Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-10-16
PROSPERITY SEEN
by BANKERS HEAD
Galloway Believes Founda-
ition Is Being Laid for Con-
j structive Advance.
BY EDWARD c. STONE.


Eeves that the foundation is now being
laid for better, more even and sounder
prosperity than ever before. Through
constructive financing and prudent saw
ir1gs there should be built up renewed
buying power and normal demand 1or
goods and services, and the funda-
mental law of supply and demand De
brought into balance, he asserts.
In his annual address, at the New Or
Jeans Convention, Mr.. Galloway de-
clared that ''old-fashioned standards
for Judging values are again back IN
vogue, and while speculation has It's
proper and important function In our
economic life, alter all, the backlog OF
prosperity is the savings and sound IN
VeStments of the people" Continuing
Mr.. Galloway declared:
1.-THE equipment and management OF
American industry, from both practi-
cal and a technical viewpoint, nave
never been more efficient. Never oe1ore
has so much ability and constructive
thought been given to that very vital
problem, the distribution OF industry S
products. Commodity prices have de-
clined drastically, it is true, but we are
now. apparently nearing the final
stage of that readjustment. The credit
structure is sound with low interest
rates and ample funds. Savings are IN
creaSing and prices for high-graoe
Bonds are improving
Our leading industries arS in a
sound financial and operating condition.
Manufactured inventories are below the
average. All these, together with our
wealth and natural resources and the
efficiency and normal energy of our
people, are factors of strength on which
TO build a new period of prosperity.
without delving into the past years
unpleasant statistics, which many
sources afford in wide variety, or draw
ing a picture that is too rosy, let us
cast aside the shadow OF fear and un-
certainty, which so many OF us have
perhaps allowed to depress us, and turn
equarely to constructive future, ne
concluded.
While the convention this week has
been held at a time when the invest
ment situation is far from healthy, To-
cal members of the association nave
expressed considerable satisfaction over
the cheerful manner in which Mr..
Galloway faced the future. The at
tendance this year is smaller than usual
because last weeks tumble In stocks
kept many of the regulars at home
Paul v. Keyser, counsel Tor the asso-
citation, is the only Washington man
attending this years sessions.
Today's Trading on Exchange.
washington Railway g.. Electric pre-
ferred drew the most attention In TO-
DAVIS trading on the local exchange.
Eleven transactions took place in
which 300 shares changed hands. Every
sale was made at 98as. The largest sale
was 100 shares, another included ~
shares and there was also 5O-snaIe
sale. 1t was the most activity IN tins
stock for more than year. The seIiing
price was practically the same That mas
prevailed for some time,
Capital Traction again came TO the
front, The stock opened at 521a on
45-share turnover. The next sale COW
cred a 10-share lot at 52A. The stock
then dropped to So, where it closed with
SIS shares in the final dealings.
American Security g. Trust Co. stock
registered ATS for single share, Mer-
genthaler sold at 9212, and Potomac
Power 6 per cent preferred came out at
110l2. One hundred and nrty snares
of National Mortgage q Investment
preferred sold at and 200 shares OF
Real Estate Mortgage & Investment
preferred at 6lz.
There was much better demand to-
day for bonds. Capital Traction, Poto-
mac Power and Washington Gas issues
were in moderate demand at recent
levels.
McFadden Board Chairman.
Louis T. McFadden chairman Of the
Committee on Banking and Currency
of the House of Representatives and
author of the McFadden banking act,
which was signed during the Coolidge
administration, has been chosen chair
man of the board of directors of Trans
continental Shares Corporation. The
corporation is sponsor of modern 1xed
investment trust issuing Universal
Trust Shares which represent a diver
sified list Of high-grade industrial, rail-
road and public utility stocks The an
nouncement made it plain that In ac-
cepting this post, Representative Nc
Fadden has no thought Of retiring from
public life.
American Stores Extra.
The American Stores Co. has declar-
ed an extra dividend of so cents and
the regular quarterly dividend OF SO
cents. The extra dividend is payable
December / to stock of record Novem-
Der IA and the regular January to
stock of record December Is. Payment
of the extra 50-cent dividend will bring
total dividend payments for the year TO
$3.50 a share, the same as has been
paid in each of the last five years.
M B. Skaggs. president of Safeway
Stores Inc, said today that for the first
time in the companys history the third
the preceding period. The third-quar-
ter statement has not yet been issued.
Heard in Financial District.
Directors OF Beatrice Creamery Co.,
which recently acquired Carry Ice
Cream Co. of this city, have approved
the acquisition of Hazel Glen Milk Co.
and the Pittsburgh e. Ice Cream Serv-
ice, Inc, of Brooklyn. These acQuisi-
tons further the company's program OF
Eastern expansion initiated in August,
this year.
william C. johnson, assistant to the
president of the Federal-American Ma
tional Bank has returned from his an
nual vacation.
Norman E. Towson and Austin B.
Rohrbaugh Of the Washington Loan g.
Trust Co. took business trip TO Phila-
delpha yesterday by eirplane.
western Union Telegraph Co. third
quarter net estimated at 1922 share,
against $3.50 a share in like 1929 quar-
ter; for nine months S6.44 a share
against $1l.34 year ago
Despite the reduction in the prices
of "a commodities and the advance in
the quotations Of 81 commodities dur
ing the week ended october IL the
general index number Of the National
Fertilizer Association wholesale price
index was not changed.
Coffee, rubber, coal, silver bars, sheep,
lambs, apples, peanuts, cottonseed meal,
lard and hemp were among the COM
rnodities that showed advances. Listed
among the articles showing declines
were gasoline, finished steel, wheat, cot
ton, flour, dried beans, wool. burlap and
ammoniated fertilizer materials
COMMODITY PRICES SHOW
FIRMER TREND IN WEEK
NV the Associated Press