Indianapolis Times, Volume 46, Number 145, Indianapolis, Marion County, 27 October 1934 — Page 12

Developments in Trade and Industry

PAGE 12

WEALTH IN U.S. SETS NEW HIGH IN DISTRIBUTION Labor's Proportion of Income Shows Increase, Bank Avers. Bv 7 tmr* Sprrial NEW YORK, Oct. 27 —The increases: share of national income paid out to labor in recent years apparently has resulted in a wider distribution of wealth than the United States has ever Known heretofore, the Index, publication of the New York Trust Company, revealed today. 4 While the depression caused a drop of more than 50 per cent in national income, from SB3 032.000,000, in 1929, to $39,356,000 000 in 1932.” the study said, “the share of j labor as a whole remained at approximately 65 per cent, in comparison with 55 per cent twenty years earlier, that of entrepreneurs fell to 18 per cent, and property income, largely in the form of dividends and interest, accounted for the remaining 17 per cent. Trend Noticeable ‘ Figures or 1933 and 1934 are not available, but a trend toward still wider distribution of income is discerned in a further increase in labor s share of the total and in he governments expenditures for relief, of which labor and agriculture are the chief recipients. These expenditures must sooner or later be j met. by general taxation and the higher inrome groups will feel more heavily the burden of carrying the public debt." In denying that 2 per cent of the people own 80 per cent of the wealth, the Index points out that 47 per cent of the families in the country own their own homes, four out of five have automobiles, and all but the smallest minority have some share in national savings, either j through bank deposits or life insur- | ance. which amounted to more than ; $50,000,000,000 in 1933. More investors • The relatively broad distribution of national income today has come ; about not only through the steadily increasing proportion paid out in the form of wages and salaries,” the Index says further, "but through the growth of the investor class, which, to a considerable extent, includes labor. The steady rise in national savings is itself proof that the number oi persons receiving rents, royalties, interest and dividends from invested funds is constantly growing. • In any event, available evidence indicates that, between 1909 and 1929, total wages and salaries increased greatly, the relative income of entrepreneurs proportionately declined. and there was almost no change in the percentage of income paid out on business investments. “The depression was characterized by reduced income for all recipients, but for the maintenance even of these reduced payments industry was obliged to draw heavily upon its arcumulated reserves and the business savings shown in previous years turned into large losses in 1930-1933. rublic Debt Piling Up “Finally, the present trend of economic development appears to forecast a further drain upon the resources of entrepreneurs and investors to meet the charges of the huge public debt being piled up largely for the relief of those normally employed as w earners and salary workers. “In the future evohNon of our national economic policy, it is essential that the facts in regard to income distribution be fully recognized. so that the direction of legislation may not be influenced by the many misconceptions so widely held today. The basic problem in the whole question is the extent to which it may prove advisable to attempt to increase purchasing power through a wider distribution of income, and the extent to which entrepreneurs and investors should be allowed to retain income for further capital expansion. “The dangers to industry as a whole, and therefore to salary and wage earners as well as entrepreneurs and investors, of any sudden change or severe dislocation in the existing economic organization of the country are obvious. Every group of income recipients would sutler and on them all would rest the burden of paying the bill for radical experimentation.’ CLEARINGS' TREND IS UP Loss From Yvar Ago Reduced to 5.6 Fer Contain Week. Bank clearings are trending upward again, as the total amount for the twenty-two leading cities in the United States for the week ended Oct. 24. as reported by Dun A* Bradstreet. Inc.. was $4 429.909.000. against $4,694 164.000 for the same week of last year, a loss of 5.6 per cent. This contrasts with a decrease of 7 per emt in the previous week. At New York City, clearings the past week were $2,814 476.000. a reduction of 13 6 per cent. MISS PERKINS TO TALK Collective Bargaining Will Be Subject at Purdue Conference. JJ / 7 tmf Special LAFAYETTE. Ind . Oct. 27.—Personal phases of collective bargaining under Section 7A of the national industrial recovery act. will be discussed at a conference to be held at Purdue university, Oct. 30. it was announced today. Miss Frances Perkins, secretary of labor, will be among the principal speakers to be heard at the special conference. FAFFR EXPORTS RISE. Jly 7 imrt Special WASHINGTON. Oct. 27—August paper and paper product exports increased 17 per cent, in value over the preceding month and 57 per cent, over August, 1933. the department of commerce reports. The August total of exports was 11.805 - ne.

Corporation Candor Baldwin Locomotive Works' Securities Break on Frank Statement by President. BY VINCENT S. LYONS Tim?* Financial fcditor

The unusual spectacle of a president of one of America’s leading corporations volunteering the information that the working capital of his enterprise has depreciated to such an extent that it is not sufficient to meet current needs was presented this week by George 11. Houston, president of the Baldwin Locomotive Works. This interesting and damaging bit of information brought consternation into the securities markets on which various obligations of the Baldwin company are listed. The

6 per cent bonds of 1938 crashed almost 30 points; the common shares fell to a newlow for the year and the preferred stock slump, 814 points. Net working capital is the lifeblood of a business enterprise. V/all Street traders and other holders of .securities realized this when they began to dump Baldwin Locomotive issues on the market immediately after Mr. Houston's announcement, which was made at the conclusion of a directors’ meeting. Time was when corporation executives were somewhat more than prone to conceal such illuminating information from public scrutiny until something could be done to rectify the situation. The contrasting candor of Mr. Houston leaves one astounded. The New Deal has brought about many transitions in political and economic spheres. It is questionable whether corporation taciturnity has been broken down to such an extent that the Roosevelt administration can encourage heads of business to offer such evidence as that of the Baldwin Locomotive Works. The entire situation is richly significant, every one agrees. But on the question of where the significance begins and ends there is a perceptible lack of unanimity. Wall Street has known for some time that Baldwin has been in a poor position. This has been reflected in its efforts to acquire new capital. In the year ended Sept. 30 the company reported a net lass of $3,777,093 after depreciation, interest, etc., which came on top of a $4,004,823 deficit in the preceding year. Such substantial deficits can not long be endured without upsetting the financial structure of a company. The financial community understood this. Consequently, the break in the value of securities undoubtedly was more of a psychological reaction to the manner in which the company's position was made known than it was a market readjustment to the actual condition. Baldwin’s present financial predicament is a consequence of the reduced purchasing power of the nation's railroad system. With earnings off sharply in recent years, carriers have not been able to purchase new equipment on the same scale as formerly. Naturally, Baldwin's business suffered. An effort immediately was made to resuscitate the company when the Midvale company, which is some 61 per cent controlled by Baldwin, voted a dividend of $1 a share. This is the first disbursement by that company since 1933, although a S2O payment out of surplus was voted earlier in the year.

Stock Studies

2 W. T. GRANT * % COMMON stock '*• I—“ WK tARNINGS PRCC RANGC |sCL( S I%P- ! p r_ —H*-- 2 ®- £? bo 31 32 33 3J30 31 32 33 ?4 ? £ jFwiNCHESTE* INSTITUTE OF FINANCE * The original \V. T. Grant Company was a Massachusetts corporation organized in 1906. In 1927 a Delaware holding company was formed, taking over the entire capital stock of the Massachusetts corporation. W. T. Grant operates a chain of 457 general merchandise stores specializing in articles selling at $1 and under. Stores are located in thirty-eight states of the country. FINANCIAL DATA As of July 31. 1934 Capital stock ino par* 1,195.355 shares MortKages $ 3.071.600 Surplus 17,126.439 Cash 7.446 494 Inventories 8.346.145 Total current assets 16.017.381 Current liabilities 7.757.888 During the year ended July 31. mortgages were reduced by nearly $400,000. Cash gained about $2,300,000. Surplus was increased about $2,000,000. On July 31 the current ratio was better than nine to one. while the book value of the common stock was $22.77, a gain of $1.62 in the twelve-month period. The company has shown good earning ability right through the depression, although there was a dip in the fiscal year ended Jan. 31. 1933. when $1.35 was earned on the capital stock. For the last fiscal year $2.80 was earned and 55 cents for the six months ended July 31. The present annual dividend rate of $1 has been maintained for several years. This rate has been earned by a good margin. W. T. Grant Cos. was incorporated in 1927 in Delaware. The capital stock is listed on the New York Stock Exchange. At a current price of around 30'S* it sells to yield 3L per cent. ■All R:sh-s Reserved Winchester Institute of Finance. Winchester. Mass.) PRINCE FIRM ACQUIRED By United Pvfus NEW YORK, Oct. 27.—The stock brokerage firm of Redmond & Cos. has acquired the business of Theodore Prince <fc Cos. according to Henry Mason Day. senior partner of the Redmond firm. The acquisition will involve no change in partnership. COAL OUTPUT GAINS Bituminous coal production in the United States during the week ended Oct. 20. amounted to 7.075.000 | tons, as compared with $6,710,000 in | the same week last year, according 1 to the National Coal Association.

Abreast of The Times on Finance

RAINS EXPAND PRODUCEJTOCK Some Midwestern Markets Now Oversupplied, Survey Shows. B'J Timex Special WASHINGTON, Oct. 27.—Late rains and a long growing season resulted in such heavy local supplies of potatoes and apples and quickgrowing crops, including radishes, turnips and spinach, that some markets were overstocked, the department of agriculture declares in its midwestern review. “Occasional spells of cooler 'weather in late October,” it was reported, “increased the demand for some leading products. Onions and celery advanced quite sharply in producing sections and in some city rr\arkets, and potatoes showed a little more price firmness, especially in western markets in producing sections. “The produce season seems to have passed its most active weeks, but the movement still is 3,000 car loads daily. Produce from the far west is decreasing, although volume continues heavy. Potatoes are near top of the active season, exceeding 5,000 cars a week. “Onion supplies are liberal and demand slow in midwestern markets but decreasing shipments and the excellent quality of much of the stock resulted in rising prices the fourth week of October, especially in all Michigan producing sections where yellow stock sold at 80 to 85 cents, compared -with 75 to 85 cents in western New York and around 75 cents in the Warsaw (Ind.) district. “Sweet potato prices were irregular in midwestern cities, but without much change in the general level. Jobbing sales ranged 75 to 90 cents a bushel for Tennessee Nancy Halls and $1.35 to $1.65 for Louisiana Porto Ricans. Eastern markets have tended slightly downward during the second half of October, owing to liberal local supplies.”

NEW YORK CENTRAL WILL APPEAL ORDER Road to Test Broad Powers of Co-Ordinator. By United Press NEW YORK, Oct. 27.—The New York Central railroad will ask a review of railroad co-ordinator Joseph Eastman's order rejecting a routing change of the Louisville &; Nashville railroad, it was announced today. This appeal will constitute the first test of the broad powers reposed in Mr. Eastman by the railroad emergency act, under which he acted in denying the application on the ground it would entail waste and duplication. By United Press CHICAGO, Oct, 27.—A federal injunction was issued here today restraining the New York Central lines and the Louisville & Nashville railroad from going through with a proposed rerouting agreement affecting Chicago-to-Florida trains. The injunction was issued by Federal Judge John P. Barnes at the request of the Chicago & Eastern Illinois railroad. INCREASED PURCHASE OF SILVER FORESEEN Imports in Week Rise 100 Per Cent to $4,127,620. By t niteit Press WASHINGTON. Oct. 27.—An increase in silver purchases by the government in pursuance of its monetary program was indicated today in a sharp rise In silver imports to the United States. In the week ended Oct. 19, imports rose to $4,127,620. more than double imports of $2,011,984 in the preceding week. The treasury department also reported that gold holdings of the government reached another record peak of $7,922,936,405, on Oct. 24. a gain of approximately $1,000,000,000 since the United States on Feb. 1 offered to buy world gold at a fixed price of $35 per ounce. Despite the Chinese 10 per cent export tax on silver, the United States in the week ended Oct. 19 imported from China silver valued at $1,363,688. Imports from the United Kingdom amounted to sl.651,779. and from Mexico, $■ *8.500. OIL STOCKS DECREASE A— Drop of 837.000 Barrels Reported in Oct. 20 Week. By United Press WASHINGTON. Oct. 27.—The oil administration reported today that stocks of domestic and foreign crude petroleum totaled 331.981.000 barrels on Oct. 20. a decrease of 837.000 from stocks on hand at the end of the preceding week. The decrease followed a decline of 693.000 barrels during the prenous week. It comprised a decline I of 942.000 barrels in domestic crude | and a gain of 105,000 barrels in 1 foreign stocks.

INDIANAPOLIS, SATURDAY, OCTOBER 27, 1934

FEDERAL MOVE TO END SECOND MORTGAGE SEEN National Housing Act Rules Aim Elimination of This Practice. B'j Seripps-}/meant Sctrspaper Alliance WASHINGTON, Oct. 27.—The government is preparing to eliminate another expensive practice of the American financial system, the second mortgage. Under titles II and 111 of the National Housing Act, regulations for w'hich will be announced within ten days by the federal housing administration, a prospective home builder will be able to borrow up to 80 per cent of the appraised value of his completed property on a gov-ernment-insured first mortgage. He will have twenty years to repay his loan and be may make the payments in regular monthly installments. The present system of home financing permits first mortgages to approximately 50 per cent of the appraised value of home property. If a home builder or owner seeks additional loans, he is forced to make a second mortgage. Lifts Carrying Charge In few cases does this second lien total more than 25 per cent of the property’s value. It does, however, run up the carrying charge of new home construction anywhere from 15 to 40 per cent per year due to discounts, commissions and interest charges. In addition the present maker of a home mortgage is faced with renewals on both first and second mortgages. Each renewal adds extra cost. The government hopes to eliminate most of these charges through operation of the Federal Housing Administration mutual mortgage insurance plan. It hopes to re-estab-lish the general mortgage market on a first-lien basis and at the same time promote a long-range period of building construction in which all persons with adequate income can participate. Interest Seen Pared It has set the maximum loan rate high enough to include the present first and second mortgages and, when rules and regulations are completed, believes it can be done on an interest rate much less than that now offered. J. Howard Ardrey, former Texas and New York City banker, is deputy FHA administrator in charge of the mutual mortgage insurance division. James A. Moffett, FHA administrator, and Mr. Ardrey believe it will be possible to put the home insurance provisions in operation by Nov. 15.

Gleanings

Trade Revival Predicted Citing the 8 to 12 per cent increases over a year ago in dollar volume of retail trade. Dun & Bradstreet, Inc., said today that reports from all over the country indicate that October operations will be the most satisfactory that have been recorded since spring. The rise in retail distribution, which has been cumulative since the first of the month, was extended by the favorable weather for shopping which prevailed in most districts during the week. Abandonment of the central bank project and the shifting of emphasis from monetary and other governmental measures to a pressure for expansion of private loans are considered indicative of a heavier bearing to the right in order to achieve business revival, it was said. Radio Corporation Shows Net Third quarter net of the Radio Corporation of America amounted to $406,189. contrasted with a deficit of $525,158 in the corresponding period last year. Total gross income from all sources for the period was $16,810,790, against $14,225,112 a year ago. Steel Workers Fewer September employment in the steel industry was 6 per cent under the preceding month and almost 10 per cent under the corresponding ( month last year, according to the American Iron and Steel Institue. At the same time it was reported that the pay roll of the industry was $29,142,892 in September, contrasted with $34,362,208 in August and $37,322,250 in September. 1933. LAUDS END OF NRA PRICE-FIXING POLICY Fresident of General Tire Company Feels Industry Is Better Off. By l imes .Special CHICAGO. Oct. 27—Tire manufacturers probably will do a better | job of policing their own industry ; than the government has done for more than a year, W. O'Neil, president of the General Tire and Rubber Company, believes. Commenting on the end of federal price-fixing through the NRA, Mr. O'Neil declared he was hopeful j "that ending the floor prices and price differentials in the rubber industry may be for the best interests of the tire companies of the country.” A decided improvement in business for General Tire was reported by Mr. O'Neil. Despite slackening I since the first of the summer, the | company is holding gains over 1933, | he said. 7 DIRECTORS ELECTED Indiana Independent Oil Association Holds Annual Meeting. Seven directors of the Indiana Independent Petroleum Association were elected at the annual convention for the coming year, it was announced today. They include L. J. Scheidt. Columbus; Philip T. Williams, C. E. Foreman. George Lilly and R. M. Stith, all of Indianapolis; E. P. I Warren of Lafayette and Frank R. i Glenn of Muncie.

CITES FARM LOANS

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Ernest Rice Indiana is the heaviest borrower from the Federal Land Bank of Louisville and the Land Bank Commission of any of the four states of the Fourth Farm Credit Administration District. Ernest Rice, general agent of the bank, declares.

Wall Street

BY RALPH HENDERSHOT

Times Special Writer. N-EW YORK, Oct. 27.—Most people in Wall Street felt better today than they had in some time. Developments during the past week has caused the worst of their fears about the country going radical to materially subside. The bankers and the administration appeared well on the way to making up; a district supreme

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court justice had put the skids under the railroad retirement act, and a magazine poll had placed Upton Sinclair well behind his opponent in the race for Governor of California. Os p a r t i c ular importance was the President's reply to a ques-

tion about his attitude toward a central bank for this country. He asked the inquirer who had raised that ghost. Wall Street does not want Washington to rock the banking boat any more than is necessary, and in that connection it certainly does not wish for anything which would suggest that the government might take over the banks. For some months past big business men both in and out of Washington have been asking the President to help restore the confidence of the general public. Apparently Mr. Roosevelt and his lieutenants have been going out o ftheir way to do it. In addition to the relief the court action this week will bring to the railroads it affords reassurance to moneyed people generally that the judicial branch of the government is acting as a policeman guarding their interests.

u a a SINCLAIR had given the people in the east quite a scare. They are still somewhat afraid, but the poll indicates that efforts to beat him for the election are meeting with success. It probably never will be known whether the break in the market for securities of companies with California connections was engineered to give people of the Golden State a scare or whether it was a natural development caused by those who really were afraid Mr. Sinclair’s EPIC plan would do more killing than curing. In addition to the political and semi-political developments the Street had reason for increased confidence because of happenings in the industrial world. Reports showed a further increase in the output of electricity, and four companies this week declared extra dividends in addition to their usual disbursements. tt tt tt CLARENCE M. WOOLLEY, chairman of the board of the American Radiator and Standard Sanitary Corporation, added to the general cheerfulness by relating how the business of his company had turned upward since early August for the first time in about six years. The increase in the first fourteen days of October amounted to 75 per cent, he said.

Chicago Grain Futures

'Reprinted from, yesterday* WHEAT— Prev. Open. High. Low Close, close. Dec., old . .95-% .96% .94% .96% .36% Dec . new. .95% .96% .94% .96% .96% Mav 95% .96% .94% .96% .96% Julv 91% .91% .90% .91% .91% CORN— Dec., old . .74% .75% .73% .75% .74% Dec., new. .73% .74% .73% .74% .74 Mav 75% .76% .75% .76% -16% July 76% .77% .75% .77 .76% OATS— Dec., old . .49 .49% .46% .49% .49% Dec . new' . .48% .49% .48 .49% .49% Mav 46% .47% .46% .47% .47% Julv 42% .42% .41% .42% .42% RYE— Dec., old . .67% .68% .66 .68% .68% Dec., new. .67% .68% .66 .68% .68% Mav 70% .71% .69 .71% .70% July 69% .71% .69% .71% .71 BARLEY— Dec., old . .77% .77% .76% .77 .77% May 72% .72% .72% .72% .73 LARD— Oct 9 30 9 30 9 27 9 27 9 32 Nov 930 930 9.30 930 9.35 Dec 9 35 9 37 9 32 9 35 9 40 Jan 9.47 9 47 9 42 9 45 9.50 Mav 9 80 9.80 9 80 9.80 9.80 BELLIES— Oct 13 30 13 30 13 30 13.30 13 30 Dec 12 50 12 67 12 50 12 67 12 57 Jan 12 52 12 52 12.50 12 50 12.57 LOCAL CASH MARKET City grain elevators are paying 85 cents lor No. 2 soft red wheat. Otner grades on their merits. Cash corn No. 3 veliow 68 cents, and oats 43 cents. COTTON GINNINGS OFF By United Press WASHINGTON. Oct. 27. —The census bureau today estimated 6 748.223 bales of cotton had been ginned from this year's crop prior to Oct. 18. compared to 8.608,090 bales ginned from the 1933 crop up to the corresponding date a year ago. STEEL MEETING PUT OFF Tom Girdler. Republic Steel Corporation chairman, announced tod<>y that the special meeting of stockholders called for Oct. 30 to vote on the proposed consolidation of Republic and the Corrigan. McKinney Steel Company, is to be postponed until Dec. 17.

AAA Officials Map Plans for New Desired Powers Unless Clarifications Are Made a Veritable Flood of Court Suits Will Result. It Is Suggested; Three-Point Program Is Outlined. B’j United Press WASHINGTON, Oct. 27. —Agricultural Adjustment Administration officials today were drafting suggestions to congress for the new powers they wish in January. Three additions or “clarifications’’ are needed, it was said, if the act is to continue functioning effectively. The administrators want defined in no uncertain terms their powers to: 1. Enjoin handlers of farm products and others regulated by federal licenses from violating the licenses. 2. Examine the books and records of distributors, proc-

essors, shippers, “middle* men” and other licensees. 3. Prorate production quotas and shipping allotments. Court Suits Seen Unless this is done soon, a veritable flood of court suits challenging AAA authority will result, officials expect. While they are confident of winning such cases, if not in the lower courts at some higher bar. they feel that the simple fact of the' suits’ institution implies discredit to their motives and hampers speedy, workmanlike administration. The three points outlined today represent the principle of amendments offered at the last session of congress. Introduced hurriedly, almost without advance notice and without consultation with persons whom they would have affected or who opposed them, they died a not entirely unnatural death. Officials admit that in their anxiety to push them through they resorted to “star chamber” methods. They also confess to an insufficient effort to explain what they sought. The amendments were militantly opposed by a group led by Senator Harry F. Byrd (Dem.. Va.), who protested that they would create an agricultural czardom with Secretary Henry A. Wallace the dictator of each and every American farm. Other opponents charged “regimentation” and “un-Americanism.’’ Lost in Rush Because of more pressing national matters small attention was accordded the first series of proposed changes, although the White House indicated they were on the so-called “must” list. Democratic leaders apparently gave them only mild backing and they were lost in the rush. An entirely different approa.ch will be employed when legislation incorporating the same principles and seeking the same amplified authority is offered in January, officials emphasized. The AAA legal section has not drafted specific proposals but it was evident that a new series of amendments, differently worded than the old in most instances and possibly containing some new ideas would be sought. It also is intended to summon conferences of all who might be interested in the proposals so that differences can be ironed out and some measure of harmony between the AAA and the suggestions’ opponents attained. “We’re going to be tactful about it this time,” one official promised. He said he was “going over the whole adjustment act with a fine tooth comb” to discover both chinks and surplus appendages. STATE ENGINEERING AWARDS UP IN WEEK Federal and Private Construction, However, Show Drop. Bn Times Special NEW YORK, Oct. 27.—Although state and municipal engineering awards this week were at 17.212,000. the highest since July, federal and private awards dipped to 2,516,000 and 2.897.000. respectively, the Engineering News-Record disclosed today. Both state and municipal bond sales at $9,965,000 and PWA allotments, $968,000 net additions for nonfederal and $4,238,000 for federal work, are higher. The state and municipal bond sales total includes $5,000,000 flood control issue bought by Los Angeles county out of its $35,000,000 cash balance following failure to receive bids on this issue from financial , houses at the regular offering. FINLAND NOW SEEKS BETTER CREDIT TERMS Governor of Central Bank Confers With Wall Street Bankers. Bn United Press NEW YORK. Oct. 27.—Finland, j favored by her prompt payment of ! war debt installments, is seeking better terms on her other outstanding debts, it was learned today. Risto Ryti, governor of the Bank of Finland, is conferring with bankers in Wall Street on a refunding of the Republic of Finland 7 per cent and sla per cent dollar bond issues. Bankers were reported of the opinion that Finland deserves a better credit rating than indicated in these high coupons. The bonds are outstanding in the amount of $23,000,000. of which American investors hold about $18,000,000.

Hendershot

FIRST WINTER TERM Oct. 29 to Nov. 5 Arrange to start your business training during the opening week of the First Winter Term, or as soon thereafter as possible. Special business courses are demonstrating daily their definite Taiue and effectUenes*. Young men and young women who are specifically prepared are finding their wav into desirable positions. This Is the INDIANA BUSINESS COLLEGE of Indianapolis. The others are at Marion. Munrie, Logansport. Anderson. Kokomo. Lafayette, Columbus. Richmond and Vincennes —Ora E. Buts. President. For Bulletin giving foil particulars, get in touch with the I. B. C. nearest yon. or Fred W. Case. Principal. Central Business College Architect* Si Builders Bldg.. Pennsvlr.nia A Vermont St... Indianapolis.

FOREIGN TRADE UP FOR MONTH September Exports, Imports Top Previous Month; Below Year Ago. B'j l nil> and Press WASHINGTON. Oct. 27.—Imports and exports increased substantially during September as compared with August, the department of commerce reported today. Imports totaled $131,659,000, compared with $119,515,000 in August, but were considerably below the September, 1933, figures of $146,643,000. Department officials pointed out that the increase in imports was contrary to the usual seasonal trend during recent years when September imports have declined about 1 per cent from August totals. Exports totaled $191,690,000 in September, against $171,967,000 in August and $160,119,000 in September, 1933. The export advance, however, was below the average seasonal increase of approximately 14 per cent as it totaled only 11 per cent. The figures gave a merchandise export balance of $60,000,000. The figures disclosed that during the first eight months of the year sugar imports for consumption from Cuba amounted to only 702,756.000 pounds, contrasted with 1.722,172,000 pounds in the corresponding period for 1933. Following the reduction in the tariff rate as a result of reciprocal agreements with Cuba Sept. 3, the department reported, great quantities were withdrawn from warehouses, bringing the total imports of Cuban sugar to $2,232,862,000 pounds in the corresponding period of 1933.

Local Livestock

(Reprinted from yesterday) HOGS Oct. Bulk. Top. Receipts. 20. $5,351$ 5.60 $5 80 4 500 22. 5.35(6) 5.60 5.80 7,000 23. 5.55(5} 5.70 5.85 9.000 24. 5.15® 5.40 5.75 9.000 25. 5.15® 5.40 5.80 6,000 26. 5.00® 5.30 5.70 7.000 (140-1601 Good and choice .. $4 40® 490 1 160-1801 Good and choice ... 5.05® 5 20 (180-200) Good and choice 5 20® 5 40 i2OO-220i Good and choice .... 5 40® 5 50 i220-250i Good and choice .... 5,50® 6 76 1250-290) Good and choice .... 5 50® 5.55 )290-350) Good and choice ... 5.30® 5.50 Packing sows: 1275-350) Good 4 75® 5.00 1350-425) Good 4 65® 490 1450-550) Good 4.50® 4 85 <275-550) Medium 4 25® 4 65 (100-130) Slaughter pigs good and choice 2.65® 3.65 CATTLE —Receipts, 400— —Steers—-(sso-900) Choice $7.25® 8.50 Good 6 00® 7.75 Medium 4 00® 6.25 Common 2.75® 4 00 (900-1.100) Choice 8 00® 9.00 Good 6.00® 8.50 Medium 4.25® 6.25 Common 3.00® 4.25 (1.100-1,300) Choice 8 50® 9.50 Good 6 25® 8.75 Medium 4.50® 6.50 (1.300-1,500) Choice 9.00® 9.75 Good 7.00® 9.00 —Heifers—-(sso-750) Choice 7 00® 750 Good 5 25® 7 00 Common and medium 2.50® 5.25 (750-900) Good and choice 5.50® 7.75 Common and medium 2.50® 5.50 —Cows— Good 3 25® 4 25 Common and medium 2 50® 3 25 Low cutter and cutter 1.25® 2.50 —Bulls—(Yearlings Excluded) Good *. 3 00 ® 3.55 Common and medium 2.00® 3.00 VEAI.ERS —Receipts, 300— Good and choice $7.00® 8 00 Medium 4 50® 7.00 Cull and common 2 50® 4.50 —Calves—-(2so-500) Good and choice 4 75® 6 50 Common and medium 2 50® 4.75 —Feeder and Stocker Cattle——Steer*— <SOO-800) Good and choice .... 4 00® 5 25 Common and medium 2.75® 4 00 (300-1,050 Good and choice.... 4 00® 5.25 Common and medium 2 71® 400 Good and choice 3 00® 4.25 Common and medium 2.50® 3 00 —Cows— Good 2 50® S 00 Common and medium 2.00® 2.50 SHEEP AND LAMBS —Receipts, 1 000— Lambs. 90 lbs. down, good and choice $6 50® 7 00 Common and medium 4 25® 6 50 90-120 lbs., good and choice... 2 00® 2 50 Sheep—-(l2o-150) Good and choice 1.75® 225 All weights. common and medium 1 25® 2 00

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News and Views in the Business World

LIFT IN RATES HELD NO BOON FOR RAILROADS Traffic at Present Tariffs, Wages and Hours Seen Only Cure. BY CHARLES H. HUFF Times Special Writer NEW YORK. Oct. 27.—Students of the American railroad dilemma are turning increasingly toward the conviction that nothing short of revival of industrial activity, with resultant demands upon traffic, will offer any material solution of the carrier problem. Rate adjustments which may be granted by the interstate commerce commission, it developed today, are not regarded with any particular optimism. There is little inclination, for instance. to pin much hope upon the passenger fare conference which the commission has set for Nov. 16. There is scant belief that the requested freight rate increases, evrn if granted, would give the carriers a real lift out of their present difficulties. which, from a financial standpoint, are described as hardly less harrowing than they were in 1933. Thompson Names Issue This view of the situation characterizes the introduction written by Slason Thompson to the thirtyfirst. annual issue of Railway Statistics. just presented by the bureau of railway news and statistics, covering analytically the year 1933. Contending thav, the railroad situation will not be cured by the exercise of powers derived from a so- ! called emergency. Mr. Slason writes? “In itself, such an emergency provides no balm for the ills that today oppress the railways. They Jack the sustenance that can only'como through more remunerative traffic, not through monkeying with rates and fares and shorter hours.” Normal Traffic Headed What the railroads of the countrv really are waiting for, it is pointed out, is normal traffic at prevailing | rates, wages and hours of employ- ! ment. The sharp shrinkage in railroad 0 , ,stocks as a source of income to the’ thousands of shareholders is concretely illustrated in a table covering the four-year period 1929 t<j 1932, the tabulation also revealing, according to analytical opinion, the unwisely prodigal distribution of earnings by carriers in their time of prosperity. At the peak in 193, 76.93 per cent of all outstanding railroad stock yielded dividends, at an average dividend yielding rate of 7.83 per cent. At Rates of 6.02 Per Cent The total of $603,150,390 of dividends declared in that year was | equivalent to a ratio of 6.02 per cent | on the total stock outstanding. In 1932 only 32.85 per cent of out- ] standing railroad stock yielded dividends, the total distribution for the ! year was $150,774,322, the average j rate on dividend-yielding stock was >4.57 per cent and the ratio of divi. | riends paid to all stock outstanding j had fallen to 1.5 per cent. AUTO OUTPUT GAINS IN 9-MONTH PERIOD Chicago Federal Reserve Bank Reports Substantial Rise. B’/ Times Special CHICAGO, Oct. 27. —Automobile j production in the first nine months this year was greater than in the same period in either 1933 or 1932, and nearly equaled the 1931 total, according to a report of the Federal Reserve bank of Chicago. The output for September, however, was below that for August, totaling 123,909 units, a drop of 32 , per cent. Output in September, 1933. was 157,367 units. Sales of automobiles to both dealers and users in the seventh federal reserve district fell in comparison with the August total, but retail sales were not marked with as lares a decline as is customarily shown : in the August comparison. BANKS PAY DEPOSITORS Bn I imes Special SPRINGFIELD, 111., Oct. 27. I Fayment of 30 per cent to depos- | itors of the closed Orangeville (111.)} state bank has been authorized by State Auditor Edvard J. Barrett, j Checks totaling $40,742 were distributed yesterday.

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