Show MONEY MARI MARKETS ETS By James McMullin Th The Telegrams Telegram's Exclusive Observer Along Wall Street Streel NEW YORK YORK JOhn John n L. L Lewis is placed in a tough spot by the internal internal in internal in- in row In the United Automobile Automo Automo- bile Workers The e radical leaders recently ousted by President Homer Martin Martin Martin Mar Mar- tin are demanding that he name a special administrator to run the union pending a new election of officers Another faction wants to keep Martin in office but have havea a C I 0 O adviser appointed to tone I him down And then there is Martin Martin MarI Mar Mar- I tin in person who has currently established himself as boss of the union and doesn't propose to surrender surrender surrender sur sur- sur- sur render the fruits of his victory Lewis is thus virtually forced to I take a position on the ticklish communist issue He is not a communist or a red sympathizer himself but there is nO doub hat he has accepted communist assistance assistance as as- assistance to speed the building up of C I 0 O unions If he be now gives aid and comfort to Martins Martin's enemies he gives substance to A AF AF AF F L charges that the he whole C CIO I 0 is as red If he stands by Martin he risks violent Insurrections Insurrections insurrections in unions where the communist communist communist influence is strong The red chicks he took into his flock so casually have come home to roost with a vengeance vengeance Baltimore Ohio's announcement announcement announcement announce announce- ment that savings banks and Insurance in insurance insurance in- in companies which own its bonds have agreed to allow the interest payments due them to be deferred for a period of years doesn't mean that the roads road's financial problems are so solved not solved not by a long shot The interstate commerce commission commission com corn mission and the securities and exchange exchange exchange ex ex- ex- ex change commission will approve approve the plan before it can be put into effect If they refused to give it H t they would have to take the rap when the road went broke The TheR TheR R It F Cs C's approval has already been given given naturally The deferred Interest Interest in interest In- In terest proposal will relieve it of the embarrassing choice of either making further loans of highly questionable soundness or of let- let tins tins' B R- O 0 O. O PY IO n bust The toughest hurdie hurdle still ahead is Js the fact that the assent of many bondholders besides the sav say sayings savings savings ings banks and insurance companies companies com corn pasties must still be obtained This is especially true of the junior convertible convertible convertible con con- issues almost all of which are owned by individual rather than institutional investors B. B O. O is using the institutions' institutions ex ex- example example ample to try to persuade them to follow the leader leader but but there is s no assurance yet that they will do so Even if they do the eventual showdown will only be postponed not not averted Financial experts unanimously agree that sooner or later Baltimore Ohio's top- top heavy capital structure must be reorganized reorganized but but the the process might be somewhat less painful if undertaken in a more prosperous period Shrewd political analysts say that the new dealers are in for a cruel disillusion if they expect theW the W P A vote to help them in Georgia Georgia Georgia Geor Geor- gia as much as it has in some other states For o one e thing half of those on Georgia W P A rolls are colored and negroes do not vote in that state For another voters in the senatorial senatorial sen sen- atonal primary had to register register- and pay a poll tax in order to do doso so last so-last last scrim At Af the Sen ator Georges George's re i ti looked joked k d to be a dried cut affair So comparatively few W V P ers A-ers went to the trouble and expense of registering Its It's too late now even if th the dough were put up by other people This angle will damage damage damage dam dam- age L Lawrence wrence Camps Camp's chances plenty We recently reported that thata a large insurance e company negotiated negotiated a loan to a tobacco to tobacco to- to bacco company that a leading New York bank had been trying hard to land by charging a slightly slight slight- ly lower rate of Interest Increasing competition from insurance insurance in in- n companies for rate first industrial loans is giving bankers a pain in the neck This isn't the first time they have had a nice piece of business grabbed from under their noses They cant can't offer offer of of- fer as long maturities as the In Insurance Insurance In- In insurance men because they must consider demand deposits a. a as a cur cur- I rent liability whereas insurance p F concerns can figure their annual tt i obligations very accurately in ad T vance 1 U But the the- banks have privately private t H worked out a formula which they believe bel will freeze out their rivals ein e- e in many cases Next tine time a C grade A industrial prospect w i to borrow for a medium term t W they will offer the money for three thrU years at of 1 per cent a year w r interest rate the Insurance con com conj I j L panics cant can't possibly meet No lo matter what R F C j l Y C Jesse Jones thinks both bail banto J Jand i Bu and insurance concerns are i a t 1 1 c most desperately eager to Ii i ta safe and profitable employment O for idle funds i I There is evidence that the bea O understanding which w usel 1 to exist between the J machine in New York City and ei upstate Republicans is being U tt- tt stored on an effective basis Republicans dominate the Net N York state constitutional corner corner- Reed tion Uon which has made an amaH t ing hash of its job They jammed through with through with sub rosa Tammany Jt I assistance assistance-a a pretty raw red refs refs' proposal If It the voter accept this wholesome gerry zerry- ut it will practical ot s control guarantee Republican the state legislature perpetu I a quid pro quo G. G 0 O. P. P P politics politics' oi IJ rl aided to sneak over O overa f 11 a surprise move to abolish proper I representative voting It i iwas was proportional 5 f 17 which killed the wigwams wigwam's ho W lP es n 19 of dominating the New York City wu It l lr council elected last year f IfIl i f 1 Id Copyright 1938 for The Tele j i I C IV |