Chicago Tribune from Chicago, Illinois • 31

Commerce I 7c FIL ce .5 ORIATIIsr Ape VC4TJEL TJEL -pp TT) A OA 1 (IRA )I( 31 FRIDAY. OCTOBER 26. 1934. IIIMMINIME II I Location of Housing Project U. S.

SECOND HOUSIRG PROJECT HERE GEN. MOTORS' NET LOVIER IN THIRD QUARTER United States Postal Savings Deposits Are No Longer Increasing Postal Savings Deposits in the United States TWENTY BILLION CREDIT IS IDLE, BANKERS SAY 1 eats 1-- LI 1I 1 PARK 57-al STREET 'ye- s- SQUARE. 11 .7, .58 WI ST REE 11-I a cx iiiiii al itt 1 PLACE )f- 1:::::::1...,..: i PERSHI I NG ROAD I tt. a 1929 1930 1931 1932 1933 1934 (IN MILLIONS OF DOLLARS) 54 165 278 666 943 1.201 55 170 303 705 1.113 1.200 54 171 325 743 1,179 1,197 58 181 373 829 1,177 1.197 60 190 470 857 1,181 1,193 64 245 605 901 1.209 1929 1930 1931 1932 1933 1934 IONS OF DOLLARS) 154 (IN MILLIONS 278 666 943 1.201 1 55 170 303 705 1,113 1,2 00 1 CA 171 llt 7A1 1 170 1 158 181 373 829 1,177 1197 160 190 164 245 901 1.209 i Jan. Mar.

May July Sept. Dec. Jan. Mar. July Sept.

Dec. South Side Plan to 1 Cost 7 Millions. 1 Nine Month Profit Above Year Ago. Business Men Doubt Ability to Profit. MILLION DOLLARS, 1200 1.1 0(3 1000 800 700 60.0 SOO 400 300 200 i 100 I I ,...,,,,,.,.:..,:..,..,,,..,,,...,..,..7.......

f.s,,:,,,,,s.f.,..,:.,,,,,,,:,,,,,,,,,..,...,,,,,:,,,,,.......,..,..... s'" i 2'. Map of south side section which will be site of federal housing project for colored residents. It is planned to.realign the streets included in the area. 0 1933 1934 1932 1931 1930 1921 20 NORTH DAKOTANS SMUGGLE GRAIN FROM CANADA; SENT TO JAIL I Bethlehem Steel Omits Pfd.

Dividend SOURCE: FEDERAL: RESERVE BOARD HIGHER COSTS, TAXES REDUCE NET INCOME OF CONSOLIDATED GAS Eastman Ends Plan to Shift Rail "Fl yers" Right to Work Policy Upheld by Textile Men BY AL CHASE. (Picture on back page.) Chicago's second big federal slum clearance and low cost housing project, to cost in the neighborhood ot 27,000,000, was announced yesterday, by Secretary of the Interior Ickes. head of the Public Works administration. It will occupy thirty-Ave acres bounded by 37th street, South Park way, Pershing road 39th street, Langley avenue, 28th street, and Cottage Grove avenue. It will be devoted I entirely to apartments for upward of 1,400 colored families.

Condemnation proceedings were filed yesterday before Judge Philip Sullivan in the United States District court by, Frederick Z. Marx, special attorney for the department of justice. Two thousand defendants were named; Much Land for Recreation. As in the 212,500,000 federal housinj project announced last month for 160 acres on the west side, a large part of the property to be acquired will be used for recreational, park, commu-t nity, and street purposes. Only 20 per cent of the land will be occupied with the proposed three story walkup fiat buildings.

According to F. J. C. Dresser, Chig cago administrator for the housing division of the PWA, and in charge ot all federal slum clearance projects in this city, it is hoped to get the south side group under way by next spring. A social survey will be made of the entire area at once and when data is on hand as to number and size ot families, and other information regard4 ing conditions, the size of the apart, ments will be determined.

Mr. Dres4 ser said he hopes to have the renta somewhat lower than in the west nid project. Grand Forks, N. Oct. 25.W-- Federal Idge Andrew Miller late today sentenced 20 men charged with smuggling grain into the United States from Canada.

The case of a twenty-first defendant was dismissed because he had been held in jail in default of bond since his arrest. The heaviest penalty was imposed on Thomas G. Wildish, elevator operator at Ellsberry, N. who was fined $500 for purchases of grain alleged to have been smuggled into this country without payments of duty. lie had pleaded guilty.

Eighteen others were ordered to pay fines of $50 each or serve 30 days in jail. Noel Stapleton, convicted of wool smuggling, was sentenced to serve six months in jail and pay a fine of $200. New York, Oct. General Motors corporation reported today that net earnings applicable to the common stock for the third quarter ended Sept. 30, were equivalent to 48 cents a share on the average of common shares outstanding during the period.

This compares with earnings of 71 cents a share for the third quarter of 1933. For the nine months ended Sept. 30, net amounted to $1.99 a share compared with $1.73 a year ago. Net earnings, including equities in the undivided profits or losses of subsidiary and affiliated companies for the third quarter amounted to $22,858,728, compared with $33,341,618 in the third quarter of 1933. After deducting dividends of $2,294,555 on the preferred stock, $20,564,173 remained for the common shares against $31,047,063 a year ago.

Second Quarter Figures. Net earnings in the second quarter were $40,267,090, equal after preferred dividends, to 88 cents a share on the common, compared with $41,198,169 in the second quarter of 1933, equal to 90 cents a share. For the first nine months of 1934, net earnings amounted to $92,445,341, compared with $81,409,794 for the first nine months of 1933. After deducting dividends of $6,883,665 on the pre. ferred stock, there remained 676 available for the common shares compared with $74,525,504 in 1933.

Cash, United States government and other marketable securities on Sept. 30 amounted to $207,963,581, compared with $177,303,966 Dec. 31, 1933, and $232,566,172 Sept. 30, 1933. Net working capital amounted to $291,842,794, compared with $243,832,896 at the end of 1933, and $285,292,313 a year ago.

Net Sales Increase. Net sales, excluding interdivisional transactions, for the third quarter amounted to $209,986,666, compared with $178,967.035 for the third quarter of last year. Sales for the nine months amounted to $718,517,819, compared with $490,921,509 for the corresponding period of 1933. During the third quarter General Motors dealers in the United States delivered to consumers 259,149 cars and trucks, compared with 245,128 in the corresponding quarter of 1933, a gain of 14,021 units, or 5.7 per cent. Washington, D.

Oct. B. Eastman, federal coordinator of transportation, flatly rejected this afternoon a proposal by the Louisville and Nashville railroad to stop the interchanging of passenger train equipment of the Chicago and Eastern Illinois railway in the fast trains to the south at Evansville, next Saturday and substitute equipment of the New York Central's "Big Four" route. The plan, he said, would result in unnecessary duplication of services and facilities and the elimination of a route now existing without the consent of all participating lines, and will unduly impair the net earnings of the C. E.

I. and will result in wastes and preventable expense," An appeal may be carried to the interstate commerce commission for review, and this, 1Ir. Eastman stated, he will "not oppose, but on the contrary, will favor." New York, Oct. 25.ESpeciallThe Bethlehem Steel corporation today reported a net loss for the third quarter of $2,400,126 after taxes and charges. This compared with a net profit of $3,441,642 in the June quarter this year.

In the September quarter of last year the net loss was $283,097. In view of these figures the failure of directors to declare a dividend on the preferred stock caused no surprise. On Oct. 1 the board declared a dividend on the preferred of $1.75 a share, which was the first payment since July, 1932. Accumulated dividends now amount to a share.

Total income for the three months ended Sept. 30, before depreciation, depletion, or interest, amounted to $2,662,202, against $8,738,463 in the previous quarter and $4,879,146 in the like period of 1933. For the nine months ended Sept. 30 net profit amounted to $139,472, or 15 cents per share of preferred, against a net loss of $9,365,394 in the corresponding part of 1933. The value cf orders on hand at the end of September was $58,476,986, compared with $70,436,890 at the end of June and $72,155,458 at the end of September, 1933.

Operations averaged 22.8 per cent of capacity during the third quarter, compared with 51.8 per cent during the spring quarter and 40.8 per cent during the summer period last year. Current operations were placed at 26 per cent of capacity. President Eugene G. Grace, following the directors' meeting, said he had heard no discussions of wage cuts. The federal housing program, he added, bad not yet been felt in the steel business, but this demand would also New York, Oct.

Consolidated Gas company of New York and affiliated companies reports for the third quarter of 1934 net income of $3,412,178 after all charges and dividends on preferred stocks of affiliates held by the public, equivalent to about 7 cents a share on the parent company's common stock after allowing for the regular dividend on its own preferred shares. This compares with net income of $6,611,850, or 34 cents a share in the third quarter of 1933. Although operating revenues of $48, 987,071 were $1,302,733 greater than in the third quarter of 1933, the Consolidated System paid $3,173.425 more for operating expenses and allowed 672,184 more for taxes, including provision for federal taxes. The figures shown for operating revenues are exclusive of set up as a reserve for the 6 per cent reduction in rates ordered by the pub. lic service commission to become effective as of Sept.

1, 1933, the validity of which is being contested in the courts. Similarly operating expenses and taxes reported are exclusive of $415,177 uncollectible bills and taxes applicable to revenues set up as a rate reserve. The difference between this reserve and the offsetting item for taxes and uncollectibles is equivalent to 11 cents a share on Consolidated Gas common stock. come In miscellaneous products as most of the planned houses will be small. He saw no signs of an increase in shipbuilding.

Operations in the third quarter, he pointed out, were only about one-half the 52 per cent rate of the second three months of the year. He said prices appeared to be holding reasonably well, and were fairly well stabilized, but he had no assurance as to future trends. There has been a pickup lately in miscellaneous buying, Ile stated, and be did not believe customers had much of the steel which they stocked last spring. C. R.

Smith Elected Head of American Airlines C. R. Smith has been elected president of American Airlines to succeed Lester D. Seymour, resigned, it was announced yesterday. Smith had been vice president in charge of the southern division of the company.

No Schools in Area. Unlike the west side the proposed south side location contains no schools, only two small church editIcen although several congregations hold services in houses and stores and no public or semi-public buildings or factories. The buildings are mostly two and three story brick structures, with only a few wooden homes, all of them old, and a few large apartment buildings. One large structure at 3751 South Park way has sixty suites two, three, four, and five rooms. The site contains one small playground, Madden park, under the control of the south park commissioners.

Continued on page 33, column 6. BY HOWARD WOOD. Chicago Tribune Press Service. Washington, D. Oct.

25.Specia1JTwenty billion dollars of available credit lies idle in the banks of the United States because business men in general are doubtful of the possibilities of using borrowed funds profitably, the economic policy comMission of the American Bankers' asmeociation reported today. The report constitutes an annual review of the conditions of banking and credit in the United States and is made by a group of experts headed by Leonard P. Ayres, vice president of the Cleveland Trust company. It is a broad analysis of the whole banking situation. The failure of bank loans to expand despite the fact that there is so much idle money available, the bankers pointed out, is not due to the unwillingness of bankers to lend, but to the disinclination of business men to borrow, and this disinclination to borrow arises from the fear that if they do borrow and expand they will not be able to make the necessary profit on the borrowed funds.

Excess Reserves 2 Billions. Hence, say the A. B. A. economists, there has piled up in the banks in the form of excess reserves two billion dollars of funds going begging for Jack of takers.

This amount, they estimate, would form a basis sufficiently large to support loans of ten times two billion dollars. This is in addition to the five billion dollars of additional funds which the banks have lent the federal government since 1929. No mention was made in the report about President Roosevelt's appeal last night that the bankers renew their confidence in the people of this country and cooperate with the administration by financing its recovery program. Coming on the heels of the President's speech, however, it is interpreted as the bankers' explanation of what is holding things up. "The initiative," the report states, "must be that of the business man.

It cannot be that of the banker. The developments of this period have conclusively demonstrated that credit availability can facilitate enterprise, but cannot create it. Unless, and until productive business expansion takes place on a large scale the federal government must remain the most important customer of the banks." Explain Restricted Credit. The bankers state that they do not attempt in this report to analyze the "many factors which appear to make business men in general doubtful of the possibilities of using borrowed funds profitably," but they point to Iwo chief reasons for the prevailing restricted activity of the banking businessstagnation in privately financed building construction and the decline 111 the volume of new corporate financing. The reason for the lack of building aonstruction, they assert, is that the costs of new building are too high.

"Building costs," the report states, have recently advanced almost to the high levels of 1929. Meanwhile, prevailing rents are only about two-thirds as high as in the prosperity period, and this disparity seems likeiy to prevail as long as many distressed properties continue to over-bang the real estate markets in most of our cities." New corporate financing has dropped almost 97 per cent since 1925, the report continues. Offerings of stocks. bonds and other securities totaled 300 millions a month in 1925, 700 millions a month in 1929, 13 millions a month In 1933 and 17 millions a month the first seven months of 1934. Bank Credit Under 1931.

There can be little doubt," the report states, that this great shrinksge constitutes the most seriously important development of the entire depression, not merely so far as banking is concerned, but in its relationship to our entire national economy." Despite the fact that the bottom of the depression as measured by the volume of industrial production (lccurrel in the summer of 1932, the report states, the volume of commercial loans by city banks is now actually 16 per cent lower now than it was at that time. The economic policy commission points to the difficulties encountered by the Reconstruction Finance corporation and the Federal Reserve banks in trying to get borrowers to take their industrial loans as proof of contention that the employment of bank credit depends not only upon Its availability but also and primarily upon the ability and willingness of business men to borrow. Boston, Oct. textile manufacturers of the north and south joined today in a statement of relationship and invited the other major industries of the country to follow. A ten point platform.

adopted but not made public by the American Cotton Manufacturers association in the south a week ago, was ratified here by the 80th annual meeting of the National Association of Cotton Manufacturers, the northern employers' organization. its adoption was described by Russell T. Fisher, secretary of the national association, as the first platform of principles ever reached by the two branches of the industry. For Benefit of All It is a move directed toward cooperation between employers and ern-ploys to the mutual benefit of both and to the best interests of the public," he said. The platform declared that neither membership nor non-membership in a labor organization shall interfere with a man's free right to work," while another plank expressed opposition to law by force or edict." The industrial codes, now law," it said, should be changed only by the deflnitly prescribed and orderly procedure now available and no other method should be recognized." It asserted that the right of a man or woman to continue at work was as fundamental as the right to strike," the minority groups of employs must be permitted freedom in negotiation with employers; that strikes or lockouts should be illegal when they are designed to coerce the government, either directly or indirectly, by inflicting hardship on the community," and expressed the belief that representatives of organized la bor ought to be compelled to have definite legal responsibility." Mechanization question.

Another point, repeatedly raised by union spokesmen in the past, the in. creasing mechanization of the industry, was met inferentially by two points in the platform. One read: The cotton textile industry, if it is to survive, must avail itself of the developments of science and invention. The application and operation of these developments depend on varying conditions requiring, various programs of operation in individual mills." The other was: The duty of management to conduct the business for which it is responsible. should not be obstructed by forcing a surrender of its proper functions to the government or emp1oy6 organizations.

Otherwise industry is deprived of that confidence which is absolutely necessary before a return to a more normal prosperity is possible." Tesis POWer of Coi.alinator. The rase is regarded with extreme interest as it involves a basic power of the coiirdinator to prevent duplications and unnecessary expense. The C. E. I.

received first notice of the proposed change through a letter from the L. N. In September. The C. E.

a comparatively small road" now in receivership, protested and Coordinator Eastman referred the matter to three regional coordinators. They held hearings and proposed that the two principal mail carrying trains continue to be operated over the C. E. I. and the crack passenger trains be switched to the Eig Four route.

However, eventually the matter came back to 3e1r. Eastman for an independent investigation. This afternoon he issued an order with an accompanying report, ing continuance of the C. E. J.

train in the Dixie Flyer and other Chicago and Florida trains operated partly by the L. N. Cites Public Interest. AUTUMN TRADE BELOW NORMAL IN MIDDLE WEST I "That the public interest is 'vitally affected by such matters, particularly under present economic conditions, is demonstrated not only by the general financial weakness of the railroad industry, but by the situation of such a road as the Chicago and Eastern Illinois." Eastman said. "That road is in dire financial straits and in no condition to endure sure a further blow FIX is now rimed at it.

This blow is to be struck on Oct. 28, unless the coordinator is able to intervene. "As the Jaw stands, it is clearly the duty of the coordinator to intervene by order in this instance, in 'view of the failure of the carriers' regional coordinating committees to act, if the facts disclose that the change in service proposed by the Louisville and Nashville and the New York Central would result in unnecessary duplication of services' or other wastes and preventable, expense." Wholesale trade in the Seventh federal reserve district in the period from Aug. 15 to Sept. 15 either expanded less than normal or else declined contrary to the usual seasonal gain, according to a report made public yesterday by the Chicago Federal Reserve bank.

Hardware sales gained only 3 per cent and dry goods 4 per cent, compared with increases for the period in the 1924-'33 average of 19 and 21 per cent, respectively. Grocery sales were 3 per cent less than in August, drug sales 2 per cent, and electrical supply sales 4 per cent, while averages for the period show increases of 5, 4, and 3 per cent. Department store trade in the district showed a. somewhat less than seasonal gain over August, but the increase equaled that shown a year ago. An increase of 9 per cent in sales during September over a year ago compared with a rise of 6 per cent in August over a year before.

Output of automobiles in September was 123,909. a drop of 32 per cent from August, and compared 'with 367 imits in September, last year. Truck production during the, month amounted to 44,963 vehicles, or 12 per cent less than in the preceding month but 31 per cent above September, 1933. Distribution of automobiles in the Seventh district continued to shrink in September, with sales to dealers and users falling considerably below those of August. The number of new cars sold at wholesale in September was 21.7 per cent below August and .01 per cent below a year ago.

The Inumber of new cars sold by dealers was 19G per cent below the preceding month and 15.3 per cent under September, last year. BROKERS CLOSE BOOKS ON HOLC BOND OFFERING Monroe Street between Clark and La Salle It Organized as N. W. Harris Co. 1882 Incorporated 1907 Harris Trust Building, Chicago Telephone State 8200 1.

i ii. 0 .:2 4 1 $:, 1 tll r. i i :1 ittat.4:!-,-- 1 i' ik.X.:4341,4 rAi. '''0 1, :4:::::::: o. 11 4111sir-- 7 1 .444 4' 1-, i- r- :4 1t )i'' 'lit' Ai.i?:;:' i'' itPti I aktk' clig.

i.4..: i Slik 4 As Iv: 4.4. :,3,:. 4.. ..1,) :ili.w:::::.:-:::i: :..3: 2'. EY- 4.04;,,,,-.7,,,.., ,1.

4, 0: ,1 ,28 0, 1 1. 3 77t ii 4.: 4i ,:,7, 4 4 c. ss. 30' tkg: if; $: If .::4 11.W 4j: ,80 Monroe Street between Clark and La Salle A Harris Trust and Savings Bank Building, Chicago Organized as Harris iws W. Trust Building, Co.

1882 Incorporated 1907 Telephone State 8 200 DOLLAR HIGHER AGAINST FRANC AND STERLING New York, Oct. 25.Special.The dollar improved today against the British pound and the French franc. The pound lost 11A. cents to close at $4.971, while francs were 14 point lower at 6.6014 cents. Other foreign gold currencies were steady.

At the closing price for francs the dollar was valued at a premium of .49 of a cent over par, compared with .47 of a cent on Wednesday and with a discount of .33 of a cent a month ago. Based on the old par of the franc, the value of the dollar was 591 cents, compared with 59.34 cents yesterday. Canadian dollars eased 1,41 cent to $1-01. The Belgian belga gained a point to close at 23.4 cents while Swiss francs were a point lower at 32.66 cents. The German mark was unchanged at 40.32 cents.

the Italian lira at 8.58 cents, and the Dutch guilder at 67.78 cents. The price of gold in London cazed 4 pence to 139 shillings 6 pence a fine ounce, equivalent to $34.79 based on the opening of sterling in London at $4.98 13-16. Bars valued at $1,057,482 were traded. All the $50,000,000 of Home Owners Loan corporation 3 per cent bonds offered for sale to the public on Monday have been disposed of and books have been closed to further sales, according to an announcement made yesterday by Field, Glore managers for the selling group. it was stated that orders substantially in excess of the $50,000,000 of bonds offered were received by the close of business on Wednesday.

The bankers issued the following statement in connection with their handling of the transaction. This is the first time that investment bankers have had the opportunity to use their widespread facilities to distribute this type of security. More than 1,000 dealers and 10,000 salesmen have been doing an educational work. Many hundreds of small investorS, pension funds, trust funds and small institutions have for the first time placed a portion of their funds in government invested bonds. The operation has been far more successful than even the most optimistic expected and will undoubtedly aid the entire government market." TRAYLOR HONORED IN RESOLUTION OF BANKER ASSOCIATION ENGEL SUCCEEDS MILNOR AS GRAIN CO-OP MANAGER William C.

Engel has been elected vice president and general manager of the Farmers' National Grain corporation to succeed George S. Milnor, resigned, C. E. Huff, president of the cooperative, announced last night. Engel has been an executive of the corporation since 1930 and has had charge recently of the handling and merchandising of the cooperatively marketed grain.

Engel has been in the grain business most of his life, the Huff announcement said. In 1917 he was identified with the United States Food Administration Grain corporation and left that post to join the army. After the war he joined the J. IL Teasdale Commission company of St. Louis and served in turn as vice president and president.

ii Chicago Tribune Prezio Service. Washington, D. Oct. 25.Specia1JThe American Bankers' association today paid tribute to the memory of the late Melvin A. Traylor, president of the First National Bank of Chicago and a past president of the association.

The resolution follows: "Melvin Alvah Traylor died on Feb. 14, 1934. He was a past president of the Anierican Bankers association and he stood for oll that was best in his profession. He was the beloved friend of every member of the great American Bankers associationa wise counselor. "He was sought for advice by many of his large number of acquaintances and denied himself to nobody.

He was what all men admirea brave warrior for what be thought was fundamentally true. We may set up Ills career as a pattern for what an han)ier should be." WE WILL BUY WEST PARK BONDS $10011 and $100 Denominations CICERO TAX WARRANTS 1931.1932-1933 J. P. O'ROURKE COMPANY. FIND WHOLESALE PRICES DECLINE FORFOURTHWEEK Washington, D.

Oct. slight drop in wholesale commodity prices for the week ended Oct. 20 N'as reported today by the labor depart. ment. The department's Index for the week stood at 76.2 per cent of the 1926 level, compared with 76.4 the previous week and 59.6 the week ended March 4, 1933.

The drop was the fourth In as many weeks. Food prices were an exception, Hs. ing from 74.8 the previous yveek to 74.9. Commission Orders Executed in All Markets HORNELOWER Sc WEEKS Establishe4 1888 39 South La Salle Street CHICAGO TAX WARRANTS MUNICIPAL BONDS Board of Trade BItig. Wabash 9108 I.