Chicago Tribune from Chicago, Illinois • 31

I IFflEasiiKioo womn'S WEDNESDAY, APRIL 15, 1942. 31 CRT ATF ST 9 YEAR HOG PRICE RECORD HIT (I. S. FIRM'S Stock Price Average Slumps to Lowest Level Since 1933 EASTMAN, i'JPC CLASH ON NEEDS North Western System Nets 3 Millions in '41 UTILITY IS TOLD TO CUT LINKS WITH 56 UNITS 'l I 1 is midiiiiiiriiiiiiawiii OOLLAHS SHARE so VUL-- 140 130 ff3 l00 i 901 I I I I 1 1 I 1 I I 1 1 1939 1940 1941 1942 MlaBw tiara lw Tvaataw IY4I KRUPP PACT AS 17 A HANDICAP Senate Group Told of Metal Deal. BY CHESLY MANLY.

(Chiracs TrikBM Pre SerTfrc.l Washington. D. April 14. A department of justice representative chatged before the senate patents romm i 1 1 today that a cartel agreement between the Krupp company of Get-marj and the General Elect i company has resulted in a drastic shortage of tungsten carbide for ihe manufac-t of machine John Hrar Lewis. tooli one of the principal bottlenecks in the war production program.

TJie witness. John Henry Lewin, a peclaJ assistant attorney general in the anti trust division, testified that the justice department considers the patent pooling agreement "directly responsible for the disadvantage at hich this country finds itself in companion with its enemies in the use of tvngsten carbide and other hard metel compositions." Corporation Under Indictment. Phillip D. Reed, chairman of the boarb of the' General Electric company is head of the industry section ol tlje War Production board. The General El-ctric company and its sub-siiisHes were indicted in August, i on charges of conspiring with German interests to restrain inter state; and foreign commerce in viola tion the Sherman act, but the case has cot oeen tried.

Tungsten carbide Is one or many critical war production materials in vcived in cartel agreements between Amefican and German interests. Araotg others are the synthetic rub ber agreement between the Standard Chi company (New Jersey! and I. G. Farbenindustrie of Germany, and the aluminum and magnesium agreements between the Aluminum Com pany of America and I. G.

Farben. Backs Seizure Bill. Levin testified today in support of a bill by Sen. Homer T. Bone ID, Wasfj chairman of the patents com mittee, and senators Kooert -a oi-lette IProg, Wis.

and Joseph C. O'MaJioney ID, Wyo.J, which would authorize the President to requisition any jatent necessary to war produc New York, April 14 OP). Stock market prices today dropped to the lowest average level since April, 1933, under selling brought out by the news of Pierre Laval's return to power in the Vichy government. Unconcealed concern in official quarters over this event made Wall street uneasy and enough offerings of stock were dislodged to force the prices of most leaders down fractions to about 2 points. Altho stock exchange prices have been on the downgrade for several months the average had not until today penetrated the lowest range of the last four years.

Market Fairly Active. By contrast with recent sluggish sessions, the market was fairly active, but it still was relatively thin with total transfers of 556,980 shares compared with 237,710 Monday. The Associated Press 60 stock composite dropped .7 of a point at 33.4. Of an aggregate of 789 issues traded, 600 declined, 58 advanced, and 131 were unchanged. Giving the Laval affair added weight as a sentiment disturber was the suggestion that the axis resources for a spring offensive would be materially strengthened in the event the new Vichy regime permitted the Nazis to take over the French fleet.

A long list of stocks reached new lows. Included were United States Steel, Bethlehem. Republic. Crucible; Youngstown Sheet, Boeing, Douglas, Anaconda, Kennecott, Westlnghouse, New York Central, Southern Pacific, Southern Railway, and South Puerto Rico Sugar. Down a point or more were American Can, Chrysler, Sears Roebuck, Harvester.

Eastman. Philip Morris, du Pont. Santa Fe, Union Pacific, At- PRIORITIES JOB LOSS CHECKED, FEBRUARY REPORT INDICATES New Yoi 'c, April 14 Special. Unemployment In the United States declined to about 4 million persons in February, marking the first check in an upward trend which began from a low point of 461,000 last September and reached 4,100,000 in January, the national industrial conference board reported today. The February total represented a decline of 3,300,000 from the 7.300,000 unemployed in February, 1941.

"Job displacements resulting from plant conversions to armament production appear to have been checked, at least temporarily," the board reported. "Sweeping limitation and conversion orders issued by the WPB during the last month, however, may have again increased the current volume of priorities unemployment." The total number of persons employed in February, including the armed services, rose to 51,000,000 from 50.900.000 in January, and compared with 47.300.000 in February, 1941. OF RAILROADS More Cars Required, Says Carrier Chief. Washington, D. April 14 Spe cial.

Sharp differences of opinion have arisen between Joseph B. Eastman, director of defense transportation, and the War Production board over treatment of the railroads, it was disclosed today in official circles. Eastman contends that the rail roads must have more freight cars and locomotives than have been al-loted them by the WPB, to handle the ever increasing war traffic, if a serious transportation crisis is to be averted. He even sees a break down of transportation, with its disastrous consequences, as a possibility. Altho he is guarded in his public addresses on the state of the transportation system, Eastmans has not minced words as to the threat to transportation in his conferences with public officials, including mem bers of the WPB.

Complicated by Two Situations. The nation's transportation prob lem Is complicated by two situations in the making of which the railroads had no pert: 1. The shortage of rubber which threatens eventual disruption of truck and automobile operation over the highways unless there is speedy improvement. The trucks carry a substantial amount of the nation's freight and the automobile is the most important medium of passenger transportation. 2.

The shortage of shipping caused by submarine sinkings. The railroads already have had to take over a large part of the freight moved by ships in coastal and inter-coastal service. Altho transportation is e.l by Eastman to be as essential to the winning of the war as any other of the war efforts, including the manufac ture of munitions, the ODT is not represented directly on the all power ful WPB, Representatives of the ODT, including Eastman, may present the needs of transportation in arguments before the WPB, but the ODT has no part in reaching the decisions which so vitally affect the railroads. Resents WPB Power. The WPB vetoes suggestions and recommendations of Eastman and the ODT, a situation which it is said is especially irritating to Eastman.

P. A. Hollar, a representative of the ODT, in a meeting of the materials requirements committee of the WPB on April 1, emphasized the point that the executive order signed by President Roosevelt on Dec. 18, 1941, Continued on Page SS, Column 7.1 Monthly Price of Hoqs DOLLARS rvt too us. Dairy Prices.

16X0r 1937 1934 $11.85 mi 1934 Sales Slow, Hogs Dip Restricted buying by smaller packing plants without lend-lease con tracts to fill depressed the hog market 5 to 10 cents at Chicago yester day. Somewhat limited supplies cleared slowly at the lower prices. The hog average for the day declined 5 cents from the 22 year April peak reached Monday to $14.45 a hundred pounds. The top price for full carloads was 10 cents lower at $14.55. Prime steers and yearlings were in demand at top prices, the best.

selling as high as $16.75 to equal the peak April sale since 1919. Other grades of cattle moved slowly and some prices declined." Camparative Frleea. (All priren are in dollar per 10A pound. Hoc reoript. 19.00O: shipment.

100. Bulk of aalra veaterdajr J14.40B14.ftO One month aco One yrar ato 8.0IIW H.80 Top vraterdar. average. S14.45. Cattle receipt.

7.O0O: ahipment. 2.600. Bulk of valra yeaterday J1C.50&13.B0 One month a so One year. 12512.: Top yeaterday. S16.76: averare, Sheep receipt.

16.000: anipment. 1.600. Bulk of aalea yeaterday J12.5012.SA One month ago 11.75612.00 Ona year are 10. flOfe 11.00 Top yeaterday. J13.00: average, S12.H5 Receipt include 6,600 hog direct to packer.

10SalesTax, 5W age Levy Are Proposed Chiraga Tribane Preni Servlre. Washington, D. April 14. A 10 per cent retail sales tax plus a 5 per cent pay roll tax were advocated by the United States chamber of commerce be fore the house ways and means committee today. The two levies would raise near ly 10 billion dollars in fresh' revenue, it was estimated.

E. C. Alvord. The chamber. thru its finance man, Ellsworth committee chair- Alvord, suggested that these two new taxes would make possible a softening of the burden some individual Income taxes recom mended by the treasury.

It proposed income tax increases to raise only about 1 billion more than at present in comparison with the 3 billion 200 million dollars which the treasury seeks to derive from the present tax on Individuals In the brackets. Meanwhile, It was reported that the administration has dropped a for asking drastic new tax increases to curb inflation. Secretary of the Treasury Henry Morgenthau Jr. was reported to hold the belief that vol untary purchases of war bonds could be stepped up to 11 billions a year, thus absorbing excess purchasing power. Alvord recommended that the sales tax be applied to tangible personal property.

Sales to federal, state, and local governments would be exempted. The pay roll tax would be collected by the employer and over to the government. U. S. WILL DIRECT WORK OF WOMAN FARM HAND ARMY Washington, D.

April 14 (At. America's volunteer army of farmerettes will not go about the country in search of jobs, but will be told when and where they may be needed to meet local farm labor shortages, Security Administrator Paul V. Mc-Nutt said The United States Employment service will handle this problem on a local or area basis. Unofficial sources have placed the number of women workers to be needed, especially at harvest time. from 1 to 4 million, but government agencies have not yet made any esti mates.

McNutt instructed regional and state employment offices to determine how many women would be needed in various communities or areas, and when. BANK i DALrK 3IAfAMM -rl I.OU Cn re. tr. 5pPa ai ien Check, nce ch.r. "eno.it.

a vjia riA Sftflfl(F Um tUm FIELD 1 1 1 1 1 1 1 1 1 1 N. 1. 4 I 1-11 UaULLU i ifi i i i -rmm 194 IVJft llil IV JB 1 al 4 at oil an as to I I LSII I Chicago, I934-W421 DOLLARS KR 100 LIS. April, rfl 716.00 14.00 I 12.00 I 10.00 I 8.00 .00 4.00 2.00 0 J942 Refinery Turns Out Numerous War Materials The Whiting refinery of the Standard Oil company Indiana, described as the largest plant of its kind in the world, is becoming the raw material source for a large scale petroleum chemical industry produc ing such products as aviation gaso line, toluene for TNT and butadiene for synthetic rubber. This was revealed yesterday by Edward G.

Seubert, president of the company, in his annual report issued to 97,000 stockholders. The report confirmed recent stories in The Chicago -Tribune that a government-financed synthetic rubber material plant would be constructed in connec tion with the Whiting refinery. Speeds Tlane Fuel Output. "We are making every drop of 100 octane aviation gasoline that can be wrung from existing units," Seubert said. "In response to the govern ment's appeal lor expansion ol tne facilities for production of this vital gasoline we are preparing to build alkylation and butane isomerization plants at Whiting." He said the new plants projected include one at Whiting to convert ordinary naphthas into high grade base stock for aviation fuel blends.

This plant will apply a new process developed in the Whiting labora tories, which employs a catalyst to crack naphthas into fuel with higher anti-knock ratings. Seubert said the process is "of great promise in con nection with the war effort" because there is an abundant supply of naph thas. Tanker Fleet Reduced. Reflecting other war activities of the large oil enterprise, Seubert re ported that Pan-American Petroleum corporation, a subsidiary, has had only one tanker sunk by submarines, but has lost 20 per cent of its fleet thru government requisitioning. The report said that in 1941 Stand ard of Indiana and subsidiaries produced 38 million net barrels of crude from their own wells and bought additional 108 million barrels.

Crude reserves were expanded by pur chases of oil lands and the comple tion of 432 new oil wells. With its refineries working at capacity, the company broke all previous records 112,562,151 barrels of crude oil were processed, Seubert said. Sales in creased 11 per cent to a new peak. Employes to Honor Head of Chicago Mail Order Co. Employes of the Chicago Mail Order company who have worked for the firm 5 to 35 years will honor Edgar L.

Schnadig, president, at a dinner in the Hotel Sherman tomor row night marking his 25th year with the company. A Minute Man flag awarded to the employes for 97 per cent participation in the volun tary deduction plan for purchase of war saving bonds will be presented Schnadig. Honor guests will in clude Mayor Kelly. Your compensation insurance with Employers Mutual is in competent hands. 31 years experience in this field has enabled us to perfect every detail of protection, serv-ice and saving for policyholders.

Your interest invited. Proposals gladly furnished. CHICAGO 228 N. LaSall. St.

ANDov.r 2268 OPEN "usinp of ii i are no" Per. SeVi ervina iiunihi. "7 mat hmlldlmg STATE 5200 I I 1 1 I III II III I I Iff Stockholders of numerous companies in the railroad, steel, aircraft, and air transport fields held their annual meetings in Chicago and elsewhere yesterday. At the meeting of shareholders of the North Western railroad, the annual report of R. L.

Williams, chief executive officer, was distributed, showing that the entire system, including the Chicago, St. Paul, Minneapolis and Omaha railroad had a net income of $3,209,016 in 1941, after taxes and charges. The system had a consolidated loss of $4,813,648 in 1940. As previously reported, the North Western alone had a profit of $1,460,117, against a loss of 369. Income available for fixed charges was up 59 per cent, at $17, 793.040.

against $11,224,665. Iron Ore Traffic Larger. Williams' statement said that, with business improving as a result of the arms effort, the road handled 17.7 per cent more iron ore last year than in 1940. The 1941 total iron ore traf fic was 9,950.485 tons, the largest since 1929. Freight other than iron ore increased 21.2 per cent.

Passenger traffic revenues, at 916.384. were up $1,288,080, or 11.1 per cent. M. W. Clement, president of the Pennsylvania railroad, told stock holders meeting in Philadelphia that gross operating revenues for March exceeded 60? million dollars, a gain of 28.8 per cent over the March, 1941 figure.

Freight revenues were up 25.9 per cent to $46,067,000, and passenger revenues 51 per cent to 10V4 millions. Reelect United Directors. In Chicago, stockholders of United Air Lines reelected all 12 directors. W. A.

Patterson, who with other of ficers was reelected later by the board, said in reply to a stockholder's question that as far as dividends are concerned the stock "should be of interest chiefly to those not concerned with immediate income." "We are attempting to think of our business on the basis of its long term development," Patterson said. "The company's policy is to pursue a conservative course because it is difficult to figure income and expens es over any long period." Max Epstein, chairman of the board of General American Transportation corporation, told stockholders at their meeting in New York that earnings are running ahead of a year ago and, for all of 1942, probably will be larger than in 1941. He said the company Is making munitions for the govern ment without having derived any profit so far. Erie Brailroad Meeting. Robert E.

Woodruff, president of the Erie railroad, told shareholders of the road that if and when the New Jersey tax laws are changed to ease the burden, and other conditions be come favorable, the directors will con sider payment of dividends on the common stock. Glenn L. Martin' company stock holders reelected the directors of the large aircraft manufacturing enter prise, but later the resignation of John W. Castles was accepted by the board. Castles joined the armed forces after proxy statements had been mailed.

The meeting was In Baltimore. II. M. Tillinghast, president of R. Hoe printing press maker, told stockholders in New York that indicated profit for the five months ended Feb.

28 was "well over" He said the company has been conferring with investment bankers on a plan for refunding the company's senior securities. Joseph H. Carter, president of Pittsburgh Steel company, reported at the company's meeting in Pittsburgh that the scrap shortage problem will be solved when a third new blast fur nace goes into production early in 1943. ICKES SAYS U. S.

WILL NOT SEIZE OIL INDUSTRY Washington. D. April 14 Petroleum Coordinator Harold L. Ickes assured a conference of state petroleum regulatory authorities today that the federal government had no plan to take over the oil busi ness. The conference chose as its perma nent chairman Hiram M.

Dow, New Mexico's representative on the inter state oil compact commission. Gov- Leon C. Phillips of Oklahoma, chairman of the compact commission, presided over the first session. "The meeting was an excellent oner Phillips said, "and there was a strong leellng that we can co operate." Dow said that "this organization simply brings together the states for united action with the federal gov ernment to produce, and put oil where it is needed most. We came here to find out how we can regulate things in our own states to assist the war effort." If You Control Advertising Billings either as sole owner of a small agency or principal executive of an agency and wish to cut four overhead, we have a real opportunity for you.

It is possible that our very well financed, long-established agency can reach aa arrangement with you whereby yon can keep your present profit margin without the headaches. We offer a nationally known organization, congenial surround- ingt, with offices in key cities. Please write in complete confidence, knowing that your letter will be read only by the executive head ef the agency concerned. Address 439, Trlbana North American Co. Ruling Issued.

Philadelphia, April 14 UP). Th Securities and Exchange commission today directed the billion dollar North American company to sever its relationship with 56 companies in its vast utility system. The drastic order permits North American to retain only one of Its eight major subholding companies, the 273 million dollar Union Electric Company of Missouri which in turn is limited in its holdings. Included among the companies with which North American must sever its relationship are the Detroit Edison company, with assets of 370 millions in which North American holds 19.2 per cent of the common slock, and the Pacific Gas and Electric company and its subsidiaries with. assets or 790 millions in which North American holds 32.89 per cent of the common shares.

Gets Year to Comply. North American was given a year to comply with the order to reduce its system to a single integrated utility system under the holding company act of 1935. In its order the SEC said: "We have stated and we again emphasize the fact that, under the standards of the act, difficulties of disposition have no bearing at all on whether any particular interest is retainable; and that such difficulties are pertinent only to the question when compliance with our order of divestment should be enforced. North American reference to adverse market conditions for the sale of securities have no relevancy at this time. Sale Not Always Necessary.

"It is appropriate also to point out once again that compliance with, our section 11 1 orders need not always be effected by the outright sale of properties for cash. It" seems clear that a very large part, of the divestments and dispositions necessary to comply with section 11 1 and our orders thereunder may be effectuated bv stork riivi. dends, by exchanges of portfolio se curities with the security holders of the holding comnanv. and thru thm exchange of properties between systems. It may be that these methods in practice will overshadow sales." IThe SEC, in its annual revort sued last night, indicated no easing of the utility control vroaram becauam of the war could be expected.

Ther Continued on Page S3, Column I' 8 Price of 30 industrial stocks since the war began, based upon Dow-Jones average. lantic Coast Line, and American Sugar. Lower in a heavy curb market were Lake Shore Mines, American Cyana-mid, American Gas and Electric, Glen Alden Coal, and Sherwin Williams. Dealings here were around 103,000 shares against 56,000 yesterday. CHICAGO PRICES FALL.

Prices weakened on the Chicago Stock exchange yesterday along with other markets in transactions totaling 22,000 shares. Of the 105 issues traded, 66 declined. 14 advanced, and 25 closed unchanged. United States Steel showed the biggest loss at 47, down 1. Armour Co.

was the volume leader with 1.950 shares traded. Commonwealth Edison closed off at 18 H. MINNESOTA FILM BOOKING ACT IS HELD ILLEGAL St. Paul, April 14 (At- County District Judge Albin S. Pearson today held the Minnesota motion picture block booking law unconstitu tional.

His decision, regarded one of the most far-reaching in the motion picture industry, held that the law deprives the companies of their business, property and contract rights without due process of law. The judge said the law was harsh and arbitrary, had no reasonable basis, imposed unreasonable restraints, was class legislation and violated the federal copyright law and interstate commerce law. The measure thus condemned provides: That if a distributing agency deals with an exhibitor it must offer him all its films, and that the contract with the exhibitor must provide he may reject at least 20 per cent of the films offered. No decision was made immediately as to whether an appeal would be taken from the decision restraining officials 'from enforcing the law. A D- A I i i i l- i i i tion jand issue licenses thereunder.

Lectin submitted documentary evidence to support his charge that the cartel agreement between General Electric and Krupp. over a 12 year period from 1928 to 1940, resulted in: "Monopolizing the American market; limiting American production of such hard metal composition and tools containing the same; cutting off American fen ports and exports; dividing up world markets between American and German interests by cartel agreements; permitting since 1936 the company of Essen, Germany, to decide who should become American Manufacturers; and the fixing and tnainlainlng of unconscionable and prohibitive prices and resale prices (as high as $435 a pound thruPUt the United States." Sella Cbeaolx In Germany. Levnn testified that tungsten carbide fas been produced abundantly in Oiroarsy and supplied to German at comparatively low prices. Gti man manufacturers have sold 12 times as much of the metal as American manufacturers have old in the same period. According to Lewin.

General Electric developed some processes of its own flr the manufacture of tungsten csrbirfje. but instead of using its patents independently, it entered into a cartel pooling agreement with Krupp in This agreement, he said, con templated selling the metal at $50 a pound the market price then prevailing in he United States, but General Eiectrio. exercising its power to fix pricesj eliminated or gained control ci its 'competitors, one by one. ICC RULES AUTO TRAVEL BUREAUS IN ITS PROVINCE Washington. D.

April 14 VP). The interstate Commerce commission ruled today that "share expense" uTomt-bile travel bureaus were sub- ject to federal regulation under the interstate commerce art. TheVuling held that after May surh pureaus must obtain ICC approval- of their operation in promoting interstate travel. The regulation appliel specifically operators purporting to sell travel information only. Manj' travel bureaus have been conducing regular services in bringing together automobile drivers and passengers and arranging frr on a "share expense'' batis, jhe ICC said.

The bureaus have chargfrfi fees for their services. General Eiectric First Quarter Order Top '41 h4eclaiy. N. April 14 Charley E. Wilson, president of the GenereJ Electric company, today said the company had received orders totaling S299.120.000 in the first quarter of bis year, a 16 per cent increase rer lie 8257.3R2.000 in orders for the Mime period In 1941.

ntTT'i tlj FOR GRADING AND DRAIN AGE If Enrinorr OflW. P. O. Bo 87. Itrmiit Trnn Sralml propnal will until 1 1 A.

Central War Titur 2a. 1S42. anil thm puMm-It rra4ms arxl rlrainaf Baic FlT'tir i-wl. tTur. Tnn.

Th work i in f.r tiriMo rrratinr appmiim-1T 4 tsfi nrtn rurM 'ardi ipartwn. Mnr and Hiding and 26.1 OO linear' irn S15 0O tnoii required on F.ao. Iniormauoo on applicauoa. Have Changed Conditions Affected Your Estate Planning? AS you review your estate arrangements for your immediate family and others realizing the effect of changed conditions on investments and other property three specific suggestions are offered: That flexibility.be substituted for rigidity in investment and administrative clauses. You should, of course, state your objectives clearly.

But hard and fast instructions on how to reach those objectives may quickly go out of date. That you authorize payments to be made from principal, if necessary, to meet financial emergencies and to provide adequate income for your chief beneficiaries. These objectives, no doubt, stand first and foremost in your mind. That you select the executor and trustee you consider to be most experienced and best qualified. You and your lawyer are invited to discuss the effect of changed conditions upon your estate program with officers of our Trust Department.

Such a talk will be in confidence, and implies no obligation whatever on your part. The First National Bank Chicago Trust Department 135 DEARBORN, Huniir.