Indianapolis Times, Volume 47, Number 192, Indianapolis, Marion County, 21 October 1935 — Page 8

T rends Interesting Aspects of Recent New Financing BY VINCENT LYONS Timr* financial Editor T AST week was an important ■*-* one in bond market circles. It marked the completion of the retirement of the $1,250,000,000 Fourth Liberty Loan 4% per cent bonds, the last of the wartime obligations of the government. It also was featured by the sals of large new bond issues by the Illinois Bell Telephone Cos. and the Anaconda Mining Cos. The Treasury's refunding program can be called a success. More than $998,000,000 of the Liberties was tendered by holders in exchange for lower interest rate issues. Thus, the Federal government had to dig into its cash box for but $252,000,000 to pay off those owners who declined to participate in the exchange offer. The Illinoi Bell Telephone Cos. offering of $45,000000 first and refunding mortgage 3Mi per cent bonds, series B, due in 1970. were gobbled up bv investors. Despite the fact that the bonds were 3% per cent obligations, the underwriting syndicate, which was headed by the new firm of Morgan, Stanley Sc Cos., priced the issue at, 102': per cent of par. On this basis the yield to the purchaser at the time of offering was approximately 3 4 per cent. a a tt SO great was the demand for the issue that for a time dealers were bidding 103%, or a premium of l% points over the initial offering quotation. Although unusual attention was concentrated on the Bell flotation because of the low coupon rate and the long maturity, the operation is significant in that it represents a new departure in advertising since the establishment of the Securities Sc Exchange Commission, The underwriters initiated the use of an outline of propertus information. Up to this time sellers of new issues had reduced all advertisements to bare announcements. The proceeds of the offering will be used to retire $48,726,200 of outstanding 5 per cent mortgage bonds which would have matured in 1956. Through the operation the company pares its interest charges l’i per cent annually. The success of the Ilinois Bell operation is expected to speed plans of the American Telephone <S$ Telegraph Cos. for refunding some of its high coupon issues into lower rate issues. tt a tt Anaconda copper mining . CO.'S sale of $55,000,000 15year 4'- per cent debentures, handled through Blyth Sc Cos. and 25 other houses, was taken up by investors within less than an hour after its formal appearance. Priced at 98 1 - the issue was offered on a yield basis of approximately 4.6 per cent. Proceeds are to go toward retirement of bank loans of the company and its subsidiaries. Wall Street had been expecting the Anaconda flotation for more than a year. Last week, however, seemed particulary propitious as the copper industry's position has been improved materially recently. Large buying, supposedly for war purposes, has had the dual effect of lilting the price and cutting sharply into stocks, which have been unwieldly for several years. The feature of the debentures is the establishment of a sinking fund whereby if is expected substantial retirements may be made prior to maturity. Beginning Aug. 15, 1936, the company agrees to pay into *he sinking fund the sum of $1.000,(\0 annually, plus 20 per cent of consolidated income for the preceding year, subject to maximum restrictions. FEAR INFLATION WITH RETURN OF CONGRESS Recent Market Stimulation Cited As Base For Forecast. By Times Special NEW YORK, Oct. 21.—The threat of further inflationary measures with the return of Congress in Jannary, coupled with the danger of further devaluation of the dollar inherent in Europe's troubled monetary situation, lias brought fear to investors, according to J. E. Molloy of Hornblower Sc Weeks. "The stimulation of the market in response to the recent speech of Charles R. Gay. president of the New York Stock Exchange, is a good indication of the seriousness of inflation fears," Mr. Molloy declared. “Monetary and fiscal developments over the last two years, such as dollar devaluation, bimetallism, and financing of the government deficit through bond issues, have laid the groundwork for a period of currency and credit inflation on a faster scale than at any time in our history." On C ommission Row Quotations below subject to change arc average wholesale prices being offered lo buyers by local commission dealers: FRUIT-Cranberries, early blacks. 25-!b. box $3 35. Pears Michigan Bartletts, bushel $2.25; Avocados. Florida, box $2.25. Cantaloupes—-California Honey Dews $2.5(1; CasabAS 52 25; Persians. $2-,,-2.25. Bananas 7 hands, a pound, ss. Grapes Michigan. j".qi basket. 35c. Persimmons. Indiana. 12-pt case $1 Apples Jonathans. $1.15 1 35. Summer Rambos. $1 Delicious $1.50', 1 1.65; Wealtliys, $1; Grimes Golden large. $135. i.emons - -Sunktst, 3605. $7 50 4325. $7. Grapefruit. 64s to 70s. $3 50. Limes—Mexican a rarton 12s, 20c. Persian seedless a hundred. $3 Vegetables—Beans, crpen. round strlncless bu.. $2.50. Beets—Home grown, do/.. 20c. Cabbage New York. 50-lb bag. 75c Carrots—Home grown and Ohio. 30c: new bu'k. half bu.. 65c Cauliflower—Colorado. 11s 12'. crate. $1 90 Celery--Michi-gan, washed and trimmed, jumbo dor . 60r: Jumbo, doc . 45c. hearts, flat. $1.25. Cucumbers Hothouse. 2 dor. box. $2 Kale Home grown, bu. 50c Lettuce Iceberg. California, best. $3.73: home grown leaf 15-lb. basket. 50c Endive— Ohio, basket. 45c Mangoes—home grown, bu.. $1 50: small basket. 40c. Mint—Do , 60c Mustard—Home grown, bu.. 50c. Onions—lndiana yellow, 50-lb bag. 90c: Indiana white, 50-!b. bag, $1: Utah Spanish. 50-lb. bag $! 40 Parsley—Home grown, dor . 35c. Peas Telephone, hampers. $3 r,, 375 Potatoes New Jersey Cobhlers. 100lb bap. ft 50: Michigan Round White 10flb bae $1 20. Early Ohios. bu $1 30; Idaho Russets, $1 90. Sweet potatoes—lndiana. Jersevs, bus $1 40 Radishes—Ohio, buttons. 2-doe baskets 60c. Sage—Dor 45c Spinach—New Zealand, bit . 65c' Squash Bu., sl. Turnips—New bu . $115; bunch dor. 30c Tomatoes—California, repacked. 10-ib. carton $1 25; Doz., 60c. ntriT* and vegetables CHICAGO Oct. 21.—Apples—Michigan bushel. Wealthies. 75c Carrots—lllinois b ;:hel. 25 ', 30c Swept potatoes-Tennes-see. bushel. 60'„ 70c. Beans louisiana bushel. $2 ~ 325 C abbage—6o-70-lb. crates' 806,65 c Peas California, bushel hampers 12 755, Tomatoes-California lugs. $1754,2. Spinach Illinois bushel. 25® 500 Lettuce--W. stern crates. 5 dor $2-,, 325 Cucumbers—Louisiana. bushel. SI 25 ; 2 Celery tyichlgan. crates. *ll 50. Pears— Michigan bushel. sl2s® 1.75. Onion ntarkft ,50-lb. sacks, Minnesota vcllowa^ijO'.85c western Valencias. si; Illinois üßßfcs GS&7OC, unclassified, 70c. / k

PAGE 8

TAX ESTIMATE OF ROOSEVELT DECLARED FAIR Criticism of Declining Revenue Is Shown as Premature. BY JOHN T. FLYNN Times Special Writer NEW YORK, Oct. 21. Some ! months ago President Roosevelt told | the nation it could look forward to an increase of $670 000,000 in tax collections in the coming year. This | forecast was made as part of a I statement that all was going well, I that tax collections were increasing, that expendi-

tures would decrease, and that no further tax legislation would be necessary. Now his enemies point out that in the three and a half month of the fiscal year already expired, tax collections have actually fallen off by a million dollars

Flynn

The implication is that if the rest ! of the year's yields the same fruit, i tax collections, instead of increasing, I will decline. The criticism is premature. The ! President's statement can be critj irised as being an attempt to be- ' guile people from the growing and inescapable necesity for more taxes. ! But that has nothing to do with ! the criticism of his prophecies. I These prophecies were based, uni doubtcdly, on several points. First, | the president assumed that with inI creasing trade excise and sales taxes (tobacco, liquor, etc.) woula increase. Second, he knew that income tax payments already due would show an increase of more than a hundred million over last year. Third, he assumed that tax payments under the new tax act which would become due next Morch and June would show very great increases. First of all, it is necesary to remember that the president was talking about the fiscal year which began July 1, 1935, and will end June 30, 1936. Now internal revenue taxes of the excise variety—the various sales and nuisance taxes—have shown an increase of about $59,000,000. This is fairly good, considering it covers the summer or dull season. If it keeps on at the same rate for the rest of the year the increase should be about $200,000,000. As to income taxes, it must be re- | membered that in this period in- ; come taxes will be paid under two j separate sets of returns. Income 1 tax payments last month and in ; December will be made under the I returns made last March, based on | 1934 earnings. Then in March, 1936, S which is part of this fiscal year, j new returns will be filed, based on i earnings of 1935. The President properly estimated : September and December returns ion the already filed figures. These have shown an increase over last year of $63 000,000. The December returns should do the same. If this materializes income taxes from these two payments will show an increase of $126,000,000 which with the excise tax returns will be $326,000,000. The President evidently banked on income tax payments in March and June of the next calendar year (but this fiscal year) showing a very great increase because of the inj creasing earnings of this year. And ; that is a fair expectation. They j would have to show a rise of about I $330,000,000 to make good his forej cast. The decrease to date is due to a | single item—the processing taxes. : But this is due entirely to the pending law suits about the AAA. The I taxes are merely held up. It will be necessary to wait the event of i these suits before crowing over tax ! reductions. All this, however, does not alter ! the fact that the President was t clearly wrong when he said these I modest tax increases would be suf- | ficient. iCopvrlght, 1935, NEA Service. Inc.) OWENS-ILLINOIS GLASS FIRM TO BUY LIBBEY Negotiations Completed. W. E. Levis, President, Announces. | By Times Special TOLEDO. Oct. 21.—William E. i Levis, president of Owens-Illinois Glass Cos., stated today that nego- ; tiations have been completed for | the purchase of the assets and business of the Libbey Glass Manufac- ! turing Cos. here. The agreement provides that the | Owens-Illinois will issue 47,200 common shares for the Libbey assets, which are acquired free and clear ! of all liabilities and indebtedness. The present authorized capitalij zation of Owens-Illinois consists of a single issue of 1.200,000 shares of I common stock of a par value of $25 a share, all of which is outstandj ing. CHICAGO Ft TI RES RANGE (By Abbott. Proctor & Painei Wheat— Prev. High. Low. Close, close. i Dec 1.01'., i,no% i.00% l 00% I May 1.00% .99% 1.00 I.oo’, I July 90 5s .89', .89% .90% | Corn— Dec 60 1 n .59 ,59 s * 59 May 59% .584* 50 .58% ! July 60 .59% .60 .59% I Oats— Dec 27's .27 .27', 27' 2 Mav 28% 28 s , .28-, .28% j July 28-4 .28H .28'; .28', Rye—- : Dec 50 49's 49% 40% I May 51', .50% .51’a .51'; LOCAL CASH MARKET City grain elevators are paying 93 cents | for No 2 soft wheat. Other grades on . their merits Cash corn No. 2 yellow 77 I cents and oats 21 cents. CURB SHORTS FEWER Bit Times Special NEW YORK, Oct. 21.—The short interest on the New York Curb Exchange as of Sept. 30 totaled 24,651 shares, against 27,635 on Aug. 31, it was reported today.

Abreast of The Times on Finance

New York Stocks

Bv Thomson it McKinnon' 11 15 a m. Prev. ; Oils— High Low. NY. close. Amerada 68', 68', 68', 69 | Atl Rte 22 % 22 22S 22', Barnsdall 9', 9'i 9% 9'r ; Consol Oil 8 1 , B'r B', 8% I Cont of Del ... 21 % 21' 21% 21 I Houston mew).. 4’, 4% 4% 4% : Mid Cont Pet 11 % 11% 11% 11% ! Ohio Oil 10% 10', 10% 10% Pc- C'orp ... 9 '2 9'2 9% S'; Phillips Pet 30% 30% 30% 30% Pivmouth Oil 10 10 10 —lO% Pure Oil ... 8% 8% 8% 8' 2 Roval Dutch... 42% 42% 42% 43% Seaboard Oil .. 30% 390 30 29% Sh“i! Un 9% 9', 9% 9% Sot Vac 11% 11% 11% 11% S O of Cal 33% 32 1 2 33% 33% S O of Ind 2525', 25% 25’, SOofN J 45', Tidev.ater Assn . 9', 9% 9% 8% Un Oil of Cal .. 15% 19% 19', 19 Steels— Am Roll Mills ... 27', 27 27 26% Beth Steel .... 39', 38% 38% 39', By err AM .17 16% 17 17% Coi Fuel it Iron 2% 2% 2% 2’2 Ludlum Steel .... 25% 25% 25', 25% Mid Steel 22% 22% 22% 21% Otis Steel .... 15% 15', J 5% 15% U S Pipe & Fdv.. 18 18 13 17% U S Steel ... 46% 46 46 46'% U s Steel pfd .110% 109% 110 no Warren Bros .. 3% 3% 3% 3% Young wn Sit T 26% 25% 25% 26 Motors— Chrysler 85% 84% 856 83 s , Gen Motors . . . . 5! 50", 51 50 Graham Mot .. . 2% 2% 2% 2% Hudson 16% 16'2 16% 16% Hupp 2% 2% 2% 2% Mack Truck .. . 25% 25% 25% 24% Nash 17 % 16% i7% 16% Packard 6% 6% 6% 6% Reo 4% 3% 4 % 3% Studebaker . 6% 6', 6% 6% Yellow Truck ... 6% 6 6 6 Motor Access— Bendix 24 23V, 24 23% Bohn Alum . 49% 45% 49', 49 Briggs 53% 53 53% 52 Buad Mfg .. . 7', 7 7% 6% Budri Wheel . . in 9% 9% 9% Eaton Mlg . ... 30', 29% 30 29% Elec Auto Lite . 36% 35% 35', 35% Houdaillc B”. 24% 24% 24% 24% Mullins Mfg .. . 15% 15 15 15 Murray Body ... 19% 19% 19% 191, Stew Warner ... 18% 17% 18% 17% Timken Roll 64 6.3% 64 63 Timken Det Axle 9% 9% 9% 9% Mining— Alaska Jun 14', 14', 14% 14% Am Metals .. . 26', 26 , 26% 26% Am Smelt .63 52% 52% 52% Anaconda . 21 20% 20% 21 Cerro Dp Pasco 53’i 58 58 58 Dome Mines ... 38% 38% 38% 38 Granby 12% 12% 12'- 12% Howe Sound ... 53 52% 53 52% r n f £° P , pe , r 6 ’ 5 61 a 6% 6% J” 1 Nickel 31% 30% 30% 30% Kennecott Cop.. 2% 24'/* 24% 25 Mclntyre iMne.. 36 35% 35% 35% Phelps Dodge .. 23% 23% 23% 24% ft Joe Lead .. 20% 20% 20% 29% U S Smelters... 9S 95 96 94', Vanadium 18% 18% 18% 18'% Amusements— Crosiey Radio. ... 15% 15% 15% 15% Fox Theat. 16% 16% 16% 16% e . w S In® 48% 48% 48% 43’, Radio Corp 8% 8% 8% 8% Paramount .... 10% 10% 10% 10% RK O 5% 5% 5% 5% Tobaccos— Am Sum Tob 24% 24% 24'- 24'% Am Tob (Bl .104 103% 104 103 Lift & Myers (Bl 115% 115% 115'% 116 Lonllard 25% 25'% 25% 25% Reynolds Tob 181 56% 56% 56% 56% Rails— Atchison 47% 47% 47% 47 S& O 14% 14% 14% 14% Can Pacific 9% 9% 9% 9% Ch & Ohio ..... 44% 44% 4434 44% C M Sc St P.... l 1 l 1 ghi N W 2% 2% 2% 2 Ene ■ t 10 10 10 9% Grt Northern pf 25% 25% 25% 25% I' l . Central 15V* 14% 15 14% Lehigh Valley .. 8% 8% 8% 8% mk & tT.:::: ‘k *k ‘k H 23', 22’, 23 22’ fi N Y New Haven 4 3% 4 3% Nor Pacific 16% 16% 16% 16% Penn R R 27% 27 27% 26% Sou Pac 18% 18% 18% 18' , SOU R R 93, 9% 9% 9% Union Pac 95% 95 95 94% Equipments— Am Brake Shoe .33% .33% 33% Am Car & Fdy . 21% 2i 21 21 Am Loco ... 16% 16% 16', 16' ■ Am Steel Fdy... 16", 16% 16', 16% Bald Loco . . 2', 2% 2% 2% Gen Am Tk Car 40% 39% 40'., 40 gen Elec 35', 34', 35% 35% Pullman Inc .... 32':, 32% 32% 32 West Air B . . 23% 22% 22', 22% Westingh Elec .. 83', 86% 88% 87% Utilities— Am it For Pwr ■ . 6% 6% 6% 41., Am Power & Lit 7% 7% 73, 71' AT&T 141', 141% 14% 141', Am Wat Wks ... 17% 17 17 17 Col Gas & Elec . 13% 13 1.3 13% Comm & Sou ... 2 1% 1% 2 Consol Gas .29% 28% 28% 28% Elec Pwr & Lit 5 4% 4% 4% Intro Hydro Elcc 33 33 Interboro RT .. 19% 19', 19% 20% Int TANARUS& T . 10% 9% 9% 10% Nat Pwr & Lit.. 9'* 9% 9'* 9% North Arner 21% 20% 20% 20% Pac G& E 27% 27'- 27% 27% Peoples Gas ... |37 37 37 36 Pub Serv N J ... 41'% 40% 41 40% So Cal Edison.. 26% 25% 26% 22% Std Gas 3% 3% 3% 3% United Corp 5 4% 4% 4% Un Gas Imp . 16% 16% 16% 16% Ut Pwr & Lt 'A’ 2% 2% 2% 2% Western Union.. 64% 63% 64% 62% Rubbers — Firestone 15 14% 15 14% Goodrich 9% 9% 9% 8% Goodyear 19% 18', 19% 18% U S Rubber . . 14% 13% 14% 14 U S Rubber pfd 37% 36% 37% 36% Miscellaneous— Allis Chalmers . 31% 30% 31 30% Am Can 145% 144', 145% 143% Am Mach & Fdy 29 28% 23% 28% Anchor Cap . 15% 14', 15% 14% Brklyn Man Tr . 43% 43% 43% 43% Burroughs Add . 21% 21% 21% 20% J I Case 94% 93 93Vi 93% Conti Can . 90% 90 90% 90 Caterpillar Tract 56% 55 56% 54% Curtis Pub .. 20 19% 19'% 19% Curtis Pub pfd .104 104 104 104 Dee -e &Cos . . 51% 50% 50% 50% Eastman Kodak 160% 159'- 160% 159 Gillette 17% 17% 17% 17% Glidden 38% 37', 38% 37% Int Bus Mach ..178 178 178 178% Inter Harv ... 59% 58% 59% 59% Natl Cash Reg.. 19% 19 19% 19 Owens Bottle 107% 107 107% 107 Ron Rand .. IV% 14% 14', 14 Worthington P.. 17', 17', 17% 17% Foods— Am Sugar 52 50% 52 51 Armour 5% s', s'i 5% Armour 6% pfd 68', 68 68 67% Beatrice Cream'v 16% 16% 16% 16% Borden Prod .... 26 25'. 25'- 25'Cal Packing .. 35% 35% 35% 35 Can Dry G Ale.. 11% 11% 11% 111/2 Coca Cola . ...256 256 256 256 C'ont. Bak (A).. 8% 8% 8% 8% Corn Prod .. 62', 62 62% 62% Crm 6f Wheat . 38 38 38 38 Cuban Am Sug . 6 s', 5% s', Gen Baking .... 12% 12’- 12% 12% Gen Foods 34% 34 34'* 3!% Gold Dust 17% 17 17% 17 G W Sugar . . . 28% 28% 28% 28% Int Salt 25% 25% 25% 25% Loose Wiles 38 38 38 37% Natl Biscuit . .. 32', 32 32 31', Natl D Prod . . . 18% 17% 17', 17% Purity Bak 17% 16% 16% 17% S Porto Rico Sug 23', 23% 23% 23%

Auto Deficl

BY HENRY J. KUEHLS Times Special Writer NEW YORK, Oct. 21.—The sales of automobiles for this year have been most encouraging and will more than likely register the largest year since 1929. It is estimated that production will reach 3.600.000 cars for 1935. and with a continuation of the present rate 1936 will see 4.300.000 cars produced. There exists since 1930 a large deficiency in automobile production, and to*the end of 1936 it will have reached a peak of 10.853,000 cars. This deficiency will be made up in the immediate future years, as this deficiency estimate is based on seven years as the average life of a car. Automobiles built in 1928 and 1929 are now in the scrappage stage. It is now possible that production over the future years will exceed 5.000,000 cars per year, and if only 1.500.000 cars are absorbed yearly cut of the 10,853.000-car deficiency it will require seven years to take up this slack. This tremendous backlog of replacement is now beginning to register in new-car sales and will show a larger increase in 1936 than over the present year. It is interesting to note that production from 1923 to 1929 averaged in excess of 4.000.000 a year, and that 1936 will see that level reached again. During that seven-year period no large deficiency existed, therefore the period ahead reflects a rather optimistic outlook for this industry. Many sections of the country have

INDIANAPOLIS, MONDAY, OCTOBER 21, 1935

Std Brands ... 16% 16% 16% 14 s , United Fruit. ... 69% 63% 68% 65 Ward Bak ‘B> 2 2 2 2 Wriglev 79 79 79 79 Retail Stores— Assd Drv Goods 17% 16', 16% 16% First Natl Stores 48% 48% 48% 48% Gr Un Tea. 3% 3% 3% 3% Kresge S S 27 26% 27 26', Kroger Groc .. 26% 26% 26% 26% Macv R H 54 53% 54 53 McCrorv St 13% 12% 12% 13 McLellan St .. 14% 12% 14% 14% Marshall Field .. 11'* 11% 11% 11 Mav Dept St .. 54 54 54 53% Mont Ward 33% 33 33 33% Natl Tea 9% 9% 9% 9% Penney J C 79% 79'* 79% 79 Safeway St .... 35 34% 35 35 Sears Roebuck . .59% 59 59% 58% Woolworth 59% 59's 59% 5% Aviation— Aviation Corp .. 3', 3% 3', 3% Boeing Aircft, .. 16 15', 15% 16 Curtiss Wright 32% 2% 3 Curtis Wrigllt ‘A’ 8% 8% 8% 8% Douglas Air ... 33% 32% 33% 3% i Nor Am Av .... 4% 4% 4% 4% Sperry Corp . . 12% 12% 12% 12% United aircft nw 21 20', 20% 21% Chemicals— Allied Chem ...170 170 170 170 9fc Air Reduction - 162 162 162 162 Am Com Alcohol 31% 31% 31% 30% Col Carbon 92 90% 92 89 Com Solvents .. 19 18% 18% 18% Du Pont ...136% 136 136% 135% Freeport Tex .. 25% 25 25 25% Liquid Carb .... 31% 31% 31% 31% Math Alkali .... 33 32@ 33 32% Monsanto Chem 93% 9.3 93% 92 Natl Dis inew) 33% 32% 32% 32% Schenlev Dist .51% 50', 51% 50% Tex Gulf Sulph 31% 31% 31% 31% Union Carbide . . 69 67% 69 71% U S Indus Alcoh 48% 47', 47', 48 Drugs— Bristol Mvers .. 33% 38% 38% 38 Coty Inc 5 4% 5 5 Lambert 22% 22’* 22% 22'V Sterling Prod . 64 63% 64 63% Un Drug mew;. 10% 10% 10% 10% Zonite Prod .... 5% 5 5% 4% Financial — Adams Exp .... 8% 8% 8% 8% Allegheny Corp . 1% 1% 1% i% Am Int Corp.... 8% 8% 8% 8% Transamerica ... 8 8 8 8 Building— Am Radiator.... 17% 17% 17% 17% Gen Asphalt 18 17% 17% 17% Holland Furnace 19% 19', 19', 19% Int Cement .. 27% 27 27'* 26% Johns Manville.. 86 84% 86 84% U S Gypsum.... 32 82 82 81 Household— Col Pal Peet 17', 17% 17% 17% C’ongoleum 40 39% 40 39% Kelvinator 13% 13V, 13% 13% Mohawk Carpet.. 21 20% 21 20'% Proc & Gamble.. 52 51% 52 52 Servel Inc 11 11 n io% Simmons 8ed.... 16V* 15% 15% 15% Textiles— Amer Woolen ... 9% 9% 9% 9% Celanese Corp.. 30% 29% 30% 29% Collins Aikman.. 38% 37% 33', 36' S Gotham Hose 8% 8% 3% 8% Indus Rayon 35% 34% 35% 35 Kayser Julius 25 25% 25% 25 Real Silk. 9% 9% 9% 9% Chicago Stocks (By Abbott, Proctor & Paine) 11:30 Prev. , A. M. close. Allied Prod 34 32% Asbestos 4% 4% Bendix 24 24% Bastian B 4% 5 Butler Bros 7 7 Chi Corp 3'% 3% Cord 4% 4% Elec Hsld 18% 18% Gt Lks Dr 29'/, 29'% Iron Fire 23% 23'/, Libby 91/- 9% Marsh Fid 11% 10% Noblitt 30% 29% Swift 20 20 Gen Hsld 4% 4 1 /., Zenith 8 V* 8% New York Curb (By Abbott, Proctor & Paine) (Nooni 12 Prev. N. Y. close. Allied Mills 16% 17 Alum Cos of Am 80 79% Am Cyanide "B" 27 27% Am Superpower '.... 2 2 Art Metal 9% 9% Atals Corp 11% 11% Axton Fisher Tob '.... 53% 52% Carrier Corp 9% 9 Distillers Corp 27% 27% El Bond & Share 12% 12V, Fisk Rubber '. 5% 5 Ford of Can “A” 26% 26V4 Ford of Eurone 8% 8% Gulf Oil of Pa 63% 62 Hiram Walker 29 27% Humble Oil .....' 55'4 5% Imperial Oil Ltd 20% 20 Lone Star Gas 9% 9% Natl Bellas Hess 1% 1% Newmont Min .'. 58% 58% Nia Hud Pwr 7', 8 Novadel Agene 33 32% Pan Am Airways 40% Penn Road ‘ 2% 2% Sonotone 3 2'/, Wright Hargraves Min 7'* 7% Unlisted Stocks (By Blyth & Cos.) NEW YORK BANK STOCKS Bid. Ask. Bankers 54% 5618 Central Hanover B& T 107 Vi 109% Chase 30% 30', Chemical National 45', 47(4 Guaranty 266% 271 Irving 13% 15Vi Manufacturers 30% 32'4 National Citv 28% 30 1 /, Cont 111 (Chicago) 61% 64 First Natl of Boston 39'/, 41 FIRE INSURANCE Aetna Fire 55'% 57V4 City of New York Ins (new)... 25 27 Federal Ins 76% 80 Great American Ins 26 27% Hanover Fire Ins 37'4 39 Hartford Fire 76V, 78 Home Insurance 31% 33% Ins Cos of N A 63Vi 70% National Fire 71 72% North River Insurance 25% 27 Phoenix Insurance 89 91 U S Fire 51% 53 % Westchester Fire 33% 35% Money and Exchange TREASURY STATEMENT IBy United Press) WASHINGTON. Oct. 21.—Government expenses and rfeeipts for the current fiscal year to Oft. i8 as compared with a year ago: This Year Last Year Expenses .$2,575,509,603.88 $1,984,012,209.99 Receipts . 1.: 48.116.950.58 1.142,466.270.74 Deficit .. 1.*17,392.653.30 841,545.039.25 Cash Bal. 1,556,993.853.41 1,913.493,554.08 INDIANA MAN NAMED Jonas Waffle, Terre Haute, has been named to direct and supervise organization of a district board for Indiana under the Guffey-Snyder Coal Control Act. District Boards will be organized in each of the 23 producing districts defined in the act.

ncy Pro vides Huge Backlog for Motor Industry

r T T | 1T.000.000 Automobile Production frooQfOoo '/2s 5,000,000 j \ J? Estimated \ /% 3 ' 000,00 ° — Mmlt —fe2fS n °"J?.ooopoo f ? Year LIFE<> r CAR INCLUDING 1936 , i 11 iPfiyiw □ 1933 U 25 is tl 28 29 1930 31 32 33 35 1936 37 38 39 1940

not as yet shared in the replacement of new r cars to the extent of those sections that benefited from government money. A real increase in business, as is now in progress, will more than likely register in increased sales of new cars in 1936.

U. S. TO CURB USE OF CREDIT IN STOCK MART Reserve Board Expected to Issue Regulations to Member Banks. (Copyright, 1935. bv United Press) WASHINGTON, Oct. 21.—Admin- ! istration officials virtually com- ! pleted plans today to curb the use i of bank credit in the financing of a possible stock market boom j through loan restrictions to be placed on banks. Authority to dictate security loan requirements of Federal Reserve | member banks was given the Fed--1 eral Reserve Board more than a i year ago but it was not until re- | cently that conditions developed j that made it necessary to set up ! “safeguards” in the form of rej strictions. As a result the Reserve Board is expected to issue within a few weeks regulations governing extension of credit on securities by member banks similar to margin I rules governing loans to customers by brokers. These will seek to prevent sucking of depositors’ money into any possible stock market boom. Lending $2,924,000,000 At present member banks are lending $2,924,000,000 on securities. The loans are not now subject to Federal regulation. Brokers, however. are lending $818,000,000 on securities that are subject to margin requirements of the Federal Reserve Board. The maximum that brokers may now lend their customers is 55 per cent of the market value of the stock, or 100 per cent of the lowest price at which it has sold in the past three years but in no case more than 75 per cent of the market value. It was learned that the banks, which heretofore have set their own requirements, would be forced under the new program to conform to rules similar to those governing brokers. Several reasons were believed responsible for the decision to bring bank loans under control. First, officials have been cognizant of official discussion of a possible stock market boom, and second, brokers have been complaining that many of their customers were obtaining bank funds with which to speculate. Gay’s Remarks Recalled Remarks by Charles R. Gay, president of the New York Stock Exchange, that Wall Street is “concerned” with inflation and a possible unrestrained stock market boom, are believed to have prompted Federal authorities to lay the groundwork of control before any boom starts. I “The position today,” Mr. Gay said, “is entirely sound, from the standpoint of credit directly employed in the security markets. It should be kept so. lam not an alarmist, but we should not close our eyes to the inflammability of the material we are dealing with and to the fact that inflation, if it should once get started, might sweep through the markets as a fire sweeps through a city of wooden houses.” Authorities differ as to whether the Federal government has power to choke off a boom should it occur. Some officials are daubtful whether it could be controlled without preliminary “safeguards.” 11 BUSINESS LEADERS SELECTED BY WRITER Groups Which Have Made Success in Their Fields Listed. A list of “industrial leaders who have made outstanding successes in their respective lines, has just been compiled by Eugene Whitmore, nationally known business writer, in an article, “Men Who Made the i Grade,” in the current issue of American Business and System, of which he is editor. The men on Mr. Whitmore’s list are: William O'Neil, president of General Tire and Rubber Cos.; Alvan Macauley, president, Packard Motor Car Corp.; Walter Chrysler, president, Chrysler Corp.; Vincent Bendix, president, Bendix Corp.; Tom Girdler. president, Republic Steel Corp.; T. E. Wilson, president. Wilson & Cos.; John E. Otterson. president. Paramount Pictures, Inc.; O. | C. Huffman, president, Continental Can Cos.; L. O. Head, president, i Railway Express Agency; W. W. ; Head, president. General American , Life Insurance Cos., and Earl C. Sams, president, J. C. Penney Cos.

Automobile production has now established a definite trend back to j the level of pre-depression years, after reaching a low point of 1,500,000 cars in 1932. This large increase in production will add greatly,

Europe Pouring Millions Into American Securities, Reserve Board Discloses Other Millions Deposited With Banks for Safekeeping; Foreign Balances Rise $162,000,000 in Year. By United Press WASHINGTON, Oct. 21.—Foreigners are pouring millions of dollars into American security markets for investment in United States enterprises, the Federal Reserve Board reported today in its monthly bulletin. Although the board made no estimate of the extent of foreign purchases, it said there had been a “large movement" of European funds into the New York market.

Other millions of dollars of foreign capital, it said, have found their way into American banks where foreign balances have risen to $295,000,000 from $133,000,000 a year ago. The flow of more than $350,000,000 in gold into the United States over the last six weeks reflected the movement of capital out of Europe. Most of the transfers were made through the medium of gold shipments which have lifted stocks of | the yellow metal in this country to a record of $9,585,081,599. Cuts Italy’s Resources j This drain of gold, the board reported. has indirectly reduced Italy's | financial resources and made it difficult for her to find means of buying supplies needed in the Ethiopian conflict. During July and August, the board, said, more than $100,000,000 in gold was drawn cut of Italy, reducing the reserves against- her money to 29 per cent from 41 per cent in July. The reserves of the Bank of Italy were set at 4.800,000.000 lire ($384,000,000), compared with 12.500,000,000 lire ($1,000,000,000) in April, 1928. 0 “The continual decline in gold reserves of the Bank of Italy,” the bulletin said, “is attributable less to capital transactions, which are now subject to government control, than to the country’s adverse balance of merchandise trade. Reserves Off Since 1928 “The Bank of Italy has been losing reserves since April, 1928. Although gold reserves increased until the beginning of 1934. the increase was more than offset by the exhaustion of the bank's reserves in foreign exchange. During 1934, with foreign exchange reserves no longer available, the bank parted with substantial amounts of gold, and by the end of the year its reserves were down practically to the legal minimum of 40 per cent.” The United States sought to curb the influx of gold with heavy silver purchases in the world markets. American gold was used to purchase foreign silver but the transactionfe were not large enough to discourage the heavy inflow. Italy Loses Gold By United Press ROME, Oct. 21.—Italy’s gold reserve as of Oet. 10 was $4,025,300,000 lire, a statement of the Bank of Italy showed today. This compares with 4,251,400.000 lire as of Sept. 30 and 5,257.634,000 July 31. The statement showed also the following: Balances abroad, 412,640,000; notes in circulation. 15,425,000.000; sight liabilities, 1,026,500 000: ratio of gold stock to note circulation, 24.15 (as compared to 27 Sept. 30 and 38.66 July 31), and ratio of reserve to note circulation and sight liabilities, 28.43 (as compared to 29.02 Sept. 30 and 37.9 July 31). a u toTre n and 'moves' TO HIGHER BRACKETS Buyers Indicate Desire for More Luxurious Cars, By Times Special NEW YORK, Oct. 21.—Indications are that many automobile buyers who were forced into the lowest price range in recent depression years will be inclined to pay more in return for somewhat larger, more luxurious products than can be offered in the SSOO or S6OO retail bracket, the Standard Statistics Cos. said today. This year is the first since 1931 in which the proportion of automobile sales accounted for by Ford, Chevrolet and Plymouth decreased. The shift of consumer preference is slightly up the scale to the group in which Dodge. Pontiac and Oldsmobile are the fastest sellers. The New York automobile show opens Nov. 2 and all leading passenger car markers are stepping up production so that dealers may be adequately sampled. The trade as a whole probably will be in volume production again by the end of this month, which will doubtless show three times the September output of cars and trucks.

to increased business throughout the country, inasmuch as many commodities are represented in the construction of these vehicles. An increase in production of cars would do more to stimulate general business than any othsr industry.

Production Higher Lgg production is increasing. There arc wore hens and pullets of laying age in farm flocks non' than at this time a year ago , and they arc laying more eggs, reports the Bureau of Agricultural Economics.

PORKERS AGAIN DROP SHARPLY Prices Dip 25 to 40 Cents Under Last Friday's Average. Hogs opened the week’s trade with a drop of 25 to 40 cents under Friday's average at the Indianapolis Union Stockyards this morning. Bulk of sales averaged around $10.25 to $10.50, with a top price of $10.55. Weights of 235 to 300 pounds sold for $lO to $10.20. extra heavies down to $9.70. For 130 to 160 pounds the range was $9.75 to $10.25; 100 to 130 pounds, $9 to $9.50. Packing srnvs brought 8.50 to $9.25. a few soiling up to $9.50. Receipts were 4500. holdovers 65. In the cattle market slaughter classes were scarce with the quality unusually low. The marker was slow with a lower trend evident in most grades. Most steers and heifers were priced to sell under $8 Cows brought $4.25 to $5.50; low cutters and cutters, $3 to $4. Bulls were dormant at $5.75. Vealers were 50 cents higher, good and choice selling at $lO to $10.50. Receipts were: Cattle, 600; calves, 700. Lambs were steady with Friday’s average. Bulk of better grade ewes and wethers sold for $8.55 to $9.50. Bucks were discounted 50c to sl. Slaughter classes sold for $3 to $4. Receipts were 1000. HOGS Oct. Bulk Top. Receipts. 15 $10.60® 10.00 $10.85 6000 16. 10.50® 10.70 10.75 4500 17. 10.50® 10.70 10.75 4000 18 10.60® 10.80 10 85 3500 19. 10.50® 10.80 10.80 2000 21. 10.25fe 10.50 10.55 4500 Light Lights. 1 140-160) Good and choice.. 10.00® 10.40 Medium 9.250:10.00 Lightweights. (160-180) Good and choice.. 10.40®in.55 Medium 9.95® 10.40 <IBO-200) Good and choice.. 10.40® 10.50 Medium • 9.90®10.40 Medium Weights. 200-2201 Good and choice.. 10.35® 10 45 <220-250) Good and choice.. 10.20® 10.35 Heavyweights. (250-2901 Good and choice . 10.00® 10.20 <250-3501 Good and choice.. 9.70® 10.00 Packing sows. <275-3501 Good 9 10®9.50 <350-4751 Good 9 00® 9.25 1425-450) Good 8.85®. 9.10 275-315) Medium 8.50*9.00 Slaughter pigs. (100-140) Good and choice.. 9.00® 10.00 Medium 8.25*9.75 CATTLE Receipts, 600— (500-900) Choice slo.oo® 11.25 Good 8.50® 10.75 Medium 6.75® 8-75 Common 4.75®' 6.75 (900-1100) Choice 11.00@>12.00 Good 9.00® 11.25 Medium 7.00® 9.00 Common 5.00® 7.00 (1100-1300) Choice 11.50® 12.25 Good 9.25® 11.50 Medium 7.00® 9.25 (1300-1500) Choice 11.50® 12 25 Good 9.50&11.50 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 ... B.oo® 10.25 Common and medium 4.00@ 8 00 Cows Good 5.00® 5.75 Common and medium 4,00® 5.00 Low cutter and cutter 2.75® 4.C0 Bulls, good 5.50® 6,00 Cutter, com. and med. bulls... 4.00@ 5.50 VEALERS —Receipts, 700— Good and choice $lO 00® 10 50 Medium B.oo® 10.00 Cull and common 5.00® 8.00 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 . ... 4.59® 6.75 <BOO-1050 Good and choice... 7.00® 8.75 Common and medium 4.50® 7.00 Good 4 00® 4 75 Common and medium ........ 3.50® 4,00 SHEEP AND LAMBS —Receipts. 1000— Lambs. 90 ibs. down, good and choice $8.25® 9 00 Medium 6.50® 8 25 Ewes (90-125) Good and choice ... 3.00® 4 00 All weights, common and medium 2 50® 3.50 (120-150i Good and choice .. 2 00% 3.00 Other Livestock (By United Press) FT. WAYNE. Oct. 21.—Hogs—Market 20c lower: 160-180 lbs.. 510 35: 180-200 Ibs $10.25: 200-225 lbs., $10,15: 225-250 lbs $10.05; 250-275 lbs.. $9.85: 275-300 lbs’ $9.70: 300-350 lbs. *9 50: 150-160 lb? $10.20: 140-150 lbs.. $9.95: 130-140 lbs ' S9JO; 120-130 lbs.. $9.45: 110-120 Ibs $9.20 : 100-110 lb'., $8.05: roughs, $9; stags. $7 50 Calves, $lO Lambs. $9. LAFAYETTE. Oct. 21.—Market 25® 30c lower; 160-200 lbs.. $10.20® 10.30 200-225 lbs slo.lo® 10.15: 225-250 lbs .$9 95®10 •250-275 lbs.. $9 85® 9 90: 275-325 lbs $9 65 i 40 ' 160 lbs.. $9.75® 10C 130-140 lbs.. $9.25® 9.50 100-120 lbs., *8 75® 9. roughs. $9 down; calves, $9.50 down lambs $8 oO down. Produce Markets The prices quoted below' are paid for stock gathered in the countrv, while delivered in Indianapolis the price will be 1 cent higher: Heavv breed hens 16c Leghorn breed hens. i3e: springer? over 4% lbs.. 16c: under 4% lbs.. 15c; old cocks. 8c; Leghorn broilers 1% lbs and up, 12c: Leghorn springers 12c ducks white, 4 lbs. and up. sc. gee'e. full feathered and fat, 4c: guineas, 15c each No 1 strictly fresh eggs, loss off. 25c; pullet eggs, 18c. Each full case must weigh 55 lbs. gross, a deduction of 10c a pound under 55 lbs. will be made. Butter. No. 1. 31 %@ 32%c: butterfat No 1 25c No 2. 23c. Quoted by the Wadley Cos. AUTO, TRUCK OUTPUT SHOWS SHARP GAIN Total Production Placed at 44,416 Units During Week. By Time* Special DETROIT, Oct. 21—The trend of automobile and truck production was higher last week. Total output in the United States rose to 44.416 units, compared with only 31.643 in the preceding week, according to Cram’s Reports, Inc. Depicted in the current figures is the sharp contrast with 29,069 units manufactured a year ago, an indication of the effect that the automobile industry probably will have on business in general during the next three months, the slump period of former years, the report stated.

ELECTRIC USE, REVENUES RISE OVER YEAR AGO Increased Industrial Activity Reflected in Wholesale Sales. By Times Special NEW YORK. Oct. 21.—Although the amount of electric energy used has for some time been greater than m corresponding periods of any previous year, revenue has at last broken through pre-depression levels, the Electrical World declared today. August revenue of $156,038,300 exceeded that of the comparable month in 1934 by 5.1 per cent and slightly surpassed the previous August record, m 1931, of $155,053,100. The quantity of energy sold to all classes of consumers, however, was 10 per cent larger than in the month four years ago. which indicates the effect of progressive reductions in price. This energy amounted to 6.614.259.000 kilowatt hours, or 10.5 per cent more than at this time last year. Greatly increased industrial activity is reflected in the 11.9 per cent advance over 1934 in sales of energy to wholesale customers. Comparing like months, sales in this class were exceeded only in 1929. Energy sold to domestic consumers increased 12.1 per cent over 1934 and is now at the highest point attained in the summer of any year. Due largely to the greatly increased use of electric refrigerators, the consumption for home use was 68 per cent greater than in August, 1929. During this 6-year period the average domestic rate has declined 20 per cent, from 6.43 to 5.15 cents per kw. hr. Supplementing these detailed figures for the month of August, further evidence of advancing activity in factories and mines, as well as in home use of current, is seen in the weekly figures also announced by Edison Electric Institute which show' that total energy production in the w’eek ended Oct. 5 surpassed that of any similar period of any year, and that production in the following week was even larger. N. Y. Bonds (Rrprintcd from Saturday) DAILY BOND INDEX 20 20 20 60 Inds. Rails Utils Bonds Today 89.8 77 6 101 0 89 5 Yesterday 89 8 77.2 100.9 89 3 Week apo 90.0 77.9 100.9 89 6 Month ago 89 6 80.5 101 1 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.) IT. S. GOVERNMENT BONDS (By Abbott. Proctor & Paine) Treasury* Prev. Close. close. 4', s 1947-55 114.15 114 9 3 .s 1943-47 105.30 105 23 3%s 1941-43 107 10 107 10 3>i S 1943-43 104 30 104.26 3' < S 1914-40 101 25 104.15 3%s 1946-49 103 18 103 11 3' sS 1919-52 103.16 103 6 3s 1954-55 102.27 102 21 3s 1916-18 102 17 102 11 2%s 1955-60 100.3 99 27 2%s 1955-17 100 23 100 13 Home Owners Loan Corn. 2%s 1949 93 23 99 :• 3s 1952 100 27 100 20 Federal Farm Mortgage Corp. 3% 19S1 102 11 102 14 3s 1949 101 100 23 2%s 1947 101.6 101 8 3s 1947 99.27 93.29 DOMESTIC AUeg Corp 5s '44 77 76% Am Frgn Pow 5s 2030 70% 70 Am Tel & Tel 5%s ’43 113% 113% Am Tel & Tel 5s ’65 113% 113% Arm A; Cos <Del.) 4s ’55 95% 95% Am Wat. Wks 5s '44 106 105% Am Rolling Mills 4%s '33 ... 114% 113 Balt & Ohio 5s 95 .. 69% 69% Balt it Ohio 6s ’95 . 78% 79 Balt it Ohio 4%s ’6O 55% 55 Buff Roch & Pitt 4%s '57 ... 63 61 i Chi Milw it St P 5s ’75 10% 10% Chi Milw it St P 5s 2000 3% 3% Cleve Un Term 4%s '77 91 9! Cos! Gar, 5s April '52 96% 96% Col Gas 5s '6l . 96 s , 96% Can Pac Perp 4s 84% 84% Cent Pac 5s 60 83% 83 t Chi it West Ind sVis ’62 106 106 Chi <Sc Nor West 4%s ’43 8% 8% Con Gas 5s '57 105% 105 Chesa Corp 5s ’47 105% 105 i Erie 5s '75 63 63 Erie 5s '67 63 63 Grt Northern 7s ’36 .100 98% Grt Northern 4%s ’77 89 - 89% 111 Cent 4%s ’66 50% 50% Internti Tel it Tel 4%s ’39 ... 76% 71% Interntl Tel <V Eel 4%s ’33.... 76% 74% Internti Tel it Tel 5.s 55 ... 70% 68% Interntl Tel A: Tel 4' s '52 ... 66 64% McKess it Rob 5%s 'SO 102 102 Natl Dairy 5%s '4B 104% 104 Natl Steel 5s ’56 105% 105% Nickel Plate 4%s ’7B 56% 56% Nickel Plate sVis '74 66 65 , N Y Cent 5s 2013 70% 70 N Y Cent 4%s 2013 (old) 65% 65 Nor Pac 3s 2047 70% 70 , Nor Pac 6s 2047 96 98% Penn Rv 4%s 'B4 .103% 103% Penn Rv 4%s '3l 103% 103 Penn Rv 4%s '7O 95% 95 Pac G it E 5s 42 105% 105% Portland Gen El 4%s '6O 72% 72% Penn P A- L 4%s '3l 105', 103% Postal Tel it Cab 5s 53 35% 35 Sou Pac 4%s 68 72 72 Sou Pac 4%s 8! 71% 71 , Sou Pac 4%s '69 71% 71 , Sou Par 4s 49 77% 77 j Sou Rail 4s ’56 41 % 4; Sou Rail 6%s '56 54 54 , Union Pac 4s '47 110% 110% United Drug 5s 'S3 91 90% U S Rubber 5s '47 .. . 93 98% NY NH A Hart 4' s '67 26 25% Warner Bros 6s .39 82 j)2% Western Marv 4s '52 . 94% 94% Youngstown SAT 5s ’7O ... 95', 99 , Youngstown SitT 5s 73 .... 99% 99 , FOREIGN Denmark 5%s ’55 93 93 German 5%s ’65 . 29% 23 German 7s '43 ... 37 % 35 ; Italy 7s ’sl 59% 52% Japan 6%s ’54 96% 96% Rome 6%s ’52 49% 43% WHEAT GAIN FORECAST Canadian Report Shows Increase in Low Grade Grain. By Times Special MONTREAL, Oct. 21—Canadian wheat crop estimates for the year are slightly higher than 1934 but indicate a greater amount of low grade grain, according to the crop report of the Bank of Montreal. Wheat production for the three prairie provinces is estimated at 272,000,000 bushels, an excess of 3000,000 bushels over last year. Acreage was practically the same as the previous year. Oats production is estimated at 296.000.000 bushels and barley, 73,000,000 bushels. Threshing is practically completed. Deliveries of wheat by farmers to country elevators from Aug. 1 to Oct. 11 totaled 119.987,000 bushels, compared with 109.861,000 bushels during the same period last year.

LOANS REPAIRS AND NEW HOME BUILDING See Your Local Building and Loan Assns.