Assorted historical stuff:
P.K. Schuyler, pres. Federal Bridge Co., says automotive demand for roads and bridges has far exceeded capacity of government construction. "Traffic moves along the existing highways at a good speed for some five or 10 miles, then when the highway enters a congested area there is a considerable delay encountered, particularly on Sundays and holidays." Cars are now dependably capable of 60 to 80 miles per hour, "yet these speeds can be used only at infrequent intervals." Calls for more private construction, particularly of toll bridges.
Farm Board declares wheat price can't be stabilized without cuts in acreage planted; Gov. Reed of Kansas bitterly denounces administration policies, saying they "subordinate agriculture to industry." Farmers in Texas reported dumping millions of bushels of quality wheat in fields to avoid more losses on storage charges. Prices in Texas down to $.65 a bushel, well below production cost. Even large growers with cost about $.50 a bushel are not selling; everyone waiting for Grain Stabilization Corp. to support prices.
Port of New York Authority calls for proposals for construction of Manhattan approach to the Hudson River Bridge [later G.W. Bridge].
Cecille B. DeMille to make his first comedy with music, Madam Satan. Production features “a masked ball aboard a Zeppelin, and the breakup in mid-air of the giant airship, with the descent to earth of the passengers via parachutes.”
Man found guilty of “selling” liquor in exchange for stock tips - although no cash exchanged, defendant gained “measurable benefit.”
Florida population about 1.5M vs. 968,470 in 1920.
Major stocks hit new highs for the current rally; attributed to optimism on business conditions. Current seasonal slowdown hoped to be low point of the depression; market also considered technically stronger due to recent liquidation. Also some news of increasing construction activity in June and higher freight traffic for week ended June 28. Strength in major industrials, rails and utilities.
Action during day was not heavy but notable for lack of bear operations. Conservative observers still consider the market range bound and advise avoiding positions until it breaks out on either side.
Manufacturers said to be very cautious about preparing for fall and winter demand due to business uncertainty and unemployment.
PaineWebber says low interest rates are a strong force for business revival. Anticipates rally first in bond prices, than in investment stocks, then secondary stocks. Bond price rally is therefore the first signal of the general recovery.
National City Co. says Bond market outlook is good - fewer new issues and wide spread between rates on short-term paper and high-grade bonds.
Increased Italian import duties on cars not seen having a major effect on American companies; total market is $1.25M/year.
Economic news and individual company reports:
June auto production in US and Canada was about 343,000 cars and trucks vs. 441,826 in May and 567,424 in 1929. Auto executives believe conservative policy is bringing production in line with demand; dealer stocks are now about one month's sales.
Total class 1 railroads operating income for the first five months of 1930 was $307.7M vs. $457M in 1929.
Total electric production in the week ended June 28 by companies representing 70% of the industry was down 1.8% from 1929.
G.B. Everitt, pres. Montgomery Ward, announces general price cuts to "practically a prewar basis." Also new easy payment plan on orders of $25 or more.
United Fruit said to be helped by banana demand "larger than even the most optimistic projections", offsetting weakness in sugar.
“'Do you always look under your bed before you say your prayers?' asked the flapper's niece. 'No, darling ... first I say my prayers.'”
+ The Boring Stuff: