Indianapolis Times, Indianapolis, Marion County, 27 December 1937 — Page 6
Wheat Futures Make
| Gains of More Than : Cent..
CHICAGO, Dec. 27 (U. P.). —Under leadership of corn, which climbed to the highest levels since October, wheat futures made gains of more than- a -cent on the Chicago
Board of Trade today. - At the end of the first hour wheat was 1% to 1% cents higher, corn was 1% to 2 cents higher, and oats were % to % cent higher. After a dull and featureless period at the: start, wheat turned sharply higher. as heavy buying began in corn. “ A commission house with Eastern and export connections was
the principal buyer in the midmorning rush. An advance at Buenos Aires was chiefly responsible for the boom in Chicago. Liverpool and Winnipeg are closed in observance of Boxing: Day and chief news of interest has been that from the Argentine. Wheat receipts were 48 cars. ° The price upturn in Chicago corn reflected the strength in Buenos Aires where prices climbed more than 3 cents a bushel. Reports of a good export business and sustained elevator and shipping interest buying were the principal bullish factors. Corn receipts were 230 cars.
ARGENTINE SEAIN IRES, Dec. 27 (U. P.).—Gra Ly. Vroat- Decstibe. $1. i 'ebruar 1h 01%, unchanged. Pes ember, 76%¢c, up 3%c; Feb
3c. Oa ts—Spot, changed; arch, $1.29, unchanged.
' wacoN ‘WHEAT ain Sevators are paying her grades on their 2 yellow, 46c.
BUENOS A futures, stead unchai
for No. merits.
Lu 8
Camn ar oe 27c.
N.Y. Bonds
By United Press BOND PRICE INDEXES . 20 20 20 60 Inds. Rails Utils. Bonds Friday ........ SL1 52.4 941 818 Week ago ..... 81.4 81 945 Month aPe .... 811 11 94.2 Year ago 105.3 Two 103.1 1937 106.0 1937 92.3 1936 106.2 1936 low 108.5 1935 103.6 1935 lo 89.3
No.
82.1 99.7 92.4 100.7 81.1 100.2 93.3
83.0 NEW YORK, Dec. 27 (U. P.).—Bonds opened steady. Net xn Change Allis Sha Js crssens . 3% ht B & O 55 ’95
Va Rwy 3%s
Curb Stocks
By United Press NEW YORK, Dec. 27 (U. P.). — Curb Am Ge DE steady,
A y 4s Sires eananes Stl So. West 55
Am Sup Pow aes Cities rvice ... Col O&G
MEAT PRICES SHOW SHARP DOWNTURN
CHICAGO, Dec. 22 (U. P.).—Meat prices, which have been steadily on the downgrade since mid-Septem-ber, have had a suddenly accelerated decline in the past week, the
Institute of American Meat Packers reported today. The drop in the past week amounted to between 2 and 12 per
cent, the institute said. This reduc- | &
tion included beef, pork, veal and lamb.
Increasingly heavy receipts in the
livestock yards, declining livestock |. prices and the seasonal swing to}
poultry for holiday meals were cited as prime reasons for the downturn in meat costs.
CHICAGO PRODUCE
firsts,
score). 3215 . firsts, 301% aR *i4 Ya @ Sentralized (89 (88 ). 30%
1 car, 8
track, Fridsy;
LOCAL PRODUCE
Chickens—Heavy breed pl 1bs and up, an er Ave lbs. de: Leonor > avy springers, 1} 13% Ibs. and 14; eDack broilers, -15c; old
Tur Young hens, 8 lbs. and aver, 20c; rieysYoune, hen 1bs., 19¢; old hens 18¢c; od A De, 14c; No. 3 turkeys, ldc. and’ over, full
shipments #1 Baturday.
Du v thered and fat, 13c; lored, 4% lbs. So over, 12c; under ATR dot:
1lc; Indian Runner 6c: geese, Toe Ibs and up. fall feathered, 1%¢. ©
a strictly fresh sountry_ rin f must weigh Ibs. Sn ross, A net deduction ot 15¢ for each full Butter—No. 1, 3814 No- 2 3812@
Butterfat—No. 1, 35; WN. . 3 wg, Bu quoted by Wadley Co. te.
DAILY PRICE INDEX
NEW YORK, Dec. 27 (U. P.).—
weighted |
= (1930-32 average 100):
Friday Te ree saan 117.14
+ 117.08
83. (Cioyright, 1937, Standard Statistics Co.)
1h $11
LA % | Market
: 1bs., $7. 100-150 Tbs.
10 | [email protected]
Porker Prices |& Unable to Hold Opening Level
The hog market here opened steady on weights upward to 200 pounds and 10-15 cents ‘lower on heavier weights, but was unable to hold these levels as values here were relatively high, according to the Bureau of Agricultural Economies. Consequently, later deals on weights upward to 225 pounds were 15 cents under early deals, and many bids on heavier averages sharply more lower than early. A top of $8.85 was paid on opening rounds for best 150-180-pound averages. Packing sows lost. mostly 25 cents to bulk from $6.25 to $6.75, a practical top of $7 being exceeded by only a few early sales of lightweight butchers reaching $7.25. Early activity in the cattle trade was chiefly on cows, especially the low costing kinds selling under $5. These sold fully steady, together
with, a few loads of heifers, while|C
practically nothing in the steer and yearling line: moved up to a late hour, rmost bids being around 25
cents lower and asking 8 es largely &
steady.
c Best steers on offer were valued Sr
around $9, the crop comprising mostly plain to medium kinds. A load of 765-pound heifers cashed at $7.85, with a load of lighterweights at $7. Low cutter and cufter cows went at $4 to $5 mostly, best beef cows to $6.50. Bulls were steady at a practical top of $6.75 on sausage offerings. Vealers held steady, with good to choice grades from $11 to $11.50. Lambs declined 25 cents to sell at a top of $8.75 for choice handyweight natives and best finished Westerns, other good natives from $8.25 to $8.50 and throwouts as low as $5.50. Good to choice fat Texas yearlings at $7.75 were 25 cents lower. Slaughter ewes were steady at
$3.50 down.
Top 8.25 8.20 8.20 8.60 8.85 8.85 8.85
Receipts
FRB38sR 8
0m0m0D *
. 8.30
8.85 85
choice. .
a. mem
choice. .
Good choice. .
Goo +000 Food
w®m ADA a3 BO 53 938% &8
bb
(900-1100)
at
disiorion 22
SINT DIBID D123 Tha Sat baoon ato SNS SDN
9939393999989
Pol fb oh pk Foe ae RISE
001 =100 1 NOV WD ND 300 SANIT NTI DINE a3 S233
(1300-1500) Good
. | Good Common
mediul Tow cutter and cuiter
Good (beef) . Cutter, common and medium..
Vealers —Receipts, 200—
Good and choice Medium
008 Sacre 88 33%
(250-500) Good and choice... 7.00@10. Common, medium. sea:
Feeder and iSocker Cattle
=o
(500-800) Sood | ana choice. . n, ‘medium. (800-1050) Good and choice. .
Hott mmon; medium. eifers— atop choice Common and medium
Cows—
Go Common and medium SHEEP AND LAMBS —Receipts, 3200—
Sh UG sane 88 3% 283%
89 89 9888
pon B29 a@-m 3% 838 38888
n Ewes— 90-175) *Good and choice.. Common .medium.
CHICAG Dee ud (U. —Hogs—Receipts, 31.000, including 800 ot market around 25¢ lower: ed $8.50; bulk 150-200-1b. ayers) 4 [email protected]; 210-240 lbs., $7.75 @8.25; 250-300 1bs., $7. [email protected]; good packing sows, [email protected]. Cattle—Receipts, calves Teceints, 2000; largely fat steer, heifer ru little done; order-buyers tradin ‘strictly long-fed steers on specialty ket: market, steady, 25c lower; sharing drop; early top steers, $13.85; loads bullocks, $12@13: stockers -— searce Saysage bulls, $6.75 down; vealers, down Sheep — Receipts, 15,000 including no directs: fat lambs, slow, 25¢ lower; most early bids showing full decline; sheep market. steady: few sales handyweight lambs, [email protected]; best held higher; most ot ther bids downward to $8.50 or below; few good to choice native ewes $3.50 Pr..f
(U. a bulk 150- 170 bs..
2. 1
10@25¢ Tower: 170-225 1b: 60@8; 27 ’ $8.25 @8.05; ; roughs, Calves, $10.50@11. Lambs, [email protected]. PFT. WAYNE, Dec. 27 (
U. PB.) K Market, 25@30c lownr: 140-160 The. aa -180 Ibs 180- 200. hey oo 25;
[email protected]: 275.
$7.60 25:
-120 lbs. i} | Eee $6. 7; Sas $5.50. Calves, $11. 50.
$8.50
(U. P.).—Hogs—"
[email protected]. C p 500: market, fairly active, uneven; steer, yearlings and ; heifers mostly pee to
strong; part load 585-1b. babv-beef arli 3 lo 850-1010.
lambs held a around $9: few merely plain to medium sold at $8.25 5 with Sommon “3nd cull grades quotable mainly,
FOREIGN EXCHANGE
NEW YORK, Dec. 27 ~—Noon foreign exchange narrowle sy = e
Rates Change Eagland (poun 4.99 Pe. England (ood) bill i
ra Sirs Canada {do ar) L.. .99 27-32 —.00 1Prance ©) = A330: +.00 in Relgium (be a) .... 1696 Germany Toa EB) i. i rmany (
mar Switze: ahd “(franc) . Poland (guilder) Bi (kro
—.00001/; —.0001
Ya
go ;
16.98 |
BD EE EE EERE EE DERE REDDER > » Gorey 8 8
0 00 Harb-Walk ....
choice. .$ 8.45@ 8.85 | In.
| the . committee?
. THE INDIANAPOLIS TIMES
£ Hin Abbott" Lab .... 36% s Mil .... 19
orp ..:. 1%. rf. 15% Ss don . Ya 50
: BE
| =
+111:
13 * ave i 16%
TE RRs EF Eser wwessy
HHL
Pu Hu di % 60% 60%
+1 IHI+
1 G&W I pf.. Aviation Corp oe
3alt alt & So ) ot.. Bendix 12% 3eth Steer 7 of 913; . Blaw-Knox .... 12% Boeing Air .... 3312 Bond lores oe 12 Borg-War: 25% Briggs & Strat. 35% 17%
Brown DT Byers, A M ... 9%
&
TR
Calumet &H.. Can Pacific _...
BER CRE FESS RESEEE BE sit HU
Cama CC SEE Se
WN W Or I0I00 0) ~TWVW BIO = al +H LEE
BD “es .
Sas FS
CHLEIE
= y
Curtiss-Wr A ..
Deere & sa eee
Do! s... Douglas Alr ie 168% 188% cess
i
16%
East Kodak . Elec Boat . . Elec Pwr & L Erie" Nat Gis ii
108% oe
i 7
16%
ar Wood 3nd: ren Electr en Fooda® oy nG&EA. 1 on Motors ... 32
G 53 C Ys G Ge G GC A Glidden GC G Gr Gt G
. 43%
ranby rand’ Jnion. «s WT orth o irevhound Op.
289 a 22%
Bist 5i%e Ye
107% and Stl .... 75% nsp Co 11 [nt nt
Hecker Prod .. Herc Pdr
[11 Central ....
Int T &
June, 8, e NE Kroger G & B. 15% 15%
job ¥Y Coal ...
2 5%
LOCAL ISSUES
(By Indianapolis Bond & Share Corp.) he following quofations do not represent actual bids er offerings, but merely indicate the app proximate market leve, based on buying and ling inquiries or recent transactions.
BONDS
ae Ind Tel (TH) 4Y%s 61.. el & a Pt W 5%s 53.. 1 Tel & Tel Ft W 8s 43 [Ind Aste Tel 412s 65 [nd Tel Co 5s D, [nd Railway Inc nterstate Tel & Tol Sis 53.. dpls Wate 66
Mac x Man El Tod gtd 5%
Pu Brogress. rund Smith Alsop Smith Alsop P Terre Haute Elec Go 6% oes Union Title winise Van Camp MK °Co ‘pfd’’ Van Camp Milk Co com (By M. P. Crist & Co.)
xMarket St. Investment Corp 23.41 ¥Ex-Dividend.
cos 38% ees 52 56 oon 10 11%
25.16
By ©
Ar STOCK rT -
30 INDUSTRIALS | sisenessasnnse 191.96 secescosartscnsee .129.08 Month Axe ssnasssenssandeey 121.58 Year Ago sesassenss 1701S High, 1987, 194.40; low, 113.64. “High, 1936, 184.90; low, 14311. ; 20 RAILROADS hse aeasnaned S140 essissesnsssssuses 32.58 Month ARO <....cceccooesuess SLB Year ARO coccinea Nisassnss DRO Righ, 1987, 64.46; low, 20.15, High, 1936, a: low, 40.66. : 2% UTIITIE
—0.27 +2.45 -2.13
Year Ago High, 1987, 87.54; ‘low, 19.65. High, 1986, 36.08; low, 28.63. 70 STOCKS |
Year Ago High, 1937, 60.6%; Tow, $8.87. High, 1936, 66.38; low, 51.20.
Martin Gl
i Masonite Corp . 3 . | McIntyre Pore,»
Kesson & R Mckesn & R pf 30%
3: eld: bbe: Faas aes
oF
gino 5 28
pil
PS
Fa)
Reyn To es Riontield oil .
St Jos Lead oes t L-S Fran .
Js: 1
tone & Web. . Symng Guld xw 1 —T— 41
ie
Texas Corp ... Tex G Sul
Tex Pac L T.. The Fair pf ...
INCREASE BUYING OF STEEL IS SEEN
Pickup Is Expected Early in . '38, Magazine Say.
%
| Dec. 21 (U.P)—
| CLEVELAND The steel industry is going into the final week of 1937 with production
at the lowest level of the year, but
the opening weeks of next year are 1| expected to bring buying improve-
ment in all lines, the magazine Steel said today. “Consumers ‘'who have been ges laying orders as far as possible, to limit their inventories, are expected to place business when the turn of the year has passed, and necessity for rigidly holding stocks as low as possible no longer operates,” the
. | publication said.
“Already indications have appeared of a better feeling and this is likely to continue in increasing measure. However, the improvement is expected to be conservative fqr the early weeks of 1938.” Plant shutdowns resulting from the Christmas holiday, as well as
1s "| light buying brought the national
operating rate down 4 points last week to 23 per cent of Sapaciy Pittsburgh dropped 5 points to 1
per cent, Eastern: Pennsylvania :
| points to 25, Youngstown 12 points to 18, and Cleveland 12 points to 24 per cent, among the important
changes Holiday closings also affected automobile output, the trade journal said, estimating last week's production at 67,230 units, nearly: 15,000 less than in preceding week. Indications are that this industry will
require less steel in 1938 than during the present year, but substan-
T—
tial tonnage. is-looked for.
Flynn Sees Introduction of Military Program in Congress
By JOHN T. FLYNN Times Special Writer
NEW YORK, Dec. 27.—A strange meeting occurred in Washington
Wednesday.
‘Hanna was a great advocate of ‘| subsidies. After that the movement got into disrepute. Yet it was under Roosevelt—the so-called enemy of big business—that shipping sub-
bs. | sidies ‘were revived, not by Republic-
ans, but by the President. This week the President’s Mari- .| time Commission proposed to the i | Senate committee a handsome gift
: | of Government money to the Stand-
ard Oil The Standard Oil Co. —or one of them—plans to build 20 vessels—tankers. Such a ship costs about $3,000,000 to build and that
spend. But the Maritime Commission urges that the Government pay about 26 per cent of the cost.
U. 8. Would Put Up $800,000
In other words, on each ship whick. the Standard plans fo) build at $3,000,000 the Standard will put Fup $2,200,000 and the Goverament yi put up $800,000. Thus, on the 0 ships | Government will
least, will be an outright gift. that, perhaps, is that the b tankers
cf these & is in some uneo 3
portant M war-vessels—at least essential aux-| to
is what the Standard proposes toi}.
Bu: why the secret session With | py The answer to]
The Maritime Commission head had a secret session with a Senate -| committee about a private ship-building program. It is a little difficult | G5i¢ Res :| to credit, in view of the endless attacks which business makes upon the President. For years the privete shipbuilding industry has been trying to get its arm into the Government barrel for subsidies. Republicans : | ‘have f\ught for them since the days of McKinley. Under Theodore Roosevelt, Marke
4 struction was tanker construction.
When I asked about this some time|
ago :I was told that that was imsince tankers were partly
iliaries of the fleet. Confers in There is in
dent :is . foward a heavy armament program. In fact, after
talking with men who I think know
what is going on inside the Administration, I became convinced that early in the next session we-are to
gram in Tum
payin $16,000,000 —whioh, in one sense at|p,;
—1.48 | Tri Cont
| & Tube 41, off 1%.
y fii
Washington a pret; ‘well-defined feeling that the Presi-
+ D1 Hr 1, 3 il : se ae = s er ss Le
+114: +1:
ub . Un StoresiA ... Vick Chem ....
Verma ae Woodworth .... 36
Yellow Tr 9 evs Young Sheet .. 42 -— Ya
Zenith Rad ... 18% — %
STOCK oe LIGHT AT FEAR OF CONTROL
» | Prices on Market Decline to
More Than 2 Points.
NEW YORK, Dec. 27 (U. P). — Fears of Government “cracking down” on big business brought small amounts of selling into the stock market today and prices Yeciined to more than 2 points. Several stocks were driven to new lows for the year or longer, including Chrysler which sold at 52, off 1; American Can, 72%, off 2%; Continental Can, 387%, off 1%; American Tobacco 60, off 3%, and American Tobgcco B 60%, off 1%. | Railroad - issues joined ‘the decline and registered losses ranging to more than a point. U. S. Steel declined to 583%, off 1%; Bethlehem, 597%, off 2%, and Youngstown Sheet
Today's Business At a Glance
CORPORATION NEWS
“|” American Power & Light Co. 12
months ended Nov. 30, consolidated net income $11,276,647 equal to 54 cents a common share vs. $10,495,730 or 28 cents previous 12 months; 3 months ended Nov. 30, net income $2,548,319 or 4 cents a common share vs. $2,826,611 or 14 cents year ago. Black & Decker Manufacturing Co. year ended Sept. 30, consolidated net profit $1,052,169 equal to $2.98 a common share vs. $898,240 or $2.74 previous year. National Power & Light Co. 12 months ended, Nov. 30, consolidated net income $8,911,362 equal to $1.32 a common share vs. $7,118,456 or $1 previous 12 months; t months ended No. 30 net $2.41 8,395 or 36 cents a common share vs. $1,968,405 or 28 cents year ago.
RAILROAD REPORTS Chicago & Eastern Illinois Railroad Co., November net operating income, $162,845 vs. $245, 162 year ago; 11 months $1,246,992 vs. $1,254,552 year ago. Great Northern Railroad Co. first 11 ‘months net income, $9,215,999
$371 a share vs. $6,670,062 or + year ago; November net $41 764 vs. $337,633 year ago.
Kansas City Power & Light Co. 12 months ended Nov. 30, net income $4,444,012 equal to $8.10 a common share vs. $4,689,306 or $8.47 previous 12 iy Louisiana & Arkansas Railroad Co., November income, $30,382 vs. net. loss $69,576 year ago; ‘11 months net income $387,303 vs. $284,856 year ago. Minneapolis, st. Paul & Sault Ste Marie Railroad Co., November net operating income, $2,510,061 vs. $2,050,594 year ago. New York Central Railroad Co., November net operating income, $1,4/826,677 vs. $5,027,105 year ago; 11 months, $37,005,245 vs. $43,498,688 year ago. Pittsburgh & Lake Erie Railroad Co., November net operating income, $161,269 vs. $516,185 year ago; 11 months, $4,351,062 vs. $4,911,044 year ago. . Western Maryland Railroad Co, first 11 months net income $1,689,254 équal to 61 cents a common share vs. $1,446,908 or 15 cents year ago; November net income $102,031 vs. $209,259 year ago. Wisconsin Central Railroad Co. November net loss $324,384 vs. $161, 141 year ago: 11 months net loss $675,149 vs. $746,563 year ago. . (Copyright, 1937, by United Press)
U. S. STATEMENT
- WASHINGTON, Dec. 27 (U. P.).—Government expenses and receipts for the current fiscal year, through Dec. 22, rompared with a gar S80 1 Yea Expenses ..$3,679, 68. 040, 74 $3, 258.000. 570, 49
Receipts... 3, 6 2 Ip 099,859, 45.64 103,156,035.19
3.16 ay 8 La, Total Pure. --$7,580.¢ 589.94 $1,232,669,'66.87
. INDIANAPOLIS CLEARING HOUSE
+ .$3,009,000 ress 1,427,000
FOOD PRICES
CAGO, Dec. (U.P. 5. 25@1. 5. Swe sven
aL, "bu, ‘Spinag oo cas], 35. Tomatoes—Cub: Cauliflo wer—California, Peas—Californla, Gna: I Slory Unquo ted ons (50-1b. Indiana ons Mich: Colorado a Ro $1.1
Inactive Gold
xa, Sai
kn)
$1.20: fo S10
BANK STOCKS
Bank of Natpatian vennenes Loo 30% a
Bankers
: automobile
stantially over that of the same day
A CHECK 1S ALWAYS WELCOME
Tgugein Whether it is Christmas bills, reguler monthly bills, or some
7 Jobless Total
May Increase Over Million
(Copyright. 1937, by United Press) WASHINGTON, Dec. 27. — The Works Progress Administration has submitted a report to Administrator Harry L. Hopkins showing that two million workers have lost their jobs since September, it was learned today. The report estimated that be-
tween one and two million more persons would become unemployed before Feb. 1. Only three high officials of WPA have enived the study prepared under the direction of Leon Henderson, former NRA, economist. The first draft was given Mr. Hopkins, Nov. 27, prior to his Southern fishing trip with President Roosevelt. The initial survey has been revised and kept up to date. The WPA staff now has compiled statistics showing the effects of industrial recession by states and industries.
Building Collapse Foreseen
The report shows 1. That between hires and four persons will have been added |' to unemployment rolls by Feb. 1. On the basis of the American Federation of Labor's jobless estimate,
which WPA officials said they con-|
sider reliable, this would make an unemployment total between 11 and 2 million persons by the epd of next month. The A. F. of L. esti-
mated 8,200,000 were out of work
Sept. 2 That the following basic indus-
tries have been affected most by
the recession: Steel, textiles, shoes, railroads, automobiles and
industries which,
month.
3. That the states which probably have suffered most are: Pennsyl-
vania, Ohio, Michigan, Wisconsin,
West Virginia, Illinois, the Caro-
linas, and the New England states.
mining. The survey predicts a collapse in construction and building materials it believes, will show sudden downward trends nex}
Business and Administration Squaring Off; Padding of Prices Charged.
WASHINGTON, Dec. (U. P.).—Organized business and the Administration were maneuvering today toward a 1938 conflict over taxation, Federal spending procedure and responsibility for the business recession which is | creating an unforeseen mid-
winter relief load.
The dispute likely will be fought out in the regular session of Congress beginning one week from toge and through the general elections which will dominate political action until polling day next November. The holiday season rumbled with liminary
gress that curtailment of Federal spending is essential and that Congress must find new revenue to carry expenditures beyond budgeted levels. The new budget, still a secret, has been completed and will be presented to Congress next week. Assistant Attorney General Robert H. Jackson, a New Yorker identified by some astute politicians as a possible White House favorite for the 1940 Presidential nomination, raked business with charges of monopolistic price padding. Senator Byrd (D. Va.), a leader among the active anti-New Deal bloc of Congressional Democrats,
STATE SLUMP
MAY EASE OFF
I. U. Bureau Notes Novem-
ber Recession, but Finds Data Hopeful.
ye Special
BLOOMINGTON, Ind., Dec. 27.--While business recession in Indiana continued during November, several
factors indicated that the low point, at least, had been reached, the cur-
rent issue of the Indiana Business
Review said today. >
This publication of the Indiana University Business Research Hureau also stated that reports from nies showed r cent lower
610 Indianapolis co employment was 3 during the second full week of No-
vember than during the corresporid-
ing October period.
Indianapolis weekly payrolls decreased 6: per cent during the same period. The wage slump and de‘creased employment was most 1noticeable in manufacturing concerns.
Reasons for Turn Given
In support of its claim that “rock bottom” was reached in Indiana last
month, the Review said:
“Strengthening of several basic raw material prices and declining inventories in many quarters were the most important reasons for the
turn of psychology.
“Some staple commodities toiiched new lows, industrial production still pursued a downward course and retail trade showed evidences of weak-
ening in some quarters.
Start of the recession was placed The business publication goes on to say that steel ac-
in September. tivity again reached new lows in
November, and it was apparent that consumer inventories were larger than estimated during October. Steel consumption during the month appeared, however, to be greater
than output. Coal Production Drops
Coal production declined slightly during the month to a point well below that of last year. Production of electricity, indicating the slump in industrial production, was lower than that of last month and a year, ago. Both employment and payrolls fell off. The decline of weekly paymuch greater than that
rolls w, of employnient. “Prices revealed by Indiana farmers continued downward during the month,” the Review stated. "The wholesale commodity price index declined 2.1 per cent and was slightly under that of last year. : “Prices of all major wholesale commodity groups decreased during
‘| the month but definite signs of a
decline in the rate of decrease were apparent in most groups. “During the last week of the month prices advanced over the previous week in the farm products, metal products, and. miscellaneous commodities groups. wig
Building Permits Increase
“Retail trade on the whole showed signs of weakness but by no means
| was the slump as apparent as that]
in industrial production. Departes | ment store sales were slightly below
Po- | those of October. Drug sales ad-
vanced somewhat. Postoffice receipts responded to seasonal influences and declined. New automobile sales advanced slightly but were much an | below those of one year ago. Used sales dropped off
arply. Sh debits reacted to seasonal influences and declined. Livestock: receipts advanced considerably during the month. The total value of building permits issued during the first 11 months of this year was sub-
period of last year.”
BELL RINGERS TO PEAY
The Mason Bell Ringers of Los t a second pro-
music at the First
opened a campaign to defeat Mr. Roosevelt's plan to abolish the present system of an independent preaudit of Government expenditures by the Controller General. Legislation to that end is part of the general reorganization of executive departments proposed by Mr. Roosevelt last January. “This proposal,” Senator Byrd said in a statement prepared for publication, “to give the spending branch of the Government a free hand with upward of eight billion dollars a year, much of it without an independent check before the money actually is paid out, strikes viciously at the vital elements of good government, good business and the general welfare. It destroys the last safeguard of Congress to compel expenditures to be made in accordance with the strict letter of the
law. Wheeler Goes Farther
Considerably beyond Senator Byrd went a proposal by Senator Wheeler (D. Mont.) who commanded battalions which defeated the New Deal Supreme Court Reorganization Bill, to establish an auditing and fact finding agency in behalf of Congress
not only to report on spending but to investigate and acquaint Congress with national conditions such as extent of unemployment, relief needs and ather disputed circumstances relating to the general welfare. Such an agency would give Congress independent information against which to check the statements of conditions made by Mr. Roosevelt or other representatives: of the Executive Departments. Bearing obliquely on issues raised by Mr. Jackson last night in his discussion of relations between Government and business was a report by the United States Chamber of Commerce that its tax study forewie a peak load for taxpayers in The Chamber said Federal, state and local taxes may reach $13,500,000,000 next year, approximately in| one-fifth of the expected national income—a ratio of taxation to in= come which the Chamber said “has been regarded as the danger signal.”
FEDERAL AIR LINE CONTROL PH PROPOSED
Col. E. S. Gor Gorrell Asks Agency Similar to |. C. C.
CHICAGO, Dec. 27 (U. P.)—Establishment of a “nonpolitical agency of the Government” to control the air transport industry was urged today by the nation’s major airlines. In his annual report, Col. Edgar S. Gorrell, formerly of Indianapolis, president of the Air Transport ‘Association, said such an agency would eliminate “cut-throat” practices and protect the investing public. He suggested that it be organized on the same basis and for a purpose similar to the Interstate Commerce Commission. It would control, he said; a system of certificates of convenience and necessity similar to that now in effect for railroads and public utilities; rates for domestic travel to secure reasonable returns and no more, and to insure uniformity; co-opera-tive action ‘to promote interline travel and to avoid oppressive measures; all new financing for commercial airlines, all consolidations, mergers and proposed or existing inEn interests.
MILK SALES PEcREAsE ‘NEW YORK, Dec. 27 (U. P.)— Daily average sales of ‘fluid milk in November totaled 6,351,603 quarts, a decrease of 0.7 per cent from the daily average of. 6,397,682 quarts in ‘November last year, the Milk Industry ‘Foundation announced to-
27
WINTON PLAN GIVEN INPETUS
Prudent Investment’ Theory Included in Bill on Senate Calendar.
By DANIEL KIDNEY Times Staff Writer
WASHINGTON, Dec. 27.— Conferences . of utility magnates with President Roose-. velt have given impetus to Senator Minton’s plan to: make “prudent investment” the main factor in utility rate
making.
Senator Minton hes a measure carrying out this requirement now pending on the Senate calendar. It was favorably reported by the Interstate Commerce . Committee at the last session. Senator Wheeler is committee chairman and Senator Minton is a member. Following the latest of the utile _| ities conferences at the White House, President Roosevelt spent considerable time explaining that there is now considerable agreement between the Administration and the magnates regarding the “prudent investment” theory. Atten the latest conference were” dent Frank R. Phillips of the Duquesne Light Co., Pittsburgh, and President William H. Saylor of the Philadelphia Electric 0.
The first White House meetings were attended by Floyd L. Carlisle chairman of the Consolidated Edison and Niagara Hudson Power Co. and Wendell L. Willkie, Com= monwealth & Southern president. Mr. Willkie is the son of an Elwood, Ind., attorney and a member of the board of visitors of his alma mater, Indiana = University. He entered the utility field from legal connections. His White House visit was considered significant, since his companies occupy the southern field most threatened by competition from the Tennessee Valley Authority. - Shortly afier, Mr. Willkie issued a statement in which he upheld the - prudent investment base for rate making.
Senator Minton said he was glad to see the utility men takigg this stand, but he thought enactment of the plan inevitable at the coming session of Congress anyway.
The Minton measure was based on his experience as public counselor with the Indiana Public Service Commission. In his numerous rate reduction fights there he said he saw that the “reproduction new” theory of basing rates was so “shifty as to be unworkable so far as equity to the public is concerned.” The Senator pointed out that it is next to impossible to pin the utilities down in regard to “used and useful property” to be considered in the inventories, while “prudent investment” would be something of a matter of bookkeeping.
Blames Slump on Confidence And Not Lack of It
By MAX STERN Times Special Writer
WASHINGTON, Dec. 27.—“Too much confidence” on the part of American businessmen—not lack of confidence--has caused the ‘“recession,” according to Leon Henderson, WPA consultant and one of the New Deal's leading economists. Mr. Henderson prepared figures showing that 50 large manufacturing firms, whose assets range from $10,000,000 upward and total $1,330,000,000, had built up inventories by Oct. 1 of this year that were larger than at any time since the end of 1928. The total of these 50 companies’ inventories on Sept. 30, 1937, was $285,606,000. This large figure rep-
resented a gain of 44.9 per cent over
Sept. 30, 1936. These same com-=-panies held inventories of $212,471,000 on Dec. 31, 1928; their low point was on Dec. 31, 1932, when their inventories totaled $119,891,000. On June 30, 1937, their inventories totaled $236, 437,000. “It is frequently said that the slump is due entirely to a lack of confidence on the part of the business community,” Mr. Henderson said. Firm’s Purchases Cited
“How can this be true in the face of overexpanded inventories? When a corporation is uncertain about the future, it does not , buy materials, supplies and new machinery. Our figures show that the total value of inventories of 50 large companies increased Sieadily from 1932 right down to Oct. 1 of this year. : “But the most astounding thing revealed by these figures is that inventories of these 50 companies on Sept. 30, 1937, were larger than they were at the close of 1929, despite the fact that the 1929 price level : was considerably higher. “The plain truth of the matter is that business in general had too much co:afidence, and speculated in inventory buying. “Business went blindly ahead even when many storm warnings were signalling that the great mass of consumers lacked purchasing power to take their goods off the market.”
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