Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-05-05
Corporation News

/ NOk VO1~k1OA 4NCWB
NEW YORK, May 5.--The following
is today's summary OF important cor
poration news prepared by Standard
Statistics Co., Inc, New York, for the
Associated Press:
Weekly News Review.
The past week witnessed the most
severe setback in the security markets
since last December. All groups par
ticipated in the recession, with some Of
the sharpest declines being registered
by the highest grade industrial and
utility issues.
U. S. Steel lost 11% points, American
Telephone &c Telegraph 11B points,
Westinghouse 32A points. General
Electric is points, Consolidated Gas
15as points, Electric Power &c Light
1873 points and Radio "a points. Turn
over totaled 81, 309,770 shares, the heav-
lest since the week Of November 2, 1929,
when 43,499,5 $40 shares changed hands
in 312. trading days. Our composite in
dex OF 30 representative stocks closed
the week at 1918, q dec;ire of 20 points
from the previous Saturday. 1t IS now
at the February ri level. 11.s per cent
below the high OF the year. attained on
April 10, and 81 per cent above the low
point Of January q. Brokers loans in
creased $57,000,000. This advance was
generally unexpected, in view of the re-
ceding stock prices. Total loans, accord
ing to the latest report, stood at
$4,274, 000,0 new high level for the
year, but 81 ass, 100000 lower than on
the corresponding date of 1929. Call
money was at per cent the greater
mart nf the waak yfy1er al
cent on Friday, with new loans at 3
per cent.
On Thursday four central banks re-
duced their rediscount charges. A 3
per cent rate Is now effective AZ the
Banks OF England and Belgium and at
the Federal Reserve Bank of New York.
The Bank Of France rate has been re-
est French Bank rate since 1898, when
per cent rate was in force. Only
once before in the history Of the Fed
eeal Reserve system has the New York
Bank rate been as low as per cent.
This charge prevailed from August g.
1924, to February 20, 1925.
Rejecting the lower bank rates,
open-market charges were distinctly
easier. Thirty and sixty days time
money was reduced one-uuarter of /
per cent and bankers acceptances for
5000 days were cut to a 234 at 25a
basis. Prime commercial paper was Of
Tered at 312 per cent. Notable changes
In the Federal Reserve system state
ment were increases of $22, 0OO,0 in
holdings of discounted bills and $2,-
100000 in United States Government |
securities. Holdings Of bills bought in
the open market decreased $47, 800, 900. !
Reserve ratio increased from 818 to |
82.5 per cent.
The several regular weekly reports on |
trade and industry were unfavorable. |
Steel ingot production showed a slight |
falling of and price weakness was def
n1tely in evidence. Railroad freight |
sonal trend and showed considerable
reduction from the previous week.
Crude oil output showed a substantial
increase. Activity In the steel industry
averaged around TIKI per cent of
theoretical capacity, compared with a
shade over 78 per cent in the pre-
ceding week and 101 per cent year
ago. Operations during recent weeks.
indicate quite clearly that a temporary
average has now been struck, from
which but minor improvement csa be
expected during the early future
months. Prices Of steel products ON
tinue to show weakness. The A.nertc1n
Steel & Wire Co., United States sci
reduced its price Of peel
wire So to So ton. It is estimated
March quarter shipments to domestic
trade realized about $1.45 a ton less
than in the same 1929 quarter. Rail-
road loadings of revenue freight in the
week ended April 10 totaled 892, 1871
cars, per cent less than in the
previous week and 11.2 per cent below
the corresponding week of 1929. This
Is the largest decline, compared with
D year earlier, recorded in any week
since the recession began last Fall.
Geographically, all regions reported re-
auctions of all commodities compared
with the like 1929. Domestic crude oil
production in the week ended April 26
averaged 1850. 100 barrels daily. an in
crease OF $4,000 barrels over the pre- /
ceding week. Gasoline stocks totaled !
1922, 900 barrels on April 26, de-
;rease of 1850 from previous week.
Gas and fuel oil decreased $4,000 bar
'els to 136,685.000.
The cut in copper prices from 10 to
a cents has thus far failed to induce
he anticipated response, either from
domestic or foreign consumers, although
buying by the latter source
developed during the first week after !
he reduction. The worldwide decline
n general business activity and pur- I
hasing power is undoubtedly the pri- {
nary influence in the failure of con- +
umers to enter the market. Producers {
re thus faced with curtailed outputs,
'urdensome stocks on hand, and reve- {
tues which provide extremely narrow 6
'rofit margins. It Is believed improve
nent in the industry is primarily linked
With q recovery in world trade and gen.
raj commodity prices. Weakness in
commodity price, continued in the past F
week. May wheat in Chicago sold a Z
raction over 81 bushel: sugar dropped
o 1892 cents a pound, the lowest s
rice on record. The Annalist Weekly
ndex of wholesale commodity prices
eclined OF points during the week to
32.3 Qela=100). new low. 1t Is SIS
er cent below the index at the begin D