Indianapolis Times, Indianapolis, Marion County, 18 July 1936 — Page 11

Asserts All Stock

SATURDAY, JULY vy 1936

i Pace I

reached in made in fhe first half.

e 1930. 4A net guin of $35,000 phones was

Investors Are

Speculators. BY JOHN T. FLYNN

N= YORK, July 18.—At the University of Virginia a conference spent a day discussing questions of finance and business. The round table, we were lol Jn in the papers, was by the New York Stock Exchange. The president of the exchange, a stock broker and a Wall Street lawyer karo Tg Pl Beige Bo guess from what point fr

be surprised to learn that it was concluded that security speculation was an essential function in our economy and that it would rock the nation to its foundations if stock brokers representing the public were prohibited from gambling for their own account. The great point made was that security speculation is necessary to provide American business with financing and that, therefore, all the paraphernalia of the exchange is important because it stimulates security speculation.

s ” ” N investor, we “were told, is one who buys securities for income while a speculator is one yho buys securities for capital gain. This i a very imperfect definition, but we may accept it here. One can see that speculation in securities may take different forms. Mr. A buys. a share of stock for $100. He pays the $100 to the cor-

poration which issues it. The cor-

poration buys machines, develops processes, hires men. Mr. A hopes the business will flourish—that it will produce much goods and hire many men and sell its product and at a profit. One day, he hopes his $100 investment will be worth $200 or more. But in the meantime the corporation uses the $100 to build and hire and produce.

” ” 2 R. B speculates differently. He buys a share of stock. He buys it not from the corporation but from another man who already owns the stock. He pays $100. He gets the stock. The former owner gets the $100. The corporation is right where it was before. Mr. B doesn’t care a hoot about the corporation, whether it prospers or not. He buys the $100 share hoping to sell it next hour or next week or next month for $105 or $110. Both are speculators... Mr. A however, is also an investor. He has put money into a business. He is speculating in the business. Mr. B is a speculator purely. He is gambling on a quick rise in the price of the stock. Mr. A’s speculation helps business. Mr. B’s does not. But it is Mr. B’s type which constitutes 90 per cent of the speculation on the exchange. (Copyright, 1936, NEA Service, Inc.)

FREIGHT LOADINGS GAIN 74,565 CARS

Shipments of Grain, Coal and Livestock Running Higher. By United Press WASHINGTON, July 18.—Load-

ing. of revenue freight for the week |

ended July 11, totaled 724,324 cars, the Association of American Railroads has announced. This was an increase of 158,822 cars above the cortesponding week of 1935, and an increase of 74,565 above the preceding ‘week. Coal loading amounted to 107,878 cars, an increase of 1909 cars above the preceding week and an increase of 31,988 cars above last year. Grain and grain products loading totaled 56,250 cars, an increase of 14278 above the preceding week and an increase of 26,969 cars above last year. Livestock loading amounted to 14,402 cars, an increase of 3006 cars above the preceding week and an increase of 3355 cars above the same week last year.

AIR EXPRESS IS GROWING

Revenue in May 60 Per Cent Above

1935 Figure, Times Special NEW YORK, July 18—The air express division of the Railway Express Agency today announced May shipments handled numbered 35,434, representing a 60 per cent increase in air express revenue over the

combined air express revenue of the |

PRODUCTION IN WORLD FOUND LONER IN MAY

England, France, and Italy Hold Nearest to Level, . Report States.

Times Special NEW YORK, July 18.—World in-

port. Great Britian, France and Italy more nearly held up to the previous months level than other countries. Belgian steel, coal and textile industries declined in May, a condition partly attributed to the uncertain political situation.

Strikes Hit France

In France, business activity showed little change during the early part of May, but during the latter part of.the month and in June output was noticeably retarded by the outbreak of strikes. In Italy, industries engaged in the manufacture of military supplies showed little recession. Activity in the United Kingdom remained at a high level in the captial goods industries, although operations in many consumers’ goods trades are still below capacity.

wo

ence Board further reported that only the usual seasonal amount of decline was apparent in the gold value of world trade. The combined index of 75 countries (excluding Italy) stood at 35.8 per cent of the 1929 average, Yas compared with 36.9 per cent during March, and 32.9 per cent in April, 1935. Raw Materials Lower The report showed world prices of foodstuffs and raw materials to have declined during May. combined index of nine commodities stood at 67.4 per cent of the 1928 average, as compared with 68.1 per cent in April. Cotton prices were relatively unchanged; copper prices slightly higher; other commodities lower. Wheat rose sharply late in June and during the early

United States and Canada. Wholesale commodity prices, according to the conference board, were lower d United States and Great Britain, but were substantially unchanged in Canada, Germany, France and Sweden. : Security Prices About Same Security prices were little changed | during June in a majority of the 11 leading markets. Prices in New York, Berlin and Milan were higher. Securities on the Paris exchange declined to new low levels, but recovered late in June.

ported an advance in foreign cur-

dollar. ; The franc rose sharply in response to the fiscal program of the French, government. The pound sterling advanced to a high péint for 1936 on June 16th, but declined later in the month as the gold-bloc currencies rose.

REALTY BONDS LOWER|=

Average Price During June Drops 3 Per Cent From May

Times Special NEW YORK, July average price of real estate bonds

cent In June from the previous month a report from Amott, Baker & Co. said today. Prices, based on the market action of 200 typical issues, advanced 44 per cent since the first of the year, while the average prices for $1000 of face value decreased from $334 to $333 during the month. The price on Jan. 1 was $319.

- Local Securities (Reprinted From Late Times Yesterday)

(By Indianapolis Bond and Share Corp.) The follo quotations do not

ket ‘level uiries or

Citz Ind Tel (T H BH Tel Tel Rw §%s '55

H & 6s '43 . Indpls Rail mes 5 & Jndpls Water Co 4'2s ‘40 . Water Co 5s °* ater

4%s ‘61 .

division's contract air lines for May | ore

1935. . Railways Express Agency's cone

Noblesville H L & P Sas '47.. Ghio Te Sarva 6s 47

solidation by contract covers almost | Richmond W W 5s *

all of the country’s air lines. On Commission Row

Ra gen,

a Lemons— Sunk Sunkist (3608 $11, © Aid Ean os 00 Jind 12s), 90c. ait bushel, $1.50.

1.65, Plums—Red Grapes—Seedless, $2.00" hn

T H Water Works ies T H Water Works 6s . Trac Terminal Co 5s 57 . a I STOCKS

coun 8

TE

BE i

i

i

TRUR cocci... 0nonnns Hanover ...... i» - “ea 1] a

The National Industrial Confer-|

The.

The Conference Board also re-|McK rencies during June in terms of the | Qtis f during the latter part of the month |Z

owing re; resent aotusl ds or SffeHngs, but merely In

JUST TWO FORMER BIG SHOTS

New York Stock Exchange Prices

(By Thomson & McKinnon) (Reprinted From Late Times Yesterday)

High Low 106% a 30 :

3 Pre Close Close Ollgee Amerada .... Atl Ri "

part of July due to drought dam-1{ Consol Oil age in producing areas of the|x

May in the|pyr

Corp Tidewater Asen.. n Oil of Cal Steels— Acme Steel Am Roll

Natl

Rep Tron Steel 3 Rep 11] Im. pid. oe e & a

Ya U 8S Steel pid. «126% Warren Bros . 8% Youngst'n 8 & T 687 Motors— Auburn ........ 33% Chrysler ; iH Gen Motors . 0% Gen Motors pid: 121% raham Mot 2%

3 . 35% 16%

Studebaker : Yellow Truck

Motor Access—

18—The |p in the Middle West dropped .3 per |Bri

in Houdatlle Murray Body.... Stew Warner.... Timken Roll .... 6 Timken Det Axle

Bu, Sones FE EERE

pews was feRRiey BESS HonmtoNy 83 SARE Fa

on =

[o3 NER g3sua

engSena un 2SNSS aE aR NSE

SE a=8 EF #

bo pe

v. | Interboro R T.. Int T&T.

Ya | Am Sugar

Prev. High. Low. Close. close.

13% 143% 25% 12% 32

13% 1

40% 45% © 47 30% 193; Y% 17Y, 43

Pa G eople Puts Ser vo ge ol Cal Edison. . Stone fa Webster ahs

United

Un Gas Imp ot Pwr & Li 0 estern Union.. 90% Rubbers— rtestone Good!

Goodyear U 8S Rubber .... 29% U 8 Rubber pfd. 74% Miscellaneous— Allis Chalmers. Am

Am Mach Anchor Cap . a Brklyn Man Tr 49 Burroughs Add. 18742

477% 137%

Sonty Caterpiliar Tract: Ten Crown Cork Curtis Pub Deere & Co 73 Eastman Kodak 176

4

7a ingeci adden 135 ch..

Inter on Natl Cash Y Reg.. 28% Qwens Bottle .. Rand e 2 Ya

Fy E . Worthington Pm.

Foods—

31%

55% Armour 5 Armour ¥%2% pid. 73% Beatrice . Cream. Borden Prod ... 31 Cal Packing Can Dry G Ale. . Coca-Cola

Retail Stores— Alieq Stores .... Goods. 1

6% Boeing ALE « 28, 6%

Curtiss Wright .

Tr i 7 | Tr Contl Corp . 10%

Asphalt | Holland Furnace 37%

% | Col Pal Peet.... ng.

REPORT, HEAVY

Monireal Bank Reveals JFarm Conditions in Canada. Times Special

American Business Shas

“SHOW Re MAoTs

Salad and Cold Dish Items “in Good Demand; Price ‘of Melons Up.

Times Special WASHINGTON,

By

July 18—City

| markets showed variable conditions

during the extended heat wave, the weekly midwestern report ‘partment of Agriculture said today A

cold or used in salads. Watermelons sold especially well. But such

and peas met slow demand and a rather weak market tone. Cantaloupes, melons, lemons, plums, cherries and lettuce sold well with prices tending upward. Toma-

| toes sold fairly well at prevailing

prices but reseipts continued liberal and prices failed to advance.

Rid of Early Melons Watermelon carry-overs from the

‘| heavy shipments of early July were A disposed of although there was con- [4m Wat Wk

siderable waste and decay in some time on track. As the old supplies

er on fresh arrivals of good quality, mostly from Georgia, South Caroilna, Louisiana and Mississippi. Values advanced sharply in southern producing ° sections where ' carlots sold around $200, compared with $300 to $400 in northern markets.

while Arizona supplies picked up. Some midwestern markets were receiving local supplies.

Truckers Haul Both Ways

Truckers were reported interchanging loads to an increasing extent, going southward with celery, berries and cherries, and returning with early apples and other produce. Hot weather was said to be part-

Prev. | ly responsible for slower demand

High. Low. Close. Close.

Surtiss Wright A 33 17% 17% Dougls Air 713% 10% Nor Amer Av .. : 8Y,

A United Aeds nw 30

Chemicals— An Seduction. . .

% and declining prices in the Chicago Kansas cobblers |

potato market. groped about 50 cents, s g at $2.25 to $2.40 a 100 pounds by the carlot. Some, showing heat injury, sold lower. Dealers were making

7 5, | every effort to keep supplies mov-

1 2 ing to prevent further injury of

Liquid Carb .... 31% Math Alkali .... 31% 3 «0 39Y2

ew). Dist

Union Carbi U 8 Ind ‘Alcohol 3514 Drugs—

Coty Inc .. Lampert,

e Zonite Prod ....

Financial— Adams Exp .... 13% Allegheny Corp. 4 Am Int Corp ... 11% . 85% ..105 oo 13%

Building— Am Radiator .. 21% Gen Asphalt ... 25% Int Cemen Jo Manviils. 13% wens Gls 63% 67%

Household—

A Simmons Bed ... 33%

Textiles—

Chicago Stocks

(Reprinted From Late Times Yesterday) (By Atkins, Hamill & Gates) x Prev.

Close. Close. Yo...

Sra Butler Broth Chicago Yellow Cab Sities

| Commonwealth Edison <¢.. Cord

Nat Nobile Soarks Northwest Bancorporation, eess 8% Perfect Circle vee St Louis Natl StA¥ds........ § Dredge rid win

cesses

New York Curb

(Reprinted From Late Times Yesterday)

{By Atkins, Hamill & Cates)

| Cutter, com.

{de*ay. Prices are nearly double this

year because of the better consumer demand, the report said.

Home Gardens Suffer

Home grown supplies of potatoes, corn and tomatoes were increasing

had shortened up the crop. Growers reported only small yields of beans, peas, cabbages, tomatoes and lettuce. Prices were expected to rise if the drought continuéd.

700 carloads in the second week of

{2 | July, the weekly bulletin said. The Y2 | total was 1500 below the figure for

the - corresponding week of 1935, however. Heaviest gains were in

34 | potatoes, up 500 cars; melons, 600;

apples, 200; pears, 400. Decreases were reported for cantaloupes, down

Y2 1 800 cars; oranges, 200; cherries and

corn, 100, each.

L Local Livestock 12

(Reprinted From Late Times Yesterday) : HOGS July

11,

Bulk

[email protected] 10.20@ 10. 45

Top. Receipts. 1500 5500 4000 3000 2500 10.90 4000 Light Highs: 140-100 ) Good and choice. +910 0.801548 10

ha 80-189) Good and shotes:,

i: 5

10.85@11. 10 10.95 . 10. Sail. 15 10. 10@10. 95

eight Good and choice.. [email protected] Good and choice.. [email protected]

weights [email protected]

@ -290) Gool and choice. . (290-350) Good and choice. . [email protected]

Sik

(425-450 Good .. (275-550) Medium ....... Slaughter Ps J100.140) and choica. .

| Medi

©S meow

i

—Receipts, 500— (550-900) Choice Good

boy hen

CORLL ER® PAPI OTN NWI STWR NIT

Ss3hshehsas anaes subksusksushyy

233

03800 098690

sede

(750-900) Good a I Jo's Common and medium

dd halal 2JONINGRIVMNAII

mmon and medium .. Low cutter and cutter . and med. bulk.. VEALERS

SAR hg Sagas 33

sesso ssae

; i EE and. edi Ape

ER

" OF HEAT WAVE E:

of the De3s

good demand was reported for | 33 light foods such as those served |2%s

products as potatoes, onions, carrots 2

cars that had been held for a long [2 were cleaned up, prices moved ‘high- | Gri

in midwestern markets but drought 8

Produce shipments were up about’

choice $9.00 ws ctiranneeief S00 250 2 - . 8. 33

(Reprinted ea Late Times Yesterday) DAILY BOND INDEX {1928 Average Equals 100)

omen —

Sssasacccstenne

Ssessssvsssanee

Conviction Low Interest to Remain Revives.

BY CHARLES H. HUFF Times Special Writer

ity of several Treasury ‘Pond issues,

10333 | notably those which maintain the

greatest day-to-day market active

, | 1, to push through to new

prices for the year, after approxi= mately two months of swinging be= low the previous peak levels, | widely accepted among close in ment market observers as.an inflex of paramount significance. doubtful sentiment, to tent, has now been swerved over

. | to the belief that the era of low in:

terest rates is to be prolonged and that the trend may still be toward

{even narrower yields.

The ultimate effect of the in=

4 | crease in reserve requirements re

73 Cieve Un Term 4428 1 Col Gas 5s May '52 .

Cantaloupe receipts from Cali- ht & fornia were reported decreasing|S

Cnesa Corp 5s 47 .. Ll & Huas 4s '43 ..

arie 9s ‘oi ve Gry Northern “G’’ 4s '46 .... Grt Nortnern “RH” 4s ’46 ... urt Northern 4Y%s ‘77 Gen Stl cast

Yas T i Cont Jt “Ss 63 ier BU dl Cent 5s ‘6d interooro Rapa, Trans > '66. . Internati Hy lec anternui Tei & Tel tn ‘39... Interntl Tel & Tel 55 ’55 dncernu ‘rei of ‘iel 4¥2s '53

Nickel Plate 4s "es ... Nickel Piate S128 ‘it . p N XY Cent bs 2ui3 ve 902 N Y Cent 4's 2013 Jo own N Y Cent Conv Nor Amer Co YG oat Nor Pac 3s 204 Nor Pac 6s 2047 Nor States Pow 5s ’41 . New urieans ‘Term 4s '55. Otis Steel os, 4 Yenn Ry 4s ’6: renn xy 4%s ‘84 renn Ry 4%s ‘sl .. Penn Ry 3%s 0 .

Socony Vac 3%s8 '00..c.c000. oe [104% Sou Frac 4'%s ’068...... « 918 Sou Pac 42s '8l..

Texas Pac 58°10 .«..... weesnns .103% Third Ave 444 | 38% Union Pac 4s '47........ soeneslld United Drug 5s 53 ines seeeses 101% U 8 Rubber 5s '47....... 10! NY NH & Hart 6s 48... NY NH & Hart 4%5 '67.cc00000 29 Warner Bros 6s ‘3 . Western Union 5s’ re Youngstown 8 & "61 Youngstown S & T ais *51.. FOREIGN Argentina A 6s ’57 Australia 4%s '56 Brazil 8s ’41 Canadian Govt 4s 60 Denmark 4%s ’'55 French Tas ’41 German 5%s. '65....... German 7s '49 sesesissnee . 32% Japan 5%s ’54 Rome 5%s ’52........ sassivens 79% Tokio City 5%s '61 Yokohama 6s ’61

New Bond Issues (Reprinted From Late Times Yesterday) (By Lyons & Co.)

As Tel 4s '65 4%s ’

& O Broskiyn Fatson i '66 Cal Ore Pwr Central sine, % 0%: Cent Ill or’ os: £0 as Co Un st. 3%, a est In 4

: 105% 29

Shi”

Pac Lite 4 Pac G & B 3%s ‘61 Peo Gas Lite & Coke 4s ‘61... Penn Tel 4s ‘65

48 "60 ..ovc0ee. 103% 3%8 51 _...ce0e.. mee he bo sugnl)

Penn is os gi 106% Gas & Elec 3%s "66 ....103 Lt 4s 6% 98%

oe

mains to- be developed. The ims mediate reaction was traceable to psychological. disturbance. * At the beginning of this month it was held in many quarters that the first half of July probably would

3 | provide an indicator of what to ex fe pect in the way of dominating’ ine

fluences in the borrowing and ins vestment markets.

Portfolios Held Intact

It already had been demop strated, during June, that Johg term portfolios were being ) tually intact and that min declines in the various categories had reflec letup in buying and little or noth= ing in the way of .liquidation. It was largely a period of mar

institutional investors, ; immediately after the Treasury's $2,000,000,000 refunding and borrow: ing operations.

Summer Break Awaited

Tradition weighs so heavily upon the financial district mind -that opinion became almost unanimous that there would be in 1938, as there was in 1934 and 1935, a summer price break of substantial dimen sions ineall forms of high-grade ine vestment paper, for no more tangi= Bie reason than that another sums mer was at hand. Where that d not actually exist as a belief, it hov: ered at least as a fear. Investors, therefore, largely assembled in storm cellars and waited. The hesitancy of institutions

#2 buy in the government bond mars

ket, following the June financing

« | of the Treasury, was pronounced,

despite the fact that such insti tions obtained only a part of Ww they wanted of the new offerings, The last few days have brought acs

{ cumulating evidence that the attis

tude has changed. Once again, & it has been demonstrated that much buying of government bong can be hccomplished without se ing prices upward. Hand in hand. with the new energy evident in the gove:

i+ | bond market, large investors plainly’

are expanding their interest high-grade corporate bonds. All t line paper, including rails, util ies and industrials, is commands ing top prices. The stage is well seb for successful refunding operations in the high-grade field. Little rea= son is found by underwriters to be

+ | backward about proceeding with

the recently established lows in coupon rates. Security markets regularly pro= vide examples of the price of ims patience. Early in the year the : maturities of the New York, hanna & Western moved up sharp= ask) from distress price levels, due a conviction that the Erie Railroad would see to their refunding after the turn of the year. But patience

4 waned and again the prices sa is | After a long recess, the “barge % | again have become an attraction ii |and a new skyrocketing performs

ance is being staged.

SILVER IMPORTS. DOW

Receipts Also Decline fo ‘Week Ended July 10.

Times Special WASHINGTON, July 18—The Department of Commerce re today that silver imports for the week ended July 10 fell to $1,266,993

+ from $10,822,706 the preceding week,

Gold imports for the week totale $5,712,064, compared with $5,326,265 for the week ended July 3. Exports: of both metals were n

CHICAGO GRAIN FUTURES (By James E. Bennett & Co.)

5 S18 ou vag a ios 10d Tose 88% 89%

Wh Bon

essevens

had | pec.