Oakland Tribune from Oakland, California on March 10, 1935 · Page 7
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Oakland Tribune from Oakland, California · Page 7

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Sunday, March 10, 1935
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Wall Street AND FINANCIAL SECTION BUSINESS NEWS ITS ACTIVITIES =~BY QEO\GE T.HUGHES=* N K\V "iOKK, .Marvl) { ). — A start i= lu-inji inailo on corporation ; f\ refinancing and r^fundin^, of wlut-li tlirro h a «rcal deal to II be done—if conditions permit. It »u»ht to liavo a'rhrrring rf- M ferl upon sentiment in tlio natiunV fiii;inri;il ccnler, for it means | _ VOL. CXXII— OAKLAND, CALIFORNIA, SUNDAY, MARCH 10, 1935 12-A NO. 69 BEHIND "I 1 busincfs of a sort. Tho total of two plan; annmincrd I'Viday, one n-L'Mfrril with the SK(! and the other almul lo lie, run? lo >!>'i.1)00.1)0(1--in 7iif;il {lacking and ?leel bund?. A Jarge utility i?sue. in cxpe.rird to follow. Mow that thfi way Iiai* IJ'M-II made a littlr lc?° painful through Ihe roa.smiablt'iH-ss M ihe commission in simplifying requirement?, it may be that the long stalemate will he broken. With a great many callable bonds commanding premiums, the way it open for corporations to put old debts lower inierfr.H basis. ISSUES CK INKER CHARTISTS AHF. impressed by the showing on their graphs of what Jooks like a good .support area for stocks around present price levels and s few points below. There is nothing sufficiently cheering in the outlook at this juncture, however, to suggest that being formed /or a sustained upturn. The best that is currently hoped for is ;t recovery of some part of recent losses. It is to be remembered, of course 1 , that the final test of support is not lines on a chart, but selling pres- of pressure some- false impression sure. Absence times produces of strength. IN HIS SPBECH before Ihr Chamber of Commerce of the Stair of New York, .lost-ph R. Easfman coordinator of transportation, suy- Resled many reasons why 'the railroads have failed to follow plans for salvation. Some of the reasons sound rather sopliomorish; others ring true to life. The railroad industry is highly competitive, and executives may well feel, as Eastman rather flatly charged, that too much altruism in cooperative efforts may result in loss of competitive advantages. But it is difficult to believe that Eastman is entirely sincere in his belief that the "railroads have seemed more anxious to prove my staff wrong in its conclusions ant! recommendations than to find, wilh the help of our reports, ways and means of improvement." •PERHAPS THE R-AlMtOAD doctor is too well sold on his own medicine. Tl is too much to expect the railroads to swallow it without analysis and tests. One Eastern Irunklinc went rather thoroughly into a study of tho Eastman plan /or car pooling. Their account nuts found that operation of the plan would very likely produce annual savings of about $3,000,000 for the line. But there was a pretty formidable offset, /or it was estimated that the cost, of keeping the necessary detailed check upon every movement, of pooled freight cars would also run lo about $3,000,01)0 a year. "THE LACK OF USE by business of the super-abundant bank credit available" is cited by the chairman of. the Guaranty Trust Co. of New York as the chief, cause of declining bank earnings. Cause anrl effect explain the reduction in the Trust Company's dividend. In other words, it is not deposits that make profits for a bank, il is what Calvin Coolid^e called the "hiring nut of money." By Ihesame token, it is nol the existence of available credit lhat turns I Ill- wheels of hnsinesF, it is the use of that credit. The distinctimi i: simple, but there is no end of confused thinkinK that iRnort-s it. PLANS TO FORCE recovery by Increasing bank deposits have split, upon that same rock. A recent survey by the Guaranty Trust Company made the point quite clear. "It is interesting to notr," said the •urvfcy, "that the average amount of net demand deposits outstanding In this country in 192!) was only 30 per cent larger lhan the average for 1921. while, during the same period, bank debits to individual accounts rose 1.14 per cent and the rate of turnover incroasrd 79 per ci'iil. Similarly, the lowest point, reached by demand deposits during Ihr nir- rent depression was only .'W per rr-nt below the 1929 average, while the veloci y of circulation declined nearly 70 per cent f -in HIP avmiRr for thai year." THE FINANCIAL SCENE Kinanrial Kral^rnily ^U 'IVrins; Fall in Strrl IF Callrd British Trirk —Louis M. Schneider •• —' \K\V YOKK. JP.KSC H. .lone. 1 ;, chairman of thu Reconstruction Finance Cm punttio :if the opinion that anyone v.'l sees fin opportunity fo borrow o invest piofitabiy might t" do it now He even goes so far as tu sugges the buying nf securities on a mar ginal basis. He doesn't believe Ilia those playing NIC n long side will be In arUel on n t-much. don't encourage .speculation, bul don't discourage investment," an lii.s exact words. Buying stocks 01 margin, Mr. Jones, is .speculation. Wall Stm-ters ar« as kin? what he- nifian.i when IIP says yon will not he hurt much by Inventing now. Another fiiirstirm Hit Strrrl would likr to have Mr. .lonrs an- Mvrr Is "\Vhitt Is thr .liffrrcncr hrtwrrn speculating and invrsllnfr whrn inflallnn nmip.s along?" ADVEKSK On March '2 ( .l n rcsolulion will be offered in Ihn Senate ordering n break of the trade Irealy with Belgium. If successful, life of Ihe pact now in effect will cease six months later. Labor nrgani'/.alions of industries affected by this agreement hav« instigated tin; move. Those industries thai will benefit as a suit of the treaty will demand thai it remain as is. Should the dissent[ side win. other foreign nations now negotiating treaties with the United Slates will be adversely affected psychologically. PROVISIONS The success of I hp Govern in en I's "Baby Bund" sale will nol be rie- tc'niiinable for .some lime. ft is expected lhat the bonds will become popular as lime goes on. Bui unless the Government starts a lively ballyhoi) movement sales wi be slow. Thus far public participation has been disappointing. 'Saving hank officials doubt whether there wilt be, any rush to withdraw funds for llir purchase of Ihesr honrift. They say that dr- posltors want thrlr funds payable on demand. ThE.i Is not so with the baby hands. C'a.nh can only he had (111 days after purchase ifcitr. According In n postofficr bond salesman, If th« bonds are redeemed wltJiin less than onr year (he buyer dors nol rrcclvr. any Interest payment. These provisions may hold back those who- have money in .savings hanks ant! who obtain interest rvcry three month*). POSTPONED The "Coining American Boom," forecast almost six months ago by :he world-famous London ecomi- nisl. Major An gas. appears to have JIKJII inadvcM ti'iitly postponed. The ;nine may happen to the KiplingtM'- Sholton "inflation" forecast—if assistant-President Donald Hicliberi; knows what lie is talking about. HKPOKTS AKK THAT: Julius Kayser will report a nel. of tboul 30 cents a share for the first six months of Iliis year. . . - Dresser Manufacluring A is an aftractive ong pull speculation. . . . The floor covering price struclure is showing sfrenRlh. . , . Monsanto's current quarter volume of sales is well ibove that of n year ago. . . . Atch«on is being switched into Westing- louse Electric- . . . Amsterdam was recent buyer of Cerro de Pasco anrl Howe Sound. . . . Scale-down buying of Kclvinalor is rvidenf. . . . Underwood- tflliol I -Fisher preferred may he held for investment pur- [Hisir?. . . . Thah-hrr Mannfaclnrinq has a strung financial position. . . . Lnng pi ill ?iK-ctilativr buying is coming into Industrial Hayon. . . . (,'anadian interests say the outlook for Inlci national Nickel is intcrcsl- ing. . . . American Telephone & Telegraph has lost its slock market followint*. . . . Anacnnda is being MORE ENCOURAGING. Ihrrc- | sw ii,.|, r ,| i n)l , Unifi-d Aircraft.... fore, than enurinuiis rxccss reserves. J M,,i shall Kit-id's recovery will bo . The business outlook for hotiM- Air Brake is dull -a uly , r iO (Tills a share is bring il 'fur this year. . . . IVtrcil- [•jiiK'alinn js- be in;; twilchcd IVtiMlmm. . . . Talk i larjir vnlmiif of IHIM- foi ibc icrrnt siirn;:lh .... And. Uinl Texas vill not clif.litlv hotter Is the increase in bank clearances for Ihe week ended \Wdm-sday. A new high mark was made fur ih>- year and the mtal for all crnlt-rs was 20.1' pr-r rent higher lhan :t year ago. Ou!-idc New V«»ik Cn\. clearinRS \v<-n: tin; ln'avioM m nmri- than two yea^. There arr no kink^ in ilicn- nun- parirons. f»r this \oar a« \vi-ll us In-t year the week ir.rludr<l the brnvirr ?Cttlemen1s which always ticcnr in Ihe firiit week nf ihi- mnnth. M"iu-y in circiilaticin has nsrn at iho same time, jecordinR a gain which i* mmp than seasonal. Rut 1hr ^icnifiran'v of this is difficult lo deteiminr. THE WEEKLY Dim A: Brads1r«-ft j Review Is rather optimistic, hinting that "the leveling off proi-c«s op- crating in some divisions last month was nothing but a pulse in the Krn- rral uptrend, and did noi merit the interpretation of a reactionary movement." AUo noted is n "resumption of the broadening tendency which began last October, with indications lhal the peaks for the year are nol lo be reached until the third or fourth quarter." nf < Phillips than SI a :-hnn> f.i all nf l Week-end trading in Itical securities was dull and the price trend weak. Pacific Telephone common advanced to a now peak at 75 1 j. and. on the Curb. Pineapple Holding made a new hinh -H I- 1 " 1 - Sierra Pacific prcfoi ri'd inadi; a new peak at Ilfl'j for a six-point gain, Fraelionnl Metal Co. Cuts Bank Loans Dr. Otfo Summnn, cliairman of th* American Metal Co., reports the company's bank loans were re- dureri durinp IflIM to Sfi, 500.000 /rom flO.000.orin and the balance \r, wntwflblf »i option r>f the company to March 20, IBM. f By JAMES Me AM,'LI. IN NEW YORK, March fl.- -Banker admit thai the Treasury has 1herr right where It wants them. No mor conclusive evidence could be askec than the terms of the latest con version offer— 2?« per cent for 2f lo 25-year bonds, and I*B per cen for five-year notes make the /Jnan rial fratfrnity cuss under theii breath, but they'll lap them both up like good little kittens. Then wer* 1 no preliminary arguments a: to terms, either. The Treasun wasn't asking the bankers—it wa: telling them. They did hope the} would be allowed Ihe privilege o <!Xuhaiiging Fourth Liberties for th( five-year notes—but even this polacf wns denied them. The informed say Secretary MO-- genthau is perfectly safe in nffrr ing to pay cash to bondholders who don'l wish to convert. Sharps pre did the new bonds will go to a 2- poinL premium as soon as Issued In lhal situation, il would pay an; one who wants cash to converl first He would get more money by selling his new bonds lhan a simp! remittance at par for his Liberties So there won't be much of a drain on Treasury reserves. DAMPER The conversion offering makes the baby bonds look good. Mr. and Mrs. .Mm Q. Public get a largei return — 2.9 per cent — than the financial titans with their amnssec Liberties—and with a much slmrtei maturity. That would seem to spike Ihe theory that the Treasury gives the big fellows all the breaks. : next important maturity $417,IK)0.(IOfl of notes in June. Insiri- cxpecl the $5:16,000.000 of First Liberty 4Us to be called this month Tor redemption al the same time icy also look for still lower interest rates by then. Uncle Sam will save the lidy sum of $15.4:17.000 venr on the Fourth 4YAK alone if he entire issue is converted. The projected experiment with consolidated bonds having no specified maturity is indefinitely post poncd. "Why worry about maturities when you can raise money foi 25 years without baiting an eye?" STERLING TRICKS There's a decided damper on Wall trecl inflation talk since Ihe Trcas- iry announcement. Monkeying wtlh the currency might jeopardize he operation. Financial men can see no point to lhal with borrow- ng 50 easy and so cheap. New York insiders offer n new ilnnl on the depreciation of ster- ing. They get word from England hat one of the main ideas is to bol- ter commodity prices in a hurry-bus helping to offsel the market :ollapses which have already taken >lacc in London, and forestalling ilbei's that might be .ilill more dan- [erous. Our British friends evidently igttrcd lhat we wouldn't wan I to inderlake any reprisals which night unset lie the financial mar- tets. Note that Ihe slump didn't until after [he Supreme Court's gold decisions. Pre.-;umab!y nrl's implied rebuke was ex- n>oled to cramp our style in mnne.ii- •ering with the dollar. Inner financial circles call the iming neat from this angle—bul irheve that London has taken too niich for granted. Untying Ihe from gold wouldn't ncces- aiily connote domestic inflation-specially iC the need for such a cfensivo measure were ski'.fully xplained. The dollar will nol be educed to 50 cents in gold- but it her things may happen in a hurry F the British continue to indic'ite hat they want to play rough. 3 ac. Tel & Tel. Gets Two New Directors SAN FRANCISCO, March 9. — Pacific Telephone & Telegraph I'ompany stockholders circled Stuart L. Rawlings and C. E. Kloager to directorships today. Hawlincs is executive vice-president of Calaveras Cement Co., and Kloaiior is operating vice-president of the telephone company. Ilirrr- lors re-elected all company officers. Fall Suit Goods Prices in Advance NEW YORK. March !). The Fall M-awm npuiiii); of lines »>f staple and fancy suitings at prices 5 lo l.i cents a yard nvor nptMi- ing Spring levels, says thr New York WtioI Top Exchange, is ex- peeled lo lead to substantial c-arly iinsinrss in the wool cnoris trade, inasmuch as the pricos are cnnsid- rrrd moderate. Amer. Aviation Shows 1934 Surplus NKW YORK. March 9.*- North American Aviation, Inc.. in its annual repurl, showed a 1934 surplus of S?0fi.!t:i1, which came from a profit of S1.2BB.2!H resulting from the sale of securities. Without the .securities sale profit, the net loss for the year would have been $1,- Ofi 1.371. Wells Fargo Bank Declares Regular SAN FRANCISCO. March 9. -- losses prevailed for tin over Ihe ISMIC.I traded in on eii'iicr Iho Stuck or Curb Kxcliangc. Standard Oil made a new low fnr the year al mi- 1 1. Tianxanierica hrlrl at Mi.. On the Mining E\ch:iiigf. Central I Wells Fai-go Hank & Union Trust Kuroka conimon al 111 i-nil-: was up|'.:n. has declnred tl;e reRular cinar- (I cents, and Ihe preferred al the lorly dividend of J.'t.'J.'i a share. It same juice was fl cents up. I)i\-ifle at fl cents gained 1 cenl, Halifax 1 rent at fi cents, Comstork Tunnel 4 cents al 44 rent. r >. \Vr.«t American loft 214 ccnlj Hi $1.2214. is payable April 1 lo stockholders of record March lift. The hank also announced that J. A. Folger, coffeee manufacturer, wfif elected a director. Rubber Tires Developed to Tractor Use ['m-miKtlirs Supplanting Sl KritU in Many Places Due To Furl Kronomirs, Sp NRW YORK. March 9.—With the growth of replacement demand for .•mtonuibile tires rk-finitfly curtailed by the ever-increasing durability and quality developed during recent years, tire manufacturers arc looking armmd for new business. Some of them think they mny have found it in the manufacture of pneumatic tires for tractors and mobile form machinery, according to the Standard Statistics Company, of New York. Up to about a year ago the trac- FURTHER DROP SE tor inanufat-tui-i ; refused to listen to the suggestions by Ihe rubber companies thai they try pneumatic tires. Some of the objections were high cost, doubts that pneumatic tires would stand up. and belief that they would give loss efficient performance than clealed steel. But (he rubber people went ahead a I their own expense, and the result has been substantial progress. It is reported, lhal the International Harvester. Allis Chalmers and Minncapolis-Molinc arc now actively engaged in extensive tests to develop Ihe proper treads, air pressure, and wall construction, to suit each particular type of tractor, and that all three are now offering pneumatic tires as optional equipment on a majority of their models, The arguments fnr the rubber tires are that 24 per cent less fuel is required, that operating speed is increased 24 per cent, that a tractor's life is extended 50 per eenl to 100 per cent, and thai there is greater Iraclability. Thai the "24 per cent more work al 24 per cent less cost" appeal is bearing fruit is indicated by recent reports that a high proportion of orders received from the prairie States during the recent past have specified pneumatic tires. The net gain to the lire industry is unlikely to be important during the near future as there were nnly (>2,000 tractors sold lasl year, but the trend is upward, and over the longer term fhe tractor industry may contribute i worthwhile degree to the rubber companies' earnings. As a matter of fact, the-research department of ne of Ihe larger rubber companies ; on record with the forecast lhat within five years the rubber industry will do a larger dollar volume in Iraelor and other farm machinery tires lhan it now gels from eom- nerciat trucks. •S, B DU NKW YORK. March 3.—(U.R) )urb slocks closed irregularly lower uday after selling developed in the afil few minutes of trading. Sales vere SI,000*shares, against 121,000 ast Saturday. Pllectric Bond & Share, American Superpower, American Gas and •)ther public utility favorites fin- shed fractionally lower, and sim- lar concessions were available in he few oil stocks which appeared on he tape. Trading in dull, and price Movements showed little trend in Mther direction. Motors and min- ng shares eased slightly and alco- lols were about unchanged. NT.W YORK, March fl.—(U.R)- -The jond market was dull and irrcpn- loday, with trading restricted >y uncertainties in the financial sil- lation. U. S. Government issues rallied flightly in parly dealings, bul sup- lorl was limited and they sold off 'rom the highs to close with small \pi losses. Calif. Rice Markets Reported Stronger SAN FRANCISCO, March !».— California milled rice markets de- •cloped a "somewhat, stronger un- lertone" this week, the weekly Jovernment review said. The in- lucncc came chiefly from Southern nil I ing areas, where the approach if Lent brought increased demand. California growers got unchanged iriccs. quota rice selling at Sl.Gfi to 1.71 per 100 pounds, depending on ;iade, and over-quota feed rice iroughl $l.07!i to S1.12>i. Some 2000 i«gs went to British Columbia. Columbia Pictures Profits Increase NEW YORK. March 9 - • Colt inhia Pictures Corporation and nh>idiaries report for 1934 net •rofit of $910.184 after charges, ixcs and amorti'/ation of films, qua! after preferred dividend re- iiirrmeni?, to l-ifi.lS a share on the 73.:~>J)3 shares of common slock. 'his compares with ?404.5G3. or 2.Hi) a share in 1!KW. *hone Usage Gains Over Last Year Walter S. Clifford, president of the \merican Telephone & Telegraph said between conferences with ""acifio. Telephone & Telegraph Co. fficials that the Bell System had eoordcd n gain of 67,100 telephones year in the first two months, omparcd with a gain of 57.500 last ear. Service Reports on Dividend Changes NEW YOHK, Mnrch °. -Favor- hie dividend changes in Ihe past ,-erk numbered 2!) against 35 in tho revimis week, accordinc to Iho llnndard Statistics Co., unfavorable nances numbered nine against 13 In the previous period. While Sterling Steadies iNVar WWk's (Hose. KxperU Kx- perl (Jrratrr IVrrea?** By (,'. T. IIALMN'AX LONDON. March 9.—(U.P.I—Brit- ain's pound sterling steadied in world foreign exchange markets late this week but further recessions were anticipated as the exchange control remained on the sidelines. British are tin worried over the pound's decline. Before it met support this week, it had declined to a record low in franc terms and in terms of the old American dollar based on gold at $20.67 pr-r fine ounce. Meanwhile the gold price had risen to a record high al 149 shillings, 4 pence, while silver made a high for more than six years at H7V4 pence. Stabilization so far as Kni'land is concerned is just as fnr off as it was a month ago. Neville Chamberlain, chancellor of the F.jcchequer. saw no reason whatever for worrying over the present situation. He said stabilization now might force T3ritain to deflate, a move lhat might prove disastrous. 1NTKKNAL VALUK "The internal value of the pnu'ul is unshaken." Chamberlain told the House of Commons. "H will buy the same amount of goods as il did three years ago, and il is very dif- ferenl in that respect from the value nf gold, which has fluctuated lo a very considerable extent. "As for our attempting in such circumstances as these to try to stabilize our currency on gold again, it is clearly impossible." While Chamberlain was defending the aclion of the pound sterling, Ihe French and the Belgians were worried over their ability lo remain on ft gold standard. They foresaw loss of trade to Great Britain and further infernal deflation if the pound continued to decline. Finance Minister Louis Germain Martin indicated an international stabilization conference m ig h t be called. He said France would be willing to aid in stabili/.atiun moves but was unalterably opposed to tarn- pering with the present franc rate. COMMODITIES George Theunis, premier of Belgium, told the Chamber of Deputies: "We have examined "the question of devaluation, and we declare to you that we intend to maintain the franc." Premier Theunis will visit Paris next week .to prepare for a new consultation of (he gold bloc nations in view of the sterling decline, according to Belgian financial circles. British commodities experienced a belter week. Deliveries of shellac went off without a qualm. Tin declined to new two-year lows but steadied. Rubber also improved late in the week. Copper was considered in Iho besl position of the com- modily group. British coppor leaders are now in New York for a conference with American and Belgian producers on curtailment. H was hoped some agreement might be reached lhat would boost the price level. RAXGE During the course of (he week the pound touched 4.71't dollars against 4.7!) 3 .'i al the close last week. It recovered sharply late in Ihe week. In Paris the pound touched 70.70 francs from which it recovered later. A wide range of flucluation occurred in New York on Wednesday wlipn markets misinterpreted President Roosevelt's press conference remarks to indicate further dollar devaluation. The British still believe Ihe dollar i? over-valued and that the pound will sink further. Some predict a- decline to 4'-j dollars in the next few weeks. Such would br accompanied by a corresponding rise in the price of gold and further gold bloc difficulties. Shattuck Co. Earns 32 Cents a Share Frank G. ShaUuck Company and subsidiaries, candy manufacturers and restaurant operators iSchrafft'.O, report net earnings in 4 of $411,765, after deducting depreciation, interest. Federal income taxes and other charges, equal to 32 cents a share on 1.2fi9.I70 shares, agninsl 1933 earnings of $32-!.20fi. equal fo 26 cents a share. Motor Bus Trade Reported Improved Marked improvement in the financial condition of tho motor bus industry in the United States during 1934 and an inciea.se of about 15 pel- rent in employment, is ropnrtod by "Rns Transportation." trade organ of the industry. BUS.^OF handled tho greatest volume of traffic since 1929. according to tho report, and the not income per bus was rinuhlr that of 1M3. Reynolds Metal 1934 Net in Gain Reynolds Metals Company, manufacturer of metal foils, and its subsidiaries reported not profits of Sl.642,461 in 1934, after reduction for (axe?, extraordinary expenditures and depreciation, against Sl.446,636 in 1933. The 1934 nol is equal to $1.71 a share on common stock against $l.fil a share in 1933. Natomas Earns 93 Cents Per Share Against 56c in 1933 Matson Navigation Co. Income Increases; Transamerica Has Advisory Board By H. ?. SCOTT Fnr the calendar year J9.'M "Natpmas Company reports a profit of Sl,U29,.Vi7 after depreciation, losses on rli.-posilion ohcapilal assets and provision for bad deltl= lint lirfore income luxe?, \f\rr income tave- amounting to SllT.X'iS, the hahnee of SW2.0IH) available for iliviilemU i? the equivalent of approximntely °3 lETflL IRES Fill IS L 5? J. C. Penney Votes 50-Cent Dividend NKW YORK. March 9. — Directors of the J. C. Penny Company declared a quarterly dividend of 50 nenis a share on the common, payable March 30 to sfork of record March 20. Three month.? ago the directors alsn paid an extra of $2 a share in addition to the quarterly disbursement. KLX Broadcasts Market Reports T^"LX, the b road cast in K itation •^ of The Tribune, provides listeners with utock quotations and summaries three times daily. The hours and information available arc as follows: 8:20 a. m. (daily)—New York Exchange prlees. 10:15 (dally)—Prices of San Francisco Exchange « of 10 a. m. 2:35 p. m. (daily, except Saturday)— losing prices San Francisco Exchange. 12:00 noon (Saturday)—Closing pricrs San Franclsr.n Exchange. rente a ?hare on 90."i.RO(l ?hnn-- of stock In "l n .'i:t this balance was S-V>H,82I, or 56 rent? a company split it? stork on a 10 for I basis in lIKili. HelWe allowance, for income taxe? earn- iiif!. c . in 19,'1-t wore about SI.01 a oluiro against 61 cenl« a share. in iy:a' Despite material increase in dividend distribution hi 1934 and expenses connected with further exploration and dsvelopmenl current assets al the end o( the year totaled $1,475.8X5. close to 7 times current liabilities. A new dredge under construction for several months will be put into operation on April 15 in Ihe Folsom region. No decision has yet been made on operations on a large section of prospective dredging acreage near Manhattan. Nevada. Income from sold operations for the year was SI, 110,071, from operations of its rock and gravel quarries $10,n;i7 and from sales and leases of agricultural lands $156,167, from water sales S12.249. Gross rc- lurns from gold recovered was $2,079,02(1, an increase of $234,4IB over 1933. A lolal of $84(i,447 was paid in dividends during 1934. The earned surplus account stands at $265,314. Of the company's $11,391,601) in assets, gold dredging properties and equipment account for $1,303.554, and farm lands and improvements (63,243 acres) for $7,620,797. Telephone Investment Earns $3.20 Share Net income of Telephone Investment Company, opcriiting tlic telephone system in Manila and other centers in the Philippine Islands, for I8H4 is reported ns $316.4fi(i, equal to f::.20 a share on !>!>.7<lfl shares ot slock oiilslandinK. In 19:i:i the company earned S3.IS a share on lOO.flOl) shares of S20 par value shares- then outstanding. Profit last year was the highest in opernling history t>[ thr company. Current assets al tile end of the year are reported at S(iS3.762. including cash on hand of $421.25f). Current liabilities amounted lo only 5".:i.57B. Tolal revenues amounted fo $1.053.327, compared lo SI,058.301 in Ihe prccednK year. Total expenses were S742.800, as against 5743.2Ga in the year before. Dividends were paid at the rale of 25 cents n share per month, a total of $253.215 in the year. Earned surplus slood at $013.040 as of December 31. 1334, as compared lo ?5S3.I52 a year before. Net additions to plant and equipment during tile year amounted to $88.049. and $105,811 was charged to maintenance. sha Matson Navigation Earnings Increase SHANGHAI, March 9.~<U.R)~-Di- rectors of the Shanghai Exchange restricted trading in local securities today in an effort fo halt a downward plunge in values which followed reports that China would abandon the silver standard. The directors ordered all local slocks "pegged" at certain levels and directed that no further sales be made either in a cash or future delivery basis. No quotations will be made publicly on any transactions if they are below the nominal price established. The regulations did not cover unofficial sales nor affect trading in foreign .slocks and securities. The market had pi imped downward on publication of reports that China would adopt a managed cur- rpncv and abandon its silver standard. Reserve Appoints New Seattle Head Walton N. Moore, deputy chairman of the board of directors of the Federal Reserve Bank of San Francisco, announces the appointment of J. W. Maxwell, chairman of the board of the National Bank of Commerce, Seattle. Washington, as a director of the Seattle Branch of the Federal Reserve Bank of San Francisco to serve for the unexpired term of M. F. Backus, deceased. SHOWS LOSSES _. w Kail? Particularly \Teak in Session; Oil Shares (in Lower mi Board Rumor? NK\V YORK, March ».—(UP— Gold and silver mining shares stood out with sains of fractions to mnrr than a point in an irregularly lower stock market today. Trading was light. Oils and rails displayed group weakness. Utilities eaxed, but their losses were, relatively small. Steels Flipped back as did motors and motor equipment. A few special JSFiies firmed wiih the mines, but there was no buying enthusiasm anywhere. Declining prices for oil shares stood out mainly because of the rumors in circulation on the group. On small losses most of the standard IFSUCS made new lows for the year io the accompaniment of rumors John D. Rockefeller holdings were being disposed of something on the order of the estate lightening being done by J. P. Mnrgnn. Other ad- verso influence? included estimates of lower earnings and Secretary Jckcs 1 action in banning company unions in several Western oil companies. RAIL \VKAKXESS Hail road weakness was Iracoubta among many other cumulative adverse items lo a statement by '/•. G, Hopkins, representing the Western Railway Committee on Public Relations. Hopkins saUV "Financial results of railroad operation in the first six months of liMo are likely to be the worst in the corresponding period of any years since the end of (he Government control. Other industries may be encouraged by improved earnings, but railroad trends that a year ago were, indicating some rtegre* of recovery in opera ting income have been reversed." Railroad shares lost fractions to more than a point with Union Pacific at a new 1E):!5 low at 86, off A points. V In the utility division Public Service 8 per cent preferred rose, more than a point, while small Io«es were noted in common stocks of Public Service. Columbia Lias, Consolidated Gas and North American. American Telephone, firmed near the close and netted a small Rain. \ MKTAL GKOUPS In Ihe pnlrl group. Homesfakp jumped 5 points to 380. and the- others sained fractionally. At its liiKh. U. S. Smelting, the leading silver issue, showed a gain of IV* points at llfl'/4. It lost part of 1rA Sain, Coppers were still under tl™ influence of hope for a curtailment agreement. United States Rubber issues made new lows for the year on an unfavorable earnings report. U. S. Steel and Bethlehem Steel common stocks lost small amounts, while U. S. Steel preferred marie a new low for the year. A nel income HJ34 is repotted by Matson Navi|:.i- I lion Company, comparer! with .^i.-i fi.17.li50 in I!t3:t. Current assets were i S!',00ri.fi70. \vilh cash s t a n (I i n E at! S.'i.4lin,024. as against S7.fl04.224. wilh | 53.ni3.fini cash al Ihe end of 11133. j Current liabilities al the end of | 1934 were $1.40(1.6011. against S2.i!)!l.-i 373 al the enci of 1!>M. Tola! assets | of the company were listed al the end of 1S34 al $44.165.357, compared wilh $4.3,851,Ififi at the end of 1933. Net income from vessels increased ; lo S4D0.39G in 1934 from $356.531 in ; 1933. Net income from b'.iildings increased lo $3.17.282 from $.109.286.; Income from markrlable and other' securities dropped lo $7.14.020 from ' S871.R41. ' Transamericii Niimi's : Advisory Council ' i John M. Grant, president of Trans-1 america Corpornlion. announces lhal . Ihe hoard of dircclors has named a i committee of fourteen to serve as an advisory council lo assist A. P. Giannini in directing Ilic activities of all j hanks controlled by Trnnsamet ira | Corporation. j The council will be headed by; 1,. M. Ciiannini, who has served as | president of Transatnerica Cot pora- j tion and is no\v the chairman of the | operating committee and is (lie se- : nior vice-president nf }i a n k of' America iS'alional Trust and Sa\ ings' Associal ion. as Avll a< president nf: Hank of America 'California' and', director of Ihe First National Rank . of Portland. Tile other members nf Ihe ad\ isoty t president of Bank of America N. T. ' and S. A.: W. K. Rlauer. vicr-presi- ' den!, chairman general finance com-! miltee. Bank of America N. T. and : S. A.; Hugh I,. Clary, vice-president, ; vice-chairman operating committee,: Bank of America N. T. and S. A.: . I.ouis Ferrari, vice-president and: counsel. Bank of America N. T. and | S. A.: and F. A. Ferroggiaro, vice-: president Bank of America N. T. i and S. A. Dr. A. H. niannini. chairman general executive committee. Bank of America N. T. and S. A.; A. .1. dock, vice-president Bank of America N. T. and S. A., chairman executive committee Bank of America iCali- fornia); John M. Grant, president of Transnmerica Corporation. K. B. MacNaughton, president the First National Bank of. Portland; G. J. Panario and A. E. Sbarboro. vice-presidents Bank of America N. T. and S. A.: Carl K. Wente, president Fit-si Nalional Bank of Reno: and Will C. Wood, vice-president of Bank nf America N T . T. and S. A. R. P. A. Kverard. secretary Trail,— amcrira Corporation and Bank of America N. T. and S. A., will acl as secretary of the council. MARKETS AT A GLANCE NF\V YOKK. JVT.irdi !).—Storks pnsy; rail;: safi; metals resistnnt. Bonds mixed: 1]. S novernmonts firm. Curb steady: trading dull. Foreign exchange;; irregular: sifirlinft reactionary. Collon easy: uncertainty over new crop regulation?. Su^ar sleariy: continued steadiness of spot market. Coffee quiet: morierale trading, buying. CHICAGO: Wheat lower: eotlon market down-turn?. Corn vitak; expected henvie-r imports. Cattle nominally steady. Hops, undertone weak: lat'Eelv nominal trade. SAN FRANCISCO: Slocks dull, lower. WHAT THE MARKET DID Marrh 9 Advances .. Declines . . Unchanged Totai issues Sat. 1.13 264 155 SSB Fri. Total sales Previous day Share. 2RB.090. 17lij Total for week R21 Same J934 week .1.875.933 7,253,135 STOCK AND BOND AVERAGES STANDARD STATISTICS 1 AVERAGES Slocks 50 Ind 20 Rr 20 OHl JOTtl 82.R 83.3 8.1.li 117.4 !IB7 10.1.0 7(i.O 102.1 52.3 300 30.3 32.5 34.5 •Iflfi 54.1 54.3 58.0 22.5 41.5 41.8 42.8 4fi.4 762 90.3 !>0.3 11.1.7 fil.l Ii7.3 G7.R C9.8 720 85.8 93.8 93.8 9G.9 43.9 MARCH 9 Today ... ..Previous day. Week ago... .. .Month ago.. ....Year ago... ..2 years ago. ....1934 high... ....1934 low... ....I933 high... HI.13 low... Bond.* 20Ind 20 Rr 20 Util 60 Ttl Bfi.2 86.3 86.7 86.4 79.9 85.9 72.1 77.1 58.3 76.1 70.2 780 8,1.1 86.2 90.0 74.1 84.9 57.0 94.1 94.1 91.fi 92.!) 86.4 90.6 77.2 88.5 74.1 ASSOCIATED PRESS AVERAGES Slocks .10 Ind 15 Rr 15 Ulil 60 Slks MARCH 9 Bond* 20 Rr 10 Ind lOUtl 2 .-! .1 -.2 ...Nel cnange.. . 00.0 -.1 1.1 .~il.!l -19.4 22.11 36.4 ...Saturday... B0.6 94.1 879 .".2.1 lii.K :"!.:; .16.fi ..Previous day.. fiOfi 94.2 87.B 53 li 2.1.1 24.4 ?8.7 .. Mo.nth ago. .. 85.5 93.8 88.2 S6a .177 35..1 4fi.fi ....Year ago Rfi.5 84.8 82.6 5B.li 27.6 26.6 41.6 .. ..19.15 high 87.8 95.9 88.9 ' 51.5 19.4 22..1 .16.3 19M low R4.4 93.0 84.5 61.4 41.0 40.6 514 ....1934 high 89.4 929 88.9 45.3 22.B 24.2 .14.9 1934 low 74.5 S3.7 fiS 2 17.5 8.7 2.19 16.8 ... .19.12 low.... 458 40.0 fit f, 116.9 133.9 184..1 157.7 ....1929 high. ....1928 high. S1.fi 3.',.1 fil.R 61.8 ....1927 low. •New 1935 low. T>OW, JONES AVERAGES. MARCH 9. 30 Industrials ... .High 101.19 Low 100.39 Last 101.18 20 Railroads High 28.76 Low 28.34 Last 28.56 20 Ulililics High 15.61 Low 15.48 Lai'l 15.56 40 Bonds 05.65. off .07. R5.5 B5.5 86.R 87.5 84.2 88.1 74.8 R34 63.6 — .1 68.2 68.1 B9.8 68.1 70.4 68.0 70.0 B0.2 42.2 101.1 98.3 102.3 100.5 1. Off .40 Off ..19 Off .05 COMMODITY AVERAGES NEW YORK, cumber 31, 1931 previous day 15' low 153.0; 1934 h SI a pie Silk clb.l .. Cocoa <lb.> . Hides clb.l .. Rubber ilh.i Wiieal ibu.i Corn ihu.i .. Hoes 'owl.' . Silver mz.i . March 9.— Index of 15 staple commodity prices (De- equals 100; 1920 average equals 230.5): Today 156.1, .1; week ago 157.8, year ago 139.5; 1935 high 160.0, 19.15 igh 156.2, 1934 low 12G.O; 1933 high 148.9. 19,13 low 787 COMPONENT PRICES Yr. ago ....51.485 057 09 112 8775 4R75 .... 4.60 Today S 1.355 .053 .08 .1187 1.0.162 .8225 jl.fii .4625 .585 Staple Yr. ago Toda>£ . Steel Scrap (ton) .813.2125 $1I.(>25 Copper (Ib.) Lead ilb.> Ceiltnn (Ib.) Wool (Ih.l Coffee db.) Sugar (Ib.) .Oil .0.19 .1235 1.125 .11 .032 .09 .034 .123 .911 .0925 .03 (Cnnvrnht. 15,15. by Mondy'J.)

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