Indianapolis Times, Volume 46, Number 121, Indianapolis, Marion County, 29 September 1934 — Page 12

Business and Industrial Developments.

PAGE 12

SEASONAL RISE GAINS IMPETUS IN TRADE LINES Fall Upturn In Business Seen Gaining Speed in Next Few Weeks. Ttmrt Sprrtnl NEW YORK Sept. 29 —Business analysts professed today to see gathennß evidences that a fall upturn In business had been set in motion and likely would Ram momentum during the weeks Just ahead. In support of their views they brought forward many statistical factors other than the most recent Improvement in steel operations and the rise in car loadings. They contended that the whole groundwork had shaped itself to warrant belief that the pendulum was in a recovery swing. Incidentally, it was represented that some developments which were adverse in themselves are now contributing to the sounder basis for business upturn. The textile strike was cited as an example. Textile Output Curbed It waa pointed out that at the beginning of the strike the ratio of stocks to unifllled orders in rayon fabrics was seriously topheavy, with output at about 2.200.000 yards weekly. Production dropped to a basis of 723.000 yards weekly. While this did not entirely correct the earlier unfavorable position, it was said, distinct improvement was attained Another circumstance cited was that production of cotton textiles was rising steadily during August in the face of a decline in unfilled orders so that at the end of August I unsold stocks were about 30 per cent larger than on May 1. The strike ! was regarded as a check on that unfavorable trend.

Good Far tom Cited So-called favorable factors on the present business horizon were enumerated bv the International Stati'Mcal Bureau. Inc., in a review of the business outlook. The list included as recent developments of the last few weeks:— Rise in commercial loans, rise in speculative commodities, shading of retail prices, increase in consumer expenditures, upturn in production of nondurable products, drop in federal emergency relief disbursements. rise in agricultural payments by the government and a drop m the ratio of department store stocks to sales. The increase in consumer expenditures was emphasized as of particular significance. On the point of conservatism, however, it was pointed out that commercial loans, despite recent rises, are still below the total of a year ago. NEW LIVESTOCK RATES EFFECTIVE ON MONDAY Reduced Railroad Charges Are for Relief of West. The emergency livestock feed rail rates, established at the request •of the department of agriculture for the relief of western cattle owners, will go into effect on Monday. They set a rate of 62 2-3 per cent , of the standard commercial hay rates for millet, cowpea hay. soy bean and alfalfa hay. and of 50 per cent of the standard hay rates on stover and com stalks (shredded or not shredded*, beet tops, cactus, ensilage. fodder • including cane fodder*, straw (including bean or peai, corn cob* and sorghum cane. These emergency rates will expire Dec. 31. next. CREDIT SURVEY ENDED Treasury Aids Complete Work in Chicago Area. B'l Timet Special CHICAGO. Sept. 29. Dr. C. O. Hardy, member of the Brookings institution. Washington, and Professor S. H. Nerlove of the University of Chicago, who have been in charge of the field work for the treasury department credit survey in the Chicago district, have closed their offices here. The survey was undertaken to ascertain the availability of bank credit to small and moderate-sized establishments, chiefly in amounts of SIO,OOO or less. Dr. Hardy and Professor Nerlove studied approximately 1.500 cases, which have been forwarded to Washington for consideration. OLSON HITS RATE PLEA Governor Condemn* Railroad Aim for Coal Boo*t. $* Timet Spinal ST PAUL. Sept. 29—The proposal of the nation's railroads to increase coal freight rates would impose an unjust and unreasonable burden upon the consumers of the northwest. Floyd B. Olson. Governor of Minnesota, declared today. Mr. Olson is the first Governor to make a public statement against the railroads' plea. AIR TRAVEL EXPANDS Gain of 3# Per Cent Reported by United Air Lines. An increase of 30 per cent in its passenger traffic and 130 per cent in express shipments dunng the first eight months of the year over the corresponding period last year was reported today United Air Lines. United transported a total of 98772 revenue passengers, contrasted with 76 02* in the same period of 1933

■■ Retail Coal Prices ins loilowiaa pncc* represent ouoouoa* trow t*4l IndlsnmnoU* eo dr:er A .'Vceot osrrvin* -hsree Mr ton tl> • idM imimimtc irtu rutin A:r metis *U *. Brorlt %g IB Brt’il MB Ran Oak' INI Sir* Itt N| Sim I u Indians for scl : **B*o Ho. 4 and • 573 Indiana Erf •• • 1 71 Zcntueky U Group "S'* Tjl Porar.OlS*• Lump 3J porahon*** Erf _ •• *• p'jraboa a* him Bjb • ii , i 11 K* Kim Sm-aeieas 134

Trend of Carloadings

CARLOADINGS ~ r.euuxtl rau.ios i or CAMS O* CA*5 lit# 1 f- ' '■ l M ■ ■- ■ -| Ytaw ~ —1 h Ml IK tnocp ■ . - - i ,M, Z3 :== SEFTIMUR I3 : OATC - ’ ims z: • —- >lO j 41 ~ or —— ece ZPi I Pt= H ilo —- uj M LpD 14— j# S Compiled by Brook# Earmaf Indicator

Gleaning the News

Midwest Business Good The Kansas City Federal Reserve bank reports that business in that area has shown an increase despite the drought. Wholesale and retail trade, farm purchasing power, clearings and savings deposits all show gains, it is said. MrLellan Sale Deferred No adidtional offers were submitted yesterday for the McLellan Stores Corporation and Harold P. Coffin, referee, ordered hearings I postponed to Jan. 31, next. Interurban Lease Approved The petition of Bowman Elder, receiver of the Indiana railroad, for permission to lease interurban lines operated by the Public Service Company of Indiana and the Indiana Service Corporation, have been approved by the Public Service Commission. The proposal already has received the approval of the Marion ; county superior court. Net Los# Reduced A net loss of $80,586 after all charges was shown by the Madison Square Garden Corporation and wholly ow ned subsidiaries during the three months ended Aug. 31. In the Wall Street - BY RALPH HENDERSHOT Timet Special Writer. NEW YORK, Sept. 29.—Foreign trade figures for August and the first eight months of 1934 furnish convincing proof of the effectiveness of dollar devaluation as a trade stimulant. We had an export surplus of $52,450,000 for the month and $259,599,000 since the first of the year. In both periods exports were up sharply and imports

were down. The theoretical connection between currency devaluation and international trade is that the cut in the dollar value was the equivalent of a reduction in the price of our goods, the purchasers abroad being able to buy more dollars with their respective

it', K

Hendershot

currencies and consequently more goods. To the extent that prices rose domestically in response to the devaluation thus advantage was erased, but the spread has remained | sufficiently large to make our goods attractive abroad. In a sense, the cut in the value of the dollar constituted a tax on wealth, measured in terms of currency and credit paper, for the benefit of debtors, who owed money on their tangible properties. It reduced the purchasing power of the dollar and raised the dollar value of property and the production of property. But when current prices are measured against prices which have been accepted as representing normal, it is obvious that holders of currency and credit papier still are better off than they were under normal conditions. u m a AND when it is considered that the devaluation, in addition to having helped Americans to sell I their goods in other countries, kept Ia great many individuals and corporations off the rocks financially. which in turn kept business going and more people employed than otherwise would have been the case, it is difficult to see how the position of opponents to devaluation is tenable from a practical point of \icw\ And when the moral issue is raised it usually is hidden too well under the cloak of selflshnes to make much impression. The United States Chamber of Commerce has asked the President, among other things, to state clearly his attitude toward further devaluation. It should be obvious to that organization that since currency and internaional trade are so closely linked to each other, the President is hardly in a position to express a definite opinion at this time, particularly in view of the fact that other important countries have not let their currency plans become known.

IT is conceded quite generally that uncertainty over currency values is having an adverse effect on trade, but this effect probably is not as great as is generally supposed. It undoubtedly finds reflection chiefly among bankers who do not wish to loan 60-cent dollars and run the j risk of being paid back in 50-cent ! dollars. Business men generally have no hesitancy about making contracts on the basis of the dollar. Asa matter of fact, they seem quite anxious to secure dollars irrespective of their worth in gold. But. of course, few people would like to see wild inflation # in this country, which would result if the gold content of the dollar were reouced too often. That is what the Chamber of Commerce is supposed :to be afraid of. but one wonders just how sincere they are wnen they put up such straw# men.

Abreast of The Times on Finance

corresponding period last year the deficit amounted to $165,523. Industry’s Trend Down Manufacturing activity in August ran counter to the usual seasonal movement and registered a decline, according to the National Industrial Conference Board. The number of wage earners employed in the month was 1.6 per cent less than in the preceding month, total manhours worked fell 3.4 per cent and pay rolls dipped by 3.3 per cent, according to the report, which was based on data from twenty-five manufacturing lines.

RISE CONTINUES IN COMMODITIES 26* in Wholesale Group Register Increase During Week. By Timet Special NEW YORK. Sept. 29.—Following the halting tendency of a week ago, wholesale commodity prices in the week ended Sept. 24 registered an increase. Dun & Bradstreet, Inc., reported today. Upward price changes occurred in twenty-six articles, against twenty-one declines, whereas in the preceding week advances and declines were alike at 30. Foodstuffs resumed their upward course, following the check which appeared a week ago. Prior to last week there had been nine successive weeks of advance. Trading in butter showed considerable improvement and the tone of the market was quite firm. Top grades advanced about 1 cent per pound. 92 score extras being quoted at 26 1 i cents, compared with 24 cents ruling at this time last year. Lower grades also participated in the improvement. Domestic grain markets showed continued weakness during the week, with demand only fair and offerings of foreign grain at or near an import basis exerting a check on price advances. Receipts of hogs and sheep increased in the leading livestock markets, while those of cattle and calves declined. The settlement of the strike in the textile industry checked the rising trend of cotton goods prices, which were unchanged from last w'eek. Orders fell off rather abruptly. as buyers now realize that no shortage of goods is in prospect. TOBACCO TAX LIFTED Procesing Levy on Burley Up From 2 to 6.1 cents. By United Prest WASHINGTON. Sept. 29.—The agricultural adjustment administration today increased the processing tax on burley tobacco from two cents to 6.1 cents a pound and eliminated the levy on Maryland tobacco. The tax on burley tobacco to be used in the manufacture of plug chewing and twist was increased to 4.1 cents. All the changes are effective Oct. 1. Other tobacco rates were unchanged. FOOD PRICES RISE HERE Indianapolis Index Up 1.2 Per Cent in Two Weeks. By Time* Special WASHINGTON. Sept. 29.—Indianapolis retail food prices advanced 1.2 per cent during the two weeks’ period ending Sept. 11. it was announced today by the bureau of labor statistics. The average advance for the entire country was 1.3 per cent for the period, according to Isadore Lubin, bureau chief. Prices are up 5.2 per cent in Indianapolis over Sept. 12. 1933 and 15.7 per cent over Sept. 15. 1932. LAND BANKS STUDIED Government Holding Bulk of Outstanding Obligations. By Timet Special NEW YORK. Sept. 29 —Of the total of $1,600,000,000 of Federal Land bank outstanding, more than one-third are held by the federal government or agencies and corporations created by the government, C. J. Devine & Cos.. Inc., point out in a special booklet just prepared containing a study of these bonds. Os the total outstanding, it is added, $553,793,000 were issued in the fiscal year ended with July 2, 1934. KRAFT IN NEW POST Frederick Kraft, vice-president of the Kraft-Phenix Cheese Corporation. who for the past twenty-two years has been manager of the eastern division of the company, will take over direction of the company's subsidiary organizations, with headquarters in Chicago, beginning Oct. I, It was announced *todaj.

INDIANAPOLIS, SATURDAY, SEPTEMBER 29, 1934

FARMERS WILL DISCUSS AAA’S CORN-HOG PLAN

Community Meetings to Be Held to Determine Sentiment. By Timm Special WASHINGTON, Sept. 29—Indiana will have 1.000 or more community meetings of farmers within the next fortnight to determine whether or not the corn-hog control program of the agricultural adjustment administration should be continued next year, it was announced today by Henry A. Wallace, secretary of agriculture. Similar meetings, some 15,000. will be held throughout the corn belt. Opportunity will be given every farmer who is participating in the current corn-hog contract program to vote on its retention. In addition. the whole AAA movement will be open for discussion. The meetings are being called by the corn-hog production control associations. These associations are to provide the machinery for the farmers themselves to take the referendum among the 1,110.000 contract signers. There are 2,100 corn-hog associations, covering two-thirds of all the counties in the United States. The questions to be voted on include: 1. Do you favor an adjustment program dealing with corn and hogs in 1935? 2. Do you favor a one-contract-per-farm adjustment program dealing with grains and livestock to become effective in 1932? Acreage Reduction Advised By United Pre** WASHINGTON, Sept. 29. Less com acreage than the 1932-33 average was suggested today by A. G. Black, chief of the AAA corn-hog section as a logical program for next year. If corn-hog raisers decide at the referendum to be held throughout the country during the next two w r eeks to accept continued federal regulation, Mr. Black suggested that the 1935 corn control program specify a planted area of 10.000,000 to 15.000,000 acres below the 1932-33 average of about 105,000.000 acres. “If some leeway is provided to permit building up reserves,” he said, “an area of 10,000,000 acres under the 1932-33 average, or right close to the acreage planted this year, will give Us plenty of corn. “The object no doubt would be not to reduce acreage below that planted this year, but to forestall and prevent an abnormal and pricewrecking increase.” In the case of hogs, Mr. Black suggested, an increase to offset the effects of the drought “might be advisable.” “We first want to know whether the producers want any program,” Mr. Black said. “If their vote shows that they do, then representative farm leaders will be asked to help whip a contract into shape for a sign-up this fall or early winter.”

INCREASE SEEN IN BUSINESS ACTIVITY New Developments Indicate Bright Outlook. All increase in general business activity during October over the same month last year is indicated in a survey released today by the United Business Service of Boston. The bright outlook is based on a number of recent developments. These include the resumption of the textile operations, the upturn in commercial loans, stability in retail trade, the approaching peak of corn marketings, and the rising trend of check transactions. The prices of manufactured goods have declined during the summer months and are in a more equitable comparison with raw materials, it was stated. The more attractive prices for finished products will tend to stimulate demand, and thus increase the total volume of business, the survey shows. The greatest improvement in trade during October is expected in the southern and western parts of the country. PRODUCE SHIPMENTS SHOW ACCELERATION Midwestern Carlot Movement Still Below Year Ago. By Timet Special WASHINGTON. Sept. 29. The rate of produce shipments speeded up a little after the middle of September with active marketing of northern vegetables and the progress of the apple and grape harvest, the department of agriculture discloses. The combined carlot movement, although increasing, was lighter than in late September a year ago, it was pointed out. Trade conditions are generally rather slow in the large markets. Recent price changes are mostly downward. Onions, sweet potatoes, cabbage, carrots, lettuce, tomatoes and celery are declining. TO AIR REGULATIONS New Savings and Loan Insurance Rules to Be Explained. By Timet Special COLUMBUS. 0.. Sept. 29. The new federal savings and loan insurance regulations will be explained to representatives of the more than 700 state building and loan associations at the forty-sixth annual convention of the Ohio Building Association League in Cincinnati Tuesday and Wednesday. FYed W. Catlett, a member of the federal home loan bank board in charge of the Federal Savings and Loan Insurance Corporation, will discuss the insurance features, the association hag announced.

AAA ALLOWED MOVE TOWARD FARM BALANCE

New Law Intended to Bring Farmer Into Position of Equality. (Thi* th<* third of a aorira of five article* written for the Serippa-Howard newspapers by the head of AAA, describing the RooseTelt farm program.) BY CHESTER C. DAVIS Administrator. Agricultural Adjustment Act The agricultural adjustment act, passed in May. 1933, offered the American farmers a method by which he could progress toward the achievement of a balanced agriculture. It was intended to bring the farmer into a position of parity—that is, equality—with other American producers. It named seven commodities as "basic”: Cotton, wheat, field corn, hogs, j-ice, tobacco and milk and its products. (In 1934 the act was amended to add sugar, beef and dairy cattle, peanuts, rye, flax, barley and grain sorghums.) In addition, the act made it possible to assist the producers of other farm products through marketing agreements and licenses. Certain Period Selected Equality for agriculture had to be expressed in terms of actual prices and actual proportions of the national income. For a starting point, a period had to be selected when price relations among the various producing groups in the nation were stable and considered to be equitable. Such a period was that which preceded the World war. Accordingly, for all of the “basic” commodities except tobacco, which has to be considered in terms of the post-war decade, the period for calculating parity prices. These, the act declares, represent the fair exchange value for farm commodities in terms of the goods farmers buy. The effectiveness of plans under the act depended on their meeting three requirements: First, production of the various commodities had to be controlled. An adequate reduction of surpluses had to be effected on the farm. Without such a reduction, action further along the line would be futile. Second, the farmer who reduced his output had to be assured of protection against predatory individualists who refused to co-operate. Third, the well-being of the consumer of farm products had to be considered along with that of the farmer. Get Benefit Payments Farmers are making contracts with the secretary of agriculture for adjustment of their production. In return for their co-operation they receive benefit payments. Some of the payments take the form, as in the wheat program, of benefit payments on the part of a farmer’s crop that is used domestically. (This is in substance what has been known for several years as the “domestic allotment plan.”) Some of the payments take the form, as in the case of a part of those made under the cotton program, of options on the cotton stored by the old farm board. These options enable the co-operating farmers receiving them to profit by a price rise while not suffering from a price fall. In other cases the government pays rent on acres either plowed up or not planted, provided they are not used for the substitution of other competitive crops. The maximum amount of the benefit payment on any commodity is determined by the difference between the current price of the commodity and the parity price. Causes Crop Adjustment The benefit payment method brings about the crop adjustment needed to secure a proper carryover and proper price. It protects the consumer of farm products by insuring that benefit payments will not carry prices higher than the parity level, and it rewards the cooperating fanner by giving him a greater total return, under prevailing conditions, than the nonco-op-erator. Besides the basic crops reduced by means of benefit payments, growers of a number of other commodities less widely produced have been helped under the power of the secretary of agriculture to enter into marketing agreements and issue licenses. These agreements and licenses are intended to help producers to get better prices for their products. Monday: Processing taxes, and who pays them.

GIVE YOUR KIDNEYS AND BUDDER A GLEANING Dinrex Pills will expel the poisons from ronr system and make yoa feel like anew person. A oontinnons backache takes all the Joy out of llrlnf. If accompanied by irregular arlnation and a tired, ncrvon* feeling, backache may be caused by kidney or bladder trouble. Diurex Pills will help yon as they helped Andy Yunker. 219 R. Illinois St.. Indianapolis, Indiana. He says: “Dinrex . will help any one suffering from a backache caused by kidney trouble. 1 hare taken two boxes of Diurex and my backache Is almost gone. I would pay. gladly, twice as much as yon ask for Dinrex, If necessary, because It is a wonderful medicine." Quality LINOLEUM At Lowest Prices in City B *“ $4.85 6 and 9-ft. wide enameled surface floor covering. Begular JW 5 9r quality. Sq. Yd “• C 37"x50" Rubber Mats *1.50 OK RATFXinoleum Cos. SOI Fast Wash. St.. 81-3954. Evening School Strong courses offered In Secretarial. -Stenography. Accounting Bookkeeping and kindred subjects. Spend part of your evenings in selfimorovement. Cost low. Central Busintss Cslisp Arehiteeta A MMm MMltt. Indianapolis. !■—— I

A New Brain Trust

Appointment of Group of Ten by Stock Exchange Gives Outsiders Voice in Affairs. — BY VINCENT S. LYONS Times Financial Editor The personnel of the group of ten which has just been named by the New York Stock Exchange to sit in on as many committee meetings as possible and to offer suggestions for operation of the securities market is secondary to the fact that it represents the first time in the history of the institution that outsiders have been given a voice in its operation. For years the New York Stock Exchange, an incorporated association, has believed that it could conduct its

ENGINEERING AWARD $26,605 ! 0001N WEEK Total Is Below Last Week But Above Average. By Timer Special NEW YORK, Sept. 29.—Engineering awards throughout the country this week aggregated $26,605,000, the Engineering News-Record disclosed today. This total, while 5 per cent below last week, is 9 per cent above the average week this year. Public awards were higher: federal projects amounting to $7,012,000 and state and municipal construction $17,044,000. Private awards dropped during the week to $2,549,000. or 84 per cent below the average week to date this year. Highway awards continue strong at $8.176.000; bridges are up at $2,766.000; public buildings at $5,539,000; earthworks, irrigation, drainage and waterways at $3,949,000; waterworks at $1,416,000, and commercial buildings at $1,175,000. Stock Studies LAMBERT CO. , i COMMON STOCK SHNK £A*W**GS PfMCE **©£ ®CA* BqL g j -i— 2S •■ r' jf JL i— 75 ° 30 31 32 33 34 30 31 32 3334 ’ ° WINCHESTER INSTITUTE Os FlH*+*C€ The Lambert Company is a holding company. Through its subsidiaries its manufactures the very widely advertised “LisWrine” products. Another subsidiary manufactures the Pro-phy-lac-tic brushes, also widely advertised. The company’s principal laboratory is in St. Louis, but it also maintains production laboratories in most of the important foreign countries. FINANCIAL DATA As of Dec. 31, 1933 Common stock (no par), shares... .746,371 Surpluses $4,872,512 Cash 3.841,046 Inventories 1,412,460 Total current assets 5,875,410 Current liabilities 940,769 Good will and trade marks are listed at only sl. During the year 1933 surpluses dropped about SBOO.000. Cash was about $1,200,000 less, inventories $300,000 more, while net working capital decreased about $700,000. At the end of the year the current ratio was 6Vi to 1, while the 1 book value of the comon stock was SB.BI, or 77 cents less than at the first of the year. The company has shown steady, though decreased, earning power. In 1933 $2.96 ivas earned and $1.51 in the first six months of this year. As the company's largest expense is advertising capital needs remain relatively small. The company, therefore, has maintained a liberal dividend policy. Surplus was drawn on for dividends in 1932 and in 1933. The present dividend rate of $3 is just barely covered on the basis of the first six months earnings. Lambert was incorporated in 1926 in Delaware. The stock is listed on the New York and London stock exchanges. At a current price of around 23% it sells to yield about 12% per cent at the present dividend rate. (All eights reserved. Winchester Institute of Finance. Winchester, Mass.) PAYNE IS PROMOTED Herbert A. Payne, adjuster for the Home Insurance Company, has been promoted to the home office of the Company in New York. He Will move there Dec. 1, to take over his new duties.

B BOtL-McCRBlj

affairs in its own manner; making investigations of transactions in certain stocks when it was thought the facts demanded it and suspending and fining members when rules were violated. Since the collapse of the security market in the latter part of 1929, the Stock Exchange gradually has been revamping its attitude. Many attempts have been made to win back public confidence, which had been badly shattered by disclosures before the senate stock market committee. The volume of transactions for the last few years represents only a fraction of what it was in the halcyon days of 1929 and, consequently profits of member firms are a mere shadow of what they were. Self-regulation has given way to federal regulation. Some people feel that laws on security flotations and security trading are too strict; others feel that the facts warranted the action taken. Meanwhile, the Stock Exchange has appointed its group of ten. None of these are members of the exchange; five, however, are partners of member firms and the other five are strictly “outsiders." The original decision to allow “outsiders” to attend miscellaneous committee meetings was taken last June. This would seem to indicate that the Stock Exchange, by casting around for months for its men, did not mean the move to be an empty gesture designed to win public favor. The caliber of the appointees argues against such a view. By allowing the public~to know what is going on. the exchange is taking a step in the right direction and one which ultimately may work to its own advantage in an increased volume of trading and greater confidence. BANK CLEARING SHOW DECREASE FOR WEEK Decline of 1.4 Per Cent Reported by 22 Leading Cities. Bank clearings reported by twen-ty-two leading cities in the United States during the week ended Sept. 26 amounted to $4,193,115,000, compared with $4,254,634,000 for the same week in 1933, a decrease of 1.4 per cent, according to Dun & Bradstreet, Inc. This contrasts with an increase of 4.9 per cent registered during the previous week. A sharp decrease in clearings at New York was believed chiefly responsible for the decline. Clearings during the week were $670,242,000 below the preceding week, while for the same two weeks last year a reduction of $381,154,000 was shown. CALL FOR SPOT WOOL Types Suitable for Manufacturers Are In Demand. By United Peer* BOSTON, Sept. 29.—The larger part of the very moderate call lor spot wool in the Boston market is for types suitable for woolen manufactures. according to today’s report of the United States agriculture department. Most of the sales are of wools that have been scoured. Some greasy lines, largely of wools, have recently been moved. Buyers continue to survey the market for information on the greasy combing domestic wools offered for sale. SOAP STOCK OFFERED By Timm Special NEW YORK, Sept. 29. W. E. Hutton & Cos., Edward B. Smith & Cos., G. M. P. Murphy & Cos., and Field, Glore & Cos., have purchased a substantial block of the outstanding common stock of Proctor & Gamble Company, which they are offering at current market prices. It is understood a large part of the stock already has been distributed.

News and Views on Finance.

CHINA WEIGHING GOLD STANDARD

Action Seen Forced by U. S. Action in Buying Silver. (Qopvrlght. 1934. bv United Press* SHANGHAI. Sept. 29—The Chinese national government, in a note to the United States, intimated strongly that it may be forced to adopt the gold standard because of the American silver policy, it was learned exclusively today. This intimation was contained in the second note dispatched by H H. Kung, finance minister, to the United States in demanding an immediate clarification of the administration plans regarding silver, the basic metal of the Chinese currency system. Authoritative circles said the note, sent Sept. 24, makes the astonishing offer to sell to the United States all of Chinas vast silver holdings in exchange for gold. This could be accomplished by placing an embargo on exports and paying banks r premium for delivering their holdings to the government, it was explained in financial circles. The United States practice of buying silver is deflating Chinese currency, a condition which the national government “can not permit,” the note supposedly said. It then hints that in self-defens* China may recommendations that it adopt the gold standard, basing anew currency on a flve-to-one ratio against the present United States dollar, the United Press learned. It is known that the Central bank of China has not shipped any gold since August. N EWMARGIN R U LES" SEEN AS MAINTAINED Will Stay in Absence of Any Sharp Market Movements. By United Pre** WASHINGTON, Sept. 29.—The 25 to 45 per cent margin requirements for security trading set up by the Federal Reserve Board likely will remain in effect indefinitely in the absence of any sharp up or down movements in market prices, it was learned today. The new margin requirements, differing little from present stock exchange demands, become effective Oct. 15. They are not to be changed very often, because of the speculative effect such changes would have on security prices and because of the voluminous research work necessary to fix requirements. Joseph P. Kennedy, securities and exchange commission chairman, and members of the federal reserve board heard reports today of a favorable reception by brokers and traders of margin rules. STUDY CLASSES AIMED Life Underwriter# Will Start Course on Monday. The formation of study classes leading to the chartered life underwriters degree was announced today by the Indianapolis Association of Life Underwriters through Frank M. Moore, general educational chairman. The classes will start Monday at 4:30 o'clock in the Chamber of Commerce building. The course will be held until late next spring, at which time examinations will be given. DRAINAGE LOANS MADE By United Pre** WASHINGTON, Sept. 29—Loan# for refinancing twelve irrigation and drainage districts were authorized by the Reconstruction Finance Corporation today. CHICAGO TIME CHANGED By Time* Special CHICAGO, Sept. 29. Effective tomorrow, Chicago banks, in compliance with the daylight saving ordinance, will turn their clocks back one hour, reverting to central standard time, the Federal Reserve bank of Chicago announces.

OFFICE SPACE The available vacancies in the several office buildings under our management offer a full range in pnee, size and type of office space KLEIN * KUHN Inc. Property Management LINCOLN 3543 • ‘Mu Clients Sleep Well ’ Security . . . Kor Yur WIDOW or for the Old Man You're Going to Be. See or Call R. F. Liitdeman Aetna Life lasaraaes Cos. l*h Floor Illinois Bldg. SI-tM®