davidaulloa/AmericanStories huggingface dataset:
Montana farmer-stockman., 1962-05-01
NI
k|||I kS!Ik||||
I y ;
:MAI
s A |
ALL CLEAN PEDIGREES
At
BOHEMIAN,
MONTANA
JUNE: ;

This is q reo good opportunity to
buy femoIes-in group-up to 20
head bred oIike offering oppor-
tunity for selection of numbers with
uniformity, not fitted, Just in good
breeding condition.
Many of the 1850 heifers will CORY
the service of outstanding sires.
Evening star., 1962-05-29
Z u. S. Advisers
Missing in Laos

VIENTIANE, Laos, May 2e
(AP).-Two United States mill
tary advisers attached to the
Laotian army at Houei Sal in
northwest Laos have been miss
ing since Sunday, an American
spokesman said today.
Fighting flared up Sunday
at that town on the border Of
Thailand when Communist
rebels overran government out
posts.
The spokesman for the
United States Military Advisory
Assistance Group said the two
Americans were with Laotian
troops at one Of the outposts
captured by the rebels.
Both Americans are nom
commissioned officers and are
members of the special forces
training and advising Laotian
troops. Their. names were with
held pending notification Of
relatives.
A spokesman in answer to
reporters questions had denied
Monday that there were any
Americans injured, killed or
missing in the fighting at Houei
Sal.
Evening star., 1962-05-29
SEC Assemblies Facts
To ExpIoin Stock Fall

Mr.. Carey and his fellow
commissioners were guarded in
their comments on the market
decline and said they were in
no position to explain the
causes.
Representative Springer Of
Illinois. ranking Republican on
the committee, wanted TO know
whether lack Of confidence In
the economic picture has
caused the stock market tC
drop"
| Mr.. Carey said he could give
no answer. He explained that
the SEC does not have q large
staff to determine why stock
markets go up or down. He
emphasized that the commits
sion's job "is to provide for a
free and fully informed market,
free from fraudulent activities.
Mr.. Springer told reporters
later that he personally was
convinced that the stock mar
ket decline could be attributed
largely to lack Of confidence
in what he called the Ken
nedy administrations "anti-
business" attitude.
Evening star., 1962-05-29

Chairman William L. Carey
Of the Securities and Exchange
Commission. told the House
Commerce Committee today
the SEC is trying to assemble
facts on who and what groups
are buying and selling" in the
current stock market crisis. He
added that the SEC expected
to disclose "some information
within two weeks.
Another SEC member, Byror
D. WoodSide, said it was possible
that selling by foreign inves'
tors might be one factor in the
markets heavy drop. He citec
the difficulty of indentifyine
individual investors but de-
clared that IAN effort will bt
made to determine the prin-
cipal sources"
Questioning about the stocE
market situation came UP al
a Committee hearing on a Sem
ate-approved reorganization
bill to permit SEC commission
ers to delegate various non-
policy making functions to SUBJ
ordinate officials.
Evening star., 1962-05-29
Terrorists Kill
Another MosIem
In Ambulance.

ALGIERS, May 9 (AP).-
European gunmen today halted
an ambulance in the heart of
the city and killed a Moslem
woman wounded in an earlier
terrorist attack.
This was the third time in
recent days that European ter
rorists killed wounded persons
en- route to hospitals.
Elsewhere in the city, three
Moslems were slain and two
were wounded by bullets of ter
rorist commandos Of the Secret
Army.
A European policeman was
kidnapped by three Moslems In
a car, presumably in retaliation
for Secret Army attacks.
The terror rate was some
what less than in recent weeks.
but there was no indication the
Secret Army was abandoning
its fight against Algerian inde-
pendence.
Evening star., 1962-05-29

firms office to see what was
happening today.
"I wish his father were well, "
said an executive-type young
man with a business journal
tucked under his arm. His
father would have told him a
few facts"
Two to three hundred persons
jammed the aisles in the
office at BIS Fifteenth street
NV. before 10 am, when the
New York Stock Exchange
opened.
Nail Biting and Stares
Grim-faced, the men and
women spectators brought
newspapers to check yeSter-
days cloSings against today's
openings. Some bit their nails.
Some smoked. Some stared
straight ahead.
To-day is really going to be
a lost day for confidence" a
Bethesda geo:ogist said. He,
however, said he was better off
than many others because Il
felt last week the market was
going down and I sold all my
speculative stock. I was here
yesterday and I talked to an
old man. He said he lest
$40, 0,0O0--S20.00O in money. Can
you imagine that?"
Kennedy only triggered it
with his attitude toward STEEL
a heavy-set man said. 81 be-
lieve it would have gone down
anyway"
Brain Trust" Criticized
An elderly man gave this ex-
PLANTATION of the drop: Nobody
knows what his CMr. Ken
nedy's) brain trust is all about,
and they're scared"
A Government employe said
the drop was bound to happen
anyway because stocks have
been too high, but 1 think it's
Governments attitude toward
big business that triggered the
whole movement.
There were few persons not /
ready to lay the blame at the |
White House door.
THE market doesn't go down
Evening star., 1962-05-29
PORTER
Continued From Pare a

Continued From Page Al
and Congress can-and prob
ably will-move with powerful
weapons to counteract the bus
ines decline before it gets
rolling
AcEosssthe-board tax cuts for
corpCratI6ns and individuals
would be the greatest SPUR to
business and the most potent
anti-rscession weapon that ex-
lists. serious talk Of this is
Incalnti1
= Whak khe stock market has
done and Is doing is returning
70 common sense realities. De-
scent nom glorious dreams Of
set-ricA quick to hard facts is
reyer Jun. Many are being
badly hurt in the market to-
day. hurt worse than they
'dreamed possible.
i But 1this is not another
1929" andif it ever shows signs
OF turning into one, we have
the brains, the know-how and
the determination to prevent 1t.
- (Hail syndieats)
Evening star., 1962-05-29
FLAMINGO FLOCK CONES TO TOWN
SHARE VOLUME
OVER 9 MILLION,
FIFTH HIGHEST

NEW YORK CAP).-The
volume Of shares traded on
the New York Stock Ex-
change yesterday was g.
350,000 shares, the fifth
greatest in the history of
the exchange and most
since 1888.
The all-time record was
16,410,030 in the market
crash of october 20, 1929.
The day before that, the
volume was 9,212,800.
Other record volumes in
clude 12,894,650 on Octo-
ber "a, 1929, 10,727,320 on
October 80, 1929, and g.
$1,000 on July 81, 1888.
The only volume in re-
cent years to approach yes
terday's was the 7T16,650
shares traded September
26, 1855, the time of for
mer President Eisenhower's
heart attack.
Evening star., 1962-05-29
Famed Pointing
Shown in Boston

BOSTON. May 20 (AP).-The
highest priced painting ever
purchased by the Boston Mu-
scum Of Fine Arts goes on dis
play today.
It is Time Ravishing Beau
ty," by the Venetian master
Giovanni Battista Tiepolo. II
was bought through a ART
dealer in New York from q
member Of the French aristoc-
racy, the museum said.
No purchase price was dis
closed. However, Museum Di-
rector Percy Rathbone said 1t
is insured for $250.000.
The painting was never been
viewed before in the United
States.
Evening star., 1962-05-29
ECONOMY
Continued From Page Al

Continued From Page Al
ing that "our economy Is going
to continue to move upwards.
Asked if there was any dis
cussion of lowering the Federal
Reserve Boards present re-
quirement that investors buy
ing stocks on margin must put
up 70 per cent Of the price, Mr..
Dillon said I'VE did not get
into that" because it is entirely
a matter for the Federal Re-
serve Board.
He added that the 10 per
cent margin requirement only
effects new stock purchases
and said probably few If any
margin calls" were being made
now because Of the Federal Re-
serve Board rule.
In response to other ques-
tions, Secretary Dillon said he
did not see anything that the
administration can or should
do to bolster the stock market
Evening star., 1962-05-29

forever like it doesn't go up
forever" a heavy-set woman
remarked with a shrug of the
shoulders. attributing it all to
fate.
This is the second most
active market we ever had"
Francis Hunter, vice president
and manager Of the brokerage
firm said. "It'S not quite as bad
as October, 1929" he added.
Nobody knows the answer
but people are hurting" he
said.
Spectators Hit
At another firm, Ferris &
Co., GIL Fifteenth street NV,
q broker, Mrs. Gail Winslow,
gave her view of the stock
drop: II don't think it's the
people with money who are
panicking. It's the little guy.
ITS the people who invested
in speculative stock who are
panicked out of the market"
Mrs. Winslow said a couple
telephoned her last night and
told her: I'VE haven't much
money but we have faith in the
United States and we want to
buy" And they did, she said.
When the panic is over
there will be buying again"
she continued. THE country's
not going to pot yet.
Mr.. Kennedy just happened
to be in the White House. 1t
could have been anyone"
Optimists Persist
Some people were optimistic |
about stocks rallying again.
One young man, who had never |
before bought stock, chose to-
day to open an account.
This seems to be a good |
time to break in" he said "I'Il
take a chance. I have faith it's
going to go high again."
This Is the time to buy, not !
to sell, no matter what most
people think" another man
said.
Evening star., 1962-05-29

could have q negative effect.
Margin regulat ations, which can
be changed at viii by the board,
determine the down payment
an investor must make when
he buys stock. Since mid-1960,
.a 70 per cent cash down pay
ment has been required. Some
market experts have suggested
this be lowered to so per cent.
The Reserve Board always
has taken the position that
changes In margin requirements
are dictated by changing credit
conditions rather than the level
Of stock prices.
Would Lift Market
A lowering Of margins, ac-
cording to proponents, would
give the market q lift by sig
nifying Government willing
ness to take positive action
to forestall q further slide in
stock prices. Also, they con-
tend lower margins would stim-
ulate stock purchases by allow
ing greater use Of borrowed
money In the market.
Another group that opposes
lower margins claims a cut
would signal Government con-
Germ about price movements
and might prompt additional
selling. They also argue that
Evening star., 1962-05-29
u. S. Loan Builds
Road TO Paraguay

AS UNCION, Paraguay
Construction of major high
ways to link Paraguay with
Brazil, Bolivia, and Argentina
is well along.
The road to Argentina is
being hard-surfaced, and a road
to Brazil is to be surfaced this
year with the aid of q United
States loan.
Evening star., 1962-05-29

dropped by more than 80 per
cent, pushing investors into
selling to raise cash to pay off
margin loans. If margin re-
quirements were eased, there
would be less pressure for SELL
ing and SO. perhaps. some firm
ing Of prices. r1
Subsidiary Factor
But experts agree that mar
gin requirements are only 9
subsidiary factor in depressing
the stock market or starting an
upswing. e
Mr.. Heller said the outlook
for business activity and prof.
its provides no rational basis
for the markets long, sharp
slide. Business is good and the
outlook is good, he said, add
ing: n
$50 far there is a large diver
gence between the stock market
and the economy. and the gap
is getting wider" as stock prices
continue to fall.
He conceded that the mar
ket's decline may result partly
from lack of confidence in the
administration on the part Of
businessmen and investors. At
tempts to figure out this fac
tor, he said "go beyond analy-
sis to psychoanalysis."
Any lack of confidence in the
administration, he continued, is
based on neutrality-suspicious.
and misunderstanding" of pol
icy.
He said some businessmen
and investors apparently do
not understand that the admin
istration is trying to increase
profits. not to hold them down.
The business community has
"over-interpreted the steel
price episode" Mr.. Heller said,
referring to the Presidents &C
ton last month in forcing the
steel industry to cancel price
increases.
Despite protestations to the
contrary, many businessmen
apparently have concluded that
the steel price fight reflected a
determination to hold profits
down and unmasked the ad-
ministration as hostile to busi-
ness.
The administration has tried
to show it is pro-business
through speeches, statements
and tax proposals.
Revised guidelines for depre-
citation allowances, scheduled
for this summer, are expected
to save business 81, $50, ,000, 600
in taxes annually. The invest
ment tax credit, now pending
in the Senate, would save an
additional $1.4 billion a year
for industry by subsidizing ex-
penditures for new equipment,
View of Initiation
Mr.. Heller said the one ra-
tional factor in the stock de-
cline. at first, was the growing
belief that Imitation no longer
is a way of ife."
Investors decided that infla-
ton has been curbed. he said
and they therefore concluded
that it was unwise to pay an
''inflationary premium" for
stocks.
Stocks traditionally are pur-
chased partly as protection
against initiation, on the theory
that market prices rise in pace
with initiation. Through the in
flationary years, stocks were
bid up to prices that were far
out of line with earnings.
During the current decline,
the hardest-hit stocks have
been those with exceptionally
high ratios Of prices to earn
ings.
Evening star., 1962-05-29

beyond striving to make clear
to investors that the Nations
economy remains sound and
moving upward.
One Of the most effective
things that could be done. how
ever, he said, for Congress to
speed up enactment Of the tax
reform bill providing a tax
credit for investment in new
plants and new equipment.
He added that such action
would be a stimulant to busi-
ness and help move the econ
omy ahead even faster.
Mr.. Dillon discounted some
speculation that the Presidents
action in forcing cancellation
OF announced steel price in
creases a few weeks ago had
triggered the stock market
break.
He said it Is clear that the
Wall Street decline started be-
fore the steel price action.
The steel labor settlement
viewed as a whole, however,
holding the price line and keep
ing wage increases in line with
productivity, may have brought
home the fact that this admin
istration is following a policy
Of price stability, the Treasury
Secretary said.
Sees No Serious Effect
Secretary Hodges minimized
the dangers Of the stock mar
ket decline. saying: II can't
see how this could have any
real, serious effect" on the
basic economy.
He said the markets decline
mostly effects individual stock
holders. not companies. There
fore, he said, he would expect
companies to go ahead with
investment and expansion
plans if they anticipate profit
able business.
Acknowledging that the bust.
ness community'S concern
about administration policie.
is a factor in the stock mar
ket's drop, Mr.. Hodges said
There ought to be and there
have been reassuring words or
profits"
1t was understood that tn,
President is keeping in cloSt
touch with the market situa.
ton, paying special attention
to the kind of selling that take.
place.
If the market deteriorate.
much more, Mr.. Kennedy may
issue a special statement in ar
effort to buck up confidence.
! Prices Of many stocks have
Evening star., 1962-05-29
Many in Broker Offices
Blame Dropon Kennedy
By ROBERTA HORNIG
Star staff Writer

Many of those who walked into the offices Merrill Lynch
Pierce Fenner Smith today blamed President Kennedy
the stock market drop.
You can't the steel business and call businessmen
without having hurt" grayhaired shrt-sleeved
commented he watched the big board
Evening star., 1962-05-29

easier credit might be used to
finance short selling" - the
sale Of borrowed shares by
people who hope to buy them
back later at a lower price and
pocket the difference. Short
selling normally depreSses stock
prices.
Mass buying Of stocks on
credit was one of the factors
aggravating the 1929 market
collapse. AS prices dropped.
lenders called on investors to
put up more cash to protect
loans that financed specula-
tive stock purchases. Inves-
tors who could not raise the
needed money saw lenders sell
their stocks, which had been
posted as collateral for loans.
No 1929 Curbs
In 1929, there were no for
NAL margin requirements and
stocks could be purchased with
a downpayment of 10 to Is per
cent cash. With the imposition
OF Federal margin controls in
1884, the number of investors
using credit in the market
dropped sharply. And the ra-
ito OF cash to credit in indi-
vidual transactions was in
creased, which reduced the risk
Of a margin loan growing sour.
The sharp sell-off of recent
days has led to an undeter-
mined number of margin
calls"-demands for more cash
to protect loans-and lenders
have been selling some stocks
posted as collateral when in
vestors have been unable to
meet these calls.
If margin Is at 20 per cent,
the man who busy a 500 stock
can put up $40 in cash and
cover the balance through a
loan from a broker or bank.
No Reserve Rule
There is a widespread mis-
conception that If the price
should drop below $40, the
shareholder would be asked to
put up enough cash to match
the difference between $40 and
the current price. Actually,
the Reserve Board has no regu-
lation covering such a situation.
The bank or broker making the
loan can decide in each
case when or if to make a
margin call.
Under the rules of the New
York Stock Exchange, the 500
stock used in the example above
could drop below $40 before a
broker would be required to
make a margin call. The Ex-
change rule is that a call must
be made If the amount the in
vestor would have left after
selling his stock and paying off
the margin loan represents less
than Is per cent Of the stocks
current value.
In the example cited, the
loan on each share would be
$50. Therefore, If the stock
we're selling at $40, liquidation
Of the loan through sale Of the
stock would leave the investor
with $40. And $40 would be
exactly Is per cent Of the
stocks current value.
In practice, a broker might
well make a margin call before
the stock fell below $40. But
ne would not be likely to do so
simply because the stock fell
below $40.
Alien Internes Up
CHICAGO.-The number of
foreign doctors training in the
United States rose this year to
} ,935, an increase Of 5 per cent
over last year. Foreign doctors
now fill 26 per cent of the
1852 internships and resi-
1encies in the United States.
Evening star., 1962-05-29
Federal Reserve Boord
Silent on Margin Curbs
By FRANK CORNER
Associated Press staff Writsr

The Federal Reserve Board has given no sign that it will
heed ugngs by Wall Streetes stock market credit
crbs be relaxed in effort to price retreat
Board members maintained official silence on thu
subject today but close the board took pains Ia
point out that reduction in margin" Requirements
Evening star., 1962-05-29
Fall in London
Steepest Since
Munich Crisis

AINOONs May ~ SAtJ-
The London Stock Exhange
suffered its steepest fall today
since the Munich crisis Of Sep
tember, 1898.
In the wake Of yesterdays
dramatic decline on Wall
Street, similar seIloffs were
recorded in Paris. Zurich and
Frankfurt in Europe, and in
Japan.
Everywhere the story was the
same. Low-yield growth stocks
and favorites Of American in
Vestors took the heaviest ham
mering.
The decline In Paris aver
aged 8 to 4 per cent, with some
Of the hardest hit shares 60
ing down as much as z or 8
per cent.
In London q midday rally
failed to last and the decline
continued. Such international
favorites as Unilever and Phil
lips Lamps were 10 shillings
($1.40) or so lower.
Labor Troubles Added
Dollar stocks were down eJk
points whit Ford at 148. La
Dor troubles helped depress
Ford and other automobile
companies.
Gus came under pressure
Gold shares, which were strong
last week. went down today
along with tin and copper is
sues. @
Hundreds Of millions of
pounds sterling were wiped off
the value Of shares in London.
Prices gyrated wildly on the
major exchanges Of Switzer-
land and West Germany.
The Financial Times index
OF British industrial common
shares plummeted 1874 points
in two hours to 1868, compared
with the record Of 1857 on May
Is, 1861.
Bargain hunters made their
appearance on the London Ex.I
change late in the morning. :.
but their activities provided
only a brief lull In the slide.
Selling again developed and
some Of the nations blue chips
were hard hit.
Some Recovery In Zurich
The Zurich Stock Exchange
had its biggest drop since the
1929 crash. but there was a
substantial recovery at midday.
Union Bank Of Switzerland
dropped from 4,400 francs
($1,019) per share to 1890
francs ($672), but recovered to
$500 ($81D.
Swiss government officials
and financiers said they were
not gravely concerned by the
drop in what they called an
"overvalued market"
At Frankfurt, German stock
prices, which have had a steady
decline since the start Of the
year, dropped sharply.
Volkswagen, which dropped
yesterday to a new low of
$50, was bid between sos
and $40. - Ass
sTokyo's stock Exchange
closed with a moderate but
broad decline after an early
selling rush. The Dow Jones
average Of 225 selected stocks
fell 17.76 yen (4.9 centsl from
Monday to 1878 80 ven tss.e21..
Toronto Prices Drop
TORONTO. May 70 fAPl -
Waves Of selling knocked prices
down on Canadian stock mar.
kets today. The falloff came
with national elections only
three weeks away. ~
The industrial index in To-
ronto hit its lowest point since
February, 1861. Trading was
heavy. 90 "a
Bell Telephone dropped s., Is
to a new 1862 low Of e1B rs.
Royal Bank was down So to.
$71.50, International Nickel
$1.50. Falconhridge SIS and.
Walker Gooderham $2-ail to
new low prices for the year.
In Montreal, selling pressure
also struck the Montreal and
Canadian exchanges.