Evening star., 1930-06-25
MANY i. S. FIRMS
INCREASE CAPITAL
Wall Street Not Surprised at
Fifty-MiIIion Share North
American Issue.
BY JOHN F. SINCLAIR.
Special Dispatch to The Star.

American Co., announced a common
stock increase from 10000, 600 to so ,oOO,-
900 shares, 1t caused no surprise in the
Street.
While this 4G-year- public utility
holding company has outstanding .OOO.
600 shares at the present time, its future
expansion plans may be judged by this
enormous increase in the authorized
capital. No company in America yet
has 50,000,000 shares outstanding.
General Motors leads the list with
AZ, 100000. Commonwealth & South
ern, another public utility holding COM
pany, is second with 81 SAC, 900 shares
General Electric is third with 28, BAG, 600
shares.
Other large American corporations
outstanding are: Imperial Oil with 26,-
50S,OOO shares; Niagara Hudson Power
Co, 25,595, 900; Standard OH Co. of New
Jersey, "a, ,484 ,0o0 shares; Courtaulds
24,OOO,OOO shares; Cities Service, a.
I'll 200 shares; and United Gas I'm
provement, 20.528, 900 shares.
companies in the 100000 900 to 20
OOO,O0O share class are: Standard Oil
Co. OF New York with 1884, 900 shares
standard Oh Co. Of Indiana, 1851 900
shares; Packard Motors, 15,0O0,OOO
shares; American Telephone g. Tele-
graph, 13,720,000 shares; International
Nickel, 13,758,000 shares; Shell Union
on, 1902 900 shares Middle West Utfl-
tiles, 13,448,0 900 shares.
Then follow Standard Oil Co. of Cali
fornia with 12,946, 900 shares: Standard
Brands, 1880, 900 shares; Pennsylvania
Railroad, IL, ,4o5,00 shares; Console
dated Gas, II, ,457 900 shares: Electric
Bond d Share. 10,9O4,OO shares; CO.
lumDla Gas q Electric, 10,597, 900 shares:
du Pont, 10,464 900 shares, and Ameri-
can. Radiator with 1O,155, 900 shares,
This roll call of some of Americas
largest institutions shows that public
utilities and oils lead the field.
So the increase in stock of the North
American Co., while exceptional, Is not
unusual.
New York banks have over 81 ,OOO,-
100000 in time deposits. The banks
have been paying on the average of
about per cent for this money, or
$30000,000 a year.
But six New York bankers, members
OF the New York. Clearing House, met
yesterday and decided to cut the rate
on these time deposits from 3 to per
cent, beginning Thursday. The six men
were William G. Potter of the Guaranty
Trust, Charles E. Mitchell of the Ma
tional City, M. M. Bruckner of the New
York Trust, Percy Johnson of the
Chemical Bank, Henry c. Cochran of
the Bankers Trust and Jackson E. Rey-
.noldS Of the First National Bank
This decision cuts of $4,000, 900 a
year from the overhead charges of these
banks, which in turn is largely Offset by
a decrease of about the same amount
received from these banks in loans and
investments due in return from lower
interest rates. One hand about washes
the other.
Mutual savings banks have cut from
212 to 2 per cent on certificates Of de-
post, payable within 80 days from date
of issue; on credit balances payable on
demand within 80 days.
Other banks, trust companies and
private banks, excluding mutual saw
ings banks, cut from 2 per cent to u
per cent on these shorter term items.
Cheap money Is having its effect al
ready.
Are the banks Of the United States
loaded up with frozen security loans?
This question is often heard on the
street and elsewhere. Editorials In
financial journals have discussed it fire.
quently since the November break.
But DR.. w. Randolph Burgess of the
categorically that the banks in the New
York district, at least, are not burdened
with such frozen loans. Citing figures
to support this contention, DR.. Burgess
says that:
"If we include in the tabulation these
loans placed by other lenders, as well
as the loans made by banks to brokers
both in New York City and outside and
directly to customers, the total OF all
the available figures on October 2 last
year was $14,601 100000. BY the end
of December, 1929, this total had been
reduced to $10,737, 100000, or by
S4 600 ,OO0, 900, or 81 per cent
1.-THE most recent f1gures-those Tor
June l1-are $10,674 100000, or about
the same as at the end of December. In
this period stock prices declined 28 per
cent"
DR.. Burgess concludes, "The liquida-
tion of security credit has been vigorous
and thorough"
This statement coming from an of
fetal of the largest Federal Reserve
Bank, is very significant.
The Government survey showing the
1929 international balance sheet OF the
United States revealed the fact that
the gross United States tourist expen-
ditures for that year were estimated
at 1878, 100000.
Foreign tourist expenditures in the
United States-a nominal Sum-muSt be
subtracted from this sum to get the
net
As a matter Of fact, thestourist figure
for last year is larger than Americas
favorable balance of trade. So Europe.
If other factors did not enter, could
have paid Americas export bill by TINS
process
what of 1902 Probably the total
gross expenditures of the United States
will not quite reach the figure at
tanned last year, due to the business
situation. But Americas favorable
ade balance, too, may be less than
last year, So the balance sheet may be
as healthy" in 1880 as In 1929.
The world economic stability fostered
by tourist travel abroad is not often
thought of as an essential element in
American prosperity. But 1t has become
a major factor in American business
prosperity since the war.
The first bright spot in the cloudy
business sky-freight car loadings in the
Pacific Coast and the Southwestern
area-showed an increase for May over
tt corresponding month of last year,
according to the American Railway AS
sociation. 1t is the first gain shown IN
any district for any month this year.
with loadings in this Western area OF
177,381 cars for the month-an increase
of 9700 cars over May of last year.
The increase comes largely from grain
and grain products, gravel, rock and
sand and perishables
But the big item is the breaking OF
last years record in one section OF the
country for the first time this year.
Auna
paper Alliance)
METAL MARKET.
NEW YORK, June IS [P1-Copper
quiet; electrolytic, spot and future, IL.