Indianapolis Times, Volume 47, Number 190, Indianapolis, Marion County, 18 October 1935 — Page 30

Trends Utility in Detroit Makes Partners of Consumers. BV VINCENT LYONS Ttmr* Financial Editor

ONE of the most progressive steps in the history of the public utility industry was taken yesterday when the Detroit City Gas Cos. acreed to a proposal whereby consumers are to share in the profits of the company. It means that the user of gas is to become a partner in the enterprise along with the stockholder. He wull have a call on profits after a certain point is reached, but is faced with no liability. Under the arrangement the utility is allowed earnings up to $3,850,000. The first $550,000 earned in excess of this base is to be divided between consumers and stockholders on a 50-50 basis. All earnings in excess of $4,400,000, however, are to be distributed in a ratio of 75 per cent to the consumers and 25 per cent to the stockholders. Asa result, consumers in a particularly favorable year stand to reap a greater share of the profits than the stockholders. Excess profits arc to go to consumers and stockholders in the form of annual cash dividends. Moreover, the proposal is not to await the introduction of natural gas next July but will be made retroactive to April 8. last. Therefore consumers might, receive their first profit-sharing dividend this year. a a a cttMIF! proposal, which undoubtI edly will be known as the “Detroit plan” just as somewhat similar arrangements in the past have been identified with the cities in which they were placed into rficct, hits anew note in the relationship of the utility with its consumers. It probably will raise considerable comment in public utility circles throughout the country. Tn the first place, it is the initial attempt of its kind to be made (oncerning gas, the oldest of the public utilities. In the second place it outdistances all the previous proposals by making outright cash rebates to all consumers. In the third place it skirts the valuation question by establishing a flat earnings base. The unique part of the “Detroit plan,” is best indicated by a knowledge of the principles of the plans that have preceded it. The “Washington plan,” adopted in 'vf.shington, D. C., is a system whereby valuation was agreed upon by the private utility and . .e regulatory agency. On the basis of this valuation the utility was permitted to cam a stipulated return. In the event of any return above 8 per cent the consumers were to get the benefit in the form of rate reductions. In order to make the plan effective it is, of course, necessary to make annual adjustments. ana IN Hartford, Conn., there is what is knowm as the “Hartford plan.” Tn this the element of use enters into the picture. A certain figure of consumption is established for each individual consumer. If in lh" same month oi the following year the consumer uses 25 per cent more electricity he receives the additional 25 per cent at a considerably lower rate than is charged for general service. Another plan, the identification of which escapes the writer, has been adopted in the South since the advent of the TVA. This arrangement, a modification of the “Hartford plan,” is also predicated on the idea of increased electricity at reduced rates. In addition to these three plans there have been occasions in the last few years when telephone companies returned excess tamings to its customers. Frank P. Fisher, consulting engineer for the City of Detroit, says oi the new plan that “this agreement is a form of relationship between the customer and the utility that has never before been effected anywhere." The Detroit City Gas Cos. undoubtedly will gain an important point by its acceptance of the profit-sharing plan. It is expected that the city will withdraw from the Nov. 5 ballot a proposal to establish and operate a municipal gas works. The move toward municipal ownership was started when the city ran up against a stone wall in its efforts to get re-

duced rates. On Commission Row Quotations below subject to chanse are avrraqr wholesale prices beinß olTeicd to buyers bv local commission dealers: FRUIT Cranberries, early blacks, 25-lb. box S3 25 rears--Michigan Bartletts, bushel $2 25: Avocados. Florida, box $2. Cantaloupes—Colorado Rockytords, standards 12< to 15s. 85c: Honey Dews. Colorado $1.75 Bananas—7 hands, a pound, ss. Grapes—Michigan 12-qt basket. 35c. Persimmons, Indiana. 12-pt. case, $1 Apples—lndiana Jonathans. $1.25@1,35; Sumpier Rambos. $1: Delicious. [email protected]; Wealthy*. $1 Grimes Golden (large). $1.35. Lemons—Sunkist, 3605, $6.75: 4325. $5.75. Grapefruit 64s to 70s, $3 75 Ltmes— Mexican a carton 12s. 20c: Persian seedless a hundred. $3 Vegetables—Beans, green, round strtngless bu . $2. Beets—Home grown, doz , 20c Cabbage—Home grown. 50-lb. bag. 75c Carrots—Home grown and Ohio, 30c; new bulk, half hu.. 65e Cauliflower—Colorado. 11s 12s. crate $1.90 Celery—Michigan, washed and trimmed. Jumbo do?.. 60c Jumbo, dor. 45c; hearts, flat. $1.25 Cucumbers —Hothouse. 2 dor box, $2 10. Kale -Home grown, bu.. 40c Lettuce— Iceberg California, best, $3.75: home grown leaf 15-lb basket. 50c Endive Ohio, basket. 45c. Mangoes—home grown, bu.. $1.25; small basket. 35c Mint—Dor.. 50c Mustard—Home grown, bu.. 50c. Onions —Indiana yellow. 50-lb. bag. 90c ; Indiana white, 50-lb. bag, st: Utah Spanl lsh. 50-lb. bag. $1 40. Parsley—Home grown dor . 35c. Peas—Telephone, hampers. $3.25' Potatoes—New Jersey Cobblers 100-lb bag $l5O Michigan Round White, 100-ib bag $1 25. Farly Oh os. bm, $1 35 Sweet po'tatoes -North Carolina: Jersevs, bus. $1 to Radishe,—Ohio, buttons. 2-doz. baskets. 60c Rhubarb—Outdoor, doz 30c Sage Dor 45c Spinach—New Zealand, bu 65c Squash Bu.. $1 Turnips—Nev bu., $1 25; bunch, dor . 30c Tomatoes—Home grown, 10-lb basket, tic: bushel. $2 25 Produce Markets The prices quoted below are paid for stock gathered <n the country while delivered in Indianapolis the pr-re will be a cent tngher: Heavy breed hens. 16c; Leghorn breed hens. i3c: springers, over 4% lbs. 15e; under 4% lbs. 16c; old cocks, 8c; Leghorn broilers. 1% lbs and up 12c; bareback broilers. 10c: ducks, full fcathi ered and fat. 4c; geese, full feathered and 1 at. Sc: guineas. 15c each. No. 1 strictly fresh egges. loss oS. 24c. Each full case must weigh 55 lbs. gross, a deduction of 10c a pound under 55 lbs. will be made. Butter, No. 1 30@31c: butterfat. No. 1. 23c; No 2 22c Quoted bv the Wadiey Cos. ROND DEPOSITS HEAVY By Timet Special NEW YORK. Oct. 18.—More than two-thirds of the 6 per cent notes of the New York, Chicago & St. Louis Railroad due Oct. 1 have been deposited under the plan for extending maturity three years, it was announced today.

♦ ♦ Abreast of The Times on Finance ♦ ♦

PAGE 30

BANKS GETTING MARGIN TRADE, BROKERS STATE Inequality of Regulation Is Held Cause of Shift in Business. ItV JOHN T. FLYNN Times Special Writer NEW YORK, Oct. 13.—New York Stock Exchange brokers complajn that margin business is going to the banks, because under the Federal Reserve Board regulations the same margin requirements are not put on banks as on brokers. The Reserve Board, under the law,

is directed to make rules regu--1 a tin g the amount of credit that may be extended and maintained o n registered securities. When such regulations have been made it is unlawful under Section 7C for brokers to make margin loans save in conform-

Flynn

ity with such rules. But under Section 7D it is unlawful for any per-son-individual. corporation or bank —to extend such credit save in conformity with the rules prescribed by the board. Has Wider Latitude These rules may be the same as in the case of brokers. But the board has a wider latitude in the case of persons, corporations and banks than in the case of brokers. The Reserve Board has prescribed margins which brokers may extend. But these same limitations have not been applied to the banks. In 1396, when Germany made its first move to regulate the stock and t ommodity exchanges, the attempt went on the rocks chiefly on this very omission. All margins were toi bidden to brokers. But traders had only to buy their shares for cash on the exchanges and borrow the money directly from the banks, instead of through brokers. Banks Monopolize Business In a short time a large part of the stock business of Berlin was centered in the two big brokers banks there. The banks, getting such an enormous number of buy and sell orders, were able to match off their buy and sell commisisons. It was then merely necessary to clear through the stock exchange the unmatched orders. The exchanges business was greatly reduced and the rules against margins were rendered trifling. How far this went may be seen from the ftict that in 1896 cash transactions of the two brokers’ banks amounted to 6.950,000 marks, while after the law passed and in effect a few years, they rose to 1,355,585.000 marks. It is said that the big banks are not engaged in this business; but that only a few smaller banks have entered the field here. But where there is such an opportunity we may be sure it will be used. (Copyright. 1935, NEA Service. Inc.)

U. S. AGAIN CURTAILS NEWSPRINT OUTPUT Increase of 27,770 Tons Reported by Canada for September. B<) Times Special NEW YORK, Oct. 18.—Newsprint production in the United States i again decreased during September, but Canadian output increased 27,j 720 tons, the Newsprint Service BuI reaa reported today. Domestic production was reported at 74.117 tons, a decrease of 2701 tons from the corresponding month last year. Canadian production was 223.802 tons, bringing the total for the nine months to 1,978,34, against 1.881.918 in 1934. Total production of mills in both countries during the month amounted to 295,308 tons, an increase of 25,019 over the previous year. Combined output for the first nine months this year totaled 2.659.897 tons, against 2,6041,882 in the like 1934 period. FIRE LOSSES DECLINE Damage in United States for September Reported at 516.641.882. Bit 'Times Special NEW YORK, Oct. 18.—Fire losses in the United States during Sep- ! tember continued at a low level | totaling only 516.641.882. according to an estimate today by the National Board of Fire Underwriters. The figure compares with losses of I $18,137,060 in August, a decrease of $1,496,178. An increase of $398,.012, j however, was shown over the corresponding month lasi year. RFC OFFERS BONDS Rids on 53.007.300 of Securities to Be Opened Oct. 29. B;i Times Special WASHINGTON. Oct. 18.—Another group of securities purchased from the Public Works Administration by the Reconstruction Finance Corp. will be offered publ.cly on Oct. 29, it was announced tooay. The total, agregatmg $5 007.300, comprises 35 issues of municipalities, counties and school districts, located in 10 sta' s. Chicago Grain Futures •By James E. Bennett) Prev. Wheat— High. Low. close, close. P pc 103'* l(ll>, 1 02'3 102'* May 102'3 I.oo’, 1. 0 1' 2 1.01 i, July 3 33 .91’, .91', .91-^ Corn— Dec. . . SO .58', .59 .59'* Mav .->9', .58 .59 .59’* July 60 59', .60 .60’* Oats— Dec 27’* 27’i J7l, *7l. Mav 29’, .28', 20 * 29 July 29 3 * 29 .29 '.23 Rye—- | -St's SO*, 50 3 * .50’, May S3’s 52', .52’, .52’, LOCAL CASH MARKET City grains elevators are paving 95c for No. 2 soft wheat. Other grades on their merits. Cash corn No. 2 yellow 79 cents and oats 21 cents.

Chicago Board of Trade Does Brisk Business in Indemnities

By Timet Special CHICAGO. Oct. 18.—An unexpectedly brisk trade developed in grain indemnities, or bids and offers, on the Chicago Board of Trade Wednesday when business of this character was resumed after an interruption of more than two years, it was said in grain circles today. Interest centered in the bids, which enjoyed an active demand because of the marked weakness prevailing in wheat at that time. Trading in grain indemnities was halted July 26, 1933. because of the sensational action of the grains following the collapse of the inflation market. On Monday the membership of the Board of Trade, which is headed by Peter B. Carey, voted to restore the business. Indianapolis brokerage houses qualified to handle the business report a good inquiry for the options. One of the leading firms sold 25 contracts on the first day alone. It was explained that no marked activity can be ex-

pected for the present as the two-year lapse has clouded traders’ thoughts on the functions of indemnities. A few years ago the turnover was fairly heavy.

New York Stocks

(By Thomson & McKinnon) 11:15 A. M. Prev. Oils— High. Low. N. Y. close. Amerada 63 68% 69 68% Atl Rfg 22% 22 % 22% 22% Barnsdall 9% 9% 9% 9% Consol Oil 8 8 8 8 Cont of Del .. 2! 20% 20’* 20% Houston (newi.. 3% 3 5 a 3% . I Ohio Oil 10 1 a 10', 10', 10% Pet Corp 9% 9' 2 9% 9% | Phillips Pet 29 7 r 29% 29 n . 29% | Plymouth Oil ... 10'a 10', 10', 10% Pure Oil 8% B', 8% 8% Shell Un 9% 9% 9' 2 9’, 2 Soc Vac IP, li 4 11IF, S O of Cal 33', 33 33 33'a S O of Ind 25% 25' a . 25% SOOf N J 4514 45 45', 45' , Texas Corp 21 s , 21', 21', 21 3 , Tidewater Assn. 8% 8% 8% 8% Un Oil of Cal .. 18 3 4 18 3 4 18% 19 Steels— Acme 70 70 70 66% Am Roll Mills... 26' 4 25% 25% 25 3 4 Beth Steel 37% 37% 37% 38 Byers AM ... 16' 4 16% ... 16*4 Col Fuel & Iron. 24% 24% . 2 3 4 Mid Steel 22% 22V 4 22% 22% Natl Steel 71 3 / 4 71% 71% 71% Otis Steel 14 7 a 14% 14% 15% Rep Iron & Steel 16% 16 16',* 16 Rep Ir & St pfd 79 79 79 77% U S Pipe & Fdy. 17% 17% 17% 17% U S Steel 44% 44% 44% 44% U S Steel pfd .. .108 i 108% 108% 108% Motors— Auburn 42 41% 42 42 Chrysler 80% 79% 80% 80% Gen Motors .... 484* 48% 48% 48% Graham Mot ... 2% 2% 2% 2% Hudson 15% 15 15% 15% Hupp 2% 2% 2% 2% Mack. Truck ... 24% 24 24% 24 Nash 16% 16 16 16 Packard 5% 5% 5% 5% Reo 37/* 3% 3% 3% Studebaker 5% 5% 5% 5% Yellow Truck ... 5% 5% 5% 5% Access— Bendix 23% 23 23% 23% Bohn Alum 48% 48 48% 49% Borg Warner ... 61% 61% 61% 61% Briggs 50% 50% 50% 50% Budd Mfg 7 7 7 7% Budd Wheel .... 9% 9 9% 9% Eaton Mfg 29 29 29 29% Elec Ant- Lite .. 34% 34% 34% 34% Elec Stor Bat, ... 48 48 48 47% Houdaille "B“ .. 23% 23 23% 23% Murray Body ... 18% 18% 18% 18% Stew Warner .. 17% 17 17% 17% Timken Roll .. 62% 61% 61% 62% Timken Det Axle 9% 9 9% 9% Mining— Alaska Jun 14 13 s /* 137'* 13% Am Metals 27 27 27 26% Am Smelt 52% 52% 52% 52% Anaconda 21% 21% 21% 21% Cal & Hecla 5% 5% 5% 5% Cerro De Pasco . 57% 57% 57% 57% Dome Mines ... 38% 38% 38% 38% Howe Sound ... 52% 52 52% 52 Ins Copper —#. 6% 6% 6% 6% Int Nickel 30% 30% 30% 30% Kennecott Cop .. 25% 2574 25% 25% Mclntyre Mine.. 36 36 36 35% Phelps Dodge..,, 24% 24% 24% 24% Vanadium 17 74 1774 1774 17% Amusements— Croslev Radio ... 15% 15% 157* 15% Fox Theat 16% 16% 16% 16% Loews Inc 47% 4774 4774 477* Radio Corp .... 77* 774 7% 7% Paramount 10% 10% 10% 10% RKO 5% 5 5 5% Warner Bros .... 7% 77* 7% 7% Tobaccos— Am Tob (A) 100% 100% 100% 101 Am Tob (B) 103 % 103 103' 102% Lie & Mvers (B) 11674 116 1167* U 6 Lorillard .. .. 2574 2574 2574 25V* Reynolds T (81.. 56% 55% 56% 56 Rails— Atchison 47 % 47 47% 4774 Atl Coast Lines . 22% 22% 22% 22% B & O 14% 14% 14% 147-2 Can Facific .... 9% 9% 9'4 87* Ch <fe Ohio 4% 44'* 44 74 44% CM&StP 1 1 1 1 Chi N W 2 2 2 2 Dela A- Hud 32% 32% 32% 32'% Del Lac & W... 14 14 14 14 Erie 9% 97* 9% 10 Erie pfd 13% 13% 137* 13% Grt North pfd... 25% 25 25% 2574 Lehigh Valley ... 8% 874 8% 8% M K & T 37* 3% 3% 3% M K ft T nfd .. 8% 874 8% 874 N Y Cent ’ 227* 21% 22% 21% N Y Now Haven 47 4% 4'/* 4% N Y Ont A, Wett 3% 3% 37* 4 Nor Pacfic . .. 16% 16% 16% 167= Penn R R 26% 26% 26% 26% Sou Pac 17% 17% 17% 17% Sou R R 8% 8% ... 8% Union Pac 93% 93% 93 1 % 93*2 West Mary 7% 7% 7% 774 Equipments— Am Steel Fdy ... 1674 16'4 1674 1677 Bald Loco . ... 2% 2% 2% 2% Gen Am Tk Car 4040 4040 Gen tElec 34% 34 34% 3474 Gen R R Sift ... 30% 30% 30% 32 Pullman Inc ... 31% 31% 3174 31% West Air Br ... 22% 22% 22% 22% Westingh Elec .. 8474 8274 84 837* I’tilites— Am & For Pwr.. 6 5% 6 67-< Am Pwr & Lit. 7'4 7% 7 1 4 7% AT&T. 141% 140% 140% 1417* Am Wat Wks ... 16% 16% 16% 16% I Col Gas & Elec 13 12% 13 13 1 Comm & Sou .. 17* 1% 1% 174 Consol Gas . 28 27% 28 28 Elec Pwr & Lit. 474 4% 4% 474 Interboro R T... 20 20 20 20% Int T & T 9% 9% 9% 97* Lou G & E (A) 20 19% 19% 20 Nat Pwr & Lit.. 9% 8% 8% 8% North Amer 20% 20% 207, 20% Pac GR E 27% 27% 27% 22% Pub Serv N J ... 40% 40’i 40’4 40% So Cal Edison . 22% 22% 22% 22% I Std Gas 3% 3% 3 7 4 3% i Stone & Webster 7'4 7% 77* 7% United Corp.... 5 4% 5 4% Un Gas Imp. 16% 16% 167* 16 Ur Pur & Lt (A) 2% 2% 2% 2% Western Union.. 58% 57% 58% 58% Rubbers— Goodrich 2% 8% 8% 5% Goodvear - 17% 17'* 17% 17% IU S Rubber 1374 1374 13% 137* i Miscellaneous—i Allis Chalmers... 3074 30 30 30 Amer Can 142 142 142 142% Am Mach & Fdy 28% 28% 28% 28% Anchor Cap 14% 14% 14% 14% Brklvn Man Tr.. 42% 42% 42% 42 s * Burroughs Add . 20% 20 20% 20% J I Case 84% 83 % 84% 83% i Conti Can 88% 88% 88% 89 I Caterpillar Tract 54% 54% 54% 54% Curtis Pub ... 18% 18% 18% 18% Curtis Pub pfd ... 10% 103% 103% 103% Deere &Cos .. 47% 47% 47% 46% Foster Wheeler.. 16-% 16 s , 16 s * 16% Gillette 17% 17% 17% 18% Glidden 36% 36% 36% 36% Inter Harv ... 57 57 57 57 ! Natl Cash Reg . 19 184? 18® 18% 1 Owens Bottle ...107 10% . 106 • Rem Rand 13% 13% 13% 14 Foods— Am Sugar 51% 51 51 51% Armour 4% 4% 4% 4% Armour So pfd 62% 62% 62% 62% Borden Prod 25% 25% 25 1 ', 25% Canada D G Ale 10% 10 10% 10 Cont Bak "A" .8 8 8 8 Corn Prod .. 63 62-% 62% 63% Crm of Wheat .. 37% 37% 37% 37% Cuban Am Sug 5% 5% 5% 5% Gen Baking • 12% 12% 12% 13' 4 Gen Foods 33% 33% 33% 33% Gold Dust 17% 17 17% 17 G W Sugar 28 27% 27% 28 Natl Biscuit ... 32 31% 31% 31% Natl D Prod ... 17% 17% 17% 17% Purity Bak 16% 16% 16% 16% Std Brands .... 14 14 14 14 Un Biscuit 22% 22% 22% 22% United Fruit ... 69% 69% 69% 69% Retail Stores— Assd Dry Goods . 16% 16% 16% 16% Best & Cos 54% 54% 54% 51 iirst Natl Stores 46% 46% 46% 46% Gimbel Bros 6% 6 s * 6 s * 6% Or Un Tea .... 3% 3% 3% 3% Allied Sts 7% 7% 7% 7% Jewel Tea ... 54 54 54 54% Kresge S S 26% 26% 26% 26% Kroger Groc .. 26% 26 26% 25% Macv R H ... 51% 51% 51% 52 McCrorv S: 12% 12% 12% 12% McLellan St ... 14 13% 13% 14% Marshall Field . 10% 10% 10% 10% May Dept St. . . 52% Mont Ward 32% 32% 32 s * 32% Natl Tea 9% 9% i% 9% Penney J C . 79 79 79 79% &.ars Roebuck .. 58 56% 57% 58% Woolworth 59% 59 59 59% Aviation— Aviation Corp .. 3% 3% 3% 3% Boeing Aircft . 16 15 s , 16 15% Curtiss Wright . 2% 2% 2% 2% Curtiss Wright A 8% 8% 8% 8% Douglas Air .... 32 31% 31% 31% Nor Am Av 4% 4% 4% 4% Spcery Corp ... 13% 12% 12 s . 12% United Air new . 20% 20% 20% 20%

INDIANAPOLIS, FRIDAY, OCTOBER 18, 1935

Chemicals— Air Reduction... 162 162 162 162 Allied Chem ...170% 170 170 172 Am Com Alcohol 30% 29% 30% 30% Col Carbon 87% 37% 87% 88% Com Solvents ... 18% 18% 18% 18% Du Pont 135 134 134 134% Freeport Tex 26 26 26 26% Liquid Carb ... 31'* 31% 31% 31% Math Alkali ... 31% 31% 31% 31'. Monsanto Chem 90 1 * 90 90 % 89% Natl Dis (new) 32% 31 s , 32 32% Schenley Din. .. 32 31% 31% 31% T-cx Dis (new) .. 32% 31% 32 32% Schenley Dist ... 49% 48% 48% 49 ! Tex Guif Sulph .32 31 % 31% 31% ! Union Carbide 71 70% 71 71% U S Ind Alco.. 46% 45% 46 45% Drugs— Bristol Myers .. 35% 35% 35% 35% Coty Inc 4% 4% 4% 4% Lambert 22% 21% 21% 21% Un Drug (new).. 10% 10% 10% 10% Zonite Prod .... 4% 4% 4% 4% Financial— Adams Exp .... 8 7% 7 7 /* 8 Allegheny Corp.. 1% 1% 1% i% Am Int Corp 8% 8% 8% 8% Lehman Corn .. 92% 92 92 92% Transamerica .. 8 7% 7% 8 Tr Conti C'orp.. 61* 6 61* 6% Building— Am Radiator .... 17 16% 16% 17% Gen Asphalt 17% 17% 17% 17% Holland Furnace 19 19 19 19% Int Cement ... 26% 26% 26% 27 Johns Manville . 80% 806 80% 80% Libby Owens Gls 42 40% 41% 40% Otis Elev 181* 18% 18% 18V* Household— Col Pal Peet 17% 17% 17% 17-% Congoluem %'% 39% 39 % 39% Kelvinator 13% 13% 13% 13% Proc & Gamble 51% 51% 51% 51% Servel Inc 11% 11'/* 11% 11 Simmons 8ed.... 151* 1514 1514 1514 Textiles— Amer Woolen... 9% 9% 9% 9% Belding Hem 13% 13% 13% 13% Celanese Corp.. 28% 28 28% 281* Collins Aikman.. 33% 33% 33% 34 Gotham Hose .. 7% 7'* 7% 7V* Indus Rayon .... 34 33% 34 34% Kayser Julius 24% 241* 24V* 24% Chicago Stocks (By Abbott, Proctor &Paine) 11:30 Prev. A. M. close. Borg Warner 61% 62% Bendix 2314 23'4 Butter 6 7 /* 6% Chicago Corp 3% 3% Cities Service 1% 1% Cord 4% 414 Grt Lakes Dredge 25 23% Libby 8% 8% Noblitt Sparks 28% 29% Quaker Oats 13514 135 Swift 19% 17% Swift Int 30% 30 New York Curb (By Abbott, Proctor & Paine) 12 (Noon) Prev. N. Y. close. Amer Cyanide (B) 27% 27% Art Metal 91* 9% Atlas Corp 11% 11% Can Indus Ale (A) 7% 8 Carrier Corp 9 8% Deere & Cos 4714 46 V* Distillers C’orp 27 26% El Bond and Share 12% 12% Fisk Rubber 4% 4% Ford of Can (A) 26% 25% Hiram Walker 27 26% Humble Oil 55% 55 % Imperial Oil Ltd 19% 19% Lake Shore Min 47 47'/* Long Island Lightning 414 4% Newmont Min 59 59% Sonotone 2Va 2% Nia Hud Pwr 8 8% Novadel Agene 32 32% Penn Road 214 2% Sonotone 2% 2% St of Ky 20% 20% Wright Hargraves Min 7% 714 N. Y. Bonds (Reprinted From Late Times Yesterday) DAILY BOND INDEX 20 20 20 60 Inds. Rails. Util. Bonds. Today 99. 77.7 101.0 89.5 Yesterday 89.9 77.6 101.1 89.5 Week ago 89.8 77.9 100.8 89.5 Month ago 89.3 80,3 101.2 90.4 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) U. S. GOVERNMENT BONDS (By Abbott, Proctor & Paine) Treasurys Prev. Close, close. 414 s 1927-52. 114.16 114.23 4s 1944-54 110.6 110.22 3%S 1946-56 108.16 108.20 3%s 1940-42 107.3 106.30 3%s 1943-47 105.18 106 3%s 1941-43 107.10 107.10 3 Vis 1943-45 104.28 104.31 3'4s 1941 107.22 107.27 3'is 1941-46 104.20 104.21 3%s 1946-49 103.16 103.17 3%s 1949-48. 102.11 102.18 2%s 1911-60 100 100.6 2%s 1911-47 100.21 100.23 Home Owners Loan Corp. 2%S 1949 99.22 99.20 3s 1952 100.22 100.27 Farm Farm Mortgage Corp. 3’*s 1964 102.14 102.14 .3s 1949 100.28 101 2%s 1947 101.8 101.12 3s 1947 89.27 99.29 Cnlisted Stocks (By Blyth & Cos.) NEW YORK BANK STOCKS Bid. Ask. Bankers 53% 55 Central Hanover B & T 104% 107 Chase 29% 31% Chemical National 45% 47 Guaranty ... 259% 264 Irving 13% 14% Manufacturers 29% 31% National City 27% 29V* Cont 111 (Chicago) 60% 63 First Natl of Boston 37% 39% FIRE INSURANCE Aetna Fire 54% 57% City of New York Ins (new).. 24% 26% Ffderal Ins 76% 78 Great American Ins 25% 27% Hanover Fire Ins 37% 39 Hartford Fire 75% 77% Home Insurance 30% 32% Ins Cos of N A 68 70% National Fire 71% 73 North River Insurance 25% 26% Phoenix Insurance 88 90 U S Fire 51 53 Westchester Fire 51 53 Money and Exchange INDIANAPOLIS STATEMENT Clearings $2,845,000 Debits 7,272,000 TREASURY STATEMENT. ■By United Press) WASHINGTON. Oct. 18.—Government expenses an dreceipts for the current fiscal vear to Dct. 16 as compared with a year ago: This Year. Last Year. Expenses $2.269.832 884.14 $1.904 919.738.24 Receipts . . 1.127.165.102,97 1.127.362.288.63 Deficit . .. 1.142.667.78117 777.557.449 61 Cash bah 1.647.081.022 35 1 968.615,196.73 TIKE SHIPMENTS DROr By Timet Special NEW YORK. Oct. 18.—Shipments of pneumatic casings in August amounted to 4.739.259 units, against 5.477,109 in July and 4.308,270 in August, 1934. the Rubber Manufacturers' Association estimated today.

MEDIUM GRADE | BONDS ADVANCE ON TRADE RISE Buyers Switching From Rail, Utility Liens Into Industrials. By Timet Special NEW YORK, Oct.. 18—The continued uptrend in retail business is serving as an inspiring incentive to enlarge positions in medium grade industrial bonds. This is disclosed by a marked speculative swing recently toward that section of the list from the rail and utility groups. The considerable shift to industrial issues also is partly accounted for, according to bond house gossip, by continued nervousness toward utility issues that are not sirictly high-grade and a growing belief that the rails have gone a long way toward discounting benefits. Rails Are Unpopular There also has been a deflection from the rail group because a few unhappy pictures are forging into the foreground. This has had the effect of disturbing speculative poise toward the rail§ as a whole. Somehow, traders lose their enthusiasm for any category, at least for the time being, when one or more members of that category act up unfavorably. The financial problems of the New Haven road have caused hesitation at least in the wide march of the carrier bonds. While general desertion is not being staged, the period has become one of nervously 1 marking time. i In the meantime the speculative i element has seized upon a fairly large group of industrial issues, on the theory that they have been been somew’hat neglected in the general movement of discounting expected business improvement. R-K-O Up Sharply Unofficial reports that the R-K-O reorganization is working along for the salvation of bondholders, combined with further reports that recent contracts with Warner Bros, may be expected to produce highly beneficial results, have put a high degree of life into R-K-O 6s of 1941. From a year’s low of 2612, the bonds have forged steadily ahead to set a high at 88%, although the last stage of rise was so rapid that about five points disappeared in subsequent profit-taking. Amusement issues as a whole are receiving the benefit marketwise of an enthusiastic psychology.

HL. 'in mm IL N jj|

Carev

PROGRAM RELEASED FOR I, B. A. MEETING More Than 700 Expected to Attend Convention. By Times Special CHICAGO, Oct. 18.—Speakers who will address the annual convention of the Investment Bankers Association at White Sulphur Springs. W. Va„ Oct. 20 to 30, were announced today by Ralph T. Crane, president of the association. More than 700 bankers from the United States and Canada are ex-

pected. Speakers include David M. Wood of Thomson, Wood & Hoffman, municipal bond attorneys, New York; Lewis P. Mansf i e 1 and. supervisor, bond department, Prudential Insurance Cos. of America; Philip M. Benton, finance director, Public Works Administration; Judge John J.

Hook

Bruns, general counsel, Securities and Exchange Commission; Eustace Seligman of Sullivan & Cromwell, New York attorneys; B. Howell Griswold Jr. of Alex Brown & Sons, Baltimore; Charles R. Hook, president American Rolling Mills Cos., Middletown, O.; and Dr. Benjamin M. Anderson Jr., economist, Chase National Bank, New York City. PULLEY FIRM EXPANDS 8000 Square Feet of Floor Space Added at Reeves Factory. By Times Special COLUMBUS, Ind., Oct. 13. Reeves Pulley Cos., manufacturers of variable speed control equipment, has completed a third addition to its office and factory space, it was announced today. Approximately 8000 square feet was added. The expasion program includes an area of 70x50 feet added to the main machine shop, about 2000 square feet to the facilities of the assembly department, and an additional office space of 2500 square feet for accommodation of the sales department.

New Business Books Available at Library The following new books are now available at the Business Branch of the Indianapolis Public Library: APARTMENT HOUSE OWNERSHIP AND MANAGEMENT: PURCHASING, LEASING AND MANAGING (by Grace Perego)—"An apartment house manager must be at one time, good business executive, socially pleasing, clever advertiser, accountant. law student, super-salesman and diplomat." MOVF, YOUR MERCHANDISE (by Kenneth M. Goode) —"Patently the problem is not over-production, but its Siamese twin sister, under consumption.” THE PROBLEMS OF THE FOREIGN EXCHANGE (bv L. L. B. Aneas) —"Not onlv the principles and mechanics of foreign exchange, but also the controversial questions a'islrg from the wide-spread collapse of the gold standard." PLEASURES OF PLANNING <bT I. M. 110-abin)—Opnoses economic planning and believes :n free competitive capitalism. PERSONAL LETTERS IN BUSINESS 'bv .1. M. Clapn I—Currem 1 —Currem usage with respect to certain, specially troublesome types of letters.

Trade Commission Acts to Prevent Corporations Stepping Out of Bounds

Jagsl V’,

Ewin L. Davis

PORKER PRIDES RISE 10 CENTS Cattle, Veals Again Steady; Lambs Unchanged at $9.50 Down. A strong undertone developed in hog trading at the Indianapolis Union Stockyards today, and prices were generally 10 cents higher. It was the first advance in more than a week. Receipts were estimated at only 3500. Holdovers today numbered 209. The bulk of 160 to 250 pounds, sold at $10.60 to SIO.BO, while 250 pounds and upward, brought $lO.lO to $10.55. Light classes, from 130 to 160 pounds, cashed in at $lO to $10.50. Packing sows held at $9.75. With the supply consisting largely of cows and low grade heifers, the cattle market was slow and draggy and prices mostly unchanged. Beef cows were salable from $4.25 to $5.50, while few brought $6. Bulls also sold at $6 down. Receipts were 600. Vealers held stationary, with- the bulk of good and choice kinds selling from $9.50 to $lO. Receipts were 400. Practically no change was registered in the lamb market. The bulk of better grade ewe and wether lambs continued to sell from $8.75 to $9.50. Bucks were discounted from 50 cents to sl, while slaughter sheep sold at $2 to $4. Receipts numbered 800. HOGS Oct. Bulk. Tod RereinU 11 $11,000)11.20 $11.25 4000 14. 10.80(5511.00 H.OO 5000 Ifi 1085 6000 16. 10.50010.70 10.75 4500 17. 10.50010.70 10.75 4000 18. [email protected] 10.85 3500 Light Lights. (140-160) Good and choice.. $10.25(510 75 Lightweights." 9 - 50fe1 ° 35 (160-180) Good and choice.. 10.55(510.85 Medium 10.00 (a 10 75 (180 : 200) Good and choice.. 10.70(510 80 .Medium [email protected] Medium weights. 1200-230) Good and choice.. 10.70(510.75 (220-250) Good and choice.. 10.60(310.70 Heavyweights. (250-290) Good and choice.. 10.405 10 60 (200-350) Good and choice.. 10.20(5 10.40 Packing sows. (275-350) Good <? 35® g 75 (350-475) Good JUS® 930 P°° and 9 00® 9.25 (275-315) Medium 8.50® 9.15 Slaughter pigs. (100-140) Good and choice.. 9.25(510.25 Medium [email protected] CATTLE —Receipts, 600— (500-900) Choice slo.oo®ll 2? Good [email protected] Medium 6.75® 8.75 Common 4.75® 6 75 (900-1100) Choice [email protected] G°oa 9.00® 11.25 Medium 7.00(5) 9.00 Common 5.00® 7.00 (1100-1300) Choice 11.50® 12.25 Good [email protected] Medium 7.00® 9.25 (13001500) Choice 11 50®12 25 Good [email protected] Heifers (500-750) Choice 9.00®10.00 Good 7.50® 9.00 Common and medium 4 00® 7 50 (750-900) Good and choice ... 8.00®10.25 Common and medium 4 00® 8.00 Cows Good 5 00® 5.75 Common and medium 400® 5.00 Low cutter and cutter 2.75® 4.00 Bulls, good 5.50® 6 00 Cutter, com. and med. bulls... 4 00® 5.50 VEALERS —Receipts, 400— Good and choice $8.75® 950 Medium 7.00® 8.75 Cull and common 4 50® 7.50 Calves (250-500) Good and choice.... 7.00® 9.50 Common and medium 4.00® 7.00 —Feeder and Stocker Cattle—-(soo-800) Good and choice ... 6.75® 8.75 Common and medium 4.50® 6.75 (800-1050) Good and choice .. 7.00® 8.71 ; Common and medium 4.50® 7.00 Good 4.00® 4.75 i Common and medium 3.50® 4.00 SHEEP AND LAMBS —Receipts. 800— Lambs. 90 lbs. down, good and choice $8.25® 9.00 Medium 6.50® 8.25 1 Ewes (90-125) Good and choice .. 3.00@ 4.00 All weights, common and medium 2.50® 3.50 (120-150) Good and choice .. 2.00® 3.00 SUIT TESTS LEGALITY OF INSPECTION FEES Attacks State Law on Regulation of Petroleum Products. Constitutionality of the Indiana act calling for inspection fees for; gasoline, benzine, naphtha and sim- j iliar products is attacked in a suit j on file in Superior Court today. Filed by the Stith Petroleum C 0.., 1935 Shelby-st. in behalf of Indiana ; gasoline distributors, the complaint asks state officials be enjoined from enforcing the act. The suit charges that “said act purports to be an inspection law, but does not provide any mode of inspection or prescribe any test for inspecting and testing.” SALES SHOW INCREASE By Timet Special SCHENECTADY. Oct. 13.—The General Electric Cos. sales in the first eight months amounted to $149,173,275. an increase of 23 per cent over the $121,735,123 figure for the corresponding period.

Wholesale Food Prices Dip Wholesale food prices declined iti the Oct. IS veek. The Dun S: Bradstrcct index lost 2 cryits to $2.7b, following an advance of 8 cents registered in the preceding v:cck. The index, however, is 15.1 per cent ahead of the corresponding 1935 week.

•Cracks Down' on Several Units and Associations in Campaign. By United Prrtt WASHINGTON, Oct. 18.—The Federal Trade Commission, the governments business policeman, has been “cracking down” on some of the nation's largest concerns since NRa was outlawed, a survey showed today. Latest concerns to be cited were the California Packing Corp., said to be the world’s largest packer, and three subsidiaries. The complaint alleged an attempt to restrain competition in interstate, coastwise and foreign trade as well as to create a monopoly in San Francisco Bay shipping terminal business. Since the Supreme Court held NRA invalid the Federal Trade Commission, headed by Ewin L. Davis, has issued complaints against the following major organizations: Other Organizations Cited National Electrical Manufacturers Association, which includes Anaconda Wire and Cable Cos., Genera! Electric Cos. and United States Rubber Products, Lie., the charge was unlawful combination and conspiracy to restrain competition. Gillette Safety Razor Cos., illegal coercive methods to force dealers to observe resale prices fix'd by the manufacturing company. American Safety Razor Corp., price discrimination. Cap Association of the United States, Inc., and the Uniform Cap Manufacturers Institute, Inc., which manufactures practically all the uniform caps in the United States, suppression of competition. International Association of Ice Cream Manufacturers, which comprises approximately 500 wholesale manufacuturers and distributors, including National Dairy Products Corp. and the Borden Cos., unlawful restraint of competition. Attracts Special Interest Special interest is attached to the commission’s activities because Secretary of Commerce Daniel C. Roper has said that expansion of the commission’s powers was one of the methods under consideration for a rebuilt NRA. Among the food products packed and shipped by the California Packing Corp. are those under the trade names of “Del Monte,” “Sunkist,” “Goldbar,” “Glass Jar,” “President” and “Luxury.” The corporation, the complaint charged, attempted to obtain business for its subsidiary, Encinal Terminals, by promising to buy materials such as wood, paper, containers, tin, steel and copper from large industrial concerns if they in return would divert their shipping business to the corpartion’s terminals. Respondents were given until Nov. 15 to show why the commission should not issue a cease and desist order against them. Other respondents beside California Packing Corp. and its terminal subsidiary included Alaska Packers Association and Pacific Industries, Ltd. RECOVERY UNDER WAY IN TEXTILE INDUSTRY Upswing Started Late in August, Textile Editor Says. By Times Special NEW YORK. Oct. 18.—The upswing in textile industry whi-.h started in the last part of Auguit and gained momentum in September is definitely under way, according to Douglas G. Woolf, editor of Textile World. “This is not the first time that the industry had tried to snap out of the depression,” Mr. V/oolf states. “It has made several attempts—but each time resembled a man trying to pull himself up by his boot-straps. While the great capital goods industries were prostrate, there wasn’t a chance. So. each time, textiles slumped back again. “But this time, the program is going to be different,” he adds. “The heavy industries, are on the move. Textiles have company in this current excursion upward. Asa matter of fact, this general improvement has been going on—partly under the surface—for six months or more. Wall Street knew it, at least.” GROCERY SALES CLIMB September Dollar Volume Up 4.5 Per Cent Over Year Ago. By United Prrst WASHINGTON. Oct. 18.—The Department of Commerce reported today that daily average sales by chain grocery stores for September showed an increase of 4.5 per cent in dollar volume, as compared with last year, and of 7.5 per cent over the same month in 1933. Total sales for the first nine months were 3.5 per cent above 1934. STATE TAKES OVER UNIT By Timet Special SAN FRANCISCO. Oct. 18.—The Insurance Commission here has! taken over .the Coast Surety Corp., j it was announced today. A hearing on the commission's petition for a liquidation order probably will be held Oct. 21.

Thomson & McKinnon MEMBERS NEW YORK rHiriff) New York Stock Exchange TARAYTr) NeW y ° rk C ° rb Ehan S lUKUINIU New York Cotton Exchange BOSTON II New York Coffee and S igar Exchange SOUTH BEND • *ew Orleans Cotton Exchange FT W A Y\ T F Chicago Stock Exchange rU AYCUTirr Chicago Board of Trade “ 7 ILLIt Winnipeg Grain Exchange /tldianapolis Office And other leading ExvhiDgea 200-214 Circle Tower LI. 5501

DOHERTY FREES CITIES SERVICE OF VARIED TIES All Contracts With Company and Its Units Voided; Posts Retained. By Timet Speeial NEW YORK. Oct. 18.—As a fust step in the simplification of the vast oil and utility empire of Henry L. Doherty, which involves some 150 operating companies covering most sections of the United States. Henry L. Doherty & Cos. has discontinued its fiscal relationship with Cities Service Cos. as of Oct. 1. it was an-

nounced today. The move was made because cf Mr. Doherty's personal connections, and to bring about simplification of the eo”porate structure of the interest involved in conformity with the spirit of the uti 1 i <K- holding company law, it was explained. While the Cities Service Cos. has been the central

pp 1 "

Doherty

holding company of the system, the active management of the many subsidiaries, including purchase of supplies and equipment, has been conducted by Henry L. Doherty &r. Cos. Henceforth, this company will confine itself to the personal affairs of Mr. Doherty, and Cities Service Cos. will become the activa manager of the properties. Mr. Doherty retains his 27 per i cent voting stock interest in Cities i Service and will continue as exccuI t.ive officer. Mr. Doherty is reputed | to have a personal fortune of around $30,000,000 and he personally owns ! the entire issue of 1.000.000 shares i of 5 per cent non-cumulative stock, | which insures his control of the $1,270,000,000 utility system. Henceforth each of the more than 50 companies comprising the Cities Service System will go its own way, each having its own bank account, buying its own materials and probably doing its own financing. Henry L. Doherty & Cos. was formed as a partnership in 1905. when Henry L. Doherty and Frank Frueauff became interested in public utilities. The Cities Service Cos. was formed in 1910. with Henry L. Doherty & Cos. as its financial sponsor. At the end of 1934 the Cities Service system owned 6500 oil wells, located primarily in the mid-con-tinent region, and power and light companies in 39 states and foreign countries. In the number of securities holders Cities Service ranks next to the American Telephone and Telegraph Cos. Cities Service has been widely criticised for its stockselling practices during the prosperity period preceding the depression. VISITORS AT CHICAGO FURNITURE MART GAIN Increase of 42.5 Per Cent Shown for September Over 1934. By Timet Special CHICAGO. Oct. 18.—The attendance of vtholesale furniture buyers at the Merchandise Mart during the first nine months this year increased approximately 42.5 per cent compared with the same period in 1934, T. J. Reed, general manager, announced today. Buyers visiting the furniture showrooms during the period totaled 21,483, against only 15,070 in the first three quarters of the previous year. Buyers representing retail stores totaled 1298, an increase of 31.6 per cent over the same 1934 month and 59 per cent over the September, 1933 registration. The September total,’ however, was 53 buyers short of the August figure which amounted to 1351. SLOAN, WEIR TO TALK General Motors and National Steel Heads to Address Parley. Bp Times Special NEW YORK. Oct. 18—Alfred P. Sloan Jr., president of the General Motors Corp., and E. T. Weir, chairman of National Steel Corp.| are scheduled to speak at the annual Congress of American Industry to be held here Dec. 4 and 5, it was announced today. Other speakers on the program include Dr. Virgil Jordan, president of the National Industrial Conference Board; Dr. Neil Carothcrs, head of the college of business administration, Lehigh University, and James A. Emery, general counsel for the National Association of Manufacturers.

Your Local Building & Loan Association Makes Modernization Loans and Loans on New Homes.

Commercial Banking Savings • Trusts American National Bank AT INDIANAPOLIS