The Brooklyn Daily Eagle from Brooklyn, New York • Page 19

FINANCIAL NEWS AND SHIPPING BROOKLYN DAILY EAGLE FINANCIAL SECTION QUOTATIONS COMMODITIES NEW YORK CITY, MONDAY, MAY 21, 1934 2 19 ADDRESSES BANKERS TO INTRODUCE TAX Wall Street Notes HIM I II I II I Quick Home Loan Action Demanded To Relieve Crisis BranchBanking Bill Signed By Gov.Lehman Will Provide Many Communities Wilh Street Seems Convinced of Rise Darrow-Johnson Dud Some Brokers Are Expanding Silver as Munitions du Pont Dividend y. i A. RCHFEL f-TH Of t. I mir ii 'n' iii'n i 1'iimkii ilfflr i-ntrt New Minimum In Steel Prices; Production Off Drop in Auto Demand Felt by Mills -Rail Buying Better A new minimum of $1.95 per 100 pounds on the new billet steel concrete bars at Pittsburgh, effective May 28, is announced by the American Iron and Steel Institute. Sheet bars at Cleveland are put at $30 a ton, merchant bars of new billet steel at Gulf ports at $2.20 per 100 pounds and merchant bars of rail steel at Chicago at $1.68 per 100 pounds, effective May 28.

Because of a member of the code withdrawing base prices at various basing points new minimtims on concrete reinforcing bars at Pittsburgh of $1.90 and on merchant bars rail steel at Pittsburgh at $1.80 per 100 pounds are announced, effective May 18, and on structural steel shapes of $2.25 per 100 pounds, Gulf ports, effective May 22. Production Off "Slackening in steel specifications with some suspensions of material recently released by the automobile industry and actual cancellations of orders for automobile parts by one of the leading manufacturers resulted last week in a 3-point decline in steel works operations to 59 percent," states the magazine Steel. "Neither the increase in demand from railroads and some miseella-incentive to manufacture for nor the incentive to manufacture foi stock against the possibility of a general strike in the iron and steei industry proved sufficient to offset i eduction in automobile production and the lack of large scale structural steelwork. "Finishing mill operations, especially in sheets and strip, have become disarranged with some producers unable to accept any more specifications for delivery before June 30 and other with considerably more tonnage released for shipment in June than over the remainder ot this month. "The drop In specifications has not been disconcerting to many producers who admittedly would have ben unable to manufacture all the material they had contracted for and who expected some cancellations." Mutual Life 50 Years in Home Corporation Is Being Swamped by Demands, FaheyTells Senate Committee Washington, May 21 Urging approval of the Administration Housing bill, John H.

Fahey. chairman of the Home Owners' Loan Corporation, told the Senate Banking Committee today it was "imperative" to encourage private capital to take over the burden of carrying home mortgages. Fahey testified Congress should act at once because otherwise next year would find "the wave of demands" htill flooding the Home Owners' Loan organization "and no way to sto pit." Outlining the work of the corporation, Fahey said the home mortgage situation was "easily the most serious debt problem facing the country." The Administration's housing bill, on which the committee is now conducting hearings, ih designed to encourage private lending agencies to take up the mortgage burden by providing insurance for such financing. Fahey advocated the bill's provision for financing home repairs and improvements, saying the Home Owners' Loan office had received thousands of requests for such loanh that they could not handle. Regional offices of the Home Owners' Loan have been "overwhelmed" by demands for loans, to modernize homes, Fahey said.

"This is conclusive evidence" he added, "that there are a lot of people who would be glad to make use of the money if it is made available to them." Despite America's reputation for fine homes, he hald. "so far as taking care of the low income groups are concerned this country is far behind the more progressive countries of Europe." Fahey contended the seriousness of the home mortgage problem had not been recognized generally. Finds Abuses In Yard Rates Mav 21 iPi Many abuses of the railroads' right to make rate allowances to industrial plants for switching cars were reported to the Interstate Commerce Commission today by W. P. Bartcl, director of service.

He recommended, among other things, that the commission urge Congress to repeal the section of the Interstate Commerce act which permits switching allowances. The allowances, ranging from $1.50 to $3 a car, are designed to pay the cost of service which the railroads themselves might under some circumstances be asked to perform. In most instances, however. Bartel claimed, the services were such as the railroads would not normally be called upon to perform. Tracks in some instances, he said, in such condition that the regular locomotives could not operate over them.

In some instances, on the other hand, such as at the plants of a number of the big steel companies, he found that the railroads could run their locomotives into the plants and do the switching now done by plant locomotives. By EDWARD Although the market today was still in the grip of uncertainty through a good part of the session, there is a fairly widely held impression that things are presently shaping up for an advance that will last a week or two. Future action it is felt will depend on the news and the course of business. As a matter of fact, people seem to think now that the worst In the numerous disturbing situations is known, and nowvthey are waiting only for leadership and for Congress to go home. Where "Big Boys" Stand There is much gossip in the Street that some of the big figures of the bear market are now champing at their chains to get into the market in a big way, but on the bull side.

They have been held back by many considerations in Washington and financial sentiment. That there is a really huge buying power not only willing but anxious to go into the market, when as and if conditions are deemed right, is not to be doubted Judging by the conversation one hears in Wall Street these dpys. Darrow Vs. Johnson Financial quarters were in trouble today concerning the Darrow NRA report and General Johnson's reply thereto. The report was, in many respects, a disappointment; its points were neither as strong nor as well taken as had been expected.

As for the General's retort, it was regarded as too strong but pretty well reasoned. The trouble arose in the conflict between the will to believe the worst of NRA and recognition that a widely heralded attack was something of a dud. Silver "Munitions" An interesting point was raised today by the Committee for the Nation 'in the course of a study recommending a further increase in the value of gold and a half-way course with respect to silver. This point was that larger stocks of silver will give the U. S.

an important but little-noticed advantage, in the event of trouble on the Pacific. "It is the destiny of the United States to hold the thinly settled fringes of white man's land facing the Pacific. In times of unrest we may have to exert our influence," it says. 'Then neither gold nor paper is acceptable in the Orient, as England found during the World War. She could continue her operations In the Far East only by borrowing silver from us.

In an emergency, an added billion ounces of silver might be a force of incalculable value In our hands." Broken Expanding So much has been heard lately of brokers curtailing their working forces and more or less cogitating whether they ought to stay in the business at all. that evidences of expansion by brokerage houses are as welcome to the profession as a check at Christmas. Several houses are actually doing that thing, opening domestic branch offices. In addition, some of them are opening offices in Canada and In London and several people are now on the other side, considering the possibilities. The theory seems to be that important traders do not mind where they do their operating, and as for the general run of people they will be more confident of a square deal in stocks than it has previously been po.ssible for them to feel.

Du Pont Rate Increased There was more than a little of the unexpected in the increased dividend announced today by Du Pont. Getting no more from General Motors, Just announced another cut in cellophane prices and with rumors of general recession In chemical prices affecting it. about the last thing looked for at this meeting was more money for stockholders. Stockyard Loss First reports of the loss in the Chicago fire that would have to be borne by the insurance companies were, as usually happens, exaggerated. Instead of the $10,000,000 to $15.000000 estimated the total will be somewhere between $4,000,000 ana distributed prooaoiy over some 200 insurance companies.

Market Services There is some speculation as to the fate under the stock market regulation bill of the numerous "tipping" services that have been operating, even though in sharply reduced number, during these past few months. Their number reached an all-time high coincident with the 1929 stock peak. Subsequently one after another fell by the wayside. But a considerable number managed to hang on, and there is some language in the bills that seems to hit them hard. Silver Message Silver shares after an uncertain beginning, responded relatively well, considering the stagnation in the market, to announcement that the President's message dealing with silver would go to Congress today.

The general view seemed to be that the message and the bill that has been drawn to put its recommendations into effect, will not differ materially from the first outline of the Roosevelt position. 'Jersey' Report Standard Oil of New Jersey's 1933 report was Just 3 cents a share under the most optimistic predictions made, and much better than the general run of estimates. There has been so much irregularity in results of the oil companies last year that approach to the $1 a share mark was regarded as decidedly good. Of course, there is still a wide gap between stockholders' expectation and actual performance. Familiar Sound Back about 1920, this country was decidedly upset by predictions from an eminent admiral in the U.

Navy that United States supplies of crude oil would be depleted in five or six years at the then, rate of consumption. Everybody knows what happened. Hence there was something of a familiar ring in Secretary Ickes' statement to a Congressional committee that present production methods are wasteful and that, if his control bill is not passed, our supplies would run out in 0 oi 1-years. It is doubtful whether it will be possible to get people any more excited about this prospect than about the alleged wheat famine. Treasury Gold Stocks Increase Washington, May 21 (A) The Treasury gold stock has reached another peak, despite the recent loss of $10,000,000.

Gold assets May 18, the latest day for which figures are available, were reported at $7,756,969,650. The previous high was $7,121,299 on May 9. On Ma" 10 there was a sharp drop to $7,764,578,848. The secovery has been steady since this decline. But large quantities of imported gold, approximating $25,000,000.

remain unaccounted for on Treasury books. The loss generally is attributed stabilization fund operations and in some quarters it Is believed the fund has been employed to buy silver In anticipation of legislation to build the silver 'monetary reserve to 25 percent in relation with gold. Philco Supplying Radios to Ford The Philco Radio Company Is supplying the Ford Motor Company with approximately 1.000 automobile radios a day for Ford cars. Company has been shipping radios to Ford for about two weeks, averaging about 5.000 to 6.000 units a week. The model supplied to the Ford Company is similar to that which Philco supplies to other loading automobile manufacturers Including Chrysler, De Soto, Dodge, Plymouth.

Htipmoblle, Nash and Studcbakcr. Money Market Call money renewed at 1 percent. Bankers' Bills Bankers' acceptances remain quiet with nominal rates unchanged at to 3-16 percent for 30, 60 and 90 days; 3 to Ji percent for 120; '2 to percent for 150 and 180 days. Commercial Paper The commercial paper market as active with rates unchanged at 1 percent to 1U percent. Time Money Time money was ''i to 1 percent for 60 to 180 days.

Spot Silver Higher Handy Harman quote silver. New York foreign, 451sc. up 'ic; domestic 64Sc. unchanged. There was a holiday in London.

iTreasury Statement! Washington. May 21 W) The position of the Treasury May 18: Receipts, expenditures, balance, Customs receipts for the month, $12,740,061.91. World Industrial Production Rises World industrial production continued increase in the first quarter of this year, according to the monthly statement on economic conditions in foreign countries made public by the National Industrial Conference Board. In Great Britain industrial production was higher than in any year since the World War boom, said the survey. Passenger Car Registrations For April Lower Detroit.

May 21 Total passenger car registrations for April are estimated at 220.000 units, according to R. L. Polk Company, Registrations have- been revised downward from an original estimate of 225.000 units made the first of May. The estimates are based on reports from 30 States representing 39.58 percent of the United States market. During April in these 30 States 87.616 passenger cars were sold which is an increase of 20.88 percent over the total for March, and an increase of 84.48 percent over April, 1933.

Commercial car registrations for 30 States representing 44 84 percent of the United States for April were 16.990, an increase of 119 percent over April of last year. The increase of truck registrations over March, 1934. amounts to 10 40-100 of one percent. The commercial car estimate made by Polk for April of 37.000 still stands. P.

R. R. Pickiip Brings Profits More than $400,000 in new business, a steadily mounting volume of traffic, and material economies in rail operation have resulted from the recent Introduction of collection and delivery service for less than carload freight on the Pennsylvania Railroad. It is revealed in reports made public by President W. W.

Atterbury. Since its inauguration in December so popular has this innovation in freight handling become that the tonnage marked for collection and delivery has more than quadrupled In volume and now represents approximately 20 percent of the total less than carload traffic moved by the Pennsylvania. B. NEW TRAINS Construction of the Baltimore Ohio's two new-type streamlined passenger trains is under way and the new equipment will be placed In service next Fall, according to H. E.

Simpson, general eastern passenger agent. One train will be propelled by a Diesel engine and the other by steam. Mr. Simpson said that the steam-propelled train w'ith proper streamlining will be able to reach a speed of 125 miles per hour, although such a speed will probably not be attained In regular service. Although the new trains are expected to permit substantially faster passenger schedule company states that Inrreased speed must be consistent with safety and comfort.

Cotton Spinning Is More Active Washington. May 21 iTi The cotton spinning industry was reported today by the Census Bureau to have operated during April at 104 5 percent of capacity, on a single-shift basis, compared with 102.9 percent In March and 95.7 percent in April Inst year. Spinning spindles In place In April totaled 31.011.200. of which 2fl.450.7.0 were nrtivp at some time during the month, compared with 31.01t.574 and 503 876 In March and 30,966.794 and 23.416.680 In April last year. Active spindle hours for April totaled 7.260.010.234 or an average of 234 hours per spindle In place, compared with 7,720,217.745 and 249 in March and 6 569,136,738 and 213 in April last year.

Albany, May 21 (P) Branch banking in rural up-State New York communities where banking facilities are nonexistent was provided with the signing by Governor Lehman of the Stephens bill. Mr. Lehman, himself a banker of International reputation before he entered politics, said in affixing his signature Saturday night: "This bill should in no way injure the sound unit banks in this State, nor will the bill reduce the amount of local credit available to residents of small communities." The measure, sponsored by Assemblyman D. Mallory Stephens of Putnam County was the local point of a bitter controversy before the Assembly committee in both houses and a hearing before Lehman. Banks of New York, which have had branch privileges within the city, must remain in the metropolis.

Before a branch bank can be esta-lished under the Stephens law approval must be obtained from -the Superintendent of Banking and two-thirds of the Banking Board. Said Mr. Lehman: "Impartial and disinterested experts in banking are argely in agreement that the banking structure of this country would be materially strengthened by a properly regulated and restricted system 01 branch banking." He said there were 182 communities without banking facilities. Half of them had banks which closed during the depression. Under the bill the State is divided into nine districts.

They are: 1. kings, Queens, Nassau, Suffolk. 2. Richmond. New York.

Bronx. 3. Westchester. Rockland, Putnam, Dutchess, Orange, Ulster, Sullivan. 4.

Columbia, Rensselaer, Washington, Greene, Albany, Schenectady- Saratoga, Warren, Essex, Schoharie, Montgomery, Fulton, Hamilton. Otsego, Clinton. 5. Jefferson, Lewis, St. Lawrence, Franklin.

8. Herkimer, Madison, Oneida, Onondaga, Oswego, Cuyuga, Seneca. 7. Chemung, Schuyler, Tioga, Tompkins, Broome, Delaware, Cortland, Chenango. 8.

Monroe, Wayne. Livingston. Ontario, Yates, Steuben. 9. Chautauqua, Cattaraugius, Allegany, Erie, Niagara, Wyoming, Genesee, Orleans.

Farm Prosperity Key to Business Without agriculture in a relatively prosperous condition, our so-called industrial prosperity cannot have a sound foundation, Henry H. Heimann, executive manager of the National Association of Credit Men and until recently director of the United States Shipping Board Bureau, declares in his message to the association's 20,000 members on the occasion of Its forthcoming 39th annual convention, which is to be held in Los Angeles from June 11 to 15. "Although the business indices show a continuation of the upward trend, the leveling off of wholesale commodity prices and the perceptible decline in retail sales clearly Indicate the seasonal letdown is about here," he says. "Various factors indicate the seasonal rcession will be somewhat more than normal this year. If we can be spared legislative disturbances and if the existing drought throughout our agricultural section Is broken, the Fall will bring us a brisk revival.

The recent heat wave and the absence of rain are so general throughout the Northwest, Southwest and Southern States as to be real cause for alarm. The unprecedented early heat wave added to the dismal crop outlook. "Reasonably good crops at satisfactory prices are almost indispensable to sound recovery. Many of our industrialists fail to realize that the largest single unit of purchasing power rests in agriculture. The unusual emphasis placed upon the need of restoring industrial labor's purchasing power through NRA has diverted attention from the fact that maladjustment between the purchasing power of agriculture and industry originally contributed ao largely to our problem and prevented a quick recovery." Chevrolet Has Gain in Sales Retail sales by Chevrolet dealers during first ten days of May this year totaled 24.228 units, against 18.600 in same period of May last year.

Retail deliveries during the year to May 10 totaled 305.257 units, (gainst 202.738 In like period of 1933. Production of cars and trucks up to Mjy 10 this year amounted to 380.343. against 230.911 in similar period last year. Procter Gamble Advances Prices Effective Immediately the Procter tt Gamble Company has advanced prices an average of 5 percent on all products. Another price advance Is likely unless the present excise tax on cocoanut oil and other oils used In ioap manufacture is not repealed aoon.

The present mark-up Is without reference to the advanced tax. Leo T. Crowley, chairman of the Federal Deposit Insurance Corporation, who spoke this morning at the annual convention of the Illinois Bankers Association in Springfield, III. His speech concerned the Federal Deposit Insurance Temporary Fund. Ickes Urges Oil Control Regards Closing of Many Loopholes as a Vital Necessity Washington, May 21 (P) Enactment of oil production control legislation this session was urged today by Secretary Ickes.

The Oil Administrator testified before a Senate Subcommittee in favor of the Thomas Okla.) bill to plug loopholes in the oil code. The revised measure would give Ickes almost complete control over production. The administrator would be empowered to set allowable production quotas not only for States, but for individual pools or wells within States. He likewise would be given authority to control imports and to keep a close check on the books and operations of oil companies. Ickes said he regarded the Thomas bill "as a vitally necessary measure," and added he considered its passage at this session of Congress "urgently necessary." "During June of next year the National Industry Recovery Act will expire by its own terms and the code of fair competition for the petroleum Industry will no longer be operative." the Secretary said.

"Unless Congress acts in the meantime to adopt some permanent legislation for the regulu.ion of the petroleum industry we will again be faced with the situation existing before the passage of the National Industry Act. "There Is no reason to suppose that the individual producing State will be any better qualified at that time to eope with this problem than they were during trie disastrous Spring of 1933. "Indeed, it must be obvious that the individual States are Inherently incapable of any effective control over a problem which is national in its scope." The Secretary said one "especial reason" why the bill should be enacted this se.ssio" was that the future effectiveness of the oil code itself was doubtful." Cigarette Sales In April Cain Washington, May 2 Production of all types of cigars and cigarettes increased during April as compared with April, 1933, according to statistics compiled by the Bureau of Internal Revenue. Small cigarette output Increased bv more than 1,000,000.000 totaling as against 7.973.021,190 for April, 1933. Output of large cigarettes during last month amounted fx) 11,817,000 as against 196.811 for April, 1933.

while large cigar production totaled 345.066.731 this April as compared with 321.206,573 for last April. Small cigar production amounted to against 10.896.826. April production of snuff and manufactured tobacco declined from April, 1933. Output of the former amounted to 3,198.039 pounds as against 3,440.392 pounds last April, while the latter amounted to pounds against 25,407,025 pounds in April of last year. Colored oleomargarine production showed a slight increase in production, totaling 34,312 pounds for April against 33.712 pounds last April, while uncolored oleomargarine production declined from 18.324.680 pounds to 16,111.420 pounds last month.

Playing card production increased from 2.724.825 packs In April a year ago to 3,074.028 packs last month. A BUSINESS MAN'S PHILOSOPHY By WILLIAM FEATHER 1 Nothing Is so upsetting to the mind, trying to concentrate Itself on a big Job. as worry about a lot of unfinished small Jobs. When I call on man I can tell how the small Jobs stand with him. If he Is nervous and Jumpy I know that he is working two hours, two days, or maybe two months behind schedule.

His only salvation is to put in overtime, or hire more help. He must catch up and get on top of the little things. The instant you get Into a room with a man who has mastered the little things vou know it. He Is able to apply hlmtelf to th bualnes at hand. Warren Barbour, Senator from New Jersey, who is introducing a resolution in the Senate today proposing that the Finance Committee make a study of the practicability of a federally collected manufacturers' sales tax.

Florida Stock Tax Invalid Court Enjoins Collect tions on Out-of-State Business Washington, May 21 The Supreme Court enjoined the collection of the Florida stamp tax on stock market transactions consummated outside the State. Although orders for stock were placed in Florida in the branch offices of members of the New York Stock Exchange the actual transactions were made outside the State, brokers contended. The tax was to be levied on written memoranda, documents or communications on which the order to New York is made. The lower court permanently enjoined enforcement of the tax on the grounds that it was unconstitutional. Stamp taxes are collected in New York on th traasactions.

Pineapple Men Plan Sales Drive A four months campaign of special advertising will be launched May 25 by the Pineapple Producers Cooperative Association, using newspapers in a selected group of metropolitan markets, outdoor posters in 44 cities and several nationally circulated trade Journals in the grocery field. The Winter campaign in national magazines and trade journals ended in April. "Canned Hawaiian Pineapple for Summer Energy" will be the theme of the new advertising, which will develop a forceful selling appeal based on scientific evidence and pointed toward garnering what the producers consider a valuable Summer market for the fruit. Using the "pineapple daily for health" selling urge, which has substantially increased sales since November. 1932.

this intensive drive is expected to sustain the demand built by previous campaigns and to keep pineapple sales at high levels throughout the Summer. GETS ELEVATOR ORDERS The Westinghou.se Electric Elevator Company has received an order for installation of electric stairways In Bullock's Department Store in Los Angeles. Marshall Field Is installing Westinghouse escalators In its main retail store here at a cost of over $500,000. fFArH HI 1141' OF NORMAL The Mutual Life Insurance Company of New Tork completes this month the 50-year occupancy of its Home Office building at 34 Nassau New York. This building is one of the few in existence continuously occupied by the same company for half a century and still completely modern in its business appointments.

The Mutual Life Issued its first policy in 1843 and thus began its career as the "First American Life Insurance Company." It was then located at 44 (now 56) Wall the present site of the Bank of New York Trust Company. The land at 34 Nassau extending the entire block on Nassau from Liberty to Cedar Sts and 111 feet on Cedar St. and 116 feet on Libertv was purchased by the Mutual Life in 1882. It had been the site of the United States Postoffice from 1845 until 1875. In 1882 the Government having moved the Postoffice to its present, then new, quarters in City Hall Park, sold its Nassau St.

land to the Mutual Life at auction for $650,000. For nearly 250 years this land had been continuously changing hands. The Postoffice had occupied it since 1845. Before that it was the site of the "new" or Middle Dutch Church erected there in 1727. Na.ssau St.

was then Kipp Liberty St. was Crown St. and Cedar St. was Queen St. It was from the belfry of this church that Benjamin Franklin is said to have conducted his experiments in electricity.

Munds. Wlnlow ic Potter hiive pre-pnrcd an annlytlciil comparison of New York City hunk lock end lnurnce rompenv fttopk. AlOVC NOMl The abov chart dWrlhiited hy 8CTWCCN 50 HD H'l O' 1 U. S. Wheal Belt Drought in N.

Y. City Bank Slocks Decline New York City bank stocks registered a further decline during the past week. The aggregate value of the sixteen leading issues, according to records compiled by Holt, Rose St Troster. totaled $1,543,083,000 on May 18, as compared with at the close of the previous week, a decrease of $23 589.000 or 1.51 percent. The current average yield of the sixteen issues of 5.19 percent, compares with a yield of 5.11 percent at the close of the previous week.

The current market value Is now 1.29 times their known book value, against 1.30 times on May 11. Based upon current figures the sixteen Issues are now quoted at an average of 12.3 times their known earnings, against 12.5 times on May 11. Car Loadings Up On 2 Railroads Revenue freirht car loadings on the Atchison. Toivka and Santa Fe I Railroad for the week rndrd Mav I 19 totaled 22.674 cars compared with 22.801 In the previous weelt and i 21,560 in the same week a year ago. C.

A O. Loading Loadings on own lines In week ended May 19 by the C. O. In-creased 17.7 percent over the same week 1933. against an Increase of 17.9 percent In the previous week.

du Pont Comwnv Raises Dividend i Philadelphia. May 21 E. I. du i Pont de Nemours At Co. der-lared a quarter dividend of 6A cent on the common stock, payable June I rec-lord May 31.

placing the stork on a 1 12.60 annual basts agAliut $2 pre- viously. the Clark, Child 4 Keerh. mrmben N. V. normal molttur In NOML 1 J.

LINrSSHOW FERCF.NTAC8 Stock Exrhanie, how the enormoiw area of drought and tub. the I'nlted State. 3.