Indianapolis Times, Indianapolis, Marion County, 7 September 1936 — Page 4

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B ‘MONDAY, SEPTEMBER 7, 1936

‘Airplane Sales commercial airplanes States were 48 per cent more in the first siz 1936 than in the corresponding 1935 period, Leighton W. Rogers, president of the Aeronautical Chamber of Commerce of America, announced. : boo

built in the United months of

Are Increasing Steadily.

/ BY JOHN T. FLYNN

ANTJEW YORK, Sept. 7.—One in=teresting fact emerges from the President's statement about the government's finances. It is that if we increase the national debt this year it will be due to our . enormous war expenditures. The President points out that there will be a large deficit. In the past we have had to borrow money to meet that deficit. This, year, however, . the President says we will not have to borrow the whole amount of the deficit. One reason is Mr. Flynn 1.¢ some part of the deficit will be used to pay a part of the government: debt “which matures. While that pay- " ment swells the deficit, it will not increase the debt, since it is used . to pay off debt. The other reason is that the Treasury has accumujated a large cash balance. And a part of this will be used to pay the - deficit. When all this is done, while we will have a deficit of over (wo billion dollars, we will, acc rding. to the President, have to borrow only $410,000,000 to take care of it.

Ir the President could be induced to be a little less war-like in his ‘military and naval preparations even this addition to the national debt could be wiped out. Back in the days of Coolidge and Hoover the Democrats used to denounce the. Republicans for spending so much money on the Army and Navy. But the President has yearly increased these expenditures until now Wwe lead probably every nation in the world. The figures will interest any . American interested in peace and in our finances. In the last year before the President took office our expenditures for national defense were $667,000,000. Last year they were, as far as is visible, $913,000,000. I say. "as far + as is visible” because under the involved and confusing bookkeeping of the Treasury now, it is difficult to say what was spent on war purposes. The figure above is the minimum. But this year we are surpassing that in a most amazing manner. This year the visible jtems amount to $1,050,000,000.

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UT this is not all. Because in the estimates we find an item entitled “other public works” (national defense, public buildings, etc). ‘How much of this is for Jnational defense? We can only guess. We may be certain it ‘will run into many millions. 1f. therefore, the President could be persuaded to cut down his military establishment to the point at which he found it in 1933, he could shave $400,000,000 out of his pudget and avoid any new borrowing this year entirely, assuming that his other estimates are correct. The President has been increasing his naval expenditures at the rate of a hundred million a year since he came into office. This year they will be practically twice what they were in the first year of his administration. And his War Department expenditures will be also twice those of his first year. (Copyright. 1836, NEA Service, Inc.)

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INDIA’S WHEAT CROP FALLS BELOW 1935

Times Special NEW YORK, Sept. 7. — India wheat growers this year harvested 352.240,000 bushels, compared with 363,179,000 bushels in the corresponding period last year, according to a cable from Calcutta. The area planted was 33,631,000 acres, against 34,490,000 acres in 1935. the cable stated. Although slightly below last year's crop, this year’s still remained above the average for the last five vears—350,463,000 bushels from an average area of 33,890,000 acres. Any harvest over ‘350,000,000 bushels in India is considered excellent and eight such crops have appeared within the last. 15 years, the report said.

TRUCKS SET RECORD ~ WITH SHOW ENTRIES

Times Special {i —— CHICAGO, Sept. T.— Eleven manufacturers of motor trucks have for. the thirty-sev-enth annual Chicago automobile show, setting a record. for numbers © of exhibitions as well as amount of space reserved, according to Harry 7. Hollingshead, show committee chairman. - © Total, space contracted for amounted to 35,000 square feet.

Chevrolet gained the- first choice, |

followed by Ford and Dodge. ‘© Sixteen | trailer have contracted for space, and the airplane industry is expected to enter an exhibit, ‘Mr. Hollinghead

said. GOLD COIN HOARDED

“By United Press 1.OS ANGELES, Cal, Sept. 7. + is Angeles County has decided to e an intentional violator of ~ the Federal law forbidding the hoarding of gold, : WPA workers dnearthed a $5 gold dated 1880, while demolishing e old courthouse,” built in 1888. e coin will be preserved in the pounty museum instead of being over to Secretary of the easury Morgenthau, as the law

PU AI ES.

0,000 SHARES SOLD

mes Special . NEW YORK, Sept. T—Stockholdirs of Brown-Forman Distillery Co. ye subscribed to virtually all of 80,000 shares of common stock ecently offered for subscription rough rights, company executives 3 today. 142 shares were left to be d by the underwriters -

Aisgeiae

icCeg

| on the Federal Reserve bulletin for

manufacturers’

ous requests about it, I wouldn't be surprised adopt such a scheme,” Nunn said.

RESERVE BOARD ACTS TO HALT EARNINGS DROP

Economy Possibilities Studied; Bulletin Shows 50 Per Cent Slump.

By United Press

WASHINGTON, Sept. 7..—Federal

Reserve officials today .considered the possibility of instituting further economy measures throughout the system as net earnings of Recerve banks for the first six months of 1936 fell more than 50 per cent compared with the same period last year. Disclosure of increased earnings

September showed the Reserve banks paid dividends of $3,921,346 during the period, a decrease of $500,000 over the same pericd last year but $643,358 more than net earnings. The biggest decrease was a $3,000,000 drop in earnings on Federal government securities resulting from present low interest rates. Net

six months of 1935 and only $13,277,988 this year.

Economy Plan Initiated

An economy plan was begun several months ago among the Reserve banks to co-ordinate their work and reduce unessential personnel in an effort to keep up earnings. Joseph A. Broderick, board member, made an extensive tour of the banks recently to confer with officials about further reductions. He is expected to discuss the situation with Board Chairman Marriner S. Eccles, when-the latter returns from his vacation in Utah. A comparison of records disclosed ‘that expenditures for the six months in 1936 were $15,851,658, an increase of $966,470 over the 1935 period.

Dividend Cut Possible

If earnings continue to fall, the board may face the alternative of cutting its present dividend rate or further curtailment of expenditures otherwise it would be compelled to dip into surplus to meet the payments. : The report showed that reimbursable expenditures of Federal Reserve banks on behalf of the Treasury and other Federal agencies increased $2,000,000 over the months. The most important rise in earnings was $56,000 on industrial loans. The bulletin reported also that nearly half of the $1,212,000,000 in cash paid out for the soldiers’ bonus is still in circulation. The bonus bonds were issued June 15. About $500,000,000 of them were not cashed.

GOVERNMENT HELPS NATIONAL INCOME

¢ Public Pay Rolls Since '29 Increasingly Important.

earnings were $7.205,946 during the |

six |-

Times Special NEW YORK, Sept. 7—To an increasing degree since 1929 govern-’ ment has supplanted private industry as a source of income realized by individuals, according to an analysis by the National Industrial |

Confererice Board. Income derived from government sources; which accounted for 8.5 per cent of the total income in 1929, increased to 17.5 per cent by 1934. Sums derived from government amounted to $6,820,000,000 in 1929 and $9,354,000,000 in 1934, the report stated. In the meantime, income derived from industry dropped from $73209,000,000 in 1929 to $41,545,000,000 in 1034, according to the analysis.

FINANCING TOTALS EXPAND OVER 1935

Times Special NEW YORK, Sept. T—State and municipal financing during August amounted to $62,753,105, against $52,743,044 in the same month of 1935, according to the Daily Bond, Buyer. During August, PWA financing aggregated $119606, and RFC financing totaled $14,184,000 as compared to $274,000 and $856,625, respectively, a year ago. The first eight months’ total for this year was $748,525,078 compared to $746,773,938 for the similar period last year, the report stated.

ARGENTINE BUSINESS UP Times Special : NEW YORK, Sept. 7. — A sharp increase in business activity in Buenos Aires reflected in clearing house figures for the first seven months of the current year, which registered a 9 per cent gain over the corresponding period a year ago, according to a cable received

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CLIPPER SHIPS HELD TAXABLE

Planes Subject to State Law.

By United Press SAN FRANCISCO, Sept. 7—Pan American Highways’ three transPacific fliers, the China, Hawaiian and Philippine Clippers, will have

to avoid resting too long if they are to avoid taxation in California, according to the latest ruling of state Taxation Authorities. Atty. Gen. U. S. Webb has ruled that the clippers are taxable in California if they are habitually at the Alameda Airport. The company had demanded exemption from taxation on the grounds that the transoceanic clippers were vessels and thus exempt from taxation under a section of the state constitution. Webb ruled, however, that clipper ships generally are regarded as seaplanes and not vessels inasmuch as most of their travel is in the air. He also expressed doubt that when California legislat in 1914 enacted the prese taxation law as regards vessels t hey were farsighted enough have foreseen and “intentionally included transPacific. airplanes within the exemptions of the law. : The tax fight now hinges on the interpretation of what is meant by the word “habitual” as regards the amount of time the clippers spend at their Alameda base. Officials of the company say the average stop of the clipper ships at ‘Alameda between runs to the Orient is only eight days.

Busigraphs

NEW MACHINE TOOL ORDERS (MACHINE TOOL BUILDERS’ ASS'N)

mo

7% %7

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Z 2 YA A X DOTTED LINE IS THE PASTA 7 A TEN YEARS AVERAGE OF /] %% la THE SAME MONTHS AX XA TAR" THE PARKER CORP, GENERAL DISTRIBUTORS INCORPORATED INVESTORS

INDEX FIGURES

J FM MJ J

. Néw machine tool orders were at the highest rate in July of any time since 1929. They passed a year ago by: 25 per cent, and were twenty

| tithes the depression’ low.

Orders for new machine tools are coming in faster than it is possibl¢ to make shipments, partly due to. the scarcity of skilled labor. Many manufacturers report orders on hand for six months ahead. It is estimated that about 10 per cent of the machine tools are for foreign

today. .

shipments.

Fear of Government Bond Crash Held Unwarranted

Despite Apprehension, Several Factors Indicate Marked Decline Unlikely, Banker Declares.

BY CHARLES H. HUFF . Times Special Writer : : NEW "YORK, Sept. 7—Fear of a tumble in United States Government bond prices has been evident in bond market gossip from time

to time for more than a year. peak in the Federal list,

It has been recurrent with every new and since last fall the Federal lien market

has made something of an all-time record for piling up a succession

of new peaks. losely tied up with the repeated dragging forth of this ominous specter of an impending crash in Federal bond prices has been an invariable apprehensive asking of the question: “What will happen to bond prices as a whole if’ United States securities go into a tailspin?” There develops to be a scattered opinion that other categories of high-grade investment paper could stand upon their own merits, regardless of the destiny marketwise of the present huge crop of Federal bonds and notes that is bulging in the coffers of the nation’s institutions. Credit Supports Prices

Most bankers and bond market authorities are willing to admit that the entire price structure of highgrade investments rests on Federal bond levels as a foundatign, and those levels in turn are supported by the not yet impeached credit of the United States government. One of the most widely recognized authorities in the investment

banking fraternity in New York

concedes that a 10 per cent break in United States government bond prices would precipitate a_ national financial calamity. : A break of 10 per cent appears at first glance a fantastic contemplation, yet such a paring from current Federal bond levels would leave income yields still greatly narrower than they were a few years ago.

Calamity Believed Unlikely

The same authority, however, allays possible apprehension insisting that there is nothihg on the horizon to indicate even an appreciable portion of a 10 per cent break—not in short order, at any rate. Banks, a principal holders of Federal securitfes, are not likely to make themselves instruments in undermining the market of their own holdings. One factor pointed out as indicating the prevailing institutional attitdue toward United States Government securities as steady nourishment for portfolios is the vigor with which renewed buying was staged as soon as it became apparent that the Treasury would have no additional securities to distribute in September. The market has been neglected by institutions heretofore, as a rule, ionly when a hew flow from the Treasury was in prospect. Any contention that "corporate bond prices would stand near present peaks if Federal issues should stage a nose dive is contrary to all charted records of the past, investment bankers point out. :

By United Press MILWAUKEE, Sept 7.—The first year's success of the Nunn-Bush Shoe Co. plan, guaranteeing employes 25 uniform pay checks yearly and steady jobs despite business fluctuations, may lead to its adoption in other industries throughout the United States. President Henry L. Nunn, whose cotspany inaugurated the steady pay plan in the fluctuating shoe incustry 13 months ago, revealed that more than 66 large industrial concerns have sought information con‘it “The plan has been so successful here that, judging from the numer-

to see other industries

~T know a lot of industrial execu-

2 3 gif

the value of every pair of shoes produced,” Nunn explained. “We're really partners here,” Nunn asserted: “The workers are secure in their jobs and rio one fears what the future may bring in the way of economic depressions.” The plan has the indorsement of the company’s 700 employes, who joined with the management recently in observing its first anniversary. ‘The scheme was first put into operation in July, 1935, for a sixBlonths experimental period. At

e end of that period, the plan had |]

proved so successful that adopted on a yearly basis. The 700

employes signed one-year contracts |

last January. : average wage per worker this Bas been set at $1300, or 19's

‘ers’ annual salaries. They are bud- : installments. Should the earnings of employes ex-

it was

wil

Industry Watches New Steady Pay System

12 months than they did the preceding year. Under the plan, the company each January estimates the work-

geted into 52 weekly ceed estimates, the difference will be

made up at the end of the year in adjusted compensation.

MARKETS CLOSED FY % Securities exchanges, livestock and commodity markets and financial institutions are closed today in observance ‘of Labor Day. Business will be resumed as usual tomorrow.

FINANCE 1S MAJOR PROBLEM IN CANADA

Rail System Deficit Also Confronts Dominion.

Times Special

NEW YORK, Sept. 7.—The question of Dominion finances is a ma-

jor problem confronting Canada at present, in view of the huge burden of Dominion debt, and the continued deficits incurred by the Canadian National Railway system, according to a survey of Canadian business by the Standard Statistics Co. For the time being, uncertainty regarding the validity of the many legislative measures adopted in recent years, as well as uneasiness

regarding the government's fiscak|

policies, may tend to retard industrial expansion in the Dominion, it was reported.

Thus far this year, however, a substantial improvement in.all major indexes of economic activity has been shown. Car loadings, pig iron production, automobile sales, electric power output, newsprint production, bank debits, life insurance and building permits all have recorded increases over the past corresponding periods, the report said.

OPPOSE BUS LICENSE

By United Press WASHINGTON, Sept. 7.—The Interstate Commerce Commission today -had adopted tentatively an examiner's report recommending the Ritz Arrow Lines, Inc. be denied permission to operate busses from Detroit and Cleveland to Atlantic seaboard cities. The report becomes a commission order if no exceptions are taken within 20 days. The application was opposed by 21 bus companies and several railroads, all serving the same territory. '' : . EVANS VOTES DIVIDEND Times Special ] DETROIT, Sept. 7. — Executives of the Evans Products Co. have announced a dividend of 25 cents a share on common stock, payable Oct. 1 to holders of record Sept. 21.

Notiee to Holders of Indianapolis Water Company

Gold Bonds,

On the other hand, should busi- | Feaemption

ness decline and weekly payments

amount to mere than the fixed per- | fra}

centage of total output, necessarily would be lowered. But, Nunn explained, the worker still would have every week.

salaries | amount

his job and a pay check |} ger

Adjusted compensation after the 20

LEADERS WATCH MARKET, LABOR DEVELOPMENTS

Price Decisions Postponed; Flow of Orders Is - Generally Good.

Times Special NEW YORK, Sept. 7.—Problems of price and labor pushed to the center of the business stage this week, overshadowing the general run of favorable developments, according to the current issue of Business Week, out today. Steel executives tabled debate on wage increases in the hope of putting off a decision on prices that might disturb the present excellent flow of orders. The wool industry took note of the move of the textile union to Lawrence, Mass., signifying intention to organize that center. Cotton markets await the next report of the cotton drop, due shortly, with considerable anticipation, hoping it will confirm their belief’ of extensive damage since the August report, and therefore bolster the price structure which has been soft of late. Carpet manufacturers finally came through with a modest price increase on’ rugs, but woolen goods markets were disturbed by price cuts announced on some spring lines.

Telephone Rates Cut

In midst of price increases, the voluntary rate cut on long distance telephone calls by American Telephone and Telegraph Co. came as an off-setting move. Reduction in the public’s telephone bill of more than $7,000,000 annually is expected. The cut is the seventh over a 10year period. Because the drought reduced feed supplies and boosted prices, farmers rushed their products to market in heavy volume in the last two months. The best July since 1929 lined farmers’ pockets with $711,000,000 of cash, plus $24,000,000 of farm benefits.

Dividend Payments Up

Public purchasing power is being expanded in other directions this fall, too. The effect of the undistributed earnings tax on dividend distributions was, apparent in last month’s payoff. Some $334,649,487 was distributed to shareholders in August by 721 corporations, making it high month of the year and the biggest August since 1931. Ninetyseven extras and 72 increases helped swell the total. While steel mills would like to see wage increases held of until stockholders get some return on back dividends, the chances that they will succeed in doing so appear a bit dubious. One small steel plant in Illinois posted a wage increase and a profit-sharing plan, but the industry awaits announcement from the leaders to set the pace.

Ship Building Good

Steel mills aren’t so dependent on Detroit for business these days. Shipbuilders have purchased more tonnage in the first eight months of this year than in any full year since 1930. The Navy Department added to this tonnage recently by awarding six destroyers and three submarines to private yards, plus four destroyers and two submarines to its own yards. Electrical goods orders are pursuing a steady increase that will bring the current year’s business close to, and perhaps a bit ahéad of, 1930, The second-quarter volume was better than any quarter back to the second quarter of 1930. With electric power persistently setting new records, and with the drought putting a heavy strain on steam generators, the electrical industry expects to see its important utility customers come into the market with substantial orders.

SUGAR DELIVERIES ADVANCE IN PERIOD

Times Special . WASHINGTON, Sept. 7.—Total deliveries of sugar for the first seven month sof the current year amounted t0.3,937,352 short tons, raw sugar value, as compared with 3,621,350 short ons, raw value, during the same period last year, a report of the sugar section of the AAA said today. This report is based on consolidated statements obtained from cane refiners, beet sugar processes, importers and others, it was. reported.

CHAMPION BRINGS $504 Times Special DES MOINES, Sept. 7. — Ralph Drake, Palo, Ia., realized $504 from the sale of his grand champion 4-H Club baby beef at the auction culminating the annual livestock exhibit at the Iowa State Fair, it was learned today. :

WRITES ON INDUSTRY

Javits

ROI

USERS OF GAS INCREASE HERE

Peak of 79,682 Meters Is Noted by Local Utility.

The all-time peak in number of gas customers in Indianapolis has been reached, with a total of 79,682 active meters as of Aug. 31, 19386, Thomas L. Kemp, general manager of the Citizens Gas & Coke Utility, announced today. The present high mark shows an increase of 2365 meters over Aug. 31, 1935, which was nine days before the city took over the property from the former Citizens Gas Co: on Sept. 9. Growth of the use of gas in Indianapolis is shown by a comparison with 1913 figures, when approximately 54,000 meters were being served at the time of the merger of the Citizens Gas Co. and the Indianapolis Gas Co. “The increase in gas consumers not only shows an improvement in general business conditions, but also is evidence that the citizens of Indianapolis are supporting their municipal plant,” Mr. Kemp said. “Further indication that Indianapolis housewives are taking advantage of modern gas service is shown in the fact that gas consumption increased 10 per cent in the first six months of this year over the same period in 1935.” :

NEBRASKAN'S CATTLE CONSISTENTLY GOOD

Feeder Gets Top Chicago Prices 10 Times.

By United Press : MITCHELL, Neb, Sept. T7—A tall, thin man who fattens cattle for eastern consumption has established a record over the past four years that almost every western stockman envies. -Fred M. Attebery is his name. His cattle have topped the Chicago livestock market 10 successive- times, and he still had 17 more carload shipments to make when he had set that record. In 1932 11 loads topped the market; in 1933, all but three; in 1934, 1s out of 16, and in 1935, 15 out of 9. In one of New York's leading hotels “Atterbery heef” is served. Attebery came to this rolling country of the upper North Platte Valley in Nebraska two decades ago, and has been feeding fancy beeves ever since. He prefers the big, whitefaced Herefords, most popular beef cattle. Attebery has established a reputation with the big cattle buyers in the Chicago market. They know what to expect and therefore, bid high for his stock.

FOOD INDICATOR DOWN

Times Special NEW YORK, Sept. 7.—Continuing ‘the decline of the preceding week, the weekly Food Index recorded a further drop of 1 cent for the week ended Sept. 1, Dun and Bradstreet reported today. This decrease lowered the indicator to $2.81 for the latest week against $2.85 for the week ended Aug. 18, which was the highest mark since the early part of 1932. A year ago the corresponding level was $2.72. The decline was general, with higher quotations noted in

cocoa, eggs, potatoes and lambs.

.

Raymond D; Jackson Bank

1310 Merchants

U.S. © + (Only These Payable

JACKSON-EWERT,

Investment Securities

MUNICIPAL and BONDS and STOCKS INVESTMENT TRUSTS

Government Bond2 ; Indiena Municipal Bonds Unlimited

~ General Market Munic Souda | THE UNION TRUST Co.

% of Indianapolis %

INC.

CORPORATION ~

Ross T. Ewert

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Telephone, LIncoin 2551

Bonds

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NEW INDUSTRIAL PLAN OUTLINED IN RECENT BOOK

Regulation of Production by Separate State Is Urged.

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Times Special NEW YORK, Sept. 7—From the pages of a book has emerged a possi ble NRA substitute that since early June has attracted the attention of many industrial, labor and legisla tive leaders. : The plan, conceived by Benjamin A. Javits, New York lawyer-econo-mist, co-author of the NRA and counsel for many influential trade

associations, has been published as a book, “The Commonwealth of Industry,” subtitled “The Separation of Industry From the State.” It 18 said to be the basis of a movement to be launched after the November presidential election under: joint labor-industrial sponsorship. The plan provides for the creation of an industrial state within the political state, and virtual bill of rights under which industry can be self= governing in the public interest. ‘The new commonwealth of ine dustry, actually a forty-ninth state, according to the Javits plan, would be governed by a labor-industrial legislative body functioning similarly to the legislative body of any other state, except that. its members would be elected by labor and industry instead of by common vote. : ”

Minimum Income Set In the labor-industrial state, says Mr. Javits, industry will assume obligations of social welfare and

security, assuring employment of

every employable

minimum of $10, a every productive family b} gradual increase over a period of 10 years, in order to keep purchasig power on an eveh balance with production regardless: of what peak the latter’ may reach. : : Mr. Javits said the plan’s sponsors do not wish it to become a political issue, and for that reason there is to be no action on eir part until after the November election. pr New Regulation Needed “The cause of our present ecoe nomic and social | ailments,” Mr. Javits said, “can not be placed at the door of any political administration. It has been brought about by natural occurrences over a long period of years, during which modern business practices and machine production have far outmoded legislation that governs them. The basic fault is the improper balance of consumption and production. Although our plan, to be practical, must necessarily be elaborate, it narrows down to ohe basic purpose —to allow indie to govern its own affairs so that a proper balance of consumption and production can be maintained with mutual ad-

vantages to labor, industry and the country as a whole.

GRAHAM MOTORS CO. STEPS UP PRODUCTION

Times Special [ DETROIT, Sept. 7. — GrahamPaige Motors Corp. is to enlarge its production facilities 50 per cent, according to Joseph B. Graham, pres ident. : The anticipated | development is expected to lower the company’s annual manufact costs $400,000, Mr. Graham said, Assembly lines and major factory operations have and. re-equipped with more effective machinery, the report said. The -super-charge line is accounting for a large portion of the company’s current business. In 1935 this line accounted for only 6.5 per cent of total production, whereas the 1936 supercharger line was responsible for 28.5 per cent of the business, Mr. Graham said. :

GOLD IMPORTS FALL

ByiUnited Press WASHINGTON, Sept. 7. — Gold imports for the week ended Aug. 28 fell to $17,508,322 from $24,394,314 the preceding week, the Department of Commerce announced today. Silver imports also dropped to $1,815,404 for the week from $2,767,» 371 on Aug. 21.

Pay for It Monthly Over a Period of Years

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