Indianapolis Times, Volume 47, Number 210, Indianapolis, Marion County, 11 November 1935 — Page 26

Trends Evils Sought in Investment Trusts. BV JOHN T. FLYNN

NEW YORK. Nov. 11.—As Judge Healy of the SEC prepares to investigate thp investment trust, it is perhaps a little earlv to talk about remedies. H will doubtless lay his finger upon the ev.ls. The lemeriies may be concerted later. But the abuses of the investment, trust are old. Perhaps millions of

people own shares in them And this may, after all, be an excellent moment to direct attention to some of the proposals which have bpeii made for remedying these abuses. Primarily t h e abuses of the investment trust grow out of a very old evil—

the indiscriminate, loose powers with which the corporation has bpen invested to buy shares in other corporations. The investment trust is ostensibly a corporation formed to invest in I he securities of other corporations. It may, and indeed it should, buy these securities lor investment purposes. But in fact it may buy them for a variety of reasons. Merely as a catch-all for the issues 01 an investment banker. Or to obtain control of the corporation, for instance. M tr m IMFTEEN years ago the president of the American Bar Association, speaking to the Association—and he was a distinguished corporation lawyer, not a Bolshevist—said the time would come when Americans would regret the day they permitted one corporation to buy the shares of another one. Out of this has grown the evils of the holding company, the exploitation of the resources of banks and insurance companies and a host of corporate abuses. This will be difficult to regulate. Corporations are now chartered under state laws. There are a number of states known as “charter mongering” states, which make a business of issuing corporations charters upon the easiest terms, tinder which corporate managers can do almost everything in the world. The Federal corporate charter is, of course, the only way in which this can be stopped. But with the courts running riot, in the matter of restricting the Federal government, one well may wonder if this can be achieved.

IDO not mean we should go to the length of preventing one corporation from buying the securities of other corporations. Insurance companies, banks, savings banks seek investment in the bonds of corporations. But they might well be prevented from owning their common shares. But in the case of the investment trust a definite limit might be placed on share ownership bv corporations. Any one corporation could be denied permission to buy more than, lei us say, onehalf of 1 per cent of the outstanding shares of any investment trust. Any one corporation could be refused permission to invest more than a minor fraction of its on capital in the shares of an investment. trust. This would do away with the control of investment trusts by other corporations. Also, any investment trust could be denied permission to invest more than a very small fraction of its assets in the stock of any other corporation or be allowed to own more than a small fraction of the shares or another corporation. This would do away with single investment trusts as holding or finance companies in disguise. (Copyright, 1935. NBA service. Inc.) On Commission Row Quotations below subject lo change are average wholesale prices being ottered lo buyers by local commission dealers: Fruit Cranberries, early blacks. 35-lb. box. $4 Pears Michigan Bariletts. bushel. $3.25; Avocados, Florida, box. $3.50. Cantaloupe —California Honey news. $2.25: Casabas. $2.25; Persians, $2.25. D.iltanas 7 hands, a pound. s'jc. Persimmons Indiana. 12-qt. case. sl, Apples* Indiana .lona - halts. $1.255: 1.35. Summer Rambos. $1: Delicious. $1.50; Wealthy*. $1: Grimes Goldati, $1.35. Lemons -Sunkist. 3605. SB. Grapefruit Texas. 64s to 70s. $3.75; Florida seedless. $3.75. Limes —Mexican a carton 12s, 20c; Persian seedless a hundred. $3. Vegetables Beans, green, round stringless bu . $2.25. Beets Home grown, dor.. •’Oc. Cabbage—Not them Danish. 50-lb. bag. 85c Carrots- Home grown. 35c; new bulk, half bu.. 60c. Cauliflower—Michigan, crate. $1 50: Long Island, large crate. $1.50. Celery Michigan. wasbd end trimmed, extra large. 45c: jumbo, dor.. 45c. Cucumbers—Hothouse. 2 doz. box. $2.35. Kale—Home grown, bu.. 60c. Lettuce—lceberg. California, best. $5: home grown leaf. 15-lb. basket, sl.lO. Endive Ohio basket. 45r. Mangoes California grown, crate. $3.50(if3.75; small basket. 40c. Mint—Do/,., 60c. Mustard—Home grown, bu.. 60c. Onions —Indiana vellow. 50-lb bag. 90c: Indiana vellow. 10-lb. hag. 20c: western Spanish. 50-lb bag. $1 40. Parsley Home grown, doz 35c Peas Telephone hampers. $3 Potatoes Round Cobblers, 100lb bag. $165 Michigan Round White. 100lb. bag $1.50. Earlv Ohios. bu.. $1 6a: Idaho Russets. $3 40 Sweet potatoes Indiana. Jerseys, bu.. $1.50. Radishes—Ohio, buttons, dp/, baskets. 45c. Sage Do/ 45c. Spinach Broad leaf bu. 65c. Squash -Bu.. 75c. Turuins -New California, repacked. 10-lh. canon. $1.25.

ruriTs A\n vm.etabi.ks ,Sv United Press' CHICAGO Nov. It Apples —Michigan Mclntosh bn. Hrl,lo. Carrots—lllinois, bu.. 25 4? 30c. Sweet Potatoes—Tennessee, bu . 90c Beans Louisiana, bu.. 75c a (1.25. Cabbage—6o-70-lb. crates, 50w65c Peas California, bu. hampers, (2.504,3.65. Tomatoes—California luas. $1,254,2 15. Suinach—lllinois, bu., 25 msoc. Lettuce- Western. crates 5 dor.. *3.254.25. Cucumbers - Florida, bu , 52.75®3.50. Celory—Michigan, crates, 40m'60c. Cauliflower Michigan, crates. (5<- n 5t.25. Onion market 1 50-lb cratest. Western Valencias. 5t.22: Illinois Yellow s, 65 u 90c: Colorado Yellows. *l.lO Produce Markets Tha prices quoted below art paid for stock gathered In the country, while delivered in Indianspolls the price will be 1 cent higher: Heavy breed hens. 17c: Leghorn breed hens. 12c: springers. o*er 4’i lbs, 17c; under 4'j lbs. t 16c; old cocks. 9c: Leghorn broilers 1 1 > lbs and up lie; Leghorn springers. 12c: ducks, white. 4 lbs and up. 8c: geese full feathered and fat. 4c. old guineas. 15c; voung guineas, I'j lbs. up 15c: No. 1 strictly fresh eggs, loss of 25c; pullet eggs. 18c. Each full case must weigh 55 lbs. gross, a deduction of 10c a pound under 55 lbs will be marie Butter. No. 1. 72' „■#.33' -c: No. 2. SO’.-gSl'ac: butterfat 2*c. Quoied ißv United Press' CHICAGO Nov. 11 Potatoes S'.polv moderate! demand light: markei sf.ady; Idaho russet Burbankv $1 854:2 commercials. 51.654! 1.75: U S. No. 2. *1.454,1 50: Nebraska Blt-s Triumphs tl 45 a l 50: Wisconsin round whites, 51.054i1.15: commercials si. lfl; Michigan Green Mountain 51.35: South Dakota Earlv Ohio SI. 10 Minnesota ana North Dakota Cobbler*. SI 25 Red River Ohio* 51.254, 1.35; North Dakota Bliss Triumphs. Sl3o-.i1.35; Minnesota Earlv Ohio.* SI 12’ Colorado McClures. *1604,180 Arrivals. 195; on track. .33*. shipments. 779 'Saturday'. CLEVELAND. No\. 11 Butler Market Arm: extras. 34c: standards. 24c. Eggs— Unsettled: extra whites, 38c; current receipu, 27c; pullets. I4c. Lne poultry iak; colored fowl 23c ducks, white. 5 lbs. and up 18?, 19c: small. 15c: turkeys, youre. No. 1. 8 lbs and up. 24c No." 2 If- p !l'* !oe * < 100-lb. bags. Mame. $1,354: ]'*• North Dakota, 51.25 iaano, (2 35fe2.00. i

PAGE 26

HOGS CONTINUE UPWARD TREND AT CITY YARDS Prices Again Move 10 Cents Higher: Cattle. Veals Unchanged. A strong demand prevailed in hog trading at tne Indianapolis Stockyards today and prices again continued to surge forward, nearing the $lO level. The majority of classes were generally 10 cents higher than last week's close. The moderate increase w'as registered in face of a normal supply on hand. Receipts today were estimated at 4000, while holdovers were reported at only 74. Asa result of the slight increase, the top price paid for good and choice grades moved up to $9.75, the highest in seevral weeks. The general bulk of 160 to 250 pounds cashed in at $9.65 to $2.70, while heavy bulchpr classes, ranging from 250 lo 325 [rounds, brought $9 25 to $9.35. Extremely light slaughter pigs, scaling from 100 lo 160 pounds, sold at $8.95 to $9.50. Packing sows held at $8.25 to-58.75. with a few at $9.

John Flynn

Trading Dull in Cattle Trading was dull and unchanged in the cattle market, especially cn steers and lieifers. Few classes, consisting of small lots and odd heads sold at $8.50 down. Most of today's supply consisted of cows at steady prices. Bulk ranged from $4.50 to $6. Bulls brought $5 50 down. Receipts numbered 400. Vealers also remained stationary, with bulk of good and choice kinds selling al $10.50 to sll. Receipts were 300. The lamb market was steady to slightly higher. Bulk of better grade ew'e and wether classes brought $9.25 to $lO. Bucks were discounted from 50 cents to sl. Slaughter sheep were largely 25 cents lower, with bulk selling at $2.75 to $4.75. Receipts were 300.

HOGS Nov. Bulk. Tod. Receipts. 5. S9.3s<ii 9.45 $9.50 4000 9.30 r/ 9.40 9.45 4000 7. 9.35® 9.45 9.50 3000 8 9.40® 9.50 9.55 3000 9. 9.55® 9.00 9.65 1000 11. 9.65® 9.70 9.75 4000 Light Liahlo. 1140-160' Good and choice $9 204/ 950 Medium 8.604i 9.25 weights. < 1 CO-1801 Good and choice ... 9.50® 9.65 Medium . . 9.00® 9.50 1180-2001 Good and choice . 9.40(0 9 70 Medium 9.1041 9.60 Medium Weights i "00-2201 Good and choice . 9.65® 975 ■ 220-250' Good and choice . 9.60® 970 Heavyweights. '250-2901 Good and choice .. 9.55® 9.65 • 290-3501 Good and choice . 9.25® 9.55 Packing Sows. (275-3501 Good 8.65® 9.00 1350-425* Good 8.50® 8.85 '425-4501 Good 8.254(1 8 60 1275-450) Medium B.oo® 835 Slaughter Pigs. 1100-141)' Good and choice . 8.954/ 9.1 P Medium 8.20® 9.00 CATTLE Receipts, 400— 1500-900) Choice $lO 25©11 50 Good 8.75® li 5)6 Medium 7.00® 9.00 Common 5.00® 7.00 ■ 900-1100' Choice 11.25® 12 25 9,o®<* 9.25® IT 50 Medium 7 25® 9 25 Common 5)25® 7 05 'llOO-1300' Choice 11 75@>12 75 Good 9.75 11.75 Medium 7.25rr 9 75 'I3OO-1500' Choice 11 754/ 12 75 G°®<l 9.75® 11.75 Hfilfru (500-7501 Choice 9 25®10 25 Good 7.75® 9 25 Common and medium . . 4.25® 7.75 ■ 7ao-9flol Good and choice ... 8.254/ 10.50 Common and medium 4.50® 8 25 1 Cows Common and medium 4.254/ 525 ; Low cutter and cutter 3 004/' 4 25 I Bulls, good .. s.so® 6>,0 ! Cutter, com. and mod. hulls .. 4.00® 5.50 VEALERS —Receipts. 300— Good and choice $lO 50(4/11.00 MedMim . 8.50® 10.50 cull and common 5.504?' 8.50 Calves I2no-500l Good and choice ... 7.004? 950 Common and medium 4.004/ 7 00 „ —Feeder and Stocker Cattle i.->OO-800i Good and choice 6.75® 8 75 Common and medium 4.504/' 675 i 800-10501 Good and ciioice 7.004/ 8.75 Common and medium ... 4.504 c 7^oo Cows £ ood 4.00® 4,75 Common and medium . 3.504/ 4.00 SHF'F.P .4 50 LAMBS —Receipts. 300— Lambs. 90 lbs. down, good and Y} 10 'I' P $9 254/ 10.00 I “f m 7.504/ 9.25 '9O-1251 Good and choice 3.75® 4 75 Ail weights, common and meoium _ 3.254? 4.25 'l2O-150' Good and choice . . 2Y54/ 3.1a

Other Livestock (Bv United Press) nnn H^ CA i G ? N °. v ■ 11-—Hcgs— Receipts. 14 - ?2?-,i nc i ud ‘ n * 1000l 000 directs: fairly active So'aSn 'n' he 'sa h A : ; average; bulk •iona-n ,1. " 9 - 55; >P. *.60: few j9O-300 lbs., s9.lo<ft9.aO: most 140-170 lbs mood 0; b , est SO "L * B - 75 - C’attle—Receipts! 20.000: calves 3000: very liberal run fat teers ana yearlings here: earlv trade at ; general undertone 25c lower all through list, liberal .supply steers and vear- "}*?, l ’ ere Y lue to sell at 510.50CaH2.50: f®fL' tQ P 81- aO: several loads held at sl3both common and medium killers. Stockers and feeders, ail grade she stock tending unevenly lower: dressed beef mark"! sluggish: stockers and feeders weak to 2oc 'ower. She; p Receipts. 7000: fat lambs ?i P rn‘P* ? ct JV* : strong to 25c higher: sheep - long, feeding lambs firm: good to near il'£i S ' ' Ve i lllcl , f/d comeback lambs. ' I0 ;‘ .'-'■st held $10,254(10.35 and above sauxhier ewes. $3,404(4.75- merely good 45-lb. Fontana feeding lsftnbs, $9 FT. WAYNE. Nov. 11.—Hogs. 1030 c higher: lbO-180 lbs. $9.55: 180-200 lb= *Si !>O , : . 20°.22° lbs.. $9.45; 220-240 lbs . 240ihs° so't- $9 wn : fin o '.? 00 Ibs - *9.30; 300-350 lb $9.1-v 140-160 lbs.. $9.35; 120-140 lb> S9: 100-120 lbs.. $3.85: roughs $8 Vais' *6 25. Calves. $11.50. Lambs.' $5O ® ' LAFAYETTE. Nov 11.--Market lOfflSc Lo*J\ er v, J 8 lbs .950 a 9.60: 225-275 lbs 89.30419.40: 2(5-32.5 lbs $9 154( 9 -’5■ iin. 180 lbs.. $9,254(940: 109-140 lbs "*8754?9 lambs's9 $ down dOWn: C * lVfS ’ sl ° do " n: (By Times Speciali liL° U rnI ILLE ' , Nov U —Cattle —Receipts, nl'!' K U , l > moil v 4tee! ' ano cow stuff ligm butcher steers and' heifers scarcemarket moderately active, fullv steady auli llosp last ueek on all classes except sau age bulls; these strong to 25c higher; early bulk, common to m“riium giaae. light grass steers and heifers $5 25 4t .i° f i e loads steers. $8,75 with a few out at $7,754(8: small lot babv beef type yearlings, ss; bulk heel cows. $44i5practical top, ss.ao; good smooth heifer type cows quotable higher: low cutters and cutters mostly $3.254i3,75- most sausage bulls. $4 75vi5.25: best lieavies considered sa able at $5.50; most light beef tvne Stocaers and stock calves. $6418 tnt*nor to common light southern dairvhred stockers. mostly $44i5 Calves—Receipts 6.3 including 375 stock calves: market Meadv with last Friday; bulk good to choice graoes $9.50 hlO 50: medium and iower grades. $9 down Hogs—Receipts. 600: market, lac higher than Friday and Ssn'rti*' - top and bulk 150-240 lbs. $9.55: lb .'„ f 9OS: 800 lbs - UP $3 65: 160l.a lbs.. $9.05; 140-155 lbs . 58.20; 120-135 lbs. s..* a: sows. $7.20. Sheen—Receipts 300: lambs In heh' supple, quaiitv ' improved: mark"! fullv stead- • most better lambs $8.50i9 plainer grades including bucks mostly SS(,iB : |j*h t ' cu u* down to $4.50: bulk tat ewes $3.50 down. EXCHANGES CLOSED All commodity and security exchanges in the United States are closed today—Armustice Day. Live stock markets, however, will be open as usual. i

Abreast of The Times on Finance

WEEKLY AVERAGE 1923-1325 , , INCLUSIVE 100. LEGEND —i3A 1333 StE EiTINGOTIPROWCTION V. CON'ffRUCTiONTC^^?S7^!w?PbED*' iQO p * "-*■ -£!£.' —-4MC* :•*< ***_ .n stvyoc* >— VW- ■ C. 00 1.-;. oin hi min dm iit u tin!;;. j>iiuiiiiii_i.iiiHiiiiiiiHii:niuiJta*iiiiiiijj!iiiii. ii^YTTiyiyj t T PRODUCTION *. . _ iLUMBEPTPROOUCTION VBIYUMINOUSTCOAL*PRODUCTION\ ' i-- -■ ! 100 " [lO ■uxliiiiunLTiln.:i.n;i r.i.. p *0 fTOGHT'CAR-LOADINGS' COTTONfBECCIPTS jELtCTRIC’POWER'PRODUCTION*. I *OO jro jy I:- —fgglglSSl 7 /, ;riSMtR,5 ~ WHQ t-ES^-C pfl^'| HPtX BONDTPRICES" 4 *° ** ■■ nl 11 ni**iliTi li 1 11. • 1111 ■i. 111111! In 1. 11: 60 'o lS£3t I I ” I.Tf, il HTI *i * r*j* COMMERCIAL'*FAILURES' BANK'OEBITS'OUTSIDE’NEWIYORK'CITYt . BROKERS' Y —| I*o r = 100 : — —— ~ = *0 *>- * - = 100 1 - 1 1 - - -- gg - ... wesssßT.- steWH iiii.li 111111111 1 11111, 1 ■lli 1 1 40LJDtiJfTi!mi.ni,tSirr (T, id BANK LOANS f ITIME MON*Y RATES*! _ MONEY IN’CIRCULATION *J . **vo 100 >,* 1601 90 £ = h —&: - l 0 S— mi '"SisisiaiSfflisSisii^ ~c CANADA* *926 GOO f NUMBER* * OaILY/AVERAGE

ADA CONVENTION STARTS TODAY Government Credit Control to Be One of Chief Discussions. ft;/ In ili ll I‘rrs.i NEW ORLEANS. Nov. 11.—Government. control of credit will form one of the chief topics of discussion at the sixty-first annual convention of the American Bankers Association here this week. The vanguard of the association arrived in New' Orleans Saturday to complete details for the meeting. Early arrivals included Fred Shepherd, New York, executive manager, and Second Vice President Thomas K. Smith of St. Louis. General meetings of the convention will not begin until tomorrow but today there will be *2O group meetings discussing insurance. savings, economics, trusts, taxation, commerce, legislation, agriculture and public relations. President Rudolf S. Heeht of New Orleans declared the banking act of 1935 would come in for close study by delegates. He said some, bankers are satisfied with the new' legislation, while many others oppose government control of credit. United States Senator Carter Glass of Virginia, authority on bank legislation, was scheduled to speak today, but reports from his home said he would be unable to attend because of ill health. Hoosier Bankers Attend More than 50 Indiana bankers, wives and friends are in New Orleans to attend the sixty-first annual convention of the American Bankers Association. TRADE TOUR PLANNED Chamber of Commerce to Sponsor Trip to South America. The Indiana State Chamber of Commerce is planning its second annual trade promotion and goodwill tour to South America, departing from Indianapolis by special train for New York, Feb. 9, it was announced here today. The trip and cruise will last approximately 49 days, returning to Indianapolis around March 27, William _H. Arnett, managing director, stated. The manufacturers delegation will be headed by John E. Fredrick of Kokomo, president of the State Chamber of Commerce.

MOVE TNSITRANCE OFFICE Offices of the Smith Bros. Insurance Agency, Inc., have been moved from the Insurance Building to 746 Consolidated Building, Charles E. Smith, president, announced todav. An increase in business made it necessary for larger quarters, it was said.

Dividends Declared Dividend rates are given in dollars and cents unless stated otherwise. Company— Rate Per and Payable Close Am RadAStd p 1.75 Q Dec. 2 Nov. 21 Hollinger Cons Mines .05 M Dec. 3 Nov. 15 Hollinger Cons Mines- .05 ex Dec. 2 Nov. 15 Miss Pw&Lt $6 p .05 Nov. 30 Nov 15 Nor Pipe Line .25 sa Jan. 2 Dec 13 Archer-Daniels-Midland .25 Q Dec. 2 Nov 21 Archer DanielsMid’.and .25 spe Dec. 2 Nov. 21 Money and Exchange TREASURY STATEMENT tßy United Pressi, WASHINGTON. Nov. 11.—Government expenses and receipts for the current fiscal year to Nov. 8 as compared "- : th a year ago: This Year. Last Year Expenses $2,817,865.404 18 $2,511,834 860 69 Receipts . 1.331.410.288.38 1 329.924i915.73 Deficit 1.486,455.115.50 1 181 90c 944 96 Cash ba'. 1.472,475.416.32 1.708.274 807.85

Busigraphs

CRUDE RUBBER CONSUMED IN THE UNITED STATES (AUMEA MANUFACTUAEAS AsS*n) !:§§! Hill 2 V///// V, -W P ' 58S AVTXAGE OF-/-T .. Z /.' V. Y; 'A THE SAVE MONTHS A'/, - SONDJFMAMJJAS I mi THE PAOKE9 COAP. DISTRIBUTORS incoapoaateoinvestoas

The amount of rubber consumed in the first nine months of 1935 exceeded by 5 per cent the consumption in the corresponding months ot 1934. and went ahoptd of then 10}ear monthly average by 22 per cent.

INDIANAPOLIS, MONDAY, NOVEMBER 11, 1935

WEEKLY BUSINESS INDICATORS

Neutrality Never Given Attention Before 1914 Outbreak of World War Hailed by Business Men and Bankers as Magnificent Opportunity.

BY RUTH FINNEY Times Special Writer WASHINGTON. Nov. 11.—Economic sacrifices to preserve neutrality. widely discussed today, were given no thought by the United States in 1914. The outbreak of the World War was hailed by business men and bankers as a magnificent opportunity to increase this country's foreign trade, and the Wilson Administration quickly approved emergency measures to that end. Last Oct. 5. on the other hand, President Roosevelt warned that persons engaging in transaction of any character with Italy or Ethiopia did so at their ow'n risk. New York shipping men protested, but on Oct. 10 Secretary Hull reiterated the warning. The day before Germany declared war on Russia the New' York Times, in its editorial columns, began saying that a European war “ought to stimulate our exports and give employment to our wage earners,” Denies War Talk On Aug. 2 President Wilson denied he had said a war in Europe would mean a boom in the United States, but on the same day he conferred w'ith Oscar W. Underwood. Democratic leader of the House, about liberalizing our ship registry law's to protect our foreign commerce. It was decided to press a bill allowing vessels to obtain American registry even though they had already been in service more than five years. Henry Clew's, New York banker, said: “The w'ay to stop the threatened wholesale butchery is for the world's bankers to combine and agree not to advance the people's money, of which they are trustees, to these plumed qmperors on horseback or their generals or soldier followers.” His statement got a twoinch notice. On Aug. 3 Admiral Dewey commented on the opportunity afforded the United States to get its share in the carrying trade of the world.

o -5 <X3 “HQ I _! =is .1 a P:o Cl - o i_ 2 8 TII ~£ cn U .E t O <D

Your New P But if you’n agains BOWES

I John C. Mitchell, Denver banker, was quoted, as to the manner in j which America “will profit by sale | of manufactures and crops to belligerents.” Later directors of the Chicago Board of Trade asked Wilson to try to induce Britain, France and Germany to declare grains and proj visions non-contraband. Grain shipments were choking the port of Galveston. Steel prices began to harden. The New York Merchants Association asked that action on three pending anti-trust bills be postponed because of war conditions. Historians agree that it was American loans and American commerce more than any other factor that resulted in a declaration of war by the United States in 1917.

AGAin m PRIZf fOR Bemitif GO£S TO DfIIVITI nil |||j py | Iplll sjjm |jl Hj r famous Silver Streak i* aj:ain the I W I H ■■ A smartest motor styling, for 1936 it adds distinction to cars that are even more beautiful than fps§ $ m m mm tnrhnnge tc it ho 11 Hotter). >tnndarri group .zV>; • (’rnrcfjl Uofort 1 aloe. || SEE THE SILVER STREAK PONTIAC SIXES AND EIGHTS AT: M COMPANY I. W OLF AUTO COMPANY 1 “ MfeK, DIAN STREET 555 N CAPITOL AVE. DE HART & LANDIS, INC * WM. ( ARSON aa, E. WAMIINGTON STREET 730 VIRGINIA AVE. THORNBURGrVOLLRATH MOTOR CO., INC.

N. J. SALES TAX REPEAL VIEWED AS INSPIRATION Other States With Such Problems Expected to Start Lining Up. BY NED BROOKS limes Special Writer WASHINGTON, Nov. 11.—New Jersey's recent repeal of its sales tax is viewed here as a likely stimulus to similar movements in other states where opposition to such taxes is rising. New Jersey's repealer leaves 23 | states with sales taxes, each differing from the others in rate, scope :or method of collection. The aifi Acuities encountered under ihe six 1 general methods of collection are disclosed in a study just issued by ; the Commerce Department's Bureau of Foreign and Domestic Comi rnerce. Under five of the six systems— j which involve the use of coins, tokens. coupons or receipts—existence of the tax is impressed on the consumer each time he makes a purchase. Under the sixth system, the tax is hidden. Tax Legislation Unpopular There is certain to be a revival of agitation for a Federal sales tax in the next session of Congress, although ciiances for success appear remote. Tax legislation is always unpopular in an election year and the sales tax is especially controversial. Should the AAA processing taxes be held unconstitutional, congressional tax advisers believe that only a modified sales tax or increased income taxes in the lower brackets could make up the revenue needed for continuing benefit payments to farmers. The Commerce Department study of sales taxes w'as conducted by H. P. Warhurst as a. service to retailers. He found these general methods in vogue: Retailer Collects Tax I. Retailer collects tax as part ot purchase price without making lection a distinguishable part of the transaction. Here the tax is hidden, and it is found difficult to insure an equitable shifting of tax by the retailer. Also, it is difficult for states to check up on the retailer, and for the latter to check up on himself. i 2. Tax calculated on each transaction according to a fixed sched-1 ule and paid by the purchaser in coin. Here there is a difficulty in perfecting brackets or “breaking : points" to make the fixed percent- i

Bond Sales Cross Billion Mark Fond gain* on the Xew York Curb Exchange for the year to X or. 6 were sl, com pa red to the fvl! year's total in of $1,015,639,000. Last year tras the first time that the billion dollar mark was crossed.

HEADS BANKERS

Rudolf S. Hecht

President Rudolf S. Hecht of the American Bankers Association will give the keynote address today at the beginning of the sixtyfirst annual convention of that body in New Orleans.

age of the tax apply equitably. Here. too. it is difficult to determine how much the retailer owes the state. 3. Same as Method 2. except that purchaser receives a prepaid tax receipt. This enables the state to collect the tax in advance, but the difficulty of fixing equitable brackets still exists. Tax Paid With Coin 4. Tax calculated on each transaction and paid with coin and fractional cent tokens. This permits more exact collection of the tax but involves coinage expenses to the state and difficulties of determining the retailer’s liability. It also involves the nuisances of token change-making, complicated accounting and non-conformity with common business machinery such as cash registers and vending machines. 5. The consumer buys a prepaid tax card, which the retailer punches for the amount of the tax. The number of tax cards purchased indicates the retailers’ liability and more exact collection is thus possible, but theh nuisance of separate payment still exists. 6. Consumer buys prepaid tax coupon book and tenders coupon with the purchase price. Computation of the retailer's liability is facilitated, but the state has printing expenses and the consumer and retailer have the inconveniences of handling the coupons. The department did not undertake to say which method involves the least difficulty in administration or the fairest means of imposing the levies on the purchaser.

AAA CORN-HOG PROGRAM FOR 1936 DRAFTED 40 Agriculture Experts Draw on Previous Experiences. Bit f 'dilrd rrr ** WASHINGTON. Nov. 11. —The AAA's consulting specialists on corn and hog growing met Saturday to draft a final recommendation for the 1936 corn-hog adjustment program. The group of 40 farmers and state agricultural experts completed a week of consideration of farm problems developed by the two former programs. The meeting which lasted from eight to 10 hours a day showed the consultants would probably closely follow the tentative proposals of the AAA. Earlier Programs The farmer members of the committee have all been connected with administration of earlier programs. The group was expected to make the following recommendations to Administrator Chester C Davis: Provision be taken against excessive corji production in 1936 and 1937. Allowance of an increase in next year's pig crop, at least as large as would take place without adjustment but prevention of unusual hog increases in 1937 by retaining cuts in corn acreage. A limitation of corn acreage in 1936 to 95.000.000 acres which would require all contract signers to cut, their base acreage approximately 20 per cent, and an acreage reduction in 1937 of 25 per cent. Same As Base Y’ears Permission to raise as many hogs as during the base years, 1932-33, with the accompanying suggestion of continuing benefit payments at approximately last year's level. This would result in producers receiving $1.25 to $1.50 as bounty for each hog The contract last year provided a payment of sls a hundred head for a 10 per cent reduction. Requirement that the contracted acres be used for soil improvement and erosion prevention purposes. Elimination of the silage order under w'hich silo contents had to be maintained at the 1932-33 level. Abandonment of plans for differential adjustments in contract acreage between localities. The probable increase in hog numbers and a. further regulation requiring production of a minimum amount w'ere seen as attempts to set asida consumer protests against high pork prices.