Indianapolis Times, Volume 46, Number 193, Indianapolis, Marion County, 22 December 1934 — Page 14

T 7-ends mm* Highlights of the News During the Last Week. BY VINCENT S. LYONS

Time* Financial Editor THE Federal Reserve Board and the Federal Deposit Insurance Corp. jointly announced that befuming Feb. 1. the maximum interest payable on time and savings deposits throughout the country will be reduced from 3 to 2' 2 per cent The NRA Labor Advisory Board, which is headed by William Green, president of the American Federation of Labor, urged more teeth in NRA . Current .steel operations. according to the American Iron A; Steel Institute, are at 34.6 per cent, the best level since the summer Reflecting the proceeds from the bond sale, the Government's cash working balance on Dec. 15 rose from $729,944,560 to 51,692.347.359 Total .sales of Swift fc Cos. for the fiscal year ended Oct. 27. increased $119,000,000 over the preceding year and the profit was 5.25 per cent on the shareholders' investment . Creation of a system of unemployment insurance under Government supervision will be one of the most important pieces of legislation coming up for study at the next Congress, Senator Van Nuys declared Frank N. Bclgrano Jr., national cornander, urges the American Legion to obstruct any move for a bonus march on the Capital this year . . . Governor McNutt's special committee on taxation has voted to recommend to the 1935 Legislature that a moratorium be declared on the sale of property for delinquent taxes until July, 19 a a a THE Department of Agriculture I reported that the total value of all farm crops this year is $4 - 782.626 000, contrasted with revised figures of $4,114,265,000 for last year and $2 882.195,000 lor 1932. Chicago bankers bought from the Reconstruction Finance Corp. $22,300,000 of board of education 4’ 2 per cent bonds and paid a premium of a full point for the issues. In a survey of availability of bank credit in the Chicago Federal Reserve District, conducted by Dr. Jacob Viner and Dr. Charles O. Hardy, private banks were criticized for making inadequate loans and government agencies were assailed for their red tape. . . . American industry dug into surplus for $9,500,000 of finance losses and pay taxes and dividends, according to an analysis of corporation income tax returns with the Bureau of Internal Revenue. The Bethlehem Steel Corp. announced the completion of plans for the erection of anew sheet mill to cost between $10,000,000 and $15.000000. . . The battle between the Government ar.d the public utility interests reached new heights with the disclosure that the Public Works Administration might finance a municipally-owned power plant in New York City. . . Ihe trend of electricity production continued upward in the week ended Dec. 15, showing an increase of 7.5 per cent over the corresponding week last year. a a o SHARP reduction of appropna--1 tions for Federal relief and public works for the purpose of balancing the National budget was advocated by the nation's leading industrial and financial leaders meeting at White Sulphur Springs, W. Va.. uijder the auspices of the United States Chamber of Commerce and the National Assn, of Manufacturers . . , Former Secretary of the Treasury Ogden Mills warned against uncontrolled inflation in a speech at Scranton, Pa. . . . The Assn, of Life Insurance president? reported that new life insurance production for the first eleven months of the year was 9.4 per cent ahead of the corresponding period last year, although a slight decline was noted in November • . . The Oil & Gas Journal estimated that the oil industry in 1935 will spend $4,561,669,000 for equipment, leaseholds, royalties, labor and taxes . . . Sol A. Rosenblatt, NRA compliance and enforcement director, promised quick prosecution of code violators following removal of Blue Eagles . , . The National Lead Cos. featured dividend new r s with the distribution of a 14 per cent stock payment . . . Federal Reserve member banks in New York City and Chicago increased their holdings of United States Government securities by $150,000,000 during the week ended Dec. 19. indicating their part in the Dec. 15 financing operation of the Treas-. ury. nan THE Illinois Supreme Court, in a reversal of a lower court, ruled that sale of electricity, gas and water are not subject to the 2 per cent sales levy . . . Acreage sown to winter wheat this fall was the largest in four years, according to the Department of Agriculture . . . The widest gain in several years was reported by department stores in New York City in the first half of December. . . . The Reconstruction Finance Corp. assumed management of the Denver A: Salt Lake Railway, which has received large loans from the Government agency. . . . Car loadings spurted 28.924 cars last week to make the best December week in the kiast three years . . . Issuance by ®the Securities and Exchange Commission of permanent registration provisions drew the praise of the New York and Chicago Stock Exchanges. , . . Christmas bonuses to employes of corporations have been at the largest rate in several years. . . . This year's combined spring and fall pig crop is estimated at 35 per cent under a year ago. v CREDIT SURVEY AIMED IN CLEVELAND DISTRICT Study Similar to That Made by Viner to Be Made Next Year. By 7 urn Special WASHINGTON. Dec 22—Secretary of the Treasury Morgenthau has announced that a bank credit survey similar to that launched in the Chicago Federal Reserve District will be undertaken shortly in the Cleveland area Dr. Jacob Viner of the University of Chicago and Dr. Charles 6. Hardy of the Brookings Institution will again be in charge of the survey. The reception of the Viner-Hardv report on Chicago conditions was so favorable. Mr Morgenthau said, that it has been decided to examine conditions in the Cleveland district.

PAGE 14

HOLDERS AWAIT POLICY REPORT OF BIG BANKERS Many Annual Stockholders’ Meetings Scheduled for January. BY HOWARD CARSWELL Time* so'il Writer NEW YORK. Dec. 22.—The annual stockholders’ meetings in January of the Wall Street commercial banks are engaging the attention of the financial community today, while the immediate points of- interest will concern dividends and earnings during such adverse times, those conversant with the banking field generally are looking forward to the annual reports of the bank managements for their expressions of policy and attitude on certain banking and politico-economic issues which are currently so important to them. As far as the 19 big banks of the Clearing House go there are roughly 400.000 stockholders and around 32.000,000 common shares concerned. Aggregate market value of the j stocks of the 19 big banks amounts to about $1,600,000,000. Begin on Jan. 8 The majority of stockholders’ meetings are schedul°d for Jan. 8, 9 and 16. Public attention on Jan. | 8 w’ill center on the Chase National ! Bank, National City Bank and Corn Exchange Bank Trust Cos. meetings. The Bankers’ Trust Cos. and Cen-tral-Hanover Bank and Trust Cos. will hold their meetings on Jan. 10, while the Irving Trust Cos., Guaranty Trust Cos. and Chemical Bank and Trust Cos. will submit reports to stockholders on Jan. 16. Because its trustees are appo<nted to life tenure, with stockholders having no voice in the management, the Bank of New York and Trust Cos. is exceptional in the manner of having no annual stockholders' meeting. The Bank of the Manhattan Cos. held its meeting on Dec. 4, ► with the annual report of J. Stcwart Baker, its chairman, receiving much comment. Funds Are Problem. According to those conversant with current banking problems, the forthcoming annual reports may be expected to touch upon some interesting aspects of banking under currently adverse conditions. Outstanding is the problem of employment of the funds deposited, in view of the low interest rates prevailing. The volume of commercial loans continue at low’ <-bb. An expression of attitude on the part of the big Wall Street institutions on the subject of deposit insurance also will be followed with interest. Many bankers are of the opinion that the Federal Deposit Insurance law should be revised or modified in certain particulars. As far as the big banks are concerned, it is proving to be an unwelcome burden of expense. While signs of business improvement are not lacking, whether the banking managements will announce additional charge-offs and set up further reserves in the interest of conservatism will be followed with keen interest by many observers.

Stock Studies

GENERAL CIGAR I common stock * • xmct SH*t EARNINGS £ PRICE RANGE SCALE •’sr* —I t — I “ hAHill ° " 30 31 32 33 34 30 3’ 52 3344 ’ ° Winchester institute ce finance

General Cigar Company is one of our larger manufacturers and wholesalers of cigars. Most of its products are sold by widely advertised trade names including "White Owl.” “William Penn.” Robert Burns” and “Van Dyke.” Company has 95 distributing branches located in 22 states. Plants consist of 15 factories and 60 warehouses located in 43 cities of the country-. FINANCIAL DATA iAs of June 30i Common stock no par' shares 472.982 7 Preferred stock *IOO pari * 5.000.000 Surpluses 15.742,044 Cash and securities 7.317.329 Inventories 13.851.030 Total Curen' Assets . % 23.187.993 Current liabilities 1,097.755 During the 12 months period ended June 30. cash and securities increased $1,400,000. Inventories, however. were $2,000,000 loss, but net working capital was practically the same. Surpluses dropped about $500,000. On June 30 last the current ratio was better than 21 to 1 with cash and securities alone more than 6' 2 times current liabilities. The book value of the common was 544.59 or 75 cents less than the year previous. From 1929 through 1933 timings steadily declined, but stayed out of the red: 79 cents was earned on the common in 1933 and $3.05 in the first nine months of this year. The present $4 annual dividend rate has been maintained several years. In addition to the regular dividend, however, a $3 cash ext-a was paid Nov. 1 and another $3 cash extra declared Feb. 1. 1935. General Cigar was incorporated in 1906 in New Both classes of stock are listed on the New York Stock Exchange. The common is currently selling for around 56’. giving a yield of 7 per cent on the regular dividend and selling for about 14 times estimated 1934 earnings. Ai; richt Winchester Institute of Finance Winchester Miss.i CARRIER PROFIT SEEN Bn Times Special NEW YORK. Dec 22—James B. Hill, who recently was named president of the Louisville <fc Nashville Railroad, today said he expected the road to show a profit for the year of between $2,500,000 and $2,600,000.

Abreast of The Times on Finance

Maintenance of Profit Motive, Stable Money Adjudged as Necessary Revival of Capital Goods Industry Contingent Upon These Developments, Economists Assert; Public Works Stimulate Durable Goods Field. BY JULES BACHMAN AND A. L. JACKSON Vice Presidents Economics Statistics, Inc. NEW YORK, Dec. 21.—Until the outlook for profits is clarified and our currency is stabilized the capital goods industry will not record a very substantial revival. The Securities Act is a third but less important barrier in the way of this recovery. Some of the codes provide that there shall be a definite

“freezing” of present equipment and that no new machinery shall be added without the consent of the other members of the industry. This obviously reduces the demand for capital goods and intensifies an already bad situation. Muddled thinking about this question can result only in a continuation of the stalemate existing in business and the adoption of the schemes to stimulate the capital goods industries will lead only to new’ disappointments. Terms Are Different It will be very difficult to stimulate capital goods by means of the various public works projects now being proposed. Since in many cases the statement is made that the aim is to increase activity in the durable goods industry it is necessary and pertinent to point out that durable goods and capital goods are not synonymous terms. The real distinction is between “consumer’s goods’’ and “capital goods.” A machine which spins yarn is a capital good. A consumer’s good is one that is not used in further production. Thus, bread usually is considered a consumer good. However, consumer's goods and capital goods can be either durable or non-durable. Thus, an automobile which is used for a pleasure trip is a durable consumer’s good. It is called durable because it can be used a number times. On the other hand, bread is a consumer's non-durable good, as it can be used but once. Likewise with capital goods. Bituminous coal is a capital good when it is used in a factory, but coal is a non-durable good. On the other hand, a machine which is used to make another machine is a durable capital good. Thus, you can easily see that to speak of consumer’s goods vs. durable goods is to confuse the issue, since consumer’s goods are quite often durable. Durable Trades Active It is interesting to note that among the industries w’hich have experienced the greatest activity during the last year are the automobile passenger car industry and electric refrigeration for homes. Both of these industries supply consumer's durable goods. The largest number of unemployed are in the durable capital goods industries, but it is with their status as capital goods and not as durable goods that we are interested in analyzing the current problem. It is consumer's goods that furnish the demand for capital goods and it is only as the demand for consumer's goods is increased that there can be an increased demand for capital goods. No manufacturer will install a machine unless he can do so profitably. To install it profitably. in most cases, means that he must be able to sell the products of the machine. These products may be either capital goods or consumer's goods. If it is other capital goods which he makes, the demand for these goods must ultimately depend upon the demand evidenced for consumer's goods.

Local Livestock

(Reprinted from yesterday) HOGS Dec. Bulk Top. Receipts. 15. *5.50 ® 5.80 $6.20 2,000 17. 5 60® 5.90 6.30 7,000 18. 5.50 'w 5 80 6.20 10.000 19. 5.55 W 5.85 6.25 8.000 20. 5.7041 6.00 6 10 5.000 21. 5.85 ft, 6.15 6.55 5.500 (140-1501 Good And choice.... $4.75® 5.50 i!SO-180( Good and choice .... 5.85® 6.05 'IBO-2001 Good and choice .... 6.05® 6.25 (200-2001 Good and choice .... 6.25® 6.40 (220-2501 Good and choice .... 6.40® 6.55 1 250-2901 Good and choice .... 6.45® 6.55 i2OO-350i Good and choice ... 6.25® 6.45 '275-3501 Good 5.65® 6.00 Packine sows: '350-425) Good 5 60® 5.85 (275-5501 Good 5.25® 5.75 '275-5501 Medium 5.00® 5.50 1 100-130' Slaughter pigs, good and- choice 3.00® 4.C5 CATTLE —Receipts. 400— —Steers—-(sso-900) Choice $2 25® 8.25 Good 6.00® 7.75 Medium 4.00® 6.25 Common 2.50® 4.00 (900-1100 1 Choice B.oo® 9.00 Good 6.25® 8.25 Medium . 4.25® 6 50 Common 3.00® 4.25 (1100-13001 Choice 8 75® 9.75 Good 6 50® 8.75 Medium 4 50® 6.50 (1300-15001 Choice 9 00® 9.75 Good 6.75® 9.00 —Heifers—- • (550-7501 Choice 6.75® 7.25 Good 5.25® 6.75 Common and medium 2.50® 5.25 (750-900' Good and choice ... . 5.50® 7.75 Common and medium 2.75® 5.50 —Cows— Good 3.00® 4.00 Common and medium 2.00® 3.00 Low cutter and cutter 1.25® 2.00 —Bulls—(Yearlings Excluded) Good 3.00® 3.50 Common and medium 2.00® 3.00 VEALEBS —Receipts. 400— j Good and choice *R 00® 7.00 I Medium 4.00® e.oo Cull and common 2.00® 4.00 —Calves—-'2so-5001 Good and choice .... 4.75® 6.50 Common and medium ■ ■ 2.50® 4.75 , —Feeder and Stocker Cattle — —Steers—i 'SOO-8001 Good and choice 4.00® 5.00 Common and medium 2.50® 4.00 ! (800-1050' Good and choice ... 4.00® 5.25 Common and medium 2.75® 400 Good and choice 3.00® 4.25 i Comon and medium 2.50® 3.00 —Cows— Good 2 50® 3.00 Commcn and medium ... 2.00® 2.50 SHEEP AND LAMBS —Receipts. 700— Lambs. 90-lb. down, good and choice $7 50® 8 n 0 ; Common and medium . . 5.25<rr 7.50 90-120 lbs., good and choice . 2 50® 3.50 Sheep—-'l2o-150' Good and choice . 2 00® 3.00 All weights, common and medium 1.253 2.30 OIL STOCKS REDUCED Bn Times Special WASHINGTON. Dec. 22—Stocks of domestic and foreign crude oil totaled 324.260.000 barrels on Dec 15, or 1.710.000 barrels under the preceding week, the Oil Administraiuon reports.

INDIANAPOLIS, SATURDAY, DECEMBER 22, 1934

PRODUCE TRADE SHOWS DECLINE Shipments Off Few Hundred Carloads Compared With Year Ago. By Time* Special WASHINGTON, Dec. 22.—Shipments of produce have decreased a few hundred carloads per week as compared with the movement a year ago, the Department of Agriculture declared today in its review of Midwestern market. The Southern freeze accounts for most of the difference, it was said. String beans, peppers, tomatoes, cabbage and lettuce are coming in much lighter volume. Texas, California and Arizona crops mostly escaped heavy damage from weather and these have been filling the gap in market supply at rising prices. Northern vegetables move in steady volume. Price changes have been mostly on tender winter produce, some of which advanced sharply with gains of 20 to 100 per cent or more. Many lines of Florida truck sold in Northern markets at $3 to $4 a crate or hamper. Northern vegetables are mostly steady in price but old cabbage advanced $1 to $5 a ton in some markets and carrots gained $1 or more in Eastern producing sections. Celery and sweet potatoes held previous gains. Potato and onion markets are nearly unchanged. Prices of potatoes have no more than held their own since the middle of the month. There was even a slightly sagging tendency in the Middle West the third week of December although prices in Michigan and Wisconsin were still near 60 cents per 100 pounds sacked and city markets ranged 80 cents to sl. Potatoes still sold from 40 cents to 60 cents in Eastern producing sections and around 60 cents in the Far West although Nebraska shipping points quoted red stock above sl. Dealers are still talking of market improvement expected in January but there was little in the current position to support confidence. The December report showed a slight increase in the crop estimate. Losses in southern Florida were comparatively slight in market influence. WEST COAST VOLUME OF BUSINESS SPURTS Dollar Volume and Quantity Gain Over Last Y’ear. By Times Special SAN FRANCISCO, Dec. 22.—Merchants and industrial firms in California during the past month have been doing a larger volume of business than a year ago, both in dollar volume and quantity, according to the Wells Fargo Bank and Union Trust Cos. Inventories are at about the same level or somewhat smaller than those of last year. Department store sales in the state continue at high levels, showing increases in October and November of 20.6 per cent* and 18.5 per cent above the corresponding months of 1933, or nearly double that of the nation as a whole. Asa result the bank’s index of Pacific Coast business advanced in November to 69.9 per cent of the 1923-25 average level, from 69 percent in October and 67.2 per cent in November. 1933. STUDEBAKER OUTPUT UP December Figure Seen at 6500 Units; Pay Roll Heavy. By Times Special SOUTH BEND. Ind.. Dec. 22. Studebaker Corp. production for December will reach 6500 units. Paul G. Hoffman, trustee of the corporation, said today. In December, 1933, production was 5000. Mr. Hoffman said that 1500 orders will be carried over to January’. The pay roll yesterday was one of the largest in the last five years with more than 7000 men at work. Studebaker at one time employed 12,000 men.

Chicago Grain Futures

(Reprinted from yesterday) (Bv United Pressj Wheat— Prev. Open. High. Low. Close, close Dec.— Old .. .97 .97% .96% .97’* .97% New .. 97 .98 .96% .97% .97% Mav .. .97% .98% .97', .98% .98% July • .91% .92% .91% .92% .92% Corn— Dec. — Old .. .88% .88% .88 .88% .88% New... .87*, .38% .87% .88% .88% Mav... .85% .86% .85% .86% .86% Julv . .82% .84% .82% .83% .83% Oats— Dec -*■ New Y .53% .54 .53% .53% .54% Mav... .51% .51% .51% .51% .51% Julv .46% .46% .46% .46% .46% Rve— Dec. — Old ... .77 .77 .77 .77 .77% New .. .75% .77 .76% .77 77% Mav .. .75 .75% .71% .75% .76% July .75 .75% .74% .75% .75% Bariev— Dec. . 84% .84% .84% .84% .84% Mav .. .76% .78 .76 .78 .76% July.. .72 .72 .72 .72 .72 Lard— Dec 11 42 11 50 11.42 11 50 11 50 Jan.. 11 37 11.55 11.35 11 55 11 50 Mav. 11.37 11 97 11.77 11.95 11 87 July 12 02 12.12 11.95 12.12 12.05 Bellies — Dec. 14.75 14 75 14 75 14.75 14 75 Jan.. 14 85 14 85 14 85 14 85 14 85 May. 15.40 15.40 15.40

INTERNAL FIGHT SEEN LIKELY IN N. Y, jXCHANGE Insurgent Group Again Seeks to Inject Fresh Blood Into Control. BY RANDOLPH PHILLIPS Times Special Writer NEW YORK. Dec. 22.—A bitter fight loomed today over the issue of a new r deal in the organization of the New 7 York Stock Exchange. Announcement of the candidates for the new nominating committee furnish the tip-off that fireworks will result before the 1935 policies of the big board are determined. A wide divergence of opinion exists among the candidates, according to soundings made “off the record" by the writer. The major problem of the committee, aside from selection of the 1935 officers slate, will be whether or not partners of the Stock Exchange houses should have a greater voice in the affairs of the Exchange. ; Pleas Disregarded “I certainly think that partners should have almost as much say as do members,” said one candidate for the committee. “The trouble with the Exchange is that it has been run by a closely knit group of conservatives who have turnted a deaf ear to pleas for more democracy.” Another candidate indicated that he had almost entirely the opposite point of view. A third preferred not to comment, pointing out that the nominating committee was not elected as yet, the present selections coming up for ratification in January by the members. The new committee, as nominated by its predecessor, consists of the following: CHARLES MAURY JONES, of Carlisle. Mellick & Cos. ARTHUR Y. KERRIGAN, of E. A. Pierce & Cos. R. LAWRENCE OAKLEY, of Maynard. Oakley & Lawrence. SIDNEY RHEINSTBIN, of Stern, Kempner & Cos. JOHN WITTER, of Dean, Witter & Cos. 1 If custom is followed this committee will be unanimously approved *by the members of the Exchange at the balloting in January. However, because of the tense feeling now prevailing over the issues before the Exchange, a rival committee may be put in the field. A Curb Members Acted When a dispute broke out in the New York Curb Exchange last year regarding policy a rival committee was nominated. The Stock Exchange would prefer to avoid such an obvious manifestation of internal ructions, it is thought, by diplomatic handling. Stock Exchange troubles, dating from the 1929 crash, have intensified as the depression continued. The natural reflection of the dissatisfaction of the public in the workings of the Exchange began to show inside the Exchange itself when Washington started to “crack down” on securities trading. The Securities and Exchange Commission is said to be watching keenly the internal affairs of the Big Board in the realization that this is its chief ward. A liberalization of the organization would not be taken amiss, in so far as Washington is concerned. HOLIDAY TRADE RISES FOR MARSHALL FIELD December Business Seen 20 Per Cent Ahead of Last Year. By Times Special CHICAGO, Dec. 22. —December business of Marshall Field & Cos. will be approximately 20 per cent greater than for the corresponding month last year, according to F. D. Corley, vice president. It was said that December, 1933, was not a "bad” month, but that the current month's trade will be surprisingly close to the 1930 and 1931 figures. Figures on business are not available as the company does not break down reports into months. EARNINGS SHOW RISE Commonwealth Edison Cos. Net Increases Sharply. By Times Special CHICAGO, Dec. 22.—Earnings of the Commonwealth Edison Cos. in November improved sharply, due both to increasing business and a partial adjustment of excessive deductions made heretofore this year for state and local taxes, it was revealed today. Net for last month was $928,415. compared with $512,306 last year’, according to a report by James Simpson, chairman. Gross revenues were $6,593,889, contrasted with $6,367,549 in 1933. ORE SUPPLIES LOWER Volume at Furnaces and Lake Erie Docks Below Year Ago. By Times Special CLEVELAND. Dec. 22—Iron ore on hand at furnaces and at Lake Erie docks amounted to 35.873.661 tons on Dec. 1. the Lake Superior Iron Ore Assn, reported today. A year ago the total was 36.199.710 tons. Os the Dec. 1. 1934. total 30.625.105 tons had been delivered to the furnaces. TATE TO HEAD I. C. C. Tennesseean Named Chairman of Body for 1935. WASHINGTON. Dec. 22.—Hugh M. Tate has been named chairman of the Interstate Comm;rce Commission for 1935. He will succeed William E. Lee on Jan. 1. The chairmanship is rotated. The new chairman is a native of Morristown. Tenn., and was appointed a member of the commission in February, 1930.

Western Senators Aim Congress Investigation Into U. S. Silver Moves

Some Believe Treasury Has Kept Policy in Too Much Secrecy. By United Brest WASHINGTON, Dec. 22.—Western senators talked today about a possible Congressional inquiry to find out what the Treasury is doing about silver. Failure of Secretary Henry Morgenthau to enlighten them as to the extent of the Treasury's operations .toward nationalization of silver prompted the talk of an inquiry. President Roosevelt last summer ! ordered the Treasury’ to purchase | silver until the ratio to gold reserves was three to one. Silver bloc senators want to know if that has been done. The study, it was understood, would be undertaken with a View of determining the effect of the silver program on national and international trade and on world economic conditions. Others Are Awaited Crystallization of silver bloc sentiment awaited the arrival of others interested in the metal. Those here are divided on the subject of an inquiry. Some feel the Treasury has carried out the President's orders as far as is either wise or possible. • Those inclined to be critical of the Treasury base their dissatisfaction chiefly on the belief that movements in silver have been shrouded in too much secrecy. They'd like a peep at the records. Some Senators believe the proposed inquiry will not materialize. They point out that in the past the bloc has been prevented from concerted action by internal differences, which was particularly true of the last Congress. Information Needed Several said they felt the Treasury should inform Congress as soon as possible as to the extent the purchase program has been carried out, the effect of purchases on the economic situation, the price paid and whether any sales have been made to halt or slow down price increases. Among those taking this view were Senators Burton K. Wheeler (D., Mont.), veteran leader of the silver bloc; Pat McCarran (D„ Nev.), and Alva B. Adams (D., Colo.). The silver bloc has interested itself in finding out to what extent the $2,000,000,000 stabilization fund was used in the market in carrying out the silver purchase program, and to what extent purchases are being made by Federal Reserve Banks. N. Y. CURB EXCHANGE GIVES CHILDREN PARTY Members Distribute Sweaters and Shoes After Close. By United Press NEW YORK. Dec. 22. Santa Claus will come to Wall Street again this year, despite unprofitable operations of many security houses in the district. Curb exchange members gave their annual Christmas party to the children after the market closed yesterday. Each boy and girl was given a sweater and an order for a pair of shoes. The celebration was in a gaily decorated room on the ground floor of the exchange while a Christmas tree was erected on the visitors’ gallery. About 2500 children attended. JUDICIAL LIQUIDATION OF CITROEN ORDERED Action by French Tribunal Will Avert Bankruptcy. By United Press PARIS, Dec. 22.—The Tribunal of Commerce today ordered a judicial liquidation of the great Citroen Auto works. The action was taken on a petition by the “French Henry Ford, ’ Andre Citroen, head of the $115,000.000 Societe Anonyme Citroen, in an effort to avoid a bankruptcy that j would throw more than 50,000 workers out of jobs. Had the body decided against acceptance, the most probable alternative would have been bankruptcy without advantages of liquidation. CAR LOADINGS HIGHER Increase of 28,924 Units Reported in Dec. 15 Week. By United Press WASHINGTON, Dec. 22.—The Assn, of American Railroads announced today that car loadings for the week ended Dec. 15 totalled 579.935 cars, 28.924 cars above the preceding week and 20.516 above the corresponding week in 1933. Miscellaneous freight totalled 196,813 care, 808 less than in the preceding week, but 3,496 above the corresponding week last year. Merchandise in less than carload lots totalled 154.949 cars, a decrease of 2,129 below the previous week and 4.764 bejpw the same week in 1933. WHEAT EXPORTS DROP U. S. and Canada Ship 1.682,268 Bushels During Week. By Times Special NEW YORK. Dec. 22.—Exports of wheat from the United States and Canada during the week ended Dec. 15 amounted to 1.682.268 bushels, compared with 1.891.187 in the previous week and 2.910.662 bushels in the same week last year, according to Dun & Bradstreet, For the current season. July 1 to date, wheat exports have aggregated 82.287.845 bushels, against 99.470.797 bushels for the same period of last year. Com exports for the season totaled 5000 bushels. LOCAL CASH MARKET Citv grin elevators are paying 90 cents (or No. 2 soft red wheat. Other grades on their merits. Cash corn No. 3 yellow S3 cents and oats 4$ cents.

Burton K. W'heeler

Wall Street -BY RALPH HENDERSHOI-

NEW YORK, Dec. 22.—This is the time of the year w’hen business men begin to take stock of the results of the previous 12 months and to look over the prospects for the future. The best that can be said for 1934 is that it provides a basis for the belief that the depression has ended and that we finally are beginning to

climb the road back to normal trade conditions. But the big business men and the bankers, who should be better informed than any one else on the prospects for 1935, are decidedly reticent about expressing their opinions if they have any. One gains the impression that

they are none too certain about the factors upon which they must base their judgment. The question of whether we are to have inflation seems to be uppermost in their minds. These men make full allowance for the fact that President Roosevelt appears to have taken a more conservative stand on business matters. They expect him to do his best to avoid inflation. But they also take cognizance of the fact that Federal spending is continuing at a high rate and that the Government debt is piling up at a very rapid rate. They fear Mr. Roosevelt may not be able to keep us out of inflation despite his best efforts to do so. His political power, they feel, may prove of little use against economic tides. u x tt THE hope of most of these men is that business will pick up sufficiently to take up at least part of the slack in the number of unemployed. If this takes place they' believe the Government will be able I to ease off gradually in its expen- j ditures and eventually balance the Federal budget. Time is an important element in that connection. The nation has a i certain amount of fat upon which it j can live economically, but it is obvious that it can not go on indefinitely spending more than it receives in income. No one seems to know quite how large a debt structure the nation can stand before it begins to really impair its credit. Federal bonds are still going well in the market, but the response has been due, in part, to the efforts of the Government to force easy money, and to flood the banks with deposits. n a a THE more short-term securities the Government puts out the more it makes itself dependent upon the banks because the banks and insurance companies are among the heaviest purchasers of these securities. And if the situation were to reach a point where these institutions declined to co-operate it might become necessary to print the money with which to meet maturities. Consequently, the big fellows are obliged to guess about as much as any one else. They see possibilities of either credit or currency inflation, and the effects of such developments depend, in large measure, on public psychology. Moreover, should inflation overtake the country, it is extremely difficult to determine when it may be expected. LINTON TO HEAD GROUP M. Albert Linton, president of the Provident Mutual Life Insurance Cos., will be chairman of the committee in charge of Financial Independence Week, according to Henry E. North, chairman of the Executive Committee of the Life Agency Officers’ Assn.

r-AW NERTZENGUSH WALNUTS 5 lbs. SI.OO PAPER SHELL PECANS Lb. 29c BRAZIL NUTS . . . .Lb. 15c XMAS HARD CANDIES, 2 LBS., 25c OPEN ALL DAY SUNDAY ORIGINAL NUT STORE PALACE THEATRE BLDG.

News and Views “ the Business World

PRINCE URGES FEDERAL BODY TO AIDJOADS Creation of Board With Half Billion Capital Suggested. The followinc is the second of a series of six articles on "A New Deal for the Railroads," written for The Indianapolis Times bv Theodore Trince, well-known railroad authoritr. BY THEODORE PRINCE NEW YORK, Dec. 22.—Under Federal control and Federal laws there should be formed a company with full powers and with general corporate powers of railroad operation. to be known as the Federal Railroad Corp. be allowed to issue stock of $500,000,000 parvalue, to be paid for, as issued, in cash. The corporation also should be permitted to issue $2,000,000,000 of 4 per cent debentures, which might be sold to the public or bought at par by the United States Treasury. Each of the Class 1 railroads shouid buy stock to the extent of not less than 1 per cent of its property investment value, which would be about $260,000,000. Proposes RFC Loans Where a road was unable to buy the stock the corporation could relieve it of such obligation or could negotiate a loan for such purposes | from the Reconstruction Finance Corp. Roads in receivership could become a co-operative unit of the corporation upon such terms as the corporation and the Secretary’ of Transportation decide. Under certain conditions, more fully set forth in the plan, roads might be compelled to reorganize in order that there might not be too much of a financial burden placed on the operating roads entering in this co-operative plan and duties of the corporation. * TCfttQH Proposes SIOO,OOO Units Shares of stock should be in units of SIOO,OOO each par value. Each railroad should vote for the 24 directors of the corporation, and each share of stock should have one vote for one of the 24 directors. Not less than two-thirds of the directors should be chosen from the executives of the railroads. Labor should be represented bv four additional directors. All power of the corporation should be vested in these 28 directors, who would select officers, committees and three regional boards. One regional board would cover from the Mississippi to the Pacific; one east of the Mississippi and north of the Ohio to the Atalantic seaboard; one south of the Ohio and east of the Mississippi to the Atlantic seaboard. W ould Have Wide Powers The corporation and its regional boards would “run’’ the railroads, subject to the supervision of the Secretary of Transportation, who could have the Interstate Commerce Commission rule on any question. The corporation would have power to initiate and maintain rates, allow pooling of rates, provide for common use of equipment and. terminals. to reduce competition where beneficial though in violation of anti-trust laws, to carry on negotiations with labor, to reorganize or effect capital readjustment, of roads and to operate roads through such periods without the expensive process of receivership. It also would lend money io enable them to compete efficiently, and otherwise to formulate plans, in conjunction with the Secretary of Transportation, for the consolidation of systems and to exercise generally these functions as well as coordinate the operation of the railroads so that efficient, economical, stabilized and profitable operations may ensue. BANK CLEARINGS SOAR By Times Special NEW YORK. Dec. 22.—Bank clearings are the highest for any week in nearly three years. The total for the 22 leading cities for the week ended Wednesday as reported by Dunn Bradstreet, Inc., was $6,160,688,000, against $4,650,696,000 for the same week of last year, an increase of 32.5 per cent.

Hendersbot

Attention! NO COYER CHARGE DINE - DANCE BY THE FIRESIDE at the Castle NITE CLUB Pendleton Pike and Post Rd. 808 GRENEN’S 10-Piece Orchestra FLOOR SHOW Amerlran Pi*he*—Mixed Drink* at Reduced Price* SPECIAL NITE Famous Brown Buddies Band BIG NEW YEAR’S EVE PARTY Phone Now, Re*. Phone 3A92 R-2