Evening star., 1933-05-03
BROKERS SEE TURN
/. IN BUSINESS TIDE
Optimism Stirred by Recent
kdvances in Commodi-
Ig ties and Stocks. i,
BY EDWARD C. STONE.

sF 1Vo QiIO SlOVNOs 'stH
BY EDWARD C. STONE.
Many Washington brokers express
the opinion that the bottom of the
depression has now been thoroughly
scraped" and look for the present up
ward trend to be maintained for some
time to come. They do not mean that
investors should plunge in and buy
stocks without the most careful dis
elimination. Caution is always wise
and necessary.
But the advances in commodity prices
have aroused an optimistic view
toward securities that has been lacking
for many months. The controlled in
f1ation move has had favorable ef-
feet on the markets, brokers assert,
while the pickup in the steel industry
has been another important factor.
Naturally, the greatly increased
volume OF trading has placed all New
York stock market brokers in q very
much more cheerful mood. In this
connection the progress made during
April Is highly informative and inter-
esting.
lUO STOCKS up As Per Cent.
The market value of 100 representa-
tive common stocks increased $780,
sos, 900, or ass per cent, last month, to
Sll,2l3,306,O 900, according to Frazier
Jelke g. Co. The 100 issues at the end
OF April were 47.3 per cent higher than
the day before the bank holiday was
declared and 101 per cent higher than
at the end of June, 1882, the approx
mate low of the bear market. On Sep
tember 8, 1882, the hight of last Sum-
mer's rally, the list was appraised at
$12, ,764, $50 900, or at 1851 ,644 900
more than at the close Of business Sat-
urday.
Each one Of the 13 sub-groups con-
stituting the index advanced last
month. The largest recovery was in
the oils, which gained s637, ,534 900. The
utilities advanced $308, 159, 900 and the
rails, 1924 965 900.
On a percentage basis, the largest
advance last month was 87.3 per cent
in the mines. The steels recovered
S1.9 per cent; the motors, 81 4 per cent;
the electrical equipments, 55.3 per cent
the building industry shares, 51.8 per
cent; the railroad equipments, 498 per
cent; the miscellaneous industrials, 432
per cent; the retail shares, 42.5 per
cent; the oils, Al g per cent, the chem
icals, 39.5; the foods, 36.7 per cent; the
rails, 29.2 per cent, and the utilities,
27.2 per cent.
Peoples Drug Showing Praised.
Earnings of SO cents per share on
the common stock in the first quarter
of 1888 against So cents in the first
quarter of 1882 has brought Peoples
Drug Stores, Inc, considerable COM
ment in the financial district. Many
big chains have been reporting de-
creases over the like period year ago.
Peoples gain, while small, is in the
right direction.
Consolidated income account for quar-
ter ended March 81, 1888, compares as
follows:
sss sales 80. ss'ss$:,g1s |ss$, s4.iss: iSa$ $:sss
Other strS. inc. 60,512 65,735
Total str: inc :. s3,sI9,431 s4,22s, ,3ss
sOper. profit -. 130.665 130,992
Deduct. less other
rsasPsi ipssPf tax. :: 17.sss 7.sSs 1s.sss 1s.sss
net profit .. s105, ,as1 s1o1,493
Preferred dividends. 340Sl 37,699
Common dividends. 29,9S4 ......
Surplus ~ S41216
after costs, expenses. depreciation, etc
Current assets as of March 81, last,
including $938,521 cash, were S3,534,-
4O4 and current liabilities were 1898, 169.
This compares with cash OF S552,746,
current assets of S3,326,177 and current
liabilities of $966,589 March 81, of pre-
vious year.
The last bid on Peoples Drug 615 per
cent preferred stock on the Washing
ton Stock Exchange was SO, while the
common is selling around II on the
New York Exchange.
Life Insurance Totals Huge Sum.
Members of the District of Columbia
Life Underwriters Association are deep
ly interested in a survey of the lnsur-
ance situation showing how much in
surance is now being handled by the
leading companies.
More than $4,000 100000 of life
insurance is in force in companies rated
with an "a (excellent) by Alfred M.
around 80 per cent of all the insurance
rated. The survey, which is approx
mately completed, shows that COM
panies with "B" (very good) rating
have insurance in force above $6,000,-
100000, almost 6 per cent of insurance
rated.
Insurance in force in companies re-
ceiving "A" and "B" ratings, both of
which are considered recommended
Wy 40Cot tOIdio ~ PSi NCllt VI
all insurance in force. The survey
shows that there are over 300 legal
reserve life insurance companies doing
business in the United States, of which
II per cent of all policies and assets
are held by the first 20 and IS per cent
by the first 80 companies.
Today's Trading On Exchange.
The opening sale on the Washington
0@I~ 1-%
of Potomac Electric Power 6 per cent
preferred at 10834, up q over the last
previous transaction. Potomac Electric
Power 51a per cent preferred also ap
peared on the board, five shares chang
ing hands at 1861.
Washington Railway & Electric fig
ured in 16 share turnover at 80l4,
same as the last previous sale. Lanston
Monotype also figured in the days
trading with small lot bringing As,
showing a gain of point over the last
transaction.
Woodward & Lothrop preferred put
In an appearance on the board today
when few shares changed hands at
10412. Business then turned to bonds,
the first bond sale being 500 Washing
ton Gas 6s, Series B, which moved at
103% and $1,000 which brought 1929.
Washington Gas Light IS, 1858, closed
the days market with $1,000 sale at
8212, showing gain Of Y point.
Heard in Financial District.
The National Bank of Cockeysville
at Cockeysville, Md, and the Woodbine
National Bank, of Woodbine, Md, have
been authorized by the Secretary of the
Treasury to open on 100 per cent ba-
sis.
The Treasury Department reports that
bids totaled S224,691 900 on the new
offering of $60,000,000 of 91-day bills
dated May 8. The total amount of bids
accepted was $60,665, 900.
Voters in cities and States author
lied only 81 276 500 in new h0nd issues