Indianapolis Times, Volume 47, Number 201, Indianapolis, Marion County, 31 October 1935 — Page 15

Trends Meehan Trial Seen .Very Important to Exchanges. BY JOHN T. FLYNN Tim's Special Writer

NEW YORK, Oct. 31—The proposed trial of Michael J. Meehan to determine whether or not he had any part in the manipulation of the market in Beilanca Aircraft Corp. stock helps to bring to a head a matter of greatest importance on the stock exchanges of

the country. The function of the stock broker is one thing. The function of the security underwriter is another. It has been demonstrated that the two should never be permitted to be mixed. The sto~k broker has no business engaging in the under-

John Flynn

writing of securities. And this is all the more true when it is said that he should not be permitted to be commission broker, underwriter, specialist and floor trader all at the same time or in the same firm. In the present case. Mr. Meehan, commission o’-oker, was also underwriter of 'isellanca shares. a a tt AS a rule stock brokers who engage in underwriting make their profits in subscribing to blocks of stock in new issues, or, for that matter, old but as yet undistributed issues. These subscriptions are, in fact, little more than options. Then the broker, with the facilities of the exchange in his hands; with an office full of clients getting their advice or at least effective n suggestions on investment from him; very often with large supplies of funds at his disposal as the agent of clients, is in a position to ‘ make ’a market,” for the issue with the greatest facility. It was clearly the intention of the Securities Exchange Act to do away with this fictitious marketmaking, and ordinarily there is no need of bringing a broker in as a partner in an underwriting operation except for the value of his services in making a fictitious market. u it u IN the period before 1920 brokers . were engaged in exery phase of the business, going finally into investment trust management and after that into the fixed trusts which had so disastrous a career. In the financial world there are a variety of interests which are hostile, in the same sense that the bondholder and the stockholders have contradictory positions in a distressed corporation, so that the same man ought not to represent both. There is the corporation seeking money, the underwriter acting for it, the investor seeking investment, the commission broker acting for him, the floor trader on the exchange watching all these interests and getting in between them at strategic moments to chisel profits through gambling operations on the floor, the specialist acting presumably for the commission broker and his client.

That all of these contradictory functions should not be permitted to be united in a single person would seem to be obvious. Yet to date the SEC has done little or nothing save, apparently, study this open-and-shut proposition about which the business world in every other Arid of effort has made up its mind. (Copyright, 1935. NEA Service. Inc.) SAVINGS DEPOSITS UP $900,000,000 IN YEAR Increase in Terind Ended June 29 l’ut at 4.1 Ter Cent. 2’imc* Special NEW’ YORK, Oct. 31.—Savings, including time deposits and postal savings deposited in banks in the United States, increased 4.1 per cent for the year ended June 29, American Bankers Association declared today. The increase amounted to nearly $900,000,000 and the number of savers grew by over 1,750,000. This percentage gain is nearly double that registered a year ago over the year closing June 30, 1933, which was 2.4 per cout. W. Espey Albig, deputy manager of the association in charge of the savings division, said. “In only eight states.” Mr. Albig said, “is a loss shown. Tims, in two successive years savings in banks have increased. They now stand at $22,652,489,000, about one-half billion dollars less than 10 years ago (1925% and almost six billion dollars below the high point of 1930.” On Commission Bow Quotations below subject to chanpe ars average wholesale prices being offered to buvers by local commission dealers' Fruit —Cranberries, earlv blacks. 25-lh. box. $3 50. Tears -Michigan Bartletts. bushel $2.25: Avocados, Florida, box 52.25. Cant aloupes—California Hones Dews $2.50; Casabas $2 25; Persians. $2®2.25 Bananas —7 hands, a pound. 5c Grapes Michigan. 12-qt basker. 35c. Persimmons—lndiana. 12-pt. case. $1 Apples Jonathans Jl 15u 125 Summer Rambos. *1: Delicious. $159; Wealth's si; Grimes Golden $1.15 Lemons Sunki’-t, ?6(!s. $7 50. Grapefruit—64s to 70s. $3.75. Limes—Mexican a canon 12s. 20c Persian seedless a hundred S3 Vegetables—Beans, green, round stringless bu.. $2.50. Beets—Home grown, do?., 20c. Cabbage—New York. 50-!b bag. 75c Carrots—Home grown and Ohio. 30c, new bulk, half bu.. 65c Cauliflower—Colorado. lls, 12s, crate, $1.75. Celerv— Michigan. washed and trimmed ex’ra large. sc; Jumbo, do?.. 45c Cucumbers—Hothouse. 2 dor box. $2 35 Kale—Home sown. bu 50e Lettuce—lceberg, Caliornla. best. $4 25; home grown leaf. 15lb, basket. 60c Endive—Ohio, basket. 45c. Mangoes—California grown, crate $3 25. small basket. 40c. Mint—Do? . 60c Mustard—Home grown, bu.. 50c. Onion.:—lndiana vellow, 50-lb bag 90c’ Indiana white. 50-lb. bag. $1; Utah Spanish 50-1% bag $1 40 Parsiev —Home crown, do? . 35c Pens—Telephone hampers $3.50 Potatoes New Jersey Cobblers. 100lb. bag. $l 50; Michigan Round White. 1199lb. bag $1 39 Early Ohios. bu s’. 40; Idaho Russets. $1 90. Sweet potatoes Indiana. Jerseys, bus $t 40 Radishes—Ohio, buttons 2-do? baskets 60c Sage—Do? , 45c Spinach —New Zealand bu. 65c Squash Bu $1.15® 125 Turnips—New bu 90c; bunch, do? 25c. Tomatoes— California, repacked. 10-lb carton $1 15 do*.. 60c Produce Markets The prices quoted below are paid for stock gathered in the country, while delivered in Indianapolis the price '• 11 be 1 cent higher; Heavy breed >- '7c Leghorn breed hens. 12c jr 4% lbs. 17c; under 4%. cocks. 9c Leghorn broilers 1%. it>s and up. 12c; Legnorn springers. l'2c. ducks, i white 4 lbs and up. 8c gee-e. full feathered and fat. 4c. old guineas i.s C ; young /’Uineas. 1% lbs up 35c; No 1 strictly resh eggs. loss of 25c. pullet reg- 13c Each full case must weigh 55 lbs grosc a deduction of 10c a round under 55 lbwill be made B itter. No 1 31' 32%c butterfat No 1 :2e; Nc 2. 24c ’ Quoted by the Waaley Cos, •

EXPERTS PLAN CORRECTION OF DOUBLE TAXING Segregation and Division Is Urged to Put End to Duplication. Recent protest* a?ainst double taxation, especially in ( atifornia. attracted attention to the vast problem of division of taxes amonr Federal state and local eovernments. The foitowinir dispatch, first of several, discloses today’s developments in study of this problem, which strikes at the pockethook of everv taxpayer. by RICHARD 1.. GRIDLEY I niled Press Staff Correspondent WASHINGTON, Oct. 31. Government experts today urged immediate action toward solution of one of America’s knottiest fiscal problem ; —equitable division among Federal, State and local governments of the 510,000,000,000 taken out of the public's pocket every year as taxes. This problem was emphasized last week by threatened exodus from California of wealthy persons seeking to avoid income taxes imposed by the state on top of the Federal income tax. Segregation and division of tax sources to avoid duplication has been recommended by the experts on the Interstate Commission on Conflicting Taxation, it was learned, in its “1935 Progress report” now to government oflcials. Exhaustive Survey Undertaken The experts have undertaken an exhaustive survey of the entire tax structure in an efTort to end the encroachment—constantly widening—of one taxing body into the field previously held by another. This encroachment already has resulted in an estimated 800 cases of overlapping or double taxation. The commission’s “progress” report said that gasoline taxes, for instance, should be reserved for the states; that tobacco should not be taxed further by states; that states should refrain from levying high taxes on beer for revenue purposes; that the Federal government should allow taxpayers credit for income taxes paid to states. The following examples of tax sources illustrate in part the growing conflict between the Federal government and the states in their ever-growing appetite for new sources of revenue: Incomes—Taxed by Federal government and 33 states. Gasoline—Taxed by Federal government and 48 states. Tobacco —Taxed by Federal government and 19 states. Admissions—Taxed by Federal government and 34 states. Alcoholic Beverages Taxed by Fvderal government and 47 states. Estate and Inheritance —Taxed by Federal government and 47 states. Retail Sales—Taxed by Federal government and 24 states. There are hundred of other cases of duplicate taxation. Among the disadvantages cited for the present overlapping levies are that collection is more costly; discriminatory rates are imposed on some citizens and some revenue sources are dried up by too heavy taxation. Past Progress Little The problem has been under study for several years by government officials but little progress has been made until recently when double taxation grew rapidly as various governments sought new revenue sources to balance their budgets. A measure of the huge tax reservoir now being drained for governmental purposes is shown by commission figures for 1934 which reveal that the Federal government collected $2,985,673,000; state overnments, $1,957,120,000 and local governments. $4,182,748,000, a total of $9,125,577,000. Along with the recommendation for an immediate plan of action for division of the tax "spoils” the commission has offered a "long range” program involving the following steps: 1. Development of complete tax statistics. 2. Federal legislation to permit states to make pacts to prevent tax conflict over state lines. 3. A permanent tax revision council to co-ordinate taxing jurisdiction in all fields except customs and property taxes. 4. A program of education for the public on taxation and government fiscal affairs.

REFRIGERATOR SALES UP Nine Months Total Exceeds Volume for all of 1934. Times Special NEW YORK. Oct. 31.—Sales of electric refrigerators for the first nine months totaled 1,295,274 units, compared with 1.046.28 for the corresponding 1934 period and 1.264.000 for all of 1934. the National Electric Manufacturers Association reported today. The association reported that manufacture and sale of refrigerators this year has had a less rapid rise to the year's peak and a less severe decline than occurred last year. Chicago Grain Futures (By James E. Bennett A: Cos ) ~ 11:15 Prev. Wheat— High. Low. A M. c o?e. December 98% .97% .98% .97% Mav • . .... .98% .97% .98% .97 July 90% .89% .90% .88% Corn— December 59'- .53% .59% .58% Mav 59% 58% .$9% .58% July 60% .59% .60% .59% Oats— December .. .27% .26% .27' 8 .26% Mav .29 28% .29 .28% Rye— December . .. .50% .50 .50% .49% May 52% .51% .52% .51% July . 53 .52% .53 .51% LOCAL CASH .MARKET City grain elevators arc paying 89 cents for No 2 son wheal. C;ber grades on their merits. Cash corn No. 2 yellow 66 cems and oats ’2l cents PASSENGERS SHOW GAIN Time* Special NEW YORK. Oct. 31—A total cf 944 849.100 riders were carried on the street car. subway, elevated, Intern iban and affiliated bus lines of the United States during the month of September, compared with 913.779.100 passengers carried in September. 193 4. the American Transit Association reported today.

Abreast of The Times on Finance

INDIANAPOLIS, THURSDAY, OCTOBER 31, 1935

New York Stocks

Bv Thomson & McKinnon) Prev Oils— High. Low. Close, close Amerada 75 74 1 2 75 74 A-. Rtr. 22% 22 • 22' 2 22', Barr.-aall .. . 10’, 10% 10% 10', I Consol 0:1 9% 9 9', 9 (. r.‘ of D1 ■ . 23% 2V, 23% 23% Ho ;~’on 1 new) .4 3’, 4 3 1 , Mid Corn Pet . 14’, 13% 14’, 13 ‘2 Ohio Oil . IPs 11% 11% 11 P?' Corp in’. 10% 10% 10% • PnilJip • Per 34% 34' b 34% 34 •* Plymouth Oil .. 10 a 10% 10, 10', | Pure Oil 12'% IPs 12'% 11% 1 Seaboard Oil . . . 30 30 30 30', Shell Un 11 s , IP2 IP2 11 ! , Skeilev Oil . . .. 14'. 14’, 14% 14'* Soc Vac 12', 12 12’-, 12% S O of Cal 36% 36' 2 36’ 2 36 ■„ SO of Inci . . . 27% 27% 27% 27% S O Os N J 48'% 48 48 % 48 . Texas Corp 23 22% 2.3 22% Tidewater A?r-n . 10% 10 , 10% 10% Un Oh of Cal ... 20% 20% 20% 20% Steels— Am Roll Mills .. 28% 28% 28% 28% Beth Steel 39% 38% 39% 38% Byers AM . IP, 16% 17', 17% Col Fuel Az Iron 3% 3% 3% . Inland Steel ... 98’% 98% 98% 98% Mid Steel 22% 22% 22% 22% Natl Steel 72% 72 , 72% 72 Otis Steel . 15% 15% 15% 15% H r p Iron Az Steel 17% 17'% 17% 17% U S Pipe Az Fdy 19% 19% 19% 19% U S S'eel .. 46 45% 46 45 ; 2 ; TJ S Steel pfd -.103 108 108 109 Warren Bros. 4% 3% 3% 4 Youngst’n S& T 27% 27-% 27% 26% Motors— Auburn 41% 41% 41% 41% I Chrvsler 86 86% 86 84 | Gen Motors .. . 52% 52 52% 51% i Graham Mot ... 3% 3% 3% 3% Hudson 16 15% 15% 153, Hupp • 3% 33% 3 Mack Truck . . 24% 24% 24% 24 Nash . 11% 16% 17% 17 Packard 6% 6% 6% 6% St.udebaker ... 6% 6% 6% 6% Yellow Truck . . 6% 6% 6% 6% Motor Acccsl Bentiix , 21% 21% 21% ■>!% Bohn Alum . . 47% 47 47 47% i Bn >e Warner ... 60 60 60 60 I HriRR?. 53 52% 53 52% Burin Mfg . 6% 6'-, 6% 67I Burid Wheel . . 9% 9', 9% qi : Eaton Mfg ... 29 29% 29 rip 4 Elec Autn Lite . . 36% 35% 36% 35% Honda IHe ”8".. 25% 23% 25% 23% Murray Body ... 18% 18% 18% 18% S’rw; Warner ... 17% 17% 17% 16% T imkcn Roll . 60% 59% 60% 60 Pmken Det Axle 9 8", 9 8% Mining— Alaska Jun 14 13% 14 14 Am Metals .... 26% 26% 26% oei Am Smelt 59% 59 " 59 58% Anaconda 21 20% 21 ont Cal & Hecla ... 5% 5% 2 5% 2 U a rn De Pasco .. 60 59% 59% 59% Dome Mines .. 38% 37% 38% 38% Gn Nor Ore ... 13% 13% 13% 14 Howe Sound .. 53 52% 53 57 In’ Niekel .. 31% 21% 21% 31% Kennecett Cop . 28% 26% 26% 26% Mclntyre Mine. 34% 34% 34% 34% Park Utah .... 3% 3% 3% 4 Phelps Dodge... 24% 24% 24% 24% S' Joe Lead ... 20% 20% 20% 20% U S Smelters ... 96 95% 95% 95% Vanadium 18% 18% 18% 177s Amusements— Crosley Radio .. 15% 15% 15% 1515 Fox Theat 17% 17% 17% 17% Radio Corp 7% 73: 7% Paramount 9% 9% 9 i 2 9% 3 1 lx V_/ -•*•••• 47 47 Warner Bros ... 7% 7% 7% 7% Tobaccos— Am Toh ”A" .. .100% 100% 100% 100% Am Tob ”B 102% 102% 102% 102% Ligg A- Myers B 115% 115 11.5 115% D r , l lart > , ■ 26 25% 25% 25% Philhp Morris 53 51% 53 51% Reynolds Tob B 56% 56% 56% 56% Rails— Atchison 48% 48 48% 48 4tl Coast Lines. 24% 24% 24% 25 B * O 14% 14% 14% 145. c™ Pacific .... 9% 9% vl Ch A- Ohio ... 44% 44 s r 44 , 44% C M As St P 1% 1% l b 1 C M A- St P pfd 1% 1% 1% 1% Dela & Hud .. 33% 33% 33% 33% Chi N W ... 2% 2% 2% 2 Del Lac &W .. 14% 14% 14% 14% £ r,e ■ to 10 10 ~ 10% Erie pfd 13 13 13 14 Grt Northern pfd 2614 26% 26% 26% 111 Central 15 15 15 15 M KAT ... 4% 4% 4’, M K At T pfd ... 10 10 10 10% Mo Par 1% 1% J% 1% N Y Cent . 22% 22% 22% 22% N Y New Haven . 3; 3% 3% 3% Nor Pacific .... 16% 16% 16% 16% Penn R R 27% 27 27% 27% Son Pac 18% 17% 18 18 Sou R R 9% 914 914 91.4 Equipments— Am Car A: Fdy.. 23% 23 23% 23 Am Loco ... 18% 18 18% 18 Am Steel Fdy .. 20 20% 20 19-% Bald Loco 3% 33% 3 Gen Am Tnk Car 42% 42% 42% 42 Gen Elec 35% 35% 35% 35% Gen RR. Sig ... 35% 35 35% 34% Pullman Inc 36% 36 36% 36% West Air Er .... 26% 26 26% 26 1 - Westingh Elec . 89% 89 89% 89 Utilities— Am A’ For Pwr. 6% 6% 6% 6% Am Power & Lit B', 8% 8% 8 A T A- T ...143 142% 143 142 Am Wat Wks ... 19% 19 19 19 Col Gas & Elec . 15% 15% 15% 15% Comm A- Sou ... 2% 2% 2% 2% Consol Gas ... 29% 29% 29% 29% Elec Pwr A- Lit . 6 6 6 5% Int Hydro Elec . 3% 3% 3% 3% Lou G & E "A”. 26% 26% 26% .. Nal Pwr A' Lit .. 10% 10% 10% 10% North Amer 25 24% 25 24% Pac Cr A' E 28% 28% 28% 28% Peoples Gas .. . . 40% 40% 40% 40 Pub Service N J. 44% 44% 44% 44 So Cal Edison ... 25% 25% 25% 25% Std Gas . . . 5 4% 4% 5 Stone Ar Webster 11% 11V, 11% 11% United Corp .... 6% 6 S% 6% Un Gas Imp 17% 17% 17% 17% Ut Pwr & Lit "A” 32% 2% 3% Western Union .. 61% 61 61% 61 Rubbers— Goodrich 10% 10 10% 10 Goodyear 19% 19 19% 18% U S Rubber 13% 13% 13% 13% U S Rubber pfd . 36% 36% 36% 36% Miscellaneous— Allis Chalmers .. 35 34% 35 34% Am Can . 143% 142% 142% 143 Am Mach A: Fdy. 28 28 28 27% Anchor Cap .. 15% 15% IS 3 , 15% Burroughs Add . 25% 25 25% 25% J I Case 100% 100 100 100 Conti Can . 93% 93 93 93% Caterpillar Tract 56% 55% 56% 55% Crown Cork 41 41 41 41% Deere A- C’o .. 55% 54% 54% 54% Eastman Kodak 166 156 166 166 Foster Wheeler . 19% 18% 18% 19 Gillette 17% 16% 17% 17 Glidden 37% 37% 37% 37% Int Bus Mach ..130% 180% 180% 181 Inter Harv ... 58 57 57% 58 Natl Cash Reg. 18% 18% 18% 18% Owens Bottle . 1119% 119 119 119% Rem Rand . ... 14% 14 14% 14% Worthingt’n P.. 19% 19% 19% 20% Foods— Armour . . 4% 4% 4% 4% Armour 6%, pfd,. 64% 64% 64% 65 Beatrice Cream 16 16 16 * 16 Borden Prod .. 25% 25% 25% 25% Cal Packing . 34% 34'- 34% 34% Canada D G Ale 13% 13 13% it% Corn Prod 67% 67% 67% 66% Crm of Wheat 37% 37% 37% 373, Cuban Am Sug 6% 6% 6% 6% Gen Baking ... 12 11% 11% 12 ' S™ Foods .... 32% 32% 32% 32% Gold Dust 17 167 G W Sugar ... 28% 28% 28% 28% Loose Wiles .... 37% 37% 37% 37^ Natl Biscuit ... 34% 331., 341? 771* Natl D Prod . . 17% 17% 17% 17s? Purity Bak 16 16 16 ifii R ’- C 0 SuR 25,1 25,3 25% 25% Std Brands .. . 14% 14% 14% 14% Wrigley ‘ 79’' |% 68% Retail Stores— Bust A- Cos 55 55 55 ss3 First Natl Stores 47 47 47 4- 4 Gtmbel Bros . . 6% 6% fi' Or Un Tea . . 3% 3% 3% S 2 Allied 7% 7tj 71 3 8% .Tewel Tea 55 55 s $ 4 sii 4 Kresge S S 27% 27 a 2 ' a- 2 Kroger Groc ... 27% aa, 7 4 XL Macy R H .. 52% 55,! so;, c,, 4 Marshall Field .1 1 ? 2 fU 2 May Dept St .. . 53% 53% 43% 531" Mont Ward .. . 33'- 33 331® 77 Penney J C 79 79 7a an Safeway St . 34 34 34 711 Sears Roebuck .59 58% 57 8 Wooiworth 58 57% 57% 577, Aviation— Aviation Corp 3% 3% 3% 31, Curtiss Wright A 7% 7% 7% Nor Am Av ... 4 4 4 4 8 Sperry Corp .12 12 12 171 United Aircraft . 19 3 , 19% 19 a 4 np% Chemicals—•Mr Reduction .. .164 164 164 165 Amed Cnem ..165% 165% 165% 165 Com Alc° .. 31% 30% 31% 30% Col Carbon 93% 93% 93% qqi 2 Com Solvents .. 13 17% 17% Du Pont 135 134 ' 135 134% Freepor- Tex ... 271, 071 .>7l 771 Liquid Carb . . 35% 35 357 *. s 4 Math Alkali 32% 32'- 32 1 - sat. Monsanto Chem 92% 9: * 97% qis 8 Natl Dis 32'- 32% 3a: 4 7,7" Schenlev Dist . 51% 50% 51% 50% Tex Gulf Sulph . 31% 31% 31% 311? Union Carbide .. 70% 63% 70'- 70% U S Indus A1 ... 46% 46% 46% 45% Drugs— Bristol Myers ... 4% 4% 41. 41, Cotv Inc ... 5% 5% 51 8 sit Lehn A- Fink .. 12% 12% jjt 2 jj,: Stcrhne Prod .. 66% 65% 68% 66 Ln Drug ... 10% in 10 10 Zcr.ite Pro Q.... 5% 5% 5% 5% Financial— Adams Exn .. 8", % gv as, Allegheny Com . 1 % 1% 1% \\ Am Int Com ... 9% 9 91, 9 Chesa Com 4", 34', 45% 43% Transamerics . . 9% 9% 9% 0% Tr Cortl Com . 6% 6% 6% 7 Building— Am Radiator 18 17% 18 17% Gen Asnhalt 19 18% 19 18% Holland Furnace 24 23 24 22% Int Cement 39% ;.3% 30’, 29 Johns Manville 85% 85 85% 86 Libby Qwefia Gis 47 46% 46% 46%

OUs Elcv 19% 19% 19% 19% Uien Cons 4% 4% 4% 4% Household— Col Pal Peet ... 18% 13% 18% 18 Coreoleum . . . 3at, 39 , 3940% Kclvir.ator . 13% 13% 13% 13% Proc A- Gamble 50% 50 50% 50% Serve] Inc .... 11% 11% 11% 11% Simmons Bed ... 17% 17% 17 3 12% Textiles Belding Hem ... 13% 13% 13% 13% Celanese Coro .. 28% 28% 28 s 28% Collins Atkman . 39% 39% 39% 40% Go'ham Hose ... 7% 7% 7% .7% Indus Ravon ... 33% ’33% 33% 33% N. Y. Bonds (Reprinted From Late Times Yesterday) DAILY BOND INDEX 20 20 20 60 Inds. Rails. Utils. Bonds Today 89.9 78 8 101 8 90 2 Yesterday .... 89.9 79 3 101 7 90.3 Week ago ... 89.9 78.9 101 4 90.1 Month ago . 89 8 80.4 100.7 90.3 1935 High ... 90.0 86.4 101.8 90.9 1935 Low .. 83.6 71 0 89 3 83 0 (Copyright. 1935. bv Standard Statistics.) V. S. GOVERNMENT BONDS ißy Abbott. Proctor & Paine) Treasurys Prev. Close. Close. 4%S 1943-45 114.25 114.26 4= 1944-54 110.17 110.17 3%s 1946-56 108 44 108 26 3%s 1940-43 107.7 107.7 3%s 1943-47 106.8 106 6 3',s 1943-45 105.2 105.3 3%s 1941 107.19 107.20 3%s 1944-46 104 22 104 23 3%s 1946-49 103.14 103.11 3%S 1949-52 103.6 103.5 3s 1954-55 102.22 102.22 3s 1946-48 102.14 102.13 2%S 1955-60 100.1 100 2%s 1955-47 100.21 100.20 Home Owners Loan Corp. 2%s 1949 99.22 99.23 3s 1952 100.24 100.23 Federal Farm Mortgage Corp. 3%s 1964 102.18 102.19 3s 1949 100.30 100.28 2%s 1947 101.8 101.10 3s 1947 100.4 100.2 DOMESTIC Prev. Close, close. Alleg Corp 5s ’44 77% 77 Alleg Corp 5s ’49 68% 68% Am Foreign Pow 5s 2030 73% 73% Am Tel Az Tel 5%s ’43 113% 113 Am Tel Az Tel 5s '65 113% 113% Arm A: Cos (Del) 4%.s '55 95% 96 Afi Coast Line 4s '52 93% 90% At 1 Coast Line 4%s ’64 78% 74% Am Wat Wks 5s '44 109% 109 Am Rolling Mills 4%s ’3B 117% 119 Balt & Ohio 5s ’95. 71% 71% Balt & Ohio 6s 95 80% 80% Balt A: Ohio 4%s '6O 55% 55% Buff Roch & Pitt 4%s ’57 63 64% Beth Steel 5s ’36 102% 102% Chi Milw &StP 5s ’75 10% 10% Chi Milw A: St P 5s 2000 4% 4 Clove Un Term 5s ’73 99% 99% Cleve Un Term 4%s ’77 90% 91 Col Gas 5s May ’52 98% 98% Col Gas 5s April ’52 98% 98% Co' Gas 5s ’6l 97% 97% Can Pac Perp 4s 84% 84% Cent Pac 5s ’6O 84% 84 Big Four 4%s ’77 73% 73% Colorado Az So 4%s ’BO 51 51 % Chi & Nor West 4%s ’49 8% 8% Con Gas, 5s ’57 104% 105% Chesa Corp 5s ’47 106 106% Del & Huds 4s '43 76% 77 N Y Dock 5s ’3B 54 Vi 53 Erie 5s ’75 65% 66% Erie 5s ’67 66 66% Gen Cable 5%s ’47 98 98% Grt North 7s ’36 100% 100% Grt North 4%s ’76 91% 92 Grt North 4%s ’77 91% 91% Gen Sti Cast WW 5%s '49.... 80% 79 Hud A: Manhat Ref 5s ’57 83% 83 111 Cent 4%s ’66 51% 52% 111 Cent 5s ’63 60% 60% Interlake C Az I 5s ’sl 76% 76% Interntl Hy Elec 6s ’44 . . .. 42% 43% Interntl TANARUS& T 4%s ’39 78% 78% Interntl T & T 5s '55 72% 72 Interntl T & T 4%s '52 67 67% P Lorillard 7s '44 130 131 McKess Az Rob 5%s ’SO ...102% 102 Midvale Stl 5s ’36 101% 101% Natl Dairy 5%s '4B 104 104 Natl Steel 5s ’56 105% 105% Nickel Plate 4%s ’7B 59 60 Nickel Plate 5%s ’74 69% 69% N Y Cent 5s 2013 72% 73% N Y Cent 4%s 2013 (01d)... 68 68%

Nor Amer Cos 5s '6l 101 % 101% Nor Pac 3s 2047 70% 71 Nor Pac 4%s 2047 83% 83'-’> Nor Pac 6s 2047 .. 98% 98'4 Nor Slates Pow' 5s ’4l 106% 106% Otis Steel 6s '4l 99% 100% Penn Ry 4%s ’B4 104% 104% Penn Ry 4%s ’Bl 104% 104% Penn Ry 4%s ’7O 96% 96% Pac G & E 5s '42 105% 105% Portland Gen El 4%s '6O 71% 71% Para Publix 5%s 'SO 92% 93 Penn P A- L 4%s 'Bl 106 106 Postal Tel Az Cab 5s ’53 ... 33 33 Rem Rand W W sVis '47... .104% 104 Vi Shell Union Oil 5s ’47 103'2 103 Sou Pac 4%s '6B 73% 73% Sou Pac 4%s ’Bl 72% 72% Sou Pac 4%s ’69 72% 73' Sou Pac 4s '49 771', 78 Sou Rail 4s ’56 42% 43 Sou Rail 6s ’56 53 54 Sou Rail 6V2S ’56 56% .57 Sharon Stl Hoon 5%s ’4B ...100% 100% Texas Pac 5s ’BO 91% 91% Texas Pac 5s ’79 91 % 91% Texas Pac 5s ’77 91% 91% Union Pac 4s ’47 111% 112% United Drug 5s ’53 92% 92% U S Rubber 5s ’47 .. 99% 99% N Y N H Az Hart 6s ’4B 27% 29 N Y N H Az Hart 4%s ’67 27% 27% Warner Bros 6s ’39 82% 82% Western Marv 5%s ’77 104% 101% Western Marv 4s ’52 95% 95% Younestwn S & T 5s ’7O .... 100 Vi 100% Youngstown S & T 5s ’7B ...100 100 FOREIGN Argentina A 6s ’57 96% 97% Argentine B 6s ’SB 97% 97% Canadian Govt 4s ’6O 104% 1045 b Denmark 5%s ’55 99% 100 German 5%s ’65 33% 33 German 7s ’49 40% 39% Italy 7s ’sl 60 59Vi Japan 6%s ’54 97 97 Rome 6'is ’52 49 50% Tokio Citv 5%s '6l 81% 80% Yokohama 6s ’6l 85% 84% 4

Chicago Stocks (By Abbott, Proctor & Paine) Prev. 11:00 close. Chicago Corp 4 4% Cord 4% 4% Crane . . 20 19% J M Castle 41 41% Electric Household 18"% 18% Gen Household . . 5% 4% Great Lakes Dredge 28% 27% Public Service N 53 53% Quaker Oats 135% 136% Noblitt 50% 30% Swift 19 19 Zenith 9% 9% Xew York Curb (Bv Abbott. Proctor &> Paine). 11:00 Prev. N. Y. close. Aluminum 78% 78 American Cyanimint . 22% 26 Atlas Corp 12% 12% Cleveland Tractor 13% 13% Electric Bond and Share 16% 16% Fisk Rubber 6% 6% Hiram Walker 28% 29% Lake Shore Mines 46% 46% National Bellas Hess 1% 1% Niagara Hudson 9% 9% Pennroad 32% Wright Hergraves 6% 6% Unlisted Stock (By Blvth & Cos.) NEW YORK BANK STOCKS Bid. Ask. Bankers 58Vi 60% Central Hanover B &z T ...... 11l 113 Chase 34% 35% Chemicals National 50 51% Guaranty 283% 286% Irving 14% 16% Manufacturers 35% 37 National City 31% 33% Cont 111 (Chicago) 75% 77% First Natl of Boston 41% 43J 4 FIRE INSURANCE Aetna Fire 55% 57 City, of New York (new) 25% 27% Federal Ins 78% 82 Great American Ins 25% 27% Hanover Fire Ins 36% 38% Hartford Fire Ins 77? * 80 Home Insurance 33% 35 Ins Cos of N A 69% 71% National Fire 70% 72% North River Insurance 25% 26% Phoenix Insurance 88% 90% U S F:re 51% 53% Westchester Fire 34% 36% COMMITTEES TO MEET Times Special NEW YORK, Oct. 31. Discussions of banking and association policies and final preparation of reports for consideration at the general and divisional sessions of the American Bankers Association convention to be held at New Orleans, Nov. 11-14, will be provided for in a schedule of committee and commission assignments announced here today. RUBBER DUTY RAISED Timeti Special AMSTERDAM. Oct. 31.—The export duty on native rubber was further advanced today, the charge rising % (Dutch) cent to a level of 13 cents a pound.

DIAMOND MATCH CITED IN ORDER BY TRADE BODY Must Answer Complaint of Engaging in Unfair Practice. By L'nitriJ Ptcsr WASHINGTON. Oct. 31.—The Federal Trade Commission today explored the question of when a match is a “safety match.” took up the matter of fair trade practices in selling devices to renew wornout typewriter ribbons, and issued a complaint against a firm allegedly selling debt collection systems by "unfair methods.” The major concern affected by the burst of activity was the Diamond Match Cos. The commission's complaint alleged that the firm had been selling "strike anywhere matches,” which can be lit by striking them on any friction surface, under the name “Safety First Diamond Matches.” This, the complaint charged, constitutes an unfair practice against competitors manufacturing “safety matches” which can be ignited only by striking them on the friction surface of the match box itself, and against makers of “strike anywhere" matches who market their product under proper designation. The commission fixed Nov. 29 as the day when the Diamond company must answer the complaint. Henry S. Biumenthal of Jackson Heights, New York City, and the Ribbonew Corp. of America, were involved in the question of aged typewriter ribbons. The commission contended Biumenthal and the Ribbonew Corp. made patent infringement charges in bad faith, with the effect of substantially injuring or embarrassing competitors. The third complaint was against the Sanderson Adjustment Bureau, Inc., of Atlanta, and H. J. Sullivan, the firm’s president. The commission alleged they were using unfair methods in the sale of a collection system for the use of merchants, professional men and others in collecting unpaid accounts. Both the latter complaints also set Nov. 29 as the date for hearings.

WORKS REVIVAL AIDSJNDUSTRY Upturn Spurs Heavy Demand for Carefully Selected Bonds. Times Special NEW YORK, Oct. 31.—The uptrend in construction activity, which has persisted from week to week with only a few interruptions during recent months, is building up in some investment channels more than a suspicion that forthcoming industrial reports will carry convincing evidence that the long awaited resurrection of the durable goods industries is well on its way. Power output and carloadings lend considerable support to the belief. Based upon this analysis of the industrial trend, portfolio managers, as well as numerous large individual investors have been taking on a careful selection of industrial bonds, which combine a better than average yield with a chance for principal appreciation. From strict investment sources this buying has been of limited proportions, bond houses report, but because of a steady thinning of offerings, the move has been sufficient to give industrial bonds a strong market. Issues of machinery and equipment manufacturers are finding particular favor. Among some of the medium grade issues in this group the gradual price advance has added close to 50 per cent to the low quotations for the year. Traders more speculatively inclined have given their major attention to convertible issues of companies in this category, resulting in some unusual price performances.

OUTLOOK HELD GOOD FOR UTILITY INDUSTRY United Business Service Points to Five Favorable Signs. Times Special BOSTON, Oct. 31.—The outlook for the public utilities has improved considerably in recent months, the United Business Service said todayin its current review. The service cited five factors as evidence of the more favorable situation in this industry at present. These factors were: Rising power output, increasing earnings, pressure on rates lessening, leverage factor and lower capital costs. WHITE MOTOR SALES UP Times Special CLEVELAND. Oct. 31.—Dollar volume of the White Motor Cos. in the first nine months of the year was approximately $4,000,000 above the figure for all of 1934, according to Robert F. Black, president.

Busigraphs STEEL ingot PRODUCTION (aha. ibow & STEEL institute) 75 i > i _ < 50 *“*■ aa FH — r’Vi w a//'/, Ftn yy. 'A u 5 ? 5. g Z 7/ 'A A/ // ’'/D'ute;.. line is the past /, V / '// . / y JEN \ EARS AVERAGE Os// „ / / //V/'// THE SAME MONTHS /Yy/ SONDjrMAMJJA-S "rn*, pabk£d cop general distributors INCORPORATED INVESTORS

Automobile requirements have for some time been the backbone of steel activity. September production was more than double a year ago. It has been estimated that as steel production reaches the 50 per cent of capacity mark, steel companies can operate in the black.

Bank Debits Lose Status as Trade Activity Index, Economist Says in Study Transfer of Accounts of One Large Corporation Entirely Responsible for Sharp Rise in Clearings During June and July. BY A. L. JACKSON Editor Economics Statistics. Inc. NEW YORK, Oct. 31.—According to the Federal Reserve Board's index of manufacturing production, business activity reached its peak of tne year 1935 in January. It declined steadily from then through June and only showed a minor gain in July. On the other hand, bank debits, an indicator which many people have followed as a business cuitte during past years, continued to rise quite steadily, reaching their peak for the year to date in July. Business has increased quite sharply since July, yet bank debits have

PORKER PRICES LOWER ON DAY Generally 10 to 15 Cents Lower Despite Falling Off in Receipts. The pork market at the Indianapolis Union Stockyards failed to i benefit from a slight decline in re- | ceipts today. Prices were mostly 10 to 15 cents lower on the clay, : with underweights 25 cents lower to 50 cents higher. Receipts were estimated at 4000, compared with 4500 yesterday, and 161 were held over. In the sheep and lamb section receipts came to 2500, against 1500 yesterday. Lambs were steady to 25 cents lower, while slaughter ! sheep were 50 cents higher. HOGS Oct. Bulk. Top. Receipts. 25. $9.70%. 9.90 $9,90 5000 26. 9.65% 9.85 9.85 2000 28. 9.50% 9.70 9.70 6000 29. 9.55(5) 9.65 9.70 5000 30. 9.50® 9,60 9.65 4500 31. 9.40® 9.50 9.50 4000 Light lights. • 140-160) Good and choice ..$9.00® 9.40 Medium 8.25® 9.10 Lightweights. (160-180) Good and choice ... 9.25® 9.40 Medium 8 Ib'o 9.25 (180-200) Good and choice ... 9.35® 9,45 Medium 8.75® 9.35 Medium Weights. (200-2201 Good and choice ... 9.40® 9.50 (220-2501 Good and choice ... 9.35® 9.45 Heavyweights. (250-2901 Good and choice ... 9.30® 9.40 (290-3501 Good and choice ... 9.10® 9.30 Packing sows. (275-3501 Good 8.50® 8.75 (350-4751 Good 8.35® 8,60 (425-450) Good B.oo® 8.50 • 275-450) Medium 7.75@ 8.25 Slaughter pigs. (100-140) Good and choice ... 8.50® 9.00 Medium B.oo® 8.75 CATTLE —Receipts, 1000— (500-900) Choice $10.25® 11.50 Good 8.75® 11.00 Medium 7.00® 9.00 Common 5.00® 7.00 (900-1100) Choice 11.25® 12.25 Good 9.25® 11.50 Medium 7.25® 9.25 Common 5.25® 7.25 (1100-1300) Choice 11.75® 12.75 Good 9.75® 11.75 Medium 7.25® 9.75 (13001500) Choice 11.75® 12.75 Good 9.75®11.75 Heifers (500-750) Choice 9.25®1025 Good 7.75® 9 25 Common and medium 4.25® 7.75 (750-900) Good and choice ... 8.25®10.50 Common and medium 4.50® 8.25 Cows Good 5 25® 6.25 Common and medium 4.25® 5.25 Low cutter and cutter 3.00® 4.25 E*ul!s, good 5.50® 6.00 Cutter, com. and med. bulls... 4.00® 5.50 VEAI.ERS —Receipts, 700— Good and choice $10.00®11.00 Medium 8.00®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 4.50® 6.75 (800-1050) 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. 2500 Lambs. 90 lbs. down, good and choice 8.75® 9.50 Medium 7.00® 7.75 Ew'es. (90-125) Good and choice ... 4 00® 5.00 All weights, common and medium 3.50® 4.50 (120-150) Good and choice ... 3.00® 4.00

Other Livestock (By United Press) CHICAGO. Oct. 31.—Hogs—Receipts, 16.000, including 6000 directs; generally 15 to 25 cents lower than Wednesday’s average; (op $9.35; bulk 180-250 lbs.. $9.20 ® 9.30; 260-300 lbs.. s9® 9.25; most 140160 lbs.. 58.75®9, few $9.10; best sows, 8.50. Cattle—Receipts. 6500; calves, 1200; fed steers steady to 25 cents lower; inbetween grades off most; all kinds unevenly 25 to 50 cents under early in the week; middle grades showing mavimum downturn; common killers supported somewhat by Stocker demand, mostly steady; not much beef in run and killing qualitv plain; best light steers, $12.75;: she stock slow; steady; bulls firm and active; vealers scarce; steady at $lO down; stockers and feeders slow; about 25 cents louder than early in the week: mostly $6.25® 7.75. Sheep—Receipts, 7000; fat iambs uneven; mostly 25 cents lower; sheep steady; feeding lambs scarce; natives predominating; bulk. $9.25®9.50; fed comebacks practically abstnt; range lambs scarce; one load rather plain tdahoes, $9.25: slaughter ewes eligible, $3®4.50.

BANK OF ITALY GOLD SHOWS FURTHER DROP Decline of $7,201,680 Reported in Ten-Day Period. By United Press ROME, Oct. 31.—Millions of lire in gold continued to pour out of Italy in the last two weeks to pay for supplies and war materials for the African campaign, the latest statement of the Bank of Italy revealed today. Italy’s gold stocks have sunk to a reserve equal to only 20.05 per cent of the paper money in circulation. Although Italy has been losing gold steadily for several years, since May 31 gold stocks have been depleted from nearly 6.000.000.000 lire to less than 4.000.000,000 lire. As of Oct. 20, the Bank of Italy statement today showed that gold supplies were only 3,936.500.000 lire. That was a decrease of 83.800,000 lire ($7,201,680) from the total of Oct. 10. and a decline of 1.882.700,000 lire ($152,686,970) from the total on May 31. last. NEW OFFICE OPENED Lincoln National Life Starts Branch in Hartford, Conn. Times Special FT. WAYNE, Oct. 31.—The opening of state agency offices for the Lincoln National Life Insurance Cos. in Hartford, Conn., has been announced by A. L. Dern, vice president and manager of agencies. John G. Havens, formerly head of the department of issue at the Lincoln National Life home office in Ft. Wayne, will manage the new office.

Farm Product Sales Gain Sale of $636,000,00 worth of farm products in September, an increase of $59.000,000 over Anpust, is reported by the Department of Ac/riculiurc. The improvement, it was said, was better than usual.

PAGE 15

declined. Many people nho have relied upon the bank debit figures as a guide have observed this and have asked the question: “Why do these two indices diverge V Bank Debits Misleading It is well that those interested in studying business trends know | the answer to this question, because many, in fact the majority, of the weekly business activity indices conj tain bank debit figures as one of their components. Bank debits are not a good indicator of business activity. For example, the rise that occurred in this index during the latter part of June and July was caused almost entirely by the transfer of accounts of one large corporation doing business in one Federal reserve district of the United States. This caused an unusually sharp rise in the bank debit figures during that period, not only in the Federal reserve district where this corporation was located, but also in %vo other reserve districts where this corporation had insurance and banking connections. Not Increased Activity The entire cause of the rise through the June-July period in bank debits was accounted for by this single development. The rise did not signify any increase in business activity. Another factor, which makes bank debits a poor business guide, is the fact that many manufacturers and wholesalers purchase goods on consignment or with some provision which calls for payment 30. 60, 90 days, or perhaps longer, after the purchase has actually been made. Thus any business activity index which contains these figures lags behind actual activity. A third reason why bank debits are not a good guide to business trends for the nation as a whole is that during the past several years many banks have been liquidated. There are large sections of the country which formerly had banking facilities and which now depepd almost entirely upon cash or money in circulation.

CAR BUILDING PLANS ANNOUNCED BY ROAD Pennsylvania Program to Cost About $30,000,000. Times Special PHILADELPHIA, Oct. 31. The Pennsylvania Railroad today announced plans to build 10,000 new freight cars of various types and to convert 1000 additional cars into up-to-date freight carrying equipment. Representing one of the most important and extensive car-building programs ever undertaken by the road, the new and converted cars are expected to cost approximately $30,000,000. The last large order for Pennsylvania railroad freight carrying equipment covered 7000 automobile and . box cars built early in 1934 as part of the road's PWA improvement program. SUGAR MELT HIGHER Time* Special NEW YORK, Oct. 31.—The sugar melt of 13 domestic refiners from Jan. 1 through Oct. 19 totalled 3,340,000 long tons, contrasted with 2,995,000 tons in the same 1934 period, according to figures issued here today. Travel Service Steamship, Tour, Bus, Airway Tickets Bankers Trust Cos. INVEST with Ist Mortgage Security on Improved Real Estate BUY Building & Loan Shares

-WE BUY, SELL, and gladly furnish quotations on: Bonds of the United States Government, Its Territories and Insular Possessions Home Owners’ Loan and Land Bank Bonds Indiana Municipal and Corporate Securities General Market Securities Indianapolis Bond and Share Corp. 129 EAST MARKET STREET

Thomson & McKinnon MEMBERS NEW YORK CHICAGO !. ork k *"*•■"*• TOROYTO Nf>w '° rk Curb Exchang® IUKUA 1 U New York Cotton Exchanse BOSTON I New York Coffee and 8 gur Exchange SOUTH BEND • I New Urloan* Cotton Exchange ET WAYYP Chicago Stork Exchange PVA YCVII IP Chieago Board of Trade ’ A*Nh\ ICLE Winnipeg Grain Exchange llldiatiapolifi (JfTICC I And Other leading Exchange* 200-214 Circle Tower LI. 5501

SOLDIER BONUS CASTS SHADOW ON BOND TRADE Market Convinced Action Is Due When Congress Meets in January. Timrß Spccini NEW YORK. Oct.. 31.—With the government bond market reasonably well cleared of nearby storm clouds, enthusiasm suffers the constant restraint imposed by fear of anew squall when the proposition of soldiers’ bonus is revived immediately after the turn of the year. It is more than a fear, in fact. It is a generally accepted conviction. Some far-reaching measure on the bonus question is confidently expected from next year’s Congress, and the proposition is expected to present itself in troublesome form before January gets very far along. Government bond dealers are not splitting hairs on the question of which method Congress may elect to employ for bonus distribution to the veterans. They believe that the ultimate effect will be pretty much the same, whatever the method may be. Debt Would Increase Payment by bonds, or borrowing through a bond issue in order to pay with cash, would lead to floating the same amount of additional Federal debt and the influence on the status of Treasury securities would vary little, regardless of the choice. The bonus burden is something looked forward to as inesrapible as a New Year's gift for 1936. because it is conceded that Congress and the Administration virtually bound themselves to attend to the detail in exchange for its amicable omission from the crowded 1935 calendar. The government bond market is running along carefully because it knows that hurdle lies not far ahead. A Dealers’ Market In the meantime, the government bond market is too much a dealers’ market to suit the dealers themselves. They'd like a little more outside participation—from the banks, for instance. The trouble with a professional market in government bonds is that it is too highly sensitive to rumors and too encouraging to the producers of rumors. Under existing conditions, the field is always fertile for a report that the next day or two is likely to bring announcement of anew offering by the Treasury. The most baleful report, of all that can spoil an otherwise perfect day for government bond dealers is a hint that the Treasury is planning another auction sale. When the market gets strictly professional it is largely a process of pulling bids and waiting for rumors to subside.

OFFICE SPICE Taa money value of offu-e apace is notdeermined by ibe number 01 square feet but by he number of useable square feet We invite you to use our custom-built service. KLEIN; KUHN,, PROPERTY MANAGEMENT Lincoln 354 S INDIANAPOLIS