Deals & Developments

Better Rails. By last week 73 important railroads had reported their September results. Their figures fully equalled the hopeful expectations stirred by the steady rise in September carloadings. Total net operating income was $49,533,000, only 7.2% below last year. Thirty-four roads, including the New York Central, St. Paul, Western Pacific, Louisville & Nashville, Atlantic Coast Line, Southern, Pere Marquette and Central of New Jersey, had better operating incomes than a year ago. For the first nine months of 1932 the 73 roads made 48.4% less than in 1931. The extreme low was in July when returns were only one-fifth of 1931's figure. Last week's carloading report (week ended Oct. 22) showed a drop of 8,405 cars to 642,173. The normal trend until the year-end would be a steep decline but railroadmen last week were inclined to expect better-than-normal performance.

The roads last week were still cautious about ordering new rails despite the $3 cut to $40 a ton made last fortnight by the steel mills (TIME, Oct. 31). An order for 4,000 tons was placed by Delaware, Lackawanna & Western. Added to the previous 6,000-ton Illinois Central order this gives $400,000 new business to the steel industry. Big railroad buying will probably be deferred until late December. The 10,000 tons ordered at the new price last week is only rail enough to replace about 50 mi. of track.

Better Bankers. Three years ago the first signs of weakness in Wall Street sent members of the Investment Bankers Association scurrying home from the convention at Quebec. They arrived in time for the first big stockmarket break, the anniversary of which came last week (16,410,000 shares, ticker two and one-half hours late, Telephone at 204 -28, Allied Chemical at 204 -14. "Leaders Confer, Find Conditions Sound"). Last week nothing broke up the convention. They heard Arthur Atwood Ballantine, Undersecretary of the Treasury, make such observations as: "What the position of the Government will be at the end of the fiscal year 1933 depends upon total expenditures and revenues for the full twelve-months period. . . . Financial problems ahead unquestionably require firm and intelligent handling." Elected president for next year was Frank M. Gordon of Chicago's First Union Trust & Savings Bank.

Personnel

Last week the following were news:

Cyrus Hermann Kotzschmar Curtis resigned as president of Curtis Publishing Co., became chairman.

Sam Katz resigned from Paramount Publix Corp. in which he was a director, vice president and member of the executive committee.

Harold Elstner Talbott Jr. resigned as chairman of North American Aviation Inc.

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