Wednesday, March 18, 1931: Dow 180.61 -3.00 (1.6%)

Assorted historical stuff:

Since Prohibition was adopted in the US, tourism has become one of Canada's largest industries. In 1930, 5.4M cars carrying about 21.5M tourists crossed into Canada, vs. 4.5M cars in 1929. The Ontario govt. made a net profit of $7.5M on sales in its 120 liquor stores, which it hopes to increase to $10M this year.

Editorial: As noted yesterday, "a decade of tax rate reduction and rapid retirement of the national debt has definitely ended." Higher taxes will likely be required for several years; deflation makes things worse by reducing tax revenue for the same volume of business. Congress faces the hard job of readjusting spending to the new price level so it can aid recovery by cutting taxes instead of raising them. One crumb of comfort is that debt was reduced from $25.5B to $16B in the good years.

Editorial by T. Woodlock: Hits price-support schemes, which have perhaps never been so widely deplored yet so much in use. “Capital must have the discipline of pressure. Ease the pressure in the slightest and capital rushes in like a storm into an area of low barometer.” Price fixing systems merely prolong the agony of inefficient producers, with no advantage to anyone; relief, if necessary, should be given by means other than price fixing, even by the dole if we must, rather than “valorization” or “stabilization.” The US has some trouble accepting these ideas, possibly due to generally soft living conditions compared to the Old World. In fact, the US harbors a set of ideas that “together make a most incongruous mess.” We want abundant and cheap credit for all, especially the “little fellow,” but safety and high interest for our bank deposits; everyone is entitled to go into any line of business and succeed, and if he doesn't, it's the fault of a “big fellow”; and so forth. “We could do with a little more hardness of head in our economic thinking.”

Washington report: Issues involved in the electric utility dispute are becoming clearer. Pres. Hoover is looking to extend regulation of power companies to fill in gaps where states can't act, particularly interstate business. On the other hand, Progressives say regulation has failed, since power companies "regulate the regulators." Power companies have a solid legal basis for rates, which would be hard to lower by law; therefore, Progressives are attacking indirectly, hoping that govt. run competition will force utilities to lower rates. There's little basis for the speculation on whether Progressive support for Roosevelt would help him in 1932; in the past, support of Progressive Senators hasn't even enabled Presidential candidates to carry the Senator's own state. Sen. Borah (R, Idaho) says believes any agreement to restrict oil imports or curtail production would be illegal restraint of trade.

Four special deputy sheriffs and several strikers injured in battle with 100 striking metal workers; deputies were to escort outside workers to Phillips Petroleum.

In the war-torn section of France, all but 3,900 of the 640,000 buildings destroyed during the war have been rebuilt. Of 4M acres of farmland ruined, all but 100,000 have been restored to cultivation. About $3B has been paid in cash damages in the areas destroyed, with about $240M remaining to pay.

Ex-Kaiser Wilhelm II remains richest German despite revolution, inflation, depression, and political disturbances; fortune is estimated at 150M-250M marks vs. 140M before the war, when he was only fifth richest in Germany. Fortune is largely German industrial shares and various castles and estates.

Dr. A Stetbacher invents new explosive more powerful than any on market, and less sensitive to shock than other explosives; combination of penthrit [PETN, later used as ingredient in Semtex plastic explosive and by recent attempted shoe and underwear bombers] and nitroglycerine.

Pacific Air Transport division of Boeing will start 7-hour service between Seattle and San Francisco.

Trans-Lux opens first movie theater with “daylight” screen lighted from rear, allowing theater to be adequately lit.

Pennsylvania RR grade crossing accidents in 1930 were 564 vs. 830 in 1929 and 933 in 1928.

Bank of America celebrates 100th anniversary of purchase of present site at William and Wall St. for $70,000; land alone now valued at $6M.

The Chrysler Building in New York is piped for gas to cook, heat, etc., from the subbasement to the roof 1,046 feet above the sidewalk. A 6 inch gas main runs up to the 70th floor, with outlets on each floor. The highest gas customer is the all-male Cloud Club occupying the top 3 floors.

Market commentary:

Market wrap: Stocks advanced across the list early, but encountered resistance and then a reaction in the afternoon; selling started in rails after M.K.T passed their dividend, but spread to industrials; decline picked up momentum late and trend was sharply down at the close. Bond trading more active; US govts. higher; foreign generally strong; corp. highest grade firm, lower-grade and speculative irregular. Commodities weak; grains mixed, corn and some wheat months down sharply; cotton down sharply. Silver fell back 1 cent to 30 3/8 after sharp rally; setback believed technical.

Conservative observers pointed to market action as justifying advice to stay on sidelines.

Otis & Co. note that at the Feb. highs, rails and industrials had regained about 50% of the Sept.-Dec. decline, and at last week's low had lost half of this recovery. "This is a fairly typical performance for the first three or four months following the absolute lows of important bear markets"; similar patterns occurred in 1904 and 1908. However, important break through last week's lows would indicate relatively weaker market.

Douglas Aircraft rallied on announcement govt. will spend $18M on aircraft of various types. Reynolds Tobacco advanced on success of $1M weeklong ad campaign for new cellophane wrapped Camels. American Smelting weak on silver decline.

Brokers report more small bruins in their midst than ever before. In past bear markets, few of the public knew the mechanics of short selling, but "expansion in financial learning" over the past 10 years has widened knowledge of this tool.

Broad Street Gossip: Market has shown more resistance to selling, even in those stocks "hammered persistently" by bears. While many of last years bears remain in that camp, many have switched to the bull side. Recent buying has shown "greater assurance" than in most of 1930. In 1929, people bought then investigated; now they investigate then buy. Short interest has built up over the past few weeks; borrowing demand by short-sellers was at its highest this year. One piece of recent good news is levelling off in commodity prices since start of Feb.; this may indicate bottom has been reached.

Editorial: The trade figures for Feb. at first look very pessimistic, with trade continuing its decline since the depression's start. However, a closer look reveals some reason for hope. Much of the decline is due to price deflation; volume decline is more moderate for most goods. Also, when the depression began there was a mountain of surplus to work through; considerable progress has been made in doing this. Inquiries for goods indicate conditions are improving; longer-range planning is needed by business to prepare their selling organizations for revival.

G.M.P. Murphy: “modern banking has performed a service which has raised immeasurably the standard of living of the entire civilized world and, by the same token, has made itself indispensable for the continued maintenance of the even flow of goods and capital.”

Economists have compiled well-researched charts of money rates over the past 50 years, and have found the course of rates invariably forecasts business upturn by several months. According to that pattern, the downward course of rates that started in late 1929 should soon be followed by business recovery; the slow improvement starting last Dec. could therefore be the start of a fairly good upswing.

Sir Ashley Sparks, Cunard Steamship dir., says current serious slump in British shipping aggravated by political as well as economic factors, but worst of slump seems about over and indications point to marked improvement in spring and summer travel; construction of new 1,038 foot liner proceeding as scheduled.

Economic news and individual company reports:

Missouri-Kansas-Texas Lines [rail] passed its dividend; while this is a relatively small rail, other rails and stocks with suspect dividends declined, including B.& O., NY Central, and Westinghouse. Rail freight loadings for week ended Mar. 7 were 723,534, up 41,534 from prev. holiday week, down 17.1% from 1930 week, and down 23.6% from 1929.

$1.5M judgement granted against former pres. of failed Bancokentucky; first judgement from numerous suits regarding bank failures of several months ago. Receiver has indicated he will go after Bancokentucky stockholders if assets aren't enough to meet liabilities. Continental Shares, an investment trust business, sued by stockholder claiming mismanagement caused $38M shrinkage in assets; losses incurred by buying securities during period of industrial depression, when "ordinarily prudent business men would not have made such investments."

Income tax receipts Mar. 1-14 were $45.0M vs. $49.4M; for fiscal year to Mar. 14, $1.216B vs. $1.302B. Customs receipts Mar. 1-14 were $14.6M vs. $19.1M; for fiscal year to Mar. 14, $272.9M vs. $398.6M.

Washington hopeful on agreement to restrict oil imports in line with curtailed domestic production; all importing cos. but Standard of Indiana have agreed to reduce imports and negotiations with Stanolind are ongoing. Administration is also willing to meet with committee of oil men early in April to help work out plans for industry stabilization. Oklahoma is waiting for action on East Texas fields before extending curtailment in their state, which is scheduled to expire March 31; Texas Gov. Sterling has introduced a bill to take curtailment away from the Railroad Commission and put it under a new state oil and gas commission. Refineries ran at 64.8% in week ended Mar. 14; stocks of gasoline increased 32,000 barrels to 45.821M. Crude oil production in week ended Mar. 7 was 2.191M barrels/day, up 33,850 from prev. week but down 392,650 from a year ago.

Agriculture Dept. reports Feb. 15 farm product price index 90 (vs. 100 prewar level), down 4 from Jan. 15, down 41 from a year ago, and lowest in 20 years.

Fed. Reserve member bank statements of the past week revealed encouraging $29M purchase of non-govt. bonds, while selling $9M of govts. large scale buying of non-govts. by banks would help general bond market. Liquidation of bank loans continues, with total loans now at $15.377B, down $1.636B since Oct. 1.

New state and municipal bond issues continued to draw strong bidding.

Average yield of foreign bonds offered in the US in 1930 was 5.49% vs. 5.81% in 1929, lowest yield since 1919.

Commerce Dept. receives optimistic reports on Germany, Netherlands, and India, though gains are mostly psychological.

French $150M loan to Italy now seen unlikely; negotiations have been suspended, and Italy is now reportedly more optimistic on issuing new bonds.

NYSE seat sold for $310,000, up $10,000 from previous sale.

1930 earnings reports: GE $1.90/share vs. $2.24; Warren Bros. (pavement) $6.08 vs. $6.05; Calumet & Arizona Mining $1.46 vs. $9.17.

At the galleries:

Major exhibition of 100 paintings from NY art dealers, for benefit of Women's Fund for unemployment. Includes pieces by such prominent artists as Neri de Bicci, Rubens, Pontormo, Goya, Monet, Hoppner, Renoir, Cezanne, Segonzac, Degas, Matisse, and many others. Boston Museum of Fine Arts has unusual exhibition devoted to a woman silversmith, Hester Bateman; little is known of her life other than the record of her work from 1774-90. Arden Galleries is showing a collection of contemporary furniture and art objects inspired by early peoples of the American continent, including Mayan, Inca, Indian, and Spanish Colonial design.

Entertainment:

Tragic death of Lillian Leitzel, who fell while doing her trademark "back hand flange" high in the air, calls attention to decline of the aerialists who once dominated music halls and circuses. Ranks of the "be-tighted gentry" are dwindling; distractions of modern life have narrowed the circus field, while movies have offered an easier medium for young talent. In the US, the Ringling Brothers have absorbed most of the other major circuses; in England, the circus is now seasonal; in France and Germany, it plays mostly in the provinces. In the 1850's and 60's, aerialist "families" were well paid and in demand. Over time, demand for thrills increased until "death defying stunts" became "death inviting stunts", including loop-the-loops with bicycles and then cars, and the turn-of-the-century Desperado, who dove from the top of the tent into a runway. Competition from movies brought even more dangerous performances, including the "human fly" who fell to his death a few years ago in NY and the "human cannonball" who died before 5,000 spectators in Atlantic City last summer after being fired from a gun in an airplane.

Joke:

"'Perhaps you can tell me. What does it cost to divorce one husband and marry another?' 'I'm sorry - I don't know the present rate of exchange.'"

Tuesday, March 17, 1931: Dow 183.61 +2.85 (1.6%)

Assorted historical stuff:

"Indian Potentate Premier Plutocrat" - World's richest man is the Nizam of Hyderabad, 45-year old monarch of 13M Indian Muslims. Fortune is estimated at over $2B; during the war he contributed over $50M to the British govt. He is said to have over $500M in gold in his treasury. On a visit to New Delhi two years ago, he traveled in a special train of 22 Pullman cars; his luggage was sent ahead in four special trains, one devoted to carrying part of his collection of 400 cars.

Editorial by T. Woodlock: Stockholders agitating against Bethlehem Steel's executive bonus system are giving every reason but the real one, even if they don't consciously recognize it: “a strong feeling on the part of most of us ordinary folk that a million dollars is too much for anyone.” The executives involved have clearly done a good job; Bethlehem's expenses are proportionally lower than US Steel's, bonuses included. Perhaps when they realize their true motivation is envy of others' riches, the Bethlehem stockholders who are to vote on the bonuses may be released from this “neurosis” and cast a fair vote. This problem is also apparent in the agitation for public control of electric utilities, which is motivated less by desire for low rates than by anger over the other fellow's profits.

Washington report: In the past few days many realized that their 1930 taxes would be substantially higher even though incomes were lower, due to the expiration of the 1929 1% tax cut; this hit the lowest 1 1/2% bracket hardest. The US, however, faces even higher taxes and a rise in debt; the current year will show a $500M deficit, and even with a business recovery it's hard to see revenues rising enough to avoid tax increases, since much of 1928-29 revenues came from capital gains and corporate taxes. In addition, spending may rise for the Farm Board, veterans, and unemployment relief measures. Public reaction to a tax hike is uncertain; this would be the first peacetime increase in income taxes. Political parties have been exchanging mimeographs, which are “the only known combination of words” containing a “higher percentage of pure buncombe than Senate oratory. ... But the really ridiculous aspect is that newspapers print these things and offer them to their readers as news.” The statements, though sponsored by Congressmen, are mostly written by “publicity men in party headquarters,” as the newspapers well know. Another ridiculous spectacle is that of Republican and Democratic Senators trading charges on who is responsible for record peacetime spending; “It so happens that both of them are right.”

Assoc. Against the Prohibition Amendment estimates repeal would raise $882M this year from taxes on liquor sales.

Henry Ford, in AP interview, sees prosperity in present low-price era rather than false prosperity that speculation begets; wages not cut in Ford plants; predicts reelection of Pres. Hoover, advises against govt. ownership of utilities.

Russia outlines plans for reorganizing collective farms along capitalist lines; equality of wages will be ended and farmers paid according to production.

Editorial: Railroads and shippers are locked in a battle over whether truck transport should be regulated as rails are. This involves some complex questions of whether trucks are paying their full costs and whether competition is in this case ineffective to determine reasonable charges. However, it's worth noting that shippers were just as fervent for rail regulation 20-30 years ago as they are against truck regulation now - could they be trying to have it both ways?

G. H. Hall, Civil Lord of the Admiralty, predicts new life for Britain's coal industry since fuel oil can now be produced cheaply and practically from coal.

Union Carbide has developed plastic Vinylite, which can be used for furniture, window frames, and many industrial purposes. "Experts believe the development of plastics will be among the most important factors in the next few years."

War Dept. to order 388 airplanes at cost of $18M; will bring total plane strength to 1,800. US Navy to order 12 high-speed (300mph) bombers for $525,000.

NY City taxicabs travel about 900M miles/year vs. 1.347B miles by mass transit vehicles; drivers declared about $26M annually in tips received.

In first 9 weeks of the year, 213 people were killed by cars in NY City, increase of 13% over 1930.

NY State Industrial Commissioner F. Perkins reports deaths in industrial accidents in Feb. were 122, down 43 from Jan. and down 24 from the 5-year Feb. average. Causes included 31 vehicle accidents (24 cars, 5 trains, and 2 horse drawn), 24 falls from elevators, 13 falling objects, and 6 “strains.”

J.P. Morgan to build NY City's only bronze subway entrance, on corner of Wall and Broad Streets.

Market commentary:

Market wrap: Stocks opened under bear pressure, but resistance soon developed; rallying began, with utilities particularly strong and leading industrials pushing ahead; advances were extended in the afternoon. Bond trading dull; US govts slightly lower; foreign mostly firm; corp. irregular, rails in good demand.

Commodities strong; grains firm, corn up sharply; cotton up very sharply on short covering. Copper remains at 10 - 10 1/4 cents, with buying small. Silver continued sharp rally, up to new 1931 high of 31 3/8 cents vs. Feb 16 record low of 25 3/4.

Conservative observers still favor sidelines; ability of stocks to move ahead for several days would be good indication.

Bulls encouraged by trade reports of continued gradual improvement, rally in silver, and on the technical side by recent effective support for leading stocks in face of discouraging developments, and large short position as reflected in heavy borrowing demand in the loan market.

Recent stock market irregularity seen accurately reflecting a very mixed business picture, with moderate improvement in some lines including autos, steel, and textiles, but disappointing progress in others including rail loadings, copper, oil, and retail trade. Inconclusive bear-bull contest and technical market seen likely to continue while conditions are so indefinite. A number of nimble operators in leading houses have made profits recently by looking for stocks in which a heavy short position has developed, and going long; this has touched off many minor rallies in individual stocks over the past week.

Kreuger & Toll US certificates and Internat'l Match preferred hit new 1931 highs; strength attributed to rally in silver. Woolworth in demand on reports of better March business. Gillette has broken out to the upside after a bear-bull contest last week. Internat'l Cement weak on rumors of price cut; Feb. production and shipments are down sharply from 1930. Oil shares slightly firmer in spite of another crude oil price cut by Union Oil of Calif.

A substantial part of recent high grade bond demand is reportedly coming from investment trusts [similar to mutual funds].

J. Oliphant & Co. see a market advantage for car stocks in that they've already been deflated for about 2 years vs. 1 1/2 years for rest of the market; major carmakers stocks peaked early in 1929.

Berlin stocks and currency continued firm; financial circles optimistic on apparent return of funds sent out of country last fall, turn for the better in employment.

Broad Street Gossip: Notes willingness of “master minds of business” including Pennsylvania RR, NY Central, Rockefeller, and AT&T, to spend large sums on expansion; they have earned vast sums “through their ability to see into the future. In the long run, they always add to their wealth, as well as ... their shareholders, and usually profit from depression.” Ability of market to absorb $2.5B in recent financing without a ripple indicates we're truly “in an age of big business”; veteran traders can remember when bear drives were launched based on $200M in new financing.

Editorial: World cotton consumption figures are grim, indicating world depression in cotton manufacturing and increased consumption of Indian cotton. Remedy could start with scrapping of Farm Board, with "its dangerous theory of 'orderly marketing,' stabilization, and throwing of monkey wrenches into the market machinery" and return to business principles of reducing costs of production, avoiding heavy surpluses, and letting markets function.

S. McKelvie, Farm Board member, denies the Board's sales of wheat abroad constitute “dumping.”

Col. A. Woods of the President's employment committee says employment situation throughout US is somewhat better than a week ago, based on encouraging reports from regional agents.

J. Campbell, Youngstown Sheet & Tube chair., says depression one of the severest ever experienced, but sees indications bottom has been reached, “outlook is encouraging for a gradual increase in volume through the year.”

Economic news and individual company reports:

Texas Railroad Commission hit back after Gov. Sterling accused them of failing to enforce oil curtailment: “It seems Pres. Hoover would like to shift the responsibility upon the Railroad Commission of Texas for his own dereliction in failing ... to stop importation of foreign oil ...”

NY State Banking Dept. takes possession of business and property of some Bank of US affiliates to continue liquidation process. Motion granted for trial of five Bank of US officers. H. Satterlee to confer with Gov. Roosevelt on Rosoff plan for reorganization.

Banks are now in position to buy about $2B in non-govt. bonds, while remaining quite liquid compared to the past; this would substantially help business recovery. Since Oct. 1930, banks have shown no inclination to buy non-govt. bonds, possibly due to bank failures and concern over the economy. However, this may change due to current very high liquidity and pressure of low earnings.

US Feb. exports $226M vs. $349M in 1930 and lowest since 1914; imports $175M vs. $282M and lowest since 1916. While Feb. is a seasonally slower month, observers had expected a better showing due to drastic decline in the previous few months.

NY State Railroad Trainmen's union seeks to cooperate with NY rails in promoting placing of all transportation, including buses, trucks, water carriers, pipelines, and air transport, under the same regulatory restrictions governing rails.

Since organization of US Steel in 1901, receipts have totalled over $30B; dividends paid on common totalled $891M or 160%, while $1.453B was reinvested.

US automotive exports in Jan. were $15.5M vs. $16.4M in Dec. and $31.2M in Jan. 1930; Denmark became leading buyer of US passenger cars with 121% unit gain, followed by Canada and India.

Light weekend rain or snow fell in some US areas, but still no general relief for areas suffering from winter drought.

British rail workers refuse to accept wage cuts decreed by Nat'l. Wages Board; union leaders had urged acceptance of the cuts.

Canadian report: In 11 months ended Feb., govt. revenue was $322.7M vs. $402.1M; expenditures were $331.2M vs. $310.1M. Govt. net debt on Feb. 28 was $2.208B vs. $2.156B a year earlier. Rail car loadings for the year up to Mar. 7 were 460,501 vs. 563,139.

Industrial Rayon announces it will guarantee prices to customers against declines for 60 days.

International Nickel 1930 net was $0.67/share vs. $1.47; world consumption of nickel 88M pounds vs. 130M and 117M; sales declined rapidly in second half. Vanadium 1930 net $3.04/share vs. $5.26. Caterpillar sales kept at "encouraging pace" so far this year by govt. road machinery and tractor orders; sizeable business expected from Hoover Dam project.

Movie:

River's End - The Canadian Mounties, "favorite subject of silent films," finally have their day in the talkies. Plot "presents the familiar movie theme of the supposed criminal who looks exactly like the officer of the law."

Jokes:

Two middle-aged businessmen sat in the smoking room of a club criticizing the young men of today. Said one: "Look how reluctant the young men are to marry and settle down." "That's so," said the other. "They seem to fear marriage. Why, before I was married I didn't know the meaning of fear."

Theological lecturer - Some admire Moses, who brought the old law; some Paul, who spread the new. But after all, which character in the Bible has had the largest following? Voice From the Back - Ananias. [Lied to Peter concerning financial matter, was struck dead on the spot - Acts 5.]

Monday, March 16, 1931: Real Estate Special Report

Historical stuff:

Wall Street, probably the world's most valuable thoroughfare in proportion to length, is now possessed by about 30 owners. While there's always a market for Wall St. property, no one wants to sell; “Unlike land almost anywhere else on Manhattan, it is not subject to varying business conditions. Property values there never depreciate. A change of ownership generally is at greatly increased prices.”

Buildings about ready for occupancy: the new Waldorf-Astoria at 49-50 St. and Park-Lexington Ave.(2,253 rooms, all equipped with radio and “wired for television”; over 500 de luxe rooms with high ceilings, open fireplaces, and boudoir baths; private rail siding under hotel for guests owning private railroad cars); new 50-story Irving Trust headquarters at One Wall St. (grand reception hall 3 stories high and 100 feet wide along Wall St.); Empire State Building (2.2M sq. ft., to have 25,000 tenants, $65M cost; seen drawing tenants from financial district and many other areas; reject nasty gossip in some quarters about proximity to garment district); new 60-story City Bank Farmers Trust building at Exchange Place and William St.

Buildings under development: Met. Life new office building at 24-25 St. and Fourth-Madison Ave.; 67-story office building at Pine, Pearl, and Cedar St.; 36-story Maritime Exchange building at 80 Broad St.; 35-story Commerce building at 155 E 44 St.; revolutionary “all-glass” 3-story building for Phila. Fund Society Bank.

Development of far East Side between 23-63 St. and 2nd Ave - East River proceeding apace, looking to reclaim residential glories of 100 years ago. Many large plots have been assembled along 2nd Ave. in anticipation of the new subway. Growing residential areas include Jackson Heights, Mamaroneck, New Rochelle, Yonkers, Bronxville, Mt. Vernon, White Plains, Maplewood, West Orange, Stamford, Norwalk, Darien, and Greenwich.

H. Mandel notes that while Manhattan has been losing population year by year to commuting, there recently seems to be an increasing return to living in Manhattan, with residents drawn by more “dignified and handsome” apartment buildings, convenience, and other advantages of city living.

Jan. report of Nat'l. Assoc. of Building Owners and Managers covering 1,935 buildings in 41 cities with total space of 165.6M sq ft. shows office vacancy rate of 14.7%, vacancies enough to take care of normal business expansion for at least 3 years. About 7.9M sq ft of new space will come on market this year.

Thompson-Starrett, since its organization in NY in 1899, has executed 1,246 contracts involving expenditures well over $1B; recent NY buildings include the Waldorf-Astoria and Downtown Athletic Club. Almost all work has been done under “limit of cost” contracts in which it guarantees limits on building costs and time, while taking only a fixed fee; any cost overruns are borne by the company, while cost savings pass on to the owner.

Comment and analysis:

F. Goode of Brown, Wheelock compares real estate market to convalescent from a “long-deferred but necessary operation”; patient is weak, but ordeal is mostly behind him. Real estate slump was due to overproduction brought on by excessive optimism, loose credit, and entry into construction field by “millionaire ex-merchants with a limited background” but limitless confidence and access to funds. In 1927-29, the more experienced and conservative were overruled and their warnings ignored; boom continued as long as general business held up; when stocks collapsed in 1929, rental business gradually softened, while some buildings started during the boom continued to come on the market; fortunately, incidents of “real distress” and default are isolated. Lessons for future: more careful investigation by lenders and bond buyers; elimination of “compaisant” appraisers willing to inflate valuations; return control of construction to experienced hands; temporary pause of 1 to 3 years in building until vacant space can be absorbed.

G. Mortimer, NY Title & Mortgage pres., notes distinct uptrend in NY real estate, though situation remains far from normal. Rents are increasing on Park. Ave.; many important homes recently bought; mortgages now readily marketable, all large mortgage institutions now actively seeking acceptable applications as means for meeting eager demand for their securities. Uptrend even more encouraging in boroughs and outlying areas.

W. Greve, NY Investors Inc. pres. says better quality real estate resisting forces of deflation as it has in similar periods in the past.

C. Noyes notes major real estate deals have come to standstill since Oct. 1, but in the past it has been “right at that moment light is coming out of darkness and better times are dawning ...”

Douglas Elliman reports real estate bore up well through early part of depression but has suffered some setbacks since; however, rental situation reasonably sound with 9.4% vacancies in East Side rentals vs. norm of 10%; rents may be reduced slightly but “no panic in rents”; lull in building should be beneficial. Good income-producing real estate now undergoing “emotional liquidation”; this is a buying opportunity.

Fred Ley notes increasing confidence that real estate industry is slowly but surely recovering from 1930 slump. Remembers past periods of depression and sees same signs that marked recovery then, including abundant and cheap money, more optimistic mood, and low cost of construction. Time for indiscriminate building is past, but “wise builder, who has both courage and discretion” has an opportunity. “It still is true that one cannot rightly be 'bearish' on the United States.”

C. Babbage, US Realty & Improvement Corp. pres.: “impossible to prophesy accurately” when prosperity will return, especially with regard to real estate. However, situation would be easier if there were no new laws for a while. Inflation in real estate was caused by ease of borrowing money; many involved hadn't been through a depression and didn't sense they might have to pay back loans when conditions were less favorable.

P. Grimm, Real Estate Board of NY pres: “We have reason for satisfaction over the manner in which real estate has withstood the shock of a worldwide economic reasjustment. It has suffered by no means so widely and deeply as many other commodities.”

T. Mersereau of the NY Real Estate Securities Exchange says the Exchange, formed 15 months ago, has filled the need for a place the real estate operator can go to the public to raise capital for large projects. Considering basic soundness of real estate, believes there has never been a better time for “public to invest wisely in attractively priced real estate securities.”

Monday, March 16, 1931: Dow 180.78 +1.87 (1.0%)

Assorted historical stuff:

Editorial by T. Woodlock: It's clear the doctrine of laissez faire, laissez aller that has guided “classical” economists for a century, is now obsolete; the world economic system is so complex and interdependent that some coordination is needed. However, this doesn't mean that governments should do the planning, as is suggested anew with “each succeeding depression in recent times.” A better alternative would be, despite our antitrust laws and the vestigial attitude behind them, to find a way for industries to achieve better coordination and control, without surrender of individual initiative.

Sir Josiah Stamp, British economist, agrees with J.M. Keynes' plea for 15% British duty on manufactured imports and 5% on raw materials; believes proposal's risks less serious than doing nothing; favors tariff not for protection but to raise price levels, so it should be removed when price index reaches appropriate level.

In year ended Mar. 29, 1929 Britain had 500-600 millionaires, a larger number than the US. Highly recognizable names included the Lord Derby, the Aga Khan, and Lord Dewar.

T. Shotwell of H.L. Horton & Co. sees weakness of Communism not in redistribution of wealth, since "there is plenty in the world for everybody," but in its elimination of "individuality of thought and effort" and reduction of the crowd to machinery, so that "once the master goes wrong, the whole machine is worse than useless. ... either success or failure in the Five Year Plan threatens to put the common people back into the serfdom from which they were so recently released."

Editorial complaining that "Congress is determined to maintain the subjection to 'death duties' of every conveyance or trust which might conceivably have the effect of avoiding inheritance taxation."

Washington report: US agricultural interests seen favoring Philippine independence since it would allow protecting some US products with tariffs. Little practical effect seen from Progressive committee on special session of Congress. Based on Gen. Hines figure of 1M applications for veterans' bonus loans, it's clear cost will be well over $500M.

Postmaster Gen. Brown announces daily air service will expand 10,750 miles starting Apr. 1, to 75,555 miles/day, including first through service between coasts.

B. Balchen of Bergen County Chamber of Commerce recommends the County buy Teterboro Airport, now under contract to be sold to GM; believes Teterboro and not Newark destined to become center of Eastern aviation activities.

Washington landmarks now posing a danger to planes. 550-foot Washington Monument is serious menace to night flyers, being close to the main airports; several pilots have reported narrow escapes, and a beacon is to be placed on top. Recently a night airmail flight avoided crashing into the Capitol dome by inches during heavy fog; this is now lighted during night and fog.

Boulder [Hoover] Dam preliminary construction work to begin May 1.

Dr. H. Eckener, Graf Zeppelin commander, says little chance of joint US-German operated transatlantic service before 1933; establishing service will depend on action by Congress on mail pay.

Dr. J. Wilson predicts leather industry will be released from 11 years of depression by newly developed leather floor covering that will use the 1M surplus hides now in storage; also sees possible use as shock absorber in automobiles and railcars, where it will prove superior to rubber.

General Baking Corp. to incorporate Vitamin D in leading brand of bread.

Bank of NY & Trust Co., first bank in the city, was established 147 years ago on Mar. 15, 1784; Alexander Hamilton wrote the bank's constitution.

Entertaining story by H. Alloway about a day in the life of Diamond Jim Brady: he made $759,000 by acting as middleman in a stock buyout deal, but also lost $500 on another stock one of the participants in the deal was sponsoring. This loss was to be the subject of endless complaint; whenever the subject of stocks came up, James said he would have nothing to do with the market; he had "played, staked, was cured forever!"

A new street "racket" plays on strong emotions on both sides of the Prohibition issue.A clean-cut "state agent" gets equal numbers of blue and red buttons, the blues labelled "Strict Enforcement" and the blues "Repeal." Quickly sizing up approaching prospects, he sells them the appropriate button for their sentiments. Furthermore, each button gives buyer the privilege of signing a "petition to Congress," demanding enforcement or repeal as the case may be.

Market commentary:

Market wrap: Stocks rallied moderately, avoiding the dreaded bearish signal that would have occurred had they fallen below trading range established in the past two weeks. Strong spots included utilities, motors, and Woolworth. Bond trading quiet, US govts. down slightly; foreign steady; corp. high-grade steady to firm; low-grade irregular. Commodities irregular; grains mostly off slightly in confused market; cotton barely changed.

Week in review: Stocks unsettled by NY Central and other dividend cuts, actual and expected. However, fair support came in and even reaction in rails remained within technical bounds; fact that stocks have remained in current trading range for so long seen favorably; resistance to bad news indicates market is in "liquidated state." Earnings mostly bad, but some good economic news: sharp rise in silver increases buying power of some 900M people; at home, various trade reports were moderately encouraging, and retail trade felt "stimulus of soldier bonus expenditures." Rise of $34M in Fed. Reserve credit seen as encouraging indication of expansion in credit. In spite of stock decline, security loans to brokers and non-brokers both rose, the latter for the first time this year; this may have been due to temporary factors including tax payments and new bond issues. High-grade and foreign bonds continued to show strength, and another $262M of new issues was easily absorbed, but rail and speculative issues turned sharply weaker on Thursday. Berlin stocks strong, while Paris market rallied Friday after sharp losses earlier. Grains traded in narrow range in spite of news rather bearish on wheat and bullish on corn. Cotton mostly sagged. Steel production continued gradual advance, but observers expecting a price hike were disappointed by Carnegie Steel's announcement of no changes.

Conservative observers still cautious, on sidelines; believe this week will be important, may indicate next major move; would see favorable sign if leading stocks hold above last week's lows and break upward on higher volume.

Considerable selling has developed in stocks whose dividends have recently become suspect. Issues affected include Baltimore & Ohio RR, Bethlehem Steel, and Westinghouse. Even GE is said to have suffered some cancelled buy orders as customers wait for the company's report. Several brokers are recommending preferred stocks that have ample dividend protection.

Selling has come into some low-priced stocks that just a few weeks ago were in favor on the theory they could rally by large percentages.

Various technical factors seen favorable for stocks: short interest up substantially in the past 10 days; some of the more fast-paced trading tactics using combinations of options and stocks have been discontinued as bull traders grew discouraged; most traders again are looking for a wide open break in the market. Market is now in the "most liquidated position on record"; thus, we're not likely to repeat last fall's experience when many were forced to sell regardless of price. Indeed, stocks have shown surprising calmness in face of recent bad news. Unlike last year, number of new yearly highs has been exceeding new lows.

With poor expectations now firmly established, "the market would depart from precedent should it display great alarm when the concrete figures are published. For this reason, it appears unlikely that demoralized liquidation will again be seen." Pessimism over slowness of business revival seems excessive; "recoveries from severe depression are traditionally tedious."

Economists are awaiting a statement on taxes due the Federal govt. today; most expect a decline worse than recent estimates.

Editorial: The high valuation assigned the Michigan Central Rwy. will doubtless be seized on by "railroad baiters" (NY Central is to pay $1,550/share for remaining stock). However, this is a special case; the railway was almost entirely owned by NY Central; with that powerful railway at its back, it had no need for independent financing, allowing the stock base to remain small.

Broad Street Gossip: Much of recent reaction in stocks has been due to profit-taking, but short-selling is also a considerable factor, some of it "amateur." Rails have fared worst in the decline, and are now only a little above 1931 lows; industrials have done better, and utilities relatively best. Feb. copper production was down 39% frm Mar. 1929, and lowest in a number of years; however, reduction in surplus inventories is moving slowly. A leading chain store with a large cigarette business believes a price hike is imminent that would give manufacturers 20% more after taxes. New bond issues are largely financing construction, and so "will put many idle dollars to work."

W. Cumberland, former State Dept. advisor, defends US entitlement to war debt payments; points out 1929-30 payments of $215M were only 0.5% of debtor countries' national income and 2.5% of their budgets.

Col. Ayres of Cleveland Trust says while first quarter “continues to produce evidence that the bottom of the business depression has been reached,” signs of real upturn aren't evident; improvement in most lines is no more than seasonal; recovery likely to be a slow process.

Economic news and individual company reports:

Friday the 13th passed without any untoward occurences, though in Wall Street's tradition of superstition, brokers report hundreds of their customers won't trade that day and some get out of the market the day before.

C Schwab, Bethlehem Steel chair., likely to appear before Pennsylvania House Utilities Investigating Commission to answer questions about his alleged domination of city of Johnstown through steel interests.

Fisher's wholesale commodity index remained at 76.0 after gaining slightly in prev. week for the first since Dec. 5.

Arkansas situation seen improving; while state has been in distress after almost total crop failures due to 1930 drought, 62 of the 144 banks that closed after July 1 have already reopened; in addition, Federal drought relief loans and the Agricultural Credit Corp. program are expected to help substantially.

Statement of Pres. Hoover on need to curtail East Texas oil production seems to have spurred state officials into action.

Capital gains [from sale of real estate, securities, and other assets] in 1929 were $4.556B, or 15.84% of total income, only slightly below the peak 1928 year despite the late-1929 slump. The 1930 total will be much smaller, which will be one factor in reducing tax revenues.

Foreign bonds offered in the US in 1930 were $905.3M vs. $671.2M in 1929; British total was $557.6M vs. $541.5M. Of the 1930 total, $333M was Canadian, $254.5M South American and $232M European.

S.W. Straus reports Feb. building permits in 545 cities were $111.4M, up 6% from Jan. but down 14% from a year ago; usual seasonal increase is about 9%.

Negotiations for French loan of $39.2M to Poland almost complete; loans to Yugoslavia, Greece, Italy, and German interests also pending.

Northwest railway experiments in lowering passenger fares to increase traffic have so far been disappointing.

Calif. Grape Control Board suggests immediate destruction of enough vines to reduce next crop approx. 240,000 tons.

Improvement in auto industry is particularly sharp for Studebaker and Oldsmobile; Studebaker's sales this quarter will only be down about 15% vs. 35% for the industry, while Oldsmobile March production is scheduled to exceed the March 1930 level. A high Ford official says he expects to be back to normal production by mid-April.

Companies reporting decent earnings: US Pipe & Foundry, Standard Cap & Seal, Pet Milk Co., Telephone Invest. Corp. (Philippine phone system).

Joke:

'But Madam, you have no claim. Your husband didn't insure his life; he took out a fire insurance policy.' 'Well, that's what I'm claiming. I just had him cremated.'

The Irregular Blather Mar. 15, 1931

No Journal was published Sunday, Mar. 15, 1931.

Just time for a couple of brief, sobering observations from a long walk through downtown Manhattan today on my way to an event. First, the bank branch thing. For several years before the financial crisis broke out, I noticed a curious proliferation of bank branches - it seemed like whenever a storefront was vacant in my neighborhood, particularly a big expensive one, the odds were a bank branch would move in. In retrospect, this should have been a warning sign. I mean, can someone explain to me what exactly the point of a bank branch is these days (aside from the ATM area)? The only things I can think of that most people use them for are opening and closing accounts, or applying for loans. Therefore, considering the number of times the average person does this in a lifetime, by my calculations Manhattan should need a total of about 17. Now, I don't know if this is a warning sign, but walking around today I again noticed several spanking new or under-construction bank branches moving into now-plentiful empty storefronts.

Another thing I happened to notice on my walk was a huge billboard of a scantily clad Megan Fox advertising something that escapes me. I'm not really familiar with her, but I understand she's the new Angelina Jolie, only younger and better looking. Looking her up on the ultimate authority (Wikipedia), I see she is in fact only 23. The sobering thing is that from examples such as Madonna it's apparently now possible for actors and actresses with access to the best of cosmetic surgery and bioactive substances of dubious origin to maintain a more-or-less youthful appearance well into their fifties. When you consider the likely advances in biotech, nanotech, etc., this is likely to be extended to the sixties or seventies before too long. So, does this mean we'll be looking at billboards of Megan Fox for the next 40 or 50 years? And won't that get kind of boring?

Finally, to show the scandalous actresses of today how it's done, here's the campy yet disturbing final scene from Dishonored, mentioned Mar. 9: Third collaboration between Marlene Deitrich and Joseph von Sternberg falls short of The Blue Angel and Morocco, but is nevertheless suspenseful and strikingly photographed; Dietrich plays the alluring X27, a spy sentenced to death for allowing an enemy officer to escape. However, while Miss Dietrich is remarkably effective as a movie personality, it becomes clear she's "lacking in technical finish as an actress"; main weakness is apparent inability to end a sentence with anything other than a question mark.

>Play "Dishonored" on Youtube

Saturday, March 14, 1931: Dow 178.91 -1.23 (0.7%)

Assorted historical stuff:

Editorial: The two-day "tournament of progressivism" in Washington was most successful when it was most abstract. The specific proposals made, while diverse, were united by the assumption that government has "unlimited power ... to right all the wrongs, the distresses, even the inconveniences, of human existence," if only it can be compelled to follow the right policies. “Yet with all its confusion of dissatisfactions and political animosities,” the conference did express that all of us could well consider the existing order and ways of improving it - “and that is something.” Sen. LaFollette (R, Wis.) names special committee to survey progressives to decide whether to demand extra session of Congress for unemployment relief.

Gen F. Hines, veterans' affairs administrator, reports almost 1M applications for veterans' bonus in first week; 105,766 checks mailed totalling $40.359M.

Washington report: Progressive conference made clear their agenda for govt. ownership of power plants. Those advocating this also were enthusiastic supporters of Gov. Roosevelt; while this may help him in some states such as Nebraska and Iowa, it's likely to hurt in others with many more votes. Washington officials, in their anxiety to defend against political attacks, are flirting with attempts at “prosperity by propaganda.” It will be recalled that last spring, officials issued positive statements on the economy, against express advice; the result was severely harmful to public confidence. No political attack will hold water if conditions are obviously improving; on the other hand, no statements will make the country believe in improvement unless it's real.

Improved prospects seen for getting oil industry situation under control. Pres. Hoover notes progress on negotiations with oil importing cos. to cooperate in reducing imports; this would be combined with curtailment by domestic producers; points out importance of bringing rapidly growing new East Texas area under proration. Ultimate aim seen as system of unit (cooperative) development of fields, regulating production to demand, and restricting imports proportionally.

Agriculture Sec. Hyde reports drought relief loans of $12M made so far, average amount of $150-$200.

French Chamber of Deputies sustains govt. of Premier Laval in confidence vote after he defends Finance Min. Flandin, who was previously connected with the failed Aeropostale.

Reynolds Metal has perfected and is marketing a foil for cooking purposes; new product is expected to aid profits substantially.

Maj. Gen. J. McBrien, Aviation League of Canada pres., predicts commercial air mail service will be established between Canada and England within a year, making necessary stops in Hudson Bay outposts, Greenland, and Iceland; expedition is now in Greenland choosing best route across.

Old method of laboriously cleaning locomotives by scrubbing with cotton waste has been replaced by "locomotive laundries," gigantic high-pressure shower baths of hot water and oil that clean them much more thoroughly.

R.J. Reynolds Tobacco received more than a million letters in response to advertising campaign for new cellophane wrapped Camel cigarettes.

NY State Assembly reportedly witnessed the first time a prayer in the state legislature was applauded, delivered by Rev. Kenneth Wells: "Almighty and Everlasting God ... Grant unto us wise laws and fewer of them ... "

Market commentary:

Market wrap: Stocks worked irregularly lower in quiet market; selling pressure was persistent but gained no particular momentum. Shares whose dividends were suspect broke to new lows early, including Bethlehem, Westinghouse, and B. & O.; decline broadened as morning progressed, but majors drew fair support on recessions; general recovery occurred in the last hour. Bond market mixed; US govts. firm; foreign mixed, with European firm but S. American irregular; corp. irregular but higher-grade firmed in the afternoon. Commodities weak; grains and cotton off substantially. Copper slightly weaker; sales made at 10 - 10 1/4 cents.

Conservative observers continue recommending sidelines; no sign of definite reversal yet seen.

Market concerns included dividend cuts, poor earnings, and possible poor tax receipts on March 15 due to lower incomes last year.

Editorial: Rough calculations show a severe shortfall of corn can be expected up to the new season; total supply is about 729M bushels as of Mar. 1; this is about 244M short of average usage in the next 6 months and compares to last year's 987M. Strangely, the corn market hasn't responded to this situation, with price about 14 cents/bushel below a year ago.

This week's bank statements contain some encouraging features. Continued increase in Fed. Reserve credit outstanding, vs. a decline last year, indicates tendency to inflation in credit rather than deflation. Increase in non-govt. securities reported by NY banks may indicate return of bank buying to general bond market, which would be very helpful for business recovery. Bank loans are still being liquidated, though part of decline may be due to sales of bankers' acceptances to Fed.

Bond dealers encouraged by manner in which market easily absorbed heavy week of new issues, while prices for older issues were only slightly affected. Intense speculation centers on possible resumption of long-term foreign bond sales in NY, seen likely to start with small “feeler” issues. Investors are selling bonds of railways that may lose legal status as bank investments due to lower earnings. Some brokers report increased demand for good preferred stocks.

Increase in brokers' loans last week in face of declining market may be due to income tax payments and unusually heavy bond issuance; another interpretation was tha “distribution had been in progress.” Brokers report some selling of stocks "from strong boxes," possibly due to dividend concerns after NY Central cut. Stop-loss orders are more common now than in some time; leading brokers have been urging their use, and they are a natural response to recent market action.

Economists are growing concerned about steel industry Q2 earnings (it's already known Q1 will be poor). The industry needs higher production, and that's unlikely to come until general business is much better.

Broad Street Gossip: Bears and bulls can each get ammunition from recent developments; bears have dividend cuts and poor earnings; bulls counter with moderate business improvement and markedly better public confidence; bears reply the improvement is disappointingly small and may not continue. Both sides admit little liquidation is taking place. The Old Timer notes American Tobacco paid $150M to the govt. last year, about 3.5 times earnings and 5 times dividends; rails also pay more to the govt. than to shareholders; "all this convinces me that there is something wrong economically somewhere." Many big bear professionals are reported back on the job, though one admits "the market shows better resistance now" than last year and sees need for caution, since proof business has definitely turned upward "would make the short side very dangerous."

Atlantic City mayor H. Bacharach comments: “Atlantic City never was on a sounder economical basis than it is this day. We have less evidence of the world-wide depression and are recovering more rapidly than any other city in these United States.” Says city bonds are safe, sound, and attractive investment.

Carreau & Snedeker say "American Woolen emerges from the 7-year textile depression in the strongest position in its history ... readjustment of the industry ... appears to have been largely completed."

F. Brownell, Amer. Smelting chair., says silver could be stabilized by agreement between govts. particularly India and Britain, not to sell below a given price.

D. Houston, Mutual Life of NY pres. and former Treasury Sec., says bottom of depression reached and any change will be upward.

Chairmen of New England state employment committees unanimously report conditions in their states indicate “worst of the business depression” is past.

Economic news and individual company reports:

Labor Sec. Doak reports first satisfactory indication of general upward employment trend since Oct. 1929 market collapse; based on reports of 13,377 mfrs. employing 2.772M workers, employment in Feb. gained 1.4% over Jan. and payrolls increased 7.5%.

Norfolk & Western Rwy. launched a wide-ranging attack on ICC order directing it to pay the govt. $15.8M that the Commission found was "recapturable excess net income" allegedly earned between 1924-26. Rails considering suing ICC to block drastic cuts in grain rates to take effect June 1.

Bradstreet's weekly review reports continued gradual growth in manufacturing and spring trade; Dun's reports wider indications of acceleration in commercial activity, but not to the point of suggesting a dramatic upswing; sentiment is improving, helped by better turn in agricultural conditions.

Increase of 29% in Feb. auto production was sharpest monthly increase since Feb. 1928; recovery is likely to continue in March with another 15%-20% gain. Public buying is increasing; reports from retail centers indicate a good seasonal increase over the next 2 months. However, production remains low; first quarter will be about 35% below the 1.047M produced in 1930, and 40% below the 6-year average. Of first quarter production, GM will have about 43% vs. 35% in 1930, and Ford 35% vs. 38%, though Ford production gained sharply in Feb. Michigan Labor Dept. reports strong turn toward normal conditions in late Jan. - early Feb.; auto concerns reported payrolls up 83%, while reports from 422 concerns in all lines reported payrolls up 53%.

US gold imports have continued steadily, though not in sensational amounts; total received so far this year is $73.7M, with minimal exports.

NYSE bond trading (US govt., foreign, and corp.) in Feb. was $194.4M vs. $264.1M in Jan. and $203.2M a year ago.

Official French figures showed 44,644 people on official unemployment relief rolls, vs. 11,952 at start of year. Chamber of Deputies passes 1931-32 budget with estimated $2.029B spending, $2.030B receipts; estimated surplus of $462,000 smallest in years; rejects socialist motion for 2% cut in war materials.

France has at least temporarily stopped importing gold; development almost entirely due to high open market rates being maintained by Bank of England.

Manchester cotton market reports sharp improvement in inquiries; substantial gain in business hoped for after lifting of Indian boycott.

Italian 1931-32 budget deficit estimated at 424M lire, or $23M; large drop in receipts predicted. Italy gives up plan to import large amounts of Soviet grain, agrees to fill requirements from Hungary.

Plan for reorganization of Chelsea Bank appears near approval; NY State banking dept. confident plan will repay depositors in full.

Exports of radio equipment in Jan. were $1.673M vs. $1.523M in 1930; exports of all electrical equipment $7.927M, down $4.837M from 1930.

Company reports since Jan. 1: 210 companies reported higher earnings vs. 1930 and 839 lower; 800 dividends unchanged, 45 increased, 167 cut.

Sears forms Allstate subsidiary with capital of $350,000 to offer auto insurance to underserved customers in rural areas; all sales will be by direct mail.

Hershey sales were down 7% in 1930, but profit margin hit a record high 21%, leading to record earnings; lower raw material prices helped.

A&P reports Feb. sales $82.4M, down 4.3% vs. 1930; however, this was due to price declines since tonnage sold was up 10.7%.

Companies reporting decent earnings: Pitney-Bowes Postage Meter, Canal Construction Co., Richardson Co. (box manufacturing).

Theatre:

Napi - Farce starring Ernest Truex as Paris shopboy Aristide Latouche, who is discovered to be Napoleon's double and enlisted by his courtiers for a mission of the utmost delicacy - breaking off the Emperor's affair with the voluptous performer La George. Of course, Aristide fouls up matters since he has long been besotted with La George himself, and refuses to leave her boudoir. Play is “awkwardly fatuous in pursuit of a familiar type of naughtiness.”

Jokes:

"Customer - That parrot you sold me hadn't been in the house a day before it began to swear dreadfully. Dealer - Well, Madam, you asked me for one that would be quick to learn."

Inscription on a long neglected Boston gravestone: "Sacred to the memory of Eben Harvey who departed this life suddenly and unexpectedly by a cow kicking him on the 15th of September, 1853. Well done, thou good and faithful servant."

Some remarkable names: R. Corker of Des Moines, operator of bottling plant; Sam Temperance of Evanston, jailed for intoxication; the Doom brothers of Illinois, undertakers; Dr. Pruner of Omaha, a surgeon.