export market, sales were made at Friday's London wire bar equivalent of 1054c a pound C.

I. F. European base ports. Sales by mem bers of the foreign cartel during morning amounted to 655 tons. There was no change in the do mestic market as the week closed, Phelps Dodge Corp.

was still quoting 10.50c a pound Valley, while other producers and customs smelters were at 1055c a pound. The outside market for electro copper was about unchanged from Friday. Most sellers were holding around 1055c Valley, while buyers indicated Interest at around 10.20c. Some carload business was report ed In the lead market yesterday, but for the most part, activity was at a standstill. Currently, sellers are quoting 4.75c a pound New York and 4.60c a pound St.

Louis. Little business was done in zinc Saturday, but for the week as a whole it is estimated sales probably were about double those of the preceding week or around 2,500 tons. The price structure was firm at 4.50c a pound for prime western at East St. Louis. Transit Revenues Rise Revenues for the transit industry.

for the week ending April 22, 1939, based on telegraphic reports received from a representative group of tran sit operating companies, shaped a slight Increase from last yearTran- slt Journal's Revenue Indicator stands at 101.39, which represents a gain of 1 29 percent from the corre sponding week in 1938. For the week ending April 15, 1939, the Indicator was 99.78. Bush Terminal Co. Net Loss $185,128 Bush Terminal Company reported for the year ended Dec. 31, 1938, net loss amounting to $185,128, after de preciation and interest and provi sion for making good flood damage resulting from hurricane of September 1938.

Revenues from rentals, transportation and other services, less operation and maintenance ex penses, totaled $1,119,459. Net earnings before depreciation and special charges were $108,244. JULY AUG. SEP. with $5598 million; and debits of $4,758 million compared with $4,282 million the previous week.

The decline in soft coal traffic due to bituminous mine strikes was offset by an Increase In anthracite and miscellaneous freight; 558,709 cars moved during the week. Mild Optimism Aids Business Retail Trade Shows Good Improvement-Dispelling Gloom The attitude of discouragement prevalent recently was replaced dur ing the past week by mild optimism in business sentiment according to the weekly review of business by Dun St Bradstreet. The encouraging signs noted were not sufficiently vigorous or widespread to affect ma terially the general trend of activity but business men welcomed the evi dence that, despite the disruption of coal deliveries and the recent political uncertainties, industry was remaining on a remarkably even keel. The buoyancy displayed by trade, as soon as the weather became more favorable was considered an additional heartening factor. Retailing Improve Retail trade responded immediately to Spring-like weather by showing sharp Improvement, as volume exceeded the previous week by a substantial margin.

Many stores conducting extensive merchandise sales reported customer turn-out the best since Easter. Price de creases held the retail dollar volume at approximately 4 to 7 percent more than a year ago. On a regional basis, gains over last year slightly outweighed losses. Distributors who pointed out that retail stocks might be ample for current needs, but not for the demand that would be called out by favorable weather, had the satisfaction of finding their prophesies ful filled. The release of a large amount of deferred buying of seasonal mer chandise largely accounted for the upturn in volume, but In some in stances wholesalers also noted a greater interest In purchasing for fu ture needs.

Although retailers were not as yet relinquishing their cau tious buying practices, more seemed to be of the opinion that there was no further advantage to be gained by waiting for additional price changes. Wholesale sales, while showing considerable divergence In individual lines, were heavier than a year ago on the average. Strike Depressing Industrial news was rather color less. Aside from the continuation of the soft coal strike, with Its depres sing influence there were no develop ments significant enough to affect the trend of production. Many manufacturers seemed still to be extremely sensitive to international developments, and these were disin clined to take any important steps pinding Chancellor Hitler's reply.

In- coming orders were holding fairly steady, producers reported, with the number of requests in some Instances the best in years. Hazel-Atlas Net Up for Quarter Hazel-Atlas Glass Co. reported yesterday for the quarter ended April 1, 1939 net profit of $293,817 equal to 68 cents a share on 434,409 shares, compared with $255,803 or 59 cents a share in the like quarter of last year. For 12 months ended April 1 last net profit was $2,195,976, equal to $5.06 a share compared with $2,320,819 or $5.34 a share for the 12 months ended April 1, 1938. The company declared the regular quarterly dividend of $1.25 payable July 1 to stockholders of record June 15.

Loose-Wiles Loose-Wiles Biscuit Co. reported for the quarter ended March 31 last net profit of $220,114, equal to 32 cents a common share, compared with $139,686 or 17 cents a common share in the 1938 quarter. Twin City Transit Twin City Rapid Transit Co. reported for the March quarter net income of $124,262, equal to 32 cents a common share, compared with $54,334 or one cent on common in the 1938 period. The Week's Results STOCKS Easier.

Industrial average (Dow-Jones) ends $.18 point lower en the week at 128.45; rail average up 0.11 point at 25.86 and utility average off 0.23 point at 22.06. Total volume, 2,858.040 shares. Daily average, 476,340. Largest five-hour smallest, 414,110. BONDS Irregular.

Market average off 0.13 point; higher grade rails op 0.07 point; second grade rails off 0.8S point; utlll-ties up 0.11 point and industrials up 0.15 point. Week's volume $24,194,000. Dally average Largest five-hear day, imallest $3,983,000. COMMODITIES Dow- Jones futures index up 0.68 at 47.90. Then, as traders and investors took time to study the text, came the realization that the speech had scarcely clarified the situation and that uncertainty about the course of events still remained.

Wall Street agreed in principle with President Roosevelt that the Fuehser answer to nis peace plea had "Left the door about an inch open." Reaction set in almost immediately, and the market then con tinued to sag some three points be low its opening high. Volume of trading Increased beyond the 730,000 mark from sales partly inspired by events in Europe and partly by realization of an unhappy domestic business situation. On Saturday trading- was dull aim prices remaineo. virtually unchanged throughout the day and unchanged from the previous Saturday's close. Among the disappointing factors which influenced the market were the disappointingly low earnings for the first quarter by TJ.

S. Steel Corporation, Chrysler Motor Company and several of the larger oil refining concerns. Even the comparatively good reports for the period emanating from General Motors and Bethlehem Steel were not much help towards inspiring optimism marketwise, because of the revelation that second period business was not holding up to January-February-March levels and that production costs had continued rising. Still No Appeasement Prom Washington there was nothing to encourage the market in the way of news. Leon Henderson was at last nominated to fill the vacancy on the Securities Exchange Commission, and the President announced a shake-up in the organization of the many New Deal agencies, but the Street did not see furtherance of the so-called business appeasement program.

One of the features of the financial world during the week was the strong performance of commodities, especially wheat, wool, sugar and copper, partly Inspired by war buying, sugar in particular soared to a new high level. Copper prices be-gain to rise again during the week, after price cuts recently made had been removed and the metal returned in the direction of its more normal quotation level. A cheerful note in the otherwise blue horizon of business was the spurt of Spring retail buying in the department stores, which had been retsred by unseasonable weather. Automobile sales, however, had apparently passed their peak. Uncertainties which confront the stock market at present are not only those of European politics, but a coal strike situation whose quick settlement might provide market Impetus, but whose prolonging will be a matter of definite concern to many industries dependent upon bituminous for fuel.

Locally, the New York World's Fair Is supposed to prove beneficial to business, and close watch will be paid to retail sales to see what effect, if any, this will have upon buving. Brokers who are willing to comment on the Immediate prospects of the stock market seem decidedly less bearish than a week ago, and the feeling is fairly widespread now that manv leading security prices already discounted the possibilities of near-term reduction in profits. Industrial Operations Extend Ji-u ifdSr 7 -jjT BE -T PREPARED IV ADMINISTRATIVE AMO RESEARCH CORPORATION NEW YORK 1P24-I00 1 1 1 1 1 I I 1 I I I 1 I 1 I I I I 1 I I I I I I I I I I FEi. MAR. With few exceptions all compo nents of the administrative and research corporation's weekly Index of business activity showed substantial improvements for the week, and the composite, index made its best gain since end of March to APR.

MAY stand at 81.5 for the week ended April 22. A year ago the index was 66.7. Output of electricity registered a weekly gain for the first time since the beginning of the month. Bank loans of $5,308 million compared.