The Brooklyn Daily Eagle from Brooklyn, New York • Page 38

QUOTATIONS BUSINESS BROOKLYN DAILY EAGLE FINANCIAL SECTION COMMODITIES SHIPPING NEW YORK CITY, SUNDAY, DECEMBER 2, 1934 MARKETS MARK TIME AFTER FURTHER RISE Wall Street Main Tent Side Show By EDWARD RUHKEL Utilities Deem Education Aid Misinterpreted Think F. T. C. Report Normal Trade On Way; Tempo Gets Slower No Rampant Progress Yet in Spending, but Confidence Is Stronger ROW SMOOTHED OVER Wanted: Accurate Unemployment Data; Knowledge Is Scant Much Talk and Many Differences in Alleged Totals-Lahor and Industry Interpolate Miss-ins Facts Guesses Based on 1930 BY EUGENE DU BOIS One or the realest things we know in life is unemployment. Its social evils are acknowledged; its pains have at 1930, (the day set as the census key although the fact-gathering occupied two weeks following) might answer that he was then out of work inasmuch as it is not the berry season, or he might reply 8 ill Conflict of opinion between Secretary of Interior Ickes (right), and Federal Housing Administrator Moffett (left), was smoothed over last week by President Roosevelt.

Both officials now agree that Government steps in housing will not interfere with efforts by private capital. The row went deep in that the whole question fo Government competition was opened by it, now believed settled at least temporarily. Jastman Sees Big Future For Railroads some time gripped almost every one us. But Just what do we know about unemployment statistically? Practically nothing. At least.

practically nothing that is up-to-date and takes into consideration the changes since 1930. Groundwork for Planning Yet as groundwork for intelligent planning of social insurance and emergency relief some accurate knowledge of our jobless will be not merely desirable but most essential. The basis and source of all current estimates is the Federal census of 1930, which surveyed the whole nation with a fair degree of accuracy and disclosed that in a total population of 122,775,046 as many as 2,429,062 were "out of a Job, able to work, and looking for a Job," while 758,585 were "persons having jobs but on layoff without pay, excluding those sick or voluntarily Idle." Those figures are the only ones that can be called facts. Increase Since 1930 Since then the population of the United States has increased to plus, and things like CCC, CWA and PWA have Deen intro duced as complicating factors. Unemployment estimates have been profuse and variant, according to the purposes, methods and accuracy of the organizations making them.

William Green, president of the American Federation of Labor, has announced that 10,671,000 were out of work In industry in October, as compared with 10,950,000 In Sep tember and 10,122,000 in October a year ago. Union Questionaires His estimates are based on ques- tionaire cards returned from union locals in organized trades through out the country. These cards do not take into account partial em ployment (or Its co-ordinate, partial unemployment), do not touch at all upon unorganized labor In the farming districts, in the forests, in domestic service and In the professions, and at best the A. F. of gets only a fraction Its member ship to respond.

A more accurate guess is that made by the research staff of the National Industrial Conference Board, whose estimate for Septem ber, the latest date available, is 9, 976,000 unemployed, compared with 9,799,000 in August and 9,675,000 in September, 1933. Three Elements Three elements compose that fig ure: 3,188,000 belonging to the two classes of unemployed enumerated in the census of April, 1930, 5,253,000 estimated decline in employes on payrolls since April, 1930 and estimated net increase In gain ful workers available for employ ment by reason of population growth. The National Industrial Confer ence Board uses certain indices of industrial employment, the known birth and death rates and the fair ly accurate statistics on the number of new workers reaching the age of employment or graduating from schools and colleges each month. Admits Inadequacy But the board admits that Its figures take no account of persons employed privately, working for themselves either as storekeepers, specialists, odd-Jobbers or on com missions, or those In agriculture, farming or in fisheries. These, classifications must, of necessity, re main as constants for lack of information.

The matter of "new workers" is a common pitfall for statisticians. The board estimates that there have been 1,500,000, more or less, since 1930. Recently a Columbia professor put the number at 7,000,000 by simply adding together the college and high school graduates in the four-year period. He took no account of the fact that high school graduates sometimes go to college and that college graduates sometimes go to law, business, medical and other professional schools. Replacement of Workers Further to complicate the picture Is the replacement by new workers of old workers who die, become infirm, or lose their jobs through inefficiency.

In European countries reports by trade unions and by unemployment Insurance bureaus have given a clearer indication of actualities, but the former are significant only where the majority of labor Is trade unionized, and the latter also have their limitations. Looseness of Definitions Our own census, while doing a colossal Job, suffers from looseness In the definition of its terms. Sea sonal unemployment is not properly evaluated. A berry picker ques. tloned as to his status on April 1, that he was employed as a berry picker the year around whether he was busy that day or not.

However, cases like this tend to even themselves out, and the aggregate answers are as accurate as can be obtained without z-S into a case history of each ai.a every citi zen. Answer to Plea There Is great demand for more frequent censuses, and in the matter of trade statistics, the Government has answered the plea by reducing the intervals to five years. Population counting remains at the 10-year span, and the reasons for this are not difficult to comprehend. In 1930 it took more than 100,000 investigators and checkers and statisticians to do the work. They spent almost three years, the legal limit, at it a whole year going into training of staff, distribution oi forms, and other preparations.

The actual count took two weeks and the rest of the time went to com-pilalon. Government Exerting Itself Realizing the Importance of ac curate figures, Donald Rlchberg, as executive director of the National Emergency Council, listed this problem as foremost in the NRA. A central Statistical Board was set up in Washington several months ago, and every branch of the Govern ment has been urged to exert Itself in giving its figures accuracy and meaning. Since 1930 several cities and lo cations have undertaken employ ment surveys of their own to aid in the administration of relief. These are scattered and lack uni formity, and offer no basis at all for interpolation to fit the remain der of the country.

Shift of Population Shifting population from cities to farms and vice versa has been subject of much talk and little genuine study; a complete census would tell the truth. "The trouble with unofficial esti mates is that they run alike but at different levels," says one expert enced student of the situation. Peak In March, 1933 The peak of unemployment in the United States came in March, 1933 by more or less agreement, and at that time the American Federation of Labor estimated 13,689,000, and the National Industrial Conference Board 13,175,000. Alarmists, whose words deserve little credit, went all the way up the scale to 18,000,000. The need then is for the five-year census, strict definition of terms, and greater detail In the questionnaires.

That this may become adopted depends on the attitude of the Administration and its willingness to face unbiased facts. It has, at least, taken the first steps this direction. Paper Exports For 9 Months Up Washington, Dec. 1 (IP) An In crease In exports of paper and paper products from the United States during the first 9 months of this year over the corresponding period of 1933 was reported today Dy tne Department of Commerce. Shipments for tnis year totaled $13,990,039 as against $10,200,612 last year.

The mbulk of the Increase was in newsprint and wrapping paper exports. Feeders Rebuying Corn at Terminals Chicago, Dec. 1 A grain elevator at Omaha, advised a local commission house that It sold corn at $1.10, delivered, In eastern Col orado and bought wheat at that point for 95 cents per bushel. This spread, the report added, is forcing feeders to use wheat In preference to corn, and for that reason millers In that vicinity are beginning to wonder about their future wheat supplies. CANADIAN BUSINESS RISES Ottawa, Dec.

1 Dominion Bureau of Statistics Business Index ex pressed as a percentage of base year of 1926 averaged 94.2 in first 10 months of 1934 against 78.5 In the like period of 1933, or increase of 20 percent. Time for Stock-Taking and Thinkj Driving Horns the Choice Tha Capital Hat Concerning Higb BuUdinr Wages TVA in Coon Senator Harrison's Program' I IS customary to take annua, i stock around New Year's Daj but this year Thanksgiving Da Is more appropriate, chiefly in orde to see how far the country has com since 1932, but also to Judge th road that lies ahead. Even a casus survey shows a great deal to 1 thankful for this season; a mor thorough one would probably pu mis inannsgiving Day among th most truly abundant this eountr has had, balancing things physics with things spiritual. This comln 1 New Year's Day It will probably possible to say that the leaders the nation look for a quite steadll Improving year, caution temperin me remarks, it was unnecessary be so cautious on Thursday becaus all the indications were that th long-sought unity of purpose achieve full recovery has been ob talned, and that, after several year of work to cross-purposes, effectiv team work is again employed. Ho' it will work out is, of course, nr yet certain but since it is indubit ably a matter of will and inter- there is no good reason in sight wh it snouio not yield everything ex pected of it.

This little tiff between Secretnr Ickes and Housing Administrate Moffett has been settled but its lm plications are far wider than th difference of opinion disnlave Factually, it appears to be a choic possibly a last one given to pri vate capital to get into the fray an demonstrate that it can do bette than can the Government. Capitf always has asserted Its ability to a far better Job; now it will hav to prove it, and it hasn't all th time in the world to do it. More over, the activities involved are nc only those of housing; they exten into a great manv other ftein Either capital will do the lob stimulating industry or the Gov ernment must. There is the al ternative. As far as the Ickes-Moffett argument is concerned, the view has been expressed in various quarters that it was put forth mainly for' the purpose of bringing home to capital the choice that now lies, before it.

Aside from the agitation pro -and con arising, there; seems little reason now to question that private capital will make a tremendous effort to "make good." The objectives are reemployment and lifting from the Federal Government part of Us great relief burden. in connection with the orerf housing drive, there has been muc loose talk of the "high" wages pal people in the construction Indus tries. Daily rates, of course, ar high; far higher than they ought be. The average worker, howeve does not find a year's work nor doe nis pay envelope emerge very muc latter lor tne high scale that ore vails. Now, it is verv well to that there would be more buildin if the cost came down.

But woul it? No answer but to try. Whil this savors something of a dilemmi It Is scarcely that. Provide assur ance of full-time employment or a approach to It and reception of sug gestion that labor costs be brough down undoubtedly will fall on mor receptive ears. There is little us talking it until that is done. The Tennessee Valley Authoritv competition with privately owne utilities is the courts and th first round of the battle has gon against i va.

federal Judge Grub in Birmingham started the case its road to the U. S. Sum-erne Com wnere the issues will, in any even uc iiiittuy ueciaea. Most people ar bewildered by what they have bee hearing. Flat-footed statements the extreme low cost at which powr wm dc soio appear side by side wit cogent expositions of the impos smiiity or selling It at the rate mentioned while still paying taxr ana witnout recourse to taxpayer: Now the Issue is Joined.

Methods of demonstratine a Po; Office Department surplus this yenl resulted in quite a little amusemed and not a little envy. Private bus nesses would like nothing bettH than basing; profits on nrofltab! items and treating the non-incoml items as non-existent. Senator Pat Harrison is a reall and he knows his politics. Conse quently his views are not onl worthy of respect but his predictlor in the past having coming so to iumument his present tterancf probably are prophetic. He thlnkl there will be compromise on th soldiers' bonus.

He foresees no in! crease in taxes. He expects old-ap' pensions ano something in the wb of unemployment Insurance. An he thinks there will be no monetar; inflation. rew national legislators are more influential than Senator Harrison and it is good news that nis program is essentially moderate. There will be more than enough of radical and crack- brained proposals in the coming congress, as there were in the last one.

Though some of the ideas now broached by the "con servative" administration wing seem exceedingly radical to many people, It must be remembered that there Is no present way of Slopping these tendencies: it is almost a superhuman task to keep them In control. SPOT SILVER STEADY Handy St Harman quote sllvrn New York foreign, 55 cents, un changed; domestic, 64'4 unchanged! and London, pence! unchanged Holiday Checks Advance -Staples Perplexed-1 Foreign News Disturbing-Utilities Better With the week broken by Thanksgiving Day and the unsettling influences usual to a late holiday and a succeeding week-end clearly ex- erted, the markets last week did little more than mark time. There was a show of strength at times, and in the course of the week prices moved to their best levels of the advance. But it consisted of much froth and little of the tangible. Gains in all major groups were of modest proportions, and at times the market looked tired.

The movement of prices was a triple one. Early, there were moderate general gains. Just before Thanksgiving Day, the advance flattened out a normal development. After the holiday there was decided irregularity, with considerable group strength, advances in specialties and preferred issues, but little progress in the usual leaders. Other markets were perplexed and a little disturbed.

This was particularly true of the grain and cotton markets, where several unsettling factors came into play. Wheat went rather sharply lower when the Buda-Pest conference of grain growers broke down on Argentine quota demands. Cotton similarly slipped after the holiday. Bonds turned a trifle lower. Business indicators were somewhat less positive with respect to further gains than they recently have been, in which the holiday undoubtedly played a part, and the unseasonable weather another.

For the first time in two months, retail sales showed some signs of slowing up, this being attributable to the weather factor. Manufacturing activity, on the other hand, was stepped up, though slowly. Car loadings for the preceding week were down some 23,000 cars, a less than seasonal dip, but still sharply under the corresponding week in 1933. Foreign Disturbances Disorder in the Saar and the impending plebiscite kept the foreign situation deeply unsettled last week. Charges and counter-charges from both sides of the line, contributed to it, and with little more than a month left until the vote is taken, considerable nervousness is manifested.

Japanese naval claims are also helping to keep alive a feeling of fear of developments. Reaction here is largely one of worry as to the effect On the national finances if the U. S. should be forced into a major naval competition. These two factors are acting as a brake on the more or less clearly revealed hope of business betterment here and in other parts of the world.

But returning visitors appear to believe that the underlying forces making for recovery are stronger than the surface Impulses. James D. Mooney, president of the General Motors Export Corporation, stated that a strong surge of recovery is evident all over the world. Thomas J. Watson, for the American section of the International Chamber of Commerce, has issued a call to the business leaders of 30 nations to suggest sound measures for stimulating worldwide recovery.

Utilities Decisions Much transpired last week to keep the utility situation prominently In the public eye. The Edison Electric Institute, representing about 80 percent of the nation's electric light and power Industry, ordered all necessary action be taken to test the constitutionality of the Tennessee Valley Authority. This was coincident with the news that Thomas N. McCarter, presi- dent of the Public Service Corpora tion of New Jersey, and of the Edi son Electric Institute, had retained Newton D. Baker and former Representative James M.

Beck to study the legality of the TV A project. Both lawyers reported the enter prise "palpably unconstitutional." Equally important as far as New York State is concerned was the decision of Supreme Court Justice Ellis J. Staley, Albany, who granted stays to the Bronx Gas St Electric Company and the Yonkers Electric Lieht St Power Company on rate reductions ordered by the Public Service Commission. The reductions were due to become effective Dec. 1.

In ordering the reductions the PSC proceeded under the new law enacted this year as part of the Governor Lehman's utility regulation program. Most significant of all utility developments last week, however, was the decision of Federal Judge Grubb, in Birmingham, questioning the right of the TV A to produce and sell electricity in competition with nrivate enterprise except as Incidental to other undertakings. The opinion was given in deny lng a TVA motion to dismiss an in Junction by which 14 preferred stockholders of the Alabama Power Company are seeking to restrain the company from selling Its North Alabama distribution lines to the TVA for $2,200,000. In effect, Judge Grubb's decision was that the constitution prohibits such a program as the TVA has adopted, that such a program is not a part of the act itself, and that if such were the case the act would be unconstitutional. Another significant part of Judge Grubb's ruling was that if the Federal Govern ment proceeded to engage In the utility business it must be subject to State regulation.

PAYS USUAL DIVIDEND Chickasha Cotton Oil Company declared the usual dividend of 50 cents. Similar dividends have been paid for the past 4 quarters. R. K. Wootten, president and general manager, died suddenly last night, according to wire advice received by Chicago at C.

of Makes Case Unfairly- Opposed Control Public utilities feel they have been unjustly treated by the Federal Trade Commission In making out a case for its theories and allegations propaganda activities by the companies. They think the F. T. C. misinterpreted clear statements of purpose far removed from propaganda efforts, pulled statements out their context and failed to admit the F.

T. C. report, proof that the contrary was true. Specific points of objection are that the F. T.

C. report, published last- Tuesday, read into a purely educational move, chiefly to have courses established In secondary schools similar to those concerning railroads, a deep plot to foist lec tures "favorable to utilities interests" upon these institutions. Another is that John C. Parker, chairman of the Co-operation with Educational Institutions Committee the old National Electric Light Association, and president of the Brooklyn Edison was made to recognize the doubtful propriety of the whole movement," whereas he stated as follows in the 1923 report of the committee; Whatever may be said as to the propriety of the attitude (inclusion in a general course in economics of few weeks devoted especially to public utility problems used as illus trative of general economic princi ples) it must be clearly understood that any reputable university is very jealous of what is generally known economic freedom. as we do not seek either to control or to propagandize, we as freely recog nize that a suspicion of such a de sire on our part would minimize if not destroy the opportunity of the universities to aid us In all legiti mate ways." Motives Misinterpreted Again, it is felt that while com ment is made by F.

T. c. on a campaign for molding the thought of the youth of the nation," no ret erence is made to the effort to es tablish a new department "gradu ates of which will be eagerly sought not ony by the industry but for po sitions in other educational Insti tutions wh erework in public utility problems is at present but freely carried on." Moreover, the N. E. L.

A. committee stated: "In the long run a sane mind, sound morals, and good citizenship are more essential to any Industry than knowledge of its specific problems. The commit tee feels that only such introduc tion of public utility problems into the secondary schools should be made as will develop an intelligent understanding of sportsmanship and fair play in grown-up society and will point the problems of mod. ern American government and cit izenship. For Uncontrolled Research The industry feels that Its efforts In the educational field were disinterested except to the extent that a full undersanding of both sides of all questions may be deemed self- interested.

It quotes from the 1925 report of the same Co-operation with Educational Institutions Com mittee: "There is but one way for our industry like every other ele ment in organized society to serve the needs of the schools, and through the schools, of society, in sofar as our deserts may merit. That way lies through unhampered, uncontrolled scientific research; ob Jective and based on material drawn from original sources." Stated Purpose Purpose of the Co-operation Com mittee was officially stated as: To bring to the colleges through the professors an appreciation of public utility problems In the economic and regulatory field; to assist in the work of introducing fundamental instructions in eco nomics in the engineering colleges to aid In bringing before the stu dents of arts, law and engineering specific courses in public utility problems." China Will Use Less U. S. Wheat Washington, Dec. 1 Chinese wheat import requirements for 1934-1935 are estimated by the Bureau of Agricultural Economics at approximately 2,000,000 bushels lower than last year, while flour re quirements will be about 200,000 barrels less.

wneat requirements will be ap proximately 17,778,000 bushels against 19,914,000 last year, while flour requirements are estimated at 500,000 barrels agalast 713,000 bar rels last year. Of the 1933-1934 imports the United States supplied about 53 percent of the wheat and 55 percent of the flour, It was stated. LARGER DIVIDENDS At its regular monthly meeting held Nov. 28, 1934, the board of trustees of the Mutual Life Insurance Company of New York adopted a new dividend scale for 1935. Ocn-erall yspekalng, policy holders will receive larger dividends in 1935 than In 1934.

While the exact amount to be set aside for dividends can not be determined until the end of the year, the total to be distributed under the new scale will be approx imately the same as for 1934, which was $29,249,944. BROKERS' LOANS RISE Brokers' loans in New York City In weok ended Nov. 28 totaled an increase of $4,000,000 over previous week. of More numerous evidences of con crete action to hasten the resumption of normal industrial operations, so as to provide a fuller complement of employment superseded actual gains in trade movements during the week. While there has been no diminution of the widening spread of confidence, distribution of merchandise was at a slower tempo than when November opened, despite the growing disposition of consumers toward a more liberal attitude in their spending.

Stability undoubtedly has reached firmer ground and nearly all factors are contributing to business recovery, but there still persists too much unsettlement in many directions to permit Indulgence in any rampant enthusiasm regarding an accelerated rate of progress during the remainder of the year. Consumer Demand Broadening The gains reported for retail sales week earlier were narrowed sub stantially in some parts of the country, but consumer demand still broadening, in spite of the pro longed rainy spell which prevented many buyers from making then-planned tours of the shops. In sections where lower temperatures prevailed, there was an abrupt recovery in the sales of Winter wearing apparel, but the losses of the two weeks preceding were not recovered. Allowing for the declines which were recorded in some States, retail volume for the week gained 3 to 5 percent, for the country as a whole, out was not more than 8 to 12 per cent In excess of the 1933 figures. The lack of the stimulus which good crisp buying weather would provide was most irequentiy cited as the cause of the comparatively unsatls- tactory results for the week.

Bolder Attitude The improved consumer demand commencing to penetrate into the manufacturing division, but this trend cannot be interpreted as an ndication of any striking recovery. Katner, it reveals that a bolder atti tude for the future has supplanted tne timid hesitancy which started to disappear toward the latter part oi September. That much ground has been cov ered from the lows of that period is indicated by the sixth successive weekly gain -vhich has advanced the Dun Bradstreet Business Activity Barometer to 66.0, an increase of 1.3 points, or 2.0 percent for the week When contrasted with 59.7 for the week of Sept. 5, which was the low point of the year, there has been a rise of 6.3 points, or 10.6 percent, wnue tne comparison with the cor. responding week of 1933, when the barometer stood at 61.2, showi an increase or 7.8 percent.

Indices Mount There were more UDward curves In the industrial indices this week, some of which have reached the best position this Fall. Contrary to the seasonal trend of recession, the steel industry continues to move forward, the sixth consecutive week ly gain placing the operating rate at 28.X percent of capacity, the highest reached since July 16. Alter reaching nearly a four-vear high In the week preceding, electric output exceeded that total by 0.8 percent and rose 6.1 percent above the 1933 figures, which represents tne largest percentage of eain re corded in this comparison since the second week of June. Production of bituminous coal failed to gain during the week, but tne aany average crude oil produc tion continued above the Federal Agency allowable, in spite of a drop oi Darreis. Seasonal factors kept carloadlnes under both last week's and last year's.

Both orders and shipments oi lumoer increased for the week but there was a further curtailment or production. Adverse Weather as retail trade generally shows the adverse effects of the unsea. sonably warm weather which pre vailed during most of November. the gain in total sales was smaller than for the week precedine. Pur chases of gift merchandise increased steadily, but sales of Winter goods nuctuaieu in accordance with the rapidly changing weather conditions in various parts of the countrv.

Due to me supswmg during the early part of the month, November sales showed a favorable gain over last years ngures. The almost unlnter rupted expansion in retail sales since mid-August has cleared retail ers stocks to such a degree that promotional events featuring sub stantiai price reductions are not especially numerous. Even though the comparative stability of prices at present win not contribute the inventory appreciation booked at this time last season, the more rapid rate of turnover this Fall expected to yield profits fullv as large as those recorded at the close of 1933. Thanksgiving Buying The current week's business was bolstered strongly by the demand for Thanksgiving requirement wnicn was nearly double that of last year, and by the early Christmas buying, which already has as sumed large proportions. As the Christmas shopping season will get Into full stride immediately following Thanksgiving, signs of retail expansion are multiplying, and the Interest that has been displayed during the week In such a wide variety of Items is prompting retailers to prepare for the best Christmas season in several years.

Dividend Changes More Favorable Favorable dividend changes In the current week numbered 45 compared with 33 in the previous week, according to the Standard Str.tlstics Company. Unfavorable changes numbered against 10 In the preceding week, of of to of Trade Leaders Meet to Map New Platform Between 500 and 750 Nationally Known Men to Gather at Waldorf Industry's views upon the road to recovery will be formulated this week at the largest gathering of manufacturers in years, the Congress of American Industry in con-Junction with the annual convention of the National Association of Manufacturers. Between 500 and 750 manufacturers, including nationally known leaders and representatives of virtually every division of industry, will attend the meeting Dec. 5 and 6 the Waldorf-Astoria. Presenting the Administration viewpoint will be Donald R.

Rich- berg, executive director of the Na tional Emergency Council; Secretary Roper of the Commerce Department, and Raymond Moley, who will make his most important address since retiring from the State De partment. Other speakers will be L. Bardo, president of the Na tional Association of Manufacturers; Walter J. Kohler, president of the Kohler Company, and former Gov ernor of Wisconsin; Prof. Neil Caro- thers, director of the School of Business Administration, Lehigh University; George H.

Houston, president of the Baldwin Locomo tive Works and chairman of the Durable Goods Committee; Dr. Virgil Jordan, president of the Na tional Industrial Conference Board, and W. B. Boll, president of the American Cyanamid Company. For two days prior to the Con gress of American Industry, the Na tional Industrial Council, composed several hundred national, State and local manufacturers' associa tions under the sponsorship of the National Association of Manufac turers will meet.

This gathering Dec. 3 and 4 will bring together several hundred heads of these a sociations who will analyze national problems and present their view point to the convention following, A feature of this meeting will be a luncheon session devoted to a dls cussion of government competition with private enterprise, with par tlcular emphasis upon the government operation of manufacturing plants for relief, and the Tennessee Valley project. Speaking at this meeting will be Paul S. Clapp, vice president of Consolidatd Gas and Electric Company of Columbus, Ohio, and Alfred Haake of Chicago manager of the National Furniture Manufacturers' Association. Ray Wantz of Chicago, president of the Rockford Fibre Box Container Com pany and president of the Illinois Manufacturers' Association, will pre side.

Out of these Important four-day sessions, Industry expects to bring thorough-going reflection of the manufacturing viewpoint upon na-tional problems and to draft con crete recommendation to the Ad ministration and Congress for speed ing recovery. For months special committees have been at work in series of conferences drafting Indus- try views. These recommendations have been submitted to hundreds of manufacturers' groups and individ ual industrialists and will be ratified at the Congress of American Indus try as industry's platform. Also to be considered is the report of the N. A.

Committee on the Rapidity in Changes of Conditions Constitute Present Handicap "Normal expenditures by the railroads would go far to break the back of the depression," say Joseph Eastman, Federal Coordinator of Transportation, in an article in the Dec. 1 Issue of the Railway Age dis cussing how the railroads can be used to promote recovery by contributing to a revival of the durable goods Industries. The conditions under which the railroads must furnish and charge for service have changed very radi- cally," continues Mr. Eastman's ar ticle. "Because of this change it seemed to me that the time was ripe for a comprehensive survey of railroad operation, equipment, serv-ice and controlling rate policies.

have endeavored to organize and conduct such a survey. Among other things we have shown, or ex pect to show, that it is possible to reduce costs of operation and at the same time improve service and add to traffic by utilizing motor trucks and buses in various situations to supplement, or as a substitute for, rail operation. We expect also to show that it will be possible to reduce costs and improve service still further by the utilization of new types of equip ment which are now available or in process of development. These In- elude air-conditioned light-weight passenger cars; Diesel-electric engines; gas or Diesel motors with other means of transmission and applied to smaller units; other types of improved motive power-steam, gas and electric; light weight freight cars of new design, and Interchangeable containers. sectional car bodies, or demount able truck bodies which can be transported by rail on flat cars and given store-door delivery at origin or destination by motor trucks The survey will not show that the railroads are an obsolescent form of transportation.

It will in dicate that the same thing has happened to them as has happened to many other Industries with the progress of science and invention, There has been a comparatively sudden change in conditions which has outmoded many of their ways of doing business and accelerated obsolescence in their equipment and other property. They must be ad' Justed to the new conditions. "The keen competition with other transportation agencies which has developed has had Its usual result, Invention has been greatly stimu- lated in the railroad field. More progress has been made In the past few years in the Improvement of railroad passenger service than was made in many years theretofore, am persuaded that the country is on the verge of notable improve' ments In both passenger and freight service. Future Relationship of Government to Industry, the result of weeks of study and a questionnaire submitted to 70,000 manufacturers.

With this groundwork laid, lead ers of industry hope to bring forth from this series of meetings for the first time a platform upon which all manufacturers can stand unitedly in their efforts to co-operate with the Government in restoring the na Hons economic equilibrium. RFC Collatcra Lest the RFC foreclose on Its half of the bridge in case of the default by the railroad, the agreement pro- vides that the New Haven shall have the right to substitute other col lateral, or to redeem the stock at par within 60 days after the RFC notice of converting or selling it. If the New Haven hasn't done one of those things, then the Pennsyl vania shall have the right to redeem the collateral or to deposit a suitable substitute within an additional 30 days. After that, the bridge goes to the highest bidder. is Mortgage Investors Get Half of Hell Gate Bridge $71,700,000 in Interest Put Up as One of the bulkiest pieces of collateral ever put up to back a loan is the Hell Gate Bridge, spanning the East River between the Bronx and Astoria.

It has Just been offered by the New York, New Haven Hartford Railroad as security for a $6,000,000 loan by the RFC. The bridge, which with Its 1,000 feet of length is the longest steel railway in the world, Is Included in the New Haven's one-half interest in the New York Connecting Railroad, which connects that line with the Pennsylvania system's East River tunnels. total of 1,039,318 interest checks were mailed out aggregating In amount $43,744,943. Of these, 816, 402 checks for $18,376,835 were dis tributed to certificate holders and 222,916 checks aggregating $25,368, 108 were sent to holders of whole mortgages. Interest payments for October amount in all to $4,402,510, which were remitted in 108,957 checks.

The amount of payments was almost equally divided among certificate holders and holders of whole mort- gages. A total of 18,206 checks for went to noiaers or whole mortgages ana cneck for wv.w to cermicate noiaers. Superintendent of Insurance George 8. Van Schaick reports interest payments of $71,700,000 to holders of mortgages and certificates guaranteed by the title and mortgage companies in rehabilitation since they were taken over in August, 1933. Approximately checks and drafts have been Issued in making these payments, which include figures to Oct.

31. Of the total Interest paid out, it is estimated that $28,000,000 went to the holders of guaranteed mortgage certificates and the balance to holders of wholly-owned mortgages. In the first ten month of 1934, a I.