Indianapolis Times, Volume 46, Number 201, Indianapolis, Marion County, 1 January 1935 — Page 12

Trends Washington Center of Interest as Year Opens. BY VINCENT S. LYONS Time* Financial Editor TODAY is a holiday in all parts of the country. but while the business man is enjoying his respite from the day's knottier problems, it is doubtful whether he is as unconcerned as the festive occasion of the day would warrant. It is with some trepidation that he realizes that on Thursday anew Congress goes into session. The meeting of Congress never was viewed as a favorable sign by business and industry. Usually these interests wait with bated breath while the legislators of the nation are in session. This is particularly true of the stock market com-' munity, which backs and fills within a narrow range while all the activity is going on at the capital. So many important items will come up for action over the next j few’ months that the session start- j ing Thursday is one of the most ] important in many years. The chief j occupation of the financial man is wondering whether the course of j events over the next few' months 1 will launch the country along routes of inflation. a a j THE bonus question is the major problem to be taken under! consideration in the first days of; the meeting. President Roosevelt | only yesterday declared that he was j against immediate payment of the, adjusted compensation certificates, j But quite a few Congressmen are just as adamant that the money should be voted this year. | Public works, relief, additional j funds for the Home Owners Loan Corp., job insurance, revisions of the National Industrial Recovery act. labor problems and numerous other highly controversial subjects undoubtedly will be pushed so that definite action can be taken on them. The new Congress is known to contain many individuals who will expend every effort to bring about inflation. Opposed to them are the Senators of the more conservative type who are violently against any legalization which would have a tendency to shake the nations money in international markets. a a a PRESIDENT ROOSEVELT himself has given indication that he would like to hold to a middle course. The question at the present time is whether he can weld together a large enough following to impede the passage of any radical legislation. Consequently, there is much interest being displayed over what he will say in his address to Congress. Unmistakable signs of betterment have appeared on the economic horizon in the last few months. It is believed that the President will point to this improvement in his message in an endeavor to ward off the introduction of any bills whic£ if passed, would have a tendency to obviate the gains already made. There is no denying, in view of his recognized ability to W’in over friends, that the forcefulness of his appeal will have a lot to do with the result. Undoubtedly the business man at his desk will keep one eye on the work on his desk and the other on the news from Washington. He realizes that what goes on in the capital during the next few months will be of distinct interest to him. WORLD SEEN ON ROAD TO RECOVERY FOR 1935 New York Stock Exchange Head Release Annual Statement. By United Press NEW YORK, Jan. I.—Evidences that the world is definitely on the road to recovery as 1935 dawns were seen by Richard Whitney, president of the New York Stock Exchange, in his annual review' statement. ‘‘The business situation today contains certain definite factors,” he said, "still almost passive to be sure, which tend to promote business recovery. The first of these is the abundance of funds in our banks and available for investment by individuals. The banks are competing for short-term first class paper to such an extent that the interest rate has almost disappeared. It is a phenomenon evident only in markets enjoying an excess x)f funds. “The recovery significance of this factor is in the availability of this capital for active business purposes when business discovers safe and profitable opportunities for its utilization.” Mr. Whitney stated. INDIANAPOLIS BUILDING ' SITUATION IMPROVES Vacancies on Oct. 1 Show Decrease Compared With Year Ago. A slight improvement was shown in the Indianapolis building situation during the current year, according to George W. Klein, chairman of the rental committee of National Association of Building Owners and Managers. Unoccupied buildings in the city • on Oct. I of the current year amounted to 20.99 per cent, compared with 24 45 per cent on the corresponding date of the previous year, collections of delinquent rents ip Indianapolis during the year showed an increase of approximately 50 per cent. Mr. Klein stated. Demand for building space continued strong throughout the year and cnly a slight change was evident in rental charges, the survey showed. The percentage for sucre vacancy in the downtown district during the year remained about the \same as in 1933, Mr. Klein reported. TEXTILE RISE IS SEEN Active First Quarter Is Foreseen By New Y'ork Executives. By Times Special NEW Y’ORK. Jan. I.—Market executives here vision an active first quarter for the textile industry. While it is not believed that the volume will exceed that of the corresponding period last year, additional business for the balance of the year is expected to bring the aggregate to 25 per cent ahead of 1934. Fall suitings lines will be ready about March and production on these styles will take up the slack caused by the end of the spring business, it was contended.

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FARM INCOME SEEN SPUR TO REVIVAL DRIVE Increased Buying Power Is Considered Proof, Carey Says. BY PETER B. CAREY Prmidrnt. Chicago Board of Trade CHICAGO, Jan. 1. —More dollars are jingling in the pockets of the American farmers than any time in several years. This is reflected in greater buying power. Lines of business that sell to the farmer are reporting increased volume. Such increases mean more employment—a paramount aid to economic recovery. Farm income, to he exact, is one billion dollars greater than the prececing year. The total income is placed at seven billion dollars by the Government. The extra billion, at this stage of recovery, should prove an immense incentive in the drive back to normal times. Measured in buying power at current price levels, its importance is somewhat arresting. Thousands of indebted farmers have been able to meet their obligations. Both farmer and mortgage holder are heartened by the bright ray of hope now penetrating the gloom of depression. That the turn has come for the farmer is shown in sales of mail order firms, equipment houses, wholesalers and retailers. The rather definite signs are apparent for the first time in several years. Grain and cotton prices are higher. The return from butter and eggs, highly important farm items, is well above that of a year ago. Livestock Prices l T p Livestock prices are substantially above last year, and returns are larger in dollars than last year, last winter or last spring. Forced liquidation of livestock on account of feed shortage means future shortages of meats. This should bring a long-time prosperity for substantial livestock farmers. Os course, farmer income has been aided by benefit payments from the government, but even aside from this the fact remains that the industry as a whole has started up from the valley of despair. In spite of the drought grain farmers have fared rather well. The price of December wheat on Dec. 1, 1934, was $1 compared with 83 cents the same day last year; com 924 cent compared with 441*; oats 54 compared with 31%; rye 764 compared with 53; barley 83 compared with 364 cents; lard 1112 compared with 420. Wheat prices have been held down in this country by the somewhat tangled foreign situation. France dumped part of her surplus on the world market as a climax to her disastrous price - fixing scheme. Argentina showed slight discretion in feverishly disposing of her remaining old crop. But in face of surprisingly low Liverpool prices our prices held well, simply because of the indiputable shortage that exists. Our combined crops of wheat, corn and oats this year were little larger than a normal corn crop. The shortage of cereals in general can not be overcome this season except by high prices, which will cut down consumption enough to meet the situation. Normal Crops Seen Some able crop experts feel that a cycle of over-production in wheat has been passed and that a cycle of short or normal wheat crops has been entered. If true, this would aid in a return of prosperity to the grain farmer. Such prosperity would be doubly assured if we carry out our hope of restoring foreign markets for American surplus, markets lost through the price-pegging experiment of the late Farm Board. This experiment brought retaliatory measures by France and other countries through the raising of tariffs and like steps harmful to wheat growers of this country. Up to that time private trade had always distributed the American wheat surplus expeditiously and at good price levels. Political tampering with markets always proves disastrous to the farmer. For that reason the incoming Congress should give intensive study to any new measures having influence upon the machinery for distributing grain. Receipts and shipments of flour and grain, Jan. 1 to Dec. 1, 1934, compared with same period last year, ars as follows: RECEIPTS 1934 1933 ; Flour 8 290.000 B'ols. 8 256.000 Wheat 22 398.000 Bu. 12.973.000 Corn 52.964.000 Bu. 88.928.000 Oats 13,751.000 Bu. 20 406.000 Pve 8 514.000 Bu. 6 633.000 Barley 9.714.000 Bu. 8.244 000 SHIPMENTS 1934 1933 Flour 5.621.000 Bbls. 4.999.000 Wheat 17 393 000 Bu. 14 493,000 Corn 38 108.000 Bu. 49 347 000 Oats 12.515.000 Bu. 16.916.000 Rve 4.544.000 Bu. 1.584.000 Bariev 2.093.000 Bu. 1,350,000 STO-COKE DEVELOPS LOW-PRICED BURNER Automatic Heating Unit Will Bum Both Coal and Coke. The Sto-Coke Manufacturing Cos., Inc., 1503 East Michigan-st, for the past few years has developed a lowj priced automatic coke and coal ! burner that will burn loth coal and coke, so that the consumer may ! have his choice in the fuel he • wishes to use. The engineering department has put their endorsement on the Cadet Automatic Burner, which officials claim to be absolutely free i from mechanical cares. The company is planning a production schedule equal to possibly any manufacturer of automatic | heating devices. TOY VOLUME HEAVY Reorders on toys indicate that retail volume on toys and playthings was the heaviest in four years, according to recent statements by James L. Fri. managing director of the Toy Manufacturers of the U. is. A.

Abreast of The Times on Finance

Average Citizen Takes Attitude of Optimism Little Business and Man on the Street Vision Favorable Year During 1935.

BY FREDERICK G. MATSON Times Financial Writer What about Little Business? What about the man on the street? Opinions regarding the state of the country have been voiced the last few days by financial and industrial leaders of the nation. Big business chiefs have made their annual statements on affairs during the last twelve months and have

added the usual prophecies on prospects for the New Year. Pressed with a curiosity to know the attitude of Indianapolis citizens not in a position to utter pronunciamentos with the authority of bank presidents and business heads, the writer assumed the role of inquiring reporter and questioned several persons at random on downtown streets. “How do you feel about your personal business during the last year, and what do you think 1935 holds in store for you and for the country as a whole?” was the question asked. Judging from the replies, the “average citizen” is optimistic. Although several of those questioned were definitely gloomy, the majority visioned bright prospects for general improvement in business conditions. Here’s what they say: Harry L. Richardson (58, of 525 N. Temple-av, shoe service shop owner)—Keen competition and price-cutting has made it impossible to make other than expenses. I have been in this location—l3l E. Market-st—for 24 years, and this is the worst depression I’ve ever seen. In fact, it’s the only real slump I’ve experienced. People today seem to be better satisfied, however, and I am serious in saying that the outlook is encouraging for the new year. Ralph Henry (29, Greenwood, clothing store clerk) —1934 has been better than 1933 and I look forward to still better times. Although speaking unofficially, I think business in the store has been much better this season. Even though complete recovery may be a long time coming, I think the depression is definitely cracked. Glenn Wood (33, of 237 E. llth-st, taxicab driver) —I have no kick coming. Times are bad but hope springs eternal. After hearing so many conversations among people in my cab, it seems that the general situation will be a lot better in 1935 than in 1934. Egan Leek (2%, of 2263 N. Penn-sylvania-st, brokerage house clerk) —Speaking frankly, I am no better off than I have been during the last twro years and I see no chance for immediate improvement. Os course the NR A has helped hundreds of people, but after all, the minimum wage established by NRA very often becomes the maximum wage as well. Ray Lawton (27, of 230 E. Ninthst, filling station attendant)—l have no particular squawks to make. 1934 could have been better, but I’ve seen things a lot w'orse. If every one had been as fortunate as I have been they would be o. k. Elmer K. Oder, (68, of 4506 Wash-ington-blv, hardware store proprietor)—lt has been a long, hard pull, but my business has been about 20 per cent better than in 1933. As for the new year, I don’t see any particularly bright outlook, but I hope I am wrong. I suppose if we stick to the lead horse we’ll pull through some way. Mrs. Vaughn Heywood (31, of E. 36th-st, cashier)—l think business has been much better during the last six months. Things are definitely looking up. From conversations I hear in the course of my work it seem that people are losing fear. With fear lost, confidence will gain, and if things go on the way they have been, we can’t help but be on the way up. Robert Wright (32, of 1940 Millers-ville-dr, bartender)—There is no doubt that the masses have benefited by the New Deal, but the man who has had a job for the l ist tw r o years has not been any better off because of the NRA. He ir not making any more money and his expenses have increased by at least 30 per cent. The future is more secure, but living conditions will not be much better. Cal Thompson (35, Negro, barber in Illinois Bldg.)—The first six months of 1934 were bad, but business has been picking up steadily. It certainly looks good not to see so many empty barber seats and I think things look brighter for everybody for the new year. Leonard Schatz (22, of 3763 Broadway, drug store clerk)—lt's been pretty tough going. Things are not as bad as they w'ere two years ago, but I don’t see much difference between 1934 and 1933. I think conditions will stay this way for a long time. This may be a depression, but in my opinion we are having a more normal state of affairs than in the boom years before the crash. Miss Morcelle Sadlier (27. of 3107 N. Meridian-st, social worker)—l think the outlook for 1935 is very encouraging. Although the unemployment situation still remains a very serious problem, I believe that conditions generally are much better than they have been. In my four years of social work—and that just about covers these depression years —I have seen things I am glad to say I don’t see anymore. Fred Duncan (47. Route 18. Box 612. farmer)—lt looks better than it PROFITS,_WAGES CLIMB Farm Incomes Show Sharp Gains Over 1933 Figures. By United Press WASHINGTON, Jan. I.—lndustrial profits, v.ages and farm incomes increased sharply over 1933 figures during the first nine months of 1934. a Federal Reserve bulletin showed today. The cost of living likewise increased, wood prices rising 27 per cent above the low in April. 1933. The report noted growth in incomes from construction and in railroad pay rolls. Prices of coal, metal, chemicals, rubber and miscellaneous products rose, while textiles, hides and leather feu.

INDIANAPOLIS, TUESDAY, JANUARY 1, 1935

Wall Street BY RALPH HENDERSHOT Times Special Writer NEW YORK, Jan. I.—The electric power figures for the week ended Dec. 22 are especially interesting for two reasons. The close approach to the all-time high for any corresponding week established in 1929 reflects the continued improvement in business. The high level of output, moreover, presents an unusual contrast with power

company stock prices, which are near their lowest figures since the depression began. It is true, of course, that total electrical output can not be measured against industrial operations, inasmuch as the domestic use of current has increased materially in recent

years. Household refrigerators and the cooling appliances in public buildings alone have increased the electric load in no smali degree. But discounting this development, the figures still furnish positive proof of better business. The low prices for power company stocks is due in large measure to fear of Government competition in the sale of electricity. They have been affected also by the smaller profits due to reduction in rates in some sections and to high operating costs under the NRA. Inability to make satisfactory arrangements for refunding maturing obligations has made it necessary to conserve cash that might otherwise be used for dividends, and that also has had an adverse effect on prices. a a a THE steel companies have been noted for their inability to see eye to eye with their employes. Consequently, it is most interesting to learn that the Inland Steel Cos. is laying plans to give all of its men vacations with pay. Few concerns in any line of business give other than their office workers and executives time off with pay. Perhaps the Inland officials are becoming more socially minded, or it may be that they feel the vacation idea is the best way to promote company unions and discourage affiliation with national organizations. a a a SENATOR CARTER GLASS of Virginia seems to have stirred up a hornet’s nest with his criticism of the Federal Reserve officials in connection with the interest rate order on bank deposits which went out recently. Backhanded compliments have been flying thick and fast ever since. The thing which impresses Wall Street most about the affair is the fact that many of its people have been claiming unconstitutionality and "foul” on several of the acts of the administration without getting a tumble, but a senator has only one slight criticism and he gets more attention than a drunk in church. Probably the Senator’s standing is slightly better than that of the boys below Fulton-st., but then, again, maybe his status is measured more on his ability to make trouble. did a couple of years ago. Things are moving along even though the drought hit us farmers pretty badly. I don’t think farmers should prophesy too much about the future—too much depends upon the weather—but we’ll hope for the Harry Harper (Negro. 37, of 913 N. Senate-av, Union Station red cap)—Things haven’t been very good this year. It’s been hard to make both ends meet. Os course, I am hoping for better conditions in 1935, but I honestly don’t know whether there is much chance, but here’s hoping anyway. Kenneth Gordon (27, of 2035 N. Meridian-st, salesman) —I've done fairly well, not as well as I have done, but I count on doing on a lot better next year. Conditions seem to be improved—as least people appear to have more money to spend than they did last year.

England Ends Year With Solvent Banks, Higher Security Prices, Practically No Labor Trouble

BY' C. T. HALLLNAN United Press Staff Correspondent LONDON, Jan. 1. England ended 1934 with solvent banks and cities, a fair government surplus, almost no labor troubles and higher security prices. The 1935 outlook was clouded with several uncertainties. Most of these developed as the upward curve of activity on the business charts, so buoyant in 1933, flattened out around March, 1934, and did little better afterwards than mark time. Twice during this ■period a wave of pessimism swept the Stock Exchange, but there was plenty of idle money to check resultant declines. Leading industrial issues at the end of 1934 were selling more than 15 times earnings, but sentiment, particularly in conservative financial circles, was disturbed, mainly because of the currency question. The paper pound had slowly weakened from its value of 68.28 per cent of its old gold parity on Jan. 1 to about 59 per cent at the close of the year.

CREDIT UNIONS FORMED AT 78 IN SIXMONTHS Associations Created in Widespread Businesses and Areas. By United Press WASHINGTON, Jan. I.—The first half year of the- little-publicized Credit Union Act has ended with 78 Federally chartered unions operating in places as widespread and businesses as divergent as a Pawtucket (R. I.) fertilizer concern and the New Orleans (La.) fire department. The unions are co-operative thrift and loan associations for groups of 50 or more who belong to the same lodge, attend the same church, work in the same store or are otherwise fairly closely connected. They are chartered by the Farm Credit Administration. Although the act was passed June 26, the organization deferred the first charter until Oct. 1. It went to the municipal employes of Texarkana, Tex., who call their union the “Morris Sheppard” after the author of the law. Others Formed Others were formed among: Hartford (Conn.) public school teachers; St. Louis (Mo.) employes of the Federal Farm Credit Administration; Duval County (Fla.) farmers; members of St. Cecilia’s parish. Water bury, Conn.; employes of Senator Huey P. Long’s Louisiana State University, Baton Rouge. Important steps in forming a union are: 1. Seven or more petitioners write to Washington asking the FCA for a charter, pledging a membership of at least 50 with some common bond of association and describing the economic necessity for such a credit source. 2. Members elect their own directors and committees and these serve without pay except in isolated instances when in a big union, for instance, an officer must devote much of his time to union work. 3. Members buy shares—each must buy at least $5 worth —and create a loan pool. Loans Cost Less Loans cost less and are more easily obtained than when negotiated through a bank or other commercial lending agency. The maximum interest rate on union loans is 1 per cent a month on the unpaid part of the loan. The funds saved may be loaned to members “for provident or productive purposes” for a maximum period of two years. Fifty dollars is the limit on unsecured borrowing, and S2OO or 10 per cent of the unimpaired capital of the union, whichever is greater, or secured. Officials said banks favored the credit union plan and did not regard it as competitive.

Hendershot

Stock Studies

The Wesson Oil and Snowdrift Cos. is a holding company. Through its subsidiaries it produces cottonseed oil products, accounting for somewhere around 20 per cent of the output in this country. Through its refining processes it manufactures a range of edible oils for home and bakery use. These oils are widely advertised under trade names. By-products are used in making cake meal for cattle feed and similar products. Mills are located largely throughout the Southern cotton states. FINANCIAL DATA (As of Aug. 31, 1934) Common stock (no par) shares.. 600,000 Preferred stock $4 (no par) shares 300,000 Surpluses $13,130,709 Cash and securities 6.776.807 Inventories 14,344,387 Total current assets 25.664,906 Current liabilities 3,397,555 During the company’s fiscal year ended Aug. 31, 1934, cash and securities increased $1,200,000, but inventories were about $650,000 smaller. Net working capital gained $1,600,000, while profit and loss surplus increased $600,000. On Aug. 31, 1934, the current ratio was about 7% to 1, while cash items alone were exactly twice total current liabilities. The book value of the common stock was $15.21, a $1.12 increase for the year. Wesson Oil and Snowdrift has been able to operate at a profit through depression years, although only 71 cents was earned in the 1933 fiscal year, but $2.03 was earned the last fiscal year. The common stock is on a 50-cent annual dividend basis, and in addition 50 cents in extras was paid during 1934, and another cash extra of 374 cents is payable Jan. 2. The Wesson Oil and Snowdrift Cos. was incorporated in 1925 in Louisiana. Both classes of stock are listed on the New York Stock Exchange and the New Orleans Curb. At a current price of around 32 1 i the stock sells to yield better than 3 per cent on the basis of a 50-cent regular and 50-cent extra dividend. It sells for nearly 16 times earnings. (All rights reserved Winchester Institute of Finance, Winchester, Mass.)

One solution W’as seen—a general stabilization of the world’s currencies. Although the question was carefully avoided in all speeches by Neville Chamberlain, Chancellor of the Exchequer, evidence multipled that talks to bring together the gold bloc, the socalled sterling bloc and the United States in a stabilization agreement already had been negotiated. Export interests, who in 1931 and 1932 welcomed depreciation of the pound as an excellent method of storming world markets, gradually lost enthusiasm, in 1934, having been chastened by foreign reprisals, tariffs and quotas. Foreign trade increased, but the only industry which seemed capable of converting increased exports into profits was the British motor industry. Financial conservatives also found fault during 1934 with the development of marginal gambling in British Government stocks. “Old Consols.” the premier British Government stock, rose from 734 to 814, accompanied by heavy speculative activity.

Stock Market Displayed Increased Activity After Passing of Election Day Sentiment in Wall Street Reached New Low for Decade Before Holiday, Then Experienced Moderate Revival. BY £LMER C. WALZER United Frcss Financial Editor NEW YORK, Jan. I.—Sentiment in Wall Street, which fluctuatp.i with stock market activity, made anew low for more than a decade before election day, and then picked up meagerly along with a moderate revival in business that brought with it some increase in stock sales. The net result of the year for the stock market so far as a general price average is concerned was just above zero. Leading issues registered declines, while some special issues and preferred stocks made gains.

Sales totaling about 322,000,000 shares were the smallest since 1924, and less than 50 per cent of the 1933 total. Turnover of shares listed was only 25 pr cent, or the smallest since records dating back to 1897 have been kept. Turnover of listed shares back in 1914 when the market was closed more than four months because of the war was 31 per cent. As 1934 drew to a close, market traders were more hopeful. But they continued to operate cautiously, since there were many uncertainties ahead. The major one was the new Congress which was made overwhelmingly Democratic at the Nov. 6 election. Business Sentiment Better Business and banking sentiment was better than that of Wall Street, although leaders in both branches were apprehensive over the Government’s spending program; Government competition against private enterprise; work relief which bankers said would ruin the country’s credit and preclude an attempt to balance the budget; and taxation, wall Street joined in these worries and added one of its own—The Securities Exchange Act of 1934. This year for the first time in all history, the security markets of the United States have come under Government regulation. Results to date of the regulation have been better than anticipated. The commisison of five appointed by the President to administer the act has been acting in a manner that is intended to reassure market operators, although many of the rulings and the uncertainty of others more drastic have tended to curtail operations. Wall Street had feared dire results from a regulatory body. It had spread this fear throughout the nation, and hence when the commission actually gave hope it would not operate to kill the markets it was difficult to get back the lost business. The Stock Exchange recently launched an educational campaign to help bring back some of the lost business although it asserts that was not the prime reason for the move. Individual stock exchange houses and associations of stock exchange houses also are making efforts to stimulate market activity. Market Needs Business Aid Real market stimulus, however, can only come from pickup in business. Thus far there is a fair trend in that direction, but the heavy industries are lagging. It is estimated that more than 33 per cent of the unemployed would be returned to jobs if the durable goods group swung into action. The only thing retarding the group, according to one big industrialist is orders, and the reason the orders are not forthcoming is simply that confidence* has not returned sufficiently. Stock traders lost the inflation factor as a market aid when late in January the Government adopted a gold bullion standard with gold at $35 an ounce, making the dollar worth 59.06 per cent of prebank holiday parity. Prices in the stock market had been rising in January, however, a decline set in that carried through to August. Then came irregularity until election, after which a fair recovery set in. FARM INCOME SPURTS Illinois 1934 Cash Ileturn Seen Up $32,84/.000. By Times Special SPRINGFIELD. 111., Jan. I.—lncome of Illinois farmers from seven major crops in 1934 is estimated at $181,379,000, an increase of $32,847,000 over the value of the same crops last year, according to A. J. Surratt, statistician for the state and federal departments of agriculture. The increase in income is due chiefly to the rise in price for corn this year.

“Foreign money” including American refugee capital was largely blamed, but this was denied by American banks in London. The effect of the boom in the gilt-edged market was to prevent the Bank of England from lowering the bank rate. However pessimistic big business interests may have been, retailers had an excellent Christmas season in Great Britain, with estimates that some 30,000,000 pounds ($148,500.000) had been spent, against 24,000.000 pounds ($78,800,000) in 1933. Shops and department stores in London were congested. A pickup in the woolen industry featured the textile centers during 1934. Most mills in the West Riding ran full time as the year closed. The opening of the final series of Colonial Wool Sales found stocks in manufacturing centers low, both in England and on the continent, and offerings met a heavy demand. Japanese competition still was heavily felt in cotton goods quarters.

NEW FINANCING OP 62PER CENT Capital Market Reopened to Railroads and Other Corporations. By United Press NEW Y'ORK, Jan. I.—A boom in the investment market during 1934 brought volume of new securities offered to the public back over the billion-dollar mark and promised further expansion of new financing activities in 1935. The 1934 gain amounted to 62 per cent over 1933. While the most striking development was an amazing recovery in municipal credit throughout the country, a hardly less important feature was the reopening of the market to major financing operations by railroads and other corporations. The largest railroad issue in years was floated in July in the form of $50,000,000 Pennsylvania Railroad 44 s, due 1984. It was followed two weeks later by a like amount of Baltimore & Ohio 445, due 1939. Investors responded to both, as well as some smaller carrier flotations. Similar success crowned efforts to market large public utility issues. State and municipal issues totaled $671,652,413, against $384,722,403 in 1933; railroad $113,210,000, against $12,000,000; public utility $98,181,000, against $71,144,000, and industrial $8,600,000 against SIOO,OOO. Municipalities and states all over the country borrowed at low interest costs as their credit ratings were boosted by better tax collections and slashing of budgets. Bankers were eager to bid for issues. Scarcity of high-grade municipal bonds sent prices up to highest levels of the present century. Strength spread to lower grades. New York City was able to borrow short-term money at the cheapest rates in its history. Its credit standing improved to enable it to float the first long-term bonds since 1931. The State of New York obtained $30,000,000 at record low interest of 1.8343 per cent. Chicago borrowed on corporate tax warrants at an interest cost of only 5 per cent, the first time since the World War the city had been able to market an issue of this kind at less than 6. per cent. BUTTER PRICES REACH NEW THREE-YEAR HIGH Fine Grades Selling at 31(4 Cents a Pound in Chicago, By United Press CHICAGO, Jan. I.—Butter sold at the highest prices in three years on the nation's mercantile exchanges yesterday, hitting the peak of an irregular advance that began nearly a year ago. Fine grades pound, or double the low of a year ago. The price on Dec. 13, 1933, was 1514 cents. Markets in New York, Boston and Philadelphia reported similar high prices with some choice grades hitting 3314 cents. Despite the new high prices dairy farmers were reported to be continuing their program of curtailing production because of high feed prices. Surplus storage stocks were greatly lower than a year ago. Government relief agencies will enter the butter market this week for 2,000,000 pounds and dealers saw a possible shortage of supplies if j relief needs are as great as a year j ago. MINNESOTA LEADS IN 1933 BUTTER MAKING State’s Largest Single Industry Booms to Record. By Times Special ST. PAUL, Jan. T.—Minnesota's j largest single industry, buttermaking, boomed to anew high both j in output and revenue during 1933,' a Report by R. A. Trovatten, State Commissioner of Agriculture, stated today. Again leading the forty-eight j states in butter manufacture, Min- ! nesota produced 307,000,000 pounds that were sold for $63,800,000. Sales of milk fluid, ice cream and other milk products brought the total income from dairy products up to $155,900,000 for the year. The state consumes about onefifth of its butter production, the Trovatten report said. The remainder is shipped to eastern mar- j kets. Profits from about two-thirds I of the production goes directly back to the farmers through the state’s 853 co-operative butter factories.

Government Bonds Home Owners’ Loan Corporation and Municipal Bonds The Union Trust Cos. of Indianapolis BOND DEPARTMENT * 420 E. Market RI ley 5341

News and Views in the Business World

SOVIET STEPS UP PRODUCTION OF MACHINERY Increase of 28 Per Cent Registered in First Nine Months. BY JOSEPH H. BAIRD United Press Staff Correspondent MOSCOW, Jan. 1. —Rapid growth in production of basic materials such as iron and coal, combined with an increase in consumers’ goods proved the outstanding industrial achievements of the Soviet Union in 1934. • In the first nine months the Commissariat of Heavy Industry stepped up production 28 per cent. From 250.000 to 270.000 tons of coal were mined daily. It was expected the yearly production would exceed 90.000,000 tons as compared with 29,000.000 tons, the high mark of prerevolutionary years. Production of pig iron rose to 30.000 tons daily. This previously has been the most backward Soviet industry. It was expected the yearly plan of 10,400,000 tons would be fulfilled. Also production of steel reached anew high, 30,000 tons per day, mark. Light Industry Impeded In light industry the 9 months output increased by 5.1 pier cent in comparison with 1933, fulfilling, during that period, 69.5 per cent of its 1934 plan. Light industry was impeded, however, by failure of the cotton collections in Central Asia. On Nov. 10 collections had reached only 60 per cent of the plan. At the end of the third business quarter the silk industry had fulfilled its yearly plan by 72.9 per cent; the linen industry by 67.5 per cent; the knitting industry by 70.6 per cent and the cotton industry by 70.3 per cent. Thus all were below 75 per cent, which would have been the normal fulfillment. The number of workers in the first eight months increased 10.3 per cent in comparison with 1933. Average monthly wages increased 14.4 per cent. Prices for vegetables in collective markets decreased 34.7 per cent, while tost of meat and milk products fell 20.9 per cent. Bread, the staple diet of the Russian peasant, and workman, doubled in price., Black bread now costs 70 copecks per loaf; white bread, 1 rouble 50 copecks. Man Output Highei Production per man increased in the first eight months by 11.1 per cent as compared with 1933. In the first three-quarters Soviet farms were supplied with 60,500 new tractors and 7,300 combines. Some 9,560 trucks and 2,782 passenger cars were produced. The average fulfillment of the entire second year of the five-year plan for the first three-quarters of 1934 w r as 69,2 per cent. While figures for gold production are never made public by the Soviet Government, the United Press understood about $150,000,000 worth of the yellow metal would be mined this year. Soviet gold reserves were estimated at about $700,000,000. SWING TO RIGHT AIDS PROSPECTS FOR SPAIN Promises to Furnish Further Impetus During 1935. ' By United Press MADRID. Jan. I.—A Swing to the right in politics boosted Spain’s business prospects in 1934 and promised to furnish further impetus in 1935. Money that left the country in the capital flight after establishment of the republic in 1931 began to return when the leftists fell from power in December, 1933, and this move was accelerated in 1934 by a further conservative political swerve.. This was climaxed in October by entrance into the government of the Catholic rightists, who hastened to assure business interests Spain had thrown her radical policies overboard. The result was reflected in a bigger business turnover, fewer bankruptcies, higher bank clearings and a rise in government bond transactions. NEW LIFE INSURANCE HIGHER FOR NOVEMBER Paid for Volume Shows Gain of 5.84 Per Cent Over October. Nearly $4,000,000 of new ordinary life insurance was paid for in Marion County during November by 40 offices, representing approximately 85 per cent of the life insurance business written in the county. Notwithstanding the fact that Octber showed an increase over September, the new business written and paid for in November registered an increase of 5.84 per cent over October. This upward trend indicates a growing business strength throughout the entire county. STEEL OPERATIONS SPURT By United Press NEW YORK, Jan. 1. —Steel operations registered their 11th consecutive increase this week, soaring to 39.2 per cent of capacity, compared with 35.2 per cent a week ago, an increase of four points or 11.4 per cent, the American iron and Steel Institute reported today.