The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-10-05
ReVie7U
Highlights Of the
News During
This Week.
by FREDERICK MATSON-
Times Financial Writer


security and commodity markets in
the United States. Reports that
clash was imminent Wednesday
sent corporation shares tumbling
as much as five points on the New
York Stock Exchange Selling was
heavy in all departments and prices
suffered the worst break in Is
months.
With he first shock over, how
ever, and with news that fighting
had actually begun, the stock mar
ket pulled itself together and moved
forward. Trading was light. but
war stocks, such as aircraft issues.
chemicals and steels gained from
fractions to two points. Bonds.
both domestic and Italian, followed
the same general trend, slumping at
first and then steadying.
Commodities, principally wheat
and cotton, cnthused over the war
bulletins. A tremendous specula-
tive demand for wheat took place
IN Chicago and values we're pushed
over the dollar mark to the highest
level Of the season.
The markets response to the
African conflict was due largely to
the fact that the world already
faces a moderate scarcity in wheat
supplies.
OF local interest is the fact that
wagon wheat sold today at $1.01
a buShel in Indianapolis for
the first time in more than two
years. The last time farmers re-
CeiVed more than 81 a bushel here
was on July ID, 1888 when they
were piad S103, according to the
Acme Evans Co, large city milling
concern.
I LITIGATION of affairs Of the
4. indianapolis Water Co.. pend
ing since 1882, was adjudicated in
Federal Court yesterday when
Judge Robert c. Balt2ell fixed val
uation of the property at $21 1922
82l. He also stipulated 6 per cent
as a fair rate Of return on the in
Vestment. His findings were based
on figures submitted by Albert
Ward, master in chancery.
The case started two years ago
when the Public Service Commits
sion ordered a temporary rate adj
Justment, pending an inventory
The water company lost an inJunc-
ton suit. 1t has COntended that its
properties should be vealued at
approximately S28,00O,O 600 for rat
making purposes as against the
$22 100000 fixed by the Public Serv-
ice Commission The utility sought
a return OF between 7 and per
cent.
Atty. Gen. Philip Lutz Jr., repre-
Senting the commission, declared
the decision was a victory for the
state and city in that Judge Bait
2eil did not find the commission
rates cOnfsCatOry.
AmiCable settlement of the lease
controversy between the City Util-
tiles District and the indianapolis,
Gas Co. was indicated this week
when directors of the gas company
accepted two checks from the city
to cover interest on outstanding
bonds and income tax payments.
Acceptance of the checks meant
that default was avoided on the
semi-annual interest on the per
cent bonds of the Indianapolis
firm. Both checks had been sent
to the directors earlier, but had
been returned to the city without
comment. Newton d. Baker,
Cleveland attorney and Secretary
of War in the Wilson administra-
ton, has been retained by the In
dianapolis Gas Co. for negotiations
with the city over a new lease.
A TWO-DAY discussion of gov
L N eminent versus private lend
ing was featured at the tWenty-SeC-
ond annual convention of the
Mortgage Bankers Association Of
America which opened Wednesday
at French Lick.
Keynoting was owen M. Murray,
association president, who declared
there is no occasion for any
further extensive government lend
ing Mr.. Murray summarized re-
suits of past governmental activi-
ties in the loaning field and the
serious consequences likely to re-
suit from present activities.
The Administrations viewpoint
was presented by William I. Myers,
governor of the Farm Credit Ad-
mniStration.
One Of the most spectacular
comebackS in recent financial his
tory took place when the Van
SWeringen brothers of Cleveland
regained control of their vast
railroad empire Monday. Control
was won on bids for stocks of the
Allegheny Corp, chief holding
company of the Van Sweringen
group.
BY delivering to J. P Morgan &
Co the following day a check for
S3I2l,000 the Mid-AmeriCa Corp,
incorporated last week in Ohio,
became the owner of 81 per cent of
the common stock of Allegheny
Corp The new Van SWeringen
holding company received in return
for this sum securities with a mar
ket value of $5,902 900, as we'll as
demand notes against various hold
ing firms totaling $10,000O00 and
S13,787 900 in notes of the Van
SWeringen Corp.