davidaulloa/AmericanStories huggingface dataset:
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
INVESTORS SHY
OF MUNICIPALS;
BUY U. S. BONDS
Analysts Unable to Explain
HeSitancy of Large
Institutions.
BY CHARLES I'll. HUFF
Times Special Writer


NEW YORK, April 11.-Investors
appear to be drawing a peculiarly
sharp line of discrimination be-
tween United States government
bonds and the top grade of securi-
ties in the municipal market.
The immediate effect of that par
TALLY is that while the more &C
tive issues in the Federal list are
being pushed ahead to new peak
prices, the municipal bond market
is virtually at standstill, because
of an apparently unbridgeable gap
between buyers and sellers.
Believe in High Price Levels
It appears that sellers in the mu-
nicipal market, which means largely
dealers, have unshakable faith in
the high price levels attained dur
ing more than a year of steady
narrowing of yields and coupon
rates, and are willing to shade prices
in order to promote business.
The usual run of customers in the
municipal field, comprising mainly
institutions, on the other hand, are
reported to be giving weight to one
or more distributing elements, to
such extent that the available sup
ply of state and municipal bonds
does not interest them unless en-
bellished by something on the order
Of a price concession. In the per-
verse absence of concessions, the
potential buyers continue as only
potential, according to report.
Apprehension Cited
Explanatory of institutional aloof-
ness in the market for municipal
bonds, it is pointed out that the
uncertainty of the European sit
uation and the unsettled domestic
fiscal problem are direct causes Of
investor hesitancy.
These same factors, however, Or
dinarily would influence investors in
the Federal bond market, yet they
seem to be disregarded in that field
if the course of prices is to be &C
cepted as conclusive evidence.
These same factors, incidentally,
we're reported no more than a week
ago to be unsettling the investor
mind in the Federal bond market,
in reflection of which prices set
tied back somewhat and activity
tapered off considerably. What
ever may have been the extent of
such apprehension in the Federal
bond market, it appears to have
BEEN quickly dissipated.
Yield Levels Close.
A somewhat different explanation
of prolonged apathy toward the
blue-ribbon category of municipal
bonds is heard in some quarters, the
gist of which is that institutions
believe the municipal issues have
crowded too close to Federal Secu-
rites on the scale of yields.
Municipals, as a matter of fact,
have had to crowd the heels of Fed
eral securities, if they were to main
tain any sort of discernible lead over
highest grade corporates, in the
unanimous procession toward dwin-
ding yields The whole range of
yields in the high-grade investment
market has become so crowded,
analytical observers point out, that
the natural investment trend is
toward Federal bonds, which still
retain first position, next to actual
cash, as strictly an asset item.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
CAR FIRM EARNS FIRST
PROFIT IN FIVE YEARS
White Motor Co. Deliveries Increase
Sharply in Initial Quarter.

CLEVELAND, April II. - 1.-THE
White Motor Co. is currently oper-
ating on a profitable basis for the
first time in five years." Robert F..
Black, president, announced to
stockholders today.
Total deliveries of trucks and
BUSES in the first quarter of 1886
were 2483 as compared with 1851 in
1885, or an increase of 961s per cent.
Deliveries in March were greater
than any single month since 1927.
Orders for BUSES in March were the
largest in the company's history.
For the year ended Dec. 81, 1895,
the company and its subsidiaries
had a net loss of $2,911, 736, which
was after charges of $647 ,312 for de-
probation, S409,951 for amortization
of dies, etc.. and $445,732 write-down
OF inventory. The company's bal
ance sheet shows cash on hand of
S1,757 POI at the year-end while cur
rent assets totaled $13,771, 1893, and
current liabilities amounted to
S2,l39,854, which gave working CAPT.
tai of 11,631,744.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
Chicago Grain Futures
On Commission R0lU


Quotations below subject to change are
average wholesale prices being offered to
buyers by local commission dealersl
FRUIT - Strawberries; Louisiana "a
pit. crate, $sas.25. Pears-Washington
esr nS zoe PERSIAN seediess doaS si 4sc.
Delicious Clancy Baskets, sails; Jonathans
Eist tssosl, $3.50. Grapefruit~Texas seed
less ts4s-sosl. 81. Pineapples-t24s) crate.
VEGETABLES Artichoke. California
Soz) M Beans ne. TounS sssngs
Sss s5ss sSs c 1g9 n , CAB
81 TexSs os dol erate, 81 g. e cs
flower. Californis tl2s crate), s2 Celery
Florida washed and trimmed tdozl asa
sss 5sTds s S. docs los ssc
ern busheD, Sc. Esq piant--Fiorida Idoz.)
$3.50. Kale-t Virginia bushen. 75s. Let
tuce-Iceberg. Arizona !best IS, $50. ss.75;
E O Sm doa9 SSss e peppsrs lo
doz., soc. Mint = Hothogse tdoE.l 7sc.
half crate. sl.40. onions-Indiana yellow
low. 5o-ib, bag. 81. Parsley-southern
grown grow Washed. SSshel St: half-Sussei aS sOe,
Maine Green Mountains. IOg-lb bag. s2,2S:
Triumph. fo0-lb bag. $50: idaho Russets,
l00-ib bag. s22s: Idaho baskets, 70s box
$3.50; New Florida Triumphs, 50-lb bag
x2.7S: Sweet Potatoes-Tennessee Nancy
Halls. hampers. si.35. Radishes Home
grown buttons. doz., 656Tsc; white. soc.
Rhubarh dollhouse, bunch, soc. Ruta-
bagas-Northern 50-lb. bag. si25. Sage
.-Doz., 4sc. shallots-Louisians. doz.. s5c.
New. bulk Texas. bu., sii5. Tomatoes
Spinash-New Texas. hu. 81. Turnips-
Repacked. l0-lb. box. SITS.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11

prise, agitation of needless indus
trial strife, dislocation of markets
for goods and crops, and the heap
ing of still further burdens of taxes
and public debt upon the backs Of
those already straining to make
ends meet"
The Chamber of Commerce presi-
dent commended that national well
fare depends upon the successful
carrying on of business.
Business Is Not Perfect"
'This is the thing which seems
to be forgotten by those who stand
on the sidelines and criticise," he
said. Business is not perfect. Far
from it. But also, as in any other
field embracing millions of persons,
there have been mistakes of knowl-
edge or of judgment far more often
than of cunning design or of call
lous disregard of the rights of
others"
Mr.. Sibley charged that attacks
upon business have been under
taken ito give some political party
momentary advantage; to enable
some office seeker to gain publicity
as an embattled friend of the peo-
Pile; to enable some government
bureau to invent a new duty by
which to perpetuate its existence
and thus strengthen and enlarge its
grip upon the public treasury"
Flags Political Exploitation
He charged that there has been a
systematic effort to create the
illusion that business men are hard
hearted, deaf to the appeals of per-
sons in distress, and bitterly OPP
posed to their being aided by public
funds"
Nothing could be further from
the truth" he said. Steadily
through the depression, essential
relief operations have been financed
by funds forthcoming largely from
business sources, either in the form
of contributions to community
chests, advance payment of taxes
to state and local governments, or
large-scale lending to the Federal
government through purchase of its
bonds.
He urged business men to "set
themselves resolutely against po-
litical exploitation of business, by
any party, by any candidate, by any
campaigner."
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
ADMINISTRATION
POLICY LAUDED
BY ECONOMIST
Budget Must Be Balanced
Upward, David CoyIe
Declares.
BY RUTH FINNEY
Times Special Writer

WASHINGTON, April Victory
for the Liberty League IN the 1886
election, with a resumption of the
unlimited growth of business debt,
would necessarily lead to a collapse
of the American economic system, y
David Cushman Coyle, engineer and
economist, asserts in the current
Scribners Magazine.
I'VE have apparently only two
choices" he says in writing Map
Of the New Deal"
IF the New Deal can be made to
succeed, we shall use the Federal
sovereignty to drive back and hold
in check the predatory rackets of
the upper and under worlds, pro-
tecting for ourselves an area in
which We may enjoy reasonable
degree of freedom.
"Or or the other hand, the Lib
erty League and the National Asso-
citation of Manufacturers may estab-
lish firmly the freedom of predatory
financial overlords at the expense
of the people in general.
New Deal Began With Hoover
after failing to establish a stable
prosperity the Liberty Leaguerers
would be forced to resort to increas-
ingly violent means of suppression
or else to foreign war, leading by
natural stages to an explosion of the
people, beyond which prediction is
futile. Similar events have occurred
abroad"
The New Deal began with Mr..
Hoover, Mr.. Coyle says, when he set
up the RFC to stop the business
cycle.
1.-THE tried business men of the
National Association of Manufac-
turers,' he writes, "are apt to forget
that only the RFC saved them from
condition of terror, when million
aires in Newport had their yachts
loaded with gold, ready to flee at
the crack of the revolution. The
business world can not operate ex-
cept by Federal support as the tories
once knew but have forgotten. Mr..
Roosevelt had to take over a pros
trate country and set it on its feet
and he or any other President must
carry on"
Tax Increase Seen
Speaking of the national devotion
to the idea of balancing the budget
downward, Mr.. Coye said: 1.-THE Ad-
ministration has had to talk about
budget balancing although, of
course, it could not risk destroying
the nation by seriously trying to cut
off spending. Even as late as Dec,
1885, the Gallup poll showed the
chief demands of the people to be
employment and economy-like a
girl who asks only two blessings, I'M
limited candy and slender figure.
"Of course, the budget will have
to be balanced but not at the ex-
pense Of the unemployed. The only
way to balance the budget is up
ward :. the income taxes will have
to be increased until in good times
they will carry more than the ex-
penditures. But first the national
income must be brought up to a
point where the people can pay
taxes, and that means running q
temporary deficit"
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
BANK ACTION IS
HELD UNS0UND
National Housing Act Hit by
Mortgage Group
President.
Times Specia.

4 WtbS GpGCtU'
CHICAGO, April 1.-THE coun-
try's banks are being forced into an
unsound investment policy under
the operations of Title II of the Ma
tional Housing Act that they would
not willingly pursue, l.. A. Mclean,
president of the Mortgage Bankers
Association of America declared
today, in a special communication
to the associations members.
He pointed out that 10 per cent
of all FILA insured mortgages were
handled by banks and trust COM
panies, of which Al per cent were
taken by national banks alone.
Our association has always con-
tended that commercial banks
ought not to fill their investment
portfolios with mortgages unliquid
except for rediscount privileges, for
the principal reason that few of
them have the trained personnel
necessary to properly appraise mort
cages and surround them with the
necessary safeguards" Mr.. Mclean
said.
Yet under the operations of the
FILA this is exactly what is being
done in many respects. At the
same time the FILA, the govern
ment agency that has experienced
more periods of transition and I'M
certainty than any other, again
enters a period in which it's future
is very clouded and insure.
One faction is advocating that
the government appropriate several
hundred million dollars for direct
loans on second mortgages on low
cost houses. Another faction is
advocating that the FILA extend
the insurance coverage to 80 per
cent for all houses costing $4,000
and over. Such proposals are en-
oirely urlsound."
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11


also have special uses in steel al
Toys for special purposes.
Were it not for small pellets of
barium which combine stray gases
in vacuum tubes, radio commune
cations, talking pictures and other
functional devices of the vacuum
tube would revert to crudity. Bar
ium is also alleged with nickel for
spark plug wire.
Caesium and rubidium, which are
closely related, are very sensitive
to light and therefore serve as the
"retina" in electric eyes, or photo
electric cells.
Columbian for Steel
Being radioactive, thorium is
used in tungsten wire filaments in
electric lights and for coating cleo
trodes in vacuum tubes. It holds
down the grain size in this finely
spun tungsten wire.
The use of columbian in refining
stainless steelS is new Develop
ment of large commercial impor-
lance. 1t is used mainly in the
principal commercial grade of
stainless steel, which is an alloy of
Is per cent chromium and s per
cent nickel, Much of it also goes
into the lower chrome steels which
the oil industry buys in heavy VOL
ume.
Chromium is considereda coming
metal. It makes for a cleaner
steel through its ability to take out
impurities in the refining.
Tantalum has singular resist
ance to special acids and virulent
chemicals which attack most metals.
This makes it valuable in special
alloys for chemical processes. Tan
talum carbide, being one of the
hardest of substances, is used in
speed machine tools because of it's
hardness and cutting edges while
red hot. This is also true of titani-
UNI and tungsten carbide.
Calcium Considered Rare
Coming from ordinary borax, bo-
ron is rare only as to usage. So
extremely hard is boron that it is
used as an abrasive in grinding
wheels.
While calcium is one of the COM
lnoneSt of all elements, whether in
bone, milk or limestone, it is con-
sidersd rare in the elemental me-
tallic state and costs $125 a pound.
Tt is valued in the refining of steel,
copper and lead.
Because of its very low melting
point gallium is used as a substitute
for mercury in special thermom-
eters. 1t may have use in fusible
alloys, but today its value is pri-
marily scientific.
Other rare metals of highly Spe-
cialized use include thallium, in
dunn, germanium and rhenium.
Figuring prominently in research
es to adapt rare metals to CONNER
,ial usage are the Union Carbide
and Carbon Corp. and the Fansteel
Metallurgical Corp, near Chicago.
The Titanium Alloy Manufacturing
Co. is the leading sponsor of tita-
mum alloys.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
DINNER MEETING Is HELD
Mallory & Co. Executives, Workers
Convene at Antlers.

A dinner meeting of factory ex-
atutives and all men employed in
the P. r. Mallory & Co. apprentice
training course was held Wednesday
at the Antlers. Fred Boyes, assist
ant factory manager; T. R. john
son. chief tool designer, and E. E.
Green, vice president of Technical
High School, were the principal
speakers.
The apprentice course was start
ed at the Mallory company several
months ago to train skilled me-
chanics in two lines, tool and die
making and automatic screw ma
chine operation. There are now ten
men following the three-year
course.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
THURMAN BLUE JOINS
CITY INVESTMENT FIRM
L. r. Burke & Co. Makes Addition
to Executive Staff.

Thurman Blue, Hammond, Ind.
has become associated with the firm
OF T. P. Burke g. Co., indianapolis
investment house, in an executive
capacity, it was announced today.
MIR. Blue has been identified with
the investment business for several
years with national organizations.
and most recently had jurisdiction
over Northern Indiana territory for
tne selected Investments Co. of
Chicago.
T. P. Burke g. Co. is to move it's
present offices located in the Circle
Tower to larger quarters in the
Merchants Bank Building on or
about May l. In line with the en-
larged facilities of the company it
was likewise necessary to increase
the personnel to continue the high
standard of service, Mr.. Burke said.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
HUDSON SALES HIGHER
First Quarter Volume at 29,7s0 Cars,
Best Since 1890.
Times Special

=
CHICAGO, April 11.-Retail sales
OF the Hudson Motor Car Co. for the
nrst quarter of the current year
amounted to 29,730 units, breaking
all decords for the company since
1880, William R. Travy, vice pres
dent in charge of sales, announced
today.
Sales of Hudson and Terraplane
cars during the week ended April 4
increased by approximately SO per
cent over the corresponding 1885
period, Mr.. Tracy stated. For the
last consecutive seven weeks each
period has shown a substantial gain
over the preceding week.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
New Business Books
Available at Library

The following new business
books are now available at the
business branch of the Indian
apolis Public Library:
LIVESTOCK UNDER THE AAA. by
d. A. Fitzgeraid-A study of the live
stock program of the AAA well IL
Illustrates the difficulties and per-
cussionS, in agriculture alone, of at
tempts at economic planning.
REX COLE ON SALESMANSHIP,
by Rex Cole and E. D. Frazer-Per-
haps the salesman is not as pictur-
esque as those men who trekked
across the country in their covered
wagons but those who have the urge
to pioneer can break their way into
virgin territory and boundless riches.
HOW TO DRAW CARTOONS Sue
CESSFULLY. by Carl Anderson-The
creator of Henry of Saturday Eve
ming Post fame, tells others how to
do it.
THE RECRUITING PROCESS, by
The Insurance Research and Review
Service, Indianapolis-The technique
of finding new men-contacting them
establishing selection standards
presenting the case for life insur-
ance as a life work.
PHOTOGRAPHIC ENLARGING, by
Franklin I. Jordan-A book primari-
ly for amateurs.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11

QCllNo OOU, lUO,
100000. That Is indeed an inter-
esting figure.
The bank then draws from this
the conclusion that the Treasury
has lost no revenue from the fail
ure Of corporations to distribute
earnings because all and more of
the earnings have been actually
distributed.
But little examination of the
facts will show that this is not
true.
EIRST of all, the Presidents
= claim is that corporations by
failing to distribute earnings de-
prive the government of taxes.
This happens this way. The corpo-
ration, of course, pays taxes on all
its earnings. Let us suppose it
earns $1,0OO,000.
1t pays the normal tax on that.
1t distributes 81 900, 900 to it's stock
holders in dividends. They pay no
normal tax on that since the tax
has been paid at the source. But
the $1,000,000 must be added in to
their incomes when calculating the
surtax. If the corporation does not
distribute the $1,000,O00, but keeps
1t as surplus, this surtax will be
lost.
Next we must keep in mind this
fact. The earnings in question COW
cred Is years. But there were four
of those years when there were
no net earnings-whent the corpora
tions had losses-and nine years of
profit. In the nine years of profit,
the total net earnings were $4,000
100000
In the four years of loss the
losses were $11 ,000.000,000. In the
nine years Of profits, the net earn
ing were ,000,000,000. The divi-
dends were $39, 100000, which
indicates that there we're $12,900,-
100000 in earnings not distributed.
THIS means that in those years
Il the government failed to COL
lect surfaces on $4,000, 100000. 1t
is fair to assume that the govern
ment lost at least over 100000, 900
in taxes on this.
However, when from 1881 to 1888
the corporations began to have
deficits, they continued paying
dividends. And they paid out all
of this undistributed dividend plus
several billions of capital. This
is true.
But the earnings were withheld
from distribution at time when
incomes were very high and they
we're paid out at time when in
comes were very low. In other
words. that 2,900,000,000 of I'M
distributed earnings, had it been
distributed from 1923 to 1929,
would have been piled on top of
greatly swollen incomes and the
surtax would have been high.
When il was distributed in 1881
to 1888 1t went to people whose
incomes were very low because Of
the depression, whose net incomes
in fact were wiped out. Hence it
Is doubtful If very much of this
was subject to surtaxes when &C
tually paid.
Copyright. 1885. by NEA Service, Incl
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
Produce Markets
iRsprIntea From Late Times YESTERDAY,

Reprinted From Late Times Yesterday
The prices quoted are paid for stock
FRthered IN the country. while delivered
IL indianapolis the price Is cent higher.
Hkayy breed hens. Ice; Leghorn breed
hens, l4c. LeghoTn springers. lac: old
Et4gs, isc; old cocks. lac. Ducks. white. S
1nf. and over, lie; geese. full feathered
al Slxes. O.: all guineas Ia lbs and I'M
lie: NO. strictly fresh eggs. loss on. flc:
fH5iYtr ~ Indianapolis. 1Sc. Each full
stzs must weigh % lbs gross. . deduction
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
OUTPUT IS UP
Edison Institute Reports Contra
Seasonal Gain in Week.
Times Special

IWtS Np6cfuT
NEW YORK, April 11-Electricity
production in the week ended April
4 totaled 1,916,486,0O0 kilowatt
hours, the largest for any week since
Feb. %, and 49,393,000 ,ailowatts
over the preceding week, the Edison
Electric Institute reporsed today.
The total was 127 per cent over
the corresponding 1885 week, the
largest percentage advance over
year recorded this year. The gain
was contra seasonal, declines hav-
ing occurred in the preceding seven
years.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
SIbLEY FAILS (
EXACCERATIONS
OF POLITICIANS
Chamber Head DenounCes
Selfish Attacks on
Business.
BIZ United Press

By United Press
WASHINGTON, April 11.-Harper
Sibley, president of the United
States Chamber of Commerce, to-
day reiterated his charge that BUSH
ness had become handy whipping
boy of politics." and demanded ces-
sation of misrepresentation and
exaggerations designed to serve
passing political ends"
Mr.. Sibley contended in a radio
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
MONTGOMERY WARD
MARCH SALES Squirt
Mail Order House Reports Gains of
8 Per Cent Over 1885.

Times Special
CHICAGO, April 11.-March sales
of Montgomery Ward g. Co., re-
ported today, amounted to $24,844,-
sos, the largest total for that
month in the company's history ard
an increase of 9 per cent over last
years total, the previous record
high.
The company reported sales ag-
gregating $17,854,609 during Feb
ruary, a decrease of 3 per cent be-
low the 1885 month. For the two
months ended March 81 sales
amounted to S42,699, 205, compared
with $40,687,975 in the 1885 period
an increase of 40 per cent.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
Trends
Flynn Challenges
National City's
Proposition.
by JOHN T. FLYNN.

NEW YORK, April 1.-THE Ma
= tional City Bank has pro-
duced some figures to show that
corporations do not have those
SURPRISES which the President is
trying to tax. The figures are ex-
tremely interesting, but they hardly
prove the proposition which the
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11
DECLARES DIVIDEND

NEW YORK, April 11.-Directors
Of Dividend Shares. Inc. have de-
clared a dividend of az cents a
share. payable May / to stockhold-
ers OF record April Is, 1896. In the
previous quarter a payment of ~
cents a share was made.
The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1936-04-11

pdHkS StLS OuL
to demonstrate.
The bank has
compiled t h e
net income Of
all the corpora
tions in the
United S t a t es
from 1921 to
1888. 1t was
$41,000,0 5000.
Now how much
OF this net profit
remained un-
distributed a t
the end of 1888?
The bank shows
that in the same
time these cor
porations dis
tributed in divi-
dendS $50 TOO