Indianapolis Times, Indianapolis, Marion County, 7 December 1936 — Page 11

Real Recovery Lies in Hammer, Saw, Flynn Says.

Abreast of The

‘imes on Finance

Y-JOHN T. FLYNNeee J

EW YORK, Dec. 7.—Business is now asked to take over the load which the government is carrying ough relief and WPA. ‘When industry does this, it will be the building industry mainly which does the job. Other kinds of industry begin to flourish. They will continue to flourish as long as some agency keeps pumping .. fresh supplies of purchasing power into the system, The government is doing this by making loans and spending the money. The building - industry can do it by making long-~-term loans and Mr. Flynn spending the money on construction. The symbol of real recovery is not the plow and the sickle, but the hammer and saw. How far have the hammer and saw gone and how far will they go? Look at the reports of new construction and you will see an impressive rise. But remember the greater part of this building is being done by our leading contractor —Uncle Sam. s un ” N 1934, out of every $3 spent on building, Uncle Sam spent $2. Last year out of every $3 he spent $1.80. This year things are better. The private contractor is splitting fifty-fifty with our kind old uncle. But private construction is improving. During 1932, 1933 and 1934 it remained down below 600 million for each year. That's pretty low. But last year it rose to 834 million. And this year for just . ten months it has risen to a billion. That means things are stirring. But before the private building industry can be said to have taken over the load now being carried by Uncle Sam, private building for the year must be at least three billion—around three ‘times as much. Back in 1928 private building " contracts totalled about five billion dollars, maybe more. That was too much. That was built on all sorts of unsound building projects, many of which went into the bank-

rupt court or the foreclosure ma- .

chinery. o ” ” T will not be good to have it go so far now. But the figure serves to show how far private business is from assuming the load it. must carry before the government can safely step out. Many good men believe the government will never be able to step "out entirely. I agree with that view. And if all this is true, these facts have a hearing on two immediate problems. One is the proposed shrinking of the WPA. Along with this goes the connected problem of setting up a permanent plan for dealing with our more or less continuous unemployed army. The other problem is the means of providing the money for that part of the load the government must carry. Sooner or later we must face the fact that this must be done with funds raised by taxes. Of course that's not pleasant. But it will be far less pleasant in the end than - raising them any other way. (Copyright, 1936, NEA Service, Inc.)

TRUST INDEX IS DOWN Times Special NEW-YORK, Dec. 7.—Investment trust common ‘stock averages declined last week, as evidenced by the Distributors Group, Inc. index. -The average for the stocks of ten leading trusts stood at 23.27 on Nov. - 27, compared with 23.67 on Nov. 28.

Fruits and Vegetables

(Quotations below subject to change, are average wholesale prices being offered to buyers by local commission dealers.) ruits—Pears, Oregon Bosc. 100s, box $3. 25° California Avocados, 20s-24s, box, $3.50; Oregon D’'Anjou, ha fancy, pigs: 150s), $3.25. Ap les, p. 81.15: No. Y.. ne es u up, aN 'ndiana lito sr Va The up Nas: No. 1 oo diana Golden Delicioys, Psd inches ap. $ 0. 1 Stay mans, 2% inches up 3 Je 1 donunahs, 21s inches up, $3; 1 N. Y. Wea aid: 2'2 inches up, $1. 85; No, 1 Michigan Ba Baid

t No. 1 reel.

50. Grape erines, “1 nges—California SunIS. "$4; Flor rian. $3.25. Kumgquats oridas, qt., 15c. Pineapples—30s, crate,

Vegetables—Artichokes, California, 4-dos. box, = $3.50. — Beans, Florida stringless, hamper, $3.50; California Limes, 25-1b. box, $4. Beets, homegrown, bu. California, case, $3; bunch, 15c. Sprouts, Jer drum, $2.50. Cabbage—N ork, 50-1b. bag, $1. Carrots—California, doz., 60c. Caulifiower, 11s-13s, crate, $1.85. Celery, Michi an. Mammoth, doz., 75¢; ium, doz. ery cabbage. home fron, « doz., 5c. Cucumbers —Flotida, bu., $1.25. Chives, doz. pots, . plant—Plorida, 2. 25. Kale, home grown, bu., 75c. Iceberg Caliornia best,

house, 15-1b. ba te. 50

u.. . 3. Potatoes Maine Green Moun- | Idaho Sweet ‘Fota: Los

-ib. bag $29 90;: : Michigan Rutals, $3 25. toes, Tennessee Nanc oy als, Hamp Ind. Jerseys ‘‘Possum,” bu. 8 es, buttons hot house, doz., doz., 45c. Spinach Texas, WS foi: Acron, bu. Si toes, hot House, 8-Ib. A oy "$1.50.

( BY Vilited Press

CHICAGO, A Lo — pach Mcintosh, hi 83% 65@ Beet Potatoe es—

Louisian $1. Santo; rots, ine 4 Ty 3d nois, bu., 75¢. [email protected]. Caulifiower — Californ [email protected], Peas—Californi a, hampers @2.75. Celery n, uare 3@78e. Onigns ( (50-1b. sacks) _ilinojs

230s: Tan Dass: Magn i Michigan

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REGISTRATIONS WITH SEC IN'36 NEAR 6 BILLION

Value of Filings for Year Will Exceed Total of 30 Months.

BY SANDOR S. KLEIN United Press Staff Correspondent

WASHINGTON, Dec. 7.—Registration of securities with the Securities and Exchange Commission during 1936 will approximate $6,000,000,000, exceeding the total value of all filings since the commission was created in June, 1933. The total for the first 11 months of t year is $214,053,132 more than the preceding 30 months, a United Press survey showed. A study of registration statements indicated that the main use proposed to be made of these funds is repayment of indebtedness. Much of the new financing, it was believed, was influenced by the desire of corporations to take advantage of cheaper money in refunding at lower interest rates. It was indicated that the money saved on interest might be used for plant extension and modernization.

Hope to Recoup Funds

Although: they did not openly admit it, a number of corporations hope to recoup funds paid out as dividends to avoid the heavy tax on undistributed corporate surpluses. With this in view, hundreds of millions in new securities are contemplated. One’ small corporation actually admitted this purpose in its prospectus filed with the SEC. Only 65 utility holding companies, representing 18 per cent of the total assets of all such organizations,

have filed with the commission in|

accordance with the Utility Holding Co. Regulatory Act. They include the Middle West Corp. Utilities Power and Light Corp., New England Public Service Corp. and the New England Power Association. The Utility Holding Co. Act directed that such companies register with the SEC not later than Dec. 31, 1935. A large majority, representing the most powerful of the group, charged that the act was unconstitutional. They said they would not file statements until the Supreme Court had decided the question. None has attempted to float new issues.

Opposition Seems Weaker

Recently there have been indications of a break in opposition to the act. The Northern States Power Co., which filed its challenge in Minnesota has notified the SEC that it intends shortly to file the obligatory statement. It was understood the company is planning to float $100,000,000 in new stocks and bonds. Value of securities filed for registration in the 11 months ending Nov. 30, totaled $4,966,152,049, compared with the 1935 total of $3,141,811,917. Securities filed for registration in the last six months of 1933 and in the full years of 193% and 1935, had an aggregate value of $4,752,098,917. Of the 1936 total securities valued at $4,059,341,000 were listed as “effectives.” Under SEC rules, a registration statement bécomes effective automatically 20 days after filing, provided the commission does not issue a “stop” order for some irregularity. As soon as a registration statement becomes effective,

the filing corporation may consider |

itself authorized to issue new securities.

TO ABANDON TRACKAGE

By United Press WASHINGTON, Dec. 7.—Build2] AH Commerce Commission

today authorized the Boston & Maine Railroad to abandon 17 miles of track from Goffstown to Henniker Junction in Hillsborough and Merrimack Counties, N. H.

“| New Bond Issues

(By W. L. Lyons & Co.)

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ELECTRIC POWER PRODUCED (Ui S. DEPT. OF THE INTERIOR) 124

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for electric power both in the home and in industry resulted in an October. output 8 per cent above a year ago and the highest for any October on record. Laborsaving home electrical appliances are a big factor in jumping up power consumption.

STEEL PAY ROLL TOPS 29 FIGURE

Shorter Work Week Sends Average Daily Output Below Record.

Times Special . NEW YORK, Dec. 7.—Nearly 5000 employes were added to pay rolls of the steel industry during October, bringing current employment to 531,400, or 15 per cent above the 1929 average and 22 per cent above October 1935, according ot the American Iron and Steel Institute. By camparison, the average daily output of steel ingots during October, 168,333 tons a day, was lower than the 1920 average of 174,638 tons, the report said. Pay rolls totaled $71,110,000, nearly $20,000,000 above last October's total and $1,000,000 above the 1929 average, it was said. Hourly wages averaged 66.3 cents. The wage, the institute said, and a wage increase Nov. 16 was expected to raise the average to about 73 cents. Wage earners were working an average of 42.5 hours a week, 121% hours less than in 1929, it was shown in the report. Of the 531,400 employees at work in the industry during October, 480,800 were wage earners paid on an hourly, piecework or tonnage basis.

FOREIGN GIFT TOTAL SHOWS LARGE GAIN

Import Volume Placed : at $2,032,393 for Year.

By United Press WASHINGTON, Dec. 7.—Christmas shoppers are being offered considerably more foreign-made gifts this year than in 1935, Department of Commerce figures showed today. During the first nine months of the year American merchants imported Christmas gifts, mostly toys, valued at $2,032,393, compared to $1,602,325 in the corresponding 1935 period. Foreign countries increased their

imports from the United States from $999,885 during the first nine

months of 1935 to $1,315,837 for the | Good

same 1936 period.

Dividends Declared

Dividend 8 given 2 in dollars and cents unless a ise. 1 Books Per a; e Fayed 18 . 78 x Dee. 18 10 s Cc. Dec. 1 10 Bee: 4° Dec. 14 25 .. Dec. 26 Dec. 8 . Dec. 31 .

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PORKER PRICES HERE CONTINUE UPWARD TREND

$10.40 Is Paid for Strictly Choice 250 Pounders; Receipts Small.

Continuing the recent upward trend, hog prices today increased 15 cents on all weights in a very active market at the Indianapolis Union Stockyards. The advance was attributed by the Department of Agriculture to small receipts and higher prices for fresh pork in Eastern markets. Receipts in 11 markets were 86,000 today, compared to 141,000 a week ago.

Local receipts totaled 7000 compared |

to 11,000 last week. At close, 160 to 180 pounders sold for $10.20; 180 to 200-pound weights brought $10.25; 200 to 225 pounders were $10.30. and the 225 to 275-pound class were $10.35. Sows were 10 to 15 cents higher and the bulk sold for $8.90 to $9.60, top $9.75. Late in the session a top of $10.40 was established for strictly choice 250 pounders.

Cattle Market Active

Weights of 275 to 300 pounds brought $10.30; 300 to 325 pounds,

$10.20; 325 to 350 pounds, $10.10, |

and 350 to 400 pounds, $10. In the lighter divisions 150 to 160 pounders were $9.65; pounds, $9.40; 130 to 140 pounds, $9.15; 120 to 130 pounds, $8.90; 110 to 120 pounds, $8.65, and 100 to 110 pounds, $8.40. All killing classes of cattle were active and mostly 25 cents higher than last week’s close. Choice steers around 1400 pounds sold for $11.75 and other steer sales ranged from $6.50 to $9 with a few loads up to $11. Heifers brought $5.50 to $8, top $8.50. Beef cows were $4.25 to $5, the cutter grades $3 to $4. Weighty sausage bulls sold for $5.50 and beef bulls ranged up to $6. Receipts totaled 1300 (cattle and 500 calves. Fat native lambs were steady with the desirable kinds bringing $8.50 to $8.75, heavies, $8 to $8.75. Fat sheep were steady and fat ewes ranged from $3.50 down. Receipts were 3000. Western lambs sold 25 cents lower in the late market.

HOGS Receipts. 14,000

.10 " a1: 20 [email protected] Lights. Ligne (140-160) Good and choice..$ Jie um

1 2 3. 4. 5 7.

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(180-200) Good and ‘choice hy Medium aveights: iy (200-220 Good snd cho choles ce.. 10.10 (320-2 } Good 10.2

H (250-2 oo Good and choice. . 10.30 200-350) Good and choice.. 10.00

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10.40 10. 30

Auto Output

PAGE 11

at Fast Pace

TREND OF "AUTOMOBILE PRODUCTION. IN THE UNITED STATES

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Estimated automobile output for November totals 414,000 cars and trucks as compared with 398,000 in November, 1935. Following a period of almost complete shut-down in preparation for 1937 models, the automobile industry is now in full-swing production anticipating an even

greater year than 1936.

140 to 150) °

Times Special

ment Advisory Service. Cigaret consumption in October was 13,203,851,000, compared with

first '10 months, against 113,967,000,000 in the corresponding 1935 months. ‘These sales gains and relief from processing taxes will boost earnings of most cigaret makers for -1936, it was said, but relatively increased tobacco prices will somewhat counteract broad increases in prots

fits. The outlook for 1937 is similar, since the short tobacco crop of 1936 has again boosted costs, it was reported. Planting in 1937 seems certain to be sitmulated and may bring a price decline, it was said.

12,710,887,000 last year, it was re-| ported, and 128,365,000,000 for the|

Cigaret Sales Jump, But Higher

Tobacco Prices Imperil Profits

{

NEW YORK, Dec. T—Although cigaret sales were sharply higher for October and for the year, high tobacco prices will prevent broad increases in tobacco manufacturers’ profits, according to a report in Poor’s Invest-

CANADIAN FINANCING OVER 751 MILLION

Times Special NEW YORK, Dec. 7.—Although November offerings were below those of a year ago, total offerings of Canadian bonds in the first eleven months of 1936 amounted to $751, $47,395, compared with $586,385,400 in the same period of 1935, it was noted today. Governmental financing was said to be considerably below that of 1935, but substantial gains were noted in financing of public utilities, railways and industrial corporations.

New York Stocks

(By Thomson & McKinnon n High. Low ei Close: . : ose AvisHon. 8 Aviation oo 6% Boeing Afror 31% Curtiss wr right.. 1% t Wright “AY 31% Douglas

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Other Livestock

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SURVEY SHOWS EFFECT OF PWA UPON INDUSTRY

Announces Findings After Study Of Two Years.

BY ROBERT S. BROWN Times Special Writer WASHINGTON, Dec. 7. — "The Public Works Administration announced today that for every man it has employed directly on the sites of nonfederal projects, two and one-half jobs have been created in private industry. PWA’s . announcement, coming after a two-year study by Labor Department statisticians, establishe accurately for the first time a basis for charting the employment posssibilities of various types of work relief. The long sought figure has

| been a matter of much conjecture.

Estimates have varied from “one for one” to “five and six to one.” More than a million reports, time sheets, material accounts, contracts and other records for PWA projects were checked by Herman B. Byer of the Labor Department and some 50 assistants. 50,000 Contractors Help From June, 1933, through June, 1936, PWA projects provided 299,000,000 man-hours of site employment, Materials cost $539,000,000. 'o produce these materials, the soy shows that 741,000,000 manhours were required in forests and mines, in mills and factories, and in transportation. To get these figures Byer's staff enlisted the aid of nearly 50,000 contractors and sub-contractors. In the steel industry, for instance, 15 representative mills were surveyed. The following facts were revealed: Approximately six tons of basic materials are required to produce one ton of finished steel; included in the raw materials are more than two tons of raw ore, one-half ton of scrap metal, and three-quarters of a ton of limestone and other fluxing agents. One and one-half tons of coal is required to manufacture the coke for melting, and three-quarters of a ton more for power and heat in the steel plant.

Ratio Averages 215 to 1.

It takes 23 hours of employment to extract and transport the basic commodities required in making a ton of steel; fabrication from this material requires from 6 to 58 hours of labor. PWA construction accounted for 2,950,000 man-months of employment in the steel industry. Similar surveys were made in other basic industries. Statisticians found, for instance, that in making cement for PWA projects 126.3 manhours were required for 100 barrels, or a total of 484,000 man-months for all the cement used. In the lumber industry, PWA demands accounted for 565,000 manmonths of employment. The ratio of direct to indirect employment varies widely in different types of construction. In power projects it jumps to 4.4 to 1. Above the average 21% to 1 ratio is another possibility into which the research workers did not go. Consumer products were not considered; that is, the market for overalls, extra ham and eggs and other goods created by PWA employment.

en ; ' eg ® Local Securities 27 Indianapolis Bona and Share Corp.) seit aciuel bid 5" SHERAI0 Jt ZeBTE

jndie te the PD On mark based on buying abd selling inquiri Hr bel

PONDS 4%s '61....103 L104 1 7.;.-. 1 . 99 ’58..10

104% 105 108%

101% 106

Pub Serv Ind Si 6s rv Co of Ind prd 63 rn Ind Gas & El oa 8s 105 Terre Haute Elec Co 6s 102 105

Chicago Stocks

(By Atkins, Hamill & Gates)

Sens RRNERS

Class 1 ritudys carned a net wperdting income of $524,627,844 during-the first 10 months of the year, which consititutes a rate of return of 2.36 per cent on :

- STOCK MARKET WEEK IN REVIEW

. . BY ELMER C. WALZER United Press Financial Editor

NEW YORK, Dec. 7—The Stock Market last week duplicated its pere formance of the previous week— declining in the early part of the week and rallying moderately later, Trading was fairly active. Despite labor difficulties, business continued to show remarkable strength. Retail trade rose 6 to 10 per cent over the preceding week and 15 to 30 per cent over the cor= responding week of 1935. Wholesale trade rose 25 per cent. Steel oper=

ations equalled the year’s high at 759 per cent of capacity. A year ago operations were at 56.4 per cent, day afternoon Continental Oil initiated a rise in crude oil

¢| prices of 17 cents a barrel, effective

Jan. 4, 1937. Barnsdall immediately followed and other units were exe pected to fall into line. The oil out= look for next year is reported as especially promising. Oil shares this week were firm in active trade

ing Auto Production Dips

Automobile production declined because of strikes among makers of equipment. Output for the week was 100,545 units against 104,190 in

the corresponding: week a year ago, Motor shares, however, held fairly well and Chrysler late in the week showed rallying tendencies. Car loading$ declined more than seasonally, but still were 108,108 cars above the total for the core responding week a year ago. Electricity output sagged moderately but the total was above thé two billion kilowatt-hour figure for the twenty-first consecutive week.

Railroad Issues Lower

Railroad issues generally werd lower on the week, notably the high prices issues. Others lost 1 to 3 points. In the former category Union Pacific was down 7 points. U. S. Steel preferred lost 5 points net while the common was off more than 2 points. Bethlehem also sustained a 2-point decline. Gulf States Steel, on the other hand, gained 6% points on Friday, which sent it sharply up for the week. Douglas Aircraft was the strong spot in the aviation group. Curtiss Wright issues were active. Electrical equipments acted better than most groups, having only moderate declines. Motors were 1 to more than 3 points down for the week. Rubb reversed their recent rise an slipped back. Store issues also sagged on profit-taking.

RENARD RUG TO PAY EMPLOYES BONUS

Employes of the Renard Linoleum * & Rug Co. here are to share in the bonus to be paid this month to all company employes in 17 branches, it was announced today. 5 Those who have Fibs in the com= pany’s employ for a year are to res ceive 25 per cent of their present monthly salary; those who have worked three years for the company are to be paid half their present monthly salary, it was said.

ROSENBERGER WALL PAPER PAYS BONUS

A salary bonus of approximately 10 per cent to all employes and a - dividend of $6 a shade were ane nounced today by the directors of the Martin Rosenberger Wall Paper Co. : They are to be paid Dec. 15 in anticipation of the new tax on une distributed surpluses, it was said.

Unlisted Stocks (By Blythe & Co.)

Bankers Trust Central Hanover

8 SS *

S323 =

aan ving 7 National City National Shawmut ........... 29 "First National B But on : FIRE INSURANCE, Aetna Fire Insurance American Ins of N Baltimore American f New York

Sek B88

in ral Insur Hartford

Home Insurance Hanove

Chicago Grain Futures (By James E. Bennett & Co.) < High. Low. 1.247%

1.21 ¥ 1.07% 1.

Dec, ...innizs 1.08'2 1.07 1.05% 1.03 99 98%

sesssene

sve cuss 1

May oo 130 136 AE

the preceding week, and 103,030 in