Full text of Commercial and Financial Chronicle : April 11, 1946, Vol. 163, No. 4480, Section 1

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■

!&••^v.X&'W^W ji% !%ffk'* *'

Reg. U. S. Pat. Office

Number 4480

Volume 163

New

York, N. Y., Thursday, April 11, 1946

Price 60 Cents

Copy

Business Prospects in the
UN Beset by Diplomatic Offensives
Post-Reconversion Period
Security Council
By A. WILFRED MAY

becoming an arena for political maneuvers. The Iranians have
joined in utilizing .UN as k tool for their national interests. : Together with Poland, Moscow is about to embarrass the Western Powers with the Spanish
"issue"; and with accusations lof American imperialism in Iceland and China.
Crucial controversy about to be
reopened by Soviet's demand regarding Iran
procedure, and over permanent Veto policy.

By MURRAY SHIELDS*

Resident

and Economist, Bank of the Manhattan Co.

[declares that

our emphasis should be on property creaEu of full employment and distribution methods. Full
Jis necessary to validate our increased national debt; to

\ threat of inflation; and to fortify the nation against
lomic, political, and military emergencies. Mr. Shields
>ur present prospects
as bright, because (a) we have
liquidated our psychological depressants of the 1930's; (b) our
markets have expanded tremendously; (c) the "know how" en¬

impact than ever!
Just why
surprise anyone is hard to understand — excepting as it is explained by
wishful thinking. Why it should be
imagined that suddenly because of a particular day's
turn of events the Soviet has
abruptly forsaken its so-persistently evidenced long-term
international aims and basic policy, is difficult to realize. From Dumbarton Oaks
through

this

It has become imperative that the nation's economic policies be
redesigned so as to stimulate a rapid and sustained expansion in the
volume of pro¬

Management and the

ingly clear,
t h

emphasis

been

shifted
other

By AUBREY G. LANSTON*
Vice-President of the First Boston Corporation

objec¬

Mr. Lanston analyzes

has

It.

tives.

ionable to

policy of low interest

re¬

gard full em¬
ployment in¬
of

rates in connection with debt

pressures;

still With

full

us;

vital than increases in pro-

•'An address by

Mr. Shields be¬

fore the Louisiana Bankers Asso¬

ciation, Biloxi. Miss., Apr. 8, 1946.
(Continued

on page

1956)

securities.

interest

controlled
focused

the

Attention

rate.

manner

in which

*An

Aerovox Corp.*

Pratt's Fresh

Nu-Enamel

Frozen Foods, Inc.

page

to make

which to
the

Hirsch & Co.
Successors to

HIRSCH, LILIENTHAL & CO.
Members New York Stock Exchange
and other

Chicago

4. N.T.

Teletype NY 1-210

Cleveland

Geneva

INVESTMENT

SECURITIES

London

(Representative)

64 Wall Street, New York
BOSTON

far

Pacific

BOND

appears on page

Bond

BROKERS

1980.

State and

Municipal

Brokerage

for Banks, Brokers

REQUEST

and Dealers

Members New York Curb Exchange

Tel. DIgby 4-7800

Tele. NY 1-733

Inc.

Scranton

Preferred

$2.40

Dealt In

Holden & C9

Kobbe,Gearhart&Co.
INCORPORATED

NEW YORK STOCK EXCHANGE

If ember»

Wall St.. New York 5. N. y.

telephone-

rector 2-6300

Security Dealers Ass'n

Street
New York 5
Td. REotor 2-3600
^ Teletype N. Y. 1-570
Phtiadelpbte Telephone?
jCnttfptiM 5015

HART SMITH & CO.

Members New York Stock Exchange

^tSO Broadway, JTowYork B» JT. Y.

45 Nassau

(.5^ TOlOphone: REctor 2-8600
.**•'& »V"

"*'■'rz-''■

Curb Exchange

Y.
on

request

New

York

52 WILLIAM

Security
ST., N. Y.5

ira haupt & co.
Members
and

Members

Reynolds & Co.
?-V'

*UniversaI Winding Co. Com.
request

Analysis

Conv. Preferred

Spring

$6 Preferred

Conv. Preferred

*Prospectus

NEW YORK

Brook Water Co.

♦Raytheon Manufacturing Co.

MARKETS

MEMBERS

THE CITY OF

*SoIar Aircraft Company
90c

Bull,

NATIONAL BANK

New York 4

^Detroit Harvester Co. Com

SECONDARY

THE CHASE

Hardy&Co.
30 Broad St.

Conv.

Bond Department

Members New York Stock Exchange

LOS ANGELES 14

Bonds

Service

634 SO. SPRING ST.

WALL ST.

Common

FINANCE

primarily demonstrated in

1968)

page

Northwest

Acme Aluminum Alloys,

CORPORATE

Index of Regular Features

NEW YORK 5

Woonsocket

Springfield

devious. This has, of course, been

Lanston

^—INCORPORATED
48

fundamental deterioration from Lon¬

(Continued

W/LONG and-COMPANY

PHILADELPHIA

Troy
Albany
Buffalo
Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Washington, D. C.

proceedings,

1957)

HUGH

concentrate the diplomatic diatribes otherwise
coming
radio or flowing from Wasmngtuu and London

prominent guest's dashing exit from the table), the maneuvers are

WholesaleVisfrjbufors

1927

Exchanges

85 Broad St., New York
HAnover 2-0600

Established

Wilfred May

in that the erstwhile violent fracases between
Bevin and Vishinsky were at least in the open and therefore in a
sense healthy brawls.
Here, while all is more polite (excepting the

PROSPECTUS^OM

R. H. Johnson & Co.

convenient forum

Moscow

The situation here shows

don's

BO^liND

Prospectus on Request

'-jy

(Not that Moscow's editorial and vocal charges
imperialism and other wrong-doing have thereby notice¬
ably lessened.)

MANHATTAN

request

furnishes

conferences.

Common Stock

Prospectus

been

increases

keep the conversation-ball rolling, and
"'sensational," but wholly insignifi¬
cant compromises (as on the veto at Yalta and
San Francisco).
§.: Moreover here at Hunter it is now evident
that the Security Council is going to be used as
an arena for diplomatic offensives and political
even

press

by Mr. Lanston before the Seventh Annual
Banking in Pullman, Wash., April 4, 1946.

(Continued

ences

American

address

Conference

Molotov from coming,
sending their able dialecticians to the confer--

over

public debt have caused similarly large in-

San Francisco Mines

has

strongly sovereign aims—politi¬
This naturally has not pre¬

vented Messrs. Stalin and

own

economic.

maiieuveringb.

During the last six to nine months real prog¬
ress has been made in awakening the country
to the problems of debt management and of a

the

Gaumont British

and

but in action she has time and again made it crystal
clear that the international body must be subser¬
cal

that the mechanics of monetization are
that low interest rates may adversely
production as
affect a far greater number of people than they
the ultimatein
benefit; and that there isJoolargei Proportion.of
economic
at¬
the national debt held by commercial banks. Says
tainment,
t o
some progress has recently been made in arousing
measure
the
Murray Shields
economic
public interest in debt management, and advocates
progress of the nation in terms of that commercial banks should be
required to in¬
dollars of national income instead
vest a part of deposits in ?special non-marketable
of in the quantity Of goods pro¬
duced, and to believe that the Treasury issues or that^res^rve requirements be
distribution of what we have is increased and secured
by> ibdrt-term Treasury
stead

cooperation. Of course she has been willing to
lip service to the Organization's lofty ideals,

pay

vient to her

management and money supply, and concludes that monetizatiqn of the
debt has been the underlying cause of
inflationary

fash¬

become

Hunter, Moscow has unmistakably shown

that for her, UN does not call for real international

Controlled Interest Rate

somehow

has

Debt

outstand-

but

^ Yalta through San Francisco through London and
'

ought to

should

That

duction.

HUNTER COLLEGE, N. Y., April 10—After
only the briefest respite the "EastWest war of nerves" has flared
up again—with greater

suing from our war experience has increased industrial potential.

fact

New

York

Stock Exchange

other Principal

Exchanges

Assn.

HAnover 2-5980

111

Broadway

New

York

REctor

2-3100

10 Poet Office Sq.
Boston 9

Hancock 37B0

Tele. NY 1-1920

Montreal

Toronto

Direct Private Wire to Boston

mmrnt

is I

Dealers

Bell Teletype NY 1-895

Yew York

V; -MJ

| Hi

Thursday, April 11,1946

FINANCIAL CHRONICLE

COMMERCIAL &

THE
1926

-Y

,V.\
—

Trading Market* in:

——

Pfd. & Com.
Haven R.R.
Linn Coach & Truck*
Miss. Valley Barge
Hamilton Radio

p. r. mallory

Old Frisco,

*Prospectus Upon

Vice-President, Bankers

Request

Established 1920
Members

York Security Dealers Ass'n
Nat'l Ass'n of Securities Dealers, Inc.

Let

P1..N.Y.5 HA 2-2772

TELETYPE NY

BELL

start

Commop

with

out

few$>

1-423

Trecjfcer

cannot con¬

private en¬
terprise
sysa

especially the
credit

remains

cheap money
policy.
It is

private

unders tood

ing,

Baltimore Stock Exchange
Broadway, N. Y. 5
WOrth 2-4230
Bell Teletype N. Y. 1-1227

Members

120

func¬

of bank¬

tion

Third, there

get"

world-wide

W. & J. Sloane

Company
Common

York Curb Exchange

Neto

31 Nassau 3treet, New

York S

7-4070
NY 1-1548

Telephone COrtlandt
Bell Bystem Teletype

solidate

and 1918.

proportion to total
indeed "abnor¬
the old concep¬
it was negligible in

But

tion.

and

Buffalo, N. Y-, April 1, 1040. - —
(Continued on page 1953)

The

which

War

Corporation

Common. !

Home Title

A. S. Campbell
Coinmon

Paul

the

has

Government

for

means

raising them to 100. Barring com¬
plications in international poli¬
tics,
it should ; be ; possible
to
mMeve that end in the course of

which the Treas¬
is seeking tp raise consols to

twofold: By maintaining a
in the

scarcity

Capital Stock

Bought—Sold—Quoted

;

of. long-

supply

Government

term

loans,

and

steady demand by in¬

assuring

H. G. jRUNS & CO.
20 Pine Street,

New York 5

Members
New

Telephone: WHitehall 3-1223

York Stock

New York Curb

Bell Teletype NY 1-1&43
120

REctor

The first means is oper¬

ated

■

the

venting

2-7815

which

floating

effected

second; is

boom in

would

from

abstaining

through

funding

Exchange
Exchange

BROADWAY, NEW YORK
Tel.

vestors.

McDonnells ft

rates.

money

The

debt.

through:
common

divert

pre¬

stocks

investment

every

We Maintain Active Markets in U. S. FUNDS for
ABITIBI

Colonial Mills

POWER &

BROWN

Publicker Industries

COMPANY, Common & Preferred
MINNESOTA &

1 »■•;

)

1919 there was

bank rate was

37 Wall

Bell

Teletypes—NY

Hanover 2-4850
1-1126

liable to go

reborrow

maturing
much higher, rates. This

115

1127

able' to

determine

chooses

short term.

For

BROADWAY

Common

unless

Bqnks, Brokers & Dealers

Consolidation Coal

Cayuga &

the

Susquehanna

rate

borrow

and

5s/2000

Minneapolis & St. Louis R.R.
All

Issues

GUDE, WlNffllLL & CO.
Members New York Stock Exchange

1 Wall St., New York

5, N. V.

Teletype NY 1-953

Dlgby 4-7060

there

This

not

being so, the
floating
debt

billions

involve

Eastern Sugar Associates
Common

pounds

Preferred

risk.
The
position to re¬

any

new

same

or Treasury
bills and depos¬
In such cir¬

rate.

funding of Treas¬
bills through the increase of
medium
and
lpn^-term
loans
bearing interest at between 2W
3%

and

would

considered

sheer

waste • of
the, taxpayers'
money.
New borrowing, too, is

SCRANTON

page

Quotations

Upon

Request

issued)

MICHAEL HEANEY, Mgr..
WALTER

Troster,Currie & Summers
Members N. Y.
74

Security Dealers Ass'n
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private Wires to Cleveland

Detroit

Pittsburgh

Louis

J-G-White & Company
INCORPORATED

37 WALL STREET

NEW YORK 5

Members New York Curb

Tel. HAnover 2-9300

Tf4e.

Exchange

Chicago Stock Exchange

39
-

KANE, Asst. Mgr.

Joseph McManus & Co.

ESTABLISHED 1890

NY;*il815;

Oi*by 4-3122

120

New

York

Stook Exchange

York Coffee & Sugar

WALL

ST.,

Exchange

NEW YORK

TEL. HANOVER 2-9612

Western Union Leased Line Stocks
International Ocean Telegraph CoPacific & Atlantic Telegraph CoSouthern & Atlantic Teleg. Co.
Empire & Bay States Teleg. Co.

New Common
(when

New.

Jefferson-Travis Corp.

Securities

WATER SERVICE

FAltlt & CO.
Members

1949)

Curb and Unlisted

BOUGHT—SOLD—QUOTED

Tele. NY 1-2908

Buckeye Incubator

Chicago, Mil,, St. Paul & Pac.

over

to raise them.

SPRING BROOK

Trading Markets

HAnover2-0600

cumstances the

Teletype NY 1-572

Common

25 Broad St., Now York 4, N. Y.

why they should rise,
the Treasury should decide

existence

Bought-—Sold—-Quoted

York Stock Exchange

Stock & Rights

^District Theatres Corp.

Members New

no reason

its at the

NEW YORK 6, N. Y.

Haile Mines

Harrisburg Steel Corp.

Simons, Unburn & Co.

debt

At present, bill rates

shade

HAnover 2-9470

Consolidated Film Ind.

may now be consid¬
virtually non-existent
thanks to the adoption of a man¬
aged
monetary
system
in
the
meantime.
The Treasury is now
in the enviable posit'on of being

which

in* Ji'l

risk

depos5ts by

Exchange and Oih,er Principal Exchanges

Telephone BArclay 7-0100

Bowser Inc., Com.

Prospectus Available

(Continued

■III,

and the Treasury
was.exposed to the .risk of having

ered

: NEW YORK 8

V
Teletype NY 1-1140

place maturing bUls

Goodbody & Co.
Members N. Y. Stock

Security Dealers Assn.

St., N. Y. 5

Members New York Curb Exchange
64 WALL ST

ury

oreeuewiC-ompanu
Members N. Y.

PAPER

Frank C. Masteison & Co.

anytjjnpqient,
to

Prospectus on-Request

For short money rates

Treasury is in

ONTARIO

Canadian Securities Dep't.

the time entirely at the
mercy of market influences.
The

does

STEEP ROCK IRON MINES

Stromberg-Carison

Tudor City Units
*Wilson Brothers Com.

amount ng

PAPER, Common & Preferred

BULOLO GOLD DREDGING

Alexander Smith Carpet Co.

Hamilton Gas

the large size of the float¬

ing debt.
were

Stamped Preferreds

(Va.)

Common Stock

view with grave

reason

concern

are

Boston & Maine R.R.

System Teletype NY 1-1919

Central States Elec.

rising lately—apart

par are

Lincoln Bldg. Corp.

Bell

Government

so.

been

ury

Exchange

Broadway WHitehall 4-8120

almost

the Government is not in the leas

this year.

Guaranty Co.

Common

Members New York Curb

term loans.

Einzig

The means by

Central States Electric

Exchange

with the aid of shortNotwithstanding this,

entirely

policy is amoitious, but

financed

was

Bymdiin

& Co.
Members New York Stock

comparison with the floating debt
inherited from the second World

not excessive¬

Publicker

was

mal" according to

vernment

% Preferred

its

and

indebtedness,

long-term
loans.

Tennessee Gas & Trans.

The size of the floating

debt,

tablishing the rate of
2lf% for irre¬
e s

deemable

Central States Pr. & Lt

"abnormal"

there¬

par,

floating debt that rose to an
level between 1914

the

consols

loans have anxious tp fund any substantial
from a part of the huge floating debt.
temporary setback caused by the The change is largely due to the
*An address by Mr. McGee be¬ Persian
dispute—and consols at fact that between 1919 and 194f
fore the Buffalo Chapter of the
I4V2 are now at their highest the Treasury has succeeded in as¬
American
Institute of Banking, ooint since 12 years.
And the suming full control oyer short

Vanderhoef & Robinson
Ifembtri

of the nations over to Gov¬
ernment. This has already been
accomplished in England, Austra¬
lia, New Zealand and Argentina
and only missed by
a narrow
margin in Canada last year.
Fourth, private banking in this
country is now faced with com¬
petition from some forty credit
agencies of our Government.
Now, if we accept these prem¬
ises,
we
must
ask
ourselves
power

400 shares

Government's policy to con¬
as
much as possible of

the

rise of

2%%

Electrol

it was

After the. first World War

view

about
Hugh H. McGee

to
turn the credit
tendency

FOR SALE

American Potash B

ernment loans.

is to bring

growing

Anderson Pritchard

market in Gov¬

demand from the

that the "tar-,

ownership.
is

IV-

preventing increase in corporate dividends. Reversal of policy
may come through necessity of defending sterling.
In a speech delivered on April 2, Mr. Dalton, Chancellor of the
Exchequer, reaffirmed once morejiis determination to continue his
<S>

and

banking,

keep interest rates low

and

unless

tem

Stern Bros.

branch office*

our

British Government

and to bring about a rise in British consols
to par. Says no attempt is made to fund the large floating debt and
Treasury has power to fix shprt-tbm ratio, while seeking to divert
capital into consols and bills by discouraging stock speculation

tinue to have

Standard Screw

L15S7"

La.-Birmingham, Ala.

Direct wire* to

calls attention to policy of present

Mr. Einzig

Second, we
recognize that

Seven-Up pf Texas

this

By PAUL

country.

Mayflower Hotel

New Orleans,

EINZIG

Exchange

St, New York 4, N

HAnover 2-0700

Preferred

Kearney &

Members New York Stock

25 Broad

sys¬

tem

Coal

Bought —Sold —QmuJ

—*

premises—
First, we recognize the success
over the years of the private en¬
terprise

Elk Horn

* co., inc.

credit power oyer to governments and their credit agencies
operating in competition with private banks. Says banking in this country belongs in the banks .and
should not be thrust on back of taxpayers.
Urges changes in misthods of providing credil
changing basic principles.
Stresses the human elements ot integrity, judgment and confidence m cred t
and denies it is dependent op mathematical ratios.
Advocates hanks cooperate in considering credit
applications and not turn them over to government agencies without due deliberation. Wants more risk
loans and closer contact through advisory services wi h mall borrowers.

New

Bxohange

Trust Co., New York City

deplores tendency to turn

Bank official

king & king
♦O

McGEE*

By HUGH H-

N. Y. New

sold

quoted

Arnhold and S. Bleichroeder
30 Broad

New York 6
Teletype NY U16J0

bought

WHitehall

3-9200

,NCv
v

New

Teletype

York 4

'NY

ljjj}

Number 4480

(Volume 163

THE COMMERCIAL &
FINANCIAL CHRONICLE

The Reparation Settlement

The

By DR. M. 3. BONN
(

Economist and Advisor to Germany

World War I reparations
present reparations have in view the destruction of
potential and not a payment for war costs, and thus
on

German

ble

war?:

1919.

mates

exaction

ample

in-:

demnities. Yet?

policies in the
occupied

(1) The German
marine;

it ;

both purposes.
The original

(3)

plan conceived

$20 bill¬
Moritz J. Bonn
ions,
ab out
than
United
$5 billidns
more
States experts had thought feasi-

German

The four

at Yalta look¬

ed for

pation

fuse to bid
and

United

enter-

■

William Chamberlain
disbursements attendant upon
nation's purchasing power has
been, increased.

enormous

.its' prosecution

the

This-supposed "increase

purchasing power," of course, consists of
the emissions of irredeemable
paper currency; of created bank cred¬
its; and of Government debt held by the public.
porations and individuals and

was

It is owned by

(Continued

;

accepted by its original holders in

Yorfc Security Dealers, Assn.

39 Broadway

New fork 6, N. Y.
HAnover 2-8970

on page

1965)

Teletype NV 1-1203

General

of. military occu¬
which Germany; was

divided

were rearranged for repa¬
ration purposes; the three Western

(Continued

1960)

page

Progress oi 'Hold-the-Line' Order
Government War Control Administrators report to President on success
"trusteeship" and forecast future prospects. Say last remnants

Asserting that private enterprise in housing cannot compete with
business, Mr. Bliss points out that each sub¬

kept until June 30, 1947.
Contend average market basket of
groceries costs
ho more, than three
years ago, though other classes
of commodities have risen in
varying degrees and
that general level of consumer prices has increased
31% since September, 1939. Say civilian goods
production during war exceeded any previous rec¬
ords, and warn that to overcome inflation danger

„

New York laws

as imposing
heavy long term financial burdens and
that artificially induced low rents on housing projects makes
private capital seek investment elsewhere. Contends slum removal
projects are not benefiting the poorest classes and suggests as a sub¬

says

- •

(1) sound building codes; (2) annual building inspection;
(3) public purchase of slum areas and resale to private interests;
(4) direct family payments to those in need; and (5) removal of
housing subsidies.
Our nation

was founded by people: who believed in the demo¬
and the free enterprise system.
They endured hard¬
ships and pri-®
:
—
vation to es- terprise system came to be the
itablish a land American way of life.
in which hab¬
It must be apparent to every
its of individ¬ observant and
thinking citizen
ual thrift and that our free enterprise system is
personal inde¬ under serious attack. That attack
pendence be- is the more dangerous because in
jcame hall¬ many respects it is insidious, fre-

address

Mr.

strong, as men

Club,

and

women

Chester

future.

New

York

(Continued

City,

on page

Reilly & Co., i»,
Members
York

40 Exch.
*

Dealers Assn..

HAnover
'Bell

System

Boston.

2-4785

Teletype.

Private

Wires

Chicago

1-2733-34-35
to

Los

Angeles''

TRADING MARKETS
Thiokol Corp.

re¬

This report purports to give an accounting
of trusteeship under the "Hold-the-Line" Order
of April 8, 1943, as well as the
prospects for the
The tone of the document indicates satisfaction with the

security

PL, New York 5, N. Y.

Miller Mfg. Co*.

Billings & Spencer

Wilcox-Gay Corp.
Kinney-Coastal Oil
Doyle IVBffg. Com. & Pfd.

ture.

Bowles

progress made in

holding down inflation but contains

controls should continue

will be difficult to

the inflation

warning that

htmloD
Members New York

170

Belt

[o.m

Security Dealers Assn.

Broadway

WOrth

System

2-0300

Teletype NY t-84

danger in next few months

overcome.

The full text of the report follows:

(Continued

Haytian Corporation

1978)

page

Punta Alegre Sugar
We

interested in

are

Eastern Sugar Assoc.

offerings of

Lea Fabrics
t

High. Grade

Bliss at
Kiwanis
April 3,

Public Utility and Industrial

1946.

toiled

April 8, President Truman released

Request

New

ministrator, Civilian Production Administration,
and Clinton P. Anderson,
Secretary of Agricul-

marks of char¬
*An

J. F.

port made to him jointly by Chester Bowles,
Director, Office of Economic Stabilization; Paul
Porter, Administrator, bffice of Price Adminis¬
tration; W. Willard .Wirtz, : Director, National
Wage Stabilization Board; John D. Small, Ad¬

stitute:

luncheon meeting of the

Prospectus

in next few months wilt be difficult.

sidized government project is a deficit operation and that taxpayers :
will bear the burden over a long period.
Cites both Federal and

the

Members New

cor¬

Chamberlain, who resides in Saratoga, Calif.,
formerly President of the United Light & Power Co.

government in the

na¬

La Ja

Mr.

President, Railroad Federal Savings Association, New York City

grew

Dye Works

Holding Co.

Brunswick Site

are more
strange and none less justi¬
fied, than the belief that as a result of the war

zones

into

4-6551

Artists

Piece

Huron

;

them lew

By GEORGE L. BLISS*

acter. Our

STREET, NEW YORK

Telephone WHitehaH

of price control should be

tion

Obsolete Securities Dept.

WALL

Many singular beliefs respecting the nation's
economy have recently gained currency.
Among

and the

re¬

obsolete bonds
IT CAN'T HAP¬
We buy virtually anythe kind of junk you
your

but

PEN HERE.

consistently

piayr

stocks,

Thing—even
have!

of their

cratic process

houses

level.

•Editor's Note:

prise.

its prewar

neutral;

•

mercantile

(2) German investments in for¬
eign countries—Allied as well

•seemed possi-'
ble to blend

HERE!
Other

reliable esti-i

Germany's

-1

by
copying
Nazi
looting.

countries,.

remaining
wealth could be ;made. Tn Rejurof
a definite
sum, each Ally was to
[receive a percentage of all tsikings.
*
5 'Leaving aside military and naval;
booty, reparations -were ; to. come
from the following sources:,

;

IT CAN'T HAPPEN

crease,

dropped W

was

(Potsdam because

the

of money and

purchasable things. Distin¬
guishes between "purchasing medium," i. e.
money
and credit, and
"purchasing power" and holds that
mpney created by paying high wages for
producing
things to be immediately destroyed cannot add to
national prosperity. Sees no prospect for
early de¬

low

consid- #
ered more im-

'portant th an I

AND COMMNY

money

in .outstanding purchasing medium, and lays
in Potsdam has ayoided part of inflation to destruction of wealth due to
Its main object was: the! war*- Looks for stabilized
value of dollar much be¬

potential. This
was!

amount

B. S.

By WILLIAM CHAMBERLAIN *

has purchasing power only to the extent that
there nre things available for
purchase, Mr. Chamberlain maintains that
ceiling prices and rationing are only temporary ex¬
pedients to bring about a balance Between the

Describes the reparations plan
adopted at Potsdam, as well'as work of the Allies Reparation
Commission.
Indicates that Russia has gained most both through
seizure of private property and territorial expansion.
Deplorei
seizure of private property, particularly that of banking and finan¬
cial institutions not contributing to war potential, and holds funda¬
mental weakness of settlement arises from absence of central
German financial authority.
\
Reparation Settlement agreed upon
some of the pitfalls of the Versailles treaty.
destruction of

"Puchasing Power" Fallacy
/

Contending that

points out that
Germany's war
avoid pitfalls of Versailles Treaty.

The

.1927

•!

U. S. Sugar

General Aviation Equip.

Pressurelube, Inc.

,/•

1964)

belief that he
*

who
•

George L. Bliss

the

his

Spencer Trask & Co,

labors

-should

fen joy

fruit

efforts.

nus, the encouragement of indi'idual initiative and the free en-

Stromberg-Carlson

25 Broad Street. New York

Telephone HAnover 2-4300

Conestoga Trans.
P. R.

H1 embers New

Latrobe Elec. Stl.
.

York Stock Exchange

Security Dealers Assn.

25 Broad St., New York 4, N. Y.
WHitehall
•

3-0272—Teletype NY 1-956

Private

Wife

Boston

Mallory

TITLE COMPANY

CERTIFICATES

Teletype NY 1-5

DUNNE SCO.
Members New York

■

».

••

American Bantam Car

Parks Aircraft
Sales &

Service, Inc.
:V

Bond & Mtge. Guar. Co.

H. H. Robertson

IMyeti Mortgage Co.
Lawyers Title & Guar. Co.

STRAUSS BROS.

N. Y. Title & Mtge. Co.

Members

Prudence Co.

Y, Security

NEW YORK 4
DIgby 4-8640

Newburger, Loeb & Co
*®wber#
II

New York Stock Exchange

5
1

Boll

WHHelialH-ttSO1

Teletype AFT 1-8033

;

Teletype NY 1-832. 834

New

i-.

Stromberg-Carlson

Common & Preferred

"Rights"

Bought—Sold—Quoted
v.

Prospectus

Dealers Assn

Hon. Rose STrssier

CHICAGO 4
Harrison 2075
Teletype CO 12D

Wire Service

Established 1914

•

•-

York-—Chicago—St. Louie
City—Loa Angehss"

Kansas

Board of Trade Bldg.

Broadway

Direct

Telpnhone:
■

BOwling Green 9-7400

Teletypes:
NY 1-375 & NY 1-2751

request

C. E. Unterberg & Co.
Members N.

Trinity Place, New York 6, N. Y.

upon

61 Br

Y. Security Dealers Ass'n

»dway, New York 6, N. Y*

Telephone BOwling Green 9-3565
Teletype NY 1-1666

THE COMMERCIAL &

1928

Thursday, April H,

FINANCIAL CHRONICLE

i94g

By EMERSON SCHMIDT*

Research, Chamber of Commerce

Director of Economic
1ST. 1926

By HON. HENRY A. WALLACE*

actual markets
in 250

Secretary of Commerce

broadened and

Transport*

Armstrong Rubber
&

adequate

Pfd.

glad to have this opportunity to discuss before this Com¬
mittee the extension and revision of the old age insurance provisions
I

Automatic Instrument

S. F. Bowser

Cinecolor

The Committee reluctantly

ahead.

District Theatresf

decided that it would not be ad¬

legislation

visable

Douglas Shoe*

bor, domestic employees, and sev¬
eral other groups

In 1934 and

member

Committee
Economic

Kaiser-Frazert

During the past ten years we
have
obtained
the
experience
which we then lacked.
In 1935,

Se¬

deal

Logansport Dist.
M. Lowenstein & Sonf

Honry A. Wallace

the
con¬

sidered

by the Congress in the
passage of the Social Security Act
in 1935. The problem of includ¬
ing farmers and other independent
business proprietors in the old
age insurance plan was studied at
that time. I arranged to have the
Department of Agriculture exam¬
ine various methods of including
farmers as well as agricultural la¬

Maxson Food System*
Conv. Pfd.

Missouri Pac. Old Pfd.
Mohawk Rubber*

Moxie

bor

the

still
most of
the self-employed from the re¬
quirement of filing income tax re¬
turns. We now have had experi¬
income tax exemptions were

material which, was

factual

in that form.

curity. That
Committee, as
you know, pre¬
pared a great

Hartford-Empire Co.
Higgins, Inc.

temporarily un¬

experience was obtained.
Following extensive hearings, the
Congress also reached the same
conclusion, and the Act was passed
til

the President's

Gt. Amer. Industries*

farmers, agricultural la¬

persons,

iness man.

General Machinery

self-employed

include

the small bus¬

1935, as Secre¬
tary of Agri¬
culture, I was

social insurance

pro-

level which exempted

ence

under the income tax which

indicates

that

for

method
business

bringing most

men

small

under the social

se¬

those

*Dumont Electric
^Princess

Taca Airways

are

enough

of Secretary Wal¬
Ways and Means Com¬
mittee of the House of Represen¬
tatives, April 4, 1946.
(Continued on page 1940)

This leaves to

personal

suit

the

Shops

^Simplicity Pattern

Members

Schmidt

Dr. E. P.

survivors benefits. Although over
70,000,000 individuals had received

by the end of 1944, yet only about
39,000,000 were either fully or
currently insured at that time.
Important groups of workers

objective the
floor
of
protection
should
be
available
automatically
to
as
many individuals as possible.
No
occupational group should be ex¬
cluded
from
the
protection of
Old-Age and Survivors Insurance
difficulties

unless

were

most

However,
that

insurmountable.

Extension of Coverage

the

Chamber

United

study

served

The

various reasons, the

prominent

reason being the
difficulties of administration.

other¬

excluded at the start of the

program for

inclusion,

administrative

are

credits under the program

wage

that

achieve

are

informed

now

and

experience have
clarify many of these

administrative difficulties.

of Commerce

The United

States

developed in
1944, by referendum vote, an
over-all general policyf showing

States Chamber of

Commerce has declared its policy,
with respect to this extension of

be:

coverage, to

Special Letter'

vivors

Committee, April 5, 1946.
Social
—

practical, the pres¬
system of Old-Age and Sur¬

ent

Insurance

tended to

Security

the

cover

should

ex¬

the following em¬

ployees:

Chamber Policies

(a) Employees of non-profit
organizations

and

Report of Committee on So¬
cial Security, Chamber of Com¬
merce of the USA, October, 1944.

f Le Roi Company

New

York

(b) Government employeesFederal. State and local

Request

Venezuela

Wall Street

New York

(d) Other employees not now

Syndicate

covered.

Security Dealers Association

Tel. HAnover 2-8080

♦District Theatres Corp. 0

(Continued

1947)

page

5, N. Y.

Teletype NY 1-2425

!lM.

Lowenstein &

Sons

Great American Industries

*Prospectus

The

request

and

COMMERCIAL

FINANCIAL CHRONICLE
Reg. D. S. Patent Office

William B. Dana Company

j.K.Rice,Jr.&Ca!
Shepard Niles

Iowa Pub. Ser. Com.

Crane & Hoist

New England P. S. Com.

Established

Members N.

1008 *

Publishers
'
1

*•

'25 Park Place, New

Security Dealers Assn.

Corporation

Herbert

Seibert,

Editor and Publisher

•

William Dana Seibert,

Puget S'nd P. & L. Com.

Eisemann Corporation
e

Spec. Part.

\N. 7'

-w-f-qf

Thursday, April 11, 1946

*BOWSER, INC.
ARNOLD BRILHART

t-t

*;:'.

United Public Util.

fProspectus Upon Request

news

twice

week

Thursday

and advertising

and every

issue)

Monday

(complete statistical issue—-market quo¬
tation
records,
corporation,
banning,
clearings, state and city news, etc.)

PRATT FROZEN FOODS

WHitehall 3-4490

request

every

DU MONT ELECTRIC

Broadway, New York 4, N. V.

Teletype NY i-960

Published

(general

HARDY & HARDY

President

William D. Riggs, Business Manager

■

York 8

REctor 2-9570 to 9576

REctor 2-4500—-120 Broadway
Bell System Teletype N. Y. 1-714

North'n New Eng. Co.

upon

of each person.
To

employment

or unemployment without
obtain¬
ing sufficient wage credits to
qualify them for retirement or

taste

United States

FIRST COLONY CORPORATION

Derby Gas

Circular

ered and non-covered

decision

and

fSee:

Cent States Elec., Com.

additional

protection

American Gas & Pow.

^Bulletin

bility
the
building

'"Statement

Textron Wrnts. & Pfd.

Aspinook Corp.

to pay contributions with little
or
prospect of ever receiving ben¬
efits.
These are the persons
who
shift back and forth between cov¬

am¬

bition, initia¬
tive, and re-

lace before

Corp.*District Theatres Corp.

fStatistical Study

Alabama Mills*

ap¬

propriate benefits for others To¬
day many persons actually have

itself.

ety

wise,

*Prospectus and Special Letter Available

U. S. Air Conditioning

Southeastern Corp.

accept the ob

excluded but would afford a
more
continuous coverage and more

soci¬

menace

fore the House Ways and Means

^Electronic Corp.

businessmen

If and when

Old Pfd.

eco¬

♦Statement of Dr. Schmidt be¬

Sylvania Industrial

'that

nomic hazards

either

curity system.

Fireproofing

Upson Corp.

this

use

can

N. Y. New Hav. & Hart.
_

provide

a basic minimum

A broadened coverage
would not
only bring in persons now wholly

the benefits of

Dayton Malleable Iron*
Deep Rock Oil

National

•

administrative difficulties we saw

the

extension

each individual, with

se-

endorse

Old Pfds.

govern¬

objective of compulsory social insurance is to

•

which

Security ;; Act,
|

The main

society in general, through
layer of protection against

gram.

especially

particularly in view of heavy revenues required by

some,

ment for other purposes.

In the short time available, rious
and
were not able to surmount the
w i d espread

Social

and

Chicago R. I. & Pac.

sition to

tributions, but warns that payroll tax rates may become burden¬

jective of greatest possible cover"
age
as^ necessary
for a well
pounded social security program

the

employees is desirable, and sees no objec¬
the self-employed. Holds there is no
oppo!
businessmen to financing the program through joint con¬

tions to its extension to

than the existing scheme.

program

Though pointing out that most Americans have been transformed
from proprietors to wage earners, he contends that small business
man has same problem of economic security as wage earner.
Says
income tax return could be used to assess self employed.

American Bantam Car
Com.

security to comprise all

Secretary Wallace contends that social security should be provided
not only for wage earners but also For farmers and small business
men.
Sees need of social security for all classes and urges a

active issues

Air Cargo

of the U

Schmidt, in presenting the views of the members of the U. S.
Chamber of Commerce, agrees that a broadened coverage of sociai
Dr.

UNIVERSAL CAMERA

Other

Offices:*

135

Salle St.

3, 111.
(Telephone: State 06L1).
Drapers' Gardens, London, E. C.,
land, c/o Edwards & SmithChicago
1

Bought—Sold—Quoted

GALVIN MANUFACTURING CO.

MRD&CO.
EST.

(Makers

UPSON

1926

Motorola

Prospectus

Radios)

COMPANY

«,

WELLMAN ENGINEERING CO.
Descriptive

Circulars

J. F.

request

Buff. 6024

New

Seligman, Lubetkin & Co.
Incorporated

Boa. 2100

Request

Members New

•

;

York Security Dealers Association

Broad Street, New York 4

HAnover 2-2100

matter

second-class

ruary 25, 1942, at the post office
York, N. Y., under the Act of
3, 1879.

Feb¬

at w

Marcn

Subscriptions In United States an
Possessions, $26.00 per year; in Dom:i
Canada, $27.50 per year; Soutn au
Central
America,
Spain,
Mexico,

Reilly & Co., inc.

Cuba,
$29.50
per
year;
Great B:r
Continental Europe (except Spain).
and Africa. $31.00 per year-

Members

York Security

Dealers Assn.

Australia
k

40 Exch. Pt., New York 5, N. Y.
HAnover

2-4785

■

B. Dana

N. Y. 1-1287-1288

nartf'd 6111

Reentered
Circular

TENNESSEE PRODUCTS

120 BROADWAY, N.Y.5
REctor 2-8700

ENTERPRISE PHONES

Request

KENDALL COMPANY

Membtrs N. Y. Security Dealers Assn.

Direct Wires to Chicago and Phila.

•

Bell System

Teletype,

Chicago A

...

1-2733-34-28

Los

Other Publications

Monthly Earnings
„

Private "Wires
Boston,

Bank and Quotation

Record—Mth.ga >

Record—Mth..

NOTE-On account of the

Angeles

foreign subscriptions and
must

be made

New

fluctuate"

remittanc

in the rate of exchange,

advertiser

York funds.

Number 4480

163

Volume

fipilSife

THE COMMERCIAL & FINANCIAL CHRONICLE

The

1929

to
By ROBERT R. WASON*
President National Association of Manufacturers

By A. M. SAKOLSKI

calling attention to the

restricting liberties, and that the problem of the domestic economy
is the recovery of individual freedom. Says OPA prevents produc¬

British Social Security Bill, Dr.
Sakolski recalls the financial collapse of the previous scheme fol¬
lowing the First World War. Points out the heavy and increasing
burden assumed by the British Treasury under the new bill which
according td official estimate will amount in 1978 to £416 millions.
Contends that scheme will involve serious financial burden until the
British worker becomes more productive and British industry and
commerce are permitted to expand to increase the nation's wealth
and income without bureaucratic and socialistic controls.
In

new

The Labor Government of

Great Britain is about to launch

tion of

goods, and through subsidies places increased burdens on
taxpayers. Defends the profit motive in business and holds any

enterprise.

exchange of concessions to pressure groups in
anticipation of votes. Urges end of deficit financing and reduction
of budget to $20 billions.
a

1942.
scope

©The,©'*
of the .

i nsuranee,

benefits is n
only

broa<

ened, but. .the &
benefits them- •

under

th.e/2

happened

of social reforms

y e e s,
A.

According to

the

compu¬

tations of the official actuary,

Government

Treasury; will

one-third of the

about

cost

the

The present British social se¬
curity system was set up in 1911,

just three years before the out¬
of

first

the

world

break

small

war.

ence

cal

of politi-

whether

the

whole

scheme,

(Continued

ht£-'.w£tf

labor ; union
leaders in ex¬

change

full

fiscal policy

economy
is the re- ~

surely

is.;

and

with

both

Knight

the

Crown

Officer,

and

the

Italy,

Italian

Red Cross silver medal with

com¬

bat cluster.
He served in Italy both with the

French Expeditionary

Corps and

G-5, 5th Army, and received four
battle

stars, in

which prevent paign.;

the

Italian

cam¬

r'„ ;

and

production

dark

days of freedom's trial the
has been well served by

nation

thirteen

Bank of Montreal

Bank of Nova Scotia

Democratic Congressmen of
joining with Republic¬
ans to hold the line against fur¬
ther
encroachment
against the

Bank of Toronto

Canadian Bank of Commerce

your

Dominion Bank

the South

Robert R. Wason

of peace

the

war,

orated by the Italian Government

|/History will record that in these

our

in 1776.

was

Croix

Previously he had been awarded

the high octane of production.

goal today as
it

the

the Bronze Star and had been dec¬

groups in anticipation of votes.
The crude oil of politics fouls up

our

freedom.
Freedom

awarded

domes¬

covery

been

Guerre with the silver star by the
French Provisional Government.

Theproblem

now

has

lower the
living. The
wealth-creating processes of the
economy
have been stifled by
regulations that are enforceable
only through new, added controls.
Domestic policy consists of an ex¬
change of concessions to pressure

our

Goldsmith, partner
Haupt & Co,, 111 Broadway,
N. Y. C., members N. Y. Stock
Exchange, formerly Major, AUS,
of Ira

American standard of

for

votes.

Government has progressively re¬
duced the freedom of the indi¬
vidual.

Imperial Bank of Canada
Royal Bank of Canada

*An address by Mr. Wason be¬

Before

sumed

the

people.

all

Manufacturers
Ga., April 5,

Andian National Corp.
Assoc. Tel. & Tel. $6 & 7%

1946.

The emergencies of war

liberties

Georgia
Atlanta,

Meeting,

the

fore

controls as¬
Administration

war,

reduced

(Continued

1946)

on page

Pfd.

Atlas Steel

Brown

Company Com. & Pfd.

Bulolo Gold Dredging
Canadian Pacific Rwy.
Direct Private Wire Service

COAST -TO

1943)

on page

lib¬

accelerated the reduction.
Now,
With the war ended, the Govern¬
ment, would prolong arid.perpetu-

leaders to

undertaking
a
severe
industrial
for a depressed national treasury underwent
This continued for
faced with large outlays, a heavy- depression.
several
years,
during
which
public debt, an already burden¬
(or
Ex¬
some scale of tax exactions,
and the British Treasury
chequer,
as
they call it over
an unfavorable and difficult eco¬
was
forced to advance
nomic outlook.
The question is there),
no

production of goods,

your. money, v
the subservi©©!

years

During the conflict it ran along
fairly
smoothly, but within a
short period after the cessation
of hostilities, Britain, like other
countries,
including
our
own,

proportion as the
by, amounting in 1978 to

involving heavy

bear

58%.
This

vast scheme

with

increasing

years go

Mac-

liabilities.

Sakolski

erties—the OPA that prevents

on our

that squanders

tic

what;

Ramsey

ment undertaking a

Govern¬

the

recall

employers and
ment.

estimating the precariousness of
impoverished national govern¬

the/;

among-

emplo

only

Donald regime following the first
world war to furnish a basis for

vailing; J
scheme, it is©
proposed
to^
cost

has

One

Tonight I would like to talk about these restrictions

The Previous Collapse

in- ©
As

pre

distribute

tem and financial power.

selvesjaresub- 5
stantially
creased.

beneficial

it,
may be, is within the fiscal possir
bilities of a nation struggling to
regain
its
ecbnoftiic;
positiori,
which has been sorely set back by
the adversities of war, by the
loss;
of.its foreign investments, and by■
the disruption of its empire sys¬

maderp£,/P

port

and

consists

liberal social security scheme, patterned along the lines of the
elaborate
j
humanistic

profits will destroy small business and restrict free
Claims the Government is partisan and that its policy

pressure on

BeveridgeRe^Tji

Bertram M.

NAM executive contends that the Administration's policy is unduly

New York

Chicago

St. Louis

Eiectrolux

COAST

Kansas City

Canadian Western Lumber

Famous Players

Los Angeles

Canadian Corp.

International Utilities
Jack Waite Mining
Minnesota & Ontario Paper

STRAUSS BROS.
Members New York Security Dealers Ass'n
'.!

■

Pend Oreille Mines

JOjC'

Board of Trade Bldg.

Broadway

•

White & Company

KANSAS CITY

Pledger & Company, Inc.

BROADWAY, NEW YORK 4

Wires

HUT SMITH & CO.
52 WILLIAM ST., N.

LOS ANGELES

;

Private

Sun Life Assurance

Baum, Bernheimer Co.

ST. LOUIS

WHitehall 4-5263
PHILADELPHIA,,
BOSTON

Steep Rock Iron Mines
Teck Hughes Mines

Incorporated

Harrison 2075
Teletype CG 129

Sherritt Gordon Mines

CHICAGO 4

r>0'

W. H. Bell & Co.
i'

NEW YORK 4

DIgby 4-8640
Teletype NY 1-832-834

Y. 5

Bell Teletype NY

WASHINGTON

Principal Offices

Co.

Noranda Mines

New York

HAnover 2-00M

1-395

* Montreal

Toronto

ACTIVE MARKETS;

PANAMA COCA-COLA
Commonwealth Gas:
.;

t- .Y''

Quarterly dividend payable April 15, 1946

•

Dividends 1946 to date

General Panel
Southern Advance

Bag & Paper

Analysis

Carbon Monoxide
Eliminator

Chicago

San

Preferred

Common

SIEGEL & CO.

Teletypes:
NY 1-375 & NY 1-2751

39 Broadway,

Old Colony

Cotton Mills Corp.

Stand. Fruit & S/S Com. & Pfd.

Railroad

Chicago, Rock Island & Pacific, old com. &

Kold Hold Co.

Missouri Pacific, old common
New

pfd.

and preferred

York, New Haven & Hartford, old common and pfd.

St. Louis & San Francisco,

old common and preferred

United Piece Dye Works

Bought

United Stove

American Beverage

DIgby 4-2370

Boston & Providence Railroad

Corp.

Jeff. Lake Sulphur Com. & Pfd.
Lane

N.Y. ft

Teletype NY 1-1942

Francisco

Rademaker Chemical

American Insulator

Trinity Place, New York 6, N. Y.

Teletype NY 1-490

Harvill

Baker. Raulang

1914

Telephone:
BOwling Green 9-7400

Street, New York 5, N. Y.

Philadelphia

SOYA CORP,

Specialists in Soft Drink Stocks

Incorporated

DI-NOC CO.
33

—

request

ESTABLISHED

Boston

$.50

HouRsseSTrssteb,

E. H. Rollins & Sons

Tel. WHitehall 4-4860

—

$1.25

Approximate selling price

Waltham Watch

40 Wall

—-

—

sold

—

IIODSON & COMPANY,

quoted

Inc.

■-,!

Preferred
•

1MfStlv 1 A

FREDERIC H. HATCH; & CO, INC.

T. J. FEIBLEMAN & CO.
Members New Orleans Stock Exchange

BARKEN
32
'•

Broadway,

New York 4, N.Y.

WHitehall 4-6430,

Tele. NY 1-2500

New York

4, N. Y.

#1 Broad St.'
Bo. 9-4432 /

•

\f* *

Bell Tel.—NY-1-493

New Orleans 12, La.
"
Carondelet Bldg.

Established 1888

,,1$

165

Broadway, New York

MEMBERS N. Y. SECURITY DEALERS ASSOCIATION

Wall Street, New York 5, N. Y.
■

—■

Bell Teletype NY 1-897
,

m
m
("IV

It'¬

ll
■

1 |M

Thursday, April 11,

FINANCIAL CHRONICLE

THE COMMERCIAL &

1930

Moie Exports to Avoid Surplus
Production in the United States
By KENNETH

SUMNERS*

By HON. HAXTON W.

Congressman from Texas; Chairman,'House

Committee on Judiciary

COLLINS*

the next two or.three years we
foreign trade of" from* IB to 20 billions in finished

Colonel Collins contends that in

Veteran statesman calls attention to the increasing centralization

Federal Government, which is weakening the States and
overloading Congress and Federal executives offices. Points out the
adverse effects of this trend on democracy and on the responsibil¬

of power in

must have

ity, self-reliance and freedom of the people and urges the initiation

goods if a depression is to be averted. Holds U. S. industrial ex¬
pansion and large increase of workers means more production than
can be utilized at home, and foreign markets must be found
to

Advocates a movement to preserve the
governmental capacity of the citizen. Says fundamental difficulty
in attaining good government is not in Congress but arises from the
creation of "a bottle-fed people."
Explains sectional switch in
advocacy of States* rights and notes that though we are succeeding
in science we are failing in government.
of

decentralization plan.

Advocates loans to England and France; lower¬
tariffs; and unfreezing of foreign dollar balances in U. S.

prevent surpluses.

ing
to

pur

promote exports.

disagree;
To

on one

much the opportunity of talking to you on this occasion.

very

Yours

is the first in-<£

vitation I have

able

been

since

accept
the

perative that the strength of our
be renewed, and that
the will and wisdom a#nd vitality
to effectuate that renewal must
democracy

announce¬

that

ment

not

I
be

candidate

for

The

country
indicating a
and

concern

apprecia¬

tion

• o u r

danger and a
recognition of
responsibility
and
duty on
the

part of the
private
cit¬

Hatton W. Sumners
i

izens of this country is unequalled

anything

which I have ob¬
during the years of my

served

There

*An

address

York,

New

the

Chamber

State

City,

York

For

general

New

April

made,

the

Load

Federal

long time

have been

increasing the Federal load and
weakening the states, largely as
a result of pressure from the peo¬
ple of the communities and from
the states themselves. They have
(Continued on page 1962)

Congressman

before

Commerce

seems

Sumners

have

Increasing

public service.
f

1946.

re¬

U. S. Plant Expansion

turns for cap¬
ital and man¬

During the war, we expanded
our industrial plants by over 35%.

agement and
to avert the
threat of
t

fu-

half of it

must

foreign

trade of from
10

lions

lars

bil¬

dol¬

worth

Col.

finished goods.

Kenneth

Collins

Some say this

goal

obtained, by 1948,
some'say by 1949.
The reason for
the

must

different

about

the

mestic

dates

speed

with

production

for

the

dispute

which do¬

will

catch

with domestic demand;
son

but roughly a
We in¬
creased out labor market by some
six millions of women workers.
It has been estimated that three
million want to stay on the job
and that management wants them
as permanent employees. Remem¬
ber
that
with
these
expanded
used in peacetime;

depres¬

u r e

The

differing

rea¬

estimates

of total

foreign trade is. based on
differing estimates of final pro¬
duction levels.
Let's take figures in between.
We need—in fact we must have—

15 billions.
We must
have them by two years from this

in which

talking about the
we

be utilized.

ly 25% of the food and equipment
needed by the Allied Nations.
productive capacity—
that of 1940
that it staggers the imagination—
will ultimately pile up disastrous
surpluses in the United States un¬
less foreign markets can be found.
This is as certain as any fact in
This vast

much greater than

*An address by Col. Collins be¬

Cen

The
new

elected: Owen,
V.

Van

Camp

t, •
&i
Chicago,
n

y a r

Camp

Co.,

ter

suc¬

Wal-*

ceeding

Brails-

ford of Brailsford

Co.;

Directors

year

H. M

for

Fred!
s

Mason, Moran
&

Owen V. Van

David

Co.,

Camp

L. S h i 11 ing-

law, Shillinglaw, Bolger & Co.,
Harry A. Trees, Paul H. Davis
&

Co., Robert Strauss of Strauss

Bros., all of Chicago; and Paul R.
Noonan of Dixon Bretscher Noon-

Springfield. An open forum
of

discussion

About

current

securities

the

followed

problems

meeting.

150 attended.

N. Y. Puts World Bank

Issues

Legal List

WASHINGTON, D. C., April 10
—Governor
Dewey's
action in

signing the bill, which the New
York
State
Legislature passed
without opposition,
makes New
York the first state to take cogni¬
zance of the investment suitability
securities

the

World

ways

Manufacturers

Bank for institutional investors by

Association, Chicago, 111., April 4,

summer.

Before

can

plants and labor facilities we sup¬
plied from 1942 to 1946, not alone
our own wartime needs, but near¬

exports of

coming

expansion cannot be

Some of that

following

two

full

annual

officers.^.were

terms:

occasion

Hotel.

sity.

I speak on
private citizen
to this group of private citizens
constituting a part of our democ¬
racy.
You are concerned as to
what we have been doing to our
democracy.
J report to you as a
part .of my employers that we
have attained to a degree of con¬
centration of power in the Fed¬
eral organization beyond the ca¬
pacity of the machinery of demo¬
cratic
govdrnment to discharge
and beyond the capacity of mem¬
bers of Congress to comprehend.
this

the

tury Room
the L

prising unanimity about its neces¬

sion,

which

from

action

unanimously in agreement.

point, however, they are

ILL.—The

Tuesday, April 9, in the

realize

have

the

held

ume of business, let me point to
the reasons why there is such sur¬

announcement

view

re¬

agencies and industry often

get and

from the body of the people.

go up

re-elec¬

tion.

CHICAGO,

meeting and dinner of the
Illinok
Securities Dealers
Association

employment,
proper

agreement that we have reached
"
—
the condition which makes it im¬

Camp Heads
Illinois Dealers
Group

President

economists, Government

American

maintain

I appreciate

Members of the New York Chamber of Commerce,

Owen fan

was

"Herald Tribune

Edition, New York

General Manager, European

1945

state banking laws to
securities on the legal
list, according to Walter C. Louchheim, Jr., Advisor on Foreign In¬

Illinois

the

fore

will capture this vol¬

amending

put those

194-6,

(Continued

on page

1963)

vestments of the SEC and techni¬
cal expert

Mr.

AND

Capital Stock *

HAWAIIAN SECURITIES
Direct

Frivate

the

•

Bought—Soldi—Quoted

Wires

of
ESTABLISHED

MEMBERS

14 WALL

LOS ANGELES STOCK EXCHANGE

STREET, NEW YORK

FRANCISCO

Teletypes:
NY 1-375

& NY 1-2751

HONOLULU

its-Chairman, Mr. A. Edward

Leslie Vivian, Jr.,

With
Van Alslyne, Noel A Co.
Van

KEARNEY & TRECKER
No Bonds
A

Getchell Mines

Chicago and

COMMON STOCK

because of

Trinity Place, NCw York 6, N. Y.

BOwling Green 9-7400

LOS ANGELES

said,

Scheer.

Telephone:

Telephone BArclay 7-4300
SAN

1914

SAN FRANCISCO STOCK EXCHANGE

HONOLULU STOCK EXCHANGE

Louchheim
active

sponsorship by repre¬
sentative savings banks and cor¬
porate trustees, particularly the
Committee on Savings Banks of
New York Legislature for New
York State, under the leadership

Dean Witter & Co.
NEW YORK STOCK EXCHANGE

of the U. S., at the In¬

augural Meeting of World Fund
and Bank.
This action was taken,

Fuller Houses, Inc.

PACIFIC COAST

Master Tire &

Leslie

that

announce

Southern Airlines, Inc.

Noel

Alstyne,

Co., 52

Wall Street/New York City, mem¬
bers New York Stock Exchange,

Vivian,

Jr., has joined their organization.

No Preferred

beneficiary of recent suspension

Continental
of

O. P. A.

price

ceilings.

One

largest manufacturers, of milling machinery, machine
tools, etc.
history of earnings & dividends.
Strong financial
very

condition.

share just a shade

over

Price

Blair F.
Members

United Public

All American Aviation

the Machine

Tool

Stock Exchange

Tele. NY 1-2178

Harrisburg-Pittsburgh-Syracuse-Miami

Bought—Sold—Quoted
members New York Stock

Exchange

15 Broad Street, New York
5, N. Y.

telephone: HAnover 2-6388

Beach

rejoined Field,
Union Central
Building. Prior to- serving in the
armed forces, Mr. Crisler was an
C.

BURNHAM & COMPANY

HARRISON & SCHOLTZ

OHIO.—Richard

CINCINNATI,
Crisler

Richards

associate members N.Y. Curb
Exchange

ST" NEW YORK 5, N. Y.

Field Co.

Crisler Rejoins

Utility

Common

Industry

Claybaugh & Co.
Philadelphia

WHITEHALL 3-0550

Airlines, Inc.

per

N. C. A. per share.

Send for Circular & Special
Circular

Rubber

the

Good

has

Co.,

officer of the firm."

64 Wall St., New York 5
Phone HAnover 2-7872 Tele. NY 1-621

Philippine Mining Stocks
Atok

McDonnell aircraft corp.

Standard Gas Equipment

Sleep Rock Iron Mines, Ltd.
V.T.C.

Common

Manufacturers of

Airplanes and Helicopters
Designer and Builder of Navy's first "Pure all-Jet"

30,737 & 62/100 shares

out

Bulolo Gold

Earned about $7.30 share

Book $50-$60

Powered Fighter Plane

Benguet Cons. Mines

Dredging, Ltd.

Clayton Silver Mines

REQUEST

Members N. Y.
111

Ass'n

BROADWAY, NEW YORK 6, N. Y.

BArclay 7-0570

...

Common

CO., Inc.

Security Dealers

Quotations

j4Y 1-1026

MAHER & HULSEBOSCH
Brokers
In

George A. Rogers & Co., Inc.
1

Montgomery St., Jersey City, N. J.
42
Broadway, New York, N. Y.-~~

Investment

62 William St.

Dealers
Securities

Telephone
WHitehall

Teletype

4-2422

1-2613

-Branch Office

113

Hudson St.,

Jersey City, N. J.

Request

JOHN J. 0'KANE JR.
Established

New York 5, N. Y.

Lode

information

and

Furnished

W. & J. Sloane

F. H. ROLLER &

Big Wedge Gold
Mindanao Mother

Market between $20-$30

Bought—Sold—Quoted
MEMORANDUM

Mining

Balatoc

Members N. Y. Security

42 Broadway,
DIgby 4-6320

& CO.

1922

Dealers

New

Ass'n

York

Teletype NY

t-1*^

Number 4480

163,

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

■

Bache & Go. to Be

The Quest fox Industrial Peace
By GEORGE W. TAYLOR*
Professor of Industry,

MILWAUKEE, WIS.—John P.
Manager of Bache &
Co., Railway Exchange Building,
has
announced that the firm's
Milwaukee office, will remain open
Monday nights until 9 p.m. to
serve investors who are unable to
get away from work during the
clay and consequently have diffi¬
culty in obtaining advice on se¬
Eisenmann,

Holds

have frequently received

week he believes

business

can

efficiently.

most

of this

handled

The

firm

had

tried

keeping its offices in Eastern cities

shortly before the

open

and

war

found that it resulted in consider¬
additional

able

business.

The

practice was stopped during the
because

war

the

manpower

shortage.

e m

un-

much more than

vate

ready

[

en¬

w a

nheds

of 1 i f

nates

realization

g
George W. Taylor

the

magnitude

the

task

achieving

our

goals of economic progress.
discussion tonight relates to

problem

establishing

its

un¬

use

obstructions

The
the

labor-

Aware of the wastefulness of in¬
dustrial

warfare

the

ultimate

determinant of industrial disputes,
persons, in the ranks of

labor, in¬
dustry and the public wonder Why

contribute

the

the agreement Which terminates a

furtherance of that economic prog¬
ress which is so essential for the

strike i could not have been made

the

this

out

without resort to economic force.
One of the great domestic prob-

and

background

labor-management

& Sold

oil

for

democracy.

important at the outset to

seems

spell

Prospectus

of the world

peace

Common Stock*

constructively,, to

preservation

clude

since

relations

request

are

f
t
securities,
such

A few months ago
as

2-5000

Boston 9,

LAfayette 4620

the

yields

on page

1968)

"Observation Post"
O

For Dealers

St.

Missouri Pacific

St. Paul & Pacific

Louis

Southwestern

Many dealers require an advance post which can
provide them with
investment "intelli¬

Seaboard Air-Line

Y., New Haven & Hartford

accurate

Western Pacific

Ontario & Western

G. A. Saxton & Co.,

Works

gence.

Wisconsin Central

Old Colony Railroad

serve

dealers

ah observation

post by having

readily available the investment information often

Inc.

necessary to

70 Pine Street, New York S, N. Y.
WHitehall 4-4970

Teletype NY 1-609

constant

deal.: That information pertains

and market

markets

Conditions—resulting from

research, long experience

and wide contacts

in the field.

American Vitrified Products

Washington Properties
SAN

FRANCISCO

TRADING

NEW

YORK STOCKS

Hotel

Phone

teletype

information for

Rhodes

One hundred and
Stock

Jenkins Bros.

Exchange

are

also traded

the

a. m.

thq next time

closing action. Let

rapidly transmitted knowledge
service to you

and 5:30 p. m. (E.S.T.)

and

can

you
us

need specific

show

you

how

be of effective

your customers.

A list of these stocks is available upon request

Quotations end executions promptly handled oyer ou t Direct

H. D. KNOX & CO.

New

York
the San Francisco Stock

fifty-six Stocks traded

Exchange between the hours of 10

Venezuela Syndicate

(Continued

Y., April 1, 1946.
(Continued on page 1944)

Victoria Gypsum

ft*

Between Jan. 2 and April 3,

Governments declined by $2,023,+

short-term

Private Wire

Kaiser & Co.
MEMBERS

Broadway,

Tel.

N. Y. 4

27 State St., Boston 9

Dlgby 4-1288

NEW

Tel, Capitol 8950

Tele. NV 1-86

tele.

BS 169

YORK STOCK

.NEW YORK CURB

PINE

STREET

SAN

EXCHANGE

FRANCISCO STOCK EXCHANGE

150 0 RUSS

BUtLblNO'

SAN FRANCISCO

NEW YOfcK 5

Established

1926

I''

IMIIBS

68 William

Telephone HAnover 2-1700

Street

NEW YORK 5

Red Rock Bottlers, Inc.

201 Devonshire

Los

of Cleveland

Angeles mortgage company With

ment,

able

company

F. VZ. DIDRICHSEN
Member National

Association,

Securities' Dealere, Inc.
m

Broadway,
Telephone

New York 5, N. Y.
REctor 2-7630

proven'

loan correspondent.

Managing officer will be
April 19 and 20,

Address Wilshire Service Cor¬

poration, 461 So. Western Ave., Loss Angeles 5,
nia,

Street, BOSTON 10

Members New York Stock

Exchange

desires contrast as life insurance

in New York April 10 to 17, Chicago
for personal interview.

Teletype NY 1-993

•

manage¬

to immediately produce profitable volume

of FHA and. other loans,

Bought and Sold

Califor¬

Walter D. .Smyth, the Plaza, Fifth Ave. at

St., New York 19, N. Y.
.Y\.....

59th

government,
public

municipal,

utility,

and

marked

Federal Reserve Bank holdings of

St. Louis-San Francisco

Tennessee Products

Commodore

men¬

tioned was activated by the fact

We do

Cedar

just

been

an approximately equivalent
shrinkage 'in
the 'Government
bond holdings of the banking sys¬

discussion of

those

have

and

tem.

plans

months

by a net decline in the outstanding
public debt amounting to $4,362,000,000 between Jan. 2 and April 3

needs to be done.

Rutland Railroad

N. Y.,

Richmoitil

three

the

the
CED, and the
Seltzer plans.
It will certainly
take
the
view
that
something
Leland,

Taylor at
Colgate University, Hamilton, N.

Duluth, So. Shore & Atlantic

Broadway, New York 5

Telephone:

it is revealed by
study of the yields of bank-eligi4
ble
government
bonds.
These

investors

During the first three months of
has been a reversal

gover n m e n

such

this year there
of the trend,

bank

holdings

Herbert M. Bratter

in Governments.

non-bank

*An address by Prof.

Denver & Rio Grande West;

Exchange
Exchanges

Congress St.

said to have acted

mercial

that

Chi., Rock Island & Pacific !

New York Curb

REctor

Preferreds & Commons

Telephone:

bonds

deterrent to

TRADING MARKETS IN

Members New York Stock Exchange

120

discus¬

proposals
t o
regulate com¬

"OLD"

and other

The

sion of recent

one

e r

report may in¬

which

dispute indi¬
has
gained
through the stoppage of produc¬
tion
while
everyone
has
lost.
that

t h

mation.

industrial

expected

a n o

the

bank-eligible Government securi¬
ties was declining. The banks, it
was said, were
selling short-term
paper
and
buying
long-term
bonds, bidding up the prices of
the
latter
and
correspondinglylowering the yields thereon, and,
conversely, lowering the prices of
the
short-terms.
Moreover, the
declining
yield
on
long-term

fortnight, aceording to
present infor¬

this

management relations so that they

Gas & Electric

for

the

now

cates

effective

bank credit is

strengthened when appraisal
the agreement which termi¬

brought
e r

aware

prom¬
on

of®—

control

should be eliminated directly and
forthwith.
This conclusion is of¬
ten

pri¬

not

nation

loomed

nation

peaceful

matter of

resources

matter

utmost, the
strikes and the plant shut-downs
of
the
postwar
period
have

produc¬

the

power

harnessing the

the

WASHINGTON, April 10.—The Federal Reserve Board's
House Banking and Currency Committee

ised report to the

for the parties of di¬

concern

conscious of the need to

countered in
vast

shape

tion in Government debt.

matched power to produce a tor¬
rential flow of civilian goods, and

Difficulties al-

tive

law

rect interest.

crop osition.

have

3Va% Convertible Preferred*

regulate Government bond holdings
changed due to recent decline in ownership of Govern¬
ment issues by both Federal Reserve and member banks.
Says
Treasury no longer considers emergency exists that requires hurried
banking legislation in view of improved budget situation and reduc¬
of banks has

that the postwar quest for

many

relatively easy

Chemical Co.

control of bank credit and to

loyment

would

Monsanto

cannot be solved

By HERBERT M. BRATTER

Correspondent notes that the view taken several months ago thai
Congress would soon enact legislation to make more effective the

life free of

for

Only

whole

horizon, it seemed to

abundant

For Banks, Brokers and Dealers

as a

formula.

the distant

of strike and

When victory in the war
against the Axis was still a faint

calls at home at night

and by remaining open one night

use

that the labor problem

warns

Mr. Eisenmann said that he and

telephone

effective substitute for industrial warfare.

agreements between labor and

industry, therefore,
lockout, as in railroad industry.
Says collective bargaining has important role ift avoiding mass
unemployment if conducted on broad unselfish principles, and

should restrict

curities.

his staff

voluntary

Prospective Bank Credit Control

University of Pennsylvania

One-tirtie Chairman of the National War Labor Board maintains
that
first step in quest for industrial
peace is a full recognition by all
that collective
bargaining, as the cornerstone of the national labor

policy, should be

1931

railroad,

industrial

investment

bonds

stocks

.h >■

HANOVER, PA.— Buckley
members of the New

Brothers,

Exchange,

Stock

York

announce

opening of an office in Han¬

the

The new office, which
Building,
the
management
of
Charles E. Swisher who will have
associated
with him Joseph H.
Collins and William F. Joachim,
Pa.

over,

is in the Hanover Trust

under '

In the "Chronicle" of March

To Head N. Y. Stock

Exch.

The following nominations for
that J. Henry Helser & Co., American Bank Bldg.,
the positions to be filled at the
Portland, Oregon, would engage annual election of the New York
in the securities
business.
Mr. Stock Exchange to be held on
it was reported

Manager

Leon B. Baketel, General

Helser Company, informs
us that the firm, which has been
active as an investment counsel
the

has not and does
propose to engage in the se¬

El Paso Natural Gas is an

13, were re¬
ported by the
N o m i n ating
Committe

Jr.

not

curities business; that it does not

about 42% of its sales

York

New

offices

the

maintain

firm

Pittsburgh and Lewis-

Md., and
Angeles, San Diego and Long

town, Pa., Hagerstown,
Los

Beach, Calif.

buy securities, nor does it
handle the funds of its clients,
or

acting

counsel only.

Baketel

Mr.

tells

"we

apply for and were granted a

did

dealer's license in this state [Ore¬

BALTIMORE™

Jo h

man

the

one year.

Emerson
•

•

state does

Drug

not have an investment

counselor

law."

Common

Monumental Radio

Baketel

vices to

Noxzema Chemical

concludes

his

ad¬

in the matter by say¬

ing, "Our congratulations to you
Monumental

STEIN SROS.£SOYCE
Members New York & Baltimore Stock

Exchanges and other leading exchanges
S.

CALVERT

ST., BALTIMORE 2

Bell Teletype BA 393
New York Telephone Rector

2-3327

BOSTON

Reports furnished

Bldg., Detroit 26

Cadillac 5752

renominated.
For five

Members Detroit Stock Exchange

Brinton, Brinton & Co.; Frank J.
C. Weinberg, Newborg & Co.
Two allied members of the Ex¬
change: A. Glen Acheson, Lazard
Freres & Co., and William Bayne,
F. S. Moseley

dividend

of 50c per share was
by the directors payable May
1946 to stockholders of record

Previous quarterly dividends

Conv. Preferred

trade

Inquiries Invited

Approximately 34V&
Members Detroit Stock

STREET

Phone 94336

duced

gas

pro¬

oil

with

connection

Southeastern

delivered

Mexico

New

being
wasted in the air. However, to
insure success of the project the
company has also contracted for
of

so-called

"dry" gas
production.
Phillips Petroleum is expected to
supply 75 million cubic feet of
reserves

not associated with oil

residue gas.
Facilities

have

been

designed
for an ultimate maximum capacity
of 305,000,000 cubic feet per day.
The

$40

will

be financed

million cost to El Paso

approval
Federal

Commission

Power

1606 Walnut

Teletype GR 184

American Air Filter

by stockholders) through sale of
new

first mortgage bonds and pre¬

ferred stock and

additional

100,000 shares of
stock
(for

stock

effects of the new
It

earning

power.

is, of course, difficult to fore¬

cast what rate of return might be
allowed

in the

were

the FPC but if this
neighborhood of 6%,

obviously the financing of
ble

part

the project

senior securities at
for

cost

might

interest

prove

surplus

dividends

beneficial

would

absorbed

The

relatively low
and

naturally

in taxes and overhead.

expansion

pipe

line

proceeding

our

facilities

rapidly,

natural

and

now

while

regulatory and cost factor intro¬
duce

uncertainties, the business

has, in general, proved profitable
in recent years.

Common
tC

Federal Water & Gas

OpQ.Ui

Common

Public Service of Indiana

—

SOLD

—

QUOTED

St., Philadelphia 3

Phone

Bine, Webber, Jackson & Cmms

PH 30

'N. Y. C.

7-1202

ESTABLISHED 1879

Invited

Central Iron -& Steel com.

Empire Steel Corp. com.

Queens Borough Gas & Elec. Co.

Pittsburgh Railways

Preferred

IVinn & Lovett Grocery

Vinco Corp.

75 Federal Street, Boston 10

BOUGHT

Sterling Motor Truck

Incorporated
1st

Analysis

BANKERS BOND IE

H. M.

Floor, Kentucky Home Life Bldg.
LOUISVILLE 2, KENTUCKY

Long Distance 238-9

Bell Tele. LS 186

PHILADELPHIA OFFICE
Stock Exchange Bldg; Phila. 2

New York Hanseatic Corporation
120

Tele. PH 73

Merchants Distilling

INCORPORATED

Reda

Western

BROADWAY, NEW YORK 5, N. Y.

ITIX&CO.

Light & Telephone

—

Preferred
Memos

Request

;

Deep Rock Oil Co.

509 OLIVE

BUCKLEY BROTHERS

Common

Members New York,
Philadelphia and
Los Angeles Stock Exchanaes
1529 Walnut

BUILDING

IOWA f*

Bell Tele. DM 184

p'"^uIgh> pa.
N. Y.

STREET

A. E.

}<v j

Los Angeles
Members St. Louis Stock

Hagerstown. Md.

Telephone—WHitehall 3-7253
Private Wire System between

Philadelphia, New York

common

Staley Manufacturing Co. com

St.Louis I, Mo.

Street, Philadelphia 2

New York

1-584

Robbins & Myers common

INVESTMENT SECURITIES

Railways Co.

Sioux City Gas & Electric Co.

Teletype: NY

Benguet Consolidated Mining Co.

Pump Company

Revised

Request

ST. LOUIS

PHILADELPHIA

WHEELOCK & CUMMINS

Byllesby & Company

Phone Rittenhouse 3717

DES MOINES

Preferreds

QUOTED

—

Warner Co. common

Telephone: BArclay 7-5660

Iowa Power & Light Co.

SOLD

—

and Los Angelas

Exchange

Gilbert J. Posti.ey
29

Co.

BROADWAY. NEW YORK 6. N. Y.
Direct Wire to

r-')

the

stock—though part of the

common

gas

siza¬

through

Louisville Gas Pref.

Common

Private New York
Telephone
REctor 2-5035

Phone 4-7159

common

likely that the common
might benefit by the "leverage"

Botany Worsted Mills pfd. & A

Signal

new

it appears

Merchants Distilling Co.

Dayton Haigney & Company

f;V-DES MOINES

of the cost in

Girdler Corporation

EQUITABLE

common

subscription by present holders)
plus a bank loan. The common

pre¬

request

Dealer Inquiries

American Turf Ass'n

Old Colony RR.

and

would

sumably,- $>e in addition to the
present revenues. of> over $9 000
000.
Assuming that a substantial
part of the enterprise is financed
through senior securities and a
bank loan, -With only about Vsth

(following final
project by the

the

LOUISVILLE

6-8100

Common

Preferred

and

West Texas. This gas is now

BOUGHT

COrtlandt

New England Lime Common

United Light &

<■

which

BOENNING & CO.

Private

Boston Edison

Submarine

"residue"

so-called

Stock

Pennypacker 8200

Megowan-Edueator Food Co.

RR.

•

$8,000,000 will

over

obtained

Common

Teletype BS 424

Haven

initial gas to be

The

■.ii'/i

journals.

Memo

MASS.

TRADING MARKETS

New

day.

Exchange

GRAND RAPIDS 2
MICH. TRUST BLDG.

Pont, Homsey Co.
Telephone CAnal

1, 1949 to increase their takings
to 305 million cubic feet per

Delaware Power & Light

other leading

Common

white, noble & co.

N. Y.

of'

Publishers
Iron Age and

Request

HANcock 8200

day with 175 million in the
second year and an option to the
California companies up to Sept.

feet

Chilton Company

Descriptive Analysis

MILK

& Co. (Boston).

revenues

Common

BOSTON 9,

of operation, with delivery
X75^itilBbm^
a
d *

Aeronca Aircraft

have been disbursed at the rate of 25c

members of the Nom¬

change: William B. Bohen, Baker,
Weeks & Harden, Benjamin H.

Tele. DE 507

GRAND RAPIDS

ordered

of the Gra¬

members

inating
Committee
(one
year
term): Three members of the Ex¬

substantial amount of the output is
sold for export.

share.

two

tuity Fund for three year terms:
S. Lutkins, R. W. Press-

Robert D.

Clinton

request

& Dolphyn
Buhl

Price

Thomson & McKinnon,

For

Mercier, McDowell

1841

Company manufactures cotton
grey goods of medium to coarse yarns
(better known as drill), narrow sheet¬
ings, twills and chafers; also various
fabrics for industrial purposes used in
automobile tires
and
for
abrasives,
and pyroxylin-coated fabrics.
Normally

.John A. Coleman

Crooks,

It is expected that in the
second

tributors in'-that State. -The initial
.A- VC•'V

Richard M.

financing, the present 7 <7
preferred stock will be replaced
by a 4% or 4 V2 % issue.

amount would be 125 million cubic

ernors:^

prich &
Co., and William D.
Scholle, Scholle Brothers, both

The

per

Board

for the term of two years.

Common Stock

15,
May 1st.

the

"rights" readily
connection with

the

Counties Gas< Coi, two large--dis¬

oif:

Electromaster, Inc.

:.Co.

i gh t

to make the

year

and. Southern

Gas. Co.

California

Manufacturing Corp.

Incorporated

Danks, Ernst & ' Co., William B.
excellent finan¬ Haffner, Wilcox & Co., Irving D.
cial journal."
Fish, Smith, Barney & Co., Mur¬
ray D. Safanie,. Shearson, Hammill
&
Co.,
Howard Butcher,
DETROIT
Jr., Butcher & Sherrerd (Phil¬
adelphia), and Russel E.< Gard¬
ner,
Jr., Reinholdt & Gardner
(St.
Louis),
for the term of
three
years;
Joseph
Hinshaw,
Watling, Lerchen & Co. (Detroit),
Sheller

issuing

upon

Life Insurance

For

members
Gov

Mr.

It proposes to build a $40
pipe line system to the
Colorado River near Blythe, Cali¬
fornia to deliver gas to Southern

—■——

will, it is expected, be
priced

marketable.

pro¬

gram.

term

embarked

important expansion

million

nominated for

gon], but this was at the urgent

missioner because this

Bayway Terminal

The company is now
on

—

stock

Cole¬
Co., re¬

Adler,

four years. Selling around -r

52, the stock yields about 4.6%.

1 eman,

request of the Corporation Com¬

the past

Board of Gov¬

com

the

ernors:

that

for

Chair-

For
man

important distributor in the Southwest

being to Phelps Dodge and other copper

panies, with the balance well-diversified among industrial, commer¬
cial and residential customers.
Earnings rose sharply in 1937 and
since that year have ranged between $3.00 and $3.75. The
dividend
rate was increased from $2.00 in 1940 and has remained at
$2.40

1946:

principal of¬
fice in Philadelphia and an office

sell

El Paso Natural Gas

May

Monday,

for many years,

In addition to their

11, i946

Coleman Renominated

Correction

New Office

Buckley Bros.

Thursday, April

FINANCIAL CHRONICLE

THE COMMERCIAL &

Chicago

Volume.

163- Number ''mil
4480
.Ill

THEGOMMEReiAL&FINANeiALGHRONICLE
May 1943 when the hold-the-line
order wefit into

After

control headassertsthat, contrary to widespread
belief, OP A has a flexible program ahd lias adjusted itsregulatibn*
to encourage production and afford relief when required.
Cites
numerous price adjustments made since V-J Day, and tells of special provisions to help small consumer durable goods concerns.

Present price

i
(

avoided.
war are a

matter

record. That record is a good, record for which farmers, industry,
<s>labor and gov¬
industrial and retail prices. But,
ernment can
let me point out, that two-thirds
well be proud.
of the industrial
price increase
Without the
of

whole-hearted f
support of the

eeen

that
could
have

achieved.
let

Now

the
record briefly.

review
We

came

the

through
war

with less

than

third

average

one-

increase

the

retail

trol

during the

Paul

Porter

general

level

war.

demonstration of the
which

and

August

It is

success

con¬
clear
with

democratic people, work¬

ing through their government, can
stabilize
their
economy
despite
the greatest inflationary pressure
in our national history.

increase

occurred

before

Now

let

look at

the

Plans for

Glidden,
Morris
&
Co.;
Golf,
Day after a 4-year Laurence M. Marks, Laurence M!
wartime lapse were announced by. Marks & Co.
Lee M. Limbert, of Blyth & Co., i
| Afternoon Entertainment, Wil¬
Inc., President liam G. Laemmel, Chemical Bank
Club

Field

Club

outing,

record

production had accelerated by
added

42%

time levels.
the

first

80%

the

The

bond

with

rate

ment

fact

that

volume
more

than

any
prewar record
convincing evidence of

could say, with any degree
of
honesty, that price control
hindered production during the
war.
I look on this war period
as the first major phase of price
control.

the second major phase

with V-J

It will end when all of our
industries are fully converted to
Day.

operations and when
production is really rolling along
We are today seven months nearer
that accomplishment.
The
physical reconversion of
our factories has proceeded at a
much more rapid pace than we
peacetime

INVESTMENT SECURITIES

TUcker 3151

YUkon 1551

650 South Spring

300 Montgomery Street
SAN FRANCISCO 20

had dared hope.

Street

LOS ANGELES 14

Sometimes I
prone

Private Wires

PRINCIPAL

think

all

are

under-estimate the re¬

sourcefulness and ingenuity of in¬

Between San Francisco, Los Angeles, New
OFFICES

York and Chicago

CALIFORNIA

dustry when they set out to do a

job. I'm thinking about our esti¬
possible plane production

CITIES

on page

1967)

year

Friday, May
24,
at
the
Sleepy Hol¬
low
Country

Limbert

Like the

circus, this year's Field
be bigger and better
according to the chief
ringmasters, F. Kenneth Stephen¬
son of Goldman, Sachs & Co. and
Frank A. Willard of Reynolds &

Day

Co.,

who

have

mittee

various

event.

As¬

in charge of the
groups of activities will

them,

sisting

chairmen—Robert

vice

three

the

conduct

named coCom¬

been

the Field Day

chairmen of

Broome, Guaranty Trust Co. of

New

Thomas T. Coxon,
Mellon Securities Corp., and Har¬
York,

MacDougall, Georgeson & Co.

went

which
the

into

the

Field

Street Journal,"
eclipse during

will make its reappear¬

war,

world-famous

This

ance.

revival

the

the "Bawl

Day,

39 So. LA SALLE

news¬

which lampoons the great
and near-great in the world of fi¬
nance, will be published for the
time

perennial

under

1941

since

editorship

the

of John A.

Straley of Hugh W. Long

& Co.
Acheson, of Lazard Freres
& Co., Chairman
of the "Bawl
Street
Journal" Committee, has
A. Glen

extended

open

Wall Street wits to

invitation to
sharpen their

pencils and submit contributions.
This

RANdolph 8924
A.

Teletype CG 616

being planned for the

Field Day, said Mr.
the names
following Committee Chair-

first postwar

FIRST STEP

Eastern, Mid-Western &

STOCKS

you

are

Members: New York
Private Wires: New

Security Dealers Association

York, Boston, Chicago and Los

important studies this

ever

released is being

our

Angeles

seeking

bringing

field salesmen for

of Schenley's

groups

visit to

one

principal distilleries,'

in Lawrenceburg, Indiana

...

as a

part of our sales and merchandising
we had a party
seventy-five, from the

training. Last week
about

west and the south. Fine

looking,
of men, and most of
wearing the service discharge

alert group

them

emblem in their lapels—this be¬
cause

of the

policy of the company,

give job preference to returned

veterans.

recorder

This

larly,

noticed,

particu¬

tall, serious-minded chap
was just "something
about him". So we inquired of his
sales manager, who was also pres¬
a

because there

ent, "Who is that chap?" Said he,
"I'll have you meet that

fellow,
find out for yourself—
can get him to talk. He came

and you can

if you

out of the service about

month

with practically all of the

ago,

buy

for

nuubon

was

Well,

discharged
we

major."

as a

later found

an oppor¬

young man;

of the most difficult

one

have ever undertaken.
Noticing his finger nails, because
they looked as though he had some
serious trouble, he did finally ex¬
plain to us that he had been frozen
in a shell-hole, in Belgium, with
the temperature 4° below zero. He
jobs

and

small group of men had been

epic

crew

capsulated"

bring relief

who

were

"en¬

Bastogne. The
strafing was terrific and, if we re¬
member correctly, he was the only
one

who survived. He subsequently

lost all of his ten toes, and the
of his

fingers

may

tips
still have to be

We don't dare mention his

name.

He wouldn't like that. In

spite of
all his decorations, he flatly denies
that he was a hero at any time. We
shall never forget what he said to
when

us,

parted: "Mr. Mark

Merit, whenever

hear

you

cussion about who

dis¬

the war,

won

just remember this:
"The
are

men

who

won

the

war

;

♦

dead/"

readers only

STANDARD & POOR'S CORPORATION
...

and

3 issues of THE OUTLOOK, a ser¬

vice for investors.

Offer open to new

by this country and pur allies. He
enlisted as a private in the infantry

amputated.
to

dollar to this ad, attach your
name and address, and we will send/you
the study, HOW LONG WILL THE
BOOM LAST? In addition, we will send
you

decorations and honors bestowed

advice—when to

securities

SEND FOR THIS SPECIAL STUDY TODAY!

#1
Reilly & Co., Inc.

We have been
our

to that

predicted further advance—which in¬
dustries to buy into and which to
avoid—be sure to get this analysis
prepared by the largest firm of in¬
vestment analysts in America.
Clip

J. F.

has

sell—which

Pacific Coast Securities

By MARK MERIT

ordered to attempt to

BOOM LAST?

Trading markets maintained in

"They won the war"

was

features and sports

new

are

nation-wide clientele
of investors—HOW LONG WILL THE

JOHN N. DANNER

SCHENLEY DISTILLERS CORP.

self

Many
events

distributed to

associated with

fellow

getting him to talk about him-'

company

BLOOM

our

but

One of the most

RALPH

hope will be of interest to

Americans. This is number 121 of a series.

tunity to chat with the

OF SUCCESSFUL INVESTING

under the management of

CORPORATION

duration.

FOR A LONG TERM PROGRAM

SCHENLEY DISTILLERS

Field Day will be
The last Bond
Club outing before the war was
held at the Westchester Country
Club in the spring of 1941, but
with America's entry into the war,
the outing was suspended for the
year's

the twenty-second.

office at

STREET, CHICAGO 6, ILL.

NOTE—From time to time, in this space,
there will appear an advertisement which

paper,

of the

our

H.
|

Robert

Craft. Guaranty Trust Co.

than ever,

Limbert in announcing

Announcing the opening of

Pitching,

Club, scene of all but two of the
pre-war Field Days.

mates of

(Continued

this

Lee M.

Horseshoe

held

will

first

of price control started

Bank; Tennis, Clifton A. Hipkins,
Braun, Bosworth
Co., Inc.;
,,

old

you

iraccmPORATED

cares,

With

f '

Leness, Merrill Lynch, Pierce,
Softball, Robert
L. Hatcher, Jr., Chase National

Fenner & Beane;

invest¬

examining the facts as
briefly outlined them to

an-

from

Reconversion Success

and
men

Publicity, William H. Long, Jr.,
Doremus & Co.; Trophies, George

release

was

one

have

pro-]

several

bankers

above

war

nual

sales soared to

before

years

above peace¬

Remember, this

year

1943

pleasure in announcing that

First California Company

Co.; Dinner Entertain¬
Richard de La Chapelle,
Shields & Co.; Indoor Sports, Aus¬
tin Brown, Dean Witter & Co.;
Refreshments, Walter F. Blaine,
Goldman, Sachs & Co.

which

vided

Trust

ment,

many

the

By the end of 1942 the rate of

this to retailers.

Vice President and General Sales Manager

New
The

hundred

100%

appointed

Bond

levels reached in December 1939.

should be

has been

the

York.

for

levels.

MR. J. RUSSELL POSTLETHWAITE

Lapse

revival of the Bond

price control
for this period.
By the end of
1941 the rate of production had
climbed 38% above the peacetime

retail

"We take

Attendance, Frank: M; Stanton,*
First Boston Corp;; "BawlJournal," A. Glen. Acheisoh, Lazard Fferesy& Co.;'^Stock
Exchange, Nathaniel F. Glidden,

The

Street

of production under

majority of all,
of the people.
from
all

never

the

1943

Day.

price control.'
of production
formal price controls were estab¬
took another spurt of 28%
and
lished in January 1942. In other
continued to climb up to the end
words, after price control legis¬ of
February
1944,
where
it
lation was enacted, retail prices reached its peak.
By the end of
1944 it had dropped about 12%
rose only
about 16% and indus¬
due to cutbacks coming after V-E
trial prices only about 7%. Fur¬
Day. In 1945, as we approached
ther, at least two-thirds of this V-J
Day,
military
cut - backs
rise
which
occurred
after
the brought a steady decline.
There
was a sharp cut-back in military
adoption of price control took
production immediately after V-J
place between January 1942 and
Day.
*
Here, I would like to point out
Address of Mr. Porter before
that all during this war period
the Annual Meeting of the Amer¬
in
which
military needs came
ican Retail Federation, Washing¬
first, production of most commod¬
ton, D. C., April 1, 1946.
ities for civilian consumption was
running
far
above
peacetime
price

overwhelming

groups,
record

one-half

After Wartime

May

j' That is the record of price

"production is rolling and that American industry is
doing an astounding job of reconversion" Claims that since
settlement of leading labor disputes, bottlenecks have been broken,
and expresses conviction that with OPA extension inflation can be

almost

order,

ties:

To Be Revived

1945—V-J

Maintains that

and

hold-the-line

Day

direct the various activi¬

i.ien

Bond Club Field

between

Administrator, Office of Price Administration

accomplishments of price control during the

the

effect.

retail prices rose only about 3%
and industrial prices less than 2%

By PAVL PORTER*

The

1933

Street, New York 14, N.Y.
;

A-791-127

FREE-r'Send

postcard to MARK MERIT

OP SCHENLEY DISTILLERS

CORP., Dept.

18A, 350 Fifth Avenue, N. Y. 1, N. Y., and
you

will

prints
jects

receive

booklet containing re¬
various suIh

earlier articles on
this

series.

wj>

!»■

/ftfhitrsday, April It,

CHRONICLE

THE COMMERCIAL & FINANCIAL

1934

1946

" '

■■

■*yf

-jje.

,,i

Trading Market
•'.

■■•

('•k

?/.

DealetiBroker investment

■

jk*1*

I aAineHcah Service C«^.—Circular Alabama ^Mills/^IncVi
Dnnirio
; —Adahis it Co., 231 South La Salle Sh.e( General -Tin;.
New' Jersey. Wdrsteft
j
Street, Chicago 4, 111.
Mln,; Mo*

xziasESEassas^^a
•A*.,'

•

Recommendations and Literature
;\.U%

Sun-Kraft Inc.

PREFERRED

*>*''•_"

mentioned will be.pleased
following literature:

to send interested parties the

gomery
Calif. •

available

Also

Established 1922

120 South La Salle Street

CHICAGO 3

Evaluator

Stock

Insurance

Current

brochure
studying the situation—Geyer &
Co., Inc., 67 Wall Street, New
York 5, N. Y.

mm*

CARTER H. CORBREY & CO.
• ■>

:i*£

Wholesale Distributors

—

Detailed

Co.

contains

firm

and International Monetary

Homsey
Boston

Fund.

Brief reports are-contained in this
issue on- several situations which
toe firm Considers currently in<«

Inc.—Circular—J. F. Comparison and analysis of 19
Reilly & Co., Inc., 40 Exchange stbbks for the. first, :c(iiarter bf teresting. <
''
Place, New York 5, N. Y.
1946—Laird, Bisseli & Meeds, 120
Bost, lnc-.—Detailed
Broadway, New York 5,.N,
Break Up Value of Middle West
interesting low-priced
Corporation—Estimate of liquidat¬
Queens Borough Gas & Electric —Hardy & Hardy, 11
ing values—Peningtoh, Cofket & Co.—Analysis—New York Haft- New York 4, N. Y. \.
Co., 70 Pine Street, New York 5, seatic Corp., 120 Broadway^ New
; Also available is a
N.-Y.
'
' '
;
^RortS Products Inc.
York 5, N. Y.
Also
available is a study of

CHICAGO 3

10$ ANGELES 14

«50.$*$prttgSL*

l3SUSaHe$t
CGR9

State 6502

Facing the Facts !-^Study of con¬

Mfej^nUSl

ditions

railroad values
^reprint of address by Arthur C.
Knies, partner in Vilas & Hickey,
given before the Central States
Croup of the Investment Bankers
Association of America at Chi¬

Wall

cago—Vilas

& Hickey, 49
Street, New York 5, N. Y.

Consolidated Gas

FirSt

Chicago Corp*

■•'■

.■

•

■" ;

Stocks

for

long-

term program

of successful invest^
ihg^Speclal study entitled "How
Long Will the Boom Last?" plus

The-Muter-€o.
•

Step

'•

three issues of The

Circular on Request

Outlook—10

readers only $1.00—-Standard

new

•&" Poor's

New

231

So.

LA SALtE St.,

of
'

Wall St.

•mmmm

Co., Com.

♦Wells-Gardner &

•

♦Woodall Industries, Inc., ,Pfd.'
♦Camden Forge

Co.,. Common'

Snap-On Tools Corp.) Com.
^Prospectus Available

-on

keenest.

Hotels

Statler

Co.;

Hotel Statler Co.; Roosevelt

N, Y.
Hotel

Bend

—

Buhl

•.

Shore & South
bulletin —

ori

Circu-

TPfehhesscfe" Products; WellEngineering Co.; Kendall Co.

Co.!
man

•'
Company

Instrument

Analysis—Caswell

Memoran¬

publishes the

South

Inc., 150 ^tron Age" and other leading
trade journals—Boenning & Co.,
Broadway, New York 7) N, Y.
160^ Walnut Street, Philadelphia
3, Pa.

Co.

Co.,

—

120

3, 111.

Corp.—Ask

Ave.

Baker

Amott,

for

list. C21—

dum

firm which

Co.,

Salle

Street, Chicago

Detrola

International

randum—Cruttenden

York

Memo¬

Co.,

209

Street, Chicago 4,
...:

—

Exchange-^-Kaiser & Co., Russ; York 4, N. Y;review contain¬ Building, San Francisco 4, Calif.
i
Also available

comment and

•

Trecker—Circular

-—Blair

Claybaugh & Co., 72

is a memoran¬ Wall Street. New York 5, N. Y.
Also available are analyses on
containing
digest of late
Manufacturing Co.; Sargent & Co/,
developments in several Interest-, SkihaWv Magor Car, Gear Grind¬
Wall
Street
Commentatpr The Upson Company; Lawrence
Digest of current events in the iitg situations, and the Fortnightly ing & Sterling Engine Convertible
Portland Cement Co.; The Parker
thvestment Letter discussing cur- j Pfd. The firm has prepared a
financial
markets
with .reviews*
Appliance Co.? Pettibone Mulliken
and" analyses "of specific situations! Mnt si thatlon in Gavernmeiif bond special bulletin calling attention
Corp.;
Armstrong' Rubber
Co.;1
] m hpn^its from suspension of
interest—Bennett, 0Hces, rails, etc.
Ohie Leather Co,? American Fur¬ appearing, of
price ceilings on heavy machinery,
niture Co,; Punta Alegre Sugar Spanier & Co., Inc., 105 South La
electrical
tools,
and
railway
Salle Street, Chicago 3, 111.
! /Consolidated Gas Utilities and

ing brief analyses of Philip Carey

dum

]

Corp.;
Haytian
Corporation
of
America; Latrobe Electric Steel

equipment accruing to these com¬
The
Chicago Corp.—Circulars—
panies.
Company; Fort
American Bantam Car—Special ^icks &'Price. 231 South>La. Salle
Pitt
> ^
Bridge Works and Welch: report—Amos Treat & Co., 40 Street, Ghitago :4, 111.
r tympany — Study
of
Also available is a recent mem-/
Grape Juice Co.—Strauss Bros., 32 Wall Street, New York 5, N. Y.
\
common -stock as a sound specu¬
Broadway, New York 4, N. Y. ,
;
Al30 .available are reports oni orandum on The Muter €o.
j

Co.;
v

Building, Detroit

* -';'v

Hammond

Chilton

Recent

—

McDowell

G^ivlU^0Gi^43escriptive

Revised

•

Inc.

Mercier,

lar—Seligman, Lubetkin & Co.
41 Broad Street, New York 4, N. Y.
Also detailed eitcuiars on Upson

Doyle, O'Connor & Co., Ihc;, 135
Chicago 3,
111

Street'

Fiamingo
Air f Service,
inc.
—Circular—Bolt, Rose & Troster
74 Trinity Place, New York 6'

circular on

South La Salle Street,

«•

NY; Savoy Plasa; and $70 Seventh

South

RR.

Geared to the News—Brochure

CttlCAGO 4

Randolph S686^-CG 972
New York Office

Waldorf Astoria

Hotel

Chicago

Milk

Also; available^ a
report
Shelter Manufacturing Corp.

speculation
Broadway,

Descriptive

—

South La Salle

•

Principal StovkJExchanges

Chicago Board of Ttaie

Inc.;

Paper

—

Corp., 345 Hudson Street,
San Francisco Trading—List of.
111.
14, ?N. ; Y.—Dept. A- 156 stocks traded on the New Y.orki
f. | Commomveatth.
<&
Southern
791-127,
i Stock Exchange which are also
Corp.—Memorandum — H. Hentz
traded en the San Era itdjsdb §tock & Co., 60. Beaver Street, New.
Kearney

HICKS <r PRICE
Members

Equity
Analyses of situations considered
especially attractive at this time,
including
Brunswick
Site Co.;
Commodore Hotel; Hotel Lexing¬
ton*

Central

:Co.,

Pont

26, Mich;
circular on

circular—Adams & Peck, 63 Wall
Street, New York 5, N. Y.
Stocks-

Estate

Real

Corp.;

Utilities Corp.

The

►

Arden Farms.

affecting

analysis—du

9, Mass.

Dolphyn,

Broadway

Manufacturing

Electromastet

(eport

MARKET
DISTRIBUTION

SECONDARY

120

5, N. Y.

Bwight

World Bank

establishment of the

UNDERWRITERS

;Vj ' V

•

and Descriptive

accord

Middle West — Pacific Coast
$■■■■ fw- r

4 5

Co.,

discussion

field.

Turk

;

New York

"In¬

labor-management

developments in the in¬

New

monthly by the

surance

Bowser,

Railroad

Wv L. Douglas Shoe €b.—Sturiv

current

U..,

Co.,

the

issue of

vestor" published

the current issue ot

Other Quotations issued
by B w
Piz^im &:G0.. 25 Broad
Street'
New York 4, N. Y.

••

current

The

Edison

& \ves<

notes on West"
Telegraph

Union; Leased

United Light. & Rail¬
•"
t

Ltd., and

Views" discussing

of "News &

sue

ern—Memo-^Also
crn

TooL Co.,
Ohio Oil Co.,

California

Southern

ways

reports

are

Byron Jackson Co.,

Also available is the current is¬

Rank Earnings and Government

Holdings

Member, National Assoctation"'
of setururn Dealers .

—

and

Angeles 14, Calif.

Tele. CG 271

Tel. Randolph £960

—

developments in the Comparative analysis of eightyaviation industry—John H. Lewis one companies, as of Dec. 31, 1945
& Co., 14 Wall Street, New York —Butler, Huff & Co. of CHi:ornia;
210
West
Seventh Street, Los
6, N. V.

C. L. Schmidt & Co.
-

Bulletin

—

Pneumatic

Chicago

Aviation

Delaware, Lackawanna

Hoffman & Goodwin,

COMMON

events

report

;

,0"

Com¬

Walston,
265 Mont¬
Street/San Francisco 4,
•
'' f • ;

pany—Special

"•

It is understood that the firms

hawk Rubber.

Anaconda Copper Mining

Ray-O-Vac

*aul H.Davis & Co.'
Oj

Exchanges

Highlights of Wall Street—Cur-;

Chicago Board of Trade

10 So. La Salle St., Chicago 3

issue

tent
•

Tel. Franklin 8622

■
Teletype CG 405
Indianapolis, Ind..
Rockford, Ilk
Cleveland, Ohio

containing

brief data

Signal Corp.; North-,
Engineering Works; and Van;

ern

Dorn Iron

Asphalt

Corp..

America,

Soya
Corp.
of
Airline. Foods Corp.,

American Forging and Socket-

Circular—De

aUtUlllliliilnilllllillliltlllllllliilllifNi'llljiillUi!! ||!||tli|||||||||||;||||||||j|||||;|||||||||||||n||||

Young, Larson: &
American Forging & Socket CoJ
jfdfhia. t3r5nd" Bapids Nationa1
—J.
F.
Reilly & Co., -40 ; Ex-i' Bank Building, Grand Rapids 2
change Place, New York-5y N. Y/

FINANCIAL

TRADING MARKETS

—

Plans

Branches

Prepared—Conference

Invited

Conv.

Incorporated

New York

1st

MillmgCo.CoM.
Pfd.

and

5s-36

Ref.

6s-55

Central Pub.

Com.
■

this

XiEpjecial letters avail¬

plicity

kjvailabte are -late ^memoranda
Great

op :
Industries;

American

able

company—Ward & Co.,
Broadway, New York 5, N. Y. Also

Pattern,

(Continued

•

1935)

on page

....

midland realisation common

;

chicago south

Inc.

shore &

bend

south

■

northern indiana public service common
.

Utility Corp.

DOYLE, O'CONNOR & CO.

51/2s-52

^Prospectus Available

York 5. N.

Milwaukee R. R.

*Andersen-Priihard Oil

Albert Frank»Guenther Law
131 Cedar Street

purchase — First
Colony
Corporation, 70 Pine Street. New

Co.—

DuittUiit Electric Corp.;
Princess Shops; Electronic Corp.:
120
Dfsttict Theatres Corp.; and Sim¬

Ref. 5V2S-56

-Slaadard

Iron

Wbu&Nijp^

Fabrics Cot?. Com.

Its

Mallcidile

Chicago North Shore &

***

^National Mallinson

All

Dayton

Study of-'outlook and Speculative
possibilities, For appreciation for

Works;

General industries Co., MasSic

lative

Automatic

Established 1916
Members Principal Stoch

■

N» Y.

Ttkphone CGrttandt 7-5060

-j

WilliamA.FulIer&€o.

Brailsfcrd & Co.

Members of Ch icago Stoch Exchange

BOilOn Chicago Philadelphia San Francisco

208

Tel. Dearborn 9200

Tele. cd 148

135 SOUTH

Telephone: Dearborn 6161

CHICAGO 4
!

Tel.

State

9868

LA SALLE STREET

CHICAGO 3, ILLINOIS

S. La Salle Street

MSi La SalleStreet ♦ Chicago I

incorporated

"...

.//

/^ Teitetypfcf CG T200

CG 95

I SINCE 1998
1,11

—

■—a

---——

-I

"-■■■

We have

analysis 6f

Recent

Analyses

Chicago Stock Exchange
•Chicago Bo AM of trade

Hammond

National Gas & Electric

Instrument Co.

Corporation CohittroB Slftfck
A

Wnrtc

For

Common

N~t,

discussion of this com,my.

CHICAGO 4, ILLINOIS
telephone Randolph 4WIS

;

Direct Private Wire to Nee> York

Belt System CG 88L

Copies

request

FAROLL & COMPANY
Member

and

120 South La Salle Street

e rr
Hohet^hU^S89b

other

208

CHICAGO 3, ILL.
Trfi. w xm

Neio

York

midwest

Stock

Memhers

CHICAGO 4
N

^,e.w

Andover

1430
■

Tele*

156

Dealers

Ass'-h

Bl^g^ Chicago 4

i V

securities

•"'T

telephone: Harrison 2075
«?f.Teletype OG429:'.
Direct

Wire

New

York

Office

•«»

•

commodities

231 So. La Salle

security DealeYte Ass'n

Illinois -Securities

Exchange

Salle St.

Phone

M? KINNON

STRAUSS BROS,

Principal Exchangti I

So. La

THOMSON &

forth*

Stock

Caswell & co.
-

markets

Stock

Standard Silica Corp.

COMMON

208 SOUTH LA SALLE ST.

•/

new york

Request

Merchants Distilling Corp.
Common

;

Members-

;

—

fbUNDEb 1913

Jj Fred. W.fairman Co.;
-

"—

St.

Chicago 4

Branches in- 35 Cities '

T s

Members New York Stock Exchange
;

>*»«■<"]

•

yi^incSpal exchanges

and other

Broker-Dealer

At the

Illinois Brevities
'

f •

r'^Y'

•• "*>

same

time, the Chicago

Exchange

opened its facilities
for trading In 18 N. Y. Stock Ex¬

]

j&V"'

Strikes, price squeezes; labor shortages and the consequent
delay

change issues, also selected on
the basis of widest distribution
notwithstanding, stockholders in many
Chicago firms had cause to view the 1946 outlook with renewed
in this section of the
country.
ehiffh Valley RR.—Circular-r- optimism on the basis of
Removal of trading restrictions
operating results for the year to date dis¬
McLaUghlin, Jteuss & Co., 1 Wall closed at their annual meetings, i '"
on the 137 stocks Is
expected to
Street, New York 5,rN. Y. ...
Walter P. Paepcke; President, -Container Corporation of
stimulate transactions in them
America,
told
and steadily broaden their Midstockholders that; although^
\
McDonnell
Aircraft
Corp.— sales were
running
only
1% units. Robert W. Jackson, Presi¬ ; die West markets.
Memorandum — F. H. Roller & ahead of last .year, the company's
*
dent,
stated
stockholder
• ap¬
*
Ht
Co.,
Inc., Ill: Broadway,. New earnings for January and Febru¬ pro vaL would be
sought on the
Chicago's
housing
problem
York 6, N. Y. .
ary were more than double those creation of 50,000 shares of cumu¬ moved
toward
partial
solution
for the corresponding months of; lative
with the announcement
preferred $100 par stock,
by Pru¬
Merchants * Distilling-^-Revised 1945,
Darnings for the two-month issuable i a series. The first series dential Insurance
Company of a
memorandum-—Buckley Brothers, period were estimated at 80 cents would consist of
40,000 shares. * proposed $5,000,000 to $10,000,000
1529 Walnut. Street, Philadelphia a share compared with 39 cents
housing project on
the
*•; Earlier,- • Mr.
Jackson " told
city's
2 Pa. ■ /
.
v
in the first two! months of 1945.
South Side.
The company
stockholders, that sales for 1946
has
Also available are later memo¬ While
shortages of materials, par¬ -were running
contracted for a 70-acre site with
30% ahead of last
randa on, Reda Pump. Co*
and ticularly waste
paper and pulp,
construction scheduled to begin as
year and that the company con- ;
Western Li|rht & Telephone.
/
continue to hamper capacity pro¬
soon as a clear title is effected.
templates opening, three new
v/"- ^
.Af&'j*
\
duction, * elimination of .the ex¬
The New York Life: Insurance
rettail stores before the - year's
Miller Manufacturing Co.-t-An- cess
profits tax may be expected
end. '
Company and the Mutual Life In¬
alysis of current situation and to further improve net earnings
$
*
He
surance
Company, which were
prospects for 1946—Comstock & of the company this year. :'
also approached by a committee
Approval
by
Borg - Warner
Co., 231 South La Salle Street
of Chicago aldermen with
stockholders
Mfc Paepcke! estimated net
was
granted
last
regard
Chicago"4,-Jll<:v5,;
'/}> j'V\
for the first quarter would be
week for the creation of a new to undertaking
•■y.Yrfri
such a project,
issue of 250,000 shares of $100 now have the matter under ad$1,10 a common share compared
Motorola—Circular on Galvin
With 61 cents a year ago largely
par preferred of which -200,000 yisement.
Manufacturing Co., makers of the
will be issued, shortly. • The ap¬
due to repeal of the tax.
Motorola Radios and Phonographs
proximately $20,000,000 proceeds
_Seligman, Lubetkin. & Co.; 41
No
estimate of first quarter will be used for modernization
Broad Street, New York 4, N. Y.
and
expansion
of
plants
and
earnings was given by
T.
B.
facilities; C.
S.
National Gas & Electric Corp. Freeman, President, Butler Broth¬ manufacturing

(Continued from page 1934)

in return to full production

will -have

his

associate,

John N. Danner, who served

Liutenant in the U. S. Navy dur¬
ing the war, and was associated
with Bond &

Goodwin, Inc., and

earlier, with
Co., Chicago.

Ohrstrom

.The
-company .further
nounced the installation of
vate

wire

between

an¬

pri¬
Chicago

its

office and

Cayne & Co., Cleveland,
thereby widening the scope of its
trading in Mid-Western securi¬
ties. Other wire facilities include
an

open-end phone to Boston and
direct wires to Chicago and Los

Angeles.

Weiss With Warner

•

Morton N. Weiss is

now

associ¬

•

,'U

-r •»

♦

ated with J. Arthur Warner & Co.,
120 Broadway, New York City, in

their

Foreign Securities Depart-

ment.Ww'

-■

Trading Markets

.•

Chicago & Southern

Mid-Continent

Henri P. Pulver With

—Late

memorandum

offering

stock

combination of improving

utility income, together with

ex¬

speculative ,■% possibilities
oil developments^-Fred W.

cellent
from

Fairman & Co., 208 South La Salle
Street, Chicago 4; 111. - .,

at the annual stockholders
meeting, but he reported; consoli¬
dated
net
sales
were
running
12 V2 % ahead of the correspond¬
ing 1945 period. Like Container
Corporation, Butler. Brothers: in
ers,

1945
its

New England Lime CompanyDescriptive
circular — Dayton
Haigney & Co., 75 Federal Street,
Boston 10, Mass.

Panama Coca Cola—^Circular

Interesting

possibilities

Hoit,

—

ose

& Troster, 74 Trinity Place,

York 6,

N. Y.

also in the

was

bracketr

tax

Inc.

—

handle $150,-'
000,000 of annual sales volume!
adequate

but shduld sales g6 beyond that

figure,

needed.

capital

Sales last

and

Analysis

Schenley Distillers Corporation
—Brochure of articles they have
been running in the Chroniclewrite to Mark. Merit, in care oJ
Schenley' Distillers Corporation
Fifth' Avenue,

N. Y.

New Yofk

totaled

year

1
*

at the annual stockholders

meet¬

ing that the company plans to ao
quire land and construct a central
plant to

replace

six'1 Chicago

its

benefits to the company from

the
automobile, - building,
and
Spring Brook Water frozen food industries—Raymond
Co.—Analysis—Ira Haupt & * Co., & Co., 148 State Street, Boston 9,
• •
-• *
1
Ill Broadway, New York 6, N.-Y. Mass;
Also available is a study of the
•

Spokane
Bulletin

Analysis
and outlook—Seasongood & Haas,
63 Wall Street, New York
5, N. Y.

Lerner

Simplex Paper Co.—Descriptive
analysis discussion potential post-

Analysis

Portland

Simmons

Company

—

Link-Belt

recent

Co.,

developments—
10 Post
Officfe

Square, Boston 9.Mass.

Universal Zonolite Insulation-i-

Caswell

Co., 120
South La Salle Street, Chicago 3,
—

Company,

last

Employees

returned

work

Sal 1

Street,-

$68,213,166.
to

associated

Pul¬

with

•US South La Salle Street

Chicago 3, III.

Tel. STAte 4980

Analysis of

the

company's
San
Francisco
plant
toward the end
of last
month, after a five-month walk¬

a n

changes.-

Mr.

out.

Pulver

was

'The Caldwell, N. J., plant is

now
completely restaffed and the
Atlanta, Ga., plant now has one-

third

workers1 back.

its

ing

was

com¬

cago and

told

at the

was

annual

trading de¬
Henri P.
partment for
Babcock, Rushton & Co.

Pulver

☆

J.F. Reilly&Co.

ADAMS & CO.
231

Opens Chicago Office
CHICAGO, ILL.—J. F. Reilly &
Co.,
Inc.,
has
announced
the
opening of an office at 39 South
La Salle Street, to maintain trad¬
ing markets in Illinois and East¬

designed to broad¬

the market for stocks in

ern

office

This

will

Phone Central

management of Ralph M. Bloom,
formerly of Kitchen & Co. and
Mitchell, Hutchins & Co., Chicago.

Burgess Battery Co.
Howard

Miller

Industries, inc.

Manufacturing Co.

DEEP ROCK OIL CORP. Common

Puget Sound Power
&

Light Co.

Cinema Television

Fresnillo Co.

H. M.

Gaumont British Pictures

Consol. Dearborn Com.

Telephone State 8711
New York

Hearst Class A

l^ust

Z"lbtrs ^ew York Stock Exchange
Memben Chicago Stock
Exchange
Associate Member New York Curb

Sa,!e 8i" Chicago 3, 111.
Tele. CG 650-651

THE SECURITIES
Nekoosa-Edwards Paper

Macfadden Publications
Gisholt Machine

National Tool Co.

Go.

Northern Paper

Cons. Water Pwr. and Paper Co.

All Wisconsin Issues

Froedtert Grain & Malt. Co.

Wisconsin Power and Light

Vicana Sugar Co., Common

Hamilton Mfg. Co,

ZIPPIN & COMPANY

Co.,

Mills Co.

James Manufacturing

Co.

HOLLEY, DAYTON & GERNOK
Member—Chicago

aoswa

Specialists in Foreign »Securities

CG 451

Central Paper Co., Com.

Sugar Co. 6/55

Chicago 4, Illinois

Minneapolia

Weyenberg Shoe Mfg. Co.

Koehriing Co.
/

208 S, La Salle Street

150)

Scophony, Ltd.

Randolph 4696

Pittsburgh '

Dearborn

Teletype CG 955

CONTINUOUS INTEREST IN:

Compo Shoe Mach. Co.

& blosser

Teletype CG 273

Philadelphia

So. La Salle St.

231

;

(Mexico)

Steep Rock Iron Mines
Vicuna

CHICAGO 4

135 So. La Salle Street, Chicago 3

Paper, Com.

Sab Francisco Mines

Comstock & Co.

Byllesby and Company
Incorporated

Mexican Corp,

5690

Com.

C. G. Conn

5700

STATE 0101

the

CHICAGO SO. SHORES SO. BEND RR. Com.

Minn. & Ontario

Fleger Com.

Pickering Lumber

Dover

ILLINOIS

PHONE

Company
under

--We Maintain Active Markets In—

Rhodesian Selection

361

Appleton Manufacturing

Rhodesia Broken Hills

fS11 La

NORTHERN STATES POWER CO. 6 & 7 Pfds.

CHICAGO 3, ILL.

Tel

TELETYPE

request

120 South La Salle Street

straus

SALLE STREET

Brown Co. Com. & Pfd.

CASWELL & CO.

Greiss

t A

CAGO 4,

unlisted securities.

AbitibiP,&P. Co. Com. & Pfd.

,•

Tele. CG 1122

SOUTH

Kropp Forge Co.
Trading Markets

Request

Hydraulic Press Mfg. Co.

Insulation
Copy

meeting

the
Middle West, the Chicago Stock
Exchange on April 1 "freed''
137 selected stocks from its list
for free- trading in any market.
en

Circular

impossible to predict

move

bond

the

and Common Stocks

was

manager

When the company's other prewar

—In

$3 Preferred, Class A

prior

thereto

Wm. Wrigley Jr. Company and
Kellogg Switchboard and Supply
Company
reported
satisfactory
progress.
Wrigley's
spearmint
chewing gum is finally back on
the market, although stockholders

that ML

SERVICE CO.

of the
t r a d i n g de¬
partment for
G o o dbody &
Co.
in
Chi¬

>■

•-AMERICAN

Ex¬

formerly man¬

the strike in Indianapolis.
:fc

Chicago

ager

Still

unsettled at the time of the

Stock

Brown Company 5/59

Universal Zonolite

Tele. CG 28

mem-

bers of the
New
York

HI.

We have

KITCHEN & CO.

Co., 231 South

year,

were

has

become
Robinson &

-told stockholders that
its backlog at present is between
$40,000,000 and $50,000,000. Total

Chronicle)

CHICAGO, ILL.—Henri P.

ver

a m-

pered by strikes since October of

varieties- would go into, produc¬
tion.
Shipments of. spearmint
gum in "March were three times
the average monthly rate in 1941,
Cements- Philip K. Wrigley, chairman, said.

Scranton

Middle West Corp.

were
war

(Special to The. Financial

pany's annual stockholders meet¬

Ald.ens, Inc.v formerly Chicago
Mail Order Company, last week,
announced its plans to raise addi¬
tional capital, following disclosure

will

$120,065,324.

opinion—Hirsch & Co., 25 Broad
Street, New York 4, N, Y.
-

350

Financial

Donaldson,

Vice-President, told sharehold¬
ers that present working capital
was

H-

net sales in 1945

«i

Rayonier,

prof¬

excess

Robinson Co* Staff

Davis, President, stated.
Hs

Taca

Airlines

•

105

Members' Chicago Stock Exchange

So.

Stock

Exchange

262

Central 0780
Offices in Wisconsin

225 EAST MASON ST.

|
1

Lmb.

0 MILWAUKEE (2), WIS.

PHONES^-Daly 5392 VChicago: State 0933
•>

■

J*.

-W

■

'aim '

EauCLire

7teletype MI 488
mil-

mm'

'mm

111.

L« Salle St., Chicago5 3,

;Fond du lac

•

;

La Crosse

THE COMMERCIAL & FINANCIAL

1936

distribution

interest

bonds.

estate

difficult to purchase sound real
bonds with large accumulations of unpaid interest at sub¬
increasingly

Brothers

One such attractive situation has recently come to our attention

constituting

bonds

the

concerns

property leased to Harris
Company shall be ap¬

any

stantial discounts from par.
and

plied

first mortgage lien against

rata

pro

The

of the potential value of $1,917,000. Interest is payable up
securities, it might be best to 6% per annum, 3% being cu¬
Unpaid accumulations
summarize the salient features mulative.

ysis

1937

total

the

18V2%. Pro rata

Central

BLOCKS OF
REAL ESTATE

SECURITIES
WANTED
will

above

pay

prevailing bid prices
and in

instances

some

P.
the

Potential of

three parcels of property and

interest in

20%

old

Since from

estab¬

trust's

prevailing of¬

fering prices for

all

com¬

se¬

north

tract

acre

In advices from its

pany.

10,000 shares of stock

20%

SHASKAN & CO.
Members New York Stock Exchange
Members New York Curb Exchange
40 EXCHANGE PL., N .Y.
Bell

Dlgby 4-4950

Teletype NY 1-953

interest

this
was

Offerings Wanted
i

The

stock

slightly

over

value

March

$9.00

advices

"The

31,

1945,
share;
therefore

almost

entirely

under

which

LJ.G0LDWATER&C0.
Members New York Security Dealers Assn.

Broadway

sales

latter

pays

equal to 3%

year

the

of its

to $3,000,000

excess.

ended

For

Teletype NY 1-1208

the trust receiving

$120,000 which

rate

increase

went

net

paid

circulation

and

tation and

Harris

oil

dependent,

sovereign

states

under the

standing of this firm makes this

most

unit

sales organization.

All

replies, which will be treated confiden¬
tially, should give full details.
Address
"B.Q."
P. O. Box 226, Church St. Station

New York 8, N. Y.

"The company plans no change
in
'Country Gentleman' adver¬

approximately

tising rates during 1946."

Firm Markets:

Beacon Hotel 2-4/58

SPECIALISTS

Broadway Barclay 2/56

Broadway Motors 4-6/48

Real Estate Securities

165

i»

Broadway 4*4/58

Since

FOREIGN

J. S. Strauss & Co.
15S
Tele.

Incorporated
Members New

SP 61

EXbrook 1285

Real Estate Securities
Prince & Lafayette Streets
Ss

'52—-New

York

Lott Hotels, Inc.—Chicago
Devon

Corp.

Detroit

REAL
We

ESTATE

Brunswick Site Co. Com.

Commodore Hotel,

Inc.

Statler Co.

Hotel

Co.

7s, 7%s, 8s
6s, 6%s, 8s
Rio Gr'de do Sul 6s, 7s, 8s
Sao Paulo 6s, 7s, 8s
Uruguay (all issues)
Yugoslavia (all issues)
Rio de Jan.

Chile Government 6s, 7s

All others traded
Com.

Our

Roosevelt Hotel NY Com.

Hotel Waldorf Astoria Corp. Com.

Pernambuco 7/47
Peru 6s, 7s
Porto Alegre

Chile Mtge. Bk.6s,6y<js,63/4s

Com.

Statler

Colombia Mtge. Bk. 6V2
M. Geraes 6V2S—58 &

Caii 7/47

STOCKS

Hotels

Com.

Lexington, Inc. Com.

New

Savoy Plaza Class "A"

own

direct private

telephones connect
York, Philadelphia, Boston and Hartford.

870 Seventh Ave. Corp. Com.

Copies of our statistical
,

& Co.

CHICAGO

Central 4402

memos

J. Arthur Warner & Co.

will be sent on reauest

Ask for List C21

120

Amott,Bamsr & Co.

135 So. La Salle St.

CG-81

EQUITY

suggest

St. Louis

HAnover 2-2100

special consideration at this time of Real
Estate Equity Stocks.
Among those we believe to be par¬
ticularly interesting are the following:
*

Myles Standish Co. Boston

Valiquet

Security Dealers Association

Broad Street, New York 4

Hotel

Roosevelt Hotel, Common

York

Colombia 3/70, 6/61

Antioquia ,7/45,. 7/57,
Barranquilla 4/64
*
Bogota 6%s, 8s
~
Bolivia 6s, 7s, 8s
Brazil 3%s, Series 1-30
Brazil Fundings 5/51
Brazil Gov't 6%s, 7s, 8s
Buenos Aires (all issues)

Seligman, Lufcetkin & Co.

Montgomery St., San Francisco 4

SECURITIES

1929

Westinghouse BIdg. 4/48

Incorporated
150

Broadway

Tel.' BArclay 7-2360

New York 7, N. Y.

Broadway
Cortlandt 7-9400

89 Devonshire

1-588

New York 5
TWX-NY 1-1950

St., Boston 9

Lafayette 3300
,

Teletype NY

and

obviates the necessity for any na¬
tion whose independence has been

attractive opportunity, and might
well .receive the attention of a cojnplete

'Ladies' Home Journal' adver¬

tising rates will be increased with
the July issue.

permitted

that the strength of the
United Nations lies in free and in¬
realize

cations from persons qualified to organize
and manage such a department. The repu¬

fiscal

the

1945,

sum

quote

$9,200;
second and third cover, $14,300
against $12,800; fourth cover, $18,500 against $16,750; center
spread,
$28,600 against $25,600.
"

"The new rates are as follows:
Full page, black and
white, $10;000 against present rate of

the

Brothers grossed nearly $3,800,000

New York 6, N. Y.
HAnover 2-8970

gross

the

rental

which

compared with 3,350,000 under the present rates.
^

tenant, Harris Brothers Company,
annual

history from the time of its origin
to the present day and does not

large and well-established over-thefirm, not presently engaged in the
retail security business, is considering ex¬
panding in this direction, and seeks appli¬

3.7 million

rental arrangement it has with its

Stocks & Bonds

last

average

from

friendship, has forgotten Persian

into effect with the April issue.
"The new rates are based on an

per

Th$ foepme of the trust is de¬

rived

from

Millspaugh, for whom I have a
genuine
respect
and
personal

counter

added:

$90,000.

REAL ESTATE

recent

that

WANTED

creased with the Oct. 5 issue. The

the trust's interest may
be
estimated
conservatively

Brothers

book

his

Retail Sales Department

Philadelphia

bureau, the "Wall Street Journal"
of April 9 indicated that the Cur¬
tis Publishing Co. announced that
advertising rates for the "Satur¬
day Evening Post" will be in¬

Company, lessee of 59% of the
Chicago property described above,
and
retailers
of
pre-fabricated
houses, wholesaler and retailer of
building materials, and building
contractors.

■

Harris

of
seems

guaranteed by treaties to be put
guardianship of foreign
hef powers."

under

progress

statements.

To Raise Adv, Rates

Illinois,

adjacent to the
plant of the Illinois Steel Com¬

securities.

estate

15.5

Joliet,

and

antithesis

direct

Saturday Evening Post

acre.

real

unlisted

lected

ments

prising this property were sold for
$11,000 cash, or nearly $1,000 per

cer¬

blocks

tain

publication, 'America's Task in
Persia,' in which he speaks in the
highest terms of Iran's self-gov¬
erning ability and which is a

properties

above

v"If.

any v- further
evidence is
necessary, one need look no fur¬
ther than Millspaugh's own
1925

Director

Shuster, Iran's first
administrator, who, aft¬

his return to

progressiveness, and patri¬
otism of the' Iranian
people.
J

guardian¬
ship, Dr. AliGholi
Nabil,

Bonds

thP

gence,

sian

Corp.

during

but is also testified

America in 19i2~
rightly paid tribute to the intelli'
er

can-

British -Rus¬

Finance

Committee of Borg-Warner

consists

bonds

William

Vice-chairman

financial

and urg¬

Am ei-i

regime

Morgan

ing
Iran
be
placed
under

District,
Hemphill,

40 years,

last

disorganized
and incompe¬
tent

—

constiutional

Gov¬

ernment

Richard

bankers.

the®

that

the Iranian Inindications, the
f o rm a t i o n
and' holdings
lished industrial enterprise. These
may be liquidated for a .sum far
Service
in
are as follows:
in excess of the present amount
New
York
Dr. Ali-Gholi Nabil
1. The most valuable tract is a of
outstanding bonds, plus inter¬
City,
issued
16.97 acre plot in the City of Chi¬
est accruals (totaling $1,492,004.59)
the following statement on April 9:
cago within the Central Manufac¬ it is evident that the bonds might
"Iranians are not so narrow as
turing District. The property is easily be paid off at par and ac¬
not to welcome foreign help and
improved by two large two and cumulated interest, returning $1,Premier Ghavam plans to invite
three story buildings.
141.11 for an investment of $772 United Nations
experts and ad¬
2. A 154 acre plot in New Jer¬
per $965 bond at current market visers to visit Iran. Iranians' abil¬
sey near Cresskill and Englewood
prices:
ity to govern themselves and their
about six miles from the George
Present par of bonds
$965.00 intelligence and capability to un¬
Washington Bridge. It is unim¬
Accumulated interest
176.11 dertake their own political and
proved but suitable for residential
technical administrations is evi¬
development. In 1941, 11% acres
Total
$1,141.11 denced not only by Iran's achieve¬
of the 166 acres originally
a

the

managed

Manufacturing

Chicago.

$965) and retirement of bonds by
means of a sinking fund have re¬
duced the issue to $1,261,737.50.
for

and

Hackett, General Manager of the

payments against the principal
(reducing each $1,000 par bond to

Collateral

to charges made by Dr. Millspaugh, speaking before
Institution, stating Iran is unfitted for self-government

In answer

the Brooklyn

Blair, President
Blair, Bonner & Co., Chicago,

investment

of interest

proposals that it be placed under joint guardianship of foreign

W. McCormick

issued
amount of

trust

The present bonds were

for

powers.

following trustees:

~~*

Millspangh

"Guardianship" Suggestion

outstanding

11, 1945

Says country welcomes foreign advice and assistance in facilitating
economic development, but contends that there is no justification

present

these

of the issue.

Iran Official Answers

bonds.

Trust of Chicago, 111.

the property held by the Industrial Real Estate
Before proceeding with an anal-«»———

June

.the

to purchase
bonds in the open
market, or in payment pro rata on
outstanding bonds. All net pro¬
ceeds received from the sale of

3-6% Income Bonds Due April 1 1949
become

on
r

proceeds from the sale of
\ny property of the trust together
with any other cash the trustee
may deem available is set aside as
a bond retirement fund to be used

Industrial Real Estate Trust General Mortgage
has

...

Net

Real Estate Securities

Thursday, April

CHRONICLE

TWX-BS 208

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

163

Volume

A
to end

competitive concession-grabbing.

connected, Dr. A. C. Millspaugh, who served as AdministratorGeneral of the-/,
its case largely on narrow con¬
finances of

stand Eastern

cepts.

It may not yet be too late
strongly, realistically, and
constructively, with Soviet co-op¬
eration, and for the purpose of
safe-guarding the world's peace,
while
benefiting
the
Iranian

from 1922#

and;#

1927

1943 %

also from

onff
4 fur-ill

1945,

April

the;#
with the v

nished

press
folio

people."

re-#
d in g the \
international'/
situation of
Iran:
Jn

discussions

•

■/,:

•

Albert

Greenfield

^ciisuse4

Greenfield, Albert M;
Co.,• the Bankers
.

to have created the Securities Corp. and the Realty.
impression that the problem will
Owning Co., all of Philadelphia ■
be solved if and when the Soviets
.

Iran.
last

"The fact is that during the
75

inside

conditions

years

Iran

frequently invited and at
times
justified foreign interfer¬
ence and even armed intervention.

have

should, of course,
their forces uncondi¬

Soviets

The

withdraw

tionally, in accordance with treaty
obligations and as a condition pre¬
cedent to the removal of interna¬

tension; but, after the Rus¬
sians have evacuated the country,
tional

still possess powerful
of pressure on the Iranian
Government
and
ample oppor¬
will

they

means

tunity to interfere in Iranian poli¬
More¬

tical and economic affairs.

British-Russian rivalry and
the sphere-of-influence tendency,
now
stronger in Iran than ever
before, may be expected to persist
over,

unless

effective

some

instituted.

measures are

"The

counter-

Iranian

rarely been weaker or more sub¬
ject to under-cover manipulation
than it is today, and it has proba¬
bly never been more disorganized
and incompetent. Discontent and
disloyalty are widespread.
The
government
neither
represents
nor serves the people;
and, with¬
outside control, it is, in my
opinion,! incapable of doing the
things that are necessary if Iran
is to establish stability at home
and command respect abroad. In
Iran, neither independence nor
self-government, is a reality; and
neither can become a reality if it"

out

are

now

politically capable of solving their
own problems.
' : •'

defendants, «■

New York "Times" in

phia

Philadel¬

which

dispatch,

news

the

states

filed last Nov. 7

District

Federal

the

Court

Philadelphia, charged the defend¬
ants, acting through Bankers Se¬
curities Corp., had bought out¬
standing debentures of the
Greenfield
company
for
the
account of its

seems

own

tous state for the

economic

and

Iran

last 40 years.

solve

w h e n,
Ameri-#

East they

problems of the

have

these

made

rule

mess

missions of
to

pendence;fo r #
almost;! eVery
ethnical-.unit'
in the world,;
that* there are

tions

Hon.

Chas. C. Hart

such

course

include
of

the

United

natural because of the

most

never seems

ple that

occur

our

administration

American
never

been

on an area

ill

howling

all occasions

years.

anywhere.

infallible

success

here

Outside

half

might do well to take

and

This advertisement is neither
securities. The

offer to sell

nor a

solicitation of

his

travels

several

including

dad to

Bagdad.

offer to buy

any

of these

registered dealers in securities in the respective States.

assets of the company.

SEC

The

defendants

also

that

disclose

company's profits

Greenfield

that the mar¬
such securities was
"based
upon
wholly inadequate
information because of the de¬
liberate suppression of informa¬
tion upon which
a fair market
had risen sharply or
ket

alleged that the
not

did

Tennessee Gas and Transmission

Company

price of

could

Mortgage Pipe Line Bonds, 2¥.% Series due 1966

based."

Without

the

admitting

Price 101%%

allega¬

the

tions

$35,000,000
First

complaint, the de¬
fendants
stipulated
that
the
Greenfield company would have

Plus accrued interest from

April 1; 1946. to date of delivery

its books for 1944 and 1945 audit¬

ed and would supply copies of

the
the Conti¬
nental Bank & Trust Co. of New

audits

the

York,

and

trustee,

be made at

would

100,000 Shares 4.10% Cumulative Preferred Stock

audits

similar

that

(Par Value $100 per Share)

least annually

irt the future.
'"*■

was

also

Price $106 per Share

stipulated that the

Plus accrued dividends from

and' construc¬

new

the

make

Minister

a. survey

Ghavam

law—would

offer

and prepare

five-year plan of economic de¬
velopment for Iran. When condi¬
tions get too bad, the Iranian
gov¬
erning class always taiks about re¬
form and usually gets
visers.

foreign ad¬
'• Past? experience has fully

demonstrated that

soon

the

Politicians have escaped their im¬
mediate difficulties, they forget
reform and ignore advice. No hope
lies in the
oligarchy that has long
misruled Iran./Revolution is pos¬
sible; but it would in all proba¬

bility lead to dictatorship
lurther deterioration.

and

rescind

American-Soviet-British

to 50

period of from

years, to end competitive

concession-grabbing,

start

within

Iran

the

condi-

s^!ls necessary to a rising stand-.
Hp
living, and to a decent, orlife '
anC* democratic national

(Par Value $5 per Share)

Price $19.75 per

safe^df the company's debentures.

Share
*

He Plais to Retire

Copies of the Prospectus

resign

undersigned who

April 8 by Robert

States. All of the

Rumors that he plans to
were

denied

ers

are

member of the Securities and Ex¬

Commission,

and

time he stated that he

candidate for reappointment.

may

be obtained from

any of the
dealers in the respective
included among the several

qualified to act

undersigned

are

Underwriters of the above securities except that Lehman Broth¬

Healy, only remaining original

change

are

Underwriters only of the Bonds

and Preferred Stock.

the
is

Stone & Webster Securities

As¬

Corporation

White, Weld & Co.

sociated Press advices from Wash¬

Blyth & Co., Inc.

ington reporting this added:
"Mr.

June 5,

that

The First Boston Corporation

Kidder, Peabody & Co.

Healy* whose term expires

pointed.

said he had made known
would

Lehman Brothers.

Mellon Securities Corporation

Union Securities Corporation

reap¬

The Commissioner, who

W. C.

Langley & Go.

Paine, Webber, Jackson & Curtis

Central Republic Company
(Incorporated)

With respect to this
problem,

annp0Wnjg0Vernmeni' lias ^lUS far
appeared
to act in
ment or of

spirit of apnegation, resting
a

ill.

Italy of SEC Denies

ealthy political evolution, and to

484,444 Shares Common Stock

tion with all future purchases or

same

"My opinion is that the country

guardianship for

April-1,1946,todateof delivery

closure would be made in connec¬

63, is a native of Bennington,

Vt.

He served

the
from

Federal
1928

Bosworth, Chanute, Loughridge & Company

chief counsel of

Trade

Commission j

1934, when he was

appointed to the SEC."

April 9. 1946.

flight around the world from Bag¬

offering is made only by the Prospectus. This is published on behalf of only

such of the undersigned as are

con¬

closed.

He traveled widely for
years,

wholly owned sub¬

sidiary, the Realty Owning Co.,
for $450 to $520 per $1,130 de¬
benture, each of which had an
equity of about $790 in the net

the

for

south Iraq, which was

Iranian

wicked and mis¬
placed as embryonic diplomats are
taught to believe it is elsewhere.
Hussein Ala, Iranian Ambassa¬

peo¬

Persia,
Palestine

company

never

affairs is just as

cession

solve Iranian problems.

interference

500,00(^ square: ihilesi

American

Iran has the statesmen and the
brains to

concessions

negotiated
of

Afghanistan,

south

home.

superiority

Americans.

prove our

istrations had not

complex which has captured the
minds

condi¬
oppor¬

have discovered that such admin¬

States

This

trustees.

improve
ample

Upon careful analysis they might

proposals do not

the

help

have had

was a newspa¬

kane ; v "S p ok earn a h^Iteyie
Minneapolis : -Tribune,'* :; Sacra-»
mento :: "Bee,", -Boise • "Capital
Ne\vsi"- Seattle i; "Sun,"; Toledo

kind and another

one

*Charles C. Hart

perman; for 30 years, a Washing¬
ton correspondent for 15 years for
the- Portland "Oregonian,'V Spo-.

every

was

placing the Iranian ad¬
ministration under a trusteeship.
to

cause

turies and

one

efficiency and "Blade" ;and^many::6ther: papers
instance we have sub¬ ^e ;was .American Minister to Al*
limely failed; not because the men bania- four and one-half years
sent out lacked ability, but be¬ and Minister to Persia for four

who. would, suggest' robbing
Iran, one of the oldest, civilizations
in the world; of its independence
which goes back at least 50 cen¬

Iran

tunity to

some

a
sovereign state and
remain, or we have been
insincere all through the years.
v

must

When westerners have sought to

;

all, purchases of debentures made
The de¬
quoted as desiring the United Na¬ since;March. 27, 1945.
tions Economic and Social Council fendants also agreed that' full dis¬

uud

observe how well

our

they were advised and believed
they had acted in accordance with

kind....

needs

solve

problems which have been
assuming an increasingly calami¬

defendants^—they maintained that

"Prime

rest

peting 'their:

fail

The complaint,

own way through the fogs
bogs that beset their pathway
before taking too much responsi¬
bility for the rest of the world.
•

things, because only Eastern men^
talities can solve Eastern prob¬
lems.
In being invited to send

fur¬

ther adds:

time is

terference of
tive

the

foreign interference, but in¬

"What Iran needs for,
more

ing fraud and misrepresentation,
in view of a stipulation agreed to

the

has

Government

is assumed that Iranians

violating / provisions of the
Securities Exchange Act. involv¬

their

require almost

social

pot panaceas
they have to

times,

seems

withdraw their troops from.

are,

and

erack-

all the

they

have yet to prove
themselves fully qualified to find

of the number of economic quacks applying for

States, Britain, and
Union, strong powers

Soviet

that

list of

play.

The United

the

mentality.

census

to meet the best
in the struggle for justice

and fair

faithin inde-/

'In * ;^ibh#it\

Millspaugh

men¬

readiness

minds

cans are jrumr

Ccrmmissiomon^pfif^.

;

Dr. A. C.

Iranian dis-

pute

merators

make

m o s

Exc^angd

t#"

of#;

Soviet-;

the

try's

many enu¬

It
pity

by SEC

•

u r r e

...

Greenfield Charges

gar

manship, of Iran's abundant

1929-1933

the job of making over the Government of Iran would

offer/

wing$

statement

act

To take

States, standing

UNO

tal equipment for defending itself
before the world and of that coun¬

Mr. Hart protests against suggestions of robbing one of the oldest
civilized nations of its independence. Says Westerners must under¬

is now

the

conference
in
New York, has afforded splendid
demonstration of Iranian states¬

Sovereign State

U. S. Minister to Persia (Iran)

Through the Brookings Institution of Washington, with which he

Iran

before

By CHARLES C. HART*

C. Millspaugh, recently administrator of Iran's finances, sees
American-Soviet-British guardianship for from 25 to 50

need of
years

dor in the United

Iran Must Remain

Holds Iran Needs Constructive
Dr. A.

1937

on the. spa, as. in the., early
all days Ot the Company's existence,
but ^also on land and in the air.
J^/"From a modest beginning The Fortified .by ;the- experiences of
Home
Insurance
Company has war, and buttressed with a strong
position,
the
North
reached its 93d milepost in years. financial
Compared to 1945 figures of more America Companies now iace the

increasing only

constantly

fronting

of underinsurance
classes of risks. H
cases

Bank

and Insu
VAN DEUSEN

By E.

This Week—Insurance Stocks..*
We present this week

Thursday; ApriH 1.1945

& FINANCIAL CHRONICLE

THE COMMERCIAL

millions of premium in¬

than 74
*

excerpts from a few of the annual reports
companies on 1945 operations. No

to stockholders of fire insurance

insurance . require¬
ment of business and the individ¬
and

wrote $160,000 in premiums.
Surely the enterprising spirit, of
hard work and ual."

pany

casualty

"During the past

have

ress

losses.

year much prog¬
has been made in revamping

the rules, rates, and practices of
the .'fire and casualty insurance

companies

comply with the
changed conditions brought about
by the Supreme Court Decision
in

the

South-eastern

Association

ers

paries''

Underwrit¬

rapidly

are

The

case.

corn-

recovering

fairly

some
.

substantial

"Early in the year an Act of
Congress known as Public Law 15
became operative.
This Act pro¬
vides that until Jan. 1, 1948, the
Federal
anti-trust
Acts, except
for actions or agreements involv¬
ing boycott, intimidation or coer¬
cion, are suspended with respect

from the first confusion and shock

Jan. 1, 1948 these various Federal
Acts will apply to the insurance

method

has been

which

the ' business

the

After

business.

insurance

•

;
of i North

Company

Insurance

of this fundamental

change in the

ident.

principal

the

America—"All

workable and practical
which will preserve to the

and

states the surpervising of the in¬

business,

surance

but

laws suffi¬

ciently flexible to avoid the put¬
ting of the business in a strait-^
jacket. If the free enterprise sys¬
tem

is to be allowed to continue,

the insurance business will find

reasonable solution." W. Ross Mc¬

Cain, President.

Hanover Insurance

Company—

"The volume of premium was the"

largest in the company's history,
increasing the unearned premium

$613,551, to $8,583,903.
Hanover's
underwriting
loss
on
a
statutory basis was
$478,731 brought about by the
large increase in unearned pre¬
reserve

"The

mium reserve, continuation of ex¬
cessive fire losses further reduc¬
tion
in
rates,
liberalization
of

forms without increased
cost, and
an

unsatisfactory automobile

ex¬

law

has

ocean

rine.

marine,

ocean

risk, and inland ma¬
The fire account as a whole,
war

including motor vehicle insurance,
showed an underwriting loss for

already resulted in the experience on hail and windstorm

of
some
regulatory
statutes, and it is expected

enactment

Officers

insurance

com*

panies are realistic and fact-fac¬
ing- men, not given to the making
of
glowing and over-optimistic
statements- Certainly no extrava-;
gant statements are to
inthe- reports

•

classifications

are

Ex-

Changehaveadmi.tt.ed.CarIE Kn,v
and Henry
Vande| Vport togen

be -found
'i from wfych 'the
Company contributed in varying above excerpts were taken.vHow*
degree to the favorable results re-, ever,"ih eacli;rej)ort oifp detects a
corded. Profits from underwrit- J note of qiiiet 'assurance that^ eyen
ing resulted in each of the-majorj as * thtei u insurance ^business" has
written- byV the

business

lines of

successfully operated, business except to the extent that the year. However, the loss was
They are now cooperating with the business is regulated by sev¬ some $700,000 less than that of
the
states
in
revamping
laws eral states. The passage of this 1944, due largely to satisfactory
which

Mr-

:.;X- M

its owners and the

earnings figures, however,;are presented. For net underwriting re¬
of " its * staff - members
sults, net investment income and total net operating profits for the vision
years 1945 and 1844, the reader is referred to the March 14 and 28 throughout the years have - more
than fulfilled the dreams : of -its
issues of the "Chronicle."
founders." Harold V. Smith, Pres>
Aetna
Insurance
Company —

DETROIT, MICH. —Cray

tSSnfVSPmSSm'M-their; beAjjf the p&olt ■ Stwk

the com¬ ability to meet every fire, marine,

dollars; in 1853

come

Kane,Yander Voori

business.

•

served,- prospered;-and> ^advanced,
in the past, so will it continue to
do

in; the future.

C. E. Kan

; • */

era!

Denmark Joins
has

My. Kane was
the firm
recently been released

formerly,
and

offjcially joined

partner, in

has

from

Denmark

Henry Vander Voort

partnership.*

active-duty

Lieutenant

Commander in the Navy.
During
the war he served in various naval

government, units
on
phase of the the International Monetary Fund military
that the various state legislatures Company's activities contributed and the International Bank for Okinawa,, other Ryukyu Islands
and the Palau Islands.
which have not already done so substantially- to the income; for Reconstruction and Development,
Mr. Vander Voort has been with
will pass laws similar in purpose, the year. Interest on bonds and according to
Secretary Vinson,
giving^ them power to regulate dividends on stocks exceeded the [Chairman of the Board of Gov¬ the firm since 1930 doing analyti¬
certain" underwriting features of amounts received in any previous
ernors
of the two international cal and statistical work in connec¬
the business. They will continue year,
and
appreciation in:the agencies. Henrik de Kauffmann, tion with underwriting^. He has
to. exercise their customary su¬ market value of securities held, Danish Minister -. to the United recently been engaged in primary
pervision over the financial con¬ over the cost thereof, was a ma¬ States, signed for his country in and secondary distribution of se¬
dition of the companies.
;;
:
We be¬ jor factor in the continued growth Washington after ratification by curities,
lieve a few of these regulatory of assets and surplus.
the Danish Parliament. The Treas¬
Acts will appear in the current
"On Jan. 1,1946, an Aviation De¬ ury Department in making this
year but probably more of them partment was established to serve
known on April 4, further said:
will be enacted in 1947. We have the
insurance producers, of
"Denmark
all
participated * as an
been able to adjust our opera¬
companies in the North America observer at the Bretton Woods
tions to these new conditions and
Group.
The Department is in Monetary Conference in 1944, but
(Special to The Financial chronicle)
we anticipate no insurmountable
charge of Charles- A.. Sanford, no quota was established because
LOS ANGELES, CALIF.—
difficulties." C. S. Kremer, Presi¬ Lieutenant Colonel, in the
Army Denmark was then occupied by
Frank O. Bruck has become as¬
dent.
Air Forces during the War-and
German forces.- At the recent In¬
sociated with Morton Seidel & Co.,
formerly engaged in aviation un¬ augural Meeting in Savannah, Ga.,
Home
Insurance
Company —
458 South Spring Street. He was
derwriting for a considerable pe¬ her quota was established at $68,"According to the National Board
riod of time.
Progress is being 000,000 for the Fund with a like formerly manager of the trading
of Fire Underwriters fire losses indepartment for Oscar F. Kraft &
made in the assembly of an un¬
the
United
States
subscription for the Bank.
;
during 1945
Co.. and was with Quincy Cass As¬
amounted to $455,329,000, a 7%% derwriting organization. The De¬
"According to Mr. de Kauff¬
sociates.
increase over 1944.
This is the partment has begun to functiqn mann, his Government has named
on a properly conservative
basis, as Governor, for. the Fund and'
largest reported in this country
since 1930 and with exception of but it is hoped ultimately to write Bank Carl .Valdemar Bramsnaes,
all types of ayiation insurance.
nine consecutive years during the
Governor of the National Bank of
"Stockholders were advised- un¬ Denmark. Einar Dige, Assistant
'Prosperity'- period of the 1920's,
der date of Nov. 30, 1945, of the
the largest since the year of the
Secretary of the Danish Treasury,
great San, Francisco conflagration proposed increase in the capital was named Alternate Governor of
(Special to The Financial Chronicle)
of the Company from $12,000,000
in 1906.
It should be noted that
the Fund and Erling Sveinbjorn-1 ST. LOUIS, MO.—Clifford T.
to- $15,000,000 and received Sub¬
during the five-year period 1941
sson, Chief of Division of the Min¬
Ayers has rejoined Taussig. Day
through 1945 fire losses were 40% scription Warrants entitling them istry, of Commerce was named Al¬ &
Co., Inc., 506 Olive Street, as
to subscribe to additional shares
higher than during the preceding
ternate Governor of the Bank.
manager of the trading depart¬
of
five years.
capital stock at $40.00 per
ment.' Mr. Ayers, who was re¬
share in the ratio of one new
"Some experts view the fire
cently discharged from the U. S.
share..for each four shares held.
loss experience of 1945 as a
sig¬ Over 98%. of the
Army, as Captain, was manager of
300,000 shares
nal
that
underwriters
the
may
be offered was subscribed
trading department of the
by Dec. 31,
facing a period similar to»that
firm.
HI
1945, the date on which the Sub¬
suffered during the reconstruc¬
Opposition to changes by Conscription Warrants expired.
tion decade
following World War
"The ownership of the Com¬ jgress, in the Public Utility Hold¬ Australia and New Zealand
I. Whether or not this
may be so,
ing Company Act, were voiced on
pany is held by a widely diversi¬
management
in
preparing
for
8th
fied group of stockholders—indi¬ April
by
Ganson
Purcell,
such a contingency, will call
upon
viduals, estates, trusts, charities, Chairman of the Securities and
every
resource
at -its
disposal.
!
new south wales
educational institutions, and
Exchange Commission, according
Fortunately
oth^r
problems
of
this
to Associated Press advices from
(ESTABLISHED 1817)
nature, however formidable, are corporations, residents of every
not new to the business which has., State in the Union and several ( Washington on that date, which
Paid-Up Capital
—
£8,780,000
also said:
Reserve Fund --J
its hand so
closely on the pulse foreign countries. One effect pf
Reserve Liability of Prop.- 8,780,000
the issue of additional shares 6f
Summing up the detailed testi¬
of the nation and must be fore¬
£23,710,000
stock was to materially increase
mony he and Milton H. Cohen, di¬
armed in its service to
state

"The

investment

Frank Bmck Joins

Morion Seidel l Co.

perience.
;

"The management of your com¬
panies did not in 1945, nor will it
im the future, violate the prin¬
ciples of sound underwriting, so
is hopeful that when there is ah

improvement in conditions which
affect the fire insurance industry
as

whole

the

underwriting

re¬

sults of the Hanover will at once
show a profit." F. Elmer Sarrimons, President.

Hartford
pany

—

Fire

"Fire

Insurance

the country were

throughout
greater in 1945.

Also certain sections of the

try

Com¬

losses

coun¬

subjected to heavy wind
and hail damage. We suffered no
were

real

disaster,

although

Comparison

and

did

Trading Manager

^icell Advl$ei$ Against

banTof

Analysis

1st Quarter 1946

19 New York

Bank Stocks

j
j

Circular

owners of

on request

homes
where.

Laird, Bissell & Meeds

industry

every¬

the

number

Members New York Stock
Exchange
120 BROADWAY, NEW
YORK 6, N. Y.

"Policyholders
failed to
to

Telephone: BArclay 7-3500
Bell Teletype-—NY 1-1248-49

largely

have

keep their insurance
increasing values with the

up
re¬

stockholders."

John A.

rector of the Commission's Public

are

Division,, have given dur¬
ing the last two weeks before a

taken from the ''Foreword" to the

\ House Interstate CommerceSub¬

report: " 'The Insurance Company
began business
in 1792 at a time of national
peril.
It is the lot of underwriters
to

of North America

Oibhs. Manager Trading
Department)

selves
losses.

coinsurers
Loss

finding them¬

committee, Mr. Purcell said:

their

own

are

con-

adjusters

everyday

firmed the determination of Con¬

deal

with perils

years
were

PRIMARY MARKETS IN

seas.

the

GEYER & CO.

BOSTON 9

NEW YORK 5

Office Square

HUBBARD 0650

CHICAGO 4

Jt'all Street

231 S.

WHITEHALL 3-0782

EaSalle Street

FRANKLIN 7535

F.y-297
NT
1-2875
t'O-105
PRIVATE WIRE SYSTEM
CONNECTING: NEW YORK.
BOSTON, CHICAGO

PHILADELPHIA, ST. LOUIS, LOS ANGELES
HARTFORD, Enterprise 6011
PORTLAND, Enterprise 7008

PROVIDENCE, Enterprise

7008

of the North America's life
spent amid conflict on the
Its

part

seas

between 1793 and

would'

flyi nowhere

1815,

now.

gress in 1935 that this is
able and necessary

Head Office:

of self protection. In this
way it
is able to protect others.,' "
From

Biography of

quis James.

"During
demands
surance

ica

and
,

Business, by Mar¬
t
/'
,

World

were

War

made

heavy

the

In¬

Company of North Amer¬
on
its subsidiary com.

panies for insurance
coverage

not

£223,163,622

George Street,

SYDNEY

LONDON OFFICES:
29 Threadneedle Street,

47
*

E. C. 2

Berkeley Square, W. 1

Agency arrangements with Banks
throughout the U. S. A.

desir¬

objective.

"We feel that

the amendments

proposed by the various company
witnesses would frustrate or im¬
pede attainment of this objective,
and that np other amendments

are

NATIONAL BANK
of INDIA.
Bankers

necessary."

•

company thus living by dint pf
surviving hazards learns* the arts

INCORPORATED

Jtotf

keeping the
American flag afloat during the
troubled era was noteworthy arid
if the flag had not
been kept on

BANK and INSURANCE STOCKS

30th

THOMAS BAKER HEFFER,
General Manager

"The objective of
simplified intergrated utility systems is well
on its way to achievement. All ex¬
perience under the Act has con¬

happening. ;Virtually the first 22

sult that many are

Aggregate Assets
Sept., 1945

Utilities

Diemand, President.
following quotations

The

and

Head

Russell

Lea

has

Branches

120 Broadway, New York
City, members of the New York

Exchange. Mr. Lea has been
serving in the U. S. Natfy./Prior
thereto he was with Eastman, Dil-

Ion &

Company.

;

The

India,

26,

Burma,

Ceylon, Kenya
Zanzibar

Capital——£4,000,000

conducts" every
banking and exchange

Bank

Uganda

Bishopsgate,
London, E. C.

Subscribed

Co-i

Stock

LIMITED
Government in

Cokmj and Aden and

been

added to the staff of
Reynolds &

the

Office:

./iX

Reynolds Adds Lea
Charles

Kenya Colony and

description
business

Trusteeships and Executorship*
/ also undertaken

Number 4480

163

Volume

Ohio Bars Sale of

THE COMMERCIAL & FINANCIAL CHRONICLE

Benguel Mines Shares

?'? vVA

Requests! that blue sky registration of 50,000 shares by Allen &
witMravn
ground that selling price J* not Mtified and
that dealers are making an uneoncionable profit, '& Allen & Co.
make statement refuting allegations of Ohio authorities.
April 3; the Securities Division of the Ohio Department of
issued a memorandum in which it requested the with¬
drawal of an application by H. B. Cohle & Co., distributors for Allen
& Co. of New York for the sale of *50,000 shares of the capital stock
of the Benguet Consolidated Mining'Co., whose properties are located
in the Philippines, on the ground that the selling price of $4 per share
On

Justified,! that; the spreacf•
—
■—the price Allen & Co. said shares would he used to re¬
paid ($2.10 per share) and the habilitate the mine and place it in
~

between

is excessive, and that Operation, it would be much fairer
the hook value of the properties than to have said proceeds go into
is only between
90 and 100 a the pockets of Allen and Com¬
share, and ; that because of the pany, whose profit spread on this
is ' of an ' unconscionable
Japanese invasion, the properties stock
•
will require an immense sum for character.
Without copsidering the specu¬
rehabilitation.
All these allega¬
tions are denied by Allen & Com¬ lative character of the enterprise,
pany in a' statement .? issued on it would seem, for the i reasons
stated above that the proposed of¬
April 4.
«iftv:
selling price

The text of the memorandum is¬

Ohio authorities and
signed by Ernest Cornell, Chief of
the Securities Division, is as fol¬

sued by the

and, should
this

The

Benguet Consolidated Mining

Re:

Company,

statement

which

mission for

made

our

application to register by
qualification 50,000 shares of the
capital stock of the above named
company, on March 30, 1946. The
Benguet Consolidated Mining
Company is a corporation engaged
in mining gold and chrome in the
Philippine Islands. Said company
organized in 1903 under the
laws of the Philippine Islands and
has been engaged in mining op¬
erations until the Japanese inva¬
sion of the Philippines in 1941
when the mining operations were
suspended. The company has only
one elass of
stock, being common
shares, all issued and outstanding.
was

issued

o m

April

heard

opportunity to be
its request to withdraw
an

application.
the

When

commission

all

sold

submit

the

cash on hand, for
investigations
show

engineers'
that

the

ore

reserves

are

intact.

Benguet Consolidated
Mining Company we are confident
of getting its approval.
"When the Philippines were in¬

the second
under the
American flag. It had an uninter¬
rupted dividend record for 25
years prior thereto, and has never
had to raise a single dollar- by corr.
vaded,

Benguet

was

largest gold producer

This advertisement

posed $4 offering price, Mr. Holtz-.
mann
replied that present overthe-counter quotation was $3.50.

In addition to gold, Benguet has a
working arrangement to the ex¬
tent of 50 per cent in the world's,
largest known refractory chrome

test

Ranson-Davidson Go.

Holtzmann

mine.
"There has been

market.

free and open

market here

than

being .maintained by
brokerage houses.

Co. has been

purchasing blocks of

this stock from Haussermann fam¬

ily trusts in liquidation for three
years.
Judge John W. Hausser¬
and his wife have not sold

mann

single share of their
which

own

approximate

holdings,

shares*"
Allen

"You oughtn't to damn us," Mr.

contended, "if we took
risk and the market rose. Your
and approach is
unfair to.
Allen & Co. and other banking

TEX.—The
Co.,
Incorpo¬
rated,
specialists in municipal
bonds,
announces
the appoint¬
houses."
ment of George J, McVey, for¬
Lucien H. Mercier, counsel far
merly assistant manage?, as man¬
Benguet Mining Company and far
ager of their San Antonio office,
the Haussermann family, declared
Milam
Building.W.. L.
a

the stock had

intrinsic value of

•

SAN

Read*f

formerly with Central Life ofIowa, will be assistant manger.
I

between 9 and 10 cents.

Mr.
and

Cornell

gave

reserved

Mr.

Thursday, April 11, to file
orandum

with

decision

Holtzmann

Co. Counsel Defends
Profit Margin.

Complying with the request of
Allen & Co. for

hearing, the Se¬

curities Division of the Ohio De¬

partment of Commerce heard

the

office

argu¬

ments.

Fransioli & Wilson to

Admit John Creem, Jr.

Haussermann, who disof the Benguet shares to
Allen & Co., made a personal plea
to. the Ohio Commissioner at the
hearing.
"I
hated
to
part
with
any

John J. Creem, Jr.,

stock," he stated, "but I had set
up trusts for my family
and I
April 8, arguments of Jacob Holtz
mann, attorney for Allen & Co. knew that, as a mining stock, it
The hearing was presided over by was not a trust stock."
Ernest Cornell, Chief of the- SeHe said he wanted to convert
on

the

New

will

York

become

sioli

Wilson,

members of the
on

member of

Stock

partner

Exchange,

in Fran¬

Wall

April 12th, on which date W.

Wilson Hewitt will retire from the

firm.
as

Mr. Creem has been

many years.

appears as a matter of record only and is not, and is under no circumstances to be construed as, art
or as a solicitation of an offer to buy any of such securities.

offering of these, securities for sale,

shares,

now desired

to of¬

few weeks later,
estimated price of $4.00 per

share.It must be
stood

that

the

(A Delaware Corporation)

clearly under¬

which

are

desired to be sold in the state of
Ohio are all issued and outstand¬

ing shares formerly belonging to
the Haussermann family and now
the

evitaPreferred Stock
lumuC%5

30,000 Shares

property of Allen and Com¬

pany,- and
that not one
from the proceeds of said
will

into the

(Par Value $100 Per Share)

dollar

treasury of the

company.

There is

PRICE $104 PER SHARE

evidence in the files

(plus accrued dividends from April 1,1946)

to show that an estimated
selling
price of $4.00 is justified at this

time,

when

ently

were

these

only

February 7,

worth

1946.

appar¬

$2.10

examina¬

175,000 Shares Common

tion of the latest balance sheet of
the Benguet Consolidated

Mining

Company

would
indicate
shares only hayq a

these

(Par Value

that,

value of between 9 cents and 10

further

examination

par

the

$34,625 PER SHARE

the

Prospectus describing these securities and the terms of the offering may be
of
the
such of the undersigned as are qualified to act as dealers in securities

Copies

upon-which, the

obtained front

predicated, due to

reP5$
Share)

■

application and exhibits indicates
that these
mines,
stock issue is

PRICE

share, although the
§0 ^^it^ per 'sharh. -

value

Stock

book

cents per

Japanese; invasion and later
to the
re-taking of the Philip¬

pines by the United
States, show
much destruction of

property in

that the mines

are

that it

will

Ladenburg, Thalmann & Co.

estimated to be

between 50% and 60%
and

Wertheim & Co.

caved in

require

ex¬

penditure of over $2,000,000 to
clean up land rehabilitate said

Co., Inc.

Glore, Forgan & Co.

Goldman, Sachs & Co.

mines in order that

they may be
The last balance sheet

operated.
of

Harriman

the

company 'does now show
the
company has money or

that

"quid

assets

the

amount

would

Lazard Freres & Co.

the amount which it is

estimated
clean

mines.
.

up
-

required to
and rehabilitate said
-t.w./ -,h •• V.a-,7
.

...

would, therefore,

the

proceeds

from

appear
the

that

sale' of

Co.

Kidder, Peabody & Co.

Incorporated

$2,000,000,

ey &

April 1Q, 1946.

..ft'

active

individual floor broker for

7, 1946. The price that Allen and
Company paid for said shares was
fer said

Street,

Stock Exchange,

and
brokers
from
the
Haussermann Trust on February

lo¬

Wichita, Kansas.

writers

$2.10 and it is

Beacon7 Building,

until

a mem¬

additional

main

firm's

The

cated

Judge Haussermann's Statement
&

ANTONIO,

Ranson-Davidson

$3 a share, Mr. Cornell's memo¬
randum gave it a book value of

1,000,00ft

fac

relative to

purchased by Allen and
ny, New
York under¬

p a

hearing is asked be¬

were

desired to be

limited to

.The current over-the-market quo¬
tation i? from 3% to 3%. Allen &

"We have asked the Ohio Com¬

Cohle and Company, li¬
censed dealers of Cincinnati, Ohio,

The

from

otherwise denied.

fore the Ohio Commission follows:

Ohio

4th by Alien & Co.;, in New York,

Section 10 Number 12113.
H.

withdrawn

Division,

Statement of Allen & Co..

•'■■■'Jr-.pj.'-

MEMORANDUM

(

Benguet. stock both
fer. is upon grossly unfair terms : here and in the
Philippines, the

••

lows:

order ' against the sale of
Benguet
Consolidated* Mining
Company
.

Commerce

not

curites

Division, who issued the his trust iiwestmentjs intdv nonde^
preciable holdings.
.*
"In 1943, when the Japs wero;
1939 alone it paid out dividends of shares in
Ohio. $■*?
7
ip the mines, Allen lhad© me A
$5,100,000
for
the
first
Mr.
nine
Holtzmann stated at the firm offer of $1.05 net and I ac¬
months.
'!
hearing that Allen & Co. had cepted. Later, other? wanted to buy
"During the war great damage bought 2,200,000 shares f r om but I felt that Allen should have
was done td everything above the Judge John Haussermann, Judge first
choice
because
they had
ground, hut it is expected thai this Advocate for the Army in the taken the original risk."
/■
will be compensated in a measure
He added that the only reason
Philippines during the Spanishthe mines are not producing gold
by legislation now pending in American War, getting 1,110,000
Congress. The properties are now shares for $1.05 each in 1943, an¬ today, is the inability to get ma**
being rehabilitated. Over $3,000,- other block at $1.80 last year and chinery, and stated that two ship¬
000 cash on hand is available for the remainder at $2.10 on Feb. 7.
loads of chrome from the mines
that purpose and the company
been
sent to the United
When asked how Allen & Co. have
does not seek or need new fi¬ justified the spread between the States.
nancing. The book value bappot latest buying price and the pro¬

$36,875,000 in cash dividends.

Co. be

porate finqncing, nor does Itnow.
It paid but during; thai period

1939

Lehman Brothers

grade externals maintained their
firm tone. A large volume of Na¬
tionals changed hands with little
effect on the market level. Ontarios

BRUCE

has penetrated the
Canada was able to
preserve a stable 3% coupon on Dominion issues.
Demand in this
country for Canadian internal bonds was on a very limited scale. As
a

funds

the

across

continued

initial

Dominion of

Not

border

CANADA

Due

Sept. 1, 1966/61

Canadian

Currency only

Price 95.75 and interest
(United! States Dollars)

which

prospects

little in sight
disturb the present firm pat¬

coverage

wage-earners

1936-37.

considering further the
inclusion of small business men in
Before

social

the

should

security program, I
to touch upon two

questions of

Mgr.

ture.

There

a
are

more general na¬
a few people who

still ask: "Why

do we need a com¬
prehensive social security pro¬
gram?" They also ask: '"Even if
we do need it, can we afford it?"

For First California

SAN
FRANCISCO, CALIF.—
~We
must
answer
these ques¬
importance in George H. Grant, President, First
Company,
has
an¬
the longer maturity section to ren¬ California
tions before we can proceed to
nounced
the appointment of J.
der entirely inoperative the con¬
construct a sound and well roundRussell
trol of the market by the Bank
recf social security program,
Postlethwaiteof
Canada.
The
slow
upward
trln the early days of our coun'as Vice Presi¬
tempo of the long term bonds was
ftryi every family was a business
dent ahdGep^--]
suddenly accelerated and-to all in¬
All
the
members of the
tents and purpdses-ffie Dominio'if irer-ai
worked together to make
Government bond pihrket
JfBlT family's living. Their living
come
a
reflectibli ' bf fhe'U. S. dhn^Ccmipahy^
I'M:.
^as" the direct product of their
Government bond^mafke't. W*
'Wfe labor: growing and preserv•r r
&
eir food; spinning and weavWhile the tr~
cloth; making candies and
strong the gene!
able the
cutting their lumber for
I
Government

bond

has

market

sufficient

span.

At the one end of the
age scale
the interest of the Nation
and the
individual have caused us to
pro

long the period of
least for the

dren.

the

caused

old

fhey have

insistent

age

fortunate chil-

other,

self-respecting
when

dependency

demand
of

means

for

support

makes it desirable
stop paid work

necessary to

'/ Social security'measures in this
country, as in all other modern
nations, are one important means
of conserving in a money
economy
human

values that free

men

have

J. R. Postlethwaite
V.-P. & Sales

have shortened the economic
work

the

Need for Social Security

con¬

"hot money" that is

been

Payable in

source

stocks

likely
to be withdrawn as rapidly as it
has
been
deposited.
Further¬
more, the effect on the Dominion
cern

3% Bonds

future

paper

program

tered efficiently.

tern, but lack of supply in the ex¬
ternal section gives little promise
of increased activity.

the heavy influx
of U. S. exchange an immediate
embarrassment to the Foreign Ex¬
change Control Board, but it also
a

and

With regard to future

was

constitutes

ance

there appears to be

step

only

and survivors insur¬
has been adminis¬
After ten years
of experience and with a smooth¬
ly
functioning
administrative
framework established, the prob¬
lems of coverage for the self-employed are undoubtedly less dif¬
ficult than were those of initial
old-age

ent

The

active

at 9 3/16%.

tide by the removal of the
1

peak levels on the Tor¬
onto board. Free funds were firm

in stemming this
regis¬
tration privilege.
an

Albertas

and

was

went

doubt that the

any

with renewed demand for internal
bonds

longer appears to

extension ot
social insurance coverage to all
Saskatchewan persons is practicable. The pres¬

dull and inactive.

section

internal

that the Canadian authorities took

$500,000

1961

yield of 2y2%.
were
unchanged

Canadian Government bonds suddenly appeared in a very
attractive light. Previous inhibi-^
tions based upon reluctance to in- vest in a foreign obligation were
promptly forgotten.
The foreign
exchange
bogey
also
lost
its
frightfulness in the urge to pur¬
chase income.
So great was the
of

There

high level and
were placed at

new

ever,

flow

4V2S

the

interest pattern here, how¬

of the accentuation of the low

result

established

(Continued from page 1928)

also

Scotias

Nova

basis.

2.50%

The pressure towards lower interest levels
northern border. During the entire war period

1945

Small Business Man

their

surpassed

highs with "the 4V2S of 1955 on a
1.85% and the 4%s of 1965 at a

WILLIAMS

Thursday, Aprfi 11,

FINANCIAL CHRONICLE

THE COMMERCIAL &

always prized. They are a
way in which people join as a
whole,, as once they joined by
families,
to
assure
that
their
members

will

have

what

health and

need for

they

decency

and

self-respect throughout their lives.
From the standpoint of the in¬
dividual, social security provides
a

means

acquiring, during the

periods when
self-respecting
when

nance

the

From

one

can

right

work,

standpoint

mainte¬

cannot

one

work.

society,

social security provides an
orderly
and constructive means of offset¬

ting, and to some extent prevent¬
ing, catastrophies that menace all
families at

one

time

another in

...

borrow

the

Dominion Securities
v

control

Except for

soilpWtpoF^''

intefhM^hMr'ff^

PressgSMKgig

securities^uhf Mdift."

un settlement ;ajn$ in v
limited market in this di-'

general
of the

rection

CANADIAN BONDS

the

could attain

There

market movement,
major proportions/
little

doubt

that

the

Canadian authorities have already

GOVERNMENT

given serious thought to this prob¬
lem and are ready to
cope with

PROVINCIAL

the

situation

necessity arises.
removing the reg¬
privilege is sufficiently

Their action in

MUNICIPAL

istration

indicative of proper concern.
this connection it is

CORPORATION

market

CANADIAN STOCKS

admit
ternal

INCORPORATED
■'

vT O

TWO WALL STREET
NEW YORK 5, N. Y.

that

these

ever

the

would

A. E. AMES & CO.

for

country
back

bonds

suffer

NY-1-1045

the

only

bers of the New

to
in¬

the firm

neces¬

in order to bring matters into
proper perspective, to recall the
precedent
of
previous
inaction
thfe market break

were

permitted to find their
were

head

department.
been

oh Can-v

ada's entry into the war when se¬
curities
outside
the
Dominion

Granbery, Maractie
York

Stock

Ex¬

change, announce that H. Clifford
Shallcross, formerly a Lieutenant
Colonel in the Army, has joined

sary

hftbr

of the

Robert A.

appointed to

partment.

Mr. Shallcross at
a

the

research

Don

has

same

de¬

one

time

was

corporate analyst with the Se¬

own

quoted

at 20,% as compared with the of¬
ficial level of 10% discount.

During the past week the high

way

way or another. If they are
not borne constructively, in ways
which sustain the worth and in¬
one

tegrity of the individuals who suf¬
fer

catastrophe,

were

Often

the

things

.many

curities
in

Exchange Commission

Washington, D. C., and has been

the

investment

banking field

since 1922.

the

owners

grandparents

the

business

land from which the

they

Their

came.

WHitehali 3-1874

comprehensive and adequate

social

tends to

fam¬

experi-

could

give

the

the heavier work.

Under today's conditions
go

school

child

much

longer
than once was the practice if he
is to be equipped to
play a useful
part in our present type of socie¬
ty.

factories, offices, and big
stores there is far less
opportunity
to adjust jobs to the strength of
the young
in a

was

the old than there

family

complexity
modern

security
program
is of
proportionate to the pro¬
gram's coverage. With full cov¬
erage, we increase the number of
social

course

constructive
uals in

younger

members, even after their own
strength was no longer equal to

must

joys all of these advantages of the

our

and

business.

competition

business

and

The

industry

Social
who
other

and

reasons.

is the only
is no more
of

desirable

democratic way. There
justification for the ex¬
some
sections of our

population from the advantages
social
be

for

yield 3.32%

SECURITIES
Government

advantages Of public education.
The usefulness and importance
of

social

insurance

Provincial

Corporate

Street, New York 5

Direct Private Wires

Toronto & Montreal

depend

terms

current

living

costs.

Likewise, to be of full utility,

HELP

OTHER CLASSIFIED ADS

Incorporated
14 Wall

also

the payment of benefits ade¬
quate for a reasonable subsistence
upon

Wood, Gundy & Co.

Municipal

there would
their exclusion from the

security than

United States Funds

CANADIAN

all

still

for

Universal coverage

FOR

4% Perpetual Debenture Stock
Interest payable semi-annually

individ¬

Security coverage for

work

clusion

active

system of free enter-

Canadian Pacific Railway
Company

Price

relief, and lowered eU
ficiency and morale.

"advice*

$50,000

& COMPANY
64 Wall Street, New York 5

must

emergency

Non-Callable

they

borne in terms of poverty, disease,

TAYLOR, DEALE
■t

of meeting costs which
society must bear in any event in

living

living. Ma-

that equipped them for their

Granbery, Marache & Lord, 65 ily's
living
Broadway, New York-Gity, mem¬

this

action

our

adult responsibilities by watching
and helping in the work of their

elders.

authorities

securities

level and free funds

; RECTOR 2-7231

Shallcross Joins Staff

serious set¬

Canadian

market.

do not make

existence.

The extent to which society en¬

should

eventually take
these

can./make

3[#hines

ence

seriously be¬
lieved by many
over-optimistic
and belated buyers of Canadian
internal

*#oday

their

course

security
program
thus
safeguard social stability
^asaeheaper ,and better than they can in a country. It tends to stabilize
•—-made at_ home.
The " family the purchasing power of the Na¬
omy'"of 6Ur early days, in tion, on which private business
PWKTch members* of a 4«msehOld ana
public* re verities both depend.
fle$ended "ori the labor of one^nr- It contributes to the efficiency and
Chaiwifeh~bf the
Exe£iithHe?€om*^
help of tKeirTtelgh- vigor of the labor force by under¬
m^irt^y«C5aiifo3aiiar
ateurs, has given way to the inters writing
a
isasicP''minimum for
LB.A.A; .^He is''^a^fpr§sideht-^5i! ttependenee of people who are family support when the bread¬
^hundreds or thousands of miles winner, through no fault of his
First "California Company, one apart.1 ~
•
own, cannot earft that minimum.
of the largest investment firms on
When, family farms and small It helps to keep the door of oppor¬
the Pacific Coast, operates sixteen
fdmily businesses were the back¬ tunity open for children who lose
offices in California and Nevada, bone of
our
their
economy there was
parents,
and enables the
maintaining
private
wires
be¬ much useful work to be done by aged to
stop work when physical
tween San Francisco, Los Angeles, the
young and old.
Children got vigor is past.
Chicago and New York.
practical education and experi¬

nadian market would undoubtedly

tered

^^Tetly,,. We,buy

Teletype NY 1-702-3

country.

the course

mediately reflect

registered

families

many

dfe-year

press

give rise to

few essentials, such

z&EB&t little money over

Bell System

barns, and furniture.

^Ifcg-salt and nails,

tendency
be" ";s

GovernmetiSSSlfcfi^til^

U. S.

40Exchange Place, New York 5,N.Y.

^ffefhouses,

any

will

gravated

Corporation

versal

i i

event

the

SEE INSIDE BACK COVER

the

THE

Number 4480

163

Volume

200,000 in finance, insurance and

must furnish protection

urogram

Gainst

all major risks, including
disability as well as old-age and

real

550,000 in

the construction in¬
dustry—made
up
pri¬

We Afford an Expanded
Social Security Program?

Can

marily

carrying

Social security does
not create costs. It is a method for
their orderly and rational distri¬
bution.
Without social security,
the costs of old-age dependency,
for example,
are borne by the
aged individuals themselves in the

in the

of assistance and relief. The
costs of such measures are es¬

pecially burdensome because they
are at their heaviest when the tax
income is lowest.
More important
than the costs of assistance and
relief, though not so obvious, are
which the community
bears in losses of the less tangible
values just described.
costs

afford

United States

expanding economy—not
depression economy of 1929-

national

tinuous
more

has

a year.
With such con¬
expansion we can adopt
adequate social security

tive

plan we
in the future.

than

terms

for

retire¬

employee for

small

man

other

which
in

his

are

our

inde¬

The average small business man
hard and risks his
own

works

but his income is not high.

In 1936

than half of the self-

those interviewed had net incomes
of less than

$2,000 for 1943 while
of the group had in¬

about

80%

comes

under

security

shared by most persons

society.

premature

The

death

hazards

and

reportings for

curity Board has testified before
this Committee that the Board
has been able to develop methods
of meeting the problems involved
in coverage of the self-employed.

the

Under

butions

reduced

social

se¬

curity purposes. I believe that the
coverage of persons down to this
income

level

would

great majority of

the

include

plan presented in his

would be collected

will be closed

The evidence is clear that small
need and desire the

men

protection
now
afforded
wage
earners against the risks of loss of
income in old age or through pre¬
mature death. It also is clear that
additional

types of protec¬
tion which may be extended to
wage earners, such as disability
insurance, are also appropriate
for
self-employed persons. The
administrative

deterred
business

which

difficulties

from including small
when the Social Se¬

men

curity Act first went into effect
capable of solution. The
feasibility of extending social se¬
curity to self-employed persons,
and the need for strengthening
small business and fostering new
enterprise are strong reasons for
extending the benefits of the old
age insurance system to the small

now seem

Emil

Schram,

President

the

Exchange.
official

Curb

Exchange,

the

York

New

stated

that

the

Curb would take similar action.

The New York Cotton and Wool

indicated they would
a spokesman for
the Chicago Stock Exchange said
they would also probably close.
The New York Coffee and Sugar
Exchange has voted to remain
closed on Saturdays during the
summer
it
was
stated
by t an
official. The San Francisco Stock

Exchanges
follow

suit and

Exchange will also close Satur¬
days during June through Sep¬
tember, the board of governors
announced. Other out of town

changes

expected

are

ex¬

suit.
Member banks of the New York

therefore, that the Social Security

Clearing House Association will
vote shortly on permissive Satur¬
day closings and large up-state
New York banks are expected to

America.

Act be amended to include

business

addition to

groups not now

the

small
other

included.

take advantage of

the New York
empowering com¬
mercial
and
savings
banks
to
close
on
Saturdays from June
through September. Banks in rural
areas have indicated they will re¬
main open because of the trading
R. M. Gibbs, regional Pittsburgh
importance of Saturday.
manager of "The Iron Age," na¬
The New York Stock Exchange,
tional
metalworking paper, has New York Curb Exchange, New
been appointed assistant to the York Cotton
Exchange,, the Com¬
President with headquarters in
modity and Produce Exchanges,
State legislation

"Iron

Age" Announces
New Appointments

the home office in New York City.
Before joining "The Iron Age," Mr.
Gibbs

advertising

was

Pittsburgh.
John

tain,
count

Huggett, former Cap¬
and previously ac¬

USMC,

executive

MacLeod

with

Ketchum,
Inc., Pitts¬

with

gross

incomes as

will close

Good Friday, April
'
' J

19-

manager

for Jones & Laughlin Steel Corp.,

Grove,
This plan seems
practical. At the burg, has been appointed regional
present time the success of busi¬ Pittsburgh manager of "The Iron

$3,600 per year.
both simple and
men

on Saturdays dur¬
ing June, July, August and Sep¬
tember,
it was
announced
by

urge,

businessmen

from

of their income tax returns up

ness

The New York Stock Exchange

small business

men.

some

Exchanges to Close
;
Saturdays in Summer; |
Good Friday Closing

$3,000.

The Chairman of the Social Se¬

testimony, social security contri¬

special eco¬

individual faces

hazards

proper

business
very

problems, the small busi¬ self-employed persons on the basis

force.

Far-sighted

rnrnmmmmmm

Droulia With Reynolds
Reynolds & Co., members New
Stock

York

that
now

Exchange, announce

Georges

Andre-Droulia

associated with them in their

office

The

Sherry-Netherland

Hotel.

Age" to succeed Mr. Gibbs.

These securities having been sold, this announcement appears

employers have long realized that.
By providing pensions, group life
insurance, and; sickness-benefit
plans, these employers not only
serve the general welfare but also
gain advantages in employee mor¬
ale and efficiency which compen¬
sate

a new

tax purposes has demon¬
their ,r ability
to
make

less efficient and less

labor

stable

toward

that

the

and
pension
for them in

insurance
They pay

group

are

money,

establishing

addition to

nomic

Employers now pay the costs of
dependency in other ways if they
are not met through the orderly

plans.

out

years,

ness

two

pendent business man.

any

methods of social insurance

and

year

government has unintention¬
discouraged new enterprise
and has contributed to making the
status of employee more attrac¬

expands, the rela¬
social security
adopt today will be less
of

discontinues

ally

income

cost

men

our

the

now, which will not be a
burden for the future. As our na¬

tive

he may well hesi¬
thought of reducing his
security in old age by dropping
out of the insurance system. Thus

plan

tional

life

tate at the

increasing at an average of

income

business

$500 in keeping records for

strated

should

all

concerns

income

ment

long period of time our

capita

men

protections.

same

contributed

several

per
been

hard

first

has

1933.
Over a

economic

The risks of

upon an

the

receive the

enterprise are great, and they re¬ employed had incomes of less than
strain many qualified wage earn¬
$1,000 a year. Somewhat later in¬
ers and salaried employees from
formation is available from a sur¬
going into
business for them¬ vey of self-employed men over 50
selves. Lack of old-age insurance
years of age made in Philadelphia
protection adds another reason for in the winter of 1944. This survey
remaining on a payroll. If a man showed that nearly two-thirds of

We should plan now for a
security
program
based

years.

business

low

income

own

fnree within nine years.

adequate social security program.
We have never failed, even in the
last three generations, to double
our national production every 20
social

But

five

the

broadened and more

small

the
old
age
insurance system.
over-empha¬ Many of them have at one time
know, small contributed to the plan as em¬
business men face a great num¬
ployees. They also make contri¬
ber of difficulties.
They are in butions on behalf of their own
competition with large business workers. It is strange to them that
organizations having superior cap¬ under the law as it now stands,
ital resources, research facilities, the
$50,000 a year president of a
production techniques, and mar¬ corporation may retire at age 65
keting and merchandising facili¬ and receive old age insurance ben¬
ties.
Mortality rates in the first efits from the Government. In the
year of life are especially high
event of death before retirement,
and life expectancy short. In re¬
monthly benefits or a lump sum
tailing, one out of three new con¬ may be paid to the family of the
cerns
does not survive the first
corporation official, but more than
year. Two out of three close their
4,000,000 business men who do not
doors within six years. In whole¬
operate as corporations are ex¬
saling and manufacturing, one out cluded.
size.

foTm

can

the

country

obviously bears

I believe that the

their

that

importance of small busi^ conscious of their exclusion from

ness

community through public and
private charities.

dependency

man

earnings due to old age, of per¬
manent disability or sickness, are
as real for the
self-employed per¬
son
as they are
for the worker.
We have recognized the need for
protection of our working popula¬
tion against the risk of reduced
earnings due to old age and death.
It appears only just and equitable

Small

the

were

account.
The

of dire poverty and distress,
or
by relatives who must them¬
selves suffer privation in order to
support aged dependents, or by

costs

one

businesses

form

The community

carpenters,

other artisans who

ones.

not new

painters, plumbers, and

costs of social security are

The

the

estate.,

200,000 in wholesale trade.

death.

the

COMMERCIAL & FINANCIAL CHRONICLE

the

costs

as a

matter

of record only.

April 10,1946

379,894 Shares*

such meas¬

Employers also have a spe¬
cial stake in those gains from so¬
cial security which tend to pro¬
mote a continuity in the flow of
purchasing power.
ures.

National Distillers Products Corporation

Coverage of Small Business Men

Common Stock

Social insurance coverage must
be universal if social insurance is

(Without Par Value)

-to do its full

job. The Department
particularly inter¬
the coverage of small

of Commerce is

ested

business

The

men.

individual

^Subscription Warrants for these shares

members of this group

need social
security
protection.
More
im¬
portant, however, is the fact that
such protection is one means of
preserving and safeguarding the
existence of this group. That exis¬
tence is one of the great bulwarks
of free enterprise.
First

let

poration and

upon

were

issued

the holders of the Common Stock of the Cor¬

the exercise of such Subscription Warrants 364,095 shares

The remaining unsubscribed shares were

were

subscribed for.

purchased by the Underwriters, severally, and have been sold.

identify those in¬

cluded in the ranks of unincorpor¬
ated small business. The United
States Census for 1939 listed over
4

million active

owners

corporated businesses.
in round

lowing

of unin¬

Harriman Ripley & Co.
Incorporated

Glore, Forgan & Co.

This total,

figures, includes the fol¬

groups:

Blyth & Co., Inc.

1,700,000 retail store proprietors.
1,100,000 proprietors
of
service
establishments, such as
repair shops, laundries,

Hayden, Stone & Co.

barber and tailor shops,

The First Boston Corporation

Kidder, Peabody & Co.

Goldman, Sachs & Co.

W. C. Langley & Co.

Lehman Brothers

hotels and theatres.

275,000

persons

200,000

persons

engaged in man¬
ufacturing.
h

Stone & Webster Securities

engaged in
transportation, chiefly as
owners

small

taxis

trucking

and

busi-

nesses.v

Mgi>^ WtlflMW

"II

Corporation

Union Securities Corporation

■1
m

!■

■

the

repeal.
-

The

.•?.•••„-

■.

second

the

enormous

ing*
■
With respect to dividend
ments and reductions, Mr;

facturers

ties" and also on the basis of rel-^———:—:—

have done so

risk." In-'the current
Letter the building, metal and Oil

ative price

are

groups

tive

rated as most attrac¬

both counts.

A Diversified1 Investment

in 231'Soeutitte*
'

Keystone Cd:'s current* Keynotes
illustrates^ how $6;000 might' be
invested in a wellrbatanced pro-

gtto/ 'usih#clkssesf hf -secUriti^
professional
supervision

obtain

constant;

selection;
and wide

The

divided1' between

bonds,

ferred Stocks and-common
and

includes

231

pre¬

stocks

securities.

Keynotes points out that' if in

dividual securities were, used, this

aboiit" $95,000.

the selection and super¬
vision of 231 securities would be
a
formidable task for one indi¬
Also,

investment

diversification.
is

t,'
type of program would be available only to the investor of large
means. For instance; the two bond
groups used in this' program rep¬
resent5 101 bonds- art# to purchase
dnly one each of these issues it
would require an investment of

vidual.

bulletin

The

concludes: f ~ "By

using this- program of trust, funds
classes of securities, the in¬
vestor can create a tailor-made
in

ity in foreign
even

marke.s—probably

itszlr.
American * chemical

in Germany

"The*

in¬

dustry is best equipped to supply
world markets."
Chemical stocks are considered

present levels for the
investor who is more
interested in growth of principal
long-term

than in current income.

Under
L.

the

title, * "Tax

Morgan* &

Facts,"

«.

Co.'s

current

Wellington News contains a sum¬
of Federal estate taxes and
taX'rates:! Art example shows how
estate taxes can be reduced by
mary

of gifts to the members of
the donor's immediate family.
means

It5 IS'
have

reported1 that
fbund

some

donors

Wellington

Ftfhd

shares" make' an ideal

gift for this-'

Lord/ AhbetFs current Invest¬
Bulletin on Union Preferred

Stock Fund reprints

item

a news

April 2
entitled " 'Death Sentence' is Con¬
from the N. Y. "Times" of

stitutional." The item

announces

system.

./ Y-V' J.-

The bulletin comments that this

the

breakup, of .utility

companies

holding
tribution

will

decision

Court

Supreme

the

and

the

dis¬

of their

owners

stocks
of *' cash
and
valuable
underlying
operating;
company securities. The indicated'
value of these distributions is in
preferred

most cases

substantially above the

because they offer broad; present market price of the pre¬
diversification
of* investments ferred stocks in question.? •

purpose
under

constant

supervision

and5

continuity of income.

Distributors Group, Incorporated

<53 Wall

Street"

•

New York 5, N. Y.

-irm~r-i r ii- nrcrrr*

One

r>r,r~«'ijyr'

of the

Nathaniel

_...

repeal

profits taxes. Chemical

excess

companies
were

of these is the

most

are among

severely

those which
affected by

Vice-President

which

Union!

Stone

Chadwick,

and" Chairman

the Investment Committee of Na¬
tional

investment

Lord, Abbe

Abstracts;

Securities

Corp., comments

Research

the

causes

Merrio- on

hampering effect of the OPA
bulked large to be more conser¬
vative in dividend payments.
-

* contrast,

in-

March

the re¬
light goods maiiu^
well from art earn¬

in some

1946, to the Genera
Prospectus on series K-2:
nk
ttitfutoB Gfdiiji—New folder on
Uroiip Securities' Industrial Ma
chinery
Shades;
an
Industrial
.

considerable

ing dividends after a
lapse of time.

Machinery News entitled: "Profit*
Expected to increase This Year»

reached is that

The condusion

endori

dhted April 1,

resumed, pay¬

cases-

Portfolio

; Keysw

—
Current- Data folder w
April covering all Keystone Cus
todian
Funds; new Supplement

ings standpoint that marty Of them
have
increased their
dividends
and

31/H946/.

Co*

their retail outlets

and

Incorporated Investor*

for tnp three-month period

continues

certain

port,

"With

production activity nOw re¬
sumed, barring a prolonged coal

Selfedted investments

Current isstld

of:"Tttese

Seemed' Important."
Hare's
given to restoration, of div¬
Ltd.-—Supplemental
Data
sheet
temporarily deferred or dated* Marbh
20/ 1946 to revised
reduced. It seems logical that' the
Prospectus" of' institutional Se¬
stocks of companies in the Heavier
curities, Ltd: dated' June 15, 1945.
that

industries

have

most

been

months

restrained in the past few

Dividends

should discount their greater pos¬

sibilities to

panies

those

CaMh Btillflck summarizes the
features

of Dividend^ Shades ih

entitled'

leaflet'

new

Low

Priced,
High
Grade,
Dividend
Paying Security." J Of particular
Interest is the record achieved by

the

In* the

same

Industrial

Dow-Jones'

with

rose

securities

their

Change

cost

owned

Ltd.

own

the

Cleveland

was

the

National

New York;

Shares,

Ltd.

manager

City
r^Tf;--*j

Mir'"1

Staff

PA.—H.

PHILADELPHIA,
&

iCuch

•announce

Com¬

and

Building,

Joseph

Schwartz

that

Raymond W. Lawn,

recently

released from active service
armed

Fund

Literature

[ Kuch,

Hugh W. Long & Co.—Portfolio

Prospectus upon request from
your investment dealer or

holdings
Bond

folder

Fund

Calvin

NATIONAL SECURITIES &

dated

April

—

their

Birkins

Dividend Shares1.

issue

Notes; 'Current Information fold¬

New York 5, N. Y.

topfcjfl ln Sees.

DUMONT, N. J —George Gallo¬
way Birkins will engage in a se"curities business from offices at
;

National

120 BROADWAY

for

organization.

Memorandum

National Securities & Research

Corp.—Latest

Aoril; memo showing port-

315 East Madison Avenue.
,1 ■'.•

\unfut,

LJ.

SHARES OF CAPITAL STOCK OF

one

INVESTORS SiEEdflVE

F una s

■

FUND/INC.

be obtained

Prospectus

Congress Street, Boston 9, Mass.

* 7

requeit from Principal-Underwriter

■

be obtained from
R. E.

local investment dealer, of''
*

Keystone Company

of Boston
50

may

your

The

Prospectus

local investment dealer

MacgregoV; President..

Minneapolis, Minnesota

THE

PARKER

CORPORATION

ONE COURT STREET. BOSTON 8, MASS.

^^REPRESENTATIVES IN THE PRINCIPA1 CITIES OF THE UNITED STATES
l,.v.

associated with

now

Manhattan

Bullock

for Salesmen

RESEARCH CORPORATION

may

in the

Leonard

and

forces,
are

Widener

Co.,

York 6.
Mutual

■

'—

mencing April 1, 1946 its new aa3r§ss is 19" Rector Street, New

Priced at Market

your

for

Company

Of
to

name

investment

past he was with Gertler,
& Co;, Westheimer & Co.

and

tlie

announced

Street'

Devlet

Kurh Adds

has

April 22,

Wall

formerly with A. C. Allyn &
Hemphill; Noyes & Co. in
Irtdtanapolis and was with Paine.
Webber & Co., in Cincinnati.
In

ex¬

by $4,876,990.

was

Name

Co. and

ceeded

Exchange

Campbell &

firm in New York. Mr. Bollinger

from $19.94 to $21.74. At the
of

offices-

he conducted his

end of the six months the market
value

Bollinger, the Exchange member,
William
T.
Campbell,
general
partners, and; Dorothy J. Luck
and1 Mary E. Campbell, limited
partners; Mr. Campbell was form¬
erly with Francis I. du Pont & Co.
where he specialized in transpor¬
tation securities, and prior thereto

period the
Averages

43.52%.

•rose

of' Thomas

New York City. Partners will be
Thomas G. Campbell, E. Edward

securities; increased

sale

The New York Stock

Co. will be formed

the war period.
From Aug. 31, 1939 to Dec; 31,
1945, Dividend Shares pet shafe
"net asset value, after payment of
25 quarterly dividends including
that portion paid out' of profits on
55.75%.

■

firm

this Fund during

Institutional

record

Dividend- Shares

change in the corporate
nstitutional
Securities,

««•

1; 1946 tb4 stockholders
April 15:

May

targe

shown

already

SKareS, Ixic.—A divi¬
20" per share, payable

dend. of

com¬

the lighter, industries

have

that

Dividend

marked degree

a more

stocks

the

than

Hare's

INCOME SERIES

Prospectus

Thine*

idends

from

Com

Summary folder on fii
panies ih industries where the Lord, Abbett sponsored funds fY
problems of labor unrest and the [April* V; .7. The Parker Corn 1
posit?

pected to participate in these
Keystone Series K-l
developments is indicated by the
Long-Term Growth
The
Semi-Annual; Report for
fact that its portfolio contains ten
Distributors Group, in a new
six months ended Feb. 28/ 1946
issues, representing 42.6% of its;
folder
on
Group
Securities'
on
Keystdije's Income Preferred
"invested
assets,
which
are
exr
Chemical
Shares,
outlines:. the
Stock Fund- K-l shows an in¬
pected to be favorably affected by
favorable factors existing in the
crease in total net assets during
this decision.
chemical
industry
today
and
the
period from $20,653,303 to
stresses two important
develop¬ Current Dividend Irregularities
$24,207,561. Asset value per share
The first

L
Series

degree

Preferred Stock Fund may be ex-,

ments.

from

shares,

-Current issue of

Chetnical Stocks for

A PROSPECTUS ON REQUEST FROM"
YOUR INVESTMENT DEALER OR

The

received

company

ment

hasten

tions

strike/early consideration should

Breakup

1946

during March; a work
sheet, for, allocation of distribu¬

,V2

of com¬

natural for managements

attractive at

plan with any amount
the ruling of the Supreme Court
capital—large or small—and at
to uphold the "death sentence"
the same time obtain the profes¬
of the Public Utility
sional services of a large research provision
Holding Company Act of 1935,
organization in the selection and
compelling
interstate
gas
and
supervision of investments."
electric corporations to limit their
Tax Facts
activities to a single, integrated
investment

Wick

Thursday,- April U,

fphOj funds
Changes- of • National-soon
sored

Tim¬

defer¬
Chadpointed out that it- was only

export market for the
American c h e m i c a 1 industry.
Prior to the Outbreak of World
War
IIv the German chemical
New Service
trust
dominated practically
all
With the April 1 issue of The New York Letter, Hugh W. Long foreign markets. Because of the
& Co. initiates a new service to dealers. In addition to listing the in¬ intimate connection between the
dustries considered most attractive for current1 investment the Letter manufacture of pharmaceuticals,
-will also rate each of the other industries represented by the various
dyes; and explosives, the Allied
series of New York-Stocks.
Powers are certain to pronibit any
Industries will be rated on the basis of "relative profit possibili¬ revival of German chemical activ¬
potential

in—the

April 4 issue pf Investment,

most

are

irregularities

dividend*

profits: taX and there¬
benefited by its

excess

fore

•;

CHI?C?NieiiB

THfi CQMMERCI/Ui

1942

"./.Y'r'"

v*-srawywnwer;—li:r"

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

163

insurer and
hand

surance

scope, and provided an
(Continued from page 1929)
elaborate scheme of payments to
large amounts to- the Unemploy- {
merit Fund and the other state in?- coyer all risks to which human

beings,- in the ordinary

durance undertakings t<* inaini&in,

From'the

necessary.
the

these

case

than estimates which have due re¬

surance

of gard1 tq observed tendencies and
expected developments, and; it is

course

required benefit payments. events, are subjected.
All this was in addition, to the re¬
The New Plan
lief ''dole," which was a govern¬
It was to be expected that when
ment payment made to those who;
the Labor Government came into
rould make no claim on the in¬
surance funds.
The indebtedness; power, it would seek to put the
Beveridge Scheme into force. A
to the Treasury of the Unemploy¬
new National Insurance Bill was
ment Insurance. Fund alone in¬
introduced
into
Parliament
in
creased steadily from 1924 until
accom¬
1932 and accumulated to a sum; February of this year,
the

panied by two White Papers, one
£115,000,000.~
summarizing the main provisions
Despite the efforts of the Ram-, of
the scheme and the other con¬
sey MacDonald, cabinet to supports
stituting a report by the Govern¬
the system, if was recognized that,
ment

must be

reserve

meet

adverse

scheme based upon it can

safely carried out without

vision for

pro¬

possible swing of the
pendulum away from, expectet
results, however well they may be
calculated on the basis of pre-

unlikely that they will be fully
borne out by actual experience.
It should be added further that

scheme and' the income from con-;
Some
such
arrangement
ap¬
tributions are left to be dealt with parently is contemplated in tht

by regulations,

the

British industry,' unrelated to'
degree of unemployment in

plants

fered to any

The

and; IntoJtt

one-third to

people anywhere."
of

range

benefits

in return for a contribu¬
prevented' a ; readjustment
of tion by the worker of a little less
wages and labor costs, with the
than one dollar a week (at pres¬
result that ft stood in the way of
ent
sterling-dollar e x c h a n g e
recovery and actually
increased!
rates), according to Michael L.
the amount of unemployment. In;
Hoffman, a correspondent of the
addition, it was pointed out that,
New York "Times," is as follows:
as
an
element in the increased

given

of the cost is to

than one-half

ernment funds and that the

tributions

ployers

■

are

and

em¬

expenditure

vary

sub¬

stantially with cnanges in eco¬
nomic conditions, it can be said
that

the

about to

British
assume

taxpayers

for
Accordingly, a
new Act, known as the Economy
Act, was passed in 1931, which
decreased the burdens on indus¬

which the nation is dependent
its economic

"Benefit

Benefit '

Sickness

the war, was not

oblivious, of the
gaining ground
among the British population. The
Labor Party, which participated
in the Government, never aban¬
doned its policy of Socialism, and
used " itsresurrected ' political
power to enforce this policy on
Socialistic

trends

after 65 if
working; after

Payable
not

even

working.

Supplement to above
For wife___

$2.23

For first

Child

1.52

Widow's allow¬

13 weeks.

7.25

ance

-Widow's

13 weeks for woman

pen-

sion

But

Government, de¬
spite its difficulties in carrying on

days,' after 156

contributions.

gainfully employed.

5.25-

These

Beveridge Report

180

5.25

small

The Churchill

Indefinite, 'after 155

5.25

Retirement ___!

that

benefits

here

seem

in the

should

relatively

United

mind

borne

States.

in
Britain, that the workers' contri¬
bution compared to those in our
States is less, and that productiv¬
ity of the British worker meas¬
ured by his. output to his em¬
ployer, is also substantially in¬
wages

are

£271

•

much

lower

ment

millions

thereafter

actuary that the costs wil

1948

1968

and

£ 284

iheef

taxpayers be

this

accumulating

themselves, as well as to the abil¬
ity of Great Britain as a whole to
maintain

and

improve her eco¬
Looking back over
the past two decades, there is
nothing to indicate that under
present trends Britain will be able

£302

decreasing
millions

British

' To
answer
this
we
must look to the British workers

benefits

the

liability?

benefits and assis¬

expenditure

millions' in

It is recognized by the Govern¬

Conditions.

able

ment pensions remains fairly con¬
stant in the period, rising from

art

$5.25

Unemployment

and

■actuarial basis..

contributions.

life.

increased the workers'
contributions,, and relieved the
Treasury of the drains caused by
covering the deficits in the insur¬
ance funds.
Through this legisla¬
tion, the Unemployment Insur¬
ance Fund was placed on a sound
try,

Weekly

Will

and assistance apart from retire¬

heavy liabilities

under the scheme.*

Duration and

Type of

"The

production of goods, it
hampered the export trade , on
cost

How the Burden Can Be Met

tance in 1948 and. 58% in 1978,

that

is
made for
monthly
payments at the outset because, at
present, it is not possible to fix
the
appointed
days with cer¬
tainty."

share represents 34% of the total

workers

likely to

millions

1 After

Provision

cluding assistance, the exchequer's

com

£60

1954-55.

time the yearly payments are to
be as determined by Parliament.

millions (or 56% of the total) ; in¬

from Gov¬

come

until

reached

observations
and
although 'thh bulk of the proposals .vious
expe¬
of the hew National Insurance riences, It is for this reason that
schemh arb specified in the $royi* .insurance companies are requiret
sions of the Bill a variety of mat¬ to put up capital as a guarantee
ters'affecting the cost of the fund to policy holders.

In such circum¬ Report of the Government Actu¬
stances there "is necessarily an ele¬ ary, which accompanied the Bill.
ment Of uncertainty in the finan-:; In this connection, he stated:
"It; is apparent that the tota1
Actuary on the financial; rial estimates, though doubtless'
this drain could not be continued.
factor " is
of " minor
provisions of the Bill.
In pre¬ this
im-; annual charge on the exchequer
Accordingly, steps were taken to
will increase for a considerable
senting the measure to the House portanc'e."
reduce the- -scale of the .benefits,;
of
Commons,' James ' Griffiths,
.period after the commencement of
# n d
parliamentary committees Minister of National
The Financial Aspects
the full scheme.
Economy,
were appointed to study the re¬
lauded the Beveridge Report as
Will the scheme place an un¬
"Taking insurance benefits
vamping of the whole social se¬ "one of the
bearable; burden on the British alone, the exchequer's share, of
greatest documents in
curity scheme. It was recognized,
British history," and said the plan Exchequer?
Obviously, this ques¬ expenditure rises in the 30 years
moreover,, that the insurahce sys-j
it
proposed - is "the "best
and tion cannot be answered now. But from £118 millions (or 26% of
tem involved a burdensome tax:
in view of the estimate that from the
cheapest insurance policy ever of¬
total) at the outset to £416
on

millions

conditions

when they occur.£
<
The mathematical law of proba¬
bility does not mean that any in¬

nature „of

can

1943

nomic status.

to maintain her former
cial

and

financial

commer¬

supremacy.

The growth of British capital has

been hampered and retarded, .pri¬
vate initiative has been stifled;

unreplaced obsolescence has in¬
creased,- and. industrial, produc¬
tivity, measured: by the progress
inade by other nations along these
lines, has declined.
If these ad¬
trends

verse

are

reversed,

the British worker must increase
rather

than restrict his output;
private enterprise must be en¬
couraged and not "nationalized";

and

burdensome

taxation

re¬

moved, so that wealth and skill
applied to capital investment in
the most profitable fields may be
allowed to grow without bureau¬
cratic

and

Unless

these

socialistic

controls.

developments take
place, this whole grandiose and
and that
humane scheme, in itself very
become heavier as the ages oi employers
follows a similar
course.
beneficiaries advance. It is there¬
Thus, it would appear commendable, will not work out
and the Labor Party will have
fore quite possible that during the that the steeply rising trend of
bitten off more than it can chew.
the charge placed upon the tax¬
next five years or so, unless i
severe
depression
develops
in payer by the provisions of the
Redeem Argentine Bonds
England (as it did -after the first Bill-is determined almost entirely
World War) that the scheme may by the expenditure on retirement
Holders of Argentine Republic
be largely self-supporting. It may pensions, which after increasing, Sinking Fund External Conver¬
will mature gradually over a very sion Loan
even indicate a surplus, if pros¬
41/2% Bonds, due Nov.
1978; the income from the contri¬
butions- of insured persons and

increase with the

passing of years
benefit payments will

perity conditions prevail over a long perio'd.
"In order that the balance of
long period.
Certainly, employ¬
ment conditions in Great Britain expenditure to be met by the ex¬
at present cannot be said to be chequer
in respect of benefits
stabilized any more than they are under the Bill may not fluctuate
in the United States and the per¬ widely from year to year, and to
centage of unemployment now provide for a regular progression
may
be far below the normal in the annual charge, the Bill
level.
provides that the payments by the
But any scheme of insurance, to exchequer, apart from contribu¬
.

ferior.

be
actuarially sound, must be
Yet, though these benefits seem based on what might be called
rather meager, the workers' pay-' "average
conditions." - In other

15, 1971 are being notified that
$208,500 principal amount of the
bonds

have

been

drawn

for

re¬

demption on May 15, 1946, out of
moneys in the sinking fund. Upon
presentation and surrender on the
"redemption date at the office of
J. P. Morgan & Co.

Incorporated,
principal
;office of The National City Bank
tions under the First Schedule to of New York, or at the principal
the

Bill, shall be

"New

£3 millions a office

York,

the

of The First National Bank

payment Will be made
of- the principal amount of the
words, account must be taken oi ing 31st March, 1949, £40 millions
in
the
financial
year
1949-50, bonds. Interest on the drawn bonds
with
this
movement,
Arthur paratively light. Apparently, it is ..both good and bad situations that
thereafter increasing yearly by* £4 will cease on the redemption date.
Greenwood, who was in the Brit-, not expected that they are aetu- may be required to be met by the
ish Cabinet
"without, portfolio,", arily adjusted to cover all the
-on
June 10, 1941, announced in costs involved in every phase of
the House of Commons that he the whole scheme. Thus,-the Brit¬
had arranged with all the Depart¬ ish Government Actuary remarks:;
This advertisement is not, and is under no circumstances to be construed as an offering of these
the British

ments

Government.

concerned

for

In line

compre¬

ment to obtain them

"It

should

are

also

mind

borne

securities

hensive survey of existing schemes
of
social
insurance
and
allied

that, apart from the fact that the
rates of benefits proposed under
services which would be consid¬ the Bill are substantially higher
ered in due course by the Com-, than are payable under the exist¬
mittee on Reconstruction Prob¬ ing schemes, the numbers of ben¬
lems, of which he was Chairman;, eficiaries from the outset under
and

that

for sale

of Boston,

solicitation of an offer to buy any of such securities.

offering is made only by the Prospectus.

200,000 Shares

his

ments of the National

Schemes

initial period, end¬

A NEW ISSUE

William

Sir

accepted

or as a

The

Beveridge the proposals of the Bill will be
invitation to; greater than those covered by the
conduct the survey, taking info existing system; for example, the
account representations received' wives under age 60 (if not gain¬
from responsible organizations fully occupied) of retired pension¬
and persons connected with the ers and the
dependents of persons
problems
involved.
About
six drawing sickness benefit will now
months later (on Jan. 27, 1942)
attract benefits or allowances.
Mr.
Greenwood
announced
to
"In
aggregate
the
services
Parliament that it would be with¬
brought within provisions of the
in the power of the Beveridge
Bill, including assistance, will cost
'Committee "to "consider develop¬ about £ 509
millions, or 42% more
had

com¬

month for

Insurance

of adding
death benefits and any other risks
which are at present not covered
by such schemes."
the

way

On Nov. 20, 1942, Mr. Bever¬
idge submitted his report. It was,
a
way, a personal report, for
although Mr. Beveridge acknowl¬

edged the aid of members of his

committee, he stated that he alone
Was

responsible for
mendations made.

the

recom¬

As might be expected, the Bev¬

eridge Report was widely ac¬
claimed. Mr. Churchill told Par¬
liament that he

was

r§° along with it to

prepared to

considerable

'degree. Naturally, the Labor Party
members were for it, since it
greatly amplified the social in¬

than the
der

the

Common Stock
($1 Par Value)

Price $4,375

comparable services un¬
existing
contributory

Per Share

schemes (with assistance). Owing

partly to the operation of the
qualifying periods for unemploy¬
ment and sickness benefits and
.

the case of new
entrants, and partly to transi¬
tional
conditions
limiting
the
scope of the benefits, the cost at
the outset under the provisions of
the Bill will be materially smaller
than if benefits had been payable
in full from the beginning."
for death grant in

And he adds further:,

Copies of the Prospectus may
f

S. R.

•

....

be obtained only from such of the undersigned as are

registered dealers in securities in this State.

Livingstone & Co.

•

Courts & Co.

Straus & Blosser
!.%;)'

"For the evaluation of

April 9, 1946

Mercier, McDowell & Dolphyn

Buckley Brothers
J?'"

■

the con¬
tributions to be charged under the
provisions of the Bill and the cal¬
culation of the emerging expendi¬
ture over a long series of years
certain
assumptions have been

f! •&

V-

Thursday, April

FINANCIAL CHRONICLE

THE COMMERCIAL &

1944

gotiators of

The quest is for the
develop
of a process—for
the buildfm?
of collective

agreements could have
Such questions still

been set up.

attention of labor and of

need the

phasis has properly been placed
upon the right of employees to

imately 10% of all organizable
employes were members of labor
unions.
Employes had to effect
their organization before collec¬
tive bargaining could be under¬
taken.
Since 1937, the history of
the labor movement has mainly

strike and upon

been

(Continued from page 1931)
lems of this generation concerns
the development of collective bar¬

gaining

effective substitute

as an

for industrial warfare.

Great

em¬

the right of em¬

ployers to close down their plants
as a way of resolving
industrial
disputes. These rights are funda¬
mental to our concept of the way
in which men' should live' and
work

together. Much too little is
said and written, however, about
the
concomitant
obligations of
both labor and management con¬
to make resort

force

and

rare

to,

unusual

would become an effective

process

industrial warfare.

substitute for

Heavy responsibilities have been
assigned to labor and industry to
work out their mutual problems
by negotiation, understanding and
compromises.

assignment to labor and to
industry of the formidable task of

assigned to

The

There

the

bargaining
significant.
that

collective

appraised as
it surprising
bargaining atti¬

be
Nor is

can

collective

tudes

successes

and

techniques are imma¬
ture in many industries where the
issue of the right of employes to
organize and to have representa¬
tives of their own choosing has
been but recently resolved. Strug¬

labor

postwar years. The country looked

policy as a constructive
force for preserving fundamental
private rights and contributing to
the goals of economic progress.
Difficulties of Collective
'

••

far

Bargaining

Labor

National

the

Relations Act is concerned, collec¬
tive bargaining is apparently con¬
ceived as a self-effectuating proc¬
ess.

Labor

and

management are

expected to evolve its procedures
and techniques as well as to de¬

solving labor disputes than
agreement
of the parties

course

policy for the

voluntarily to
strike and of
lockout and to provide for some
machinery at the national level to
resolve labor disputes without in¬
terruptions to production and em¬
ployment. , The answer: of that
conference to
the country was
that collective bargaining free of
government participation is the
the

conferees

restrict the rights of

proper
substitute
warfare.
Many

the

that

cluded

disagreements about the subjects

tion

for

industrial

observers

con¬

conference

to be taken up

ment

the

before

was

V-J

of labor relations since

Recent events make it very
clear that the basic job ahead in
labor relations is to develop the
Day.

agreement-making process to the
fullest possible extent.
The ef¬
forts of the Government and the
programs of - labor and industry
should be oriented to this funda¬

mental

principle. This is no mere
ideological concept.
Some recent

failures

collective

such

been of

have

bargaining

vital

concern

Government

the

role

hammered out. There

conduct of labor relations.

are

person¬

problems,
too.
Individuals
newly charged by the employes or
by management with collective
bargaining
responsibilities
are
sometimes
inexperienced
and
have widely differing concepts of

The

the

failure

bargaining rather
ernment

conduct

account for the

necessities of organizations still free .collective
spill over into the bargaining con¬ be consciously

the United States.

ferences and

should

economic

directed.

The

Gov¬

labor

rela¬

than
of

rights

tions, but in the lack of attention
to the >ways and means by which

bargaining

breaks

warfare

the

with

National

tions program. These and similar
characteristics of the present state

downs?

of collective

can

ordering

which

Labor

Relations

Act

afforded

protection from
employer interference with the
efforts of employes
toiefffei sfcllorganization for collective bar¬
gaining.
When the so-called Wagner Act
was

passed,

no more

than

approx¬

to accept

some

not ready fully

collective bargaining

bargaining

that

mean

$npi£-sized 3°h Was assigned to
organized labor and management
when they were given the respon¬
sibility for effectuating the next
step of the national labor policy.
a,

without

recourse

Under

what

plant

shut¬

conditions

voluntary arbitration be used
new agreements? Su6h
questions, and many more like
them, might well have been con¬
sidered
at the
conference, and
practices for the guidance of ne-

securing

rials

offer to sell

solicitation of

nor a

offer to

der to institute Government oper¬
ation as a necessary precedent to

the

There

Government

work

men

even

for

Government,

fundamental ques¬
Where seizure

cases

were

which

set up

were

re¬

fact-finding
by the Gov¬

Their recommendations

to the terms upon which a la¬

bor

dispute should be settled have
compulsory

arbi¬

tration in actual practice.

Develop Collective Bargaining,
Not Compulsory Arbitration
failures

collective

port' the conclusion that "the
bor

problem"

can

solved

la¬

con¬

■

we are

reg¬

tern.

stop¬

have crip¬
the community
Development of collective

pling effects
(3)

can

upon

bargaining along sound economic
principles which contribute to the
attainment of the economic
goals
of full employment and of a
plen¬
tiful supply of consumer
goods.
Comments upon a program of
this sort which emphasizes
volun¬

tary action
use

are

certain to include

of the words

"creation

"idealistic" and

though

even
so

Plato

convincingly that

the product of per¬
The three fundamentals

suasion."
are

actually an expression ex¬
tremely pragmatic in nature if we
really mean what we say about
the strength of
democracy and our
goals of economic progress. It is

highly
labor
upon

embrace

based

program

government regulation or to

think
the

unrealistic
relations
that

economic

country

progress for

whole is

unre¬

lated to the terms of labor agree¬
ments.

Conscious

Development
of the
Agreement-making
Potenti¬
alities of Collective Bargain-

ing.
...

employes to organize and bar¬
gain collectively safeguards com¬
merce

...

by encouraging

prac¬

tices fundamental to the friendly

ready dras¬

itive steps to increase the econom¬
ic

of employes not as an
in itself but to make it pos¬

power

end

sible for collective bargaining to
become a substitute for industrial
strife.
The national labor pro¬
gram would be

a failure, for ex¬
ample, if the economic power of
the employes were exercised pri¬
marily to create disagreement,

chaos and confusion

step in

It
of
employers turned out to be the
securing

political

objectives.

would also fail if the program

avoidance of agreement as a means
of

undermining the union.
The
privileges of democracy, more¬
over, are always subject to abuse.
Consummation of the national
labor policy depends upon the ac¬

ceptance by labor and industry
the

responsibility for developing

the agreement^making potentiali¬
ties of collective bargaining. The

Such procedures may fit in

in the matter. It is not timely now
to discuss-the nature-ofi negotia¬

they don't tions leading to agre^ent. It is
fit in at all with the Way of life appropriate now to point out that
which most of us cherishvr.
■
f successful
collective
bargaining
•

The quest for a; basis oi souad

I
;4""Ay.„..........

;

of production

re¬

economic

particularly where

pages

be¬

tically to limit the rights of labor
and of industry by
making plant Government policy should be to
seizures and compulsory arbitral assist such
efforts since the na¬
tion an integral
of: our sys-1 tion as a whole has a vital stake
with the plans-of the extfemfclef*
or of the extreme
right;

■■

."
Acting upon that premise,
the Federal Government took pos¬

the

involved, there

ulation unless

■

industry

use

adjustment of industrial disputes

Government supervision and

within such State«

the

more¬

risk,

raised.

are

not

gone

duct of industrial relations under

•'

Working

will not return to

always the

that

over,

has

strike-breaking business.

legislation which brings the

-f"' *■*

stricting

and

bargaining highlight the need for
developing the agreement-making
potentialities.
They do not sup¬

the

that protection by law of the right

can

operations.
Already
the
charge has been raised by labor

Recent

labor

force,

token

assurance

procedures

approximated

bargaining.

voluntary agreements

always

that such

boards

be confined to token seizures and

There is

ernment.

'■

The Rational Labor Relations
Act states: "Experience has proved

cent

Price 102% and accrued interest

development

Attention

(2)

striking employes back
of wartime

penalties.

was

$10,000,000 23A% Debentures due April 1,1966

Conscious

agreement7making potentiali¬

ties of collective

work under threat

tions

United Biscuit Company of America

months, plants and entire
industries have been seized in or¬

and then
NEW ISSUE

recent

into the

buy securities. The offering is made only by the Prospectus.

thrown into idleness.

are

that

This announcement is neither

nation

operations of public
utilities are brought to a standstill
or
when entire mass production
industries providing basic mate¬

the basis of their industrial rela¬

are

still

right of

the

ample,

employers who

are

interfere

carry on
activities essential for
working and for living. The Gov¬
ernment is under a strong com¬
pulsion to intervene when, for ex¬

substantially resolved until
1937 when the Supreme Court up¬
held the constitutionality of the

not

there

(1)
the

long ago said

transcendent

community

could
developed more
adequately to fulfill its functions.
What are the obligations of the
parties in negotiation?
How can
industry-wide issues be resolved

was

progress in the quest for industrial
peace.
They are:

agreement-

out

velopment which offer the great"
est
possibilities
for
long-time

"unrealistic,"

when

restricted

are

threi

nevertheless

can

mat

would direct attention to
the
most fundamental areas
for

tween

These

mass

discussing these

ters, important though they

and restrict the personal

making fails and when industrial

labor-man¬

agement conference, in my judg¬
ment, was not in the fundamental
decision to depend upon collective

history of the labor movement in

power

the

Without

out

the

conference

the limiting of
certain
picketing practices.

to the community at large that the
Government has had to intervene

labor-manage¬

in labor-manage¬
ment negotiations are still being

the uses to which their

The issue

to work out a labor

bargaining

collective

making

gles between employers and em¬
ployes over this basic principle

major part of the

been
it.
Strong repress
tations have been made
lately
the passage of other
types of laws
which are claimed to
be
essenfel

better way of re¬

rights of
Events may
velop its constructive possibilities. therefore a failure.
the parties to a labor dispute.
There is a lack of experience to prove, however, that a sound pol¬
Preservation
of
the
employe's
guide them in their task and many icy for the long run was evolved,
right to strike is important in a
obstacles in the way of its per¬ for there are strong reasons in
society which believes that no
formance.
There is no generally support of the decision that was
man
should be required against
The National Labor Program
recognized definition of collective made. The availability of a Gov¬
his will to work for the profit and
The
national
labor
program bargaining and few commonly ac¬ ernment board with the power to
benefit of others. Retention of the
based upon the right of employes cepted concepts.
Procedures and settle labor disputes makes it dif¬
employer's right to close down his
to organize and upon the accept¬ practices necessarily vary greatly ficult for the parties to settle is¬
plant is also important in a nation
from
ance of collective bargaining has
industry to industry and sues themselves and centralizes which believes in the
private
been in effect only for about a from plant to plant and can only control over
labor relations in
ownership and direction of in¬
decade.
Its normal development be developed over a period of Washington.
This was shown by
dustry.
was
impeded, moreover, by war time. The scope and objectives of the experience of the National
necessities.
From that perspec¬ collective bargaining as well as War Labor Board. A major ques¬
When Government Interferes
tive

mine the soundness of the national

occur¬

The adoption ,0f jCpllectiyi
bargaining as the Cornerstone; x>
the >, national
labor '' policy - was
based upon the premise that this

capable of diseha™specific functions which have

veloping collective' bargaining it¬
self, and the results will deter¬

a story of the organization of
employes for collective bargain¬
ing.
Now comes the task of de¬

rence.

bargaining

stitution

industry in order that the process
of collective bargaining will be
facilitated.

by
and
work in the national interest is
probably no more unsatisfactory for the development of collective
not solely a matter of implication
along
way
of
resolving
them than bargaining
construe ve
from the Wagner Act.
It may be through governmental machinery lines A demand for
"equality be!
said that they voluntarily accepted
fore the law" has
established contrary to the will of
become an™
the
assignment.
In November, the parties at interest. This con¬ gram of many
industrialists and
1945, President Truman convened clusion has been verified by the there are strong
representations
a
labor-management conference
for

sciously to develop their relations
so

Bargaining Free
Government Interference

Collective

li, i946

it"?}

<t.

industrial
law

for

!relationships^^^variabIy been
for feme based upon genuine recognition
soh^IermUia^iliis^Gt "b^nSanagement of ^e^eihptoyees

* ipeace 4s not:

'ricflif" t/v-iiavi**«»

a^^Cfrih|nddstMal%Ia4

anci

THE COMMERCIAL & FINANCIAL CHRONICLE

163 i, Number 4480

Volume

understood, it has genpossible to undertake
negotiations on a factual basis for
the purpose of solving problems
been

h!lVe

'*iiy

been

eral

Government should provide
arbitration boards to which part¬
ies could: turn at their discretion

tiori.

for

right to stop production
immediately against the

reacts
public

years to come.

inter¬

flow of national income

just winning argu¬
In the labor battles which

than

vather

ments.

going on, the conflict
0f interests between the employee
and his employer has come very
much to the fore. It is now urgent
to
emphasize the vast, area of
common
interests:: which r they
Share in keeping their establish¬
been

have

1945

competitive and • efficient.
that depends: the success of
enterprise- and the continuity
of employment;
Collective -bar¬
gaining : is much more - than -giving
♦'the lion's «hare to the -lion .'? :
A constructive first Step toward
m a k i n g« eoliectiven^ bargaining
work could- be,
mutuaL • agree¬
ment between labor.- and- industry
ment

Upon
the

the carrying out of any vol¬
untary arbitration agreement they

make.

may

The

personnel

and
board should

the policies of such a
be
made as attractive

sides

significance

to the relation of this process

to the supreme economic

those industries, an exercise of the

public

and

both

utility

calls for

vention.
dilemma

is possible.
The avail¬
of such. machinery could
of inestimable value in

industries.

Government

can

may

well be that this

best be

resolved

in the railroad

industry by
prove
the creation of machinery to make
making it possible for disputants strikes or lockouts virtually un¬
to;-; choose peaceful methods in¬ necessary. The
legislation) cover¬
stead, of industrial. warfare, as the
ing labor disputes in railroad in-r
way of settling their differences. dustry,
which
has. effectively
There is also a place for Gov¬ avoided widespread labor disturb¬
ernment fact-finding boards in a ances,, was based upon principles
Government labor, policy designed and recommendations worked out
to .support collective^ bargaining. by the. parties.. It was mot' an im¬
Thevpublic has a right: to expect posed method
labor, and industry to use every trial;relations,
it .works because,
reasonable effort, to resolve their the .parties want it to work;;:
differehees-^without >Risrupting * the
life pfif heicon^mi^
be eases, , hwever, where - phe/or
the pother .party • to a:,labor; dispute
n$.i^

cantiiuiedre^istenco) of
unions ;a ad, managernrent-ahd'.upon
theubasie principle^whiehL^shottld feels>compell^^
tiaj' to the

ability

They do have

to the dilemma of labor relations

was

problem
generation—the avoidance

our

unemployment in
Regularizing

mass

and

ployment

leveling

comitant goals to

the
em¬

the

out

con¬

are

which our best

energies should be directed.

practical matter, the attainment
of these obj ectives is closely re¬
lated to the production and disr
tribution of consumer goods on a
larger scale than ever before. Col¬
lective bargaining. has an import
tant role to play in that drive for

economic progress.

proach may avoid work stoppages.
It does not contribute to the at¬
tainment* of high-level prosperity,
however; since the checks and
balances to such collective bar¬

gaining. are costly c;

Employees

may, secure high wages, at which
not to work if high; prices; drive
consumers to refrain from making

purchasesor to usey; substitute
products," Employers may be able
to /drive/wages down but fail to
hire/or; retain competent employ ees yand>-eveni fail to securq; the

most^pn^uctive'efforts^qf the em?

Collective bargaining ,is; not aiv b arg a i n in g /responsibilities in?
easy process in which to engage volves much more than charging
When such objectives are set ,up
for it.
There are still persons on; moment: based upon^ a cold apt*
< of V c ur.T emt
economic,
either side; of the table,; moreover

Who would prefer, to
.

avoid* sucb
assignment;*to/ coUecbve bargain-:
«/v-\flotorwinoiiAn

issue;f >This

is .my

jnearis^ the^i general. rule.;;* r.Even .tatiyes to <work; with management

today,: when, free colleetive bar^ *in'«exercising*business:vjudgmenL^^
"gaining has,not s. been: fullyKiTeV, Efficient;* management will genr:,
Shmed. Because of Government
Regulations necessary: to the fight' h^^ihtonsive;study^^ of^; p seriqs
ofvrelated da^a^ Efficient collec^
fgaihst/ri
dive bargainings r^uires: the samp •
put" recourse, either .to.;industrial approach.: . Caii^thpre be any doubt
collective ^ bargaining
op
Warfare; or to the; Government: that
These / successes
should: not be Wages; should; be based,, as far. as
mj^iihiz^Lat artime whehJtheif#!^ possible, upon the facts of past
operations if r;informed decisions
hfes .;of. collective bargaining:.
devoted to the deyisihg. of. ma.^ the basic: industries or in bottle- are to be made?- Is, it too idealistic,
industries
understandably to seek a factual approach to col¬
chinery which makes it" uprjeces-i
;
sary to resort to economic force.
given the deepest sort of lective i bargaining?
v:
Attention should be ; directed, concern.
When.: ^management
/;
contends,
therefore, to the conditions under J The real development. of col¬ and it /frequently doaS; contend,
which labor and management can lective bargaining as. an instru¬ that collective bargaining is not

govefh; their.* relatibnsr.:rVThere;*i^ right;tt^fesottvytorr/economicforce cbtnii^yjj^ab. bfiris,. td pr]c^ide for
peaceful; methods/of; settling' urna needfbrat Nation^ jG^arterisimh' ^Hh^vidteatedetermi
^espiyhd:. issues, which ..rarlke
as that which: admoSt fCame to fruir
tion a little more:than : ai yeaf ago ^^opiuid^:a- ,t\veejft? thehi; ^Suchf,^
hody to which each-side could re
under " the f
.^ot
Johnston,'
portforthepubljc%hy; im
States vChamber:.,of; ^Commerce; ment, sral stoppage - of ^production
pvershacjow 'their - ultimate
With the failure of'that effort and seems unavoidable.
There Would
the limited success, of the: Presir need ta be no- deferment of the right, to slop production.;: Ap; irhr

LaborrMahagement

dent's

Conr

rights strike; and;

delving ihr
fact-find^

ference, the importance' of .policy

receive those
elected to
agement: ;>has been temporarily
overlooked;
Such conferences on give in support of its position. Not
regional levels, as well as on the only would the existence of such
national level could be of out¬ boards emphasize5 the responsi¬
standing significance in strength¬ bilities of labor and of industry
ening and in building the national but would act as a deterrent to
labor policy.
Properly conducted, the use of economic power as
they could not fail to widen the way of escaping collective bar¬
area of agreement and narrow the
gaining responsibilities.
In the quest for industrial peace,
areas of disagreement.
Labor and industry have not as the first step seems to be a full
yet taken on the job of exploring recognition on the part of labor,
the conditions under which vol¬ industry and the Government thai;

meetings between labor'and

man-

ing* beard

•

would

facts.which each; party

untary arbitration
resolve

labor

can

be used to

disputes

the

over

terms

of future agreements.
It
certainly should not be necessary,
for example, to resort to indus¬

trial
the
per

warfare

case

employer offered,

which

$0.15

say,

hour while the union demand

for $0.18 per hour. The part¬
ies should be able to work out a

was

satisfactory agreement to arbitrate
such

difference

the

avoid

tion to

losses

which

would

interrup¬

collective bargaining was
as

labor

risks of

serious

nature

both

parties. Relatively little attention
has been given, however, to the

possibility of limiting such risks
by the terms upon which an is¬
is submitted to arbitration.
A
failure directly to resolve certain

sue

issues

through negotiations might

well

followed

tion

the

ment

upon

could

sues.

used

Success

would
of

by an explora¬
possibility of agree¬
the
criteria
which

enable

to
in
the

resolve

that

the

is¬

endeavor

consummation

agreement to arbitrate. Such

approach

collective

requires a devotion
bargaining
as

peaceful process where the mark
of success is

The

the agreement.

basic

for

substitute

collective

the

nomic power.

tions

industrial

Development

adoptee

gaining

Bar¬

Furtherance

Agreements Between
Labor and Industry Restricting

Voluntary

the Use
The
and

employee's right to strike
employer's right to close

plant are so fundamental
that many persons believe any re¬
striction of these rights should be
made

strengthened.

There

need,

moreover, for the development of
mediation; to supplement
strict
conciliation endeavors.
A
con¬
ciliator

.keeps the parties from
off- negotiations; iLtbe-i

breaking,
diatof

;rfita% ta^eyhitiative MM*

lering pos.srble^sqlutibns: pS£ the

Due

by voluntary agree¬
ment of those affected.
This type

and

rela¬

serially #1,500?000 each April 1, 1947 to 1966, inclusive.

The issuance and sale

of these Notes are subject to authorization
Interstate Commerce Commission

voluntary agreement has been
widely made and can be more
extensively used in the quest for

by the

RATES, MATURITIES AND YIELDS

industrial peace.

Labor contracts
generally
include
a
voluntary
agreement outlawing strikes or

1.00%

1947

0.90%

1.65%

1954

1.55%

2.05%

I960

1.95%

1.10

1948

1.00

1.70

1955

1.60

2.10

1961

2.00

the

1.20

1949

2.05

1.30

1950

lockouts
contract.

the

for

duration

There have been, more¬

1.10
1

1.75

1956

1.65

2.15

1962

1.20

1.85

1957

1.75

2.20

1963

2.10;

1.30

1.95

1958

1.85

2.25

1964

2.15 ^

2.00

1959

1.90

two notable voluntary agree¬
which broadly restricted
the use of economic force in the

1.40

1951

1.45

1952

1.375

determination of the terms of fu¬

1.55

1953

1.45

over,

ments

ture agreements.
the

National

The

one

Mediation

The

railroad

not
use

whic h

Board

lead to

1965

2.20

1966

2.20

for

industry; the other
resulted in the National War La¬
the

2.15
2.15

led to

Act

Offering Circular may be obtained in any State in which this announcement is circulatedfrom only such
undersigned and other dealers as may lawfully offer these securities in such State. Certain dealers
(indicated by asterisk) are offering these securities only to banks, trust companies, insurance
companies or associations organized under the banking or insurance laws of the United
States; to any corporation; to any dealer in securities; and to any association
engaged as a part of its business in purchasing or holding securities.

functioned

•HALSEY, STUART & CO. INC.

agreement would
stoppage but to the

new
a

OTIS & CO.

LADENBURG, THALMANN &, CO.

BLAIR & CO., INC.

(INCORPORATED)

of arbitration machinery spec¬
INCORPORATED

...

agreements. covering cer¬
tain crafts i n The newspaper in¬

dustry and a number of loca.T
transportation systems. The unions
and companies which voluntarily

*R. S. DICKSON & COMPANY

GREEN, ELLIS & ANDERSON.,

♦JULIEN COLLINS & COMPANY

KEAN, TAYLOR & CO.

GRAHAM, PARSONS & CO.

GREGORY & SON

ified in the. agreement. The most
notable arrangements of this type
were

the

IRA HAUPT & CO.

R. L. DAY & CO.

*MULLANEY, ROSS & COMPANY

INCORPORATED

WEEDEN

*F. S. YANTIS & CO.

& CO.

INCORPORATED

Up their right to economic
warfare did so only after basic
gave

Dated April 1, 1946. The Notes are offered when, as and If issued arid subjefet to acceptance.by the Purchasers, to
approval of counsel, to prior sale, to .withdrawal,'' cancellation or modification'of the offer without notice, and to author¬
ization by the Interstate Commerce Commission of their issuance and sale. It is expected that Notes, in temporary or
definitive form will be available for delivery on or about May 2, 1946, at the office of Halsey, Stuart & Co. Inc.,
35 Wall Street, New York 5, N. Y.
- 1

principles as to ^hejr status hac
been
jfgrged upon.and. after

consideration of the parties''after raMefeehts^bad been made.^
w? nns' . under$tbp J their bstsic

policy

only

terms

staffed, and although its person¬
nel is
underpaid. The U S. Con¬
ciliation \$eryibe
s h,Q y 1 d"be

efficient

the most

for

It is not difficult

strong.

Secured Serial Notes

down his

bargaining.

in furthering

This is

production.

for the

without regard

the long run, are

the

that any failure to resolve differ¬
ences
between
them
over
the

this objective is
favorably known
eyen though the Service is under¬

Pennsylvania Company

of Economic Force.

ation of rules and regulations to
serve as a substitute for collective

Conciliation Service

uneconomic

per

impact upon costs, prices

$30,000,000

bargaining as a substitute
tor strikes rather than to the cre¬

The work of the U. S.

onerous

ever

fair wage

lective

development of col¬

to the

necessity.

throughout World War II. Refer¬
ence may also be made to a num¬
ber of labor contracts prior to the
war
in which the parties agreed

geared to the

operation, it is, in effect, ad¬
vocating wage determination on
the basis of some concept of a

sought by the negotiators and the
spirit in which the bargaining
process is conducted.
In some in¬
stances, agreements result from
the exaction of terms which, how¬

reconciling the rights of labor
of industry with the public

bor

policy
judgment,
be

concerned with the facts of busi1*
ness

and

Government1

step forward will have been taken

should,

progress

dependent upon the
soundness of the goals which are

largely

accepted because tively low-cost companies to ad¬
they are preferable to the heavy vocate a policy which, if rigidly
carried
to
the
extreme,
could
The necessities of using collec¬ immediate costs of voluntary idle¬
tive bargaining as a substitute for ness of employees or the shut- force high-cost competitors out of
(Continued on page 1946)
'
industrial warfare should not blind down of plant facilities. This ap

warfare
can

Collective

of; economic

ment

Economic Progress.

effective

bargaining

come as

When such, restric¬
a result of voluntary

agreement, as in the railroad in¬
dustry, great progress is made in
the quest for industrial peace.

assumption
an

possible voluntarily to
restrict their use of eco¬

consciously directed so that it ful¬
fills
this function,
then a long

production.

deciding a case by voluntary
arbitration, an agreement to arbi¬
trate may involve unpredictable

policy

agree to

the cornerstone of the national

that it could be made

One cannot dismiss the fact that
in the absence of accepted criteria
for

find

April 10,1946.

ill1,1.

-—«*'■

-1WJI mi -nu.-Mmu MIIIIUI. i.A*wwni IW

.....

imap

••

■

•••

.mi"!
.....

The

Quest for Industrial Peace
(Copiiaued

firom page ^^5)

In many

business.

industries, they
Many
unions, especially in the mass pro¬
are

the

small

companies. ;

duction industries, have also

made
their wage demands by reference
to a fair wage per se,;presumably
on *the ground that n laborer
worthy of his hire, irrespective of
management shortcomings or dif¬
When union policies are

ficulties.

made -by d centralized body ra ther
than by the local unions, morer

i$ not easy to take proper
cognizance and account of the in¬
dividual problems of particular
companies.- Wage determination
by reference
to
some -general

over, it

Roadblocks to

•"# ■*)
J

pticesy if 'allowed to ..cdiiipehsate wage-price policy. > The second
(Continued from page l929)
labor relations is still the essence people's rights./
The CIO eco¬ in part for'Wage, increases,' will he casualty, will be tte business svs
of progress an that field.
As we nomic plan, Which the Adminis¬ held to1 the belqw^rio? £nal - level
are
stand poised at the fork in the tration has made: its
own, con¬ of profits earned during 1936-39.
road, labor and industry are called tends:' that ij purchasing • power That .was ;a'period, as the OPA a hole big enough to
sink the
whole economy;
upon, to assume new and arduous should be in the hands of labor. admits, when six out of ten of the
responsibilities to .-iasufre; cthe/
Wages to labor are only part of hattph'a
;• operat¬
fectiyeness of the voluntary ap¬ total purchasing power. Dividends ing at a lps$. Actually, OPA's plan
/ Take OPA
Ceilings Off
proach. If we of the general pub¬ also create purchasing power. The will penalize business further by
To-remedy our economic paral
lic can desist from putting our
crops of agriculture create pur¬ {he (&ferehdeJh the l^ tax irate
ysis,-;to recover/ prosperity
re"
hope in some magic formula and chasing power. The salaries and of that period iahd tho 38%' tax
quires Individual
effort
from
curb our impatiente and emotion
wages < earned
in
distribution rate of OOW. .It also win penalize every responsible citizen
in this
to permit an objective appraisal create
purchasing power.
After business by denying prof if for in¬ room and in this nation
to fiet
and a thorough understanding of
nine years of peace and four years crease in volume. Does Stabiliza¬ OPA
ceilings taken off.
if ancl
labor relationships,; this genera¬ of
tion Director Bowles expect pro¬
war, it is clear that the Bu¬
when" OPA ceilings are
taken off
tion can make a sound and sig¬

leJnt'hoISecbUSineSS?S

„

the

learned

has

reaucrat

contribution^ toward

nificant

nothing

duction to climb

ink and

red

there

may

rise

some
The Adminis¬
functioning. continued -losses?
prices, but such price increases
attainment
of
industrial .peace
Wage increases are enforced at tration will ' never stabilize our will be corrected
by a volume of
standard may simplify collective without the sacrifice of political the level of peacetime wages-plus economy that way. It can
paralyze competing goods which
are
and economic freedom.
now
wartime increases, plus 60%- of it.
bargaining and may limit ;fhe
prevented by controls from com¬
'
ii*—c—■—
war
overtime increases, without
"scope of collective bargaining/ It
Savings result from postpone¬ ing on the market.
Industry will
eahnot bedepended Jupomfhc^ Memorial Service Held
equivalent increases in produc¬ ment of the
enjoyment of earn¬ stifle inflation with production
*eveiv to provide the maximum
tion of goods. Collective bargain¬
ings.
They * buy the tools that when permitted by the Adminis¬
For Charles R. Gay
'
production or the greatest nnmbel'
ing at a plant lever has been dis¬ create jobs.
Income on business tration to do so. ,V>
A half-hour memorial • service
of jobs.
There is an urgent need,
placed by decisions in Washing¬
savings inlay be. In dividends or
for Charles JX. Gay., President of
therefore, for development of eolHistorically, we have never had
ton.
'.
profits.
Enterprise cannot hire runaway
lective bargaining as a potent arm the New York" Stock Exchange
prices on a rising pro¬
Governments
are
man-made.
men until It first hires money for
from 1935 to 1938 was held at
of the national goals for economic
duction trend.r Runaway prices
They derive their power from the tools. Investment comes
first, jobs cannot be expected
Trinity Church at 8:45 a. m. on consent of the
progress.
Successes in this direc¬
unless
the
governed. It's high come second. The saleable
prod¬ Government runs the
tion further the kind of industrial Wednesday morning, April 10. The time for the
presses thai
governed of this na¬ ucts for use come last. No one has
Rev. Father Donald H. Morse was
peace which is '^compatible - with
print the/money.
This country
tion to speak up. When the Gov¬
anything to sell until he has first has
the officiant and the Rev. Doctor
the national program.
;
grown great in the experience
ernment
buys, - its
power
with made it. He cannot
get the money that free and fair
Frederic S. -Fleming, Rector of
competition is an
It is unfortunate that the devel¬
prodigal gifts in exchange for con¬ to start
making it unless the hire adequate
Trinity Church, made the address. trols at the
regulator of profit. The
expense of the thrifty, of
opment of collective bargaining All
money is assured—unless there
members
of
the n financial
price mechanism is as automatic
it endangers every citizen of us.
during the early stages of the re¬
is a prospect of profit.
The man and
community were invited to par¬ Some
impersonal as gravitation.
may not see. the danger be¬
conversion
period
was
marked
who has savings to hire out has
ticipate. Members of the Exchange cause of the
The elements are so independent
immediate benefits
with a number of crippling fail-;
the option of not risking them. If
who acted as ushers were: Elliott
that they are not subject to bu¬
obtained.
ures.-. They have resulted in
Many are lulled into he does
many D.
hire his money out, he is
Fox, E. Burd Grubb, James J.
reaucratic
control.
No
unconcern
one
in
by the abundance of
proposals for solving "the labor
letting someone else spend it, at
Gurney, Robert J. Hamershlag,
Washington or New York knows
money caused by the war -and its
problem." ?. We -are again at a' Robert W..?■
his risk, to produce goods.
The what three million
Keelips, Harold C. aftermath.
crossroad in the progress of labor
independent
investor acquires income for the
Mayer, " Daniel o F. v McCarthy,
businesses of these United States
relations.' One fork of the road;
loan of his savings through time
Thomas CJ O'Keefe, William ¥. Government Has Become
Partisan
are doing in time to direct them
leads to the imposition of laws,'
as the worker acquires salary and
Reilly and Charles E. Stewart. In
inflexible rules, and Government
Never
was
the.. prospect
intelligently. It can only be done
for
wages through time.
When profit
charge - of
arrangements ' i were
arbitrarily and at a loss to the
regulation as a substitute for- in-!
prosperity greater than on V-J
is withheld from money at risk
Messrs Gurney and Keelips.
dustrial warfare.
economy.
Day. Now, months later, the na¬
Despite the op¬
by governmental decree, the jobs
position of labor and of most of
tion, which ought to be creating
it makes cease to exist as the in¬
Holding of Price Line Fails
industry, this road appears lobe E, H.Martiii&Ca.Fprme^ prosperity and wealth for all, suf¬
vestor reduces his risk./
inviting since the sign post says
ALBUQUERQUE, N. Mex.-r-Edr fers convulsions and multiplies
The OPA attack on profit is im¬
the road leads to the. protection ward H. Martin has formed E, H. shortages because the Adminis¬
practical and irresponsible. Wash¬
The
■

■

about the economy's

the public interest and to in¬

dustrial

peace.,

detours

and

tration has abandoned equity and
the justice.. It has become partisan.
For the past Washington's subservience to CIO

Martin & Co. with offices

Closer

scrutiny,; Franciscan Hotel to
however, reveals the road blocks, securities business.
make

sable.

that

land

road

slides

which

virtually impas¬

The other fork of the road

goes the way of labor-manage¬
ment
conferences,

four

years

Mr. Martin has been

serving in the U. S. Army.
thereto
Co.

of Los

was

with

Prior

Fairman

Thomas Marsalis tp Admit

voluntary arbitration procedures.

Thomas

and

intelligence,

self-restraint

and
goodwill
to
road, but ft seems to
somewhere.
Voluntarism in

travel

that

now

clear.

collectivism

The

which

Charles Edward Lucke, Jr., will
admitted
to
partnership in
Marsalis

path
it

toward

implies

plain.
Every American should be

freedom

The

ress

toward

unwilling prog¬

Government-con¬

trolled national economy. For in¬

■

greatest

to a job at

'•

•

contribution

industry

gives

busted

CIO-US Steel wage
dispute, even
the OPA finally admitted that

goods
000

jobs.

provides neither
There are 2,700,*
establishments
in

this country which have only one
to three employees, or are individ¬
ual businesses

with

paid

construed

circumstances

as an

buy any

offering of these securities for sale, or as a solicitation of an
offer
of such securities. The offering is made only
by the Prospectus.

man's

profit is the tousinessliving. It is his wage—his

subsistence.

busi¬

the

ness,

of record only and is wider

em¬

OPA overlooks the fact

that, at this smallest level of
as a matter

the

business
nor

business

ployees.

This advertisement appears

that

postwar period is its solvency. Ex¬
cept industry remain solvent, em¬
ployees will be fewer or none. A

stance, freedom for profits: In the

Co., 11 Wall
Street, New York City, members wages enter into the costs .?• of
of the New York Stock
Exchange, goods.
Under its newest plan,
on May 1st.
the OPA intends that increases in

the right

fair pay.

American

con¬

^£

The right to sell at a fair profit
is as fundamental to our economic

now

cerned about this

agreements, the development of
the institutional aspects of collec¬
tive bargaining, and the use of
effort

Angeles.

voluntary

takes

Right to Profit

in the

engage in

Cut down his profit

and

you cut him down. There is
natural line of demarcation be¬
tween
small
no

business, medium
big. According to the Depart¬

and

125,000 Shares

ment of Commerce

classification,
however, small business in 1939
eight million jobs and

gave

duced

pro¬

billions of goods and
The small manufactur¬
nine times as numerous as

services.

any

and

combined.

4% Preferred Stock, Cumulative
(Par value $100

ers are

medium

has

overlooked

$104.50

manfacturers
Administration

per

share)

per

to date of

massive

business.

business
crowds
the
Small business makes

im¬

Big

headlines.
our

Small

nation.

Business

The social significance of small
business goes far beyond its eco¬
nomic
aspects.
It is the means

(plus accrued dividends from March 1, 1946

the

portance of small

Importance

Price

big

The

of expression and
the individual

delivery)

prise.

development of

possessed of enter¬
It is enterprise which had

advantage of wealth of any
kind except as it created wealth.
It

began in the ambitions of small

folk

Copies of the Prospectus may be obtained in any State
from such of the several Underwriters, including the undersigned, as may
lawfully offer the securities in

tryingtosucc^ed^

businessman pays as he
goes. His
investment is much more in work¬

such State.

ing capital than in surplus. If he
a large
surplus, he would not

had
be

LEHMAN BROTHERS

small

WATLING, LERCHEN

CO.

indication

understanding the effect of the
profit-squeeze on the small busi¬
nessman.

April llt 1946.

businessman.

Washington gives

the

With the

curtain

for

Small

quick. The small
nevir

the

profit-squeeze,
business is

business* is the

F^ottea/Mant^: He will
first -casualty

the;'new

ington

that its plans to
price line have failed.
Within the past month, Congress
has heard official testimony on
the expected rise in the cost of
hold

admits

the

living.

' Stabilization
Director
hoped it would not rise

Bowles

5%.

over

Reconversion

Director

Snyder said the rise might be be¬
tween 5 and 10%. Chairman Eccles of the Federal Reserve Board
started his estimated cost of living
rise at 10%. If subsidies are taken

off,

would

additional B%

added

living costs. Actually,
the 8%. is being paid, but hidden.
>

The American Meat Institute has

testified

plus

that

the

subsidies

black

was

market

costing

the

consumers

$2,000,000,000 a year
above ceiling prices. Mr. Bowles
advocates

and more subsidies

for

and

other

food

agricultural

products

supposedly under price
ceilings. Thereby he makes them
cost more, but the public is sup¬
posed to think otherwise, because
che advances show up as taxes
or borrowings instead of directly
on the price ticket.
Profit -Control Leads to

Statism

OPA does not deal with

infla¬
tion, except to accelerate it.
It
deals only with the symptoms of
inflation, by hiding them. These
zealots of the new order who have

turnedprofit
control know only too well that
profit

is what

what

distinguishes pri-

makes private

enterprise

economic policy

go. The domestic

of the

Administration, if there is
therefore leads directly to the
statism that our sons and nephews

any,

fought to destroy in all parts 01
the world.. Getting rid of OPA
right now and cutting down Gov¬
ernment deficit spending, are the
two big steps we must take to
realize the primary objective 01
economic freedom./ In fiscal pol¬

icy, the magnitude of the national
requires that it not be en¬
larged. OPA ceilings should be
debt

put

goods,;
1

debt anc
production
01

the production of

taken a

off

the
.

,:-

| Runaway Inflation

CPA has not stopped inflation
It is only trying to conceal lnlia-

W® ICOMMERCIAL

Volumedumber 4480

rPIj^ANCIAL CHRONICLE;

<the,.people. AYe aye-still ing debt reduction,, will be adeffetstage. of inflation. We jquate to. serve the-nation.; -Federal

from

tion

the
must

avoid Ahe second, or run- jspending must be. reduced if we
are to amortize the, debt of oyer
stage. Runaway inflation,
$275 billion with which this na¬
the second" dangerous stage, cgn
be averted ' by a
few principal, tion is burdened.; We must stop
safeguards, and you can help. -One landing to the debt now: not five
Nations, like indi¬
of tnese principal safeguards # years hence.
all-out production, which the OP A viduals, pay. their debts only when
hinders.
A n-oth ei- safeguard they plan to do so. Meanwhile,
the only way to handle the Gov¬
against inflation is a labor policy
ernment debt is to expand >the
that requires an increase Of pro¬
duction equal to all increases of economy to fit the debt. We might
away,

wages.

•-

well

•

End Deficit Financing

which

safeguard

The

wish

emphasize, .however, is to
deficit "-financing. ^Deficit

here to

end

of Social Security
(Continued from page 1928)
The voting, as to ; coverage : of
domestic workers just fell short
of

(exported to Tokyo,
i
In
January, General

fiscal

policy.

coverage^

validate that
money.
OPA has not, .stopped
inflation. ..OPA is a camouflage
alone

which

cap

greater is the-incentive -to get oh

essarily.

"hat

the self-employed are
in, principle not less entitled to

the
do in

required

The

could be used for

those who are
working for others. In the past,

tal
as

have felt, jt wise to defer ex¬
tension to the self-employed be¬
we

inflation »is to be prevented.

age

annuation.

;than

coverage

these reasons

'would provide
large portion of premature

persons,

correct

For

Conclusion/

the

Chamber feels that the eligibility
ge should not be lower than 25.

comprehensive

mula, and other related questions
involving costs and benefits.

the benefit rolls and thus the cost
of the: program increases unnec¬

self-employed,

scheme applying to ail occupied

tion must do in x\merica if run¬

the

lows:

creates f money., qfed.it
(Japanese Government to
purchasing power without Japan what our own Administra¬
producing the goods and services
financing,

m is undoubtedly Artie that the experts to make recommenda-}
Jowertthq ehgibiutjf ^age for dny: tions on the technical issues in¬
permanent disability 4>ehefits, tlm volved in financing, benefit .for-'

the Social Security Committee of
the Chamber has agreed as fol¬

Under

and

vote required
policy, v.

Although the National Chamber

Douglas
a

pormaneht disability is usually to .sider the advisability. of appoint-?
increase living costs while elimi¬
ing jointly with the Senate Fi¬
nating earned income..
nance Committee, a committee of

has not passed upon extension of

MacArthur required the Japanese'

Government

the. two-thirds

to create Chamber

at home the fiscal policy

use

•

1047

for

Thpre is general agreement that
the ultimate ta^ <ratO rpf b% on

pgyrplls Wilt nto| .completely .sup^ ^

super¬

pprt the present benefit struc¬
ture; yet there is spine pressure'

/formula

same

determining to¬

for

permanent disability benefits
is used for determining old age

insurance

Fede^td biid^et £hd

benefits.

for

substantial

number of our
of practical difficulties
[The Allied Command demanded ! that seemed tp be much greater members Xeel, however, /that it
that deficit financing cease, and
•
ip; many ,#se$ than for em- mighA/be better jto approach the
operation to hide rtl)e ♦facts of added this order:
;
•
; ployed groups.
The Calhoun objeqtive of .disability JrpAectipn
Government weaknesses in its fis¬
"The Japanese Government must ;
Beport, gfter ably: exploring the through tfra bid £ge assistance
cal policy. Spoper or later, this
1
various complexities, suggested program -and
restrict the '-tataL
jcqtrexpense to the .minimum;
away

cause

•

hidden inflation

hasAe/be faced

American consumer in the ithe savings of the Japanese
prices pft|j^
iple—or from actual bank
Bowles
gdimtjs /that/ Ivbenevgr
by the

price coptrpls are taken pff,

tliM

hidden inflation will cause prices

nAM's position is that

rise.

the

de¬
newly

Government
(must"refrain from selling to the

posits

rather

than

from

Japanese

"The

sooner the pad news of infla¬
tion is.revealed to the people, and |Bank of Japan or other banks hythe sooner we get, back to free and jpothetical' obligations demanding

*a§d |in exchange
currency."

full

pricing, the sooner the danger of
runaway
inflation will be re¬

who

circulating

actual

MacArthur's

fiscal

one

i
i

Japan is a plan for solvency. It
Inflation is not something to talk Ishould be the plan for America.

In ieiims,pt the billions

about' only

of dollars that the

debt.

It jnust ■ be talked about
terras of wbht.is
pwed'|?y
>peo^

Jfre

The
people can't pass the debt along.
They are the end of the line. .The
Government debt ;pyerhaiigs ypur
job, your chattels and whatever
savings that you have. The policy
of deficit financing levies its cost
against your living and your fu¬
pie who pay for government.

extension is

partisan.
Congress

ures

Deficit

financing .reduces

.considers meas¬

fture freedom.* If your liberties are

(further reduced, your indifference
to

icontributes

their

reduction.

(Here -you* still

express and prac¬
liberties ithat
made

the"

America

the

value of. everyInsurance policy by -Georgia

reducing the purchasing <power pf

now

which will determine our fu-

tice

ture.

He does not speak as a

(future.

great.

not

Every citizen of

has the courage of his
and exercises by tra¬

j convictions

Deficit financing goes dition the independence of free
through your safe deposit box and ;men. It. is /.imperative that the
reduces the-values in it without i people of Georgia demand the end
opening the box..Deficit financing [of OPA on June 30, 1946, to end
reduces the value of every savings ithe
production slow-down and
the money.

|
•

states:

For
discharged veterans. of
World War II, legislation is favored which will protect them

Old-Age and Survivors

their
result

such

Insurance in

credits.-

Total

that

way

period of service will
in
any
diminution
.

'
•

••••

not
of

has shown

defects.

some

Chamber

the

has

not

only .;fpr»spcial jsecurity, but also
for other purposes.The "Economist'*
(Bondon) for February J, 124)5, A;
journal consider ably, left pf centert
in discussing the spcla|i^i^arliat7
ment Social Security. proposals*.

ineidently j?r o v ide' A

iv^hich

weekly retirement benefit of only

$5.20, has the following to say:

While

perhaps af- 1
ford social isecurity. it can per- j
haps afford educational expan- !
sion.
It can perhaps afford - a <
national health service. It can r
perhaps afford to build 400,000
"The country can

concerned

The Chamber's policy

with

;the intricate detatts of
th£
ft ^^ thece ;|s some
recognition 'among businessmen

limitation might be .raised to $25
or $30 and that under a cpmpre-

i hoboes a yeaf^bfinbre «xi)ensive|
| design/ |t ^tfpeirhapi^fford to j
\ do Without its overseas invest* |
j ment§. itcah perhaps afford to

itself with

•

j
(
i

hensiye OASI program, including
the
self-employed and other
groups

.now

excluded,

there

sprrie merit in the abolition qf

pay
interest on a loan from
j America. It can perhaps afford ,
jto draft a million and a half
j more workers into the export j
} industrfes^fStiqsifelPe^Ps

any

earnings test after age 70. Whether
a majority would favor reducing
the qualifying age for women to

ford

00 is not known.

There is little

sentiment

or. no

for raising the

Permanent Disability

and

needs

vspendiiig.

will continually :be
Cdnfrohted with the jproblepi >.of
raising ^adequaie /revenues not

Committee

that reconsideration is called for.
Some feel that .the $15 earnings

further

practical.

' ":■?

Unquestionably with the pas¬
pf time and accumulation of
experience the benefit formula

The Chamber's policy with re¬

launder

benefits

sage

Veterans' Wage Credits

erans

ica. He is confident about its final

which should remove many

show whether

Your speaker believes in Amer¬

;

impresses

■;

spect to OASI protection for vet¬

Relieves :in America

nation owes in

$500 or more in any
That suggestion for a lim-

practical initial difficulties of including allAhe'selfemployed. If it is adopted, the
resulting experience shou 1 d

moved.

•

Benefit Structure

of the
i

for

policy

basis,'

earn

year.
ited extension

printed currency;
!

disability

that the OASI plan be extended
to
include the
self-employed

peo-

-liberalizing . this benefit .struc¬
^Considering Ahe,si2:q .pit

ture.

maximum, benefit
abpve :$$5, ahd Ahcle is a belief

three times

forces

armed

large,

fivb

with

/ much equipment as

war.
It can
!• pay twice;as

"jthjS "$|0 Ipresehl mipimum.

7 It

while very low, will become progressively of less and less signifi¬
For workers totally and per¬ cance with the mere passage of
manently disabled at or after time.
Businessmen generally favor the
age 55, a system of benefit pay¬
ments, calculated on a basis financing of the program through
consistent with that for the Old- joint contributions. >f
Age and Survivors Insurance
Your committee is to be highly
benefits, should be provided.
commended for^having originated
re¬

can

times as
before the:

perhaps afford to

much Apr its coal.

,..perhepS;:;affprd";:^^

and!/higher/ wages alt;
round.
Each of these, regarded

hours

spect to this point states:

by itself, it can pgrhaps
But can it afford them

gether?"

afford. :
all to-,

?■

j This reasoning is adaptable to
our

own

situation and

com¬

mend it for your consideration as
changing prevent further inflation. The cit¬
I It is recognized that as workers Ithe- Calhoun report, "Issues in Sor you develop a comprehensive re-'
the credits in your bank book.
izens of Georgia live within their
cial Security."
Since this report
Deficit
financing
reduces
the means. You want - your Adminis¬ approach old age -the probability
construction of the entire 'socialj
makes few specific recommendar
value pf the money }n your ,pocket tration to reduce its debt and pay ;of becoming permanently enabled
increases. .The effect of total and lions, it might £|ili be/^seAa cQU?| security program.
while ypu hc^d it; wit&M chang¬ its bills/ as you must do.
Well,
ing the numerals on the: folding why not stand up in the bold
money or the figures on
your and courageous Southern manner
coins.
Deficit financing robs all and say so. - Mr. Truman says this
This advertisement appears as a matter of record only and is under no circumstances to be
the elderly who omthe sunset side is the year "of decision; This na¬
construed as an offering of these securities for sale, or as a solicitation of an offer to
of life, depend on fixed incomes on
tion -can't wait a year. By slow

bank

deposit

without

annuities,;f and

Government

restrictions,
your
being lost. By gov¬

workers. Deficit financing reduces liberties are
values of trusts for old and ernmental policy

the

young, for

retirpraput

Jpr edU'-

cation.'Deficit financing, in peace¬

time, is

device to give gifts to

pressure groups at the expense.of
all the people. It is a selfish plan

buy any of such

the (degrees, through OPA and other

who, lack

strength to reenter the ranks of

enjoy privileges and immuni¬

ties in the present at the expense
of our children and grandchildren

you are being
of your goods and
chattels through inflation. -Here in
Georgia the spirit of individu¬
alism .still prevails; here the fierce

dispossessed

flame

-of.

New Issue

liberty

Men

brightly.

Not

and

still

211,000

American Airlines, Inc

ft IJ
is
purchasing
April 3 Most Productive
power of the poor. It reduces the
amount of groceries the ^house¬ On Curb'Exchange
wife can purchase by increasing
April 3 proved to be the most
their
pripes/Deficit/' financing productive day since 1937 for the
New York Curb Exchange in the
raises the costs of shoes -and
clothing by increasing the .gps't^pf; matter pf new and additional list.-

invasion

burns

women

Georgia, your decision to regain
your freedom must be made now.

in the future. ^Deficit financing

securities. The offering is made only by the Prospectus»

..r

Common Stock

the

(Par Value $5 Per Share)

the fa^er^yidib; supplier eoitpni in^ysith; applicatioi^^^
wool -and -leather.

D^igit .financ¬

ing invalidates the

wage

increases

power

of/the money

with

total 8

are

the

increases

are

paid,

deficitfinancing imeriacei the

sweep back the rising tide of
The National Associa¬

inflation.
tion

that

of
a

Manufacturers

believes

$20 billion budget,

ing 6

se¬

realistic plan to balance the budg¬
et.
Until itvis t>alanced»S we1 can^
fiot

■

original listings bring¬

new common and two new
preferred stock issues, to the Curb
Exchange floor, while 9 are list¬
curity of all CivilService em¬
ployees, of pll white-collqr work¬ ings of additional shares of com¬
mon
stock issues already traded
ers who function as servants in: all
Parts of the economy but not as there,-Approval of these listings
adds approximately 4,620,000 com¬
pressure groups.
mon shares and 140,000 preferrejd
Balance the Budget
c
shaf pslib .the grand AptaJ of shares
The/GoVernment should get a presently admitted -to trading: oh

which

■i/

per

Abe-,

labor?by:reducing^

rag.

of X7-issuesapproved., The jan-J
nouncement pf -this by the Curb

includ¬

the Curb Exchange.

Admission to

Copies of the Prospectus may be obtained in any State from such of the several Underwriterst including the undersigned, as may lawfully offzr the securities in such State.
■

■

/
,

'
.

■' ' ::

?•'

": ;• "sv

EMANUEL, DEETJEN & CO.

i.*

LEHMAN BROTHERS

;

.J"

dealings of the shares approved
for listing will be announced at a

pending effectiveness
registrations under the Set
curities Exchange Act of 1934.

later: date

April 11, 1946.

f|.

this

that

relief

would

be forth¬

The logic

coming quite quickly.
;

the effect

question is all against the
of any important rate
increases for many months, with
the best bet being well into the
Fall.
It is considered likely that
of the

likelihood

The
creases

in¬
the

remarkably unconcerned over the wage
awarded the non-operating brotherhoods and three of
market was

appointed by President Truman.
Their
around the middle of this month.

Meantime/ it is impossible to say
definitely just how much the in¬
creased wages are going to cost
the railroads.
It is obvious, how¬

that the added burden will
heavier than had generally

ever,

expected and that to a num¬
roads the raise, super¬

been

ber

imposed

higher material and

costs, will present a very
serious problem.*;*: *
The arbitration boards awarded
fuel

16 cents an hour all

increases of

the line.
Applied to the
average straight time hourly wage
in the industry in 1945 this would
work out to just about 18%. This
will be increased to about 19%
along

the

boost

accompanying

Chicago Railways
Cons. "A"

5s, 1927

Chicago, Milwaukee
& St. Paul
5s, 1975 & 5s, 2000

Walt

Disney

Productions
Common

Pacific Airmotive
Common

report is expected some time
Applying the 16

pay-roll taxes.
cents

hour increase only to the

categories

which

was

awarded it works out to somewhat
more

If the trainmen

than 19%.

engineers receive a similar
percentage increase rather than a
straight 16 cents an hour the ag¬
gregate costs to the railroads will
probably top 20%, including the
and

pay-roll £ .taxes*

higher

rate in¬
creases
will not even be filed
until the fact-finding panel hear¬
ing the cases of the trainmen and
engineers has issued its report
and the full effect of those in¬
creases can be appraised. The ICC
will then have to hold extensive
hearings in various parts of the
country, particularly if the rate
increase is to be of any significant
proportions. As adequate notice
of the hearings will have to be
given, it seems doubtful if the
hearings themselves will even get
under way before June.
, Even
the

operating brotherhoods by arbitration boards last week. The
trainmen and engineers had refused to arbitrate and the^ dispute with
those two brotherhoods is being studied by a fact-finding panel

five

At .the

request

for freight

Baltimore

Lackawanna;

recently ley;

have

there

relief,, and

been some comments to

Ohio; Chicago & Eastern Illinois;
Katy, etc., may have difficulty in
showing any earnings at all on
their common stocks this
year.

prospect is hardly calcu¬
support any great degree
speculative enthusiasm.

Such

lated to
of

Brooklyn Chapter of NACA

The

roads

time

the

railroads will

consensus

will

is that the rail¬

York

roads, including New
Central; Erie; Lehigh Val-

many

A. M. F. Pinspotter

Viewed

evening,

Wednesday

April

members
of the Brooklyn
Chapter of the National Associa¬
tion of Cost Accountants and its
friends were the guests of the
American
Machine
& Foundry
3,

Company at its plant in Brooklyn.
A feature of the evening was the
demonstration of one of the com¬

pany's

the

developments,

latest

Pinspotter. This
revolutionizes
the

AMF Automatic

device

new

John A.

licity

Lacey, Director of Pub¬
the

for

Chapter;

MacCauley;

Raymond

William

Lentz,

Francis

Morser

factory

man¬

Frank Maslan and others.

ager;

MEMBERS

6roadway,NewYork 5, N. Y.

S31

So. LaSalle 8U:

White,

(Special

LOS

(Chicago 4; 111.

to The

Financial

Specialists in

again acting

securities dealer from offices

the

Van

Building.

Nuys

Corp

Co.,

Tennessee

Gas

Transmission
-

first mortgage pipe iin'e
2%%
series
due
1966
priced at 101V2 and accrued in¬
terest, to yield 2.65% to maturity
100,000 shares of 4.10% cumula¬
tive preferred stock, (par
$100)
000,000

bonds,

priced at $106 per share and ac¬
crued dividends, to yield
3.87%
and
484,444 shares of common
stock (par $5), priced at $19.75
per share.
the

v*Of

484,444 shares of com¬
being offered, 350,000
are new shares being issued
by
the company and 134,444 are out¬
standing ' shares being sold by
stock

mon

stockholders.

certain
Net

proceeds to be received by
the company from this financing

with

together
received

$10,000,000 to be
bank loan, will be

applied to the redemption of its
outstanding funded

debt consist¬

ing of $34,525,000 of first mortgage
3% bonds due 1965; to the re¬
demption of 75,000 outstanding
of 5%

cumulative

prefer¬

red

stock, and to the repayment
of an outstanding 2% bank loan
in the amount of
balance

proceeds,

expenses,

pany.

In October, 1944, the company
completed the construction of a

1,265-mile natural gas transmis¬
pipe line extending from the
Stratton-Agua Dulce field near
Corpus Christi, Texas, into West
Virginia where deliveries of na¬
tural gas are now being made
under long-term contracts to the
company's two principal custom¬

sion

United Fuel Gas Co. and
Natural Gas Co.
Since
March
1, 1946, the system has

ers,

Hope

delivered in
of

excess

270,000,000
per day.

average

of natural

ft.

cu.

Mr.

company will have
$35,000,000 of 2%%
1966; a $10,000,000 bank
loan bearing interest at 2%, due
1948-56; 100,000 shares of 4.10%

outstanding
bonds due

cumulative

stock, and

preferred

SECURITIES

2,100,000 shares of common
For

has

Broadway, New York City

individual dealer but

as an

recently been

acting

ad¬

twelve

the

Dec.

31,

operating

ian by court appointment.

$14,310,639.

months

•

revenues

amounted to

For Banks and Brokers
O

M C

GUARANTEED

E. W. Bliss

RAILROAD STOCKS-BONDS

25 Broad Street

*New York 4, N. Y.

Telephone

BOwling Green 9-6400
Teletype NY 1-1063

Facing the Facts

Company

$2.25 Convertible Preferred

Northern States Power

Talk by Arthur C. Knies

Company (Del.)

\
\

:.-.Y
~

7% Cumulative Preferred

6% Cumulative Preferred

—

Copies Available to Banks and Dealers

;

J
'

Bought

——

Sold

SUTRO I

Central Paper

—

Quoted

%|||lLAS

& CO

Common Stock

New York 5, N.

'% Telephone: HAnover 2-7900

BROADWAY, NEW YORK 5, N. Y.

& HlCKEY

f^'^toembers New York Stock Exchange

49 Wall Street

Members New York Stock Exchange
120

Teletype: NY 1-911

Telephone REctor 2-7340

Bought—-Sold—Quoted

Circular

Lehigh Valley Railroad

GETCHELL MINE, INC.

request

General and Consolidated 4s-4%s-5f,
-.

UNITED PUBLIC UTILITIES

Adams & Peck
y•

.v\

*...

•

f|f||

Mclaughlin, REuss & co.

.rrsw^;!o'v

Memb^s New York Stock Exchange

63 Wall Street, New York 5
BOwling Green 9-8120
Boston

Tele. NY 1-724

Philadelphia

xSi Hartford

2O03

•' Ml

Circular Upon Request

UNITED PUBLIC SERVICE

1. h. rothchild &

ONE WALL STREET

co.

Member of National Association

52 wall street

°/ Securities Dealers, Inc.

HAnover 2-9072

y. c,

Tele. NY 1-1293

TEL.

HANOVER 2-1355
,

Philadelphia Telephone

NEW YORK 5

TELETYPE NY 1-2155

.j; /
-

Lombard 9008
—

■

stock.
ended

company's

the

1945,

ministrator of estates and guard¬

Selected Situations at all Times

after

is estimated
$2,640,000, which will be added
the general funds of the com¬

deducting
at

$15,000,000. The

such

active

PFLUGFELDER, BAMPTON & RUST

more than $55 000
The offering comprises
$35'..

Throckmorton for many years was

RAILROAD

financing the

Chronicle)

ANGELES, CALIF.—How¬

ard Throckmorton is

Cross

Securities

Weld

,JUpon completion of the present

Throckmorton Resumes

the

group of 64 un
headed by Stone &

April
offered to the public
securities

gas

Tork Stock Exchange and other
leading Security and Commodity Exchs.
New

120

Webster

000.

after the ICC has

that

get some freight rate

nationwide

Co., priced at

Holds Plant Visitation;

authorized rate
sport of bowling, for many years
called upon to absorb materially increases there will be a lapse of
the oldest and most popular of
higher prices for materials and 30 days before they can become participant sports.
It makes for
effective.
fuel.
increased frequency of play and
Railroad earnings during, the ;
In the light of existing condi¬ greater enthusiasm for the game,
first two months of 1946 in most tions it seems doubtful if any since it operates as fast as the
instances made very sorry com¬ blanket increase in freight rates player wishes to bowl and goes
parisons with results for the like can be looked for. This belief is through hour after hour of play
1945 interval.
This is particularly bolstered by the fact that since with utmost precision.
true when comparisons are made the end of the war the Commis¬
The
company
specializes
in
of operating results before Fed¬ sion has ordered various reduc¬ such
types of machines as bread
eral income taxes.
The carriers tions in already existing rates. wrapping devices, cigar making
have been displaying their char¬ These ordered reductions included
equipment, dough mixers,
cig¬
acteristic inability to control costs rates on anthracite coal shipped to arette machines and other special
quickly when revenues begin to New York Harbor points, bitu¬ devices.
fall substantially.
Except in one minous coal rates between certain
Following a tour through the
or two minor instances the Jan¬
points, and specific r live stock
different cost centers of the com¬
uary and February reports did rates. Also, it seems probable that
pany's plant, refreshments were
not include any reserves against there will be considerable pres¬
served and George Ingalls, AMF
impending wage increases. These sure against increasing freight,
Controller, and President of the
increases are retroactive to the rates on agricultural products, and
Brooklyn Chapter, addressed the
beginning of the year. It is ex¬ particularly grains, in view of members on some of the account¬
pected that most of the roads will famine conditions throughout the
ing problems which arise in a
charge the full wage increase for world.
multiple product machinery in¬
the first quarter of the year to
All in all, it must be recognized
dustry.
March operations. If so, the quar¬ that the
general railroad earnings
Chapter
members
associated
ter reports will present the first
picture for at least the current
truly accurate picture of 1945- year is decidedly drab.
Except with the American Machine &
1946 year-to-year operating per¬ for the
possibility of tax carry¬ Foundry Company who served on
formances.
There is no question
backs, which are impossible to
the visitation committee answer¬
but that they will make sad read¬ measure at this
time, there is a
ing.
feeling among many rail men ing questions along the tour were:
same

derwriters

Volume 163.

Number 4480

THE

improved

Cheaper'Money
In Britain

It aims at neutralizing some
of the new purchasing power put

circulation through the budg¬

their

farm

typical school day the
banker-students will visit farms

the

of soil testing, erosion
dairy and poultry man¬

agement, and other farm opera¬
They will also attend semi¬

tions.

farm

clude

courses

ment,

Ogrohomy,

farm

manage¬

The

Bankers

products.

School'

farmer-bankers

similar

topics

dis¬

cussed.

majority of the New York
banks place heavy emphasis on
service to farmers, because of the

New 8PJI Drive

President Truman, on March 22,
signed ^legislation providing an
extra $1,600,000 for the Office of
Price Administration to use in its

war

years," he said.

"It fc the Association's' hope that
it will be a'step

in creating

a gen¬

black

market,

The order, it

Against

Meal Black Market "1

was

slaughterers who

the

United

stated, applies to
exceed ceilings

by an ^average of
Those
than

an outgrowth of a
series of four two-day farm credit
schools conducted by the New
York State Bankers Association

relations,

will

the

dairying, fruit "Press reported from Washington.

during the

ation,
and

its

Agriculture is

at which country bank oper¬

nars

value

1949

growing, vegetable growing, poul¬
More than 50 of the State's 62 try
management, and agricultural
counties
are
agricultural,
and economics taught by members of
nearly 500 of our 709 commercial the4 Cornell University faculty;
banks are farm-lending institu¬

they will witness demon¬

control,

FINANCIAL .CHRONICLE

said on March 3d.
"New York
ranks eleventh' in thd hiltion in

strations

tions.

customers."

where

(Continued from pagb .19216)
effected largely with the aid of an
increase
of the floating debt,
though in this respect the Treas¬
ury subordinates its cheap money
policy to anti-inflation considera¬

service

COMMERCIAL

than 2%?

exceeding ceilings by less

will

penalized

sliding scale.
The OPA has announced its in¬

tention of moving against

illegiti¬

mate

operations of what it de¬
scribes as "flyrby-night, get-rich-

quick", slaughterers who are said
eration, of country bankers better
deficit, by inducing the pubto have recently entered the'field
important role of agriculture in equipped than their predecessors drive
against black market opera¬
lid to subscribe- to medium-term our
State's economy," Albert L. to serve" farmers and to help keep tions in
and with their disregard for price,
Government loans. A3 far as longmeat.® Meanwhile, -the
Muench, Secretary of the New agriculture financially sound."
OPA had ordered subsidies with¬ ceilings are
term loans and irredeemables are
keeping meat from*
York Sta.te Bankers; Association,
The school's curriculum will in¬ held from
slaughterers dealing in ICgitiniale slaughterers;
concerned, however, the market
is
kept in "4 short supply.
The
amount of the available stock is
limited and the Treasury is not
going to increase.it.
i,
In order to' induce investors; to
compete for the limited supply,
into

etary

•

■

■-

■

Norfolk and Western

is endeavoring to
discourage a .rise in
industrial,
common stocks.
To that end, Mr.
fjalton repeatedly -expressed his
wish that corporations should ab¬
stain from increasing their divi¬
dends.
This request has lately
been disregarded in a number of
instances,
and i the
Chancellor
warned the City that, should there
be many more increases of divi¬
dends, he would have to take steps

Railway Company

the Treasury:

;

Railway Operating Revenues decreased $14,736,000, or 9.23 per
cent., under 1944. Railway Operating Expenses increhse<& $0,212,000,
or

Whether, this

preitenfy thbm«.

10.27 pef cCnf.

Balance of -Income, after deducting Sinkirig-and
Appropriations, increased $494,000* In lM# there; Was

Reserve Funds

non-recurring charge Of $7,930,00(> "representing miscellaneous
appropriations account Excess Profits tax post-war credits for 19421944.
After deducting dividends on Adjustment Preferred; Stock, the
balance remaining, $21,799,000, was equivalent to $15.50 per share
of Common Stock held by the public.
r
;
'
.

Condensed Income Statement

prohibition to raise dividends, or
through a tax on dividend in¬
creases, it remains to ]?e seen.
The

Government

"has

many

other means at its disposal to

dis¬

boom." The ever-pres¬
ent threat of nationalization goes

Railway Operating
Revenues..
Railway Operating Expenses (See Note

higher wages also tend to discour¬
age many investors from buying
common. ■ stocks.
There, is, there¬
fore, a very large amount of funds
seeking investment which. com¬
petes for the existing amount of
long-term Government loans; '
The question is, what will hap¬
pen, if, as a result of the commit¬
ments assumed .through the ac¬
ceptance of* the Bretton Woods
Agreement, it should become nec¬

td defend sterling against
an adverse;^rend aftet a refusal
by the Fund to authorize a devalu¬
essary

ation

A reversal of the cheap

money policy inighf then become
unavoidable. Will * the Govern¬
ment decide to abandon the pol¬

icy it has been popularizing: by

atl its disposal? Or
Wilt it choose by preference to

every means'

and

Income—Equipment

ties—Net

and

Joint

$4,909,968.70'

—

1,733,851.98*

Railway Operating Income
Non-Operating Income (See Note 3)-'———
Total

$25,756,928.34'

Interest

Other

Funded

2,989^,510.96

—

'21.90

57.51

■*■

$7,625.02

$2,106,008.26
117,240.23

Income

.36

Sinking and

Reserve

Funds—Appropriations
Appropriations (See Note 4)i

Balance

Dividends

$4.00

Income

per

Balance

854,756.50

Transferred

Preferred

$7,213,841.99

23.46

35.24

222,718.88

100.00
2.23

1,932.00

.22

Stock—

tion, it is stated, will be conducted
Cornell University next sum
mer by the New York' State Bank

ers^ Association ' in

: cooperation
with the New York State College
of /I .Agriculture.

Fifty ' cdtihtry

erty during the

Flamed

Surplus

Note

2—Adjustment of Income' and
charges applicable to prior years.

879,392.00

$21,799,531.35

$495,853.43

included $4,810,482.30

Excess

Frofits

taxes

due

Profits

tax

post-war

tax

post-war

for

1942-1944,
Income in 1944 and transferred to Earned Surplus in 1945.

2.33

projects'

credits

Balance, January
Transferred

Miscellaneous

from

for

appropriated

1945..:

1942

' Financial

Credits

Charges:
Appropriation

....

$223,454,643.42 t

of Surplus for Dividends on Common
Stock—$13,00 per share„_i__.___'__C.___;
Miscellaneous Charges
Total

represented

23.71: per

$50,5381^31.92,

Credit Balance-,

1,316,645.64

the last ten years,;

At the end of the

1945—

year

appropriations to the voluntary sinking

Wage Demands

thb1,brd'®drh(^s^^ee'44.w
deferring for :the present the matter of working rule revisions.
This

19,600,924.64

December 31.

and

cent, of outstanding capitalization.: Fixed •
times in 1945 and an average of 13.80 times:
1

were earned 12.04

The

other two operating brotherhoods refused all proffers of arbitration,
broke bfi mediation aiid aniibtiiidedl
strike effective March 11,1946.

$18,284,279.00

Charges

1'\

f. ,-vr

8,427,795.08

;

During 1945, demands for wage increases and for revision of
working rules were received from* organizations representing practi-*
cally all operating and jiott-operkting employees: The1 demand bf the
rion-opefating employees for a uniform" inroasb of"30 cents per. hour
is now being arbitrated in accordance" With provisions of the
Railway
Labdr Act.
The operating brotherhoods demanded a wage increase
df 25"jper; cent., or $2.50 per.basic .day,.whichever is larger,. Three
of:

30-227,326.43

* 1'

$21,799,531.35

Credits

essen¬

.The Capital Stock- of the Company held by the public was $162,638,500, and represented 76.29 per cent; of outstanding stock and bond'
capitalization.™ Oil December 31, 1945, the Company's stockholders

from

$193,227,316.99

Income

The reserve

fund for retirement of "direct Funded Debt and income from invest¬
ments totaled^ $3,014,000, and investments in securities had a market
value'of $3,177,000.
rv —

amortization

Condensed Earned Surplus—Unappropriated

war

^.%

obligations and other contingencies.

credits

aggregated

sion of facilities will require expenditure of
large sums.

charges

Excess Profits

Contingencies

and "tear, experienced by the Company's
prop¬
period, and deferred improvements and expan¬

1943.
■Note 4-r-Excess

and

will be used for such expenditures when critical materials and
tial manpower are available* qs well as- for the

over

Note 3—1944

Taxes

'
—

Note 1—Includes $15,319,000 balance o£ unaccrued amortization of defense
completed prior to September 1, 1945.-

and

for

numbered113,979.
The tbtel Suhde^T)eM

$493,921.43

wear

.41

7,930,482.30*

$22,678,923.35

Adjustment
share..
-

is"

1.2-r

$9,092.29

Fund

Abnormal

1,467:27
—

$23,533,679.85

Miscellaneous

Total

agricultural-schoolforbankef^ th# first Of Tta kihctin Ui# ria-

Reserve!

$2,223,248.49
Npt

which

payment of future

;

Debt...,

Deductions

years, -aggregating $8,377,000,
profits tax accruals for 1945.

$58,705,000, which is invested in United States Government securities,
Total taxes accrued for the year and
payable in 1946 were $38,769,000,
before credit "adjustments.

12.24

$7,222,934.28

$22,767,417.38

22.42

$3,176,116,724,046,817,56 '

9,466,216.59

—

Net

Deductions from Total Incomer

26.96

The

36.84

Facili¬

—

Income

excess

Reserve Fund for Taxes and Contingencies
19,037,167.00

Credits:

'$6,131,090 for prior

$13,301,200.79
Rent

Company ter¬

expenditures, except for facilities sold orretired, otherwise accounted
.for,, amounting to $208,000.
The termination of the amortization
31.27~ period resulted in reduction of tax liability of $2,246,000 for 1945
reflected in lower

emergency period, the

minated the amortization period1, and in 1945
charged to Operating'
Expenses $15,319,000, the unamortized balance of such emergency,

10.27-

"•

>■'

$23,947,135.70

32,637,864.65

Balance

For Bankers at Cornell

Amortization of Defense Projects

ihcurted in connection with national defense and the war
effort.
Of
this amount $17,936,000 had been
charged off as of December 31, 1944.
Following pi&slamatid^
the United States onr»

——

Credit

Agricultural School

Company had received authority from the Government to
amortize, ove# & fiVO^Oar' period^ Oxperidituteg tot^lin^ $33^463,000;-

6,131,000.00
••
$26,923,828.29
Cotinty and Local— '
5,714,036.36

State,

withdraw from the International

Monetary Fund?

The

——

$33,054,528.29-

(See Note 2)

stocks;' for. there is no
fair will
compensation paid, by the

.9.23

$14,735,516.27
9,211,619.43

■f

Credit

Less:

of knowing how

interfere with enterprise by fix¬
ing prices, allocating raw mate¬
rials, etc,, and the prospects of

$144,863,518.76
98,924r,453.32
-

1)~.

$45,939,065.44
Federal L

common

continued existence of powers

Cent.

Railway Tax Accruals:

long way toward deterring in¬
vestor^ frdm
buying industrial

Government to stockholders.

Per

with 1944

be the

;

This

September 29**1945; ending the
Comoari^on
1945

courage a

means

texeg was;due in part to reduced revenues, but principally to
adjust¬
ments resulting from revision of Federal! tax
legislation and accel¬
erated amortization expense charges in 1945.
■
>
^

av:

will be done through an outright

1111

SUMMARY OF FIFTIETH ANNUAL REPORT FOR 1945

$203,853,718.78

emergency WCS bvdided Jjy; appointment by the President i of*

the United States of a fact finding board

upon' the Situation

to investigate and report

resultihgjfroipt^he demands of these brotherhoods.

The wage demands of the two giroubs of employees, if granted*
woidd' increase this Company's annual Pavroll by approximately
Dividends
$10,300,000. This estimate does not include increased to any em-'
liSvA:
Divt^hd^^vere paid upori the outstanding Adjustment,Preferred; ployees iii the supervisory or official classes* f The rules changes, !^
Steck?^
pf^#.0j^)6r^ahare^ or .$878,000. tkvidettdi granted, in addition to interfering seriously with operation, would*
were paid iiponthe
outstaMing Commbn Btock in 1945 at theanbua# increase operating costs greatly in excess of all wage demands.
ratd 6f $10.00 per share,
an Mtra dividend of $3.00 per sftbte wax
.

bank loan officer^ comprising the
school's first student, bodyy will

arrive bh the carrtpiis, bii

For

Atigi 12:
sik^ysfthe bahkefs WiB-Uve

in student quarters, attend lec¬
tures and classes, and go on super¬
vised field trips as part of an in¬
tensive course in farm manage¬

ment, land classification and use,
soils and fertilizers, crop produc¬
tion, animal. husbandry,
dairy

management, fruit growing, poul¬
try management, and gardening
and vegetable (tfopS^;;

The school's purpose, as ex¬
pressed in a prospectus, the Bank¬
ers Association is sending; it«7n0
member banks, is "to make avail¬
able to bankers "un-to-d^te
mation about farm management

which will equip therrt td tender

paid March 9, 1946, out of 1945 earnings, making a total distribution
$13.00 per share, or $18,284,000.
\
,
;

Employees

The average number of employees dnnng the year was 21,968.

Railway Property Investment of - $567,302 000 averaged $25,824 pen
employee. The Company's total payroll
1945 was $54,734,000, an
Railway Tax AccrualSj aftfef brediVadjustm^htSj Were, $32,638,000, average of $2,492 per emnloyee. In addi*ten to wages and salaries,
the Company paid $3,796,000 for Railroad Retirement and Unemploy¬
4 decrease of $19,037,000,' pr ^6.84 per Cent. Taxes ^nlbuhfeef fcf $1,480
for each employee, to $23 for each share of Common Stock, to 23 cents' ment Insurance taxes and employee Relief and Pension Funds, which
averaged $173 per employee. ? }; j v
per dollar of Operating Revenues-and to 6 ner cent, of Railway: Prop¬
0 '*
^^ThC&ard"CxPre!!isCs t&-thb bfRcer sir^mtH^ees itsapnt^
erty Investment. Federal taxes, $26,924,000, representing-82.49 per
cent, of all tax accruals for the year, decreased $19,083,000, or 41.48 Of the continued fidelity, diligence and efficiency withv which they
per cOiit.
Included ih this* amount were accruals for Normal tax and have serted the Company and the Nation during the year.
Surtax, $14;I50,OO0, Excess: FrofitsLtax^ $9,100,000^ aftefreredif adljUSff
-Sx,
ments,' Railroad Retirement and Unemployment Insurance taxes, f
w* J*
;'..r•
r;- zrv-iPresident.;®;:>
$3,240,000^ and Capital Stock tax^ $405,000; The decrease "hi' Federai''
•

Taxes

•

;

'^V

jenks,^!|!|

■

Sixty-Fifth Annual Report of the Directors of Canadian Pacific Railway Company,

in .Europe ,and in
of the Canadian

The victorious ending of the war
and the partial readjustment

economy to peacetime pursuits were the most significant
factorsraffecting the yearns operations. Though the flow
of freight traffic derived from war production and from
the export of - war -materiel .suddenly ceased, the con¬
version needs of Canadian industry, the relief : and
rehabilitation needs of devastated Europe, and the repa¬
triation of thousands of Canada's .fighting men provided
new sources of traffic. .Notwithstanding a slight decline
in gross earnings, an all-time record volume of transpor¬
tation Service was achieved by your Company.

in 1945, compared
in the following table:

The results of railway operations
with 1944, are shown

■

Increase or

;

1945

1944

•

;

Decrease

to expenses.

■

Gross

Working Expenses

Net

(including

275,711,370

4,343,654

--------;——$ 36,054,334 $ 43,159,664

$7,105,330

ratios:

Including

taxes

Excluding taxes

88.59%

—

———

,81.66%

86.46%
f

2.13

78.92%.

During the year the sixtieth anniversary of the com¬
pletion of your Company's transcontinental line was
observed, and wide recognition was accorded the signifi¬
cance of this historic event by the press and by the
public. Glowing tributes were paid to the great services
rendered by your Company to Canada throughout the

years'since .1885.
In the successful discharge of its
responsibilities for wartime transportation-service your
Company has lived up to its highest traditions.
Income Account
Gross

Earnings

Net

Earnings

Other

$ 36,054,334

" 15,106,957

-—

•r$ 51,161,291
Fixed

Charges

19,547,129

Net Income

$ 31,614,162

—

Dividends:
.

"•

Preference

Stock

■

war

2% paid August 1, 1945

2,521,391
2,510,109
$

—_

5,031,500

paid October 1, 1945-

•

—

11,731,500

Balance transferred to Profit and Loss Account

$ 19,882,662

Profit and f<oss Account

Profit and Loss Balance December 31,

1944

.—$251,715,008

Final dividend ©t 3 per cent, on the Ordinary
Stock, de¬
clared from the earnings of the year
1944, paid March
1945

,i)

Passenger Earnings slightly exceeded those of 1944 and
accounted for $58,854,297, or 18% of the gross earnings.

Civilian travel

$241,665,008

•

balance of Income Account for the year ended
December 31, 1945
$ 19,882,662
Portion of steamship insurance recoveries
representing compensation for increased cost of
^"tonnage replacement
712,258
—

('-I for

new steamships and
recoveries

Miscellaneous—Net

as a

cents, compared with 1.94 cents

$31,547,575, or 10% of
earnings, and they exceeded those of the previous
yedr by $2,10.5,144. Revenues from sleeping and dining
car operations were
higher than ever before, due prin¬
cipally to the magnitude of the demand for such services
ing to their homes all

Credit

high mark, averaging
There

21,107,820

Profit and Loss Balance December
31, 1945, as per Balance

$262,772,828

/jr-alt d*vidend of 3 per cent, on the Ordinary Stock for the
*9k, ^ich.w®s declared subsequent to the end of the year and
i
?
3A 1946^ amounting to $10,050,000, is not deducted
from the Profit and Loss
D

balance shown above.)

Railway Earnings and Expenses
viGross Earnings from the
transportation of freight, pas^ .incidental railway services amounted to
$316,109,358 m 1945. This is barely one per cent, less
than the record earnings of 1944.
'
.

Charges for services continued at the pre-war level
which prevailed when price-fixing regulations were

?■

imposed in 1941.

The volume of traffic handled

by all Canadian railways in
war

any

exceeded that carried
of the immediate pre¬

this accomplishment, after five
years of
-wartime stresses, emphasizes in
telling fashion the effec¬
tiveness of the teamwork of your
years and

officers and employees.

Working Expenses for the

year

totalled

$280,055,024,
and were the largest in the
history of your Company.
Payrolls charged to operating expenses were
$133,592,959
taking 42 cents of each dollar earned, as compared with

41 cents in 1944.

At the

same

time the proportion of the

earnings dollar required for material, supplies, taxes and
other expenses increased from 45 cents to 47
cents.
,

';Net Earnings,
for

services

Other Income
Other

result of the fixed level of charges
the higher costs of
operation; were

as a

and

Income

amounted

$15,106,957,

increase

$2,735,642.
All

your

An adjustment in rates of hire for certain

vessels and the settlement of various claims which had

been-outstanding contributed
$936,124 in the net earnings.

improvement

Hotel net earnings were better than in any past year.
The improvement over -1944 was $645,024.
Large scale
demand for accommodation at your city hotels existed

throughout the
was

year and a record volume of business
handled. Your resort hotels remained closed in 1945.

The net

earnings of the communications department

was

Canada.

The number of

trains reached a new
12,300 daily throughout the

passenger
over

also

increase

the

volume

service rendered.

abnormally heavy use of your Company's facili¬
ties and equipment throughout the
year, together with
shortages of labour and material, particularly in the
summer months, made it
impossible to maintain them
to the accepted standard of pre-war condition. Provision
in the amount of
$5,250,000 was made in the year's
accounts for maintenance which was
necessarily deferred.

expended on the maintenance of roadway,
bridges and buildings 36,628,000 man-hours of labour in
1945. The work performed included the
placing in track
of 1,609,177 treated and
1,556,228 untreated ties and the
laying of 609 miles of new rail. The Sperry detector
car,

rate of $2.50 per share.

Net income from interest,, exchange, separately oper¬
properties rand miscellaneous sources increased

ated

$950,417.
Paul

Interest received from the Minneapolis, St.
Ste. Marie Railroad Company Income

Sault

Bonds, which

•

were

which is used in the examination of rails for hidden
opera¬

were

again at a restricted level, only 750 thousand
cubic yards of gravel ballast
being applied. The unusu¬
ally

acquired by your Company through

reorganization of the

Soo Line in 1944, amounted to
Exchange account and net .results from the
operations of separately operated properties improved.
There was a decline in the management fees under your
Company's contracts with the Government for the pro¬
duction of munitions, and ieduced farm income in West¬
ern Canada
adversely affected-interest payments on farm

$137,652.

land contracts. *

;
\
Fixed Charges

severe

306,627 from their maximum in 1938.
Fixed charges
now been
brought back to the level of 15 year9

have
ago.

•

;.;v.

•

Net Income and piyicjends

668.

Dividends

amounted

declared

out of the year's earnings
The dividends on Preference

$21,781,500.

Stock and Ordinary Stock
cent,

respectively, the

were

same as

4 per

cent, and 5 per

for the previous year.

year 39,756,000 man-hours of labour were
the maintenance of rolling stock.
Heavy
repairs were given to 750 locomotives and 28,117
freight
train cars.
Passenger train cars given general over¬

hauling totalled 1,157.

> ;

As part of the policy, of continually

standard of equipment
repairs, stabilized trucks

when

units

were

acre.

sold for

land, sold at
.

year

278,932

$1,603,044,

acres

Cash

average

received

agricultural lands
$5.75 per
irrigated

an average price of
were 638 acres of

Included in this total

price of $55.05 per acre.

land- account

totalled

.$7,637,988,

including $660,760 derived from the leasing of coal, gas

improving the

are

shopped

were

for

applied to 215 refrigerator
cars; arch bar truck frames on
1,541 freight cars were
replaced, by cast steel truck
frames; and the braking
systems on 1,457 freight cars were renewed with
air
braking of modern design. Generator direct drives were
62 passenger cars to

Land Accounts

During the

Net income for the year amounted to
$31,614,162 as
compared with $34,699,830 in 1944, a decrease of $3,085,-

plow mileage exceeded

During the

expended

installed

Fixed charges amounted to
$19,547,129. This was a
decrease from 1944 of $1,284,020 and a decrease of $7,-

snow

that operated in 1944
by 60%.

>•

conditions which were encountered
in the early portion of 1945 saddled
maintenance expenses
with heavy charges and the snow

;

•<

were

defects, covered 8,747 miles of track. Ballasting

tions

for the year were

revenues

Dividends paid by The Consolidated Mining and
Smelting Company of Canada, Limited, were again at the

The

There

across

your

for repairing and renewing track, structures,
motive power and rolling stock totalled $118,155,208, or
37 cents of every dollar of railway earnings. This
pro¬
portion was the same as for the previous year.

189,115

Sheet

Maintenance Expenses, consisting principally of expen¬

323,785

—

.:>i

result declined substantially.

ditures

steamship insurance

sively, by the public and
substantially higher.

express

(The

and Excess Profits Taxes;

passenger mile was 1.97
in 1944 and 1943.

—

i§

Since
the beginning of the war your Company has paid to the
Dominion Government a total of $103,400,000 in Income

increased $206,447. Following the cessation of hostilities
your communication services were utilized more exten¬

year.

Net exchange credit in respect of
expenditures

'■r±h

933,197, of which $18,200,000 represented the provision
for Dominion Income and Excess Profits Taxes.

passengers was carried an average
distance of 162 miles. The average revenue received per

17,740,684

meals served
A*

141

Kingdom.

in connection with the movement of servicemen return¬
10,050,000

138

was 0.83 cents, a decline of 0.02 cents from the
previous
year. In the decade prior to the war the average revenue
per ton mile was 0.97 cents.

gross

i „•

amounted to $47,174,455, a
decrease - of $360,438. i Railway tax -accruals were $21,-

Other Earnings amounted to

Mile_-r-_----—'

28,913

Other Working Expenses

sup¬

carried

47.3

28,873

vessels in your ocean-going fleets, and one of
coastal ships, remained in operation throughout the
year tinder charter to the Government of the United

A total of

.6,700,000

was

16.2

48.2

Freight Train Hour—

Passenger Miles per Train

54,822,012 tons of freight

1944

1,785

average distance of 497 miles—bringing ton miles for
the year to more than 27,251 millions. The average rev¬
enue received for hauling one" ton a distance of one mile

public.

Ordinary Stock

Gross Ton Miles per

plies in the last half of the year had the effect of lower¬
ing the general level of productive operations throughout
the Dominion, with the result that revenues from traffic
other than grain also showed a decrease.
A total of

1945

•

Freight Car Movement—miles per car day——

The repatriation of service personnel and other military
movements crowded into the last half of the year fre¬
quently necessitated drastic curtailment in sleeping car
and other accommodation ordinarily available to the

•

2% payable February 1, 1946—.

•>

The virtual cessation of the manufacture of

;

tons—1,790

Train Load—gross

Freight Train Speed—miles per hour———16.1

the gross earnings, a reduction of

280,055,024

—

Income

Freight Earnings accounted for $227,707,486, or 72% of
$5,410,987 from last
year's all-time record. Approximately one-half of this
reduction was in the earnings from grain and grain
products. The wheat crop on the Prairies, estimated to
be 280 million bushels, was considerably below the 1944
harvest of 390 million bushels, and grain loadings on
your Company's western lines dropped 44 million bushels.
This was offset to Some extent by a greatly increased
all rail movement of grain from the :Lakehead and
Georgian Bay ports to St. Lawrence and Atlantic coast

'•

;

Freight

Port^

•

severe

indicative:

are

$316,109,358

Working-Expenses (including taxes)

;

2.74

Net earnings from railway

operations were substan¬
tially less owing to increased costs. This was partially
offset by an improvement in other income and a reduc¬
tion in fixed charges. After providing for dividends on
preference stock the earnings per share on. ordinary
stock amounted to $1.98 as compared with $2.21 in 1944.

• ■

winter weather encoun¬
tered at the beginning of the year and the frequent
recurrence of adverse joperating conditions in
connection
with the repatriation of service personnel, the level of
efficiency was well maintained. The following averages

280,055,024

Earnings.

Expense
:i

•.

Notwithstanding the

taxes)--

;. r- V4--

$2,761,676

$316,109,358 $318,871,034

Earnings

Transportation Expenses amounted to $114,725 361
taking 36 cents of every railway dollar earned as com¬
pared with 35 cents in 1944 The allowance of holidays
with pay to employees, in the running, trades became
effective during the year for the first time.
Higher
prices for locomotive fuel added approximately $800,000

in the past.

Asia

■')

Year Ended December 31, 1945 (Abridged)

smaller, in proportion to gross earnings, than at any time

To the shareholders:

■

replace belt-drives.

and petroleum
rights.

Disbursements for land and irri ¬
gation expenses, including taxes, were
$1,257,523 leaving
net cash
receipts of $6,380,465.: This was a decrease of
$430,70$ from tho previous.year.

Certain- concessions to contract holders were again
aporoved for the crop year 1945-46.
The assistance to
holders of farm contracts since this

policy was inaugu¬

rated in

1932, has amounted to $25,614,264.

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

Volume 163

advertisement-

year

Balance Sheet

The

amounted to $1,605,895,632, an increase during the
The net increase in property invest¬

During the
to. acquire

ment

was $20,551,013, the additions and retirements being
summarized for each of the various classes of property in
a supporting schedule accompanying the Balance Sheet.
The purchase of the line of railway in British Columbia
between Princeton and Otter Summit, referred to in the
1944 Annual Report, was completed during the year.
Among the larger retirements is that of the "Empress
of Russia", which was destroyed by fire in September,
1945, while under charter to the British Government.

Current assets at the close of the year exceeded

by $82,854,705

175%.

year

33%

Soo

Line.

for that year, has been
The Wisconsin

cur¬

At the end of the

Company

your

G11 October 1,

$7,214,000,

City Bank* Farmers Trust Company

agr^mentUDderwWph^
amount pf£Equipm^n^'ft

en¬

was

tered into an

held before

issued,

Net
income

was

1955, inclusive, is payable in United States currency,
and bears interest at 2% per annum. Under this arrange¬

amounted

programme of

$1,754,433.

during the current

In furtherance

foregoing transactions resulted in the net retire¬
$12,214,000 of bonds arid other obligations, and a
reduction of $30,268,000 in the amount of Consolidated
The

which this

On March

collateral.

sion.

Re-establishment of Veterans

$410,141 com¬
It

A Department of

Research, the need for which had be¬
increasingly apparent, was established on Febru¬
ary 1, 1945, with headquarters at Montreal. Its function
is to carry on scientific and technical studies and to make
recommendations for improvements and economies ip
various phases of your Company's operations. Satisfac¬
tory progress has been made in the organization of the
Department and the advancement of specific projects
which have been under study.

1, the 4% Secofid Debenture Stock of The

Dominion Atlantic Railway Company, maturing July 1,

1956, amounting to £ 440,000 was called for redemption.
Company placed this subsidiary in funds to meet
the call. To consolidate its indebtedness, your subsidiary
issued its 4% First Refunding Mortgage Bonds, matur¬
ing January 1, 1995, to the extent of $7,307,000, which
have been accepted by your Company in settlement of
advances made to enable your subsidiary to redeem its
First and Second Debenture Stocks and as consideration
Your

for

the

surrender

between

Alaska; which

was

Whitehorse,

Limited

Y.T.,

and

Freight and
throughout the

charges for its services increased in line with the ad¬
in the index of Canadian wholesale prices. The
basis of the computations is indicated in the following

ment to

319

349

316

109,9
v.)

i•(

<«

1942-1945

*.r <:

Capital Appropriations
-* • •

'•

$1,275

$1,189

land and in the West Indies

well

dom and the United States. These

Company's earnings
if its rates had kept

for Canada.

number. ol^pftifca|dp|i$. are
hyi^ l^e^endent joj?erators for licences for
duplication of services pres¬

beingSpera^

class vessel.

■

propriations of $42,039,447 for the
pal items are as follows:

;v vi*.

1 ■

:;V

'-r

t •' v.

■

•

1946. The princi¬
-

the United King¬

Replacement and enlargement of structures in

opened and plans are. being made for the. re-opening of
others as $hd

1,360,936

—>■

Replacement of rail in

and branch line tracks

main line

1,086,640

;

'4/681.092

machineryJ——h1,017,258

Additions and betterments to shop

^epbusinessr:e<^

16^840,399

Additions; arid

your lines requiredthe construction: Of ^145^sidings,
involving 16L7 track miles; during 1945. At the fclose^ of

^dditloaM4ittd

nbw<

'V-

rail anchors and miscellaneous roadway better-

ments

plants" and .ti^erS^ings^ locate^

--JM
1,019,374

Tie plates,

2,814,695

permanent

to close all agencies located in Europe and the Far East,
;
with heavier section
with the exception of those not in the combat area. Since ^^Installation of
ftutpihatig jsigptalp—
.hostilities ceased, some, of these agencies have been rej;

form

agencies greatly facili¬
good will

Ocean

and

^^,095,802;

betterments to rollkig

Coastal steamships-——12.684.593

facilltlesr.»r«

•.
.

year

Additions and betterments to stations, freight sheds, coaling
and watering facilities and engine houses^.J
$

;

•

Your approval will also be requested for capital ap¬

With the outbreak of war it was necessary

'th^si&iLcases ^^e'iAeeds/

briefs have been filed with7 the Board to protect the
interests of your Air Lines.,

anticipation of

your confirmation, capital appropria¬
tions in addition to those approved at the last annual
.meeting were authorized by your Directors during the
year in the amount of $5,048,226. Included was a provi¬
sion of $3,866,567 for the construction of a fourth Beaver

tated both trade and travel and created much

commenced the review

347

--.U.

have played
no small part in bringing the Dominion of Canada to the
favourable attention of the peoples of many lands. Prior
to the war your Company maintained representation in
22 countries of continental Europe, in 15 countries and
territories in the Far East, in Australia and New Zea¬

the British Commonwealth Air

some

257

The world-wide services of your Company

charter .services-and,services betweeh^&pecific -points

ently

109.3

Thus in the four year period your
would have been $86 million greater
abreast of prices generally.

during the year, reducing your invest¬

which-might result in

317

Totals

existing licences and.lt

being made

297

1945

to a close.

The Air Transport Board has

Directors.

262

101.9

106.6

1944

all activities of your Air Lines in the

$7,000,000.

1942

Advances to the amount of $400,000 were repaid by
Lines

Earnings
(in millions)

1943

been executed with

Computed

(in millions)

Price Index

Overhaul Plants operated for the Department of Muni¬

your Air

Actual

Earnings

(October 1941—100)

Year

ships is anticipated and agreements have
ship-builders for their recondition¬
ing. The resumption of service on both the Atlantic and
the Pacific, as well as improvements in the service on the
British Columbia coast, is the immediate aim of your

your passenger

"
Yearly Average

Fairbanks,

pounds, and mail amounted to' 1,253,537 pounds, com¬
pared with 1,436,153 pounds. -

came

The early release from Government service of two of

vances

ported fwafeS^lQ^SO-IMHittda^compared^ith^ 8,027/442

Training Plan

rates remained unchanged
It is informative to record the ex¬

table:

the Beaverdell and Beaverglen, were
the Clyde during the year. The keels of two
ships of the same class have been laid. Improved
on

performance and economy of operation have beCti
sought: in tho design
the hCW; Beavers and they^ are
being fitted with the latest navigational aids, including
radar equipment. Their speed will be 16 knots. Each
vessel will have 163,000 cu. ft. of refrigerated space for
perishable traffic.
—
^

tent to which the gross earnings of your Company would
have expanded in each of the years since 1941 had the

Air

ships,

launched

passenger
year.

' !

Steamship Replacement
Two

Rates and Services

inaugurated in October; last.

tions and Supply and in

by the end of the year. In addition, some 6,300 vet¬
who had no prior service with your Company had
been placed in positions, a development which indicates
the broad approach taken, toward the- problem of reestablishment.
*"■'

total
of 5,373,403 revenuemilesduring 1945, as compared with
5,984,602 in the previous year. Passengers carried to¬
talled 125,110 as compared with 104;166; freight trans¬

year

on leave of
engaged in special

direction of the British Admiralty,

erans

tively publicized and that the public and your employees
are fully informed on matters of interest to them.

The aircraft operated by your Air Lines flew a

During the

employees, who had been

services under

pany

Advertising Branch, the Press Bureau
the
liibits Branch, and will devote special attention td all
phases Of your Company's activities which haVe a bear¬
ing on public relations. It will ensure that your Com¬
pany's rail, steamship, hotel and other services are effec¬

Lines' subsidiary Yukon Southern Air Transport Limited
has undertaken, as Agent for T.C.A., the operation of

service

war

had returned to peacetime employment with your Com¬

owing to tfe tetm^athm of wartime activities sponsored
by the Canadian .and/United States Governments in
Northwestern Canada; /The results of operations showed
a
loss, after depreciation, of $308,066. The loss during
the first six months of the year more than accounted for
this deficit. Considerable improvement took place in the
last six months, largely as a result of the expansion of
mining activities throughout the country, and a profit
was recorded in net income for that period.

More than 4,800

Department of Public Relations was established on
August 1, 1945. The new department will integrate the
work of the former General Publicity Agency including

The scale of operations of your Air Lines during the
year 1945 was slightly lower than in the previous year,

Under contract with Trans-Canada Airlines, your

•

v <

Canadian Pacific Air Lines,

course of their war service.
Where
advisable, re-training has been provided to enable em¬
ployees to resume their duties with confidence and as¬
surance, and every encouragement has been extended to
those who desired to take advantage of Government as¬
sistance in procuring vocational or academic training.

they acquired in the

Public Relations

Company of

1966.

been

absence with the Armed Forces

£292,500 4%
Extension Debenture Stock, maturing January 1, 1965,
and $1,700,000 4% Mortgage Bonds, maturing .May: 1,
by your

has

the concern of your officers to develop
policies for the employment of veterans going beyorid
the requirements of The Reinstatement in Civil Employ¬
ment Act.
Every effort is being made to ensure that
returning employees may benefit to the fullest extent
from such added skill,
knowledge,: and experience as

Research and Development

medium of transmission may contribute

long distance communications services in Canada,
including ultimately facsimile and television transmis-

come

;

new

ment of

new*

iments in the micro-wave radio field. From the results
achieved it will be possible to determine theextenttd

to the United States Supreme Court has been denied.
were

of your

Company's intention to keep
developments in the field-of com¬
munications, it is presently carrying out, jointly with the
Canadian National Railways, exhaustive tests and exper¬

fully abreast of

year.

Net earnings of the South Shore
pared with $642,880 in 1944.

placed in seiwice(j|li^ first of sik

Company. The Ihnbvatioh^at theserstations Will^be tho^l
oughly tested for public approval and if acceptable will
be incorporated into the general programme for post¬
war improvement.
"
; T
' ^ Vf

First Mortgage bonds was dismissed by the United States
Circuit Court of Appeals. A petition to remove the case

cember 31.

pledged

modernizing passenger equipment, provid¬

streamlined stations of modern design being built by your

An appeal by Louis Lober from the decision of the
Court which denied his petition for subordination of the
claims of your Company to those of the owners of the

During the year, $1,000,000 4Y2% Collateral Trust Gold
Bonds, maturing July 1, 1960, were purchased and can¬
celled.
The balance of these bonds—$24,000,000—was
called for redemption on January 1, 1946. The funds to
meet this call were deposited with the Trustee on De¬

/=;

addition,: experiments have been made-with a passenger,
train car fitted with free-wheeling axle units tp test* the
degree of improvement obtainable in riding qualities. ij

tion of the First Mortgage Bonds, which was referred to
in the last Annual Report, is
expected to be filed with the
Interstate Commerce Commission and with the Court,

As at Decem¬
ber 31,. units of equipment to the value of $6,273,350
had been delivered, leaving a balance on hand with the
Trustee of $18,796>593, which amount is carried on the
balance -sheet in
Other Investments as Unexpended
Equipment Trust Deposit.

be delivered to your

ing! more colourful Jhnd comfbrtable interiorsi^asAbeeH
proceeded with as priorities for materials permitted.lip

The plan of reorganization
embodying the terms of the
compromise agreed upon between your Company and
the representatives of the holders of a substantial por¬

Canada and cash aggregating $25,069,943.

soon

•

sleeping cars being rebuilt in your shops. These cars
will provide a practical laboratory for testing the new
features^ for possible inclusmh in new equipment.'Thfer

There was Recently

Pending delivery of the equipment, your Company de¬

Debenture Stock

cars

•

His report has not yet been
1945

special loading device ordered for the

New sleeping car comforts, featuring a bed which folds
into the wall by day, have been incorporated in certain

of the Commission's examiners com¬

automobile box

Company.

The Duluth, South Shore and
Atlantic Railway Company

ment, equipment constructed or to be constructed and
costing $25,069,943 in Canadian funds is leased to your
Company at a rental equal to the instalments of principal
of and interest on the Equipment Trust Certificates.

Trustee bonds of the Dominion

innovation is
new

$8,409,042, continues to be

earnings of the Soo Line

Long range improvements in freight equipment were

$2,804,235. After fixed charges and other deductions, net

semi-annual instalments from April 1,1946, to October I,

foreshadowed in the production of Canada's first alu¬
minum-sheathed box car in your Angus shops. Another

issued.

guaranteed as to prhicipal and interest by your Company.
designated as Series "H", maturing in equal

This issue,

posited with the

one

mencing October 30th.

;

switching locomotives? 750 box; 200 70-ton gondola and
hopper cars; and 50 cabooses.
>

period of eight

agent for the Trustees of
the Wisconsin Central. Two plans of reorganization for
that company have been filed with the Interstate Com¬
merce Commission by committees representing groups of
bondholders. These plans contemplate a continuance of
the present operating arrangement. A public hearing

Finance

totalling

total of

*' A

300 70-ton

Central Railway Company, of which
holds First and Refunding Mortgage

Bonds in principal amount of

operated by the Soo Line

equipment obligations,
matured and were paid.

conformity with the terms

extended for

line.

your

New rolling stock placed in service during the year
included 48 Pacific type steam locomotives and 13 Diesel

beginning January 1, 1951.

years

This efficient sys-

of operation has now been installed-on

2,245 miles of

under which this option was given, the traffic agreement
executed in 1944, and referred to in the Annual Report

previous year the excess was $88,484,875.

Serial

tem

allotted to others in the plan of reorganization.
$364,980 was paid for this stock, at the rate of $2.00 per
share.
Your Company now owns 49.94% of the capital
the

additional 43 sidings, involving 6.1 track
in process of construction.

in the Manitoba and Alberta Districts.

Minneapolis, St. Paul & Sault Ste. Marie Railroad Com¬

were

Automatic block signals: were installed for 97 imies of
single ttacklifcthe 'OntaribDistrict bhd67inilcs Of ^track

stock

pany

stock

•:* advertisement

year

miles,

Company exercised its option
of the newly organized

your

of the

;

the

Marie Railroad Company

of $22,817,733.

rent liabilities

Minneapolis, St. Paul & Sault Ste,

total assets of your Company at the end of the

1951

•

* ■

•

,764^507
^ v-;

<-r

;...

■■

V-.

•

v^y--A'

THE COMMERCIAL & FINANCIAL CHRONICLE

j952

appropriations for new rolling §tock make pror
40 Pacific type steam locomotives, designed
primarily for branch line working, and, 14 Piesel switch.ing locomotives; 1,750 freight train cars and 52 work
units. The appropriations for, Ocean and Coastal steanrvships provide for the purchase of two ships from 4he
Government of the United Kingdom and for the con¬

Holdings
22,267

14.60

approaching Annual Meeting,

•for re-election:

10.44

.55

158

at the

of Stock

i946

The undermentioned Directors will retire from office

Percentage Percentage

.No. of

Holdings of Stock

of Stock

.Canada

Total

——Preference

-OrdinaryNo, of
Percentage

The

•vision for

■

Thursday, April 11,

They

are

eligible

•

Rt. Hon. Sir John

-United Kingdom
,

13,476

Other

3,506

96.47

*61.82

-74

.34

22.54

562

31.89

2.64

5.20

6.27

Countries—

struction of two coastal passenger steamers. The cost of
these vessels will be met out of the Steamship Replace¬
ment Fund which has been accumulated for this purpose.

26,987

47.24

18,605

and/.other British

United States

Mr. L. J.

Hon. Eric W. Hamber

Mr. Ross H. McMaster

27,781

57,854

Anderson, G.C.B., M.P.

Belnap

Mr. Morris W.

Wilson, C.M.G.

Directorate
Officers and Employees

Agricultural Policies
In the early years of your Company's history little
provision had been made for the development of agri¬
culture in Western Canada, and your Company adopted
the policy of establishing demonstration farms, and of
building up herds of high-grade cattle for distribution to
the farmers at reasonable prices to enable them to im¬
prove their stock. Substantial sums were invested in
these undertakings, which made no immediate material
return fo your Company, but which contributed greatly
to the growth and development of sound agricultural
-methods.

-:•'■■••

'■

■

•

■

In later years the establishment of Provincial De¬
partments of Agriculture and .the organization of Live¬

death

stock Breeders' Associations throughout the West

activities

individual
the field

owners

this

some

and it

brought
extent into competition with

was

decided to withdraw from

could be done without disturbance

'market conditions and without sacrifice of your

December, 1942.
Mr.

J'Z. "J.t

ment.,'
This

policy has

disposed of and the herds of Holstein and Angus cattle
£old at fair prices, so that your Company is no longer

•achievement.

His

interest

give him

wide

and

admiration of the

During the

able service as a Director of your

Directors reported that the Eastern Sec¬
tion of your Company's fnigfttiofr {project in the |?rov;had been transferred to the

Trustees of the Eastern

Board

Irrigation District, in accordance
under¬
of this
policy your Company has recently transferred the entire
undertaking and works comprised in its Western District
to the Board of Trustees of the Western Irrigation Dis¬
,

•with the policy of encouraging the water users to
take the operation of the system. In furtherance

trict.

accomplishments of the officers and

fiim

in the service of your

as
:so

in the

loss

Company and who

deliverance at the conclusion of the

enemy

death

period of

Major-General

Hon.

John

Sir

Anderson,

•G.C.-LE;, M.P., London, was appointed
vacancy

serving in the armed forces

their lives in the titanic

G.C.S.I.,

G.C.B.,

Their

specially

ever

remembered

For the

Directors,

D. C.

was

COLEMAN,
^

President, '

Meighen, C.M.G,

Montreal, March 11, 1946.

The Agreement under which the transfer was made
has been validated by act of the Alberta Legislature and

CANADIAN PACIFIC RAILWAY COMPANY

provides for the assumption by the District of the lia¬
bility of your Company to maintain and operate the sys¬
tem. The agreement further provides for the payment
of $400,000 by. your Company to the Board for the main¬
tenance, operation, renewal and repair of the irrigation
system transferred and, in addition, $20 per acre for all

General Balance Sheet, December 31, 1945

~&rea$ of

ASSETS
PROPERTY

Irrigable iana yincluded in .water agreements
as compensation for the assumption by the

Board of the

contractual

obligations of

your

Improvements

Your

Leased Property-

Stocks and Bonds—Leased

Companies

.Company's total cash obligations under the agreement
•amount to $533,800, of which $100,000 remains to be

Ocean

paid on April 1, 1946. * Your Directors believe that a
substantial annual saving in expenses will be effected

iby this outlay and that a sound basis for the future
perity of the district has been established.

CAPITAL STOCK:

Ordinary Stock

——

Company *

.for the delivery of water under these agreements.

LIABILITIES

INVESTMENT:

Railway, Rolling Stock and Inland
Steamships
_$ 841,233,381

transferred,

and

Preference

99,262,694

$ 335,000,000

Stock

—

Non-cu¬

mulative

137,256,921

Railway

" 133,481,665

—:

Coastal

Steamships-—

PERPETUAL

40,091,223

Less:

97,501,149
-$

pros¬

DEBENTURE

Hotel, Communication and Miscel¬

laneous Properties

Pledged

STOCK

___$ 327,067,729

___.

collateral

bonds and equipment obligations

1,211,570,112

472,256,921

CONSOLIDATED

31,629,500

295,438,229

OTHER INVESTMENTS:
FUNDED DEBT

93,669,000

Stocks and JBonds—Controlled Com¬

Passumpsic Rivers Railroad

Advances to

joint offer of your Company and Boston and
Maine Railroad to purchase certain lines of
railway and
•other assets and property in the State of Vermont and the

Province of Quebec,; as prQvided for in. the
agreement
*dated April 6, 1945, which received
your approval at the
last Annual Meeting, wiRS made arid

to Settlers

Deferred
•

Railroad Company-to

you?

lease will be for

Company.

The

a term of 999
years, will provide for a
.rental equal to the interest on any bonds or'other
.'finan-'

cial

obligations secured

.replace the existing
is to be cancelled,

Insurance

9,664,647

—

Balances

—

Accrued Fixed Charges

3,314,585
__

9,544,012

1,285,491

Unmatured Dividend, Declared

16,602,926

Other

15,826,541

Current

2,510,109

Liabilities—______

15,623,185

47,190,754
DEFERRED

fund

25,200,000

Fund:

LIABILITIES:

Dominion

11,122,713

Replacement

ment

46,166,215

Government

Relief

ASSETS:

Material

Agents'

and

Supplies

5,804,934

RESERVES AND UNADJUSTED CREDITS:

32,298,728

ahd Conductors'

15,486,672

Maintenance Reserves

15,756,306

Depreciation Reserves

Dominion of Canada Securities——

20,790,000

Investment "Reserves

Cash

45,713,753

insurance

T30i045,459
UNADJUSTED DEBITS:

•

Prepaid

•Unamortized discount

25,200,000

11,122,713

Reserves

5,188,998

Unadjusted Credits

J__

5,785,961

Bonds—

-x

Unadjusted. Debits—

332,533,201

229,363

PREMIUM ON CAPITAL AND

4,963,632

•

DEBENTURE STOCK

1,005,708

LAND

part of the same/transaction,

6,198,703

34,458,562

SURPLUS

PROFIT

AND

61,771,203

LOSS

BALANCE—_

262,772,828

that there will be submitted for.
your consideration and

approval

way

years

j miles.
,

•

Quebec,

approximately 32

The rental under the lease will be $24,000

TO THE

being an annual dividend of $6.00 per share on
4,000 shares of the capital stock of
Massawippi Valley
'Z'

•}

•'•c

/•%'

tG ea^AVe

+h^

■

®^ance Sheet of the Canadian

December 31

were

follows:

Company

ral,?alance sh®et, Income and profit and
t theLmanmal. position of the Company
'

accoiding to the best of our information and the

Montreal, March 8, 1946.

your

Company at

Pacific Railway Company

at December 31,

1945,

year endtag 0n that d«te *n<l other related schedules, and have compared them

•

p The holdings of thp" Capital Stock of

•

u^phruCpr^^>?fth^erf1ttnH^ieSf 0Tner^
the Coi«Pany at December 31, 1945, were verified by an examination of those secursaS cu^ifdy for the Company
lts Treasurer and by certificates received from such depositaries as were holding securities

Hrfltrn

the
*:

Vice-President' and Comptroller,
"

itipi

P+SSin aJS-S
Holdings

tSw

."
.1.

ERIC A. LESLIE,
'

CANADIAN PACIFIC RAILWAY COMPANY:

annum,

$1,605,895,632

SHAREHOLDERS,

per

^Railway Company.^;;'
*

distance

of the rail¬

Railway Company extending
,from,the International boundary to Lermoxyille, in the
of

<1,605,895,632

Company of

your

of Massawippi Valley

Province

assignment from The Connecticut and Pas¬

sumpsic Rivers Railroad Company to
the unexpired term of a lease for 999

281,528,223
' 3,707,306

Reserve

Contingent

•

$
___________

Balances

Insurance

•'

Miscellaneous Accounts Receivable
:

1,447,223
4,357,711

258,081,358
CURRENT

Unemploy¬

_______—$

Miscellaneous
•

said line of railway and will
thirty-year lease of the line, which

is also expected,

Traffic

JFund

Steamship

Other

•jft

'Lands and
__

Maintenance

Company, whose capital stock is to be acquired by your
Company, and there will be submitted for youi- consider¬
Richford

1,513,178
on

5,248,725

—

Miscellaneous Accounts Payable

18,796,593

ation and approval a lease of the line
from Newport &

Net

Unexpended Equipment Trust. De-

If, as is expected, such approval is obtained, the line
of railway extending from Walls
River, Vermont, to the
International boundary, a distance of
approximately 69
miles, will be conveyed to Newport & Richford Railroad

5,803,641

Unsold Lands and Other Properties

Application has been made to the Interstate Commerce
.Conunission for its approval..

JPay Rolls

Audited Vouchers

—

Payments;

waiaccepte&by The
Passhpapsic Riyprs SaUroad ^Company.
r

•

Townsites

;

47,285,852

Mortgages Collectible and Advances

LIABILITIES:

69,743,699

pontrolled and Other

■Companies

..Connecticut and

_______

Miscellaneous. Investments——

Company

The

(

CURRENT

panies

Joint Purchase of the Assets of the Connecticut and

and

honoured.

member of the Board to succeed Major-Gen-

eral Frank S.

struggle against evil and tyr¬

will

names

Director to fill the

Reginald McKenna, P.C., and Mf, Edwin G. Baker
a

tempered

regret that your* Directors record that

occasioned by the death in 1943 of the Rt. Hon.

appointed

was

engaged under direction of the British Admiralty, lost

appointed in October, 1915.
Rt.

war

that three had died while in
7

658 employees,

30 years, having been

over

em¬

interned

were

hands.

It is with deep

Meighen, C.M.G., who rendered valued service

Director for

Company.

deep regret that the Directors have to

severe

felt for those

was

The satisfaction occasioned by their

by the Japanese.

to render valu¬

report that since the close of the year your Company has
a

■

much anxiety

war

only by the knowledge

Frank S.

proud

ployees who in peacetime had been sent to the Far East

knowledge of conditions associated

with industrial enterprise enabled

It is also with

are

community welfare was

place.of distinctive leadership, while his

accurate

Your Directors

join in these tributes and to express their particular

employees of your Company.

noteworthy and his relations with labour were such as
to

rajlway workers of all ranks in the performance

of their vital wartime tasks.

hon¬
ours for his contributions to the science of metallurgy
and electro-chemistry; his development of the great
plant at Trail, B.C., was recognised as an outstanding

The

In 1935 your

ince of Alberta

nadian

Canada,

citizen

distinguished

anny.

Engaged in farming activities.
r

Blaylock,

suffered

been fully implemented.
The
Lethbridge and Coaldale have been

now

,farms at Strathmore,

Many tributes have been rendered to the efficiency
public responsibility displayed by Ca¬

and the sense of

-achieved international renown and received many

invest¬

Blaylock who had been a member of the Board since

.these

deep regret that your Directors report the
November 19, 1945, of Mr. Selwyn Gwillym

It is with

Loss Accounts and the other related schedules are properly
at December 31, 1945, and the results of its operations for

explanations given.to

•

.us and as shown by the books

PRICE, WATERHOUSE & CO., Chartered Accountants.
*

•

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

163

Volume

so-called

Banking atthe Crossroads
factors

before

(Continued from page 1926)
?
figures.
what must be done to maintain
We as
Unking in ■ this V country as a

enterprise, and thereby to
Enable the private enterprise
system to continue to function in
business and in industry.
I suggest that,, first of all, the
banking business of this country
belongs in the banks, not in the
credit agencies of Government,
and thereby on the backs of the
taxpayers. We must not sit in our
chairs on the defensive, moaning
and wringing our/hands at the
competitive activities of the gov¬
ernmental credit agencies against
us.
We' must get out of our
chairs and go out and ge.t such
of this business, as is or can be
made bankable, and bring it back
into the banks where it belongs..
nrivate

look

the

banks

can exist only as
enjoy the confidence
of the peqple.

long

must

use

the

soles

our

shoes

and the

seats

our

trousers less.

merchandise

doing

We must go out and
our

credit,

and,

must learn to be re¬
sourceful enough to adjust our
credit methods to the require¬
ments of industry.
so,

develop a

banking business impose upon us

obligation

the

•

forth-

rightly and constructively.
Our
first obligation, of,, course, is to
our depositors, and has to do with
handling their deposits in such
manner that they will be availa¬
ble to them when they want them,
and second only to that obligation
is that of using our deposits and
other resources in such a way as
to best contribute to the private
enterprise economy of this coun¬
try

implementing
operations of

credit the

industrial

and

ness

through
busi¬

our

enterprises.

Please note that I have urged
that
our

we change from time to time
methodssof providing credit.

I have not in any way

suggested

that* we change the sound basic
principles of the lending of money.
1 think that all too frequently
of

some

our

people

in. banking

methods. and principles.
Also that in many cases they ac¬
confuse

cept the plethora of qualitative
,and quantitative analyses of credit
and' a myriad of ratios as prin¬

ciples. We must
with

our

learn

to think

brains and not with our

prejudices and biases.

The

begin to explore the figures. Re¬
gardless of how good the figures
are, dishonest or inept manage¬
ment can get you, as a lender,
into trouble; On the other hand,

great, artists have by

all
niques in art, and yeftheir works
are
recognized- as true fri by
means

worjld-wide acclaim. -A real artist
can

make

work of art out of an

unglamorous; subject.

■;

Credit, to* my way of thinking,
a boiler-shop business, and
its goodness cannot be determined
in the
makpgr pr ;Upon review?by
a lot of
ratios-r-any more* than -can
is not

the great

engineering works Jbd

determined

;

accurately

ap¬

praised by superimposing on Jthem
the
in grammar school, I think that
no one would test ther greatness
of Lincoln's

Gettysburg address or

of Mr.

Churchill's defiant speech
"on the beaches, in the fields, in
the
streets"; by
testing
them
t

against the alphabet, also learned
in grammar school. The lending
of money is an exercise of human
judgment,- which: is, always has
been and probably always will be,
a fallible
thing. We have all seen
2 to 1 ratios
get us into serious
trouble and losses, but likewise,
we

have also

seen

much less than

2 to 1 loans serve their real
pur¬
poses with

distinction, satisfaction

and profit to all concerned.

The

of
fact,—the
very
foundation—of
any credit risk lies iri; the integrity
corner

stone, as a matter

and the know-how of the manage¬

ment of the borrower.
lender has

favorable

Until the

judgment

js to these: two basic qualities? I

the

While

this subject of credit,

eral area of the satisfaction of the
pent-up
demand
for
civilian
goods.
Our bankers, I believe, are aware
of this fact and are diligently.at
work implementing the education

fications

individual to

our

Lawyers, doc¬
tors, dentists, osteopaths, chirop¬
ractors, veterinarians and even
barbers are required to submit to
tests of their

qualifications before
entering practice.
responsibilities of banking
that it requires for its
proper
performance men whose
integrity will not only match or

bankers. You may

not realize the fact that when the

moved into China in
of the first things
they did was to develop the opium
habit on a great scale, for the

Japanese

strength,

The

one

such

are

that

out-do

who

but

the

stand

full time
Let

know

business.

bank is not

wife"

"Caesar's

also

and

under¬

Running

part time job. It is

job.

know

our

jobs—then let

stand up and be counted.
In an effort to offset the effects

of Government guarantee and to
of reducing to bring to bear on requests for
credit collective talent and. ex¬
subjection great numbers of the
and
the
facility
for
Chinese, who, on their own, as X perience
credit risks, banking
know from having lived in that spreading
in this country, out of its own
part of the world, are normally a
thinking and out of its own re¬
"Man's Faith in Man." What is. stalwart people.
We in banking must learn again sources, has created 48 bank credit
faith?
Faith is the corner-stone
to stand on our own feet in the groups which cover every area
on which our forebears developed

great country of ours.
impelling spiritual
force which led over eleven mil¬
lion members of bur armed forces

and built this

Faith

to start

that

gt a very low point in the

late war and turn the very serious
reverses which we
had suffered

pretty much all over the world,
into

world-wide

and

unques¬

victory.
If we
succeed in winning the peace, and
thus, in some degree, justifying
tioned, military

obvious

field

purpose

credit

—

coura¬

job, and also to do it intel¬
ligently.
I suggest that one of our most
prevalent faults today in banking
is that we are too smug—that we,
on many occasions, lack the pa¬
tience and the will to take a credit
geous

request as presented to us, and,
—drawing on our experiences in

United

these

States—one

which you have here in the State
of New
York.
To my way
of

their

what is

lending

officers.

Now,

banking doing about all of

this?
Those of

em¬

tions of banking.

siveness of

economy

perhaps tends to

open

opportunity is wide

of the Government guarantees

or even

for the banker who has the in¬

bark upon the duties and obliga¬

commercial loans. During the era
of
war
production there were

ty will come when the
levels off

I must mention the vicious effect

with

the

who

are

associated

associations
have ^undertaken to assemble the
facts and figures in such a way
that

banking

can

from

time

realistically tell the members of
the Congress or their committees
the "Facts of Life" in banking.
What we have done, what we are

planning and educating ourselves
to; do is to correct the impresion,
which has gained
considerable
currency,
that banking is not
,

forward-looking.
Banking in considerable part is
doing a fine job today, but we are
not going to stop until all of bank¬
ing is awake, alert, up on its toes
and doing its part.
We are even going to try to

proselyte old man sourpuss of the
"Sourpuss Bank & Trust Com¬
pany."
If we cannot proselyte him, we
shall let him find out for himself

and; in hisown way that the devil
takes the hindmost.
Then there
will be only

14,999 banks in the

country.

Now, if I may, let me turn for a
few moments to this much head¬
lined little

businessman.

Curi*

like ously enough, we hear most about
him from people occupying politi¬
If an opposing player gets by the cal offices. He i s a great headline*
line, or through it, he is still faced getter for' them and they live by
with the secondary defense—gen¬ headlines. To read and hear what
erally the backs. This secondary they have to say, we would almost
defense corresponds to the cor¬ be forced to the conclusionf that
respondent banks in our banking this little businessman is someone
thinking the local banks
the

linemen

are

football

team.

business,—undertake to
people system. If the opposing runner suc¬ who, like "Venus, or Minerva, has*
ceeds in getting either through or suddenly sprung full-grown.
the casualties of one million of find it simpler to just say "No" as
around the line of play and also
The little husinessmaivisaield
politely and tactfully as they
our manhood in this past war, it
by the secondary defense, he is as is this countryand ~ itsante-'
will be because we shall have know how.
still faced with the problem of cedent colonies. He is the man
In my own operations in our
developed the kind of faith which
getting by the safety man—gen¬ who made this countrygreat over
led them in great numbers to the own bank which cover our busi¬
erally the quarterback, who plays the years. Dp ypu realise thgt, pf
last full measure of devotion—the ness in a considerable part of the
well
behind
the team.
In
my
our, 15,000 banks in, this country,
giving of their lives. It is just un-1 United States,—and we have no
simple analogy, the bank credit some 70% have; lending limits pi
thinkable that we will not do this. loan, discount or credit commit¬
group is that quarterback or safe¬
$15,000 or less and that these
This faith must be an unconquer¬ tees,—I have had for a number of
able

belief

hearts

rooted

our

very

and souls—a belief in our

our

own

make it bankable. To many

two rules for the nine lend¬
ing officers who work with me.

years,

country, a belief in the pri¬

First, any proposed loan that any
system,, which, two of them agree should be
over many years, has developed in.
made,
they
may
go
directly
this "country the greatest and most ahead and make.
In the doing
successful economy gpd tlie high¬ of. this, they may talk it over
est standard of living on the face with me, or, not, as they choose,
of the earth—a belief not only in second, if all nine of them should,
by any chance, agree that a loan
ourselV^.bnt a
.to
of
fellow beings who are worthy of should not be made, they can,
it.
J"' V'/'V
4
; upder no circ\iinstances, spy "No"
Now,. as " to faith, in
credit to the proposed borrower until
—basically it m tbat-S^m^ kmd pf they hav$ talked it pyer: with me.
faith, that same kind of belief—in These rules have worked very
the
people
with • whom
we well, and are, at the present time,
I think
deal—rfirst that they are people in full force and effect.
of integrity and that they are peo¬ that two heads are better than
ple who have a will to repay their one, but that twenty heads are not.
obligations, and, secondly, that Smugness—lack of patience—un¬
they are people Who have some willingness to explore a proposed
"know-how" or junderstanding of loan—the tendency to be guided
the business or industry in which always by first impressions—are
they are engaged.
Thirdly, our not, I think, sound, nor in keeping
belief. that the uses to which, they with our great heritage in bank¬
will
put the proceeds of the ing.
credit which we extend will serve
Let us talk a bit about banks
the economy of. the community and bankers just among ourselves.
own

vate

enterprise

and of the nation.

have

about

15,000

banks in

man.

banks

know

fairly

ac¬

unnecessary

located in almost every

happen to be Chairman of the
Bank Credit Group of New York

town, village and hamlet of this
country?
The banking business
City; which has committed to it itself is "Little Business" Incar¬
101 million# of; dpllars.Jrv the nate. Banks have grown up, not
Second Federal Reserve District
pnly with liftie. business, but" fe
I have not yet encountered jg
dependency

proposed Jeen 'from

local banft

which lias not been dealt with in

upon little -business.
Almost every iormerlittlebusi¬
in this- country, ,which

ness

cooperation -with the local bank, grown to greet stature, -has done
either by some of the members of
SQ
the hank bredit: /grpup:in their
the rpad, of Its banks. What non¬
individual capacities; or else by the sense for these people to say thgt
bank credit group itself,
// /?
banks haye ajo interest in the
I urge that, regardless of the little businessman!
size of your hank or ol .the epm:''.^Themor^ty.-rate in little bus¬
munity in which it is located, you iness
has been extraordinarily
do not turn

aside, or turn over to
governmental credit agencies
reguests for credit without first
talking them over with your cor¬
respondent banks or the;bank
credit group serving the area in
which you are located—always as¬
suming, of course, that you, as the
banker of the proposed borrower,
have faith in his integrity and his

high Jn this country for many
Tbe iigures pre available
a period of a great many
years tp gnyone who will take
tbe;3rpable to look them up. He
thinks bis trouble is credit. Tim
outstanding feature, of this great
mortality is:that It has been
caused, in very great part, by in?*
aptitude or inadequacy of man*'
"know-how." These two attributes
agement in small business.
are basic in any credit risk.
;

our

years.

over

Let

many

are

also

this idea of
I do not mean to deprecate in this country. In 1920 we had over
thinking of a "risk loan" as being
any way the educational advan¬ 30,000.; In all of the world out¬
a bad loan. Banking is a risk busi¬
tages of ratios to the young fel¬ side of the United States there
ness.
There are many forms of
lows starting to work m the credit were only about 1,200 just prior
risks other than banking. JEvery
departments of our banks,—any to the war.
business indulges in risks in its
more
than
I would decry the
For my part I do not believe
educational advantages of learn¬ that a bank which cannot make a operations every day. Every time
we
walk across the street, we
ing the alphabet and the multi¬ living in the banking and fidu¬
take a risk, but only rarely are
plication
tables
in
grammar ciary business justifies its ex¬
we run over by trucks, street cars
•school. What I do decry is the istence.
There is a very consider¬
or taxicabs, if we have our eyes
idea,
which
many
have, that able amount of banking business
open and our wits about us.
credit—which
is
a
matter
of in this country.
I do not know
Now, I have talked a good deal
human judgment—can be
dealt whether there is enough to pro¬
In order that
with by ratios, any more than that vide a living for 15,000 banks or about risk lending.
the designing of a bridge can be not.
My suggestion is that if you may not think that I advocate
dealt
with
by
multiplication those of us who want the banking this without any knowledge of
tables or the alphabet.
business would gird our loins find Realities,
let me say to you
It may well be that I do many go; out and get it, real banks end What" you all well knowj namely;
that we have been in a rising
things backwards. Certainly, in bankers will then have it and the
economy since the late summer of
dealing with the matter of credit, other banks will have the service
and
the
Government I93& Jn my bumble opinion? tt
it has been my practice, for a Jong charges
bonds/ By .that meahsf I think has required real genius _to make

time/ to first satisfy myself about
We will tHeh
As a matter-of
fact, in my own its basic factors—namely, integri¬
Practice, I explore these two basic ty and "know-how"—before 1 curately how

thinkthaftjigures; j^an! inpihingi

turn down somewhere in the gen¬

Our

have

tegrity, the "know-how" and the
intelligent moral courage and the
will to work to do a great job
for himself, for his bank and for
the banking profession.
an honest competent management
can keep you out of trouble, with¬
Banking is unique in that, while
it is virtually a profession, there
out
possessing
great
financial
are no required tests of the quali¬
substance.

the

of -this we - must
resourcefulness and an made
boid to tell the State super¬
intelligent jnoral courage which
visors of banks a few weeks ago
will enable us not only to live up
—their examiners may have to
to the birth-right of private bank¬
get some bathing suits and take
ing in this country, but to adjust
some
lessons
in
swimming, in
our credit methods to the require¬
order that they may better under¬
ments of our clientele.
We must
stand and appraise what we are
definitely get away from any in¬
trying to do.
flexible 2 to 1, 90-day note, or
Now, let-us talk about the sub¬
nothing idea.: We must also rec¬
ject of credit. The best definition
ognize that" by clear inference
of credit that I have ever seen is
our
repective charters to do a
doing

the

banks

country.

all know the old story of
girl who
asked,
"Mother, many instances in which this was
Mother, may I go in to swim?" justified, to some degree. On the
The
mother
replied, "Yes, my other hand, there were very many
darling
daughter
hang
your instances where it was not justi¬
This Government guarantee
clothes on a hickory limb, but fied.
don't go near the water." We, in of our commercial loans was one
the banking business, must learn of the greatest opiates which has
It dulled
to go confidently into the water- ever been administered.
but, in order to do so, we must the thinking, weakened the moral
know
how to
swim, and—as I courage and sapped the aggres¬
You

1953

bad

loan

stop

during that period.
lending abili¬

The real test of our

tOve^ the "period .of the■ P$st
forty years, the medical/profes¬
sion and research in medical lab¬
oratories have increased longevity
of human life about 15%. This has

.hoi Seen the Sasa^Jw business
life. The average life of a business
enterprise in this country is still
between
and 6 years, with the
greatest percentage of failures in
the first three years. In my opin¬

ion, the next great forward step
in

the economy of this country.
a substantial improvement

will be

business man¬
agement. What a magnificent and
inspiring thing it would be if our
banks would bestir themselves
sufficiently to become an impor¬
tant factor in implementing this

in the adequacy of
,

accomplishment!

We have many

which
business—and indeed,
medium-sized businesses as well

facilities in this country to
these small

(Continued on Page 1954)

Banking at the Crossroads

Securities Salesman's Corner
By JOHN

BUTTON

for granted. Some¬
business have
entirely different ideas regarding investments than we carry -around
in* our heads from day to day. Sometimes we are too close to our
-business AND WE THINK THAT EVERYONE ELSE IS ^ WELL
INFORMED REGARDING INVESTMENT MATTERS AS THE PRO¬
i It is never good policy to take anything
times we forget that the people with whom

we do

•

FESSIONALS
«
V1 Take Shis'; matter ^interest rates.
account interest is down to levels of from

We all kiiow that ^savings
1 to 1%%. We^also imagine
that most people are aware of this fact AND THEY ARE. ^ But what
do we imply when we offer an investor a return of from 4% to 5%.
Tq those of us who are familiar with the ^situation, we Imow that
there are still many attractive common stocks that yield an income
return at this attractive rate. We also know that for all practical
purposes the comparative degree of risk which is involved in some
of these particular stocks, is slight enough to warrant their purchase

TIME. But here is where we may sometimes be
We take for granted that some of our customers,
or our prospects. may also have the same viewpoint on this matter.
A HereIs a specific* instance. It happened just this week. During
a discussion of certain securities that were offered by a salesman,
he mentioned, to his customer that ihcome returns of around 4y2%
could be securedr through investment in the stocks which ^he: was
offering. This remark was made after he had emphasized the low
rate of return available upon municipal bonds and bank accounts'.
The customer was well aware of these low interest rates but the
reactlon to the opportunity for obtaining about 4%% was something
like this.
Was there not too much risk in such an investment that
paid 4V2%—and if the banks couldn't do any better than iy2%, how
was it possible that a good investment could pay about three times
as much income? •
A- yf
■
■
.
;
Those of us. who are in the business know the answer to this
question. It is not so with many of our customers. In this instance
the salesman made the explanation very clear and after quite a long
talk about how his firm* spent time and effort in investigation and
research, these opportunities were uncovered.
He mentioned also,
the legal limitation placed upon banking and eleemosynary institu¬
tions which compelled them to compete for a few restricted issues
that were legal for the investment of their funds, thereby driving
prices upward and interest rates down. Although he made his point
AT THE PRESENT

fooling ourselves.

In .the
become in a sense the general
words^of General Georep
(Continued from page 1953)
practitioner, the father confessor, Patton, one of the greatest tmon
-rcan turn for first class mana¬
leaders of aB time, "And
if you! please. Every lousiness re¬
U y2
gerial advice, It is a curious fact
are going to
lead,. you must *2?
that so few of them do it. It is a gardless of its size has A , bank out in front
and^ead, and not si
account somewhere
with some
good deal like the horse—we
bank. Bankers must develop some behind and try to push » It is!iike
can lead him to water, but cannot
a piece
of spaghetti, y0u cahrmt
make him drink.
There is an degree of proficiency as general
stand ; behind it and push
it, yOU
amazingly fine opportunity Yight practitioners in respect to prob¬ must
get out in front and niili ^
lems of business health. Most of
now—when so many people are
with you. We would do
well
starting
new
businesses, and us, through long experience, can;

others, with improvident manage¬
ment, are onty barely able to

struggle' along in their existing
businesscs—rtO! induce these peo¬

do at least a disregard and put aside the
doleful and drOary ideas of
diagnosing of our otvnv
The banks in their Contacts with crackpots and the enemies of or
business of all Jkifids. inUst under¬ yate enterprise,- which has made
take to develop within themselves this country what it is today and
the ability -to become general to develop the will to go out And
do this job, and then to
get out
practitioners, to continue the anal¬
of our chairs and
forthrightly and
ogy—business counsellors, if you
should be able to

little

of the op¬
improving some
their
respective managements with a
valorously go and do it.
view to raising the average of the please.
vTheh wheuyou encounter spe¬
skill of the whole management in
cific weaknesses through diagno¬
any concern, large or small. Every
sis; the thing to dd is * to 1 turn Sackman Named
one of these concerns, except the
tax evaders, -/who fuse currency, your customers 'to the \fhen who
banks with sdme bank. We must aire highly skilled in their respec-; Of Life Bureau of
ple to take advantage

portunities

for

one or more

of the phases of

Chief

know tiVe specialties,,
This kind of service; would ;by<
no means
be an unselfish thing
Superintendent of Insurance
ognize the weaknesses in manage¬ for banks to do, or to encourage
ment and to urge,these people to their clients to do, because the Robert E. Dineen Ahnounces the
make. it

our

business

N. Y. Insurance tiepi.

these clients of ours better, to
havethe *talent ourselves to rec¬

and seek the benefit of

skilled

advisors in that particular field.
As to those enterprises in this

of management,
better the credit
which is in
definite' interest of com¬

appointment of Julius Sackman as
chief of the Life Bureau of the
York State Insurance' De¬

better the degree

obviously

the

New

structure of business,

partment effective April 1.

country—regardless of their size the very
—who are seekers of credit, an mercial banking.
This would not contemplate, in
educational program such as this
would vastly improve the whole my way of thinking, the urging of
this line of action only on people
credit structure of the country.
As to those enterprises which who are seekers of credit — it
are hot seekers of credit, such im* should be urged oh all of our cli¬
provement in management will ents. There is a fundamental reason
enable them to more adequately for this—because the better the

Sackman has been

•

and

profitably discharge

their.

obligation to the economy
industry they may be.

in whatever

Aug. 18, 1945. Mr. Sackman joined
the New York Insurance Depart¬
as an Examiner in 1923. He
examined nearly all of! the

ment

has

domestic

life

insurance

compa¬

nies in this State and has riiade

quality of management in bus?
iness, the better the product, pre¬
sumably the lower the price, the
broader the market, the greater
the employment and the higher
the prosperity for alL In reality,
this goes to. the fary core of the
American philosophy of achieving

special examinations in behalf of
the
Insurance
Departments of
California, Missouri and Iowa.

' VHow many of your clients do
It is better to anticipate an objection than be forced into answer¬
Mr. Sackman is a graduate cum
you think really Jknow their oper¬
laude of New York University
ing one. Objections are part of every sale that is made.
But it is ating costs and are not just guess¬
best to eliminate-being placed upon the defensive, and that is where ing at them? ' *
School
of
Commerce, Accounts
./
you are if you have to justify a set of conditions, like those which
and Finance with a degree of
How- many of your customers
presented themselves in this case* It; would- havebeen-much better really know and understand the higher living standards through B. C. S. During World War I he
if the salesman had brought out the fact that interest rates were low,
purchasing methods in their in¬ higher standards of productive was a Sergeant in a machine gun
but that it was still possible to obtain a fair return because of his
and
served
overseas
dustries — or in the industries efficiency, a principle which is battalion
firm's ability to uncover attractive investments even in these times
which form the sources of their only possible in a democracy, and, with the famous Lost Battalion.
of low return on investment. He could have amplified his remarks in
is the very essence of a private- He received the Purple Heart dec¬
raw material supplies—and there¬
this connection by stating that good securities often sell below their
oration.
Prior to joining the In¬
by benefit from the savings which enterprise economy.
true value due to circumstances that have nothing to do with their
This trend toward the improve¬ surance Department in 1923, Mr.
come with a knowledge as to how
intrinsic quality; that these securities sooner or later are uncovered
to conduct their purchasing oper¬ ment of standard^ and effective-: Sackman had engaged in the prac¬
by astute investors axid eventually reach a level where they too are
tice
ness in business management must
of
ations?
public accounting and
selling on a basis where their income return is in line with their true
How many of your clients have be urged and implemented. And served with the Internal Revenue
worth; A few ranarks cohld also be injected regarding the fact that
any justifiable reason, instead of I hold that in this effort the banks Department-Income Tax Unit as
it is usually not the most popular names of securities that represent
guesswork, for the amount of in¬ should equip themselves to lead a Field Agent operating from the
the best opportunities for investment; and he could refer to the
and to cooperate fully with busi¬ Washington, D. C., office of the
restricted list of popular bonds that have been bid up to a point ventory they carry—which, if too
he did it the hard way.

■ :

where their income return

;j'f

acting chifcf

the Life. Bureau since the death of
Dillon F. Broderick, former chief

the

ness.

addfed cost and market hazard of

look

large,

is now very low.

burdens

with

them

Business

the right to
financial

has

Treasury Department.

the banks for

In 1921 he

employed in the Underwrit¬
By.handlimgihis matter of income return in such a manner the
v
'
,n leadership. - .JWe;mus| assume this ing Department of the Maryland
salesman is only stating facts, but he is also" showing why Ascertain carrying it?
How many of your people have ■responsibility, <)r goverjriment will Casualty Company.
course of action is justified.
He takes, the positive, approach and he,
a really full understanding -hi thef' Assume 4t;iby;ohr default..'
eliminates a dotibt in the mind bfhig^i^fr&r. You may say, this
A very great deal Of thought
s^ms to^e like a far fetched case, but it happened just the same. problems in selling their products?
How many of them know their has been given in our own State
FHA Urban
It/is best toHake nothing for granted. Sbme day when you are talk^
markets? How many of them un¬ to the practicability of ; a .State¬
#ng to one ofyour customersabout the nice fat return of about
Establishment of an urban rederstand the value and the methods wide laboratory job on this sub¬
that is obtainable on some special security you are offering (AND
developmeht libit^within the Fed¬
YOU WILL THINK NOTHING STRANGE ABOUT IT) that customer of proper merchandising, proper ject of inducing: business to take
eral Housing Administration to
yumy be thinking**! wond^'tfvit's too risky a proposition; after all, packaging, etc.—knowledge of all advantage of 'the many means develop means of FHA participa¬
the savings batik only pays me 1%%."
We know why you can still of which would tend to increase available' to it to improve the tion in the rehabilitation of
their volume of sales and spread quality of •management.
My best
buy a pretty fair investment on a 4 or 5% yield basis, but some of
American cities was announced
their overhead costs, to their defi¬
our customers dotft know very much about bargaih huntinif > :
guesswttaid; be that this wilf in
nite Advantage?
all likelihood be initiated by se¬ recently by FHA Commissioner
How many of your clients know, lecting a medium«-sized eityih ptfr Raymond M. Foley. The unit was
or even reasonably understand, the. State and
working out a highly organized hi realization that cities
■

was

•

Unit

•

Chase Candy Company
Common Stock
Prospectus

request

H£RKt€K,WXDDELL & CO^lNC*
51$ UBERTY STREET, NEW YORK 5, N. T.

in increasing numbers are com¬
implications of their income taxes intensive and forthright appeal and
ing more and more to recognize
are thereby enabled to take
performance with the businesses
the
importance of long-range,
fully and wholly legal advantage in that city.
over-all
redevelopment
plans.
and benefit of that knowledge?
The result of that effort, which
How many of your clients know ban hardly be less than successful, Furthermore; it is stated, a con¬
siderable number of cities have
anything about a budget or a cash Would provide the urge for busi¬
recently been authorized by new
ness in other cities and communi¬
forecast?; ;v*
'
state laws to redevelop blighted
The medical profession devel¬ ties in New York State to under¬
and slum areas with the aid of
take the same educational steps,
oped medical laboratories on the
private capital, as well as with
premise that it had a greater obli¬
W&, in ftie private banking sys-: i
public funds. Several requests for
gation to the human race than tern ofthiscountry,have invested FHA
participation ; in planning
just easing its pains, and so de¬ capital in excess of ten billions
redevelopment
programs
have
veloped the whole, trend- toward Of dollars. We have deposits in been
received. *- f
'
preventive medicine, with the re¬ excess of one hundred, and fifty
The FHA urban redevelopment
sult that the human life span has- billions of dollars, and we have
and

increased

from

100

deaths

per

100,000 in 1921 to 96 per 100,000 in
1943.

Tuberculosis

was

est death rate in 1944.

Owr-the-Counter Quotation Services1^
For 32 Years

in the aggregate about 75 milliorr

depositors.

at its low¬
'

•

Most people gd to a general
practitioner, who points the way
to a proper specialist.

Banking in

this

country

the years has given a
count of itself, and

over

splendid

ac¬

has had A
great part in the development and

group,

which will work

with the Land and

closely

Governmental

Service Branches of the

Office ot

Housing Expediter,
consists of members of the head¬
the

National

quarters Atad^ in

Washington, as

follows: Donald Alstrup,

Adminis¬

building of this, the greatest na¬ trative Officer,'Chairman^ George
Parallel in business; Example, tion on the face of the earth, and Bremer,
Zone
Commissionei,
the cost accountant—his name is will- continue to do so if we in Robert
Van
Denbergh, Under¬
banking possess the moral cour¬ writing Supervisory W. Stanley
legion. They are scattered all
over the land.
Like every other age, or guts, if you will, and the Newlin,
Administrative Onice,
•

QUOTATION BUREAU, Inc.

find them?

Established 1913
43 Front Street,

the

New York 4, N.Y.

San Francisco

Chicago5

calling, - some are more skilled
than others. Where iJ6 they go to

•

■

IK*

The banks would be

logical place—either having
knowledge or knowing where

talent to exert

some

real leader¬

ship; in Uiese troubled and
fusing times.
.

Rental
Housing
an<*
Management Division; Stanley vv •
Kadow, Associate Director, Divi¬
field, sion of Research and Statistic ,
con-?

Let us, at least in our own
give active evidence of this faith J. Don Kerlin, Administrative Of¬
to find out.
I and leadership, which are so sadly ficer, Title I Division, and Burton
We-imthe banks must learn to
lacking in so many quarters todays pf Bovardr General ^Counsel.
the

■

can
trmma

be a great future

ahead for the food in¬

JL dustry, for all industry, and for the American people.
Every material requirement for sound living is at hand.
We

are

rich in the basic

energetic people, and

resources

world—if we will have it

utilization of these

living for

so.

live off what

productive land,

capacity to create. This combi¬

nation is the seedbed of better

Because

resources

us,

and for the

produce and exchange,

through economical and in¬

only way we know to contribute to better living for all.
is

continuously produce what we want, and raise our levels

of living to new

We further believe that we, as
serve

the

tomers

common

lasting

means

vital to all people.

HiCt Mrts us

tho

incentive which fires
As

people, it is

men

our

to new achievements.,

responsibility to produce what we

need and want.

continuing toimprovo:

is vital to the

Rewards of production must be divided

■

We believe in the creation of human satisfactions
as

the

well

production of things. We believe that General Foods

cannot, and does not, stand alone in its effort to serve, and
we

align ourselves with the great majority of men
are

With courage,

willing to work for

better fhture.

imaginationj and productive work

can

help sustain the American promise and give nurture
to the human urge for better living. The
goals are jobs,
freedom, and the greater dignity of the individual.

;

As management
to

management, can best

equitably among these group$-~not monopolized by any
one of them. %
;,
;
1
/ 1
&

of getting more from pro*

ducing less. Competition: we want dnd must have; con-

founding and growth of productive enterprise, and thus

therefore

heights.

in which

interest of workers, owners, and cus¬

ofGteneM

and women who
There is

manner

production and distribution of goods and services.

gigantic enterprise with 140 million

partners. Only as partners, working smoothly together, can
we

by the

administer the affairs of this company.

We believe that each of these 3
groups

creasingly, efficient production and, distribution is the
This country

to demonstrate these beliefs

of General Foods, it is our responsibility

provide suitable compensation to our employees and to

the

owners

with high

of the business, and to

quality at fair prices.

We believe in
woman,

high standard of living for every man,

PRESIDENT

and child in whom good citizenship resides. We

Reprinted from the annual report of General Foods Corporation.

b$<sve ifigbbd jobsand; st$iHtybfen^
We believe it is the
ment to

chairman

satisfy our customers

build

responsibility of business manage¬

opportunity for the man who wants to work.

We believe in basic human values, and we are endeavoring

This report tells the story of a year's work, the problems en¬
countered, and the progress made in 1945. You may find it in¬

teresting even if you are not a stockholder or an employee* We'll
be glad to send you a copy... just write to General Foods Corpo¬
ration, 250 Park Avenue, New York 17, N. Y.

FINANCIAL CHRONICLE

THE COMMERCIAL &

riod and

111

must and can be

now

lecnnoiogicai progress of
the

few. years'.

Here is another big market.

met.

We have

long

li<S 1

market is"*-to be new things which the
V
''-.'K'
'
"'-"'it'
found in the foreign demand for people will,want;
they
not prove unduly burdensome or Everyone sensed the need for ex¬
(Continued from first page)
American productive machinery. our new industries
of the futurp
duction or productive capacity. ruinous if it is paced by a pro¬ pansion; there were millions of Aside from needs for rehabilita¬ Thentoo it
must be
men seeking jobs and the people's
remembered
To my way of thinking all of portionate or bigger growth in
that the new
processes and
wants were high, but private in¬ tion, which are enormous, almost
new
these points of view represent economic productivity.
everyone familiar with conditions raw materials now
vestment did not respond. While
available Z
false guides to sound policy be¬
in the world outside this country American industry are
Production Will Lessen the
the reasons for this were many,
capable If
cause they ignore the basic truth
reducing the real cost of
Burden of Debt and the
one
of the
most important of agrees that there is a real op¬
quite 3
that only by full production can
portunity for rapid industrializa¬ large number of familiar
Threat of Inflation
them was the psychologically de¬
goods
we in fact attain full employment,
tion.
Foreign industry needs to and this in turn means wider mar
Here is a lesson of tremendous pressive after-effects of the most
raise the real income of the na¬
:

•

Still' another

'„■*

•

A^ri°

#>>

One

Government

our

values in modern times.

the next few years.

offi¬

produce

are

fully

economic
The last

witnessed a great
resurgence in the values of many
of the properties, loans and se£uritifes CWhich had suffered :sfc;
greatly in the depression. The rise
in
real
property and' security
prices has lifted many bonds,
loans and investments held by in¬
vestors to a point where they are
no
longer pressing problems of
liquidation.
Again, many of the
productive, plants which indus¬
trial organizations built in
the
optimistic twenties consti¬
tuted excess, capacity until the
war f)ut thCm to active use. These
factors had a severely restrictive
five years have

effi¬

and

deflation

vicious

import for the United States over
To the extent
that America's great potentialities

provide the substance of
rising standard of living for our
people.
tion and

cials said recently that he stood ciently exploited, the problems
for the people first and for prop¬ connected?: With tf%pi&liCifdebt,
erty second, implying, that there the real btirdeif bf thd" debt and
is something bad about property; the threat of inflation Will be
Yet, the author of that statement greatly lessened.v
If we will but capitalize upon
knows as well as the rest of us
that property creation is the very the forces making for expansion
essence of economic progress and in the system of private enterthat in this age of mass produc- prise—which has in times gone by
■i tioh a continuous increase iri cap¬ raised the^Ametican standard of
ital investment—in property—is living to a point Where it is the
absolutely necessary to a rising envy of the whole world—We can
standard of living. There is no raise the national wealth and the
other way to achieve economic national income in leal terihs td
strength and it is time for us to a point where the debt need no
speak forthrightly in placing the longer be a cause of serious con¬

effect

the ability as well as the
inclination
of small
and
large
on

emphasis where it be 1 ongs, cern.
Another reason why a program businesses to seek opportunities
namely, on increased production.
This thought was recently voiced for increasing production has be¬ for the productive employment of
by one of the nation's elder states¬ come imperative is that an in¬ funds but now I sense that we are
men, when he recommended to creasing supply of goods is an free of these psychological de¬
,Cohgress that in our national essential part of any program for pressants and can justify an ex¬

economic policy first importance preventing inflation.

pansionary attitude towards

course,

be attached to increasing produc¬ we shall need olso to take. action
tion without which- he said the, td iedueeth# cWeirSUp|>iy of nidnOy
rest of his suggestions were mean¬ inherited from the war but it is

All-out Production the

Prerequisite

submit

reached

you

that

have

point where all-out
production is a prerequisite to the
continued progress and strength
of the

ber

nation.

There

compelling

this is true.

num¬

now so

why

high- rela¬

national wealth

the

In the first placid ouif

national debt is
tive

are

reasons

that

the

under

necessity of
building up the economic prod¬
uctivity and the wealth, of the
nation
as
quickly and asj effi¬
ciently as possible. In a larger
sense, there are only two ways
of lifting the burden of the debt,
which has increased in the past
few years by nearly* one-quarter
of a trillion dollars, and now is
nearly twice the national income
we

are

of great impor¬

tance and it

ought, to be pointed
out that many of the business de¬
cisions of the twenties turned out

that we Will be able
monetary
contraction
alone to removd the inflationary

to be

embarrassing and costly
danger.
It is essential that' the to those who made
them, not be¬
markets be flooded with goods so
cause the public did not want an
that the people will be able to
increased volume of goods or be¬
.buy their money's worth, iiistead cause. the labor and - materials
of having the value of their funds
were
not
available to increase
dissipated in a spiral of rising
production, but only beacuse the
prices.
whole economy subsequently was
High Productive Capacity Neces¬ subjected to a vicious and pro¬
longed deflation. The psychologi¬
sary for Nation's Political
cal and monetary costs of "pick¬
Strength
ing up the pieces" from the last
Still another reason if or increas¬
depression were heavy indeed but
ing production is that we must
that depressing task seems now
fortify the nation against, the
td havi been completed arid It i£
economic,
political
and
mili¬
no
emergencies

the

future.

since

It is perhaps not: too much to hope
that in thd pOSt^tecbhVefMOh pe¬
riod

Our Historic

Achieve

fi¬

and

nancial organizations which have
been proposed is to provide for¬

eign nations possessing usable re¬
sources with the means to develop
them.

The

will be

repaid

loan

much greater—

are

know from expenrience—

that

chances

These

new

problem

whether

that

realized.

still

must

potential

will

settle

not,

back

course

the

flation with its-1 inevitable
of deflation.

that

see

War-Induced "Know How" Has

Expanded Our Productive
frequently lost sight
of is that the war taught us how
to

industrialize at

yond anything
before.-

ible

how"

"know

the

have

now

build

be¬

believed feas¬

rate far

new

pro¬

ductive capacity quickly and have
demonstrated that relatively un¬

labor

quickly

can

trained to tend the machines in ah

assembly line.
tive

Our great produc¬

output, during the war was

made

possible

such

by ;the

use

shall

policies have be¬
patchwork of selfand

have

careful lest

sequel

It is clear for
all to
not do so
but

contradiction

fact

One

bleak

need

economic

our,

come

Capacity

stagnation and frustration
which
characterized the thirties or
if We
subject ourselves to a vicious in

tho

face

into

will

if the loan results in an -increase

production.-'

Prosperity

markets add up
potential
but

tremendous.

Opportunity

Productive

confusion that

let

extremely

historic op¬
portunity to achieve productive
prosperity slip away from us
With such a potential we
should
be

able

realize

the

years

ahead to

long period of high-level
prosperity interrupted only in¬
frequently hy brief corrective de¬
a

pression-readjustments; it will
a shame if
instead, we return

be
to

the conditions of the thirties when

experienced

chronic

depres¬

housewives,, people from clerical sion punctuated now and then by
obcupations^ahd youngster^ Who half-hearted and short lived pe¬
had

previous experience or
the elaborate and
complex machinery of modern
industry. But, they did the job
no

skill in tending

because
ecutives

industry's production
divided

the

ex¬

into

work

parts so Shall that they could
easily be performed by workers
without

long

training.

clear that

seems

Thus,
in

we are now

it
a

riods

only

moderately

good

business.
The problem of devising poli¬
cies which will enable us to real¬
ize

the

potentialities I have de¬

scribed is not
submit that
ductive
unless

and

easy one, but I
cannot have pro¬

durable

provide

prosperity
environment

favorable enough so that basic in¬

position to^-help the world.. catch centives to economic
expansion
up with ih^ihdiistrial rcvolutioh
again are activated. I shall dis¬
and to provide fi great market for
cuss briefly a few major elements
our industry in doing so.
*
*
of a program looking in this di¬
accident that for the first time

tary

international 1 economic

...

This factor

kets.

foreign customer's are prosperous.
The underlying
purpose 5 of the

skilled

investments.

unlikely
through

ingless.

new

catch up with American produc¬

tive progress and we know it will
make better markets for us if our

the

late

twenties

many

American business enterprises are
actively planning to expand mar¬
kets, increase production and go

shall be less plagued with
crises than
was
true

economic

ahead

throughout the dismal thirties,
approximately equal tp the but we live in a turbulent, un¬
Rational wealth. One method is certain arid dangerous World and
through inflation but this is it would be foolhardy to expect
clearly intolerable for it Would that we shall not have some
times
subject the whole economic or¬ troublous
in
the
years

vigorously.

and

Our Greatly Expanded Markets
A

second

for ' viewing
with some

reason

P Anothef&ftew

market

for

the

rection.

postwar period, has its origin in
the fact that close to ten millions
of

people, *\yho were com¬
pletely or*~ partially unemployed
in
the depressed years of
the
thirties, obtained Well paying jobs
our

Itk the

wafcperipdi In effect,* they'

weire

raised>;\:froiT^^he^;

Necessary Steps Before Us
-

First among these is balance in
the budget of the Federal Gov¬
ernment by
a reduction in ex¬
penditures. With the potentialities

for good business as favorable as

pauper

they, Appear to be in the years
dh^ tb te middle class. ' This is immediately ahead, a balanced
a fact of massive
sigriificahce,. for budget at a low level of expendi¬
ganization to stresses and strains ahead. In any event, those diffi¬ great new markets to develop.
these
people, who were living ture is feasible, but it will re¬
'which would leave it prostrate. culties will be more
easily met During the war years, as we all rather close to the subsistence
quire a firm resolve to resist the
Furthermore, inflation wouId and our democratic way of life know, several million new fami¬ level
after,, they lost their Jobs, demands of pressure groups and
wrfcck our middle classes, do vio¬ will be protected from internal lies have been formed and these
homes* insurance,bank •deposits to pare exenses drastically. After
will have to be housed and
lence to. the groat savings and and external
sup¬
dangers if in the
and self-respect in the great
Re¬ successive years of deficits during
banking institutions of the coun¬ period ahead we bend our efforts plied with the automobiles, elec¬
pression dffthe early thirties, now which the debt has
try. and levy a terrible toll ott the to building the economic strength tric gadgets, community facilities
grown to over
have a very sizable stake ih cash,$275* billions, a balanced budget
recipients of fixed incomes, who and health of the nation. Real ^and the other goods rind services
in most cases would be unable
which are part of ,the American deposits and. War Bonds, in addi¬ would carry more than ordinary
progress in that direction is to be
our

economic

future

optimism is that

have several

to protect themselves. The alter¬
native way to dealwith a, debt
of the size of that we have in¬

herited
date it

from the

war

is to vali¬

through increased produc¬

tion.

gained

sby subservience to
easy economic' jj&naceas, bht by
deafly recognizing that ihd road
to strength lies in hard
work, in
high productivity, and in policies
which ehcotifage saving and in¬
vestment

and1 improved
i History
has
furnished
some
classic examples of the fact thaf productive capacity. There is no
a large growth in
other road to make this nation
public dObf is
not necessarily disastrous to the strong.

economic well-being of a
nation,
provided the increase in the debt
is Accompanied by or followed
by
a

commensurate

growth

the

production of economic goods and
services.
Repeatedly during the
18th

and

19th

new

It is fortunate that 'at' a jfiihe
when the heed for increased
pro¬
duction is

great the potential¬

ities for productive
prosperity are
present in unusual degree. Unless
we

fail to capitalize

on our oppor¬

centuries,

there tunities, the period ahead should
were times in the
history of Great bring great economic
develop¬
Britain when relatively large in¬
ment, a Vast increase in produc¬
creases in the public debt as a
tion, higher standards of living,

result of

the

war

gravest

Contemporary
day.

But

failed

were

the subject of

misgivings

the

observers

and

accelerated

There

are

social progress.
several reasons for
op¬

of the
their fears

timism concerning

because

each time
materialize

thef ensuing years of peace the
economic vitality of the nation
surged quickly upward to new
heights of physical; production

our

ability to

increase production.
:"v'.J'

to have

living.

business.
>

Here

v/:::

Another new market for the
postwar period is a temporary one

butitrisidafge. I refer to the de-.
ferred demand

which

has

accu¬

mulated in recent ~$ear&-Because

productiqii M - our .durable •„
sumers' ^oods industries was

con¬
shut
off when the" nation's productive
organization was mobilized.
Es¬
timates of the magnitude of this
market

differ

considerably,

de¬
pending upon their sources, but it
is of greaf significance that
the#
are all large.*
Deferred demand

is sizable

enough t& require the
maintenance of capacity produc¬

tion

for from one to two
years
in many industries and in others
the time required to catch
up
with
pentup demand is

four,

Expansion Are Favorable

First of all,

tremendous market for the prod¬
ucts
and services
of American

three,

Psychological Factors Toward

standard

not

seem

finally

lated
and

even

factor

five
the

obsolescence

curred

our

years.

re¬

deterioration

which has

oc¬

industrial, trans¬

the

increase

of the

that it need when
business volume increased.

vast nev£

mmi^t^

significance

for

would

attest

the determination of the nation to

kee

goods and^eerviees which, go to
Jtriderihari. Standard
of living, w i
L
,*:

make up the

Another^market of lesser im-

its credit standing inviolate.
Conversely, if at this juncture we
as
a
nation are unwilling to set

the early
as

balancing of the budget
goal, we will

unalterable

pbrtanc€?-MS its bright in" th# tiii- put to test our claim to financial
gration of-people from the farm integrity in fiscal affairs.
We
to the bit#:arid fiwn' smailef to
should, of course, plan for a
larger communities,

which

came

budget

surplus

about because of wartime changes
iri the location of our
productive

be able to retire

establishment. A smaller migra¬
tion following World War I was in
part responsible for the building

reasonably

boom of the

good

for ' believing

that

this migration factor wili provide
a market for a much
larger num¬
ber

homes in the period
an unim¬

new

That this 3s not

portant element Tn the building
outlook is clear from the
doubling
up of families which is so preva¬
lent today and from the fact that
people

are

still living in trailers

in many sections of the
country.

The

final

we will
of the debt

that

some

condition of balance

in the

future is

indis¬

near

pensable.

working toward this goal,
should be placed on
economy in
Government opera¬
tions wherever possible because
it is highly desirable as a second
requirement that we further re¬
In

twenties and there is emphasis

reason

ahead.

but

market ~t"o

vise the tax system in a manner
which wili provide
centive for saving

increased in¬
and for the

of capital to assume the
of new business ventures.

owners

risks

In time of war, everything prop¬
erly becomes subordinate to the

all-embracing needs of the state
for the sinews of 'war and the
means of paying for them.
But
once the emergency is over it is
for machinery and new-facilities
equallyjmportant for us to recog¬
to produce the new goods and nize in our tax structure the great
gadgets which are now ready for impelling force underlying our
have^beetf^uf^edfbr^ lon^ pe-^ development^rigfari^
free -enterprise^systemr namely

liquidated the depression portation and distribution estab¬
early thirties out of our lishments.
debt. Close study of this British
Through the entire
psychological system. In the later
experience clearly indicates that thirties
investment in new and range of our, manufacturing and
.the lesson to be learned from it
improved production by American service industries there are huge
is
not
that
increasing debt is industry responded
only feebly expenditures of the^e types which
harmless but rather
which validated

tion ? tP theuprospect for continual
employment* ^m^theyirepresent

would

like to

direct

which I

your

atten¬

tion^ is

the good old-fashioned
American one. It is the market

"/£$£:!& i

153

Volume

the

profit

action
•'

THE COMMERCIAL & FINANCIAL' CHRONICLE

Number 4480

incentive to expand pro-

and employ

grasp.
Another

condition which must
be present if we are to translate
the potentialities
of the future
into actual prosperity is balance

economic

creases

tiie

•PiMni

i-XI

v%r.rt</v\

money

XI.

that

time

supply of
The attention of in¬

the country.

Board

Federal

the

was

concerned

Reserve

monetization of public debt that
policy holders and 'other' had accompanied our wartime fis¬
large
groups
is
finally
being cal policies and financial meth¬
called to the fact that the cheap ods. It had been general knowl¬
money
policies of Government edge, also, that the Board was

progress

stability are to be avoid¬
it
is necessary that gov¬
ernment
monetary and bank¬

not

are

unmixed blessing. Con¬

of
some
of the fundamental prob¬
lems inherent in banking, credit,
gress is

debt

and

whole

and
ed,

becoming

interest

becoming

are

inflation and the

bring

can

rates.

alive to the basic

aware

manner

about

favor

actions

which

would tend to firm the short-term

rate than

the

of price

causes

in which

great "altera¬

it.

which would

ones

During this period

hear

cated

ously

ease

began to
of various and compli¬

. «

. .

the monetization of debt,

the

over

surance

in an , atmosphere
0f
violent credit inflation or
credit
deflation. If these two
threats

•fttAWl

(Continued from first page)

Enterprise

supply.

in the money
cannot thrive

Debit Management iand the Controlled Interest Rate

people. This

fully to cap(talize upon the potentialities for
good business that lie within our
essential if we are

1957

• ?.

the gen¬

growth in bank deposits, and
the
toboggan in interest rates,
than I thought might be possible
a short while ago. The "otner cir¬
cumstance" is the vast improve¬
ment in the relationship between
Treasury expenditures and Treas¬
ury receipts.
You may be interested in the
latest guesses as to the scope oi
this debt reduction. In the Presi¬
eral

dent's

plans designed simultane¬
to reduce the earnings of

commercial banks, to reduce the
overall costs of interest on the

ary,

L ^ -^L
complished

unexpected end.
truly avail¬
able for permanent investment in
long-term 2y4S, 2J/2S and Savings
Bonds were absorbed in the proc¬
an

The funds that

were

this operation.
The rest
operation now appears in
the light of a triple-play refund¬
ing. Almost $15 billions of mar¬
ketable 2%s and 2V2S were sold

ess

of the

in the Victory Drive.

budget message last Janu¬

it was estimated that by June

30, 1947, the relationship between
Treasury receipts and expendi¬
tures would permit the Treasury
to redeem about $7 billions of out¬
standing
debt
by
using
that
amount of the exceedingly high
General Fund balance for thai

billions

of these, were

Almost $13
purchased

by other than commercial banks
Treasury accounts. A majority

and

of these

purchases was made pos¬

sible by current or

prospective ex¬

authorities adopt policies tions in
changes of bank-eligible securities
the American system. This public debt, and to restrict the
which will prevent a further con¬
for these ineligible ones. In effect
future growth in the money sup¬
is a change for the better and is
this constituted a refunding oper¬
centration of the Government
definitely encouraging. Debt man¬ ply that, under existing circum¬
ation
debt in the commercial banking
by non-bank investors in
stances, is inherent in a partial
agement, however, is a compli¬
which they sold eligible securities
system, for such concentration re¬
reserve banking structure such as
cated subject and unfortunately it
sults in an increased money sup¬
of. comparable or shorter term,, L r
bur Federal Reserve System.
purpose. When that budget mes¬
is not easy to follow the changes
Obviously the commercial banks
ply. We need instead to bring in the details of
This
combination
of
views, sage was released many observers
policy and meth¬
about an increase in non-bank
had toacquire thebulk ofr;the
believed that the estimates were
od that continually take place— goals and possible remedies be¬
shorter and the comparable ma¬
investment in Government secur¬
of an ultra conservative charac¬
details that in themselves force or came a source of considerable con¬
ities and a reduction in bank
ter.
Subsequent
developments turities of bank eligible securities.
mark major changes.
I thought, cern for at least four reasons:
Some* of the shortest Treasury is¬
holdings so that banks may make
have made such a description a
additional
credit
available to therefore, that I might attempt to 1. The direction of any change in major understatement. Of course, sues, however, were inturnireoutline this evening what seems
the
short-term
interest
rate the outlook can
to
the
Federal
Reserve,
business and provide the funds
again be changed sold
to have taken place in the broad
would be a powerful psycho¬
for aggressive business expansion
by Congressional appropriations banks who faithfully supported
fields of debt management over
logical force, as well as a of excessive amounts for subsidy those
operations in accordance
in the coming years without a fur¬
the recent period. I shall divide
with the established policy of pro-,
measurably mechanical one, in purposes, other Federal grants
ther increase in an already overthis into three subdivisions:
determining the direction of etc., as well as by the voting ol tecting the
short-term interestexpanded money supply.
The
ing

recent

give

in this interval

The progress
better

general understanding;

The less

real progress

has been made in

and courageous manage¬
ment of the public debt in the

which

devising reme¬

dies, and I shall comment on the
elements
of
definite
danger

period ahead if we are to have

which

real prosperity.

are

production,

suggestions for general considera¬

exansion in

then the nation must reaffirm its

enterprise
system and in the profit incentive
as a motivating force of that sys¬
the

faith

private

public policies
in terms of whether they hinder
that system or aid it effectively
to do the job of which it has
demonstrated that it is capable.
We must remove as quickly as
feasible all of the controls, limita¬
tions
and
regulations
which,
though
necessary
in
wartime,
cannot but block the progress of

tem.

We must test

productive

development in time

misguided policies with

respect to profits, prices, security
regulation or labor relations. We
must recognize that the owners of

capital, large and small, cannot be
expected to risk their capital in
job-producing and goods-produc¬
ing enterprise unless they can
foresee
Let

return

sum

We are

for

troubles
and he may have been contem¬
plating suicide by hurling himself
out of that window.
His action,
therefore, in turning away may
have
represented a momentous
decision.

by saying that
a

pe¬

riod which not only

somewhat

grue¬

Washington quarters.
The

Question of Reducing
Interest

course,

there is nothing to

our man who went
window from returning to

stop

Now Emanuel,
firm

name

Deetjen
Emanuel &

Co., 52\William Street, New York
City, members of the New York
Stock Exchange, was changed to
Emanuel, Deetjen & Co., effective
April 8th. *

Cullman Bros. Admit
Edgar M. Cullman will become

prospective)

and
4.

between

portance than its scope. All of us
have been taught that the retire¬
retirement

money

either too general to

practical or seemed to be
technically
deficient to
the
point that their repercussions
could be as bad as the condi¬
be

tion

they

some cases

sought to cure. In
the potential results

seemed for worse.
These

reasons

for concern were

becoming recognized Over a wider
area as the fall of 1945 progressed.
pected

meetings

to the
it and

changing his
mind.
Similarly,
there is nothing to stop the Secre¬

1946 the ex¬
between
the

(whose suggestions help to formu¬
Treasury decisions) were in

late

favor of a

further reduction in the

interest rates paid by our

Treas¬

its borrowings. Those who
were inclined to this view had in
mind that the first move should
be
to
reduce the
coupon
rate
ury on

partner in Cullman Brothers,
161 Front Street, New York City,
members of the New York Stock

$17 to $18 billions which may

the pro¬
In
ceeds of the Victory Drive.
largest measure, therefore, this re¬
used for this purpose are

represents

tirement

stantial total of Treasury securir
ties other than Certificates.
^
The proceeds of the drive are
largely set up as War Loan de-.
posits.
As these
deposits are
called for and disbursed for vari¬
ous

purposes many

sections of the

country have witnessed previously
a
substantial
"permanent" de¬

Other

increase.

posit
such

Loan at

sections,

New York, lose the War
faster rate than the reg¬

Hence,
it
is necessary for the Federal Re¬
serve to
make net purchases of
deposits come back.

ular
as

War Loan Deposits are called

certificates and notes.

To this ex¬

the after-drive operation is
financed
by
Federal
Reserve
credit also. "d

tent

The deflationary

"de-infla¬
and Re¬

Thus, the

Treasury.

the

commercial banks obtained a sub¬

effects of the

tion" of the bank deposits

resulted

that

credit

serve

from

drive, and that would other¬
wise still be in existence.
that

As far as bank

deposits are con¬

they will be pulled down.
force is set in motion which will

cerned
A

operate to reduce the total of Re¬
serve bank credit in the market.
The bank
not?

yet

money

They
crease

deposits, however,; had

become a part of the
supply of , the country.

constituted a potential in¬
which

now

will

can¬

celled.

(at times in consultation
with private groups such as the

posits are a potential, not an ac¬
tual addition to the monies that
are
available to businesses and
individuals for expenditures for

ficials

representatives of the commercial

Treasury

War Loan De¬

therefore, are confined to (a) the
"'de-inflation" of bank deposits
which have not yet come into the
hands of business and individuals
but

are

War

simply

Loan

De¬

posits; and (b) the establishment
of a "cooling-off" period for the
Treasury securities markets which
have been boiling.
<
This "cooling-off" is largely felt
in bank eligible issues.
This is
partly
this

because only one side of
triple-play
refunding has

been

accomplished, that is, before

the

debt

came

retirement
operation
into focus.
The
losing, actually and in

clearly

banks are

prospect, a substantial block of
companies and
deposits on the basis of which
savings banks) took place. Of the goods, etc.
investment
program
has
The unexpected use to which their
subjects discussed, one concerned
the changes, if any, that should be these funds will now be put means naturally been based. These procontinued on page 1958)
made in the certificate rate of simply that the Victory Drive ac¬
%%.
Others concerned similar
details that indirectly would affect
the yields of these same securities.
All seemed to have a full day in
court, including the advocates of
a reduction in the short-term in¬

banks,

insurance

terest rates.
It has been

apparent from sub¬

Treasury

Certificates from %%

"passive" decision but one of out¬
standing importance. It was vir¬
tually the first time since the war
financing pattern was inaugurated
that the Secretary of the Treasury
seemed to have definitely refused
to follow the counsel of those who
have

advocated lower and lower

interest rates.

perhaps %%. Later,
The Progress of Debt Reduction
within a year or so, these persons
Some have believed, including
expected that the interests of na¬
tional welfare would clearly call myself, that a mere continuation
Exchange, as of April 18th.
of the existing short-term interest
for, and market conditions would
rate would be insufficient to in¬
justify, a reduction in the longBoyer & Co., Inc. Opens term Treasury rate from 2lk°Jo to sure a stabilization of the interme¬
diate and long-term yields. I am
(Special to The Financial Chronicle)
2%<»$he advocated decrease in
TERRE HAUTE, IND.—Boyer the short-term rate was presum¬ glad to say, however, that another
circumstance has arisen which has
and
Company^" Inc., is engaging in ably to be a part of the stagemade this passive action some¬
an
investment business from of¬ setting for this later development.
what more effective ill halting
fices at
It was fairly well known at this
to

The

rate

sequent offerings of Treasury Cer¬
tificates that Secretary Vinson de¬
This story, however, is perhaps cided to make no changes in these
as important as the decision.
Last at this time. To those of us who
have
followed such details of
summer it seemed fairly certain
this was a
that some of those in Government Treasury financing

524 Crawford Street.

Its

however, as a customary one.

goods.

were

cannot be

effects are likewise different.

Many of the suggestions which
were being outlined as reme¬
dies

This
considered,

ment of debt is deflationary.

Federal Reserve and Treasury of¬

Rates

demands that
enterprise be free to increase pro¬ tary of the Treasury from change
duction but which, fortunately,
ing any of the decisions which
affords
great potentialities for have been clearly evidenced. In
productive prosperity. Personally, making a recent decision on shortI believe that the spirit of Amer¬
term interest rates the Secretary
ican enterprise is still basically
was indeed in a position similar to
strong, that we are not ready to that of our potential suicide. I
accept the despairing philosophy think he deserves praise for de¬
of economic
maturity and that ciding against a reduction in the
once we have completed the post¬
rate of interest paid, particularly
war reconversion adjustments we
when he had before him the prec¬
are likely to emerge into a period
edents offered. by similar reduc¬
of great economic progress.
tions in Great Britain and Canada.

The

unba^nce

im¬

duction is of equal or greater

Finally in January

themselves.

the threshold of

This

suggestion is perhaps analo¬
gous
to some of the decisions
which have recently been posed
for the Secretary of the Treasury
and which have been the subject
of
discussion
in
other official

some

this debt re¬

character of

The

the

physical and pschological fac¬
tors in accelerating the price
inflation that originates from

might notice that and give it no
thought. Yet that man may have
beset by numerous

growth in the money supply,
on top of the vast wartime ac¬
cumulations, could be strong

man

the

been

expansion

months.

supply.

Further large (or

may approach a window
forty-sixth floor of some
skyscraper, gaze out reflectively
for a moment and turn away to go
back
to his
work.
You and I

of peace.
We must not sacrifice
the period of prosperity which lies
ahead to

money

tion.

future

the

Finally, I wish to renew some

great

of today the prospect

determining the magnitude of

inherent.

Finally, if the future is to bring

substantial tax reductions, but as

is that the
Under our debt management Treasury may be able to use $17
and controlled interest rates to $18 billions of its General Fund
the direction of changes in the balance for the purpose of re¬
latter, and the relationship be¬ deeming debt.. Up to April 1
tween the short, intermediate,
only $5 billions have been used
and long-term rates could be
and thus $12 to $13 billions may
a
dominant consideration
in be available over the coming 15

and

Skillful

change in, or the stability of,
long-term interest rates.

period;

that has been made in attaining

We shall need the most

investors.

aspects of the

technical

The

for the authorities
serious consideration to
such increases in coupon rates on
Government securities and to such
changes in their form as will make
them more attractive to non-bank

time has come

'Ht

BANKERS

INVESTMENT

Exchange and
Exchanges

Members New York Stock

Other Leading

UNDERWRITERS AND DISTRIBUTORS
INVESTMENT SECURITIES
BROKERS OF BONDS,

Private Wires

•

OF
,

STOCKS, COMMODITIES

Home Offices

Atlanta

•

Phone LD-159

Interest Rate
to exceed -redemptions, but this
>gfams.feave bfcen^upset^^be^unf has b^hiJargciy ifec-fe^ales
J*
expected .and fortunate >state ,*flf S and Q bopds, :?Series ;E redemp¬
Treasury finances.
tions,have olightly exceeded sales.
In the ineligible market we are
To shorten h long and inconclu¬
now, however, at the stage where sive
story: most people agree that

|(Continued 4ro?n

page

investible funds

new

to, accumulate,, and

.1957)

are

starting

curities will

Treas-J

decline

.While
'

hps been -less rparlped

the

large

debt retirement,

puslyhas bpen indicated. Several
preponderantly iyia jthe <re« polls haye supposed -this conten¬
dempti^ ^oi^ha^Md metering tion jb^fedicatipgthat ^people will
obligatipns^everal factors obscure
pse consumer credit ;to: buy before
the
made

Therefore, it

earnings assets.
increases

that pet redemptions of these is¬
sues will be )fer less than ipyeyi*

prospective

the

their

concern

outlook

future

for

^to

earn¬

ings.
Here

wish to make a
short: if the banks
in prospect a sufficient¬

again T

Jong

story

could

see

probable degree :

custodian of funds and
source
To engage in
the latter
function rt has available
to it a
certain amount of capital

actually retire $2 to $3 bil-

as a

of credit.

lions: additional, it would have
been hailed as a convert to ortho¬

policy.

fiscal

Government

dox

to risk

The banks realized

deflationary

that

such that

redeeming

process

cult to foresee what amounts of

tions may change many

be larger, ]Only
earnings or new
capital i could provide this and
good earnings \are conducive to
obtaining the latter.

lost.

occur^,Hhen^tdjart epual-extent
the

deferred-inflation

gain of

wartime^in3hcing$i,s
is

predict how

June 30, 1947, I would guess that
some
measurable
decrease
in

xmar^eialbie feankf eiigi-

business holdings will occur, and

difficult

ble securities maturing ■..* after
dune 30, :1947, wilhhe sold #
the market ?by ^businesses and

individuals.

.that these

?the

that

extent

junction

with

Federal

Reserve

further

use

credit)

largest

measure

seen.

would

ex¬

pect this relinquishment to occur
via .maturities tan& redemptions.
|Tb> the ^extent 'this is 'true deposit

acquired by the
;banks
(in ,con-

commercial

decrease in the holdings

some

pf individuals will also be

are

Estimates

the

future

^"'re-inflated:"
{•dffifeuit tip gfedfet how

the

whole, V therefore,

seems
fthetdebt
in prb?pect. ire mbt
,

over-all

increase

are

fect

earnings of increased

banking system was con¬
place in the threeprice system of war finance. The

fronted with its

lower income from Treas¬
securities through normal re¬
funding operations and the loss
of earnings from debt retirement.
In other centers and outlying dis¬
tricts the attitude is more hope¬
ful, although not sufficiently so to
penses,

ury

cause

the banker to become

influence

new

decrease

com¬

bank

earn¬

retirements

deflatipnaiy

ber

banks

endeavor

better

their prospective earnings position

purchase of intermediate
and longer Treasury,,or.other, se¬
by the

non-m.arketable dpht suoh us; insofar >as they directly affect, the
Savings ;Nofes and pond's will money supply of the country that curities. Tn some cases this will
be redeemed, ibus
reducing js already ;at th® disposal of bwsi- be accomplished via increases in
the debt retirements that-will •nesses and individuals. If
deposits but in most it .will be ac¬
any¬
occur.via maturing obligations. thing, the prospect is that we may complished by the sale of shortest.

The

lose

^disinvestment

{total

minor

degree of Treas¬
security investment that othsome

term issues.

In this analysis I am forced :by
Treasury securities by businesses ury
and individuals is a moot question. erwisemight nptbedisturbed. We time to ignore a number of things
The Federal iJteaerve ;Board .has still face the prospect—undefina- such as circulation trends, past
estimatedfjtbat isM Dec. 13,1945, ble as to scope—of seeing wartime rnd future, recent Federal Re¬
businesses and individuals held acquired Treasury securities trans¬ serve activity under the circum¬
about $88;billions of marketable ferred into a demand for goods, stances, etc. r shall dwell on the
and non-fmarketable • Treasury ;se* services, stocks, etc., and some Federal Reserve's primary rela¬
curities. Of these, businesses Jield corresponding increase in deposits. tion to the market later, but I
between $31
and
$32 ' billions.
But we have other considera¬ want to tie-up this one point re

Trust

funds

individuals

held

tions

$15 billions. Individuals, as such,
held about k$4i.fcillibns.

the wartime tax bur-

reduced;

be found in

^vjdetice of this
the several

decline in the

less

re¬

seek

higher return invest¬
The meth¬

may; ods and policies of the debt man¬
agement in dealing with this situ¬

billions

^utstapdihg totals

ation have been

current debt retirements:

Total

Savings Bonds
increased
through¬

remove^, consequently the supply,
of

the

ing the deposit and earnings asset

commensurately lessened. JSven jf

increases

the

For the first

two and one-half months

sales of

1946

Savings Bonds continued

concern even after receiv¬

Victory

that

resulted

Loan.

The

from

the

reversal

ply of the longer issues has been
the

intermediates

demand

shrank in the

side

same

has

the

been

market

proportion

jthe supply the ratio of supply and
{demand (consequently the "Jrend
This advertisement appears

This advertisement is neither
offers to

buy

any

is made
NEW ISSUE;

as a

matter of record

offer to sell

nor

only.

solicitation of

of these securities. The offering

only by the Prospectus.
'#

i'*

i '

«U*ls
■

95*000 Shares

Seminole Oil & Gas Corporation
COMMON .STOCK
$1 Par Value

sPrice$3per Share
Copies of the Prospectus
from the

be obtained
undersigned.

F. H J HOLLER &

may

COMPANY, INC.

New York, N. Y.

curities
exists

,..U1 .-,'1.

.UU-.fl;

that

and

stabilization

real

2~% price for Treasury .lending and
the non-banker increasingly pre¬

Relations of Federal Reserve
v

Board and Treasury

finally

get to the Federal

The dominant control in

Reserve.

the powers of the Gov¬

of these

ernment, he elected to prefer the

In the mean¬
time we continue to deal with an
unbalance in which demand rules.

to be consid¬

disappointing.

peis in the- fafee, and set alongside

better balance

in advance

yields is witnessed.

ferred the 2Vz % one.

;; The history pf the war financ¬

record .of

is a

ings

one

two

jthings: - that ibfe Treasury

wished
tp take full advantage of this situ¬
ation jfpr

purppses

lower

ever

mfe?6st ,rates

obtaining
and bal-

wartime
finance
has been the Jy-rhpp drive results, or it just
failed tojrealize the ultimate re¬
^hot-gun wedding between s the
,

Federal

and

the

Treasury.

sults.

The

Federal has been the hen-pecked

Under Treasury domina¬
tion the Federal Reserve has been
spouse.

carrying the major burden of pro¬
tecting three different price levels
for Government securities during

any

lending

event when the lower
rate
became
popular

!(%%) Treasury methods and de-

dsiohi^a^^q|h^^ebt to become

heedlessly monetized. The Treas¬
ury "sat by," and stood by, its
in which the increasing pop¬ eprlier decision Jas to ;the level of
the short-term rates. The effect

•years

ularity of two of them has brought
increasing

on the third
short-term rate.

pressures

—namely,

the

;The

important

most

method-fof

control was by means of abdicat¬
ing to the commercial banks the

decisions

to the amount of Fed¬

jtawjard fe.wering Treasury bor¬
rowing costs, presumably was ade¬
quate ;excuse to {.permit this need¬
less
monetizatipnr; of debt—and
the Federal Reserve was impotent

stop it.V;4';*r*

eral Reserve credit to be used in

financings.
Treasury failed to face the
facts: after a crescendo of public
appeal to patriotism and thrift (a
virtue previously -decried), thd
war

The

devised to sell Treasury
securities * to dtber than banks
cduld produce only a given sum.

National .Welfare More Important
Than low Dost, Govornraent Debt
-

All of this leads-to two points:

the

task pf Government to.

objectiyes-rrnot minor

have major
ones/

The cost -pf ;interest on the

already been predetermined
by the taxes which were or were

public debt—as such—As - definite¬
ly minor as respects the long-run
national welfare. It is not the task
of Government ^ to enforce rules
that attain a minor'objective and
cause
us
to run. the .dangers of

not

fundamental alterations in the ac¬

The

balance

had

levied.

banks.

come

"This

from

balance

Yet under the Treas¬

ury's- wartime financing methods
the class of the securities acquired
by the banks was largely deter¬
mined by the preference of nonbank investors both with respect

cepted ; system
life.

nomic

pf American eco¬
The
commercial
-

banks, as~a part-of the competitive.
American
system,
played
the

according -to the Govern-,
Certainly they were

game

to the issues offered in a current
and
those previously ac¬

ment's rules.

drive

reluctant

quired. Of course, the preferences

stant endeavors were made to

Con¬
im¬
of the commercial banks were a
press upon the Treasury the ne¬
dominant influence in the prefer¬ cessity. of changing :the rules, par¬
ences of the middle-n>en—in this
ticularly as conditions changed,
to

accept;-them.

rates) would ,be unchanged. case the non-bank investors. The but
the Treasury and the Govern¬
Actually, however, a new factor commercial banks in turn were
ment stuck to their guns—namely,
i of demand has been introduced—
) influenced i# the tb&e^prico sys¬ a •;
three-price market with the
that which originates with the loss tem
decided upon
some
time Federal Reserve obligated to ren¬
(Of earnings ,as a consequence of after the outbreak of the war.
The der unlimited .support to the least
4he "(le^inflation" of the Victory three-price
sy stem
was,
of popular section.: ■ xW >
Drive;^:^>;<9lf ■'
course, that set by the three pri¬
We still have that^system with
I shall largely ignore, to save mary
financing issues, the % % us.. Unfortunately, the resulting
time, questions .of portfolio bal¬ and 2% bank-eligible issues and
Wartime bferdpn. pf ,4ebt, even at
ance.
Short-term securities will the 2V2% ineligibles. ;j V
the ill-advised low level of short-,
be lost but short-term liabilities
term fates ' that Was. established,
(War Loan Deposits) will be re¬ this
country. They are a part of
duced 4n greater degree.
the free enterprise or
private cap¬
Before we attempt to summar¬ ital system
Mwliich; awith ^aR its tioh: of ^ the -vshot-gun' wedding.
ize this phase
the
faults, has been without an equal Consequently, -while Federal Re¬

^should like 4° cover• One ;|nore in producing the best results for
point, Jh the Vjctory llrive the the so-called ^forgotten >man.**

serve

credit

retired as

part

retirement ^operation
These banks operate under the
lit ^feepis 4q me ,that this bas no
lions of long-term marketable is¬ same
energizing influences as ihe
greater ^result, under the circum¬
sues.
Between mow,and June
30, rest of the American system. The
stances, than to constitute a diffi¬
1947,.the Treasury may well
basic soiirce
-

Treasury issued almost *$15 -bil¬

have
fOtired,
^ ;4hus^^ T^pndWi* -aix
equal amount pf ahort-^rin
mand indebtedness and some

energy

is 4;he

American coiajipetitive spirit;' The
rules of
thisscmniti^Are tl)at each

should be encouraged to compete

cult

operations problem for

the Federal who

those

must—above

felse-~prqte^ Jhe Treasury s
as to markeibnd" financing
rewards prosumahiy^fiddo; those rates. This
applies to those in¬
who obtain the best resulta
/iln stances where the desires are
billions, banking this ,fequireOhe^^xi~ cjear-cbt and gubject to positive

$3 billions tk addition, Najiithc with
.the,others,

in the

; of thk Hdebt

Treasury announced in November
1945 ,tbat, it planned to
Refund
short-term ; debt into jong^terin
debt to the,extent of ,$15

April 8,1946

low at the time
ered

•

down the demand for Treasury se¬

had

a virtually
supply. More recently
thel burden bf the supply has been

unlimited

dads and the. 2%

pull

credit from other sources to

commercial

Victory tban.

set—the hope of, or
sufficient demand for money and

the yields in the market have been

put 1945, partially as a result of

some

•

was
embel¬
with many attractive doo¬
rate .was set so

lished

reduced in the face of

banks had believed their
require¬
ments and outlook to be the source

outstanding

;

methods.

major factor in {placed directly on the long-term
producing the low levels of mar¬ rate, and only indirectly on the
ket
yields that prevail.
Many intermediate rates. Now the sup¬

SavmgsRonds the picture is
clear.

normal

ments in the market.

Savihgs^Nptes^

dens and consequent tax liabilities
are

The

The market supply of Treasury
funding operations of the Treas¬
ury force commercial banks to ac¬ securities has undergone
a
ter¬
cept largely only % % Certificates rific reversal. .For several years

business iwldings ure -pound 4o

decline as,

involved.

*''

lower c rate —% %—

potential off¬ As the individual
banker, howprospects for, fever, Ipqked the fects of his busi-

There is only one

ex¬

On the whole, therefore, we
expect to see a reasonable num¬

Not Deflationary

prospective

In the largest

ings.

Prospective Debt Retirements
-

the

relatively low and certainly insuf¬
ficient* to equal the combined ef¬

tending

deposits and earnings assets of

placent about this

^'de-inflation" will be reduced.

the

the commercial banks will be

&^It is

to buy

In the period between now and

posits results.

many

easy

it. is difficult today,
will be better able to judge.

lessee contraction, in bank de¬

banking centers the estimates of

things then

•'

loan demand vary.

plentiful and it is

investment will be
.whatever extent this

'To

;

Our

while

it provides a "cooling-off" period
for the Treasury markets it actu¬

interest rates.

of such prospects it is another.

opinions
that have been tested in different
Circumstances. *As- goods become

non-bank

extended,

existed. Consequently the
amount
of capital needed would have
to

Moreover, the mechanics of
are

that the
might have
and from which

creait

orphan that which had previously

tention to the existing money sup¬

the retirement

not

ply.

at wmcn

losses had to come, would be
low

actually deflationary at
all insofar as we confine our at¬
is

the^y^fQgres^cd was

race

only in that it "de-inflates"; i.e.,
it

war

they would be expected

post-war period. The only change

to money supply

during the

risk that capital at low
rates in the

they" resort; to - redeeming their ly substantial volume of loans of
a
bankable type the loss of de¬
ponds, ft-thipk 'It 4s top. early to
debt'thmh$h lOQ^redemption draw definite conclusions, Con¬ posits and earnings IhfeUgh re¬ ally has the effect, of creating a
greater
out-of-balance between
of sohje issues and partial re-'
sumer and durable goods are in duction bf Treasury debt Wbuld.be
demand and supply or the trend of
fundings of "Others; it is diffi¬ too .short supply. Changing condi¬ one thing; in the general absence
In 4he

and to
;

Certainly those who see in such
refundings the solution to our
It - throws
some
'investment
debt management problems should
portfolios and programs out of find this an
ample acceptance of
balance by changing the pros¬
their views.
In other words, the
pective flow of funds
and mechanics of debt management
"final" position (both of de¬
are
sometimes
more
important
posits and investments).
than the general acceptance of an
It {deprives -most
banks of orthodox principle. Here is a debt
"temporary" or "permanent" retirement which is essentially,

move

along into peacetime production.

ury,issues seerns destined 4q Ibe- The
Treasury and most people
confined to that' obtainable in the
have been encouraged by the rec¬
market. Thus, the "cooling-off" in
ord on Savings Bonds to believe
this section

portion of the effects of that
debt increase does several things:

some

business foldings ofTreasury ue-

tbe ,neartfu-

ture supply,oLJongerterm

Thursday, April n,;1g46

iCQMMERKAlii&SMNANCIA^fHRONICLE

THE

1958

epsuipg 15 to 20 months,

ana the greater

all

desires

mum

of service to

deposifers^oth

decisions and those in which

the

163

Volume

non-marketable

ii less ciear ahd results
uride-vvith-the^ti(ieM attitude.

situation
in a

;

picture to date may there¬

summed;■ up; as; one in
thanks in part to Secre¬

which,

quired

tary

that

the certificate rate, and in

duce

heretofore—and
yet
make it slowly.Vm
'

must

"."V

classified

"■

themselves

conducted

all that

underneath
"that

and to tax

much

lies

have

statement

that

Treasury

Are

the

for

the

that

say

tween
rates
ones

field

the

tant

It is the

debt and trCdit
I

ments could

the

Cxipahsionv

that

longer term invest¬

that

the

non-bank

make

several

which

it bears

monetization of

credit

that has

re¬

fail to adequately consider
*

devote themselves to liv¬

Another js that short-term debt
should be Jrefunded into longterm debt.
billion

I have outlined how a

refunding

has

been

is in progress. How much
further is practical at this particu¬
lar time?
or

Specific Remedies Proposed
In the field of

specific remedies

find that
they fall into three
groups:
/ ;; / \
; / •' ;

Onet thj^fthdtboir^
^ their
required to invest some portion
demand deposits iii special

outstanding practical
and experience, and
who will be free to produce the
facts on a comprehensive basis.
are

Walter

well-

banker

and

sportsman, died after a brief ill¬
ness, at the age of eighty-eight.
Mr. Clark
up

was

active in business

to his death,

vestment

firm

heading the in¬

Clark

years;

firm

since

several

including
Barre

the

1904.

was

corporations,
Lehigh,
Wilkes-

that

holding
violation

the
the

to the detriment of

The

had

special

been

advices

given

the

"Mr. Miller objected that only a
few

airlines

were

represented at

Bermuda, and demanded to know
'by what authority does the State

Scranton

rich,

Clark, with Winthrop AidGeorge Whitney, Vincent
and

financed the
construction of the racing sloop
Enterprise in 1930 to meet the re¬
newed challenge of Sir Thomas
Lipton for the America's Cup in
others,

The

■

information

"Mr. Hornbeck took the position
that

rates, under the negotiated
agreements, 'will be set by cartel
action and not by competition and
this for the sole purpose of pro¬

the comparatively weak
air transport companies.'

tecting
foreign

based

before

Clark

Mr.

owned

1920,
it, re¬

sulted in the defeat of Sir Thomas

with

Seattle: branch

other West

York

offices?

Coast

was

E. O'Connell, who has been
prominently identified with the
investment banking business
in

the Pacific Northwest since 1922.
J.

Valentine, who has been

active in Portland and Seattle in¬
vestment
banking circles since
1923, has been named manager of
the Seattle brokerage department,
N. Ward, with many
experience as an investment
banker, will also be a member of

and

Frank

years

Kaiser & Co.'s Seattle staff.

Kaiser

Co.

are

with

Rejoins Warner

50%

Boston

BOSTON, MASS.—Wilfred G.
Conary has resumed his duties in
the

J.
Arthur Warner & Co., 89 Devon¬
shire Street. He has been serving
trading

department

overseas

pas¬

tarried

senger

In this

view of the case he told the com¬

mittee

that

(Special to The Financial Chronicle)

believed that

by air in the near future.

ship

in the U. S. Navy.

of first-class

Flylui

said

airplanes,

that the companies

all American

steam¬

companies should have the

LOS ANGELES,

CALIF.—Paul

Flynn and Harold E. Levitt
have formed the partnership of

JR.

Flynn & Levitt with offices at 411
West Seventh Street to engage iri
the securities business. Mr. Flynn
was

formerly with Oscar F. Kraft

& Co.

;

This

announcement
an

appears as

matter of record only and is under no circumstances to be construed

offering of these securities for sule cr as a

solicitation of an offer to buy any

The offering is made only by the Prospectus.

of such securities.

100,000 Shares

Pressed Steel Car Company, Inc.
Common Stock

"Har¬
Briefly it

Par Value $1

importance to the satisfac¬

It is impossible to suf¬

Offering Price $26

ficiently
marshal
unbiased in¬
formation and advice on this sub*

unbiased advice

Copies

the

Prospectus

may

participating in this issue as

the sub¬

the

obtained
may

per

in any

State from only such dealers

legally offer these securities under

securities laws of such State.

ject of debt management and re¬
lated problems as it is possible

provide. This requires that the;
and suggestions be as
free as possible of political and
private
interests.
Furthermore,
to

research

debtir,management and all other
elements of our compli¬
cated economy must be weighed

major

ganization/ which have sought the

tory resolution of our peacetime

and

■

members

political

ject within the framework of our
present management set-up. Con?
gress is entitled to as intelligent

New

private

follows:

problems.

linked

and

direct

Proper debt management is of
crucial

wire..
Regional manager in charge of
the Seattle and Spokane offices is

right to supplement surface vessel

cent Winter Number of the

vard Business Review."

Co¬

"Mr.

operations

Lipton's -Shamrock IV.

that, in

conclusion, therefore, I re¬
a suggestion which I made
article published in the re¬

and

the New York Stock Exchange,
Roth, speaking for the eight New York Curb Exchange, San
Mr. Clark won the Vanderbilt Cup
steamship companies, out of the Francisco Stock Exchange and
with the yacht Resolute in 1929.
total membership of 100 in his or¬
Los Angeles Stock Exchange,
j
The race of the Resolute in
that year; the yacht won the race.

office, lo¬

cific Northwest, a Spokane office
having been opened recently.

domestic air¬

that the agreements

new

Street,
on
the
ground
floor, is the second branch of the
firm to be established in the Pa¬

law."

should have been made only after

Co.'s

lumbia

lines, bus lines and railroads, the
witness said

cated at Second Avenue

pacts

Railroad, the Department
assume
totalitarian
Lehigh & New England Railroad powers over the important subject
Company, and the Nesquehoning of air transportation in the field
Valley Railroad Company.
.of international relations?'
Mr.

Kaiser

agreement,

subsequent accords, were
"in

are

Bermuda

the

ser
& Co., is in Seattle for the
opening of his firm's office in that
•city.;"...

Alleging that they would operate

he had been senior partner

the

SEATTLE, WASH.—Leland M.
Kaiser, head of the San Francisco
investment banking firm of Kai¬

Shipping, Almon E.
Roth, its president.
Appearing before the Senate
committee, Mr. Hines attacked
what he said was the secrecy with

reached,

Clark,

investment

American

and

E. W. Clark Dead
Edward

Locomotive

and for the National Federation of

which

known

Brotherhood

the

Kaiser & Co. Open
Hew Seattle Office

provided are
expediencies.

in¬

buy them. How could
accomplished?
I have
convincing explanations.

tions

Miller; for

Engineers, Donald W. Hornbeck;

created our problem is born of
political considerations. Similarly,
the solutions so far specifically

vestors will

sulted, and still potentially exists,
is tied basically to the defense of

generalization

politi¬

and

Railroad

Trainmen, Martin H.

ception of the ideas which have

argu¬

sjjpuld^ causedl turdisr

of their

made

vitality of

turn to

Another

Second, provide Congress with
an advisory staff whose
qualifica¬

Astor

tried

of bank

sion

$15

satisfac¬

continued

Two, that the

the hank;s

largest measure, the original con¬

against

heard

obtain

It should be easy to see

many

be advanced

cal arena,

director

banking structure.

lcu)grigjri$>^

this

the

situation which is un¬
tenable in a free enterprise econ¬
omy which must be energized in
part by a reasonably free private

investment in-Treasury se¬
curities would accompany higher

ments

the

ing with

cidihi'that: increased^ savings

pose

one

disparity

(b)

and

ment.

system

debt and the unnecessary expan¬

disparity be¬

(a)

necessity for the

that

sure

functioning

the problem, or

Federal Reserve;, to protect this
disparity that underwrites and en¬
courages
both
monetization
of

subject

"Times" added:

Three, that the general and
specific suggestions which have
occupied our attention either

Treasury

the

remove

Lewis G. Hines; for

out.

this too low short-term rate.

would,

First,

debt management from the

was

Brotherhood

the

Co., Philadelphia, with which he

banking
can

of Labor

had been associated for sixty-four

normal

have

the

date—we

requirements

the

other rates.

results

inefficient debt man¬

and

is the short-term interest rate and

and the successively longer
that encourages debt moneti¬

zation,

on April 2 opened Its hearings
JMcCarran Bill which would provide that all International

full

One,
the important starting
point in our interest rate problem

low

The Senate Commerce Committee
oft the

the country?

discourages

short-term

workable result when one
endeavors to compromise a detail
(regardless of its apparent politi¬
cal importance) with a require¬
ment that is fundamentally impor¬

debt monetiza¬

the

How

rates

fortunate

ren¬

tory

general

credit expansion I

been

American economy.

•individual buyers? i
tion

have

things clear:

the basis of debt monetization
is it that their lowness

the

interest rate requirements as

private

too

Move to Consider Air Agreements |
|1|
Treaties: Labor? Spokesmen Critieal

suggestions are naive,
aviation h^reements-pi.ust be considered treaties and sent to the Sen*
Utopian, or belong to the history
ate for approval; the committee's chairman, Sen. Bailey (D.-N.C.)
of classical thought such
as
is
expressed the opinion that air, agreements recently concluded by the
exemplified by "'Atlantis Lost."
State Department with Britain and France are in reality treaties and
I remain convinced of only one
should therefore be submitted tc.^—
*
——'
thing—there is much misinforma¬
the Senate for ratification.
right to adjust their operations
tion, misconception, and politics
The air agreements were severely accordingly.
'
;
involved in much of the general
"Mr. Roth declared that the Govr
criticized, a special dispatch to
criticisms, suggestions and speci¬
the New York "Times" from Wash¬ ^rnmehl waseqncurring in foreign
fic remedies proposed. I sincerely
ington Apr. 2 stated, by represen¬ applications for airlines owned, in
doubt
that any political group
tatives of three organized labor whole or in part, by steamship
could afford to sponsor with ade¬
organizations and one trade asso¬ companies while at the same time
quate force the more desirable
ciation on the basis that they it denied applications from domes¬
remedies.
would operate to the disadvantage tic airlines if any steamship line
Under such circumstances, and of American
enterprise. Spokes¬ owned an interest in them."
particularly in the light of the un¬ men for the American Federation

sufficiently

agement,

rates

thereby

laid down by

new

interest

adequate

difficult as to
inadequate to the
needs of satisfactory production,
employment and prosperity.
In short, most of these moves
endeavor to compromise between

Certificates, s on
offerings of lon£term issues, the market rate of
•these, the rate on E bonds or on;
mortgages?
on

Treasury

be described

And,

interest

Some of my friends say

such

credit

dered

falls into

one

•

the extension of other bank

would

Which rates? Those

too low.

are

that

knowledge

the fact

One, it is too general,
Two,.it is too specific.
essence

earnings

extension

operative effort and unselfishness.

The

bank

credit would have to follow

ing the problem; one which will
require the maximum of our co¬
Our less real progress
two classes:

reduction

over

greal job ahead in solv¬

I do not know quite how to

attain it.

convenience

Three, either additional controls

But

too little.

tion.

must:

tioned.

undertook to borrow too

'v;.'

banking structure, the desirability
of which may be seriously ques¬

well.

devised.

were

rate
other

would be attained by marching in
the direction of a 100% reserve

rules of wartime debt

management

impasse

relative to

cooperative defense of such

rate.

blame, if it must be placed,

where the

is too

the

short-term

Two, the political

falls at the doors of Government

low

importance, however, that we not
•fall prey to the frailty of quarrel¬
ing amongst ourselves as to which
segment of the economy is most to
blame for what has happened. On
the whole, the American people
The

solution

a con-

that results from the Federal Re¬

important that this progress
continued. I think it of equal

have

three

about

rates, and the monetization of debt

It is
be

by
!be

serve's

;;

turn,

•

that

ple than they benefit, and' that
too large a .proportion of .debt: is/in
the
hands >! of-; the
commercial
banks. In other words, a wider in¬
terest in the; problems of debt
management has been aroused,
and with it a properly expanding
;

occasioned

monetiza¬

venvient

still with us; that low
interest rates may adversely af¬
fect a far greater number of peo¬

can

One, they would provide

are

;

suggested remedies

ways:'.

greater publicity for the fact that
debt can have a profound effect on
our future; that the monetization
of debt has been an underlying
cause
of inflationary pressures;

concern.

attained

general progress to date has
consisted primarily in obtaining

tion

relationship to each other
individually.-.1
It is gratifying to see that Mr.
Baruch is calling for similar ac¬
well

1959

these

Our

.that the mechanics of

results

than

faster rate

at a

progress

secured

by short-term Treasury se¬

The

this period we must make real

reserves

curities.

liav& nspell.

ceipts-rWe

be increased and

reserves

these

some

either by deposits with the Feder¬

part to the fortuitous condition of
the Treasury's probable net re-

in their
as

of their
wartime increase in deposits be
secured only by short-term mar¬
ketable issues, or
Three, that the percentage of re¬

fore

issues,

Treasury

Two, that all

Present Situation

The

C0MMERCiAPl fitiANCiAI^ttRO

1PHE

Number 448Q

Kuhn, Loeb & Co.
April 9, 1946

British

The

dus^rial cbhcenis; and jreal estate plants—they could not do much
with worn out German tools—the
were assessed at over $2 billion—
zones were combined into a sin¬
settlement does not exhibit the
gle unit; the Eastern zone was set over 10% ^ the total national in¬
apart for Russia and Poland.
A come of Prussia- came front them. magnanimous humanity of Presi¬
reparation frontier was set up di¬ It is difficult to estimate the dent Wilson's original scheme. He
viding German assets abroad. Those value of the Polish share of East had deliberately eliminated war
In
Bulgaria, Finland, Hungary, Prussia, PomeYania and Branden- costs, and had proposed to com¬
Roumania
and Eastern Austria berg, since these regions are part¬ pensate only civilian populations
for their actual losses.. The new
were to go to Russia, those in other
ly in Russian hands.
;
;
It
The total amount of reparation scheme is far more realistic.
countries, including neutral coun¬
tries* jtb; thetothefc^lie^
payments will never, be known, openly takes into account the di¬
ing to President Truman, Russia is for Russia is not obliged to ac¬ rect financial costs of the war. By
to get 50% of all reparation tak¬ count to the Western Allies for doing so it precludes the alterca¬

„

ings, but this percentage has not anything
taken in her zones.
incorporated in the written These, will1
nev^r he Md
agreement. Russia has undertaken their intention to share repara¬
to- conipensate P oland ; she has
tions with Russia on a 50-00 basis
ceded to her that part of her zone
has been fulfilled.
1
W
.

been

lying'East of the Oder-Neisse line,

thfe eession to date from the Pots-

^^Allle#^

tions*
; and
, misunderstandings
which had vitiated the former ef¬

As the fear
of
mass
unemployment outside
Germany is receding, economic
may7 gain

considerations

weight, and the economics of fear

be relegated to the back¬
ground, at least during a period
of transition.
7 ' '
.7'
may

agreement is reported un¬
der which certain German indus¬
An

permitted to exceed

tries will be

output restrictions imposed upon
them.
The excess is to be used
for

reparation, payments.
German External Assets

B consists Of external
German assets;: They are divided
Group

Russia, to
iit. Fin¬
countries gebgfaphically-—assets
them the Uniled,States^- land, eastern Austria, Bulgaria,

It is generous to

fort;

They would scarce¬

zone.

ly let them run them.

Reparation Settlement

!j. (Continued ironj page, 1927),

•Thursday, April n,

FINANCIAL CHRONICLE

THE COMMERCIAL &

I960

Poland, to the oversea

amongst
the (toe great Power which; has no
devastated' areas to repair, whose

Hungary and Rbumania- going; to
RussiaT-the- r^st goes- to tM other

civilian; papulation
underwent AThesC TRgr OTitdd; States" is" maiiiWill give her
15%- of; her takings after; the Ber¬
,mpyals from the westernzones next to no, privation, and to Whom
Gefthah
lin Conference^ from the remain¬
a few billion dollars mean very
havefltP be determined ;.;by tfye
ing Russian zone and 30% of the CPntrpl 'Council* under policies little.- If' the tentative figure of orfgtnaljy V^fy mucR
capital equipments goods, which:
fixed hy the Allies R^aratipn $20 billions mentioned by Presi¬
the Western Allies have promiSed Commission—lsubiectf to .the- ap¬ dent. ;Trumair could actually' be ;eral MbtbrS^
or
Atoeriban brajm^ : establish^
tO reradve to Russia; from - the:
proval of each zone' commander. reached, Russia wpuld receive $10
Western zone.- ;Thte Western' 2one,
They are expected to furhish;55% biliibhs,: .Great- Britain^1 share "mentis all ever the Continent. Th£
Would be $2.5 billions,' that [ of Weimar Republic had heither the
being more highly industrialized of I all. reparations
bar
i0.% to be "earmarked. for Russia. Frahce and c the" United States
dam agreement. She

: ^

;

German
in

commercial

1945

competition

parts of the world.
It
of the earliest blows
dealt

many

;
was one

by capitalist governments at the
institution of private
property-^
even
though compensation was
made compulsory. 7
•
Superiority of Potsdam Over Pre*
vious War Settlement
-

The Potsdam reparations
settle*
ment claims to superiority over
its
predecessor are true in some re¬

spects. The Versailles reparation
plans kept the World in turmoil
for nearly fourteen
years; they
were never; fully executed.
The
Potsdam* reparation agreement is
to be earried thrbujgh within two
years from Feb. 2* 1946—within
th^e yeara ^more'v Russia would
Mye to finish her return payments

bhl5%^fthe:removalofcapital
equipmeht. 7 Polan<i and Russia
have? ptobably^ »y -now removed
everythibgwh^
hist thfe^ndjof February haapassed
.

long iago*

wester

have mot beenf iked.;

their deliv*
ery^haaihbt eyehsstariplA

rT^

Southern half—has to contribute

Western removals > have to be about $2 billions.
in order: to i booked
carefully. Some guesses
Treatment of Private Property
establish full equality; 10% of the at the amount received from all;
In the westeren zone non-incor¬
industrial capital equipment in the zones may be
possible later on
Western zone. The Western zone,
when elaims fPr compensation of porated private property and es¬
the peace economy of the German
German deportees from the Ger¬ pecially privately owned land and.
people was to be given to Russia. man Government will have been houses do not seem subject to
confiscation;
In the Russian zone,
Ahother 15% of it was to be ex¬ made;
The Soviets may be will¬
changed with Russia in return for ing to present most elaborate confiscations of so-called large
goods (coal, potash, zinc, timber, statements for the edification of estates are taking place. But these
clay products, petroleum products statistically minded western ad¬ lands are not appropriated by the
and such other commodities as
mirers; but these would not be Soviet Government,.they are dis¬
may be agreed upon).
These 15% subject to any check. Since Rus¬ tributed amongst local popula¬
do
not
increase
Russia's
total sia does not
recognize private tions; a remnant not required for
share, they represent a barter of property, she need not provide this purpose is set aside for set¬
Western
capital
goods
against expropriated owners with docu¬ tling
German
deportees
from
.

the

Eastern zone

eastern

materials

raw

food¬

and

ments

which claims against a
can be based.

Czechoslovakia and other Russian

stuffs: Russia is allowed to spread

German Government

dominated

five years this return pay¬
ment for goods she is to receive
within two years. Poland's share

The authors of

German

over

reparation settle¬
ment which dispenses with full
accounting have little reason to
a

states.

Property
the

landowners in

Rus¬

zone is thus being used for
compensating a few deportees,
call their work superior to that whose possessions had been seized
out
at
Vk%
(30% of Russia's of their
predecessors in 1913-1919. by their former governments. In
share).
The reparation frontier is really a this way, Poland and Czechoslo¬
Procedure in the eastern and Mason and Dixon line on both vakia get ample additional repar¬

removals

western

zones

identical.

will

work

seem

to be

eastern

zone,

do not

the

Russia has received

sides

of which opposite property
concepts prevail.

seem

from

the

western

zone

to be limited to "usable and

complete

capital equipment un¬
necessary for the German peace
economy." The amount of remov¬
als from the western zone is to be

determined

within six months—
from Aug. 2, 1945—and was to be

completed within two
Feb. 2, 1946.

years

from

unit.

potential is the main
object of the reparation
scheme, banking and finance can
scarcely
escape
unscathed.
If

They have to be divided amongst
18 claimants, each
receiving a per¬

banks and mortgage banks are to
be included amongst the "shares"

centage in two distinct groups.

the

The Western Zones

The

50-50

proportion

may

not correspond fairly to Rus¬
sia's losses or to Russia's contri¬

may

bution
of

The assets of the three western
zones

to be treated

are

victory.
It leaves out
account the huge territorial

compensation Russia has secured.

as¬

sets and current production—coal

exchange contribution of

the Russian zone would fit in here
—whilst group B comprises plants
from which equipment can be re¬

German shipping amounting to
1,189,600 gross tons, valued at $80
millions,
is
being
distributed
amongst the three great Allies.
Russia will share her allotment
with

Poland, whilst Great Britain

Her bargain with Hitler in August,
1939, without which the World

and

the

care

of the claims of the smaller

War might not have started, gave
her a territorial gain of 174,000

Allies,

square miles, with 23 million pop¬
ulation.
The war with

Finland,

account

of which

Russia

was

ejected from the League of Na¬
tions, added another slice and
provided her with >eveh better
frontiers.
She has now acquired
the purely German part of north¬
ern East Prussia.
Her European
Conquests up to today amount to

256,000 square miles, with nearly
.24 million inhabitants. Land gains
Jby the Soviet Union are differ¬
ent from land gains by capitalist
countries. Class-enemies and nonAssimilable; aliens having been

milled, deported

United States will

whose

merchant

take

marines

have suffered heavy losses in the
war.

port

Fishing
facilities

fleets,
and

dredgers,

inland

ramifications

water

transport will be dealt with later
Germany is to be left about

200,000 tons of small ships.
(The
ocean-going ships • seized under
thfe .Versailles Tre&ty were valued

$172,700,000.)
Great

Britain's

groups-A
that

and

the

share
will

United

seizure

will

deep into the structure of pri¬
vate property.
Shares of enterprises and plants
in group A are valued and allot¬
ted to a particular national claim¬
ant.
In December, 1945, for ex¬
ample, 26 plants in western Ger¬
many,
valued at $92 millions,
were divided amongst the Allies;
Russia received 47.8% of them;
52.2%
17

be divided amongst
The allotment

were to

other

states.

included only moveable equip¬
ment, not buildings; the receiver
is expected to scrap the plant and
to

the

remove

from

be.'25%;

States

and

France

each
about
20%.
The
values of the two groups are not
the same; Great Britain's 28% in

group A and 27% in group B work
at
25%
of
the
total; and
France's 16% and 22.82% at about
out

equipment.

The

United States is evidently by now
taking a more realistic attitude
than originally envisaged.
They
are

offering

allotted to
The Russians have

concerns

them for sale.

on.

cut

Group A embraces foreign
and the

war

avowed

moved.

Russia's Territorial Gains

ations outside the German repara¬
tion settlement.
As the destruc¬
tion of

blank check

for looting; everything which can
be removed may be removed. Re¬

movals

sian

practiced
scale

removals
all

the

large
they have

areas

occupied; they, have not worried
much about the national character
of plants, looking upon everything
as

"booty."

They

copying the
methods the Nazis used during the
war

are

in order to increase their

war

potential.
For the purpose of reparations
these methods are scarcely satis-*
factory. The costs of dismantling,

packing, transporting and reestab¬
lishing a large plant are very

or expelled, their
accrue
to the state; 20%.' The. United States would great. It would
generally be mpre
he entire private property of the have-topped the list but for their economical to leave it in its
plaice
inhabitants is vested in the new renouncing claims in group B by and to run it for the benefit of
the
more than
rulers.
half, to 11.8%.
They claimant, and get the goods im¬
are to get 28%
of group A (for¬
too, have not only ac¬
mediately. But this can only be
Smaller suf- attempted in the claimant's own
quired
"sovereignty" over the eign investments).
possessions

land gains

he
:

by the deportation of
Germans; they, got all im-

novable property and all

able
lad

goods -which *the
left.

ivhich

move¬

Russians'

In the three provinces

will

completely

an¬

nexed by Poland* agricultural, inllr

,ferers

Greece

the

Netherlands

get 3.9%
2-7% and 4.38%.

and

5.6%,

zone,

where it has been done quite

frequently

temporary meas-?
ure.
Since it does ..not destroy:
German war potential, it is scarjce-l
Scheme Realistic \y admissible on a
permanent

Notwithstanding the
tion of the United

renuncia¬

States, Canada

and South Africa of their share of

basis.

willing

The

.British

let

have

Russia

been

dismantle

tionafs foreign; mvesttnients for

pressure policies.
It
was h debtor - country.
Such in¬
vestments1 as
its > citizens
held

imperialist

dered

thei transfer issue, the

conversion of Geimian; inarks into
AUied currencies; This is but par¬

tially true. Of-the $5 billion cred¬
ited to Germanyforxeparations
flight: capital
which had managed: to stay there, up to Tlulyi ;193I;x^2!.billions had
been paid in kind; they
or funds which had originated inincluded,
as does the Potsdam
agreement,
regular business transactions
the German mercantile marine,
Amongst the latter were those ol
to $3 billions Ger¬
the Dye Stuff Trust.
Its branches Moreover $2
in many countries had been con¬ man external assets were turned
over to the Allies.
At Potsdam,
fiscated as enemy property after
the first World War.
In order to the Allies have fixed no total;
avoid these risks, it had switched they determined the type of goods
they were going to take, irrespec¬
over
to an exchange of patents
with foreign firms.
Before the tive of what they might finally
amount to; there is no minimum
advent of the Third Reich, its po¬
litical affiliations in Germany had and no maximum, only the per¬
been liberal—though some of the centage due to each Ally is fixed,
sinister figures who were later to This being so, the settlement can¬
play with the Nazis, were emerg¬ not fail quantitatively. No trans¬
fer problem can arise; the Allies
ing in its management.
The Nazis changed conditions scrap the plants and remove the
fundamentally; they transformed equipment over the border. They
will receive payment in their own
exchange
control
from
purely
monetary devices into a mechan¬ currency, from their own national
Were
their plants,
ism
for
authoritarian
planning. purchasers.
Foreign funds no longer served however, to run in Germany, for
the German market, they would
legitimate trade purposes; they
helped speeding up armaments, yield only German marks, which
abroad were £ithe£

subsidizing fifth columns, and fi¬
nancing espionage. German busi¬
abroad

nessmen

were turned

into

Nazi

agents, spies and political
progapandists. Interchange of pat¬
ents

was

pose:

used

for

double

pur¬

German patents limited pro¬

duction in the

sales

United States

American

and

manufactured

goods abroad; they helped to keep
the Germans informed of Ameri¬
can

cal

industrial progress.
Recipro¬
commercial intelligence
be¬

political espionage.
Natur¬
ally public opinion in the United
States, mixing up patents and car¬
came

tels,

sees in foreign investments
international cartels the ten¬

and

tacles with which the Nazi octopus
had meant to strangle the nations
of
the
world.
Even
after
its

death, it seemed wise to cut them
off, so as to prevent its rebirth.
The

total

been

volume

investments

foreign

ascertained.

millions

has

German
not

About

yet

$200

in the United States

were

$87 millions in Sweden,- about $1 y2;
millions
and

were

Latin

America,

$250 to $500 millions in Swit¬

zerland.

United States

The

can¬

not expect much more than about

$2 billions from the entire repara¬
tion
settlement—not enough
to
pay

interest for

the

war

from

debt.

fear of.

partly from
cial

single

year on

They act mainly
Nazi revival, and!

mixture of

and "political

commer¬

anxiety.

They*
hope that by destroying German
investments
in
ft&tfo America]
German commercial rivalry and
German political influence can be
broken for all time to come.
In
this respect, the Potsdam Agree¬
ment

but

copy of the Ver¬
sailles treaty*: themotiyes pf which

^ 1l2t ;d^fer greatly ffonuihosei

.pr^afenr at
videfifuh^
Hid

WiOn^O'

ovr>li«in;

the

im¬

it; is ;eaid7 hecauseMt was based

...

would

have to be converted into

foreign currencies. This can only
be done by German exports.
As

Ipng; as

Allies

the

ceilings

putting

are

German production
and limit exports to reparation
deliveries (coal) and to payments
for imports, no funds for transfer
are available.
Transfer problems
are

however purely

quantitative.

needed require
but a modest proportion of ex¬
ports, matters can be adjusted by
slight changes in the prices of ex¬
port and import goods.
Once the
percentages were to become large,
a breakdown would be inevitable
—as
happened repeatedly under
the
several schemes under the

As long as the sums

settlements.
under the
Potsdam
agreement.
For the
Russian share, representing halt
of all payments, is outside the
capitalist transfer mechanism. The
sums
arising from the Western
zone, which are not covered by
ships; physical removals and de¬

Versailles.
It

will

liveries

reparation

not

and

happen

assets will

external

They would be
nature of dividends, not of

be small.

charges,

and

such,

fixea
be mucn

flexible.

Defects of Reparations
But

the; settlement

Settlement
grave

has

defects. ,No -attempt
has been
made to correlate it to Germany s

capacity to pay. The Allies have
imposed only one limitation UP0"
themselves; they m u s t leave
enough resources in each zone 1
.

people to sub¬
without
sustained - support
other nations.
This is

enable the German

sist
from

vague,

rather

meaningless

Stfaint. r:If van;Ally

much? eithCnbecause

nvt|b
her was-SPo

iRussia iias- llately
,r.
moVali,.f; shcs:i3 • d;ismantlipg^¥^
beet.4stigar fac^oiries ip.}h®r

163

Volume
rfrppdv

SfrE COMMERCIAL

Number 4480

because

he had mis¬

calculated

the situation, the limit
overstepped. - But the
undo- what they
done; they can neither re¬

been

has

Allies

have

cannot

booty nor refund invest¬
will have to support
face a social and
political crisis. They have evi¬
dently not" properly evaluated the
Social disintegration prevailing in
Germany as the direct result of
war destruction.
They imagined
turn the
ments. They
the

Germans or

loss of large territories,
confiscation of the mercantile

that the
the

marine,
heavy

the dismantling of all
and chemical industries,

expropriation of all external
resources and the influx of de¬
portees would have no permanent
effect on German life.
So they
stipulated that the German stand¬
ard of living must not rise above
the

& FINANCIAL CHRONICLE

from invasion by the early fall of

the shareholders of the Dyestuff
France, which made violation of Trust and other war potential
its neutrality superfluous — will concerns.
They " can of course
suffer the financing of neo-Nazi- shift the distribution of the tax
ism with funds under its control.

burden to

Yet

of the future.

strong pressure is put upon

it to hand

over

all German prop¬

posed it

German

people

German

government was es¬
tablished, the least they ought to
have done was to stipulate very

should

Government

As they have im¬

the

before such

erty to the Allies, and thus far
no suggestion has been made, that
the

German Government

compensate its subjects for com¬ clearly the right to compensation.
pulsory expropriations.
It is a Confiscation of property as pun¬
very curious spectacle to see a ishment for individual misdeeds
small neutral European nation de¬ is a very different matter from
fending the social order of the expropriating particular types of
Western "world for the mainten¬ property
holders because their
ance of which the Western Allies
possessions are handy. Ordinary
went to war—the
right of the shareholders of industrial prop¬
individual against arbitrary gov¬ erty or of foreign assets taken
ernment—against the attacks of for reparation purposes, are not
Rebel

Southern

the victorious democratic powers.

crisis

amounted

billion

marks, of which at least 10 billion
marks

arose

inces.

the

lost

prov¬

billions and 2 billions of marks

for the cost of the armies of
occupation would leave about 55

year

millions

for

home

consumption

the reparation charge in 1928 was

only about 2 billions, (leaving 75
billions for home consumption).
Events

were

show

that

these

charges were excessive.

The na¬
income will scarcely reach

tional

Fiscal

1932

year

was

low

billion.

The

Germans

cannot

complain
it

Slave¬

perfection," and Mr. Pauley,

near

drawn

been

the

up.

.#>£>•••*■

Foreign Trade
ployment—Amos

and Full Em¬
E. Taylors-In¬
stitute on Postwar Reconstruction?
New York University,. Washing*
torl Square,

New York 3, N? Y.t+*

paper—25c.
Full Employment in Practice^

binf

John H. G. Pierson—Institute

Postwar
York

Reconstruction,
NeW
University,
Washington

New
paper—25c.

York

Square,
Bank

Goverri*

and

Earnings

Y.i^|

Holdings—Geyer

ment

Co^

Inc., 67 Wall Street, New
N. Y.—paper.

York!$t

J. B. Ramsey, Jr.,

Joins

James B.

Ramsey, Jr., will join'

the sales staff of Lyons &

Shafto,

Inc., 70 Pine Street, New York
City, on April 15. Mr. Ramsey is
a
veteran of the U. S. Marine
Corps,
cific

having served in the Pa¬

v'r>

area.

Pennsylvania Indicts Nine?

property,—or she can resort onfce

mean¬

;—

is patterned after their own loot¬

governments.

Hansen—Insti¬

Postwar

paper—25c.

the Potsdam agreement;

about

Recqastructiopi
New York University, Washing-*
ton Square, New York 3, N. Ym

tute

Policy for Full Employ-!

ment—Alvin

the 65 billion limit.—in the crisis

ing practices. It will not lead to
Nobody can hope for respect for owners under Lincoln's emanci¬ inconclusive
financial
confer¬
private property from the Rus¬ pation proclamation* - This is a ences,
producing
one' abortive
of • both plan after the other. As a method
sians, but; the pressure on Switf fundamental ^question
that of :the average standard 4of;
zerland is exercised by the United high policies and of justice ac¬ of speeding
up destruction of war
Europe—Soviet Russia and Great
States and not by the Soviets.
cording to Western ideas. The potential and re-starting Russian
Britain being
excepted^ These
so-called capitalist system is not
industries, it is extremely well
clauses offer great opportunities Reparations for German Nationals
so firmly rooted as to permit tam¬
conceived.
As a financial meas¬
for future theses for the Degree
The
reparation
settlement pering with its underlying prin¬ ure, it combines Nazi ruthlessof Doctor of Philosophy, for it
would appear less objectionable ciples,— even if this is tempo¬ ness with Soviet crudity. It bears
will not be easy to establish a
from the point of view of West¬ rarily convenient. It is as unwise the hallmark of Moscow where it
standard of living for Europe as ern
principles, if the duty of the to pauperize German sharehold¬ was concocted.
It copies faith¬
a
whole, in which Albania and
German Government to compen¬ ers as to proletarianize her in¬
fully Nazi streamlined methods
Holland and Italy and Belgium
workers.
There
is
no
sate its nationals were strongly dustrial
of looting. The Allies represented
have their proper place.
It char¬ stressed. It should be
stipulated reason why the Allies should ex¬ by the Western Powers, especial¬
acterises the insenate fear the au¬
in a much more elaborate form onerate from reparation burdens,
ly the smaller countries devas¬
thors of the Potsdam settlement
of
than in the Versailles treaty, for owners
land, the value of tated by the Germans, will get
have of a rapid recovery in Ger¬
compensation was not carried out which their policies of de-indus¬ very little, for the plan is reduc¬
many.
in an equitable way.
Yet there trialization and deportation are ing Germany's capacity to pay to
They have now decided that by
may be some justification for this bound to raise less anyway.
a very low level. As an act of re¬
1949 the German standard of liv¬
omission.
The original scope of
taliation, it is perfect; as a lesson
ing should be that of 1932, when
The Fundamental Weakness
the
reparation agreement
was
in democracy, it is not very im¬
the National Income was at its
of the Settlement
purely destructive.
Its aim was
pressive. One cannot convince a
lowest level (45 billion marks).
to create chaos, and thus make
The fundamental weakness of stubborn people of the wicked¬
The fundamental misconception
the German people feel its guilt. the settlement is due to the ab¬ ness of its ways by carefully im¬
<of the agreement are however far
Undoubtedly this goal can be eas¬ sence of a German treasury. So itating
them.
The
Germany
more
serious.
The
settlement
ily reached on its material side, far the central financial author¬ emerging in years to come from
makes no attempt at distinguish¬
by undermining Germany's eco¬ ity which the Potsdam agreement Allied administration, can either
ing public and private property. nomic foundations as
thoroughly had postulated, does not exist. balance her budget and default
It vests a number of privately
as
possible.
From this point of Taxes are collected in each zone, on her
debts,—including
com¬
owned German plants in the Al¬
view the reparation agreement is but
no
unified budget has yet pensation payments
for private
lied

Business €

reparation charge of £

PHILADELPHIA,
PA. —Nine
that these the American representative, has
time, reparation liabilities are be¬ more to inflation and unbalanced
indictments have
been filed
plants having been misused and every right to gloat over his great
ing created regardless of treasury budgets. Neither alternative will
against Canadian firms charging
being capable of being misused by achievement. It may be doubted
assets, and the question of ca¬ strengthen^ the social fabric of violations of the Pennsylvania Se¬
their managers at the beck and call
however, whether both as a fi¬ pacity'to pay is ignored.
The Western Europe.
They calmly assume,

a Nazi
government, no longer
belong to their shareholders. The
Versailles treaty too had expro¬
priated German private property.
It had limited the range of ex¬

propriations to plants and assets
in the ceded areas of Alsace-Lor¬

countries; it
made it very clear that it con-,
sidered them "private propbH^'i
the substance of which, should b'e

raine

enemy

nancial
for

moreover

used

means

tracted

(under the clearing ar¬
rangements)
claims of private
creditors
in
Allied
countries

satisfy

blowing

the

Potsdam

those

which

originated in flight

its

control, whose owners
had risked the death penalty by

—

marks

at 4%; the

year

about

goods
and
claims
on
them
(shares), whilst
the Versailles
scheme was ultimately based on

Nazis

the

before

came

marks.

billion

bona-fide >> private
ex~

the

prices,

Beardslee, President, and Fred

thanito::th#! Uhtted-Stfttes
^-Switzetlatid^ was : only : saved
4

Gordon C. McMacken, McMacken
&

Reid,

Toronto;

B.~ Stuart,

Bowman, Stuart & Co.; A. E* S.
Broadley, Hudson Securities Co.;
and G. E. Matten, Gordon Daley
&

Co., were named in the indict¬

ments.

99,000 Shares

oration

M-n

:: r;

COMMON STOCK
■it
■

ii
»

Price $3.00 Per

l
!■-. -

f»p«y.

**•/•,

i-'

WILMS E. BURNSIDE &

assump¬

of pri¬
property, whiclr £y its'physistructure has^fHttd^intft tbeir

tion-that a particular type
«al

final, burdem-were

Ayithi

'• *';

30 Pin© Street,

•

at war

-Ti

:; ':Lf

■
*>

■

New York
*

Telephone WHitehall 34852
.

mdieiy; with

i.;

•

; 4'^

•.

■ •

*•"

>y-Ji

...

/
am

••."^.■^A^-^aassaBtBaaaaBiawiaarnniiiwww#nilMia»»wiarCT)wiregB^B»8CTVwaraBiiBBOTgTirrninffli«ra^

Si-J® :|t#S

„

r :

the. entire-Nazi -dominated

man

stock.

declared,

Honigman

purchased stock at twenty cents
a share, while another paid sixtythree cents per share for identical

rities business. Officers are James

in, was
These

Mr.

stating that one Allentown

in the secu¬

were

^rmaminrntaist ^fcd^nat very, reparation: plahs;-r should- bear the
likely thafcth**

offices

Talbot,
Vice-President
and
crisis years; yet the
Secretary.
Mr. Beardslee was an
country is not likely to reach
industrial member of the National
even this low level after one-fifth
of its territory has been cut off, Wage Stabilization Board in Chi¬
when its cities have been de¬
cago.
Mr. Talbot was Vice-Presi¬
stroyed, and its industrial plants dent of J. P. Arms
Incorporated
have been either hit or removed.
of Minneapolis.
The national income before the

years

vate

with

in the world.

have no/claim:;whaf»Oev^
the private 'property ^in
;1

formed

been

Rand Tower to engage

were' filed

Montgomery County.
The stocks
were
sold at
widely divergent

has

Company

five

York;

one

other "indictments

it has already broken
work

ihey cannot accept the

Countries

Beardslee-Talbot

and

County

Chronicle)

MINN.—

down before it has begun to

under international law the Allies;*

against
neutral*

to The Financial

MINNEAPOLIS,

municipalities,

including

bodies,

attempts

The impact on Germany more¬
removing them.5 It asserts the
right of the Allies to act as suc- over, cannot be settled by this
cessoPof the Nazi government,— rapid transaction. So far no con¬
nection between reparation and
an assumption which may be or
finance has been established. For
may not be good law—and it takes
the
Russian-Polish
zones
this
over private property which was:
does not matter; since according
never owned by that government.
It justifies its attitude by the fear to Russian concepts all private
that those funds might be made; property removed by Russians or :
Poles
was
held by "class-en¬
available for financing a Nazi re-;
vival. ' Undoubtedly Nazi leaders: emies,"—this being the nature of
own foreign funds*; an&it is most all private property—there is no
need for saddling a future Ger-;
desirable to get hold > of them—.
man Soviet Republic:- with com¬
though this might not .always be;
The Western Allies
easy,; since the Nazis were expertsi pensations.
in camouflagtog^But as the Swiss .cannot justify .their financial poi-i
ides
by communist principles,
Government
has

pointed ^out.

(Special

mark value of the 20 bil¬
lion
dollars
originally expected
from reparations is at least 200
billion marks,—or another $8 bil¬
lions a year.1 But the total nonloan
revenue
of
all
German

satisfy reparation claims by
transfer of existing capital

five years;

least

paper

against private debtors in Ger¬
income and production. It worked
many.
The Potsdam settlement
towards a final solution by which
completely blurs the line between
the
reparation debt would be
private and public property.
It
form of
claims all German foreign invest¬ commercialized in the
bonds to be sold to the public;
ments, including those in neutral
the
Allied governments to
re¬
countries,
for
reparation pay¬
ments.
It practically adopts the ceive the proceeds and the Ger¬
man Government to spread pay¬
communist thesis, that all enemy
ment in interest and amortiza¬
property is legitimate "booty." It
tion disbursements over a period
calmly assumes that the Nazi gov¬
The Potsdam plan
ernment was the
owner
of all of 59 years.
German private funds — even of was to finish reparation in two to
from

—

Its service would need 20

billion

of the Krupp

scheme

billion

must

marks.

works.

The

some¬

where between 400 to 500

regular supply of coal to
France is much more important
than the

leged sales of gold mine stocks.J. Myron Honigman, Pennsyl¬
vania
Securities
Commissioner,
announced that three of the in¬
dictments were filed in Lehigh

Germany

war

now

curities Act in connection with al¬

public debt con¬
during the

minimum of the

the Germans to
deserves
much

praise.
It has done nothing to
speed up the recovery of Ger¬
many's western neighbors, whose
moral claim to reparation is far
better than that of Russia.
Just

its original Own¬
ers, even though its form had to
change hands.
The bulk of these
was

Democracy,

reimbursed to

assets"

and

measure

converting

;

•

fp,:

Increased Federal Powei Weakening Democracy

}•«

i1"'

I
v

reserve

If
t,

jljf

.i#

'■0t

■k
Si !>'

r1"
I'; ••

,fe

#$'
!■>>
Vijjfl '

p:
V»m

Stji?

rights for grants of money
Merrtv

from the Federal Treasury.

berstof

Ml!'

Congress

are

over¬

go-betweens
for their constituents and the ad*
ministrative agencies of the Gov¬
ernment, writing letters in con¬
nection therewith, that there is
not time for them properly to at¬
tend to even the more important
of current legislative duties, much
less to study the basic problems
of government and to develop un¬
disturbed the type of statesman¬
ship which our circumstances re¬
quire. They have no opportunity
to get back among their consti¬
tuent and; explain^goyernmentei
loaded with work as

problems,; combat minority pr,es*
sure groups and gather the neces¬
sary first-hand information which
is indispensable to a proper dis¬
charge
of
their Congressional
duties.

The total of concentrated power

I
fit

»4

u
'i

the

self-respect, the love for lib¬
the governmental capacity
of the private citizen of a democ¬
racy is secured, it is preserved.
Although the whole superstruc¬
ture of government should be de¬
stroyed, such a citizenship could
build again, write a new Constitu¬
tion, select new leaderships) and
build a new governmental ma¬
erty,

But if the love for liberty

chine.

self-respect and governmen¬

and

tal

capacity of the private citizen
destroyed, it matters not what
else obtains, democracy dies as a
tree dies, rooted in the soil, which
can no longer sustain it.
are

Preserve

The

Governmental
of Citizen

capacity of the private
citizen, therefore, must always be
of statesman¬

lot of litters of other camels

in- the tent now,
come!
are

and still they

Just before Christmas
half

preservation of the govern¬

concern

and

Capacity

mental

first in the

:!ih

will as a therto a change in
temperature* If that did not octhe
member of Congress
roads. We knew the money wasn't cur,
would be defeated.
to be used for post roads.
The
pressure
came
primarily from
Fundamental Difficulty Not
Chambers
of
Commerce
that
With Congress
wanted
good roads quickly so
I do not excuse myself or my
they might tap the surrounding
towns and communities and suck colleagues in Congress but I know
from the standpoint of having this
out the vitality of the smaller
condition
corrected, the funda¬
places, persons interested in au¬
mental difficulty is not with the
tomobile sales, gasoline compa¬
Congress.
That is not the place
nies, automobile users, etc. They
where the remedy
is to come
did not want the whole camel
from.
It has got to come up from
shoved under the tent.
They only
the body Of the people who con¬
wanted
money
for good roads.
stitute
this
Government*
I do
The whole camel is inside now,

parity* would?
developed by its We didn'ir hava very much.
(Continued from page 1930)
the
authority
of
the
Common sense and the claimed
been willing to govern and exercise.
have been willing to barter their lessons of history teach us that if Federal power to building post
not

Thursday, April 11,

CHRONICLE

THE COMMERCIAL & FINANCIAL

1962

billion

one

and

dollars—not

one

dollar of which the Federal Gov¬
ernment

had—was

allocated

help the states build roads all over
the country, every cent of which
must be got from the people. Ad¬
ministrative expense of Federal
and state employees must be de¬
ducted.
Around
$7G0 Millions

determined public

mometer responds

not mean

members of Congress do

criticism or should
not be criticized.
That's not what
we are considering.
We are con¬
sidering watfs and means of trying
not

deserve

to locate the nerve

center. I stud¬

ship.

cern

of the nature of democratic gov¬

Twenty-one years ago, I intro¬
ernment, pressure from the people
in a program of decentralization duced a resolution in the House of
Representatives to create a com¬
will be required ol them.
nothing to indicate that a reallo¬
cation of governmental power* in
line with our constitutional ar¬

rangement,

can

be brought about

mittee to

pacity.

It must be first
to

our

agenda

get the states under their nat¬

ural share of the load of govern¬
mental

responsibility, thus mak¬
ing certain the removal of dupli¬
cation of administrative agencies

and

tax

burdens.

That

would

leave to the Federal Government
the

discharge of Federal business.
By reducing its responsibility, it
Would

make it possible for the
Federal Government to be oper¬
under

ated

laws

enacted

by the
Congress instead of directives
emanating from an appointed perSdnnel.
It would make it possible
for an intelligent member of Con¬
gress to have a chance to become
a statesman.
It ought to be clear
that by putting back in the states,
which are the natural habitat of
our democracy, the governmental
'responsibility within their capac¬
ity, their sovereignty would be re*
established, pride in them, respect
for and dependence upon them
Would be established; and the

The

thing of transcendent hn-

brtance is that through this ar-

lMngement,1 putting governmental
responsibility back close to the

people and into units of
ment
to

govern¬

sufficiently small for them

ac¬

ing the Federal Government ma¬
chinery could not be sent back to

the

financial

condition

Federal Government puts

the

peril the value of all outstanding
obligations, including its own "ob¬
ligation, we ourselves make this
draft upon

of our then condition

Promoting Individual Irre¬

few changes, would be descrip¬
tive of our present condition, ex¬

However, that is not the worst
thing, We are teaching the chil¬

cept as to degree.
As I recall,
there were then
about 500,000
Federal employees connected with

dren—the citizens of tomorrow—

this

notion

ernment.

individual? -com¬
munity, and state unfitness, irre¬
sponsibility and defeatism, feed¬
ing to these children with their

Governmental

noonday lunches, the idea of get¬
ting something for nothing from

the Executive Branch of the Gov¬

My subject then was,
"Our Choice—Decentralization of

Responsibility

Government by a Centralized Bu¬
reaucracy." That was during Mr.
Coolidge's administration. There
was

interest

concern.

could not be bothered.

were

all young: grandma, grandpa and
the rest.
It was the Great Jazz

Age! It's a coincidence that I am
rather speaking to that subject
We do not know how close
are to the precipice now, but

now.
we

know that we

are closer than
21 years ago. How much
time we have left we do not know
—but less than we had 21 years

we were

We're all in the

ago.

cannot

afford

boat.

same

spend

time pointing the finger of
somebody else.

our

accu¬

sation at

Pressure Groups
We

hear

pressure

that

great

\ groups, j. f it

the

deal

about

happened

first

70V

«•

close to them and which
in their

with¬

are

capacity to operate.

Bottle-Fed

People

at. least had the

decency to try to find
ow

Federal

soi^e

shad¬

responsibility

grew

Each

section

learned

by
profit from

should

have

that, neither

now

can

an .unwarranted exer¬

cise of governmental, power
when
it is to its. advantage and
escape
that power when Others invoke
it
to its disadvantage.

Principles

are

eternal.

They -are frcm God. it
the right of the states to
govern^ but the necessity to
gov¬
is

not

ern as to

matters; within their

pacity, if

we are to

ca¬

have freedom

We. must be rid of the
accepted mythological

ernment..

popularly
tales.

They

are

hurtful; beyond

measure, because if we accept this
false notion that: human

beings

able to create our Constitu¬

were

tion, as

have and largely do

accept it, it would be sensible to
human

trust

by their

own

beings guided only
wisdom to formulate

the policies under which the Con¬
stitution shall operate.
Nothing
could

silly

than that
doing,
namely,
trusting to the theories of men to
guide us in its operation.
which,

Here

are

in the most highly
scientific age of all
time.
Nobody with any practical,
usable intelligence would attempt
to go forward in any, important
matter without having first famil¬
we are

developed

iarized- himself

with the natural

laws that-operate in

his contem¬
plated field of. effort and without
developing his own ability as far
as possible to work in harmony
with those laws, in order that he
might have their guidance, in getr
ting the benefit of the forces of
nature upon, which he must de¬
pend.
1
Just

look

over

the country,

out and look around and see

its nature

ca-

the people or our generation are

self-

doing in their daily work and how
they are doing it, making this the
greatest scientific age of all time.

upon

courage

and

Uncle Sam.
If it be

respecting free
It is

men

and women.

a.Jremendous job ahead

Governments

They

are

economy.

are

not accidents.

provided for in the big
Popular government

originates? develops, and operates
under natural laWvktft is not fool¬

proof, self-perpetuating. We have
not been willing to
pay in service
that which naturq;
charges to those

admitted, as this legis¬ who would be free. We
want Un¬
lation indicates, that the parents,;
cle Sam to do it for us.
We have

the
local
communities and the
states cannot be trusted to provide

been -willing to do within our
capacity that w|xich nature re¬
quires in order to, permit us to re¬
not

noonday lunches for their chil¬
dren, why should not the central! tain that
capacity.
Government take care of their
other
equally-great necessities?

experimental
stations, laboratories, and then go

Then take

us.

cepted

without

We have
gratitude

sense

science,

what

look at ourselves op¬

governmental

erating the complex

great republic,
government by the people, in its
nature dependent absolutely on
the governmental capacity of that
people and upon the guidance of

machinery

natural laws which limits human

discretion

and

determines

sound

See what we are doing to
governmental capacity; see

policy.
that

we are doing to the machin¬
of our Government; and real¬
ize how little we know of the na¬

what
ery

ture

ac¬

ofresponsibility;
Nature
We must, as private
citizens, real¬ doesn'tdo
business that way. But
ize that this Government is not in.
for

democratic

and

tee

natural

government

laws

which are

guidance of peo¬
ple who want to be free and self
governing.
for the aid and

Washington—that the people are our theydlfficultles respiting from
scientific development, we
this Government; they constitute;
might have blubbered a&mg as we Asks Inquiry Into Governmental
its hope, its strength.
Ours is ani are
.7 Capacity
trying to <$& No h&re—those
association of private people en¬
days
No
inquiry from a practical
are%ast.| We
familiar¬
gaged in governing themselves.:
ize ourselyes m least with the ba¬
standpoint is being made* by us
People ask me why these pres¬ sic principles
fed policies of dem¬ with reference to the place whicn
sure groups are so
powerful and ocratic government
which, among free government holds in the gen¬
why do not members of Congress other things,
the nat¬ eral scheme of nature in its deal¬
represent the people as against; ural
cleavage? between govern¬ ings with human beings; no con¬
these
groups.
These
pressure mental
responsibility of the states sideration as to whether a given

groups are dependable politically.
The unorganized majority, for one

and the governmental responsibil¬
ity of the F^derah-tergamization.

for

Northern states

stronger. **

schools-of

At that time

was

That of the

people bottle-fed and rocked
to sleep in the arms of a great

reason or another, in most
constft-; We must agree upon ? them
uencies, make large contributions
to help the organized
minority to shift our? position with

time

from

major pressure
Congress during my
money from the
Federal Treasury for good roads.
group

began to receive contribu
the Federal
Govern"
ment.rfrAs they did, their alle
giance to states' rights weakened
tions

and popularly-controlled
respon¬
have had sible government, and
preserve
me working at.
I know where the the Federal organization for
the
nerve center is. I know where tee
common good—a
respected and
source of My nation's strength is
cherished agent of these states
and where its hope lies.
That's and of their people*
why I come to you today, citizens
Through the centuries our Con¬
of a great* state, leaders in your
stitution had been developing un¬
respective*" communities, charged
der natural processes long before
with the responsibility in propor¬
we became an independent Gov¬
tion to your ability to contribute

paeity**-bf~" liberty-loving,

sponsibility

which, with

effectuate the defeat of

and

every

member

Congress whom they cannot:
control; while others get the elec¬
tion date mixed up with their
golf
is something

operate their governmental ca- justify the Federal appropriation. engagements..: That

the Treas¬

ury.

I undertook to support
resolution with a statement

states

Federal—bureaucracy cannot sus¬
tain a government depending by

additional

the states.

governmental capacity of the pri¬
vate citizen would be increased.

of the

some

cumulated powers then overload¬

that

governmental responsibility to the
states in matters within their ca¬

see

when

that power, supported what th^v
called :r the
doctrine
of
state?
rights. When the pendulum swuop
and inheritance and income tav
laws were enacted',
theSouthern

ied this job which you

It must be first in the con¬
our
private citizenship,
their
governmental capacity, if
they are not to lose the chance to
They are a statement of fact govern. No people, except by con¬ about the same time was allocated
which intelligent people must no quest, ever lost their liberty until to the states to build roads all
Under public
longer ignore.
We either lessen they had lost their will and ca¬ over the country.
to your nation's security.
the load of governmental control pacity to govern.
No people who pressure since Christmas, Con¬
Of
or change its machinery
course, conditions which
had lost their capacity to govern gress has authorized an appropri¬
and its
distinctive characteristics.
Criti¬ ever remained free. No capacity ation of millions of dollars to help arose oufbf this war and the pre¬
cizing Congress has long been a to govern, or any other capacity, pay for noonday lunches of school ceding w&r, and the natural de¬
favorite indoor
sport, but that was ever retained or developed children, public and parochial, for velopment' of Federal difficulties,
boys' and girls' camps, etc.
does not get us anywhere.
Un¬ tremendously increase the normal
Most except by its exercise.
der public pressure the nose of duties of-the Federal organization,
of the members of Congress are
These are not theories.
They
but instead of that being an ex¬
doing their best to discharge an are practical, important, work-a- another Federal camel is under
the
great big tent where- the cuse fo$%olding powers in the
impossible responsibility.
day facts.
In' our present situa¬
schools are.
More than that, this Federal,-Government which the
tion they should be warning and
Calls for Decentralization
legislation carries the implication states Can discharge and bringing
If we are to win
of Power
T~ alarming facts.
that the parents, local communi¬ i.p neurones from the states to"
through
the' difficulties
which
I tell you these things because
ties, State Parent-Teacher Associ¬ add to the present overload, that
confront us their dangers must
this is your Government. You are
ations, service groups of the com¬ is the greater reason why we must
arouse us, awaken an interest and
this Government. A democracy is
munities, etc., can't be entrusted put all ppWers back in the states
a
purpose which reaches across
an association of private persSns
to take care of the noonday lunch and smaller units of government
party lines and class distinctions,
which fbey are capable of dis¬
engaged in the common enterprise it is fortunate for us that there of the children of this country.
of governing themselvesr^Hoiycannot
maintain
Think
of
that,
done- -since charging., We
happens to be a definite share in
this Federal organization upon a
ever, as soon as such a govern¬
The
people
the
responsibility for our condition Christmas!
ment is initiated, like everything
structure, of states which are not
-between the two major political states have to pay every cent of
el .e which man initiates, It: comes
parties—all the sections, vocations these appropriations. In addition, discharg$p$. the general duties of
democratic government) and we
immediately under the operation and classes share in this
respon¬ they have to pay the cost of dou¬
of natural law.
That which peo¬
cannot memtain either the Fed¬
sibility.
Party politics or group ble administration by the state
eral or jtate government resting
ple do wrong they are required at
and
the
Federal
advantage must not be permitted governments
least to undo.
Just as pressure
to corrupt the purpose or weaken Government.
They take their cut upon a private citizenship whose'
from the people has resulted. in
are
destroying by
the strength which we must have out of the taxpayer's dollar before eapacit&iwe
this destructive concentration or
and must apply to our situation if one penny gets back to buy these shifting power from the smaller
units of government, which are
governmental power in Violation we are to remain free.
lunches.
Done since Christmas
utterly beyond the capacity of
the machinery of democratic gov¬
ernment. These are not just words.
is

ig46

wind of

advantage, tT

r4,

clear individual

thinking, govern-

mental, capacityjof a
zen;

1 whether

private citato

consideration given as
^

prooosed-

governmental

mm
When the Northern section of ernment where the grass roots ot
the country was profiting
through democracy are; no consideration

1963

163 $ Number, 4480

Volume

rtiven

pacity

the limif of

tory

human ca¬

the

highly

■,

search to discover fundamental
which limits human discre¬

that

the

law

upon

Not

tion

difficulty,, which if
they would grapple with it would
increase their governmental can
parity? amfx fif/ themselyesr: foe
ioveriBttehfc
of
tomoftbto'Mrid c corfsideratibri
given of effect ofr the' policy. of
shifting that to the Federal Gov¬
ernment and denying to the small
units
the strength, which
the
struggle give^;
- v •

Th^Ttime
ripe'fh^ ri ffefexlmnt-?
totidn Of citit* tatiff policies—be«r
,

irr

plants and she must rebuild her
bombed cities. She is doing these
three things no matter who in the
There
Britain
most

have

weakening the foundation
which it all rests.

are

I, in common with
Americans, do not like. I do

not like the

survival of the caste

I do not like the*

system.

could

and

ment

control;

and

gances

penalties

which

every

include

never

imposes

people who have an

opportunity to be free.

doubt

fa ? could—but
,5 ?
we

think

France has had
this

country.

bad

things

Two

rericleg arid^ ttr u^e therii £or^put%'

have

moment at the

of the GIs.
that

inescapable. "I
the man who
owns goods is eagerly sought after
by every buyer—but let's not fool
ourselves that this state of affairs

world.-. It' is
know
that today
the

i*-»

1930)
.'«'i

<rnk- s»V

honest dealer—one who

had made

for you for many years

money

country

occupation: "It

bet¬

was

come more

indices.

They say
that morale is
peopler aren't

all history has

morally in 25 years.
From 1914 to 1918, France put up

collapsed

the

off

month.

England}

production line^next

Buf as: these situations^ ease; cOn-

sh^uidi be lifted?? a^ Frenc^fe

now

tools with which tb
are back on the job.
of the growth of Com¬

What
blink

that.

polled about

Anferica^ dbeSh't1 get* dollars/ tiri^

The

gets francs? ; Buf he doesrl't
Waflt
francs^
He wants3 dollars
With /Which1 tor- buy bottles1 arid

Let's

third of the popu¬

crates.

It polled that number sim¬

ply and solely because that num
Frenchmen were discour¬

and

aged

ready

think

looking for markets;
He will
Who- passes out cigars

was

—not.:

by these facts, what
steps'are?wb taking to insure the
vol lime of export business Ameri¬
ca

must' have to

prosper?

few

Regrettably* I must say* but
There

to date:

are many

hopeful

promises; bub'little action.

haircloth

wore
never

;

shirts;

read about any

Who
have

who pulled

long drawers as well. But that
is England and Scotland today. If
any country on the face of the

-on

globe is struggling to be self-sup¬
porting and solvent, if is Great
Britain;
The people are nearer
the starvation line than they were

Paris

Here

Exports

of Increasing

are

the concrete steps

out¬

during

the; war.

No one but a

sadist would send an Englishman

lined by every thinking business-i
the menu even of
man tc whom I have talked either
poorest restaurants.
here or abroad: -v

and

Havre

promptly

and

comman¬

deered—along with the British100% of her better hotels arid
96% of her restaurants,
As re¬

Theoretically,
the European
governments,, who take"1 the*- dol¬
lars, are spending theria Wisely fof
raw: materials: most
needed by
their industries? Btit this is only
theory.
No one' kriOWS so Well
whaf is^^iieeded^'lor relviVal^as: eacri
business firm, working in its own
way^ to get *whatT it:must have, to
make and sell more goods/ '
,

ther

the road to

least

European

the road.

recovery

country]

cently

last November a French
coming
to
Par if

businessman

stayed
sat. up

with friends
all riight in a
We1 took

literally
railroad sta-

over

what

better-thari-average billet (ex¬

than

Our Tariff Policy

C2)

?broad.
There

much
What
no

for

the

time today

to labor

our

here

come?

Then

;

and

those

buy

or^ finished
articles which he most needs for
immediate resumption of work* #
components

specific

When any

other course is pur¬

sued, you get the present coridf
tion with little bureaucrats—Who
their

sand

own

couldri't run

thou¬

dollar-a-month

busiriessrfelling intelligent industrialists in
-

the

they

tariffs?

cept in the redeployment areas)
over
the old arguments for and
Domestic to an American Army mess. They Gainst, high protective tariffs
consumption is held down ruth¬ thought they were badly cheated There js onjy jime for this com(1) Grantirig loans to England
lessly,:-Before
a
manufacturer by the exchange rate of the dollar ment; iD the years to come we are
and France;:
;;
;
:x
r.
cam produce a single finished ar¬
for the franc (arid they were), bin liking a foreign trade vastly in
(2) Lowering of- tariff barriers.
ticle, he must agree to export 50% no one had the honesty to tell excess Gf anything we have ever
(3) Insistence * by the United of his
output/ Recently the wom¬ therri that we, and not the French. 9nj0yed in the past.
Europe can
States that/ aS foreign countries
en of Britain were given a great
had set that rate.
get some dollars for American
acquire ' dollars
either through
194S they
They did not visit French homes ourcha«es through
a
favorable
credits- or trade, that they be; un¬
cgri ejfbS? bUWOfte coat; one dress because food is desperately short! tourist balance. But this is only ?
frozen for the use of foreign in¬
and two pairs: of very bad rayon
in the French cities.
So our lads fraction of her dollar needs.
If'
dustry—as opposed to the present
stockings.
During the war • if - a
paraded up and down the Champs1 we are to sell, we must buy.,, If
method of having "n these dollars1
woman bought a coat in any given:
Elysees, solaced themselves with we buy more abroad than in the
spent by the agents of foreign
year she could not buy a dress?
a strange drink which they called
past, do we hurt the great mass
•governments; :&'£ „o; -.
v.:"-;' unless- she appronriated her hus¬
"coney-ack," and thought they oroduction industries of America?
Mav I now discuss these three band's coupons—in which case the
were
seeing France.
I am no1 Would English automobiles sell ir
steps?
poor guy couldn't even buy a pair criticizing any of these facts; I am
nomp^tition with American. we*r
(U
Loans
to
England
and of socks.
just pointings them out as factsi they imported duty free? .Would
France.
r
'
But for our boys, on the basis of English - or
Swedish or French
Why are the British/imposing
Before' tile war, Western Europe this Spartan regime on their' peo-f their lives in France, to set them- ra(jio sets? Farm machinery? Mawas out" best foreigri customer—
Tkf get: solvent/J M .^uritr#
q^lves up qs OXpjgtS on French chine tools? Canned- goods?
10 to- 1.
But we can*t make a Pays' for■ a- War" iti three- ways: If
start exporting manufactured ar¬ produces more,'; it consumes less;
The; questibnr
ticles to her because she is short it' aesftbyb/Ti& capital-. structUrei might just as well have gone! to answer themselves. Of course not
drier
ptMiW # dtit df CW*
of dollars for any purchases ex¬ England paid all three ways.- - It
begins: "And no^rWe
petition,r even after adding our
increased production 58%;? it cut
one

abroad.

individual- British* or FrOnch
manufacturer would? be" free to

the

all

credits

about

of foreign credits;

industry

private

struggle ' with the sea—a long,
slow,
desperate
fight—but the
Dutch are tough and resourceful.
They will progress.

little
m+1f

rolling stock the War had left undemolished.
Our boys went from

the problem

they would, I am sure, insist that
some
part of them must imme^
diately be freed for the use of

Holland

/ But her's is

business rtien were' to Work

If
on

Times does not permit more than
this observation.. Belgium is far¬

Means

and

Marseilles

I have read about martyrs '

present, the buyer, rr

Confronted

walked into Cannes and Nice and

Condition of Britain \

r
•

gets pounds-.

buy wool; and hire a sales agent
and advertise.
-

any

very'

be thef"otfe

America

He1 alst/ Waht# dolldr^1 sd Hd Can

sells

An Englishman who

textiles

lar vote in France at the last elec¬

ber

sortie. illefgai' dfeah

works

less

not

Communists

France?

sells* wine1

whoca today

iuan

people get
work they
munism

Belgium i and

up to now—for survival is
still a very reaT Word: abroad*4^
just getting' erfougKi wheaty-^ arid
sttg&rv
^ffe§^:itod^hiea¥--irn^;
other essential fbddstuffg- te'Iivef

greater than prewar.
France is swiftly reviving; as the

tion.

France-

can

trol

glass be¬

Best of all, coal produc¬

tion is

Holland have continued this con¬

ing produced; textiles nearly 40%
of normal; the first automobiles
due

understand why

survival.

heartening pro¬
Some

all foreign/cur^

chaser considered*

temporarily embarrassed the "most g^llant"'defensive'^ight I
12u?t^e a cha"g®i°r„ ^
for
credit; what would you do of modern times.
Can the
' But given a resurgence ol
industry in France, given an indi¬
about his case? Would you debate sons of those resolute men sud¬
cation by America that the mis¬
become
corrupt,
soft; sion of Leon Blum
will last fob long,
Already we his* situation for inohllis^ahd: tlieh denly
may succeed
call in a competitor and say: *'Why worthless?
Such talk is nonsense.
are
setting some production in¬
that vote will recede.
For it must
don't you finance him? You can It takes hundreds of years to de¬
dices that make those of /the flush
be remembered that the very con¬
Have his future business. I can't stroy the moral fiber of q race of
twenties look like the manufac¬
cept of popular sovereignty—as
afford the small risk involved"?
people.
turing records of the'Middle Ages.
we
know it in America—came
Of course you wouldn't.
But
These ; indices -will ; go
Then why do
higher.
S0.™a|WAGIs crit- | from France. No people in all the
Chester
Bowles- says
the fight that, in essence, is what some men icize? Because, with but few ex¬ world cling more tenaciously to
against inflation will be won-by in- this country advise us to do ceptions, they saw nothing of the the concept of personal freedom
real France, the country of thrifty
next' summer.: All' he means, by with Great Britain* with France,
than the French; - Help them to
that 'statement, is* that, in some 14 with many lesser but still poten¬ artisans, skilled handicraft work¬
their feet and they will repay—
months time;*-production here in tially active customers.,
ers, industrious farmers.
We lib¬ in more ways than one.
You will note I have said:
erated France, sure, but to liber¬
the United States will have caught
In all I have said, I have made
good, honest customer/'
Is Great ate in terms of the American no reference to Belgium, Holland
up with consumption;^» Then* the
man with
the goods to sell*- will Britain such a- risk? Is France?
Army
means
to
occupy.
f We
and the Scandinavian countries.
who

-:were;

; countries

ws#.; European
forced to capture

With all due respect to
the sincerity of their convictions,
they don't know what they are
talking about.

Production in the
'

(3) The unfreezing of dollar
accounts in this country;
I real-:
thaf ddririgitherlieightr ofcdher

German

contributed to this: (1)
The remarks of returning GIs, (2)
the
growth of the Communist
Party in France.

non-existent,

.--'A

Accounts

the promises

Frenchmen
repeating the wisecrack of one

seilles

press

v.;?.. v?

of their comedians who said of the

working.

iS'f

Unfreezing of Foreign. Dollar

I can't really blame
for

chiefly

France is decadent,

r.p

needed.

had been made.

duction

testimony

When

Position of France

Let's look for

(Continued from page

Work wit# us

Ox^OrtS'

gain dollar credits through travel);1
but we must expand the importa¬
tion of European products if1 we,
are
to
export
in the voltimO

tS nrnmiic^Fvpn

thirikingj

neVeiS

billibiif thfetef- hiihdred^ diillidhsri'df ter when it was worse."
dollars worth of goods—and I saw
But today, the American inva
how her industrialists performed
sion is nearly over.
From Lyons
to the letter/
and Lille, from Rheims and Mar¬

obligations- which it imposes

upon

ders in Great Britain'for over one

will not accept

those who

upon

the

with

her obligations to the full.
And
IfthihkL speak WitK;Wider kiibWI1^
edge thah rhost- slnPe I placdd oiS-

the

are

nature

would

extrava¬

corruption

women.

recital of
things I don't like—but in thOlist

tyranny,

favoritism,

assumes

men

Hvp

^ gtrong
r®

parative lack of opportunity for

about her tenacious desire to pay

oppression*

of this' period
shall.have been written, the his¬

oihip

com-

ambitious

prefer to have ourselves,goverried
and1 yield', we lose the capacity fot
governing. If we accept govern¬
ment by men instead of govern¬
ment by laws, the will to govern
weakens, non-democratic govern¬

When the history

^^1^ 2r*-u

that

poctlsr

cannot SOU' iff the? billioris: if
don't btiy. Of course, we will'

°blr*

about

hocris

cause

flme for lack of Power. (Electricthings

many

ing the superstructure. We are
given freedom of choice.
If we
1

I duCe* enough' electricity eVeri for
half normal home use and your
factories must close most of the

British Isles suffers.

people of practical. intelli¬
gence we ought at least to have
the
same
interest
in
keeping
strong the foundation as in build¬

Science* Failure
Government'

Success

tb^efjWhgiri

gain

use

policy practiced in our system of
government under which :.'when
the
small units of government
and the states confront a respon¬
sibility, face a

so;with"England;

back

been r

and determines sound policy
in regard to? government; no con¬
sideration given to the effect of a

time

same

now stand on their own feet, /
the? expense of crippling the
exports of our mass production
industries?
oy

developed railroading—are basically in bet- , work when you have no raw ma¬
iler conditio# than befote thetwar, I terials and' thosd you- have aire

the fact th^t the plan scientific age, this ? analogous
/,rnature is effectuated as much thing, this contrary policy-^with
reference to government applied
hv the limitations upon the capac¬
everywhere else, will stand unex¬
ity of human betngs; as to the caplained and< inexcusable. It will
oacity given to human beings; no
consideration > givertv to the fact explain the reason for failure in
government while there was suc¬
that during the whole period of its
cess everywhere else.
history democratic progress has
We
have been devoting our¬
been in that direction which has
moved governmental power from selves to the building of this great
the center back towards the peo¬ superstructure without any con¬
ple; no inquiries as to principles; sideration being given to the fact

countries of Europe what

can

and cannot have.
steps
taken.

I feel confident the three

will' be

discussed

have

Even the somewhat less than in¬

ternationally-minded
Sena to r
Taft predicts the loan to Great
Britain

will- be

acted

favor¬

:•

Leon
Blum,
a
t ruly distinguished
Frenchman, -fis- being 'cordially re»ceived in Washington. :;Fron^M
sides I hear encouraging reports
ably. #41

understand

that

about the attitude of business

and

Government towards the elimina¬

tion* of

many?tariffcbar!ib^

uhfrebzirig: of dbll^ credits^^by
fofeigii
ing accomplished.

•

These steps are in the

direction

new

and vastly-greater for-

blgri iiafe

That iriay; to sorti^
simply sdurid-liko good: business.

Aridfiifcis^otbfbi^urs^
rbpdi ; ■ Btif if J^ mbrO5 thari- jrist
gbbd btisirios's.

It is' irisuthnco for

No thinking man
can do other than pray that UNO
politicians consumption' 52 %;. It spOrft threesucceeds. BufUNO liasri'fa^prayOr
of the Mediterraneari" and which Btit ErtglisK wbolefts- will s^lT if
stupidly arguey month 1 inland fburthsvof its/ foreigit irivestments
signs dfft "And. sd; ;a)r thd
Uig L^neric^ And FrdriCK/jCdraftiics unless tho natioris: df the world
mostteF'its 4hac?iin4
month dut?'as»* .tor) wheth^* ^hey
sun
drops below^r tlidt Spires of | ^n(j jewelry/ And perfume. And can trade with r each ; other to- the
I think you
should X grant' these
countries
mutual advantage of all.. The progr
know thetype.
'
"
I Swedish wooden ware. Should
ffrpductibif dMy. j'W&f
credit;,
^
grte l'
bderf fl^hssihgwill
Mtistfiai
course the GI's saw French- W go dn protecting a few, smar
W&
btsihgs^ih^#rw6uld" ?havd

cept foodstuffs and essential raw
materials.. b Yet

our

wbr|d peace*;

sense.

If you

good,!plarits—excSpfr fbr mining*, andlmen not• working; It's; ^rd tolAmerrcah-jpdustries,vvBlchshedld

giye,US'tH^f kihtf of world

tirade*

THE COMMERCIAL &

1964

te
I'm

i
i

•:>!«!

iv
m

I
'if'

■J|
•4„
«•%

through the operations of the Fed- }
era! Public Housing Agency, The
'State of New lTork is mow in the
housing business, through the op¬
erations of the
State Commis¬
sioner of Housing.
Many of our
municipalities, including the City
of New York, are now in the hous¬
ing business, through the opera¬
tion of local housing authorities.
one that has been selected to be
These local housing authorities are
used
in /driving
the entering
the administrative units that op¬
wedge.
erate public housing projects, with
Government in the Housing
funds
and
credit
provided by
Business
either our State or Federal Gov¬
A well-organized and concerted ernments.
The state and Federal
effort is under way to place our laws by which such credits are
Federal, state and local govern¬ provided are similar and the pat¬

(Continued.from page 1927)
quently screened behind well-sounding statements that render
lip service to the free enterprise
system, and concealed behind an
imposing facade of well-inten¬
tioned citizens genuinely interest¬
ed in obtaining laudable social
objectives. The housing field is

business.

housing

the

ments

«•

Substantial strides in that direc¬

with¬

tion have been accomplished

past decade.
Under the
guise of slum clearance and the
#sed for improving housing con¬
ditions, Government funds have
in

ilk)

%
v-t

}ft>

the

tern is this:

Under New York law, the

State

Commissioner of Housing has au¬

thority to lend the sum of $300,-

low

000,000

interest to local

housing authorities to finance the
erection of subsidized public hous¬

provide taxpayer ing projects. Such loans may run
subsidized housing in county after for fifty years and are repayable
county, and in community upon in annual installments. Simultane¬
community. With the completion ously with the making of such a
of each project, there is an in¬
loan, the State Commissioner of
crease in the size of the entrench¬
Housing is empowered to enter
ed bureaucracy which, while liv¬
into a contract with the local hous¬
ing on the public payroll, conducts ing authority to give it annually a
a
continuous program of propa¬ sum sufficient to meet the annual
ganda for the continuation and interest charge on the loan, plus
expansion of its authority and one-half of the annual principal
influence. The completion of each
repayment. The sum of $6,250,000
been

k
m
«#

fti
Mi

ft'
n»

used

project is used

payer subsidies
to socialize the

argument for

as an

expansion and further tax¬

further

able for that purpose.

in this campaign
business of hous-i

ing the citizens.

annual

Now it is axiomatic that when

government undertakes any activ¬
ity in the field of business, private
capital is driven from that field.
Business men well recognize that

II
I

are

well

cost

the way to

Each housing unit construct¬
government credit, and
leased at uneconomic rents, is a
deficit operation; That deficit is
is financed by subsidies, directly
or indirectly assessed against the
taxpayers. With such charges im*
posed on the remaining property
owners; the cost of building and
housing by- private capital is fur*
ther increased.
As a result of
with

such burdens, private capital finds
it increasingly difficult to secure
fair

return

its

investment

and, in due course, it will seek
Out other fields.
The pattern employed has been
demonstrated so many times that
should

now

be familiar

Plausible statements

are

to all.

issued by

Government officials to the effect

that

housing is primarily the re¬
sponsibility of private industry
and private credit, and that gov¬
ernment activity in the field of
housing must be confined to those
groups
that private enterprise
cannot serve.
But, while thus
rendering lip service to the free
enterprise system, an entrenched
bureaucracy proceeds steadily to
enlarge its spheres of influence
and operation.
In the hands of
those who will award government

contracts, who will draw salaries
as

administrators and supervisors

are

termine the need and to

measure

but

dollar-

that

buildings erected on

the

site.

;f This

substantially
all committed, the Legislature at

contribution
its

recent

increase

are now

session

authorized

in the annual

contribu¬

tion for repayments of these loans
to a total of $9,000,000, provided

the voters shall approve a refer¬
on this question at the next

endum

election.
The proposal will be
phrased in such a manner as to
give the average voter the impres¬
sion that he is merely voting an
additional $2,750,000
for public
housing, but since the law author¬
izes fifty-year contracts, approval

of the referendum will commit the
state to

additional total expen¬

diture of $137,500,000—which the

municipalities must match—or an
aggregate of $275,000,000.
If the
referendum results in approval,
then this sum of $275,000,000 will
be added to the $625,000,000 al¬
ready

authorized

(and

largely

committed), whereupon the State
and
its
municipalities will be
bound to

expenditure of $900,000,000 on taxpayer - subsidized
public housing over a fifty-year
period.

government housing projects,
placed the authority to de¬

'A; the extent to which it is met by

basis,

"The Camel's Nose Is Under
the Tent"

Verily, the camel's

nose

is under

the tent!

! ft private effort.
The Federal statute follows a
Thus, a govern/ ment bureau, serving as prosecusimilar
pattern.
The
essential
tor, judge and jury, proclaims a points of difference are these. The
finding that private industry has total capital funds appropriated by

failed

again, and
government

announces

an¬

Congress amount to $800,000,000,

Pro¬

The annual subsidy authorized by

of pri¬
vate capital are dismissed as based

Congress to be given to the mu¬
nicipalities, to provide the funds
with which they may pay back
the sums they borrow, is $28,000,0Q0.However, the local housing
authority must raise at least 10%
of the cost of a project, from mu¬
nicipal grant or other
on dollar-matching with respect to
the annual contribution, the mu-

other

project.

tests from representatives

frustrated

self-interest

and

,/ft - greed, and the bureaucrats

pro¬

ft ft
•

to
ceed
dispense
government
credit and taxpayers' dollars with
a generous hand. . •.
|$ .
The New York Housing Law

The United States Government

now

in-the housing business,* nicipality need put^up in the

speeches made and
publicity issued by those
already on the public housing
payroll, urging the passage of the
been

of slum housing-as a
precedent to the erec¬
of subsidized public housing.

condition
tion

other pro¬
The second
forty-five year pub¬

would result from the

the

fact is that a

bill.

housing expenditure is snugly
away in Title VII of the
bill.
For therein contained is an
extension of the plan previously
lic

tucked

described* under which the United

would be com¬
payments
of $88,000,000 to local housing
authorities on forty-five year con¬
tracts — an
appropriation
that
would run to a total cost of $3,Treasury

States

mitted to make annual

960,000,000.
And that sum, of
is additional to presently
outstanding contracts!
course,

land.

Funds for the cost of the land and

buildings

the

Government

Federal

and

State

provided

are

way

public

lower

the cost
of housing is to increase
the
ply of private construction
Th*
way to increase the volume of Dr

sun!

and

threat

are

removed, private
steadly recede from
thereby compounding

Repeated surveys have demon¬
strated that where public housing

capital will

projects have, been erected to re¬
place slums, only a negligible pro¬
portion of the people who lived
in the houses that were demolished

the very problem for which
is sought.

actually re-housed in the re¬

were

Surveys

projects.

sulting

revealed

furthermore

this

field,

post-war reconversion
organizations of business

period,
men

numerous

cm5

this

all

the country are
shan

over

have ing their

well able to

instances of families

programs on the premise

within a reasonably short
period of time, Government oper¬
that,

ation will be withdrawn from
pay economic rents living in tax¬
all
payer-subsidized housing projects, fields in which it is in competi¬
tion with private enterprise, it
is
Mr. Cyrus Crane Willmore of St. apparent,
however, that such dis¬
Louis, Mo., after making an ex¬ cussions and programs seldom em¬
haustive study of the subject, said:
brace
the housing field as
an
"If ever a fraud was perpetrated activity from which
Government
►upon the American people, that
sponsorship and subsidy is to be
fraud is public housing.
On
It has withdrawn.
the
contrary
deceived the very people it was many
such
groups
and

new

accompany

It has loaded

intended to benefit.

heavy tax

demands for withdrawal of
Government competition in their
their

burdens on

In few instances have

our

cities.

the

projects

cared for the

with outspoken re¬
for Government sponsor¬
ship, funds and credit in the
housing field.
But let this be understood.
In

quests

the cleared-out areas. Low-income

families

who

are

excluded from

projects must seek shelter in
private property that must pay a
heavier tax load, and therefore
the

government and private capi¬

tal to

compete. If government is
moving further into the housing

higher rents, because
public housing project has forced

business —and

every indication
points
thatr way—then private
capital is on the way out!

"ft;- /

Said the

field of business is it possible

for

must charge

editorially:

fields

own

low-

income slum families who lived in

next examine the process

by which low rents are accom¬
plished in public housing projects.

The

by taxpayer-subsidy at less than
its fair cost.
For, unless that fear

Housing

Projects

it to."
us

Who Benefits From

The Low Rent Process
Let

taxpayer-subsidized

ects have been erected on

many

Wagner-Ellender-Taft bill. Their
principal propaganda theme has
been that it is largely a privateenterprise bill.
With respect to
such statements, there are two
facts of importance that need to
be emphasized.
One is that the
private-enterprise businesses that
allegedly would benefit by these
provisions either don't want them
or
are
willing to forego them,
rather than to/ permit the harm
to
our
national economy
that

housing projects.-"' ft ft ft;.-.

vate construction is to
remove thl
State-sponsored proj¬
vacant fear and threat of Government
competition in providing housing
\

Many of the

much

visions

in¬
the

Chicago "Daily News"
"It is not advan¬

tageous to good citizenship or in
the

best interests of the

Bill to

commu¬

nation to have a large
body of citizens supported in part
by public subsidy.
It is self evi¬
dent that subsidizing these public
housing projects places an unfair
nity

Aif Balloting

device naturally
either by direct loans or by the
encourages
the officials of ft our
sale of bonds bearing a Govern¬
municipalities
to
compete
for
ment guarantee. Then, the money
these grants, proudly boasting to
with which to repay such loans,
their constituents that the projects
tax burden on those who own real
cost the city nothing.
For, does including the interest thereon, is estate; that by increasing taxes, it
not the state provide the funds in presented as a gift by either the increases rents and thereby places
State or Federal Government, so
the first instance, then send in a
an
unfair burden on those who
check each year to meet practi¬ that the cost of capital, which a must pay rent."
cally all of the principal and in¬ private owner must meet, is en¬
The theme song of the public
The provision
terest cost, so that all it costs the tirely eliminated.
housing propagandist is: We are
for tax exemption eliminates
a
city is tax-exemption—and how
not competing with private capi¬
second
burden.
When
private
insignificant is that?
tal.
We only supplement private
capital puts up a housing unit, its
Since the $300,000,000
capital minimum costs for these items capital.
We merely provide low
fund and the annual $6,250,000
cost housing at $7 a room, when
will run to approximately 9% per
the

ing.

such
matching may take the form of
exempting from local taxation the

having it demonstrated in hous¬
ed

contribution

for-dollar

there is no field in which private
capital can survive against the
competition of subsidies, direct
and indirect, that result from gov¬
ernment entry into its field. That
is well recognized in such fields
as transportation, public utilities,
banking, merchandising and the
like.

has been made avail¬
There is a
requirement in the law that the
municipalities shall match this
per annum

housing ; authority receives
States Treasury.
recent months there
have

from the United
In

taxpayer-subsidized public

demolition

of tax exemption or otherwise,
only one-fifth of the umount tnat
the

sion of

housings The ^ewftYhrk laWi
cidentally, does not require

Housing—A Snare and a Delusion

Public

r:*

Thursday, April 11, ig46

FINANCIAL CHRONICLE

By Absent Servicemen
Under

passed by the

measure

House and sent

to the Senate

April 1, Federal aid would be
given the States in getting absen¬
tee ballots to service men for the

elections,

Congressional
'"bob-tail"

ized
to

ballot

vote

author¬

President and

for

only

Vice-President

ished.

and the

which

servicemen in 1944

overseas

would

abol¬

A provision of the bill, ac¬

cording to United Press Washingtori advices, would permit the bal¬
piiv&tecapital at lot forms to go through the mail
annum
on
its investment, com¬
least twice that much,
'
ppstage-froe. From the same ad¬
puted as follows:
vices we quote:
A Suggested Substitute
Depreciation (i.e. return of
•Chairman Herbert G. Bonner,
capital) 2%, or $2 per $100 of in¬
I have suggested that the cure Democrat, of North Carolina, of
vestment; Interest on borrowed
may be worse than the disease. the House Elections Committee,
funds (or a fair return on its Here is
the proof ft
told the House that there was
v
ft
equity), say 4%, or $4 per $100
1. There is no need for the con¬ "plenty of transportation" to get
of investment; Local real estate
tinued existence of slum housing State absentee ballots to service
taxes, which average 3%, or $3 in any
city which wishes to elim¬ men throughout the world. There¬
per $100 of investment; Total 9%, inate it.
All that is required is fore, he said, it was decided that
or $9 per $100 of investment.
the adoption and enforcement of the Federal ballot was no longer
it

would Cost

With

these

rentals

figure

costs

can

cover

eliminated,

established

mainte¬

merely

charges and will be somethink like one-half of the rentals

nance

in a private, and taxpaying, project.

necessary

The Taxpayers' Breaking Point
Is it not

pertinent to make in¬
quiry as to where the breaking
point may be? Undoubtedly, 99%
of the taxpayers can afford the
added tax burden necessary to pay
one-half of the housing cost for
of

the population.

But

can

90% of the taxpayers afford to so
subsidize rentals for the

ing 10%?

remain¬

Can 80% afford to

subsidize the remaining 20%? Can
70% afford to subsidize the re¬

maining 30%? Where is the break¬
ing point? Who will determine it?
It is not apparent that the cure
may

And

offer

slums and
our

than the disease?
no
defense for the

worse

blighted

that blot

areas

cities!

The sentimental appeal that has
been successfully used by

public
housing propagandists to put our
Government into the public hous¬
ing business has been (1) the need
for clearing the slums and (2) a
olan to provide low-rent housing
for

peoole

come.

two

sub-standard

in¬

fact, neither of those
objectives has been accom¬

plished.

sound building codes, that will
prohibit the construction and oc¬
cupancy of indecent and unsani¬
tary housing.
2.
One
simple and effective
method of accomplishing such en¬
forcement would be to provide
that no housing accommodation

Postmaster Albert Goldman an¬
nounced

April

it to be decent and fit for habita¬

been received for

the

packages

vincial capitals

which have

delivery at pro¬

and has

requested
registered

packages to the Philippines
stricted to those

areas

by blocks, to demolish the build¬
ings on such land, and to then sell

says

Mr. Goldman,

Therefore,

"effective im¬

mediately, no packages

addressed

might result between the cost for delivery at any post

of such condemnation and demoli¬

the Philippines

tion and the price realized at such
auctions would be far less than

that

to which the
itself in the public

may

be accepted for

tion when

4. To the extent that there

are

and

decent food, clothing
and sbeH»*. the direct navmeht of
sums

family budget in such

Manila

families unable to earn an annual
income sufficient to t>rovidn ade¬

•

Manila

registration.

addressed for

capital in the
:

any

delivery

provincial

Philippine

Islands.

(uninsured) parce
packages, it is stated, are ac

Ordinary, ft

post

ceptable up to a

weight limit or
places in

pounds fttoft all

lift

Philippines.*

•

office in

other than

Letter mail, however, may con¬
city commits
housing pro¬ tinue to be accepted for registia-

grams.

quate

be re¬

addressed for de¬

livery in Manila only.

the land at public auction to who¬
ever
would buy it.
The losses

pro¬

number of

large

that the acceptance

ficulty of assembling sites in con¬
gested areas, the cities should be

that

registered

Because of the admitted dif¬

authorized to condemn slum

that
inadequate

advised

facilities are

to handle and afford proper

tection

tion.
3.

Philip¬

of the

has

Islands

present

Post¬

4 that the

Administration

pine

form-accompiishe^

Reg. Mail to Philippines

may be rented unless it is sub¬
jected to an annual inspection by
city inspectors (at a cost of, say,
$2 per inspection) and that no
rental occupancy be permitted un¬
less the inspection report certifies

sufficient to supplement the
cases is a
Neither of them will be more effective and
less costlv
by a^urtherftextch^! vieei thari 4heconti|^ied
expansion

•

needed.

■

ft*

»•

—

*(#

v-kk

liMs.
'■■■

W'N'V

•
.

TJifi COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

y0lume 163

iVX#' !v.

1965
li T|

can

none

"increase in

other than the vast

national

'purchasing

power" consisting of irredeemable
can

(Continued from page 1927)
for tangible things

or, purchasing

excnange

the most part al¬
most immediately destroyed, or, if
not designed for immediate de¬
struction, wrought into forms of

materials, for

little

'increased

wealth

self

Neither

money is

enduring prosperity; others
it a "Vast Reservoir of
Liquid Wealth"; while the Office
of Price Administration, viewing
the situation with apparent satis¬
faction, is confident that if it is

the

but

man

could

richest

purchasing

created

nation

The

the

purchasing

consists

ion

stock¬

consumption
did

wealth

suitable instru¬

wages

the nation, have accepted the "in¬

tion.

purchasing

standing

power"

theory.
Yet if the na¬
purchasing power can be
increased by paying persons high
wages for producing things to be

credit

tional

ceed

destroyed or of no
peacetime value it can even more
readily be increased by paying

In idleness

munitions

and

cease

Ham

either

Both

these

this

manner

the

out¬

inevitable consequence of the

this

inflation of pur¬

decline

inflation

For

nearly

purchasing

responsible for

our

circulation.

the theory

that

national
of

country's pur¬
can be increased
a

one

would add to the

national, wealth

by'.subsidizing

idleness; the other by emissions
of

paper

the

production

credits

and

money

annually

for

purchase

in the gold con¬

tent of the dollar; and by

the national stock of purchasable

The

States

are

who do not share the

many

belief that the horse

ily be induced to

harness,

harness

read¬

to fit the

grow

even as now

less

much

can

mes

cic

plated

noii

productive

civil

ana

military expcnaruies. As one al
those peisoi.s f r opose to point
out

some

'.SvCi

the

for

rsons

this

J,.

hen
i

Oi.

prevendi g

xeauty,

ice

■ui!•

,-h, e

preventing

of the Of-

hie 'mmis

inisi;ation speak
n

r«>

speak

not

•<illation

o n,

in
c

all,, but

hie natural, conse¬
quences oi halation.
' gaiqsr re¬
flation itseif they utter r.o voru.
of, nrc-yerituig

the pas¬
sage of laws repudiating the gold
clauses of government obligations
and prohibiting private ownership
of gold coin or bullion. These ex¬
penditures in excess of the annual
revenue it met ostensibly from the
proceeds of bond issues, but in
reality by the printing of cur¬
rency and the creating of bank
credits

none

credit.

redeem¬

are

price

increases

each

issue.

new

experiencing this phe¬
In considering the like¬
lihood of its early disappearance
we may
profitably start, as have
those attempting price regulation,
are

now

nomenon.

the

pre-inflation

the

maximum

limits

mum

period.
mini¬

and

observable

all

prices then prevailing
presumably normal. This is

commerce,
were

because
lation

there

was

then in

than

circu¬

sufficient

quantity of purchasing media to
support the business of the coun¬
try, consisting of the ownership of
and traffic in the

ing wealth

country's exist¬

well

in the pro¬

duction, transportation, and ex¬
change of newly produced goods
and

serviced.

important to

bear in mind that the harness then

fitted the horse and the horse the

levels might justifiably be antiei->
pated.
But the outstanding cltv
culation
not

and

son

increase

and

economic

levels

forces

which, they
stimulate proquc-

standing swollen circulation will
quickly be found to be no more
than sufficient to meet the

normal

play

natural

and

prices
economic

forces

balance between

proper

the wealth

commerce

the

wealth

presently

price1
:■■■:■'

(d)

In examining the question^
one
may properly inquire what
percentage of increase in the na¬
\

tion's

wealth

advance in

and

our

how

great art

standard of

liying

will be necessary to promote and
stimulate com m e r c e requiring
several

the

times

the

circulation: of

pre-inflatioh days;, how and

study

the time necessary to
operation. ^ And in the
greater error could be

made than to

indulge the assump¬
annually pro¬

tion that all that is

duced becomes

food

^produce similar prices, that the
of

Price

Administration

anticipates not through a reduc¬
try's needs.
This they profess to tion of the circulation, a manifest
believe
will
occur
within
the political impossibility, but through
twelve months June 30, 1946 and a spectacular increase in the na¬
June 30, 1947, after which prices tion's wealth and commerce. How
great must this increase be?
We
may be expected to automatically
know the amount of circulation of
move within pre-inflation levels.
The economic force upon which that pre-inflation era; and com¬
they rely has not been fully de¬ plete statistical data respecting its
coun¬

scribed, but it is clear enough that

national
as

levels.

country and its outstanding cir¬
culation.
It is a similar balance,
Office

give,

by whom that wealth is to be ere-'

These

under

rea'*■

tabl:sh and maintain the old

await the action

'times

the
existing ! and in¬
creasing inflation and thus rees-

and

ana

several

overcome

such

pre-inflation

commerce

therefore, the result of the inter¬

same.

experience fail

prices

remain

and t is

same

the

support is the supposition that we
shall spectacularly achieve so va&f

ated

force of law

the

That to which both

were,

simple:—To hold

not
made

will

higher.

In prevention oi me tonsentiences
of inflation rhe remedy they offer

disarm'.ngiy

the items comprising k it >
may differ* Were the outstanding
circulation the same, similar price?

ness.

commerce

is at hand.

know

addition to the

nation's accumulated wealth.
the

The1

and

clothing consumed by
people; the fuel, the light, the

both domestic and indus¬
trial, the amusements and enter¬
tainment,
while
annually pro¬
power,

duced

are

annually

Wear

and

every

physical

the

consumed'.*

natural

thing of

decay
use

value must also be taken into
count
or

arid
ac¬

calculating the increase

decrease of the nation's wealth.

(Continued

on page

1936)

In this manner the cir¬

culation

things for immediate destruction

of which

able in anything more substantial
than some alternate form of paper

which continue to manifest them¬

Within

contem¬

selves with

still further

vast

and

grants

companied

with

enlarged thiough foreign and do¬

excess

founded suspicion and distrust ac¬

constructed,

contend, will

chasing power
by the printing and issuance of
moneys or credits which repre¬
sent no corresponding increase in

things.

United

the

though

of money and
to substantially ex¬

War alone is not

born

ngs; schools and
vessels
and;

lished and inevitably brings well-

tipn and commerce that the out¬

are

enter

that our production and
in the not too distant
future will reach pre-war levels

reduction of 40%

beliefs

not

commerce

Townsend

Eggs plans for
prosperity.

purchasable and
directly into coM-~
merce.
Examples are the high-*
ways and
bridges; public lands
and buildings and their furnishdid

suppose

spent large sums in excess p£ its
revenues.
This was preceded by a

not

exchange values have been estab¬

old

to the sound¬

the

considerable portion

this was

value

classes.

in circulation in respect to which

supply

the

national

doubt

approximate

the several

trary it dilutes the media already

chasing medium and concurrently

purchasing
has been created, there can

the
of

each

Sipce reducing the size of

high

ness

000,000,000 and perhaps somewhat
more than
$350,000,000,000.
We

the harness, now several times too

peacetime

increase
remain

commercial needs.
When issued in substantial excess
of such needs, as by a government

classified#

lation.

decade before the
outbreak of war the Government

power

proportions as to
price levels, those in

of the country up to fit the circu¬

the produc¬
be¬

and subsistence of armies, or ar¬
ticles of value only in war, a great
in

carefully

and appraised, and, we
its value stated in
pre-ift*
flation terms to be less than
$400,-*
Know

know that

de¬

E^eit

listed,

commerce

the accumulated wealth of
the era
has
been

know

consumption
wear anu

former.

meeting expenditures in

power.

pay

weapons,

out.

the

its revenues, it can serve no useful
commercial purpose. On the con¬

paid those who pro¬
engaged in destruc¬

came

from

expenditures

war

and

suffer from

Therefore, if it is true that by vir¬
for

history as well as reason disproves
this contention, as will be pointed

a
cure
lies in bringing the
purchasable wealth and commerce

nation as well as all
other active belligerents came to

there will be no
of natural resources.

tue of the vast

pe¬

latter and the

equipment} th*
equipmentv bf' thd
Navy; the harbors, canals arid
shore aids to
navigation; and the?
equipmentof :the Army,
>
(c) It is not unreasonable fd

that

war,

event

wastage

short

country's

of the pre-war period
ivhxle the purchasable wealth of
the nation declined.
In short, as

immediately

any

not

were

duced for

comparatively

time reasonably required

the

chief business.

nation's

the

But

were

mentalities for the enrichment of

them to remain idle.

for it to work, inflation is helpful
to a nation and not harmful.
All

duce it to such

insure

power of a naits purchasable

value all but ceased;

indignantly

national

ing the
riod

5J»oods; its annual

of -the

preciation

that

came

can

flated circulation sufficient to re¬

charge of the nation's fiscal af¬

ecutives, who

crease

this: that if prices
be held in check by law dur¬

provided by
government, either directly or in¬
directly, and should be sufficient
in quantity at all times to meet

tion of things for destruction

In short their conten¬
to

comes

savings.

large for the horse, is inexpedient,
they propose that the horse shall
diminishes.
Increase of its out¬ be induced to grow to fit the har¬
ness.
As a stop-gap while await¬
standing purchasing media does
not alter this.
During the prog¬ ing this development they demand
the right to continue ceilings, pri¬
ress of the War production of pur¬
orities and price-controls.
There
chasable
things
of
peacetime

the public are to be

Eggs"

tion

and

pediency of attempting to repos¬
quantity of the country's in¬

the

taken literally many business ex¬

"Ham &

reference has already

country is to facilitate

sess a

things. In the proportion that its
purchasable things disappear
hrough use and wastage without
replacement its purchasing power

people of that country.

believers in the Townsend Plan

which

been made.

(b) The prinje purpose served
by the purchasing media of a

Recognizing the political inex¬

that

at¬

power

money

would

from

currency ana created bank creaits

fairs have announced their belief

So it comes readily to be

would

snrank

purchasing

III.

supposed that increasing the out¬
standing purchasing media of a
country
automatically increases
the total purchasing power of the

repel the charge that they

monarchs

posed deflation.

ribute the most money.

"purchasing medium" and
"purchasing power" as synony¬

and

That

which could manufacture and dis-

terms

holders

power.

it.

could

one

tempting it. It is for this reason
that history records no instance of
a substantial inflation being cor¬
rected by a governmentally im¬

may

That

publicists of the air and press, as

create

commercial

all

would

created by the effort

of this belief since it has
common practice for

statements

lute

medium through

become * a

their

country's

of which such

use

inflation:'V.
It is not difficult to detect the

increase

be measured and con¬
veniently exerci*sed.

need be no fear of ill effects from

mous.

purchasing

can

power as is

permitted to attempt to control
prices for one more year there

use

country,

is not purchas¬
That it does not of it¬

possess

consider

of politicians to

That money

and

well as

always increase
purchasing power.
ing powe;.\

and

adversely
hope to
escape its ill effects.
No govern¬
ment elected and sustained by
popular vote could survive the
ensuing depression.
Even abso¬
affected.

pur¬

in the volume of money or credit,

purchasing

business

ter

transactions

must

power" assures us an abundant

source

national

the

increase

though there is

even

pursuits.
It is thought by many that this

supposed

the

power.

That

chasable

peacetime

vaiue

increase

never

the population; its
productive ca¬
pacity both in plant and man¬
power; its annual production and
sale both of
capital and consum-

the

Failure to observe that the pur¬
chasing power of any quantity of

country became
So serious is
this expansion the Government it¬

purchasing media is directly de¬

self has not hesitated to launch

pendent

determined

the supply of and
demand
for purchasable things
leads to a premise out of which
idleness and war emerge as the
upon

great creators.

All

this

use

135,000 Shares

of their

lawful money by its own
This effort, following the

citizens.
classical
course of campaigns to stem infla¬
tions the world over, has taken
form

of restrictive

laws

FLAMINGO AIR SERVICE, INC,

and

nonsense.

these beliefs

are devoid of a single
grain of truth. Those who cherish
them are deluded followers of a

T h ey

a V e

failed, to observe:C

regulations designed to prevent a
rise of prices above pre-inflation
levels as determined by Govern¬

That money, in the absence
purchasable: things, is wholly
devoid of purchasing
power.

That money has purchasing

CAPITAL STOCK
($1

par

value)

ment Bureaus. It is said that these

restrictions

will

be lifted

in the

Price $2 per share

early future since all danger will
soon

campaign against the

free and unrestricted

the

is; fabulous

Presenting superficial plausibility

will-of-the-wisp>:;'

greatly expanded.

overcome.

Circular

IV.

request

rCTi

It is clear that political as well
as commercial considerations ren¬

Power. 6ply. to the extent tha der an early decrease in outstand¬
there are
thing?;.available for. ing purchasing medium impos¬
.

Purchase. ''"'

^ ''

s ;

That the purchasing
p

^ .nafion,s supply of

credit
h

ond

increases with

' "r"

■

power

money - and
increase

v2lume of purchasable wealth
decreases

the

vblume. o,

purefia&able wealth decreases,

Th&f^ incfea^ng

ampuh*

J* uvoney iorj credit; Iheli-.by'ISie
i copie
of
a

ease

country without inof rtke-purchasable wealth

sible.
a

The moneys and credits

nation

are

the property of indi¬

viduals and corporations and not
of the Government.
They have
been

paid out for materials sup¬

services rendered. They
could be repossessed by Govern¬
ment
in
sufficient quantity to
cause a deflation only through the
most extraordinary forms of tax¬
ation. By taxation of this charac¬

plied

Telephone:

Trinity Place, New York 6

„

BOwling Green 9-7400

Teletypes:
NY 1-375 & NY 1-2751

i
?«";£

|
I

itmrsday, April 11, l946

FINANCIAL CHRONICLE

THE COMMERCIAL &

of purchasing
the4 imdhal jpuf^
chasable
wealth. must now
be
Already great new issues in ex¬ Fixing Price CeiiinS^.-I?iffcring
measured. The yardstick has been
Fibs Kit. addressed
cess
of revenues* issues which only in name they are alike in
the
lengthened but the cloth has not,
wqtld by radio bin; April 4 thf
•//';
will provide the country with no substance and futility.
4 (c) As a people we have emerg¬
Associated Presa ! ^ported
No better example is to be found
corresponding purchasable thing
ed from the war poorer and not
from
Vatican City
than the "Law of the Maximum''
of iraluef are being
warning the mo e
seripusly con¬
richer.
We are poorer in, man¬ fortunate in
France
during the
sections that the re
sidered and diligently' promoted. enacted
power by the numbers and quality
sponsibility :; lay " with them
Among these are prodigious un¬ assignat inflation of the years of the slain.
to
We are poorer in
aggregate

tnat

medium'

Irow l>ageK 1965)
All these are costs of operation.

wealth oi a nation is in¬
only by those things of
value remaining after all con¬
sumption, whether by use or de¬
cay, is met.
That this is a slow

The

creased

■

is nowhere
than by the fact that

compensated shipments of Ameri¬

better proven
our total accumulation since Eu¬

can
and

first landed on this hemi¬
sphere is less than $400,000,000,000.
C, It will also profit one^ to at¬

ket-supporting operations in for¬

pafcfui

and

process

ropeans

tempt to discover the fields in
which we may expect an increase
in our pre-war level of production
sufficient in volume to require a
circulation several times that of
pre-war days.

Is it to be in the
field of food and clothing? Is the
average. American
to eat and
wear twice what he ate and wore
before? - Is it to consist in the
doubling: of our industrial plant
caapcity .or our transportation
facilities? Or of our amusements?

production abroad, and great,
but

slightly

eign currencies.

concealed mar¬
'

The story of inflation is ohe of
the oldest in history* |t is through

its practice that the cost of wars
and of the follies of rulers, is. most
often

defrayed. So universal has

been

this evil that it is scarcely

exaggeration to say that the

greater

portion of the sweated
of mankiqd .has been

savings
filched

from

its

practice

this

owners

governments.

The

of unparalleled

Laws

1790-1795.

ferocity were enacted against all
who

publicly
the

tioned

privately ques¬

value

printed

the

assignats. The death penalty was
prescribed for any seller who so
much
as
made
inquiry
as
to

be made
in gold. The guillo¬
tine worked daily and its victims
whether payment was to
in paper or

batches.

came

But

even

over-worked guillotine could not
force men to suppose printed slips

to possess the value of
There was also recourse to
rationing as an aid. But so .bated
did the entire system become that
of

paper

gold-

Em¬

after the overthrow of the Terror

pire, the Solidus, has become the
humble sou; the British pound
sterling of the 13th century had
lost 39/40ths pf its value before

tion

the outbreak of the present war,

It bad worked irreparable barm

Within

trade. and commerce and
brought the cities of Franco to the

natural

been

has

avert

political uprising and
disleading to another war bv
sharing food supplies to feed
thosp

by that which
destroyed dr wrought

resources

order

into forms without value in time
m the
famine-suffering areas The
of peace. Our industrial effort
has been enfeebled by the num¬ Pope,; who" discussed the world's
food
problem
with
Herbert
bers of our disabled.
We must
Iter's; inspection
bear the burden pf <paring;|or a
tour of Europe, said that it
was
tnblUtuda rendered helpless cir.
without support." Our productive indiSpehsabl^ that. foM impor ts be
increased for Europe until
the
plant and manpower have spent
next

and consumption

the

were

great gold coin of the Roman,

wealth

those who

were

ter of 'the world's population.

once

;The Pontiff continued, in

profitable and cherished cus-*
tomers. These years are gone from

our

of the nation

the life

well

envy and wonder of the world.
Unless these standards of living
are to rise dramatically and sud¬

period of 25 years the
French franc declined by no less

denly, from what

The

source can we
derive the increase in our domes¬
tic

that commerce
circulation* as

fit our swollen

produce

maintain the price
pre-war era?

levels

and
of the

far

are

those of

above

the pre-inflation era.

upon

verge at starvation.
It was de¬
of other nounced throughout the length
formally and breadth of the country as the
dollar has "Law of Famine."

monetary systems
countries
have
been
within

Our

the

own

past

been
40%.

decade

shrunken in gold content by

In each of these operations

vn.

taken the form of failure of pur¬

conclusions

These

the

able:

inescap¬

are

(a) The wealth of a nation con¬
sists of the aggregate wealth;of its

Standing

Army and Navy the
the non-producers
have steadily increased, and the
increase continues. With the ap¬
proval of Government, labor de¬
mands shorter hours; and in many
industries
by
concerted
action
holds production to carefully cal¬
culated minimums.
It is also a
matter of common knowledge that
of

production and

commerce, follow¬
ing historical precedent, have be¬
come laggard under price
regu¬
lation ; while the determination of
people to spend their high wages

modest

income

annual

from

in¬

terest-bearing securities. now find
that income cut in half and, the
purchasing value of the remain¬
ing half greatly reduced. To these
unhappy persons the phenomenon
itself

revealed

the

form

called bonds, falling interest rates
and increased cost of living.
It

actually but a manifestation
progressing inflation.
take the form most
convenient to rulers and most de¬
was

our

Inflations

ceptive to subjects. In simpler
days coins were clipped or coin¬
age called in, melted down and
or speculative profits as
they see alloyed with baser metals. Since
fit, notwithstanding attempts to
the days of printed currency the
restrain1 them, has given rise to
printing press has been most fre¬
thriving black markets in every
quently resorted to. Notwithstand¬
commodity of common traffic.
ing this, debasement of coinage
These black markets, despite their
has not ceased. Our own reduc¬
horrendous name, are, in reality,
tion of the gold content of the
no more than free markets driven
dollar is a notable example of
underground and hence often into modern
coinage debasement.
the
hands of the most undesirable

elements of society who profit at
the expense of more
law-abiding
merchants and no less at the ex¬
of
the
national
revenue
since they dare not declare their
gains.
pense

■:

Under normal conditions broad,

sweeping

upsurges

trade and

commerce

nation's

a
are

neither

expected nor deemed desirable. If
increase of the magnitude re¬

quired

inflated

balance

the

country's

circulation
occurs,
to
what must it be attributed?
Will
it be attributable *to
war,
the
•

world's greatest destroyer of life
and. wealth?
If so, war must be
considered a profitable
activity.
Will it be attributable to the in¬
flation itself? Then is inflation a

blessing and
disaster

history proves?
these
come,

causes,

the

builder and not

are

told

and

a
as

If from neither of
from whence will

extraordinary stimulus

But whatever the form the

re¬

sult is

always the same. The pur¬
chasing power of the purchasing

medium

declines—having

been

absorbed by government. The de¬
cline at first slow, proceeds at an

accelerated

speed. Interest rates
drop. The savings of the prudent
are being swept away. Thereupon
a
cry
arises against mounting
prices. It may be likened to a cry
against
a
falling
thermometer
rather than against the chill winds
that bring the. mercury #dowq.
Nevertheless governments, admit¬

ting
crees

blame,

working
these

heed

these out¬
and enact statutes and de¬

cries

effort to

laws

natural'
will

not

thwart the

laws.
for

long

But

Inquiries such
to

but

shall

neuer

these

conclusion:

one

Catch

can

that

lead
we

iyffh, our in*

taken

flation has

unlikely that

ever

governmental

an in¬
occurred without

to price
penalties
provided,
leveled
recourse

fixing

measures.

have

been

Cruel

:
in¬

its

increases

decline.

decreases

Efforts

in¬

nation's purchasing power
through increase in the nation's

crease a

purchasing medium

are

complete-1

the

war's

onrush

nor

nation

just emerged

While

wealth of
from

war.

the

creased

purchasing

"The human

■

is threatened
famine* and famine is the
cause
of incalculable unrest in

power

race

decreased that -of

have

in¬

have

penalized all the midst of which the future
those whose savings were invested
peace, as yet only in germ, would
in insurance, annuities anddhteri:
the risk of being suffocated

run

including

obligations

est^paying

those of the Government. We have
inflicted

irreparable injury upon
pensioners and visited unmerited
hardship upon the t lesser paid

the

nation

due

purchasing power of vests in southern Europe and the
brightened its fu¬ lands which border on it—poor
ture.
Through it we have done harvests, ; especially of rice in
no more than write up in value
eastern^ and ", southeastern Asia
and re-distribute the diminished and drought in South Africa.
the nation

white

with

Europe insufficient culti¬

vation

and the subsequent forcible driv¬
ing away of a great part of the
local population; bad wheat har¬

classes of society we have favored
the speculator.
By doing these

purchasing power. Be¬
yond this total it can never ex¬
tend.
Increasing as the wealth of

collar

families.

things,
and

their

and

workers

all > other

against

have discouraged thrift

moderation

and

encouraged

waste and recklessness.

,}>..**.

„

Impatience against the slow hard
back along the road of econ¬
omy and industry will-bring de¬

ly lacking in substance.
They
arise from failure to observe the

way

nature of wealth and the function
and purpose of money.* An in¬

mand for

thousand schemes and

of which'will

panaceas'some

befoye being borm

In the face
peril, there is no
thoughts of vendetta
o.r reprisal, for lust Qf power or
domination, nor for any desire or
isolation; or of a victor's privi¬
leges,
That is very well under¬
of this

common

for

room

stood .in-North America.

XTM this offensive- against fam¬
the United States has gen¬
erously taken the lead.
It has
placed at the service' of this holy
cause its gigantic power of pro¬
duction.'
It has doubled efforts
ine,

to increase the surplus of food¬
stuffs, destined for exportation.

too, is taking the same
For its part .Great Britain,
has con¬
increase
in
voked in its capital an interna¬
constitutes no more than a write-' standable human
hope that5 way tional conference to discuss food
up of values.
As a measure for may be found whereby printed
problems/and has left to" torce
increasing the nation's wealth it is
crease

medium

nation's
a

slips of

gesture of utter futility.

•

"(b) On$

can best examine the
economic situation of a nation at

emerging from a war by
disregarding momentarily all
question of money or purchasing
war

medium.

nation

enters

war

possessing a given accumulation
of wealth, to which it has habitu¬
ally made annual increase.1 Its
productive capacity is organized
and

its

trained

manpower unim¬
Peace is the normal con¬

paired,
dition

man
and to peace the
nation will in due time return.
4

Upon entering the war the na¬
ceases in the
largest possible

tion

the

measure

creation

things

which constitute the purchasable
wealth of peacetime.
not discontinue their

sumption.

But it does
use

con¬

The

accumulated
purchasable
and
non-

wealth,
purchasable, diminishes and
tinues to diminish until

con¬

peace

Thus in respect to
pur¬
chasable wealth, and
consequently
in respect to

purchasing

nation

emerges

from

power, a

war

poorer

f'/T

Bearing this in mind one may
safely consider the question
In the light of the nation's pur*
chasing medium.
Even had this
purchasing medium remained con¬

stant in amount it is clear that
its

aggregate purchasing power must
be

less

Canada,

purchasing; tried.'Without exception they.will
way*
corresponding be based in final analysis' upon
Wftlt
purchasable 5 things that baseless, but quite under¬

without

price fixing laws have
various forms and many

names, It

back

tion's total

than when it entered it.

right hand is making effort
them down.

These

merce, and thus catch up with its
thrice extended circulation.

things. This purchasable
wealth limits - and defines the na¬

the

quickly double and perhaps triple

eastern

know

now

the

war

issued

paper

under- the

great seal of Government will
somehow
restore * our
wasted
wealth and serve to relieve us of
the necessity of paying in sweat
and tears for the follies of our
rulers.
•

—

Long

c.,4

before

reached

even our

national

wealth

-■

■

-v

shall1 have

pre-war level of

all

measures

rationing and price

control

will

wartime

restrictions

of many

eatables;
,

citizens

measure

success

whatever is to flow from them it

best

hearts of
opened

noble

have

been

to every appeal

will be by way of easing the strain
of transition and nothing more. At

past, the

any

the use

would afford other peo¬
marked relief in their
more
urgent .' needs.
For that
reaspn we look trustfully to the
States of Latin America.
In the
food

ples

ten.

"It. is ; certain that a small,
scarcely noticeable rationing in
the
better
supplied
countries
would result in such saving of

have been abandoned and forgot¬

think that

be overcome

can

wide

of charity.

"It would be fatal to

the crisis

their

unless

dollar will have become
tranquillity and public order are
stabilized at its shrunken value maintained.4 It is necessary that
History shows
and the pre-war dollar will have all remain calm..
us
only too often the disastrous
hedome; a thing - el ^
results
of ^that delusion
whicn
a situation that cannot be
changed.. drives hungry mobs to revolt ana
Those who face it for what it is
pillage. Woe to those who would
our

will

fare

done

so.

the

restored.

to keep

com¬

chasable

part

Press

way

neither

has

inflation

some

thwarted. Prices will not be beld
down since the left hand of gov¬
ernment by its inflations forces
them up despite the pretense that

necessary to cause the country to
its wealth and its trade and

pre-war

creased

others.

The purchasable wealth of a na¬
tion consists of its available pur¬

numbers

these supplies
levels.
" ;
■■

bringing
•Our

our

will be spent in

that much time

citizens and the public works and

and will

who, hav¬
reliance vpon a

persons

ing retired in

life have declined.

stores and is accumulated by slow

and painful processes.
Subject to
wastage from use and decay it
must be constantly replenished.

reflected in prices.
In bureau staffs and in the new

These are chasing power. In our own coun¬
integral and important factors in
try* in every community, there
the cost ot production and must be
are to be found
be

essential

Associated

have aggravated-the. already formida¬
of ble difficulties of provisioning; ia

and common necessity "which

become

accounts from the Vatican City; "Various; " unforeseen
and
un¬
foreseeable
circumstances have

savings of individuals, tragically,
(e) The question may profitably and often to
the individuals con¬
be examined from another angle.
cerned, mysteriously, have dis¬
Already both wage levels and appeared, The disappearance has

taxation

utterly failed

than l9/20ths of its former value.

required to make abandoned-

commerce

It had

Maximum."

reported

from the Uvea of Its eitiaens* Our
of Paris crying "Down with the supplies of those thhi&S Pf luxury

to stem the course of the inflation.

harvest is

reaped, and he de¬
in' producing only for
for' the
de¬ scribed the ". "sinister menace of
manhood and hunger": facingat least one quar¬

many years

destruction,
and
struction of the

mobs marched through the streets

Our prednflation standard of liv¬
ing was high. Both our produc¬

•

the

against

proportions.
swollen

;>4'■»'

better

for having

stir

scandalous

~4l;,4

by the sight of their
luxury and by their

extravagance." 4

New York Stock Exchange

Weekly Firm Changes
The }Jcw: York Stock,Ewtiapge
has

announced

the

weekly firm changes:

following
vi! *'

y Privilege of Milton JS. Lawrence
th act as alternate on the Floor of
the Exchange for Amos M. Kidder
was withdrawn April 4th.:
*

Ira Haupt &
xr-SJ

Co., HI

yiu.;

Broadway,
01

mnwihprs

members of
New York gtock Exchange, an¬
nounce that A4 Kingston Ghegan

New

York

City,

has become associated

W*th

than at its beginning as an inevU
as manager of their Bank ana 1
existing fact. We against those who either sell for table
Interest of the late Kintzing P.
consequence of the decliii^
surance
must and will live with it as best more than the decreed
Stock Trading Depai
price or of the nation's purchasable
Hmmons in T. L. Watson & Co.
wealth;
we
can.
We should, but in all refuse to sell at all. In Latin
mentp
44
..
iih
coun¬
But unhappily the
ceased as of March 81st,
supply^!
probability will not, cease infla¬ tries such measures have been
Gheean was/tetmerly
purchasing medium has hot
Interest of the late Charles K. J. Arthur Warner & CPtionary emissions since we are too called "The Law of the Maxi¬ mained
constant, v It has, on thd:
Gay in Glide, Winmill. & Co. years in charge of the Bank &
far along the road to turn back. mum." We call them
"Directives contrary* increased by enormous ceased as of March 30th.
r •'

flation. It is

surahce Stock

Department.

Volume

flWANCIAli?CH^NICLE

THE COMMERClAt^^

163 ^ Number 14480

which

i->.

1967

must have a as

fine buildingi materials and

possibly
appliances* can be /turned
over
to permanent Government
a matter of fact I agencies, for as long
as seems
increasingly con¬ necessary.; OPA*; the symbol of

support for international peace,
I want to be completely frank
'

are.

(Continued from page 1933) *•«

jbased

upon

manufacturers' production again began to climb.

costs plus the average profit mar¬
gin for the industry.
They are
calculated on a simple form by the
firths themselves,, so that the way

ancl shipbuilding back in 1939 and
1940 and how short of the actual

production record these guesses
fe

cleared for many new small
producers to get into production
rapidly.

| to this second
of price control as 1 see
it—Physical reconversion of our
factories/ has i been pretty well
completed but there were many
other problems.' that had to be
solved^SQpie ^ theih still, have
to-be solved. fLabor-management
differences had to be ironed out.
Material and manpower had to be
reallocated;... and channeled into
peacetime; production. Industry,
running; at/.top "speed for all out
war production,
suddenly faced
huge cutbacks, the wheels began
Getting : back

phase

Special

made

provisions

for

have'

industries

been

affected

sharp drops in
of

orders. Some
industries encountered

these

war

individual

and

Payrolls

earn¬

only slightly below
wartime peaks, and rising.
Pro¬
duction of civilian goods is now

ings

are now

50%

above July, 1945
expanding rapidly.

75%

and

levels

Both of these

this,

have

become

goods

far, during this second phase
of price control, there has been no
indication that price control, in
general, has restricted production.
On the contrary there is every in¬
tries have not-yet had enough
dication that between now and the
actual production experience to
time when competition can again
show clearly what their new costs1

will

lumber and certain food
But the

sented

products.

vigor of the claims pre¬

the producing

OPA

for

groups

that but
controls > there

/its/normal job, business can

would be

price

swift and in my view

disastrous

upward

sweep

prices in these and other fields.
Can Avoid Inflation
I

convinced

that '

can

avoid serious inflation, if we have

be,;OFA will make adjust- bi§srbi^rateiiix? anatmosphere* of
the ? guts .aiid teamyvork to do it
ments based on adequate quarter¬
togethei^Tlndustry^
stable cost and stable prices which The Go ngr e s
sy 'the different
breath, a quick look around and ly operating statements." v
provide the confidence needed to groups in the country, the OPA
The wartime "product standard"
went to work.
The need for a
allay
inflationary
fears
which and other Government agencies
has been modified. All during the
quick return to; business on - a
would cause business to hold back have the know-how to prevent it,
war, when a multiple product in¬
peace-time basis confronted them
on
production and scramble for It can be prevented, but Only if
and - tliey:; ^uickl^ took' up the dustry had total earnings above inventories.
we have the tools to do it with. It
stopped al-

slow down—some

challenge,

CPA
,

Since V-J Day

has

all

that

Accomplishments
;

been; charged by

some
since

during this period

while Industry was strug¬
gling with its peace-time prob¬
lems,
OPA marked time — that
OPA sat on the price lid—on a
V-J Day

time

war

peacetime levels, but was losing
money on an individual product
or line, OPA limited the industry's
adjusted prices to cover the outof-pocket cost on that product for
the industry as a whole.
Now,
with civilian production our goal,'
for most industry-wide products
OPA will make adjustment which

basis

business-as-usual

—unrealistically operating—obliv¬
ious
to the
basic changes that
were taking place in a peace-time
economy..i*
.
>
Th^ is far from the truth.
the risk of having to
with

cover
more

briefly

Low-

adjustment provisions in its regu¬
lations to meet reconversion prob¬

cies, business, agriculture, labor,
and
the
general public which
brought us successfully through

ing

companies, principal bottle¬
necks delaying output have been

the

broken.

will

lems and conditions in the follow¬

ing respects:
So

not

■

to hinder

inindustries

production

firms

and

whose

products were out of production
during the war, OPA authorized
reconversion industries to adjust
prices to take account of cost in¬
since

1941

Without Control Prices
Would

Agency♦ since
further illustrate
the flexibility of OPA operations.
Since V-E Day, OPA has made
the

end of the war

459~

industry-wide

adjust¬

price

the following reasons:
115 to clear the way for increased
for

ments

clear

production; 170 to maintain gen¬
erally fair and equitable* prices;
12. to make controls more* effec¬

peacetime

profit. margins.'
This
phase of the pricing program also

lations, such as lumber, durable
goods, rubber, chemicals, '• drugs,
textiles, building materials, paper
and sugar. */ V#,
'-v
A
supplementary .order

that
-

•

)■'

•'

•>'

now

let's take

Now

everybody that if

But

30%.

production

went

only 15%. Even this increase was

rapidly went so
high that fewer and fewer people
could buy.
Early in 1920, just 14
months after the Armistice, while
temporary. Prices

the

industry

whole, to adjust their prices
to

cover

order is

all of

so as

This

their costs.

being extended to in¬
clude practically all regulations,
establishing prices for manufac¬
turers or producers,. except those
which

now

already

vidual

contain

indi¬

adjustment

provision- at
least
as
liberal, or where the
granting of individual adj ustments

slumped
because

look

at how

sharply after V-J Day
large numbers of war

orders were cancelled or

drastical¬

ly cut began to climb in Novem¬
ber, less than three months after
the war's end. It continued to rise
in spite

of labor-management dis¬

putes and reached a level above
that of any year when the nation
was
not
actively at war.
In

production stood 51%
last real peace¬
control program.
time year. Such a level of output
for four months after the conclu¬
Special Regulations for
sion of an all-out war, which used
Small Concerns
more
than 40% of the nation's
J° meet the needs of new small total productive equipment, in¬
industries, a speical order was is¬ dicates no production failure. Pro¬
sued to set
up a simplified, almost duction slumped between Decem¬
automatic method
of
providing ber and February due to pro¬

will

seriously

injure

the

price

November
above

doing to streamline our

1939, our

our

accelerated program of dethat

control

would speed up

production began to catch up with
demand,
I told them, that in my
opinion, we must renew our

sub¬

for another year
because our economy would not
stand the sudden rise in the cost
of living which would result if we
were
to abandon them on June
30th of this year.
I outlined, in
detail, the explosive inflationary
sidy

programs

pressures threatening
the lid if we lose our

to-blow off

grip on our
I'd like to
few sentences from my

stabilization program.

repeat a
opening

statement.

The economic and
to

our

own

social results

country of inflation

resulting collapse are obvious.
The economic stability of much of
and

the

rest

of the world, now very

ceiimg prices for
sumer

new

small

con¬

durable goods firms.
The
authorized by this order
.

ices

longed

past—and cannot be completed. /
The program will surely- falter
if We cannot continue to count on
.

the full cooperation of retailers,
who are the very heart of your

distribution/system,^!
continued Co?
operation and support because
know as* deeply as you do" that
without it, we will never reacfy
our big peace-time. goal\of ex¬
panded production, steady mar*
kets and steady jobs/ Which All
who have labored and; sacrifice$
for four long years so manifestly

American

ask now for: your

deserve.

;

V'f.

year

making

To Posts ih World Bank
Chinese

The

Monetary

has

Government

Fund,

Lai*

and Shen

Ching Executive Director of the
International Bank for Recon¬
struction and Development, ac*

labor-management

dis¬

putes. By early in March most of
these disputes were settled Und

issued in April, 1943.

time, we can

program.
Price control

amended

said the
ury

Department on April 4,

which

added:

Policy

Absorption

Cost

the

One

such

bad amendment

ing

appoint Executive Directors,
advices from the Treas-?

be
really
eliminat¬

easily

could

death.

via;

Vice-Min¬
ister of Finance in the Chinese
retailers, especially, don't like this
Government and at present is Sec¬
prices were still rising, production
started going down. Then in the provision in our standards. Many retary of the Governing Board for
of you think it's pretty tough.
short space of 13 months it drop¬
the four largest banks in China.
But I believe that it's not oneped by one-third; We stumbled
He previously was Managing Di¬
tenth part as tough on you as in¬
into
a
boom and collapse that
rector of the Farmers Bank Of
flation would be if this thing got
brought unemployment to mil¬
China
and
visited the United
away
from us.
Retailers were
lions of workers and bankruptcy
States in 1944 for the Bretton
hurt the last time more than any
and foreclosure to thousands of
Woods Conference, and in 1936 in

organization to keep up with
changing conditions. I told them

•

V-J Day

applies to over a hundred regula¬ production has fared during this
tions, which enables individual second phase, of price control.,
The Federal Reserve Index of
manufacturers,, Who' nfedd 'prides
higher than those
Industrial
Production
which
which
are
profitable

contribution of the retailers
of this country. It is obvious that
without your cooperation the job
could not have been done in the

appointed Koo Yee-Chun as Exec¬
utive Director of the International

price controls were removed now,
prices of most goods would rise
sharply.
To remove them now
would invite the kind of hoard¬

OPA

Production Since
-

that a great measure of the
achieved has been due to

success

period. But I am convinced that
we
can
continue to hold living
costs almost as stable as we have
since the hold-the-line order was

Rise

program

it does not."
'■

gram

the

Chinese Govt* Names Two

without or read about it in your papers. I
discussed pretty thoroughly the
change in policy since the end of
critical time I saw ahead and what
the war?. I think you will agree

unrealistic

responsible for the admin¬
istration of the price control pro¬

been

have made and
a
considerable
number of price adjustments to
meet the needs of the transition

added individual adjustment pro¬
visions to twenty^five price regu¬

who have

in the minds of those

war.

This

well,; as- tive; 85 to prevent inequities and
77 to correct maladjustments and
inequities. And in addition to this
provides procedures which enable tremendous job on an industry¬
reconverting firms, with special wide basis since V-J Day, OPA
cost
problems to obtain adjusts has processed approximately 7,000
ments based on their own indi¬ adjustment
cases for
individual businessmen and farmers, I am
sure hone of us want that to hap¬
vidual cost increases and profit companies. Of these,- 50%
were
margin^. Moreover, if a reconvert** granted in full, 18% denied in pen again.
Last week I appeared before
ing industry or firm finds itself full, r and
the
remaining 32%
in
hardshipafter : it < has had granted in part, dismissed or the House Banking Committee to
urge them for a speedy extention
v
operating experience, it may ap¬ withdrawn.
of the Price Control Act.
ply for a price adjustment.
I ask you, iri all fairness, wheth¬
In order to meet the specific er that record looks as though
My statement was a lengthy one
needs of the basic industries OPA OPA has been operating with an —you may have seen copies of it

creases

There has/never been any doubt

At the same
avoid genuine im¬
ing, speculative buying, soaring pediments to production. But we cording to information received on
prices and ultimate collapse that can do this only if the price con¬ April 4 by Secretary Vinson, re¬
brought hardship and suffering to trol law is extended promptly cently elected Chairman of the
millions of people after the last without weakening amendments, Boards of Governors of the two
war
—only if present subsides are con¬ international institutions at the
Inaugural Meeting in Savannah,
Last time in -1918 we tried to tinued,—only if the Second War
Powers
Act
is
extended,—and Ga.
As one of the -five*-»najbions
get production by simply letting
only if all groups in the country having the largest quotas in the
After the Armistice
the prices rise,
we
had an inflation of nearly give support to the price control Fund and Bank, China is entitled

In cases where rising costs have

taken

the part of the
Government agen¬

Congress, the

been settled, in the
and in leading auto¬
mobile and electrical manufactur¬

Priced Goods

you

combined effort and de¬

termination

steel industry

It's
Price Adjustments on

kind

dis¬

prevented, but only by the

can

have

putes

competitive

pre-war

pos¬

Now that industrial

version.

discouraged
the
production of
sible just
what OPA has been low-priced,
low-margin
goods,
doing since V-J Day in order to OPA has granted * special price
not only keep in step with indus¬ increases to encourage their pro¬
Such adjustments have
try but to make certain that pric¬ duction.
ing policies are not standing in been made for low-priced apparel,
the way of production.
textiles, furniture and appliances.
Since V-J Day, OPA has altered
Statistics on the price actions
like

circumstances.

few more statistics I would

-a

to outline

selves

production

American industry is
astounding job of recon¬

rolling.

doing

generous

many

burden

total costs. This is a
standard
than
industries applied to them¬

average

The facts show that
is

will be hap*

personal sacrifice.

at great

petroleum,

automobiles,

textiles,

involved clearly indicates

controls, will have*served

wartime

its purpose. No one

price ad¬

fication for these actions in cotton

facts, purchasing

during the months ahead.

hardships when they shifted large
parts of their production from
high profit margin products to
items that yielded lower margins.
While, in most cases, these indus¬

pier .about the whole thing than
justments which we have been the people in OPA, many of whom
required to make. There is justi¬ have remained to finish the job

the up-grade, point

extent

and

number

continued rise in retail sales

cerned during the several weeks
I have been at OPA about the

and the production of civil¬

power

ian

about

some

precarious, is also at stake.
A
s.eyere inflation and collapse here

of international

economic relations

alone.

other

business
be

would
have

this

group.

know

This

time

different* Retailers

everything to gain if

win

battle against inflation and

we've all stuck
against inflation.
I'm confident that retailers want
to win this last round. This is the
four years

For

with

this fight

only

way

value

they can protect the
of their financial reserves

and inventories and

"Mr. Koo is a former

you

everything to lose if we don't.

avoid pricing
markets.

themselves out of their

discussions

connection with silver

Government. Mr. Shen
official of the Continental

with this
is

Bank of Shanghai.
"Both Mr. Koo and

Mr. Shen are

presently in China and will come
to Washington for the first meet¬
ings of the Executive Directors on
May 6 and 7."
•

Hasler to Retire

Head / /
Society?f *

Of Pan American

Frederick E. Hasler, Chairman
price and President of the Continental
controls as I see it. That is the Bank & Trust Co., of New York,
liquidation period.1 I can't tell will retire from the presidency of
the Pan American Society of the
you, by the calendar, what the ex¬
act schedule will be. I think that United States at the annual meet¬
before long we'll reach a point ing of the society on April 17
where production is really roll¬ after having served the limit of
ing and things and people have six consecutive terms. New offi¬
settled down—the air will begin cers and additional members of
to
clear
of
inflationary
psy¬ the council will be elected at the
meeting which will be held at the
chology.
From this point on leading up University Club at 5 p.m. William
A.
Prendergast is Chairman of
to June, 1947 decontrol will ac¬
celerate. We can afford to risk the Nominating Committee.
<
some price rises on items dropped
from price control because people
Hancel With Fewel (
will
have
more
confidence in
(Special to The Financial Chronicle) -f
their ability to buy the things
The

Liquidation of Control

There is

third phase in

they want. There won't be the
tendency to rush into the market
to beat the price rise.
Times will

begin to look a
to all of us and
sures
•

wpuld be reflected abroad. This
might well wreck for years all
constructive attempts at the sort

could

little more normal
inflationary pres¬

vrill diminish ^

At this time it looks as

necessary,

ANGELES, CALIF.

ciated

—

El-

Hancel has become asso¬

with

South Spring

Fewel

Co.,

453

Street, members of

the Los Angeles

if June

30, 1947 can be the cut-off point
for OPA. Any controls that may
still be

LOS

wood h.

Stock Exchange.

formerly jnanager of^ the
statistical department for Edger-

was

such as rents, ton, Riley & Walter.

THE COMMERCIAL & FINANCIAL

r?)

Prospective Bank

Council is that they at least answered its query within a
nrr
scribed time limit, whereas the previous requests for information
the

iJlfi

•jfe

(Continued from

the

1931)

page

there

is no emergency situation
requiring the hurried passage of
banking legislation, and any revi¬
sion of the statutes to give the

Federal

f'W.U

m
■)%

Reserve

fective

■¥

credit- control

thoroughly pondered

ef¬

should

the

Reserve

Board

the

other
new

hand, the need is felt for
legislation to give the Board

effective Control

the, volume
pf barik credit. To increase,pres¬

m
m

ent

A-

over

member-bank

reserve,

re¬

v.i

quirements, except in central

serve

cities,

legislation.

m
'

H't

in ad¬

over

vance.

Board

re¬

would require new
The Leland and CED

plans, having in mind that any
overall restriction of bank credit
WOiild stimulate the sale of Gov¬
bonds

ernment

from

bank

port¬
folios, seek to avoid such liquida¬
tion either by special issues of

case

>#<

*!»
Bi

vestment

such

securities

the presence of American troops in Iceland and
tion Mr. Stettinius has stated he will gladly

Board

influence credit condi¬

can

selling government paper,
by allowing such paper as it

holds to mature without
replace¬
ment. By selling bonds the Board
would

cause excess reserves

to de¬

cline.

Member banks could then
either borrow from the
Federal,
which they

do not like to do, or
dispose of some of their assets to
replenish their reserves. The sale
of their bonds would tend to de¬

the prices thereof and raise
interest rates,
which result by
many would be taken as a signal
press

that inflation is

taking hold. Thus,
the
control measures might be
self-defeating in effect, it is rea¬
soned by persons who are not
agi¬
tated by the inflation prospect.
Theoretically, the sale of bonds
by member banks to the Reserve
fcauks may have a different infla¬
tionary effect.
Because of the
proportional reserve system, when
the banks

Federal

whole

they acquire

sell to

the

reserves

which they may pyramid
credit.
For each million dollars of Gov¬
ernment bonds sold
by the banks
to the Federal Reserve

banks, the

member banks may acquire some¬
thing like five times the amount
of Governments

through purchase

from non-banks.
reason

for

viewing

the

rapidly changing inflation picture
calmly, it is said, is that the
budget situation is becoming more

China—which ques¬
at any time

debate

nature of the organization.

has transferred his main interest from here to the

Finland.

had

•

The

first

the

rest

balanced

this fiscal

and beyond. The Treasury
cash bal-nce is still
approximate¬
ly $22,000,000,000 and therefore
year,

further

substantial

debt

retire¬

continued,

this

will

Iran,

there

has

states

conditionally removed from Iran
But

just

peace

reso¬

the Security Council might have been wellposition in Iran had threatened international
and security, as provided in Article 34 of the Charter of the

the

dispute

Charter, the Security Council

investigate

may

any

question

6 May.

the Charter of the United Nations.

"For

insists

the

that

above-mentioned

the

Iranian

the

reasons

question

should

Soviet

Government

removed

from

the

agenda of the Security Council.
"I

have

the

honour; etc.

(Signed) "AMBASSADOR ANDREI A. GROMYKO.
"His
"Dr

Excellency*
Quo Tai-Chi,

"President of the Security Council."

one

This present

Gromyko demand for erasing Iran from the agenda
on the fact that quite a few questions remain un¬
resolved by the previously disclosed "agreements'* and resolutions—

subsequent highly effusive expression of thanks to
perhaps the following; is highly significant: "Persia has
received assurances and positive results
through the United Nations
which it could not have achieved
by itself, and may I, in conclusion,
again thank the members of this Council." Were not the thanks due

possibly is based

the Council for
securing for Iran greatly improved terms in the deal

Council have been interfering in her internal
affairs* nor about the
leaving behind of installations and weapons for the future application

that the Council still has "a cat in the
bag." While the withdrawal
of Soviet troops is
promised, nothing is; said about the withdrawal
of Soviet officials and
agents, which Iran has so insistently told the

which, simultaneously with the Council's highminded deliberations,

she

was

completing?

><
❖

:j!

was

"pressure''move.

that
•

the

presence

connection

between

troops

the Russians

the

are
insisting that the Security Council completely re¬
itself, and state that its procedure, taken in conformity with
its practically unanimous
interpretation of the Charter, was unwar¬
ranted.
Second, the Council, in accordance with both formal and

verse

was

least

common-sense

•.;

Following is the text of the official joint communique

ing the Soviet-Iran agreement just eight hours after the
Security
"Negotiations begun by the Persian Premier in Moscow and

the

after the arrival of the
in Tehran on April

selves in advance not to

all

agreement on formation

mixed

Persian-

months from March 24.

"Thirdly, concerning the Azerbaijan question,
being an in¬
taking into consid¬
the present laws, wiii
make the necessary
arrangements with the people of Azerbaijan

for solution of the
present difficulties.

"SADCHIKOV," (Soviet Ambassador

the situation if there should be a

;«

actually constituted a dispute threaten¬
security, the Soviet, being a party thereto, would have
veto-lessly. The investigation stage, of a situation does
carry the veto right by any of the
Big Five Rowers if it is not a
party to the dispute. This technical argument properly focuses at¬
tention on the Council's weakness of
having started off without
ing

peace and

definite
real

rules of procedure, and with
meaning of the Chartei itself.

areas

obscurity

to the

The relevant net result of the Iran
case
so
far, has been to
widen still further the rift between
the Soviet and the Western pow¬
ers, and as the entire set-up of the UN rests on unanimity among the

Big Five, there has been
of

the

Organization,

The

v..

present

■

further undermining of the
~
V*

state

inherent strength

justify the objections so
decisively Raised by the Australian delegate, Colonel Hodgson, and
_

events

seems

rests

prerogative by the

had to abstain

...

in Tehran}.-

its authority,

Gromyko's letter, in claiming "illegality" by the Council,

"QAVAM," (Premier of Iran).

1969)

bring

ternal problem, the Persian
Government, by
eration the
necessity of reforms under

preserve

outstanding questions.
"Firstly, all Soviet forces will have evacuated all Persian
territory within a period of one and one-half months
beginning
an

presently-unfinished business.

the contention that Russia had exercised
its veto
walk-out. If the Iran situation

4, 1946.

"Secondly,

order

change.

Union, and continued in Tehran
Soviet Ambassador, were terminated

"An agreement was reached

Third, the demanded removal of Iran from the agenda is out of
order, for under the Charter the Council members cannot bind them¬

Soviet
new

procedure, and

must at least get a final
report on the
announc¬

Council's action:

representatives

pressure.

Wholly apart from-Iran's note in opposition, the Russian demand
of
course,
impossible
of
fulfillment.
In the
first
place,

is,

although they definitely

against Iran's political

and

political

si:

the Soviet's role in the matter,

independence,

pointed out, between the banks
buying restricted bond issues with

ignore the

situation which might endanger the main¬
tenance of international peace and security: .It is, however, quite
obvious that in fact such a position did not and does not now
exist in Iran, so that the Security Council had no reason to give

In Mr. Ala's

ing emergency legislation, such as
compulsory investment by banks
in certain Government securities.

on page

moreover, cannot

the

"Under
any

the Council

exigent character merit¬

(Continued

Iran

United Nations.

before March 2 last."

Soviet oil company and conditions
governing it, which must be
proposed for approval to Parliament within a
period of seven

resolution

founded

day after this complaining statement was made the
joint agreement was published covering the evacuation of the
troops,
the Azerbaijan
status, and oil concessions. Quite a coincidence!

circles, but the prospect
is described to the "Chronicle" as

over

evacuation of Soviet troops had been settled by an understand¬
ing reached between the Soviet and the Iranian Governments. Such

that

non-ba^k

a>! difference,

Government,

opposi¬
tion to Council

for
the

reason

sideration of the Iranian question on 6 May despite the fact that
3 April the Soviet Government stated that the questions of the

he has not accepted and cannot accept,
any conditions
whatsoever being attached to the complete withdrawal of the Red
Army from the whole of Iran. These forces should have been un¬

virtually the whole of
reduction thus far in

any

Gromyko

According to the latest information from my Government dispatched
to me on April 1, no
understanding has been arrived at and no
agreement has been made. Thq Prime Minister of Iran emphatically

March 24, 1946.

There

Resumes

lution adopted by the Security Council on 4 April.
Under this
resolution the Security - Council decided to Continue the con¬

Regarding the withdrawal of Soviet troops
there can be, no negotiation.

been, and

1946. This may stimulate banks to
for Government
bonds in

Andrei

Province of Azerbaijan.
from

look

not of

accuracy

statement

"Accordingly, the above-mentioned resolution of the Security
Council of 4 April is incorrect and
illegal, being in conflict with

counted for

debt

the

further consideration to the Iranian

further reduction in the Govern¬
ment bond portfolios of the com¬
mercial
banks, which have ac-

the

absence

officials, and armed forces are continu¬
ing to interfere in the internal affairs of Iran. They are still pre¬
venting the Government of Iran from exercising any authority in the

1946

mean

Mr. Ala said: "Soviet agents,

ment is anticipated. If the trend
of the first three months of

and

fully confirmed the
Government's

the

and

"The Soviet

his

released this week
by the Presi¬

budget for the

Soviet

bringing the Iranian question before
Security Council for consideration.

evacuation of their troops and the political and
petroleum questions,
it is generally recognized that force was used

dent will foreshadow

the

between

has

Soviet

March

as a

reported to the Council that there

It is expected that
the revised budget
figures to be

the

Ala, Iran's representative before
complaint definitely stated that his Prime
Minister under his country's law could not negotiate, with foreign
troops present, and that in fact he did not negotiate. And in his
reply of April 3 to the Council's formal query for the current facts,
in

reached
"This

It will be recalled that Hassein

Council,

April,

Iranian Governments.

political instrument
assuredly is revealed in Persia's behavior. Even though the details
of her negotiations with the Soviet, and the goings-on of her officials,
are still not
known, it is evident that the Council has been misled
by the Ghavam-Ala team.
In fact, only the highly dexterous han¬
dling of the proceedings by Mr. Byrnes prevented the Council, rather
than Moscow, from being the party "left out on a limb."
the

negotia¬

is known from the V

Soviet-Iranian communique published^]
an understanding on all points

was

Security

Security Council

Security Council, however, did ti&t;: r
with the Soviet Government antf/re^'i
the Iranian question on | the agenda... l j

continued* and,

joint

political ends.
Such utilization of the

the;.Iranian^
; $f
pr || I

In the meantime the Soviet-Iranian

Significance of the Soviet-Iran Controversy
blow

';..

"The
agree
tained

The True

consider

reason

question.

tions

Government, full evacuation of the Soviet £
troops from Iran was started on 24 March:*',
and would be completed in five or sixr weeks; g
and that in consequence the Security; Council
|

}
.*

the

under

ing of the Foreign Ministers, In that field too the trouble is stalemated
between the same Great Powers. ] They have not reached first base
even on the comparatively simple Italian treaty.
Russia wants large
reparations, Trieste for Yugoslavia, and individual trusteeship over
Tripolitania. Also there are the multitude of economic and political
issues and the sovereign jockeying for nationalistic position blocking
the consummation of treaties with Romania, Hungary, Bulgaria, and
•

pointed out on that occasion that,
understanding with' the Iranian;

political dif¬
peacemaking which
solution Mr. Byrnes
coming Paris meet¬

relevant background overshadowing even the

con¬

regarding
the delay in the withdrawal of Soviet troops from Iran, I
pro¬
posed, under instructions from the Soviet
• : t
Government, that this question should not be
considered by the Security Council.
;

of the Veto power, the widening of which is sought by the Soviet;
and which question in any event will determine the fundamental

,.v,'

when the Security Council proceeded to

"On 26 March,

sider the Iranian Government's statement of 18 March

very

ferences being revealed here^ is the-deadlock in
has persisted since September. For its attempted

April 1946

President,

"Mr.

significantly urged haste in completing the other pro¬
cedural rules.
For these will include the very crucial settlement
Gromyko

this

even

Another field where this session is very likely to run aground,
is the settlement of major Council procedure. Although badly-needed
minor rules were yesterday adopted in great peace and amity, Mr.

encouraging.

consolation has been obliterated by Moscow's
newest offensive in having Mr. Gromyko make his pending
demand
that the Council now completely reverse itself, by removing W
from the agenda.
Here is the communication, re-precipitating th»
crisis in this "War of Nerves":
But

"without asking for postponement."

sub¬

tions by

The New Iranian Crisis

ticularly embarrassing to the Western Powers, in the subject ot
Spain, as brought in by Moscow-dominated Poland. Thereafter it is
expected that Moscow will again "retaliate" with a complaint against

Council's resurgence of selfconfidence and satisfaction over having survived its initial crisis,
its
author
being concerned not was dealt by the revelation at 4 a. m. last Friday morning of the
with a boom in bank
lending but completion of a Soviet-Iran deal. The ink was scarcely dry on Mr.
with bank earnings and the
hy¬ Byrnes' resolution accepting the two countries' explanations and
persensitivity of the bond market. postponing further inquiry until May 6. The entire surrounding cir¬
cumstances have unfortunately substantiated the fear (as expressed in
In addition to
raising reserve
these columns) that the UN might be misused as a tool for national
requirements, the Federal Reserve

$
I

Next week the Council will be confronted by a new crisis, par¬

ject to direction from Washington.
The similar Seltzer plan stems
from a quite different
viewpoint,

and United States

Iran, in which country even now neither the delegates,
the public know what actually is going on.

the press, nor

Government securities for banks
alone, or by requiring bank in¬

*1
♦&

1942 treaty, submitted by the British
governments, have been left unanswered.

regarding the breaking of the

(Continued from first page)

fit

000,000, and, through to March 27,
weekly reporting member banks'
holdings have declined by $1,856,000,000.
,/ From
the Treasury viewpoint

1943

said of the Russians' behavior toward

About the best that can be

Thursday, April 11,

CHRONICLE

'W.

Qt\;

•>• v,'::
,

.-nM«

even

his abstention from voting on the Byrnes resolution
In addition to

pointing out the need for the set¬
tlement of the procedural snarl, the Australian
"smelling a rat" in the Gromyko-Ala perform¬
ance, kept
insisting that all the facts on the
matter be thoroughly delved into before
any
decision

Council
Col.

was

Hodgson,

The latest
nouncement

PrA^MftftfilfA
■TUSpCGIliC

relevant incident in Soviet-French relations is the anby Radio Moscow that Russia will supply France.with

(Continued from page 1968)

made.

their eyes open

still

Also, outside the purview of UN, there

To subject to restriction bonds
originally sold to a bank without

ty.

restriction, moreover, would be.fco
penalize the owner who paid extra
for the exemption from restric¬
tion. Such consid&ratiO' is make a

pressure

which

the

Soviet

study of bank-eligible Gov¬
bonds with 2-year call

ernment

periods shows changes in yields as
vered

The

below.

tabulated

issue

yields

in the group, while that covered
by the other column is the long¬

Injection of the Spanish Issue

has been devised in capitalizing on the
ideological Franco-Spanish situation. Dr. Oscar
Lange, Poland's Ambassador to Washington and
Delegate to the Security Council, today formally
requested that the situation "resulting from the
existence and activities of the Franco regime in
Spain" be placed on the agenda. This injects an¬

1,. and* then
that

highly emotional and

controversial issue to be sur¬
week's deliberations. Thus, even
if Mr. Gromyko should be absent because of boy¬
cott or other causes, with Lange in. attendance
continued agitation by "the Eastern Powers" is

other

bitterly

mounted in next

Ambassador Henri

cil, in

Bonnet, French delegate to the Security Coun¬
discussion there with A. Wilfred May, Executive Editor
of the "Chronicle."

tons

the Americans and British in
position of seeming to favor the
doings of the regime of Franco, the SovietPolish bloc is definitely hitting below the
belt! It knows full well the United States'
distaste for the Franco regime, but it also
realizes the impracticability of demands for
immediate decisive action by the Security
Council, yet—with demagogery a la our
local
pseudo-liberals—it makes these de¬
mands as a retaliatory gesture against our

and

Toryism,

the Fascist Franco

"T have the

Dr. Oscar

Lange

be considered to" have

remain

Polish

Delegate

who is shoulder-

ing the antiFranco Offensive.

even

is, the Charter surely cannot be

own

pragmatic view also, the present

people.
*

Mr. Lange's letter to
of his

anti-Spain

move on

❖

Secretary-General Lie bases the relevance
Article 34 of the UN Charter. This section

"The -Security Council may investigate any dispute or any
situation which might lead to international friction or give rise to

dispute, in order to determine whether the continuance of the
dispute or situation is likely to endanger the maintenance of

security."

international peace and

In thus taking the stand that the
regime leads to serious international

existence of a disliked internal
friction, the Poles are now en¬

position which they and the other Soviet-apologists have
criticizing (when applied to Communism)-—
namely any thought that a country's internal political or economic
philosophy is any other country's concern.: b.*
» •
been

vehemently

Indicative of the unfortunate

misconceptions that this kind of

dispatches, this great artist refuses to practice his art either in Eng¬
land or this country because we do not break off diplomatic relations
with Fascist Spain.

The Role of France

position of France in the Spanish situation continues to
conform to her new role of "bridge" between the Eastern and Western
Powers.
This function of compromiser and stabilizer has been
The

zealously filled here by Delegate-Ambassador Bonnet. He
soft-pedal the Soviet-Iran dispute by forestalling decisive
voting, he suggested and headed the three-man committee
eleventh-hour attempt to

tinually tried to
Although
that

pour

oil

resolve the impasse, and

not

tried to
Council
making

he has con¬

the troubled waters-

Government has definitely informed 'M.
believe that "a situation threatening the

our

year

Foreign

Soviet

Government

that, following conversa¬
and the Government of

period 50% of the shares will belong to the Iranian side and
to the Soviet side.
"(2) The

society's' profits

divided in accordance

will be

with the number of shares held by each

side.

"(3) Boundaries of the preliminary territory of the society,
which is designated for research work, will be those indicated on
the map

March

given by me to you during our conversations of

excluding that part of the territory of western
Azerbaijan which lies west of the line running to the point of
intersection of the frontiers of the U. S. S. R., Turkey and Iran
and southward along the eastern shore to Lake Rezeje to the
town of Myanduab, as has been indicated additionally on the
above-mentioned map on April 4, 1946.
v'1
"The Iranian Government further pledges itself not to give
24

of this year,

1.45

.92

1.41,

.82

1.40

1.40
1.40.

Apr.

.95

Apr.

.97

Fruehassf Trailer Go.
i.

Lehman

Bros,

Lerchen

Co.

underwriters

Watling,

and

head

which

of
offering

group

publicly today (April 11) 125,000
shares of 4% cumulative preferred
stock (par value $100) of Fruehauf Trailer CoC at $104.50 per

Approximately $8,900,000
from the sale' of

share.

the proceeds

preferred stock will be used
the construction, acquisition

the
for

of,

additions to,

for

facilities

the

manufacturing

the proceeds will be used
eral

production

trailers and the balance, of

truck

for gen¬

corporate purposes." * /

•

The

the territory

preferred stock is redeem¬
able, otherwise than through qp?
eration of the sinking fund, at aqy

•

lying west of the line referred to above in conces¬
foreign companies or to Iranian societies in which for¬

eigners take part or to Iranian societies using foreign capital.
"(4) Capital on the Iranian side will consist of oil-bearing
land mentioned in Article 3, which after technical work will have
oil borings, the

continues to press for

peace"

Ministers.

products of which all will be used for the

society.

will consist of various kinds of ex¬
equipment and wage and salary expenses for specialists
for the working and processing

Capital on the Soviet side

and workers who are necessary

of the oil.

activity of the society is fifty years.
"(6) When the period of activity of the society comes to a
close, the Iran Government will have the right to buy out the
shares held by the Soviet or prolong the period of activity of
the society. Safeguardings of the areas where the research work
will be carried out, oil borings and all undertakings of the society
will be carried exclusively for defense organs of Iran.
"(7) Agreement about the organization of the above SovietIranian oil company, which will be reached at a future date, in
accordance with the contents of this letter, will be brought to
execution as soon as the newly elected Majlis [Parliament] of
Iran enters its legal activities, in any case not later than seven
months, beginning with March 24 of this year. •
•
.
"Accept, Mr. Ambassador, the assurance of my high respect
"(5) The period of

for vou.

time

not le*s than 30 days' no¬

tice

$108.50

deemed

per

before

re?

March

1948, and thereafter the redemp¬
tion price is reduced gradually;
until on March 1, 1954, it becomes
$104.50 per share, plus accrued
dividends in each case.

stock

ferred

also

The

pre¬

redeemable

through the operation of a sinking
subsequent to March 1, 1949,
at $104.50 per share, plus accriied
dividends.
'
v

fund

After

giving effect to the sale
stock, the capital-;
ization of the company will con-'
sist of the 125,000 shares of pre¬

of the preferred

stock being offered
and
1,191,742 shares of common stock,
par 'value $1 per share. "V
ferred

Electromaster, Inc.,

"PREMIER GHAVAM."
#

There are

Stock

already eight oil groups operating in

the Middle East:

cei

Market

Livingstone

and

Co.

Anglo-Iranian Oil Co.—Owning concession covering 100.- Mercier, McDowell & Dolphyn of
000 square miles in the southwest of the country.
The British Detroit headed a group which on
Government appoints two directors.
(2) Iraq Petroleum Co.—95% is divided equally among Anglo- April 9 offered 200,000 shares of
Iranian, Royal Dutch Shell, Near East Development Corporation Electromaster, Inc., common stock
(American), and Compagnie Francaise des Petroles; and 5% by (par $1) at $4,375 per share to
(1)

Mr. Gulbenkian.

(3)Kuwait Oil Co.—Owned equally
Company of America.

by Anglo-Iranian and the

Gulf Exploration

the public.
Proceeds

Co.—Controlled by the Standard Oil Co. of company
Corporation.
additions
Arabian American Oil Co.—Also owned by Standard Oil purchase

(4) Bahrein Oil

California and the Texas

(5)

of California

Bonnet

action. Until the cur¬
rent agitation
by the Soviet reinstated the agitation, she jhad agreed
temporarily to let the matter rest with the Big Five's Council of

exists in Spain, France

honor to inform you

the

"(1) During the first twenty-five-year period of the exis¬
society 49% of the shares will belong to the Iranian
side and 51% to the Soviet side. During the second twenty-five-

irrelevant agitation can breed among the well-intentioned public, is
the case of the cellist, Pablo Casals.
According to current newspaper

1.61 "

1.02

penses,

provides:

dorsing

1.08

Mar.

Oil

1
2

sion to

terminated at

remembered that the war must
some date, and the world cannot

anti-Franco agita¬
tion is unfortunate.
For either the Council's turning down of the
proposed action, or the affirmative taking of all steps that are feasi¬
ble, would only have the abortive result of strengthening Franco with
his

tence of the

50%

armed camp.

From the

March 15,
1956-58,
percent

1948-50

society has been created for the research and exploitation
the oil fields of north Iran on the following basic conditions:

Iran,
of

attributed to past or present'pro-

sympathies, it 'Still must be

German

March 15,

Date

2 l/a S of

Iran

tions between

have to be cleaned up.

for UN action be

>v'

2s of

percent

Following is the text of the letter from Premier Ahmad Ghavam
to Ivan Vsadchikov, Soviet Ambassador to Tehran, con¬
firming the oil agreement:
of

ideological desires—no matter
how lofty. Less even than this country individually, can the United
Nations as an organization, go around the world taking action against
sovereign governments that are disapproved of. At best UN would
be converted into a debating society to decide what form of govern¬
ment is the desideratum; and at worst, if thumbs are turned down
on
anti-democratic authoritarianism, Mr. Stalin's own yard would
reason

two-year-

with

of December, 1945

Feb.

discretionarilly stretched to suit our

If the

the beginning

Jan.

Fascism.

Nefarious

securities

Government

Dec.

In putting

reactionarism,

Changes in the yields of two bank-eligible

last week.

the public

alleged

stabilized,

became

eligibles declined until March
and thereafter turned upward.

The Soviet-Iran Accord

ijf

shorter-term^ bank

call dates from month to month since

grain within the next three months—by formal
agreement. Incidentally, it will be recalled that the Soviets refused
to attend the non-political international cereal conference in London

500,000

assured.
i

the

de¬

1 and March

clined between Dec.

against their "partner" nations,

yield

eligibles

bank

longer-term

in the Russian-Polish diplomatic offensive

maneuver

co¬

by the first column of
is the shortest-term issue

est-term issue. While the

A second

t
€

for her sphere of influence, both politi¬
economical, will remain. Then too it must
be remembered that (as confirmed by the recent
developments), there is chronically questionable
internal politics going on within the country.

The Embarrassing

CED

the

might be assumed.

can

cal and

Delegate.

that

economists much less simple than

ousness

Australia's "Unregimented"

proposal

are many

continue to exert, the element of Britain's zeal-

Hodgson

the

and being forced

by law to invest in a given securi¬

long-term problems regarding the future of Iran. In
to

txsit

bearing physical injuries
suffered in World War I, is one delegate who is
not merely "stooging" as a mouthpiece for home
officials. In fact his solitary "statement in oppo¬
sition" which accompanied his abstention from
voting on the Council's resolution was not even
despatched to his Foreign Minister Evatt before
at least four days after it was made.

addition

^VV:WVV

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

163

Volume

and Texas.

(6) Petroleum Concessions—Having a small shareholding in
the Iraq Petroleum Co., and holding concessions in Qatar, Muscat,
Oman and Aden and the Trucial Coast.
:i

Syria Petroleum Co.—With ownership similar
Petroleum (noted above).
<'
(8) Anarlo-Egyptian Oilfields—Controlling the only
duction in Egypt.

to Iraq

(7)

oil pro¬

and

to be used by

the

for construction of plant
at

Mt.

Clemens, Mich.,

of additional equipment

other

corporate

purposes.

Other members of the underwrite;

ing

group

are:

Buckley

Bros.,

Courts & Co. and Straus & Blosser,

Inc.
_

....

are

and Herrick, Waddell &

Co.,

("H

Thursday, April

CHRONICLE

THE COMMERCIAL & FINANCIAL

1970

•i H|i

n. 1946

(*•

m
N,

"Our Reporter
V*?

4*v
,

*■

Vi}

■'■

"» v ;

./,iT

•

J <V

; 'r

•«

,,v,'"

•

*}/j,vv £

JR.

By JOHN T. CHIPPENDALE,

;V|:
P

lr%

*}■%

k
m

'3 r.\

The same thing was

m
w

obligations,
to new
to meet

happening to .the restricted

Yv&

->4
u,;

the demands of

professional buyers*...

available securities that could be

S-K

purchased.

fjfi
m

market

other

.?!

latest

Weiss

with Faroll

obligations.
holdings

for

market

come.

Chronicle)

ILL. —Lloyd

CHICAGO,

has

Jr.

LOS

^''

509

Street, after ^serving in

S. Army. J
•>*!

the

new

South

135

The

Chronicle)

Financial

Spring Street;

Russ

LOS ANGELES,

Chronicle)

510

South

Felice, 145 Sutter Street.

SAN

to ^The

Financial

Chronicle)

FRANCISCO,

CALIF.-

William H. Brooks has become as¬
sociated with Denault & Co., Russ

Spring Street.

(Special to

The Financial- Chronicle) '
Building. He was previously with
ANGELES, CALIF;—John the First California Co.
Hood, - Robert L. Shafer and

& Co. and F. S. Moseley &

Collin W. Travers

(Special

with Lester

are

Co., 621 South Spring Street.

SAN

to The Financial

CHronicle)

FRANCISCO,

CALIF.

Robert Horner is with: Elworthy &
(Special

to The Financial

Chronicle)

ILL.—Ward D. J.
is with Remer, Mitchell &

CHICAGO,
Meents

FRANCISCO, CALIF.
Aureiius

(Special

Co., in Chicago.

LOS

Seen with the U. S. Army. Prior
he
was
with^ Lazard

to The Financial

Chronicle)

Co., Ill Sutter Street.

LOS ANGELES, CALlF.^Vern
King is; with First California

•"""*

(Special

Co., 650 South Spring Street.

SAN

leitzel, Inc., 208 South La Salle

NO SURPRISE

J a'

CALIF.—Dan

the staff of Nelson Douglass & Co

thereto

(Special

Building,

Albert G. Smith is with

Street, after

(Special to The Financial

reres

SAN.

iel M. Caughey has been added to

than $21 billions of the restricted

FRANCISCO, CALIF
S., Henderson has become
with Davfes & Meiia

(Special to The Financial. Chronicle)

•

Chronicle)'

(Special to The Financial

31, 1945,

...

SAN

Orrin

ANGELES, CALIF.—John

634 South

added to
Co.,

been

Salle

(Special to TriE FiNANctAt Chronicle)

•

F. Roth is with Cruttenden & Co.,

...

Chronicle)

LOUISi MO.^-Frtfdertck

Olive

South La Salle Street.

Shepard,

pulling of bids by profes¬
sional traders, turned the market down sharply on Monday, with
limit declines of 8/32nds replacing the daily limit increases. . . .
The recent weakness in the restricted bonds indicates that
these obligations probably made their highs for sometime to

'lnc-

Levis has rejoined Stix & Co

the staff of Glore, Forgan &

Selling by ultimate investors and

ST.

*•

Co., Inc"

(Special

available Treasury figures, those for Dec.

these securities.

(Special to The Financial

since the end of last year,

.should still

■©

with Slay ton &
111 North 4th Street. :

Chronicle)

Financial

Chronicle)

LOUIS, - MO.—Timothy

affiliated

Although changes have no doubt taken place in these
CHICAGO, ILL. r— William G.
the positions of these investors Budinger has become associated
be substantial enough to have an important effect on the With Harris, Hall & Co., Ill West
the ineligible bonds, if they decided to let out some of (Uonroe Street,' He has recently
.

ST.

O'Neil

tar F; Grtittbofek * is With Quincy
Cass Associates, 523 West Sixth
Street.
"*
'

Co., -208

(Special to The Financial

securities in «the
investors supply the market with obligations....

showed that the latter held more

The

' oecunty

FiNANc'iAt

serving in the U. S. Navy.
V• The

■

to The

ILL. —Bernard

CHICAGO,

Treasuryr offers

the

either

until

tinue

(Special to The Financial Chronicle)

result, the rush to buy outstanding issues

started all
over again and new all-time highs are being made regularly in
the ineligible obligations.
This trend will most likely con¬
As

,(Special

'^|j 1 *j/;' '• w
LQSANdELESrCA
CHICAGO, ILL. — Robert
fii
;
.^(Special to The ^finanoal chroniae)
Carey, James V* DonoghuejA atfd "T* >Yfckrer! has/rejoined the. ataf
C SAN FRAN CISCO, CALIF
51Q South
Robert Charges Fox, Jr* ;have
Russell
W.
La
Belle has been
• ;*
joined' the staff of A# G.- Becker Spring Street;*—-^:'added to the staff of Blyth &
& Co., Inc., 120 South La Salle I:
':y
'.t
rrr
'
'
x ,1 ;
Co
(Special to The Financial Chronicle)
Inc., RUss Building.
-C. .'
*'
Street.
'
LOS ANGELES, .CALIE—M
v

mysterious about the recent ad¬
vance in long-term Government bond prices. ... It was purely a
matter of not enough securities to meet the temporary demand. .
The refunding operation confused the market momentarily, and what
was termed a mild buyers' strike didn't amount to much when it was
evident that the retirement operation would decrease the supply of

;

There is nothing mystical or

8%
'>

Geor^

afiiliatS

Building.

elementary;

---i

(Special

(Special to The Financial Chronicle) •;

they advanced daily 8/32nds, the permissible limit,
all-time highs, because there wero not enough securities

Co., Securitv

Bank

^RONlCLE)

Waterhouse has become
with R. S. Dickson &

N.t"

RALEIGH,

(Special to THE FlNANCWt

Chronicle)

(Special to The Financial

HARTFORD, CONN.—James C
CHARLOTTE, N. C. ^ Walter
A yield lis high as 2.00% ott any United States Government aeConnolly has joined the staff of
curity was rapidly becoming a thing of the past
In the short space Myers is with Abbott, Proctor**#
Paine, 212 South Tyron Street? He Henry C. Robinson & Co., 9 Lewis
of four months the number of Government obligations yielding 2.00%
Street.
~
'ror better had decreased from XX to three.,
If the present.trend was formerly with Louis G. Rog¬
of making new highs each day had continued, the result would have ers & Co. and prior thereto was
(Special to The Financial Chronicle)
been a complete elimination of issues affording a 2.00 yield. . . 4 with Abbott, Proctor & Paine and
KANSAS
CITY, MO.—Parker
The first obligations to pass out of the 2.00% class for long-term Goodbody & Co.
II. Latshaw and-Samuel L. Saw
securities were -the bank eligible issues, and this was brought about
-(Special to The Financial chronicle)
yer are with Barret, Fitch & Co.,
in the usual way, no offerings of long-term securities to the deposit
CHARLOTTE, N. C.—Richard Inc.,1004 Baltimore Avenue. Mr
institutions.
With funds seeking investment well in excess of
Latshaw was previously with the
supply the longest bank eligible bonds moved out of the 2.00% B. Lone has been added to- the
staff of Bache & Co., Johnston Kansas City Trust Co. Mr. SaWyer
group, so that there are now no securities the commercial banks can
wag-with the U. S. Marine Corps
Building.
'
buy that yield that much. .
.
,
•<

'fi *

V..

-v

^ '

'•

•

to The Financial Chronicle)

FRANCISCO,

DeForest

CALIF.

Holyoke

con¬

(Special to The Financial Chronicle)

Street, after completing military

Congress on
which Treasury Secretary Fred M. Vinson, service.
for the first time in print, takes a definite stand for low interest
(Special to The Financial Chronicle)
rrtes, does not seem to add very much to the money market situa¬
CHICAGO,
ILL. —Philip
S.
tion.
Although this statement of Mr. Vinson favoring low interest
rates is supposed to have been greatly responsible for the recent up¬ Adams has rejoined the Tax Bond
Co., 141 West Jackson Boulevard,
swing in Government bond prices, it seems as though the market is
after serving in the army.
in very poor psychological condition if it has to be told where the
{Secretary of the Treasury stands on interest rates in order to keep
(Special to The Financial Chronicle) ;
prices advancing. . . .
CHICAGO, ILL. —Robert
B.
Publication of the annual report of the Treasury to

i®

LOS

the State of Finances, in

institutions (that make up the market
for Government securities did not know where the Treasury
If the individuals and

Miller

stood

on money

rates by its past actions, and prior to last week's

Co.,

CLEVELAND,

SAN,

Chronicle)

LOS

solution to the problem of offering long-term re¬

Bachman,

CALIF.-

Jr.

has

been

added to the staff of Hill Richards

ANGELES, C A L I F —
Bidwell is with MitCo.,. 650 South
Spring Street. In the past he was

with Dean Witter & Co.

Paul E. Tescher is with Holt, Col¬
lins & Ede, Russ ^Building.

Co., 1 Montgomery Street.

George "If.

chumj-. Tdliy, &

(Special

LOS

The

Financial

(Special

SAN

' '

Chronicle)

CALIF.

(Special to The Financial Chronicle)

E. White has joined the staff of
Chester L. Noble & <)o., 650 South

C. Bock is with Dodge Securities

to The Financial

FRANCISCO,

Chronicle)

ANGELES, CALIF.—Elm¬

Lioyd Spring*Street. He

—

Co.,

to The Financial Chronicle)

FRANCISCO,

Arthur

Chronicle)

OHIO

First California

Montgomery Street.

(Special

~ ••/

THE PROBLEM
a

rejoined Revel
650 South Spring

-•

Street, after serving in the U. S.
Army.
(Special to The Financial

If there is

300

with

has

(Special, to The Financial

Godfrey has rejoined Thomson &
McKinnon, 231 South La Salle

statement, then all that has been done thus far by the money
managers has been pretty much in vain. . . „

nected

ANGELES, CALIF.—Elvin

Griffith

Street.

•

SAN

FRANCISCO, CALIF.

D. Allen, William T. Mc-

James

previously

was

Cttttei

with Akin-Lambert Co.

are

He
specifically to insurance Corp., Engineers Building.
(Special to The FinanCwl Chronicle)
companies and savings banks, without the sale of bank eligible issues has recently been serving in the
LOS ANGELES,
by these holders, it is quite likely that the Treasury would make new armed forces.
§ALI*V
securities available to these buyers.
vin
The Government does not
M.
Curtis
and
Frederick
(Special to The Financial Chronicle)
want bank deposits to increase and although the refunding opera¬
Wythe are- With Slay ton & Co.,
tion is preventing war loan deposits, to a very large extent, from
CLEVELAND, OHIO—Guy R. Inc.
-t*K: •
•
becoming individual deposits, the retirement program is not de¬ McLaughlin has been added to the
staff of the First Cleveland Corp.,
(Special to The Financial Chronicle)
creasing the real inflationary deposits and purchasing power, those
owned by individuals.
By preventing war loan accounts from National City Bank Building.
LOS ANGELES, GALIF.—Phil¬
becoming individual deposits, the Treasury in a negative way is pur¬
ip E. Neary has rejoined the staff
(Special to The Financial Chronicle)
suing a deflationary policy in the debt retirement operation.
of Dean Witter &-Co.,; 634 South
'
CLEVELAND, OHIO-William Spring Street.
I
With funds ample and the outlook for Government finances
stricted bonds to ultimate investors, or more

and Frank B. Nombalais
with Schwabacher & Co., 600

Market

Street.

Chronicle)

(Special to The Financial

■

SAN

CALIF.

FRANCISCO,

hillip B. York has beeh added to

staff

Jlggins,

300

•>

Wilson,

Johnson

Montgomery Street.

...

(Special

SAN

dward

to The financial CHsoNici.fi

FRANCISCO,; CALIF.
Pence

and James

good

for the next

one-half

and

longer, it
seems quite reasonable to expect an acceleration in the debt re¬
tirement policy of the Treasury.
This operation, of course,
will not toe allowed to disturb the equilibrium of the money
very

year

even

Heller

with

has

Hirsch

become

Co.,

affiliated

1010

Sutro

In the past he was with
Bros. & Co.

(Special to The Financial

THE BIG "IF"
no

doubt about the ability of the Government to cut the

at the

same

prices.

with

Hill

(Special to The Financial

time decrease deposits.... A shifting of the GoVernment
non-bank investors would be very

increase the supply and temper runaway

However, if bank eligible securities

'^0 new bonds, there is

5of paramount importance to the Government now), but

standshort-term

Co., Bank of
(Special to

■

off,

even

when the

new

funds

are

used

obligations held by the deposit institutions.

to
.

retire
.

Severely restricting the operation of insurance companies and
savings banks prior to and after the new offering may be one way
•

The

(Special

>i'.

doing this, but as'yet it has not developed too much
of a fol¬
lowing.
Finding a way to shift the debt from commercial banks
non-bank investors, without the selling of bank eligible obliga¬
...

Financial

ILfe

with

tions

ultimate investors, will mean new offerings of long-term
bonds at new low coupon rates.
This increased

Government

supply would tend to stabilize yields on outstanding issues.

*■

♦w

JOSE; CALIF.—Harold R.

(Special to The Finan%tai

b. Drake

Corp.

•

PORTLAND,

Street&

Financial

ELYRIA; oHIO^Datia &;m*m

The

WINSTON

Financial

Chronicle)

SALEM,

joined
Harris, Upham & Co.,

)orothy M. McKaughan has
the staff of

Pepper- Building.

„

Avefitpe, artier'serving
........

DURHAM, N. C—Marvin W.
McPherson is with J. Lee Feeler

(Special

Chronicle)

Robert

George}A/ Eckley,

Chronicle)

Co., Inc., Trust Building,
tte
was formerly with First Securities

the armed forces.
.

(Special to The

Hungerford
and x William
L.
Saunders have become affiliated

Chronicle)

■;

has rejoined the staff of

Euler Adds

Chronicle) '

MAINE—George

Inc" ^5^ Congress

(Special to The Financial
Chronicle)

PORTLAND, OREG.-FIoyd

has become connected with P. R.
Smith & Co., Eiyria
Savings &

L,a"der hfs been added

Trust Building.

Building

EighttoStaff

PHILADELPHIA,

Co., .1518

Walnut

PA.—Euler &

Street,

an-

the association

with them

of Churchill Williams,

Jr., James

nounce

Co.,

(Special to The Financial Chronicle)

America Building.
FtitMcim

The

PEORIA,

524 Indiana

PASADENA. CALIF.—-John k,
Mahony is with Denton & Com¬ with H. Irving Lee & Co., First
pany, 35 North Raymond Avenue. National Bank Building.

•

rejoined
Dean
45
Montgomery

have

Chronicle)

(Special to The Financial

Street.

SAN

Tower,

to be

seems

Co.,

Hall has been added to the staff
of Otis & Co., Terminal

sold to pay for the

are

decrease in deposits <which

COLUMBUS, OHIO—Walter B.

Cleveland.

Witter

Chronicle)

CipgtF.—Kenneth

Chronicle)

Carew Tower.

debt from commercial banks to

^^helpful to the long-term restricted bond market because it would
•^

Martin

Fin>Ncjal

W. Cohn is with Frank Knowlton

CINCINNATI, OHIO—Clarence

debt burden,
through debt repayment, but there is doubt whether
the debt can be shifted from one class of investors to another, and

The

OAKLAND,

markets....

There is

(Special to

Euclid

Avenue.

Robinson

to the

& C0•, lQC" Pacific

Ogden, ' Martha

Vance A. Zerby, James
Robert F.

H. WarnFridenberg.

Hart, Richard

ken, and Louis J.

Caskey,

I. Thomas,

'#$IN ANCIAli CttfedtilCtiE

1630 Number 4480

Volume

and lead

the

States,;« are

the

principal factors bearing On

the economic implieations of po¬
litical independence as provided

- -

all ql

under the

long i distance

The

Say®**

Tydings bill (S. 227).

supplementary

report

also

discussses

burposei IS contained iri the prfeliminary ffep&fTbf th# Bureau i>r

are

be ;gfe&tet stocks. Were

you

tipfl of the railsi it is the in-' still in effect. The stocks,
are active.
purchase prices and current
levels <as of Tuesday a.m.)
V;
*
He
*
and $t6ps foUowt Air Reduc-'
The
ideal
performance

dustrials which
'

M=r===By WALTER WHTTEs

away fr6m the need lor seeking
financial aid,'at least tbr Ordiha^.

still

long of nine
holding full
tlia iL general^ iinticipatecL. positions I would advise selif
We- are seeing this kind of ing half here. X But as yoili
flash strength.
Evidence of have only half positions, the
this can be found ih the ac-1 advice to hold with steps is

Markets
Continue to Increase1 *
E videjab^ that mbst,'

You

eventual weak-;

which

ne$s

Stated

197,1

to. change Puerto Rico's political ;
n
status. Tlie principal proposals"

of the Department of
"Balances ih: State

Census

the

Commerce on

.reviewed
the

General,/Highway, and Postwar
Reserve

Funds

are

bought at S!^ no^^outi
strength would be dullness, even if it
150; sto|);at S^iilVlne^kn Car
little too nbvious. Chinpara- lasts the rest ^>f th^^
& Foundry bought at 60,
tivol^ bad rail aetion more It would tend to drive but the about 69; stop at 64J • Ameri^
significant to immediate weak holders and build Up a
can Steel Founders bought at
base from which a real move
trend.

Statehood.

bill—inde¬

tM TydiAgs

study shows
Iheir
DOstwar^eserve,funds; during the

qusn<?es as

The

report points out that po-

itifcal independence as provided in

reported in 1944, the
that tldiv £rou^

independence bill

mchSerioUsOfc'6 n® m I

tion

Continued industrial

those contained in

Tydings-Pinero

of the States, the balances of
which constituted two-thirds of the
aggregate totals for -all 48 States
25

the economic

pendence, "dominion" status, and

Devoted

1945.

briefly

implications of other proposals

could start.
Instead we are 42, now about 45; stop at 43^
thing to do here
Bethlehem Steel r bought at
is to wave an approving hand seeing a buying compulsion
99, now about 107; stop at 99.
at the market) do a little self fed by such things as splitChrysler bought at 120, now
back ups,; expiration of rights, and

JCWM&ri

tb tender the island

The easiest

secure in the

feeling that such
a
position will "win friends
and influence people." - I'm
afraid I can't depend bh such

declaration

dividends^

ihout

135t$tOp^at^^128;;^^^Elec-

trie Auto-Lite

bought at 71,
;about 75;.; stop at;-69.
Superheater bought at 30,
ihe oommned balances of the
how-about 32; stop at 29. p. S.
liVihg; Thh feporjt also ob¬
the
expiration of a right
a program to make me popu¬
25 States 1n* the three funflo
serves that no status provided for
Steel bought at 82, now about
should be looked upon as a
lar.
I don't know how much
(general, highway and postwar)
in the Tydings-Pinero bill (inde¬
85; stop at 79. U. SV ltubbet
advance* to $1,470,000,000 JfrOm
For
pendence,4 "dominion" status,4 or influence I have, and as to sign of further strength.
the 1044 aggregate, of, $1,094-000,-.;
when such strength does oc¬ bought at 651^, now about
Statehood) would offer Puerto
000, or <a:(gain Of -34.4%. flight- Rico any better opportunity (if winning friends* I'll still call
76^; stop at 69.
•

fiscal year from $147,000,900 incapable b£ supporting a popula¬
^453 ,'OOtHObO/ ;an increase . of tion of anywhere near the present
215%.
■.
Size at even the: existing lowstand1945

;

have never been able to

fig¬

out why: split-up should
foe considered bullish, or why
ure

how

fund balances amounted 4o

way

indeed

good

opportunity) to

them

see

them.

And if

lh-104^ a$ against deal With the major economic that disturbs anybody's men¬
$288.000,000 0 ^ear a^jtiid
^ problems which confront it than tal
equilibrium, they'll have
eral funds rose from $659,000,000
would a Continuation of the island's
to take it up with the pub¬
to $681,000,000,
»«* * " *"X
present status.
lisher. For despite the appar¬
inclusion^ of figures for .the re¬
that thfe
ent good action of the market,
maining 28 States in the final re¬
economic problems which Puerto
it doesn't look too good to me,
port, which is expected^ to be,
Rico poses, both fdr itself and
published early in June, will not for the ^United* States, are not
*
*
*
materially influence the trend evi¬
susceptible
of solution by a
denced thusr£a*p.the Census, jBu*
Last week
I
wrote
that
purely political change in Puerto
$320,000,000

cur,
not

The bureau, however,
against the popular mis^
conception of the Word "surplus,"
adding that it does hot mean af¬
fluenceContinuing,; the bureau

reau

states.

warns

says;
"While,
stated

0 • * *
generally ..it can he
the finals o" the
in better sha*>e th n

that

States are

■

the

before

they were
should

w*r.

the

postwar problems and . difficul¬
ties the States have to cope With
cairn**

be properly evalu*

yet

atetf."

■;

,...

•/;

Evotioihic
of

"+'::

•

—

Imp!fcati»i*s

Iftde^efedeiite Proposals

for Puerto Rico

The*

report on tiie econofnit
implicauons of independence aha
other proposals to change Puerto
Rico's political status. This report
was prepared in compliance with a
request.- by Senator
Millard iE.
Tydings, Chairman of tne Senate
Committee on Territories and In¬
sular

Affairs, for information sup¬
plementary to that contained in
earlier

Tariff Commission re¬

Econ¬

port

with Special Reference- to
United States-Puerto Rican Trade."
omy

The Commission's earlier

report

the

Congress proposing
independence. for Puerto Rico
i S. 952)." Public. hearings * were
78th

introduced

by Senator ^Tydings ;i»

the

five hearings? Were held On that
oill Mso^: fcui Urns? fay ho,
legisla|

No nublic
hearings have been
on that bill.

V.£y "

held

The information and the maior coneW«fons contain ed in the
Com

jf'

United

States

Supreme

April 1, denied the ap¬
plication for a writ of certiorari •
Court,

in the

Wilbsrn B. Shrisiian

case

of State of Washington

Joins Edw. 3. Jones

which

can even

visual¬

the industrials

The

rails

not

are

Maricopa County, Ariz., thus
ST.
LOUIS, MO. —Wilbur B.
ending the four-year fight carried
on by -bondholders, who challenged
Christian has become associated
the right of the county to call eer- ! with Edward D. Jones & Co., 300
tain of its bonds in advance of North Fourth Street, members of
tkm Was

instituted

by 'the

ac-

State

the New York, St. Louis
Chicago Stock Exchanges.

of Washington and the Equitable
Life Insurance Co., of Iowa, fol-

aty, 1943, the State.Loan

A«>.nrredl since it was

major pappose
this cww«i/vw»pnf9rv renort is
cunplva^diqnnalinformation
the sob tp*** and to summarize

[The

N. T. & S. A.

everything.
swer

is much

that

article do not necessarily at any

.ri

rail's

Chronicle.

They are presented as
those of the author only.]

LAMBORN & CO.

answers

99 WALL

look

•,.,••4.0;

Robert L» Winters Co.

to The FinanWtXl Chronicle) 4

GLENDALE,
L. Winters

CALIF.

& Co.,

—

Robert

Inc., has been

prices':;;ih the-.Secii*
tity But1 ding to engage

the

rate

and

the

present ICC investigation

and you will come
the answer.

closer to

"f:

'•

i r'i '■

lis

Stock Exchanges.

in the

Lewis
and

Mr. Wil¬
partner in

past was a
Hall of Greensboro

and

;lj

Established 1656

Securities

H. Hentz & Co.
Orders Executed on
,,

Pacific Coast Exchanges

New

•.

S&l— .v-

Exchange

Curb

Exchange
Exchange

Exchange,

Inc.

of Trade
New Orleans Cotton Exchange
Chicago
And

Board

other

Exchanges

York Stock Exchange

(Associate)
Chicagb Board of Trade

New York Curb Exchange

14 Wall

Bliattuck Avenue.-

Commodity

i Members

prior to his connection with

Stock
Cotton

York

New

Schwabacher & Co.

Members

York

New
New

*ba£ firm was w*th the Chase Na¬
tional Bank of New York. ■»,
•

in: the in-

L'~

.U*Zr>

Pacific Coast

Street, Baltimore, Md., mem¬
bers of the New York and Balti¬

ihelit business from offices at 1974

y::"

Exports-^imports—Futures

DIgby 4-2727

ve^tmVnt btisiriessJ ^Officers-fet^ 4^r Street In Berkeley ?
1 BERKELEY, C A L I F.—ft., W.
L; Wihtes, fYqd,|W. CKaso.
engaging in
:

SUGAR

* >

Ml"ifc

;

Bbfoert

-ChasC.

STREET

NEW YORK 5, N. Y.

making schedules
the territorial differences,

, SMS

(Special

those of the

with

coincide

time

I think the an
deeper than any

Take

strike.

taking

faction blames the coai

One

strike

tW!K(§T5lSr-SALEM, N. C. —
Co., Boettcher Benjamia S. Willis is with Alex.
Brown & Sons,
135 Ea'st Balti¬
Co., and the Baftk of America
Moulton

Thursday.^

—Walter Whyte
views expressed in this

mmm

ioo.oi9.ia-

;

More next

part in the industrial strength

ai^licnjailllll YvllllS Willi

Commis-

lion, vn behalf qf the county,, re-i jj
•CreiVied smd acepted a.-hid ior

them.

(Special to The financial Chronicle)

vs.

have

notbt»^n^aIteTedbv0fiyeyehts

°n

away

group were

1002-H. 1L 3237), which was intro¬
duced bv them at the request of
the Legislature -of Puerto Bird

°f

year

Maricopa County Case ?

The

it.

Puerto Rico's political status has
also been introduced, including the
80-cal led
bill r (S.

happen if

talk

making a
United States Tariff Commission*;,
e
Strength. It IS new high before this gets into
Washington 25, D. C., or from the no secret that there is a great print. But the more new highs
Commission's office in the Custom deal of stock overhanging. A
and the more Strength we see
House in New York City.
quick absorption would, in from here on, the more dan¬
my
opinion,
dissipate the gerous I consider the market
-Ui S. Supreme Court
market's internal strength
^ules Against Bondholders
❖
*
«<

taVen ujjbn

tiVe

As to what will

today is: any or all of the above stops
"There is only one way for are broken should bo of minor
them to go—up."
The fact cbnceni.j^bhee youareout
that we have been in a four- of certain issues tneir subse¬

from here.

and
Mr.
Christian, who has been in the
brokerage business for more than
held On1943*; huLiwa -lowing a decision of the Supreme forty, years, was formerly with
Court of Arizona that certain high- t. -M; Simon & Co. in charge of
legislative action was taken on it
way j bonds of Jthe
county were the Grain and Commodities Deduring the 78thCongress. An iden¬
tical independence proposal was optionally redeemable. In FehrU- | partment.

common

bull market is explained quent action should become
that this is just an ad¬ secondary.
It is only when
justment to an old overbearRico\s status, and that ho simple
you
^ebnsiderihg heWbujfl
there were three courses open
ish position. The supposition
ht ready ubiutioh to these jpfofror sales; that market perform¬
to the market: Additional ad¬
is that current prices are nor¬
ferns in fact exists. Even under
vance through previous highs;
If
mal and that with a new two- ance becomes important.
the jiuost favorabie hoiitibal cir-;
dullness, and, or immediate
cumstances, such economic prog¬
year bull period ahead prices the Stops are hold and the
ress as the island can expect to
reaction. In the past few days
are bound to go higher.
May¬ market continues to go up,
achieve out of its own resources
we have seen the first, i. e.>
be the majority is right this
Is4lkeiy4d;he blow* 0Aiid» Unless advance.^
Theoretically this time. But until the market's you have hothihg to ^otry
Some way ©ah be found W Se*
about.
Of coiUSe the stops
should make me happy, par¬ action
crease -the size Of the Island^
justifies such rationali¬
should be lifted as the ad¬
population, or at least check its
ticularly when I have recom¬ zation, I prefer to use current
growth, the realization of a desir¬
mended stocks which are now
vance continues.
But so far
strength for selling and not
able stanadard of life for Puerto
well in the black. The fact is
as
new
Rioahs Will be contingent upon
buying.
purchases are con¬
❖
*
*
that a poor market at this
their receiving a substantial, and
cerned there is nothing in the
very likely an ever-increasing,
juncture—that is poor to the
I can see further strength
measure of outside aid.
present action to recommend
extent that dullness takes the

suihbittedM:ldayi 1943, short¬
after the "introduction 01 a bill stipulated maturity dates. The

was

❖

The

ize

issued a

it should be used to sell,
buy.

Street

New York 5,

COrtlandt 7-4150

N. Yi

Private Wires to Principal Offices
•.

0'^Sait FifcnclMo
Monterey

—

N. Y. Cotton Exchange
NEW YORK 4, N.

Teletype NY 1-928

Oakland
Fresno

—

DETROIT

CHICAGO

Barbara v8acramento

:^rr'e^f-,'
■■

i MB

ami

Bldg.
Y.

PITTSBURGH

THECOMMERCIAL & FINANCIAL

19 7 2^;

CHRONICLE

Thursday,- April U;..ig46

'•fibVfr-rAhy

m
m

M
b

s.*V

'J-»,

y~,

#4
J-

I
f

||'v
;fey

|§
m
.m

«'WVl

k
if
/■

•V

.K:
iif
«*
m

•:!)v
m

'„>•

American Water

Chattanooga, Temv .<4/21)
April 2 filed 100,000 shares class A stock (par $1) and
290,000 shares common stock (par $1). Underwriters—
Reynolds & Co.
Offering—100,000 shares of class A
stock and 100,000 shares of common are offered in units
Air Products, Inc.,

$11

of one share of each at

per

unit.

Of remaining com¬

Remaining 40,000 shares common are being
directly to certain officers and em¬
ployees at $1 per share and are not underwritten. Pro¬
ceeds
$60,000 to purchase machinery and equipment
heretofore rented from Defense Plant Corp.; $81,500 to
purchase of plant at Emmaus, Pa., together with $70,000
for cost of conversion and moving; balance (estimated
$913,500) for general working capital.
For details see
share.

offered by company

Water Works & Electric, liquidate
Community Water Service Co. and
Ohio Cities Water Corp., and provide cash working capi¬
tal.
Common stock is to be offered initially for cash
to common stockholders of parent and to public holders
of preferred stocks of Community "and Ohio in exchange
assets

—

two

issue of April 4.

Inc., New York

American Acoustics,

•

(letter

Aro

of 6%

cumulative

\"M

59,800 shares of common stock (par 10c); 100,000 stock
purchase warrants and 149,500 shares of common to be
issued upon conversion of preferred at rate of V-k com¬
mon for 1 preferred.
Underwriters—L. D. Sherman &
Co.
Offering—Stocks to be offered in units of one share

W-.

preferred

convertible

each at $5 per

stock

(par

and

$5)

it
%■

March 13 filed 101,086

shares of common stock (par $1).

are

—

Offering—Company is offering to exchange its common
the outstanding shares of stock of Republic
Industries, Inc. Geometric Stamping Co. and Kermath
Manufacturing Co., subsidiaries of Barium Steel.
Each
such exchange will be made upon the basis of
assigned

amendment.

issue of April

American

Mail

values to the shares.

Line Ltd.,

Bendix

Seattle, Wash.

March 11 filed 49,602 shares of common stock (no par).

Underwriters—Blyth & Co., Inc.
Offering—Common
stockholders given right to subscribe for 49,602 shares
at $20.50 per share on basis of 48/100 of a share for
each share held.
For details see issue of March 21.
•

American Manufacturing

Ala.

Co., Inc., Montgomery,

Helicopter, Inc., New York

Feb. 13 filed 507,400 shares of common stock (par 50c).
Shares are being sold for the account of the estate of
Vincent Bendix, deceased. -Underwriters—Kobbe, Gear-

hart & Co., Inc.,

For details

Bendix Home
March

filed

April 5 filed 1,000,000 shares of common (par $1). Un¬
derwriters—No underwriting—to be offered directly to
the public by the company.
Offering—Price to public
$1 per share. Issue will be sold within State of Alabama.
Proceeds—Acquisition of
additional
machinery and
equipment, for plant expansion, for working capital, etc.
Business—Refrigeration units.
American Molasses Co.,

New York

(4/15)

March 22 filed 150,000 shares of common stock (par
$1).
Shares are being sold by certain stockholders.
Underwriters—Hornblower & Weeks and Union Securi¬

ties Corp. Offering—Price to public by amendment. For
details see issue of March 28.

ers

104,301

of record March 30

one

$17

share of

new

share.

per

For details

see

issue of Feb. 20.

Appliances, Inc., South Bend, Indi

33y3 cents per share).

(4/24)

shares of common stock (par
Offering—Common stocks hold¬
are

given the right to subscribe
for each

common

Issue

not

being

held,

Proceeds—Proceeds, together with

loan

term

$1,250,000 and current funds. will be used

finance the purchase of a plant formerly
belonging to
the Defense Plant Corp. for
$1,750,000, purchase of ad¬
ditional machinery and equipment and for other

plant

improvements.

For details

see

issue of April

Benguet Consolidated Mining Co., Manila, P. I.
15 filed 702,302 shares of
capital stock value
(par 1 peso, equivalent in U. S. currency to 50 cents
per share).
Underwriters—Allen & Co. The shares are
March

part
&

Co.

150,000

total

from

five

852,302

shares purchased

stockholders.

the

by Allen
852,302 shares,

sold privately at the cost price to Allen
& Co.
Purchase price to Allen was $2.10
per share.
Offering—Price by amendment.
For details see issue of
were

Buffalo Forge Co., Buffalo; N. Y.

Burlington Mills Corp., Greensboro, S.C.
(4/23)
March 30 filed 100,000 shares of 3 */2 % convertible
second

preferred stock (par $100). Underwriters—Kidder Pea
Offering—Preferred stock is offered to com¬

body & Co.

stockholders of record April

mon

fiftieths of
held.

mon

have been waived by directors and officers
so
»'as tO'lhake possibly the ratio of1 three-fiftieths of a share
common

April

are expected to include expenditures of
approximately
$8,000,000 in 1946 and 1947 pursuant to a program for ad¬
ditions and betterments to plants and equipment.
For
details see issue of April 4.

Bush Mfg. Co., West

(par $5).

mon

and

Co.

Offering—Price to public is
$25 per share for preferred and $10 per share for com¬
Proceeds—Proceeds from sale of

mon.

stocks,,

approxi¬

mately $298,000 from sale of 4% sinking fund deben¬
tures, together aggregating $844,500, will be used to
finance construction of a new plant and for
working

For details

capital.

see

issue of April 4.

Capitol Records, Inc., Hollywood, Calif. (4/16)
March

filed

shares of common stock (par
being sold by stockholders, Blyth
& Co., Inc., and Union Securities Corp. which are
selling
47,500 shares each.
Underwriters—To be selected by
Blyth & Co., Inc., and Union Securities Corp. OfferingPrice to public by amendment.
For details see issue
of April 4.
25

cents).

95,000

are

Central Maine Power Co., Augusta, Me.
18 filed 220,000 shares of preferred stock ($100
Dividend rate by. amendment.
By amendment
filed March 29 company proposes to issue $13,000,000 1st
& gen. mtge bonds series N due 1976 and 1,000,000 shares
common (par $10). Bonds will be sold through competi¬
tive bidding.
Underwriters—By amendment. Probable

March

par).

bidders include

Glore, Forgan & Co.; W. C. Langley &
Co.; The First Boston Corp.; Coffin & Burr; Harriman
Ripley & Co.; Blytji & Co., Inc., and Kidder, Peabody
& Co. (Jointly).
Offering—Company will offer to hold¬
ers of 7% preferred, $6 preferred and 5% $50 preferred
stock right to exchange such
stock on the basis of one
share of new preferred for
each $100 par value of old
preferred plus a cash adjustment, Balance of new pre¬
ferred stock will be sold to

by competitive bidding.
Chain Store

underwriters, to be selected
see issue of April 4.

For details

Investment Corp.,

Boston

(4/22)

15,000 shares of 4%% cumulative convertible
preferred stock (par $50) and 100,000 shares of common
(par 10c). Underwriters—As to preferred, Childs, Jef¬
fries

Thorndike, Inc., and H. C. Wainwright & Co.;
First Colony Corp.
Offering—Preferred
offered to public by underwriters by
amendment.
Common stock will initially be offered by
corporation for subscription to common stockholders at
a
price to be filed by amendment, but 50 cents per
share under public
offering price. For details see issue
as

to common,
will be

stock

of Feb.

14.

March 14 filed 275,000 shares of
Shares

are

Co., Glore, Forgan & Co. and
Offering—Offering price to pub¬

Proceeds—Modernization,

sion, etc., of manufacturing
details see issue of April 4.

expan¬

facilities and plants.

For

stock

(par

stock

common

pre¬

purchase

filed 19,419 shares of 6% cumulative con¬
preferred stock (par $25) and 197,000 shares
of common (par 10c).
The 19,419 shares of preferred
and 162,000 shares of common are
being purchased by

☆
SPECIALISTS IN—

Underwriters and Distributors

48 WALL

CO.

ST., NEW YORK 5, N. Y.

Securities

Kidder, Peabody W Co.
Founded 1865

HAnover 2-2727
1

Chicago

•

Boston

•

Cincinnati

Philadelphia
•

St. Louis

Corporate and Municipal

Municipal Bonds

INC.

Offering—Price

the New York Stock Exchange.

vertible

(4/15)

shares of $1.20 cumulative

$25), with

c. J. devine

Chicago and other cities

par).

Under¬

Compania Litgrofica De La Habana S. A.

United States Government Securities

CORPORATION

Colo.

stock (no

(Havana (Cuba) Lithographing Co.)

Bowser, Inc., Fort Wayne, Ind.
March 25 filed 200,000

underwriting agreement.

public "at market"

March

ferred

common

being sold by certain stockholders.

Union Securities Corp.
lic by amendment.

FIRST BOSTON

Underwriters—Lee Higginson Corp.

Scranton &

Chas. W.

writers—Paul H. Davis &

The

Hartford, Conn, (4/17)

March 29 filed 20,000 shares 4 y2% cumulative convert¬
ible prior preferred (par $25) and 10,000 shares com¬

writers—No

State and

Boston

unsubscribed shares will be sold to
Proceeds—For corporate purposes, which

The

22.

☆

10 in ratio of threeshare of preferred for each share of com¬
Rights appertaining to 55,106 shares

Colorado Fuel & Iron Corp., Denver,

200,000 shares of cumulative preferred
stock (par $100).
Dividend rate by amendment. Under¬

Corporate and Public Financing

NewYork

(4/15)

shares of common stock (par <Sn
Shares are being sold by two stockholders.
Underwrit
ers—Hornblower & Weeks. Offering—Price to the
pub
lis by amendment.
For details see issue of March 21

Borg-Warner Corp., Chicago, III. (4/16)
March 28 filed

—

ino

March 14 filed 60,000

underwritten.

☆

i;,UT

of March 28.

For details see issue

issue of March 28.

March 21.

subscribe to new preferred at rate of one share of pre¬
ferred for each four shares of common held at
$52 per
share.
Unsubscribed shares will be purchased by un¬
derwriter.

Uhderwriters-T^Blair &

Offering^Price;:

Feb. 8 filed

American Screw Co., Providence, R. I. (4/17)
March 29 filed 21,550 shares of 4%% cumulative con¬
vertible preferred stock (par $50) Underwriters—G. H.
Walker & Co.
Offering—Common stockholders may

Ne# Ydrkrr

stock for

Proceeds—Work¬
ing 'capital to provide funds in connection with new
product known as "AMF Automatic Pinspotter."
For
see

(4/18)

March 30 filed 258,160 shares of common stock (par $1).

ers—Lehman Brothers and Union Securities Corp; Offer¬

details

(4/15)

Barium Steel Corp., S. E. Canton, O.

(4/16)

of cumulative preferred stock
(par $100), Dividend rate by amendment. Underwrit¬

March 28 filed 80,000 shares

ing—Price to public by

Products, Inc., N. Y.

filed

37,220 shares of 4% cumulative pre¬
ferred stock (par $50) and 100,000 shares of common (no
par) of which company is selling 20,200 shares of pre¬
ferred and certain stockholders are selling 17,020 shares
of preferred and 100,000 shares of common.
Underwrit¬
ers—Hemphill, Noyes & Co., F. S. Moseley & Co. and
H. F. Boynton & Co., Inc.
Offering—Prices to public
For details see issue of March 28.
by amendment.

Inc., Louisville, Ky.

American Machine & Foundry Co., N. Y.

stock

Avon Allied

March

being sold by certain stockholders.
Under¬
writers
Almstedt Bros., Equitable
Securities Corp.,
Bankers Bond Co., W. E. Hutton & Co., and Stein Bros.
& Boyce.
Offering—Price to public $13.75 per share.
For details see issue of March 21.
Shares

Diesel Engine Co., Oakdale, Calif.

shares of series A cumulative pre¬
($50 par).
Dividend rate by amendment.
Underwriters—Blyth & Co., Inc.
Offering postponed
indefinitely. For details see issue of March 7.
ferred

and to pay Pressurelube Inc. for inventories and other
property acquired from it, working capital, etc.

American Air Filter Co.,

30,000

Atlas Imperial

Warrants will be Sold at 1 cent

unit.

filed

Feb. 28 filed 30,000

Proceeds—Payment of obligations to be assumed

each.

(4/29)

Equipment Corp., Bryan, Ohio

attached.;

warrants

underwriters.

shares of cumulative preferred
stock, 4V2% series (par $50) and 20,000 shares of com¬
mon
(par $2.50).
Underwriters—Central Republic Co.,
Inc., and Reynolds & Co.
Offering—Prices to public
by amendment.
For details see issue of March 21.
March

(4/16)

59,800 shares

notification)

bash to underwriters.

For details

exceed 300,000
$1. No under¬
Purchase of inventory of aircraft parts and

accessories, etc., and working capital.

April

Stock not subscribed or issued under

exchange offers are to be sold for
see issue of April 4.

Inc., Vandalia, Ohio

April 5 (letter of notification) not to
capital stock (par $1).
Offering price

writing.

of American

subsidiaries,

for their shares.

Air Technical Services,

(4/18)

(par $5) plus
an additional number determinable only after the re¬
sults of competitive bidding are known. Underwriters—
To be filed by amendment.
Probable bidders include
Dillon, Read & Co. Inc., White Weld & Co., and Shields
& Co. (jointly), and W. C. Langley & Co. and The
First Boston Corp. (Jointly).
Offering—Price to public
by amendment.
Purpose—The common stock, together
with $15,000,000 10-year 3% collateral trust bonds (to
be sold privately) are to be issued to acquire certain

150,000 shares will be offered at discretion of un¬
derwriter to purchasers of such units or to others at $1

•#!

Works Co., Inc^ N. Y.

2,343,105 stares qf

March 30 filed

mon,

per

SINCE.PREVIOUS ISSUE

fHi

INDICATES ADDITIONS

•

Pittsburgh

> Cleveland

San Francisco

Members of the New York and Boston Stock Exchanges

New York

Boston

Philadelphia

Chicago

'f:
■■

Volume

r^K::!

THE COMMERCIAL & FINANCIAL CHRONICLE

rebm4480
uNi

163

underwriters from certain stockholders, The re¬
35,000 shares of common are being purchased

♦he

gaining

5?om

the company.

York.

Offering—Price by amendment. For details see
of March 21.

issue
•

Underwriters—Hirsch & Co., New

Consolidated Gas Electric Light & Power Co.
(4/17)

$44,660,000 series R first refunding mort¬
gage bonds due April 1, 1981.
Interest rate by amend¬
ment.
Underwriters—To be filed by amendment.
March 29 filed

Probable bidders include

Halsey, Stuart & Co., Inc.;
Harriman, Ripley & Co., and Alex, Brown & Sons
(Jointly), and White Weld & Co., and the First Boston
Corp. (Jointly). ;; Offering—Bonds will be offered -for
sale at competitive bidding, and the price to the public
filed by amendn^nteProeeeds—Net proceeds, together
from general funds

with money

required, will be

applied toredemptionof $20,844,000 series N 3%%bonds
and $23,816,000 series O 3%% bonds at 105Vz and 107,

For details see issue of April 4.

respectively.

March 29 filed I00,00^shares common stock (no par).

solcLby certain stockholders. Under¬
Offering—Price to public by

writers—W ertheim & Co.

For ^details- see issue of April 4.

amendment,

■X,

-Sirffi
..

NEW ISSUE CALENDAR
(Showing probable date of offering)

stockholder.

Firth Carpet

;

Haile

Co., N. Y. (4/17)

12, 1946

A—J

Mines, Inc

Warrants;

—

Hudson Valley Gas Corp

-.Common and Bonds

March 29 filed 125,000 shares common stock (no par),
of which 33,436 shares are being sold by company, 61,150

Kerr-McGee Oil Industries Inc..

by Harold E. Wadely, President, and 30,414 by Graham
Hunter, Vice-President, Treasurer and Secretary.
Un¬
derwriters—Reynolds & Co. Offering—Price to public
by amendment.
Proceeds—To finance inventories, ac¬
counts receivable, general working capital.
For details

Huy ler's
Kingston Products

see

issue of

Preferred-

April 13, 1946

March 30
Shares

April 4.

Sonotone Corp.

—Common

Corp

—

———..^.Preferred
15, 1946

April

(letter of notification) filed 20,000 shares of
stock (par $1). Sale for benefit of S. C. Korn,
Underwriter—Floyd D. Cerf Co.
Offering—Price to
public, $5 per share.

April

.——Common

American Molasses Co

common

Avon Allied Products Inc.—Preferred and Common

Bowser, Inc.--*—-_r-—.—a—.—Preferred I;
———Common

Buffalo Forge Co.——

f; Ffailey Industries, Inc. (4/L7)

EatotyJ^aimj^cturijig.Go,,*-.,.*..^.^—.. ^Common
GeriejfctvffMephone^Corp;.^^*!*^
GCrity-Michigan Die Casting Col-ii.k—Common;
Graham-Paige Motors Corp,.k^i.k^——Debenture*

;

MliiwKfii"' (letter of notification)58#80 shared

claitel® ^

stftck* (par $1)Underwriter—-Edward R. Parker,

& Co.

Price $5 per share.

Proceeds—Working capital, etc.

Joy Manufacturing Co.————Common
General Telephone Corp., New York

(4/15);

National Automotive

are

filed 46,050 shares common stock ($2 par).
being sold by certain stockholders.
Under¬
& Co.
Offering—Price to public

$12.25 per share.

Top Brewing Co.—————CI. A Common
Republic Indemnity Co. of America.-—Common
Rockridge Gold Mines Ltd.—
——.CommonShell Union Oil Corp
Debentures
Steep Rock Iron Mines, Ltd.—.———Common

either

at private sale or on the New York Stock Ex¬
change.
Proceeds—Working capital.
Prfce at market
(about $42% per share).
.•

—

Dallas Title & Guaranty Co., Dallas, Texas
Feb.

filed 25,000

shares of capital stock (par $10).
named.
Offering—Company has
granted holders of capital stock rights to subscribe at
$20 per share to new stock at rate of one share of new
for each share held.
Company reserves right to sell
Underwriters—None

(4/29)

Delaware Power and

Light Co., Wilmington, Del.

April 5 (letter of notification) common stock (par
$13.50). The maximum number of shares to be offered
is 7,500 shares.
The offering is by holders of two shares
of

common

Delaware

result

Improvement Co.

who

the

have received the
distribution by United Gas

Price at market.

common stock (par $2).
being sold by certain stockholders. Underwrit¬
ers—Hallgarten
& Co.
Offering—Price to public by
amendment. For details see issue of April 4.
are

Co., Cincinnati, Ohio

writers—Van Alstyne, Noel & Co.
Offering—Price to
public $25 per share.
For details see issue of March 28.

DuMont

N. J.

(Allen B.)

(4/17)

Laboratories, Inc., Passaic,

lor sale

by Underwriters,
Underwriters—Van Alstyne,
Noel & Co. and
Kobbe, Gearhart & Co., Inc. OfferingPrice to public by amendment.
Proceeds—To expand
television broadcasting and manufacturing facilities and
operations in the low-frequency fields.
For details see
issue of April 4.
Eaton Manufacturing Co., Cleveland, O.
March 7 filed 178,364 shares of; common stock (par
$4).
Underwriters—Merrill Lynch, Pierce,* Feririer & Beane.

Uttering—Company is offering the

new stock

share.
of

Consol. Gas El. Lt. & Pwr. Co. of Bait——Bonds

Crowell-Collier: Publishing Co.«—«———Crimmon
Diamond T Motor Car Co.—.

Rights expire April 13.
April 4,v:^i> '-rv

For

details

Inc..CI. A Common
Common
Frailey Industries, Inc
.———Class A
.Longines-Wittnauer Watch Co. Inc
Common
Lynch Corp.
Common

Milwaukee, Wis.

Inc.,

Paulsboro Mfg.

(4/15)

Gold City Porcupine Mines, Ltd.,
filed

...

Underwriters—No

currency.

Super-Cold Corp.

United Cigar-Whelan

Walworth

April 21,

be issued to Allen & Co., pursuant to a
standby agreement.
Underwriters—Allen &
Co., New York.
Offering—Price to public by amend¬
to

Air

proposed

For details

see

'April 22,

Mass/1

April 23, 1946

lic
.

Industrial, Public Utility, Railroad
and

Public

PHILADELPHIA

PITTSBURGH

TRENTON

(

Holders

^company;

Stock is being offered initially to

vINDIANAPOLIS

(|j-j

WASHINGTON

•

Pipe Line Co

April 24, 1946

Co.
—...—Common
Hytron Radio & Electronics Corp.-—Commorf
Morris Plan Corp.—.—.^Preference -and Common
Peerless Casualty Co.--.———..-——....Common
American .Manufacturing

approximately 200,000 shares have

April 29,

1946

Preferred and Common
Davidson Bros., Inc.^———Common
Standard Steel Spring
erred
Aro

•

Equipment Corp..

1J) cents each or # total of $5,000. Postponed

indefinitely
.

''.^ALBANYCHICAGO

by amendment.

agreed to waive their preemptive rights.
The under¬
writer will receive 50,000 five-year warrants to pur¬
chase common stock at a price to be filed by amend¬
ment.
For, these warrants the underwriter will pay the

Hemphill^ Noyes C& Co.
NEW YORK

;

17 filed 270,000.

ment.

Municipal Securities

O Members New York Stock Exchange "X

Jacksonville, Fla*

present shareholders, at a price to be filed by amend¬

.■>'

—...—.2nd Preferred
Debentures
Flyers, Inc..——Common

Panhandle Eastern

shares of common stock (par $1).
Underwriters—Allenl& Co. Offering—Price to the pub¬
Jan.

Pfd. and Com,

Burlington Mills

stock at 105.

UNDERWRITERS—DISTRIBUTORS—DEALERS

1946;^\?:f;^.#p!|||f

Tex-O-Kan Flour Mills Co.—————Preferred

shares of common stock (no par).
Underwriters—Tucker, Anthony & Co.
Offering—Price
to public by amendment.
Proceeds—Net proceeds, with
additional treasury funds will be applied to redemption,
on or about May 1, 1946 of 9,000 shares of $6 preferred

Gulf Atlantic Transport'n Co.,

Stock

Common
Common

Chain Stores Investment Corp..^

March 28 filed 51,591

••

1946
——Class A

Sharon Steel Corp..

bie•korpll. Greenfield,

(4/16)

per

Products Inc.....

Roberts & Mander Corp..

issue of Feb. 28.

Greenfield Yap^A

Common

..Common
Curtis Companies, Inc
Common
Hoffman Radio Corp..
—Common
Mading Drug Stores Co
Debs., Pfd. and Common
National Skyway Freight Corp
Common
Nation-Wide Securities Co., Inc.—
.Common
Ohio Public Service Co...Bonds, Notes and Pref. Stk,
Segal Lock &
Selected Industries Inc.—
....Debentures
Taca Airways S. A.—.Common

secured convertible deben¬
1956, and an indeterminate num¬
shares to be reserved for issuance upon
the conversion of the debentures, and 25,000 shares of

ment.

Preferred and Common
..Debentures and Preferred

Co.

April 18, 1946

common

common,

Common
.Common

American Water Works Co. Inc
Barium Steel Corp.—
......

Graham-Paige Motors Corp. (4/15)
March

Preferred

Stores Corp

Co..

underwriters

Feb. 21 filed $12,000,000 4%
due

Transit

Utility Appliance Corp

(par $1)

public at 50 cents U. S. currency per share. If com¬
pany accepts offers from dealers to purchase the stock,
company will sell to such dealers, if any, at 32.5 cents
U. S. currency per share for resale at 50 cents U. S.
currency per share.

ber of

Common
—^.Common

Union Electric Co. of Missouri
United

tures

Preferred and Common

.....

Tucson Gas & El. Lt. & Pwr. Co

Offering—Company is offering common stock

named./

one

*•

.Preferred

Preferred and Common
Hampshire——Common

Scranton Electric Co...

Toronto, Ont.

600,000 shares of common stock

Co.—-

Public Service Co. of New

shares of common stock (par $5)
shares are being sold by company and
81,000 by certain stockholders.
Underwriters—Gold¬
man, Sachs & Co.
Offering—Price to public by amend¬
ment.
Proceeds—Will be added to general funds of the
company.
For details see issue of April 4.

issue

see

.—.Common

DuMont (Allen B.) Laboratories
Firth Carpet Co.—

March 27 filed 120,000

to,Holders

of its common stock of
record March 26 at rate of
fcew share for each four common
shares at $54

.Common
Preferred and Common

Helicopter, Inc.
Bush Manufacturing Co

March 29 filed 650,000 shares of class A common stock
(par 10 cents), of which 525,000 shares are being offered

Preferred

Bendix

New Haven Clock & Watch Co

Canadian

108,000 shares of 4% cumulative con¬
vertible preferred stock, series A (par $25).
Under¬

Preferred and Common

American Screw Co..

are

Globe-Union

Jan.

March 22 filed

Co.—.—Preferred

April 17, 1946

filed .81,249

of which 39,000

March 29 filed 60,000 shares of

Drackett

Corp...———Ctfs. of Interest

Ltd., Toronto, Ont.

Feb. 28.

may

Diamond T Motor Car Co., Chicago,llt. </Ul7)
Shares

Feb.

dian).

April 10 filed 100,000 shares common stock (par $1).
Shares are outstanding and are being sold for account
of certain stockholders.
Underwriters—Merrill Lynch,
Pierce, Fenner and Beane, and Baker, Simonds and Co.
Offering—Price to public by amendment.
Business—
Operates 12 general department and apparel stores.

Salt Dome Oil

common shares ($1 par, Cana¬
being offered to residents of United
States and Canada by Toronto Mines Finance, Ltd. These
shares are part of a recent offering of an aggregate of
525,000 shares offered by the company in Canada to its
own shareholders at $5
(Canadian) per share. Under¬
writers—Toronto Mines- Finance, Ltd., 25 King Street,
West Toronto, is named underwriter. It is wholly owned
and controlled by its parent company, Ventures, Ltd.
Offering—Price is $5.10 (Canadian) per share, or the
United
States
equivalent.
For details see issue of
on

Bros., Inc., Detroit, Mich.

cirii

—

issue of April 4.

Giant Yellowknife Gold Mines,

Borg-Warner Corp
—...—Preferred
Capital Records, Inc...
—Common
Globe-Union, Inc.-————.
—Common]
Greenfield Tap & Die Corp.-.-—.
—Common
Jessop Steel Co.————————Preferred
Kansas City Fire & Marine Ins. Co.——Common
Keyes Fibre Co.
—^-Bonds^
Queen Anne Candy Co.—
—Common
Weeden Co

unsubscribed stock at public or private sale at $20
per share.
For details see issue of Feb. 28.
Davidson

American Machine & Foundry

$1),
and
Underwriters—

Buckley Brothers, Mercier, McDowell & Dolphyn, Ames,
Emerich & Co., Inc., and Dempsey & Co.
OfferingPrice to public by amendment.
Proceeds—To pay note
to Associates Discount Corp.; to retire 1,967 shares of
cumulative 6% preferred stock ($100 par), balance to
finance increased inventories and payrolls.
For details
see

American Acoustics Inc.—.Preferred and Common

March 27 filed 450,000 shares of common stock (par
of which 300,000 shares are being sold by company

any

•

April 16, 1946

Gerity-Michigan Die Casting Co., Detroit (4/15)

150,000 shares by certain stockholders.

——Common

Fibres Inc

Red

April 8 (letter of notification) 203 shares of common
stock (par $20).. Under writer-^It is proposed to pffer
the shares through, Paine, Webber, Jackson and Curtis

(4/18)

writers—Cruttenden

.Common|

McGraw (F. H.) & Co.--—--Preferred arid Common
Public Service Co. of Ind., Inc.—-^-Preferred

Curtis Companies Inc., Clinton, Iowa

F|f|

;
.i

Fleming-Hall Tobacco Co., Inc., New York, N.Y.

•

Crowell-Collier Publishing Co., N. Y. (4/17)
Shares are being

Laboratories, Inc., Indianapolis, Ind.

April

William S. Anderson, William H. Bresnahan,
Loewi and Hamilton Pell filed voting trust
certificates covering 149,977 shares. Common stock (par
gl).
Purpose—Common stock voting trust agreement
es extended and modified March 15,
1946. Agreement
is for 10 years.
Expiring March 15, 1956.
April 10
j Victor

of Baltimore

Electronic

Shoe Machnery Corp., Dover, Del.

Compo

•

April 5 (letter of notification) common stock (par $1),
of which $50,000 is to be offered,
bffering—At the
market estimated at $6 per share.
There Will be no
underwriters. The stock is being offered for the account

For details se£ issue, of Jan. 24.
b'iU /tU-

- -

v.
\

vHaitej | lines, Inc., New;York (4/12)

April
eecoiint of Caiyl H. Sayrei
v

■ warrants
Price to pubUc at mar^

.No underwriting.; THe £ Warrants Will be sold at
market in the open market.
Proceeds to selLiy the
issuer has no interest in the offering. ^ ^
as x?-- ■'u.trfy. x.
:i'
(Contiinued on page 1974)

ket.
.

THE COMMERCIAL & FINANCIAL

1974
■jji'nili ihii'li

CHRONICLE

Thursday, April 11, i946

ti#

Securities

■i

H
Harrisburg

fej>

ft
»
?§

f»

ment.

For details

§
hi

i*.\
*y

see

i
I
I
$y
hhk

$
m

by amendment.
Proceeds—-$825,000 to
regulation V-Loan; balance for additions.
For
details see issue of April 4.
retire

Hallgarten & Co. and R. W. Pressprich & Co.
Offering
—Price to public by amendment.
For details see issue
of April 4.

Offering—Price to public by amendment,

see

issue of March 7.

Kansas City

sold by Etidicott Co.* inc., a stockholder*
Underwriters—E. W. Clucas. & Co., and H. M. Byllesby
& Co., Inc.
For details see issue of March 28. Offering
•

Hoffman Radio Corp., Los Angeles, Calif. (4/18)

March 30 filed 120,000 Shares common stock (par $1).
Underwriters—CohU & Torrey. Offering—Price to pub¬
lic $0 per share.
Proceeds—$97,125 to redeem preferred
stock and approximately $400,000 to retire short-term

•

balance

for

working

For

capital.

April 4.

Hudson Valley Gas Corp.

(4/12)

writer—Bioren & Co.

Price, stock $25 per share; bonds;
Proceeds—Securities being sold by stockholders.

par.

•

I
&

Hydraulic Machinery, Inc., Dearborn, Mich.
April 5 (letter Of notification) 136,000 shares common
(par $1). Ptite to public $2.20 a share. Underwriters—
ttftte U
& Co., both of Detroit
Proceeds—Purchase Of equipment and for working
capi¬
tal.
•

Huyler's, New York (4/13)

change at .approximately $11 per share (closing price
April 3). Purpose—Stock is being sold by Munson Line,
> '

March 29 filed 125,000 shares

stock

common

(par $1),

Underwriters—Herrick, Waddell

& Co., Inc., Offeringamendment.
Proceeds—Working

to public by
capital for expanding operations and to retire present
bank borrowing.
Company intends to advance to Air
King Products Co., Inc., a subsidiary recently
acquired,
$500,000 to equip new plants and for working
capital,
For details see issue of
April 4.

and

Co., Decatur, III.
$45,000,000 first mortgage bonds due

Se¬

Indianapolis (Ind.) Power & Light Co.
March 9 filed 120,000 shares of
4% cumulative preferred
stock; (par $100).
Underwriters—Lehman Brothers,
Goldman, Sachs & Co. and The First Boston Corp. Of*
fer^^ompany is Offering to holders of 140,591 shared
of 5y4% cumulative
preferred stock the opportunity to
exchange their shares for new 4%
preferred, the ex*
Change carrying a cash adjustment.
Unexchanged pre*
ferred will be sold to
Underwriters.
For details see
issue Of March 14.

Indianapolis (Ind.) Power

& Light Co.

March 8 filed 142,967 shares of
common stock

(no par).
Underwriters—Lehman Brothers,
Goldman, Sachs & Co.

and The First Boston
Corp. Offering—Company is Of*
fering the stock to holders of common stock at a
price
to be filed by amendment at rate
of one share of new
common

for each five shares held.

For details

■/:

130,000 shares of

Common shares

preferred.

to public
issue of March 7.

$25
,

common

reserved for conversion

Underwriters—Richard

Offering—Price
see

are

increase

issue of April 4r

capital and sur¬
^-L*vr ;

per

share.

Buck

For

Co.

details

•

■;,.

-j.

•

issue

NationalAutomotive fibresrlnc*,ttetroit (4/15)
178,000 shares common Stock (par $1)
150,000 shares being sold by company and
28,000 shares by California Cotton Mills Co., a stock¬
holder. Underwriters—Reynolds & Co.
Offering—Price
to public by amendment.
Proceeds—Repayment of bank
which

loans, $1,000,000; new plant in northern Ohio, $670,000*
Mlatice for maehinury, and equipment ht other plants;
For details see issue of'April 4.
n
•
National

Co., Inc., Maiden, Mass. ?;;

March 20 filed 200,000 shares of common stock (par
$1).
of which company is selling 50,000 shares and certain

stockholders

Goodwin, Inc.

•

150,000 shares.
Underwriters—Bond &
Offering—Price to public $6 per sham.
issue of March 28.

see

National

Keyes Fibre Co.* Portland, MOs (4/16)
March 28 filed $2,800,000 first mortgage bonds due April
Interest rate by amendment.

Calif.

March 30 filed

(4/13)

March 25 filed 148,448 shares of common stock
(par $1);
Shafesare being sold by certain stockholders, under*
Wttteis^AliSOn; & Co., Detroit,
public by amendment, For details see iSstie Of March 28.

Freight Corp*,

Los Angeles;

registration statement lor 500,000

com¬

shares (par $1).
Underwriters—Bond & Goodwin;
Offering—Price to public $5 per share. Proceeds-4

mon

Inc.

Working capital to be used for general purposes, prinT
cipally to finance acquisition of new planes. For details
see issue of April 4.

Underwriters-

Paine, Webber, Jackson & Curtis,
H. Bollins & Sons, Inc., and H. M.
Ptiyson & Co. Ofteritiir*--Pribe to public by amendment.
Proceeds—To redeem $1,800,000 4y4% first mortgage
sinking fund; cost of construction and equipment of the
Hammond plant.
For details see issue of April 4.
Kingston Products Corp., Kokomo, Ind.

Skyway
(4/18) ;

60,000 shares of' $1.20 cumulative con¬
vertible preferred stock ($22.50 par),
Underwriters—
Straus & Blosser, Chicago.
Offering—Price to public
is $25 per share.
For details see issue of March '7.

1, 1966.

see

Industries, Inc., Oklahoma City

Nations Wide Securities Co;.v Inc., N. Y*

(4/18)

March 30 filed 300,000 shares of capital stock (par $1).
Distribtitorr—Calvin Bullock. Offering*-At market. Pro*
ceeds—For investment.

;

-..J.

NeW Haveri tCohn*) Clotk-&; Watch Cd. (4/17)

March 29 filed

62,500 shares of 41/i% cnmulative

con*

vertible preferred stock-(par $20). Underwriters—Reyr
nolds & Co.s Offering—Price to public by amendment.

Proceeds—To repay

at $481,360 bank loan; to redeem

^•376'
for

purchase of Aew machinery.:. For details

see

issue

of April 4;'

tortgines-Wittnauer WatchCo., Inc., N.Y.{4/17)
March 29 filed 125,000 shares of tommoh
Stockfpar $ 1) *

being sold by Ira Guildenr teseaireh;. develop*
manufacturing consultant of company. Under*
writers—Paul H. Davis & Co., A. C.
Allyn & Co., Inc.*
and Emanuel & Co. Offering—Price to
public by amend¬
ment.
For details see issue of April 4;
"
are

ment and

March 29 filed 75,000 shares of

Underwriters—Offering

not

<4/L7)s«

each

five

held

(par; $2)0
Offering-^

$15 per share.
Management
expects to offer at $15 per share to key personnel, other
than the President, such shares of
present offering as
are not subscribed for.
Proceeds—Proceeds to pay bank
loans $581,000; to reimburse
treasury for addition to
Toledo plant $125,000; to discharge other indebtedness
$150,000 and for working capital $244,000. For details
issue of April 4.
McGraw

(F. H.)

& Co., Hartford, Conn.

(4/13)

March 25 filed 36,000 shares-of
$1.50 preferred stock (no
par) and 100,000 shares of common (par 10 cents). Un¬
derwriters—Granbery, Marache & Lord and Bear,
Stearns & Co.
Offering—Prices to public by amend¬
ment.
For details see issue of March 28.

Mpding Drug Stores Co., Houston, Tex. (4/18)
March 30 filed $500,000 5%
sinking fund debentures;
60,000 totet of 55*^nt cumulative
preferred stock • ($5
par) and 40,000 shares of COmhton ($1 par)r tjhderwrit-

ers*^lex«?Br6wn ;&• Sons* •Rauscheri :Pieixe;& Co.,, Inc..
and
GL ft.

100

and

alker & Co.

prices

Offering—Price of debentures

preferred

and common stocks by
Proceeds—Purchase of 3,587 shares of com¬
mon stock of
Mading's Drug Stores, Inc.; general cor¬
porate purpose, including the
opening and acquisition Of
additional stores. For details see
issuevof April :4. ^ -

amendment.

Mission Appliance
Corp., Los Angeles, Calif. Feb. 26 filed 133,000 shares of
common stock
(par $5),
of which 102,150 shares are
being Sold by company and
30,850 by certain stockholders. Underwriters—Lester
&
Co., Los Angeles, Calif. Offering—Price to
public will
be $8.25 per share.
For details see issue of March 7.
*

•

.V-• :vr

f;.r

£*>.•; /

Chemical

Co., St. Louis, Mo.
March 15 filed 316,967 shares Of
$3.25 cumulative pre¬
ference stock, series A (no
par) convertible into common
before June l*
^956.' ;UMehyritfef&£!^
Co.
Offering*^hares sm:fe ;6ffeted^bdlder^/of

Common

Stock of record

April 8

basis of oaeshareof preference

for each four shares of
common held "at

Rights will expire 3 p.m., April
24,
of March 21.
>
; ;
- '
1

v..

•'

••

•

$101.50

share.

1946.| For details

Tifa & Rubber Cd.

(Conn.)

March 21 filed $1,444,500 -convertible, -debentures due
April- 15, 1956.
Interest irate by hmendrneht.
UnderWriter^—Carl M. L6eb, fihoadefc
Co; ;pffeHn^r-Common stockholders given right to subscribe for new de¬
bentures

rate

common

one; $500 debenture' for every' 70
held.; : Price by amendment,

stock

issue of March 28.

see

icq

common stock

underwritten.

Norwalk

For details

Company is offering the shares to holders of common,
stock of record April
22, at the rate of one share for

issue

;

March 27 filed

filed

Monsanto

Jefferson-Travis Corp., New
York, N. Y.

(par 25c).,

issue

Feb. 27 filed 30,000 shares of
$1.25 cumulative convert¬
ible preferred (no par) and
of

(4/12)
Feb.

•

see

.of March 14.
v

see

public by amendment. For , details

For details

1976

$9,000,000 sinking fund debentures due 1966.

curities will be offered for
sale at competitive bidding
with price and interest rates to be
named by the sue-,
cessful bidder.
Underwriters—Names by amendment.
Probable bidders include
Halsey, Stuart & Co., Inc.,
and The First Boston
Corp.
For details see issue of
March 7.

Proceeds—To

For details

Kerr-McGee Oil

see

Illinois Power
Feb. 27 filed

by amendment.
Subscription rights
Unsubscribed shares will be sold to

Lynch Corporation, Anderson, Inc.

(4/24);;;:; ;,

Price

plus.

■

Hytron Radio & Electronics Corp., Salem, Mass.
/

underwriters.

April 8 (letter of notification) 6,000 shares of common'
stock (par $1)«? Underwriters—None. Securities Will be
Offered for cash at market upon the New York Stock Ex*

Inc.

(4/16)

Coffin & Btirr, Inc.;
Estabrook & Co., B.

April 3 (letter Of notification) 3,000 shares of common
stock (par $10)
and 23,400 4% first mortgage bonds
due serially April 1 and Ocfc 1 to
Del#"I, X$65.; Uhderi

Price

expire May 24.
,

issue of March 28.

borrowings;

held.

mon

Co., San Francisco, Calif.
March 20 filed 24,000 shares of preferred
stock, 5M>%
cumulative (par $25).
Underwriters—First California
Co. Offering—Price to public $25 per share.
For details

batik

Offering

being offered to common stockholders of'record May 11
at rate of bile Share of new stock-for euch shate of com¬

Shares are being

Fire & Mar. Ins. Co.

(Mo.)

March 28 filed 50,000 shares of common stock (par $10).
Underwriters—First Boston Corp. Offering—Shares are

Hearti Department Stores, Inc., New York, n. y.
March 21 filed 100,000 shares of common stock ($5 par)*

—Price to ptiblic by amendment.

600 additional shares of common reserved against war*
rants.
Underwriters—Eastman, Dillon & Co. •

March

27 filed 51,400 shares common stock (par $1).
Shares being sold by Adams Express Co. (35,600) and
American International Corp. (15,800).
Underwriters—

(4/24)

stock, series A
(par $1) with common stock purchase warrants attached
and 150,000 shares of common (10c par).
Dividend rate
on preferred by amendment.
The statement covers 200 *

of Feb. 7.

Joy Manufacturing Co., Pittsburgh (4/15)

issue of March 28.

of America, N. Y.

Jan. 29 filed 100,000 shares of preference

—Price

($2 par).
Shares are being sold by certain stockholders.
Under¬
writers—Laird, Bissell & Meeds have withdrawn as

details see issue of

i|?

to public

Price

Feb. 27 filed 215,000 shares of common stock

see

Morris Plan Corp*

(4/16)

60,000 shares of cumulative convertible
preferred stock (par $25). .Dividend rate by amend¬
ment.
Underwriters—Paul H. Davis & Co.
Offering-

Hendry (C. J.)

SINCE PREVIOUS ISSUE

indicates additions

Jessop Steel Co., Washington, Pa.

Hayefe Manufacturing Corp., Gr. Rapids, Mich.

underwriters.

March 28 filed

Gas Co.

1, 1971. Bonds will be offered for sale at competitive
bidding and interest rate filed by amendment. Under¬
writers—By amendment.
Probable
bidders
include
Halsey, Stuart & Co., Inc.; W. C. Langley & Co.; H&triman
Ripley & Co.; Mellon Securities Corp.; Kidder,
Peabody & Co.
Offering—Price to public by amend¬

details

(Pa.)

March 19 filed $2,200,000 first mortgage bonds due

•

UiJI

t.„

(Continued from page 1973)

\&}

ill.

iy'&J'i

see

Ohio Public Service Co.* Cleveland, O. (4/18)
30 filed $32,000,000 first mortgage bonds, due

March

1976; $5,500,000 serial notes and 156,300 shares of cum;
tilative. preferred,stock (par $100).
Interest rate on the
bonds and notes and dividend rate on the preferred
stock by amendment.
Underwriters—To be filed by
amendment. Probable bidders Include Mellon Securities
Corp.; Halsey, Stuart & Co., Inc. (bonds only); the First
Boston Corp., Offering—Prices to public by amendment-.
•

Proceeds—Redemption

and payment of bonds, notes
For details see issue of April 4.

preferred stock.

and

•
Oil Prospects, Inc.* New Bedford, Mass.
April 8, (letter of notification) 59,250 shares capital
stock (par $5). Underwriter—Arthur G.. Wadswoi'th &
Co., New Bedford. Price to public $5 per share. Proceeds
—To defray expenses in connection with acquisition of
properties and to purchase non-producing mineral rights

under

lands that

are

now

under

effective oil

and gas

leases.

Palmetex Corp., Pinellas Park, Fla.

March 22. filed .250,000 shares common stock

(par-

$1)-

Underwriter-^-Floyd D. Cerf Co., inc., Chicago. Offering
iS $3.25 peir shate.
Proceeds^urchase
6t plhht occupied uiider
lease, iieW:diy^;"Wpfking capi¬
tal, etc. ;;

Wm
1, 1946.

-•

"-"v : ; '

•••"

•

:
^ serihl debehteh^^ed
Interest* rate by amendment; >;Undfel*writei*s--

Kidder, Peabody & Co„. Merrill Lynch, Pierce, Fenner
& Beane," and
Halsey, Stuart & Co., Inc. * Offering
;Price to public by amendment; - Proceeds—To redeem
following bonds; $12,000,000 first mortgage and; first lien
3%
'bonds; 'series B, at 104; $8,250,000 first mortgage and
first lien 3% bonds, series C, at 103Ys, and $10,000,0u
first mortgage and" first lien 2y4% bonds; series D, at
103^4.
A portion will be used to prepay -promisso y
notes and balance added to
general funds and be avail¬
able for general corporate
purposes, possibly inclucn s
payment of part of the cost hf; construction work no
authorized.
an

The construction program in*. 1946
of approximately $9,000,000.

invoi

expenditure

Paulsboro (N. J.) Manufacturing
14/17)
March 20 filed 9,880 shares 6% cumulative
Pre.feror^
(par $100); 31,000 common stock.purchase warrants anu

163

Volume

of common, issuable upon the exercise of
warrants.Underwriters—Butcher & Sherrerd, Phil¬
adelphia. Offering—1,886 shares of 6% cumulative pre¬
ferred are. ^offered in exchange (one new share for 10
old shares) for shares of 4% preference stock ($10 par),
together with all dividends accrued thereon.
Exchange
offer is conditioned on purchase of remaining 8,000
shares of 6% cumulative preferred and of the 31,000
common stock purchase warrants by underwriter. Pro¬
ceeds—Purchase or-construction of a plant and nec¬
oi

000 shares

the

machinery land equipment.

essary

redeem

each bidder.

Feb. 8 filed $23,500,000

Peerless Casualty

•

Co;* Keene, N. H.

March 14.

Pennsylvania Electric Co., Johnstown, Pa.

first mortgage bonds, due
1976, and 101,000 shares of cumulative preferred stock,
series C, par $100. Securities will be sold at competitive
•bidding, and interest and dividend rates will be filed
by amendment/
Underwriters—By amendment. Proba¬
ble bidders include Halsey, Stuart & Co., Inc. (bonds
only); Smith, Barney & Co. (preferred only); Kuhn,
Loeb & Co., and Lehman Brothers (jointly).
Offering
—Prices to public by amendment.
For details see issue

(4/16)

Queen Anne Candy Co., Hammond, lnd.

(par $1).
Under¬
writers—Link, Gorman & Co., Inc., Brailsford & Co.,
Shillinglaw, Bolger & Co., Kalman & Co., Inc., Straus
& Blosser, Herrick, Waddell & Co., Sills, Minton & Co.,
0. H. Wibbing & Co., Mercier, McDowell & Dolphyn,
Berwyn T. Moore & Co., Inc., and Irving J. Rice & Co.
Offering—Price to public $5,125 per share.
For details
see issue of
April 4.
Red

(4/15)

Top Brewing Co., Cincinnati, Ohio.

March 26 filed

150,000 shares of class A common stock
Shares are being sold by certain stockholders.
Underwriters—Westheimer & Co., Cruttenden & Co.,
A. G. Edwards & Sons, Loewi & Co., Stein Bros. &
Boyce, the Ohio Company, and Piper, Jaffray & Hopwood.
Offering—Price to public $10.50 per share.
For
(par $1).

details

see

issue of March 28.

(4/15)

Tampa, Fla.

March 27 filed

of $1 cumulative preferred
ahd. 26,799 shares of common stock (no
par). ITnderwriters—Morgan Stanley & Co., Coggeshall
& Hicks, G. H. Walker & Co., White, Weld & Co. Offer¬
ing—Holders of outstanding 100,000 shares of $1.40
cumulative preferred class A (par $25) of record April 3
are offered the privilege to exchange 80% of their hold¬
ings for the $1 cumulative preferred stock on a share
for share basis, plus a cash adjustment.
Exchange priv¬
ilege will expire April 15. (Unexchanged shares will
be ,sold to underwriters at $28 per share).
Common
stockholders will be given right to subscribe to addition¬
al common shares on basis of one additional share for
each five shares of common held of record April 3, 1946
March 14 filed 80,000 shares

Shares are

stock (par $25)

—Not

at $30 per share.
Perfex

Corp., Milwaukee, Wis.

filed 7,500

stock is

mon

basis of
held.

one

being offered to common stockholders on
share of new common for each five shares

Price

by amendment.
Unsubscribed common
shares and preferred stock will be publicly offered by
underwriters. For details see issue of March 28.

10,000 shares common stock (par $10).
being offered by the company. Underwriters
Offering—Company is offering

to holders of

for each two

share.

Proceeds—To

Rio Grande

common

shares of

the

April, 1956.

amendment.
Proceeds—Company plans to use its
proceeds for the payment of $600,000 bank

share of the

loans, balance for working funds.
of April 4.
*

For details see issue

300,000 shares of common stock ($1 par).
Underwriters—Not underwritten.
Company has granted

at 30 cents per share

of Feb.

per

•

Management,

Property

March 28,

Inc.,

Baltimore

(letter of notification) on behalf of the Tus-

cany-Lombardy Corporation; 170,000 certificates of par¬
ticipation in mortgage to be assigned to Property Man¬
agement, Inc., by Certificate Holders Corporation.

Tus-

cany-Lombardy Corporation will pay par for $16,000,
par value of certificates likely to be acquired under

Feb. 20, 1946, to Morgan U.
purchase 500,000 treasury shares

exclusive option dated

Feb. 18 filed 150,000 shares of common stock (par $1).
Underwriters—Hayden, Stone & Co. Offering—Price to
public will be filed by amendment. For details see issue

20.

Kemerer of Toronto to

and 500,000 treasury shares at 40 cents

share, payable in Canadian exchange.

Mr. Kemerer

haS^assigned to Mark Daniels, 371 Bay Street, Toronto,
in consideration of $1, the former's right and option to
purchase 300,000 of the 500,000 shares optioned to Mr.
Kemerer at 30 cents per share.
Mr. Daniels plans to
market the shares optioned to him through the medium
of a registered broker or brokers in the United States.
Offering—Price to public is 40 cents per share, U. S.
funds.
Proceeds—Proceeds will be applied to develop¬
For details see issue of April 4.

cash offer in event extension is consummated.

ment

•

(Mo.) Light & Power Co.
fiied $3,750,000 first mortgage bonds due April
1, 1976. Bonds will be sold at competitive bidding with
successful bidder naming interest rate.
Underwriters—
Names by amendment. Probable bidders include White,
Weld & Co.: Halsey, Stuart & Co., Inc.; Harris, Hall &
Co. (Inc.); Glore, Forgan & Co., and Harriman, Ripley
& Co. (jointly). Offering—Price to public by amendment.

Public

Flyers, Inc., N. Y. (4/23)
April 4 filed 200,000 shares of common stock (par $1).
Underwriters—Bond & Goodwin, Inc.
Offering—Price
to

public $3 per share.
Proceeds—Payment of notes,
purchase of flight equipment, additional hangar facili¬

ties, improvement of airport property and other related
uses.
Business—Present activity, operating a flying
school and acting as sales dealer for the sale of aircraft.
Proposes to enter the field of transportation.
Public Service Co. of Ind., Inc. (4/13)
March 25 filed 150,000 shares "of cumulative • Preferred,
stock (pair $100) .: Dividend rate by amendment* Under¬
writers—Names.: by amendment.
Probable bidders in¬
clude Kuhn, Loeb & Co; and Harriman
Ripley &. Co.
(jointly) * Glore, FQrgaji & Co.; the* First Boston. Corp.
Offering—Company proposes to issue the 150,000 shares
of new
preferred for purpose of refinancing at a lower
dividend rate the 148,186; outstanding shares of old -pre¬
ferred 5 % cumulative series A.
Exchange will be on a
snare for share basis with cash adjustment.' For details
see issue of March'
28.
'
"

Public Service Co. of New Hampshire

March
with

filed

102,000 shares of preferred stock

($100

?*ock is to he offered at competitive bidding,
dividend

writers—By

rate

supplied

amendment.

Under¬

bidders

include

Probable

amendment.

£"nn, Loeb & Co., Harriman, Ripley & Co. and Smith,
garney & Co. (jointly); Kidder, Peabody & Co. and
Blyth & Co., Inc.
(jointly); Coffin & Burr and the First
Boston
ottered

Corp.
to

(jointly).

holders

p5euerre.^ stock
asn

adjustment.

Offering—Stock will first be
company's $6 and $5 dividend

share for share basis, with

For details

Public Service

Co.

r^ch 29.tiled 500,000
ir,n?ervriters—Names
elude

see

New

issue of March 7.

Hampshire

(4/17)

shares of common stock (par $10).
by amendment. Probable bidders
Kuhn, Loeb & Co.; Harriman, Ripley & Co., and

Segal Lock & Hardware Co.,

work, etc.

St.

Joseph

March 22

For details see

issue of March 28.

Salt Dome Oil Corp.,
March 28 filed certificates

(4/16)

Houston, Tex.

of interest for 800,000 certifi¬

royalty in oil, gas and surplus. Under¬
writers—Cohu & Torrey, New York, and Yarnall & Co.,
cates in overriding

Philadelphia.- Offering—Company is

offering the cer¬

tificates of interest to stockholders on basis

of one share

interest represented thereby for each share of common
stock held at 58 cents per share.
Proceeds—Exploring
and developing.
For details see issue of April 4.
Samson United

Corp., Rochester, N. Y.

March 15 filed 125,000

shares of cumulative convertible

preferred stock (par $8) and 166,666 shares of common
stock (par $1).
Dividend rate on preferred by amend¬
ment.
Common shares which constitute 51.4% of the
outstanding are being sold by Clark-Babbitt
Inc.
Underwriters—Burr & Co., Inc., heads

stock, 7% preferred stock and $2.50 cumulative
preferred stock are given right to subscribe to new
common shares at rate of one
share of common for
each two shares of any such stock held. Price by amend¬
ment.
Proceeds—Purchase of additional machinery and
common

the under¬
and com¬

March 21.

(4/17)
March 29 filed 53,248 shares of cumulative preferred
stock and 1,214,000 shares common stock (par $5). Com¬
mon stock is being sold by American Gas & Electric Co.
(parent). Underwriters—By amendment. Probable bid¬
ders include $mith, Barney & Co.; Mellon Securities
Corp.; Merrill,: Lynch, Pierce, Fenner & Beane, and Kid¬
der, Peabody1 & Co.,
(jointly).- Offering—Price by
amendment/ Proceeds—Net

Scranton, Pa.

proceeds from sale of pre¬

ferred, together with treasury

present facilities, etc.

equipment for modernization of
For details see issue of April 4. >;
Selected Industries, Inc.,

■

(4/18)

N. Y.

April 1, 1961.
Underwriters—Union Se¬
curities Corp. Offering—Price to public by amendment.
Proceeds—To pay $6,900,000 bank loans.
For details
see issue of April 4.
"r ) ''-f
$6,900,000 debentures due

Interest rate by

amendment.

Sharon Steel Corp.,

(4/21)

Sharon, Pa.

Shell Union Oil Corp.,

N. Y.

(4/15)

$125,000,000 25-year debentures

March 27 filed

due April

Interest rate by amendment.
UnderwritersStanley & Co.
Offering—Price to public by

1, 1971.
Morgan

Proceeds—To pay $5,835,000

serial notes,

15, 1947-53; $66,155,000 2:%% debentures, due
July 1, 1954, and $13,071,000 2%% sinking fund deben¬
due Jan.

tures, due Jan. 15, 1961.
Remainder
poses.
For details see issue of April

for corporate pur¬
4.

"
stock (no pir).
Underwriters—
Offering—Price to the public base$

Sinclair Oil Corp., N. Y.

150,000 shares of common
being sold by H. F. Sinclair,

Dec. 26 filed

are

Kuhn, Loeb & Co.
on market.
For details see issue of April 4.
Sonotone Corp.,

Elmsford, N. Y.

(4/13)

shares $1.25 cumulative convertible
preferred stock, series A (par $20). Underwriters—Van
Alstyne, Noel & Co.
Offering—Price to public is $25
per share. For details see issue of March 28.
March 25 filed 60,000

•

Spacarb Inc., New York

April 1 (letter of notification) 88,025 common shares
(par $2.50) and 12,500 warrants for purchase of 12,500
common shares.
Price, common, $3 per share; warrants,
1 cent.
Stockholders will vote April 18 on increasing
capital from 6,000 shares (par $50) to
(par $2.50) and issuing 20 new shares

1,000,000 shares
(par $2.50) for

Stockholders will be given right
shares for each 20 shares held at
.$3 per share. Shares not subscribed for will be offered
to other parties at $3 per share.
If new shares are
subscribed for total outstanding will be 158,445 shares.
Proceeds will be used for purchase of vending machines,
each $50 par share.
to purchase IV4 new

working capital, etc.
•

Standard Steel

Spring Co., Corapolis, Pa.

(4/29)'

April 10 filed 100,000 shares of convertible preferred stock
(par $50). Dividend rate by amendment. Underwriters
—Goldman, Sachs and Co. Offering—The price to pub¬
lic by amendment. Proceeds—Principally for expanding

existing facilities for manufacture of bumpers

for pas¬

automobiles. Company expects to purchase from
surplus war plant located in
Newton Falls, Ohio, for. $638,000, and new equipment in
the plant for' $47,000. It is estimated that in addition to
$150,000 for repairs, the additional cast of equipping the
plant will be around $2,750,000: It is expected the new
senger
war

assets administration a

plant will commence operations some time in the late
fall.
The company also plans other; additions .costing
$800,000 any portion of proceeds not used in plant expan¬
sion will be added to working capital. Business—Bump¬
flat leaf springs, and universal joints and assemblies.
Principally for sale to the automobile, truck and farm

ers,

'equipment industries.

-r:'

Industries,

writing group. Offering—Prices of preferred
mon by amendment.
For details see issue of
Scranton Electric Co.,

Inc., N. Y. (4/18)

738,950 shares of common (par $1). Un¬
derwriters—Floyd D. Cerf & Co.
Offering—Holders of
March 30 filed

(4/15)

Rockridge Gold Mines Ltd., Tor., Can.

14.

amendment.

(4/21)

Hatboro, Pa.

April 2 filed 283,790 shares of common stock (par $1).
Company is offering 175,000 shares and Stroud & Co.
Inc. is offering 108,790 shares which it owns.
Under¬
writers—Stroud & Co. Inc.
Offering—Price to public
by

only); Mor¬

Houston, Texas

March 27 filed

Piper Aircraft Corp., Lock Haven, Pa.

Halsey, Stuart & Co., Inc. (bonds

Stanley & Co.; Kuhn, Loeb & Co., Lee Higginson
Corp. and Smith, Barney & Co. (jointly); Mellon Securi¬
ties Corp. Offering—Bonds and preferred stock will be
sold at competitive bidding. For details see issue of Feb.
gan

public by amendment. Proceeds—To redemption of out¬
standing convertible $5 preferred stock. For details see
issue of April 4.
(.

2,080,376 shares of common stock, (par $1). Purpose-—
establish voting trust.
The agreement to expire

Roberts & Mander Corp.,

March

capital and surplus.

April 10, Ralph B. Lloyd, Paul O. Koester and Joseph M.
"Jackson, voting trustees, filed voting trust certificates
for

first mortgage bonds, due

1976, and 100,000 shares of cumulative preferred
stock (par $100).
Interest and dividend rates by amend¬
ment. Underwriters—By amendment.
Probable bidders

April 2 filed 150,000 shares common (no par). Under¬
writers— Mellon Securities Corp.
Off ering — Price to

held at $15 per

April 4.

Valley Gas Co.,

Wilkes-

Co.,

Water

15,

stock at rate of one

common

increase

For details all issue of

•

Brook

Barre, Pa.

underwritten.

new common

For details see issue of March 21.

shares 4%% cumulative preferred
stock (par $100)
and 26,164 shares of common stock
($4 par). Underwriters—Wisconsin Co. Offering—Com¬

March 20

Scranton-Spring

March 30 filed

Republic Indemnity Co. of Amer., Tucson, Ariz.

Peninsular. Telephone Co.,

Common shares are being

include

filed $23,500,000

of March 28.-

and preferred»are

March 28 filed 108,000 shares of common stock
Shares ^re" being sold by certain stockholders.

50,000 shares-of common stock (par $5).
Underwriters—Herrick, Waddell & Co., Inc., New York.
Offering—Common stockholders given right to subscribe
for new shares in ratio, of 5 additional shares for each
11 shares held-, at $14 per share.
For details see issue of

common

117,404 shares of old preferred
and serial notes and to provide funds for construction
and extension., For details see issue of April 4.

March 8 filed

March

Proceeds—New

being issued to retire

For details see issue

April 4.

53,248 shares of $6 preferred at $110 per share.
sold by American Gas & Elec¬
tric Co. For details see issue of April 4.

Smith,! Barney & Co. (jointly); Kidder, Peabody & Co.
and
Blyth
&
Co.," (jointly);
The
First - Boston
Corp, and Coffin & Burr (jointly).
Offering — Com¬
pany will sell at compettiive bidding, for an aggregate
price of $5,000,000, not exceeding 500,000 shares of com¬
mon stock, the number of shares to be determined by

■of

1975

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4480

•

funds, will be used to

Steep Rock Iron Mines Ltd., Ont., Can. (4/15)
March 27 filed 500,000 shares of capital stock (par $1).
Underwriters—Otis & Co. Offering—Price to public by
amendment.

Proceeds—Net proceeds will be added to

general funds and will be available
corporate purposes. For details see issue of

the

for general
April 4.

Stromberg-Carlson Co., Rochester, N.
March 19 filed 67,731 shares
stock (par

of 4% convertible preferred

Corp. Offer¬
of common stock
subscribe to new

$50). Underwriter—First Boston

ing—Company is offering to holders
of record April 8 pro rata rights to

(Continued on page 1976)

,'■<( v'W

..'■■"v.;.

FINANCIAL CHRONICLE

THE COMMERCIAL &

1976

■ir

...«

Plh

Thursday, April 11, i94s

v-\ +*»

SheuritiesiNiw in Registration

y- - v/xw-^T ■ Vy

■

^//

- y

ty»■'•- •'••

• ■/

•

;

x-v

INDICATES ADDITIONS SINCE

•

PREVIOUS ISSUE

*i.,

?$■>

Union Wire Rope

(Continued from page 1975)

^expire April k.4 at 3 p.m. For details see issue of Mar. 21.
v*

Super-Cold Corp., Los Angeles, Calif.

sale

(4/17)

Offering—Price

United

public $6 per share. - Proceeds-^
Approximately $575,000 will be applied in payment of
existing current liabilities, including bank loans; $200,000
for purchase ox machinery and equipment, and remain¬
der for working capital.
For details see issue of April 4.

l;
I

Taca Airways, S. A., N. Y.

(4/18)

■%

\if'.

;No specification of the net proceeds
-For details see issue of April 4 *

Air

has beep *ma<let.

ii'A'""./i

*:'v

-vi»''

v-Tex.O-Kart Flour Mills Co.j Dallas

Sf-"

March

filed

stock (par $100).

(4/22)

v-"~

acquire business.

[wrltCns^Kidderj/ Peabody & Co. and Hauscher, Pierce
& Co., Inc.
Offering—Company is offering to holders
M 26,710 shares of 7 % preferred stock ah opportunity
%o exchange such stock for nety preferred on a share

/§'
V|.

?:i

for share

r|;

writers

basis, with an adjustment of dividends. Under¬
will purchase any unexchanged new preferred

'■■&>

plus

which

will

13,290 additional shares of new preferred
offered to public at a price to be filed

by amendment.

•Ci

Tucson

For details

(Ariz.)

see

issue of March 28.

Gas, El. Lt. & Pwr. Co.

147,000 shares common stock (no par).
Stock constitutes all of the outstanding common stock of
Tucson and is owned by Federal Light and Traction Co.
Underwriters—By amendment.. Probable bidders in¬

clude Harriman. Ripley & Co*; The First Boston Corp.,
and Blyth & Co., Inc. Offering—Federal will offer the

i
i

stock for sale at

competitive bidding and price to public

will be filed by amendment.

&
I?

filed

shares (par $1).

Co., Richmond, Va.

The

and

par).

Dividend

filed

130,000

(4/17)

filed

3,500 shares of

shares of preferred stock

(no

rate

New preferred will be issued in connection with

ex¬

change offer and company will ask for competitive bids
with respect to exchange plan and
purchase of the new
stock.
Purpose—To refinance old preferred stock at a
lower dividend rate.
For details see issue of April 4.

common

stock

Onfc

(4/17)

filed

$4,500,000 convertible debentures duo
May 1, 1976, arid 20,000 shares pi cumul^t^^onvertible
preferred stock (no par).
Interest and dividend rates
by amendment. Underwriters—Paine, Webber, Jackson
& Curtis and E. H. Rollins & Sons^ Inc.
OfferingPrice to public by amendment.
Proceeds—$4,590,000
to redeem first mortgage 4%. bonds due April
l, 1955;
$619,120 to restore working capital expended for re¬
demption of 6% preferred; $800,000 for improved foun¬
dry and finishing equipment; $220,000 for acquisition of
two warehouses; balance for working capital.
For de¬
tails see issue of April 4.

are

Universal-Cyclops Steel Corp., Bridgeville, Pa.
Feb.

(letter of

notification).

Shares are for account of certain stock¬
Underwriter—A. G. Becker & Co.

holders.

Weeden & Co., San

March 28 filed
Utah Power &

Light Co., Salt Lake City

stock

March 20 filed $32,000,000 first mortgage bonds due May

1, 1976.

$40

per

share.

ations.

Offering
public will be filed by amendment. For

common

(no par).

Proceeds—General funds for
see issue of April 4.

use

in oper¬

For details

Young Radiator Co., Racine, Wis.

issue of March 28.

see

Jan. 29 filed

100,000 shares of common stock (par $1)5
registered 40,000 shares of common for issuance upon

also

(4/17)

exercise of warrants.

Underwriters—Van Alstyne, Noel
Offering—Price to public $8.25 per share.
Of
40,000 warrants to purchase common stock at $8.25 per
share prior to Feb. 1, 1951, 20,000 were issue to stock¬
holders on recapitalization and 20,000 are being sold to
underwriters at: 10 cents per warrant share.
Offering
postponed indefinitely.
For details see issue of Feb. 7,

March 29 filed 80,000 shares cumulative
preferred stock,
$1 dividend convertible series ($15 par), and 80,000
shares common stock ($1 par). 'Underwriters—Bate-

man, Eichler & Co., Los Angeles.
Offering—Price to
public is $16,625 a share for preferred and $5.25 a share

the

and 1,501.6 shares

named.
Offering — Price of pre¬
ferred stock is $50 per share and of the common stock

Probable bidders include Halsey,

Utility Appliance Corp., Los Angeles

for

($50 par)

(4/16)

convertible preferred

Co., Inc., and The First Boston Corp.

—Price to the

details

Francisco, Calif.

10,000 shares 4%

Underwriters —None

Bonds will be sold at competitive bidding with

Stuart &

by amendment.
Underwriters—
By amendment.
Probable bidders include White, Weld
& Co., and Shields & Co.
(jointly); Dillon, Read & Co.
Inc.; Lehman Brothers, and Blyth & Co., Inc. Offering—

I'.

Walworth Co., N.

common

shares being offered

Ltd^^

fering—Price to public 30 cents per share, United States
For details see issue of -Feb. 21. r
/

interest rate to be filed by amendment. / Underwriters—

Union Electric Co. of Missouri

''''

GoM Mines)

funds/

are

Names by amendment.

March

common

1,000,000'shares of common stock (par $1)
Underwriters—J. J. Carrick, Ltd., Toronto, Canada.
Of¬

(4/17)

number

issue

issue of Aug. 2 1945

see

Feb. 13 filed

intermediate

For details

yank YeilowknilFe

owned / by Equitable. Securities
Corp., A. C. Allyn & Co., Inc., and Paul M. Davis of
Nashville, Tenn. Underwriters—Harriman Ripley & Co.,
Inc.
Offering—Price to/public by amendment.
For
details see issue of April 4.
outstanding

(4/17)

March 29 filed

New York.

For details see issue of April 4.

United Transit

see

(par $i_
Underwriters—Willis E. Burnside & c<T
Offering—Offering price to public 28 cents

United States funds.

March

details

arrangements
for the sale of this stock to the public.: Purpose—To

40,000 shares of cumulative preferred
Dividend rate by amendment. Under-

Und*/

Canadian).

Lavine, at the option of Whelan,
may be paid in shares of common stock'of United CigarWhelan at 3 stated /price, per share/ to be fixed- by
made

■"./'* ■'

Virginia Red Lake Mines, Ltd.

Agreement provides that $425,000 of agreed cash con¬

have

June 24 filed. 220,000 shares of capital stock

siderations to be paid to

Lavine

April 4.

March 14.

50,000

Messrs.

and Occidental
Stove Co»
additional working canitai'

Canada, is named underwriter.
lie is 50 cents per share.
For

Miami^Beach^ahd^Cor^l^able^. Flia.^. under th^tiam«a
of Diade 'Pham^iesVahctDade^ Ctit^Rat^pquor Stores.

Whelan.

and

Street; Toronto*
Offering—Price to pub9

1946, Arthur S. Lavine and Sam S. Lavine of Miami,
Fla., have agreed to sell to Whelan Drug Co., a wholly
owned subsidiary of United, the retail drug and liquor
store business heretofore conducted by them in Miami,

500,000 shares common- (par $5)/ ';UnderWriterii^Halligarten
Wferihg—Pi ice to public by Amendment; Proceeds—

tooling

Verity Porcupine Gold Mines, Ltd., Tor.,
Can

Cigar-Whelan Stores Corp., N. Y. (4/17)

filed

and

March 12 filed 250,000 shares of common stock.
writers—Mark Daniels & Co., 371 Bay

For details

$15.50 per share.

Gaffers & Sattler

For details see issue of

shares of common stock (par
30 cents).
Underwriters—No underwriting agreements
exist.
Offering—Under an agreement dated Feb. 1,
March

March 30 filed

•uV-

stockholders

additions

issue of Feb. 7.

see

March 29 filed 200,000 shares common stock (par $1).
Underwriters—Sutro & Co. and Van Alstyne, Noel & Co.

af;

assets

Corp., Kansas City, Mo.

42,000 shares capital stock (no par). Under¬
writers—P. W. Brooks & Co., Inc., New York.
Offering
—Company will offer the 42,000 shares for a period of
two weeks after the effective date of registration for
Feb. 4 filed

basis of one share of preferred for each
four shares of common held at $50 per share. > Rights

preferred

common.

Proceeds—Purchase of business and
.

Co.

■

(NOT YET IN REGISTRATION)
•

•

Aijrv Services, Inc., New York
April 1 company was reported planning sale of 150,000
shares of common stock
through B. G. Cantor & Co.
New York, as underwriter.
Price about $2 per share.
Company's headquarters will be located within
eight
miles of New York
City.
Principal business will be
student/training and charter service.
.

INDICATES ADDITIONS SINCE PREVIOUS ISSUE
•

Arkansas Power &

March

Light Co., Little Rock, Ark.

planned to issue 290,000
shares; common
$12.50) and $5,000,000 in
promissory notes, for purpose of paying current promis¬
sory notes and finance expansion program.
•

company
stock (par

Art-Craft Brier Pipe

<<•11

issue of

50,000 preferred shares (par $100). First series of new
preferred will consist of 40,000
shares, (dividend rate
no| to exceed 4y4%). Proceeds for working/capital.

Lehman Brothers and associates will be underwriters.

1* >'

1 !

'A,

*■

American Airlines, Inc., New
York, N. Y.

April 17 stockholders will vote
which

will

provide:

recapitalization plan
for raising of $80,000,000 this

(1)

8, company planning the sale of 100,000 shares
stock at $2.25 per share,
Proceeds for ex¬
pansion.
Underwriter—B. G. Cantor & Co., New York.
of

through sale of debentures and convertible pre¬
stock; (2) for authorization of 600,000 shares of
P«nfne£nd
^ $100^ ^ i0T 5 f0I> 1 Split-Up 0f
1,290,568 outstanding common shares.

•

common

/ft

Coast

Line

ferred stock" and the

new

preferred; stock, mortgage / bonds and serial notes
be solcL through" competitive Mddingr^' Approval of
stockholders and New York Public Service Commission
Probable bidders will include Halsey, Stuail
Co., Inc.'(bonds only), Mellon Securities Corp. ana
Harriman Ripley & Co.

necessary.

-•

new

5% existing preferred
designated "original pre¬
preferred would be designated

•

Caterpillar Tractor Co., Peoria, III.
March 29; company announced. it was negotiating with
underwriters for sale of $20,000,000 of securities, prob¬
ably in 10-year/debentures,: proceeds to be used to
'meet cost of proposed expansiOn program. .Blyth & Co.,
inc., probable underwriter.
^
/

"series preferred stock" and would be
issued as di¬
authorize.
In view of present market
condi¬

rectors

increasing

common

underwriters for preferred stock included
Morgan Stanley & Co.,
Inc.,JDrexel & Co., Mellon Securities Corp.,
Harris, Hall & Co. (Inc.), and Spencer Trask & Co.

C. McD. Davis, President, states that directors
of opinion that additional
capital stock should be

;

future provided certain
nego¬
tiations now being carried on with
respect to the financ¬
ing are concluded. ,
~ v
/; u

Wilmington,

Co.

Bangor & Aroostook RR., Bangor, Me.
16 stockholders will vot^^bn
authorizing new
mortgage.
Company contemplates * refinancing
onethird of outstanding funded debt
CDet. 31, 1945, $12,665,000) through sale of equal amount of bonds under new
mortgage, through competitive bidding.

would be sold at

Se^ic®

into

Corp.
April

corporation known as Central & South wesi
Sufficient number of shares of new company

not otherwise

competitive bidding to provide

supplied, to retire outstanding

stocks of Central and American.

Forgan & Co.; Lehman Brothers-Lazard Freres & c«).
(Joint); Smith Barney & Co.-Harriman, Ripley & V°:
(Joint); Blyth & Co., Inc., Stone & Webster Securities
Corp. and First Boston Corp. (Joint).

light to subscribe to

new

one

offer

common

stockholders

share for each five shares

•

;

City Investing Co., New York ?/

May 2 stockholders will vote

on splitting common shaies
6 for 1 and
approving $5,000,000 of debentures to Pr' *
„vide additional funds. Probablq underwriter, The r i
.

'Boston
mv

'-d; V

•'

'-.i/

L*.-

fund^'
Prej^rre"
ylore,

Possible bidders:

Beneficial Industrial Loan
Corp.,. New York^

April 3 directors voted

Third amended plan filed with SEC in March provides
that company be merged with American Public

are

•

American Rolling Mill Co.,
Middletown, Ohio
April 2 company is contemplating redemption of
450,000
near

Del,

tions,

tunity offers.

from 1,000,000 shares to
2,000,000 shares. Actioh is being
taken to have stock available if and
when needed.
ComPany has no present plans to issue the stock.

preferred shares in

Central & Southwest Utilities Co.,

made available for debt retirement
if favorable oppor¬

•

American Brake Shoe
Co.f New York
April 23 stockholders will vote on

Union Gas Co.

RR.

for new, no par stock and the
would remain outstanding and

year

(N. Y.)

•

Atlantic

April 16 stockholders will vote on authorizing a total
of 1,350,000 (no par) common shares
and 150,000 pre¬
ferred shares (par $100).
Outstanding 823,427 common
shares (par $100)-would be
exchanged share for share

ferred
.

Brooklyn

Stockholders will vote May 7 on approving a plan to
refund $29,240,000 first mortgage/ 3%s and $11,850,009
4%, debentures.
Plan is; said to provide for $10,000,000
to

Co., Brooklyn, N; Y.

April

Alden's, Inc., Chicago, III.
May 14 stockholders will vote on
approving

•

reported

Corp.v

•■.

■

Number 4480

163

Volume

■

•

of common stock expected"
divestment by Continental
ras & Electric Co., parent pursuant to Utility Holding
Company Act.
Sale will be by public bidding.
Registration of 744,000 shares
week as a preliminary to

stockholders granted management's request to
system's properties said to be forerunner to
refund $304,240,000 callable debentures. Contemplated
new bonds, to be sold at competitive bidding, would
initially, it is said, involve $100,000,000. Morgan Stanley
& Co. probable underwriters.

•

..'

Co., Wilmington,

Del.

T; i;;

•

was

•

reported that

committee

May

■ft;

plans new financing,
Burr & Co. as under¬

company

Miller-Wohl

stock

and creation of

& Co.

Minneapolis-Honeywell Regulator Co.,

Min¬

the proceeds

series C at 107 % and 4% series D at 108, through a new
issue of convertible preference stock.
Registration state¬

capital.

shortly giving old preferred
stockholders right to.exchange their stock on share for
share basis with cash adjustment. Union Securities Corp.
probable underwriter.

Calif.

share in ratio of one new for each five shares
Sulzbacher, Gran¬

Mountain

Telephone & Telegraph

Co.,

Detroit, Mich.

Industrial Rayon Corp.,

authorized

issuance^when., itegded for,
Loeb & Co., Harrifnan,lRipley

be available for

Kuhn,
underwrote

\ v

(b) sufficient shares of new

common

*■"

■

common

stock out of the

Yer,

Peabody & Co* (Joint).
'

International Minerals & Chemicals

Corp.,

Chicago, III.

common

rights

Company has issued invitations on April 16 for the sale
$41,500,000 40-year bonds. Halsey, Stuart & Co., Inc.;
Smith, Barney & Co., and Kuhn, Loeb & Co. probable

approving sale of 145,is proposed. to give
purchase additional shares on
on

shares.

share for each five

common

shares held.

Northern Pacific Ry., St. Paul, Minn.
It

International Paper

reported April 10 that company has under con¬
the refunding of $55,000,000 collateral trust
4%% bonds due 1975 and the issuance of a hew series,
of collateral trust bonds.
Prospective bidder, Morgan
Stanley & Co.
was

sideration

Co., New York, N. Y.

Stockholders will be a&ked May 8 to authorize an issue
400,000 shares of a new class of preferred; which com¬
pany expects to offer, share for share for existing pre¬
ferred.
y
•

Jersey Central Power & Light Co., Asbury Park,
1

.-y*

■

/*•'''''

' '

'i---

■' ■!$■/

I'/'f "?•?> \

Jan. 19 company filed with New Jersey Board of Public

which will be replaced with lower dividend shares. New
stock will be sold at
competitive bidding. Probable
bidders include Merrill Lynch. Pierce, Fenner & Beane,
and

White, Weld & Co. (jointly);
The First Boston
Corp.

Glore, Forgan & Co.;

Kansas City Southern Ry., Kansas City, Mo.
14

stockholders

will

vote

refund

•

$14,000,000 Louisiana

5s.

;

Arkansas

Ry.

through B. G. Cantor & Co.

stock.

Proceeds for expansion, etc. Probable

bidders, jnclqde First Boston Corp.; Glore,-Forgan & Co.;
White, Weld & Ca-Shield & Co. (Joint); Morgan Stan¬
ley & Co.

Pacific Lighting Corp,,

San Francisco

Possibility, of the company issuing $15,000,000 first mort¬
gage bonds upon completion of pipe line facilities fore¬
seen. Proceeds would be used to replenish working capi¬
tal.
Probable underwriters include Blyth & Co., Inc.

Pennsylvania Edison Co., Altoona, Pa.

•

■

*•'

-i

"Vl!

...

24 stockholders will vote

creating now issue of

ueries A preferred,; stock which will be offered
hnoj? 7?ge for
preferred stock on share for share
DasiS
Wlth cash
adjustment.

Pere

Marquette Ry.

•' "

Maryland Drydock Co., Baltimore, Md.

101,000 shares of series C cumulative preferred
stock, with a dividend rate not to exceed 4%.
Both
issues are to be sold through competitive bidding.

•
-.»•

in©

Rochester

(N. Y.)

Telephone Corp.

disclosed its purpose to refund out¬
standing first and refunding 2%s and 3V2S through pri¬
vate sale of $6,238,000 2y2s, if approved by New York

Public

ihe

Service

Commission, f Company also, applied to
to issue $2,800,000 2%% debentures,

Commission

proceeds to retire demand notes.If Commission de¬
cides on public sale, Halsey, Stuart & Co., Inc., probable

•

Southern

Natural

Gas

Co.

approximately $15,000,000 of mortgage bonds and
notes outstanding, stockholders were advised in
the annual report for 1945.
serial

„

■

Standard Gas. & Electric Co., Chicago, III.
Standard Power & Light Corp. has requested permis-*
sion of SEC to sell, either through private sale or in the

public* markets
Standard

1,160,000
&

Gas

Electric

Co.

Sale

common stock
is preliminary

of
to

liquidation of the Power & Light as ordered by the SEC.
Union Electric Co. ot Missouri

refunding its

It is rumored that company contemplates

outstanding $90,000,000 3%s of 1971 with lower cost
obligations. Possible bidders would include Dillon, Read
& Co. Inc., and Halsey, Stuart & Co., Inc.
United Air

Lines

Inc., Chicago

April 9, at annual meeting, W. A. Patterson stated that
company intended to do some financing in near future;
to meet expenses of a $52,000,000 new equipment and
expansion program during the next 12 or 18 months.
He stated he did not favor the sale of additional stock
and that the

bank loans,

financing may probably take the form of
for which company was in a very favorable

position.

Y»

April 16 stockholders will vote to increase authorized
common from 1,918,412 shares to 2,500,000 shares, so as
to have available shares for the purchase of additional
property, creation of additional - working capital and
other corporate purposes.
No immediate issuance qf
additional stock contemplated.
;
-rcSk,

•

Price

per share.
;

•

stock

bidding 204,153 shares

through competitive

common

and (b)

manufacturer of various electrical relays and
clocks, is reported olanning the sale of 100.000 shares
common

sell

March 28 company applied to the SEC for permission to
issue (a) $23,500,000 first mortgage bonds series of 1976,

Kurman Electronic Corp.

■about $3

•

March 15 company

United States Rubber Co., New York, N»

March 21 filed with Ohio P. U. Commission application
to

1st

Company,
of

ferred.

Toledo, Ohio

proposal to issue
as part of program

514,000,000 additional first mtge. bonds

Mtge.

completed but company in meantime is

,vi.

Ohio Edison Co.,

™

•

bidders.

White, Weld & Co. will be underwriters.

May

it had been considering

question of public financing in order to redeem its
10-year 5 % convertible debentures.
Plans, however,

•

York, Chicago & St. Louis RR., Cleveland,

May 20 stockholders will vote

A;!

■

Drill & Tool Co., Chicago

March 30 company announced

Ohio.

N» ■>; Jlfef

without
the man¬

let only); First'Boston Corp., White, Weld & Co.*

preferred financing

New

one new

die,

sine

its

original issue of 2,300,000 shares to supply $11,500,000.
Eroceeds will be used to retire at par and interest out¬
standing debentures. Bidders may include Halsey, Stuart
Inc» (for bonds only), Bear, Stearns & Co. (for

in 1944.

basis of

Vf.,.'
•
Republic

plan with SEC
providing for sale at competitive bidding of (a) 22,500,000 20-year sinking fund collateral trust bonds, plus

1,200,000 shares (no par) to 3,000,000 shares (par
$11. The outstanding 759.325 shares were split 2 for 1,
increasing outstanding shares to 1,518,650.
Unissued

stockholders

adjourned,

March 27 filed amended recapitalization

from

associates

T'-

England Gas & Electric Association, Cam¬
bridge, Mass.

Cleveland, Ohio

increased

."*!

New

underwriter.

unissued

was

Company has under consideration a plan for refunding

April 1 directors voted to offer stockholders rights to
one additional share for each seven shares

834

refinancing

posed

action being taken on the recommendation of

bidder.

30, it was reported that company is preparing
to issue $30,000,000 new debentures. Morgan Stanley &
Co. and Halsey, Stuart & Co., Inc. are probable bidders.

subscribe for

and

March 25 stockholders' special meeting to act on pro¬

March

probable underwriters.

stockholders

States

Denver, Colo.

& Co., New York, and Nugent & Igoe, East Orange,

Co.

offering debenture holders opportunity to exchange
their holdings for 6% cumulative preferred- stock (par
$5) in ratio of $1,000 debenture for 234 shares of pre¬

neapolis, Minn.

held, requiring approximately 228.000 shares. Proceeds
for working capital.
W. E. Hutton & Co. will be

standing preferred issues, viz.: 4% series B at 105; 4*4%

Hudson Motor Car Co.,

Co., Hoboken, N. J.

have not been

used to retire outstanding preferred

future expansion.

-Public:-' Service Co; of Colorado

■

March 26 stockholders voted plan to refund three out¬

Corp., Los Angeles,

will

vote

•

common

Rights expire about April 27.

will

and additional income debentures,

approving a split-up
40,000 shares of new
4V2% cumulative preferred stock (par $50).
New pre¬
ferred if sold will probably be underwritten
by Allen
of

April 6 company announced offering of 100,000 shares
of common stock (par $1) to holders of record April 12

Corp., Philadelphia

stockholders

Company it is understood expects to register at an early
date for public offering an issue of 15-year debentures

ment expected to be filed

March

Inc., New York

The sale of 104,138 shares

$5 par.

of common stock also will be acted upon,

•

Pittston

May 1 stockholders will vote

Co., Toledo, Ohio

stock from $10 par to

N. J.,

agement.
•

(par $5) and issuing one additional share for each of the
97,931 shares now outstanding.
Stockholders will also
vote on changing the par of 200,000 authorized preferred

ger

increasing capital
stock from 2,000,000 shares of common to a total of
3,370,057 shares, consisting of 250,000 preferred shares
(par $100), 2,500,000 common shares (par $3) and 620,057
class B stock (par $3).
Purpose is to secure permanent
capital as may be required for future expansion. Smith,
Barney & Co. probable underwriter if sale of securities
takes place.
- • <?~:• '
■': :t '' ■!

Michaels Brothers, New York

with

Phiico

of directors

Mich.

April 15 stockholders will vote on increasing authorized
common from 250,000 shares (par $10) to 450,000 shares

at $2 per

May. 13 stockholders will vote on increasing common
stock from 125,000 shares- (25c par) to 500,000 shares,
to take care of future financing.
'

;

April 1 filed with SEC application to sell (a) $3,500,000
first mortgage bonds due April 1, 1976, (b) 14,000 pre¬
ferred shares (par $100) and (c)
$400,000 common stock
(par $10). All issues would be sold through competitive
bidding.: Probable bidders include Blyth & Co., Inc.;
Kidder, Peabody & Co.; The First Boston Corp.; Harris,
Hall & Co. (Inc.); Merrill
Lynch, Pierce, Fenner &
Beane, and Ira Haupt & Co.

19 committee; of directors formed to consider
refinancing of $65,000,000 3y2s and 4s. Probable bidders
include: Mellon Securities Corp., First Boston Corp.,
Dillon, Read & Co. Inc., Coffin & Burr, Halsey, Stuart
& Co., Inc., and Spencer Trask & Co.

held.

j~r

1977

Michigan Gas & Electric Co., Three Rivers,

Detroit Edison Co., Detroit, Mich.

Harvill

.-.

. ■

■

-v.7,..

writers.

March

•

Philadelphia Dairy Products Co., Philadelphia,

was

April 8 it was reported
through common stock,

P. U. Commission appli¬
bidding 876,568 common
shares, after capital adjustment. Proceeds for extensions.
Probable bidders include Morgan Stanley & Co.; Leh¬
man Brothers; Harriman, Ripley & Co., and Mellon Se¬

of which will be

........J".

Merritt-Chapman & Scott Corp., New York

Power Co., Jackson, Mich.

and for working

studying plans for refunding existing preferred
stock, which may entail issuance of new preferred shares.

March 14 filed with Michigan
cation to sell at competitive

De Vilbiss

writers.

mortgage

»,v

was

March 18

(jpintly),ti t

reported that early registration of 275,000
common shares was expected for the account of certain
stockholders.
Clark, Dodge & Co. probable under¬

April 1

Consolidated Edison Co. of New York, Inc.

mites Corp.

Mercantile Stores

April 3 it

Consumers

-J

.■;.

■

THE COMMERCIAL & FINANCIAL CHRONICLE

Ohio Electric Co., Coluin-

Columbus & Southern

;

April 25

cqoTOTOpili

open

bids for purchase of $1,300;-

000 issuq5 jojgsorial^equipment:

trust certificates of 1946.

Bids will be opened at noon and no bids for less than
99 will be considered.
Successful bidder will name

dividend rate.
&

Possible bidders include Halsey, Stuart

Co., Inc., and Salomon Brothers & Hutzler.

•

Western Pacific RR.

April 3 company reapplied to ICC for authority to

issue

$10,000,000 first mortgage bonds, dated Jan. 1, 1946, due
Jan. 1, 1981.- Interest rate to be specified in bids. Prob¬
able bidder^ include Blyth & Co., Inc., Bear, Stearns
& Co., Halsey Stuart & Co., Inc., Merrill Lynch, Pierce,
Fenner & Beane, Shields &.Co., and Glore Forgan & Co.
»

Yonkers

(N. Y.)

'• '•

■

Electric Light & Power Co.

Jan. 21 company and parent

Consolidated Edison Co. of

applied to New York P. S. Commission
for authority to issue $9,000,000 30-year debs., int. rate
not to exceed 2%%, to be guaranteed by parent.
Issue
to be sold through competitive bidding.
Possible bidders
include Halsey, Stuart & Co., Inc.; Morgan Stanley &
Co.; Lehman Bros., Harriman Ripley & Co. and Union
Securities Corp. (Joint); Blyth & Co.. Inc.; Shields &
Co. and White, Weld & Co. (Joint); W. C. Laneley &
Co.; Merrill, Lynch, Pierce, Fenner & Beane and Kidder,
Peabody & Co. (Joint).

New York, Inc.

|!
%

CHRONICLE

THE COMMERCIAL & FINANCIAL

1978

When^V-J Day
came, many people thought that
sharp cut-backs in the amounts of
goods needed to supply the armed
fore

Progress of xHold-the-Line'Order

they were in the last war when
clothing prices/rose 200%
and
house

The Purpose of This Report
Three years ago

'i:

tistics ^reports
risen 31%

(Continued from page 1927)

[;•

today, on April

furnishings went up 179%.
There have also been substan¬

r/i.

8, 1943, President Roosevelt issued

tial

his Hold-the-Line

designed

check

threatened

steady in¬
living which
the

down

break

was

in the cost of

crease

stabilization program wisely pro¬

vided

by Congress earlier in the
protect the country from

the ravages of

*%'

wartime inflation.

The' "Hold-the-Line"
rected

Order

di¬

be carried out.

}%>
S<

anniversary

the

tf.'ik

"Hold-the-

as an

.i'i'

our

stable

a more

sacrificing

almost

milliian of

our

nation stands at

security, this
We

crossroads.

believe that

one way leads to eco¬
disaster; the other to a
future of long-range prosperity.
And there is no middle path.

nomic

The vast majority of American
businessmen, farmers, factory
workers and

housewives

termined that

de¬

are

must choose the

road.
Yet today there is
danger that we will be
stampeded into a severe snow¬
balling inflation. And if inflation

fight

fir

grave

t
&

inevitable

the

comes

of the

cost

been held generally
and has prevented increases
has

in the overall

rise

sharp

cost of living.

the.

quarter of a
finest young ,men
a

for world peace and

vCi

result

will

be depression, widespread misgry,

period of unprecedentec
pressures—consumer

'xnree years ago the American
people faced a problem which was
in many ways similar to the one
we face today.
It was the prob¬
t

|,"
'W

lem of achieving all-out produc¬
same time Cre¬

tion without at the

ating runaway inflation. ;
We who are responsible for the

administration of the stabilization
program feel that a look backward
over
the ground that has been

held in the fight against inflation
should
provide renewed confi¬
in

dence

this

nation's

ability to
prevent a disastrous boom and
collapse in the months ahead. And
we

believe that the record of the

last

three

should

years

renewed

whatever

steps

give

determination

see

the fight

are

take

necessary

through to

a success¬

ful finish.

What

According

Bureau of
Depart¬

the

Statistics

Labor

the

Happened

Prices,

Three Years?

Every

the

Labor, the general level

ment of

tenths

February,
for

which

40%

which alone take
moderate-income

prices,
v of
the

urban

family's budget, -are actu¬

ally lower by almost 2%% than
they were three years ago, accord¬
ing to the Bureau of Labor Sta¬
tistics. ^Because the moderateincome family spends about three
times

much

food

for

clothing, even this small decline
in the general level of food prices
is sufficient to prevent the in¬
crease
in
clothing prices from

which the

3.4%

But

with

even

reasonable ad¬

dition for this purpose, the

1946 (the latest date
figures are available).

the

ican

established

have

people

Amer¬

stabilization record of which they
can

well be proud.

It is

which should settle

all

the

ability

record

and for

once

question of our technical
to

blow-up

resist an inflationary
in spite of staggering

pressures.

weekly earnings
of
factory workers were 4.2% lower
Average

February,

1946, than in May,

1943; and average hourly earn¬
ings were 5.4% higherA-n-4. -!
With

end

the

war

higher total food bills during the several thousand industries. This
it is often hard to process is continuing under the
convince the average housewife new Wage-Price policy which was
that food prices have been held announced on Feb. 14.
The following table compares
generally stable. For the house¬
wife who prefers to check the the movement of the prices of im¬
Bureau of Labor Statistics -in her portant cost-of-living items and
own way,
the best evidence that of wages during the last three
food prices have in general been years with their movement in the
held is a comparison of the actual whole of the World War II period
prices of the most frequently pur¬ and with World War I:
chased items as they appeared in
The Record Has Been Achieved
food-store advertisements for May,
in Spite of Staggering Inflationary
1943, and today.
Pressures
Almost
invariably it will be
In the 27 wartime months be¬
found that the average market
basket of groceries can be bought tween the launching of the "Holdtoday for the same amount—or a the-Line" program and V-J Day
little less—than it cost three years upward pressures- on prices, due
to unprecedented demand for ar
ago.
supply
of
civilian
Putting all of these factors to¬ inadequate
last few years,

■

...

the

Labor

level

that

since
"Hold-the-

years

presented

pricing problems which

govern-

industry together failed
adequately in the early
days of the war.
Today those
problems are being dealt with
more
effectively and results are
beginning to show in more and
better

merchandise

the

lower

price ranges.
while

be remembered^ that
increases in clothing and

house furnishings prices have had
a

serious

effect

living in this

war,

the

cost

have been nowhere

near

large

% Change

Aug.

Feb. 1946

ALL

Round
Pork

Eggs
Bread

—10.7

13%
Suits

Men's

Shoes

119
4

0.3

17.2

House

Dresses

HOUSE

FUEL. ICE
FURNISHINGS
miscellaneous

ALL

WHOLESALE

Industrial

6.5

54.0

15.9

101

'148

jt® t

8.5
3.5
4.8

■

Building

Materials

218

Copper :

...

;

Anthracite
Textile
Blue

""""

I
™~

Denims

WEFKLY

EARNINGS

15.9
7.8

252

HOURLY

EARNINGS

104
.77.

.,4.9

266

•'

16.4

3.2

AVERAGE

277

Hose

AVFRAGE

•

675

140

Cotton

:9.4
13.1

Coal

Products

Men's

232

—

Glass
Plates

271

Plate
Steel

•

FACTORY

WORKERS

(* No data available)

price ceilings.)
This ' record

increases

went into

markable when
ooth industrial

even

prices and the cost

living index

] ground arid to get started in busine®s-

rose onlv about
3%-' from the time the "Hold-the-

Line" order went into actual

swallowed

them

turned from .war service found it
impossible to get their feet on the

re-

consider that

found

almost overnight by new price
increases. Men who had just re-

•

Finally, when enough families

could ho longer afford to pay the
eration in May, 1943, to V*J Day. Prices, the final -inevitable colAnd that period of two years and Mapse came in May, 1920. Factory
'hree months was our period of
f Pa3T°"S dropped , 44%, leaving
greatest production.
r
J nearly oiie-third of' .our factory
op-

And what has happened to^
ductibn since V-J Day?
Severe

I SSL
®
^ ^
f
dUCG(}. values of inventories. Cor;in the process of
converting our j Itc1
r,/1^
gigantic economic machinery
10j?f
®
5i0So
^iY
to peace,
production of JESlS*a
mariy finished consumer goods is tllc>osaud - businesses-went banFarm
dislocations

were

—

still

lagging.'
as

expected

-1

Yet industrial

whole

history^—more

than

pro¬

peace-1 J?-?!
•.

60%

income;chopped 66%,
453,000
-

m the next five yeai®

today I

stands

t the highest point in our

os\
pbrough foreclosures.

„

propert

aio?^inLthewpre^ar What-"r-Is''Needed to Insure Final
193^^|939.,. Employ-|
Victory Over Inflation
: »• ■<•***
!-•»' -a

"42

people

have!, ample

confident

thfdr

reason

ahititv

duripg/the critical months
ahead and
stpl Create a flood of
vfhicn will wipe out

'in

same

?nd-with
met

tools with which we

similar emergency

during the war.
The responsibility -for deter¬
the
possibilityiof a'runaway in¬
mining the policies under which
flation. !
tLa
- J we
as a nation will face the stahii
W
bilization task ahead rests entire.«.'™f.
nexWew months will ly with Congress. On the basis of
be. dangerous, and: difficult.
I the^record -of the past four years
Even .with the present
rapid in- the'American people can be concrease in
production rates cohtin-1 ficfent that ^Congress will iulfdi
umg, supplies of goods available this
/responsibility in spite of
to consumers are still
short of the heavy pressures from special
ourehasing
power
that
people terest groups which are out to
ave .from their current
incomes, eliminate or cripple the price and
nroductioh

*50')

ThM

gap

will

closed in the rent control legislation. "
production ex- l
As the heads -of- -the agencies
panas^and as business inventories I which are responsible for adnnnall levels are built
up to nor-, istering the stabilization program
coming months

150

which

18.6

165

PRICES

....

3.2

179

Prices

materials

bj.|nt question js; are we willing 10
a repetlt.io?1 of ^atiifnfto
The
^ve^SaSthe %fntSethe
collapse

4.7

148

ELECTRICITY,

nasic

them we&e effectively held under

can

Cotton Work Shirts

reconversion

—23.

;

Prices dropped

civilian pur- process got underway.- Then the
during the war exceeded upward surge began in March,
anything this nation has ever [1919. A frantic'effort td reorgan^
mown
before.
During the first I ize our defenses, against inflation
World War industrial production was .too late and itoo weak. Busi^
rose only a quarter while indusnessmen began a perfectly natural
rial prices doubled by Novem- scramble for inventories.
Uncerber, 1918.
During the war' just tainties ^about -business costs and
past-the increase in industrial prices made long-range-planning
production was four to five times) impossible and hampered producas much as in the first war and
tion; As the cost of living moved
industrial prices increased only up from 62% above prewar levels
about 25%.
(Although much fin- to a peak of 108% above prewar
ished
war
equipment such
as in the spring of 1929, millions of
planes/tanks and warships were I people living on fixed incomes
lot subject to price controls th$ suffered.
Workers who got wage

years-Horn

—0.2

200

Men's

for both military and

•

—6i2

•

108

291

Potatoes
RENT

discarded.

—0.4

vegetables

were

| slightly while the

posea

0.1

and

tion in the past three years?
' •
The fact is' that total production

1.4

12
31

139

21%

3.4%

92
94

fruits

Shortly after the Armistice in
1913 mbst of our leaders believed
"stifling" price controls.
What that the problem-of inflation wafc
has actually happened to produc- behind ns,
What controls we had

time

—11.1

208

Canned Goods
Fresh

war. •.

stable economy we have sacrificed
production
by - imposing

—2.4

125

Chops

31%

Milk

16%

May 1943
to Feb., 1946

ioa%

PRICES—

Steak

that in the fight to maintain

say
a

duction

from

126

CONSUMER

FOOD

those increases

from

inflat.

100%

—

LINE ORDER.

% Change

July

1914 to

Bituminous Coal

It should

HOLD THE

tures

difficult

meet

SINCE THE

WAR II

1939 to

Statistics, the
clothing prices

ment and

from

Everybody agrees that all-out books tell the dismal story of
production is the only effective | what, happened in similar but far
escape valve for inflationary pres- less
dangerous circumstances at
sures.
But there are those who (just about this time after the last

j-rom war

WORLD

WAR I.

peak of

40%

effective in

fields

stronger than ever be-

Family
Expendi¬

17.2% from the time
"Hold-the-Line"
Order
be¬

Both

were

% Change

of Aver¬

many

February, 1946.
Mouse
furnishings
have
risen
,18.6% in the same period.
-

goods,

Percent

risen

came

|
fj

general
has

knows

the

added to

age

Order, the prices of

Bureau

-■

■

statistics show.

May, 1943 to

from

Food

individual items have increased.
For' example, according Id the

issuance

Line"

housewife

during the last three

vinced that prices were going un
sharply, they would try to protJt
themselves by turning their moncome still far outweighs the supey. savings into whatever goods
ply cjf civilian goods which could they could find. This would mean

WORLD

Rents and Wages in the Last

unt i

shortages of materials and
are eliminated and until the stored
are. full of consumer goods th*
danger of an explosive inflation
Ms grave. Both business and con
sumers have immense liquid sav~
ings. If they should become con I

deteripratio^^^ua£
Stwes ^ull of goods. V
"Bargain sales" =,ar-e^a^ib,I
inflationary
pressures r 1 Nobody
knows Exactly how
of
the
past.
The lower-priced
are many times greater than they
much prices would rise if our stagoods in many fields have dis¬
were three to
six months • after bilization controls were weakened
appeared. Thus, in order to get a
World War I when inflation broke or eliminated -now.
But we do
more nearly accurate estimate of
loose in the country.
know that inflationary pressures
the cost of living increase in the
N**® many times stronger now than
past three years, something must What Has Happened to Production
they were ht this time after th*

of rents has increased only three-

gether, the Bureau of Labor Sta¬

Has

ity.

August, 1945, there were sharp
years' delay in our tran¬
cutbacks in take-home pa.y due to
sition to a sound, full-production raising the general level of con¬
sumer prices substantially.
down-grading and elimination of
economy, and serious impairment
Since V-J Day these
of our leadership in the endeavor
Probably because many families overtime.
to build lasting world peace and have been eating more and better cuts have been partially restored
food
and
have
therefore
paid through new wage agreements in
security.

several

employment

•

after

Today,

lives

then—a

inflationary

exnann

in the coming months.
thel
But in.., the meantime

the

in the other one-third from caus¬

basic purpose.

if:

two-thirds

This

ing

report also has

the

eliminated ^as production

in purchas-

forces and reductions

ing power due to temporary un-

urban family.

living

ahead.

Bui

since September/1939,
war in
Europe began

tains our best estimate of the
possibility of keeping the general
level of rents and prices reason¬
ably stable in the critical months
iv

during

genera

prices has

•

manufacturing finished nrodn +n
Most of these shortages will k

moderate-in¬ prices, according to the Bureau q: ; be made available in retail stores that the actual working demand
On the other Labor Statistics, have1 increased, in the few months since full re- [ wpulcl greatly exceed supplies of
conversion began.
We are faced everything.
This is exactly the
In the same-threehand, rent, food, fuel, ice, elec¬ only 3.4%.
Kith severe shortages of clothing; situation which gives rise to gy.
tricity and certain oth^r items— year period, prices of- ihtfustria
materials have risen only 4.8%, housing, consumer durable goods rating,... cumu 1 ative inflation
on which there has been little or
Arid tre- jHence it is imperative to maintain
no increase since the "Hold-theand wholesale prices have~;:gbRb and many food items.
mendous quantities of merchan- price stability until the
economy
Line" Order—together take about up only 3.5%.
^{ise are needed merely to fill the l is/working -^.capacity,, shortages
two-thirds of the moderate-income
Everybody knows that■pipelines of our distribution sys-j are eliminated and people see the
family's expenditures.
been some

opportunity ,to
give you an accounting of our
trusteeship. This report also con¬

/;/ ,?

miscellaneous

increases

the

ig46

mal.,, There are still shorten
many;materials and parts-

history.

•

clothing, house furnishings

But

come

agencies charged
administering the stabiliza¬
tion program, we again take the
Line" Order

place price

and the troublesome

penditures

As heads of the

authority

past three/years—together take
only about one-third of the ex¬

with

which the Government

substantial

agencies
to take certain steps to insure
that the intent of Congress would
m

has

items—on which there have been

stabilization

the

tickets

number

ceilings.

war

increases

that

consumer

would reduce
when the
This is a creditable record when pressure on prices.
But the process of retooling our
it is remembered tharduring the
inflationary period of'the last war plants got underway much more
living costs rose to'^peak 108% quickly than most people expected.
Today employment is at a
above the prewar period. ? ./ :
But even more important is the record peak in the peacetime history Of our country.
While takefact that nine-tenths of the 31%
home pay has been sharply reincrease in this war occurred be
duced in many cases, .total purfore the "Hold-the-Line" Order
In
the
three-year period since chasing power from current in-

minor items such as beauty and
barber-shop services and theater

t\v

Order.

all

level

Thursday, April 11,

,„e

THE COMMERCIAL & FINANCIAL CHRONICLE

163 | Number 4480

Volume

Finally,

convinced that the follow-

are

success

calls for
take

the

efforts

our

large measure of self¬
legislation is indispensable it
lessness, patience and give and
danger of inflation is. to be

iealf with

successfully during the
nSt crucial months:
We believe that the Emer¬
gency
Pnce Control Act which
°

SfVed

better

are

few

next
sarke

businessmen,

prepared to face the

critical

months

spirit in which

the

faced the

American people

the neces¬
legislation is passed, we be¬
lieve that the last major stum¬
bling block will be behind us. We

would

served by eliminating

believe

control entirely rather than
encouraging the falsg senseof ser
eur.ty which would result from a
Mere illusion of price control.
And we believe that the act
must be passed in final form by
May 15 at the latest. 'Already the

record

levels, will

flow

goods
daily to

growing

now

^ctories in

even

from

come

our

greater quanti¬

ties.

It is

our

earnest hope that if all

well during the next year the
danger of a severe inflation will

goes

arriving at a final deci¬
the course we are to take

delay in

have

passed

1947.

months ahead • is creating

the

that

which

sion on

emergency, and if

war

sary

nrice

—

o£ the

ests

part of every group

country

the

middle

meantime

of
controls

should be gradually removed

only
Impede production end' increase
uncertainty. Uncertainty can

this is not

Halsey, Stuart & Co., Inc., head¬
are right.
•
: v
z.1
a
group that on April 9 won
Union Electric Co.
the award of $30,000,000 Pennsyl¬
Should the investment market
vania Co. secured serial notes, and
maintain its currently strong un¬
immediately reoffered the notes,
which mature $1,500,000 annually
dertone in the month* ahead,
from April 1,
there ale indications, although
1947, to 1966, at
nothing official as yet, that Union
prices to yield 0.90% to 2.20%,
Electric Co. may undertake a
according to maturity. The offer¬
This was a really busy week
-. y
ing is subject to approval of the for the underwriters of new se¬ rnajor new refunding,
While lie official word^ hasInterstate Commerce Commission.
curities with the bulk of their
been forthcoming to date*, the
Proceeds from the sale of the
business taking the form of equity
formation of at least two bank*
notes< together with such addi¬
offerings. The overall roster, how¬
tional funds to be provided by
ing groups with an eye to going
the company as may be required, ever, included three sizable debt
after such potential business,
will be applied to the redemption issues, one due out today.
suggests that it could develop
Dealers reported a brisk de¬
on June 1, 1946, of $12,000,000 of
under proper circumstances
mand for the new issues offered
secured notes, series A, and $20,marketwise.
by jankers for the Tennessee
000,000 of 25-year 3%% secured
The company, has outstanding
Gas & Transmission Co., which
sinking fund notes, series B now
about $90,000,000 of first mort¬
included
$35,000,000 of 2%%'
outstanding.
gage
and collateral trust 3%*,
first mortgage bonds, 100,000
scheduled to mature in 1971.. Con¬

to do

By Jftne 30, 1947, only

so.-

by encour¬
hoarding and speculation; rent controls and some last rem¬
nants of price control in a few
Above everything else, the coun¬
isolated fields will remain.
When
try needs to know where it stands.
Before ;• businessmen
can
plan that time comes we will have the
ahead
in , complete
confidence deep satisfaction of knowing that
we have come out of the war pe¬
they must know that prices and
riod with a firm foundation on
costs will remain generally stable.
2.
We believq that effective which to build the full produc¬
tion, full employment economy
price control and the subsidy pro¬
gram are indivisible.
Without a which we all agree our country
continuation of the present food chn and must achieve.
Today
America
has
almost
subsidies we must expect sharp
increases in food
prices which within her grasp a future of eco¬
nomic
security
and
prosperity
would almost certainly result in
another round of wage increases, which is far. beyond anything we
higher manufacturing costs and have ever dreamed of in the past.
aging

prices.

that the Second
Powers Act must be extend¬

War

June 30 to enable the
Government to prevent hoarding

group of investment bankers that
is making public offering today

$10,000,000 2%%
debentures of United Biscuit Co.
of America, due April 1, I960, at
11)

(April

uncontrolled

102%

and

urge

first

busi¬
veterans trying to get

and

nesses

started

constantly
must

have

stabilization

lations
loads

to the

general funds of the com¬

pany.

handle

and

agencies

work¬

their

expeditiously.'

Given the necessary legislative

tools, all of the stabilization agen¬

Cuban Atlantic

with

delays.
avoid

Sugar

must
action that might ob¬

Above

any

they

iall,

struct all-out production. We must
continue to have a sensitive sta¬
bilization program which, takes

advantage of every opportunity to
increase production. We must cut
the red tape wherever possible.
And wo must make quick decisions on
prices wherever they are
;- • <
under the
hew wage-price policy -must be
acted upon quickly and accurate¬
ly within the industry patterns
established by labor and manage¬
ment in free collective bargain¬
ing between V-J Day and Febru¬
ary 14 when the new policy was
announced.' Clearly, - our ability

necessary. ^
Wage adjustments

adhere

these

patterns will

depend

on
our
ability
prices and rents in line.
we

underwriting group headed

by Wertheim & Co. and Ladenburg, Thalmann & Co. on April
10 offered to the public new pre¬
ferred

additional

and

must

also

hold
-

prepared

$8,700,000.

common

The offering consist¬

ed of 30,000

shares of 5% cumu¬

lative- preferred

stock

($100 par)

Which was priced at $104 a share,
and
175,000 shares of common
stock (par $5) at $34,625 a
These
of the

securities represent part

60,000 shares of preferred
275,000 shares of com¬

stock and

which are being issued by
Cuban Atlantic Sugar for the purnose of acquiring the Hershey Cu¬
ban enterprises.
mon

Of the total securities being of¬

20 000

fered
and

137,500

purchased by the underwrit¬
Cuban Atlantic Sugar
Co. and 10,000 shares of preferred
ers

from

and 37,500 shares of common

from

the Hershey Trust Co., trustee
the

for

Hershey Industrial School of

Hershey,- Pa.
The shares purchased from the trustee are part

vigorously the inroads of of 40.000 shares of preferred and
any individual group which is 137,500 shares of common issued
W1jhqg to ri«k the welfare of the hy Cuban Atlantic to; the trustee
ent^ country for its own selfish as part payment for certain assets
:

%
%
£

proceeds

from

1946

of the

1947

priced

the sale

were

ness.

yield

based

maturity.
Meanwhile

indicated
of

was

dissolution

that

indicated

America
the busi;^
CS-

of United Biscuit Co. of

and

2.25%,

public offering today of $10,000,000 new de^nthre?i .dh&lw,.

1966

looking forward

The Street was
to

from

re-offering

0.90%

from

handling

bankers

undertaking

Proceeds from this

would be applied; to the tedemp?
tion, at 103% ai\d interest, of the
company's
outstanding 3%s of
1955, along with its 5% preferred
stock at 107 y2.

Any balance would be added to

syndicates had brought about a
marked
improvement in
the

general funds for corporate pur-^

general situation so far as some

which date it takes title to
the Mt. Vernon property.

10,

•

United Biscuit Co.

serially

mature

notes

the

represent authorized but
unissued stock of the company,
Net

institutional undertaking since

poses.

recent offerings were concerned.

DIVIDEND NOTICES

Both the Union Pacific and the

issues,

long

Pacific

Southern

-brought out in the last few weeks

AMERICAN

reported pretty well cleared

away

from

concessions

company

CAN;

the
'

Glore, Fprgan & Co. and Harriman
Ripley
&
Co.,
Inc.,
an¬
nounced April 10 that over 95%
of the 379,894 shares of common
stock of National Distillers Prod¬
ucts

Corp. which was offered

stockholders

sixth

rate

the

for

each

one-

sharp

held, has been subscribed for by
the
stockholders.
The
unsub¬
scribed portion amounting to
799 shares has been sold by

underwriting
ceeds of this

group.

The

financing amounting

approximately $23,135,544 be¬
fore miscellaneous expenses, will
be used
for additional working

insurance companies, did

chiefly

not seemingly win the entire ten

rounds, they were able, presum¬

obtain bonds

ably to
in

Deetjen

of 116 underwriters that is
offering publicly today (April 11)
211,000 shares of American Air¬
lines, Inc., common stock ($5 par)
at $90 a share.
This offering con¬
stitutes
a
registered secondary.
The shares being offered are is¬
sued and outstanding and are not

group

being offered by the company.
They are being sold by Aviation
Corp.
which owns beneficially
262,538

shares,

20.3% of

COLUMBIA

Panhandle

Eastern

Co. moved its

Pipe

Line

prospective financ¬

week when it applied to the Ohio

market

ELECTRIC
CORPORATION

GAS &

step nearer to fruition this

loan

the

The

declared this day
Cumulative
No. 78,

4% of the total voting stock of

the

outstanding.

This

project

substantial,

it does the sale of

proceeds from which the

payable
record

com¬

135,000

Dale Parker

offered

first

standing
lien

first

mortgage
and
and liquida¬

tion

$16,000,000
notes.

sory

promis¬

The

FLEMING-HALL

bonds,

TOBACCO CO., INC.
Dividend

has

already

company

tration

with

the

Securities

have declared a regwburvquarv
terly dividend of fifteen cents

(15c)

Rose & Troster, New York.

Hoit,
Pro-

ceeds will be used for modifica-

tion of three company-owned air
craft hangars, etc., and for work

Hershey Cuban properties, ing capital.

per

Cumulative

'able

SECURITY
write

the

Stock;,

holders of record at the close of

Investment Dealers!
LYST,

Preferred

payable April 15,1946 to Otock-

Attention,
EXPERIENCED

Corporation

Directors of this

and

SITUATION WANTED

Preferred Stock

placed the new securities in regis¬

business

April 5, 1946.

FLEMING-HALL TOBACCO CO., INC.
By S. C. Korn, President and Treasurer

ANA¬

sharp-minded

up-to-date analyses of industrial and

your

stocks, available for individ¬

mail inquiries. Write Box L-43,

ANNUAL MEETING
NORFOLK AND WESTERN
COMPANY,.
'

Commercial
25

Park

Place,

Financial
New

York

Chronicle.
8,

N. Y.

Roanoke,
NOTICE

Virginia,

ANNUAL

RAILWAY

April S, 1946.
MEETING

STOCKHOLDERS

being publicly

at $2 per share by

Secretary

apply to the re¬
demption of $30,250,000 of out¬

The

capital stock (par $1) of Flamingo
Air Service, Inc., is

1946, to holders of
1946.

close of business April 2Q,

April 4, 1946

ually paid analyses and for answering

issue

May 15,

would

pany

railroad

Flamingo Air $or*ice
Stock Publicly Offered

Stock, 5% Series

quarterly, $1.25 per share

5% Cumulative Preference Stock
No. 57, quarterly, $1.25 per share

state.

in order to

or before July 31^ -1946, it re¬
duce its holdings to not exceeding

6% Preferred Stock, Scries A
quarterly, $1.50 per share

No. 68,

company

Board of Directors has >
the following dividends:

Cumulative Preferred

that

American Airlines, Inc.

comply with an order of the Civil
Aeronautics Board directing thqt

Sccrctaryi
—

Big Issues Moving Up

ing

Stockholders pi record at.
19, 1946. Transfer'
Checks will be mailed.

R. A. BURGER,

basis

approximately

outstanding,

common

$50,000,000 of serial debentures

& Co. and
Lehman Bros, head a nationwide
Emanuel,

1946,

of business April

the close

books will remain open.

pricing ideas.

involving

Market

IS,

May

keeping with their owp

Securities Commission for author-,

capital.

On April 3, 194$ £ 'Jauaiterly dfvidnhd of
seventy-five cents per share was declared on the
Common Stock pf
this Company* payahl^

the
pro¬

buyers,

institutional

Although

STOCK;Vl

COMMON

original issue prices.

15,-

shares of preferred
shares of common

were

resist

gam.

The

share.

Slock

heavy

minimum of mistakes and

American Airlines, Inc.

responsibility
stock of Cuban Atlantic Sugar Co.
administer ttliem wisely and
with a total market value of about
have

concession

The

50 cents

was

Co., serial notes proved a
operation. This was strictly

fast

ity

for

with which -to enforce their regu¬

from

.the fiscai year
adequate appropriations

have

1946-47

share.

ficials.

vania

been hard-pressed by

rising rental costs.,

The

ventures

new

many arfcas

interest

The remainder
proceeds will be added

Since that time established

accrued

1, 1946.
Proceeds of the
financing will be applied to the
redemption of 5t4.270,000 princi¬
pal amount of 3Vz% debentures,
due April 1, 1955, of the; company,
at
103 M>%
of. their
principal
amount, and 25,000 shares of 5%
cumulative
preferred
?tdck
al

This step was
$107.50 a share.
recqmmertded 18 mpnths ago. of the net

commercial rqnts.

cies

April

that the nation
check sharp increases in

act

common

Slock All Sold

controls, but to the entire stabili^
zation program.
We feel that it
must be met through quick adonr
tion of the Patman Housing Bill.
also

offered

dealers

Goldman, Sachs & Co. heads a

serious threat not only to rent

sidering; the current yi^elda ^
ngh^grade utilities the market
must be tempting to company of?,

foregoing undertaking,
the sale of $30,000,000 of Pennsyl¬

were

the real estate field

inflation ip

$26

common

par

Like the

Goldman, Sachs Group

ties in the months ahead.

tip win through successfully.

powerful adjunct to price control.
We cannot expect to maintain, aur
economic stability and
still get
badly needed> production—espe¬
cially in the cloth'ng and build¬
ing materials field—without the
support of allocations and priori¬
4. We believe that

headed by Kuhn, Loeb
April 9 100,000
stock (par $1)
Pressed Steel Car Co., Inc., at
Co.

shares of

stock.

A group
&

preferred and 484,444 shares
additional

Pressed Steel Shares

take whatever steps are necessary

through inventory controls and to
guide scarce materials into chan¬
nels where they are most needed.
During the war the machinery
allocation
and - priority
was

par

ed beyond

cuprotatiye $100

shares of

Kuhn, Loeb & Go. Offers

will
be applied by the company tq^
wards the purchase price of the
It is unthinkable that with that physical assets of Mt. Vernon Car
goal in plain view and with the Manufacturing
Co.
Under
the
knowledge that we have met and terms of the purchase agreement,
dealt
with
an
equally difficult Pressed Steel Car is to pay ap-r
task in the past, we will fail to
proximately $2,650,000 on April

We believe

Wherever and whenever it is safe

inflationary pressures

still higher consumer

a competitive bidding
deal, should be ready to proceed
with marketing within a fortnight
or so, provided market conditions

Our

withoutthe" crippling
thput
Lendments wttlch.are now neing
amendments Which are now ,°®mg
proposed almost daily. The inter¬
..v.-

the

Exchange Commission, and^since

Pennsylvania Co. Ides
Offered by Syndicate

farmers and workers alike.

30 must be re-

June

1979

EXECUTIVE
Well

qualified financial officer, over 20
years' sound experience in securities,
finance, banking, accounting and man¬
agement.
Taxes and security reports.
Age 45f. Address replies to Box A'lI*
&
Fi"in','al
Ckro-'cle, 25
Park Place, New York 8, N. Y.

will

Meeting

Annual

and

Western

held,

pursuant

Norfolk

of Stockholders of
Railway Company
to the By-laws,

principal office of the Company in
Roanoke, Virginia, on Thursday, May 9,
1946,
at 10 o'clock A. M., to elect four
the

Directors

for

Stockholders
to

it term of three years.
of

record

the

■

April 19, 1946, vttl fee, ^W\ed
vote at such meeting.
L. W. COX, Secretary.

business

^TiCg:W|ynMnB«Cyi^^.jP^^^

1980

I'W'r4

Urge Federal Economy and Balanced Budget
National

drastic reductions in proposed expenditures to permit balancing
Budget.

Sbiv

(%%

k"5

Sr. 5

il't

S!>
rf*£?
,

ff
V*
V
-

New
York), and Ivan Wright Municipal News and Notes
statement, signed by 62 members of the Econo¬
1971
Mutual Funds
.1942
Policy, has been released by (Brooklyn College).
OuT Reporter on Governments—. .1970
the office of the Committee in N. Y.<£
Otlr Reporter's Report..............1979
University);
William F
City:
"We urge that every effort
Thomas H. Kelly With
Public Utility-Securities.......;,,..1932
be made to achieve a balanced Hauhart (Dean Emeritus, South
Railroad Securities //..,'*£;*......1948
Staff of J. W. Brady Co.
Federal budget in the coming fis¬ ern Methodist University); Fred
Real Estate Securities...............1936
(Special to The Financial Chronicle)
cal year.
We recommend drastic erick C. Hicks (University of Cin
Securities Now in Registration..... .1972
reductions in proposed expendi¬ cihiiati); John Thorn Holdsworth
ST. LOUIS, MO.—Thomas H.
Securities Salesman's Comer..
1954
tures sufficient to permit a bal¬
(The University of Miami); Mont
Kelly has become associated with Tomorrow's Markets—Walter
Whyte
anced budget.
(The University o
Present high rates fort Jones
J. W. Brady & Co., 411 North Sev¬
Says
....v,197l
of taxation are justifiable only if Pittsburgh); Donald L. Kemmerer
the proceeds are applied to abso¬
(University of Illinois); William enth Street. In the past he was
Illinois Securities
Section on
H. Kiekhofer (The University of
lutely essential needs."
manager of the trading depart¬
pages 1934 and 1935.
The statement was signed by Wisconsin);
William H. Kniffin
ment for Louis W. Ochs & Asso¬
*See under "Securities Now in
the following: Eugene E. Agger (Bank of Rockville Centre Trust
Registration," starting on p. 1972.
(Rutgers University); BenjaminM. Co., Long Island, N. Y.); J. L. ciates and Fusz-Schmelzle & Co.
Anderson
(University of Cali¬ Leonard (University of Southern
fornia at Los Angeles); Charles C. California); Philipp H. Lohman
Arbuthnot (Western Reserve Uni- (University 6f ; Vermont); James
V \, ■
• ';4
Trading Markets in
versity); Leonard P. Ayres (The D. Magee (New York University)
;
A. Wilfred May (Executive'Edi¬
Cleveland Trust Company); James
Int'l Resist*
................

■

Vto

Washington Bell (Northwestern
University); William A. Berridge
(Metropolitan Life Insurance Co.,
.New York City); Ernest L. Bogart
(New York University); Frederick
A/Bradford (Lehigh University);
J. Ray
Cable (Missouri Valley
College); Wilbur P. Calhoun (Uni¬
versity of Cincinnati); William W.
Cumberland (Landenburg, Thalmann
& Co.,: New York City);
Rev. Bernard W. Dempsey, S.J.
(St. Louis University); Charles A.
Dice (The Ohio State University);
William
E.
Dunkman
(White

3|;v:

Plains,

1»H
:&<VV

®.i
'><$ y'

8Pi

IS",
«
mk
m

N. Y.); D. W. Ellsworth

(E. W. Axe & Co., Inc., Tarry town,

Y.); William D. Ennis (Stevens

Institute of Technology); Fred R.
Fair child
(Yale University);

Charles

Scophony, Ltd.

«...

U. S.

Finishing

Publicker Ind.

Mexican Corp.
Cinema "B"

I®1'

1^
•

W;
:%b\

flA
li;'}
&<•.

'fe*k

■§::;

tor, "The Commercial and Finan¬
cial

Chronice," N. Y. C.); Roy W
McDonald
(Donovan,
Leisure
Newton and Lumbard, New York
City); Mark C. Mills (Indiana
University); Melchior Palyi (Chi¬
cago,
Illinois);
Frank
Parker
(University
of
Pennsylvania)
Clyde W. Phelps (University of
Chattanooga); Chester A. Phillips
(The State University, of Iowa);
Charles L. Prather (Syracuse Uni¬
versity); Howard H.Preston (Uni¬
versity of' Washington); Leland
Rex Robinson (2 West 45th Street,
N. Y. C.); R. G. Rodkey (Univer¬
sity of Michigan); Oliri Glenn
Saxon (Yale University); Joseph
A. Schumpeter (Harvard Univer¬
sity); Carlton A. Shively (The
"Sun").
Walter E.
Spahr (New York
University); Charles S. Tippetts
(Mercersburg Academy); Alvin S.
Tostlebe (The College of Wooster);
James B. Trant (Louisiana State
University);
Rufus
S.
Tucker
(Westfield, N. J.); Leonard L.
Watkins (University of Michigan);
Russell Weisman
(Western Re¬
serve
University);
William
O.
Weyforth (The Johns Hopkins

HAnover 2-0050

Teletype—N. Y. 1-971
Firm

Artkraft

Trading Markets

Baltimore Porcelain Steel

Monolith Portland Midwest
Pfd.

Keyes Fibre

Sprague Electric

Buckeye Incubator

Majestic Radio & Television

Clyde Porcelain

O'Sullivan Rubber

Steel

Dn Mont Laboratories

Globe Aircraft

RALPH F. CARR & CO.

Sheraton Corporation

Telecom Corporation

31 Milk

Greater N. Y. Industries

FOREIGN

:«■>•

\' Incorporated

Members

New

York

Security

,45£NASSAUlSTREET,
TELEPHONE

PHILADELPHIA

Dealers

NEW

YORK

50 Broad Street

Investment Trust Issues

5 ;

Utility Siocki and Bonds
TEXTILE SECURITIES

Public

BELL TELETYPE

TELEPHONE

REctob 2-3600 -vEnterprise 6015..

Industrial Issues

Association

;

,new York 1-576

Securities with

New Eng. Market

Frederick C. Adams & Co.
-

A Market Place for

Specialists in
England Unlisted Securities

New

24 FEDERAL STREET, BOSTON 10

Low Priced Unlisted Securities

Established In 1922

Tel. HANcock 8715

Huron Holding
Jardine Mining

Aircraft & Diesel Equip.
American Chlorophyll

Tele. BOston 29

Kinney Coastal Oil

Bendix Helicopter

Lava Cap Gold
Mar Tex Realization

SIMPLEX

Metalastic Mfg.
Petroleum Conversion
Rademaker Chemical
Reiter Foster Oil

PAPER CO.

Red Bank Oil

Sterilizing

potential

postwar

bene,

fictaty of the:

South Shore Oil & Dev.

Southwest Gas Producing
Standard Silver & Lead

Haile Mines

United States Television

Harlow Aircraft

Upressit Metal Cap

Automobile,
Building,
and

New York City

!'sV

BS 328

%Insnrance and Bank Stocks

Gaspe Oil Ventures

SECURITIES

Toletm

We specialize in all

Kobbe, Gearhart & Company

Federal Asphalt

SPECIALISTS

Now York

Hanover 2-7913

Wilcox-Gay Corporation

Globe Oil & Gas

;i>

Street, Boston 9, Mass.

Boston

Hubbard €442

Copper Canyon Mining
Duquesne Nat. Gas
Differential Wheel

r.m marks & ro. Inc.

United Elastic Corp.

Lear Inc.

Bendix Home Appliances

Shops

Lithomat Corp.

Worcester Trans. Assoc.

Kut-Kwick Tool

Helicopter

Electric Steam

Princess
V

Kropp Forge

Bendix

Cosmocolor

THE FRESNILLO CO.

Teletvoe N. I, 1-1397

V ^

Ironrite Ironer Com. & Pfd.

Mfg. Com. & Pfd.

Community Gas & Power

ESTABLISHED 1919
Members N* Y. Security
Dealers Ass'n
Exchange PI., N. Y. S HA. 2-8780

6% Pfd* & Com.

Amalgamated Sugar

Admiralty Alaska Gold

M.S. Wien & Co.

%*$$$&£

New York

Fichtner

(Buffalo,
N. Y.); Clyde Olin Fisher (Wesleyan University); J. Anderson
Fitzgerald & (The
University
of
Texas);
Herbert: F.
Fraser
(Swarthmore College).
Roy L. Garis (Vanderbilt Uni¬
versity); Arthur D. Gayer (Queens
College); Lewis H. Haney (New
York University); E. C. Harwood
(American Institute for Economic
Research); Hudson B. Hastings

•

Selection
Gaumont-British "A"

Literature......,,1934

and

mendations

Rhodesian

Recom-

Investment

Dealer-Broker-

j*|?

American Potash "B"

.\;.1961

Calendar Of New Security Flotations *
Canadian, Securiities
.1940

The following

IV ;

■•

Business Man's Bookshelf

Kentucky);

mists' National Committee on Monetary

M' (

P-a

(University

index

insurance Stocks..1938

Broker-Dealer Personnel Items......1970

Max
Winkler (College of the City of

urge

L){

Bank and

Cincinnati, Ohio); Edward Wiest

Committee

11. lose

Page

(The Procter and Gamble Co.;

Monetary Policy

Members of Economists'
'I'-??!;

f f;

University); Nathaniel R. Whit¬
ney

Thursday, April

■

Frozen Food

Morris Stein & Co.

Industrie!.

Established 1924

BO BROAD ST., N. Y. 4

HANOVER 2-4341

TELETYPE—N. Y. 1-2866

NEW ENGLAND

Only
mon

small issue of com- i

stock.

ElTILES

New

**•

Recent Price

•

England Local Securities
★

★

Write

Specializing in Unlisted Securities

call

descriptive

for

analysis•

WALTER J. CONNOLLY & CO.
^ INCORPORATED

1923

000'/

'■■■■''

( BANK

07'

—

INSURANCE

> i

* • •'

Z4 FEDERAL STREET, BOSTON 10, MASS.
Telephone Hubbard

3790.

Bell System

Teletype BS-128

PUBLIC UTILITY

—

INDUSTRIAL

■

LUMBER & TIMBER

i
San-Nap-Pak
Sunshine

Active

Consolidated

Trading Markets

Reiter-Foster Oil

biKineertng Works

borolron

Van

Works

—

SOLD

W. T. BONN & CO.
120

Broadway

New York 5

Telephone COrtlandt 7-0744
Bell

Teletype NY 1-886

■

V
7'

Wall St.

B0 9-4613

QUOTED

Susquehanna Mills

Empire Steel Corp.
'

*Prospectus

St., Chicago 4

request

BELL SYSTEM TELETYPE

TELEPRINTER

;CH;'«WUX"

;

^
0

CG-989

'-v

Hill, Thompson & Co., Inc.
*r
Markets

New York B, N. Y.
;

Ma«r

Teletype BS

RANdolph 3736
WESTERN UNION

—

remer, mitchell & reitzel, inc.

Request

Amos Treat & Co.

1
■

208 So. La Salle

Special Reports

^General Products Corp.
BOUGHT

Northern

BONDS, PREFERRED AND COMMON STOCKS

Automatic Signal Common

Radiator, Pfd*

St., Boston 9,

Tel; CAjP; 0425

*S^NLy^Teleph^^

Amer. Bantam Car ComnoR

Pressurelube, Inc.
U. S.

State

148

REAL ESTATE

120

Tele. NY 1-1448
aaaaaBi

and

Situations

Tel. REctor 2-2020
- ■

for

Broadway, New

York S

Tele. NY

1-26

Full text of Commercial and Financial Chronicle : April 11, 1946, Vol. 163, No. 4480, Section 1

FRASER