Indianapolis Times, Volume 48, Number 48, Indianapolis, Marion County, 6 May 1936 — Page 16

Trends Sees Aid for Small Stockholders in New Tax Bill. BY JOHN T. FLYNN

NEW YORK. May 6.—The more one examines the new tax bill, the more one feels that it might well be labelled an act to bring relief to small stockholders. I do not think we ought to single out stockholders for punitive action. Several million people are stockholders in business enterprises. They are entitled to the protection

and encouragement of laws. But this bill is not supposed to be a bill for their relief. It is a bill to raise funds. By small stockholders, of course, I am not thinking of the small wageearner who has a few dollars invested in some local utility. I am thinking of the man who has an income of SIO,OOO and an investment

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Flynn

let us say, of $30,000 or $40,000 in stocks. To illustrate what T mean, let us take an actual case of a man with an income from his own earnings of SIO,OOO, but who also owns about $30,000 worth of corporation stock from which he gets dividends. In order to simplify the matter, let us suppose that the corporation in which he owns stock has net earnings during the year and that his share in those earnings, as a stockholder, amounts to S2OOO. tt it it THIS being so, this man has a cash income of SIO,OOO from his own earnings and a S2OOO share in- the earnings of the corporation. 3f the corporation distributed all of its earnings, his cash income would be $12,000. But whether these are distributed or not, here is $12,000 of income which the government wants to tcp lor taxes. It taxes SIO,OOO of the income in the hands of the taxpayer. The remaining S2OOO it taxes, partly in the hands of the corporation. and partly in the hands of the taxpayer or stockholder. That, is to say, the S2OOO corporation earnings would be taxed 15 per cent, payable by the corporation. Then on* any part distributed to the stockholder, while he would not pay the normal 4 per cent tax. he would pay the surtax, if his net taxable income exceeded S4OOO. Under the new tax bill the S2OOO corporate earnings would not be taxed in the hands of the corporation, save as to the part now distributed. And then, this tax would be large. I have tried to work out a comparison of the tax which the government would take out of this $12,000 of income under the present tax law and under the proposed new law. I have worked it out under four separate conditions. First, I have computed it on the supposition that the corporation doos not distribute 25 per cent of its earnings. 33 per cent, 40 per cent, and 45 per cent. tt tt tt I ASSUME the taxpayer is married and have allowed also SIOOO in deductions for interest, taxes, etc. Here is how it works out: Per cent Tax under ol earning? present Tax under undistributed. law. new law. 25 $740 $560 33 731 604 40 725 673 45 720 744 Thus it is not until corporations get to holding back 45 per cent of their earnings in undistributed profits that the tax return to the government is as large as at present. And then it is only slightly larger. The vast majority of stockholders in the vast majority of corporations are about to have their taxes lowered. (Copyright. 1936. NEA Service, Inc.)

Chicago Stocks (Reprinted From Late Times Yesterday) (By Atkins. Hamill * Gates) Prev. Close Close Advance Aluminum 7% 7% Asbestos Mfg 4V 4% Associated Investors 35 35 Bastian-Blesslng 9% 9' i Berghoff 11% 11 Bruce PL , 13 Butler Brothers B'* B’* Cent 111 Pub Service Pfd 59 58'• Chicago Rivet & Machine ... 29 Chicago Yellow Cab 26 27 Cities Service 4% 4 5 Commonwealth Edison 98 Continental Steel 30 33% Cord 5% 5% Crane 25’* 24% Dayton Rubber 12% 13 Electric Household 15' i 19*'* General Household 6'* 6’ 2 Godchaux Sugar ‘'A” 34 33 Godehaux Sugar ”B” 17 16% Grt Lakes Dredge 28’* 28 Jarvis Mfg 19% 20’* Xat* Drug . 38’* Ken-Rad T dr L 10’ 3 in’* Libby McNeil & Libby 7% 7% Lincoln Printing IH* 11 Lion Oil Refining ... ll\ ... McCord Rad '•£' 34 McGraw Electric 29 28> Nat Gvpsum 50 Noblitt-Bparks 38 North Bancorporation in Public Service of N 111 49’* ... Standard Dredge Pfd 14% . Swift International 29 29% Williams OU-O-Matie 11 Zenith 17% 17 New York Curb (Reprinted From Late Times Yesterday) (By Atkins, Hamill & Gates) Prev. Closa close Aluminum Cos of America .. 120 1154a Am Cyanamid ’’B’’ ...* 334* 34 Am Gas Ar Electric 39 34% Am General 8% 84 Am Superpower .. 2'* 2 Ark Natural Ga* "A -1 6% Atlas Corp 124 12 Creole Petroleum Corp 274 27 Crocker-Wheeler 10% 9% Elec Bond & Share 184 17’ Risk Rubber s s * 54 Ford Motors Canada "A” 23 4 234 Glen Alden (1) 144 14 Gulf Oil Core of Penn 85V* 844 Humble Oil & Refining Cos ... 814 624 Huyler’a of Del pfd 31 21 Hygrade Pood 44 44 Int Vitamin 74 74 Imperial Oil of Canada ...... 22 4 22 Irving Air Chute 224 32. Lake Bhore Mines 55 4 544 Mueller Brass 'jc 264 354 Molybdenum Corp of Amer ... 74 a Natl Bellas Hess Inc 14 3 Niagara Hudson Pwr 84 8 Pan American Airways 54 Pen road Corp— 44 44 Root Petroleum 154 154 St Regis Paper Cos • ■ 34 34 Salt Creek Producers Assn .... 74 .. Segal Lock 34 24 Sonotone 24 34 Standard Oil of Ohio 2# 80 Btutc Motor Car of Amer .... 33 Technicolor Inc 274 27 Tublae Chailllon Corp 64 64 Wayne Pump 284 28 Produce Markets (Reprinted From Late Ttfees Yesterday) The pricee quoted are paid lor stock fathered in the country, while delivered In Indianapolis the price la a cent leigher. Heavy breed hens. 17e: Leghorn breed hen s 16c: old cocks. 9c; duck*, white. 5 lbs and ever. 7c; geese full feather, all •Izes. 8c; all guineas 14 lbs. and up. 15c; No. 1 strictly fresh eggs loss off. 17c: delivered In Indiauepoiis. 18c. Each full twee must weigh 55 lb*, frees; a deduc-

PAGE 16

TRADE ACTIVITY SHOWS GAIN IN MIDWEST AREA Indiana Business Increases During First Quarter, Report States. General business activity in the Seventh Federal Reserve District, comprising Indiana. Illinois, lowa. Wisconsin and Michigan, turned definitely higher during the first quarter of the current year which i ended March 31, according to a reI port issued today by the Federal Reserve Bank of Chicago. Practically all manufacturing groups recorded improvement during March over the preceding month, the report stated. These groups include the automobile, iron and steel, malleable and steel casting foundry, stove and furnace, building construction, building materials, and furniture industries. Employment Shows Gain The automobile and construction industries experienced substantially sharp rises during the month, while steel mills had a satisfactory gain, owing to an increased demand from the railroads and automobile plants. Employment followed the general trend of business in expanding over the preceding month. Although production of foodstuffs, such as pack-ing-house commodities and dairy products, increased in March over February, distribution for the latter declined. The former increased in tonnage, due to lower prices. Sales gains also were recorded in March over February in all reporting wholesale trade groups, including groceries, hardware, drugs and electrical supplies, although the increase in the grocery trade was less than seasonal. Grocery Group Drops Groceries were the only group to experience a decline in the first quarter business from the same period last year. The retail trade recorded favorable trends in March with the increase in sales of department stores being seasonal in extent and the gain in retail shoe and furniture trades better than average. Total loans and investments of reporting member banks in the Seventh District were more than $100,000,000 smaller on April 15 than four weeks previous, due to decline in bank holdings of government securities, the report showed.

New Bond Issues (Reprinted From Late Times Yesterday) (By Lyons & Cos.) Asso Tel 5s '66 104'/* 105 B & O '39 98 984 Cal Ore Pwr 4s ’66 944 954 Cent Maine 4s '6O ..., 104’* 1024 Cent 111 34s ’66 . ' 104% 1054 C A; O Rep and Imp 34s ’95. 994 Chicago Sts 34s ’63 105 4 105 4 Cinn On Term 34s ’7l 1034 1034 Cleve Elec Ilium 34s ’65 110% 111 Clev* Tractor 5s ’45 . .. 103 105 Columbia Lwy P & L 4s ’65.. 1044 1044 Conn River P & L 34s ’6l .. 1044 1044 Consolidated Ed 44s ’46 1024 102 4 Consolidated Ed 34s ’56 100 100’* Consumer Power 34s ’7O 1034 103’* Cudahy Pkg 3%s ’55 100 1004 Cudahy Pkg 4s ’SO 1014 102 Duquesne Lite 34s ’65 ... .. 1064 1064 Eastern Gas & Elec P4s ’56.. 914 92 Edison Ilium Bost 3%s 56 . 1054 1054 lowa South Util 54s ’SO ... 1004 101 Vi Jones & Laughlin 44s ’61... 98 4 98 4 Kansas P& L 4’is ’6l 108 108% Los Angeles G&E 4s ’7O ... 1044 105 Maine Cent 4s ’45 994 loot* Metro Ed 4s ’65 107 107 % Monon W P 44s ’6O 104’* 1044 Natl Dairy 4345. 61 100% 1004 N Y Edison 34s ’6O 101 1014 Norway 44s ’56 96% 97 Norway 44s ’65 9934 1004 Ohio Edison 4s ’66 . 104% 1054 Pacific Lite 44s ’45 105 105% Pacific G & H 34s ’6l 1024 103 Pacific Tel 3%s ’66 101% 102 Penn R R 34s ’7O 1004 100% Penn Tel 4s ’65 105 4 106 Pub Serv N H 3%s ’6O 104 104% Railway & Lite 4Vis ’55 1074 1094 Saquency Pwr 44s ’66 100 San Diego G & E 4s ’65 1084 So Cal Gas 4s ’65 103% 104’* So Cal Ed 4s ’6O 107 4 107% So Cal Ed 4%s '45 . 104% 1054 So Western G&E 4s ’6O ... 102VV 102% A E Stalev 4s ’46 )03 Union Pac 34s ’7l 98% 994 U S Pike <fc Pdv 34s ’66 102-4 1034 Virginia Rwv 34s ’66 102% 103 West Penn 34s ’63 105*. 105% Mlsc B dr E 34s ’66 ... 101% 102 Youngstown .Sheet *Tr 4:, ’6l 984 Ygstwn Sht. * T Deb 34s ’sl 102 4 101 4 Local Livestock (Reprinted From Late Times Yesterday) HOGS April. Bulk Ton. Receiots. 29. 110.55® 10.65 810.55 3500 30. 10.45@10 55 10.55 3500 May 1. [email protected] 10 75 4500 2. 10.55®10.65 10.65 1000 4. [email protected] 10 65 4500 5. [email protected] 10 40 5000 Light lights. (140-160) Good and choice $ [email protected] Medium 9.35410.00 (160-180) Good and choice . 10.25® 10.40 Medium . [email protected] (180-200) Good and choice . [email protected] Medium 9.75 @10.30 1 200-220> Good and choice . 10.30® 10.40 (220-250' Good and choice . [email protected] Heavyweights. (250-290) Good and choice . 9.90@10 20 (290-350) Good and choice . 9.70® 990 Packing Sows. (275-330' Good g 85f qls <3*o-425) Good (2(5-350) Medium 8.15® 8.85 Slaughter Pigs. w ’JOO-140) Good and choice . 9.00@10 00 CATTLE —Receipts. 2500 (550-900) Choice $ 8.75® 9.75 £°°9 7.75@ 9.00 common 5 75** a 75 (900-1100) Choice £°° and B.oo® 9.25 Medium 6.75® 8.00 (1100-1300) Choice 900 ® 9.75 g°2 d 7.75© 9.25 Medium *7 on*? 8 on (1300-1500) Choice ii 9 25® 975 Good 7.75© 9.25 Heifera (500-730) Cnolce 7.75® 8.40 Good 7.25® 7.75 Common and medium 5.75© ’.25 (250-900) Good and choice ’. 7.25® 8.40 Cowa Good 6.00® 6.50 Common and medium 5.00@ 6.00 Low cutter and cutter 3 75® 5.00 Bulla, good 6.25© 8.75 . Cutter, com. and med. bulk 5.75© 8.50 YEALERS —Receipts. 800— i Good and choice $ B.oo® 9.00 j Medium 7.00® 8 00 Cull and common 4.50® 7.00 Calve* I • 250-500 1 Good and choice .. 6.00® 8.75 Common and medium 4.50® 8.00 Feed and Sleeker Cattle (500-800) Good ana choice .. 7.00® 825 Common and medium 5.75® 7.25 (800-1050) Good and choice 7.00® 8 25 Common and medium 5.50© 7.25 Cewa Good . ... ..... 4 75® 5.25 Common and medium 4.50® 4.75 SHEEP AND LAMBS —Receipts. 1500— Lamb*. 90 lb* down; good and choice 810 00® 10 2ft g*Od 9.60® 10.00 Medium 8.75® 9 60 Common .7.25® 8.75 Ewes (98-170) Good and choice . 4.50 5.75 Common and medium 3.50# 8.75 bi® h ** P * D^| lwab quotation* on clipped

Abreast of The Times on Finance

A, © 1086. NBA J

New York Stock Exchange Prices

(Reprinted From Late Times Yesterday) (By Thomson & McKinnon) Prev. High Low Close close Oils— Atl Rfg 29% 29% 29 4 28% Barnsdall 174 174 17V* 16V* Consol Oil 124 12’/* 124 12V* Cont of Del- 32% 32 32 324 Houston (new).. 9 84 84 8% Mid Cont Pet... 20% 20 4 20% 20 Ohio Oil 134 13 13V* 13 Pet Corp 14 13% 14 13% Phillips Pet ... 43 42 4 43 42 Plymouth Oil .. 144 144 14% 13% Pure Oil 194 19V* 19V* 194 Royal Dutch 57 V* 57V* 574 53% Seaboard Oil 35 34% 35 334 Shell Un 164 t 5% 164 15% Skelley Oil 254 254 254 24 Soc Vac 134 13 V* 13 V* 134 SO of Cal 38 4 37% 38’/* 37% SO Os Ind .... 35% 34% 35 34% SOOf N J 59 V* 58% 59 58 Texas Corp 34% 34 34 33% Tidewater Assn 16% 16% 164 164 Union Oil of Cal 24 23 4 23 % 23 4 Steels — Acme Steel 63% 63% 63% 60 Am Roll Mills .. 27% 27% 27% 27Vi Beth Steel 51 4 50 50 49% Byers A M 18 4 17% 17% 17 4 Cruc Steel 304 304 304 30 Inland Steel ... 924 91% 92’% 92 Ludlum Steel 25Vi 24% 24% 24Vi McKeesport Tin 107 107 107 107 Mid Steel 38 36Vi 36 4 36 Natl Steel 61V* 60 60% 59% Otis Steel 14% 144 144 14’i Rep Iron <fc Steel -19V* 18% 18% 18% Rep Ir & Stl Pfd 774 774 774 78 U S Pipe & Fdy. 34 32% 33% 32% U S Steel 57Vi 55% 56Vi 55% U S Steel pfd .. .124 1204 123 121 Warren Bros . 9% 84 8 4 84 Youngstn S& T 53% 52 52 52% Motors— Auburn 34 4 33 33 33 Vi Chrysler 964 94% 95 95% Gen Motors 64% 63% 63% 624 Graham Mot ... 2% 2% 2% 24 Hudson 15V* 144 14 s ,* 144 Mack Truck 30 30 30 4 30 Nash 18 17% 17% 17% Packard 10 9% 9% 9% Reo 5% 5% 5% 5% Studebaker 11% 11% 11% n% Yellow Truck . 18% 18 10% 17V* Motor Accessories— Bendix 28% 27% 27% 27% Bohn Alum 48 47 V a 47 Vi 47 V* Born Warner ... 70% 70 70% 70 Briggs 47 Vi 46 % 46% 46 Bud Mfg 15V* 15V* 15% 15% Budd Wheel ... 10 94 9% 9% Eaton Mfg 33’/* 32% 32% 32% Elec Auto Lite .. 35 34% 34% 34 Elec Stor Bat, . 46% 46% 46V* 46 Greyhound ”B”. 54% 53 54 53 Houdaille ...... 24V* 23% 24 23% Murray Body ... 16% 154 154 15% Stew Warner ... 19V* 18% 18% 18V* Timken Roll . 60 59 59 50% Timken Det Axle 15V* 14% 14% 15 Mining— Alaska Jun 14% 144 14% 144 Am Smelt 76 74 75V* 73% A. aconda 34% 32% 33% 32% Cal & Hecla . 11% 104 10% 104 Cerro De Pasco. 55% 54 54% 53% Dome Mines .... 54 52% 54 53 Vi Gt Nor Ore 17 16% 17 16% Howe Sound .. 51% 50’* 51’* 50 Ins Copper .. . 11% 10% 10% 10 Int Nickel . . . 46% 45% 45% 45V* Isl Creek Coal . 27V* 27% 27V* 27 Kennecott Cop . 36% 35% 36 35 Mclntyre Mine . 454 43 454 43 Park Utah .. 3% 3% 3% 34 Phelps Dodge .. 34 33 s * 33 4 33 St Joe Lead 24% 23% 24 23 U S Smelters 93’* 904 90% 89 Vanadium 18% 17% 18% 184 Amnsemrnts— Croslev Radio .. 27% 26 26 26 Pox Theat 24 23 4 24 23 4 Loews Inc 47% 46% 47% 46 Radio Corp 104 10 104 10% Paramount 8% 8% Bs*8 s * 8% RKO % 6 8 V* 5% Warner Bros .. 10% 9% 10 9% Tobaccos— Am Tobacco "A” 89% 89% 89% 89% Am Tob (Bi . . . 93 92 93 91 Gen Cigars 54’i 53% 53% 54 Lig & Myers (B) 1024 1014 102 1014 Lorillard . . 22% 22’i 22’i 22% Philip Morris . 82% 81% 81 s * 82 Reynolds T (B) . . 52V* 51 s * 52 514 Rails— Atchison 73 714 71 Vi 71 Atl Coast Lines . 244 234 23 4 32 4 B& O 174 16% 16V* 16% Can Pacific 11 s * 114 11 s * 11% Ch & Ohio ... 55 s * 55 554 55% Chi & Gt W 14 14 14 1% Chi & Gt VT pfd 5% 5% 5 s * 5% O M & St P 1% 1% I s , I s * C M & St P pfd 34 3’ 3% 3', Chi N W 3% 34 34 3 Chi N W pfd ... 74 7% 74 74 Dela & Hud ... 40’* 39 39 39 s * Del Lac & W 16% 16 16 154 Erie 124 12 12 s * 12 Erie pfd .... 184 174 184 17 s * Gt Northern pfd 354 35 35’* 35 111 Central 204 19% 19% 19 s * K C Sou 19% 18 s * 18 s * 18% Lehigh Valley .. 9% 9% 9 s * 9% Lou <fe Nash ... 65 63 4 64 65 M K & T 7% 74 7% 7% MK & T pfd . 20% 19 s * 19% 19% Mo Pac 24 24 24 2 s , Mo Pac pfd 44 44 4’ 2 4 s # N Y Cent 34 s * 33 s , 33 s . 33 s * N Y New Haven 34 34 34 34 Nor Pacific 28 s * 27% 28 274 Penn R R 30% 29% 30% 29% Sou Pac 31% 30% 30 s * 30% Sou R R 15V* 14% 14% 144 Union Pac ... 124 s * 123 124% 1204 Wabash .3 3 32% West Maryland Bs*8 s * *4 B s * 8% Equipment* — Am Car & Pdv 32% 32 s * 32% 32 Am Loco . . .26 25 25% 25 Am Steel Pdv ... 24% 23% 23 s * 23 Bald Loco 3% 3% 3% 3% Gen Am Tk Car 44 4 44 % 4*4 44 Gen Elec . .37 4 38V* 38% 364 Gen R R Sir ... 35 35 35 354 Pullman Inc ... 42% 42% 42% 41 West Air Br ... 38% 37% 37% 374 Westing Elec ...108% 107 107 106V* Utilities— Am & For Pwr. 7% 7% 74 7 Am Pow &LU . 10% 9 s * 10 9% A T * T ...155% 1534 154', 152% Am Wat Wks .. 21 20% 204 20% Col Gas & Elec. 18% 17% 17% 17% Com & Sou .. 2% 24 24 24 Consol Gas .. 304 29% 29% 28 s * Elec Pwr 8r Lit . 144 14 14 13% Int Hvdro Elec .. 3 J l * 3% 2 s . Interboro R T 13% IS IS 12% Irt TANARUS& T .. 134 13 13% 134 Nat Pwr & Lit . 10% 10% 10% 9% No Amer 35% 24% 25 24 V* Pat G £ I 34 534 33% 34 Peoples Oas ... 4040 40 384 Pub Serv N J . 40% 4040 39% So Cal Edison .. 35% 35% 28% 35 .SSS & ,S8

WEDNESDAY, MAY 6, 1936

Leap Year

United Corp.... 6 5% 6 5% Un Gas Imp 16% 14% 15% 14% Ut Uwr &Lt (A) 4% 4 s * 4% 44 Western Union.. 78’* 76’i 76V* 754 Robbers— Firestone 39% 28% 29 28Vi Goodrich 21 20 20 20 Goodyear 27% 25% 25% 25% U S Rubber 31 Vi 30% 30 V* 30 U S Rubber 71% 69 69 70% Miscellaneous— Allis Chalmers.. 43V* 42% 42% 41% Am Can ..126% 1254 125% 125V* Am Mach & Fdy 22% 224 224 22 Anchor Cap ... 19% 16 194 19Vi Brklyn Man Tr. 46% 45% 46% 464 Burroughs Add 26 4 26 % 26V* 26V* J I Case 157 152 4 154% 151 Conti Can 73 72 72 72% N. Y. Bonds (Reprinted From Late Times Yeserdav) DAILY BOND INDEX 20 20 20 60 Inds. Rails Utils. Bonds Today 90.4 90.3 104.6 95.1 Yesterday 90.1 89.7 104.4 94.7 Week ago 90.3 89.7 104.2 84.7 Month ago 91.9 92.7 105.0 96.5 Year ago 87.4 76.0 97.5 87.0 1936 high 93.4 95.6 105.5 97.9 1936 low 90.0 84.7 103.5 93.3 (Copyright. 1936. by Standard Statistics.) U. S. GOVERNMENT BONDS (By Abbott. Proctor & Paine) Treasury* Prev. ... Close Close 4%S 1947-52 117.20 117.20 4s 1944-54 112.73 112.20 3-„s 1946-56 m 110.20 3%s 1940-43 ....108.18 108.16 34s 1943-45 107.23 107.17 34s 1941 108.26 108.23 34s 1944-46 107.12 107.8 34s 1946-49 105.23 105.20 3s 1951-55 104.13 104.8 3s 1946-48 104.29 104.26 2%s 1945-47 103.10 103.4 2%s 1051 102 101.27 Home Owners Loan Corp. 2%s 1949 101.17 101.8 3S 1952 102.25 102.15 Federal Farm Mortgage Corp. 3%S 1964 104.10 104.8 3s 1949 -.102.25 102.23 3s 1942-47 103.24 103.8 2%s 1945 102.7 102.6 Prev. Close Close DOMESTIC Allg Corn 5s ’44 92 90% AUee Corn 5s ’49 85 83 Alleg Core 5s ’SO 63 67 Am Frgn Pow 5s 2030 73% 71% Am Tel & Tel sV a s ’43 .113 112% Am Tel & Tel 5s ’65 113 113 Arm & Cos Del) 4s ’55 97% 97% Atl Coast Line 4s ’52 96 96V* Atl Coast Line 4V2S ’64 79 78 Atch Top & S Fe 4%s ’4B ... 111 111 Am Wat Wks 5s ’44 112.13 112.16 Am Rolling Mills 4' 2 s ’45 114 s * 114 Balt & Ohio 6s ’95 93 92 Balt & Ohio 4Vis ’6O 69% 67 s * Buff Roch & Pitt 4Vis ’57 ... 76% 74% Beth Steel 4%s ’6O 104 104 Chi Milw & St P 5s ’75 18% 18% Chi Milw & St P 5s 2000 6% 6% Cleve Un Term 5s ’73 106% 106V* C'.eve Un Term 4%s '77 104 102 Col Gas 5s Mav ’52 104 103% Col Gas 5s April ’52 102 104 Can Pac Pern 4s 91% 91 „. Cent Pac 5s ’6O 99% 98% Big Four 4Vis ’77 89% 88% Big Four 5s ’63 . 97 96% Colorado & So 4%s 80 70 68% Chi & West Ind 4s '52 102% 102% Chi & West Ind 5%s ’62 106% 106% Chi <fe Nor West 4%s ’49 11% 11% Con Gas 5s ’57 Kg.zS 103 27 Chesa Corn 5s ’47 126 124% De! & Hud 4s 43 83% 83 s /^ N Y Dock 4s ’sl 66 66 N Y Dock 5s ’3B 65 65% Gen Cable 5%s ’47 105 104% Grt Northern 7s 36 100.30 100.30 Grt Northern 4%s ’76 .......101% 101% Grt Northern 4%s 77 100 s * 100% Gen Stl Cast WW s%*’ 49 . 83% 80% Hud & Manhat Ref 5s ’57 83 83% 111 Cent 4%s ’66 70% 69 111 Cent Jt 4’ is ’63 80 >79% 111 Cent 5s ’63 82% 82% Interntl Hv Ele 6s ’44 42% 41% Interntl Tel & Tel 4%s ’J9... 89 s * 89 Interntl Tel & Tel 5s ’55 ... 82 80V* Interntl Tel & Tel 4%s '52... 77 % 73 P Lorillard 7s ’44 132 133 Natl Dairy 5%s ’4B 103.3 103 Natl Steel 4s ’65 104% 104% Nickel Plate 4%s ’7B 82 s * 82 Nickel Plate 5%s ’74 93 91% N Y Cent 5s 2013 90% 89 s * N Y Cent 4%s 2013 (old) 83% 52% Nor Amer Cos 5s ’6l 105% 104V* Nor Pac 3s 2047 80% 80% Nor Pac 4%s 2047 101 109% Nor Pac 6s 2047 11l 110%* Nor States Pow 5s ’4l 104% 104% New Orleans Term 4s ’55..... 89 88 s * Otis Steel 6s ’4l 102% 102% Penn Rv 4%s ’B4 108V* 107 s * Penn Ry 4%s ’Bl 108% 108% Penn Ry 4%s ’7O 103 102% Pac G & E 5s ’42 103 103 Portland Gen El 4%s ’3O 69 % 68 Para Publix 6s ’55 88% 86% Penn P & L 4%s ’Bl 106% 106% Postal Tel & Cab 5 ’53 29 s * 29 Rem Rand WW s’is ’47 108% 108 Shell Union Oil 5s ’47 95% 95 s * Sou Pac 4%s ’6B 88 s * 87% Sou Pac 4%s ’Bl 87% 87% Sou Pac 4%s ’69 88 87% Sou Pac 4s ’49 91% 91 Sou Rail 4s ’56 57% 57% Sou Rail 6s ’56 74% 73% Sou Rail 6%s ’56 77% 77 Texas Pac 5s ’BO 102 101% Texas Pac 5s ’79 102% 102% Texas Pac 5s ’77 102% 102% Union Pac 4s ’47 113% 113% United Drug 5s ’53 99% 99% U S Rubber 5s ’47 105% 105% NY NH & Hart 6s ’4B 30 s * 30% NY NH & Hart 4%s ’67 31% 31 Warner Dros 6s ’39 93 91% Western Mary 5%s ’77 108 107% Western Marv 4s ’52 .... 100 100 Youngstown 6 8c T 5s ’7O 106.31 107 Youngstown S & T 5s ’7B ..105 13 105.34 FOREIGN Argentina A 6s ’57 -. 99% 99 s . Brazil 8s *4l 32 31% Canadian Govt 4s ’6O 107V* 107 Denmark 5%s ’55 .101 101 French 7s 49 176% 176% German 5%s ’65 24% 25% Italy 7s ’SI 1.... 72% 72V, Japan 6%s ’54 96V, 96 Poland 7s ’47 91 91 Rome 6%* ’52 54 53 5 .

Caterpillar Tract 71% 70 71V, 70 Crown Cork ... 55% 53‘i 53% 55 Curtis Pub .... 19% JB% 18% 18% Dere & Cos 80% 77% 77% 79 Eastman Kodak 162 161 161 159 Foster Wheeler. 28V* 26% 28 25 Gillette 16 15% 16 16 Glidden 47% 46% 47Vi 46V* Ingersoll Rand.. 110 110 110 108 Inter Harv .... 83’/* 82 82 82% Natl Cash Reg.. 23% 23% 23% 23V* Owens Bottle ...143 141 142 140% Rem Rand 22’/* 21% 21% 21 Vi Worthington Pm. 27% 27% 27% 26’/* Foods— Am Sugar 52 52 52 51% Armour S 5 5 48 Armour 6% pfd. 72% 72% ’ 72Vi 71 Beatrice Cream. 21V* 21V* 21% 26% Borden Prod ... 27% 26% 26% 26% Cal Packing ... 31% 31% 31% 30% Can Dry G Ale. 11%. 11% 11% 11% Coca-Cola 86 85 % 86 85’/* Cont Bak “A”.. 14% 14V* 14% 14 Corn Prod 75% 74 74% 74 Crm of Wheat 35 35 35 35 Cuban Am Sugar 10% 10% 10% •10% Gen Baking ... i2 12 12 11% Gen Foods 1 38% 38% 38V, 38V* Gold Dust 18V* 17% 18 17% Hershev 76 76 76 75% Natl Biscuit .... 34% 33% 33% 33% Purity Bak 12 11% 11% 11% S Porto Rico Sug 28% 28% 28 V* 28 Std Brands .... 15Vi 15% 15% 15V* Un Biscuit 25% 25V, 25% 25% United Fruit ... 71 70% 70% 70% Ward Bak (B).. 2% 2% 2V4 7% Wrigley 70 70 70 69 Retail Stores— Allied Stores ... 7% 7% 7% 7% Assd Dry Goods . 14 13% 14 13Vi First Natl Stores 40% 40% 40% 40% Gimbel Bros 8% 8 8 8 Gm Un Tea .... 3% 3% 3% 3% Kresge S S .... 21% 21 21% 21% Kroger Groc .... 22 s ,* 22% 22% 22% Macy R H 42V* 41% 42V* 41% McCrory St 13% 13V* 13% 13 McLellan St .. 12% 12 12V* 12% Marshall Field.. 15% 15V* 15V* 15% May Dept St ... 44 44 44 43% Mont Ward .... 39% 39V* 39Vi 38% Natl Tea 8% 8% 8% 8% Penney J C .... 74 73% 73% 73 V, Safeway St .... 31% 31 31V, 31 Sears Roebuck .. 66V* 65% 65% 65% Woolworth 48 47V* 47V, 47% AviationAviation Corp .. 5% 5% 5% 5% Boeing Arcft .. !9 18% 18% 18V* Curtiss Wright . 5% 6% 6% 6% Curtiss Wright A 18% 15 15 15% Douglas Air 50% 54% 54% 54% Nor Am Av 8% 8% BVi BV* Sperry Corp 17V, 17 17V* 16% U Aircraft new. 22% 22V4 22% 22 Chemicals— Air Reduction . 60% 60V* 60V* 60% Allied Chem 187 184 187 179 Vi Am Com Alcoho’ 24% 24 V* 24 V, 24 Col Carbon .. .117% 115 118’/, 113 V, Som Solvents .. 18V* 17% 17% 17% Du Pont 141V* 139 s * 139% 138% Liquid Carb .. 35% 34% 35% 34% Math Alkali .... 29% 29 29V* 29V4 Monsanto Chem. 93% 93 93Vi 91 Natl Dis (new). 29% 28% 29% 28% Schenley Dist .. 40% 39% 40 39% Tex Gulf Sulph. 35 V* 35 35 35 Vi Union Carbide .. 80% 79% ao’i 79% U S Ind Alcohol 48% 47 47% 47 Drugs— Bristol Myers .. 44 44 44 43 s * Coty Inc 4% 4% 4% 4% Lambert 20% 20 20 s * 19% Lehn & Fink .. 15% 15% 15% 15% Sterling Prod . . 67 s ,a 67 67% 66 Un Drug (new). 12% 12 12% lit* Zonite Prod .... 6% 6% 6% 6% Financial— Adams Bxp 10% 10% 10% 10 s * Allegheny Corp . 2% 2% 2 s * 2% Am Int Corp ... 10% 10% 10% IOVi Chesa Corp 65 65 65 64 Lehman Corp .. 9 9 9 9% Transamerica ... 12% 12 12V* 12 Tr Conti Corp . 8% 8% 8% 8% Building— Am Radiator ... 20% 20 20 19% Gen Asphalt 25 24% 25 24% Holland Furnace. 34 32% 33% 34 Int Cement .... 45% 45 45 44% Johns Manville 98 s * 98 98 98% Libby Owens Gls 51% 51 51 51 Otis Elev 36% 25% 25V, 25 Ulen Cons 5 4% 5 4% Household— Col Pal Peet ... 16% 15 s * 15 s * 15% Congoleum 36% 36 36 V* 35 Kelvinator 20% 19% 20 19% Mohawk Carnet. 23% 23% 23% 23V* Proc & Gamble. 42% 42V* 42% 42% Servel Inc ... 19% 18% 19 18% Simmons Bed .. 26% 25% 25% 25% Textiles— Amer Woolen ... B>* 8% 8% 7 s * Be!ding Hem ... 14% 14’ 14V, 14 Cel.inese Corn ... 24% 23% 24 23 s * Collins Aikman . 44% 43 s * 43% 43% Gotham Hose ..9% 9 9% 9 Indus Ravon ... 29% 29’* 29% 29% Kavser Juliu* .. 27% 27% 27% 27 s * Real Silk 12% 12% 12 Vi 12 Unlisted Stocks (Reprinted From Late Times Yesterday) 'By Blyth & Cos.) NEW TORS BANK STOCKS Bid. Ask. Bankers Trust 57% 59 Central Transfer 107 s * 109% Chase ... 38 39% Chemical National 53% 55 Guaranty 288 292% Irving 15% 15 s * Manufacturers 47% 49% National City 34V* 35% Cent 111 Chicago 150 152% First National Boston 44 46% National Shawmut 25% 27% FIRE INSURANCE Aetna Fire Ins 51 53 V* American Ins of Newark 14% 15% Baltimore American 7% 9% City of New York 24 26 Federal Ins 43 47% Franklin Fire 30% 32% Great American Tus 27 s * 29% Hanover Fire Ins 36% 38 s * Hartford Fire 71 % 73 s * Home Ins 35 36% Ins Cos of A 70 72% National Fire 68% 70% National Liberty os*0 s * 11% North River 24% 26% Phoenix 83 V, 86% U S Fire 51 53% Westchester Fire 34 36% Al All Immediately A\H for Your Old UftlJl I Fountain Pen THE PEN HOSPITAL [ 141 E. Wash. RL 1888

DI6 INVESTORS SEE SHORTAGE OF U.S. ISSUES Smaller Treasury Program for Balance of Year Bolsters Market. EY CHARLES H. HUFF Timet Special Writer NEW YORK. May 6.—Aside from new money requirements, the United States Treasury is confronted, for the remaining eight months of the year, with only little more than half the financing task it faced during the corresponding part of last year. Maturities to be refunded before the end of 1936 total only about $3,725,000,000. Os that amount approximately $1,800,000,000 represents bills that come due at the rate of about $50,000,000 each week and occasion a minimum of interest in banking circles. This leaves less than $2,000,000,000 of maturities to call for bond or note offerings during the eight months ahead. Institutional investors and individuals in the high income brackets are beginning to place a farsighted interpretation upon what this situation signifies. It is a reaction that is not entirely without a flavoring of irony, representing a wide departure from the tendency less than a year ago to heap broadsides of criticism upon the Treasury for the size and frequency of its financing operations. Expects Inadequate Supply Whereas institutions last year were prone to stand aloof from Treasury offerings because they were expected to come along in undiminishing flodd dimensions, there is a feeling now that the supply of thfe near future is likely to be entirely inadequate. This altered attitude toward Federal obligations is held forward in market circles as an explanation of the persistence with which high price levels have been maintained, in spite of influences which ordinarily would be expected to produce considerable disturbance. In three successive months most issues in the Federal list forged through earlier peaks and established new highs. The entire list accomplished that feat about the middle of last month, every issue setting the highest price of its entire record. The market was compelled to stand a test after each new peak, and while professional trading of inconsequential proportions brought on a, narrow setback in each instance, the forward movement was soon resumed. The explanation is that investors stood on the sidelines during declines, having no inclination to liquidate, so that it needed only their resumption of buying to send prices to new heights. Portfolio of the Future Institutional investors, viewing the present position of the investment market with mingled dissatisfactio nand apprehension, because of the lowest yields of a generation in all categories of high grade securities, are giving major thought to the future of their portfolios, a large pert of which it is customary to maintain undisturbed. A year ago many investment managers considered themselves topheavy in governments. Today many of them see no safe way to escape even larger holdings of Federal issues. With funds continuing to accumulate, and with coupon rates on corporate issues shrinking steadily, the move is toward Federals as offering a minimum of worry, once a reverse trend in rates is established. It is computed that since the beginning of this year close to $1,000,000,000 of corporate bonds, not yet due, have been refunded at rates 1 to 1% per cent lower than the old coupons. These operations have dipped especially deep into institutional portfolios of the so-called fixed variety.

196 BUSINESS FAILURES REPORTEO FOR WEEK Slight Increase Is Noted for Second Straight Time. An increase for the second straight time occurred in business failures in the United States for the week ended Thursday, April 30. The total as reported to Dun & Bradstreet, Inc., was 196, as compared with 193 and 174, respectively, for the two preceding weeks, and with 239 in the same week of 1935. Insolvencies with liabilities of SSOOO and over, in each instance, rose in about the same proportion as the total failures. These cases numbered 113, against 111 last week and 126 last year. EVERY SATURDAY NIGHT (Except May 30) 85.50 PITTSBURGH Leave S:3O pm or 11 pm, Saturday 83.75 COLUMBUS 82.25 Di YTON 81.50 RI CHMOND Leave 8:30 pm tr 11 pm. Saturday or 6:15 am. Sunday EVERY SUNDAY MORNING (Except May 31) 82.50 LOUISVILLE Leave 4.20 am or 8:20 am, Sunday Returning leave destinations Sunday Night—Coach Service Only FRIDAY TO MONDAY TRIPS 85.50 to CHICAGO Reduced Pullman fares in connection with tickets to CHICAGO 83.60 ta LOUISVILLE Coaches Only Low Round Trip Week-End Fares to All Points Phone Riley 0331

Tire Prices to Be Boosted Following a period, of rising raw material costs, leading tire manufacturers of the country have announced increases on all lines of tires ranging from 5'. 4 to 16 per cent .

Biisigraphs

BROKERS’LOANS {NEW YORK STOCK EXCHANGE) 1200 ■ '1 FIRST OF MONTH I * I x P/P f \/\ a *OO —— i PlPliPiP^Pn '.HI AMJJASOND J F M aI 193S 1938 THE RAPxfR CCRR GENERAL DISTRIBUTORS INCORPORATED investors

In the early stages of a real bull market large investors and institutions quietly accumulate well selected stocks. These purchases are largely for cash and are withdrawn from the market. As prices rise the public becomes interested. We can fairly well gauge the public's participation by the size of brokers’ loans. These have shown an upward trend since last September. In spite of this increase, brokers’ loans today are less than onesixth what they were in 1929.

U. S. SIGNS NEW TRADE TREATY Guatemala Agreement to Be Effective for Three Years. By United Pres* WASHINGTON, May 6.—A new trade agreement with Guatemala was described by the State Department today as a “sound basis upon which to build a greater effective demand for American export commodities.” The agreement, signed at Guatemala, April 24, is the twelfth pact signed under authority of the Trade Agreements Act of 1936 and the seventh with a Latin-American country. It continues in effect for three. years. Guatemala granted reductions on 14 articles imported from the United States and bound herself not to increase tariffs on 52 other articles. The United States agreed not to subject coffee, bananas, cabinet woods in the log and raw deerskins to tariff. Principal Guatemalan concessions were an agreement not. to increase import duty on wheat, flour and hog lard, and to accord the United States a 50 per cent reduction in tariff on oatmeal. Local Securities (By Indianapolis Bond and Share Corp.) The following quotations do not represent actual bids or offerings, but merely indicate the approximate market level based on nuylng and selling inquiries or recent transactions. BONDS Bid Ask Home T & T Ft Wve 5%s ’55. .103 105 Home T&TPt Wye 6s ’43 103 106 ludnapls Railways Inc 5s 67 65 69 Indianpls Water Cos 4%s ’40.. 106 108 Indianpls Water Cos 5s ’6O 105 107 Indianpls Water Cos 5s ’7O 105 107 Indianpls Water Cos 5%s '53.. 103% 106 Indianpls Water Cos s*/28 ’54.. 103% 106 Interstate TANARUS& T 5%s '53 97Va 98 Kokomo Water Works 5s ’58..104 lOaVi Morris 5 & 10 Stores 5s 'SO ..100 103 Muncie Water Works 5s '65.. 103*2 . .. Noblesville H L & P 6%s '47 .100 101V 2 Ohio Telephone Service 6s '47 97% Richmond Water Wks 5s '57..105 lOBV2 Seymour Water Cos 5s ’49.... 101 104 Terre Haute Tct & L 5s '44.. 106 108 Terre Haute W Wks 5s ’56... 102 104 Terre Haute W Wks 6s ’49... 103 105 Tct Terml Cos 5s ’57 75 78 STOCKS Belt Rail & S Y Com 531a 56 Beit Rail & S Y Pfd 6s 52 Central Indiana P Pfd 7s ... 13 21 Home Tel fc Tel Ft Wye 7s 52 > 2 54 Va Hook Drugs Inc Com 17% 19 Ind & Mich Elec Cos Pfd 75.103% 106% Indiana Genl Serv Cos 6s .... 98 100% Indiana Hydro Elec Cos 7s 55 58 Indianapls Gas Cos Com .... 30 35 Indianapolis P & L ct pfd 6s . 87 90 Indianpls P <fc L Ct Pfd 6%s 91 94 Indianapls Water Cos Pfd 5s .102 195 North Ind Pub Serv Pfd s‘as 6012 64 North Ind Pub Serv Pfd 65... 67 70 North Ind Pub Serv Pfd 7s ... 77 80 Progress Laundry Cos Com 10 Ilia Pub Serv Cos of Ind Pfd 7s ... 19 22 Pub Serv Cos of Ind Pfd 7s . 39 42 South Ind Gas & Elec Pfd 6s. 99 102 Terre Haute Elec Cos 6s ... 92 94 Union Title Company Com .. 19% 21% GRAHAM SALES INCREASE Time * Special NEW YORK, May 6.—Sales of the Graham-Paige Motors Corp. during April showed an increase of 40 per cent over the same month a year ago, the company announced today.

JtZ 4& ['dUHHfli, ••■■-- TRAVEL BY INTERURBAN I • * 'S You can be safe . . . and save, too, when you travel by interurban. The round trip fare of V/ 2 cents a mile is cheaper than driving. Safety first and saving always. j INDIANA RAILROAD SYSTEM BrEfflUTrilffliil irkrid’llri "s \ MMum < lklUiM*MMf ljfiitiiil_, y

TREASURY HAS PLANS TO USE IN EMERGENCY Prepared for Action in Case of International Fiscal Disturbances. BY C. L. SULZBERGER Initrd Pres? Staff Correspondent WASHINGTON, May 6.—Treasury officials today had announced that a complete set of plans have been drawn for possible monetary- action should international politics complicate world fiscal affairs. These plans are the economic counterpart of the famous "red.” “white” and “blue” campaigns of the Navy and War Departments. They delineate a line of proposed action in case of any major disturbances such as the revaluation of a nation’s currency or the laying of embargoes upon gold or silver. The secret charts have been the subject of particular attention during the last few days because of the unsettled French political situation. Two Experts in Charge The Treasury's course of action in event of any critical foreign currency maneuvering rests largely in the hands of George C. Haas and Harry D. White, director and assistant director of research and statistics. Secretary Henry Morgenthau Jr. thinks highly of the opinion of these two experts. Both have taken recent trips abroad to study, international financing at first hand. Mr. White visited England and France and Mr. Haas spent considerable time in Sweden. * It was learned that the problem which is most critically regarded is not what may happen to the French monetary position but what will Great Britain do in the event of a i devaluation of the franc or embargo i on French gold. Pegged Since 1931 Since 1931 there has been considerable bloc of managed currencies pegged to the pound sterling. These include those of Canada, Australia, New Zealand, Union of South Africa,. Egypt, India, Japan, Sweden. Norway, Denmark, Finland, Argentina and British Malaya. > The change in relation between the pound and the dollar that might arise out of possible revaluation of the franc would affect the currencies of all these nations and their trade with the United Staley. The Treasury's international relationships always have been the most secret of all its mysterious moves. The workings of the $2,000,000,000 stabilization fund have not been revealed. This fund was created when the dollar was devalued and $200,000,000 of it was taken for a working fund. Although the $1,800,000,000 balance appears stable on daily Treasury statements, no accounting of the gains or losses, buying or selling, of the $200,000,000 has been made public. Chicago Grain Futures(Reprinted From Late Times Yesterday) (By United Press) Prev. High Low Close close WheatMay 97% .95% .96% .98* July 87% .86% .67% .87 Sept 86 .86 .85% ,85% CornMay .62% .61% .62 . .62% July .61 .60% .60% .60% Sept. ......... .59% .58% .69 .59% Oats— Mav 26 .25% .26 .25% July 26% .25% .26%a .25% Sept. 26% .26% .26% 26% Rye— May 51 .50% ,50%b ,504i July 50% .50% .50% .50*4 | Sept 51% .50% .50%b .51 BarleyMay 36 lib .3614 I,a rd— May 10 92 10.87 10 87 10 95 July 10.70 10.55 10 65 10.82 Sept 10.80 10.65 10.65 10.85' a—ask; b —bid. LOCAL CASH MARKET (Reprinted From Late Times Yesterday) Citv grain elevators are paying 89 cent* for No. 2 toll wheat, otner grades on their merits. Cash corn new No. 3 yellow 53 .cents and oats 18 cents.