The Brooklyn Daily Eagle from Brooklyn, New York on June 19, 1940 · Page 19
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The Brooklyn Daily Eagle from Brooklyn, New York · Page 19

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Wednesday, June 19, 1940
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I If i ' ( 1 , s 1 4 V?V 'HT j I t ? ' I ' ill - 1 I. 1 if a: I k id . . 1 i - Ic , - ' t ' " 1 nr..: -.lit::- r nr . t' AD- M M TRADE ENVOYS Japanese envoys to American nations conferred in Washington, D. C, yesterday on American-Nipponese trade relations. Left to right: Sotomatsu Kato, Japanese Minister ot Large; Kazuye Kuwajima, Japanese Wide worm pnoto Ambassador to Brazil; Kensuke Horinouchi, Japanese Ambassador to the United States; Saichiro Koshida, Japanese Minister to Mexico, and Baron Shuh Tomil, Japanese Minister to Canada. BMT DIVIDEND AWAITS REPORT BY AUDITORS Stockholders Must Then Reduce Company's Capital by Vote Owners of common stock in the Brooklyn-Manhattan Transit Corporation, whose railway and bus properties were acquired by the city in effecting transit unification, were told today that no liquidation dividend, either partial or complete, can legally be paid until the company's capital is reauced by a tockholders' vote. Oerharfl M. Dahl, chairman of the board, also declared in a statement made in response to inquiries: "The exact liquidation value is dependent upon a number of contingencies which it is not yet possible to determine, upon the estimated value of assets having no quoted market and upon market fluctuations of Jiew York City corporate stock and other securities owned by the company. "Certified accountants are at work on an audited balance sheet as of June 30, 1940, which, when completed, together with an account of the results of unification, will be submitted to the stockholders for consideration prior to the regular annual meeting on Sept. 16, 1940, or, if possible, prior to an earlier special meeting." London Trading Light but Firmer London, June 19 U.R Trading cn the London Stock Exchange today continued sharply restricted In volume but prices developed a firmer undertone. Prime Minister Churchill's belligerent speech in the House of Commons yesterday bolstered trading sentiment. Government obligations improved an din some instances were as much as a point above the minimum levels. Foreign bonds generally were steady, but Austrian 4 Vis dipped as much as 2 points. Japanese bonds lost about a point. Local support gave South African gold shares a better tone. Base metal shares were about unchanged. Industrial securities were marked up fractionally all through the list. Home rails firmed, with some provincial inquiry noted. Cut in Security Tax Urged on Congress Proposal Would Reduce Payroll Levy From Three to Two Percent A proposal to reduce the unemployment Insurance payroll tax from 3 to 2 percent with a yearly saving of over $300,-000,000 to employers was urged on Congress today by the American Association for Social Security. The proposed cut from the present annual tax of over $900000,000 would be "socially desirable for the welfare of the nation," the association said. It declared that the huge reserves now being accumulated were "not only unnecessary but were depriving the public of much-needed purchasing power, thereby increasing unemployment and militating against the very objectives of unemployment insurance." Reserves Are Large Reserves have now become so large accounting for 46 cents out of every unemployment insurance dollar collected in 1939 that liberalization of benefits would still be possible despite a tax cut, the association said. Funds now in the hands of the 51 different unemployment insurance administrations totaled $1,641,-000.000 at the end of April, which represented a gain of jl00.000.000 since the first of the year, according to the association's report. On the' basis of the 1939 payments State funds were sufficient to pay benefits for two years in New York, four years in California, five years in Illinois, seven years in New Jersey and 14 years in Wisconsin. Need Nationwide Study Up to January, 1940, the Federal Government had collected $271,400,000 as its share of the tax and spent $142,700,000 for State administration, leaving a balance of about $130,000,000 sufficient to provide for protection in any one or two States, the association said. "Congress will fall to meet its full responsibility unless it approves the Wagner resolution for a national body to study the entire problem of unemployment Insurance that the United States may evolve a socially wise, adequate1 and not too burdensome system of security against unemployment," the report added. Bishop Francis S. McConnell heads the association's board of directors which includes John .T. Flynn, Dr. Stephen S. Wise and Arthur Ballantine. Paramount Sees Of '39 Quarter Second quarter earnings of Paramount Pictures, Inc., will about equal those of the first three months this year and will be "very substantially" ahead of the June quarter of 1939, according to Barney Balaban, president. In the quarter ended last March 31 Paramount had net earnings of $1,606,000 after interest and all charges. Balaban told stockholders at their annual meeting yesterday that, while the domestic theater business is better than a year ago, the improvement in earnings largely reflects better studio operations. At present, he said, foreign revenues are running 20 percent under 1939 compared with a 35 percent decline immediately after outbreak of the war in September. Cash in consolidated and non-consolidated companies amounts to about $20,000,000, Balaban disclosed; adding that since the reorganization of the firm in 1935 more than $17,000,000 in debt has been liquidated, and an annual interest saving of $1,800,000 effected. In addition, the company has invested more than $10.000 000 in improvements and additions to its properties. Claims Timely Purchasing Is it Factor Says Buying Charts Have Jumped Sales For Several Firms Chicago, June 19 (U.B E. H. Scull, New Xork, president of a management counsel company, today told delegates at the National Retail Dry Goods Association convention tha timing in stock purchases was "the most vital" factor in profit production. In studies of unprofitable operations, he said, "we find the season's profits were destroyed by excessive markdowns where the fault could be laid directly at the door of too early or too late purchasing; in other words, poor timing." He urged the adoption of a merchandise calendar to eliminate guesswork in all but routine buying. Buying charts worked out by several organizations, he said, have resulted in increased sales, reduced slock investments, and, in some cases, profit increases. Would Weaken Trices Prof. D. J. Duncan of Northwestern University, Evanston, 111., told the group yesterday that if Germany wins the war it would mean weakening of wholesale prices in the Fall. He added, however, that American rearmament would make itself felt in price rises shortly thereafter. If Britain ' could withstand the blitzkrieg for an indefinite p?rlod he predicted wholesale prices should rise in the Fall. The convention will end tomorrow. Gen. Charles G. Dawes will speak tonight. Rails Ready To Take Role In Defense N. Y. Central Wins Special Safety Award For 16-Year Record American railroads are now ready to assume their part in the national defense program. Col. John Stillwell, president of the Ameri can Museum of Safety, said today In making the 20th annual presentation of the E. H. Harriman memorial awards to the 1939 leaders in railroad safety. 'In these mad, troubled days, when often it is difficult to find a single consolin; thought, there seems to be more than a grain of comfort in the knowledge that our American system of railway transportation is right now second to none." Stillwell said, "that nearly a third of the total railway mileage of the world is right here; and that our railroads are ready now to do their part." The Harriman Safety Award of a gold medal in Group A was presented to the south central district of the Union Pacific Railroad Co. In Group B, a silver medal was presented the Chicago, St. Paul, Minneapolis fe Omaha Railway Co. of the Northwestern system. The bronze medal awarded in Group C went to the Charleston & Western Carolina Railway Co. of the Atlantic Coast Line. Central Wins Award A special safety award was given the New York Central System for completing in 1939 a period of more than 16 years without a passenger fatality resulting from a train accident. This record was termed "the outstanding safety record of all time in the field of passenger transportation." The plan of award stipulates that the winners be determined on the basis of official records and summaries of the Interstate Commerce Commission, the railroads being ranked in their several groups according to their individual safety ratings as shown by these records. The award was founded in 1913 by the late Mrs. Mary W. Harriman in memory of her husband, Edward H. Harriman, "to stimulate a direct effort for the conservation of human life." 30 Years of Effort Samuel O. Dunn, chairman of the Simmons-Boardman Publishing Corp., and editor of Railway Age. declared at the presentation luncheon that the carriers' present record for safety "is the result of more than 30 years of constant effort." Since 1909 there has been an 87 percent reduction in passenger fatalities, in proportion to the passenger traffic, while there was a corresponding reduction of 75.5 percent in the fatalities to employes. This record was accomplished by improvement of railway operating rules and methods, by improvement of railway plants, and by educating employes and securing their cooperation, Dunn asid. BROOKLYN EAGLE, WEDNESDAY, JUNE 19, 1940 19 TODAY'S MARKET Named Transfer Agent The Marine Midland Trust Company of New York has been appointed transfer agent for 640,-000 shares of the common stock of the Continental Aviation and Engineering Corporation, Rush Box Car Order Chicago, June 19 The speed to which even modern peacetime production in this country is geared is indicated in the Pullman-Standard Car Manufacturing Company's announcement that the first of 500 new box cars purchased by the Pittsburgh & Lake Erie Railroad were delivered on the rail ready for merchandise hauling service this week, 53 work days after receipt of the order. DETROIT NOW VAST ARMAMENT MART; CITY WAGES .WAR ON 'FIFTH COLUMN' American Woolen Gels U. S. Order Boston, June 19 The American Woolen Company was awarded 1.600.000 yards of 32-ouncc overcoatings by the government at a tota lcost of $4,127,000. The company was also awarded 500,000 yards of serge and 750,000 yards of light color serge with details as to price to be announced later. Average price on this material ran around $2.50 per yard. Pacific Mills was awarded 60,000 yards of serge at total cost of $145,-400 and 375,000 yards of shirting at $556,250, a total for the two types of $701,650. Arlington Mills has been awarded approximately $3,250,000 of government uniform business, which is all that it bid for. Market Irregular In Light Trading List Makes Slight Recovery After Opening Fractionally Lower Wheat Prices Rise In Late Trading Chicago, June 19 (U.R) Improved buying interest attributed largely to mills and to a better tone in securities erased early wheat losses on the Chirago Board of Trade today and carried prices above previous closing levels. After losing as much as l'i cents in early dealings, wheat futures started a steady recovery. Continued uncertainty regarding the severity of peac terms to be imposed on France by the Axis Powers discouraged early interest and volume was light. Principal selling pressure in the early downturn was attributed to Northwestern interests. Uncertainty over the kind of peace terms Hitler and Mussolini would offer France kept the market irregular in very light trading today. After an early recession the list developed a firm tone. There was a strong feeling of caution toward the market in the street and brokers say that much of the cash buying of securities was coming from out-of-town sources where industrial activity is noted and that the war is not the sole factor in the picture. Steel shares slipped off on news that several plants were holding up production of steel ordered by the French, but U. S. Steel, which opened 1.500 shares at 53' s, off H, dropped to 52' i and later regained more than half the decline. Coppers made up early fractional de- iclines. Bonds were mixed. Cotton futures rose 2 to 5 points. Aircrafts Hold Chrysler rallied after touching 62 U. off 17. Douglas Aircraft held at the previous close and Lockheed firmed. Railroad is-sues were mixed and utilities were steady. Standard of New Jersey declined mo-e than a point. Du Pont around noon sold at 162, up 1. American Airlines sold at 62, up I. American Telephone was up a point, Dow Chemical more than 2 points and Allied Chemical 4 points. Sears Roesuck, Irigersoll-Rand and Caterpillar Tractor gained a point and more. Westinghouse Electric first preferred spurted 6 points on a few transactions. Prices continued to drift in a narrow range as the afternoon session got under way. Steel and motor leaders generally were slightly below previous closings, but the main list held irregularly higher. U. S. Steel and Bethlehem were down about point each, while Chrysler had a loss of nearly a point. Sears Roebuck was up point at 71 H in a firm group. Chemicals held early gains ranging to nearly 4 points in allied. American Airlines had a 17 point gain at 63 and Loft was up a point at 26. Rails were firm, with Union Pacific up a point at 78'-. Aviations had small losses. Utilities were mixed. Lower at OpenTiig Minor losses were noted at the opening in du Pont, Socony-Vacuum, Pennsylvania Railroad, Pullman, American Smelting, Anaconda, Woolworth, Chrysler and United Aircraft. American Airlines rose l'i to 62'4. Smaller gains were made by Loew's, New York Central, Douglas Aircraft, Lockheed, Union Pacific, Kennecott. Monsanto Chemical, Sears Roebuck and Union Carbide. Foreign dollar bonds drifted lower in slow opening dealings as investors and dealers awaited news of the Italo-German peace terms. Italian issues dropped a point or more and German loans receded fractionally. Japanese obligations also recorded small losses. Australian and Canadian obligations held steady, however. The U. S. Government list held firm on small demand. Specula- i tive rails advanced fractionally, but industrials and utilities generally were unchanged. Averages Compiled by Dow-Jones INDUSTRIALS 1940 High, 152.64; 1940 Low, 113.94 12 m. 123 20 .01 3 pm. 1 p m 123 46 t .25 11 am 123 04 .17 2 P m. 123. 7fl .55 RAILROADS 1940 High, 32.63; 1940 Low, 22.14 11 a.m. 12 m. 1pm 25.52 .11 v 25 53 .10 25 73 v.lO 2 pm. 3 om 25.75 .10 UTILITIES 1910 High, 23.36; 1940 Low, 18.25 1 p m. 20 98 T.19 11 a.m. 12 m. 20.75 .04 20 83 2 p.m. 3 pm. 20 99 20 'See latff editions for cioMnlt prices. Wheal Op?n. HiRh. Lou r-rcv C.or. July 77', 78H 764 784 771, fSept. 78 78' 76 78', 78', Dec. 78"i 794 77 4 79U Sh Corn July 614 624 61 62 614 Sept. 59 4 60'i 59 'i 604 59 Dec. 57 57 56 57T3 57 Oats July 304 3Hi 30'i 31 30 -i Sept. 29 29 284 29 294 Deo. 29 T4 30 U 294 30' a 294 Rye July 41 41; 39:' 41', 41 Sept. 43- 414 43-S 42; Dec. 45 454 43", 454 45 Lard Sept. 5.65 5.52 547 5.50 5.65 Oct. 5.75 5.72 5.65 6.70 5.75 Lamp Men Promoted D. S. Youngholm, vice president ' of the Westinghouse Electric & Manufacturing Company, today an- nounced the appointment of A. E. ! Snyder, former general sales man-; ager. as assistant general manager ; of the Westinghouse Lamp Division with headquarters in New York, j B. H. Sullivan, former manager of ' the Lamp Divisions Middle Western District with headquarters at Chicago. 111., will succeed Mr. Snyder as general sales manager, with j headquarters in New York. Other I appointments also were announced i by Mr. Youngholm. REDUCED STATE EXPENSE HELD AID TO DEFENSE Liberation of Funds For Program Would Result, Seen in Survey The New York Trust Company today recommended that State and smaller governmental units reduce their expenditures in order to release more funds for the national defense program. "The United S'ates is now embarking on the largest national defense program ever undertaken here in peacetime and the problem arises of how it can be financed,' the Summer issue of the Index, the bank's publication, said. "Since defense is a Federal problem, it is obvious that States and other governmental units can render an important contribution to the general welfare by reducing their own expenditures and thus make additional funds available to finance increased armaments." Sound Fiscal Poliry The bank survey stated that governmental expenditures now account for about 27 percent of the national income and that 80 percent of this amount is covered by taxes and the balance by deficit financing and nontax revenues. "To effect a reduction in State expenditures there must first be a determination to adopt and carry out sound fiscal policies which can be done without neglecting social services," the bulletin asserted. According to the Index, some States have succeeded in putting their affairs on a sound basis through more effective collection of taxes, the imposition of new taxes and an actual reduction in local expenditures. The Index showed that State and local debt dropped $160,000,000 at the end of 1938 from the $19,330.-000.000 outstanding in 1932. It pointed out, however, that ca-sh balances of the government bodies have increased by $1,600,000,000, so that there was an actual decrease of $1,760,000,000 in the debt during j the six-year period. Sell New Issue Pennsylvania State Water Corporation, an operating subsidiary in the American Water Works and ! Electric Company system, has sold I to several insurance companies at a premium an issue of $7,600,000 4 ' percent collateral tru-t bonds due ! 1965. to yield the corporation ap-! proximately 34 percent. Proceeds from the j-ale of these bonds will be used tn redeem as of July 19, ! 1940. all of the Dresent outstand ing first collateral trust 44 percent bonds seri?s due 1966 at their principal amount and accrued interest plus a premium of 54 percent. STEEL STAYS FRENCH WORK ON PEACE BID Industry Awaits British Assumption Of Material Orders The steel industry has "at least temporarily" suspended production of semi-finished and finished steel for France pending clarification of the situation abroad, the Iron Age magazine said today. While steel ingot production did not advance this week as much a might have been expected had work not ceased on French orders, the rate for the country gained 14 points to 87 percent, new high for the year, the magazine said. "Moreover," it added, "our own national defense program has as yet made only a dent in our steel capacity. . Although appropriations have been made by Congress and some contracts awarded, notably for naval shipbuilding, steel orders are not yet being received by the mills in large volume for such work." Cease Fabrication The magazine explained that no American manufacturer has been asked to stop production on a French order but that various complications immediately arose on France's bid for peace which caused steel companies and other manufacturers to cease fabrication of material. "The British may take over some of the orders, as they have already announced they will do in the case of airplanes and engines, but there are some products in process here which obviously cannot be shipped to France, as, ior example, airplane parts for a French manufacturer situated near Paris," the Iron Age said. "rf, as expected, the British take over most of the French contracts and add to these the additional heavy requirements that are now under discussion, there will be no immediate letdown, but probably a further gain in steel production. "The ending of the war would undoubtedly bring a sharp downturn until such time as the United States defense program gets fully under way." Commenting on domestic business, the Iron Age said that "much of the current steel business is from domestic fabricators not yet engaged in war work. "Nevertheless, tonnage on the books of the mills is expanding at a rapid rate, backlogs are being built up and deliveries are extended." The magazine's scrap composite price advanced for the tenth consecutive week to $19.92, up 75 cents. Reich Sleel Firms In S. A. Market German steel companies are now offering steel in South America at prices below United States quotations with a cash guarantee of delivery by October, the Iron Age reported today. . German plans for post-war trade re-establishment follow the acquisition of 95 percent control of the French steel industry which, with the Reich's own capacity and that of Belgium-Luxemburg, totals about 40.000.000 tons annually, the publication said. Joins Exchange Firm Benjamin Grody, formerly with Pelz & Co., has become associated with the New York Stock Exchange firm of Cohen, Simonson & Co. DIVIDENDS LAWYER? TRUST COMTAXT New York. N. Y. Seat Off $1,000 Arrangements have been made for the sale of a New York Stock Exchange seat at $39,000, off $1,000 from the previous transaction. Middleton Named Richard L. Middleton was appointed secretary and treasurer, succeeding the late Ward C. Pitkin. I Jun 1. 134". j The E'Wl of Dirertorf, ha? today derlared a resnilar quarterly dividend of 3oc. a phare on the Capital Stock of ! the Company, payable July 1. 1940. to stockholders or record as the same appear on the books of the Company at the close of business on June 22, 1940. . ALFRED E. SMITH. Chairman. igff COOPERATIVE Detroit, June 19 (U.R) A drive to establish defenses for the Detroit Industrial area against fifth column activities and huge orders to the Ford Motor Company for airplane engines spotlighted today the vast capacity of the automobile plants for the manufacture of armaments. Commenting on Gov. Luren D. Dickinson to provide defenses for Detroit on an emergency basis, an Industrial expert informed the United Press that the capacities of the automobile factories were so vast that they could fill the armaments orders of the world and still manufacture the usual number of automobiles. A survey showed that there are 157 industrial plants in Detroit and It area that could be quickly con verted in whole or part io the manufacture of armament. These range from the gigantic Ford River Rouge plant, which extends over miles, and the huge factories of General Motors down to "small" plants which employ only a few hundred men. Combat Fifth Column Governor Dickinson announced in Lansing that he might call a special session of the Legislature to appropriate $230,000 for additional State police to combat fifth column activities and for $60,000 with which to build an armory in Detroit to house an anti-aircraft regiment of the Michigan National Guard. The industrial expert said the plants, after the necessary adjust ments and tooling, could turn out on a mass production basis munitions, guns, trucks, tanks, airplanes, all types of motors, small naval craft. If there was a deep water channel to the ocean they could even manufacture destroyers and cruisers, he said. Ford received orders for 9.000 airplane motors yesterday 6,000 for the British Government and 3,000 for the United States Government. General Motors Is filling huge orders for its Allison air-cooled motor. Packard is manufacturing marine motors for the navy. These j are the ou.tstanding war orders now j being filled by the industry in the $20,000,000 of War Department contracts and the uncalculated millions of British and French orders already distributed, Attention: ' ATTORNEYS, REAL ESTATE OPERATORS, BROKERS, TEMPORARY LENDERS j Most institutions making permanent mortgage loans favor us j with their title insurance business because of the quality of our j service and financial strength. Permanent financing or refinancing is greatly facilitated where we insure the fee title or the temporary loan. If you are about to acquire property or '' negotiate a building loan you will find it a distinct advantage to consult us on your title insurance requirements. LAWYERS TITLE CORPORATION MORRIS S. TRKMAINE of NEW YORK WILLIAM D. FLANDERS Chdtrmin ot the Board ' Fretiiicnl 141 Broadway, New York Other Offices in White Plains, Brooklyn and Jamaica Tttlt Imurdnte Anywhtre in the State of Sew York and in ev Jcrtey and Connecticut CAPITAL AND SURPLUS AS OF DKC. 31, 1H9, H, 481,071 i '"', V , "'' if.:' As one oi its fundamental policies. Kings County Trust Company particularly emphasizes full cooperation with all who seek its services. Our executives meet you in a friendly atmosphere, appraise your problems carefully and counsel you with all the wisdom of their long year oi experience. Have you a trust or banking matter you would like to consult us about? We shall be glad to be of service. . . CAPITAL $500,000 SURPLUS $6,000,000 KINGS COUNTY TRUST CO. 342 FULTON ST. (in the Heart of the Boro Hall District) Member Fctlertil Deposit Insurance Corp. I 7 J L BROOKIVN i BANK I I FOR 4baookivi i J-' . t ' , ' 1 i i 1i o

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