davidaulloa/AmericanStories huggingface dataset:
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Wall St.
Opinions Differ on
Bankers Bidding
for Loans.
BY RALPH MISUNDERSTOOD
Times Special Writer

NEW YORK. April 10. The
~ banker who still prefers to be
known as c. w. p. started some
thing when Ia challenged this
writer TO make one practical srg-
Eestion TO improve the banking
situation in this country. Several
others. including a retired dress
manufacturer, an industrial banker,
a consulting industrial engineer
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

and an uncata-
lOgued business
man. Immediate
~ joined IN the
discussion
The retire d
dress manufaC-
turer thinks the
medium size q
business organi-
cations are poor
credit risks. He
says in part:
Il presume you
were concerned
with the state Of
a fairs NJ bl1ci-
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
PLANT TO BE REOPENED

d. 7 TfIEN TfTINI
BALTIMORE. April 1S.-Standard
Sanitary Manufacturing Co. sub
sidiary of American Radiator and
Standard Sanitary Corp. will re-
sumo operations at its plants here
within three weeks for the first time
IN three years. it was learned today.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
CANADIAN GOLD OUTPUT UP

bV Times Special
OTTAWA, April 18-Canadian
gold production totaled 229. $40
ounces in February. compared with
222,937 ounces in February. 1884. &C
cording to the Dominion Bureau OF
Statistics
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
WHEAT MOVES Up,
CORN TRENDS OFF
Major Grain Aided by Alien
SteadineSS.
By United Press

By UNtI6U PF6SS
CHICAGO, April 18.-Wheat
prices firmed today on the Board of
Trade as Liverpool failed to respond
to the sharp break here yesterday
and there was no forecast of rain
for the Southwest.
At the start wheat was unchanged
to e cent higher, corn was Is cent
lower to y cent higher, oats were
off 4 to l cent, and rye Il to q
cent higher.
I,r Inr,n
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Hides and Skins

Hides-Green country cows and steers
4isc fat: green country bulls and CLUES
Sc fat. green country calf hides. SC fat,
green country kip. &c: Nc. ! large horse
tails 81 so: medium size. 50. All MOI :
grade horse hides. soc less: CLUES ano
ponies half price No. l rendered tallow
515isc: No. at value Yellow grease
a. Sc: dark grease. 4ee4isc.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
RESERVE BANK
CREDIT LOWER
IN 9TH DISTRICT
LeSSened Borrowings by
Members Cited as Rea-
son for Slump.

By Times Special
CHICAGO. April IS. - Seventh
District banking reserves increased
in 1884, mainly the result Of the
movement into the district of more
than sl13,OOOOOO from inter-district
commercial and financial transac-
tons, according to the annual re-
port Of the Federal Reserve Bank of
Chicago. issued today.
The amount of reserve bank credit
extended locally. however, was lower
by S3,5000O0 at the close of 1894
than a year previous. due for the
most part tC leSSened borrowings by
member banks. Treasury and ma
tional bank currency available
through the Chicago Reserve Bank
declined almost S18OO0,OOO.
Reserve Balances Up
Member banks showed an increase
in their reserve balances of $780,
100000, rejecting primarily the
movement of funds into the district.
although leSSened demand for cur
rency and an increase in local
Treasury collections over disburse-
ments were also factors. The total
volume of credit extended by the
Chicago Reserve Bank outstanding
on Dec. 81, last. amounted to S429,-
$3.50 900. a decrease Of S25,OO0,OOO
from the close of the preceding
year.
The movement toward lower rates
of interest paid by banks, the re-
port said, continued in 1884 At the
close of the year a substantially
greater number of banks than a year
ago, both city and country insti-
buttons. were paying not to exceed
2 per cent on time deposits. Such
reduction in interest paid. together
with the Inauguration of service
charges. has enabled many banks
which otherwise in all probability
would have sustained loss, to show
profit on the years operations.
Positions Were Liquid
Banks in this district, as in
others" the report continued. were
in an unusually liquid condition
during 1884, the outgrowth, in
large measure, of a greatly in
creased volume of deposits, coinci-
dent with continued small demand
for loans.
Deposits of all licensed member
banks in the Seventh District, which
on Dec. 81. 1888, were reported as
$3,134, $4,000, by Dec. 81 of 1884
had increased to S4.169, 1862, 900.
gain of more than a billion dollars,
or about 80 per cent. Loan on the
other hand. in the same period de-
clined approximately IL per cent, or
from $1,207918,OOO at the end of
1888, to $1,074, 421 900 on Dec. 81,
1884.
Banks closed in the district DUR
ing 1884 were predominantly nom
member institutions which had
failed to qualify for a license to re-
open on an unrestricted basis since
their enforced closing in the mora
forum of March, 1888"
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

The original resolution authorlz-
ing the city to call for bids on the
issue was approved by the board OF
directors of the Indianapolis Utility
District on April 5. The date for
the sale was then fixed for April 25.
Last week the board met again,
changed some of the provisions OF
the sale and put off the date for the
awarding of the bonds to April 20.
Utility District directors were in
session yesterday and made further
corrections. Each time changes are
made the date of the sale is de-
ferred and the new resolution must
be advertised.
NNE of the changes decided upon
~ yesterday was that pertaining
to when the proposed bonds be-
come due. Originally it was pro-
vided that they we're not to ma
ture in less than three nor more
than 20 years. A week ago this con-
dition was altered from not less
than three to not more than 40
years. The latest alteration leaves
the 40-year period unchanged, but
allows the bonds to mature in not
less than two years.
Under the second important
change the city, in the event that
the winning bidder specifies that
the bonds bought are to be serial
obligations, has agreed to set aside
not less than $4,000 and not more
than 100000 annually out of earn
ings to take care of principal and
interest on the issue.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
NEWSPRINT OUTPUT DROPS

NEW YORK, April 18-Canadian
mill production of newsprint showed
a decline in March, the first since
May, 1888. according to the News
print Service Bureau.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

TREASURY STATEMENT
by United Press
WASHINGTON. April 18-Government
expenses and receipts for the current fiscal
year to April IS. compared with the cor
responding period of the previous fiscal
year:
This Year Last Year
Expenses. SIS, 420 900 so 90 SIS. SIS, 366 sol SO
Receipts. 3,O12, 1888 $50 90 2,423, 727, 283 80
Deficit ... 2,408 256 620.04 3144 639 0l8 81
Cash bal. 2256. 430, 688 "a 4581 983 sos 10
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Utility District Alters
Gas Purchase Provisions
Bids on S8,OOO,QOO Bond Issue to Acquire
Citizens Gas CO. Will Be Opened May 4.

opening proposed
indianapolis will sell to take Citizens
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

NATURALLY then, the success
Il y of the entire project is de-
pendent upon earnings. Under
private ownership the plant has
been unable to meet dividends on
it's common stock for the last few
years. Under public ownership
fixed charges will be increased.
This means, in turn, that earnings
will have to be expanded in the
same proportion. If earnings fall
short of charges the rate to con-
sumers will be hiked.
Advocates of municipal owner
ship are less prone to applaud in
in the present instance. Under
the proposed set-up in regard to
the acquisition Of the Citizens Gas
Co. the city will have to do con-
siderable hustling and financial
legerdemain to make a success
of their venture into the public
utility field
These advocates realize that if
at the outset a heavy pack of
fixed charges is saddled on the
back of the city the chances of
success are negligible. They also
realize that if success does not
attend the venture scoffers Of
municipal ownership can point to
indianapolis and boast that there
is a municipality which failed
ignobly to benefit from private
ownership.
Knowing all this it is simple to
explain the peculiar alignment of
sides in the present controversy.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

LIE almost always goes with the
IL preconceived idea that a
bank today is nothing but a card
index with a vice president at one
end and an invisible board of di-
rectors at the other end. and no
human UNDERSTANDING in between.
As a matter of fact. bankers
this writer has known are an eX-
ceptionally fine group of men, but
their training has been such as to
exclude them from a knowledge
and understanding of the types of
business which they really need"
We have saved c. w. P'S letter
until the last. and regret that lack
Of space prevents us from printing
Il in full. He said:
The government has set up a
plan to lend directly to industry.
and the Federal Reserve Banks
have a fund of S3OO,0OO,0O or that
purpose. At last accounts about
100000 had been loaned. Why
doesn't the man you write about
borrow this money? Answer that
question and perhaps the banker
may change his point OF view.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

ness firms capitalized at from $4,000
to $4,000. with their owners having
no other assets. Since 1 have par
ticular knowledge Of the state Of
affairs Of the ready-tO-Wear indus
try-and I presume the same con-
ditions prevail in every industry
today rise in defense Of the
much abused bankers.
These firms are poor credit risks
for any bank at this time, al
though they we're excellent ones
formerly Manufacturers and job
bers in the wholesale and retail
fields are confronted with problems
and abuses beyond their control
Industry Is infested with leeches
bleeding it for their personal
gains.
CPACE does not permit full re-
- production Of this letter, but
the code authority. trade organ
ization and labor organizations
were mentioned as being difficult
problems with which to cope. He
concludes by asking whether under
the circumstances the banks can
be blamed or criticized for their
foresightedneSs and caution"
The industrial banker took
rather different view. He agreed
that the commercial bankers might
we'll ask to develop business and
find employment for their idle
funds by contracting the medium
sized business organizations. He
said in part:
We, too, have dropped in our
usual loan volume, which was
mostly personal loans. But We
have, as a result of the credit re-
quirements of commercial banks,
developed a very large number of
small merchant and manufacturer
loans. These we're 80 per cent
former commercial bank customers.
The actual delinquency and loss in
making these loans are much less
than We experienced in personal
loans. =,
"CINCE our experience has been
- so encouraging, we are con-
templating modifying our policy,
and where we feel we have a fairly
good risk we will make loans on
financial statement.
The small merchant and manu-
facturer are still good credit risks
for any bank, and. besides, they
are more or less the backbone of
industry"
The business man also con-
ours with your correspondent. He
suggests that banks secure the
services of competent business men
TO assist them in securing and
passing on business loans.
The banks" he said. believe
they have new business depart
ments and old business depart
ments also. 1 wonder if the banks
know that the average medium
sized business man believes that
the bank does not understand his
problems.
when such a business man goes
to bank vice president he usually
goes to put up a bluff or possibly
to get a tip on the stock market.
More often he goes to pump the
banker as to banking opinion of
speculative markets with which his
business is vitality concerned.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

"THE writer has signed reams
Il of letters asking customers
why they did not use credit set
aside for them. and the composite
answer has been that they were
afraid of the outlook. There isn't
a line of business in the world
that voluntarily reaches out and
helps the business man as much as
banking. No representatives in
any other line of endeavor on earth
call on business concerns oftener
to discuss their problems than
bankers. and instead of a You are
seeking me- attitude it is now and
always has been exactly the re-
verse.
We twist and turn, scheme and
plan. 20 put out at interest de-
poSitors' money. and We are doing
things today that were looked up
on by another generation OF bank
ers as undignified and fraught
with risks from which they recoiled
in holy horror. Only a banker
knows that many types of loans
are full Of dynamite. How can you
expect to know these thingS?"
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Other Issues Expected

Utilities and, to a lesser extent,
rails are expected to figure in forth
coming refunding issues, some of
which have been definitely an
nounced and others reported in the
making.
An offering due during the next
week or two is that of $4,000. 900 of
25-year 3A per cent refunding
mortgage bonds by Southern Cali
fornia Edison, already registered
with the Securities and Exchange
Commission.
The Boston and Albany is ex-
pected to offer soon new issue of
100000 OF 414s due in 1943, the
proceeds to be used to replace more
costly bonds and debentures.
Definite announcement is expect
ed almost any day concerning plans
of the Duquesne Light Co. to refund
its $70,000,000 OF outstanding Az per
cent first mortgage bonds.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Switching Sides
BY VINCENT LYONS
Times Financial Editor

NNE of the many significant
~ items in connection with the
proposed purchase of the Citizens
Gas Co. by the city of Indianapo-
lis is the peculiar alignment of
sides.
Interests ordinarily opposed to
municipal ownership of public
utilities find themselves, in this
particular instance, in the rather
embarrassing position of favor
ing the proposition. At ,any rate,
if they do not whole-heartedly ap-
prove the contemplated deal their
silence has been deafening since
the city asked for bids on $8.OOO,-
900 of bonds.
To complete the paradox those
who generally look with favor
upon private ownership Of public
utilities are less constrained to put
their stamp of approval on the
Citizen Gas-City of Indianapolis
transaction on the terms which
have been proposed.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

DOTH interests have switched
- their allegiance for the same
reason, the possibility of the city
operating the gas plant at profit
is poor. And chances are poor be-
cause of the fact that payment of
interest on the contemplated
100000 bond issue and the
amortization of the investment
will tend to handcuff the city for
years to come.
This switching of sides which
has taken place is easy to under
stand. Those persons who pre-
viously have howled against each
entrance of a municipality into a
field where private funds had once
been invested have disdained to
repeat the same arguments in the
Citizens Gas acquisition. They
disdain, secure in the belief that
the project will defeat itself.
An arbitrary interest rate of 5
per cent on the proposed $8,OOO,-
900 bond issue will mean that the
city has to pay out $444,444 an
nually in servicing the bonds. In
addition, the city will have to
appropriate funds from year to
year so that the amount of bonds
outstanding can be Whitfield down
each twelve months.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
NeW York Curb
". Y. Bonds

Reprinted from Yesterday
(By Abbott. Proctor & Panel
DAILY BOND INDEX
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
LOCAL CASH MARKET

City grain elevators are paying 80 cents
for No. soft red wheat. other grades
on their merits Cash corn No. yellow
83 cents, and oats AZ cents.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Money and Exchange
INDIANAPOLIS STATEMENT
TREASURY STATEMENT
nv ITpifod praee,

earrings Observation-Disclosures. 900. 90
ebits Observation-Disclosures. 5,270, 000. 90
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
High Since 1881

Last weeks total of bond offer
ings in the New York market,
swelled particularly at the begin
ming of the period by the S162, OOO,-
900 refunding issue of the Federal
Land Banks, reached above $685.
100000. That was more than four
times the total for the previous week
and was the largest amount for any
week since April, 1881.
Syndicate books on the large
volume of offerings were closed with
startling promptnesS, although there
is still enough overhanging business
to occupy dealers The industrial
group was represented solely by the
$1,000 5000 issue of the United Bis
cult Co.
or particular significance in bOr-
rowing by municipalities and States
was the trend toward still lower
interest costs, with new low points
for long period of years attained
by some of the borrowers.
New York City go the benefit of
the best terms in 30 years on its
S50,000,00 of 312s and As. Both Cali
fOrnia and Maryland set new rec
ords for themselves in low cost Of
borrowing, the Coast State issuing
$24,0O0,0Oc of 3l4s at a premium of
almost So per cent on face amount
and MARYLAND obtaining S. 500 0On
of relief money at a cost of 2O9.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
Money Goes Begging

Cal money IS noC dUdidbIe at II Of I per cent on
the floor of the NeV York Stock Exchange. As a re-
suit shorterm bonds sho,oing decided stifening
IN price
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18
FINANCING LULL
AIDING DEALERS
TO SELL ISSUES
Recent Offerings Absorb.
ton Seen Enabled as VOL
ume of New Deals Falls.

BIZ Times Special
NEW YORK. April 18.-The new
week began with promise of a slight
let-down in the pace of bond offer
ings. which last week set a four-year
high mark. Prospects immediate
~ ahead. however, indicated that the
lull may be brief and no longer than
many of the bond houses will well
come as opportunity for the market
to digest the heavy volume of recent
offerings.
State and municipal issues, which
have been following something Of a
whirlwind pace, will contribute par
ticularly to this weeks easing in
absorption of investment funds. The
total of the weeks offerings in this
group is likely to be held below
$4,000 ,000 whereas last weeks total
was nearer ten times that amount.
Among the principal offerings
this week is an issue of s1,370,O0O by
Passaic, N. j.; S1,846,00O by the
State of New Jersey today, and an
issue of s1,OOO,OOO by Providence, R.
l., on the same day. Various lesser
borrowings by cities are slated for
the week.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-04-18

(By James E. Bennett)
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-05
VANNUYS AND
MINTON SPLIT
OVER MARSHAL
Indiana Senators Unable to
Agree Over Awarding of
u. S. lob.
BIZ Times Snecfal

BIZ Times Special
WASHINGTON, Feb. 4-Senators
Frederick VanNuys and Sherman
Minton reached an impasse today
over the appointment of United
States marshal for the indianapolis
district.
The senior Senator announced
that ne VIII recommend Fred Bays.
Sullivan. Senator Minton is seeking
the post for Richard Wernecke,
Terre Haute.
The latter has the backing of
the McNutt organization, which is
credited with being opposed to Mr..
Bays. Senator Minton suggested the
compromise of leaving it to the In
diana Democratic State Committee,
but Senator VanNuyS declined.
The senior Senator and Mrs. YAM
Mugs were hosts to Senator and NJ S.
Minton at tea yesterday afternoon
in the VanNuyS' apartment. Fellow
Senators. their wives, prominent
HooSiers in Washington and diplo-
mats were guests. Senator VanNuys
is a member of the Foreign Rela-
lions committee.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-05
CITY COUNCIL SCANS
MILK DELIVERY BILL
Later Hours Are Proposed
for Winter Months.

The city council met last night
and unanimously passed four ordi-
nances, all of a routine nature.
Seven new ordinances were intro
duced.
A number of dairymen and milk
drivers were present to hear the in
PRODUCTION, by Adolph j. Fritz, of an
ordinance limiting milk deliveries
to the hours between in the morn
ing and in the afternoon during
the winter and between in the
morning and in the afternoon in
the summer. Herman L. Ridenour,
attorney for the Indianapolis Dairy
mems Association, spoke in favor of
the ordinance as a health measure.
The ordinances passed provide for
the establishing of a loading zone
in front of the Renard Linoleum
and Rug Co., % w. Georgia st; for
the purchase of supplies for City
Hospital; for the transfer of $500
in the Sanitary Board funds, and
for the distribution of the city's
share of the state gasoline tax re-
ceived Jan. 4.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-02-05
CHuCK'S IN AGAIN.
BUT HE'S NOT ANGRY
AT POLICE ANYMORE

Chuck Gin Again-Out Again
Virgins, one-time local ring war;
rior and personal foe of every po-
liceman, was arrested early today
for the eleventh time in less than
two years and spent a comfortable
night in Jail.
This time Chuck, who boasts of
victories over Tommy Gibbons and
other greats of the squared circle,
was charged with intoXication and
driving a motor vehicle while in
toxicated.
The arresting officers reported
that Chuck was docile, a contrast
to the roaring days when it would
take two squads of police and
half dozen firemen to tame the
Indianapolis mauler.
Just to prove that his feud with
police was purely friendly, Chuck
waved 80 long" to his acquaint-
ances on the force when he was
released on bond this morning.
Only yesterday, Chuck appeared
before Municipal Judges Charles
j. Karabell and was discharged on
an intOXication charge.