Indianapolis Times, Indianapolis, Marion County, 26 December 1936 — Page 11

Abreast of The » Times on ™Finance

* o

Air Traffic Climbs Revenue passenger traffic on Eastern Air Lines in November increased 76 per cent over the corre-

Corporate Aliases Not Justified Flynn Says.

BY JOHN T. FLYNN

EW YORK, Dec. 26.—Unfortunately Spanish rebel depredations, the Pope's ill-health, the escapades of a British King and the kidnapping of a Chinese generalissimo have all served to divert attention from some mighty interesting and important information which a Senate committee been unravelling in Washington. No Senate committee can compete with a kidnapped war lord, an abdi-

cating King | a

and a lady, dying Pope and a war of airplanes. But just the same, what Senator Wheeler's committee has been spreading on the records is of infinitely more importance to us in America than all these other events, The committee has been exploring the technique of railroad promoters and the uses to which our amazing corporation laws are put. The most interesting features of this investigation have been told in the papers. But there are some aspects of it which are worth looking further into,

=" ” n

NE of them is the manner in which a man can use a corporation instead of an alias. Ne business man can adopt a doz names and do business under rh name. But he can form a dozen | corporations and do business | through them as effectively as if

he were using a brace of assumed aliases. He uses the alias The van Sweringens used the Allegheny Corporation as a hold - ing company. The money for the Allegheny Corporation came from | the public through stock sales. The Van Sweringens owned a controlling stock interest in it. But these shares were not in their name. They were in the name of the Vaness Corporation. The time came when the Van Sweringens wanted the Allegheny Corporation to acquire a collection of terminal companies in St. Louis. Ordinarily you might suppose the Allegheny Corporation would buy these terminal properties. But it aid not. It furnished the money. But the contract to buy the properties was made by the Geneva Corporation, another wholly-owned corporation alias of the Van Sweringens. ” ” HEN it was time to transfer the terminal properties, the contract was assigned by the Geneva Corporation to Terminal Shares, Inc, a newly formed corporation alias. When Terminal Shares, Inc., got title, then the properties were transferred to still another corporate dummy, Term-

inal Trust. These were just a collection of names under which the Van Sweringens were able to do business and cloak their operations from their stockholders, from the public, from the banks, from the Government of the United States. As a matter of fact, it came out that these vast railroad properties of the Vans, valued at three billions dollars, had come into possession of a great New York bank which held control for four and a half vears and no one knew it, not even the I. C. C. which is charged with supervision of the roads. The ownership of the bank was cloaked by being vested in a corporation composed of a few clerks in the bank. As a result of these proceedings some pretty heavy losses were suffered by a lot of people. Is there any justification in the world for these corporate monkevshines by which the operations of promoters are hidden from the view of everybody who has a

right to know what is going on? (Copyrig 1036 NBA Service, Ine.)

Fruits sand} Vegetables

(Quotations below subject to change, are average wholesale prices being offered to buvers by local commission dealers.) Fruits Pears, Oregon Bosc. 100s, California Avocados, 20s-24s, 75. Oregon D'Anjou, extra fancy, 135s, $4. Bananas, selected, ib., 5c, No. 1 Grimes, inches up, $2.10; z Indiana Delicious, 2': inches up, $2 25: No. 1 Indiana Golden Delicious, 2's inches Ww $2: No tavmans, 2'2 inches P: No. 1 Jonat hans, 2; inches up. $2.1 No. 1 N. Y. Wealthy 21% inches up, $1.85; No. 1 Rome Beauties, 2'2 inches up, $2; No. 1 Winter Bananas, 2': inches un, $1. #5: No. } Win esaps. 2% inches up, $2. Lemons, unkist, 360s, 85 25. Limes, Mexican, car12s. 20c: Persian seedless, 84-112s, box, 3 California Emperors, 32-lb. ] Cranberries, . Early 25-1b. ox, 85 Tangerines, !a box crate. 120s, $1.30. Grapefruit, Texas, seedless, 80s, $3. Oranges—California Suno 53 3G 3.75 lor20. Pineapples, crate,

Florida stringless, homegrown, bu., $1. case. $3; bunch,

i 120s, |

Kumaquats,

nAvels » 30s,

kist at., 8 50 Vegetables — Beans, hamper, $2 ets, Brocooll, California Brussel Sprouts, per drum, $2.95, Cabbage. New York, 50-1b, bag. $1. Carrots. California, doz. 0c. Cauliflower, 115-128, crate, $1.90. Celery, Michigan, mammoth, doz.. 75¢; medium, doz, 45¢. Celery cabbage, homegrown, doz, 75¢. Cucumbers, Florida, bu, $7.50; doz., $1.25. Chives, doz. pots adc. Kale, Virginia, bu, 75¢. Let uce. Iceberg. Arizona, 4s-5s, $3; 6s, $2.75 leaf, hothouse, 15-1b. basket, 85c. Peppers. Mangoes, Florida, crates, $4; doz. . 80c Mushrooms, Wo Why Onions, Indiana yellow, 50-ib : Northera white, $1.15. Parsley, homegrown, 40c, Parsnips, homegrow 12 Peas, Western Tel. Ramper., $2 oN Potatoes, Maine Green Mountains, 100-1b. bag, $2.90; Idaho Russets. $3: Michigan Rurals, $2.35; Colorado MeClures, $3. Sweet Potatoes, see Nancy Halls, hamper, 33-8: | “Possum,” bu. $1863. ons, hothouse, doz. Cal ifor nia, 20-1b, dob, 45¢ Spinach, Texas, . Acorn, bu., S0e. TRIPS, A $1. toes, hothouse, 8-1b. basket, $1.85.

Chicago Grain Futures

CHICAGO GRAIN RANGE (By United Press)

High Close 14% Lain | 1.20% 130

6 HE 35. Sage. doz. $1. Sauash.

Toma-

Wheat —

Dec May July

Cormne—

Low 39%

spt 323233 Fis

52% TL

3% a | 8

a Qt S-10 - “ “w -

+ z= or

5 5

has |

. first cutting, ‘lung, $17

STOCK BUYER SOUGHT

| |

When stock is to be sold it is the floor broker's This he does by going to the trading post (above) where members dealing in the The latest bid and asked price on that stock is the basis of the dickering between Wuying and selling brokers.

job to find a buyer,

particular stock congregate.

MARKETS HERE

BOOST VOLUME

~ OF CORN TRADE

Show 63 Per Cont Increase trespassers was one-third less than®

Despite Crop Shortage Due to Drought.

Despite the fact that Indiana's 1936 corn yield was only 65 per cent of the last five years’ average, 63 per cent more corn moved through Indianapolis markets this year than during 1935, a survey made by E. E. Allison, Indianapolis Board of Trade vice president, |

showed today. The report also showed that more |

| than a million and a half more

bushels of oats and 169,000 more bushels of rye moved through Indianapolis markets this year than last. Decrease in amount of wheat handled by local markets was reported as amounting to nearly 800,000 bushels. The drought was given as the cause, and Mr. Allison predicted the wheat carryover at the close of the present crop year, June 30, 1937, promises to be the smallest in many years. Losses in production of the soy bean, a comparatively new commodity, were shown to amount to 15,000,000 bushels. This also was attributed to the drought. He also said receipts in terminals will show effects of the drought through the first half of 1937. Drop in terminal receipts should not, however, reflect the entire loss in production, he predicted. For example, only about 15 per cent of corn produced moves in commercial channels.

Reduce Farm Animals

“In years of low production and correspondingly high prices and feed scarcity, farmers reduce the number of animals on feed and market a slightly higher percentage of the corn produced,” he added. “Winter wheat in this and adjoining states yielded just about an average crop in 1936. Great losses were suffered in the southwestern part of the winter wheat belt and throughout the spring wheat territory in the Northwest. “As a result wheat in Indiana moved to market at a rather attractive price compared to the prices of the past few years. Surpluses that began to accumulate in 1926, and which reached their peak in 1933, practically have been dissipated,” he said. Mr. Allison predicted the soy bean would prove to be an important source of income to agriculture. Table of grain receipts at local terminals for the past two years follows: 1936 3.020, 000 9.5

GEORGIAN BAY LINE TO MAKE PAYMENT

Times Special DETROIT, Dec. 26—What was reported to be one of the few dividends paid by any Great Lakes pas-

5c. | senger boat line this year was de-

clared by the Chicago, Duluth & Georgian Bay Transit Co. Passenger traffic gains of 37% per cent in the year made possible the $250 dividend to preferred stock-

. | holders of record Dec. 12. D. Dwight s, | Douglas, company * | president, said.

executive vice

Money and Exchange

INDIANAPOLIS STATEMENT Stings

Clearings for week Debits for week

CHICAGO CASH GRAIN (By United Press) , Dec. 26.—Wheat—No. 1 hard, © 8 low xed, 0 1.103; 102i 0, 5 yellow. oles 0 oats: No. @l 4 white, $107%

0, 5 1.08% 0734: white, $1.10%%

$13.75 \ $12.98 i leaf, 12.25 nominal; ‘belles. $16.12 nominal.

LOCAL CASH MARKET

, $16@ 1 clover, [email protected]: No. 1 alfalfa, [email protected]; second cut-

i |

SATURDAY, DECEMBER 26, 1936

PRICE AGREED UPON

When a price has been agreed upon, the selling broker cries “sold!”, notes the number of shares, price and buying broker's name on a slip of paper and gives it to a tube boy (left), who dispatches it to the ticker room. Another slip is given to the broker's phone clerk, who relays the information to the office, which confirms the deal to the customer, who probably never will know who bought his shares.

RESERVE AREA Steel Company Has Increased

Reports Decrease of Illegal

Train Riding and Trespassing

Times Special

WASHINGTON, Dec. 26.—Although illegal train riders and other trespassers on railroad property are said still to present a serious safety | problem, the Association of American Railroads announced today that in the six months’ period ended with October, the number of such

| in the corresponding 1935 months. Reports from 76 railroads showed

| that 2,369,162 illegal train riders and

trespassers were removed from trains, prevented from getting on trains, or ejected from railroad property without being arrested. This was said to be a 31 per cent decrease from the 1935 period corresponding. Similarly, it was reported that the number of illegal riders and trespassers has been decreasing in recent months, with a drop of Octo-

| ber 18 per cent below September and

81 per cent below August. In the first eight months of 1936, 1793 trespassers lost their lives and 1711 were injured, the report said. These figures were said to have been slightly lower than in the same 1936 period.

DEPARTMENT STORE COLLECTIONS CLIMB

Reach Highest Point in Two

Years, Bureau Reports.

Times Special WASHINGTON, Dec. 26—Department store credit collections during October were reported today to have been the highest since records have been kept by the Bureau of Foreign and Domestic Commerce. The bureau's data on retail collection conditions, first compiled in January, 1934, are based on the credit operations of more than 400 department stores, it was said. A seasonal increase of 7.4 per cent in payments on open-credit accounts receivable was reported to have sent the rate to 48.4 per cent. The instalment collection rate likewise was said to have been higher in October, when a percentage of 17.8 was reported, against 16.5 for

September. FILES ISSUE REQUEST

By United Press WASHINGTON, Dec. 26.—The Chicago, Burlington & Quincy Railroad has asked the Interstate Commerce Commission for authority to issue $7,080,000 of 2 per cent equipment trust certificates, the revenue from which will be used for purchase of new equipment.

EXCHANGES REMAIN CLOSED TODAY

Commodity and security exchanges and the livestock markets throughout the country remained closed today. The grain markets, however, were open, Trading, as usual, is to be resumed Monday.

SALES IN RURAL AREAS INCREASE

Show Gain of 18 Per Cent in November Over Figure For Last Year.

Times Special WASHINGTON, Dec. 26.—Preliminary figures of the Bureau of Foreign and Domestic Commerce indicate that November daily average sales of general merchandise in small towns and rural areas were about 18 per cent above those for November, 1935. November sales in the rural chain stores and mail-order houses, on which the bureau estimates were based, decreased about 3 per cent from October, it was said. Usually there is a slight increase at this season, it was said. The seasonally adjusted index therefore receded to 12212 for No-

vember, on the basis of 1929-31 as.

100, from the October figure of 127, highest for any month since September, 1929, the bureau announced.

G. M. DENIES CHARGE OF UNFAIR PRACTICE

Claims Trade Body Has No Jurisdiction in Matter.

By United Press WASHINGTON, Dec. 26.—General Motors Corp. and its subsidiaries denied today in a reply to a Federal Trades Commission complaint that it had falsely and misleadingly represented the amount of interest charged automobile buyers under its deferred payment plans. The corporation was one of 21 automobile and finance companies named in eight Trade Commission complaints charging unfair competition in commerce. The reply also maintained the commission has no jurisdiction in the matter and that the complaint failed to state facts sufficient to constitute a violation of the act.

CRUDE STOCKS DECREASE By United Press WASHINGTON, Dec. 26—The United States Bureau of Mines reported today that stocks of domestic and foreign crude petroleum totaled 287,857,000 barrels the week ending Dec. 5, a decrease of 773,000 bar-

rels under the previous week.

Raw Material Prices Higher

120 } ig

WHOLESALE un PRIgss

esr]

| | | i

100

1926

Index

Prepared

Admevstretve and Research Carporahon- New York

1926 1927 1928 1929 1930 1931 1932 1933 1934 1935 1936

The recent sharp increase in raw material prices has not yet been products.

price of finished

AND GOES

exchange.

BUSINESS PACE BEST SINCE '29

~ Employment and Pay Rolls Highest for Any Month Since Slump.

Times Special CHICAGO, Dec. 26-—November industrial employment and pay rolls in the Seventh Federal Reserve District, which includes most of Indiana, were the heaviest of any month’s since 1929, the Chicago Federal Reserve Bank announced today. Following unusually sharp gains in October, employment in district industries for the month increased from 3% to 7! per cent, the bank's Dec. 31 report will say, with every state showing increased pay rolls and all but Indiana increased employment. Michigan was said to have been responsible for nine-tenths of the increase. Seasonal Dip Noted

Business volume was reported to have declined in accordance with seasonal trends. Increases over 1935, therefore, were smaller than in October, although the grocery trade recorded the first gain over last year since August. Department store sales were reported 4 per cent below those of October and only 12 per cent heavier than in November, 1935. The production of packing house commodities at the inspected slaughtering establishments of the United States was reported to have risen by 11 per cent in November to a level 2812 per cent over 1935 and 81:2 per cent over the 1926-35 average for the month. The small 1936 corn crop caused a heavier than normal liquidation of cattle and hogs, it was said.

Furniture Trade Brisk

Furniture factory activity in the district was reported decidedly above the average and much heavier than a year ago, although the shipments were reported seasonally lower than in October, Orders booked in the month showed little change in the aggregate from the previous month and the 15 per cent decrease was less than the November average, it was said. Retarded somewhat by strikes in related industries, the production of automobiles recorded a further rise in November, the bank reporé revealed, and about equaled that of November, 1935.

Auto Output Up

Passenger car production was reported 79 per cent above the October figure and truck production 57 per cent higher than in the previous month. The dairy products industry, it was reported, recorded the usual November recession, but kept production above 1935 figures. Increased demand for currency and heavy Treasury collections in the district were reported noticeably to have decreased member bank reserve balances between Nov. 18 and Dec. 16, and a general increase in several classes of loans was re-

‘FOODS AND TEXTILES LEAD INDEX UPWARD '®

Times Special WASHINGTON, Dec. 26. — Food and textile prices, both at the highest point reached in the recovery period, led the National Fertilizer Association's commodity price index still higher in the week ended Dec. 19, it was announced here today. Seven of the eleven principal group indexes used in the compilation were reported higher for the

| TWO MILLION IN ORDERS ! Times Special !| LOS ANGELES, Dec. 26.—Lock- ' heed Aircraft Corp. had unfilled orders on the books Dec. 12 totaling more than $2,250,000, according to | Robert E. Gross, company president.

Safe Deposit Boxes The . Indiana National Bank of Indianapolis

week. Only three declines were !| noted.

PAGE 11

ON TICKER

To keep the world abreast of values, stockholders must be told of the sale of the customers’ shares. About 5000 tickers take care of that. They are operated from this control room in the New York The notation of the deal is put on the belt that carries it past the ticker operator.

gained 178 per cent.

MEMBERS GET INFORMATION

sponding month in 1935 and air express carried

R a :

Up to this stage the operation of the Stock Exchange seems pretty

exclusively a man’s game.

Which is a cue for the ladies to enter—

120 of them, all working in the quotation room, each connected with

a direct wire to the floor of the exchange.

With eyes on the quota<

tion boards overhead, they supply member firms with the information on stock price fluctuations, hot off the floor.

Salaries of Office Employes

By United Press

PITTSBURGH, Dec. 26.—Salary increases have been given to approximately 85 per cent of Carnegie Illinois Steel Corporation’s 9000 office

| workers since Nov. 16, the corporation announced today.

It was the first tabulation of the®—

number of “white collar” employes affected by the “individual” salary adjustments announced at about the same time 100,000 mill workers received 10 per cent wage increases. In the administrative offices in the Pittsburgh-Youngstown and the Chicago districts and in the mill communities in the PittsburghYoungstown district, the percentage of office workers who received higher pay was 85 7-10, the company said. The number employed in those districts was 6829. The number who received increases was 5886. No tabulation has been made of the approximately 2000 office workers in the mill communities of the Chicago district, but the company estimated the percentage granted increases also was 85 per cent. The salaries of those who did not receive increases on or after Nov. 16 had been adjusted previously, it was said. The company pointed out that all salary increases were the result of “individual contact” between the worker and the management and not through collective bargaining.

CLEARINGS SURPASS SEVEN-BILLION PEAK

Total for Week Climbs 15.7 Per Cent Over ’35 Period.

Times Special NEW YORK, Dec. 26.—Rising $1 227,692,000 from the week preceding, bank clearings as reported to Dun S& Bradstreet for the week ended Dec. 16 were at the second highest level since 1931, it was announced today. The week’s total was reported to be $7,235,888,000 in 22 cities, an increase of 15.7 per cent over the corresponding 1935 week's total. Largest gains were reported for Pittsburgh, Baltimore, Richmond, New Orleans and Chicago. Only Omaha failed to register an increase over the 1935 figure, it was announced.

TRADE WITH PUERTO RICO AT 70 MILLION

Times Special

WASHINGTON, Dec. 26—Pur-

chases of industrial products by !

Puerto Rico from the United States totaled $70,000,000 in the first 10

months of this year, the Rican Trade Council estimated today. This represents an increase of about 25 per cent above the same period of 1935, the report said. Fertilizer shipments, up 50 per cent in the year, held first place and lumber second.

Produce Markets

(The prices quoted are paid for stock gathered in the country, while for deliv. eries in Indianapolis the prices are 1 ce higher. Each full case of eggs must woten 55 pounds gross do gs—No. 1 strictly fresh,

Heavy breed hens 5 Ibs. and over, 12c: under 5 lbs., lic; Leghorn breed hens, Reavy 8c. Heavy breed springers, 12-4: 9c: over 42 lbs, llc. Leghorn breed soringors Te. cks, full- feathered and 2 t. 5 lbs. and up, Sc. ese, full-feath-red and fat. 7c. Turkeys. co toms, 14-18 1bs., 1bs., llc; young hens, 10 ibs. and over. 13c; old toms. 7c: old hens, 8c; No. 2, 8c. Butter_Creamery. No. 1, 31lk@3s sc; No. 3 3 5a) l2¢. Butterfat—No. 1, 33c:

loss of, 23c

Puerto |

INFLATION PAGE REPORTED SLOW

Loans and Investments of Reserve Members Show Second Decline.

Times Special NEW YORK, Dec. 26—Little progress toward greater ination has been made during the last five months, the Alexander Hamilton Institute reported today.

Total loans and investments of reporting Federal Reserve member banks declined in November for the second consecutive month, the report revealed. There has been no expansion since the June peak, it was said. So-called commercial loans were reported at a new high peak for the recovery movement, but the increase was said to have been more than offset by the drop in holdings of securities. No scarcity of loanable funds exists, the institute declared. It reported Federal Reserve Bank member reserves at the end of November $2,210,000,000 in excess of the required amount. Money rates were stiil extremely low, the report declared.

COMMISSION CITES TELL GITY GONGERN

Name Gabriel’s Laboratories In Federal Action.

Times Special WASHINGTON, Dec. 26—Gabbriel’s Laboratories, Tell City, Ind, has been cited by the Federal Trade Commission for alleged misrepresentation of mange and distemper treatments for dogs. The concern is operated by Gabriel S. Eusch Sr. and Gabriel S. Eusch Jr. 402 Main-st, Tell City. The complaint alleges that, contrary to claims, Gabriel Mange Cure does not “kill mange overnight” and that their “On-The-Nose” treatment for distemper has

| allowed to answer the charges.

'BUSINESS ACTIVITY IN FAR WEST GAINS

Times Special SAN FRANCISCO, Dec. 26.—With all important indices showing a substantial gain over 1933, business activity in the Far West reached the highest level since July, 1931, according to Bank of America figures released today. The bank’s preliminary index for November stood at 78, a gain of 5.4 points over the November, 1935, level, it was reported.

INCOME AT $10,248,326 Times Special BOSTON, Dec. 26.—Eastern Gas and Fuel Associates net income for the 12 months ended Nov. 30 after Federal income taxes had been deducted was $10,248,326, company officials revealed here today.

Open a Christmas Spvingy

Account With

THE INDIANA TRUST CO.

Member of the Federal Deposit Insurance Corporation

CAPITAL SURPLUS

$2,000,000.00

OLDEST TRUST COMPANY IN INDIANA

no curative value. Twenty days are |

BUILDING TOTAL HERE $379,330 FOR NOVEMBER

Usual Seasonal Decline for Construction Reported By Secretary.

Times Speciat WASHINGTON, Dec. 26.—Cone struction for which permits were issued in Indianapolis during Noe

vember totaled $379,930, Secretary of Labor Frances Perkins reported today. Figures released at the same time for other Indiana cities showed that permits during the month were issued for buildings at an estimated total cost of $197,464 in Fort Wayne for $127,012 in Evansville, $62,908 in Gary and for $56,745 in South Bend. Building construction in November throughout the nation was characterized by the contraction that ordinarily attends the season, Miss Perkins declared, but it was 31 per cent greater than in November, 1935.

New Homes Total 2141

Although residential building was more than 10 per cent below the Oc= tober figure in the nation, the East North Central states, in which Indiana is included, reported practically the same home building as in the previous month. In 347 cities of the district, Miss Perkins said, new residential builde ing totaled $12,078,756 for the month, compared with $12,113,440 in October. Families provided with new homes in the month were reported to have totaled 2141. A slight gain in the construction of new non-residential buildings was reported for the period in the West North Central states. In the samer 347 cities, Miss Perkins said, none residential construction totaled $7, 851,001 in November against $7,710,« 040 in October,

AMERICAN MUTUAL DECLARES DIVIDEND

Times Special BOSTON, Dec. 26. — American Mutual Liability Insurance Co. to=day declared a dividend of 20 per cent on all policies expiring during the month of February, 1937, its 580th consecutive dividend of 20 per cent or more, company officials revealed today.

GOODYEAR TO BUILD PLANT By United Press JACKSON, Mich, Dec. 26.—The Goodyear Tire and Rubber Co. of Akron, O. will spend $3,500,000 in a remodeling project here which eventually is expected to furnish employment for about 1500 men in the manufacture of truck and pase senger car tires and tubes, officials said today.

BUSINESS EDUCATION

Strong Accounting, Bookkeeping, Stenographic and Secretarial courses. Day and evening sessions. Lincoln 8337 Fred W. Case, Principal

CENTRAL Business College

Architects and Builders Buildin Pennsylvania & Vermont Sts., Indpls.

A LEGAL RESERVE MUTUAL COMPANY ORGANIZED IN 1905

The Indianapolis Life is equipped to provide for all the needs for every member of the family, Our contracts are unsurpassed for meeting needs for adequate insurance and for a safe method of investing to guarantee future income. ®

Tune in on “Life's Eple sodes” each Sunday afternoon at 3:45 over WIRE.

* Edward B. Raub, Pres.

INDIANAPOLIS LIFE INSURANCE COMPANY