davidaulloa/AmericanStories huggingface dataset:
Evening star., 1931-12-07
RAIL STOCKS DISCOUNT
DEPRESSION EARNINGS
Special Dispatch to The Star,

Special Dispatch to The Star.
NEW YORK, December THAT many
railroad stocks have declined in price
In proportion to the decline in earnings
since 1929, and some in even greater
proportion, is revealed in the current
investment bulletin of the Alexander
Hamilton Institute. In the case of the
Great Northern and Northern Pacific
the percentage decrease in price has
about paralleled the decline In earnings.
In the cases of some of the other car
r1ers the drop in price has been out of
proportion to the recession in earnings.
Atchison, Chesapeake SS Ohio and Penn
sylyania show greater proportionate
price declines than the drop In per
share earnings
From the ratios for both 1929 and
1881, 1t appears that "a reasonable
view is that neither the high earnings
and prices of 1929 nor the low earnings
and prices of 1891 are representative of
values, says the institute. Each level
is distortion, the one presenting the
railroad shares in the most favorable
the other in the most unfavorable light
And with this opinion, 1t is our belief
that the investor who includes such
representative shares as Atchison, Ches-
apeake 81 Ohio, Norfolk g. Western and
Pennsylvania in his portfolio will be
the. owner Of securities which are as
likely to benefit from the next period
of expansion as any of the securities
groups. The railroads are still so in
tegral part of the machinery OF buSi-
ness that prosperity Is impossible with
out benefit to the roads, just as depres-
sion is impossible without bringing con-
ditions which operate to their detriment.
Evening star., 1931-12-07
Business Notes

NEW YORK, December Gold
weather brought belated gains in activity
in the New York wholesale merchandise
markets toward the end of last week
as retailers conseryatively filed in stocks
Of seasonal merchandise. Rush orders
developed on some lines of holiday
goods, including handbags, hosiery, nov
city jewelry. pewterware sets, toilet
goods, luncheon sets and home accesso-
ries. Orders for special promotions con-
tlhued 10 feature business in the coat
trade.
Concentration on fewer lines by dry
goods Jobbers during the year has de-
creased inventories 10 the lowest point
IN many years, jObberS who have started
checklng stocks report The decline in
physical volume ranges between Is and
70 per cent and, combined with drop
IN prices OF about 25 per cent. brings the
dollar value of stocks TO point almost
30 per cent under the corresponding
period last year, they said.
WhlIe ark-doWnS this year in the
retail helo viii continue high, they are
expected TO fall below the high average
Tor 1880, according to views in New
YORK retail circles. The ratio of price
decline, 1t was pointed out, was smaller
than in the preceding year, while buy
ing was held down and turnover
speeded, Wide use of unit control
methods probably fostered a larger per-
centage Of mark downs than would be
the case if this system were not en-
ployed, it was said.
Evening star., 1931-12-07
GRAIN MARKET
By the Associated Press.

CHICAGO, December 7.-Downturns
IN grain prices early today resulted from
weakness of sterling exchange and from
Liverpool reports of lack of demand for
wheat. Curtailment of wheat supplies
afioat for importing countries failed to
act as counterbalance.
Opening 3s-a cent lower, wheat subse-
quently rallied somewhat Corn started
at shade to 7s decline and later
steadied.
Fairly active speculative buyinV
which sprang up during early setbacks
IN wheat prices turned the market up
ward later to above Saturdays finish.
More favorable action of the New York
stock market tended at this stage to
induce buying. A further stimulus TO
bulllsh sentiment came from Russian
reports that, allowing for army require
ments and the smallest possible reserves,
the government collected grain now
totaled less than one-half of the original
estimates and that all over Russia both
state farms and collective farms have
been withholding grain
Persistent unsettled weather in Argen-
tina, together with consequent delays
to harvest, was reported AS a result
it was expected that no shipments of
new Argentine wheat would be made
until early in January. The amount of
wheat on ocean passage from all ex-
porting countries was given as 33, 752 900
bushels, against 35,720,0oo week ago
and 43,256,000 at this time last year.
Corn and oats paralleled the action
of wheat prices.
Provisions were responsive to upturrs
in hog valYes.
Evening star., 1931-12-07
TAX CUT URGED BY CHECK
ON GOVERNMENTAL EXPENSES
Credit Chief Suggests Further PAIRING
Down of Appropriations for Depart
ments of Federal and State Agencies.

vers real estate recommendations
which can be extremely beneficial al
most Immediately after being made
effective.
Building Industry.
The Importance of the building in
oustry cannot be overemphasized, the
credit chief observes, because it con-
sumes large quantities of raw material
and any Improvement in that industry
Is quickly reflected in the general busi-
ness situations. Despite the MANY va
cant buildings, there is in process of
development at present a real shortage
OF homes. There is a budding of
families which would not long continue
were II possible to maintain an inde-
pendent home
1t is estimated very conservatively
that the building industry serves as a
suoStantlal feeder to no less than so
related industries. The home loan plan
therefore, is very constructive factor
one that should weigh heavily in de-
Veloplng a business turn"
In viewing the general business still
atlon, Mr.. Helmann stated that "the
recent increase III the price of wheat
ana Its consequent Stimulations. mar
tlcularly In agricultural commodities
emphasizes again the Importance of the
agricultural situation in relation to
general business conditions and sharply
brings to our attention the fact that
the slump in most agricultural com
modltles has been out of proportion 10
the slump experienced in other COM
moditles. From October, 1880, to Octo-
Der, 1881. the general decrease in whole
sale prices amounted to approximately
II per cent, while that of farm products
totaled 80 per cent"
Although prices are depressed, the
credit chief points out that sit is well
TO bear IN mind that while production
Is at low ebb, consumption has not
fallen to the same extent. When we
consume more than we produce the
length of time required for the resump-
ton OF production is constantly short
ened and it is favorable indication
that the wheels of industry must soon
again begin to turn to satisfy consump-
tive wants.
Mentions Prospects.
I'VE emerge from depressions usually
through some outstanding favorable de-
velopment in certain lines 1t was the
building industry and automobile pro-
duction that brought US out of the last
depression. Perhaps we shall emerge
from this depression under the leader
ship Of price improvement in certain
commodities, an unexpected pickup in
residential building and a favorable
turn in the automobile industry"
Evening star., 1931-12-07
Brokers' Comment

NEW YORK, December 7.-Contin-
uance of an erratic stock market was
toreseen by some brokerage house COM
mentators today. Possibility of inme-
diate extension of the rally was men
toned
Redmond & Co.-Gain in SATURDAYS
market we're well maintained and the
recovery again appeared to have gained
sufficient momentum to carry through
for few days this week, barring some
unfavorable turn in the foreign situa-
ton.
Thomson & McKinnon-- is notice
able that early fears and misgivings
over this session of Congress have ma
terially subsidized Such legislation as
will be agreed upon promises to be con-
structive.
E. F. Hutton & Co.-While the pros
poets for important constructive de-
Velopments appear greater at the mo-
ment than has been the case for
months, we believe that the market
will fiuctuate about nervously and in
definitely while attempting to appraise
the significance of the weeks irnpor-
tant events. At the moment we think
the edge is on the upside in the stock
market.
Shields 81 Co.-With so many uncer-
tainties Immediately ahead only very
cautious trading policy can be followed
1t will take favorable occurrence of the
greatest Importance to bring any new
buying of consequence and as a result
nothing more than such hearted
rallies as experienced recently is to be
expected.
Frazier Jelke 81 Co.-As we see it,
an improving bond market must pre-
cede or accompany any significant re-
covery in stock prices at, this time.
Hornblower & Weeks-The direction
OF the market the early part of this
week can be expected to be guided by
the extent OF the enthusiasm accord
ed the many constructive suggestions
expected to emanate from Washington
looking toward further strengthening
of our industrial and financial condi-
ton, with particular attention being
paid to recommendations for improv-
ing the credit position of the railroad
industry.
Jackson Bros, Boesel e. Cove
have now reached that point in the
business depression where some of the
necessary reconstruction steps are al
ready conSummated and where the con-
summation of other steps is clearly in
dlcated. This suggests that, as far as
the United States is concerned, the
bottom of the business depression is
close at hand, The only fly in the oint-
ment, as We see the situation would be
complete political and economic up-
set IN Europe.
Evening star., 1931-12-07
CURB SHARES GAIN
AS SHORTS COVER
Market Leaders Reflect Tax
Selling, but Slight Ad-
VanCeS Are Recorded.
BY JOHN A. CRONE.

Special Dispatch to The Star.
NEW YORK, December Prices on
the Curb Exchange were irregularly
higher in forenoon trading today on a
rather moderate volume Of sales.
Electric Bond g. Share gained slightly
due to some covering by shorts Cities
Service was virtually unchanged. Tax
selling a rather prominent feture in
oils over OH the big board, was lacking
on the Curb with the result that most
OF the petroleJms improved
A squirt in bar silver following pro-
posalS Of cooperation between the
United States and India which would
tend to increase the metals price
brought buying into silver shares. This
Immediately benefited Bunker Hill Sui
Ivan Mining.
Belief that some favorable action will
be taken toward relieving the railroad
situation was evidenced by the rally in
Lackawanna securities and the COM
parative Ermness OF IeuLroad Corpora
ton
Stocks on the curb opened higher,
perhaps in anticipation of some of the
coming events Of the week rather than
on week end developments.
Electric Bond Share at 1885 was
unchanged but Cities Service at g.
lost Is. Standard Oil Of Indiana at
1885, United Light Power A at 9as
and Niagara Hudson Power at 7as all
advanced II.
Ford Motor, Ltd, at 5ts was up a
and Cord Corporation was active
though unchanged at rs Hudson Bay
Mining at 25s was up a shade. Ca
madam Marconi after its first few
trades, pointed higher United Gas
opened unchanged at "a and then ao-
vanced. n-American AirWays at l8
gained ~ United Founders was frac-
tionally higher at 2sS.
Evening star., 1931-12-07
England's Airways.

BY the end Of this year Great Britain
VIII possess air services covering routes
totaling 10000 miles These will link
up almost every part of the empire
The English already have airways to
Egypt, Persia, India and South Africa,
and recently the Indian route has been
extended farther $500 miles by the
service between Karachi and Port Dar-
win IN Australia. Before the end of
the year over 5000 miles will have been
ADDED to the African air routes. At
the moment the United States is still
a nttle ahead with air routes totaling
$4,000 miles, but these are all services
within the country, Britains air routes
are mainly external Before the end of
tne year Great Britain will have out
diStanced the United States in air-route
mileage.
Evening star., 1931-12-07
R-k-0 HOLDERS
TURN IN PROXIES
Keith's Manager Reports Wide Re
sponse to Appeal for Local
Voting Rights.

Despite the acton for receivership
begun in the Baltimore courts, Hardie
Meakin, manager of R-K-O Ketth's
Theater, expressed himself as most
gratified yesterday with the results
being obtained locally in the quest for
proxies in a campaign being directed
by F. L. McNamee, manager. of the local
R-K-O Distributing Corporation, and
himself
Mr.. Meakin states that the stock
holders are manifesting their confidence
in R-KO and are readily responding
via the signed proxies even beyond
his anticipations. The refinancing plan
has been so favorably received by the
stockholders that proxies representing
in excess of $4,000 shares have already
been received from the Washington dis
trict alone, he reports.
Every indication points to the adop-
ton of the ref1nancing plan at the De-
cemher 10 meeting, according to the
local manager.
Evening star., 1931-12-07
The Conqueror's Coast

The Conqueror's Coast is the name
which is now very appropriately given
to the strip of shore along the EneT,sh
Channel on which stand the chain Of
seaside resorts. Hastings to Seafnrd
Hastings Castle was erected by villa n,
the Conqueror soon after the famms Famous
battle of Hastings in 1865, and the
city mas been famous health resort
since the eighteenth century. Nearby
is the almost as beautiful st. Leonards
ana bexniii, which latter is old enough
70, 70 oe mentloneo IN the Domesday Book
Then comes Eastbourne. a heantif,,i
place nobly laid out by a former Duke
OF Devonshire. Nearby Beachv gead
raises its eyebrows 500 feet above The
town and gives the visitor magnificent
views of the entire coast line The
Conqueror's Coast is a favorite shore
of England. ''o'
Evening star., 1931-12-07
LOWER TOBACCO PRICES
REPORTED FOR WEEK
BY the Associated Press.


FARMVILLE, n. c., December 7. -
United States Department of Agricul-
ture.
Offerings on the tobacco markets
here we're fairly heavy for each day
last week with the exception OF Friday.
while offerings at Smithheld, Washing
ton and Williamson were light for the
week
With the exception of fine to me-
dium grade orange leaf, which drew a
slightly higher price, average prices for
the weed were about 10 per cent lower
for the week. Offerings consisted of
approximately 81 per cent leaf, 5 per
cent cutters and per cent lugs
These included Al per cent lemon sides,
AZ per cent orange, 2 each mahogany
and mixed and 10 green.
Average prices per hundred pounds
for the officially graded leaf for the
week were: Lemon leaf, second quality,
S27 CO. third. 5000; fourth. Sl3l 10;
fifth. $3.50; sixth. S430.
Orange leaf: Second quality. s2e so;
third, $500: fourth, S1237; fifth,
$3.50; sixth. $3.50; seventh. S1.50.
Green leaf: Fifth quality, $3.50;
sixth. $3.50; seventh, $130.
Evening star., 1931-12-07
CHICAGO LIVE STOCK MARKET

CHICAGO, December 7 United
States Department of Agricultural -
Hogs-Receipts, 10000 head. including
$4,000 direct: market active, 1926
higher; pigs, slow; 170-28o pounds,
4.35a445; top, 4.45; 140-160 pounds.
4.10a435; few pigs, 300a390 packing
sows, 38oa4oo light light, good and
choice, 140-160 pounds, 400a435; light
weight, 10000 pounds, 425a445; me-
dunn weight, 200250 pounds, 43Oa
4,45; heavy weight, 250-350 pounds,
4.25a4.4o; packing sows, medium and
good, 275-500 pounds, 3,75a4,00; pigs,
good and choice, 1oO-13o pounds,
300a375.
Receipts, 1900 head; calves,
5000; largely steer run, bulk being
short feds; market fully steady on bet
ter grade weighty steers and long
yearlings; slow on others; early top,
lilo; bulk, 650a9,00; she stock mostly
steady. Slaughter cattle and vealers-
Steers, good and choice, 100000 pounds,
7.25a1150; COOL, 100 pounds, 75oa
1925; 1,100-1 800 pounds. 750a12.50; !;
l ,3o0-1 500 pounds, 7.50a1250; common
and medium, 600-1,3 300 pounds, 350a
75o; heifers, good and choice, $50
$50 pounds, 600a9-5o; common and
medium, 3O0a600; cows, good and
dium, 2.50a350; low cutter and cutter,
1.75a2 so.
Bulls (yearlings excluded. good and
choice (beef), 400a4,75; cutter to me-
diu, 2.5Oa4 IS, vealers milk fed, good
and choice, 500a6.75 medium, 35oa
500; Gull and common, 2.50a3.50;
stocker and feeder cattle, steers. good
and choice, 500 to 1850 pounds, 5.00a
$50; common and medium, 350a5.00.
Sheep-25 900 head; mostly steady
with Friday; packers resisting higher
asking prices; few good to choice lambs,
550a600 best held above 6.10; choice
fed Western ewes, 800. Lambs, 80
pounds down, good and choice, 5.35a
625; medium, 450a5.35, all weights,
common, 3.50a4.50; ewes, 90 to $50
pounds, medium to choice, 1.50a3 90; all
weights, Gull and common, l25a2,o0;
feeding lambs, 50a75 pounds good and
choice, 4.50a5 90.
Evening star., 1931-12-07
Special Dispatch to The Star.

opeclat DlSpatch TO The Star.
NEW YORK, December with
Federal, State and local government
expenditures increasing at a tremen-
douS rate, the mounting burdens of
taxation constitute a serious menace to
the future prosperity of business" says
Henry H. Heimann, executive manager
OF the National Association of Credit
Men, in his monthly review of business
sent to the associations $4,000 mem
berS.
1T is estimated these combined ex-
penditureS this year may we'll run to
Sl5,000,0 900, 900. which would be ap-
proximately five times our total ex-
penditures of Is years ago." the credit
chief explains. "Deflation in govern
ment is a difficult thing, yet highly es-
sential. Private industry has had to
defiate during the depression, and 1t is
time that there be an organized effort
to bring about a corresponding defla-
that one dollar out of every nine of
the income of the United States goes to
the expense of government
Two-Billion Deficit.
Nationally we are facing a two-bil-
lion dollar deficit. The situation calls
for heroic action, for we cannot go on
having mounting deficits The real So
luton, of course, is drastic curbing of
governmental expenditures, but even
the best efforts along this line will not
enable us to balance our budget on our
present income. A temporary increase
in taxation seems a necessity, despite
the fact that business is now suffering
under too heavy load. To defer the
day. however, of settlement, is merely
adding additional burdens and likewise
deferring the day of sound recovery.
Government is no different than
business with respect to balancing its
budget, as Europe has very painfully
discovered. We in this Nation ought
to take a lesson from the experience
across the sea and endeavor to balance
our budget painful as the burden of
doing so may be. Perhaps the very
balancing of the budget will bring about
a consciousness with respect to the ex-
pendlture Of the public dollar that has
been sadly lacking in the past decade.
Above all things, it is highly essential
that the added burdens should be eouit-
ably distributed. Politics has no proper
place in the determination of taxation
policies. Taxes should be scientifically
and equitably spread"
The associations executive manager
also stresses the significance of the
recommendation for the formation of a
corporation to rediscount real estate
paper, stating that there has not been
full appreciation of President Hoo
Evening star., 1931-12-07
TRADE IMPROVEMENT
SIGNS ARE NOTED
Business Observers See Promise of
Better Times Within Three
Months.
Special Dispatch to The Star.

PPoNidL DlSpdtCn 70 ne star.
NEW YORK, December Tt in
wolves no serious strain on ones opti-
mlsm to see in the current statistical
StraWs some signs OF stabilization in the
level of domestic business activity and
some promise of improvement in the
next ninety days, says the Business
Week. The October bulge in commodity
and stock prices as we'll as in some
business indicators was in larger part
wiped out in November. but on the
whole there has been no serious set
back, and some net gain,
Stock averages have been bashfu1
about breaking through the bear market
lows commodities still oscillate reassur-
ingly around the levels that, have been
held Tor nearly six months. Steel ac-
tiyity and carloadings have succumbed
very slowly to the usual seasonal slack
enlng. and some stimulus to steel is still
to be expected from year-end-new-
model automotiYe demand.
The heartbreaking bond market is
the outstanding and disturbing excep-
ton to this promising picture, and the
accompanying banking strain and
slackness in new capital issues must be
overcome before. we can count on a
clear track for recovery. The immi-
nent bankruptcy of Germany and the
threatened breakdown of our own rail-
road structure unless prompt relief is
supplied are now the most or only for
midable obstacles to sterilization of the
securities markets and fundamental bet
terment in the outlook for business IN
this country.
1t is reasonable to expect that some
thing constructive will soon be forth
coming toward the recuperation of rail-
road credit, and while one cannot be so
hopeful about European affairs Amer
ican business opinion is rapidly recon
Cling itself to the fact and turning its
attention, to domestic possibilities.
For the week ended November 2s,
preliminary reading of the index of the
Business Week is set at 661. The re-
vised reading for the week ended No
vember 81 is $50. The index stood
at 80.4 for the week ending November
90, 1880.
Evening star., 1931-12-07
POTATO MARKET.

CHICAGO, December 7 LP) UNITED
States Department of Agriculture ~
Potatoes-Receipts, $50 carloads. on
track, 295 carloads; total United States
shipments Saturday, 701 carloads; sun
Gay 81 carloads about steady; trading
talr; sacked, per hundredweight, Wis
consin Round Whites, No /, 80a85, few
90; ungraded, 70a77l9, Minnesotss ss
North Dakota CobblerS, 80a85, Ne
braska Triumphs, 105al is Idaho Rns-
sets, No. /, l.50al so; Commercials
lao; Colorado McClures, l.4O. "