Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-07
80
Corporation News

NEW YORK, July THE following
| is summary Of important corpora
ton news prepared by Standard Statis-
tlcs Co. Inc, New York, for the ASsoci-
| ated Press.
Weekly News Review.
With transactions at their lowest
lever Tor some time, prices on the
| stock exchange advanced irregularly
/ IN the four trading sessions of last
week. Average daily turnover was
! ABOUT 100000 shares against $780,
600 shares in the previous week. Our
composite average of 80 stocks gained
% points in the four active sessions.
Inc utility group advanced by Al
points. the industrials by 2.6 points and
the rails by % points. OF the three
groups only the rails have thus far
broken through the low figures of No
Vemoer Is, 1929. Extreme low regis
tered by the industrial group thus far
IN 1880 has been 1895 compared with
1913 in 1929. The low point in the
current year for the utilities has been
204.9 against 1863 last November.
Brokers loans recorded another large
decrease in the week of July 2, Sl97,-
600, 900, carrying the total as reported
by the Federal Reserve Board to the
:oWest point since the first week of
September, 1927. Aggregate borrow
lngs on July 2, stood at $3,219 900 900,
about Sl09,000,000 under the extreme
low figure of 1929, recorded in Noven1-
Der following the panic. It is note
worthy that the latest decline in the
weekly loan total, while smaller than
that recorded in either of the two
weeks Immediately preceding, occurred
during period of advancing prices.
Our composite index in the period
covered in the report gained 81 points.
indicating buying Of. stocks on an out
right basis has been of important pro-
portions lately. Call money rates, af-
fected by the month end settlements.
advanced to 3 per cent, with the
renewal rate of az per cent. This
compares with a Is per cent charge
on the same dates year ago and 10
per cent during the 1928 period
Buying rate for bankers acceptances.
with maturity from l to IS days, was
cut to "a per cent from 2 per cent
by the New York and Boston Reserve
Banks. This is the lowest buying rate
In the history of the bill market The
daily average volume of Federal Reserve
Bank credit outstanding during the
week ended July 2 was S1.031 ,000. 900,
an increase of $4,000 600 over the pre-
cedlng week, but a decrease of $685.
100000 compared with 1929 period. Re-
serve ratio OF IL banks in the Federal
Reserve System fell to 807 per cent,
against 1877 per cent in the previous
week and 1873 per cent year ago.
Commodity prices were somewhat
f1rmer, particularly farm products. Cop
per, however, showed further weakness,
with custom Smelters Offering the metal
at 1l12 cents a pound. Considerable
interest Is conferred at the present time
on the effects of the current weakness
in agricultural prices and its influence
on general tra!t : recovery. Evidence at
hand, although rather scant, indicates
that agricultural income for the present
year will fall considerably under that
of last season. Composite prices for
farm products on July ! were about 19
per cent under those of a year ago.
This decline in prices of agricultural
products has been considerably sharper
than for other commodities, indicating
that the farmer is paying relatively
more for the goods he purchases. Limit
ed data are available as yet relative
to prospective aggregate acreage for the
current year. It is believed improbable,
however, that production will be ex-
banded sufficiently to compensate for
the unsatisfactory price situation.
On the basis of present quotations
and crop estimates, the return this sea-
son from the total wheat crop will be
about 20 per cent below that of last
year. Prospects are that firmer prices
for wheat will increase the value Of
the present crop before marketing is
completed. Briefly, little stimulus to
recovery in general business activity is
provided by the present agricultural
outlook. But neither is there evidence
present that developments in the agri-
cultural situation will prove an insur-
mountable obstacle to trade revival.
Steel Ingot production was reduced by
about per cent to 81 per cent of theo-
retical capacity in the past week. 1t is
probable rate has been reduced further
to around 48 per cent as 1t was planned
to close down mills, where possible, for
the holiday. A year ago at this time
the industry was producing at 81 per
cent of capacity and in 1923 at rs per
cent. Prices have recently shown resist
ance to pressure and the belief is that
the market has about reached bottom.
Pig iron output in June was So per cent
less than in May and the smallest for
any month since January. Total six
months output fell 16 per cent below a
year ago, but was only IA per cent less
than in the first half 1928.
Railroad freight car loading were
again the lowest of any like period since
1924. Total of 920,859 cars in the week
of June 81 was 140 per cent below a
year ago. This is the largest percentage
decline recorded since the present re-
cession began last october. All groups
of commodities showed smaller ship
mentS than during the like week Of
1923, while all except grain and grain
| products were smaller than in 1928.
Ten torially, all regions reported reduc-
| lions in loadings, compared with same
| week of 1929; the Southwestern region
| was the only one to record an increase
| in comparison with 1928 period. While
| the continued decline in traffic, as
| compared with year ago, has been re-
in hn laPr to-
revenues from month to month, decline
| in net operating income has been re-
| stricted by reduced operating expenses.
Based on the first 70 roads reported the
curtailment in May gross of all class /
| roads will be the sharpest of any month
| this year, averaging about 1877 per cent,
but because of better control over oper-
ating expenses net operating income is
| expected TO show q drop of approx
mately 1913 per cent. This would COM
pare with decline of 1913 per cent in
| April net and 374 per cent in March.
| Weekly crude oil output showed an
| increase of 12,200 barrels daily over
previous week to 2,6l0,950 barrels.
Oklahoma and California production
was reduced $3.50 barrels, but West
| Texas production expanded 12,200 bar
rels. Gasoline stocks were reduced Abb
900 barrels to 100000 barrels. With
drawalS from storage during the month
of June totaled 3,0l5, 900 barrels, against
2,657,000 in June last year. Further
reductions of to cents gallon were
made in retail quotations of gasoline in
California. This weakness in prices is
| attributed to the current excessive
| stocks Of gasoline on the Pacific Coast.
| The Companies.
Allis- Chalmers Manufacturing untitled
orders June 80 record, $17926,000,
compares with Sl2,972, 900 December 81,
j 1920 Orders hnnknd In .IlIne tntaled