Indianapolis Times, Volume 46, Number 200, Indianapolis, Marion County, 31 December 1934 — Page 17

DEC. SI, 1934.

DYER REVIEWS PENSION PLAN OF TOWNSEND Restores Buying, Slashes Jax Burden, Advocate of Bill Declares. BY LAWRENCE B. DYER Marlon County Organizer of lownund Plan. Soifie months ago, a cause or force, apparently having lain long Jeneath our social stratum, violently burst out like a mighty volcano and began to manifest itself into the “warp and woof” in our "social behavior.” Dr. Townsend of Long Beach, Cal., sensed the force, and at once set about to formulate ways and means to utilitize a conviction of his. Dr. Townsend is asking two distinctive legislative acts. First, a bill obligating the Government to pay every citizen whose record is free of habitual criminality, and who has attained the age of 60 years, a monthly pension of S2OO a month until the end of his or her life, upon the sole that he or she retires from all further business cr profession for gain, and frees under oath to spend the en--<i amount of pension within the Nfines of the United States durthe current month in which it is X^ed. c econd. a bill creating a nationFederal transaction sales tax, peculated at a rate sufficiently high vTj prod ice the revenue necessary to meet ihe requirements of bill No. 1.

Objects Threefold WThe chief objectives of the Townnd plan are threefold: First is the execution of a plan to restore buying so our citizens will be enabled to purchase the things they need for their comforts and development; second, steps must betaken to relieve society of the staggering burden of taxation now made necessary because of the cost of charity and crime, and third, to retire all who have attained the age of 60 years, from the productive field for gain. The Townsend plan is, however, primarily, a recovery movement. There are about 10.350,000 people in the country who have attlained the age of 60 years. From industrial observations. it 1s estimated, that about eight millions of this group would apply for the pension. About four millions of this group are working all or part time. Economic actuaries tell us, that under our present industrial system, that each S2OO pension check spent in a given community in which it is received, will create and maintain a job for one more worker, at a wage commensurate with the pension check, according to a fundamental law of economics. From this, we may safely conclude, that some 14 or 15 millions of idle workers will very soon be restored to jobs again, more stable and secure with an-ample wage to live well. To Be Fair, Just What will it cost to finance this plan? How can it be done? Who is to pay for it? And is the whole plan practical? The transaction sales tax is lo be levied low for the necessities of life and relatively higher, on the luxuries. This tax' is to be so levied as to apply so as to be fair and just to all. Government statistics show that In 1929, total business transactions were between 1200 and 1300 billion dollars worth of business. For the sake of illustration, we'll assume the average amount of 25 hundred billion dollars of business. The retiring of 8 millions of our elders would require about $1,600,000,000. We contend even the largest amount would not exceed 2 billions per month for the tax budget, or not to exceed 19 or 20 billions per annum. Assuming the average volume of business in order to raise a fund of 19 billions, it ! r ould necessitate a tax levy of bout 8-10 of 1 per cent. The tax plight drop down as low as 2-3 of 1 per cent, in course of time. Indianapolis is estimated to have about 35 or 36 thousands of her people out of work. Our city has about 30,000 people 60 years of age or over. Therefore, it would draw a month’y pension check of $6,000,000 to be “turned loose” in the business channels. This money, naturally would change hands many times during the month in which received. Indianapolis has about 243,000 people who work for a living. If the monthly pension check were used r;- a pay check, it would put the-- .il back lo vork on a weekly of at least S4O. When this plan starts to operate the greatest buying stampede will be enacted that our city has ever witnessed. Very soon, the whole industrial Indianapolis will have taken on anew spirit, befitting the new era. Transportation systems, factories, fields, forests, banking institutions, and all phases of busi-

cess will be busy. Would End Duplication Much dupi'cation of tat budgets will have beer removed or at least greatly reduced. The taxpayer, in our own city will have been relieved from a very heavy burden. It costs society to endure vice, Ignorance, indolence, discontentment, unhealthful conditions. They are all figured in the tax budget. We must get people back to work so as to minimize these unwholesome conditions in our social life. They cost too much. Since the sale of liquor has been legalized the public has spent about $3,120,000,000 for liquor. The national tax on this traffic was 363 millions of dollars. The per capita consumption was about $25 worth. Indianapolis consumed about $9,123,000 worth of this liquor, which is about one and one half times as large as Indianapolis banks’ debits as of Dec. 23. Some opponents of the Townsend plan contend it is an economic impossibility and is "illusory.” The liquor bill for the year in question would have paid for one and one-half monthly pension check for our city. This liquor transaction, the bank transactions, as well as all other large or small deals are taxed to support the pension fund. Yet some say it impossible. Truth is a stubborn thing. In conclusion, allow me to reiterate, once the plan is enacted into law, it will raise the social, economic, intellectual, moral, spirit-, ual standards of our community. Indianapolis will be a better place in. jwhich to live.

Federal Bankruptcy Act Viewed Distinct Benefit to Corporations in U. S. Enactment of This Measure and Amendment of Securities Act Chief Pieces of Legislation During 1934. BY FREDERICK E. MATSON Os Matson, Rosa, McCord A Clifford Corporations have long been a choice object of legislative interest. No political campaign has been complete without making them the target of criticism on some ground or other. Strangely enough, however, the year 1934 seems to have been some exception to this rule. Perhaps this is because public needs have been so general that such burdens and restrictions as legislatures have felt called upon to impose were individuals

as well a corporations. Indiana had no meeting of its General Assembly in 1934. Eleven other states had regular sessions of the legislature. Twenty-six states have held special sessions, some with two or three, Illinois and Texas being in the lead with four. Undoubtedly in these states there has been legislation specially directed at corporations as such. Tfie record is not yet available. The chief subject of legislation in most of these-sessions has been taxation. The urgent necessities of poor relief, the failure in collection of general property taxes, and the increasing tendency to broaden the tax base has brought into view an infinite variety of tax experiments. New tax ideas of all kinds have been enacted into law. Older forms of taxes have been extended to apply to new subjects, and higher rates have been imposed. Some Laws Cited Among the new laws of 1934 are those creating or modifying taxes on net income, gross receipts, retail sales, occupations, liquor sales, brewing and distilling, gasoline, motor vehicles, moving pictures, tobacco, chain stores, intangibles and license excise and privilege taxes of more kinds than have ever before been heard of in America. As corporations, like individuals, engage in almost even, - type of business, it follows that almost any legislative act touches corporations and natural persons in much the same way. Corporations therefore have been affected at least as much as individuals by the various types of tax legislation adopted by the several states in 1934. There are two new laws, however, enacted by Congress which were intended to apply specifically to corporations, as such. Both of these are of a remedial or beneficial nature, and were passed with the deliberate purpose of aiding in the rehabilitation of business corporations. These consist of the 1934 amendment of the Securities Act passed in 1933. and the law authorizing reorganization of corporations that are in financial difficulties. Amendment of the Securities Act was for the purpose of removing some of the liabilities which the very severe original provisions imposed on officers and directors of corporations desiring to sell to the public new issues of bonds or other securities. There was much complaint of the original act. It was said that no substantial business, improvement could’ be expected until corporations engaged in the manufacture of so-called durable goods, or in other industries requiring large amounts of new- capital, could obtain necessary funds bysale of their securities, and that directors of such corporations were deterred by the drastic provisions of the act. Made More Workable The 1934 amendment removed or ameliorated a number of the restrictions so complained of. The changes were not as liberal as desired by many, but have made the act more workable and largely stilled criticism. The other Federal statute referred to is of far reaching importance. It undoubtedly confers outstanding benefits on many corporations which, through no fault of their own, have been affected so seriously by the depression that unless they can obtain some sort of financial reorganization, they have no choice but to cease business. On July 7, 1934, the President affixed his signature to anew law now commonly known as Section 778 of the bankruptcy law-. It is' a supp emental section added to the Federal Bankruptcy ,'ct originally passed in 1898. Its.,’•ecursor was Section 77, enacted March 3, 1933, relating to reorganization of railroads engaged in interstate commerce. The 1933 amendment ar plied only to railroad corporat../ns. The 1934 amendment, Section 77 B, opens the field of reorganization, under the Bankruptcy Act, to all business corporations. .lection 778 is much too long and intricate for detailed analysis here It provides in general that a corporation in financial distress, instead of goi. g enrough receivership or bankruptcy and being wound up. may file its petition in a Federal

Investment Service We Offer: GOVERNMENT, Land Bank, Home Owners’ Loan Corporation, Federal Farm Mortgage Corporation and highgrade, general obligation municipal bonds. We also execute buying and selling orders for customers in all other types of securities. May we be of service by advising you in regard to your present investments or supplying your additional requirements?, Jletcher frost (ifompang EVANS WOOLLEN, President H. F. CLIPPINGET, HAROLD B. THARP, Vice President Manager Bond Department

District Court (which alone has original Jurisdiction of bankruptcy matters), stating that it “is insolvent or unable to meet its debts as they mature and that It desires to effect a plan of reorganization.” Rules Laid Down The petition must set forth the nature of the business of the corporation and a brief description of its assets, liabilities, capital stock and financial condition. After a hearing at which the good faith of the petitioner is determined, the court fixes a time within which creditors, secured and unsecured, must file their claims and also the period within which a plan of reorganization must be submitted. Such plan usually includes a general scaling down of indebtedness of the corporation in accordance with priorities and equities of the different classes of creditors, a rearrangement of its capital structure, and sometimes new issues of stock. The purpose, of course, is to relieve the corporation of the immediate pressure of current debts, to ease the overhead from fixed charges on outstanding notes and bonds, to provide it with new w’orking capital, and to give it a breathing period in which to get on its feet and reach again the road to prosperity. In short, the act provides a way by which corporations W’orthy of continuing in business, instead of going bankrupt and being wound up, may now be financially re-estab-lished. In the few months since the act w’as passed, it has been recognized as probably the most constructive piece of legislation enacted by Congress in recent years. Many corporations already have sought to take advantage of it. Information as to the total number of corporations located in Indiana that have done so is not at the moment available. In the U. S. District Court for the Southern District of Indiana some fifteen petitions for reorganization have been filed and are proceeding in due course. Wide Variety Indicated The wide variety of business that may be benefited by Section. 77-B is w-ell illustrated by those petitions. Os such petitioning corporations one is engaged in manufacturing furniture, two in operating department stores, one is manufacturing coke and gas, one in transporting and wholesaling natural and artificial gas, one in the sale of securities, two in manufacturing and selling food products, four in operating office or apartment buildings, one in the purchase and sale of dairy products, one in operating a local telephone system, one in dealing in oil and petroleum products. Ultimately, the court will be called upon to approve or reject a plan of reorganization for each of these concerns. If in any case no plan can be worked out that is approved by at least two-thirds of each class of creditors and that is considered by the court as fair and equitable to all parties concerned, the reorganization will fail. Where an acceptable plan is submitted, the reorganization will be perfected and the corporation will have another opportunity to continue in business, pay out its creditors on the new basis, keep its workmen employed, pay dividends to its stockholders, and add to the general welfare and prosperity of the community in which it is located. Whatever may be the record of other years, 1934 at least has done well by corporations in providing this highly beneficial law.

FOOTWEAR OUTPUT UP October Production Is 0.8 Per Cent More Than In Sep. nber. By Times Special WASHINGTON, Dec. 31—Production of footwear in October was 0.8 per cent above September, but defined 10.3 per cent from the volume of the corresponding 1933 month, according to a report of the Department of Commerce. Output of boots and shoes total 'd 28,199,943 pairs, compared with 27.974,320 pairs in September and 31,455,461 In October last year.

THE INDIANAPOLIS TIMES

SHARP SPURT OF MUNICIPAL SONUS CITED Many Issues During Year Swung From Record Lows to Tops., BY FRANK H. MORSE Os Lehman Brothers. No branch of the securities business has .experienced greater changes within the last year than the municipal bond field. The financial recovery of cities throughout the country has been accompanied by a swing in the prices of many municipal bonds from the lowest to the highest levels in their history. In the early months of the year only municipal securities of the highest grade were salable at any price and there was literally no market for second or third grade municipals. In the latter part of 1934 some of the high grade municipals w r ere selling above United States Government securities, while certain second and third grade bonds had recovered from 3D cents on the dollar to around par. Municipalities with unimpaired credit standing were able to borrow at record low interest charges. Positions Improved The causes underlying this rise in prices have been based not only on an improvement in the intrinsic value of the securities, money market conditions and the scarcity of other new issues of securities, but also on the very real improvement in the financial position of municipalities throughout the country. Among the factors contributing to the strengthening of municipal credit, I believe the following are the most important:

1. Drastio economies In governmental operations including- careful attention to budget making, elimination of waste in administration, etc. 2. Marked improvement in tax collections during 1934. A study shows that the tax collection curve, which had registered a severe decline for the three preceeding years, seemed at last to have leveled off and started upward. Reasons for this improvement cited by municipal flnanci: I officials include general business recovery, application of strict methods of collection, the resort to tax receivership and prompt tax sales, increased penalties for delinquency, “Ray Your Taxes” campaigns and the employment of instalment payments. 3. The activities of the Public Works Administration and the Home Owners Loan Corp. have had a constructive influence. The PIVA, which, in 1933 granted more loans to municipalities than private capital, has continued to make loans for construction of public works hi an intelligent and able manner. Several times during the year it re-sold to the public bonds purchased in the past at considerable profit to the Government. Activities of the HOLC undoubtedly contributed to the improvement in tax collections. 4. Public officials gemerally stopped playing politics when confronted with financial crises and acted in an Intelligent and courageous manner when such action was necessary to preserve the credit of their cities. 3. For the first time in many years, the tax payer and voter were aroused to the point of giving attention to city problems. The importance of this development can not be stressed too strongly because it means that for some time to come the taxpayer will examine citv budgets and watch municipal officials to prevent a recurrence of past extravagance. 6. The successful consummation of refunding programs, accompanied by a recovery in the prices of securities affected, gave assurance that municipalities could be restored to a sound financial basis. Important programs carried out during the year included those for the City of Detroit and the State of Arlmnsas. Other municipalities, among them Newark and Yonkers, successfully carried through funding programs and inaugurated the principle of operating under cash basis budgets. One of the most significant developments of the year was the clear indication that there has developed no tendency whatever in the American people toward repudiation of their public debt. When one realizes how difficult it has been to collect sufficient taxes to carry on during the last few trying years, this must be very reassuring to municipal investors. Trends Must Be Watched Certain trends in state legislation as applied to municipal financial operations must be closely watched. Some 20 states have adopted tax laws designed to check the rising cost of government, but the resulting loss of revenue has reacted to the disadvantage of the taxpayer in the form of new taxes, such as those on sales and income. Within the next few weeks the Legislaturss of 44 states will be in session and any tendency to reduce existing penalties for tax delinquency, to increase tax-exempt properties or to limit taxes, should be immediately checked. Such measures can only mean new taxes and a repetition of some of the troubles we have recently experienced. DIVIDEND PAYMENTS UP By Times Special NEW YORK, Dec. 31.—November cas.i dividend increases on 600 common stocks, accoraing to Moody’s Investors’ Service, amounted to $26,700,000, the largest gain for a single month since November, 1933. Since the low point of June, 1933, cash dividends on these stocks have risen $199,000,000.

PROPERTY TAXES LEVIED IN REPRESENTATIVE INDIANA CITIES The total amount of taxes levied on real and personal property in 1934 was well under the amounts levied four and five years ago. Some of this decline was the result of lower assessed valuations and part of it was the result of lower tax rates. The dates given in the table below, prepared by the Bureau of Business Research of Indiana University, indicate ye ar of collection. Total tax rates for all purposes and total property valuations (in thousands of dollars) in representative Indiana cities compare as follows: Total Tax 'Rate —Assessed Valuation (000 omitted)— Cities 1935* 1934 1933 1932 1931 1935* 1934 1933 1932 1931 East Chicago lso . I ’.'! 1 . 81 ! 0 ®..... $2 90 $3.60 $3.17 $3.28 $3.26 1 75,589 $ 72,925 $ 72,964 $ 92,874 $ 88,838 Fvtnsvtllo 284 344 268 3.14 * 3.16 111.938 109.021 117.736 137,750 138.249 Pt wavni ............... 273 275 225 243 2.38 146.667 148,220 163.040 224.571 230.573 Gary .. . 324 3.16 3.39 3.58 3.52 123.820 122.680 129.971 179,331 ■ 173,298 HammoAd "" 3.10 290 3.21 3.47 3.39 86.879 90,109 87.364 111,926 104,789 SldlanaDolte** ........... 2.63 3.13 2.82 2.79 2.78 504.985 511.163 571.236 674,660 691.336 Terre Haute .............. 388 410 3.94 3.98 4.20 51.499 60,632 55.594 75,176 76,392 Group Average 3.05 3.16 3.07 3.24 3.24 157,340 157,821 171,130 213,755 214,782, ” 9. 307 2.65 260 3.26 3.16 27.037 28.584 28.393 36.189 38,056 Lafavette ................ 2.75 2.84 2.17 2.70 2.76 30.366 30.509 33.518 36.250 38.152 Martont ... . . ’... ?94 372 3.30 3.33 3.36 14.708 17,002 16,398 26.231 26.603 Michigan City ... .. .... 3.05 2.98 3.6 T. 3.73 4.08 29.184 29.112 28.513 31.355 27.294 Mmcfe . ... . 310 3.39 3.0” 2.72 2.94 38.861 39.743 45.969 64.484 66.089 New Albany . . 3.80 3.82 2.70 3.63 3.66 20,288 21.358 23,757 29.000 30.000 Richmond . " I ” 328 2.82 2.2(. 3.40 3.30 31.183 31.375 34.408 40.807 42.020 Group Average .1.".... 3.28 3.17 2.80 3.25 3.32 27,375 27,955 30,137 37,759 38.316 Bedford 0 19 ’ M . 9 . .■^ PU ! a !‘ or . 3.66 3.58 2.46 3.84 3.96 10,669 10,965 11.955 15.073 15.650 Bloomington! 2.86 3.02 3.15 3.58 3.49 16.821 17.123 18.684 22.268 22.847 Crawforlsvllle 4 .........1. 3.08 4.10 2.86 2.74 3.02 9.589 9.754 11.523 14.191 14.667 Goshen ...... . . 3.04 3.32 3.21 .1.54 3.68 10,807 10,424 11.516 13.395 13.658 Hunt ing ton . . 3.15 3.28 2.75 I-. 14 3.34 14,449 14,570 15.973 20.139 20,576 La Porte . "/...1......... 3.56 3.86 4.20 .30 4.04 18.141 18.099 19.279 21.819 22.737 Logansport ■••..•*.,. •••• 2.48 3.38 3.00 3.72 3.78 16.846 16,855 18,195 20.862 21.741 New Castle .. . 2.02 2 13 2.45 2.73 2.75 13.156 12.769 13.934 16.832 17.359 Peru ” 288 2.60 1.50 3.26 3.50 10.748 10.722 11.523 13.538 13.583 Shelbyville 2.54 3.16 2.00 3.07 3.16 10.340 10.068 11,253 14.113 14.534 Whiting 2.88 2.58 2.86 2.86 2.94 21.174 20.437 20.940 28.966 26.826 Group Average 2.92 3.18 2.77 3.34 3.42 13.885 13,799 14,796 18,291 18,562 CUnton™' 000 . ?° PU . latlC n .... 460 4.14 4.1 P 4.35 3.98 3.660 4.407 4,080 6,227 6,655 Columbus 1.88 2.05 1 Si 2.70 2.58 9.885 9,810 11.093 11.873 11.979 Greensburg 2.84 288 7.73 2.94 3.12 4.925 4,994 5,603 6.655 6.875 Hartford City 2.98 3.56 3.29 3.66 3.44 4,811 4.882 5.273 6.346 6.479 Kendal vilte 248 261 2.26 2.60 2.60 5.522 7.157 7,031 8.554 9.122 Lawfenceburg X 2.39 2.95 2.49 3.08 2.84 2.289 2.095 2,632 3.215 3.436 Lebanon 3.06 3.48 2.93 3.34 3.18 4.626 4.665 5.341 7.002 7.312 Madison 3.42 3 50 3.56 3.90 3 96 4,361 4.637 5.123 6.073 0.380 Princeton ..I".1 3.92 3.76 2.40 3.66 4.06 5.365 5.438 5.974 7.046 7.369 Rushville 3.14 3.14 2.83 3.04 3.31 4.513 4.781 5.605 7.140 7.428 Tell Citv . ... 3.26 3.42 3.76 3.98 4.12 2.627 2,657 3.028 3.837 3.881 Vfl innrfl i\n 4 12 4 51 4.60 4.40 4.38 6.427 6.472 7.156 8.738 9 040 wXsg 2.9s s.m 2:80 3.2? 3 .4 5 6.602 7,071 7. 63 0 9.470 mis Washington 3.26 250 1.50 3.54 3.64 5.120 5.129 5.1 45 7.696 7.821 Group Average 3.17 3.30 2.95 3.46 3.56 5.052 3.300 5,808 7,134 1.-99 • These rates and valuations at* subject to revision by State Board of Tax Commissioners. •• The valuation Is for the entire city but the rate applies to property in Center Township only, t The valuation Is for the entire city but the rate applies in Center Township only. t The valuation Is for the entire clt* but the rate applies to property in Bloomington Township only.

Present Banking Laws, Need Chance to Function

Radical New Departures From Present Setup Held Unnecessary. BY DUNCAN U. FLETCHER Chairman Banking and Currency Written Expressly For The Times WASHINGTON, Dec. 31.—1 have heard so many complaints about our present banking system not being suited to modern life that I decided to try and pin down some of these critics and see what changes they would really suggest. So I sent a questionnaire throughout the country to all persons 'and groups supposed to have some ideas on this subject. I haven’t read all the answers, but there are no end of suggestions offered. They range from establishing a central bank to the proposal that the Federal Government take over and finance everything. That of course means the end of private industry and I don't believe we are ready for that. In fact it may’be that the Government is financing too much already. If they foreclose the mortgage on defaulted loans now they would own railroads, banks and most every kind of industry. Personally I believe that it would be better to put banking back into the hands of private bankers and lending agencies than to have the Government finance everything. In my opinion the banking lairs were modified sufficiently at uie

ENTER: 1935 EXIT: 1934 A RESOLUTION U WHEREAS, there having been a distinct need two decades ago for a strong stock fire insurance company to protect more economically the owners of good properties, and WHEREAS, the idea and plan for such a company was then conceived by Ralph B. Clark, resulting in the organization of The Merchants Fire Insurance Company of Indiana, and WHEREAS, the issuance of a participating policy by a stock fire insurance company being entirely new in the fire insurance field, the Capital Stock was readily taken by Indiana Citizens, and WHEREAS, for eighteen years The Merchants .Fire Insurance Company of Indiana has furnished the very best protection against loss by fire and tornado at a savings of many hundred thousand dollars to its policyholders, and WHEREAS, Merchants Fire of Indiana, through honorable, conservative and sound business management, has advanced to the top i 1 the insurance and financial world and is so recognized, and WHEREAS, the soundness of the financial structure and the foresight of the management in maintaining liquid Assets enabled Merchants Fire of Indiana to pass through the so-called “depression” of the past five years, meeting every obligation promptly by the immediate payment of each and every loss upon receipt of proof and increasing Assets and Surplus each succeeding year, and WHEREAS, the year 1934 is now a matter of history and to the very great pleasure of Merchants Fire of Indiana officials and its six hundred agents, the increases in Assets and Surplus and Premiums far exceed the results of any previous year, therefore , BE IT RESOLVED, that the integrity, financial strength, and honorable business methods cf Merchants Fire of Indiana entitle it to the utmost confide: ce-of the citizens of Indiana; and that it should receive the consideration of all owners of good Indiana properties who desire the very best fire insurance protection, because Merchants Fire of Indiana is an Indianapolis institution, paying Indiana taxes, employing Indiana citizens, carrying among the largest deposits in Indiana Banks, and in a multitude of ways contributing to the prosperity of Indiana and Indianapolis. DIVIDEND SAVINGS RETURNED TO POLICYHOLDERS PREMIUMS PAYABLE ANNUALLY Represented in Leading Local Agencies The Merchants Fire Insurance Company of Indiana 1715 N. Meridian St. Indianapolis Phone HArrison 3200

last session to care for the situation. We ought at least give these laws an opportunity to function before we proceed with additional changes. Some minor modifications may be necessary, such as making deposit guaranty more permanent. Then there is also the matter of small business credit which may need action. But all necessary change can be brought within the scope of the present setup and we need no radical new departures from it. One of the answers I got most frequently to my questionnaire was that we do not have sufficiency currency. Well the fact is that we have plenty of currency and the only trouble is that it isn't in circulation. The banks' are stuffed with it and the problem is to get it passing around again. This only can be done by restoration of private business. I don’t believe in Government ownership. GLASS BUSINESS UP President of Pittsburgh Firm Sees Improvement in 1935. By Times Special PITTSBURGH, Dec. 31. —This year has bebn 10 per cent better than 1933 and prospects for 1935 are bright, according, to H. S. Wherrett, president of the Pittsburgh Platt Glass Cos. The improved outlook for the automobiles industry, one of the largest users of the company’s products, has accounted for much of the expansion, Mr. Wherrett said.

ADVANCES OF 1934 AID CHILE'S OUTLOOK Beneficial Exchange Reform Pushed at Year-End. By United Press SANTIAGO, Dec. 31. Uninterrupted commercial and industrial recovery in Chile in the past year brightened the outlook for 1935. The Exchange Control Board, from Jan. 1 to Oct. 31, 1934, issued foreign exchange permits triple ihe value of those granted in the cox-responding period of 1933. Beneficial exchange reform was pushed at the year-end when the Central Bank of Chile fixed the official exchange rate at 15*.22 pesos to the dollar and 94.96 pesos to the pound sterling. Previously, official rates had been 9.61 pesos to the dollar and 47.48 to the pound, while the commercial rate, or exchange in the free market held steady around 25 pesos to the dollar.

Massachusetts Investors Trust T. P. BURKE &. COMPANY (Incorporated) . INVESTMENT SECURITIES INDIANAPOLIS FORT WAYNE TERRE HAUTE

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BOND TRADING IN YEAR SETS 10-YEAR MARK Turnover During 1934 Put at $3,679,000,000 Par Value. By United Press NEW YORK, Dec. 31.—Bond sales on the New York Stock Exchange in 1934 approximated $3,679,000,000 par value, the largest annual volume since 1924, and comparing with $3,355,646,000 in 1933. January, with total sales of $428.726.000, had the largest volume of dealings for any month since April, 1922. Sales on Feb. 5, amounting to $31,600,000, set anew high daily record, while, on Feb. 3, a Saturday record of $17,368,000 was set. The following table shows total bond sales by months for the past two years: Month 1934 1933 • January $ 428.726,000 $ 258.125,000 February 388.525,000 232.544.000 March 311.589.000 189,792.000 April 357.099.000 272.032,000 May 282.386.000 371.555.000 June 268,521.000 382.894.000 Julv 263,752,000 382,080.000 August 317.108.000 215,927.000 September .... 285.009.000 227.683.000 October 278.238.000 228.697.000 November 250,094.000 311.425.000 December * 250.000.000 282.892,000 Total $3,679,047,000 $3,282,646,000 : •Estimated for 1934. BOND MARKET SANGUINE By United Press NEW YORK. Dec. 31.—The bond market looks ahead with confidence to 1935, having during 1934 completed its third consecutive year of' rising prices. Trading set anew record since 1924. This confidence, increasingly evident during the last year, was based on several factors, among which two were prominent, better business and a striking recovery in federal, state and municipal credit. Rising industrial activity, with attendant increased earnings and dividend disbursements, was reflected in sweeping gains by bonds of industrial, railroad and public utility corporations. Advances of industrials, including issues of qiining, rubber, drug, steel, automobile, coal, oil and specialty companies, ranged from 4 to more than 35 points. Many touched the highest prices in years.