Indianapolis Times, Volume 47, Number 225, Indianapolis, Marion County, 28 November 1935 — Page 15

Trends \ A A I ‘rocesp- in g Tax Issues Confuse Public. nY JOHN T. FLYNN VTESV YORK, Nov. 28.—The is- -*• ’ sups raised in the AAA pror-e<-finz tax rases are, as so often happens in legal matters, a bit confusing. Thf AAA has undertaken to rio several things. First, it. made agreements with farmers to limit their rroo acreage arrording to settled schedules. Second as an inducement to do

this the AAA paid the farmers certain specified sums as henefif. Third, the money for these benefit payments was to be raised b\ imposing special taxes on processors; that is. on the manufacturers who used the crops fecied in their production. There is no

John Flynn

question of the AAA's right to make the agreements with the farmers, , nor of its right to pay the farmers for their reductions. These points j are not involved in the suits. If, j therefore, the AAA suits go against I the government, it might, by appropriate legislation, go on with its reduction program and Us benefit payments. nan BUT this question involves an o’d and very thornv onp—that is, the limits on the taxing power of the government. Apparently there , is no limit on the extent to which the government may tax, even to the point of confiscation. But the courts have held that the tax must be a tax. a levy raised lor revenue purposes. It may have certain regulatory characteristics, i You can not lay a tax without pro- j during certain consequences in th business taxed Therefore the consequences produced, even though they destroy the business, will noi make the lax illegal, provided it is also laid for revenue purposes, Ne it is contended that a tax like the process tax is not laid lor ! revenue purposes. The same conlent ion is made with respect io the j Guffey bill. There all coal producers are taxed 15 per cent of the value of all coal mined. But 90 per rent of the tax will be remitted to the taxpayer if he joins the code authority and abides by its rules. n n n HERE it is plain that if the law work= as intended there will he practically no tax. The tax is ; laid for regulatory purposes unhand not for revenue purposes at all. Therefore it is bring attacked as illegal. So the processing tax is attacked as a means, not of providing revenue for the government, but of raising larni prices, increasing the revenues of the growers and adding nothing to the revenues of the government itself. The government becomes a collector of a charge against flour for private persons | and does it under the guise of taxation. If lhe Supreme Court ultimately derides against the AAA. the government could go on with its AAA program by paying benefits out of general tax funds. iConvriebt. inis. NF4 Sr>rvirr Inc.l 12 MILLION DEBENTURE BOND ISSUE OFFERED International Cement (nip. Seeks Buyers of Securities. Times Sprrinl CHICAGO. Nov. 28. —An issue of sl2. non .non 10-year convert ible debentures, dated Nov. l. 1935. of International Cement Cnrp. has been offered to the public through an underwriting group headed by Hayden, Slone & Cos., at was learned today. The debentures will be convertible into common stock of the company 1 the following base con- | vers, i prices per share: C and after Jan. 1. 1936. but p,,or to Jan. 1. 1937. $35; on and after Jan. 1. 1937, but prior to Jan. 1. 1941. S4O; on and after Jan. 1. 1941, and up to but not including Nov. 1. 1945. $45; unless previously 1 redeemed. The offering price will he inn per cent plus accrued interest to date of delivery. Tire conversion price of the debentures is subject to an adjustment in cash on account of interest accrued on the debentures surrendered and current dividends on the common shares The conversion prire is also subject to adjustments designed to protect the debenture holder against dilution caused either by the issuance of additional shares of the common stock or by any .subdivision of the stock.

B. & 0. CARLOADINGS CLIMB DURING WEEK Reports Increase of 3228 Cars for Period Ended Nov. 23. 3 <>'• Special BALTIMORE. Nov. 28— Carloadings on the Baltimore <C- Ohio Railroad for the week ended Nov. 23 totaled 40.711. of which 26.970 were loaded on line and 13.741 received from connections, it Was announced today. This was an increase of 3228 cars loaded over the same period of last year, when the total was 37.483 cars, consisting of 25.381 cars loaded on line and 12.102 received from connections. For the previous week the total number of ears loaded was 41.187. of which 26.138 were loaded on line and 15.049 received from connections. BUDGET DEMAND CUT Timr Special CHICAGO. Nov. 28. Declaring county pay rolls can be reduced without. impairing services. Cook County Commissioner H. Wallace Caldweil demanded of the board's finance committee today that 1936 county expenditures be kept within the estimated revenue of $18,051,429. or $2,277,022 below budget requests. RFC ADVANCES MONET I Special WASHINGTON. Nov. 28—A hundred million dollars has been advanced to the Commodity Credit Corp to make loans to fanners on the 193$ rorn crop at 43 cents a bushel, according to an announcement by Jesse H Jones, ''hairman cf the Reconstruction Finance Corp.

ELECTRIC BOND CASE IS THIRD COURT TANGLE Holding Company Suit to Test Constitutionality of New Act. M RI TH FINNEY Tmif* Special Writer WASHINGTON, Nov. 23. - The Government's suit against Electric Bond A- share to test the holding company act makes the third time in the last few years that the two have tangled in Federal courts. In each previous scrap the government i won. Elect Share and fied the | Federal iTade Commission when the latter began investigating the financial affairs of holding companies. It refused to open certain of its hooks to commission examiners. Eventually it was forced to do so by a Federal court. The second clash, between the Government and a Bond A: Share subsidiary involved constitutionality o[ the Federal water power act. The Appalachian Elec'ric Power Cos. defied a ruling of ‘he Federal Power Commission that it could not build a power project on New River without subjecting itself to regulatory provisions of the water power art. The courts handed down decisions that were a substantial victory for the power commission. Second Largest Holding Firm By most gauges, Electric Bond A: Share is the second biggest holding company group in the country. and it is allied in various ways with the biggest, group, the Morgans’ United Corp. Electric Bond A' Share controls companies producing 13.6 per cent of the total electric energy generated, and United Corp. companies produce 19.8. Thus the two control one-third of the country's light and power. Each company owns stork in the other, and both own substantial amounts of stork in Commonwealth A Southern, American Super-Power Corp. and Columbia Gas A: Electric. George H. Howard, president of United Corp.. is a director of Electric Bond A- Share, and sits w ith’ C. E. Groesbeck. chairman of the board of Electric Bond A- Share, on boards in which both groups are interested. Serves 13 Foreign Countries Electric Bond A z Share operates in 36 states, serving 2.765.000 familics in about 5000 cities and towns. In addition it, serves 13 foreign countries, from Mexico to India. Immediately under it are three other large holding companies, American Power <te Light. Electric Power & Light and National Power A Light. Under each of these | are numerous subholding and op- j crating companies. The trade commission found write-ups in the Bond & Share system proper of $263,751,238. and another $88,492,660 of write-ups in j American Gas <fe Electric, of which j it owns 17 per cent voting control. The total, $352,243,898. was far larger than that found in any other holding company group. Practices typical of those which called forth the holding company act were cited to Congress hv the. 'rarie commission from Electric Bond A Share records. Report Warns Investors The commission's report said; "In 1931 Electric Bond A* Share received $9,870,312 or 30 per cent of its total earnings of $32,560,483, from fees for supervision, engineering, construction, auditing and special services. Practically all these fees w’ere collected from companies in the Elec- | trie Bond & Share group. "The total expenses of the com- j panv in 1931 were $7,510,399, of j which $5,547,510 was allocated to services rendered, exclusive of Federal income tax. The fees collected for services received during 1931 | were 177 per cent of the expenses allocated to services.” On behalf of investors in Bond & Share the trade commission said: “The methods used by Electric Bond A- Share Cos." . . . (to record receipt of stock dividends) . . . lend them- i selves easily to causing a very dp- i ceptivp statement of financial condi- | tion because 'unrealized income’ in thp form of stock dividends received j should not be recorded as income.” j RAW SUGAR DELIVERED i AAA Figures Show 5.716.297 Tons Delivered in 10 Months. Rn I nit cl Pc NS WASHINGTON. Nov. 28. The AAA today reported delivery of j 5.716.297 tons of raw sugar during the first 10 months of the year. Receipts from off-shore areas j from January through October i amounted to 3.810.082 short tons of I raw sugar. Production by cane sugar : refiners and beet factories during the 10-month period was 4,909.117 short tons of refined value.

Busigraphs

MONEY IN CIRCULATION (u.s. tbe>sur> cerr.'i e ■■■■— < 4 iiin | Sv ■! J // DOTTEI* LINE THE PA AT V i /V ' TEN \EARS A'* EP.V.E OF .X; /'/ /V % ’// y > THE SAVE VOVTHS //. y ' , 11 111111111 ONDJFMAMJJASO 1934 1933 7WE FAR*\£R CCRR GENERAL O:S7RBJTCRS INCORPORATED INVESTORS

llow much money have you in your pocket? If you are the average inhabitant of the United States you will have close to $45.50 in cash. Although the amount of money in circulation has dropped considerably from the high point of seven billion dollars in March. 1933, the amount is still large compared with the last 10-year average. One reason for this is that many have discontinued cheeking accounts and are paying bills with cash.

Abreast of The Times on Finance

INDIANAPOLIS, THURSDAY, NOVEMBER 28, 19.35

AGAINST TRADE PACT

i Opposing the trade agreement between the United States and i Canada, Senator L. J. Dickinson <R., la.), this week declared that he will seek repeal of the reciprocal trade bargaining act, automotically killing the new’ trade ; pact. BANK RECEIVERS WIN LONG FIGHT ♦ Huge Financial Transaction Finally Completed at Fort Wayne. lift I nil cl reus FORT WAYNE. Ind.. Nov. 28. Onp of the largest financial transactions in Fort Wayne history was completed today with the payment of $1,414,597 in cash to the receivers of Ihe Old-First and the First and Tri-State Banks by stockholders under a collective agreement. The payment concluded a lawsuit begun last February in which receivers of the banks threatened to enforce 100 per cent stock assessment liability on all stockholders. Litigation w’as averted through the formation of a stockholders’ committee which negotiated a basis of settlement with the receivers and with the government, which held securities of the defunct hanks. Principals in today’s payrnnt w’ere William T. McKay, Paul Mossman and Louis H. Moore, representing stockholders of the two Banks; Fred S. Hunting, representing the Fort Wayne National Bank as trustee: Harry G. Hogan, Guy Colerick end Walter Halmke, attorneys for Tie stockholders, and John M. Young and Herbert K. Dew’ees, receivers. ASKS DISTRICT COURT TO KILL UTILITY ACT American Wafer Works Cos. Centers Attack on “Death Sentence.’* Rtt I nitrd Press WASHINGTON. Nov. 28.—Tim American Water Works and Electric Cos. has asked the District Supreme Court to declare the public utility holding company act unconstitutional and enjoin its operation. The company, with a capital investment of $105,500,000 in other holding concerns, has. 55 per cent of its capital in the West Penn Electric Cos. That utility provides electric power in parts of Pennsylvania. West Virginia, Chio and Maryland. The parent company also controls 38 utilities which sell and distribute water throughout the country. The injunction suit, similar to those filed reecntly by other large holding companies, centered its attack on the "death sentence” provision in the new r Wheeler-Rayburn law’. Rtt i Hitrd Prt ss WASHINGTON. Nov. 28.—The Kentucky-Tennessee Light and Power Cos. today asked the Districi Supreme Court for an injunction to prevent a contemplated PWA loan and grant of $179,000 for the construction of a municipal electric plant in Paris. Tenn. The utility said it has a $400,000 investment there. OCTOBER STOCK SALES LARGEST SINCE 1934 Total Volume Flared at 81.160,287 Shares for Month. By l itrd Prr** WASHINGTON. Nov. 28.—Security market dealings in October were the heaviest since Federal control over markets was assumed more than a year ago. the Securities and Exchange Commission reported today. Total October turnover on all exchanges was 81.106.287 shares of stock worth $9,912,161,309 and $387.151.731 par value of bonds worth $302,177,535. In September 59.816.968 shares of stock worth $1,407,143,552 and $33 - 011.910 par value of bonds worth $271,503,356 were traded. MARKETING PARLEY SET Times S),c y l CHICAGO. Nov. 28—The seventh annual convention of the National Association of Marketing Officials is to be held here Dec. 4 to 6, it was announced today.

Repeal of Excise Tax on Coconut Oil Is Urged as Means to Relieve Distress in Philippines

fi'i Srrippa-Hoicard 5 eirxpaper Alliance HOUSTON. Tex.. Nov. 28.—The excise tax levied on Philippine coconut oil not only is lowering the standard of living of Filipinos and cutting into American exports to the islands, but may have farreaching effect on the political stability of the new commonwealth. This statement was made in an address here by John B. Gordon of he American Vegetable Oils and Fats Industries, whose headquarters are in Washington. He spoke before the Twenty-second National Foreign Trade Convention. In line with President Manuel Quezon of the Philippine Commonwealth he said tariffs on Philippine goods entering the United States will be against the best interests of

SOLUTION SEEN FOR 'BOOTLEG' COAL PROBLEM Opening of Mines Suggested by Pennsylvania Official. Bv FRFD W. PERKINS Time? Special Writer WASHINGTON. Nov. 23 —A solution for the "bootleg coal” problem in Pennsylvania’s anthracite region was suggested today by an official peculiarly close to it. He is Thomas Kennedy, secretarytreasurer of the United Mine Workers and Lieutenant-Governor of Pennsylvania. Both the state and | the labor organization have a vital | stake in the controversy over the | bootleg industry, which the legiti- | mate coal companies say is taking | $32,000,000 a year from them in retail business. Old Mines May Be Opened Mr. Kennedy said that if these company figures are correct “it would be more economical for them | to open some of their old mines, | even their high-cost mines, than to allow’ the situation to continue.” He expressed the view’ that if the 20.000 men said by the rompany to be drawing incomes from the bootleg industry could be given legitiI mate employment the problem w’ould ; solve itself, and there will be no need for the state to exercise its po- ; lice power in protection of the companies’ property rights. The suggestion that old mines be ; opened. Mr. Kennedy said, already ’ has been made to the coal comi panies by Gov. George H. Erie, t) w hom the anthracite producers a’e now appealing. Miners io Hold Parley The bootleg problem will be prom- ! inent when hard-coal miners hold | their tri-district convention here Dee. 4. At that time demands will ! be formulated for the collective bargaining that will precede the next anthracite wage agreement. The present one expires April 1 of next | year. "It is a safe assumption.” said Mr. Kennedy, “that our resolutions will demand an equalization of work among the colleries, to take care of the mpn thrown out of jobs when the companies adopted their policy of centralizing operations to cut costs.” That rompany policy, he declared, is the primary reason for coal bootlegging. ZEPHYR TYPE TWINS MAKE GOOD SHOWING Nine Streamline Carriers Now in Operation. By 7 imr.a Special PHILADELPHIA. Nov. 28.—Stainless steel, lightweight trains of the Zephyr type today had covered more than three-quarters of a million miles without injury to passengers, according to reports received by the Edward G. Budd Manufacturing Cos. Four trains operated by the Chicago. Burlington & Quincy Railroad coveied 615.124 miles while the Flying Yankee, of the Boston & Maine and Maine Central Railroads, ha a run 156,000 miles, a total of 771.124 miles. The original Burlington Zephyr, first of the Diesel-powered streamliners, covered 187.000 miles since it went in service between Lincoln and Omaha. Neb., and Kansas City, Mo., on Nov. 11, 1934. The Zephyr Twins, which have been in operation between Chicago and the Twin Cities since last April 21. have piled up a total of 372.094 miles. The Mark Twain, which made its first run Oct. 27. has covered 24,030 miles between St. Louis, Mo., and Burlington. la. FREIGHT CARS IN NEED OF REPAIRS DECREASE Class 1 Roads Report 15 Per Cent of Carriers Require Care. j Times Special 55' ASHINGTON. Nov. 28.—Class 1 railroads on Nov. 1 had 273,125 freight cars in need of repairs or 15 per cent of the number on line, the Association of American Railroads announced today. This was a decrease of 11.302 cars compared with the number in need of such repairs on Oct. 1, at which time there were 284.247 or 15-5 per cent. Freight cars in need of heavy repairs on Nov. 1 totaled 226,431 or 12.4 per cent, a decrease of 4796 cars compared with the number in need of such repairs on Oct. 1, while freight cars in need of light repairs totaled 46.694 or 2.6 per cent, a decrease of 6606 compared with Oct. 1. Locomotives in need of classified repairs on Nov. 1 totaled 10.187 or 22.3 per cent of the number on line. This was a decrease of 148 compared with the number in need of such repairs on Oct. 1. at which time there were 10.335 or 22.6 per cent. Class 1 railroads on Nov. 1 had 3030 serviceable locomotives in storage compared with 3815 on Oct. 1.

both countries. But. he added, these are in the future and the excise tax is already in force. The tax, amounting to 3 cents a pound, was imposed by Congress in 1934. The revenue thus collected is to be paid into the Philippine treasury. But none of the money can be used for any subsidy to the producers of copra, coconut oils or allied products. Asa result. Mr. Gordon declared, 3.000000 small farmers in the islands receive less for their product than it costs to produce it. The recent Sakdalista outbreak, costing 60 lives, occurred in two copra-produc-ing provinces. The trouble, he said, was due to bad economic conditions engendered in part by the excise tax.

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Business Pickup Viewed With Restrictions Cut Economist Declares Protective Laws Benefit Some. But If Removed Sounder Conditions Would Prevail. BY A. L. JACKSON Vice President, Economics Statistics, Ine. NEW YORK, Nov. 28. —Economic restrictions, whether they be in the form of tariffs, taxes, artificial production control or otherwise, adversely affect business. Such restrictions tend to hinder the exchange of goods and services. They give artificial protection to certain interests, w’hich work to the disadvantage of society as a w’hole.

Under this artificial protection prices to consumers are usually increased. This tends to -.-educe purchasing power, thereby reducing consumption, which in turn reacts unfavorably on production, employment and prices. Restrictions Legislated Asa rule, economic restrictions are forced upon business as a result of powerful political interests. They are legislated into effect. Once they become law', industry must immediately adjust itself to these artificial conditions as best it can. Once it is so adjusted, the removal of such restrictions again necessitates adjustments. The removal of “benevolent” restrictions is bound to meet the disapproval of those enjoying benefits, but to those who are adversely affected the removal is naturally welcome. Since it is ahvays the consumer who “pays,” and the consumers represent the majority of society, it seems reasonable that the removal of restrictions w'ould be for the “greatest good of the greatest number.” Many Would Suffer Never before in history have there been more restrictions placed upon business than during the last few years. Because a great many industries have become accustomed to operating under artificial conditions. the removal of which would assure them of more favorable competitive conditions will temporarily force readjustments and adversely affect business. From a longer range point of view, however, a gradual elimination of trade and price restrictions is the soundest policy the nation can follow-. Trade Treaty Hailed It is encouraging to note that the United States, the country most responsible for the wholesale adoption of economic nationalism, is finally realizing the necessity for the benefits of a larger volume of world trade. Unless other countries are allowed to sell more goods to us our favorable balance of payments is bound to lead in time to another wholesale depreciation of currencies. This assumes that foreign lending is not resumed by the United States. It is because of this that the United States-Canadian agreement is to be looked upon as a favorable development. ANNUAL MEETING ADJOURNS By United Pres* ST. LOUIS. Nov. 28—The seventeenth annual convention of the Mississippi Valley Association w-as in adjournment today after re-elec-tion of all major officers, including Col. Robert Isham Randolph, Chicago. president.

Mr. Gordon strongly advocated repeal. He said it is unfair thus to tax Philippine products while American goods enter the Philippines duty free. The 10-year average value of Philippine copra and coconut oil, he said, amounted to $27,237,000 up to 1934. In 1934 its value fell to $10,296,000. This 517.000.000 shrinkage, said Mr. Gordon, corresponds with the excise tax collected. It means poverty among a large section of Filipinos. Whereas in 1929 they were able to purchase more than SBS - 000.000 worth of American goods, last year they could absorb only $47,000,000 worth. It is of mutual interest, therefore, he concluded, to repeal a tax which hurts both peoples.

King. Midas' Thanksgiving

MARKETS CLOSED All major security, grain and commodity exchanges throughout the country will remain closed today in observance of Thanksgiving Day holiday. Livestock markets, w’hich are closed on only three holidays a year, Thanksgiving, Christmas and New- Year's, also will suspend trading. Banks also will observe the holiday. Trading will be resumed as usual in all financial districts tomorrow’ morning.

CLASS 1 ROADS EARN $13,542,934 IN MONTH "Samp Carriers Reported Loss of 51,17ft,163 in September, 1934. By United Pres* WASHINGTON, Nov. 28.—Net income of Class 1 railroads w’as $13,542.934 in September, the Interstate Commerce Commission reported today. A sharp reversal of the previous trend in railroad earnings. In September, 1934, the same roads showed a net loss of $1,179,163 and. in the first nine months of this year, the net loss was $66,671.687. The first nine months of 1934 showed a net loss of $33,903,519. Total income for the 149 railroads reporting w-as $69,476,956 for September. compared with $55,111,864 in September, 1934. Operating income for the month was $57,359,249 and in September 1934. $41,713,426 Other incomes in September totaled $12,117.707 and in 1934 $13,393,438. TVA SOLICITOR NAMED SEC SPECIAL COUNSEL James Fly Appointed lo Serve With Securities Commission. By United Pres* WASHINGTON, Nov. 28.—James L. Fly, general solicitor of the Tennessee Valley Authority, has been named special counsel to aid the Securities and Exchange Commission in litigation over the public utility honding company act of 1935, it was learned today. Mr. Fly is the second important New Deal lawyer transferred from another department to assist in the SEC’s battle against utility holding companies. NET PROFIT INCREASES Montgomery Ward Earnings Total 58,934.344 in Nine Months. By United Pres* CHICAGO, Nov. 28.—A net profit of $8,934,344 for the nine months ending Oct. 31 was reported by Montgomery Ward & Cos. here today. A profit of $7,182,452 was reported for the corresponding period ; last year. The earnings were equivalent to $1.72 a share on the common stock after providing for dividends on the Class A stock, and compares with $1.37 a year ago, the company reported. ACCEPTS BID ON BONDS Time* Bprrinl SOUTH BEND. Ind.. Nov. 28 —The Portage Township advisory board has accepted the bid of Albert McGann & Cos. of 3 s * per cent for $22,000 in township bonds, it was announced today. Proceeds from the sale will be added to r ne PWA grant of $5.4.000 for construction of 1 anew school.

Chain Store Salem Rise Dollar soles of 2$ chain store and wail order systems in October appreciated $?h1,775,227 apainst $215,620. in September and $216,061,77.1 in October, 19$ J.

PAGE 15

MIDOIEWEST CUTS DAIRY PRODUCTION Dairymen Face Profitable Winter. Survey Shows. Dairy farmers and stockmen in the Midwestern District are gradually shifting from dairy to beef cattle production, it was revealed today following completion of a survey of livestock on farms in the Middlewest. Farmers, who between 1920 and 1930 concentrated on milking cattle, recently have been breeding beef cattle sires to dairy cows, particularly in the corn belt, it was stated. The sudden change of cattle raisers is attributed to a more favorable price being paid this year for beef and hogs over dairy products. Milking throughout the Midwestern District has increased sharply for butterfat. In the extreme West this year due to the low price paid male calves are being sold as vealers, or fed out as feeders, the survey showed. Although prices of milk products are still out of proportion with current meat values, several economists predict that dairymen can look forward to a more profitable winter this year than last year. The follow’ing reasons are cited: This should be aided by expanding consuming power; butterfat prices are higher in relation to feed grain prices than they were a year ago. DUTCH GOLD STOCKS UP Bank of Netherlands Reports Gain of 5.800,030 Guilders. 7 harm Syt < inl AMSTERDAM. Nov. 28. The Bank of Netherlands in its statement for the last week shows an increase in gold stocks of 5.800.000 guilders to 628,000,000, it was announced today. Circulation of 787.100.000 guilders and sight liabilities of 861,600.000 guilders, left a gold cover of 72.3 per cent. Advances increased approximately 13,700.000 guilders to 177,300,000 guilders.

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-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

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INSULL EMPIRE REORGANIZATION PLAN APPROVED Old Midrilewest Utilities Changes Name After Court Ruling. * B'J 1 P’t"i Press CHICAGO. Nov. 28—Three and a half years of utility litigation was ended today following Federal Judge James H. Wilkersons approval of a plan of reorganization for the Middle West Utilities Cos . huge holding company of the Insull empire, changing the name to the Middle West Corp. The assets, valued at $57,000,000, were to be transferred to the new corporation today. Bankers maintain the value is to high; stockholders claim it is too low. Daniel C. Green and Walter A. Shaw were appointed by Judge Wjlkerson as members of the board of directors representing the court until July 1. 1937. Attorney George I. Haight also was named a member of the personnel committee by the court. Shares Assigned to Creditors Under the reorganizafion plan. J. shares of stork in thp new corporation will be assigned to creditors. Banks and other secured creditors will receive 1.710.000 shares of this total with the remainder going to holders of the $40,000,000 outstanding notes of the company and the unsecured creditors. For each four shares of preferred stock in the old company, holders will receive one share of new stock and a warrant to subscribe for an additional share. Common stockholders for each 100 shares of the old stock will receive one share of the new and a warrant to subscribe for an additional sharp. 7 Cents for SSO Sharp Stockholders paid about SSO a share for Middle West Utilities in 1929 and receive now thp equivalent, of 7 or 8 cents a share in the new’ stock. Preferred stockholders who paid SIOO or more a share receive the equivalent of about $2 a share in the new’ company The Middle West Utilities was the keystone of the Insull empire, organized in 1912 and growing by purchases in the United Stales and Canada until gross revenues reached $179,000,000 in 1930. Assets of the old company in 1932 with its subsidiaries were estimated to be $623.500.000. The company collapsed after the stock market crash when most of its assets were pledged as collateral for loans in the effort to stem -its financial losses. MARKET FOR CANNED MOTOR OIL EXPANDS Production of Containers for 1935 to Be 30 Per Cent Higher. ’l imes Speeinl NESV YORK. Nov. 28—Th* 1 marketing of motor oil in tin containers has increased on a broad front during the past few’ months. T. G. Searle, general sales manager of the Continental Can Cos., said today. He stated that the company's output of motor oil cans in 1935 will be at least 30 per cent above that of last year. The company is nowsupplying cans to more than 100 oil refiners, and all but one will show a substantial increase in orders over 1934. Mr. Searle stated. This increased use has also been due in part to the perfection of high-speed filling machines, Mr. Searle added. Until recently cans could be sealed much faster than they could be filled. It is now possible to fill nine cans at once and this has stepped up the production rate from 130 to 165 cans a minute, with 185 a minute hoped for in the near future.

INVEST with Ist Mortgage Security on Lmproved Real Estate BUY Building & Loan Shares