Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-09-30
Local Board Rooms Crowded.

AOIaA DuAEu IOuhlS NEONuCus
Local brokerage officers were damned
again today at the opening of the New
York stock market yesterdays severe
declines tended to intensity interest in
the next movement in stocks.
The Ontario Finance Corporation has
just completed a survey of the earnings
and market prices of $50 stocks. or
these issues l84, or 1879 per cent, sold on
September 81 at less than 10 times
average earnings for the past seven
years, according to a study of normal
earnings and equities versus market
prices prepared by the Ontario Finance
Corporation. The tabulation in the sur
yey shows further that 10l, or 40.6 per
cent sold at less than five times average
earnings for the same period; 43, or
17.3 per cent, at less than three times,
and 20, or per cent, at less than two
times average earnings for the past
seven years. Moreover, it is seen that
lib, or It's per cent, sold at less than
book value.
"At time like the present, when pes
stfniSn IS being carried to even greater
extremes than was optimism in 1929, it
is advisable to consider the situation
calmly and intelligently and consider the
actual facts and values instead of being
carried away by mob psychology" the
review states. ut should be real
izs6 that it might not be good judgment
TO base security values upon current
earnings because current earnings are
not normal. Average eanings for q
period Of years as well as asset values
should be consideed in relation to mar
ket prices"
Reserve Bank Investment Trend.
The Federal Reserve Board has lust
published comparison of investment
holdings among the Reserve banks at
the end Of June, 1881, against the fig
ures in June, 1929
Member bank investments increased
during the two years by $4,000, 000, 900,
rejecting increases Of about $780,
100000 in United States Government
securities, $500, 900 900 in other domes-
tic securities and $1,000 900 in foreign
securities. The classes Of securities to
show decrease for the two-year period
were industrial bonds, which declined
by S5l 100000 miscellaneous securities.
which declined from $50 900 900 to S43,-
100000, and foreign securities other
than Government bonds, which de-
clined by 100000 to the level OF
1929, GOO, 900.
The proportion OF total member bank
investments represented by United
States Government securities increased
from 38.e per cent in 1929 TO All per
cent in 1881; that Of State, county and
municipal bonds from il8 per cent to
1877 per cent, and that of corporation
notes from II per cent to 19 per cent,
the report says.
Federal Storage Dividend.
The board Of directors Of the Federal
Storage Co. has declared the regular
quarterly dividend Of So share on the
preferred stock, President e K Morris
announces. The disbursement is pay
able october is to shareholders Of rec
ord September go
During last week prices for 81 COM
modities showed losses, while the prices
for 1S commodities moved upward
Among the commodities declining we're
cotton, cotton sheeting. burlsp hemp
lard. cottonseed oil, creamery butter
dried beans. corn, wheat, hogs, tin,
roSin, gasoline. coffee, rubber and
leather Important commodities that
advanced were potatoes, apples, raw
matoes. canned peas beef and standard
grade Of butter.
Attend Insurance Meeting.
Eugene @. Adams. president Of John
son e. Adams, Southeastern managers
of the Continental Casualty Co. and
Continental Assurance Co, left Wash
ington today TO attend the annual COM
pany convention at Chicago. He was
accompanied by George L. Haines, J. H.
Ledger and p. B. Biggs Of the local
agency.
Mr.. Adams reports that the new life
insurance issued to agencies reporting
10 his Office for the first nine months
Of 1891 is substantially ahead in vol
ume for the same period last year.
Local Bonds Market Leaders
Local bonds were the leaders on the
Washington Stock Exchange today in
trading of moderate proportions. Po-
tomac Electric Power IS sold at l0734,
Potomac Electric Power consolidated SIS
came out at 1882, Washington Gas IS,
series A moved at 1919 and Gas IS,
series B, at los. The largest trading
was in Washington Railway & Electric
As at 9l3t.
In the stock division Potomac Elec-
trio Power 5i2 per cent preferred reg
tstered lot, Second National Bank stock
changed hands at l66. Lanston Mono
type came out at 744 and Mergen-
thaler Linotype sold ex-dividend at SO.
A large number Of bank and other
dividends are payable tomorrow, this
being the last day they will be quoted
ex-dividend. Members of the exchange
are greatly pleased over the way prices
have held up on local issues, the show
ing being vastly better than that OF
New York and other big exchanges OF
the country.
Washington clearing house figures for
TO-DAY "a 636 33k OF