Indianapolis Times, Volume 47, Number 180, Indianapolis, Marion County, 7 October 1935 — Page 11

Trends a a a Significance Behind Judge Baltzell’s Ruling. BY VINCENT LYONS Thnet Financial Editor

LINDER the ruling handed down last week by Judge Robert C. Baltzoll establishing a valuation of $21,393,821 for the properties of the Indianapolis Water Cos., and fixing 6 per cent as a fair rate of return, the chief item of concern to the water consumer was whether rates were to be lifted. As Judge Baltzell failed to hold the present charge confiscatory, the assumption is that no change will be made. Behind this permier factor, however. are several circumstances which, when subjected to analysis, allow the consumer to appreciate Judge BaltzoH's ruling in its full significance. For instance, fair return is a meaningless term to the user of water until he realizes that the rate of return allowed in effect gfixes the rates which the consumer pays. lining the Federal judge's dualfinding as a basis, the company is entitled to earn 6 per cent on its valuation of $21,393,321. This would amount to $1,283,629 annuallv. Now if the fair return had been fixed at 7 per cent on the samf valuation basis the company would be entitled to earn $1,517,567, or a difference of $233,933. a a a / S the company derives Its T* earnings from the sale of water, the $233,938, resulting from the spread between a 6 and 7 per cent return, would in the long run come out of the consumer’s pocketbook. If existing rates were insufficient to allow the company these earnings then rates would have to be jacked up to the point where they would yield the stipulated sum. Judge BaltzoH's decision is far from the mark desired by the Indianapolis Water Cos. The company had esitmated the value of its propersy at approximately $28,000,000 and had contended that a fair rate of return on this would be between 7 and 8 per cent. Using 7% per cent, this would mean an annual return of $2,240,000, or $956,000 more than is allowed under Judge Baltzell's ruling. The water company's request for a return of somewhere between 7 and 8 per cent seems to be distinctly out of line with current money market conditions. With corporations able to refinance on an average basis of around 4 per cent and bond market yields almost to the vanishing point the water company's suggested fair rate of return is ill-timed. it u a 'T'HE airing of the Indianapolis Water Cos. situation reasserts the generally known fact that public utility companies are vitally difTcrent from the average industrial company. Earnings of the public utility company, in effect, have proscribed minimums and ma <imums established through the fixing of a fair rate of return. If the Public Service Commission feels that the company is making too much money it can attempt to bring down rates to the consumer. By the same token the company can ask for higher rates if it can prove that existing charges are confiscatory. Water company earnings as a general rule are the essence oi stability. Revenues per customer from year to year remain about the same, as water is the one commodity which outranks gas and electricity in its utility. The very nature of water probably explains the face that a large number of water systems throughout the country are municipally owned. It is too early yet to forecast whether the ruling handed down by Judge Baltzell will write finis to the episode. This probability rests with executives and counsel of the Indianapolis Water Cos. RETAILERS TO FIGHT WHOLESALERS' CODES Propose (o Aake Action Through Federal Trade Commission. By I iiiled Press NEW YORK. Oct. 7.—Retailers are planning to take action, through the Federal Trade Commission, against national manufacturing firms who, through member agreements, continue to operate under "oppressive" provisions of the NRA codes, it was announced today. This became known through a report filed at a meeting of the National Retail Dry Goods Association board of directors. Following filing of the report, the association charged that such manufacturers agreements are contrary to the anti-trust laws and such agreements are “monopolistic” on the grounds that they fixed prices, terms and marketing conditions. WHEAT ESTIMATE OUT Canadian Yield Scon Between 272 and 284 Million Bushels. By Timex Special MONTREAL, Oct, 7.—Wheat thrashing is nearing completion m the Prairie Provinces of Canada, except in Northern and Central Alberta, although harvesting operations have been delayed by unsettled weather, the current crop report of the Bank of Montreal, pointed out today. "Rei°nt estimates from authoritative quarters," the bank declared, pkace the approximate yield at from -72 to 284 million bushels, the crop varying greatly as to grade.” Unlisted Stock ißy Blythe & Cos.. Ind’. NtW YORK BANK STOCKS. Bid. Ask. ventral Hanover B A: T . 10(0, 108% chem lCßl N . tlonal Hr, a ?& Manufacturers . aai. -im National City '. 27% 50 * Cont 111 (Chicago’ SI 1 * 64 First Natl of Boston . 37’. voi, FIRE INSURANCE. Aetna Fire . Citv of New York Ins ,newi 25 a- * Federal lius . 76% 80 Great America Ins 25% 27'* Hanover Fire Ins 37.1. 30. 3 Hartford Fue 75 * 7gC Home Insurance 32 331, Ins Cos of N A . 66'* 69 National Fir* . . 72 74 North River Insurance 25% 27’ Phoenix Insurance 88 90 U S Fire 5ja- 53.3 Westchester Fire 3314 351*

SURVEY SHOWS I NATION MOVING TOWARD GOAL Miscellaneous Indexes Reveal Improvement Over 1934 Period. I By Times Special NEW YORK. Oct. 7.—America j obviously is in the process of steady recovery, Fenner & Beane, leading brokerage and commodity i house, declared today on the basis i of answers to a questionnaire sent to more than 40 branch offices throughout the country. Manufacturing, the survey indicated, has shown distinct improvement which varies from 5 to 21 per cent. Heavy industry recorded a i somewhat large recovery, now' standing at levels from 8 to 30 per I cent above last year. Bankers Willing to Lend Bankers are willing to lend money to responsible borrowers and credit is rea dyto flow into commerce and | industry when needed, the survey declares. Employment in the sections reviewed has been stepped up anywhere from 10 to 25 per cent, I w'hile retail trade has been showing | gratifying improvement, now rang- ! mg from 13 to 21 per cent above last j year. The average business, the survey j showed, is on the whole much more inclined to be optimistic than not. | Reports indicate, however, that | there is still much uncertainty, particularly in the case of the “man on the street,” who is confused and i apparently as often uncertain as j he is hopeful. In the Middle Western states, the J survey shows that volume of manu- | facturing and the heavy industries, | up 21 per cent and 30 per cent, re- | spectively, revealed greater gains than in other sections, having benefited from the pickup in agriculj tural equipment, machine tools, au- | tomobiles and auto accessories and steel. Employment Increases Employment, up about 16 per \ cent, registered one of the best i showings of any section. Neither ! the 13 per cent improvement in retail trade nor the 12 per cent adj vance in installment sales w r as out- | standing, but the 20 per cent expansion in farm income was among | the best reported for any section rej viewed. ! Although the Middle Western I business man is reported as skeptical of the Administration's pol- | icies, he is on the w'hole optimistic ; rather than uncertain, although his j hopeful outlook is not generally I shared by the “man on the street,” i the questionnaire disclosed, j The business man m this section of the country does not consider continued government spending necessary to maintain business at its present rate, and reports that the demand for government credit is “negligible,” as bank credit is generally “available to good borrowers.” Chicago Stocks ißy Abbott. Proctor & Paine) 11:00 Prev. „ A. A. close. Bendix 22'.-a 21% Borg Warner 57 56% Chicago Corp 2'* 2% Cities Service 1% 1% Cord 4 374 Elec House . 17 3 B 37 Grt Lakes Dredge .... 23 >4 23'. Swift 16’ * IS U Gen House Util 2% 2% Walgreen . 29% 29'. Zenith Rsu * 67* 67* New York Curb IBy Abbott Proctor A; Paine) 12 (Noon) Prev. N Y. close. Allied Mills 17 16% Am Cyanide “B” 23% 22' • I Am Superpower 1% 1% 1 Art Metal . B'l 8% 1 Atlas Corp 1011% j Carrier Corp m 10 Deere A- Cos 4040 Distillers Corn 25% 25% El Bond A- Share n% pi, Fisk Rubber 55" 53* Ford of Can "A" 24% 24% Ford of Europe 8 ~Vk Hiram Welker . . 14a. <l3l. 1 Humble Oil 531. 591 , I Imperial Oil Ltd 19 i ß s, Newmont Min ro% fin-’. I Nia Hud Pwr s 8 Novadel Agene " 30 993, Pan Am Airwavs .. . isp an-! Park Davis 47 ' 'jV St of Kv 20% h 2 I Teck Hughes Gold '; . 37, Money and Exchange TREASURY STATEMENT. ® v United Press) i Oct. 7.—Government ex--1 r . ece 'Pts for the current fiscal i ' ear t 0 Oct. 4 as compared with last year: _ This Year Last Year. ! expenses $1,960,730,868 $1,597.815 646 I Receipts . . . 1,048.982.684 1.026.939.654 ! , 911.748.183 571.875.991 Cash bal . . .. 1.769.123.703 2.184,805.138 C hicago Grain Futures (By James E. Bennett). 11:30 Prev. Wheat— High. Low. A. M. close £ PC LOB 1.067. 1.07’ 4 1.0S 3 . May LOS >4 1.04% 1.04 >4 1.0o 7 . JuI >’ 95*8 94U .94 '4 ,95 7 8 Corn— Off 65U .63’, , 64 P .64,; May 62% 61 > , .61H .61% 63’ 8 .62 1 g .62’ 4 62 3 4 Oats— Dec 29 5 a .29% ,29 3 s 29 5 . j May 40% ,30’s .30% iso'-i July 30', 30 30 .30'". Rye— P/ c 56* j .55% ,56> 8 .56% Mav 58' 2 .57% .58 .58% | July . 58 .58 .58 .58 COSTAL LINES RAISE RATES 10 PER CENT Shipping Costs Increased Despite Many Protests. I By Time * Special WASHINGTON. Oct. 7.—Freight rates of the inter-costal shipping ! lines were increased an average of 10 per cent last week under n n w tariff schedules filed with federal authorities, it was announced toTav. The increased rates were put into effect when the Department of Commerce stated no suspension would be granted on the new schedules despite many protests against them. Principal commodities to be affected are iron, steel, cotton piece goods, canned goods, macninery, lumber, grain and agricultural implements. A few' reductions will be I made on minor products, while increases on a few commodities will range as high as 150 per cent, it was sß.!d.

Abreast of The Times on Finance

Record Yield, Importations From Hungary Lift Italy’s Wheat Reserves to New Peak By Time* Special NEW YORK. Oct. 7.—ltaly this year will have the largest supply of wheat on record, according to a statement issued today by the Royal Italian Embassy here. The domestic crop is being augmented by payments in grain by Hufigary of her arrears in trade liabilities, it was pointed out. “Crop reports for 1935 from the Italian Ministry of Agriculture and Forestry reveal that a record wheat crop of 282,863.900 bushels has been harvested from the 12.416.000 acres under cultivation, a record yield of 23 bushels per acre," the statement said. Hungary' has arranged to ship about 8.000.000 bushels of grain to Italy through a trade agreement whereby Italy accepts the grain in payment of Hungary's trade arrears.

New York Stocks

ißy Thomson & McKinnon, 11:15 A. M. Prev. Oils— High. Low. N Y. Close. Atl Rfg 21 3 a 21 1 8 21 3 r 21 Barn.vdall 9% 9% 9% 93 Consol Oil 7 3 , 7% 7 3 4 7% Cont of Del 20 19 7 8 20 19% Ohio Oil . 10 1 a 10 10’ 8 10’s Pet Corp 9% 9% 9% 9% Phillips Pet 29 3 a 287 8 28 7 s 29% f%mouth Oil ... 10 10 10 9 7 s Pure Oil 7% 7% 7% 7% Roval Dutch .... 41 1 2 41*2 41 1 2 41’ 4 Seaboard Oil ... 28 28 28 28 Shell Un 9's 9% 9% 9' a Soc Vac 10 7 , 10% 10 5 s 10 5 a S O of Ca 1333,2 3 , 32% 32% 32% S O of Ino 24-% 24% 24% 24 7 a S O of N J 44 43 3 4 44 43% Texas Corp .. 20=, 20 20% 19% Tidewater Assn . 8% 8% 8% 8% Un Oil of Cal . 17% 17% 17% 17% Steels— Am Roll Mills .. 25% 24% 24% 25',2 Beth Steel 37% 37 37 37% Cruc Steel 25% 25% 25% 25 Mid Steel 21% 21% 21% 21% Natl Steel 69% 69% 69% 69% Otis Steel . . . . 15% 15% 15% 1574 Ren Ir & Steel 16% 16% 16% 16% Rep Ir A St pfd 73 73 73 72% U S Pipe & Fdv. 17% 17% 17% 17% U S Steel ... 44% 44 44% 43% U S steel pfd 108% 108' , 108% 108% Youngstn S& T 24% *24% 24% 24% Motors— Auburn 37% 36% 37% 36>/ 2 Chrysler 73% 73% 73% 72'% Gen Motors .... 46% 46% 46% 46 Graham Mot ... 2 1% 2 l 7 Hudson 14 13% 13% 13% Hupp 2% 2% 2% 2% Nash 15% 15% 15% 15% Packard 5% 5'% 5 '/a 5 Reo 3% 3% 3% 3% Studebaker 5% 5% 5% 5% Motor Access— Bendix 22% 22% 22% 21% Bohn Alum .... 46% 45% 45% 46% Borg Warner ... 57 57 57 57 Briggs 49% 48 7 s 49 48% Budd Mfg 5% 5%. 5% 5% Budd Wheel 9 8% 8% 8% Eaton Mfg ... 27% 27% 27% 27% Elec Auto Lite.. 31% 31% 31'% 31 Houdaille "8”... 22% 22% 22% 22% Mullins Mfg 13% 13'., 13'% 12% Murray Body ... 17% 17% 17% 17% Stew Warner ... 15 14-% 14% 14% Timken Roll 58% 57% 58 57% Mining— Alaska Jun 15% 15% 15% 15% Am Metals 28% 27% 27% 27% Am Smelt 51% 50% 51'% 51 Anaconda 22% 22% 22% 22-y 8 Cal & Hecla 6% 6% 6% 6'% Cerro De Pasco 60% 59% 59% 60 Dome Mines .... 39% 39% 39% 39% Granby 12% 12% 12% 12% Gt Nor Ore 12% 12% 12% 12% Howe Sound .... 53% 52% 52% 52% Ins. Copper 8% 7% 7% 7% Int Nickel .... 31% 31% 31‘, 31% Isl Creek Coal ... 27% 27% 2727% Kennecott Cop.. 26% 25% 25% 29% Park Utah . ... 4% 4% 4% 4% Phelps Dodge ... 25% 25% 25% 25% St Joe Lead .... 23% 22% 22% 23% U S Smelters .... 98% 98% 98% 98% Amusements— Crosley Radio .. 12% 12% 12% 12% Fox Theat 16% 16% 16% 15% Loews Inc 42% 42% 42% 42% Radio Corp .... 7% 7% 7% 7% Paramount, 10% 10 % 10% 10% RKO 4% 4% 4', 2 4% Warner Bros 7% 7% 7% 7% Tobaccos— Am Sum Tob . . 22% 22% 22% 23% Am Tob B' 100% 100% 100% 100% Lorillard .24 24 24 24 Phillip Morris . 47% 47% 47% 47'3 Reynolds Tob ‘B' 54% 54% 54% 53% Rails— Atchison 45% 45 45% 44% Atl Coast Lines 21% 21% 21% 21 B & O 13% 13% 13% 13% Can Pacific 9% 9'% 9'/ 8 9% Ch & Ohio . .. . 44Vb 43% 44V* 43% Chi N W 2% 2% 2Vs 2 Djla & Hud ... 31% 31% 31% 31% "Del Lac & W .. 13% 13% 13 7 / a 13% Erie 10 10 10 9% Erie pfd 13 13 13 12% Grt, Northern pfd 23% 23% 23% 23% 111 Central 14 14 14 14 Lehigh Valley .. 7% 7% 7% 8 Lou & Nash ... 42 42 42 42 MK&T ...3 33 3 M K & T pfd... 7% 7% 7% 7% Mo Pac pfd 2% 2% 2% 2% N Y Cent 21% 21 21 20% N Y New Haven. 5555 Nor Pacific 15 15 15 14% Penn R R 25% 25% 25% 25% Sou Pac 16% 16% 16% 16% Sou R R 8% 8% 8% 8% Equipments— Am Steel Fdy . 15% 15% 15% 15% Bald Loco 2 s s 2% 2% 2% Gen Elec 33% 33% 33% 33% Gen R R Sig . . 33% 33 33 31% Westingh Elec . 76% 76% 76% 76% Utilities— Am & For Pwr . 5% 5% 5% 5% Am Power & Lit 6% 6% 6% 6% AT&T .138 137% 138 137% Am Wat Wks .. 15% 15% 15% 15% Col Gas & Elec 12% 12% 12% 12% Comm & Sou . 1 5 8 1 % 1% 1% Consol Gas . 27% 27% 27% 27% Elec Pwr & Lit. 4% 4% 4% 4% Int Hvdro Elec .33 34% Interboro R T. . 22 21 % 21% 21 Vi Int T & T 9% 9% 9% 9% Nat. Pwr & Lit.. 8% 8% 8% 8% North Amer 19% 19% 19% 19V* Pac G & E 26% 25% 25% 25% Pub Serv N J .. 39% 39 39 39% So C’al Edison .. 22% 22 22 22 Std Gas 3% 3% 3% 3 Stone & Webster 6% 6% 6% 7 United Corp . 4% 4 4 4% Un Gas Imp . 15% 15% 15% 15% Ut. Pwr & Lt 'A' 2% 2% 2% 2% Western Union .. 47 46% 47 47% Rubbers— Goodrich 8% 8% 8% 8% Goodyear 17% 17% 17% 17% U S Rubber . .13% 12% 12% 13% U S Rubber pfd 34% 34% 34% 35 Miscellaneous— Allis Chalmers . 29% 28% 28% 29% Am Can 140% 140% 140% 141 Va Am Mach & Fdv. 26% 26 26% 25% Brklyn Man Tr 43% 43% 43% 43 Burroughs Add . 19% 19% 19% 19% J I Case 83% 83 83 83% Conti Can 86 86 86 35% Ct.erpillar Tract. 52 51 52 51 % Crown Cork 32% 32% 32':, 31 % C'urtis Pub 16% 16%, 16% 16% Deere & Cos . . 40% 39 7 8 39% 40 Eastman Kodak 153 153 153 153 Foster Wheeler . 16 16 16 16 Gillette 16% 15% 16% 16 Glidden 37% 37% 37% 37 Inter Harv .55% 55 55 56% Natl Cash Reg 17% 17% 17% 17 Owens Bottle .. 100 99% 99% 100% Rem Rand . ... 12% 12% 12% 12% Worthing'n Pmp 16% 16% 16% 16 Foods— Am Sugar 52% 52% 52% 52V 2 Armour . 4 3% 3% 3% Beatrice Cream . . . 15% Borden Prod ... 23% 23% 23% 23% Cal Packing 34% 34% 34% 34% Canada Dry G A 10% 10% 10% 10% Coca Cola 246 246 246 243% Corn Prod 61% 61% 61% 61% Crm of Wheat... 37% 37% 37% 37% Gen Baking ... 11% 11% 11% 11% Gen Foods 32% 32% 32% 32% G W Sugar ... . 28% 28% 28% 28% Loose Wiles ... 33% 38% 38% 38 1 Natl Biscuit . ... 30% 30% 30% 30% Natl D Prod ... 'l7 16% 16% 16% Purity Bak .... 15 15 15 15% Std Brands 13 12% 12% 13 United Fruit ... 66% 65% 65% 65% Retail Stores— Assd Dry Goods 14% 14% 14% 14 Best & Cos 52% 52 52 52% First Natl Stores 45% 45% 45% 46% Hahn Dept Sts 6% 6 6 6% Kresge S S . ... 25% 25 25 25% Kroger Groc ... 28 27% 28 27% Macy R H 47% 47% 47% 47% McLellan St .. 13% 13% 13% 13 Marshall Field .. 9% 9% 9% 9% May Dem St ... 51% 51% 51%, 51% Mont Ward 31% 31% 31% 31% Penney J C 80% 80% 80% 80% Safeway St .... 34 34 34 33% Sears Roebuck . 54% 54% 54% 53% Woolworth 60 59% 59% 60 Aviation— Aviation Corp ... 3% 3% 3% 3% Produce Markets The prices quoted below are paid for stock gathered in the country, while delivered in Indianapolis the price will be a cent higher. Heavy breed hens. 16c: Leghorn breed hens, 12c: heavy breed cocks. 7c; Leghorn breed cocks. sc: colored broiers, 2 lbs. and up. 15c: Leghorn brci.ers, 1% lbs and up. 12c; bareback broilers. 10c; ducks, full feathered and fat. 4c; geese, full feathered and fat. 3c: guineas. 15c each No. 1 strictly fresh eggs, loss of 24c. Each full case must weigh 55 lbs gross, a deduction of 10c a— No. 1. 294?30c: butterfat. 22c. Quoted by the Wadley Cos. SALES VOLUME GAINS By United Press DAYTON, Oct. 7.—Domestic sales of the National Cash Register Cos. during September amounted to $1,371,750, compared with $1,893,775 in the same month "of 1934, an inI crease of 2116 per cent, it was an- | nounced today.

INDIANAPOLIS, MONDAY, OCTOBER 7, 1935

Boeing Aircft ... 16% 15% 16 16% Curtiss Wright .3% 33 3% Curtiss Wright A 9 8% 8% 8% Douglas Air 31% 30% 31% 31 Nor Am Av 4% 4% 4% 4% Sperrv Corp . 12% 12% 12% 12% Utd Aircft (new) 19% 19 19% 19% Chemicals— Allied Chem ..167% 167% 167% 166 Com Solvents .. 18 17% 17% 17% DuPont . ..129% 129% 129%- 129% Freeport Tex ... 23% 23% 23% 23 Liquid Carb . .. 30% 30% 30% 30% Math Alkali . 31% 31% 31% 31 Monsanto Chem. 84 83% 84 83 Natl Dis (new).. 29% 29% 29% 29% Schenlev Dist .. 42% 42 42% 42 Tex Gulf Sulph • 31% 31% 31% 31% Union Carbide . 65% 65% 65% 65% Drugs— Bristol Mvers . 35% 35% 35% 35% Lambert .... 22% 22% 22% 21 % Lehn & Fink ... 10% 10% 10% 10% Sterling Prod . . 64 64 64 63% Un Drug tnewi. 9% 9% 9% 9% Vick Chem ...... 38% 38% 38% 38% Zonite Prod .... 4% 4% 4% 4% Financial— Adams Exp .... 7% 7% 7% 7% Allegheny Corp .. 1% 1%, 1% 1%, Chosa Corp ... 42% 42% 42% 42% Lehman Corp .. 89% 88% 89% 88% Transamerica . . 7% 7% 7% 7% Tr Conti Corp. 5% 5% 5% 5% Building— Am Radiator ... 16% 16% 16% 16% Gen Asphalt ... 17 17 17 17 Holland Furnace 18% 18% 18% 18% Int Cement 28 27% 28 27% Johns Manville 74% 74 74% 74 Otis Elev 18% 18% 18% 18 Vs U S Gypsum .... 70 70 70 69 Household— Col Pal Peet... 17'% 17% 17% 17% Congoleum 37 36% 36%, 36% Kelvinator 13% 13% 13% 13% Servel Inc 10% 10% 10% 10Vi Textiles— Amer Woolen ... 9% 9% 9% 9% E-.’lding Hem ...13% 13% 13% 13% Celanese Corp .. 27'/g 26% 27 26% Indus Rayon ... 31% 31% 31% 31% Kayser Julius .. 22% 22% 22% 22% N. Y. Bonds (Reprinted from Saturday) (By Abbott. Proctor & Palnei. DAILY BOND INDEX 20 20 20 60 Inds. Rails. Utils. Bonds. Today . 89.7 78.4 100.3 89.5 Yesterday 89.7 78.4 100.3 89.4 Week ago 89.7 80.8 100.7 90.4 Month ago 89.2 80.2 101.1 90.2 1935 high 90.0 86.4 101.6 90.9 1935 low .. . 83.6 71.0 89.3 83.0 (Copyright. 1935. by Standard Statistics) V. S. GOVERNMENT BONDS Libertys Prev Close, close. 4th 4%s 1933-38 100.9 100.9 lreasurys 4%s 1947-52 114 2 114 4s 1944-54 109.28 109.25 3%s 1943-47 105.2 105.2 3 Vis 1943-45 104 7 104.9 3'/as 1949-52 102.21 102.20 3s 1959-55 102.9 102.8 3s 1946-48 101.26 101.23 2%s 1955-60 99.13 99.11 2%s 1945-47 100.4 100.5 Home Owners Loan Corp. 2%S 1949 93.22 98.19 3s 1952 100.4 100.2 Federal Farm Mortgage Corp. 3% 1964 101.18 101.25 3s 1949 101.10 100.6 2%s 1947 100.22 100.16 3s 1947 99.5 99.8 DOMESTIC Prev. Close, close. Alleg Corp 5s ’SO 22% 23 Am Frgn Power 5s 2030 69 69 % Am Tel R Tel 5%s '43 113 113V* Am Tel & Tel 5s '65 113'/* 113 Atl Coast Line 4s ’52 92% 92% Atch Top & S Ft 4%S ’4B 106% 106% Am Wat Wks 5s '44 105 104% Am Rolling Mills 5%s ’3B 112% 111% Balt & Ohio 5s ’95 71% 72 Balt & Ohio 6s ’95 80 79 Balt & Ohio 4%s ’6O 56 V 8 55% Beth Steel 5s '36 103 103 Chi Milw & St P 5s '75 10% 9% Chi Milw & St 5s 2000 3% 3% Cleve Un Term 5s '73 99 98% Cleve Un Term 4Vis 77 90% 90V* Col Gas 5s May ’52 95% 95 Col Gas 5s April '52 96% 94 Col Gas 5s '6l 95% 95% Can Pac Perp 4s 83 82 Cent Pac 5s '6O 84% 84% Big Four 4%s '77 73% 73% Chi & West Ind 4s '52 97 97 Chi & West Ind 5%s '62 105% 105% Chi & Nor West 4%s '49 8% 8% C’on Gas 5s '57 104% 105 Chesa Corp 5s '47 105% 104% Del & Huds 4s '43 78% 78 N Y Dock 4s ’sl 69 69 N Y Dock 5s '3B 51% 52% Erie 5s ’75 65% 65% Erie 5s '67 66 V* 65% Gen Cable sVis ’47 100 99% Grt Northern 7s ’36 99 Vi 99 % Grt Northern 4Vis '76 89% 90 Grt Northern 4%s ’77 99 89 Hud & Manhat Ref 5s ’57 ... 83% 84 111 Cent 4%s '66 49% 49Vi 111 Cent Jt 4Vis ’63 58 57 Interlake C & I 5s 'sl 76 75% Interntl Hy Elec 6s '44 42% 43 Interntl Tel & Tel 4%s '39 ... 75% 76% Interntl Tel & Tel 5s '55 .... 69 68% Interntl Tel & Tel 4%s '52 ... 65% 65 P Lorillard 7s '44 130 130 McKess & Rob 5%s 'SO 100% 101 Natl Dairy 5%s '4B 103% 103% Natl Steel 5s '56 104% 104', Nickel Plate 4%s ’7B 57 57% N Y Cent 5s 2013 71% 71% N Y Cent 4%s 2013 (old) 67% 65% Nor Amer Cos 5s '6l 100% 100% Nor Pac 3s 2047 72 71% Nor Pac 4%s 2047 81% 82 Nor Pac 6s 2047 96% 96% Nor States Pow 5s '4l 105% 106% Otis Steel 6s '4l 99'•, 99% Penn Rv 4%s ’B4 103 102% Penxl Ry 4V,s 'Bl 103 102% Penn Ry 4%s '7O 96% 96% Pac G & E 5s '42 104% 105% Portland Gen El 4%s '6O 72'i 72 Para Publix 5%s 'SO 97 96% Penn P & L 4%s 'Bl 105 105 Postal Tel & Cab 5s '53 30% 30% Rem Rand WW 5%s '47 104 103% Sou Pac 4%s '6B ✓ 70% 70% Sou Pac 4%S 'Bl 69% 69'% Sou Pac 4%s '69 70 70 Sou Pac 4s '49 77 76% Sou Rail 4s '56 39 38 Sou Rail 6s '56 49 % 49% Sou Rail 6Vis '56 53% 53 ’* Sharon Stl Hoop 5%s '4B ..... 99% 99'% Texas Pac 5s '77 91% 92 Union Pac 4s '47 112 111% United Drug 5s '53 90% 90 U S Rubber 5s '47 98 97Vi NY NH & Hart 6s '4B 32% 32 Warner Bros 6s '39 81 81 Western Mary 4s '52 95% 95% Youngstown S&T 5s ’7O 98% 98% Youngstown S&T os ‘7B 98% 98% Argentina A6s '57 95% 95% Argentine B 6s 'SB 95 95% Brazil 8s '4l 27% 27% Canadian Govt 4s '6O 101% 101% German 5%s '65 27 26 German 7s '43 34 33%

90 i I T j j j “I TIBO „* .WOODY’S'DAILY f ) ° BO ; -160^ § pvr j / WEEKLY ’•••' I s ’ I m 7o| ! 1 4 BUSINESS TREND ' 14Q g * i i .•’** 1/ ■ 50 J L MOODY’S INVESTORS SERVICE! ] ‘ | SEP.. OCT. NOV. OEC. - JAN, FEB- MAR. APR. MAY JUN. JUL. AUG. SEP lSi.4 1935

PRIMARY BONDS INSPIRE BUYING ON YIELD BASIS Neglected for Some Months, High Grades Encounter Demand After Dip. By Times Special NEW YORK. Oct. 7.—The fundamental investment strength of highgrade bonds is expected to reassert itself sufficiently to recapture dominant attention in the bond market, following a fairly long period during which investors have remained largely on the sidelines as spectators to the speculative performance which is now believed to have spent the major portion of its energy. To a conservative extent, investment funds have participated in that speculative interlude, and i% most quarters they are believed to have been the first to take refuge in flight, once prospects became regarded as less alluring. The chief obstacle thrown in the way of the speculative rise was a spreading realization that the market had been engaged for a long time in discounting expectations that had not yet taken material form. Speculative Issues Bought Some usually conservative investors went into the speculative brackets of the bond market for the sole purpose of taking profits on the way up in an effort to supplement the thin return available on high-grade issues. In the course of this procedure, high-grade bonds have eased back to a point that gives them considerably more attraction for portfolio purposes than was true a few months ago. Many bond houses look for a sharp pickup in investment buying in view of the changed situation both in the speculative field and in investment yield. Observers of the government bond market admit themselves puzzled by the failure of government support to put in an indisputable appearance. Attention currently has been focused on the new Treasury 2% s in the belief that first evidence of government support would manifest itself at that point. 2%s Brcan Par Mystification became complete when the 2!ts were permitted to break through par. in view of the fact that conversion of the called Liberty 4Us into that issue still is operative. Obviously, conversion is expected to have a setback unless the price of the 2'%s is maintained, and it is equally obvious that the Treasury would be most pleased to see considerably more conversion of the called bonds still outstanding. It is considered significant that the Treasury has not set a time limit on the conversion, the prospect now being that such conversion may be permitted up to the call date. Oct. 15. This still leaves time for a support movement designed to encourage a final spurt of exchanges by holders of the Liberty 4Us. although the delay is regarded as conducive to adverse psychology, increasing the likelihood that the Treasury will have to use a substantial amount of cash to complet the Oct. 15 redemption. On Commission Row Quotations below, subject to change are average wholesale prices being offered to buvers bv local commission dealers Fruit—Bananas. 5c a lb. Peaches. Michican Elbertas. bu. 51.75. Pears. Michigan Bartlets. bu.. 52.40: Michigan seckles. bu.. $1.50. Cantaloupes—Honey Dews. Colorado 6s 8s $1.50. Watermelons Indiana Round 15(f? 20c. Apples (new) Indiana Jonathans, bu.. $1.25671.35: Grimes Golden, bu . $1.35. Summer Rambos. eating, bus.. $1.15: Maiden Blush. $1.35: Wealthvs. bus.. sl. Lemons. 3605. $6. Grapefruit. Isle of Pine, 53.25. Limes. a carton. 12s. 20c Persian seedless per 100. S3. Vegetables—Beans, green, round stringless bu. $1.50; Kentucky Wonders $1.25. Beets, home grown, doz., 20c. Cabbage, home grown. 50-lb bag. 75c. Carrots home grown and Ohio, 30c: new bulk, half bu. 65c. Cauliflower. Colorado. 11s, 12s. crate $1.75. Celery Michigan, washed and trimmed, iumbo doz.. 60c: medium, doz., 45c: hearts, fiat. $1.25. Corn, home grown, doz.. 20c. Cucumbers home grown, bu.. SI.BO. Kale home grown, bu.. 40c. Lettuce. Iceberg. California. best. $4.00. home grown leaf. 15-lb. basket, 50c. Endive. Ohio, basket, 45c. Mangoes, home grown bu.. $1.25: small basket. 35c. Mint, doz., 50c. Mustard, home grown, bu.. 90c. Onions, home grown, yellow. 50-lb. bag. 90c: home white. 50-lb. bag, SI: Utah Spanish. 50lb. bag. 51.35. Parsley, home grown, doz.. 35c. Peas, telephone, hamper. $3.25. Potatoes Eastern. Jerseys, bu.. SI.OO. $1.50: Michigan Round white. 100-lb. bag. $1.25: Early Ohios. bu.. $1.35. Sweet potatoes—North Carolina. Jerseys, bu.. sl.lO. Radishes. Ohio buttons. 2-doz. baskets. 60c Rhubarb, outdoor, doz.. 30c. Sage. doz.. 45c. Spinach. New Zealand, bu., 65c. Squash, summer white. 30c. Turnips, new bu.. $1.25; bunch, doz.. 30c. Tomatoes, home grown. 10-lb. basket. 45c; bushel, $1.50. LOCAL CASH MARKET Citv grains elevators are paying sl.Ol for No. 2 soft wheat. Other grades on their merits. Cash corn No. 2 yellow 77 cents and oats 21 cents. FARM EXPERT SAILS By Times Special WASHINGTON. Oct. 7.—J. Clyde Marquis, of the Bureau of Agricultural Economics, left Italy last week to assist Dr. H. C. Taylor, the American delegate to the International Institute of Agriculture at Rome. Mr. Marquis is a native of Madison. Ind., and attended Purdue University.

COMMODITY AND TRADE TRENDS CHARTED

Mortgage Market Gains as Federal Aid on Four Fronts Begin to Decline

Home Owners Loan Corp. Has $1,500,000,000 More Credit Than It Needs. BY NED BROOKS Times Staff Writer WASHINGTON, Oct. 7.—The steady revival of the home mortgage market will leave the Home Owners Loan Corp. with about $1,500,000,000 more credit than it needs for the direct refinancing of persons whose homes are in jeopardy. Part of this balance will be used in strengthening private lending institutions to carry forward the j task that the HOLC took over when stagnated mortgage credit and losses in earning power produced an alarming wave of foreclosures. The government's objective is a complete withdrawal from direct mortgage lending. One move toward rehabilitating private institutions is the earmarking of $300,000,000 for purchase of shares in Federal and state-chart-ered building and loan associations, a program which parallels the aid extended to banks by the RFC. The HOLC is just starting to put this fund to work. Building, Loan Units Aided Another $100,000,000 forms the capitalization for the Federal Savings and Loan Insurance Corp., which safeguards the savings of investors up to SSOOO in affiliated building and loan associations. Chairman John H. Fahey estimates that by Dec. 31 HOLC will have lent $3,000,000,000 and that only 200 to 250 millions will be required thereafter. About twothirds of the state offices will have cleared their books by the year's end, and the remainer must by law cease making loans on next June 13. HOLC advances to date, including the payment of delinquent taxes and loans for modernization and repair of refinanced properties, total $2,751,501,000. The corporation holds liens on 910,979 urban properties. The investments in building and loan associations from the $300,000,:000 fund will be made through open market sales of HOLC bonds. Funds are available to members of the Home Loan Bank System or of the Insurance Corp. The Bank System now has 3380 members, representing about half of the nation's building and loan assets. The Insurance Corp., started more recently, has 975. Four major activities are being directed toward putting private institutions on a sounder footing, with emphasis on the encouragement of long-term amortized mortgages at interest rates which the average home owner can bear. One phase is the establishment of 935 Federal Savings and Loan Associations. To these the Treasury is authorized to subscribe for stock at the rate of $3 for each $1 subscribed locally. The Treasury’s stake to date is about $43,000,000. The HOLC is authorized to make similar subscriptions when the Treasury reaches its authorized limit of $100,000,000. Members Total 935 The 935 associations have assets of $409,020,000. and 207 more whose applications are pending have assets of $283,980,000. Federal associations must be members of the Insurance Corp., which has been another force in bringing new funds into the mortgage field. The insurance system now protects the savings of about 800.000 investors, and officials predict the number will reach 6.000,000. The Home Loan Bank system, nucleus of the mortgage program, provides an avenue for Federal aid similar to that of the Federal Reserve System. Net advances tw member institutions have risen nearly 20 per cent in the last four months, chiefly due to a reduction of interest rates to a minimum of 3 per cent on long-term advances. The system acts as a mortgage rediscounting agency. The HOLC has been a major factor in assisting home financing institutions to liquidate long-term paper and avail themselves of funds for new loans. Most of the bonds issued by HOLC in excnahge for mortgages went into these institutions, which converted them into cash on the open market. NET EARNINGS DECLINE By Times Special NEW YORK, Oct. 7.—The American Water Works and Electric Cos. reported net earnings equivalent to 99 cents a share on the common stock for the year ended Aug. 31, compared with $1.16 a share for the same 1934 period, the company reported today.

Shorts Have Been Killed, Too Lock of a supporting short interest mode the ienu much cosier for Bears Inst meek when the stock market suffered its worst heating in more than a near. This led one observer to rework, “Thei/’re killed the shorts like they did the pigs.”

PAGE 11

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PORKERS AGAIN MOVE UPWARD Market Largely 10 to 20 Cents Higher: Cattle, Veals Steady. A strong undertone continued in hog trading at the local stockyards today and prices were mostly 10 to 20 cents higher than Saturday. Trading was light in the underweight division with the majority of these classes around 15 cents higher. Extremely light receipts continued to support the advance. The total supply today was 3000. compared with 1000 on hand Saturday. Approximately 107 hogs remained unsold. The majority of livestock markets, included in the leading 11 in this district, reported steady prices with a few showing increases. Light receipts also were reported by the surrounding markets. The bulk of 160 to 275 pounds, cashed in at $11.15 to $11.25, while heavy butcher classes, ranging from 275 pounds and upward, brought SIO.BO to sll.lO. In the lightweight division, hogs weighing 130 to 160 pounds, sold at $10.25 to $10.75. Light lights, from 100 to 130 pounds, held at $9.50 to $lO. Packing sows ranged from $9.50 to $10.25. With today's supply consisting largely of cows and feeder steers, the cattle market held mostly stationary. Heifers and slaughter steers were scarce. Low quality was considered in all divisions. Bulk of slaughter steers, including rough southerns, plain natives and feeders. was valued to sell under $8.50. Only a few heifers sold above $7.50. Beef cows were unchanged, selling from $4.50 to $6. Most bulls brought $6 down. Receipts numbered 1000. With only a fair demand prevailing, veals again held stationary, with bulk of good and choice kinds selling from $lO to $10.50. Receipts were 400. Influenced by a liberal supply on hand, the lamb market turned generally 25 cents lower than last Friday's close. Bulk of better grade ewe and wether kinds, sold at $8.50 to $9.25. Bucks were discounted from 50 cents to sl. Most slaughter sheep were 50 cents higher, selling from $2 to $4. Receipts were 2000. Other Livestock ißy United Press) CHICAGO. Oct. 7.—Hogs—Receipts. 11 - 000. including 4000 directs; fairly active; mostly stoady with Friday’s average: better grade medium weight hogs stronger ton $11.15: bulk 180-240 lbs.. $10.854/'ll.10: 260-350 lbs. $10.354/11.05; most 140-160 lbs.. $lO4/ in. 75. best sows $lO. CattleReceipts. 21.000: calves. 2500: good and choice fed steers and yearlings st*ad-, early top weighty steers. $12.50: reveral loads. $11,504/12.25: lower grade killers, weak: stockers and feeders weak to 25 cents lower at $7.75 down: heifers generally stoady, but cows unevenly weak to 25 cents lower with killing quality p ; a in: mosr cutter and common beef cows; about 7009 western grassers in run: mostly stockers; bulls fully steady at $5.75 down and vealers 25 to 50 cen’s lower at $lO 50 down Sheep—Receipts, 21.000: fat lambs opening slow: bids and indications fullv sreadv with Saturday; strong to unevenly higher compared with Friday; other classes firm: good to choice native and range lambs eligible $94/9.25 and above: best held above $9.50: slaughter ewes $34/ 4.25; fe/ding lambs. $8,404/9; best held above $9 25 FT WAYNE. Oct. 7.—Hogs, 10c higher 225-250 lbs.. $11.10: 250-275 lbs, sllOs 275-300 lbs.. $10.95; 200-225 lbs $1!; 180200 lbs.. $10.95; 160-180 lbs . SlO 85 300350 lbs.. $10.70: 150-160 lbs.. $lO 75- 140150 lbs.. $10.50: 130-140 lbs.. $10: 120-130 lbs.. $9.75: 110-120 lbs.. $9.50: 100-110 lbs., $9.25: roughs. $9.50: stags, $7,75. Calves. $10.50. Lambs. $8.75. LAFAYETTE. Oct. 7 Market, steadv ! to 3Cc higher; 180-300 lbs.. $11: 300-325 I lbs.. $10.75: 160-180 lbs $10.90: 140-160 1 lbs.. $lO 2547 10.50: 120-140 lbs.. $9 754/ 10:1 109-120 lbs . $9,254/9 50: roughs. $lO down. Calves. $9.50 down. Lambs, $8.25 down. FARM INDEX HIGHER • Prices Placed at 107 Per tent of Pre-War Parity in September. By Times Special WASHINGTON. Oct 7. The farm price index of the Department of Agriculture stood at 107 per cent of pre-war parity on Sept. 15. compared with 106 in August, it was announced today. The index of prices paid by farmers for commodities bought stood at 125 on Sept 15, against 126 on Aug. 15. and 126 for Sept. 15 a year ago. The farm price index a year ago stood at 103.

Thomson & McKinnon MEMBERS NEW YORK Npw vork Stock Exchange ( HICAGO New York Curb Exchange TORONTO I New York Cotton Excha lge New York Coffee anil Sugar Exchange oaittii' nT’ V-_ New Orleans Cotton Exchange .SOUTH BEND • Chicago Stock Exchange FT. WAYNE I Chicago Board of Trade EVANSVILLE I Winnipeg Grain Exchange Indianapolis Office And other sdin K Excnange* 200-214 Circle Tower LI. 5501

John H. Fahev

COAL SHUTDOWN CAUSES TRADE INDEX TO FALL Business Week Figure Slumps 2.1 Points: Other Items improve. NEW YORK. Oct. 7—The index of business activity, compiled by the magazine Business Week, slumped to 64.9 per cent, contrasted with 67 per cent in the preceding week, it was disclosed today. In the corresponding week last year the figure was 57.4 per cent. The slump in the index covering the week ended Sept. 28 had nothing to do with prospective foreign wars, the magazine reported, but reflected the havoc of domestic in dustrial warfare, in soft coal fields. Though the struggle was brio! and preliminary peace treaties have already been signed, the disruption to normal productive activity was enough to give the index a temporary, but bad. jolt. Friers to Advance “Traffic shipments,” it was pointed out, “suffered likewise. As usual in wars the public pays, in this case by a boost in coal prices of about 15 cents a ton. "Despite frowning tenseness con- ' cerning events abroad, domestic ac- | tivity is at present dominated by ! general improvement in the internal economy. Gold seeking shelter on American shores, a tightening of industrial activity that smells of war. | and weak spells on stock exchanges I are still the only ripples on the I smooth stream of normal recovery. "Additional reports on September construction confirm the favorable I sample available last week. For the first three weeks, all major diviI sions run ahead, not only of last j year, but of last month as well—and by very respectable margins. I Residential contracts for example, ! are 17 per cent above the August daily average and 135 per cent | above a year ago; non-residential margins are up 5 per cent and 30 | per cent in the same order; public works and utilities, 18 per cent and 46 per cent; total, 13 per cent and 34 per cent. Industrial Building Up “Os particular interest is th* I surge of private industrial conI struction. Engineering News-Record reports in early October a $1,500,000 strip steel mill for Anderson. Ind.; a $1,500,000 refinery for Pan American in Texas; two plants for General Motors at Tarrytown, N. Y., i for $503,000; first two of five units in a $1,030,000 truck plant for InI ternational Harvester at Ft. Wayne, Ind. In addition. Granite City Steel awarded a $2,000,000 contract for two new mills and Eastman Kodak is erecting a $400,000 building to enlarge its Kodak Park plant. “Commercial loans have been plugging slowly upward in response jto usual seasonal demands. If the j pace quickens substantially, it wilt be the first evidence of the longanticipated credit expansion.” Local Livestock HOGS J Oct- Bulk. Top. Receipts 1. sl9 6047 10 75 $lO 80 7000 I 2. 10.604110.75 10.80 4000 | 3. 10.854/.11.00 11.05 3000 | 4. 11 104/11.15 11 20 2000 ! 5. 11.054/11.20 11 20 1000 |7. 11.154i11.25 11 30 3000 J Light Lights. (140-160i Good and choice $lO 504)11 00 Medium 9 | Lightweights. i ’l6O-180) Good and choice . 11.004/11 20 i Medium . 10 254/ 11.00 il6o-200i Good and choice . 11 154/H2> I Medium 10 754/11 15 | Medium weights ’2OO-220’ Good and choice . 11 2047 11 30 ’220-250’ Good and choice . 11 204/ 11 30 j Heavyweights. ’250-290’ Good and choice . 11 1047 11 25 ’290-350’ Good and choice 10 804/ ji io j Packing sows. I (275-350) Good 10 004/10 25 (350-425) Good . 9 854/10 15 1425-450) Good . 9 5047 10.00 (275-315) Medium LOO'S.* 9.75 Slaughter pigs. • 100-140) Good and choice 9 5047 10 50 Medium 8.50® 10.15 CATTLE —Receipts. 1000— 1(500-900) Choice $lO 50471150 : Good 8 754/ 11 00 Medium 7 0047) 9 00 ! Common 5 0047 700 i (900-1100/ Choice 9.254/11.50 I Good 9 2547 11 50 Medium 7 2547) 9 25 I Common 5 2547 725 j 11100-1300) Choice 11 5547 12 50 Good . . 3 504/11 75 Medium 7 254/ 950 (1300-1500) Choice . . 11 754712 75 Good 9 75U"H 75 Heifers 1 (500-750) Choice 9 254710 25 Good .3 0047 9.25 Common and medium . 4 004r* r, O') * (750-900) Good and choice ... 8 254/10 50 * Common and medium 4 254i 325 Cows J Good 5 2547 6 25 : Common and medium 4 254/* 5 25 j Low cutter and cutters 2.7547 4 25 1 Bulls good . 5 5047 625 j Cutter, com. and med bulls .. 4 00'S 5.50 VEALERS —Receipts, 400— I Good and choice $lO 004710 50 Medium .. 8 504/10 00 Cull and common 5 50'S 8 50 Calves I '250-5001 Good and choice . 7 004? 950 | Common and med>um 4 OOQ 7 00 —Feeder and Stocker Cattle— I ’SOO-800’ Good and choice 6 7547 875 I Common and medium 4 50% 6.75 ! ’BOO-1050’ Good and choice 7 004< 8 75 , Common and medium 4 5047 7 00 * Good 4 9 Common and medium 3 50 47 4 00 SHEEP AND LAMBS —Receipts. 2000— Lambs. 90 lbs down, good and choice $8 504/ 3 25 Medium .. 6 75® 850 Ewes (90-125’ Good and Choice .. 3 0047 400 All weights, common and medium 2 504/ 3 50 1120-1501 Good and choice 2 00'S 300

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