The Los Angeles Times from Los Angeles, California • 10

FINANCIAL FINANCIAL WEDNESDAY MORNING. JUNE 1, 1938. Mart to Start Stocks Resume With Bearish Sentiment THE MARCH OF FINANCE Excellent Showing of Certain Industries and Corporations for 1937 Presents Seeming Paradox to Reader BY WESLEY SMITH Debits of Local Bank Group Dip May Figures Down 5 Per Cent From April and Lowest fof Year Local Railway Revenues Gain i Operating Report for April Shows Jump of 91 Per Cent on 1937 Wheat Rallies to Cut Losses Sharp Early Dips on Forecast of Record Crop Mostly Regained Commodity index on Pag 13. CHICAGO, May 31. (JP) In a Hughes Views Prospect for Early Rally as Dark and Says Value of Charts Under S.E.C.

Doubtful An Alhambra reader wishes to know how to reconcile the apparent paradox of the outstanding showing of the steel industry and certain corporations for the year 1937 when conditions were so far below normal. BY GEORGE T. HUGHES Copyright, 1938, by the Korth American Kawspaper Alliance, Inc. NEW YORK, May 31. June enters with Wall Street's spirits at low ebb.

May witnessed a rally in ihe stock market, but it fell short of the top of the April recovery, and, at the close of the month, prices were on the way down again, threatening a test of the year's extreme lows and the lows of the bear market Measured by the Dow-Jones index, industrial stocks have only about ten points to go to equal that old low. El Cortez Pays Bond Interest The question came up in a discussion wuth several other retired businessmen and was passed along to this department for comment. INCONSISTENCY CITED "We were discussing the approximate time when the recession reflected itself in business generally last year in connection with the statement appearing in Friday's Times of Mr. T. M.

Girdler that the steel industry of the country had the biggest year's business in history in 1937 except 1928 and 1929 and we were unpble to understand this seeming inconsistency when our attention was called to the annual reports of the International Harvester Company wnd the Standard Oil Company of New Jersey, wherein the for mer repoits 1937 to have been the best year they ever experienced except 1928 and the latter their best year except 1928 and 1929," he writes. "Now the question if the statement? are correct how are we to reconcile such a splendid business year by these three. outstanding lines when conditions were so far below normal?" STEEL OUTPUT HEAVY Mr. Girdler mentioned the fact that the steel industry had the largest production in 1937 in its history excepting 1928 and 1929 in connection with his declaration that had steel prices been 10 per cent lower than they were in 1937 the industry's profits would have been entirely wiped out. A brief reference to 1937 developments may afford a background for understanding-what happened.

While weakness in the securities and commodities markets in the spring of 1937 was regarded as ominous by a small minority of observers, the deflation then starting did not become' pronounced in general business and industrial activity until much later in the year. It will be recalled that although statistical barometers of industrial activity failed to advance after May, manufacturing held up well into the summer. Certain consumers' lines such as textiles and shoes by then had reflected considerable recession but steel, automobile production and retail trade continued to mark up excellent records. SHARPNESS OF DECLINE Last August the Cleveland Trust Company index of bust ness activity showed that the volume of industrial production was 9.4 per cent below the com puted normal level. In the following four months it dropped by 26 points so that in December it was 35.4 per cent below normal.

In considering the effect of this decline in 1937 on corpora tion earnings, it is important to keep in mind that this downward trend, rapid and sharp as it was, was reflected only in part in the statements covering the full year. Another point to be considered is that the Impact of the decline varied greatly in various line3 as the uneven rec- Turn to rage 12, Column 7 Trading Quiet in Odd-Lot Issues WASHINGTON, May 31. Odd lot transactions on the New York Stock Exchange on May 28 consisted of purchases by customers of 54,047 shares and sales of 43,065, according to re ports to the Securities and Exchange Commission. Orders to buy numbered 2131 and orders to sell 1609. Reflecting in part the seasonal trend in business.

Los Angeles bank debits for the month of May dipped approximately 5 per cent below the preceding month to $743,677,356, according to figures released yesterday by the Los Angeles Clearinghouse As sociation. This is the lowest monthly total so far this year, and the smallest May since 1935 when May debits totaled $687,308,011. The May total represents a decline of $157,250,655, or 17 per cent, below the corresponding month of last year when debits totaled $900,928,011. This brings debits, representing the total of all check transactions, for the first five months of the current year to as compared with $4,836,013, 446 in the like period of last year, a decline of more than 17 per cent. Comparative monthly debits figures follow: Pet.

1938 193T Jin. 9S8.30M38 11.1 Feb. 752,729,820 907,184,302 17 Mar. 828,192.622 1,045.590,830 29 April 786,307,328 994,003,865 20.8 My "743.677,356 900,928.011 17 June 904.346,831 July 947.424,063 Auc 838,834.011 Sept 843,905,120 Oct. 897,757,242 Nor 813.141,051 DC 978,447,628 roui.

TTT77777TT National Figures Continue Decline WASHINGTON, May 31. Debits to individual accounts, as reported by banks in leading cities throughout the United States, for the week ended May 25, last, aggregated 000, or 9 per cent below the total reported for the preceding week and 18 per cent below the corre sponding week of last year. Aggregate debits for the 141 cities for which a separate total has been maintained since Janu ary 1919, amounted to $6.314,000,. 000, against $6,904,000,000 in the preceding week and 000 in the week of May 6, lwi, HEARST, TO DEFER DIVIDEND NEW YORK, May 31. (-Directors of Hearst Consolidated Publications, today decided to defer payment of the quarterly dividend on Class "A'' 7 per cent cumulative participating shares normally payable June 15.

"The directors believe that the resources of the company should be conserved while general business conditions continue unfavorable and in order that the company may. be in the best possible position to take advantage of improvement," an announcement said. "The earnings for the period January 1 to May 22 are estimated at $630,000 as against $2,644,000 for the same period last year," it added. "This decline is due to the shrinkage in advertising revenue experienced by newspapers generally." In a letter to Class holders the board added: "Your company has endeavored to maintain wage levels in the hope that general prosperity, in which your company would share, would thus be furthered." Black Mammoth Mine in Red Ink Operations of the Black Mammoth Consolidated Mining Company for the year ended December 31, last, resulted in a net loss of $40,621, as compared with a loss of $71,234 for the preceding year, according to figures filed yesterday with the Los Angeles Stock Exchange. LOCAL BUSINESS brisk rebound, the Chicago wheat market today virtually overcame 1 cents' tumble to fresh five- year bottom-price records.

Temporary collapse of wheat values, forcing corn, rye, oats and lard quotations all down to levels unmatched heretofore this season, followed an authoritative trade forecast that the 1938 United States wheat crop would be the largest ever known, 000,000 bushels. The previous record crop was 1,009,000,000 bushels, harvested in 1915. On the other hand, lively export buying from North America today, about 1,000,000 bushels, helped to rally the Chicago market, and so too did the fact that May delivery at Winnipeg showed 10 cents bulge in the last forty-eight hours of trading. Giving added impetus to the late recovery of prices was announcement Jugoslavia had suspended her tariff on wheat, and was permitting imports duty free. Another stimulus came from dispatches telling of torrential rains in some sections of Kansas.

Uneasiness in various quarters was also displayed over persistent notice of black rust in Illinois, Missouri and other winter crop States. Corn and oats were influenced by absence of new export buying of corn. Rye merely drifted. Provisions reflected weakness of hog values arid cottonseed oil, as well as of grains. RANGE OF PRICES CHICAGO.

May Wheat Open HlRh .71 .72 .54 .58 Low ,75. .71 .54 3 4 .52:4 Close July September December Corn July September December Oats July September December Soy bearw July October December Rye July September December .70. .54 i i .25 3 4 .26 .70 .72 .53 .25 'i .85 .80 .28 .25 1.4 .25 .2834 .26 .81 i .80 .80 .794 .794 .51 '4 .504 .50 .50 .514 .62 J53 PROVISIONS Lard Open High Low May 7.62 July 7 85 7 90 7 82 September 8 10 8.10 8 02 October 8.25 8.25 8.12 Belli May July 10.62 CASH GRAIN Close 7.62 7.82 8.05 8.12 10.82 10.62 Cash wheat, No. 5 red. 83 No.

4 hard, Corn. No. 2 mixed, 53 IT 54 Ji: No. 1 yellow. 54ir No.

5, 51; No. 1 white, 54 4 543: No. 4. 51'i. Oats.

No. 1 white. No. 4. 28 V.

Kye. no. a. 54'4. Soy beans.

No. 3 yellow. 85'i Barley, feed. 35SJ.50 nominal; maltlnt. do iv nominal.

MINNEAPOLIS MINNEAPOLIS. May 31 Wheat, close. July. September, 74Va; December. Cash, No.

1 heavy dark northern. R8'4 95; dark northern. No. 1, 84 No 2. 82.91': No.

3. fancy No. 1 hard Montana. 1 per cent protein. BB': No, 1 dark hard or No.

1 hard Montana winter. 77V79'! hard amber eurum. No. 1. No.

2. 6377; No. 3. COH74; Jfcr 1 red durum, 66M67. WINNIPEG WINNIPEG.

May 31. fP Wheat: Hlah Low Close May 871-, July .891, Octobfr 76 75 Cash wheat. No. 1 northern. 1.13',; No.

2. I.073.: No. 3. 1.00!.. Oats.

No. 2 white, No. 3. 40,, LIVERPOOL LIVERPOOL. May 31.

tm Snot wheat. No. 1 dark winter. 7s Rosafe. 7a Australian, 8a 3d.

Wheat futures eloed firm; May, 87V': July. 853a; October. BQU. FLAXSEED July Open Hlah Low Cloa Minneapolis 1.70 1.72 1.70 1.72 Duluth 1.69 1.69 1.69 1.69 September Minneapolia 1.71'4 1.72 1.70'i 1.72 Duluth 1MH 1R8'4 1.68',. 18'4 Cash: Minneapolis.

1.7191.76; Duluth, 1.69. Credit Volume in Slope Banks Up SAN FRANCISCO, May 31. (JP) Credit supplies increased in the Twelfth Federal Reserve District during last week, the Federal Reserve Bank report ed today. Treasury operations released that amount above collections. Commercial operations added another $3,200,000, but a decline of that amount in reserve bank credit extended balanced this item.

Currency demand de clined while member bank re serves rose. INDEX HIGHER Speculative sentiment is al most unanimously bearish. No encouragement is to be had from the business indexes, and no faith exists in a real reconciliation between business and the government. The railroad prob lem is as far from solution as ever, and federal competition with the utilities still threatens. First-quarter reports made uni formly unfavorable comparisons with those of a year ago and an even worse showing is predicted for the second quarter.

The rate of steel operations is back close to the low of the depression and seasonal curtailment is more likely than contra-seasonal ex pansion. DARK OUTLOOK It is a dark background. How ever, bear markets do not last forever, and, even when all in dications favor further declines, the records show that intermediate rallies come when least expected. Some time ago, a well-known Wall Street house (Eastman Dil lon Co.) published a chart of seasonal market movements, based on average prices over a twelve-month period, for the seventeen years from 1920 to 103G, inclusive. ji If the pattern shown in this chart is followed that is, if 1938 conforms to the average trend as revealed in this study stocks are due for a recovery from this point running well toward Labor Day.

There is, of course, no assurance that this year will witness anything of the kind, but it is interesting to note that, on the record, an advance is more probable than a decline from June to September. MAY MISLEADS One reason why the record may be misleading is that, for most of the period covered in this analysis, operations in the stock market were subject to no government restrictions. Short selling was permitted without interference, insiders were allowed to buy and sell as they saw fit and pools could be formed whenever the pool managers thought they saw an opportunity for profit. All that is changed now. The market is primarily an investment and not a speculative affair.

The same observation applies to whatever deductions are drawn from the lack of volume on the present decline. When speculation was active and required margins were low, the turnover increased on such weak ness as stocks have been displaying of late, but that is not the case now. In the old days, a violent break almost always was the result of a iong-drawn-out bear movement, and generally that was the culmination for the time being. Pacific Finance Dividend Voied Directors of Tacific Finance Corporation yesterday declared a dividend of 30 cents a share on the common stock for the current quarter, payable July 1, to stock of record June 15. A similar payment was made on April 1, last, covering the first quarter.

Treviously the company had been paying common dividends at the quarterly rate of 45 cents a share. th California Farm Income at Top SAN FRANCISCO, May 31. (JP) Arizona led all States in the Union with its increase in farmer incomes during 1937, new figures computed by the Federal Department of Agriculture showed today. Arizona's gain in total farm income was 29 per cent Idaho, another Pacific Slope State, made the second best gain, 25 per cent. Third place also went to the West, Texas making a gain of 23 per cent.

CALIFORNIA LEADS California held first place in value of farm products sold. Texas led the list in total farm income, which included returns from sales plus value of products used on farms added to government payments. In Texas, both government payments and value of products retained for farm use were greater than in California. The department's expanded list of products, now totaling 90, raised the figures over previous reports, and put the nation's farm income into eleven figures. The total was $10,003,000,000.

Texas accounted for California $654,170,000 end Iowa $563,021,000. TEXAS FOLLOWS California had $638,240,000 income, excluding the value of products retained for home use on the farms. Texas had and Iowa $512,963,000. Lopping oft government payments of $36,010,000 to Texas and $5,966,000 to California left cash income from marketings of for California for Texas. The latter State was No.

1 in pulling down Federal money. Iowa being second with $24,630,000 and North Dakota third with $21,209,000. Aggregate government payments for the nation increased to $366,899,000 from in 1936. That year Kansas was first with $34,718,000, Texas second with $27,204,000 and Iowa third with $25,426,000. North Dakota was well down the 1936 list with $12,379,000 and California lost in the ruck with $3,476,000.

Extra Declared by Hancock Oil Directors of the Hancock Oil Company yesterday declared an extra dividend of 20 cents a share on the Class A and common stock, both payable June 25 to stockholders of record June 10. This payment will make a total of $2 a share distributed on the common stock for the fiscal year ending June 30, next, as compared with $1.50 a share for the preceding year. On April 11, last, the company declared the regular quarterly of 25 cents and the usual quarterly extra of 20 cents, which are ray-able today. the Canal oil field in Kern coun-tyi the Continental Oil Company developed a lot of water trouble In Its K.C.L. No.

E-l. Yesterday the! water witch was being used in ten effort to locate the source of the water. In recent days th hole ha swabbed water with a scum of oil and, the conclusion was reached Turn to Tagfl 12, Column 7 Income Shrinks forfait Group WASHINGTON, May 31. WV-The (Association of American Railroads reported today that class one railroads had a net operating Income of In April, compared with $13,357,721 In April, 1937, and in April, 1930. The association said this year's operating income was at the annual rate of 0.51 per cent on Investment, compared with 2.S0 ppr cent last year and 361 per cent lit April, 1930.

New Mon Price Decline Early Losses on Light Selling of Steels Cut in Lote Buying Move Market avtragti en Pag 12. NEW YORK, May 31. (JP)-Continued gloom over the bust ness and industrial outlook, ia addition to cloudiness of Wash ington developments, served ta further depress stocks in today's market. In dealings that barely kept the ticker tape in motion, pivotal issues slipped fractions to more than 2 points in the morning. Fep'nle buying support appeared in the final hour and declines were reduced in most cases at the close.

Transfers totaled only 404,060 shares compared with 760,710 last Friday. It was the smallest full day's turnover in about a week. The Associated Press average of sixty issues yielded .3 of a point at 37.1. STEELS LEAD DIP Although far from pleasing to commission houses, the lightness of offerings brought a light cheer to analytical forces which saw in the scantiness of dealings a sign that important holdings are still intact. Steels led the forenoon retreat, as forecasts of a pickup of orders in this field were scarce.

RUBBER FIRMS Rubber futures advanced briskly in the forenoon when the London International Regulation Committee cut the allowable export quota for tne third quarter substantially. They finished well under their best levels of the day. Rubber company shares held up fairly well, but none tacked on gains, even though it was believed inventory positions would be strengthened with a firming of crude prices. Coppers were backward notwithstanding a boost in the export price of the red metal and reports that foreign consumption is at record levels. Vajues Generally Off on Bond Market NEW YORK, May 31.

(JP) The bond market generally drift-ed to lower levels under light selling today, with railroad issues pacing the declines. Resistant were issues of International Telephone Telegraph Company, which were 2 to more than 5 points higher. Buying in these was attributed to reports from London that negotiations are under way for sale of part of the company's holdings in a foreign subsidiary to British interests. Foreign governments developed a new weakness, the average of 10 issues declining .2 to 61.3, the lowest since January, 1934. Japan es were down ltt at 70 and Yokohama 6s were a point lower at 55.

Argentine issues were off similarly. United States government obligations tilted upward with advances of as much a3 632. Larger buyers, however, were reported out of the market, awaiting announcement of the terms of the June 15 Treasury financing. Prices Rule Lower on London Market LONDON, May 31. IMces declined on the stock market today following publication of unfavorable business reports and at the close the tone was heavy- Gold mining shares reacted and trading in that group slackened.

Rubber Issues advanced sharply following the announcement of a reduction in the rubber export quota while British funds and trans-Atlantic securities held steady. Foreign bonds were erratic and movements In the Industrial section were Irregular. Closing stock market averages of the London Financial Times showed Industrials oft 1.0 to 101.9 and rails down 0.4 to a new 1938 low of 53.5. The Tarls Bourse closed with a heavy tone and Industrials and International shares moved Irregularly. Rentes were off 10 to 10 higher and Bank of France issue lost 85 francs.

Suez Canal declined 320 francs while Royal Dutch was down about 40. Lockheed Unit Takes New Name Change In the name of the Air-over Company, a subsidiary of the Lockheed Aircraft Corporation, to Vega Airplane Company was announced yesterday following the election of officers for the company. Officers Include Mac Short, president; Walter P. Innos, vice-president; Cyril Chappcllct, secretary, and Robert E. Gross, treasurer.

The company, having a manufacturing plant adjoining the Lockheed plant In Burbank. was organized In August, 1937, to carry on a Lockheed development project In which two Men-asco engines are geared together to drive a single propeller. Experiments have proven successful and the compar now is engaged In producing a medium-sized cabin plane incorporating this cngini unit I steady trend in gross revenues plus a close control over operating expenses during April resulted in an expansion of more than 90 per cent in net operating revenues for Los Angeles Railway Corporation during that month when compared with the corresponding period a year ago. The company's April statement showed gross revenues from street railway and bus transportation close to the like 1936 month, totaling $1,010,320.40 against $1,046,065.48, a dip of only 3.4 per cent, or $35,745.08. At th5 same time operating expenses were down 11.3 per cent, or $96,853.95, amounting to against Depreciation was $117,694.26 against $121,145.16.

SHARP INCREASE This left net railway operating revenues of $135,323.33 as compared with $70,763.56 in April a year ago, an upturn of $64,559.77, or over 91 per cent. After all deductions including taxes and interest on funded debt a net loss of $12,353.78 resulted for April, 1938, compared with a net loss of $64,767.24 in April, 1937. For the four months ended April 30, last, the company had gross revenues of against $1,068,842.74 in the first four months of 1937, a decline of $78,133.19, or 1.9 per cent, while operating expenses were VY II 3. A trill, Jl totaling $3,079,758.34 against $3,212,901.93. Depreciation declined from $484,838.75 in the first four months of 1937 to in the latest period.

TAXES HIGHER. Taxes rose sharply an the four months' period to $323,331.61 from $263,199.96 last year and Interest on funded debt was up from $264,333.34 to $282,420.31. After all deductions a net loss of $158,915.89 was shoVn for the first four months of this year against a net loss of $154,942.97 a year ago. At April 30, last, the company's balance sheet showed current assets of $1,413,109.83 including cash of $705,068.45 against current liabilities of $891,025.47. A year earlier current assets were $1,815,225.77 including cash of $734,732.06 against current liabilities of $1,006,044.69.

At the close of April there was a profit and loss deficit of $7,419,560.96 against a deficit of $2,585,843.47 a year ago. WRITE-OFF HEAVY Reflecting the write down of the company's properties last year from $68,405,611 to the estk mated historical cost of 749, the April 30 balance sheet showed total assets of 931.05 against total assets of $70,562,307.84 on April 30, 1937. In effecting the reduction In the property account last year, the capitalization was reduced by $18,000,000, and 200,000 no par hares were issued In exchange for 200,000 shares of $100 par value. The depreciation account was also adjusted and the balance of adjustment was made by a charge against STEEL ACTIVITY CONTINUES DROP nEV YORK, May 31. (JP) Operations in the steel industry for the current week will decline 2.9 points to 26.1 per cent of ca pacity, compared with 29 per cent, last week, the American Iron and Steel Institute estimated today.

A month ago operations were at the rate of 30.7 per cent of capacity, while a year ago they were 77.4 per cent. The decline brought the steel Industry's operating rate to the lowest level since the first weoK of January. Traduction has come down from an early spring peak of 35.7 per cent. Ordinarily, steel men do not count Memorial Day as a general holiday for the Industry. However, the holiday was believed In trade circles to have emphasized the usual seasonal decline fol lowing the spring bulge.

RALLY IN FOREIGN CURRENCY UNIT SLOWS DOWN NEW YORK, May 31. Upward movement of major European currencies in terms of the dollar ran into resistance In late foreign exchange dealings tO' day, leaving most rates only nar rowly Sterling ndd of a cent Representing the first distribution to bondholders since April, 1931, directors of San Diego El Cortez Company operating the El Cortez Hotel, have ordered the payment of bond interest at the rate of per cent for the six months ended March 31, 1938, it was announced yesterday. The distribution will be made today. Sufficient funds have been de posited with the Title Insurance and Trust Company, Los Angeles, cotrustee under the trust indenture, to make the payment. PROFIT SHOWN J.

E. Benton Management Cor poration, employed by the direc tors to supervise the management of the property, stated that the profit and Joss state ment for the six months ended March 31, last, showed a profit on an accrual basis of $15,155.86 before provision for bond in-terest, depreciation and amortization. The company obtained possession of the property on November 1, 1936, subject to de linquent property taxes amount ing to $63,944.95, payable nine annual installments, plus inter est at the rate of 7 per cent per annum on the unpaid balance. Since that time the company has not -only succeeded in meeting the current tax payments and the interest on delinquent taxes, but has also reduced the bal ance due on delinquent taxes to $49,734.95. TAXES CLEARED UP The interest distribution has been possible, it was stated, even though the cash available there' for was reduced by the obliga tion to pay $11,085.03 during the past year on account of fleiin quent property taxes and interest, which tax obligation was incurred prior to the inception of the new company.

The efforts of the management have been centered on increasing the number of permanent guests in order to assure a steady flow of income from this source throughout the year to offset the fluctuations of seasonal transient business. As a result, the income from permanent guests for the month of March, 1938, amounted to $8182.68 or approxi mately 60 per cent of the total income from rooms as compared with $5637.58 or 45 per cent for March, 1937. MEAD JOHNSON PAYS EXTRA NEW YORK, May 31. Mead Johnson infant diet materials, today declared an extra dividend of 75 cents and a regular quarterly of 75 cents on the common and a regular semiannual of 35 cents on the 7 per cent preferred stock, all payable July 1 to stockholders of record June 15. International Shoe Company, 37 rents on common, July 1, June 15.

Previously 50 cents was paid quarterly. National Sugar Refining Com pany, 25 cents on common, July 1, June 7. Previously the company paid 50-cent quartoi-Ilen. General American Transportation Corporation, cenU on common, July 1, June 10. The previous payment was an extra of $2 Othtr dividanda on Tag 11, week last year, in millloni of dollars: May Way II MiyJ6 1938 193 1937 Loans and Inreat menta -Total.

Loan. Total 30.89" 1MH 1184 Commercial, Industrial and a I tl Hural loans; on ae- UltilM Othrrwlu secured and unsecured Open market paper Losna to brokers and rieaicra in securities Other loana for purchaslni or carrying aeeurl-tiea Real eit.ta loana 851 14 3.471 40 208 367 9 19) S78 13 748 887 1,158 1 113 128 i In banka. i Other loam: on securities Otherwise secured and linaecltrad Ooyernment direct obllaatlona Fully guaranteed overtime nt ob- 69 SIT 7,131 IT Jt 4- 1 131 4- 24 41 )8 Other aecurllles Reserve with Federal Rturrt banks Cash in vault Bsianrea wiih do-meatle banks Demand rfenns- naatio on. 1.38.1 241 945 40) 348 4- 68 3.338 1) 4- 813 lla Adlus'ed. 14 897 Time rlenislla 4,211 Oovernment da-posit, 518 In'er-bank dnlta-Domestic hsnSI 898 pnreian banka.

314 1811 10 1 Jtt E'i 884 a.io i OIL FIELD NEWS Loans to Business of Bank Group Continue to Decline BY HOWARD KEGLEY BUSINESS IN LOS ANGELES insaix APJtyrn inn 'V-N--v itr by YOUNO ANO I lot a i The proration committee steps off Into June today with a cheerful outlook as to the production situation this month. A rosy glow was cast over th picture yesterday when th only company operating in the Long Bearh harbor area, which had declined to Join with others in cutting to 600 barrels a day per well, was reported to have Joined the other operators and made the curtailment plan 100 per cent effective. brought the entire harbor area, including Wilmington, down to 00,000 barrels per day, from a last-week peak of 103,000 barrels. The last curtailment step taken lopped off 13,000 barrels at the harboc. Yesterday the General retrolcum Corporation completed Espee No.

3 In the Terminal zone. It flowed at a gusher rate during a brief Interval while cleaning up, but was soon cut back to 600 barrels per day. Just yhcn It had reason for-bc-Moving that lt'was on the verge of bringing In a new oil field in tha Strand area, a mll east of WASHINGTON', May 31. (JP)- Bank loans to business declined for the sixteenth 'consecutive week in the seven days ended May 25, the Federal Reserve noard reported today. Banks in 101 leading cities reported that their loans for commercial, industrial and agricultural purposes declined to $1,031,000,000.

Banks In New York City accounted for $16,000,000 of the drop and those in the Chicago district accounted for $8,000,000 of the decline. For the second week, banks reduced their holdings of direct Federal securities, the decline In the 101 cities being $57,000,000. The same banks, however, increased holdings of securities I croup gave the following mm mary of asscf and liabilities on May 25. together with changes higher at 4.91 and the franc guaranteed by the Federal Trcas-up .00 of cent at 2.77?i. ury by $21,000,000 and holdings The Swiss franc and the bclga of other securities by $17,000,000.

each trained .01 of a cent Condition statement for the Business activity in Los Angeles for the week ended May 23 advanced per cent of the 1929 level from 86.6 par cent in the preceding week. On the seasonally adjusted basis losses were shown in power production and bonk loans while goins were made in building permits, volume of telegraph business, postal receipts; bank debits, end car-loadings. The index of telephones in service remained the same. at 22.70 and 16.91, respectively, while Tiie Netherlands" guilder converteri an early gain Into a drop of .01 of a cent to 53.10. for the week and with the samaiS.B,,'.