The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-10-12
ReUiezU
Highlights of the
News During
This Week.
by VINCENT LYONS
Times Financial Editor

public appeal for all Americans to
respect President Roosevelt's state
ment of policy on financial and
commercial relations with Italy
and Ethiopia, 100 Americans sailed
for Europe on an Italian ship,
lightly passing over the chief ex-
ecutive's warning that travel under
such conditions was at their own
risk.
Meanwhile, Premier Mussolini
was making further explorations
into the nations gold vaults in or
der to pay for munitions and sup
plies needed to wage a war in
Africa. During the Today period
ended Sept. 30 the Bank of Italys
gold supplies were reduced S6,731,-
900 to S346, 489,100. Since the end
of May the shrinkage in the metal
hoard amounts to $127,77570.
Her gold supplies at present are
equivalent to only q per cent of
money in circulation, against a Ais
per cent ratio on May 81, last.
The week found the nations two
leading security figures passing the
buck on the question Of imitation.
Charles r. Gay, president of the
New York Stock Exchange, in a
speech Wednesday night warned
that the stock market provides an
inviting field where imitation on
grand scale might occur.
Consequently, ne limited, the
stock exchange could not be held
responsible for any dire results.
THE next day James M. Lands,
Il recently appointed chairman
of the Securities and Exchange
Commission, declared that an in
flationary boom in the stock mar
ket would only too likely find his
agency holding the bag" but
poWcrless to act. Monetary policies
would be mainly responsible for any
inflationary market and the SEC
has not the authority to deal with
such a matter, he added.
On the floor of the Stock EX-
change the bulls" were making
the most of the episode. On Thurs
day the professional trading ele-
ment considered the intimation of
imitation important enough to war
rant advances of one to three points
in miscellaneous issues. Yesterday
they we're able to keep the rise
boiling in the face Of substantial
profit taking activities.
The current week marked the APP
pearance of many condition state
ments Of New York and Chicago
banking institutions in response to
calls by state banking authorities.
Chief feature of the New York re-
ports was the climb of the National
City Bank into second place among
the nations banks, usurping the
rank of the Guaranty Trust Co. In
Chicago the item of interest was
that banks are having a difficult
time trying to expand their loans.
n n
NEWS pertaining to public utili-
~ ty corporations was singular
ly arresting. The nationally known
Associated Gas e. Electric Corp,
giant holding company, took i'm
portant steps. The first was the
announcement of the resignation
of H. G. Hopson from all official
connection with the company and
any of its subsidiaries. The second
was the revelation that plans are
under way to simplify its corpor-
ate structure in accordance with
the provisions of the public utility
holding company bill.
The j. P. Morgan financed
United Corp. is to take different
route. 1t is rumored that the COM
pany will seek exemption from the
act by the simple process of hay
ing its status changed to an invest
ment company. Only in one or
two instances does this unit have
stock control of any operating
utility. The Wheeler-Rayburn bill,
however, Stipulates that stock
hold ngS up to 10 per cent are suf-
Cicnt to bring a company under
its provisions.
In New York Mayor La Guardia,
Public Friend No. l of municipal
ownership of utilities, encountered
little trouble The appellate divi-
sion of the New York Supreme
Court affirmed an injunction re-
Straining New York City from pre-
senting to voters a referendum on
construction of a municipal power
plant.
Capital frightened out of Europe
~ the war scare flowed into this
country in increasing volume in
the week. Some Of it is finding its
way into the nations security and
commodity markets; some of it is
augmenting the tremendous hoard
now lying idle in Federal Reserve
Banks.
At the close of September
monetary stocks of the United
States amounted TO SIS .4S9, 276, 500,
a new high for all time. Gold &C
counted for S3,S67,Sl9,794 of the
total.
Production of electricity by the
domestic power and light industry
for the preceding week ploWed for
ward to 1853 4S3 900 kilowatt hours.
q record high. Car loadings, bene-
fitting from resumption of ac-
tivity In the bituminous coal
fields, Spurted. The automobile in
duStry was making ready for the
national automobile show in New
York next month.
Dividend news and corporation
earnings reports were largely ia
vorable. Standing out among the
dividend announcements was the
resumption of payments by the
Stewart Warner Corp. after
lapse Of five years.
STOCKHOLDERS ATTACK
NEW DEAL LEGISLATION