Indianapolis Times, Volume 46, Number 132, Indianapolis, Marion County, 12 October 1934 — Page 34
Developments in Trade and Industry
PAGE 34
SUGAR REFINERS fIND LOOPHOLE IN NEW TREATY Treasury Faces Huge Loss in Revenues: Tariff Rules Blamed.
By f nifrtj prcnn WASHINGTON. Oct. 11—Thw treasury is facing a loss in revenue ranging from 515.000.000 to $25,000,000 to sugar refiners who are taking advantage of an apparent loophole in tariff regulations due to the recent reciprocal trade treaty with Cuba. Operation of this “rebate," which is based on the drawback under the 1930 Smoot-Hawley act, is causing treasury and customs bureau officials concern. They have solicited the aid of the state department and the Agricultural Adjustment Administration. The former has no jurisdiction, but the secretary of agriculture has broad authority over jugar matters through the Jonescostigan sugar quota act. Refiners are claiming the rebates I on the surprising ground that they | have a “vested right” under the ! 1930 Smoot-Hawley act, and have formally expressed their opposition to any administrative act which would deprive them of the millions of dollars involved.
Reap Large Profit Through it they reap a "profit” from the treasury of 108 cents a pound on an amount of sugar imported during the last year, representing the difference between the drawback under the old 2 cent tariff and the new tariff of 9-10 of a cent a pound put into effect by the Cuban treaty. Under the 1930 law and subsequent treasury regulations, refiners may collect a drawback of 99 per cent of the tariff on any sugar imported in this country, processed within a year and re-exported within three years. This is the theory, but the law goes much further. The drawback applies to the amount of sugar imported, so that a refiner may collect the drawback on any similar quantity of sugar, whether it be imported or dutyfree sugar produced in this country. In other words, a substitution is permitted. No account was taken of the drawback and its operations in the reciprocal agreement with Cuba, which became effective Sept. 10. Imports Are High A total of 1,600,000 tons of sugar was imported from Cuba last year of which 400.000 tons are exempted from the drawback claim privilege since it went directly into consumption. Refiners, under treasury regulations covering the 1930 which still stand, are claiming the drawback on the basis of the 2 cent tariff then in effect on sugar imported during that period. They set up as “designated sugar” for collection of the drawback the sugar imported under the 2 cent tariff. Thus they realize a profit or rebate of 1 08 cents a pound in the operation since they can substitute a similar amount of sugar on which they must pay only 9-10 of a cent duty. In effect, they may buy sugar up to the amount of their “designated sugar” for about half price. The profit from the treasury, it is estimated, will run from $15,000,000 to $25,000,000. The consequent reduction in sugar costs explains why the refined product now is being offered in New York for less than the cost of Cuban raw sugar.
Active Trading in U. S. Government Securities Municipal Bonds % Land Bank Bonds Gravel Road Bonds General Market Securities Direct Private Wire to PrinQjml Markets lnwrtm.ni iI ] L Sacuritlat w Pf ass 8 Hughei INCORPORATED Chicago. Ft. Wavne, Evansville INDIANAPOLIS Illinois Bldg.. Lincoln 2565
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Industry Is Swinging tO' Support of New Deal, Roosevelt Now Feels President Plans Series of Important Pronouncements Designed to Keep Recovery Efforts and Business Activities in Harmony. BY H. O. THOMPSON I'nitPd Pre*t Staff Correspondent •Copyright. 1934. bv United Press) WASHINGTON, Oct. 12.—The Roosevelt administration was convinced today that important business and industrial interests at last were swinging to support of the New Deal and that this attitude should be reflected soon in generally improved conditions throughout the country. In keeping with a determination to maintain contact with representative business leaders, Mr. Roosevelt is planning a series of important pronouncements which will be designed to keep recovery efforts and private business activities closely attuned.
From a source close to the administration it was learned that the White House, pri- , vately irritated in the past at tactics which were interpreted as obstructionist and selfish, felt that business and indusj try were about to begin a period of really constructive co-operation. It was said that there had been some resentment at methods employed by industrial leaders under certain NRA codes, -for instance, but that now genuine hope was being expressed that recovery problems could be handled on a plane of frank and open discussion. Tariff Powers Important One of the factors entering the situation was understood to be the administration's activities under the reciprocal tariff powers granted by congress. Manufacturers have come to believe, correctly or not, that their goods might be imperilled by cheaper products from abroad unless they joined in movements to loosen industrial fetters and give impetus to the recovery machine. The administration has felt, according to this authoritative version of the present phase of the New Deal, that there has been too much jockeying for selfish advantages both in the making and carrying out of NRA codes. Efforts now being made to revive business consequently have as one of their aims the separation of business men and industrialists into groups which can be said to be fairly representative of an entire business or industry. Once the administration is convinced of the fair-mindedness of the persons involved it will do everything possible to adjust conditions to a satisfactory basis. Bankers’ Criticism Answered The criticism that bankers have not been willing to make loans for industrial purposes has been met by the answer that much of the loan field has been taken over by the government through the RFC and other agencies, leaving speculative loans as the only ones in demand. Asa result of this situation—it has been one of the disclosures of the series of conferences held by the President since his return from Hyde Park—it appeared likely that a system of loans would be worked out wherein commercial bankers and the government would be jointly concerned. Treasury Statement 'Bv United Pressi WASHINGTON. Oct. 12.—Government expenses and receipts for the current fiscal vear to Oct 10. compared with the corresponding period of the previous fiscal year. This Year. Last Year. Expanses $1,751.074 482 85 $1,065,978,554.15 Receipts . 1.094.871.938 01 831.999.037.64 Deficit .. 656,202.544 84 233,979.516.51 Cash Bal 2.122.355.636 05
WE BUY AND SELL: U. S. Government Bonds U. S. Territorial and Insular Bonds Indiana Municipal and Gravel Road Bonds Land Bank Bonds Home Owners' Loan Corporation Bonds Bonds and Stocks oi Indiana Corporations General Market Municipal and Corporation Bonds i Indianapolis Bond and Share Corporation IT9 Bait Martial Street Fetepttene titer 4551
Abreast of The Times on Finance
Local Livestock
HOGS Oct. Bulk. Top. Receipts l 6 $6 05-ft 6.30 $6 50 2 000 I 8 6 05®6.30 6.50 6.000 , 9. 6.03® 6 30 6.50 6,006 10 5 90® 6 15 6.35 5.500 11 5 75® 5.95 6,10 6,000 12. 5.75*4 5.95 6.10 5,000 140-160) Good and choice $5.00® 6.60 (160-180) Good and choice .... 5.70® 5.90 (180-2001 Good and choice 5.90® 6.00 (200-220) Gc.od and choice 6.00® 6.10 (220-250) Good and choice 6.05® 6.10 (250-390) Good and choice .... 6.00® 6.10 (290-350) Good and choice 5.80® 6.00 Packing sows: (275-350) Good 5.00® 5.25 (350-4251 Good 4 85® 5.10 (425-550) Good 4 75® S.OO (275-550) Medium 4.25® 4.85 (100-1301 Slaughter pigs good and choice 3.00® 4.25 , CATTLE Receipts. 500 • —Steers—--550-9001 Choice $ 7.50® 9.00 Good 6.25® 8.25 Medium 4.25® 6 50 Common 2.75® 4.25 (900-1 100) Choice 8 [email protected] Good 7.00® 9.00 Medium 4 50® 7.00 Common 8.25® 4.50 1 1.100-1.3001 Choice 9 00® 10.00 Good 6.75® 9.00 Medium 4.75® 6.75 11.300-1.500) Choice 8 25®1C.00 Good 7.25® 9.25 —Heifers (550-750) Choice 7.00® 7.75 Good 5.50® 7.00 Common and medium 2.75® 5.50 <750-900) Good and choice ... 5.75® 800 Common and medium 2.75® 5 75 —Cows— Good 8.50® 4 50 Common and medium 2.50® 350 Low cutter and cutter 1.25® 2 50 -Bulls—(Yearlings Excluded) Good 3.00® 3.55 Common and medium 2.00® 3.00 VEALERS Receipts, 500 Good and choice $ 7.50® 8.50 Medium 5.00® 7.50 Cull and common 2.50® 5.00 —Calves—-(2so-500) Good and choice ... 4.75® 6.50 Common and medium 2.50® 4.75 —Feeder and Stocker Cattle—(Steers) (500-800 Good and choice .... 4.50® 5.50 Common and medium 3 00® 4.50 (800-1.050) Good and choice... 4.50® 5.50 Common and medium . 3 00® 4.50 (Heifers) Good and choice 3 00® 4.25 Common and medium 2 50@ 3.00 —Cows— Good 2.50® 3.00 Common and medium 2 00® 2.50 SHEEP AND LAMBS Receipts, 1.500 Lambs. 90-Jbs. down, good and choice $ 6.50® 7 00 Common and medium 4 25® 650 90-120 lbs good and choice 2 00® 2.50 Sheep—-(l2o-150) Good and choice 1.75 2.20 All weights common and medium (.25® a.o* On Commission Row Quotations below are average wholesale prices being offered to buyers bv local commission dealers. FRUlTS—Cranberries Cape Cod early blacks, 25-lb. box, $2.7a. Grapes, Michigan Concords, 4-qt. basket. 18c; 12-qt. basket. 40c. California seedless. 27-lb. box. $2.10 Crabapples. Michigan hvslops, bushel. $1.85 Persimmons. Indiana. 12 qts. 90c. Pears New York Bartletts, bushel. $2.50. Avacados. box. $1.50. bushel. $2.75. Bananas, pound, 5 1 *c; pineapples, crate. $5 size 30. VEGETABLES—Cabbage, Northern Danish, 50-lb. bag. 75c: red, bushel. sl.lO. Onions. Idaho sweet Spanish, large, 50-lb bag. $1.40; Michigan, yellow. 90c: Indiana. 10-lb. bag. 20c: white, boilers. 10-lb. bag, 35c: Western white. 50-lb. bag. $1.75: home-grown pickling. 10-Ib. bag. 75c. Potatoes. New Jersey Cobblers. 100-lb. bag. $1.50; Northern round white. 100-lb. bag. 51.25; Ohios. 100-lb. bag. $1.55; Idaho Russets. 100-lb. bag. $2.16. Sweet potatoes. Indiana Jerseys, bushel, $1.40; Indiana Nancy Halls, bushel. SI. Beans, homegrown. stringless, bushel. $1.50; Kentucky Wonders, bushel. $1; Limas, large, pound. 20c. Beets, dozen. 25c. Carrots. Ohios. dozen. 35c; Ohio (cut offs), washed 22-lb. basket. 75c; bushel. $1.15. Cauliflower, crate. $1 25. Celery. Michigan, medium, dozen. 40c; Jumbo, dozen. 65c; hearts, bunch, 90c. Cucumbers, hothouse, dozen. 90c. Endive, dozen. 40c. Egg plant, dozen. 75c. Kale, bushel. 50c. Lettuce, outdoor. 15lb. basket. t6oc. Mangos, bushel. 85c. Mint, dozen. $2 75 Parslev. dozen, 35c. Peas, hamper. $2.75. Peppers, red finger, bushel. $1.75; 5-lb. basket. 50c. Radishes, 2 dozen. 65c. Spinach. New Zealand, bushel. 35c; broadleaf. basket. 60c. Tomatoes, outdoor 12-lb. basket. 50c; bushel. $1.50
BREED, ELLIOTT & HARRISON Established 1912 1115 CIRCLE TOWER GOVERNMENT BONDS FEDERAL AND JOINT STOCK LAND BANK BONDHOME OWNERS LOAN CORPORATION BONDS REAL ESTATE PREFERRED STOCKS AND BONDS BUILDING & LOAN STOCKS INVESTMENT TRUSTS The HOOSIER CASUALTY CO. 15th FL Fletcher Trust Bldg. A strong stock company writing accident and health. Also automobile insurance. Assets over $740,000. at ll,D ' \usA3.3 60 ' 000 INSURANCE All Kinds With the Exception of Life A. J. Wichmann & Cos., Ine. 712 Circle Tower
INDIANAPOLIS, FRIDAY, OCTOBER 12, 1934
FINANCING PLAN! COMPLETED AS RUMORS GROW
Administration at Loss to Explain Hints of Inflation. By United Press WASHINGTON, Oct. 12. The federal government completed its i troublesome October financing pro- ! gram today amid unconfirmed rumors of further currency inflation. A total of $1,020,000,000 of the maturing $1,250,000,000 called Fourth Liberty Loan 4% per cent bonds, the treasury reported, had been converted into lower interest bearing obligations up to last night when the books closed on the subscription. Almost immediately, Secretary of Treasury Henry Morgenthau Jr. studied plans for the possible calling of another billion dollars worth of the Liberties for anew conversion next April. Simultaneously with the successful completion of the October financing appeared rumors of new | currency inflation, which were unofficially denied, following a statement of Senator Robert J. Bulkley !of Ohio, that he saw possibilities of further devaluation of the gold dollar in an administration effort to raise commodity prices. ' Some administration officials were inclined to minimize the significance of Senator Bulkley's remarks, even though they were made by him following a conference with President Roosevelt. They were at a loss to explain the revival of currency inflation reports which were believed to be the basis in part for the revival of speculative sentiment in stock and commodity markets. Os considerable importance, however, was the official treasury statement that silver money in circulation had made a record-breaking gain of $48,414,505 during September to anew peak of $799.043 682. This gain coincided with unofficial word that President Roosevelt has almost unlimited power in reducing ,ie silver content of the silver dollar irrespective of the reduction of the gold content of the gold dollar. Another further reduction in the gold content of the dollar, recently cut to 59.06 per cent of its former content, was believed out of the question. President Roosevelt still has authority, however, to reduce the content of the gold dollar to 50 per cent or one-half of its former content, or to 11.6 grains of gold. That is the full extent of the cut in the gold dollar as was suggested by Senator Bulkley. Contrary to present general opinion, however, it was learned today that the President has virtually unlimited powers to reduce the present content of the silver dollar, which never has been devalued under its age-old content of 37114 grains of pure silver.
FOREIGN QUOTATIONS (Bv United Press) PARIS, Oct. 12.—Francs were 15.01% to the doUar today (6.659 cents a franc. Francs were 73% to the British pound. LONDON, Oct. 12. The pound was $4.92 today. French francs were 7515-16 to the pound. Gold was $35.20 an ounce with the sterling rate 143 shillings one penny.
r MONTMARTRr" - rJi j SS . ' | 111 ' Everything [.,• NEW but the Location! 1 Dancing Nightly , 8:30 till ? ? p _ To you. the CLUB 'ig. MONTMARTRE offers J I§j for approval an •*1 if outstanding : |l FLOOR SHOW v| |1 Tp^FEATURiNG .J 1 GARVIN^S Delineator of the Bluet I NIKKI NICCOLL J Soubrette Supreme m 1 JIMMY BITTNER || Master of Ceremonies wi jA Just closed successful Jp-iq engagement at the Log MM srM Cabin, Louisville, Ky. Jpjj| Reservation Suggested SWa HI COUVERT 40c Jjjm Allisonville Road Y wA,h . ins ' l ANNOUNCING k KEMP'S KAVERN Grand Opening TONIGHT Featuring J? Featuring Entertainment M Sandwiches Ip Complete Luncheons ® Cocktails. Drinks of All Kinds I Beer on Top and Bottle v* 122 E. NORTH ST. No. West Cor. Del. J j BE SAFE Insure Your Car Today p®2|H|state Automobile Insurance Ass’n. 1.1-RS7I. *th Floor Peridental Bldg. Moderate First Mortgage Loans on Improved Indianapolis Real Estate —“—~ \ The Indianapolis Morris Plan Company DtUnn ud Ohio Sto. HI - 1 '.3d
MARKETS CLOSED Discovery day was observec as a holiday today by most of the national security and commodity markets. The New York Stock Exchange, the Chicago Board of Trade and other exchanges were closed. All exchanges will be open tomorrow for the usual Saturday half-day trading.
DIVIDEND IS DECLARED Continental Can Votes Payment of 60 Cents on Common Stock. By Times Upecinl NEW YORK, Oct. 12.—Directors of Continental Can Company, Inc., today declared a quarterly dividend of 60 cents a share on the common stock payable Nov. 15 to holders of record Oct. 29. The 50 per cent stock dividend recently declared, subject to the approval of the stockholders at a meeting to be held Oct. 15, will be payable on Oct. 25 to stockholders of record Oct. 15. Produce Markets Delivered In Indianapolis prices: Heavy hens. 12c; Leghorn hens, 7c; colore'd springers, V/2 ibs. and over. 11c Leghorn springers 9c; old roosters. sc: ducks, sc; geese. sc; young guineas. 20c; old guineas, 15c; No. 1 strictly fresh country run eggs, loss off, 19c. Each full case must weigh 55 lbs. gross; a deduction of 10 cents a pound for each pound under 55 lbs. will be made. Butter—No. 1. 28®29c. Butterfat. 23c. Quoted by the Wadley Company MOTION PICTURE THEATERS REX 30th and Northwestern TONIGHT ONLY No. I—News. More evidence against Hauptmann in the Lindbergh case. And hear our dear President Roosevelt’s mother talk on the NRA. It is a pleasure to hear her talk; she is 80 years old No. 2—Comedy, ‘‘Preferred List” with Dorothy Lee. No. 3—Cartoon, “Bosco’s Mechanical Man.” No. 4—Feature, “Black Moon” with Jack Holt, Fav Wray and Dorothy Burgess.
The most human and lovable * In one of the most enjoyable r i l .l. J Q W*c. FIELDS j| RWIME till ''Ml.:*- r> And no wonder! Hun- W. l' ‘J rmsjjnt dreds have seen it twice di ° SC °- eS *\ ave see . n I OvejVfGHT of Jo ve
HOPE OF DEBT • PAYMENTS BY EUROPEIS DIM Foreign Obligations May Be Omitted From 1935 Budget. BY RICHARD L. GRIDLEY United Press Staff Correspondent (Copyright. 1934, by United Press) WASHINGTON, Oct. 12.—For the second successive year the administration is considering omission of foreign debt payments from the national budget, indicating that hope of collecting more than $12,000,000.000 from numerous European countries is remote. With the general default of most foreign governments except Finland in their war debt payments to the United States up to June 15, last, the total amount they ace in arrears to this country today approached the billion-dollar mark. Another hundred millions of dollars may be added to the amount Know ON THE STAGE THE GREATER BROWN and lILEY REVUE -PEOPLE—22 ON THE SCREEN GEO. BANCROFT IN “ELMER AND ELSIE’* ! BALA MIDNIGHT SHOW SATURDAY NO ADVANCE IN PRICES
owed if various nations again default on their Dec. 15 payments. The total foreign debt, including war and other obligations, is $12,015.061.531. No Provisions for Debts. The budget for the current fiscal year ended June 30. next, contains no provisions for the receipt of interest or principal on foreign obligations to the United States and none are likely to be in the budget for the year beginning July i, 1935. which now is in course of preparation. In previous years, government statisticians have looked for payments on these accounts, already representing concessions of $6,200.000.000 to the foreign governments, as a substantial source of federal revenue. t Foreign Payments Dwindle From the peak of $232,989,000 in principal and interest received in fiscal year ended June 30. 1923. however, foreign debt interest and Open House Tonight CLUB VANITIES 31G1. East 38th St. Free Dancing 9 to 1 WITH ORCHESTRA Large Sirin Hear, 10c E. YV. Mushrush, Mgr.
Mi & ioew's ' m 11 1 ■ 11 ~“A New Moon Is ■ / l T]! 1- * (gg ’ Over My Shoulder” f l f J *->•' j and Co-ed tmm Tn\ jp M-GM Youth and Melody Cocktail with IS IH *L,DURANTE *(L.,BUTTERWORTH 1 -MAXINE DOYLE • ‘PHIL REGAN M HM and Hollywood’s Most Beautiful Girls! Jjtf Monte Carlo, Shanghai, mystic •'PECULIAR PENGUINS” J' Dl-ney Silly Symphony in COLOR! J < iD TODD-KELLY WORLD SERIES
Ml^mentaTlONS 7m\ > NEIGHBORHOOD THEATERS 1
NORTH SIDE fwa 4 f n/"\'T'HH Talbot A 22nd. TALBOTT gf-“* w^: r rS “ONE MORE RIVER” “HE COULDN'T TAKE IT” n |fnra Illinois at 84th nil/. Double Feature **•***■' Edw. G Robinson “MAN OF TWO FACES” “BLIND DATE” UPTOWN S&S'ISKS UE -IV/TTiA Chester Morris “LET S TALK IT OVER” “NAME THE WOMAN” r\ js p a a 23411 Station St URLAM ° ,to Kruger Madge Evans “PARIS INTERLCDE” n, . r , lfith and College Stratford “KISS AND MAKE CP” “PRIVATE LIFE OF HENRY VIII” MECCA “SHOOT THE WORKS” “THE MASQIERADER" /s a nmol/ Illinois at 30th GARRICK ss": t iss “GRAND CANARY” "HAROLD TEEN” SOtfc * Northweitera RF Y Family Nit * ‘AEjA Jk Holt "BLACK MOON” ZARING “SE “PRIVATE SCANDAL” "THE PERSONALITY nin /s | ain St- Clair at M Wayne SI (aLAIR Double Feature OE. ULiaEEV Lrle Talbott “RETCRN OF THE TERROR” “ELMER AND ELSIE" EAST SIDE prrts a srrv 1352 E. Wash. It STRAND *l'"* Robinson “Man With Two Faces” Richard Cromwell “Among the Missing” Musical Comedy . Paramount News IklliAl 1 Dearborn at 10th K V I Double Feature IYI I V/Lll Jjfk “DEFENSE REST" “ELMER AND ELSIE" IRVING “A VERY HONORABLE GCY” TP A CAll A Mil E. Wash. St. IALOMA Doßb '* it&ViVtuxt Marlon Davie* "OPERATOR 13” “MERRY FRINKS’
News and Views in the Business World
principal payments dwindled steadily until almost nothing at the present time. The status 'of the Dec. 15 payments in principal and interest owed by most of the countries was in doubt today and no negotiations in progress for settlement of the debts owed by the foreign nations. The treasury department, however, was optimistically preparing notices of payments due to be forwarded to the foreign debtors some time after Nov. 15.
Dance Tonight . JOE CAPPO Wm Hi' I Egyptian >erenader' AH 25c Before 9:00 Sundav Only yk \mm HERBIE KAY gf*j and Ills Orchestra EBBPT^rm Advance ticket sale, Mr ■ ; Inrl. tax till 6 P ni. Sun- IgaT ff'M day. After that all ticket- JTW HOc Incl. tax. Table reervatinn 7.1 c a couple. 1 ■ m iawt a I iSSB BF aoof W bauropa*!
I EAST SIDE EMERSON “"mu “HANDY ANDY” TUXEDO Double Feature _ Bebe Daniels "REGISTERED Nt’RSE" "TOO MCCH HARMONY” i HAMILTON VSS ' . Cary Grant KISS AND MAKE CP” “LET’S TALK IT OVER” Paramount *■ Colleen Moore “SOCIAL REGISTER" PARKER Double Feature •DR MONICA? Frant “ I “MANY HAPPY RETCRNS” DOVV - :2 * E. Washington"* IYVJA I Double Feature W heeler-Woolsev • HIPS HIPS HOORAY” “EVER SINCE EVE” Hollywood PjpTpF * , . , Madge Evans Jibert Young in “PARIS INTERCEDE” SOUTH SIDE FOUNTAIN SQUARE Double Feature Mary Brian "MONTE CARLO NIGHTS" FRIENDS OF MR SWEENEY" SANDERS Pr r& a &‘“~ ,b ’ . Herbert Mundln “CALL IT LI CK" "FOOD ALItE” GARFIELD Jean Harlow "GIRL FROM MISSOCRI” BEYOND THE LAW” A V A I I AAi Double Feature rV T niA/.t Jimmy Durante __ "STRICTLY DYNAMITE” ORIENTAL Warner Oland "CHARLIE CHAN’S COtRAGE” “SPRINGTIME FOR HENRY” WEST SIDE BELMONT Doris Kenyon “THE HI MAN SIDE" “THE HELL CAT" l\ a 1C V *W W Mieh. SC** iIAISY Double Feature isiXMkj M. Stuart Erwin BACHELOR BAIT" “AMONG IHI Mi'SING" races a nrars 22irj W. loth >t. SI AIL Donb,e FMl,r * Otte Kruger "THE CRIME DOCTOR” “BATTLING BLCUAROO” , J
