Assorted historical stuff:
After strong resistance, Bethlehem Steel forced to reveal executive bonus amounts (in trial concerning suit by Eaton-Otis interests to block proposed merger of Bethlehem with Youngstown Sheet & Tube). 1929 bonus for E.G. Grace, president, was $1.624M; 1929 bonuses for six vice presidents totalled $1.432M. 1929 bonuses for remaining executives totalled about $370,000. Total bonuses for Grace since 1925 were $5.432M.
Western Electric reaches agreement with Tobis-Klangfilm on sound film patents. Should expand European exhibition market for American films (currently Warner Bros. is the only US company allowed to exhibit in Germany). Territories for sound equipment divided between the companies. American companies now face a problem with language barrier. When talkies started this wasn't important since "audiences were attracted by the novelty of sound regardless of language." Now that novelty has worn off, current plan is to produce foreign versions abroad; "a copy of the original film is sent this over to act as a guide."
Editorial: War Sec. Hurley broadcasts speech on waterway development advocating it “wherever economic justification can be shown.” This phrase is an alibi “invariably written into official programs for spending the people's money and promptly forgotten.” If honestly applied to these projects, “would reveal nine-tenths of them as what they are, plans to subsidize a little transportation out of the national treasury for the advantage of particular localities.”
Hoover signs London Naval Treaty; now awaiting ratification by Britain and Japan. Under conditions of treaty US will reach naval parity with Britain by 1936; Japan naval building will almost stop.
Chilean government cuts salaries of all public employees by 15%, also suspends "certain gratifications and rent money."
Montgomery-Ward issues 730 page fall/winter catalog; theme is "savings and thrift."
Weekly food cost for family of 4 estimated at $13.72; many staples 20%-40% below 1929.
Market opened at about the previous low levels with some further decline; increasing resistance to bear efforts as the morning progressed; rallies developed in recent trading favorites. Good news on steel encouraged bulls, as well as rumors of important operators "lining up their forces for another bullish demonstration;" rally broadened in the afternoon. Good rebounds from Monday lows in many majors. Banks and trusts higher.
Administration members reported telling Wall Street that business has turned corner, and should curve slowly upward until winter, becoming clearest in October. No forecast beyond that ventured. However, administration strenuously denies rumors of using "its influence to bring about organized support for the stock market."
Irving Trust July review says we may be entering "ultimate pit of the depression;" sees mostly bad news in June, including declines in most lines of business, lower commodity prices, stock market declines, and possible tariff reprisals. Nevertheless, advises remembering that "It is always darkest before dawn."
Sentiment improved by market support yesterday. Conservative observers still advise buying on dips and selling rallies, but if market can get above previous resistance, would be considered confirmation of uptrend and convert many observers to the bull side.
Economic news and individual company reports:
Banks reported deposit increase by $257M in past week, to $21.317B; most of money not employed; increase of $37M in loans and $82M investments.
Rail freight loadings for week ended July 12 were 915,985 cars, down 150,429 from 1929 and 108,940 from 1928, but up 123,844 from July 4 holiday week.
US Steel production in past week was almost 64% vs. 63% prev. week and 55% holiday week; industry was 57.5% vs. 57% and 48%.
Drastic curtailment cut oil production in June down to 2.506M barrels/day, lowest level since Nov. 1928. Average last Feb was 2.699M, last August 2.975M.
US/Canada June truck production was 48,667, down 15.4% from May and 50.4% from June 1929. First half 337,345, down 30.9% from 1929 but up 31.6% from 1928.
Frigidaire subsidiary of GM introduces new low-priced refrigerator for $157.50; previous lowest priced model was $182.50.
Prestone coming out with improved antifreeze for next winter; will be green for easy identification. Promises to be very profitable.
Old-Timer's Week at the Palace; a group of vaudeville favorites of the old days appearing, ranging in age from 64 to 86. Tom Harris, the oldest, is a tap dancer, shows he is up on the newest steps, “concludes by executing a few rapid steps in the old style;” “Lizzie Wilson sings the well-known German drinking song 'Das Ist Ein Schnitzelbaum,' with the aid of a chart and baton. Josephine Sabel gives an animated rendition of 'There'll Be a Hot Time in the Old Town Tonight.'” Show is being very well received.
+ The Boring Stuff: