Indianapolis Times, Volume 47, Number 193, Indianapolis, Marion County, 22 October 1935 — Page 13

T rends ‘\Y hen'-Issued’ Stock Trading’ Allowed in SEC Ruling*. BV VIM ENT LYONS Timrt Financial Editor

LINDER the chairmanship cf ) Joseph P. Kennedy the Securities and Exchange Commission won the respect of Wail Street and the investment hanking world for the liberal attitude it assumed toward regulation of the securities business. James M. Landis, recently cho %i as Hr. Kennedy's successor, undoubtedly is going to follow in the footsteps of his predecessor. Mr. Landis’ enrollment in the liberal school was seen in the announcement that the SEC has lifted the ban on "when-issued” trading. In permitting the resumption of this type of trading the commission has laid down certain stringent rules which are designed to protect the investor. Under the new rules “when-is-sued" contracts must be registered with the commit ion. However, such registration will be given only in those instances where definite assurance is given that the proposed securities actually will be issued. Only securities of companies already listed on an exchange may be registered, thereby removing the possibility of ‘when-issued'’ trading in securities of a company not listed on an organized exchange. nan IN furtherance of its regulatory . rules the SEC has established high margins on "when-issued" trading. A 100 per rent, margin is set up on net, long commitments in unissued warrants <a warrant is a security giving the holder the rignt to buy an actual security at, a certain price), and 45 per cent of the current market value in other unissued securities. Simultaneously, the Federal Reserve Board issued rules supporting these margin requirements. In addition, the SEC may revoke registration for numerous other reasons where it, believes that by so aching it is protecting the investor. "When-issued” trading occurs in those instances where a company announces its intention to issue a security. With this information to go by, stock dealers set-up an advance market for the securities by trading in contracts calling for the delivery of the stock “when, as and if issued.” Prior to the collapse of stork values in 1029 the turnover in “when-issued” securities was great with brokerage commissions and profits running heavy. a a tt PECORA'S investigation of stock market practices in 1933 for the Senate uncovered the fact that in quite a few instances dealing in “whenissued” securities was out of all reasonable bounds. Certain customers who were scheduled to get the actual stock found themselves in the position of having several points profit days before the stock certificates were delivered to them. Thus, it was not uncommon for some of these “preferred” clients to reap a profit on such transactions before they had a look at the stock certificates. When the Securities Exchange Act was drafted by the New' Dealers such operations were prohibited, pending the preparation of SEC policy on the question. There was no questioh but that trading of this character w'as largely of a speculative character. Artificially high prices were attached to the proposed issues by manipulation and the result was that sooner or later someone was stung. Re-opening of the market for “when-issued” trading does not mean that there will boa repetition of the abuses which surrounded it prior to 1929. The SEC has vested itself with powers to prevent any such contingency. In all probability the trading will be used as a means of determining the sale price of an impending issue by the best measuring rod—the market place for securities. LIFE INSURANCE SALES SHOW RISE IN MONTH Slight Gain Reported for Twelve Months’ Period Also. September sales of life insurance in the United States were 4 per cent ahead of the corresponding month of 1934. according to the monthly report of the Life Insurance Research Bureau, which gives sales by states. Sales for nine months are approximately the same as last year. Figures received from companies having more than 90 per cent of the ordinary insurance in force in the United States formed the base of the bureau's report. A slight gain was reported for the 12 months' period ending Sept. 30. compared with reports o’' a year ago. Oil Commission Row Quotations below subject to change are average wholesale prices being offered to buyers by local commission dealers; FRUlT—Cranberries, early blacks. 25-lb. box s.l 35. Pears Michigan Bartletts. bushel $2 25; Avocados. Florida, box $2 25 Cantaloupes California Honey Dews $2 50. Casabas $2 25; Persians, s2w 2.25 Bananas 7 hands, a pound. 5s Grapes Michigan. 12-ot. basket. 35c. Persimmons, Indiana. 12-pt case. *1 Apples - - Indiana Jonathans. $1.15 </l 35 Summer Rambos, $1; Delicious. $1,504(1.65; Wealthy?, sl. Grimes Golden (large l . $135. Lemons - Sunkist. 360s $7 50. 4325. $7. Grapefruit. 64s to 70s, 53.50 Limes—Mexican a carton 12s, 30c; Persian seedless a hundred. $3 Vegetables—Beans, green round stringless bu $2 50. Beets Home grown, do/.. 20c. Cabbage—New York 50-!b bag. 7Sc Carrots—Home grown and Ohio. 30c; new bulk, half bn.. 65c Cauliflower—Colorado. 11s. 12s, crate. $1 90 Celery—Michigan. washed and trimmed, jumbo doz.. 60c. Jumbo doz . 45c; hearts, flat. $1.25. Cucumbers Hothouse. 2 doz. box. $2. Kale Home grown, bu,. 50c LettuceIceberg. California, best, $3.75: home grown leaf 15-lb. basket. 50c Endive— Ohio basket. 45r Mangoes—home grown, bu., $1 50; small basket. 40c. Mint—Doz.. 50c Mustard—Home grown, bu.. 50c. Onions—lndiana yellow. 50-lb. bag, 90c; Indiana white 50-lb bag. $1 Utah Spanish. 50-lb bag, $1.40 Parsley—Home grown, doz , 35r. Peas- Telephone, hampers. S3 4i3.7$ Potatoes New jersey Cobblers. 100lb bag. $1 SO Michigan Round White 100lb tag. $1.2(5. Early Ohios. bu., $1 30: Idaho Russets, SI 90 Swee* potatoes Indian. Jersevs. bus $1.40 Radishes—Ohio, buttons 2-do., baskets. 60c. Sage—Doz . 45c Spinach—New Zealand bu., 65c Sqimh Ru ,$1 Turnips—Now bu $1 15: bunch, doz . 30e Tomatoes California, repacked. 10-lb. carton, $1.25: Doz.. 60c. FRUITS AND VEGETABLES Bv United Press) CHICAGO Or: 22 Apples Michigan, bushel. Wealthies. 60063 c. Carrots—lllinois. bushel, 25 ■; 30e Sweet potatoes— Tennessee bushe. 69/70. Beans- Louisiana $1507/3 Cabbage—6o-70-lb. crates, 65 ■/ 75 Peas California, bushel hampers *2 25b3 Tomatoes California. lugs. sl4i 175 Spinach Illinois bushe! 254/ SOc Lettuce Western crates 5 doz $2 4i3 25 Cucumbers- Louisiana bushel! $1 4/2 23. Celerv Michigan, crates. $i 25 a 150. Pears Michigan, bushel $125 a 1.75. LOCAL CASH MARKET City grain elevators are paying 93 cents for No 2 soft wheat. Other grades on their merits. Cash corn No. 3 yellow 77 cents and oats 31 cents.

TEXTILE GROUP NOW SOLICITING FEDERAL HELP Wallace Asked to Use Funds to Stimulate Exports of Goods. BY JOHN T. FLYNN Times Special Writer NEW YORK, Oct. 22.—The latest candidates in the field for a little government money are the New England cotton textile manufacturers. At a meeting in Boston they passed a resolution calling on the Secretary of Agriculture to use the funds he has to stimulate export of cotton goods. The word is not used in the resolution. But I

am informed that from the talk, the intent was that : h e government should pay a subsidy on cotton goods exported by them. There is really nothing surprising in this. For three years there has been agita ti o n among various groups to have the government guar-

....

Flvnn

antee the profits of industry, to underwrite the output of factories, to subsidize production in various ways. A United states Senator said to me last year: "When a government starts to pay subsidies or bonuses or to give money aid to anj group, it is as certain as life that some other group will very soon demand the same thing. Then other groups which are adversely affected by '.nese aids will clamor for aid. The system will spread until it dominates our fiscal and industrial policy.” Government aid in this country began with cotton manufacturers. Tt took Ihe form of a tariff. That increased the price of textiles to users, but it filled other producers with a desire for the same medicine. The history of the spread of tariff aid until it affected all our industry and finally infected the world is well known. The whole talc need not be told. But in the fullness of time the farmer, who could not get the benefit of a tariff, because he was exporter, began to demand something that would “equalize the tariff” which, of course, he had to pay on other men’s products. Finally under Mr. Hoover he got the Federal Farm Board and price-pegging, which failed, and now under Mr. Roosevelt he gets processing taxes. Inevitably limitation of farm output raises farm prices and processing taxes increase the cost to the manufacturer of cotton goods. His trade in the world market suffers because of high price. So now he demands that he be given some aid from the government to “equalize the effects of processing taxes.” So he demands a subsidy, a payment by the government to him of a benefit on every yard of cloth he sells abroad so that he may sell it cheaper abroad. But who will pay this benefit to him? Not the government, for the government has nothing, ft must get its funds out of the hides of the people. Who then will be the next to demand “equalization” when the export subsidy gets into being'’ and who will equalize things for the eternal taxpayer? (Copyright 1935. NEA Service, Inc.) BUSINESS TO IMPROVE IN NEXT SIX MONTHS Dr. Harold Moulton Points Out Factors to Aid in Recovery. />’.(? I nitril Press PITTSBURGH. Oct. 22.—Business conditions during the next six months will improve according to all available evidence, Dr. Harold G. Moulton, noted economist and head of the Brookings Institution of Washington, said here today. He said three factors wiil aid in the recovery movement. They are: The replacement of machinery in the nation's industries; an increase in construction, particularly in the housing field, and the momentum of the recovery effected to date. "The government spending policies have been a two-edged sword, both helping and hindering recovery. Fears of those predicting another boom and then a collapse are groundless. Even if recovery is es footed, there will still be uncertain factors which will tend to keep business from becoming too optimistic," Dr. Moulton stated.

NEW BUSINESS BOOKS AVAILABLE AT LIBRARY Tlie following new business books are now available at the business branch of the Indianapolis Public Library: ’’DOING BUSINESS BY LETTER: A CO M PLETE Gl IDE” (By J. M. Clapp). Two Volumes—Volume 1, Methods and Principles; Volume 2. Selected Illustrative Letters. •FUNDAMENTALS OF INDUSTRIAL MARKETING” (Bv Robert F. Elder) —Very recent is the recognition that there are distinct differences between the marketing of goods destined for personal consumption and the marketing of goods used in the course of manufacturing. ’RETAIL TRICE CUTTING AND ITS CONTROL BY MANUFACTURERS” (Bv Albert Haring)—"The problem of the retailer's support of trademarked and advertised merchandise.” "VACATION WI T H PAY FOR WAGE EARNERS" (Compiled by National Industrial Conference Board)— Half the industrial vacation plans which were operating in 1931 continued in force throughout the depression ” “AUDITING: THEORY AND PRACTICE" (By H. Montgomery), Fiftl Edition—A revision of a standard work on auditing.

Abreast of The Times on Finance

INDIANAPOLIS, TUESDAY, OCTOBER 22, 1935

New York Stocks

Es Thomson ic McKinnon' 11:15 A M Prev. High Low. N Y. c.osv;. Oil*— Amerada 70 1 3 70 1 3 70 1 3 70% A'l ffs 23% 23 23 , 23% Consol OU 8% 8A 8% 81b Cont of Dpl .... 32'b 21A 21% 21% Houston mew) . 4 1 4% 4’ a 4' a ■Mid Cont Pst .. ll’j HA IT* 11'a Ohio Oil 10a 10% lON 10% Pet Corp 9 7 9% 9’n 9 7 a Phillip Pet ..-. 31 'a 31 31% 31 1 4 Pure Oil . ... 9% 9'a 9 1 3 9% Royal Dutch 43% 43m 43% 42% Seaboard Oil ... 30% 30% 30% 30 7 a SheU Un 10 9;, 10 9A SOC Vac 11 7 a ID*a 11 7 a 11% S O of Cal 34*4 34’.a 34 1 3 34‘a S O of Ind 25 a 25% 25% 25% Texas Corp ..... 22’ 3 22% 22% 22>i Tidewater Assn . 9% 9% 9% 9% Cn Oil of Cal . ly 7 3 19% 19% 19% Acme 73 72 a 72‘a 721a Steels— Col Fuel k Iron . 2 7 4 2% 2% 2% Cruc Ste*zl .. 25% 25 3 4 25 'a 2j'i Gulf Sts Steel .. 95 A 941* 95 ! 4 Inland Steel . ... 25% 25% 25 * 25 Ludium Steel .. 122'.. Ixl% 122 1 a 125% Natl Steel 73 72A 73 72 A Otis Steel ...... 16 15% 16 15’a Rep Iron k Steel 17% 17 17*4 16% U S Pipe k Fdy 18 7 a 13% 18 7 a 13% U S Stel . 47’a 48* 2 47 1 a 45 s 3 U S Steel pfd ...1101 a 109 3 a 110‘ 2 109% Warren Bros 3% 3D3 3 3 3 3 a 1 Youngstn Sk T 26 la 26'a 26 ’a 261a Motors— Auburn 44% 43 A 43% 44% Chrysler 86 7 s 85' 4 85% 87' 4 Gen Motors 51 7 a 51% 51*2 51 3 4 Graham Mot ... 3% 3'4 3% 3'a Hupp 3’ 2 3 3 a 3 J a 3% Mack Truck .... 25 24' 2 24' 2 25 7 ( Nash 19' 2 19 15' a 18 3 4 Packard . . 7% 7% 7' > 7 1 ' Reo .... 4'2 4 1 2 4' 2 4*2 Sludeba ker .... 7' 4 7 7 7 Yellow Truck ... 6'.a 614 6% 6la | Motor Access— Bendix 24' 7 23 7 * 23% 24% i LOhn Alum ... 50 3 a 50 50 50% ! Borg Warner ... 65'., 64% 64 *4 64V. I Briggs 55 54 54 7 54 3 8 1 Budd Mfe 7 7 7 7 Budd Wheel .... 10 9 3 4 9 3 i 9 7 a Eaton Mfg3 3 7„ 30'a 30>4 30' R Houdaille 'B( ... 24'2 24 24 24% Murray Bodv .... 20', 19% 19 7 , 19% Stew Warner ... 18 1 3 18'., 184 184 Timken Roll 63% 634 . 644 Timken Det Axle 9-4 9'2 94 9% Mining— Alaska Jun 144 144 14% 144 Am Metals 26 25 7 a 25'a 264 Am Smelt 524 52 4 52 4 52 4 Anaconda 204 204 204 204 C'erro de Pasco . 58 53 58 58 Granby 124 124 124 12", Gt Nor Ore 124 124 124 124 Howe Sound .... 52 . . . . 52 Ins Copper 64 64 64 64 Int Nickel ... 314 31 314 314 Isl Creek C0a1... .24 23 4 234 Park Utah 4 34 4 34 Phelps Dodge ... 234 234 234 234 St Joe Lead ... 20 4 20 4 20 4 204 U S Smelters ... 964 96 964 954 Vanadium 18 4 174 184 18 Amusements— Croslev Radio ... 154 154 154 154 Fox Theat 164 164 164 16", Loews Inc 50 49"; 494 494 Radio Corp .... B'4 84 84 84 Paramount 104 104 104 104 RKO .... 6 54 54 6 Warner Bros .... 84 8 8 8 Tobaccos— Am Sum Tob ... 244 244 24", 244 Am Tob 1 B ( 104 4 104 4 104 4- 104 I.ig k Myers B' 1154 1154 1154 1154 Phillip Morris 43 4 48 4 48 4 48 4 Reynolds Tob B' 56 4 56 4 56 4 56 4 Rails— Atchison 484 48 484 474 Atl Coast Lines 234 23 4 234 23 B& O 154 144 144 144 Can Pacific . ... 94 94 94 94 Ch k Ohio 45 444 45 45 Chi & Gt W .1 7 a 1 4 Chi &Gt W pfd. 14 14 14 24 C M & St P 14 14 14 1 CM & St. P pfd 24 24 24 14 Dela k Hud . 34 4 33 4 34 4 33 4 Del Lac & W .. 144 144 4", 144 Erie 104 104 104 10 Erie pfd 13 s ,a 134 134 13 Grt Northern pfd 26 254 26 254 111 Central 154 14% 15 144 Lehigh Valley .. 84 84 84 84 Lou & Nash .... 44 434 44 43 4 M K & T ... 34 3’s 34 34 M K & T pfd ...9 9 9 84 Mo Pac 14 14 14 14 Mo Pac pfd 24 24 24 24 N Y Cent .23 4 22 4 23 4 23 N Y New Haven 4 4 4 34 Norfolk & West 188 183 188 188 Nor Pacific 174 17 17 164 Penn R R 274 27 27 4 274 Sou Pac 13 3 1 184 18", 184 Sou R R 94 94 94 94 Union Pac 954 95 954 93". Wabash 14 14 14 ... " West Maryland. 84 84 84 74 Equipments— Am Car At Fdy 214 214 214 204 Am Steel Fdy ... 174 17 174 164 Bald Loco .. 24 24 24 24 Gen Am Tank C 40 4 40 4 40 Gen Elec .... 354 35 354 354 Gen R R Sig ... 314 314 31 Vi 314 Pullman Inc ... 344 334 344 334 Westingh Elec . 874 864 864 87 Utilities— Am & For Pwr . 64 64 64 64 Am Power & Lit 7 3 ., 74 7 4 74 A TA- T ... 1414 1404 1414 141 Am Wit Wks . 174 17 174 164 Col Gas At Elec. 134 134 134 134 i Comm & Sou 2 2 2 2 I Consol Gas . 29 4 29 29 4 29 1 Elec Pwr At Lit 5 4 5 54 5 I Int. Hydro Elec . 33 33 Int TAt T . . 104 104 104 104 I Lou G At E (Al . . 20 20 20 20 Nat Pwr At Lit . . 94 94 94 94 North Amer. ... 22 214 22 21 Pac G At E .... 28 27 27 274 People Gas ... 38 38 38 374 Pub Serv N J ... 42 404 42 41 So Cal Edison ... 23 224 23 22 4 Std Gas 34 34 34 34, [Stone At Webster 84 74 84 74 i United Corp ... 54 44 54 44 jUn Gas Imp. . 164 164 164 164 Ut Pwr & Lt (A) 24 24 24 24 I Western Union . 63 4 62 63 4 64 Rubbers— I Firestone 144 144 144 144 Goodrich 9', 94 94 94 Goodyear 194 184 184 19 jU S Rubber . . 144 14 14 144 1 U S Rubber pfd 374 37 4 37 4 374 Miscellaneous— Allis Chalmers . 314 314 31-4 314 Am Can . 1434 147 148", 1464 Am Mach At Fdy 28 4 28 4 284 284 Anchor Cap . 154 154 154 154 Brklyn Man Tr .43 424 424 424 Burroughs Add . 214 214 214 21% J I Case 94 4 93 94 4 944 Conti Can 95 93 944 92 Caterpillar Tract 58 574 574 57 Crown Cork . ... 35 4 35 4 35 4 35 4 Curtis Pub . .. 19 184 184 194 Deere &Cos . 524 504 514 524 Eastman Kodak 1624 1624 1624 1614 j Foster Whepler 174 174 174 174 lilt Bus Mach .181 1804 181 180 Inter Harv ... 60 4 59 s , 60 4 594 Natl Cash Reg .. 19 18 s , 19 194 Owens Bottle .. .1084 1074 107", 1084 Rem Rand 144 144 144 144 Underwood E 80 4 80 4 80'- 804 Worthingtn pmp 174 174 174 174 Foods— Am Sugar 514 51 s * 514 514 Armour .... 54 5 5 51, ! Armour 64 pfd .67 664 66", 674 Beatrice Crniry . 164 164 164 164 Borden Prod .. 2a 3 , 25", 254 254 Ca! Packing ... 354 354 354 354 Corn Prod 64 4 644 64 4 64 4 G„n Foods ..... 34 4 334 341, 341, Gold Dust. . .... 174 174 174 '171; o W Sugar .. . 23 4 27 4 27 4 28 Hershev 77 77 77 77 Int Salt ....'. 25", 25 4 25 4 25". j Loose Wiles ... 38 38 38 33 * i Natl Biscuit .... 324 314 30 Natl D Prod ... 18.4 174 ?8 18 ! l' 1 * I® 1 * 104 17V, iStd Brands . .. 144 144 14-4 144 ,Un Biscuit . . 194 194 194 214 United Fruit .... 67 4 66 4 66 4 684 Retail Stores— Assd Drv Goods 164 164 164 16 4 *c° 544 544 544, 544 Gimbel Bros ... 64 6 s , 64 rd. Allied St 74 74 71* 7.U Jewel Tea 54 54 54 54 Kresge S S 274 27 274 27 Kroger Groc .... 27 ofi 7 ofiz. 57 Macv R H 54 4 53 4 53 4 54 McCrorv St . 124 121, 101, in, Marshall Field 114 n nil ,4 May Dop- St . . 54 54 5* 534 Mont Ward 33 4 33 4 33 4 33 4 Natl Tea ... in 97, 97. 93, Penney J C 804 794 804 794 Safeway St .354 344 354 35“ Sears Roebuck . 594 594 594 sss, Woolworth 60 7 8 59 594 60 Aviation— Boeing Aircrft .. 164 157 ls %- lfil _ Curtiss Wright . 3 24 33 Curtiss Wri .A* . B', 84 84 Bs,8 s , Nor Am Av .... 44 44 41, 41 Sperry Corp 124 124 124 124 Uni Arcft new . 214 204 204 214 Chemicals—-i-Air Reduction . 163 163 163 163 ; Allied Chem 171 170 m 169 Am Com Alcohol 32 4 31 4 32 3P, Col Carbon ... 93 4 914 934 971 Com Solvents .. 194 184 19 19 DuPont .. 136 4 136 136 4 136 4 I Freeport Tex . . 24 24 04 043 Liquid Carb 32 4 31", 314 32 'Math Alkali 334 33 334 3.34 Nat! Dis inewi 33 s * 324 33 33:, I Schenlev Dist .51 50 4- 50 4 514 I Tex Gulf Suloh .32 314 314 314 Union Carbide 72 4 71 4 72 72 4 U S Ind Alcohol 48 4 474 474 45 Drugs— Bristol Mvers ..40 394 40 304 Cotv Inc 5 4 54 54 5 Lambert .... 22 22 22 22 Lehn & Fink ... 134 134 134 134 Sterling Prod .. 634 634 634 64 Un Drue (newi . 104 104 104 104 Vick Chem .... 404 404 404 404 Zcnite Prod 54 54 54 54 Financial— Adams Exp .. Bs*8 s * 84 84 84 Allegheny Corp . 14 14 14 14 Am Int Corp ... 84 84 .84 84 Chesa Corp 45 444 W- 45 Lehman Corp ... 934 934 934 #34 Transamerica .. 84 84 84 84 Tr Conti Corp .'. 7 64 7 64

Building— Am Radia'or .... 174 174 174 I*l4 Gen Asphalt 134 13 13 134 Holland Furnace 194 194 194 194 In’ Cement . 274 27 274 27 Johns Manville 86 86 86 86 4 Libbv Owens Gls 44', 44 44 43 4 Otis E!ev . 204 194 194 19 ; r U S Gypsum 814 81 81 82 Household— Col Pal Peet . 18 174 174- 174 Congoleum 401* 40 4 40 4 404 Kelvinator ... 134 134 13*, 134 Mohawk Carpet. 20 4 20 4 20 4 21 Proc & Gambie 52 4 52 4 52 4 52 4 Servel Inc 104 104 104 'O4 Simmons Bed .. 164 154 16 lo 7 s Textiles— Amer Woolen ... 104 94 104 94 Belding Hel ... 14 14 14 134 Celanese Corp .. 31 4 30'*, 384 384 Coliins Aikman .39 38 4 38", 384 Indus Rayon ... 36 354 354 354 Kaysar Julius .. 254 25 4 25 4 25 4 Real Silk 94 94 94 94 N. Y. Bonds (Reprinted From Late Times Yesterday) DAILY BOND INDEX 20 20 20 60 Inds. Rails. Util. Bonds. Todav 89.8 77.5 101.1 89.5 Saturday 89.3 77.6 101.0 89.5 Week ago 89.9 77.3 100.7 89.3 Month ago .... 89.4 79.7 100.5 89.9 1935 high 90.0 86.4 101.6 90.9 1935 low 83.6 71.0 39.3 83.0 (Copyright, 1935, by Standard Statistics) (By Abbott. Proctor A; Paine) t. S. GOVERNMENT BONDS Treasurys Prev. Close. close 44s 1947-55 114.24 114.25 4s 1944-54 110.15 110.2 34s 1946-4(1 103.24 108.14 34s 1940-43 107.9 106.30 34s 1943-47 106.2 105.30 34s 1941-43 107.15 107.10 34s 1943-45 105.10 104.30 34s 1941 107.27 107.20 34s 1941-46 105. 104.25 34s 1943-49 103.29 103.18 34s 1949-52 103.21 103.16 3s 1954-55 103.2 102.27 3s 1946-43 102.21 102.17 24s 1955-60 100.9 100.3 24s 1955-47 101.2 100.23 Home Owners Loan Corp 24s 1940 99.30 99.23 3s 1952 101. 100.27 Federal Farm Mortgage Corp. 34s 1964 102.19 102.11 3s 1949 101.4 101. 24s 1947 • 101.15 101.6 3s 1947 100.3 99.27 DOMESTIC Prev Close close. Alleg Corp 5s ’44 ’ 774 77 Alleg Corp 5s ’49 66 664 Alleg Corp 5s ’SO 23 244 Am Frgn Pow' 5s 2030 704 704 Am Tel & Tel 54s ’43 1134 1134 Am Tel At Tel 5s '65 113 4 113 4 Arm At Cos (Del) 4s ’55 95 4 95 4 Atl Coast Line 4s ’52 93 s , 934 Atl Coast Line 44s ’64 74 s , 76 Atch Top At S Fe 44s ’4B 107 107 Am Wat Wks 5s ’44 1054 106 Am Rolling Mills 44s ’3B ... 114-~4 1144 Balt & Ohio 5s ’95 694 694 Balt & Ohio 6s ’95 80 784 Bait & Ohio 44s ’6O 55 554 Buff Roch At Pitt 44s ’57 ... 624 63 Beth Steel 5s '36 1024 1024 Chi Mihv At St P 5s ’75 10% 10Vi Chi Milw & St P 5s 2000 4 34 Cleve Un Term 5s '73 9914 99 Cleve Un Term 44s ’77 91 91 Col Gas 5s May ’52 974 974 Col Gas 5s ’6l 964 964 Can Pac Perp 4s 844 844 Cent Pac 5s ’6O 834 834 Big Four 44s ’77 724 724 Big Four 5s ’63 794 80 Colorado At So 4Vis ’BO 52 50 Chi At West Ind 4s ’52 964 964 Chi At West Ind 54s ’62 105 4 106 Chi At Nor West 44s ’49 8 84 Con Gas 5s ’57 1044 1054 Chesa Corp 5s ’47 1054 1054 Del & Huas 4s ’43 77 764 N Y Dock 4s ’sl 68 68 N Y Dock 5s ’3B 51 4 52 Erie 5s ’75 63 63 Erie 5s ’67 624 63 Gen Cable 54s 47 98V, 984 Grt Northern 7s ’36 1004 100 Grt Northern 44s ’76 90'* 95% Grt Northern 44s '77 99 894 111 Cent 44s '66 59 50 4 111 Cent Jt 44s '63 25 4 55 111 Cent 5s ’63 . 5f 4 58 4 Interntl Hy Elec 6s ’44 4' 424 Interntl Tel At Tel 4'/2S '39 ... 7 764 Interntl Tel At Tel 5s ’55 714 70>4 Interntl Tel At Tel 44s ’52 . . 67 4 66 McKess At Rob 54s ’SO 102 102 Natl Dairy s'/tS '4B 104 1044 Natl Steel 5s ’56 1054 105", Nickel Plate 4Vis ’7B 574 564 Nickel Plate 54s ’74 67 66 N Y Cent 5s 2013 704 704 N Y Cent 44s 2013 (old) ... 65V, 654 Nor Amer Cos 5s ’6l 101 101 Nor Pac 3s 2047 . 70 70V, Nor Pac 4Vis 2047 82 814 Otis Steel 6s ’4l 1004 1004 Pen Ry 4Lis ’B4 1034 103V* Penn Ry 44s ’Bl 1034 1034 Penn Ry 44s ’7O 95 s , 95 1 • Pac G At E 5s ’42 ... 1054 105", Portland Gen El 44s ’6O 734 724 Para Publix 54s ’SO 964 964 Penn P At L 44s ’3l 1054 1054 Postal Tel & Cab 5s ’53 354 354 Rem Rand WW 54s ’47 104 ” 104 Shell Union Oil ss" ’47 102 4 102% Sou Pac 4Vis '6B 72 72 Sou Pac 44s ’3l 714 714 Sou Pac 44s ’69 72 714 Sou Pac 4s ’49 771, 771:, Sou Rail 4s '56 414 41% Sou Rail 6s ’56 52% 514 Sou Rail 6Vis ’56 544 54 Sharon Stl Hoop 54s '4B ... 100 100", Texas Pac 5s ’BO 91 90% Union Pac 4s '47 11l 110% United Drug 5s ’53 914 £1 U S Rubber 5s ’47 98 4 98% NY NH At Hart 6s ’4B 28 284 NY NH At Hart 4",s '67 26 26 Warner Bros 6s ’39 824 82 Wesutrn Mary 54s ’77 1044 104", Western Marv 4s ’52 95", 944 Youngstown S At T 5s ’7O .... 99 4 994 Youngstowm S & T 5s ’7B 994 994 FOREIGN Argentina A 6s ’57 97", 964 Argentine B 6s ’SB 97 4 96Vi Brazil 8s ’4l 27 274 Canadian Govt 4s ’6O 1014 104 Denmark 54s ’55 99 98 French 7s 49 175 175 German 54s ’65 40% 294 German 7s ’49 374 374 Italy 7s ’sl 574 594 Japan 64s ’54 96 96L* Poland 7s ’47 1024 102 Rome 64s ’52 48 49 4 Tokyo City 54s ’6l 784 78 Yokohama 6s ’6l . 84 84 Chicago Stocks (Bv Abbott, Proctor At Paine) 11:30 Prev. A. M. close. Allied Prod 34 34% Asbestos 44 44 Bendix 234 244 Borg 64% 644 E L Bruce 14 11", Buller B 7 64 Chi Corp 34 34 Chi Corp pfd 45 45 Cent S W 14 14 Otis Serv 1% 14 Crane Cos 174 174 Com Ed 88 88 Elec Hshld 184 184 M Field 11 114 Gt Lbs Dr 28 294 Noblitt 30 3 4 30-4 Lynch . 38 374 Per Circle 33 374 Pub Serv N J 47 46 Quaker Oats 1354 135% New York Curb (By Abbott, Proctor A: Paine) 1 12 Noon) Prev. N. Y. Time close. Am Cyanide "B" 264 264 Am Superpower 2 1% Art Metal 10 10 Atlas Corp 12 114 Carrier Corp ... 10 94 Fisk Rubber 5 4 5% Ford of Can "A" 274 274 Gulf Oil of Pa 63 4 63", Humble Oil 564 564 Imperial Oil Ltd 20 29 Lake Shore Min 464 464 Lone Star Gas 94 94 New'mont Min 53 59 4 Nia Hud Pwr 8% 8 Novadel Ag-zne 35 33 Pan Am Airways 40% 40% Park Davis 44 4 444 Penn Road 24 24 Sonotone 33 St of Kv 204 204 Teck Hughes Gold 4 4 Wright Hargraves Min 7 74 Unlisted Stocks ißy E’lyth At Cos. t NEW YORK BANK STOCKS Bid. Ask Bankers 54 s * 564 Central Hanover B & T 107 109 Chase 30 4 31 4 Chemical National 454 474 Guaranty 2664 270 Irving 134 15% Manufacturers 314 334 National City 28% 294 Cont 111 iChicagoi 62 4 65 First Natl of Boston 404 42 FIRE INSURANCE Aetna Fire . 56 574 Citv of New Y’ork Ins tnewi .. 25% 27% Federal Ins 76 s , 80 Great American Ins 254 274 Hanover Fhre Ins 37% 39 Hartford Fire 76% 78 Home Insurance 314 33 s * Ins Cos of N A 69 71 % National Fire 71 4 72 4 North River Insurance 25% 264 Phoenix Insurance 89 91 U S Fire ... 51 4 53 4 Westchester Fire 34 4 364

EARLIER MOTOR SHOW DISRUPTS BUSINESS INDEX Autumnal Bulges in Some Lines Ascribed, in Part, to Development. Bis Times Sprciil NEW YORK. Oct. 22.—How moving forward by two months the New York automobile show and the launching of 1936 models ahead of the usual time are affecting other standard indexes of production and trade continued today to be a mooted topic among Wall Street economists and those who follow intently the pulse of industrial activity. For the first time in 32 years, the show will open Nov. 2 instead of early in January. Because the automotive industry is the largest industrial purchaser of so many raw and semi-manufac-tured materials, the two months earlier than usual switch affects many production indexes, so that this year's autumnal bulges in activity are not strictly comparable with previous years. By the same token, whether a recession in the huge purchasing thrust of the automotive industry will ensue earlier than usual next spring can not at thi stime be foreseen. Much Cotton Included The extent of the automobile in- : dustry's effects upon other basic lines may be gauged by the fact that last year the motor makers partook of 80 per cent of this naS tion's rubber consumption. 70 pv cent of the plate glass, 23 per cent of the steel and iron. 9 per cent of the hardwood, 19 per cent of the copper. 39 per cent of the lead, 23 per cent of the aluminum, 28 per cent of the nickel, and so on. “Automobiles are the largest users of gasoline, mohair, upholstery leather, lubricating oil and other materials. They also use much cotton in the form of fabrics. The new Plymouths are using forty pounds of rubber, exclusive of tires and tubes, for purposes of noise elimination. This compares with three pounds used a few years ago by some cars. Plymouth may use 80,000,000 pounds of rubber, including tires, on its new models to be announced Oct. 26. Winter Resistance Feared. “While there is some skepticism over the November switch to new models on ground that winter selli ing will not be as easy as anticipated, the Iron Age has already noted that the steel industry is op- | erating at 52 per cent of capacity, | with automotive purchasing an influence being watched closely right now. In recent weeks the copper industry has pushed up from 20 per cent to 27 per cent or more of capacity. “Freight car loadings at 740,000 cars are at or about their best level in four years, so observers point out that car loadings for automotive purposes, including autos, parts and assemblies, are currently up 30 per cent over a year ago. “United States and Canadian production for 1935 has been estimated at 3,675,000 cars and trucks. It is assumed that fourth quarter output will be 675,000, against 377,000 in the final 1934 quarter, although the more enthusiastic say that auto production in the last three months of this year may approach 900,000, the highest since 1928. The total 1934 output was 2,869.000.

GENERAL FOODS EARNS $2,907,715 IN QUARTER Net Earning Equal to 55 Cents a Share on Common Stock. Bit Times Special NEW YORK. Oct. 22.—General Foods Corp. and subsidiaries today reported third quarter net earnings of $2,907,715 after all charges and provision for income taxes, equal to 55 cents a share on 5,251,440 shares of no par value common stock outstanding. This compared with net earnings of $3,149,022, or 60 cents a share earned on the same shares outstanding at the close of the corresponding period last year. Earnings for the first nine months of 1935 were $3,770,437, or $1.67 a share, compared with $9,031,734, or $1.72 a share, for the first nine months of 1934. Sales in dollars for the first nine months of 1935 exceeded the same period of 1934, it was said. TRUST ISSUES REPORT Receivables Net 52.026,280 in Period Ended Sept. 30. B\j Times Special NEW YORK. Oct. 22.—The Massachusetts Investors Trust today issued a quarterly report for the three months ended Sept. 30, showing net assets of $62,657,248 represented by securities with a market value of $60,630,968. and cash and receivables amounting to $2,026,280 net. During the first nine months this year net asset value a share increased 15.2 per cent, from SIB.BO Dec. 31.1934. to $21.66 on Sept. 30 this year, the report stated. The book cost of securities owned as of Sept. 30 amounted to $52,947,604. Money and Exchange INDIANAPOLIS STATEMENT Clearings 5i.906.000 Debits 6.217.000 TREASURY STATEMENT 'By United Press' WASHINGTON. Oct. 22.—Government expenses and receipts for the current fiscal year to Oct. 19 as compared with a rear ago: This Year Last Year Expenses *2.396.416.071.74 *2.010.859.834.05 Receipts 1.156.919.502.04 1.149,991.508 42 Deficit 1.239.496.569 70 860.868.325.83 Cash Bal. 1.544.212.470.10 1 886.710,485 4! Chicago Grain Futures >Bv James E. Bennett & Cot Prev. Wheat— High. Low. 11:30. close. 'Dec 1003, i.ooi* 1.00 s * 1.01 * Mav 99 s * 99’* .99 s * 100'-, Julv 89’, .38 s , .89'* 93', Corn— Dec 60 s * .59' 2 .60'j .59'.Mav 59', .56 .59', .59'* Julv 60 s , 60 .60 .60', Oats—i Dec 27', 26 s , .26 T ANARUS, * 27', i Mav 28 s , 23 5 28 s , t.2B‘, i July 28 s , .28 s , 28 s , .28’ Rye—'Dec 50', .49', .49', *so'. May 51 s * 51 %, .5144 .514*

PAGE 13

Indiana Par Rolls Mount 4.2 Per Cent in Month; Trade Maintains Stride Employment of 1795 Firms in State for September 3.1 Per Cent Over August, Indiana University Declares. Bis United Press BLOOMINGTON. Oct. 22.—Indiana pay rolls gained 4 2 per cent during September, the Indiana University Bureau of Business Research reported today. Employment of 1795 firms was 3.1 per cent higher during the second week of September than in the like period of August.

Much of the upturn was accredited to the seasonal activity in the canning industry. “Furniture production made more than the usual seasonal gain,” the bureau reported, “and was far above a year ago. Fewer automobiles were assembled in September than in August. Production of auto parts and accessories gained during the latter part of September. Building Gain Continues “Building activity remained above the like periods in the past three years but the total volume of construction was far under normal. “There was very little change in the general business situation in Indiana during September. Gains registered in some lines of business activity were offset by declines in others. “Used car sales made a contraseasonal gain to a point well above the previous September record established in 1929. The early introduction of 1936 models caused new car sales to decline a little more than usual, but sales remained above the like periods in the past five years. New car sales during the first nine months of 1935 were 76.3 per cent above the like period a year ago. Weather Cuts Volume “Unusually warm weather caused consumers to lose interest in some types of merchandise, but clothing and department store sales made about the usual season gain. “Department store trade compared favorably with the like periods in the last four years. Hardware and furniture sales were weil above a year ago. Collections compared favorably with September, 1934. “Check transactions were well above a year ago. Life insurance sales made less than the usual seasonal decline and were well above the like periods in the last three years. “Retail food prices averaged higher in September than during any other month since March, 1931. Post office receipts made more than the usual seasonal gain. Freight rar loadings rer ained relatively low. Newspaper advertising made less than the usual seasonal gain but remained above the like periods in the last three years,” the report concluded.

SEC DISCUSSES WAYS TO IMPROVE FORMS Issues Ruling to Clarify Liabilit* on Underwriting. B>l Times Special WASHINGTON, Oct. 22.—After issuing a ruling clarifying the underwriting liability under the Securities Act, the Securities and Exchange Commission is beginning to discuss ways and means of improving forms A-i and A-2, used in registering new securities under the lav/, it was learned here today. The SEC, in issuing the recent ruling, announced it has taken action to make it clear that security dealers receiving only a usual and customary seller’s commission from an underwriter do not incur underwriting liability al hough they might appear to do so because of the interrelationship between the actual underwriter and the issuer.” INVESTMENT INDEX OFF Bij Times Special NEW YORK, Oct. 22.—The common stock index of 10 leading management investment companies moved lower last week. Distributors Group, Inc., announced today. The index for the week stood at 15.15, compared with 15.41 at the end of the preceding week. RAW HIDE STOCKS OFF Bp l imes Special NEW YORK, Oct. 22.—Raw hides stocks at the end of August stood at 6.431,000 hides, the New York Commodity Exchange reported today. This compared with 6,463,000 at "the end of July and 5,151,000 on Aug. 21. 1934. Other Livestock (By United Pressi CHICAGO. Oct. 22—Hogs—Receipts. 000 including 7000 directs; market, slow. 104(15 c-ant lower than Mondays average: sows weak to 10 cents lower, early top S10.50: bulk 130-250 lbs . $10,254( 10.35. 260300 lbs.. $104) 10.30. Better grade 140-160 lbs $9,854) 10.25. Best sows, $9.40. Cattle —Receipts 7000. calves 1500. Strictly grain fed steers and yearlings scarce, strong to 25 cents higher, top. 512.90. Supply desirable cattle suitable for shippers not very plentiful: bulk selling at. $10.50. Sow steadv market on common and medium killers. Stockers and feeders 25 to 40 cents lower for weak to date, but fairly active at $8 down to $6.50. All cows dull. Weak to 15 cents lower Heifers steady. Light bulls weak. Others steady. Vealers 25 to 50 cents higher at $94) 10.25. Sheep—Receipts. 9000; ;at lambs moderately active. Steady to easier considering quality and condition: sheep and feeding lambs firm: bulk good to choice western 59419.50. Best here 59.65 but strict - lv choicu westerns absent: few natives to yard traders. $9.75. Bidding $9.25 on most others now held around S9 50 Slaughter ewes eligible S3® 4.50. Choice feeding lambs. $9.30. LAFAYETTE. Ind.. Oct. 22 Hog market steadv to 20c lower: 170-210 lbs. $lO 4(10.10: 210-235 lbs.. $9,904(9.95: 235-260 lbs $9,804(9.85: 260-325 lbs.. $9,604(9.75; 140-170 lbs.. $9.75)( 10 120-140 lbs., 59.254( 9.50: 100-120 lbs., $3,754(9: roughs. S9 down: calves, SlO down; lambs, $3.50 down FORT WAYNE Ind , Oct. 22 —Hogs—3oc to 40c lower; 180-200 lbs.. $9 90; ZOO-220 lbs $9 80. 220-240 lbs.. $9 65: 240-230 lbs $9.50: 280-300 lbs.. 59.40: 300-350 lbs.. $9.20: 150-160 lbs , $9.35 140-150 ibs . $9 60: 130-140 lbs.. $9.35 120-130 Ibs.. $9.10: 110-120 lbs, $8 85; 100-110 lbs. $8 60. roughs. $8.25; stags, $6.50. Calves—slo.so: lambs, $9. Bv Times Special' LOUISVILLE. Oct. 22.—Cattle—Receipts. 400. salable supply of slaughter cattle light, demand fairly broad, market active fully steady: bulk common to medium grad-j hgh' grass steers and heifers. $5004) 7.25: better finished offerings quotable. 57.50" 9; bulk beef cows considered salable. S4 4i 5; practical top. $5.50. most low- cutters and cutters. $34)3.75; bulk sausage bulls. $44(5 stocker and feeder trade slow, mostly steady. Calves—Receipts 225: marke’. steady; bulk good to choice vealers. 594 ( 10; medium and lower grades including ireavy grass calves. 58.50 down to around. $5 Hogs—Receipts. 500; market. 35c lower top and bulk better: 180-240 lbs. $9 90 245-295 lbs.. $9.40: 300 lbs., up $9: 160-175 ibs . $9.40: 140-155 lbs . 53.55: 120-135 lb' . *7.60: sows. $7.55 Sheep—Receipts, 300. Lambs in very light supply; market generally steady, most better lambs, SBD'B.SO; choice quotable higher. Plainer grade lambs, including bucks, mainly $5.50% 7.50; light culls down to #4; bulk fat ewes. $3.50 down.

n0 Stocks' Value Rises The market value of 50 representative storks listed on the A nr York Stork Erchanpe increased $-35~.W5.550, or 2.28 per rent, last week, according to a compilation prepared b>/ Paul H. Davis S: Cos., Stock Exchange members.

Busigraphs

COMMERCIAL failures (D'JN i. BRADSTREET) 1 DOTTED LINE 15 THE PAST [j / TEN YEARS AVFRACE OF cr ' \ THE SAME MONTHS 3 * \ 1* ~ u. % a z < —n t P~! f— -l 2 i ~ l y. y y //. %/>yy, x, c , // % // //// // /y . // // ;/ /. ' 'Y Y/ // y 0 ■ 2eC. Ye. ’2. /22C.2 (2.2. Ye. OL eU SONDJ 6MAMJJ AS the PARKER CORh GENERA,_ D!STR:&JTORS INCORPORATED INVESTORS

Business failures in the first nine months of this year were .4 per cent less than in the 1934 period, and only half the 10-vear average. Business generally is well liquidated. Those concerns now existing represent the survival of the fittest. The low rate of failures is further evidence that we are definitely traveling on the up-side of the business cycle.

HOGS FEATURE WEAKER TREND Underweights Continue to Show Better Tone Than Others. Hogs continued their downward trend this morning at the stockyards with a drop of 5 to 20 cents. Underweights showed a somewhat steady tone compared with others. For 160 to 325 pounders prices ranged from $10.20 to $10.30. with a top of $10.35. Weights of 225 to 275 pounds brought $lO to $10.15; 225 pounds up. $9.65 to $9.95; 130 to 160 pounds, $9.75 to $10.25; 100 to 130 pounds. $9 to $9.25. Packing sows brought $8.50 to $9.25 with a few selling at $9.50. New arrivals were 5000 with 65 holdovers. In the cattle market steers were slow, little done during the morning. Undertone was lower. Bulk of eligiwere for sale under sll. She „ock was slow but around steady, a few heifers going at $10.50, the bulk under SB. Beef cows brought $4.25 to $5.50; low cutters and cutters. $3 to $4. Bulls sold mostly at $5.75 down. Steers were 50 cents higher, good and choice ranging from $10.50 to sll. Cattle receipts were 1800; calves. 700. Lambs were steady, the better grade of ewe and wethers selling for $8.55 to $9.50. Bucks were discounted 50 cents to sl. Slaughter sheep brought $2 to $4. Receipts were 1500. HOGS Oct. Bulk Ton Receipts 16. $10,594(10.70 $10.75 4500 17. 10.504)10.70 10.75 4000 13. 10.604( -0.80 10.85 3500 19. 10.504( 10.80 10.80 2000 21. 10.254( 10.50 10.55 4500 22. 10.204i10.30 10.35 5000 Lizht Lights. (140-160) Good and choice $10,004) 10 30 Medium 9.25(ji10.00 Lightweights. (160-1801 Good and choice . 10.254) 10.35 Medium 9.754i 10.25 (180-200) Good and choice . 10 254(10.35 Medium 9.754i10.25 Medium Weights. i2OO-220i Good and choice . 10 204) 10 30 (220-2501 Good and choice . 10.054( 10.20 Heavyweights. (250-290' Good and choice . 9.954) 10.05 (250-3501 Good and choice . 9.654i 9.95 Packing sows. (275-350) Good 9.104)9.50 1 350-475 1 Good .. 9 004(9.25 '425-4501 Good 8.354(9.10 275-3151 Medium 8.50*5 9.00 Slaughter pigs. (100-140) Good and choice 900 45 10.00 Medium .. . . 8.255 9.75 CATTI.F, —Receipts, 1800— (500-900) Choice $lO 004? 11.25 Good • 8.504510.75 Medium 6 754( 8.75 Common 4.754) 6.75 (900-1100) Choice 11.004) 12.00 Good 9 004)11.25 Medium . . 7.00® 9.00 Common 5.00® 7.00 (1100-1300) Choice 11.504412.25 Good 9.25® 11.50 Medium . 7.004? n 25 (1300-1500) Choice 11.504( 12 25 Good . 9.50&U.30 Heifers (500-750) Choice 9 004? 10 no Good . .. . 7 504( 900 Common and medium .. 4.00 b 750 ,750-900) Good and choice .. 8 004) 10 25 Common and medium 4 095 8 00 Cows Good 5.00® 5.75 Common and medium . . 4 004( 5 Q 0 Low cutter and cutter 2.75® 4.00 Bulls, good . ... 5.504) SOO Cutter, com. and med bulls • 4.005 5.50 VEALERS —Receipts, 700— Good and choice $lO 50® 11 00 Medium • . 3 504( 10 50 Cull and common 5.50® 8.50 Calve* (250-5001 Good and choice ... 7 00® 950 Common and medium 4 00 5’ 7 00 —Feeder and Stocker Cattle — (500-800' Good and choice ... 6 75® 875 Common and medium 4.50® 6.75 'BOO-1050) Good and choice 7 00® 8 75 Common and medium 4.50® 7 oo Good 4 004) 4.75 Common and medium 3.50 5 4 00 SHEEP AND LAMBS -Receipts, 1500Lambs. 90 lbs. down, good and choice $3 25® 9 00 Medium . 6.505 8.25 Ewes '9O-125 Good ar.d choice 3 005 400 All w-zights. common and medium 2 50® 3.50 (120-150' Good and choice 2 00® 3 00 LOADINGS DUE EARLIER B’j Times Special WASHINGTON. Oct. 22—The socia.tion of American Railways b\ ginning Friday will release iff! weel. y report on carloadings at 11:15 a. m.. instead of 11:30 a. m., as at present.

REAL ESTATE MORTGAGE LOANS on Indianapolis j Improved Real Estate THE UNION TRUST CO. 118 EAST MARKET STREET

STATE RAISES TARIFF WALL’ WITHIN NATION Washington's New Tax on Imported Merchandise Widely Studied. tlif ( nil eel Press OLYMPIA. Wash. Oct. 22—Approved by the State Supreme Court as within the bounds of Interstate Commerce laws, Washington's newest levy—a 2 per cent "compensation tax” on merchandise "imported" into the state to avoid the 2 per cent retail sales import—is being watched with interest by tax authorities over the nation. The measure was enacted by the 1935 legislature to protect cities along Washington's border which would suffer from large purchases being made from Oregon merchants instead of in Washington. To get around Federal constitutional bars against taxing interstate commerce. the legislature levied the compensating charge on ’’the privilege of using” these purchases like automobiles and washing machines within the state. Upheld hy State Court The Supreme Court held it legal on grounds it was not a tax on interstate commerce, but on the article after it had come to rest in Washington. The idea was conceived bv the Washington State Tax Commission, which asserts it is the first of its kind in the United States. Since the Supreme Court upheld its validity, numerous states, especially also having retail sales taxes, have begun studying the levy closely with a view of adopting it to protect their own merchants. The Washington impost exempts all purchases under S2O a month and also any article which has been subjected to a tax equal or larger than the 2 per cent compensating levy, either bv the Federal government or other states. Scone Not Fixed Yet The exact scope of the compensating tax has not been established. The Northern Pacific Railroad asked the Supreme Court not to rule on it as it affected engines, rails, cars and other equipment used in this state and purchased elsewhere. A separate suit may be filed to test just how far the state can go in taxing railroads, telephone companies and others in interstate commerce. The tax commission also has a suit before the Supreme Court testing whether it can levy the state's business fax on gross revenues of M a s o n-Walsh-Atchinson-Keir Cos., contractors new engaged in building the $63,000,000 Grand Coulee dam. The company contends it is an agent for the Federal government and not subject to state taxation. , Should it lose the business tax suit, tHe way might be opened for the commission to require the company to pay the compensating tax on machinery, cement and the millions of dollars worth of other materials brought into Washington for the dam.

CREDIT INFLATION SEEN Reserves Nearly 3 Billions Above Needs. Publication Says. Times Special NEW YORK. Oct. 22.—Currency inflation may not be in the cards, but credit inflation looms as a distinct possibility, the Financial World declared today, in its Oct. 23 issue. “Largely without the aid of the international gold flow,” the publication said, “there has occurred an accumulation of reserves nearly $3,000,000,000 above legal requirements. The most important of the factors which have affected thi3 growth of reserves has been government financial policy and sales of bonds to finance the tremendous New Deal deficits continuously creating new bank deposits.” Produce Markets The prices quoted below are paid for stock gathered in the country, while delivered in Indianapolis the price will be 1 cent higher Heavv breed hens. 16c; Leghorn breed hens. 13c springers 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. geese, full feathered and fat. 4c: guineas. 15c each No. 1 strictiy 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 , 2®32%c: butterfat No 1 25c No. 2. 23c. Quoted by the Wadiey Cos. 'Bv United Press) CHICAGO. Oc" 22—Eggs—Market, firm: receipts, 3922 cases: fresh graded firsts, 27' 2 c: current receipts. 25®27r dirties, 204)24%c; checks. 194i23c Butter—Market. firm; receipts. 7919 tubs; extra firsts (90-91% score' 26%®27r; extras '92 score). 27%c; firsts '3B-89% t'ore 25% 4i26c; seconds ' 86-87'j score 74 %c, specials. 28®23%c: s'andards 27%c: cent, 894i26c; cent. 884r25%c Poultry—Market, steady; receipts 40 trucks: ducks. 15® 17c; geese 14c: spring chickens. 184i 19%e: hen', 114/19c; turkeys. 164/22c; Leghorn hens, 114) 14c; old roosters. 15c Cheese -Twin'. 15%4( 16c: Daisies 16%®16%c; Longhorns, 16%®16%c Potatoes Supply rather heavy; demand slow marcel about steadv. Idaho Russets. *1.35® 1.45: commercials. $1.20: U S. No. 2 $1.15: Triumphs $1 25; unclassified (showing freezing injury 65c. South Dakota Earlv Ohios 75c North Dakota Cobblers (showing freezing injury. 65® 35c; Red River Ohio' 35c; Bliss Trimuhos, 85c Colorado McClures. $1 104$ 1.17% CLEVELAND. Oc* 22 B".**er-Bteadv; extras, 3!%e; standards 31c Eggs—- - Steadv extra white* 33c curren* receipts. 27c; pulYus. 24 Live poultry— Weak, colored fowl, heavy. 22c Ducks, 5 Ibe and up IBc. small, 15c turkeys, voung 8 lbs and un. No 1. 23c; No 2, 18c Po’atoes—'loo-lb bags Maine SI .30 ® 1 40: New jersev $1 35® 1 40 Ohio 5 90® 110 Michigan. 354/ 90c. Idaho $1 35® 2; North Dakufa, $1 10; Wisconsin. sl4/1 10.

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