Assorted historical stuff:
Canadian railway board reports on 1,791 rail crossing accidents caused by “inexplicable negligence.” Of these, 77 drivers drove under crossing gates while they were being lowered; one left his car and raised the gates after they had been lowered; 69 drove into the side of moving trains; 43 drove into trains that were standing still; 8 used the railway tracks as a highway; one stopped on the tracks and fell asleep; one stopped his wagon in path of approaching train to adjust load.
Argentina under military junta; Gen. Iriburu announces order reestablished, legal govt. to be set up as soon as possible, international obligations to be honored.
South American bond experts approve of new group in power in Argentina; believe “corruption, waste, and incompetence in government affairs should vanish promptly if,” as result of upcoming election, a member of the Uriburu group is placed in power.
AFL Pres. W. Green decries conditions in beet fields of Colorado, Nebraska; children 6 to 15 years old work 9-16 hours/day for yearly wage of $98.90-$197.80. Also criticizes plans for compulsory unemployment insurance as “dole” system, favors voluntary industry funds, shorter work day instead of layoffs.
Pres. Hoover urged to simplify procedure for farmers in drought areas to get 50% discount on shipping feed; getting permits required takes too much time.
Police in Peking form “elopement squad” to watch rail stations for young couples running away to be married, following series of elopments involving prominent families. Chinese young couples reported increasingly rebellious against practice of marriages arranged by parents.
M. McCavran, Pres. American Assoc. of Cosmeticians and Hair Artists, estimates there are about 40M women in US; total annual usage of make-ups and creams is 316M pounds, or about 7.9 pounds/woman annually, or about 348 pounds/woman between ages of 16 and 60.
Many buy orders accumulated over weekend; rally went ahead vigorously Monday morning, with some of the largest blocks in weeks appearing on the tape. Major industrials including GM, GE, US Steel, American Can, Allied Chemical, Westinghouse, hit new rally highs; rails and utilities also strong. Profit taking became active about noon, halting the rally; however, volume again dried up on the afternoon setback. This increased expectation of continued strength, and good buying returned in final hour. Bond market quieter; rail and utility bonds strong, Dow bond avg. unchanged; Argentina bonds weak; US govts. inactive.
Dow considered to have given “highly bullish signal” by closing Saturday above the 241 resistance level where selling was repeatedly encountered in summer. This “reflected powerful buying based on growing optimism regarding autumn trade prospects.” Major investors reported to have participated in buying after being “persistently bearish since the early part of the year” and making “huge profits on the short side.”
Some of “the shrewdest market traders” now see “definite turning point” in stocks. Conclusion isn't based on “chart theories such as double or triple tops” but on fundamentals. Believe long side will be the safe one from now on, and “standard stocks can be bought with assurance of profit. The corporations, the country, and the people are very rich, richer than after any previous panic, ... industry and the market are in a strong position to stage a comeback.”
Recent reports in trade reviews of slightly improved retail demand considered encouraging; thought to be leading indicator of business improvement.
Many unfavorable third-quarter earnings reports expected in Oct., but market reaction will depend more on the trend of business that month and looking ahead.
Economic news and individual company reports:
Fed. Reserve member banks on Sept. 3 report “all other” (commercial) loans up $30M over previous week.
American Iron & Steel Institute reports Aug. steel ingot production moderately up over July; total production 3.095M tons vs. 2.933M tons in July and 4.939M tons in Aug. 1929; operations at 59.46% of capacity vs. 56.35% and 93.28%.
US Steel unfilled orders expected to show large decline in Aug. from July 31 figure of 4.022M tons; figures to be released noon tomorrow.
Company reports since July 1: 191 companies reported higher earnings vs. 1929 and 455 lower; 933 dividends unchanged, 43 increased, 73 cut.
Starrett Corp. (construction) says earnings expected to improve in rest of year; Empire State Building now up to 60'th floor; also working on several other large projects; lower building costs are leading to more inquiry and expected to create more construction activity.
Curtis Publishing announces will accept cigarette ads for Saturday Evening Post starting Oct.
“Minister ... - Remember that stone walls do not a prison make, nor iron bars a cage.
Prisoner - Well, they've got me hypnotized, then, that's all.”
+ The Boring Stuff: