Assorted historical stuff:
Editorial: R. Kelley of the Denver land office has accused the Interior Dept. of favoring large oil companies with leases on Western oil shale lands worth $40B. While the charges have yet to be decided, the $40B figure is absurd; the present value of this land is much smaller since extraction of oil is more costly than from present oil fields, and it's unlikely the reserves will be needed in the lifetime of anyone now living in the US.
Editorial: Experts in NY not disturbed by Fascist riots on Reichstag reopening; say mostly by irresponsible young men; even Hitler has called them “inopportune.”
Spanish situation reportedly “feverish following rumors and false reports of public unrest”; “strikes and political uncertainty have produced a state of chaos.”
Chiang-Kai-Shek, Chinese Nanking govt. Pres., estimates casualties of last 7 months of civil war at 300,000.
Marie Harriman Gallery opens with exhibit of paintings by Cezanne, Renoir, Gauguin, Matisse, Van Gogh, and Picasso, “all secured last year and all accepted as perfect examples of that group of masters. A short time ago these paintings would have been called extremely modern. Today they seem slightly conservative in comparison to Chagall and Soutine. Ten years ago an uproar would have been provoked; today they are ... a matter of course.”
Telephones per 100 people in various countries: US 16.3, Canada 13.7, New Zealand 10.2, Sweden 9.4, Germany 4.6, Britain 3.8, France 2.3.
Ford now salvaging 600 cars/day in experimental plant; “everything in them is reclaimed to serve some useful purpose.”
N. Smith of Bureau of Mines believes some of the fractions refined from crude oil may eventually be used as shortening and cooking oils.
Pabst Brewing installs almost $1M worth of beer-producing equipment in anticipation of legalized beer “in the not far distant future.”
Market wrap: Market opened with a flood of early selling accumulated over the long weekend; sizable breaks occurred in majors including US Steel, American Can, and AT&T. However, this appeared to exhaust “liquidation of distressed holdings” blamed for last week's collapse, and was “absorbed in noteworthy fashion.” General list then rallied in orderly but impressive fashion, most vigorously in issues that had recently been under pressure. Amusement stocks particularly strong including Fox film and Loews. Market closed firm. Rally may have been helped by recovery in wheat market and short covering. Bond market improved; distress selling absent; corp. high grade steady, some rallies in lower grade; rails weak; US govt. dull, firm; foreign govts. firm, South American stronger.
“Intimations [came] from responsible banking sources that some of the sore spots in the speculative structure were rapidly being healed.”
Broad Street Gossip: Although most market letters now are cautious (as usual during declines), many stocks are clearly very cheap if bought for “a long pull.” For example, many companies are selling at market caps below the cash they've put into property and plant over the past 5-10 years. While a long-pull view may be needed since these companies' earnings are currently below normal, “the big fortunes of Rockefeller, Mellon, ... and others were made buying and holding stocks.”
Outsiders recently looking to enter the market have been advised by brokers “to give more than the usual amount of study to intrinsic values and earning power.”
Brokers report number of recent margin calls, while large, was far short of the number sent out during last fall's panic.
While the $7.578B shrinkage in stock values last month was sizeable, it's just 10% of annual US earning power and 2% of estimated total US wealth of $400B.
K. Fulton, General Outdoor Advertising Pres., announces Sept. contracts best in co. history, says fluctuations in sales have generally foretold changes in general business several months out; “It will be surprising if the sharp upturn in sales ... [doesn't fortell] a substantial improvement in general business ... in the near future.”
M. Traylor, First Nat'l. Bank of Chicago Pres., says prosperity won't return because of “a great increase in spending,” but because of “hard work, thrift, and wise investment”; says spending without saving was one of main causes of current depression.
Economic news and individual company reports:
Fed. Reserve member banks weekly report for Oct. 8: loans on securities down $215M to $8.268B, “all other” (commercial) loans up $15M to $8.545B; considered to reflect “further strengthening of an already strong nationwide banking condition.”
Rail freight loadings for week ended Oct. 4 were 972,492 cars, up 22,111 from prev. week, but down 207,455 or 17.6% from 1929 week. Canadian loadings were 70,897 cars, up 100 from prev. week but down 8,535 from 1929.
Some major Q3 earnings somewhat down but still decent: AT&T $2.55/share vs. $2.77 in 1929; GE $.46 vs. $.59; Western Union $2.22 vs. $3.89.
Number of large power laundries in US was 5,962 in 1927; about 2/3 of operatives were women, about half working 48 hours/week or less, almost all working day shift; median week's wage for white women was $16.10, for black women $8.85.
“Cautious Father - My dear, if you want a truly good husband, marry Mr. Easie. He really and truly loves you. Daughter - How do you know that? Cautious Father - Because I've been borrowing money off him for six months, and still he keeps coming.”
Half Shot at Sunrise - Comedy about two privates AWOL from US Expeditionary Force during the World War.
+ The Boring Stuff: