Indianapolis Times, Indianapolis, Marion County, 9 July 1936 — Page 22
R efutes Idea That
“THURSDAY, Joy 9, , 1096
Mass of People ‘Speculate. BY JOHN T. FLYNN cee!
YORK, July 8.—As there been some activity in our stock markets this year, may we not ask who has been doing all this
g? $ Who, in fact, are the customers of the New York Stock Exchange? 2 have been told Hite Shan Sloe t aljpost every one a few “ollars speculates in stocks. We can recall the brave days of 1929 when, the
away with the market. Every-
elevator operators, were plunging madly in the market. Now the mar- : ket has shown signs of life. We had quite a flurry May—such a flurry, in fact, that any began talking about tightin up the margin rules in the rket. When these spasms of “speculation occur, the impression of _ geourse always is that the populasgion flocks into the market, My yown. belief has always been that .this is a preposterously exaggerated notion. Now the Exchange furnishes some data on the subject. a yy = = N a report just made for an en- : tirely different purpose, it fgives out figures of certain:studies = t has made of all the margin acunts outstanding on certain days. ion May 29, 1936, there were outtanding 205,884 margin accounts fon brokers’ books. This is to say sthat 205,884 persons were specuting in stocks through New York iStock Exchange brokerage memers on margin. Now orgs is certainly a very small number of persons. But the figure > in line with what is already known. In studies of a similar ind made by the Senate Commitee on Banking and Currency, it was shown that on a given day in : po 1929--at the height of the ulative fever—the number of aren accounts was 340,019, and Sn June, - 1933—during the wild culative hoom of that month— e number of margin accounts s 269915. This is a long way rom embracing our whole popula-
on. : 2 ”
-» OW these figures are, of course, not limited to those culating ‘on the New York ‘They would robahly include also those specuting on the Curb. Because Curb xchange members do little or no ‘husiness as such directly with the public, the business on the Curb is ‘given to members from Stock Exange houses. So that. a very large inber of those speculating on the Lil would be Tepreseniied in this
ex i For New York member houses have seats on almost all the
oat number of those playing the ame in the Chicago, Cleveland, adelphia, Boston, San FranLos Angeles and other ex-
{Copyright, 1936, NEA Service, Inc.)
405 RECEIVERSHIPS ENDED Times Special WASHINGTON, July 9.—The liqpidation of 16 more bank receiverhips during June carries the total fbwhich have been finally closed or restored to! solvency since March, 933, ‘to 405, William Prentiss Jr., urrency controller, revealed today.
On Commission Row
ti below, subject to change (Quotations olasale prices being offered
ia, 30 3b
BC ples i360). or } Re Ts
Prog Loundr
- Lot avs : EE di
{Administered Fund 3na.. | Ame i, B
CONSUMERS OF STATE SEEN IN 6000 POSITION
Incomes at 17 Per Cent " Above 1935 Period.
The estimated incomes of Indiana consumers for the next six months should be 17 per cent Iazg-
year, ording Income Map, published foday. Based on current data, the survey indicates that the estimated income of consumers in the United
cent greater than in the last half
the average for the period during the last three years. Compared with’ the three-year average, the change in Hoosier consumer . incomes is fixed at plus 40 per cent.
Prospect “Fair” Here
Yet the Brookmire forecast said: “The trade outlook for the. last half of the year is for a lull, probably in late summer, followed by renewed expansion.” The prospects for business in the last half are rated as. “fair” for Indianapolis, and “good” for both
only-three cities of the state specifically mentioned. : The outlook, according to the map, is better in the Northern two-thirds of the state than in the South third,’ except for the territory adjacent to Evansville.
Regional Prediction Made
For the ‘central. manufacturing states,” composed: of ‘Indiana, Illinois, "Michigan, Ohio and Wisconsin,” prospects are described as follows: “Consumers’ incomes in the last half of 1936 are estimated 18 per cent larger than in the same period last year. Industrial production in May continued the rise that started in March which was contrary to seasonal expectation. Bank debits, electric power output and building maintained year-to-year gains bs-
pay rolls widened their gains. April farm income showed gains over last year in Illinois and Michigan only. Drought condition east of Illinois makes crop prospects less favorable. Trade in the area during May was at better than seasonal levels, while June reports also should be at a good level, for summer; better later on.”
VOTE EXTRA DIVIDEND
Times Special Ss NEW YORK, July 9.—Baltimore Sh 11
American Insurance has announced | that the regular semi-annual divi-| dend of 10 cents, plus an extra of 5
Re “rn ont Local Securities (By Indianapolis Bond and Share Corp) The jollowing quotations do not re resent actual bids or offerings, but merely indicate the approximate market level based. on buying and selling inquiries ‘or recent transactions. BONDS
Citz Ind Tel 9 H) 4Yas ‘61... H Tel Tel Rt W 8's
a
3 Muncie Water Works 5s ’55 ..103 Notjusville HL&P 6las "4. .101 0 Tel Serv 6s * 100
*North Ind Pub 4, 8, 8 108’
d Gas ec pfd 5s..101 oOo 6s » +. 98 3
Ey niga Bil 0a dom ser ssvasws 20
Investment Trusts (BY Thomson D. Sheerin =o
310s 4 Fund. Inc
Ralls ances B 32 Dhio White 4 bushel, 1.28.
Eso eset od Gh i " New York Curb
= v Aim, Hamill. 4 CO) . (By “1PM. Prev. : N.Y. Close
10-1b. a :
a Nation-Wide Sec Co . Nation-Wide Voting 1. i at on. 2053 3.36 er North Amer Tr Shs (Orig). 8 (OTK) ie
oct | Amer Sie In cted Am ive 10res. » t Invest Corp
. Inc (Deis)
1 13.38
Estimate Places Hoasier |
States as a whole should be 14 per of 1935 and 31 per cent more than |.
Evansvyille, and South Bend, the
tablished in April. Manufacturing |
The: outlook is slower O
cents, is to be pafd Aug. 15 to stock‘holders of record Aug. 1. 3
"ANOTHER PAGE
New York Stock Excha nge Prices
(By Thomson & MeBinnen)
High Low 3 $ Oils— Amerada Atl Rig Barnsdall
. Y Mid Cont Pek, 1-3
-~ | Ohio Oil ous "| Phillips Pet .... 42%
Pl; mouth oil ve Pure Of.
Un Oil of Hg A :
Am Roll dn Beth Steel
Ludlum Steel . McKeesport Tin 100 Mid Steel a6 Natl Otis Ste
Studebaker .... Yellow Truck. .
Motor Access—
Timken Fimken Det Ax
Anaconda Cal - Hecla ... Dome es +.» at Nor Ore ... 11 Ing Copper .... Int Nickel .... ‘181 Creek Coal.. 25 Kennecott Cop. .
Warner Bros ... 90% am Tobacco ‘B 101% %
Ci 59% ers B 110 & Sivers
Lorian % fortis : > igh Tob B. 55% 7
Crown Cork Curtis b ecre
Gillett Glidden Ingersoll Int Bus Mach
“1. Foods— 5 Am Sugar
Co’. astman Kodak g Foster Wheeler.
Rem n ve Underwood EB ..
si Ln | ith
: 188% 26
[12 dh : or
14 43% 29 171% 80%, 22Y, 187% 18 1%
5% 52%
N.
se Gus
1936 Jos
‘Pederal
Con Gas a Chesa Co:
2 opreiehe i
Y. Bonds
: (Reprinted From Jats. Times rime sorter
4 rota ae stun 1 am
168% FN 28 |O
590% Arm
United Fruit ...
3 4 A 0Ya 2 13%
100% 2 13
OY 311 41
2
Retail Stores—
Allfed ‘Btores °..: Assd Dry. Gol
ids. Balls. gen, 20% | nt
1036. Soandard ‘siatistics) :
U.’S. GOVERNMENT BONDS . (By Abbott, Proctor & Paine)
side insiinestsans
sncasadongacevs.
“Home Owners Loan “Corp. | 1940 ...... hase sle “esei10. 1m a 1953 | = i 9
Farm ‘Morigae: Corp.
; Chemicsls— Air Reduction. . Alli
ied Am Com Alco 1 Ys. adfis
1
. 28%. “38 27.
rh... Dist .. 39% p
UB 1
ars Myers. . La Da
Lehn & Prey. | Sterling Prod Un Drug (new
*S py Noss, 4%s '4
Zonite Prod ... © Finsnelat— ' Adams Bxp .... Corp. orp . man Corp Transamerica. . Tr Cont! Corp.
gar | Lindy Owens G.
Tien ¢ um...
evese
3 ‘ Household : pine un HT
Nao AF 98 "esp LEY : fd aa
” Chicago Stocks’ E
on
0. 3% an
md
un 4
. 13% ® » ke 19%" 41%
Gis 58
H.
10%
in
18%
0% 339;
Pi 1
26% ne
14%, 13h - 34
an 39% n Ya
AW
“i
1% 3%
19 101% 10%.
i - “ uw pes dng
26%. 39% - 383%: >
93 92 39% 2%
STEEL CON COMPANY
Eamings of of $2.32 or More * ‘Seen for Continental's Fiscal Year.
tinental Steel Corp. are traded, are
the company between
$650,000. year ended June 30.
Such earnings, would be. equivalent to between $2.32 and $2.57 a common share on 200,590 shares. outstanding. The company operates mills in Indianapolis, Kokomo, and in Canton, O. For the fiscal year ended June 30, 1935, net income was $481,978, or $1.68 a share on 175,649 shares then outstanding.’
9-Month: Net Was $391,175
Continental Steel reported for the first half of its fiscal year, the six months ended Dec, 31, 1935, net income of $336, 832, and for the March quarter, net income of $54, 343. This amounted .to. $391,175, These earnings have been revised upward because of . disallowance by the . Treasury. Department of what was said: to be excessive depreciation charges. Furthermore, June earnings are expected to be bolstered by | year-end. credit adjustments. The Chicago observers said they had learned from reliable sources that earnings ‘for the first 11 months were approximately $600,000. After preferred dividend requirements, that would be equal to about $2.15 a share.’ This was better than was anticipated: after the nine, months statement was studied. rd
Expansions Under* Way ©
March quarier. earnings were said to. be somewhat restricted by unfavorable. weather prevailing throughout the period, as well as by" what was termed an unsatisfactory price situation. Prices now are understood to be satisfactory with the exception of wire prices which are declared ‘to be slightly unsettled. ‘Last January thé company raised $1,000,000 by sale of "25,000 ‘common shares. Of this, $285,000 was ap-
{ propriated for improvements and
additionis to the Chapman-Price plant: in“ Indianapolis. ‘The Canton plant was allotted $135,000 for -expansion.: The Kokomo wire mill was scheduled to use $360,000 for improvements and additions. The balance, $220,000, was added to working: capital.- - - As of -May 31, . 1936, current assets of. the .company. totaled $6,601,940, of which $843,181 was. cash. Current
{iis | 30,1085, current. assets were. $5,495,
et 1%
38 i Fda 289" 35% 38%
a 41% Ya ] 8
13% i) -
742, including cash, of $1,092,860 Liabilities then. were ' $992, 510. :
New, Bond Issues
By Lyons & co) Asso oe 1.4 B
28 3 St 3%s ’63 i Lg | $
clumps c Hue 3 lace Eodany Js Cudahy
{2 | Eastern i od Bec w y SS
Fail Jowa South Beil Sts 150
Jones & Laiighlin 415% 61 a Kansas PB L 478 ‘65 .. 0
Cleve
0 0 0900000
20% iy Minn Gas #8
12% Bi GE ? 3%
ii [ERE Sie 1%: un Peo’ Gas
16% his 7 8% wt
“10%
ii ae
1
(By Atkins; Hamill '& Gatés)
ge |
f 5 8 a Potomac Elec Pwr 3%s on. 108% s ’60 . .108
hi _ Other Live~tock is ate {By Dnited Press) ¢ 1 io “airects, market slow;
Weheiasy: 0.06, 240 10 Ba 310. “Gait sas tisacs, 0a: ew. $825. pia wk Sin or less at a standstill: Jednosds wala te reek | * a on Heda most fed sheers at ; a: weak io e herters: ae Lares
.
he PY
it i pointed out, |
‘abilities. were: $1,250,586. - On: June |
. | Medium weights:
103 , | Slaughter pigs:
2a 0 ror
Er ARRRET - AA mm.
E ;
PARKER CORP, Is’ INCORPORATED INVESTORS
Consumption of cotton by: our mills in May passed a year ago by 13 per cent and was very close to
10 years. Alo, cofton on’
c stacks of
However, due to inequalities in labor rates in different sections of the country some mills were busier than others.
TRADE RESISTS USUAL SLUMP
Several Industries Report “June Business Better Than in May. J
i =:
Times Special > NEW YORK, ‘ July ‘9.—The expected decline in business activity which usually characterizes the late |
spring’ and early summer Seasons |
has’ been: comparatively small - this year; a report by the Standard Statistics ‘Co. said today. The monthly indexes, by which the economic state of health of this country is ‘determined, show many industries which have gained for the month of June against the preceding month. Heading this unprecedented list is the steel industry, which probably reached a new high for the last six years as a result of the heavy purchasing caused by the anticipation of price increases, effective July 1, Other indexes. to register gains are farm products, commodity ‘prices in general,: stock and bond’ pricés, commercial loans, stock exchange sales and batik debits, the reports said.
Automobile: production was probably the principal activity to be slowed down, although, here again, the production was maintained at
.& higher level than in recent years.
Local Livestock’
| HOGS Bulk.
[email protected] [email protected]
Top. Receipts.
$11.00 4000 11.20 3500 [email protected] 11.20 8000 [email protected] = 11.10 7000 : 11.90@11:006 + 11.10 6500 10:78 10.85 . - 10.85 4500 "| clin if lghts (140-160) Good and: choice. $10. [email protected] Me dium [email protected]
Lightweights: : ( ve. . 10. i rh : S.1an
i
10.35 10.30
and ‘choice.’ and choice..
(200-220) Good (220-250) Good Heavyweights:
(250-290) Good (200-350) Good. Packing sows: (15-350) Good 3 (350-42 od
ae) Medium ei
10.65 10.60
and choice.. [email protected] and choice.. 5.158100 |
8.25@ 9.40 878
ii He 8.75 or ivens 0.83 7.78
8.25 1100-140 Good wii, 0. Modine ) and choice 3.18 Nx» Receipts, 700— - - 850-900 Choice ( ) e
2238 338u332v33@Ls NRINE WOIBOSINOAIN Sousa | 83u33uv33sRss
CP etean
Danse rir 388 3 Sonim oach ba833
5 ea SR oan 38 B32
(250-800) Good and choice. Common
hy gs of + ~on 83
(500-800) Good and choice. .
03 OP Md CL
83 sas
bal et 28 3333
[amen
“strong: vealers steady to | Ewes
on OF BANK LOANS SEEN IN FUTURE
Author Predicts Bankers Will Be Clippers of Coupons.
BY RALPH HENDERSHOT Times Special Writer . NEW YORK, July 9.—Bankers of the future are doomed to become
the average consumption of the last ~coupon clippers”+is the prediction
of W. Von Tresckow in a new book, “Merchants of Debt.”
The author presents some rather formidable arguments to sustain his contention. The concentration of ° American business in the hands of a relatively few corporations with plenty of cash to
| meet their needs,
he says, greatly reduces the pres-: ent and potential need for bank borrowing. Several other factors or combinations of circumstances have sidetracked hank ; : borrowers, according to Mr. von Hendershot Tresckow, who is an economist assos ciated with the investment managee ment firm of Young & Ottley, Inc. The lesson learned in 1921 to avoid inventories, the greater speed with which goods are manufactured and transported to market, and the quicker turnover. because of adver tsing are but, a few of them he
lists.
Ratio of Loans Decrease
In 1929, the author. points out, for every $100 of capital funds there were $509 of deposits, of which $179 were in bonds and $428 in loans. By 1935 the ratio had changed to $6569 of deposits, of which $309 were in bonds and $261 in loans for every $100 of bank capital.
The change which has taken place and which Mr. von Tresckow | is permanent presents an interesting problem for the bankers. For one thing, their influence over business is certain to lessen. At one fime business men went to their bank ers regularly and often for accome modations. They laid their cards on the table so that the bankers might be able to determine the degree of safety of the proposed loans. : Investors Supply Money Big business now goes direct to investors when it néeds money, and it may or may not furnish as much information about itself through the prospectuses it first offers for ine spection to the Securit les and Exe change Commission. Business undoubtedly benefits by going direct to investors. It is able to get more favorable rates and it is able to borrow for longer periods of time. But what about the bankers? Their lot would seem to be made more difficult. They must in line ‘along with investors in o to: make their. selections. No doubt out. “of courtesy they will continue to have ‘access to facts denied. to outsiders, but their contacts are unlikely to be anywhere near as clase as-they have been in the past. Sees Loss of Political Power: - And without these close contacts they probably will be unable fo watch their investments as carefully as they - formerly watched their loans. And, with the control the gove ernment now exercises over the money market, their influence 6n national affairs is certain to suff They are apt to become Yel rather than directors of business and political policies. The smaller banks are likely io suffer the. most. The last depression
‘proved beyond any question of doubt
that -they were not keen investors, They were heavily laden with all sorls of “cats and dogs.” They may have learned something about the business, but if is doubtful if the smaller ones can afford to maine tain investment departments cae pable .of making salisfaciony. bond selections.
U. 8. STORES BZDUCES LOSS Times Special NEW YORK, July 9. —United States Stores Corp: and subsidiaries today revealed a net loss of $147,014 for 1935, after charges against loss of ‘$151,607 for the preceding year. ? —————————— A At,
Other Livestock :
(By Times Special)
IS REPORTED Fei