Full text of Commercial and Financial Chronicle : April 23, 1942, Vol. 155, No. 4066, Section 2

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.1

Final Edition

Volume 155

THURSDAY

Number 4066

New

York, N. Y., Thursday, April 23, 1942

Delay Action On War Profit-Liilwr Curb Bill ' |
Until After Presidential Message On Inflation
The House Naval

April 27

vote

a

on

has

Committee

Affairs

postponed until after

X

'

;;;

Uai>^Mtfsl?Go-

fV

Argentine Banking and Trade.

to

Congress

1625

Regular Feature*

$5 >and

to $2

dues> and

From

Situation................ 1625

Washington Ahead £of the

News

1625

monthly.;^,..

bill proposed

State

6%

a

1635

Items About Banks and Trust Cos. 1640

Trade

of

over

.............1638
shops and suspended the 40rhour Garloadings
week, v /'K-v .7 "7;
':7./ I Weekly Engineering Construction.. 1636
mission of the program to Con- * Secretary ^ of the Navy Knox Paperbpard Industry Statistics,..,. 1637
told the Committee on April 14 Weekly Lumber Movement, .-:.:... 1636
of the 40-hour Fertilizer Price Index....*....... 1637
A new measure, sponsored by that suspension
work week would only result "in Weekly Coal and Coke Output.,.... 1637
Representative
Vinson
(Dem.;
,1637
confusion and delay" in the war Bank Debits
Ga.),
Chairman
of
the
House
1639
program and that substitution of Commercial Paper Outstanding
Naval
Committee,
as
a
com¬
this

to

the

nation

following

program

on

the sub¬

.

promise
earlier

for

by

the

bill

Represent¬

on

an

extension

April 14.

week in
48
on

of

$100,000

As

of the
also

ment-financed
bonuses"

for

of

1635

March Chain Store Sales

1638

March Cotton

1635

Consumption........

Miscellaneous

war

Gannett

applying statutory curbs

Papers Raise

Mexico

U. S.,

profits, the Secretary said that
favored
recapturing
excess
profits through taxation, explain¬

FDR

Normandie
Reserve

Laid

Fire

to

1640

Visit NYSE.... 1640

New Envoy to Russia.

ordinary

contractors and limit union initia¬

Company Officials

BEW Controls

dustrial

production and in¬

war

effort.

-

-

i

"

.

End

Tax

1640

Proposals Hearings

1630

War Materials......

1630

Employment Week.

1630

Hugh Johnson Dead..;.

Crop

Indicates Two

r-Suppiy,v.w

/

FROM WASHINGTON

FDR

Years

................

i-1632

Expects Three-Year War

1632

Burner

Output..........

Wallaee

Lauds

Pan-Americanism..

;

,

.

;

1632

(Text of Act).... 1633

Strikes oh Ships

It must be

heartening to all "forward looking" people,

as

Doro¬

resoluted in favor of this country's taking its "rightful place" in the
world after the war.
Aside from the fact that the National Com¬
mittee can't bind a party,

aside from the fact that even when a whole
National political convention resblutes it seldom "means anything!,
aside

shape

men

the

from

fact

instead of

events^

that
men

practically
clinches
our
taking ercising our leadership and rightr
ful place" or "helping the world
our "rightful place" in the world
when the war is over.; The argu¬ to solvo, its; affairs" in more retment then is concluded
and all cent years, we tried to get Britain
"forward

looking" people will

and

France,

to

apply sanctions
against Mussolini when he went
joice.,
into
Ethiopia, we tried to get
The only thing left to figure
Britain to help us resist the Japa¬
out is what our rightful place is.
nese
occupation of Manchuoko.
Our rightful place after the last
the outcome would
war
was
to exercise a restraint Presumably
over

France

mulating

and

the

Britain

peace

in

re¬

have been the

for¬

treaty,

to

tions

continually hound them in subse¬
quent years to get off of Ger¬
many's neck, to pour money into

have

no

will be

sent to Britain and France which

been
League of Na^-

helping to

rightful

our

leadership,

our

doubt that

we

etc., etc.. I

our

save

politicians
the world

for the next 25 years

they in turn applied to their war
debts
to
us.
Presumably
this
have been

"occupying
exercising

place,

had

same

of the

helping the world,"

Germany which Germany in turn

would

member

a

have

the

just as they
helping to save it for
past 725 and to the world's
been

policy had
;
■;
been a member of the League detriment.;
Nations thus "occupying our
(Continued on page 1639)
!

we

of

our

■

FDR

USO

Efforts

NYSE

f.

Reports

Firms.

.*

.77;.'.

FDR Creates Labor

the

use

Mobilization

The cost is $2.50

which

is

designed

of the Financial Chronicle.

plus postage for each of these

to

hold ' two

months'

issues5

Orders for binders should be

"Expandit" Binder, 25 Spruce Street, New York City.

!

to it that in the

see

nominated not alone for Congress
positions of public influence who have the courage to
declare and who believe sincerely these principles and their neces¬
are

sary

implications.

"

'

'

•

; *

'*

1

'

Diyisionist Tactics
All

be

this, however, must,

regarded

as

but

ominous

as

it obviously is,
continuously tak-

as

an example of what is
(Continued on page 1628)

—

These Are Adequate!
We demand the prosecution of
and

an offensive war, relentlessly
whatever it may cost in wealth, en¬

without reservation,

ergy

human life, until the United States and its allies have

or

complete victory

a

their enemies, * * *

over

We pledge to, preserve the two-party system, to guarantee
1631

the continuance of

1631

of

Chain Stores

Maintain

1631

Bill

Government

Employment

1636

free and private enterprise•

Gains

Tax

;

Trend

at

N. Y.

of Rights

Buying in March...

That

1635

through

Exchanges Report Reacquired

effort and

March

1626

ever

League

Trading

Certificate

Loans

Financial

in

Allotments.,. 1639

present system

our

Clinid....7..

1639

measures

seem

the

force in

energetic

will urge

Specifically,

1639

Default..

Advertisers

safeguards provided in our
for ourselves and for future free Americans.

and

constructive

1626

Government

sacred

of

through informed and aroused public opinion, and
our elected representatives in Congress, we will be a

1635

Changes

Treasury

American constitutional form

present

the

pledge the preservation of

War Plants Exceed 40-Hour Week..

Stock

our

and

1635

Bicycle Sales

Farm Products

government

We further

New

Refcord
WPB Freezes

conduct of

the Administration in

upon

necessary

the

power

war

what¬

to that end,

demand:

we

(a} The selection of men arid women best fitted to do the
job, regardless of party affiliation or economic status; and
also the weeding out of inappropriate and unfit political ap¬
pointments throughout the Government's war machinery.
.

FDR

Signs Marine Insurance Bill..

Mother's

1639

pay-May -10....7v.....7 1639

Henderson Outlines RFC Functions

1627

Reserve Banks Cut Rediscount Rate

1627

Urges Caution

on

Consumer Credit 1627

(b) The drastic reduction of all non-essential

1628

tures

Defers Action on Labor Bills.. .1625,

1628

to

Rent Control..

war

expendi¬

1634

Warns

of

Axis-"Peace"

to

Discuss

Plans

,;Study

War

- v

1634

1634

Suspended

U. S., Canada Agree on

We will

Nelson Addresses Newspaper

S.

Unit.. 1634

Commerce

1629

Nickel Plant 1629

Offers

>,.7 ...,7.7

•

r>

the

use

resources

of

of winning the

the

Nation

war;

*629

Freighter Tonnage..,.

1629

Y.-pavings Assn. Officers. ..','4.;. .1329

'

war

oppose any

emergency

as

*

* * *•

-

effort by the Administration
excuse

an

for the extension in
* * * ~

affairs of unsound economic panaceas.
I"-

We declare

our

7.

V'V

»<•!

conviction that

>• 7■:<*>':,

no

"V i'<4: j

' '•-V

individual,

or

group

of

individuals, should profit excessively from this war and that
should

there
among

:

our

be equitable distribution of its tragic burdens
people.—Republican National Committee. ~

We think the Committee would have better served its party

and

;.♦••••• ?;«

Revenue Plan

Assumes All

Body

to

domestic

Editors 1629

Voluntary Press Censorship.

U. S. to Finance Cuba

the

* * *
vigorously

•jV* ;-;J

1634

Draft Rules 1634

FDR Names Civilian Defense

U.

of

the essential and direct purpose

the enemy.

February Home Loans Soar.;.;....'

sent

conservation

and the concentration of

1634

Urges

the

7.. .7..... 1634

1634

Quotas

and

(c) The elimination of non-essential domestic regulations
our minds and man power against

'

Chapter......;.

N.




job for Republicans to do is to

U. S., Haiti Defense, Trade Pact....

v

to

next

won

Sugar Rationing due in May.....;.

copies against mutila¬

essential to the survival and effectiveness of the Re¬

are

coming primaries candidates

1631

Damage Plans

form. These will facilitate

of the Chronicle and will protect

tion and loss.

binders

new

,

over.

The

Dispute Treasury Views on Capital

Sugar

the Financial Chronicle in its

is

war

1637

1638

Board

Insurance' Group

supply temporary binders in which to file current issues of

.

1633

Opposes Advancing N. Y. Tax Dates 1638

To Head N. Y. AIB

Arrangements have been made with the "Expandit" Binder

,,

passed adopts principles of international rela¬

as

publican Party and of this Nation, namely, an abandonment of isola¬
tionism and a recognition of the necessity for the United States to
assume a positive position in world affairs both now and after the

1637

.

Red Cross War Fund Passes Goal...

Camps 7 .".77

to

tions which

in Member

Drop

Oppose Branch Banks at. Army

Of Our Subscribers

not in¬

1633

Praises

Auto Workers Waive Premium Pay.

Realtors

Binders For The Convenience

we

1633

Camelback for Retread Tires

rightful place" or "exercising our
leadership" in world affairs. "Ex¬

shap¬

ing events, the action in Chicago

,

The resolution

Ruled Mutiny.... 1633

War Savings Bonds New Name

thy Thompson would say, that the Republicans out in Chicago, have

ominous.

1632

1941 Corporate Earnings...

U. S. Debt Limit
...

Yet it must be said in all candor that

so.

1632

Reports

CARLISLE BARGERON

lieve

frequently seem to be in danger of this blunder, and that
the aggressive attitudes of both the Administration and Mr.
Willkie
concerning post-war policies appear to aggravate
that hazard if, indeed, they do not
actually create it. 7
These observations are inspired at this
particular mo¬
ment by Mr. Willkie's insistence that the
Republican Na¬
tional Committee,
meeting this week in Chicago, commit
the party, so far as the Committee is able to commit
it, to
aggressive post-war internationalism.
Mr. Willkie's suc¬
cess in
Chicago appears to be debatable, but that is not the
point. He has definitely injected this issue into the com¬
ing campaign, and he and his followers apparently have no
idea of permitting it to die or even to sleep.
Here is what
-Mr. Willkie himself has to say of the resolution
covering
the subject here in question.
His words appear to us to be

1632

Oil

Halts

.By

to

but for other

Farley Heads USO Unit............

AHEAD OF THE NEWS

we

permit theories about our plans for winning
impede our effort to win the war?
Do the
President, his articulate aides and propagandists, and Mr.
Willkie and his ardent supporters believe such a course to
be the part of wisdom?
We can not bring ourselves to be¬

1630

FDR Proclaims

Wheat

Shall

peace

the

1640

Ask Loan Details...

Banks

Laxity...

ing that the profit motive is still

war

1640

Prices

Oil Agreement ,...... 1640

May Visit Canada............. 1640

relied upon as an important fac¬
tor in the inducement of extra¬

"incentive

employees

Weekly Electric Power Output

Automobile Financing Again Lower 1636

he

system of govern-

a

1639

1635

on

The legislation would

war.

provide

to

Weekly Steel Review........
Moody's Commodity Index...,i....

through

national

a

labor policy.

or

shops for the duration

open

of

establishment

plus 8% of the cost
of the contract and freezes closed
and

cut

management-labor

"•

relations for the duration

to $6,000

more

of

bilization

work

to limit profits

proposes

contracts

war

basic

industries from 40 to

war

hours,

It provides for
the

of

would

week

10%.
He also expressed
opposition to Congress enacting
restrictive
labor
legislation,
preferring instead voluntary sta¬
wages

ative
Smith
(Dem.,
Va.), was
presented to the House Commit¬
tee

48-hour

the

introduced

and

him

Copy

1626

1627
limit on navy contracts General Review......»♦ .'.v.
$10,000, - outlawed
closed Commodity Prices—Domestic Index 1636

profit

special anti-inflation
The President also in¬

address

to

The original

early

1

■

fees

assessments

Roosevelt

a

message.
tends

President

send

a

;\-;

.....

Moody's Bond Prices and Yields...

to

w

Adequate!..........7....

These Are

doned by the House?;; group on$——
April 20 in view of the announce¬ tion

next week

Price 60 Cents

the legislation now before that group calling for
Financial

plans

Section 2

"All Out," Too...> 1626

shop conditions, and a limitation on war profits and union initial
tionr fees.1
-E'/ vf''' 1
Discussion ■ of the various rmOasutes ^

that

-

GENERAL CONTENTS

suspension of the 40-hour work week, freezing open and closed union

ment

In 2 Sections

its

country

declarations.

had

it

confined
7

itself; to
■ r

these

or

similar

\

s

Hours

of

industries
duction

;

■

't ,v ^

I

| >**"•<*#."IV

•

.,

American

in

work

engaged

in

war

well above 40

are

Thursday, April 23, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

1626

a

Trade

pro¬

week,

according to a survey of the snift
schedules
of
a
representative

;.5;

Argentina is one of the few

giiliixvAii;.Out/'• To©;
As head of the President's new War Man-Power Com¬

neutral islands in a world

conflict has impinged mission, Governor Paul V. McNutt has been given an op¬
group ot plants just made by the
Management Research Division of
upon the leading SouthAmerican country- is / clearly/-re£ portunity granted to only a very few men in the history
The Conference Board. .Only 10%
At a time when the very life of this Nation
fleeted, however, in the annual report of the Argentine of the world.
of
the
plants studied confined
is at stake, he has received a splendid mandate. ■ By Presi¬
their
operations to 40 hours a Central Bank for 1941, which has just come to hand. The
dential command, without limitation upbn his daring or in¬
I week, says the Board, while 24% document makes interesting reading,—for it deals with
operated 168 hours a week,-or
genuity, he has been instructed to:
.
many problems that will again become of foremost inters
at

war.

,The extent to which the great

;

.

;

the

faround

clock

days

seven

a

144

,15%. scheduled work for
hours, or six full days, and

5%

worked

j week.

less

than

more

seven

than six, but
complete days.

national importance when pieace returns.:
disclosure or two that may well be of

portance for the

announcement

Board's

The

bearing

the

on

vast ultimate im4

Inter-American relations which occupy:

prevailed in

many

''

v

'

■pj for all

in

hours

worked

in

cording

one

excess

shipping becomes scareer, it is evident that this phase
Walsh-Healey Argentine affairs will become ever more perplexing/

the

to

law, those worked in excess of
eight hours in one day. i
Workers'
schedules
varied

inyariably

of
}

programs

and establish basic national

most effective mobilization and maximum
man power in the prosecution of the war;

policy and operating-directives as. may be necessary

ihat either production lags seriously be¬
imperative necessities, or; is absorbing
wasteful proportion of the available supply

appears

low -immediate and
an

excessive and

'

of Tabor.

In the vitally important sphere of international; trade;,
i?
tThe unfortunate truth; is that labor, in the United
Argentina experienced an abrupt change last year," which
considerably in the plants stud¬ still is in cumulative effect. Foreign exchange was so scarce :§tate§^is now organized not; for; production, but against. it;
not in the interest of productive efficiency, but for the ag¬
ied.
In nearly two-thirds of toward the end of 1940 that a credit of $110,000,000 was
the companies ,; employees
During 1941,; on the other hand; grandizement of professional leaders, parasites upon in¬
worked more than 40 hours a arranged in Washington.
dustry, It is organizedgto obtain for labor the maximum
week.
The analysis shows that the United States took ever greater amounts of Argentine
possible wage rates with the absolute minimum of effort on
the work week was 40 hours in products
and, f like England, found its ability -to supply
the, part of each individual, employee, a vicious system
35%, more than 40 but less than
Argentina ever more curtailed by- lend-lease and by - war
48 in 9%, 48 hours in 23%, 50
requirements. The Argentine problem turned from one of amounting in practice to an armed neutrality on the part
hours or more but less than 60
of those who ought in their own interest and the interest
in 15%, and 60 hours a week or inadequate supplies of foreign exchange to a surplus.- How
more in 8%.
Individual weekly- to dispose of that surplus is one of . the current1 problems that Of -society work loyally for the attainment of the utmost
hours schedules varied in 10% receives consideration in the bank report for 194L
possible efficiency.
: /

;

;

j

of the plants.

;

Night shifts have become in¬
creasingly necessary in order to
meet
or
anticipate
delivery
schedules

Government

on

or-

ders, and many companies are
I paying premiums to employees
work

who

them, to compensate
and

inconvenience

the

for

dis¬

ruption
of
normal
domestic
"arrangements that are inevi¬
table. - These premiums range
from

of two

minimum

a

hour to

an

cents

20, but five cents, or

5%, is the most popular.
Referring to the President's
appeal last December to
all
companies producing war ma-

r

terial to work around the clock,
the
Board's
study
concludes

i

j

that

I

tending

industries

these

are exincreasing

and

hours

the number of shifts as rapidly

permitted to do so
by such factors as orders ma¬
terials, labor supply, machines
and local problems.
they

as

'

the

,

^

r

plans and

assure

/./ISuch a task, worthily performed, would elevate- the
responsible agent to the most exalted rank among the states¬
men entitled to the
respect and gratitude of their fellow citi¬
zens.
-/ft.':
M^vWith the first five months of American participation
in the second/world war rapidly approaching its end, it is
qbyiqus that the countryrs- resources of human energy are
not being utilized in civilian production with anything even
approaching -tolerable efficiency; Wherever - one looks, it

active

ac¬

to

and. issue such

pha$e^

of 40

and

week,

.

of

read

"Formulate

thereto."

activities, last year. • It seems almost odd tq
- and
thriving markets for real estate and
securities.
The war problems are pervasive,1 however, and
may work are not restricted to
make their appearance with the question of carrying crops
40 a week by the Walsh-Healey
that could not be exported in normal quantities to the normal
Act and the Fair Labor Standards Act.
Those Acts simply European markets. The State used the reserves of the bank¬
require that wages at the rate ing system to acquire the crops, and thus to avoid a sharp
of time and a half must be paid contraction of economic activities. As the war continues and
out that the
number of hours an individual
The study points

v,

utilization of the Nation's

thought in Washington.
f »-- , '
Conservative in its terminology, the report nevertheless

makes it clear that boom conditions

h

policies

further of;
Argentine

survey

*

said:

•

?

much

Thus, 44% of these plants worked
at lease six full days a week.

.

And it-contains/a

'

are

in the United States-.is
Argentina balanced its accounts with this country
largely through acquisition of gold. This, indeed, is one of
the few satisfactory developments of the last year relating
to the gold standard. But gold was purchased largely . be¬
cause the Argentinians were unable to buy adequate amounts
of merchandise in the United Stated;* and" the report; etfiphar
sizes that public opinion in Argentina still has to grasp the
implications.of .this change.
"•
.
J
The phenomenon of "blocked devisen," which arose
first in connection with the German-Argentine clearing
arrangement, is still another chapter, and art absorbing one.
For Great Britain blocked the Argentine sterling accounts,
As every, informed observer

aware,

and also the accounts of

tries.

I

B

ernment

for

securities

Treasury

investment and other accounts in

March, 1942, resulted in net pur¬
chases
of
$5,814,450,
Secretary
Morgenthau announced on April
The

following tabulation shows
Treasury's
transactions
in

the

Government securities for the last
two

years:

W-

1940—

April

$1,636,100 sold

May

—,—r

;<

934,000

July

—__

August

No sales

or

purchased
purchases

Sf»les

or

$300,000

October

sold

v

a

284.000

December
1941—

1,139,000 sold
$2,785,000

purchased
11.950.000 purchased

February
March

No

ADril

sales

or

purchases

$743,350

__—

purchased

$2,500

sold

200.000

sold

September
October
November

December
1942—

i_._—No

.

or

*

purchases

.

$520,700

sold

'

29.980.000 purchased

February
March

sales

—...—$60,004,000 purchased

,'"A

January

—V——.-T—
i

t

had not previously -been
*

disclosed,

V

/

To alleviate the

problem of blocked foreign exchange,
Argentina began last year to repatriate the sterling debt
owed to British investors. These operations were hampered

5,814,450 purchased
vr."

u-.




r

no

of the

hew doctrine—it dorninaited the Industrial
World/the American -Railway Union, the

Workmen's Benevolent Association, the United Mine Work-

ersr;the Mollie Maguires, the--International Hod k Carriers'
Union,.gthe American Federation of Labor, and others too'
numerous to mention.*""
V
L.

The 40-hoiir week, although an

impediment, is not the
chief impediment to the defense effort—in fact it has be¬
come
only a thinly disguised trick to mulct increased wages
from" the defense industries.
Incomparably more destruc¬
tive of the productivity of American labor are the innumer¬
able rules limiting the functions and: outpul of individual
employees regardless of the wages they receive or the num¬
ber of hours during which; they are on duty. • Under a
typical ^restriction of this; sort, h particular employee bar¬
gains to work a day of eight hours, but is kept idle during
part of that time on the ground that some operation, which
he could easily perform, and which is so closely connected
with his own employment that the latter must await per¬
formance of the former, belongs to another, trade or em¬
ployee and cannot be performed by the employee thus held

in
forced idleness.
For one task a plainly superfluous
degree by the absorptive capacity of the internal capital helper is required; for; another, an unnecessary inspection
market of Argentina. But this did not prevent certain inter¬
by a co-worker is demanded, thus interrupting the produc¬
national operations relating to Bolivia and Paraguay, with
tivity of two employees. / Many rules are enforced all
which countries Argentina established a favorable trad?
limiting the speed of operations and compelling inter¬
balance.
In order to liquidate such balances, Argentina
ruptions of effort by periods of idleness.
The effects of
acquired from the neighboring countries their, blocked sterl¬ these restrictions have been incalculable throughout indus¬
ing, making payment in pesos. Just what use ultimately is try. - | / < '■
• ' ■ : '
. • .
•
|
||
to be made of such additional sterling balances naturally
5|:'- Before the full effect of the war complications which
is uncertain, but it remains highly significant that Argentina
began during ;1939 were apprehended, there was a degree
decided to take up the sterling of its neighbors and thereby
of superficial plausibility in the cry which urged all men
keep its trade with Bolivia and Paraguay active and pro¬ to "spread the work." While many were unemployed, it
gressive.
*
•
;
'
'
•
was natural that many should have become convinced that
It is suggested in the report that the moment may have the
employment of larger numbers, even of numbers un¬
arrived to attempt a solution of the blocked devisen problem necessarily enlarged, would be desirable and .beneficial.
But even the most gullible ought not be deceived into
on
a wider, or
Continental, scope. This might lead, it is
a

.

with

accepting that misleading and mischievous doctrine as ap¬
plicable when all the energy in the country ought to be un¬

has no more use for sparingly devoted to the single and supreme need of arm¬
dollars than for pesos, then the mere territorial extension
ing and supporting the Nation for the great test of its
of the arrangement would afford no genuine solutions.-The strength,
patriotic devotion,; and sound sense, now in
; f *:
Argentine Bank notes correctly that this problem is receiv¬ progress.At the present time, there can be no doubt that, with
ing expert study in the United States, which will be ablelin
the control which the Axis powers have established over
the post-war world to throw its weight on the side of sound
labor, the industry with which that labor is compelled to
arrangements, or on that of strangling water-tight compart¬
pursue its arbitrarily assigned tasks," the long hours, and
.

...

.No sales or purchases
No sales or purchases

July
August

sold

447.000

June

sold

200,000

„

.

which

This< is

sterling and other units.- But if England

sold

:v.i-

■

circumstance

despite its importance.

play

other countries—

suggested, to use of the dollar for balancing accounts

,

4,400,000 sold

November

Januarv

other South American coun¬

Argentina began last year -

purchases

No

September

May

,4

387.200 purchased

»■

June

some

the role of international banker for some

to

Market transactions in Govern-

In this connection

,

Vvorkers

> \

ments.

Like

a

scarlet thread

throughout the report runs the

implication that decisions reached in the United States
be of .vital

importance for all the world.

-

the miserable

pittances which it is. obliged to accept as com-

will pensation, the cost of-production to the Axis nations is insignificant when,compared .1with tbe cost ,q£,the same article
'
-

".vty* *

.

m V.'f

f.

,15 u.

'

'i

,

•

THE COMMERCIAL & FINANCIAL CHRONICLE

Volume-155Number 4066

'

<:

;v?m ,/the,, United7 States.??Even .English-*production, von? a
similar basis of comparison, is very much less costly than
'that in-.this
No

i
y
desires the establishment of Axis or English

eotintry^ U.

one

rates of wages or

States.
that

Far

conditions of employment in the United

from

But

it.

intolerable

nevertheless

is

it

American industry should be today,' in this
supreme hour of exigency and danger, absorbing in its own
activities a very large proportion of unnecessary and super¬
fluous labor that is needed elsewhere and the lack, of which
every

is

crippling and delaying essential production when time is
the precise essence of the need.
The release of? alL such
labor to other employments and industries, where it is gen¬
uinely and urgently required, where it could function to
the advantage of the whole people, has become the indis¬
pensable first requisite of this period.
It is intolerable that
such release should be
postponed. Self-respecting labor
ought not be patient with such conditions and would not
'be, if their full enormity were as generally comprehended
as the
separate instances are known, within his own field,
to every competent observer.
7 77 77;?3.?..
Early and complete success in the war with the Axis
lies readily within the potentialities of such a release of
labor which is now totally unproductive, if the cessation
of this waste is obtained without more delay than necessary

0

for

fair and summary

a

investigation of the facts.' Without

release, the direst { forebodings may come to pass. ;|

such

designation of the War Man-Power.• Commission
a move in the right direction, but it is

The

bv the President is

only that. Jr Everything will depend upon the sagacity and
courage of the man at the head of the new Commission,
Governor McNutt can make of his great assignment every¬
thing that he has the will and the wisdom to discover. 7 The
results will not be long in appearing.
77? 7./;,; .v/??'/?;???
The war cannot be won until the woeful waste of man¬

L

eliminated

power has been eliminated, and it will have to be
in a determined and whole-hearted manner, sooner or

later,

Loading;,of

revenue

freight .for

thie week ended April

11, totaled

;

Functions Of RFO In delation To Business

814,233: cars, according to reports
filed? by^the Yailroads with the
Association

of

American

a

from'

the

preceding

134,425 cars more than the
corresponding week in 1941 and

year,-,

195,128

cars

This total

*

*

handled

77

..

•

? ,

been

advanced

of
;

the American

ago,

Iron

97.6 %> it

that

prevail with the least sacrifice and suffer^

Nation is to

our

the week's turnout

of ingots will
1,651,100 net tons. "For the like
1941, week production totaled 1,549,300 tons. ? v
/

be

Department store sales on .a
country-wide basis for the week

/

???> American labor must also* go ."all-put*? in this ^waiV-

Federal 7 Reserve ?

sales

were

14%

up

week period ended

pared with

a year

Board.

Store

.

for the fourr:

-

American

April 11,

were

paid.

Uy%ivir(

"r

or

1

\

the

1941

same

four

weeks

most -part

decline

to

this year was

due

was

fact

the

if/Retail prices

are

Retail sales

the

one

close

now

to

run¬

/

wholesale
industrial

nificantly, - retail and
failures declined,
but
failures rose.
During

February
10,-

failures were 50 out of every

Jan¬

000 firms in business. During

failures had reached a low
10,000

uary

':VV^ ;?7?

firms in business.

said

is

It

failures

that

among

likely to
increase
unless small
manufac¬
turers are more successful in get¬
industrial

ting

"News-Record"

orders

limitation

pected to shut down civilian pro¬
they have inven¬
hand

on

not.

or

Reflecting the vast expansion
in war work, it is stated by Brig.
Gen. F. J. McSherry of WPB's la¬
division, that 10,000,000 more

workers will be absorbed into our

industries

war

the end of

before

the year.

Thus,

1, the

have

about

will

States

17,500,000 people doing such work,
General

"We

told

an

interviewer.

had

29,000,000 people en¬
gaged in non-essential work last
January 1, and only about 7,500,000

working

he said.
we

000,000
tion.

war

on

production,"

"By the end of this year

shall

tional

need

an

workers

Get

that

additional

in

war

10,-

produc¬
addi¬

straight, an

10,000,000.

\

are

in

-

the

the

799,000,

creased

$610,-|

500*

September,
when
the
of the harvest is over, we

looking for about 400,000 ag¬

ricultural

workers

to

the

of

The

war

names

of

war'

March .total! listed

highest

acceleration

37,1 production effort.
/

plants in 32 States were
by? the ?War
Production

as

full-fledged participants

drive

for

increased

arma¬

production.

Indication of the process

of con-'

construction/,

to? war:

version

of

..'. All have established

joint labor-

as

compared with 47% of the 1941'

first

quarter

The

F. W? Dodge'

total,

Corporation states.
electric

73V

^

light
distributed

existing machinery.

-

77 7 s'? 7

.

? The 500th report accepted-was
received

powerj
3,320,858,000!
and

ulate;^ 25% increase in output

v

craft

from thef Douglas Air¬
Company, where the labor-

management

committee

said

one

hours of electric power,
plant alone had contributed some
during the week ended Saturday,; 5,841 7 suggestions
for
speeding
April 11, the Edison Elec.tricAIn- production. -• "Suggestion
boxes,"
stitute disclosed. This was a more to which all
employes may con¬
than seasonal gain for" the week.
tribute, are an important feature
The output was 1.2% higher than' of the
production drive.
?'; *. - /
the previous week, and 14.3% over
T The WPB said no accurate es¬
the comparable week during 1941.'
kilowatt

timate

was

-available

to

as

the

type of

mail

come




-into

improvement over
week was 3.8%,.

the preceding

into

grand

total

millions."

therefore
-

■

-

which

paper

few

a

acquiring from large

are

order

houses

finance

and

<

? 'companies,

where the bank's
safety is dependent wholly or
almost
wholly
upon
the
fi¬
nancial responsibility of persons
cattered throughout the coun¬
try whom
the
bank
doesn't
know or have any record of and
•

.

; •

•

>who, in
that

do not know
obligation has been

some cases,

their

/transferred to the bank.

to

Special advices to the New York

ol

quoted
••

Mr. Upham as
? - 77?7./ v-V.: ^

•

"

said:
7;

/?'7'• '' •'"/?;?'/• -7'?•;'■":'?'-???

-•

26," 71942,

March

On

President issued

it, and it is wholly appropriate

Executive

an

of

ing

for banks to furnish that credit

7; but they should do so with their

;

for- small

contracts

to

engage

the

in

war

from finance com¬
panies and merchandising firms

sumer paper

?

of

?;effort; thus additional-facili-/ties have been made available
local

the

for
r

service

and

banks
war

?to. participate
7 the.

time

Reconstruction

and

types

should

you

magni¬

look

the

to

true essentials of the contract."

Mr.

loans,

loans

in

various

tudes,

make /

to

* * * In taking con¬

eyes open.

-

?; business enterprises to enable ?
? them

will of necesjsty need cred¬

ers

the

Order to facilitate the finane-

with ?

;

Finance 7

Upham warned that if

a

few bankers "sow the wind of
increased

credit they

consumer

"

and all bankers and their felassist 'in
spreading defense orders 7 3 Tow-Americans will reap the
whirlwind of higher prices, unamong smaller enterprises, in 7
?■• just and ill-balanced re-alloca¬
procuring strategic and criti-

Corporation,

r

7 cai

materials, to join most ef-

tions

?

cooperate
100%
with the War Department, the

'

such

1

carrying out of this pro¬

V

_

reduced

.

•

that

of

possible

shortage
by

winter

and

fall

York

New

made to

dealer

Ixk%

r.

or

or

next

a

similar

-re¬

at

recent weeks

in

rate

had

in

been

Reconstruction

on

retail

poration

all coal

effect

at

Finance
make

As

Corpo¬
loans

participate

we

19,

with

most, helpful to the retail
dealers / if
these loans

the
in

case

New

referred in
page

discussed

insti- ?

coal

in

address

the

other lending

Finance

participating

Cor¬

there¬

in.

tutions. We feel that it would
be

follows

made

11,
1935, and at the Kansas City Bank
since Sept. 3, 1937.
The most recent
lowering of
the rate was reported in our issue
of April 9, page 1448.

reason

cover

purchases

will

rates

the Cleveland Bank since May

mines
prior to Aug. 1, 1942. The Re¬

direct

rediscount

to 1%,

various other Reserve Banks. The

shipped from producing

ration

City have

difficulties

transportation
be

their

action

duction

might be averted. These loans
will

Kansas

of

Banks

Reserve

and

in effect at all the Reserve Banks.

This

City
on March 6, 1942, the Recon¬
struction Finance Corporation
has inaugurated a program to
assist retail coal
dealers in
immediately building up their
coal stocks in excess of pres¬
ent normal requirements so
in

and
in

grow

effective April
11, 1942, thus making a 1% rate

Since I addressed your As¬

sociation

Federal

Cleveland

from 1 Vz%

' '7/7'?-7;:

Mr. Henderson also stated:

which
?.

evils

soil."

Cut Rediscount Rate
The

Banks, and with any
lending institutions in

Reserve

the

income,

institutional

and

bankruptcy and the social
•

Navy Department, the Mari¬
time Commission, the Federal
other

and

property

political

will

RFC

of

individual

without saying that the

goes
7

to^

fectively in the war effort, in
the end to bring victory.
It

banks

the

by

banks

that

credit repre¬

consumer

sented

? "Do not misunderstand,," the
speaker said. "I am not urging
in order to quickly and ? that all consumer credit be cut
effectively complete / this neces¬
off; or that banks will refrain
sary Government program." As to
from
making ' small
personal
financing for small business he
loans. On the contrary, consum¬

regions of the country.
In New, cials noted that three of the 500
England
power, output
gained companies had a total of more
3.1%
over
the previous week; than
500,000 employes^and that
the

war

this field,

construction

Southern States

of

organizations, skilled in

and

men

The
greatest improvement
number of workers already en¬
throughout the country was noted
listed in the campaign, but offi¬
in the New England and Southern

while in the

uncertainties

credit—"especially

sumer

made

utilize the brains and facilities

management committees and have

on

the

try." ^ We endeavor,'? he said, "to

gram.

is seen in the fact that' undertaken
the
various
promo¬
72% of the 1942 first quarter dol- tional
programs designed to stim¬
lar total was for public projects.'

?

•<

post-war conditions would
leave their
mark
upon
con¬

?■ ?,?/

undertook

Henderson

reporting

and

,

"After

peak
-

/?(

Eastern States amounted to

industry

;

January

by next

United

the

month

that

"Times'"

sharply, and this no doubt is play¬
Corporation ing a'lSubstantial part in the in¬

construction ^contracts

total

awarded ..last

being

at

The Deputy Comptroller said

approxi¬

?;7..?3?-.?

"Sun"

saying:

.

purposes

3?

bor

reported?

Dodge

as

Advices from Chicago to

point out that "the RFC is not in
competition with private indus¬

? The labor manager board move¬
7
ment ; is
reported as expanding

ex¬

are

ducers whether

tories

said

F.yW.

73*7?

<

$438,551,054, compared with $344,.127,773." in March last year. '.7-7?./?

since 1937 and almost • $131,000,|| Board
than they have
000, or 27% greater than the same in the
the past. A growing nummonth in 1941. ??-?7
??'v?'?",| ment

of

ber

The

- •

/?The 88 reporting railroads had
estimated operating -revenues of

work

war

been in
-

are

concerns

week

second

Upham made this state¬

New. York

;

—

_

? ended ; April -16,
amounted to $148,577,000,>an in*
crease
of 124% over $66,208,000)
in the comparable 1941 week, but1
40%?: below $246,344,000 in the
preceding week,' "Engineeringi

of 45 insolvencies for each

the

for defense and war purposes. ?
Mr.

the

this further stated:

$12,500,000,000

aggregating 7

im¬

gains have been

recently.

the

in'

Association

ration has made commitments

the

20% above the levels of lastyear.

;

business.." Sig¬

Chicago.

? than two years,—this Corpo-

in

that

and

addressing in Chicago on
April 17 the Credit Clinic of the

s

reports, t The

Mr.

ment in

ended

New York: Federal Reserve Bank-

opinion

purveyors of credit to war indus¬

tries.

/
outstanding.
week,' but in
? In contrast to this, and since
April 11
entering into the defense and
were 8% larger than in the com¬
war effort,—a period of less
parable period a year ago, the

in

the

•

in existence out of

Bankers'

He added:

Comp-^

American Bankers' Association

Payments are
on
the balance

16% smaller than

Business activity, showed

1"

lic

$11,485,000,000, of which
nearly
$7,900,000,000
was
dis¬
bursed, and on which over $6,000,000,000 or 76% has been re¬

ago,- V?.

Deputy

ham, bankers in war time have
two
important services to per¬
form; the first as molders of pub¬

mately

/Department store sales ip New
York .City: in
the week ended

to

troller of the Currency C. B. Up-

handled

war

Mr. Henderson spoke before the

.

•

According

contracts.

war

April 11, com¬

■

•

for

loans of

slight weekly setbacks in sdnie ,oLthej ning about'25% ahead of last year
Targe industries, but on the whole?business expansion continues ,on1 ip^receht months, the Federal Re¬
the increase! War production is swelling, and in a good many-lines serve Board' index of department
it can well be described as booming, It is pointed out that the physi¬ store sales, during March reach¬
cal volume of industrial production is now about 50%,-greater than ing
122%^f the 1923-25 average.
it was at the peak of prosperity in 1929..- However, the business pic- The 25% gain is expected to con¬
ture is not altogether pleasing.^
<$>
tinue )over?the next few months,
Failures among small manufac- war factories.; We're counting „on indicating that in terms of physi¬
3.turers of • peacetime - goods 4 who , 2,000,000 new workers this year-r- cal * units? sales
may -be
only
have been unable to convert to young men just out of .'school. JJ slightly above last year.-?? r?
/T
'
'—i-'L
J i..
L 'Jl ^.'1
In view of the tremendous surge
war work are now being reflected
Estimated - operating ? revenues
increasingly in indices of insolv¬ forward of war production work, of 88 Class I' railroads, represent¬
most heavy industries^are oper¬
encies.
>.• ? ■v'-;r':VVr- ?/:? ?'
ing 82.7% ;pf total operating rev¬
7
Dun & Bradstreet, Inc., data re¬ ating at or close to peak [levels,
enues? increased 27.4% in March,
s/veal that commercial and indus¬ showing wide margins above last compared-with
March, 1941, the
trial
insolvencies, during March year's figures in most instances./? Association of American Railroads
forced 53 out of every 10,000 firms
Engineering construction awards; reported

???/

needed

On Consider Credit

:

mili¬

Credit Clinic, and in his remarks
April 11, decreased by 12%
he stated that "from the time of
from the figures
for the same its
incorporation until July of
week a year ago, it was shown in
1940, a period of 8V2 years, the
the statistics made public by the
RFC authorized

mediately after Easter, while the
week-ended April 12, <1941; was
the week .just before Easter. .. ,/

The State Of Trade

of

ended

week

'C

Uphm Urges Baulion

chiefly to business concerns
for working capital to enable
them to carry out defense and

•

if

.

through Defense Plant Corporation; and " ? '?''""■????";;'?;?'
(3) war production loans
made
directly by the RFC

■

Steel

&

estimated

is

7

.

con¬

equipment

manufacture

the

ucts

Institute announced.
At

.

tary supplies and other prod¬

ingot capacity

this week against
97.2% last week and 99% a month

machinery and

for

of

97.6%

.

7

struction, and the acquisition

•

to

Defense

and

(2) financing of plant

„

Operations of the steel industry
have

supply of essential raw materials
Reserve
Company, Rubber Reserve
Sup<S>
■
—

a reserve

plies Corporation;

loadings for the correspond¬
ing'week of the 10 preceding
.

Hen--'

Metals

aver¬

age*

years/?

through

Company,

"

135.61% of

was

(1) purchase of

??

above the same period

two years; ago.

F.

derson,: Chairman of the Reconstruction Finance Corporation stated
in Chicago on April 17 that "our major defense and war
operations
fall into three general groups:
J '

this

week

Discussing "RFC In Its Relation to Business" Charles

?r

public today. This
v decrease • of
14,657 cars

And War Effort Outlined By Henderson

??

:

Rail¬

roads and made
was

1627

of

our

1154)
the

his

March

issue of

Mr.

Maych

Henderson

of
Corporation,
Defense Supplies Corporation,
Rubber
Reserve
Company,

Defense

6

York, (to which

workings

Plant

the

the
the
the

*

"runs

were

-

through their local banks, the.

originated and serviced

Metals Reserve

Company, all sub¬

sidiaries of the RFC.

THE COMMERCIAL & FINANCIAL CHRONICLE

•1628

Warns Of Axis

has

^Peace' Offensive
that "an Axis offen¬
psychological front" is
Archibald MacLeish, Director of the Office of
Facts and Figures, on April 20
;

,Warning

on the

the

in

making,

called

American

the

in

many minds that
distinguish between
ing place in this country, as a single incident, although a those who dissent from
proposed post-war policies and those,
significant one, • in a long course of broadly similar events. if
any fwho are luke warm supporters of the war effort or
Indeed the evangelical Mr. Willkie is by no means
willing actual
ob^rwcllohists. v Adistinct disposition^
to confine his efforts to national politics or national
figures. deric^ to insinuate That
pre-Pearl Harbor bon-interventionIt can no longer be doubted that he fully intends to
bring ists are
ipso facto -suspect. *
to bear all the influence he can exert to the end that Re¬

to

press

L

>a>:

...

(Continued From First Page.),

there

.

was;

•

the people through the publican candidates or nominees for local posts, notably
"strategy of truth" to meet the the
Governorship of the State of New York, not only be
danger of an Axis "peace" offen¬
ardent supporters of our war effort (which he is said to
sive this Summer. Speaking be¬
fore 600 editors and publishers at take for granted) but likewise out spoken, and. ardent ad¬
the annual meeting of The Asso¬ vocates of Mr. Willkie's
type of post-war internationalismciated
Press
at
the
Waldorf- whatever that is—he has been none too
explicit in the
Astoria, New York City, Mr. Macmatter.
In fine, the titular leader of the Republican
Leish
asserted
that a
"peace"
offensive is an "offensive in poli¬ Party is plainly determined, if by any means;; at Jus dis¬

The

prepare

,

tical^Warfare;and political war¬
fare is warfare fought with the

journalists and publish¬

weapons

trained- to use
the
of • ideas and words."
"it can be met
and turned only by the employ¬
ment—by the most skillful and.
most
effective
employment—of
these same weapons."
Declaring that the "strategy of
truth"—as opposed to the frauds
and deceits practiced by the ene¬
mies—is peculiarly applicable to
the propaganda attack observers
now
foresee, Mr. MacLeish fur¬
are

ers,

weapons

He added that

,

,

stated:

ther

To

themselves
"peace" offensive,
people need to
know what a Nazi peace of¬
fensive is. They need to know
for
what i purpose
a
Nazi
peace offensive is made and
prepare

against

.

a

the American

v

the end is never

but

peace

and that
the inevitable consequence to
always conquest

—

the Nazi victims is defeat.
If the American people are
informed in full of these pur¬

and these effects their
defense will be assured. They

poses

5

V- will know how
those

who

"peace"

with

deal

to

the talk of
them: and so

urge:

upon

it i * is ' proposed • to
them^in -terms:M a negotiated
"peace
or. in
terms
of
a
whether

•

>

^

negotiated ."victory," or in
any
other terms. ,For they
know then

that the

one

possible to those who
fight this war for freedom is
peace

-

,

the
peace
that
freef men
make—and that the one vic¬

tory conceivable to those who
their victory tof serve
the cause of freedom is the
want

v

victory their courage and

en¬

durance win.

Senate Defers Action
On Labor

Legislation

Senate consideration of restric¬

labor

tive

legislation,

scheduled

"to

be taken up on April 20, was
deferred
until
after
President

Roosevelt next week submits
program

to

inflation.

Congress

Senator

to

his

combat

Connally

(D.,

Tex), whose bill to seize strike¬
bound War plants and freeze the
labor relations in them had pre¬
ferred status on the Senate calen¬

dar,

acceded to a personal re¬
quest from the President not to
his

press

tion.

motion

The Senator

lowing

a

for

considera¬

explained, fol¬

meeting with the Presi¬

dent and
ers

velt

on

his Congressional lead¬
April 20, that Mr. Roose¬

had

authorized

him

to

say

that he expects to send a
message
to Congress early next week "re¬

lating to

the

establishment

of

a

general national policy regarding
the cost of living and all factors

relating thereto, including labor."
Mr. Connally added that, since the
request was made in the presence
of the

Vice-President, the Speaker
the House and the Majority
Leader of the House, it was not
only "personal, but official," and
he felt under "imperative com¬
pulsion" to accede.
of

Previous
bor

postponement of
legislation by the Senate

referred

to

in

these

la¬
was

columns

April 9, page 1442.




certainly and most obviously not the
cooperative war effort. Nor is
to envisage what the forthcom¬
ing campaigns are to be like if cast in this mold as so many
of our. leaders appear determined they shall be.
It would
be difficult to say how much of ah impression, and what
sort of impression, this sort of thing is making on the rank
posal he can, to make the Republican Party at least as in¬ and file.; In other circumstances when peace and
reasonably
ternationalist as regards post-war policies as is the Demo¬
good feeling existed in the. first place we should father ex¬
cratic Party.
Meanwhile the ultra-internationalist Presi¬ pect the American people to prove themselves too intelligent
dent Roosevelt so completely dominates . the Democratic
and too much under the influence of common sense, to per¬
Party and so constantly and regularly, either directly or mit this confusion of issues to be profitable Jo the politicians
through his various propagandists, virtually reads > out of or to arouse too much animosity in their own ranks. These,
the party any individual or group which is unable to go
however, are emotional times, hatreds abound on all sides,
the full way with him in questions which have to. do with and
we know from the experience of recent
years how men
foreign relations, that there can be little question of the like the President and those about him—to say nothing of
position of the Democratic organization.
Mr. Willkie—can play on men's passions.
It may be, as a
Now both the President and Mr. Willkie have

way to promote unity and
much imagination required

repeat¬ former Republican National Chairman says, that "there is a
pressing need to convince our people that a man or even a
party could have honestly stood against our participation
in the war prior to Dec. 7, 1941, and yet since that date be
eagerly and keenly desirous of rendering every assistance
to the, successful conduct and conclusion of the war."
We

edly and correctly asserted that to put forward our best
war effort—and
nothing short of our best will answer the
purpose—we must all work together in the greatest possi¬
ble harmony and unity.
Now both must be well aware, as
every one else is, that there are a great many citizens of
this country who while fully aware of the
necessity of
winning the war and fully prepared to do all they can to
win it, are now no more than they were before Pearl Har¬

-

'

will

Campaigning to Come

Now this is most

should

certainly hope that there is no such urgent need, but
well be, and if there is, the coming campaigns,
assuming they are conducted by the so-called international¬
bor internationalists of the Roosevelt or Willkie school. ists as
is now indicated, will certainly not be conducive to
They must know, moreover, that these groups are to be harmony or help the war effort.
found in both major political parties.
Whether they are
If the campaigns are permitted to degenerate into such
in the majority or the
minority, taking the country as a bitter and senseless contests,
many issues which have a very
whole, there* is no way of knowing.
Nor is there any way direct and vital
bearing upon winning the war will, more¬
to know how the people will divide on such an issue when
over, almost unavoidably be sidetracked, or become so en¬
the war is finally brought to an end.
What is. certain is
tangled with extraneous issues that the people will be foiled
that this country at heart is not by any means overwhelm¬
in any attempt to get first things done first.
There are, we
ingly internationalist in the sense in which this term is
believe, quite a number of matters aboqt which the people
currently employed.
!
ought Jo, give, clear mandates this autumn/ ancl wd are much
Win the War!
inclined to Jhinh they will if they do not become *£?onfiisefd
This country is, however, very! much ^ar-mindedl ; It with irrelevances.. For one thing
they will, we "brieve,
is without a shadow of doubt insistent that this war be want to tell the Administration
plainly to have done for the
won and won as
expeditiously as 'may-, be* It is, ..we be¬ duration with this eternal coddling of ,labor, pamperjmg the
lieve, far from satisfied with the way the war is being con¬ farmer, and brow beating business.
It likewise wishes an
ducted—not so much perhaps, possibly not all, as to mili¬ end at least
during the war to not only many of the alpha¬
tary operations as such, but as to the way in which what betical agencies, such as the CCC, NYA, but likewise the
may be termed the economic and industrial aspects of the fol-de-rol in which these multitudinous organizations have
struggle are being managed. At any rate, the attention been engaged during the past eight or nine years. It, we
of the people is focused upon the war itself and the win¬ are sure; senses the sham in the
repeated assertions that
ning of it. In its determination that it shall be won and these agencies are engaged in essential war work. It under¬
in its demand that any and all impediments to
winning it stands, we should suppose, the breadth of the term "essential
be promptly swept aside, there is virtually complete una¬ war work" when
employed by groups which condoned if
nimity—the "unity" which virtually all leaders have been they did not actively approve all the. "coordinators"* of the
demanding and for which a great many have been praying. OCD wh^n Mrs. Roosevelt and Mayor LaGuardia were in the

with what end in view—that

?

f,

Thursday, April 23, 1942

S1IITHE FINANCIAL-SITUATION lillll The^ pse-of;propaganda^^^ impression in
makers
ceHaihly left The

r-l.S *■:

*

sive

-

of

It

seems

to

us

that it would be

a

there may

.

blunder of the first order

saddle.

.It,must.realize

that

whatever

war

work

these

of

magnitude to inject iAto this situation an issue which is groups are doing could be done much more efficiently by or¬
highly controversial and surcharged with emotion. It ganizations designed for and accustomed to getting things
scarcely seems to us possible that the injection of it could done rather than spending money or boondoggling.
fail to impede the hard, grim business of winning the war
More Work Ahead
by a completely united effort.
Were we to venture into
the realm of political strategy, we should also expect to find
It has already succeeded in obliging the Administration
the injection of it to prove a political error as well, but, to effect wholesome changes in the operations of the OCD,
however that may be, we are certain that it will not help to centralize management of war
production in the hands of
win the war.
an
experienced business man, and to effect other greatly
But there is rather more involved in the current needed changes in Governmental machinery^ and manage¬
situation than the mere injection of an essentially extraneous ment, but there is a great deal yet to be done.
Of the re¬
and highly controversial issue into the approaching political maining tasks, the general public is doubtless aware of some,
campaigns. In circumstances such as those now existing but of others it needs to be told. There is the waste and
the manner in which issues of this sort are injected is fully extravagance, inexcusable callousness about the peoples
as
significant as the fact that they are raised.
Those who money in: the war effort and outside it, from which the at¬
would commit us now to some undefined post-war course tention of the people is from time to time diverted by
of what is now termed internationalism could scarcely be bland assertions that the country could "stand" this or
less statesmanlike in the presentation of their case.
In this that astronomical amount of debt, or by childish reiteration
day of "smear" propaganda and political pleading this man¬ of the obvious but pointless truth that it is cheaper to win
ner of
Of course, the people
supporting even this cause may not be particularly the war at any price than to lose it.
Of course, they are willing to pay
surprising, but it is to be regretted nonetheless. Even at want the war won.
this early date, long before the autumn campaigns really whatever is necessary to win it, but there is no reason or
have gotten under way, there has been what appears to be excuse for, loading expenses upon them which are in no
a studied effort
by the Washington propaganda machine— sense essential to winning the war, which in point of fact
yes, and even the President and in one degree or another may well "make the winning much more difficult.
The
Mr. Willkie—to brand all dissidents with opprobrious terms fact that at best the war will cost us undreamed of billions
—"fifth columnists," "sixth columnists," "dupes," "Clive¬ is all the more reason to be as economical in all expenditures
den, Sets," "unwitting abettors of the Axis," and many as circumstances permit, and to avoid
altogether those
more.
If there has been no intent to accuse all whom the which are not essential.
The oft-repeated assertion that it
"internationalists" consider "isolationists" of being war makes little difference whether we come out of all this with
"slackers," or some 1942 equivalent, gross carelessness in a debt of two hundred or two hundred and five, ten or
.

Volume 155

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4066

-

sponsibility

/tweqty-five billions (of: dollars/^omes; very-close to beinga
tacit admission that we shall go ; bankrupt' in any event.
.We;;think the/public Msibegipnihg to understand, at .least
something of this situation, and it should have an oppor¬
tunity to consider the situation calmly ? during the coming
campaigns and toy register - its :{consideredTcpnclusions on
election day.fe/ft? f/
/i*
j<:
Then there, is this eternal, itch to. niahage,' ttov,icoptrplt
to regulate, to run everything from Washington.
It appears
to be supposed by many that the more regulation we have,
the more everything arid everybody isv 'obliged to await
word from Washington before doing anything,: the.better
we are getting along with this war.
This type of doctrine
has been so assiduously preached for so long that it is to

is

going on around them. It may,
in other words, lead him to print
more, not less, so that his readers

which should be | thoroughly tlireshed
ing the autumn campaigns.; |
V/.'•*"•"• ■

40-hour week

are

tax

A

believed

hour week law

prevented.

recommended

Also

The

Chamber's

The

a

.

Speaking

layman, an or¬
dinary newspaper reader—one of
your customers, if you please—it
seenis tothat part of this dif¬
ficulty may have been due to the
fact that some papers fought this
issue
out
on
a
partisan basis
rather than by presenting all of
the facts

as

3.

created

and

effective rate
with

tax.

,

most

a

assuredly did

ordinary:circum$tances;c611ide with> these laws.
All the assurance that business:.meix. havei been able tor obtairi that thby will motJat srime later/ date . be* - hailed; into
'court as a result ofrnUch of the cooperation now-demanded

that situation

Washington^"There! iswpee'df^
; vide :the protection; that as.; aUegedly;giy.em, but ? which; is
[not worth a 'great; deal jtsf experience shows.vLV;/
These and' similar-" problems and; questions- are those
.which should be the warp anil woof of the
debates
-this summer and? autumnU Ttoeyvar^ho^
Tort* is, to be^ made; by the' Apministratioh- an
leaders
of the Republican ^Partyj qrj either'of the^;-to' have ad¬
herence to- some nebulous policy of irit^n^tibnalism for
-the postwar years a .sine qua Hon of ; hplding public office.

V

:

Voluntary Censorship
Called UpTo

Editors

Pride, Director, of Cen¬
sorship, told newspaper editors on
April 16 that once more freedom
of the press is on trial and warned
ent

system

ship

of

depends

voluntary

9.

censor¬

the

the^ publishers

on

poli¬
individual publications.

a.talk

before, the annual

American Society
;^ewspapery;|]ditqrs» at; New

The

York

11.

v

; :V

est.

Society's annual banquet, at the
Waldorf-Astoria- - Hotel - >iri ;New
"York on April IT told'the gather¬

on you

coming," * he

-

bone,

of all essential

activities.

.

or

the

like

.

that, it. must- not: present

Finance Guba. Nickel Plant
■7

The War Production Board

nounced

on

'

April- 15

an¬

that

,

,»rx

v.jr.t ;•»•*;.«>

'




An

ex¬

tax—essentially

levy—has no place
emergency fiscal policy.

a

in

Shipping Administra¬

ocean-going

all

cargo vessels

citizens,
it
April 18 by

the

tankers
and
dryowned by American
announced on
Admiral Emory S.

was

Whenever the President shall

the

another

,

j

$3,200,000,000 on existing!
taxpayers," said ~ Mr:i

individual

"is unsound, unjust and:
unnecessary." He added: /
•
'- ,

Alvord,

-

-

llJfl

estate

i

-

.

.

u

flow of income that

a

annually taxed.

The War

war.

With

,

.precisely in a. critical hour
this one that the right to cri¬

clearr picture -of • their .situa- printed w<jird/tion, 'i; They are dependingv on
.•".V-if.
'v....
v^If his. consciousness of his*
/•you to be fair—to put the good

r»v\

be

tion? has requisitioned for use [by
the * Goverrirrierit 7 all- essential

ac¬

<

•

..

a-

i'rri

duction of

non-war

r

i(>

;

capacity
means
only the production of war
goods and services but the pro¬

Assumes; Freighter Tonnage

>

to

;

Productive

not

capital

the
United-States will; finance a $20,ticise, and the right; to point to
{ It will be collected frQm sav-j
000,000. project in- Cuba for-.prot :*
unpleasant1 facts, are of the high-i
ings, not from consumption exduction of critically needed nickel.
est importance to all/of us.
Yet;
penditures; > and ' principally
in all humility 15would like to According to the^ Associated Press,
from the savings of the middle
the' Nicaro"Nickel Co., with furtds
suggest that the? exercise ;bf those
income group with, earnings; of:
Supplied:; by " the; Reconstruction
rights today must be governed asl
$3,000 to $20,000. It will par-:
responsibility., that ^has ,eyer.r been never before bv the clearest "in-i Finance Corporation, will build
alyze private investment/which!
put upon you," Mr,'Nelson said: : telligence, the heenest devotion toi and operate Hhe plant; for the
is
dependent upon • the group
The -people of -America -are the public-good, the most careful',
United States Government,' pro- ; able to save a part of. its ^in¬
depending on you to give them weighing' ^ ' the "- effect of- the
come.
It will confiscate small
r

The

impairs~the productive capacity
of the Nation. *

new

of

•

reduction,

engaged >in • such * enter; are
directly ; affected.
resulting
demoralization

prises

an

Government

All. who

estate.

,

course

'Today," he continued * "the com¬
bined y production*
of ; v America,
•Russia and England undoubtedly
is greater than the combined Axis;
production."
V.y*
i:ii
Pointing - out ~ that ' newspaper;
editors "have today .the - greatest

- -

•

the

in

,

placed. :I ^personally do not be¬
lieve, that such a day will come.

ap^vUripiea^nt£ -jfect&Zdi, It is of

.

/

are

in¬

particular company

•

labor, and Govern-

'production effort- X We are over:
•the; hump on war < production/'

-

the

to

volved

[
; v" proclaim that the security of
adoption of the rec¬
/)dhe^nationaL'deferiSd^ makes/it
ommendations- he-presented, Mr.
^Siri^^^eeted?|iacte tkrari^f^fcethpr/iC?^^
advisable
or
during any na¬
to prove a case.;
Mr. Price also said that there Alvord estimated the Treasury's'
tional
emergency declared :by
was no contest on
receipts during each year of the*
censorship "be¬
proclamation of the President,
current income! ::it" shall * be > lawful
What does all of this -mean,f in tween. the /Government and the war »(assuming
for
the
should aggregate
morej
editor"since.' both; ^are on the levels)
ebherete^rn^^
(Maritime) Commission to re¬
than $30,000,000,000.
/
It certainly does not mean that same team.% - „ ,0. >
;.
quisition or purchase any ves¬
the press -must ^abstain from criti?"The Treasury proposal to levy
sel or other water craft owned

•said,j*at a time. when, we can seej
[daylight ahead in .our whole war; cism,

.

dustry of excessive estate taxes
are
unfortunately not confined

treme

.

elimination

The

Osgood also stated:

The injurious effects upon in¬

*

whole-hearted spirit, of
^cooperation between big business,!
genuine,

it- is

depending

are

posed by military necessity, and

rmosfencouraging
th ings /any j
.American could hope to see—a.

.ment.'Av "And

They

give them the facts-f-allv of
the facts, within the limits im¬

loss

Mr.

Land, head of the WSA. The ac¬
tion, affecting "several hundred
vessels," which have not been
Mr. Alvord particularly stressed
only, compulsory- censorship can
previously acquired by the Gov¬
be effective."
the need to devise now a tax pro-;
r.,
•
ernment/ was taken under: the
;>"It will be an unhappy day for gram, especially in regard to in¬ Merchant Marine Act of 1936,
and
all of us," he added; "if it is found dividual
corporate income'
which states:: /
that that: confidence was
mis* taxes, to last for the duration, of!
,<

.

-to

ing that "We are: beginning to get
•in-; America /.todayi one :of-5 the

•little business;-

—-

partisan inter¬

or

The

neces¬

resulting in a complete
of productive capacity."

can

tivities.

-

the: whole country ahead [ of

from

non-essential

12.

loss of control and im¬

impossible and actual liqui¬

sary,

tutions.

City, Mr/Price said that the

present

personal

is

individuals,
corporations and savings insti¬

voluntary consership is
American; Society, of Newspaper" Editors that ''we
in effect largely because Presi¬
have not yet won our battle of production," Donald M. Nelson, Chair dent Roosevelt "has put his confi¬
!man of the War Production Board,-, added however that "I honestly
dence in your patriotism and your
believe that we have passed the turning point.
During the "next year
understanding and has turned his
•or so, he said, "we are -going to work.harder and sweat harder than
back on those who argue that
[ever before in our lives; But [welcan see ourselves working toward

cause

produce the things that are now
vital to existence," he said. "In

their

of

the

of

cies that enable the business to

'

(|

*

large

pairment of both the incentive
and valuable management poli¬

present law.

borrowings

Daylight ANe^d In Nation's War Effort

any

to

deduc¬

formulation

yention pf thq

In telling the

have

sufficient; capital stock
/ sonre; cases, the sale of the stock

Federal security issues designed
to attract maximum additional

con-

estates

"A heavy tax may compel
sale

Essential improvements in
so-called
technical provi¬

10.

greater than

tive business.

pay¬

substantially

sions of the

and editors who control the
cies of

in

present form.

that the continuance of the pres¬

the

He said enactment of the

to
preserve
stability.
This is
especially true when the estate;
consists primarily of a produc¬

8. Retention of the provisions
applicable to capital gains and'

losses

"crushing effects" of
gift tax increases
Treasury
has
pro¬

assets at death. Such sales have

indi-

a

14.

and

dation of the business is

The allowance of

the
was

a
dislocating effect at a time
when every effort is being made

15%/;'

Byron

what

of liquid assets," Mr.
Osgood said. "Therefore it be¬
comes necessary to sell a con¬
siderable portion of the estate's

(limited to 20% of net in¬
come) to both individuals and
corporations, for the amount
invested by individuals or cor¬
porations
in
non - negotiable
Government bonds, but negoti¬
able and bearing 2% interest
immediately upon the cessation
of hostilities,
payable in five
annual
instalments
beginning
immediately after the war, and
taxable, when paid, ...at capital
gain rates, but not to exceed

'office in

by
April

amounts

divi¬

to

the

estate

/ "Few

;

cor¬

Vv

interest

on

those in Britain arid Canada.

addi¬

on

the

Treasury rates would make estate

nor-

compensation,

of

of

heard

taxes in this country

tion

t

•

and

7.

from

hour law really is.-

of

also

was

which

graduations

source,

{f

.

Bank

member

a

Committee

posed.

Viduals.

becoming se¬
rious: by the simple process of
making certain that everyone un¬
derstood precisely. what the 40-

r

the

withholding tax, col¬
the

at

dends

war

our

_'

^

A 5%

ments

situation

difficult

t

6.

effect

no

National

and

termed

Corresponding excise taxes
services, etc., which are
subjected to the retail sales

lected

First

His remarks concerned

upon
not

the

House

for necessities and luxuries.

5.

excess

Chamber's Federal Finance Com¬

approaching 10%,

appropriate

But it will have

mittee,

v

effort no good wahtever.
I think
thepress- could have. prevented

'\vould under

of

of

$1,000,000,000.
%
4. A retail sales tax, without
exemptions (except for direct
governmental purchases) at an

a

on

Roy S. Osgood, • Vice-President

produce at
an

taxes

in controlling inflation. •

incomes

current, income levels

revised

were

age.

tional

giving
the public the chance to decide.
The public anger that was gener¬
ated

net

than $25,000.
Increased individual

mal and surtaxes to

both sides and

on

Levy

$11,000,000,000,

—

of less

naturally

indignation

more;,than

Chicago

tax of 10%, with

having

porations

believed that
indignant:

who

a war

appropriate adjustments for

naturally

very

their

and

of knowing What will later i be
[adjudged good for tips, country arid. any allies; which we
may meanwhile acquire. :Then there is the related ques¬
tion of the bearing of oUr aritiftrust la^ uppmactivities that
'Ariiericari corporations are now asked, not. to say ordered,
to engage in. , A, good many of them without question

spoke at the

recommenda¬

.

25% and

law which

took the for in of demanding: that
the law be abolished without the

many

who

the Chamber

made to define , true normal
'-profits.
2. A corporate normal tax of

.v.?

American. workers

?

people

were;

addition to "devise some way

Nelson,

by

profits reaching as high as 100%<S>
during the war period, "but only
after every effort has been made ;
to define true-normal profits." .

from working more than 40 hours
week under any circumstances.

-managers: of our* large corporations are • urider [ obligation
to guess who is to be our next enemy and when—and in

Mr.

yield

a 5%
levy on gross
incomes, was recommended to the House Ways and Means Committee
April 14 by the United States Chamber of Commerce through the
Chairman of its Federal Finance
Committee; Ellsworth C. Alvord.

40-

the

that

was

slightest delay, so that we could
get into full-time war production.

victory."ri-.;.,

to

mainly through a graduated retail sales tax and

a

.

Sees

designed

program

i

:

on

for two

room

Proposes;

Retail Sales Tax, 5% Gross Income

usss

merits of

the

to

as

Americans

others, j There is the thoroughly, foul
campaign to make what at worst are. violations of the anti¬
trust laws appear to be subversive, activity on the part of
•American patriots.
At times;: it is made to appear? that the
There

example.

an

as

matter, the amazing fact devel¬
oped; that - large * numbers
of

Other;Issues

1. /.V
.

U. S.; Chamber Of Commerce

the tions, which, according to Mr. Al¬
40-hour week;.- My own opinion vord,
conform - to > the - general
happens to be that it would be a principles advocated by Secretary
grave mistake, at this time, when of the Treasury Morgenthau more
than do the Secretary's own pro¬
our whole wage structure is keyed
to the practice of paying time and gram, are:
,, 1
;
1.
A 100% top rate of tax
one-half for all work in excess of
40 hours, to abolish that law. ■; But V upon
excess
profits but only
after
in the recent argument about this
every; effort
has
been
opinions

out dur¬
*

upon

decisions.

There is certainly

/

Here
:

the facts

of

all

base their

Take the recent furore over the

.

subj ect

have

can

which to

granted.;;;Yet precisely, the opposite is
true.
Of course, a very considerable amount of control
and regulation of many; things is essential to~ such a war
[effort as we have set outupori, bui there are likewise mariy
things that had best be; left to! manage* themselves./ We sUSZpect we are already suffering from over-regulation; • Cer•la inly
any such - total regimentation , of the country and
everybody and everything in; it as is; now under discussion
in Washington ^
a- most; serious; burden dor /the war
effort to be obliged to carry;
j It^ is ^lXr'ywell to set down
on
paper grandiose schemes d:or /5total war"; it is quite .an¬
a.

many more

give his readers the most
complete picture possible of what

3ts essential truth for

is

,

fort to

take

work in actual practice.

then leads

lead him to redouble his ef¬

cases

..

other to make such schemes

shoSild' in*

I believe it-

.

be feared that the rank and file have almost come to

and

now

editor notJ to; print Something
which otherwise* he * might print,
an

1629

X

it

-

ces$ing low-grade*
a

'

large plateau

re¬ *ern

ores ^underlying

area

of northeast-

v

W

'lv

-

1

e.

citizens/v of

States,,

or

the/ United

under ^ construction

within *the United States,

Change In Officers
U.

v

I

•

*

C.. LeGost; Assistant

Secre¬
tary of the New York State Sav-ings Banks, Association, has re¬
signed his position effective April
20, to join Edwin Bird Wilson,
Inc., New York advertising coun¬
sel. 'Walter
R.
Williams,
As¬
sistant Secretary of the Franklin
.

savings bank accounts, life in- Savings Bank, has been appointed
"to take .the position, of Executive
surance policies, funds accumu-f
lated

Cuba; WPB said:

/by

for

education^ or

for

old' Secretary on May

1.//

>

•
i

V

l

Thursday, April 23,4942

1630

27 Vz %

present

Hearings On Tax Proposals Concluded;}
Administration Restrictions On Limit Foreseen

In * statements X;before £ your
on March 3, 1942, the
Treasury recommended the
elimination of
(1) V percentage

bearing

posed

the views laid before
On page 1541 in

on

April 16 issue extended refer¬
ence was made to the more recent

derson and Marriner

March

this way:

ous

i.;

;

volved

be

all-out

war

tax

Apparent total .$8,610,000,000
L

of

supply

in

total

Net

-•

•

Indications that the Administra¬

following

15,
that

day
of

ton

York

New

House

he

that

fol¬

Mr. Doughton had sought the
with Mr. Roosevelt

i

v"

the pending war revenue
might be used as the vehicle for inflation control, through
that

bill
■

.

higher tax rates. He said the
way
was open to Congress. to

v •
-

increase

the

if

revenue

sired,

'•

While
the

*

de¬

it

he

committee

question openly,

members

who

with

talked

Mr.

Doughton obtained the impres¬
informed 4 Mr

had

he

sion

Roosevelt that

000,000

even

the $7,610,-

goal could be
through
some

revenue

attained

only

form of sales tax.

On

,

he

increases

in
individual
and
corporate
taxes, would form probably the
biggest question the committee

would

have

ord

decide

when

executive sessions

started
week

to

to

the

revenue

as

as

sales levy,

but it

stood from reliable

was

even

intend to
On the

effort

the
to

of

drastic

tax

to

that

date

in

its

forestall
on

account -from

Washington stated:

.

sufficient,

that voluntary purchases of war
bonds could be stepped up to

Sll.000,000,000

a year thus ab¬
sorbing
excess
purchasing
4 power,-and that, consumer mer¬

chandise should

be rationed.




:

war

tax on the

consumer's

ta;x,"

workers, and especially of vet¬

farmer."

the

that

the

America's

elimination

for

increases

in

fitting to remember, with re¬
spect to the latter, that these
men

the

....

Alcoholic

National

Control

V' the

ute a

voluntary

able

long standing and inequit¬

privilege.

Thus',

will

it

substantially to the
effort in terms fpf matiohal

contribute
war

morale. ' f v44

;

"Y;::

At the same

time,<Mr. Paul,-rewitnesses representing the Gen-! ferring to the Treasury's propo¬
eral Motors Corp. and labor who; sal to tax the income of outstand¬
told of the company's voluntary, ing and municipal bonds, 5 is re¬
the

to

committee1

The- ported

as

.saying that he saw. no

roll deduction plan.
moral or legal obstacle thereto. 4
Secretary said that General Mo¬
tors had "done a very fine job"!
Mr. Paul completed his testis
and he hoped
that 50,000,000; mony on April 17 in favor of re¬
pay

could

reached, ducing depletion allowances .and
program.
:
j revising the capital gains tax. 4';f
be

He

way"

it will go a long
winning, the war.

advocated

a

number of technical

administrative changes in the .tax

toward

Reuther, an officer of/ code, it was stated in the "Wall
Journal",
which "in £ its
United Automobile Work-j! Street
CIO, told the committee Washington advices likewise said:

Walter

ers,

that the voluntary
method is the real way to mo-,

He

"We believe

bilize

the

workers,"

and

On April 16
to

Secretary

of

is

There
men

in

only

in
can

place

a

for

these

and other workers past 40

the

gigantic war production;
in which we are en-

program
-

gaged.

There

is a place for
jobs for which they
are already fitted, and there is
a place for them in
job-training
courses designed to build up the

~

•

'.them

in

skills of the Nation's manpower.

While employment in

;

dustries

Beverage

in¬

many

essential

not

prosecution of the

the

to

war

will be

diminished, it is also true that
as the war program
accelerates,
many

employed

upon

the concluding

Americans not

larly

Beverage Study, Inc.

to take

an

now regu¬

will be called
active part in

-"production vital to the war ef7
44fort.4 Yet it is not on a basis
of *patriotism
alone that em^As representative of the NaZ
are ur^ed to open their.
tional Association of Broadcastdoors to older workers, but. on
the
basis
of
sound
business
ers,
Ellsworth C. Alvord of
sense as
Washington submitted a brief
well, for it should not
be forgotten that these older
today opposing a tax—proposed
workers have qualifications that
!>by the Allied Printing Trade
f *
*4 GoMcil-r^h^adiq-r^titne:;- - sales:
younger; : person's lack.
Work
and re4 He cited that, the tax was not 4 experience, -. stability,
^recommended by the,"Treasury •4sponsiblity are assets we can¬
and declared that it was against
not
afford to; waste in ; this
crisis.
1 the interests of labor generally
<

.

.

4 and would seriously jeopardize
4; the industry's war effort, y 44'J.

4
4

'

that 4: since

the

•

S.

time

Company, declared that an in-

Employment Ser¬
its

far-flung

•

in

in
4

executive order
control over imports of strategic
and critical war materials from
the* Reconstruction Finance Cor¬

past

40

of ago., .It is making them
But it can be successful

placing

men

and

women

of

middle years only to the extent

those
4

workers

of

behalf

4 that

President Roosevelt on April 13

by

net-

part-

public employment offices

today.

Authority For War
Materials To BEW

and

full-time

has always made special efforts

crease 4

transferred

of

work

years

4

U.
with

Clay

in i the, cigarette
tax
...would, cut' sales and affect ;.to.Z bacco growers adversely.

,4

The

vice

Williams, President
of the R. J. Reynolds Tobacco

■4:4S.

all
in

employers
war

in the manufacture
of civilian

cooperate,

industries,
or

those

exchange

goods, those in food

production. 4,4

in

or

•

the

Treasury urged before the Com¬
mittee
elimination
of
the
the

not

trade of banks
is poration.. and subsidiaries to the
Warfare,
credit," the present Board Vof- Economic
Gen. Hugh Johnson Dies
requirement that banks 4 treat WhichZ is headed by Vice-Presi¬
4.y Brig. Gen. Hugh S. Johnson, or¬
dent Wallace. 4:.,.
;
* V'
their investments iri bonds as
■: The
effect, of the order is to ganizer of the NRA and news¬
capital assets be removed.; He
pointed out that in 1932 when transfer this authority from Jesse paper columnist, died of pneu¬
Secretary of Commerce monia on
Congress first placed restric- Jones,
April 15 at his Washing¬
of the Government's
tions upon deductions of losses andhead
"stock

Randolph Paul, Tax

the

proposed

money

said,

"we are trying to get our peo-;
pie" to divert 20% of their in-,
come to war bond purchases.

Adviser

1918

give in experience and skill to-

,

only by the volunteer" method by Charles H. Mylander, Vicef
and said he believed when each; President of the Huntington Na¬
employer decided "this is to be tional Bank of Columbus,Ohio,
done,

and

ranks of

forces

4 day.

Association, and Law-

With respect to

the

military

culture today. They had some¬
thing to give in youth and valor
then;4 they have something to

H. Eldredge, President of
Pennsylvania
Alcoholic

4 rence

in

were

serve, but are vitally needed in
the ranks of industry and agri¬

.

•

who

1917

liquor tax from $4 to $6 a gallon,
the fourth advance proposed since
1934. As to this Washington ad¬
vices to the New York--"Herald

of

will yield ^ about., $20l>
million of much needed revenue,

It

is

.

Morgenthau had

Mr..

of the last World War.

erans

Representatives of the distilled
spirits industry appeared before
the Committee on April 14 in op¬

the special needi i
program.4 It.lis

and will remove from the stat¬

month" in an

war

introduced

the

Secretary of
the
Treasury
Henry
Morgenthau, 4 Jr.,
was
represented by his aids as be¬
lieving the present $7,600,000,000 tax program was

the

On
April
14,
the ;> American
expressed the belief that
; V enthusiasm could be "instilled; Bankers Association,, represented

reported
seeking new
to

of

through such a

was

increases

light of

found

':■'

that

inflation. The Associated Press

the
for

to

Earlier

-

opposed

a

4

tions have been re-examined in

increase

to

workers

previous day (April 14)

Administration
be

have designated a Na¬
Employment Week, urging all people of the Nation to
•give particular attention to the
employment problem of older

substitution

savings bonds.
The Associated Press, from which
we quote, also stated:
v / : ' <

Sec¬

opposing it.

cease

is

order

tional

on

effort,

rec¬

though they do not

proposed
elimination

and

of

Executive

coupled a statement by Mr.
- that
the Treasury
plans to "ring every door bell, in

both regard such a tax as prob¬

able,

"This

in

I

years

:4 said Mr. Robertson. "It is not a

mendation

that at. 1942

the

effect

workers

utilize our full man¬
In*his -proclamation the

Annually for the past three

-

...

the farmer.
'

older
may

President also said:

Morgenthau

under¬

sources

rates

tax

no

.we

position to the Treasury's recom¬

1

-•

taxes had

for

that

.

the

for

pro?

was

retary:Morgenthau, has opposed
a

tobacco

ing of workers in various skills
intensify their training activi¬

to

ties

percentage depletion and the hearing on April 17, Washington
expensing of development-costs, advices to ,the New York- "Times"
will hot interfere .^itj^theywaf -saici:
4 44
-.'-v-f

v

well

levels

1942

savings program,
the Committee, a
previous statement that he wanted
to try out the voluntary system
at least until July
1. With this

it

measure.

Mr. Roosevelt

business

voluntary

reiterating

next

begin writing the

' •-

estimated

is

It

dis¬

continuation

a

purchase

sales levy, in

moderate

;

"While

his proclamation, "I am also
hereby calling upon all. Federal
agencies taking part in the train¬

power.":

the

posed differential between
"economy" and standard brands
of cigarettes. He insisted that

escape

the Committee that

indicating that
to

action

April >3 Secretary Morgen¬
advised

advocated

the country once a

addition

sacrifice

and

save

that
decrease

would

"consumption.
V' .'He / also supported

against the elimination of these
special allowances. These objec¬

Doughton- did say that
the question was an "open" one,

Mr.

a

of Louis-

percentage depletion and the
of cost depletion
tribune" also said:
since
no
definite
conclusions
will increase the revenue 4 by
As pointed; out to the Comhave been reached in the con¬
$117
million. 4 Approximately
;>mittee by Munson W. Shaw, of
ferences with the Treasury and
75% of this total is accounted
4New York,; spokesman. for a
the Federal Reserve Board.
for by oil and gas properties,
•'
group of organizations, the tax
In- Mr. Henderson's opinion, 4; the rest by sulphur, metal, and
on distilled spirits in
1934 was
.■'*
4
the tax measure now pending in 4 coal mines.
7 $2 a gallon: In 1938, it went to
Mr.- Paul-concluded*; his • ex¬
Congress will absorb only about
$2.25; in 1940, to $3 and in 1941,
one
half of the
"inflationary tended statement by\saying: ? 4 yv <4 to
$4..
gap," and the remaining excess
The Treasury has made many
Appearing also in opposition
purchasing power is too large
studies of percentage depletion 4 to; the liquor tax were Harry
to be ^handled effectively ;by;
and related allowances in the ■ML.Loiurte,* of the National As¬
mere price controls.
past several years.' It has given sociation of Alcoholic Importcareful consideration to the ob^
Taxes, he feels, form the key¬
ers; John Law, executive secrestone of the anti-inflation arch.
: jections
repeatedly^: advanced •4 tary and general counsel of the

thau
discuss

not

would

to

levies

higher

;

States."

training and employing older men
women," said the President

-

because of indications emanat-5
from
the
administration

X

Co.

Tobacco

United

in

'

ing

of

program

and

,

conference

,•

•4 liamson

the

-

lowing to say:

-

a

understood;

Chief

the

production

war

inviting, the attention of private
industry
to
the
necessity
for

v

when millions of

taxpayer.

had

fv ;

ffl. ;Mi: Robertson,, general
f. counsel of the Brown & Wil-

..

the

had the

"Times"

of

had not been taken

taxes

with

up

Wash¬

to

President

the

and

cussed, : but it was

and

Ways
From

advices

15

April

ington

He did not reveal what

conference held
between
President

the

•

has not been touched off."

a

Committee.

Means

"is

over 40
may be given
opportunity
to
take
their
place in and add their efforts to

out

effort. The

winning of the war/The. contin¬
uance of the
provision at such
a time cannot but adversely af¬
fect the morale of the American

character but

explosive

highly

and Chairman Dough-

Roosevelt

to

from

level

price

general

proposed revenue raising measure
to the $7,600,000,000 limit recom¬
mended
by the Treasury some
weeks ago, were given on April

an

Per¬

small taxpayers are being asked

the
said that the

emerged

House, he

White

this time restrict the

tion will at

he

When

women

the

•

spbcial priv-

industries

den at a time

with President Roosevelt today.

$7,610,000,000

crease

and

4 ing tobacco consumption higher
taxes wouki depress the price

their fair share of the tax bur?

(April

the "Times" said in part:
Mr. Henderson had luncheon

8)

as

Employment Sunday, urg¬
that the "unemployed men

ing

property
tremendous

the

ilege involved in percentage de¬
pletion would allow the oil and
mineral

Under the date indicated

1,000,000,000

taxes

April 13

on

week

beginning
National Employment
Sunday, May 3 as Na¬

and

On

materials

raw

for the war

needed

Board of Governors. *i

conflicting

e s s

in

program.

continuance of the

System

Reserve

the

tional

upon

inherited

ficiaries of estates."

3

Week

the maintenance

the

______

Federal

May

depletion -4 to farmers.

retained

___

the

proclaimed

put of stripper wells. Its elimi¬ .4 Broughton's statement
nation will in no way endanger

to

of

loss

Employm't Week

President Roosevelt

v
ville,; told 4 the committee he
It is not essential V favored the Treasury proposal.
of the outr
He V c h a 11 e n g e d
Governor

and discovery.
to

Washington advices ap¬
excise taxes
1,340,000,000 pearing in the "Times" on that
From plugging
*4 •! oaie^ stating that he had discussed
it
with
Secretary
Morgenthau
loopholes
680,000,000
and Marriner S. Eccles, Chairman
ing

New and increased

not

does not ap¬
preciably stimulate exploration

April 8 accord¬

on

in percentage

centage depletion

Price

Federal

Henderson,

Administrator

330,000,000

taxes

of

Nat'l

impose) "a
upon estates and bene-

burden

in¬

group!

should
■

by

Leon'

gift

estate,

i

industrial

ticular

the

raised

was

measure

revenue

increased

'*¥ would

the favored treatment to a par¬

wages

The question of increasing

3,060,000,000

taxes

the gain 1 or

sale

4

-

and prices, compul¬
bond purchases, profit
limitations, and general retail
\ credit controls.
all

corporation
From

simultane¬

important in¬

sory war

increased

From

S. Eccles,
Re¬
reportedly

would

income
______$3,200,000,000

taxes

*i. the

President Proclaims

-

f; April15,
tobacco ; belt the
country."
The
President
dence supporting the Treasury's
spokesmen', headed by Governor called for the
observance of the
position and to refute the argu¬ Broughton of North Carolina, op¬
week by churches, civic
groups,
ments made by the representa¬
posed any ' wartime increase : of chambers of
commerce, boards of
tives of these industries in favor Federal taxes on
cigarettes and
trade, veterans' organizations, in¬
of
existing provisions of the smoking tobacco. The Associated
dustry, labor, public-spirited citi¬
statute.
Press reported:
zens, the press and radio through¬
The Treasury believes ? that >
He said that besides decreas-

who
a much stiffer
a

a.-,

should like now to present

flationary factors as well. This
mean freezing of nearly

,

dividual

4

only

not

program but
assault on all

tax

From increased in-

■

Board,

serve

favor

before the
summed up his pro¬
posals (except for Social Security)
program

*;

recommendations. • I
evi¬

these

to

;

Federal

the

of

Chairman

As was stated herein
5 Mr. Morgenthau, in

laying the
Committee,

the. plans

of

most

to

"!'

opposition

in

committee

your

by a group led
by
Price Administrator Leon Hen¬

our

on

development costs. Several wit¬
nesses
have
appeared .before

-A.

Stark,
-VicePresident 4:pf£.the !; Fifth Third
Union > Trust
Co.,
Cincinnati,
Ohio, also appearing as a representativeofu- the ABA, vdeclared that the Treasury plan
to change the method of deter-

mining industries of expensing f;mining

lathered

the Committee.

hearings.

depletion and (2) the privilege
available to the oil and gas and

understood to be op¬

was

William*

committee

17 by the House, Ways and
submitted in furtherance of
the Administration's program for the raising of additional revenue
to finance the war.
The hearings were opened on March 3 with
the presentation to the Committee of the recommendations of Secre¬
tary of the Treasury Morgenthau, which were given in detail in our
issue of March 5, page 952, and^
He

-

;};

Hearings were concluded on April
Means Committee on taxation proposals

appeared

depletion y allow¬ ,these restrictions were not made
applicable tO banksj'rV,'"''
1
and^hiittes^as

to which he said:

[:■

various items have since

;

oil ,wells

for

ance

from

the

sale

of capital

assets

lonrHncf

ncrpnrMPS.

-

.

ton hotel.

He

was

59 years old.

1631;
:

•

agencies and
i;/functions^ are' transferred to the
:
War Man Power Commission: ,
4.

President Creates Man-Power Commission For

The following

.

Mobiiizing And Use Of Labor

Most Effective

f/^?/riL'The' labor-supply functions

/ of the labor division of the War
April 18 established a War Manpower. I Production-Board.
|
Commission, headed by Federal Security Administrator Paul V. Mc- wt/b. ''The / national
roster
of
scientific and specialized perNutt, for the purpose of .assuring the most effective mobilization
and maximum utilization of the Nation's manpower in .the prosecu-/
|/ sonnel //'of the United Stales
tion of the war,'
The Commission is also to consist of a representa¬ /./Civil Service Commission and

Roosevelt

President

•

V

'

^

.*

v

.

»

'

•

t

»

Dispute Treasury Views On Capital Dams
'
/: / Tax; Proposed impost Catted Unjustifiable
!/

on

In

joint statement issued April 15, Emil Schram, President of/
Exchange, Elisha M. Friedman, consulting econ¬

a

the New York Stock

omist, and Robert B. Dresser, member of the executive committee of
the American Taxpayers' Association, Inc., dispute the views recently

1

!■

expressed by Randolph Paul, tax adviser of the Secretary of the i
Treasury, with respect to the Boland bill, taxing all capital gains tive of each of the Departments of War, Navy, Agriculture and Labor,;
|* its functions.
/Z'//:,/V/-■"';// without distinction as to the<S>
————
—>
the War
Production Board, vthe3>
' ' .: / / .,/
:'//■/■//■..
/ /!:'; 1The/office of procurement
amount of litigation regarding
holding
period / at a flat / rate
b. Estimate the requirements
Labor Production Division of the
| and assignment in the office ol Of 10%.
the capital gains tax.
of man power for industry; ;re-;
defense nealth and welfare serWPB, the Selective Service Sys¬
V
A detailed analysis of the sub- >
view
all
other • estimates/ oi
tem and the United States Civil
[y vices in/the Office for Emer- j Mr. Paul's testimony, giving the
ject prepared by Mr. Friedman /
needs for military, agricultural i
Service- Commission."
;*
/
gency,
Management
and
its Treasury Department's views on
has also been filed with the House ;
and
civilian man-power;/ aha
'Mr/McNutt, under the execu¬
I./functions."
' "■/- ; 'v the treatment of capital gains and
,

,

-

national

policies

provide

to

for

the national man power;;

estimate

civilian
man
power; coordinate , the/ collection
and compilation of labor market
data, regulate recruitment, voca¬
tional training and placement of
workers in. industry and agricul¬
ture,' and formulate: and recom¬
and:

legislation governing civil¬

ian man power.

perform

Chairman of
The

as

Man-Power Commission.

.

directives,

issue

to

standards

needed

power

/

;

v

.

'

.

.

i
;

i

of the authority
Constitu¬
tion and the .statues, including
the first war powers act, 1941,
as
President
of" the 1 United
States and Commander in Chief
of the Army and Navy, and for
the
purpose
of assuring the
most effective mobilization and
utilization of the national man
virtue

By

vested in me by the

it is hereby. ordered: v
is established within
Emergency Man¬
agement of the executive office
of the President a War ManPower Commission, hereinafter
referred to as the Commission.
The
Commission shall consist
6f the Federal Security Admin¬
istrator
as
Chairman, and a
representative of each of the
following departments and
agencies: ' The Department of
War,
the Department of the
Navy, the Department of Agri¬
culture, the Department of La¬
bor, the War Production Board,
the
labor production* division
of the War Production Board,
Service System
and ' the-United
States Civil
Service Commission.
' /V'L'
Selective

2.

The

sultation

Chairman,

the Commission,
a.

after

con¬

the members

with

shall:;/' /•//

.

directives, regulations and

/

man

power

the

of

cution

such policy and
tives

may

as

in the prose¬
and issue

operating direc¬

..

•;•.

be

necessary

/./.>,/ /




ex- •

the

on

/
/

defeating "its own purpose as /
revenue-raising measure" in his •

as
a

before

appearance

Ways and

Means

the

House :

Committee

on c

March

20; incidentally he
had
something to say at the same time ;
,

regarding the Boland bill, and his
views at that time were given
in

March

our

26

issue, page 1225.

U. S., Haiti Agree On

Defense And Trade Plan [

:

I

favorable basis;

on a more

The '

State

nounced

Department

'

an-

13 that agree- /

April

on

have

ments

effects

:

gains tax does

claimed

the

by

propo-

reached

been

with -'

f[ relating; to the, administration
s/pf jany agency or function trans- [ land

The enactment of the Bo-

agency

r

his

from

of

[f ferred to, and shall be
cised by,

exerthe head of the depart-

; merit or agency to
transferred

.

agency

function

^Is/transferred by this order.,
••

./...8. All

.records

in

I

which such |
or

and

property

I;, (including office equipment) of
[/The; several agencies and all

;

a.

The Selective Service Sys¬

respect to the use; arid
of /man /power
needed for critical industrial;
agricultural
and
government
'/ employment. :•'//
b. The Federal
Sec u r i t ^
Agency with respect to erripley?
ment service and defense-train¬
ing functions. 'J
" /
^c. The Work Projects Admins
/ istration with respect to%place¬
tem with

classification

,

and

ment

The

d.

training functions.1-?/
United

:

/•/Itt);• jsuch?

agencies/concerned, . for. use in

j.y

the administration of the agen-

ment service

employ^

activiies.

transferred

The labor production divi¬

g.

of

the

War

Production

Board.
h. The

Conservation

Civilian

Corps.

Department: of Agri¬
with respect i to/farm
statistics, /farm/ ' labor

i. The
culture
labor •:

camp programs,

excess

of the

all

arated

the

from

service.

of

the

other

Federal

y exercise of functions so trans[yferrPd;pr consolidated. In dei-r/;tprrriiriing Vthe amount to be
i.^transferred, the Director of the
Bureau
of; the Budget may inj J elude an amount to provide for
[/ / the /liquidation of obligations
)'/>■ incurred /against such approi i priations, " allocations,
or other

/ man power

shall, in discharging

functions, conform to such

policies, directives, regulations,
and standards as the Chairman

prescribe in the execution
of the powers vested in him by
this order; and .shall be subject
may

a

to

!

/

fundsf prior to

the transfer or

,

such other.,coordination by
be neces¬

; y
<

i

the Chairman as may

consolidation/.

',/:

the limits of/such
i funds as jnay be made available
for that purpose, the Chairman
//may .appoint such personnel and
a/-

9. Within

to enable the

of

the

;

the

agreements, the

steps

;

:

install

to

Haiti's

coastal

U- vessels for

j patrol

income should: be ac-

'

a

Coast

minus

marine

and

railway

capital gains tax

are

The

1,

decidedly

4.
duce

substantial

revenue

than

produced

under

as

well as the

The United States also agrees •

subject

!

the

to

i

would be much higher

that

pro-

Commodity Cor-

poration will take over at an
agreed but. unannounced price;
the carry-over of cotton from

I

This

revenue.

a

Port-au-,

cotton- agreement

!/. last year's crop
|
1942 surplus.

The Boland bill would pro¬

construct
at

Prince.

)

harmful.

and

Haitian

and / repair, Haitian
be used for coastal

patrol duties

;

quantity.

Guard

in

purposes

overhaul
ships to

!

income.

3. The economic effects of the

for

waters/ make military .aircraft'
available to the Haitian Army,/

I

deduct

artillery

defense, provide

the resulting revenue would be jvvides that the

1

re-'

coun¬

f - The State Department said
j the Government was taking

emer-

Equity and justice require
the
taxation
of
capital

to

two

the recent visit to Wash¬

on

Regarding

capital losses
;
However, in the
;
light of past experience it is
not unreasonable to expect that
in the future capital losses will
exceed capital gains and that

from

the

Associated Press reported:

over

as

of

ington of President Lescot (noted
in our issue of April 2, page 1333).

capita 1

present

officials

tries

came as a

series of conferences be¬

a

tween

agreed price and within specified limitations, the 1943 cot¬

:

present law, or under the Treas-

purchase,

ton

and

crop

to

an

subsequent

all

proposals. /Since the pur¬
/ crops produced in Haiti for the
of the tax on capital gains
duration of the war.
Haiti'
/is to raise revenue, the terms |
agrees to restrict Cotton produc¬
/of the/Boland bill should be
tion
and
improve / the
crops
/
adopted. If they do not accom¬
-quality and staple length.
plish the anticipated results the
The sisal agreement provides
law can readily be changed.
.

ury

pose

There

is

not

much

to

lose

for

in

-900,000 from/ capital / gains In
1940, and, it may be, even' less
in 1941, to say nothing of the
due

to

the

approximately
of this

acres

Trend

I Chains Maintain

March chain store sales,

disproportionately high cost of
collection

of

additional

fiber product in Haiti.

present law produced but $12,1

planting

24,000

trying the experiment, since the

accord-

.

usual monthly survey
April 15 by "Chain Store

to the

mg

large

issued

on

Age," established a new seasonal
The index for the
may be necessary to carry but high mark.
the provision of this order. The month was 169 compared with 165 c
February, and with
128 in/.
Chairman may appoint an ex¬ in
ecutive officer of the Commis¬ March, 1941, all figures relating /
to the base period 1929-1931 taken
sion and may exercise and per¬
form the powers,
duties

set

authorities and

forth

in

this

as

order

through such officials or agents
and in such manner as he may
determine.

'FRANKLIN

D.

ROOSEVELT,

The White House,

April 18, 1942..

March by
follows:

trade groups, compare as

Mar.,'42 Feb..'42

///

/

100.
The index figures for

Grocery
-

_______

Variety

.

Chairman to
discharge
the / responsibilities /•?make > provision for such supplies, facilities and services as
placed upon him.
'//v?/®;
sary

as

is

right

unexpended

j /any function so transferred or

taxation

;

The arrangements

suit of

companied by the correlative

I
}

So

bal¬
ances of appropriations, alloca."tiOns, or other funds available
for the use of any agency in the
exercise of any function trans/ ferred" or -consolidated by this
!. order or for the use of the head
1
of ahy agency in the exercise of
much

.

|

.

k

departments and agencies which
I perform functions / relating to
the recruitment or utilization pi
./ such

gains

procedure to other positions in
the 'government service or sep-

:/

;'[/ T ; j > the approval of the President
j. The office of defense,trans^ 1 I/shall-determine, shall be trans¬
portation with respect ,lo. labor it; ferred to the agency concerned,
supply and requirement -aCtivi/ [// for use: in connection with the
!*' Similarly,

i

existing

i

/

2.

that

his agency;"shall

to

soon

i

[//consolidated, as the director of
and other labor I \ the Bureau of the Budget with

market activties..

-

in

be re-transferred under

-

/. The bureau of labor statis¬
of Labor.

be

to

of sisal;

"

.

the tax on capital
gains should be completely repealed.

,

agency

,

,

that:

The

gency

J;, /personnelnecessary functions
for the
administration of the

tics of the Department

sion

as

|.v,cies and functions transferred or
consolidated by this order; prp/,vided, that any personnel transferred to. any agency by this or-

Retirement

Railroad

administration) / are
the respective

with,, /re/
to
the

Board with respect„ to

/]

1.

(;/ transferredr to

government service.
The

relate

[' der, found by the head of such

spect to functions relating
tne filling of positions in
e.

chief duties

:

gains is unsound, since capital
gains are in reality capital; and

agencies !
(including offi-

functions

/whose

and would facilitate

revenue

of summary;

of. such

Civil

States

Service & Commission

cers

t

strengthening dollar ex-;
change by an extension of credit,
and a plan for greater cultivation

submits in conclusion and by way

j,* ail /personnel used in the adKand

the war;

Following a discussion of the
above points, the. joint statement

•

■/ ministration

matters; purchasing Haiti's
Surplus cotton for the duration of

10%, would result in a loss

tax avoidance.

to enable the

sary

fense

capital

all

taxing

gains without distinction as to
the holding period at a flat rate

department or

by this order are trans-

"

bill,

cords, set forth in a memorandum /
signed on April 6 by President
Elie Lescot of Haiti and Acting Secretary of State Sumner Welles,/
provide for assisting Haiti in de-Z

nents of the Boland bill. .:

j
agency

or

The capital

2.

not have the harmful economic

3.

.

thereto.

previously,

his views

capital
gains tax, which he characterized

capital losses should be allowed
as deductions only from capital

nece^-r
;
[ "recbrds /and "property, used, priChairman[to i; marily in the administration of /
i
discharge
the
responsibilities ./
any / f- functions
trarisferred pr
placed upon him:
;/consolidated by this order, and
the Chairman aS may be,

of the na¬

war;

.

other co-ordination/by

such

to

und-establish basic na¬
tional
policies to .assure
the
most effective mobilization and
tion's

Chairman may
prescribe in the execution, of
the powers vested in him by
this Order, and shall be subject
standards as, the

grams

maximum utilization

|
I

7.; The functions of the head
of ' any, /.department

be ;V ferred

for this purpose. ■:/;;
3. The
following / agencies
shall conform to such policies,

and pro¬

plans

Formulate

of
J

.V;

the ap¬

necessary

1. There

the

mobilization and

mend such legislation as may

power,

the Office for

-

.

Schram

pressed

,

employment."

the President's ex¬
the ManCommission follows: /

gains

£;$he,yWar/Man Power Coinmis/ sipri/ and the, Federal Sequriiy
designed to facilitate the (, /Agericy; respectively/ /
// v

proval of the President, recom¬

of the
for critical

The text of

necessary

country; and, with

the

and

ecutive order setting up
Power

Mr,

[; ap^enticeship section trarisfer- | gains; and" since other income is the Republic of Haiti designed to /
red
to
the
Federal
Security
[ to be taxed at rates up to 90%, materially strengthen the military,"
i /
Agency/ shall be preserved as f a 10% rate on capital gains can- naval and economic position of /
^ orgariizalional / entities? within
the Caribbean country.
The ac-1
not be justified.

utilization of the man power bf

agencies,

time the

be

may

as

most effective

White House

same

'

grams

to

announced at
reorganization
of the WPB Labor Division into
a
Labor" Production ft; Division,
transferring its labor supply func¬
tions to tne Man-Power Commis¬
sion. Sidney Hillman, head of the
Labor Division, is made a "special
assistant to the President on labor
matters," a position similar to that
held by Harry Hopkins on Lendfcease and Munitions Allocations.
The

*

the

Committee.

f

agricultural and gov¬

industrial,
ernmental

1

/. 'Formulate^ legislative pror

.?

i.

and classification

use

excluding those

thereto.

System

Service

man

regulations

[ scientific ,^nd / specialized per-

and naval forces,
such operating direc¬

issue

tives

being tne Selective
"witn respect to

them

among

and

:

various

/policies

of the military

the

McNutt receives; power

Mr.

the

'

■

basic

Prescribe

e.

for man power;

direction of me entire

program."

[. office of the Administrator ot

governing the filling of the'FOd- i sonnel .transferred to the War
eral government's requirements
![Man Power Commission and the

new

position will, however, give him
the additional power to furnish
the over-all

losses, was made before the House
and Means Committee on
March 30 and was referred to in

transferred to the Ways

are

•

:

} A White House statement ex¬
plained that Mr. McNutt, as Fed¬
eral Security Administrator; had
been performing "many of - the
functions which he will continue
to

following agencies and

.

f

«

5. T'he.

.

.

.

mend

:

available/man power. / .■/; }; the v.Federal Security Agency these columns April 2, page 1344.
c.
Determine
basic /policies
| arid shall be administered under In-their joint statement, Messrs.
for, and take such" other steps as
[/the-direction /and/ supervision of Schram/ Friedman and Dresser
are
necessary
to co-ordinate,
state that in opposing the Boland
| such officer or employee as the
the collection and compilation BFederaF
Security Administrate bill and in advocating the pro¬
of labor market data by Federal
posals previously -made/by the
shall designate:
/,/_ /
departments and agencies. /';/ !/./ / b.The apprenticeship section Treasury Department, Mr. Paul
/; d. Establish policies/arid pre-/
/off"fI^/;di^isibn'Vb£; labor stand- argues in substance as follows: scribe regulations governing all
[ ards/of the Department of La- }'/ If Capital gains are income
Federal
programs
relating to f bor and its functions.
/
*
and should be t&xed'as such,
the
recruitment,
vocational t:C. b. The training functions of
short-term
gains
(which
are
training, / and
placement / of
1/abpF/divisiorF of the War i those received within the hold1
workers to meet the'"needs Of // Brbductipri Board.
*
irig period of 18 months) as orindustry and agriculture. / '///•
I;
g. The / iiatmnal
roster
of
dinary income, and long-term

the requirements of man power
for industry;Z review., all
other
estimates of needs for •military,

agricultural

j

allocation ' Of

to, the propei/

/as

of

the mobilization and utilization

departments

several

agencies of the. government //functions

and

and establish basic

and programs

the

direct

tive'order,- will formulate plans

,

_____—

Drug
Shoe

—

I

Apparel

:

Mar.,'41'

161
170
170

160
167
176

225

-208

163

208

178

144

119

132
154

1632

THE COMMERCIAL & FINANCIAL

.

Wheat; Crop

Forecast Indicates

Wheat production in the United States

Department

of

this

j tinue.- At the- last
ican

is forecast by

year

S

The total

bushels

will

coming

be

crop

l

domestic

/

disappearance

War Seen

averages

will

year

amount

to

President

than

more

wheat

and

estimated

are

at

only

21,000,000 bushels during the

next

crop

June

30.

37,000,000
:

With

so

year, which ends
In the preceding'

year,

shipped abroad.

were

large

sion

President stated that

places and added he
confident

it is not remarkable that the Ag¬

riculture

Department

"we

has

urged
farmers not to expand production
Of wheat. In fact it is the, only
crop in the "Food for Freedomprogram with
a
1942 goal less

With

output

and

the

estimated

Mr.

regard to his
the

per

is

acre

bushels

is

reason

per

that

estimated

compared

acre

14.7 bushels in 1941 and

is

Consequently, the harvest

to

expected to drop about
624,983,000 bushels from
671,293,000 bushels in 1941.
'

Farmers

have

been

asked

required

munitions program.

peanuts,
set

at

for

instance,

255%

soybeans

at

of

of

1941

154%,

has

the

utilize
needed

the

"Food

for

program, there is also
consideration
of
storage "

to

more

troublesome

year with the- largest
in
history and the

crop in prospect.

livestock

by

farmers

at

those for
is

corn.

a

the

*

own

A.

War

Fund

of

Campaign,

it

is

by Prescott. S. Bush, Na¬
Chairman.
In
announcing Mr. Farley's willing¬

Campaign

haven't

one

suggestions.
My
that perhaps

too long.

is

word that

could

we

\

tor- rfte

are

all

of

them—which

veloped in its
•

On

the

be

may

own

surface

bit

a

has

de¬

ways.

*

these

/

ways

different,

but

down at the bottom there is the
same

has

kind

of

civilization

that

from a love of liberty
willingness to pioneer.

come

and

the

U So I think that survival is what
.

our
we

problem is, survival of what
have all lived for for

many

a

great

generations,

•

have,

quite
■i

an

republics

relatively speaking,
civilization—

ancient

reckoned since

we

have had in¬

dependence,. and

even

good

before

many

years

for

' a

that.

and

j

•

*

Pan-Americanism is

6very{fday-

pattern for

j. a

'

society

going places.

We will j

can

people

an

even

come

War

of

stokers

greater
dustries
as

as

in

1941

than

in

Corporate

automobiles.
Profits

Income

Board

oil

burners

on

May 31.

In

lished

coal

use

second

a

Federal

manu¬

and

for ; residential

on

a

turing costs and charges
aside

for

ment

as

the

Federal

income

be

and

April

balance

after

taxes

and

war

for retail sales of less than
$5 and such sales on an A-10 or
cept

higher preference

tin".

the

and

issue

for

back

to

rating.•;

many

coal,

;

coke

■

further

materials

increase./

of

and: wage

ing

/

and

cut -production

for

that manufacturers
of

about

now

hold

before
in

not

:

of

/>/ rates

to

taxes

The two

on

posed,

end

before

17%
in

1940

the

of

in¬

1939

1940, increased

imposed
In,.1941;

Act

account¬

companies,
Federal
taxes,

increased

general,
/

Revenue

these

rate,

and

to

56%

revenue

normal

tax

corporate incomes, in
from 18 to: 24% and
an
a

excess

.7%

and/;

were

profits

surtax

excess

tax.

im-

was

profits

raised and

tax

were

U

plied ito income

/

than after deduction of the

before

ap-

rather

•and

before

oreased

,

-

income

sharply

over

taxes

^

in-

•vr

1940, but a
increase

t

-.

tions

crease

.

earn- //-/taxes

corpora- \

.

1939
an

t.

in

.in- profits after
Federa
of about 40%. / The in

crease.in. net profits after taxe
irom -1939 to ,1941- is somewht

r

tabulated

rby- the Board i :
that
manufacturing ;
smaller ..for this
group, than fc
ir,
ion
mining v prof its, ,in
1941 r.the ^-entirequarterly,
reportip
after, all / costs,, charges,
and
group
which ..includes ^som'
taxes, >were// about >' one^fifth
companies whose. 1941; tax re
and

in¬

;from

t-4-.'1941,- .-as 'compared with

Summaries-of published

indicate

re¬

•

/increase/of/l60%

■

Ktr

-

Net- income of the 245
companies after all charges and be¬
fore? Federal taxes showed
an
„

!'/substantial-part /of, the

j ;ings reports of, large

nor-

rmal tax.

,~ucts were also higher^-; /-Earnl/Mngs after all costs and charges

,

35,0001 coal
stokers and 60,006 oil burners, -.

did
for

acts

.

maining period to one-twelfth of
last year's units.It is reported
ventories

the

For

bin 1941.

were

,

the^

are

years

'

to obtain

Winter...

three

subject to the tax

of

31.

33%

coal grates now and" order coal for

Fall

the

which amounted

and ]-/higher in 1941/than in 1940, but
/prices of many finished prod-

The WPB order halting the out¬

were

years

come

trans¬

rates

for

tax reserves

1941, that is, whose

Dec.

*

Costs

re-

for which

on

reserves

by
corporations % was
larger / than
in
any
previous
year and, according to data recently compiled by the Board,
corporate net income after all
a

tax

the chart

on

comnanies

provisions
-

in

-

Federal

1939 to 1941 and whose
1941 in¬
comes

costs/ charges; and taxes showed

be need for additional curtailment
of oil consumption in those States.
owners

f

I -

Dan A. .West, director; pf
the, OPA consumer division, ex¬
plained that as; the war continues
indications are that there might

He advised home

-

,v

large

industrial

available

acted,

;

using fuel

wood.

.:.

sub¬

omit.—Ed. I

we

annual data

the

industries

245

fthis

pub¬
of

and

/ serves are. shown

divi¬

Volume " of ' business

same

owners

quote:

we

the

was

.

"Bulletin."

civilian

excess

profits taxes. Nevertheless,

According to
study, "expanding activity in

the

or¬

the

was set

Govern-'

companies than in 1939, the last
Z.predefense year. <
■

Reserve:{System,

in

Board's

Taxes

substantial' propor-'
of income after imanufac-'

tion

subject of a study
by the Board of Governors of the

Output

Production

earnings

in¬

foods,..beverages,

...

and

In 1941

the

are

was

such

tobacco, industrial chemi¬
cals, /non-ferrous metals^ arid;

Earnings, Dividends
dends

&'■ ;

iron and:

as

and

live

der, the WPB froze all stocks of 1941
was
reflected in a substan¬
plumbing and heating equipment tial
growth in income of all eco¬
and all sales of such material ex¬
nomic groups;" From the "Bulle¬

also

.retained

Profits

Good :luck to

,

April 15 ordered that the

..

In such industries

steel, petroleum, and transpor¬
equipment other than
autos, the proportion of.net in¬

Federal Reserve

better state than

In 1942.

are

The

next

with

much

can

to

than;
especially for.
large war.

years,

stantially higher for

Halts Oil Burner

stoves

inventories, and

earlier

ideal

serve

;

_

-

.

,

;

-

above 1940.- Net income of rail

4serves

roads, which-in 1940

i

,

was

rela

-

carry,

tation

a

r

On

in

.

and work in

you.

halted

to

funds

orders.M/>//X-:'j'

.

international

an

where

-6%■< Re-

hemi-

an

this

income•

increased^by less than

corporations

weaknesses

which

net

■

additional

of other countries,

r

put of oil burners and coal stokers

I think in all of the

we

limitations

amount..

provide other working capital
have been much greater

country should be based. on

the

transcends
thoughts I
-sphere and which

some

requested home

ness




just

are

one

1940

quirements for

'

!

the

ceding year, dividend payments
-

both national and international.

are

It is good to see you
all, and
hope that next year we will

facture

word—

J

two

These

day (April 15),
the Office of Price Administration

of

.-

to serve. Mr. Bush
said the
acceptance places him in one of
the key units of
USO's nation¬
wide appeal for
$32,000,000, to be
launched May 11 and to
continue
until July 4.
'//,/y-

a

,

inter-American

an

in-

l52 large industrial companies • shown was nearly -30% *
larger in 1941 than in the 'pre-/

was

on

double

While -retained

-

somewhere.

be in

of

think

I

war.

are

we

being the survival of our civil¬ oil in the Atlantic Coast and Paci¬
ization, the survival of democ¬ fic Northwest States, .where .cur¬
racy, the survival of a hemi¬ tailment of oil sales has been or¬
sphere—the newest hemisphere dered, to consider converting their

nounced

tional

to

based

net

for

;

democratic philosophy, that is

|

.

USO
an¬

the

what

see

That is, it comes pretty close to

Post¬

the

for

and, second,

were

looking for

am

j

been

we

is

retained

/

Dividends and Retained Earnings'

/essential principles: First,. rec-? 1
ognition of the unrestricted j
independence of every nation;

around

for this war, the word "sur¬
vival."
The
Survival ;* War.

General and Chairman of
the Board of
Coca-Cola Export
Sales Co., has
accepted the chair¬
manship of the National Corno-

Committee

shudder

thought

master

rations

have

use

—

Farley, former

us

since

i
/

:

we

different

happen to any part
hemisphere that came

there is

production

Farley Heads USO Unit
James

I

to

about

freedom, in friendAnd we * are
; ship and in peace.
However,
couple of years,
unless we uphold it to achieve
perhaps three years, before we i a
strong
unity
within
the
can make sure that our
type of !■■■' Americas
now, in times of dan¬
civilization is going to survive.
ger, we shall not have necessary
I am perfectly confident of it
moral and material
capacity to
myself.
We have all got to
[. assume the leadership for a
sacrifice.
B,ut we are going to
just and charitable peace after
come out the winner in the
long i the danger is past.

I

civi¬

had any very good

of

.

totally

the

policy

than net. income.
corporations tin
the

States

The moderate / size of dividend'
increases, was .generally attrib- *
uted.to the need / for larger.
working capital.. ;

f

run.

same

Because that

new

so

Most of them

alcohol.
Neither type of dis¬
posal, however, is expected to ac¬
count
immediately for any sizable
decrease, In the total wheat

Supply.

the

I said to the
newspaper men
little while ago—I want a

name

greater

In addition wheat

for

is

the

as

poultry production
government-wheat to
prices comparable to

being sold

live

of putting it.

So I

and

selling

wouldn't

r

-

//This

after Axis is de¬
will have again an

come

get

'

,/

!

war,

going to have

be¬

political patterns
taking place in the world.

less

all

Department of Commerce at 2.6
i.;-' billion dollars in 1941, which is

so¬

and

declines.

i

"

cial

small

"come has been estimated by the/

:

good

of

showed

United

when

general determination

•.

arid'

come, as dividend payments in-

/

have

time

a

1941

For

it

should

.,

been, instituted at
a

very great

These

>

policy

the

telephone,

power,

creased

.

preceding

.

that

considerably

Manufacturing

•

principles are the direct
going
opposite of that fallacious no^
all over the
world, be¬
j/tion that the greatness of ariy
we will have a

do

We

any

| neighbor,
j

comes to
up the mess at the end

to

that

inevitable

was

corporations
and railroads retained substan¬
tial parts of their expanded in-

I

,

it

Council

in

unprece-

phases of Pan-Americanism,

- •/',/

of

,

*

transit, net income after taxes!
.

given region, and yet
of/ 1* an y all-embracing

a

part

was

I haven't prepared
any speech.

do

under German domination.

for

and

ever

unanimity

that is

j yvprld. cooperation,
| • In .;view pf: the

voice in preventing, in* the fu¬
ture, an attack on our American
civilization.

being

happen if

;•

day and night.

German civi¬

of

this

to

what would

substantial
An effort is be¬

herds

than

more

I

is

of the hemisphere
dominated by a successful

born.

made to relieve congested
warehouses and terminals and at
the same time provide
feed

dairy

And

idea

German

ing

larger

home.

from what all of

carryover

within
a

»

And when

here

I have no
the
present

at

the

accustomed

this

I

\

will continue

we

feated, we
Hemispheric

week

one

Cuba.-;/?-

I hope

cleaning
of

any

lization

and 385.000.000 bushels car¬
in 1941. The problem will

much

me

new—not the old

ryover

an

have-the

past.

We

lization—that

space.

be

So
to

remarks

kind of lives—that is the easiest
way

the

the

them

affairs of

a

are

that

We

Storage was taxed to capacity in
handling the 945.937,000 - bushel
crop

;
i

have

Germany.

Free¬

dom"'

we

back

were

most

crops

sit

informal way.
And
that I didn't want
United. States to do any¬

told

cause

part of

flaxseed

necessity

for

acreage
for the

to

and

fore what would

,

from

will

be formal.

us

it,

understood

been

at 134%.

Aside

close

|

weeks

think

production,

and

i

/

President's

prepare

lems

The goal for

and

tric

stages in the setting of
j f world events. Therefore, Pan| Americanism should always be
J ~ considered as a splendid form
of
international
cooperation

thing without everybody know¬
ing all about it, and that my
thought was that it was a prob¬

own

at any previous time in the his¬
tory of the hemisphere. I know
that some of you have—one or
two of you have—certain
prob¬

imports and

account

on

Pan-

thing that [
celebrating PanAmerican Day.
I hope that we
are celebrating it in
every re¬
public, because I think it has
more significance this
year than

larger quantities
shortages which might

result from decreased

I

I think it is a'fine

in

rising demand

table in

the

not

again

to

down their wheat
plantings
particularly in order to devote the
land to more
vitally needed crops.
Among such crops are those pro¬
viding vegetable oils. These crops

are

around

in

?

various

j

hemisphere

time.

hold

to prevent

The

spare

to

of

and Ministers of the

the

;

speech it takes

a

a'bit

a

to

having any formalities
today, because whenever I make

only

7%

*

nations

Do not let
are

aver¬

had

for

i

come

statement, Vice-President

an<i

one

1941. In fact,'
1941 of 500.

in

higher than for any year in the
past
decade.
Among
public
utility companies, such as elec¬

?

tradition

in

million dollars

the

dented in history; /This/tradi¬
tion, so peculiar to the new
world, has been achieved in its

1

1933;

here

i

follow:

age of 11.8 bushels in the 10 years

1930-39.

»

"very great voice" in planning the
peace.

with

an

months-vwe

of

vital

the

Republic of Cuba.
I asked all of the Ambassadors

I

pretty

■

American

16.1

in

at

after

peace

increased '

one-half times

/..railroad income

.

trouble in the

of

the

yield

at

Summer

been

charitable

In his

a

country said: it was a - terrible
thing to let Cuba handle the

ance

The

here

were

had

was

hemisphere unanimity of
past and asserted that the

about that percent of. the
62,404,000 acres seeded a year ago. Pres¬

comes

He expressed

material

the Axis'

hope for continu¬

it

being.

wheat.

to

lem for Cuba to decide for her¬
self.
Cuba did, and many oldfashioned commentators in this

what

prospects, however, do not in¬
dicate a corresponding reduction
in
production, at least for winter

few

i

thought is that it/should be called
"The Survival War" since that is

ent

blow

of -you

after I

the

tively. Tow,

capacity to
the leadership for a
just

assume

success

conference

serious

time—in- the

/

delegates that his

and

..

Wallace said: ;
efforts to dominate the world.
I " .Fifty'years of
uninterrupted
And so I hope that we will
friendship between North arid
go
on as we have in the
j South; America have created a
past.
A

the

asking for
conflict,

told

moral

necessary

Rio

t

occa¬

out

"

of danger,

ganger is past,"

few

present

Roosevelt

planted to winter
and
spring
wheat, 54,605,000 acres is just

.

come

American

area

.

to

for

names

The wheat
set at 88% of last year's

was

the

going

are

in

strong unity within the<t>

He felt that the

\

Day, the
going
perfectly
long run

that

"a

of

we are
was

with

Americas now in times
Jve -shall - not ./have

j.

winner."

than 1941 production.

goal

the

•

surplus in view

a

House, on
Pan-American

of

anniversary of the PanApril 14 that.
hemisphere and which can serve as a
pattern for an international
society where'
people can live and work in
freedom, in friendship and in peace."
j
Mr, Wallace added, however, that unless this ideal were upheld'.

Hitler.
very

52nd

Union, Vice-President Wallace said on
"Pan-Americanism is an ideal which transcends this

will have

we

International Pattern^

as

the

on

j

Speaking
Governing

at the White

that

statement

-

American

it would like to go—

war

formal

a

and

Board of the Pan-American Union

cur¬

rent

IIn

stantial unanimity. • That is - a
great thorn in the flesh of Herr

three years, before we can make
sure that our type of civilization

going to survive."
informally before the

l isServe

hemi-

work out among ourselves,
1 sitting around the table,, but at
i". the present time we have sub¬

declared

is

the

at

did manage to retain the ob¬

after the

April 14 that "we are going to
have a couple of years, perhaps

requirements.
Exports in recent years have not
drawn heavily on United States

as

\

j to

on

domestic

far

we

By FDR

Roosevelt

-

jective of unanimity. ^: -- -- - There may be other problems

as

only about 675,000,000 bushels an¬
nually, the outlook is that avail¬
able/wheat supplies in the next
double

so

down

Pan-Amer-;

of

Thursday, April 23, 1942.

Wallace Declares Pan-American ideal SimM*

Rio—while
people felt it had not gone

some

Two Or Three Years Of

the

in

Inasmuch

year.

sphere

Agriculture

includes

available

Conference

|

at
approximately
793,000,000
624,983,000 bushels of winter wheat, as
estimated in the regular April 1 crop report and to this the Depart¬
ment has added an early approximation of the
spring crop. In addi¬
tion, carryover of old wheat next July 1 is reckoned at 630,000,000
bushels, which means that a totals
supply
of
about .1,423,000,000
bushels.

I hope that .conti-

[ nental c hemispheric " solidarity"
and unaimity are going to con-

Two Years Supply For Next Season

s-fv
the

That is why

CHRONICLE.

rates.

were
•

based

on

.

the

;;■i'l/

••

194

1633
States

Raising% s
U,S,ltebtIimil

^f
•

-t

y

\ I-

.

*

•

'• V

;

*•

*'

1

•

'

.

r

<7

Uyy
1

of

United

the

debt
from

$65,000,000,000 to $125,000,000,000
became a law on March 28, its ap¬
proval on that date by President
Roosevelt having beCh -noted in
our issue of April 9, page 1444.
We are making room here for the
text of the new measure, which

1044) j contains

other

as

provisions

further

amended

amended, is

as

read

to

fol¬

as

lows:
;
"Sec. 19.: Any obligations au¬
thorized by this Act may be issued
the purchase, redemption, or

for

before maturity,
of any outstanding bonds, notes,
certificates of indebtedness, Treas¬
refunding, at

bills,.

ury

or

certificates

savings

or

United

the

of

and

States,

any

received from the sale of
besides that which authorizes the
such
obligations or any other
increased debt limit. Among these
money in the general fund of the
provisions, as detailed by Secre¬
Treasury may, under such rules,
tary Morgenthau is one author¬
regulations, terms, and conditions
izing the Secretary - to issue Treasas the Secretary of the Treasury
y ury marketable securities - on a
discount basis, or on a combina¬ may prescribe, be used for such
tion interest-bearing and discount purchase, redemption, or refund¬
basis and another clarifying the ing." ::
Sec. 5. The authority of the
authority in Section 19 of the Sec¬
ond Liberty Bond Act, which as Postmaster General contained in
,

•
.

1934, was, Section 6 of the Act of June 25,
it is stated, intended to permit the- 1910, as amended (U. S. C,. 1940
Treasury to buy any of its secur¬ edition, title 39, sec. 756), and Sec¬
ities in the market, at or before tion 22 (c) of the Second Liberty
originally

-.

;

;

'.

.

enacted

In
6

5

a

the

Court

in

York

against

where

board

within

Maritime

vessel

a

the

any¬

Admiralty and

'

jurisdiction

-

decision,
F.
Byrnes,
which
held that
such
strikes were barred by the Fed¬
eral Mutiny Statute, set aside an

|

lice James F. Byrnes cited the

by

i

French luxury liner Normandie

order of the National Labor Rela¬

I

to reinstate

who

seamen

permit

our

In

Board

order,

rected

the

collectively
Maritime

'also di¬
bargain
the National

with

Union

(CIO)

reinstate six other
went

on

to

and to
strike

and
yj

Second
for

other

purposes,

House
United

of

States

America

gress,

!

Congress assembled, That this Act
may be cited as the Public Debt

read

as

"Sec. 21. The face amount of ob¬

Liberty Bond Act, as amended, is
further amended to * read as follows:
"Sec.

or

fective
Act
or

date

of 1942

(a)

Any

obligations

local

shall

or

not

said

have

any

now or

hereafter

ligations which the United States

interest-bearing, basis, on a dis¬
or on a combination

Maritime Commission

count basis,

or

a

t

..

'

;.7.

vv7v.7Uv//7'/

•:

shall

40-

may, under such regulations and
upon such terms and conditions as
the Commissioner of Internal Rev-

not

agency

or

be

considered

as

United States.

j

.

\

shall,

.

V

.

,

/"(e) Any obligations authorized
by this Act may, under such ,regillations and, upon such terms as
.

..

.

:,r

the Secretary of the Treasury may

Vv4 prescribe,:-be. issued- in exchange

plemented.
?

"(c)

Nothing

;

<;

.../.77

contained herein
re¬

peal Sections .114 and 115 of the

for,,.any'.obligations ,of. any. agency .Revenue Act of 1941."v
or instrumentality of the United
v-. Approved, March 28, 1942.




harbor

sea

and

the

majority

opinion

Stone,

seamen's

opinion

utes

is

violation

The only

of the stat¬

orders

the

that

ignored."

the

load

to

Board

sought to

statement of 145

conducted

a

ruling

lower court

ruled

the

regarding
made

no

on

Supreme
the

that

stated

comment

on

decision, which

the

over¬

order of the Labor Board

an

directing
seamen,

reinstatement of CIO
but merely announced

petency of his crew.

Wagner Labor Act

at

issue

The court's

that time was

of

Dec.

17,

noted in

1938, page

3694.

reinstatement order

July 1

Board," Justice Byrnes
The Treasury Department has
asserted, "has not been commis¬
informed agents issuing United
sioned to effectuate the policies

■

u

the

Labor

Relations

Act

States Defense Savings Bonds that

so

the

name

its

on

-

the USO

was

one

of the

no

doubt,

,

national his-

our

The needs which

itual

we

then

7
•

and

social

values—have

| of recent months.
In

writing

you

of

sion

year's

last

the occa¬

on

meeting,

I;

•

stressed my conviction that this

task

is

of

the utmost importance, that it places inescapable
obligations upon the individual

•

citizen, the community and the
nation

as

Now
behind
,

a

a

whole.

; ;

;■

of experience lies

year

Communities which

us.

'/

are bearing the brunt of defense
overcrowding and pressure have,
been learning to make the most

of their local resources.
the

framework

of

nation-wide
lished

by

cooperation estab¬
the Federal Security /

Agency, the XJSp and other or»*
ganizations have-been providing
increasingly effective and

prac¬

I

of such bonds is to be

and

to

want

take

to commend not

but also the

cities

all

which

welfare

this

recreation

occasion

only the USO,

villages, towns and
the

over

country

offering open-handed
and open-hearted hospitality to
are

members

and

This is
to

of

war

our

an

the

forces

workers.;/;:

essential contribution

united

Reports

armed

industrial

effort.

war

of

during
leave no d^ubt
that this great work is well in
the

past

hand.

progress

year

I

look

forward

•

'

the

to

continuing cooperation and

ac¬

tive participation of the United
Service Organizations, its mem-/
ber

agencies

and

the

host

of

individual citizens in whose be¬
half

the

USO

is

rendering this

great service.
USO

will

open

a

national

c^moaign early in May to raise
$32,000,000 for its continuance and

expansion in 1942-43.

7/

UAW Waive Premium Pay

Delegates of the United Auto- /
single-mindedly that
it may
changed to War Savings Bonds. mobile
Workers
(CIO),
at
a i
wholly ignore other and equally
In order to conserve paper and
special war conference recently
important Congressional objec¬
avoid waste of stock, however., the
held in'Detroit (April 7), voted
tives." r/'..Treasury Department is request¬
unanimously to waive for the
Another
provision
of the ing that the present Defense Sav¬
duration double and premium pay
Board's order, directing \ the ings Bonds be used until existing for
the weekend and holiday work
company to bargain collectively stocks are exhausted.
within the 40-hour week.
This
with 7 the
National
Maritime
Allan Sproul, President of the action had been recommended by
Union (CIO), was upheld.
Federal Reserve Bank of New
the

CIO

Executive

Board

and

Justice- Reed wrote the 'dis- York in advices to-banks and called for by President Roosevelt.
•senting opinion, in which Jus- trust companies and other issuing The President had assured the
I tices Black, Douglas and Muragents in the Second Reserve Dis¬ conference that the Government
:r
phy concurred.
■..,
intends to renegotiate war con¬
trict, stated on April 15:
/
Justice Byrnes said that Con¬
In these circumstances, it is tracts to make certain that relin¬
gress, in the anti-mutiny legis¬
anticipated that issuing agents quishment of double time would
lation, had outlawed such a
will not receive supplies of War not operate as a windfall to any
strike and "if this mandate is to
Savings Bonds in any denomi¬ employer; this was indicated in
be changed it must be changed
nation much before July 1,1942, our issue of April 9, page 1445.The delegates, representing over
by Congress; and not by the
and we therefore request your
courts." .: 7 ,/"
workers
in
automobile
" ; .•• ••*.- '7 ':
cooperation in presenting these 500.000
:

„

been underscored by the events

The

en¬

To Be War Bonds

,

services.

of the Peninsular &
Occidental Steamship Co. At that
time "Journal of Commerce" ad¬

Court

,

who ;

women

foresaw—for united action ami
joint service to preserve spir¬

:

who had

strike

sit-down

•>

k

most fateful in

the rein¬

force

and

organized has been
most
crowded and,

]

tical

two vessels

vices

men

guiding and carrying

Relations

seamen

■,

„

message

you'once again extend /
cordial
greetings to
the
Service
Organizations

Within

the present

Labor

National

"The

of

of

*

The year since

,

A similar ruling to

over¬

though the men had
gaged in a sit-down strike.

Coordinator

Roosevelt's

program.

and

affect

not

of the vessel.

evidence of

peril

even

as

Will

my

approaching
here," the
added.
"The

did

conduct

the safety

our

a

to

United

not

were

"Nothing

dissenting

action

permitted

7v

Frankfurter,

Jackson.

ceases,

.

...

■

"Ever since

,

vV;

brief that when

a

letter

said:

such disorder occurred

Court's

.

shall be construed to amend or

Act.

ner

tion that the

•

"(b) The provisions of this sec¬

tion

Justices

and

sit-down strike

ruled the Labor Board's conten¬

an

with respect to.such
'obligations and evidences of own¬
:
/
ership, be .considered, as,.amen¬
enue
with rthe> approval - ofr.the
,?.•?. Secretary
of, the - Treasury may datory of and supplementary to
the respective Acts or parts of
prescribe,?.'* be receivable by;? the
v '.United
States in payment ,of any Acts authorizing the issuance of
; t taxes
imposed
by the
United such obligations and evidences of
ownership, as amended: and sup¬
■States. ;, Vv...,;
a

77;//

safe

The

the Fed¬

instrumentality of the

Justice

the vessel be¬ that
appeal of the Board from that
comes for
all intents and pur¬
ruling was denied. It was added
poses an industrial plant."
that the action was believed sig¬
As to the Supreme Court's find¬
nificant, however, in that it sus¬
ings the Associated Press (April tained the right of the master of
6) said:
the vessel to decide upon com¬

,

"(b),Any. obligations authorized
7 by this Act and redeemable upon
y demand
of the owner or holder

a

of the

eral

m

in

capacity

President

eligible
for reinstatement under the Wag¬

then

they would

a

McNutt, Federal Security
Administrator, who presided in

"criminal acts" in connection with
a

company

strikers

in¬

war

;

made in

were

and to the

According
Press, in the dis¬
senting opinion Justice Reed said
that the Court had held previ¬
ously that
employes guilty of

vessel "is moored to the dock,

in

.

7//// final..7.

the

to members

continue.

Paul V.

to the Associated

be rehired. 77

contended

Housing Administration had,
interest-bearing
and
discount
prior to March 1, 1941, contracted
basis, at such price or prices and to issue at a future
date, shall
with interest computed
in such
when issued bear such tax-ex¬
V manner and payable at such time
emption privileges as were, at the
or
times as the Secretary of the
time of such contract, provided
Treasury may prescribe; and any
in the law authorizing their issu¬
fuch obligations may be offered
ance.
For the purposes of this
^for sale on a competitive or other
subsection a Territory, a posses¬
basis under such regulations and
sion of the United States, and the
upon such terms and. conditions as
District 'of
Columbia, and any
; the Secretary of the Treasury may
political subdivision thereof, and
prescribe;- and his decision with
any agency or instrumentality of
' respect to any such issue shall be
any one or more of the foregoing,

:

Chief

Roberts

by

The National Maritime Union

ex¬

enacted; except that any such ob¬

of

notified that

were

not

as

Federal tax Acts

authorized by Sections 1, 5, and 18
of this Act, may be issued on an

five

would

tory.

Associate

the
Shipping

The

open-hearted

forces and

7:

light and fire

Those concurring with Justice
in the majority decision

i

were

before

States

Commissioner.

instrumentality

such, and loss from
the sale or "other disposition of
such obligations or evidences of
ownership
shall not have any
special treatment, as such, under
emption,

United

off"

and

armed

ington,

least, steam must be main¬

Byrnes

the

of

the

President's remarks, read
to the second annual
meeting of
USO
representatives
at
Wash¬

States."

hours,
work, the

Philadelphia

"signing

by the United States

agency

any

thereof

to

their

Public Debt

of the

.

20

crew was

of such

other disposition

"At the

happenings
in
"any
waters
within the Admiralty and Maritime jurisdiction of the United

'

ship's
terminated when they

employment

returned

Obligations and evidences of own¬
ership issued on or after the ef¬

lows:
'

dividends, earnings,

other income from shares, cer¬

sale

fol¬

ligations issued under the author¬
ity of this Act shall not exceed in
the
aggregate
$125,000,000,000
outstanding at any one time."
>
Sec. 3. Section 20 of the Second

the

tificates, stock, or other evidences
of ownership, and gain from the

Liberty Bond Act, as amended, is
amended to

follows:

(a) Interest upon obli¬

and

gations,

Sec. 2. Section ,21 of the Second

further

"Sec. 4.

or

Act of 1942.
-

as

in

"great

The

The decision pointed out that
Federal Mutiny Act covers

11

returned to

men

Houston,"

wrote.

conclusions:
of
the
said, when a company majority
attorney promised to meet,with Supreme Court was handed down
by it on Dec. 12, 1938, when it re¬
the union.
i
The company contended that fused to reopen a case in which

7,

amended to read

for

to tend it,

Board

Seventy-seventh Con¬
first session), is thereby

bered

of Representatives of the

the

striking

dock is 'safe'

the strikers did at

were

After

further amend 7 Sec. 6. Section 4 of the Public
Liberty Bond Act, Debt Act of 1941 (Public, Num¬

Be it enacted by the Senate and

the

after

week

a

to

Houston strike.

United States, to
the

returned

vessel

Philadelphia

jgation of the United -States.

To increase the debt limit of the

the

when

of

the

who

seamen

sympathetic

a

"open-handed

hospitality" extended

are

Court at

which

company

their

during the past year and
expressed
the
hope
that
the

protection."

unlawful."
The Federal Circuit

Service

for

fense Activities.

a

tained to provide

country."
reply, the

Philadelphia upheld the Labor

ever

April 12

work"

his

Justice Byrnes

seamen

of the Postal Savings

this, insisting on its $125,000,-

amended, are made available for
public; and, as soon as

sale to the

Organizations

on

United

the

ship moored to

very

"jeopardize the
future safety of

and

President Roosevelt
commended

■

would

present

Contribution

Health, Welfare and Related De- 7

as
1

"resist the commands of the

master"

proof

>

7 if the crew refused

"sit-down" strike.

It added that to
to

•

.

a

went on

on
July 18, 1938, aboard
vessel, "City of Fort Worth"
at Houston, Tex.
In Associated
Press accounts from Washington
April 6, it was stated:
The company contended that
a
1909 Federal Mutiny Statute

a

former

"grim

as

>■

"It is by no means clear that

the

barred such

the

hazard of fire is

present."

strike

i

aboard

York

that the

Board, directing the South¬
Steamship Co. of Philadelphia

of Trustees

the

New

at

tions
ern

fire

recent

James

to

but

In the majority opinion, Jus-

The majority

Justice

't

-v

Vital

v*'

dustries

delivered

•

,

6:

mutiny.".

thereafter, the Board

$130,000,000,000,

the

we

>,

000,000 and the Senate conferees System shall pay to the Secretary
accepted the latter figure, which of the Treasury a sum equal to the
was finally agreed to by the Sen¬
redemption value of all postalate.
The text of the measure, as savings stamps outstanding, and
after
such
payment has been
enacted into law, follows:
made
the
obligation to redeem
I Public Law 510—77th Congress]
such stamps shall cease to be a
IChapter 205—2d Session]
liability of the Board of Trustees
IH. R. 6691)1
of the Postal Savings System but
AN ACT
shall constitute a public debt obli-

■

Philadelphia
"In¬
take the following
from its Washington bureau April
; From
quirer"

the

of

practicable

to

everything deon him;
He must com¬
and the crew must obey.

,

FDR Praises USO For
r

care.

and

one

Authority cannot be divided."

Labor Board
asserted that "a peaceful strike
for the purpose of compelling
an
employer to obey the law
while a vessel is in a safe posi¬
tion in an American port is not

tion

>

mand

master's

;

maturity out of the proceeds of Bond Act, as amended, to prepare
and issue postal-savings cards and
any public debt securities previously sold. > The full statement of postal-savings stamps shall termi¬
Secretary Morgenthau -appeared nate on such date as stamps issued
on
page 1044, and another item by the Secretary of the Treasury
respecting the bill was given on pursuant to the authority con¬
tained in Section 22
(c) of the
page 1140 of our March 19 issue.
Liberty
Bond
Act,
as
At that time it was noted that the Second
Senate had raised the debt limita¬

pend

the

to

United States is to be punished as

House conferees refused to accede

.*/-/■

7

in New

ports, and declared that "a
their
on

Every

sit-down

rebellion by seamen against
officers

intrusted

Supreme

vessels docked

on

employee on'land.- The lives of
passengers and crew as well as
"the safety of ship and cargo are

■

April

on

States

ruling

'

'

Mutiny

decision

4

to

United

strikes

money

k

Vessels Ruled

-

Liberty Bond Act,

ferent from that of employer to

Sit-Down Strikes On

Sec. 4* Section 19 of the Second

States

as has already been indicated in
theseyw^

•.

y

are

both

guaranteed

.

v:7fe,7/The bill increasing the
limit

which

unconditionally
to principal
and interest.^ the United States,
at or before their maturity." ; /; "

Text Of Act

•

.

men

have gone to

sea," the majority opinion said,
"the

relationship of

seaman

has

been

master

to

entirely dif¬

;

'

and

airplane plants, also approved
who may inquire in the mean- the
proposal to set. up labortime
whether
War
Savings management committees to speed
Bonds are obtainable.
up war production.
facts

to

any

of your customers

i

THE COMMERCIAL & FINANCIAL CHRONICLE:

1634

bankers:; in

Rent Control Conference
A

conference

national

control

will

held

be

rent

on

in

of Real

Association

Boards.

to

developed

is i'^en^bleikfaircand,

-

the; disbursement. < The* $20,799,000 volume of new building con¬

SugarR^

-3'%

He added:

workable."

stituted

any

have

and

Mr. Cannon said, since 75%
savings and loan re-*;
sources are within lending radius ;,
of areas with A priority ratings,
for building materials.XX'X:4
areas,

.

of Leon Henderson,
The

Federal Price Administrator.

two-day meeting will be held at 4
the

Drake Hotel.

I

.'Inline with the decision which

5

-

control of rents in

defense

State.

fluctuations and to prevent

infla¬

J toy branch

tuted

administered

are

insti¬

they are

as

i particular bill could create end¬

at all

;

Porter, Assistant Admin¬
istrator of OPA in charge of the

are

Each of these has existed

ply.

Karl

division,

present time > there
5 Army and Navy Stations
the

in Illinois to which it could ap¬

Borders, Di¬
rent division,
Robert W. Wales, Assistant Gen¬
eral Counsel of OPA, and Cyril
rent

At

;

Paul A.

possible.

for

a long time, several of them
antedating the last World War.
At no time during this period
has the personnel of these Sta¬

rector'; ofCPA's

DeMara, M.A.I., Toronto, Ad¬
ministrator of housing rentals for

tions

been

cause

of lack

Canada.

ities and

R.

The

,

which

at

conference,

de¬

mand

inconvenienced

from

of banking

have heard

we

of the

any

facil¬

men

tions for rent control will be made

Each
or

one

which

branch

Boards,

create

Act

in

their

will

to

open

discussion

the

part

V-,

of Canadian

control.
ant

Estate

the

details

experience with rent

Robert W.

General

OPAV"
legal aspects of the

will speak on

rent control law.

--

,»

serve

and

Opposition of the Illinois Bank¬
Association to the Senate-ap¬

Robert

F.

but

also

"not

of

only

or

/

the

■

without

its

home

State and

regard for the State
law applicable to State banks in
the place affected.
tion

respectfully urges you to
give most serious consideration

'

to

the

arising

undesirable

out

of

implications

^Kis bill.




The

ex¬

To Head New York

,

Other

•

18.1

'

6,725,000

purposes—'

Total

and

Board

v

8.8

$76,756,000

U. S. and Canada Agree On

-

Reciprocal Draft Rules

'

scheduled

;

public
should /not. permit unauthorand;; the

f:' ized:

Over

have
for

and

press

It was in¬

% advices

from

Leighton McCarthy,;

Canadian Minister to Washington,

of

sales

Retail

in

of State, and

ceive their ration cards May 4
7.

of citi¬

Washing April 9 that as the result'
of an exchange of notes between)
Sumner Wells, Acting Secretary

April 28 and: 29, ' while home
will register and re¬
May

treatment

of both countries under their

dicated

consumers

through

an

military service laws.

wholesalers will register at high
schools throughout the country
on

concluded

reciprocal

zens

retailers

1,000,000

and Canada :
arrangement

The United States

:

the

sources
to confuse
! "necessity for this policy.

Suspends Sugar Quotas
Roosevelt

President
13 signed a

States to

April

on

proclamation suspend¬

ing all import and domestic mar¬

keting quotas in the case of both
and refined sugar.
This ac¬

enlist

in the forces of a

foreign government.
From Washington April 9 the,
New York "Times" reported:.
>

Further, it was provided that
Canada would not accept enlist-,

raw

tion, recommended by the De¬
partment of Agriculture, was tak¬

■

cus¬

of

the

losses

,

Another

Louis H. Pink, New York State
Superintendent of Insurance,

praised the insurance industry for

their

organization

and

Schmeidler

was

April

on

Daniel

Chapter for the term of
1942-43. Mr. Schmeidler, a mem¬
ber of the class of '26 joined the
of

Bank

Richmond

County
in 1920 and subsequently became
its Assistant Cashier. Since 1930
State

has

tary

of

been

a

been

the

an

Assistant

■

Civilian Defense Board
'

President

Roosevelt

issued

airi

from areas not in¬

"that

found

he

economic

emergency

national

a

exists

The President's order sets up

respect to

On

Feb. Home Loans

High
vol¬
although

Still keeping ahead of loan
of

ume

two

years

ago,

somewhat under that of 1941,

savings,

building

ciations

of

the

the

and loan asso¬

Nation

lent

this

Board

are

Secretary of War Stimson, Sec-,
retary of Navy Knox, Paul V./

$76,-

756,000 for home ownership and
home
remodelling
purposes
in

McNutt, Director of the Office of
Defense Health and Welfare Serv-

ices; Mayor Maurice J. Tobin of
Boston, Norman H. Davis, Chair-,
man
of the Red Cross;
Earl D.
Mallery, Executive Director of the
American Municipal Association,:

Secre¬

of

says

Chairman
the I Entertainment
and the

non,

member

of the Board

since .1925,

Governors

the League.

Fermor S. Can¬

President of the; League,
of
pointed out that dollar volume of
Bankers Forum Committees, Chief home purchase loans was 11.5%
Consul,
and
President of the greater than in February,; 1941,
Alumni Association. - He was one witnessing to the increasing in¬
of the organizers and a President terest in already existing homes
of the Richmond County Bankers as a sound investment in a period
Association,

has

been

Chairman

New York State Bankers Associa¬
Chairman of his local draft board.

being

President Creates New ;*

consumers."

Trust; Co.

Brooklyn

said

plan

of

and Harold Stassen, Governor of
February, according to the United
Minnesota, who is serving as a
States Savings and Loan League.
.Lieutenant
Commander
in
the1
when the State- Bank of .; Rich-, A three-month high was achieved
.'Navy. ■ XXXX:X
mond County was merged with in the percentage of > the funds
;•
Under the order the OCD will.
for
home
the Brooklyn Trust Co. He "has used
purchase, 44%,

he

damage plan "without thought of
advantage or profit." Mr. Pink
the

about a
required to

executive order on April 16 reor-'
cluded,
or
not adequately
in¬ ganizing the Office of Civilan De¬
cluded," in the quota provisions fense so as "to; integrate its ac-T
of the Sugar Act of 1937 and that, tivities more
closely with those of'
acting under and by virtue of the other war agencies and to gear its
authority vested in him by that programs to the war effort."

the presidency of !,

nomination for

of

believes

brought

He further said that "it is possible
to obtain sugar

name

trained experience to the Govern¬
ment
in working
out the war

he

;

sugar

needs

the

meet

of
placed in

New York

adjusting

of

Banking,

14,

Institute

American

ter" of

and

"has

location

shortage

aj
with
new Civilian Defense Board to act.
sugar" and hence "by in an
advisory capacity to the
At a meeting of the Board of this
proclamation suspends the
OCD, which is directed by James)
Goyernors of New York Chapter, operation of title II of that Act."
M.
Landis.
held

army

tomary sources" and that this dis¬

Act

Chapter of AIB

necessity, not choice, and assured
the
agents
that
"there
is
no
thought in any responsible quar¬

offering

The Illinois Bankers Associa-

hope and

war,

to

any

without

may

considera¬

protect

to

during

we

under

pect that the problem will be
justly and equitably solved.

damage

war

distinguished

item

this

the field

Insurance

contrary..

upon

de¬

owners

vised that the Federal Treasury

duplicating the insurance
This bill amends industry's facilities for arranging

national bank,

a

of

Wagner

speaker from Wash¬
the' authority
of the Comp-; ington was Senator Murray of
troller of
the Currency, any-; Montana who made a plea- for
where in the country to estab- protective
measures
for
small
;; lish a branch bank either within; business.
'XX.;"-J
any

property

as

entered

i

J milting

and execution of

Plans

provision of future, at the same time predict¬
In other ing that premium rates will be
•
words, the bill provides for per- low.
the

to

Production

the Office of Price Administration are withput, founda3 tion in fact. The sugar rationing program will proceed as

other

from
companies who operate
on
a capital stock basis.
As a
matter of report, you are ad¬

of new Federal
the Currency to provide bank- agents and
adjusters."
He added that plans for putting
ing facilities at United States
Military
Reservations
and the
corporation
into v operation
Navy Yards and Stations not¬ will be announced in the near
law

American

tion and

the, National Banking Act by coverage
^authorizing the Comptroller of "with an

withstanding

with

practical plan properly to make
available
the
protection
to

Agents on
April 14 that the Government had

\

;

Cor¬

other

yards and stations was voiced in direct wire to the Association's
a
letter to the House of Repre¬ dinner in New York, Senator Wag¬
sentatives at Washington on April ner said the action was one of

•

perfecting

coun¬

.

by the Senate.

opera¬

branches of the business in the

no

prevent raids on the
banking facilities at United States Treasury after the war."
military reservations and navy
Speaking from Washington by

passed

fully

operate

of

insurance

was

44.0

^^S *;12.325,000:

.

Association stands ready to co¬

ciation

property values

On April 3, S. 1603

the

poration can be handled most
effectively by the insurance in¬
dustry.
We believe that the
industry is ready and desirous
to
undertake this task: as; a

has

proved bill authorizing the Comp¬
troller of the Currency to provide

;"

that

War Damage

the

of

New York told the National Asso¬

ers

10, by Harry C. Hausman, Secre¬
tary of the Association. In his let¬
ter Mr. Hausman says:

4.1

33,769,000

purchase

Refinancing"

.

and

is

Home

27.0

3,138,000

ization

1

'

-

Percent;

of Total

sugar " will
be prohibited • after Canadian nationals living in the
patriotic
responsibility
on
a
United States, who have not de¬
non-profit basis.
We believe April 27 for about a week; pre¬
clared their intention of becoming
that insurance companies, agents paratory to sales under rationing;
The OPA announced on April American citizens, will have the
and
brokers
can
combine
to
16 that allotment during the first right
to elect to serve in the
render
a
particularly
distineight weeks of the program will armed forces of Canada when
>' guished and vitally
necessary
be limited to one-half a pound
called up under the United States
service
in
the
present great
Aliens of
of. sugar a
week per person. Selective Service Act.
emergency.
We believe that
Later allotments will
be fixed other nationalities residing in the
through a proper co-ordination
depending upon available sup¬ United States will also be able to
of the services and abilities of
choose service in their respective
all branches of insurance the plies.
Plans for the rationing were armed forces.
most efficient and economical
noted in these columns April 2,
It is emphasized that no threat
operation possible can be ac¬
or
page 1349.
compulsion will be exercised
complished.
by any co-belligerent government
So
believing, the National
to induce any person in the United.

Insurance Agents Discuss
War Damage

Oppose
Branch Banks At Camps

:

willing

the needs of this

Senator

r

that there

loyal

believe

We
tion

way,

,

Illinois Bankers

said:

to state with jus¬

pride
more

War

;
,

sugar

Wales, Assist¬

Council of the

bravely

in United States
Construction ;
$20,799,000
Repair & modern^

merits here of United States
sired
and
authorized
by fcthe
The
citizens; or':. resident aliens sub-:
Congress of the United States. en in order to facilitate shifting
argument which may
j
ject to registration. Mr. McCar-.
be advanced against us in this
deficiencies from one
With regard to taxes, the report of quota
thy's note agreed to the re¬
producing area to another, since
petition to you could only be in ^stated:
ciprocity with the understand¬
order to use the war as an ex¬
supplies are expected to be below
ing: that it did not prevent;
There can no longer be any
normal requirements.
cuse to open the door to branch
excuse for any insurance com¬
| Canada from declaring the legal;
banking in the State of Illinois
; In his proclamation the Presi¬
liability of Canadians ' every¬
pany to ask exemption from the dent said that "the outbreak of ;
and we are of the opinion that
where to serve in their coun-.;
Federal Government because it
war has resulted in dislocation of
such an excuse is not justified.
¥; try's forces.
'
.
;
transacts its business in a given
supplies from certain

Boards, will

conference

so

By All Associations

.

possible

President of the Ontario Associa¬

Real

are

proper

try during this emergency.

chairman of the National In¬

the

who

group
to

stitute of Real Estate Brokers and

of

to over¬

of Illinois bankers to the

tifiable

of the

Mara,: Toronto, administrator of
housing rentals for Canada, for¬

give

us

may

be permitted

regulations to
be issued under it.
Cyril R. De¬

tion

difficult for

place in the war damage
protection situation.
The report
a

willingly giving their all for the
defense of this country.
May I

administrative

mer

a

would

Post

which would

our

men

our

the

have

to

the

be a suggestion
opposition to this bill
indicates a disloyalty
on
the

rela¬

law itself and outline the basis for

rest

situation

There

that

general wartime
economic policy.
Karl Borders,
as director of OPA's rent division,

tionship

the

come.

from Price Administrator
Henderson, will be brought to the
conference
by Paul A. Porter,
Assistant Administrator, who will
discuss the rent provisions of. the
Control

such

serving

now

within
a

be very

mesage

Price

are

against

will be honorary
chairman, and Institute President
R. C. Nordblom, will preside. A
tate

discrimi¬

communities and permit one as

Association of Real Es¬

National

and to

bank

a

against these several banks

of the

Ore., President

close to

with

town

a

more)

or

nate

application, according to the
announcement. David B. Simpson,

their

is reasonably

one

within

organization believes that the
insurance companies should have

the

in

these Stations for such facilities.

Portland,

Estimated Loans Made

Purpose—

.

de¬

tails of the administrative regula¬

public, will discuss these adminis¬
trative regulations item by item
as well as detailed procedure for

tivities, R. W. Forshay, President
of the Association, sets forth that

be¬

no

his mid-year report on ac¬

In

nois which should be avoided if

fectively and as fairly as possible,
Robert C. Nordblom, Boston, its

president, states. Principal speak¬
ers before the conference will be

with nominal cost to the nation.

less trouble in the State of Illi¬

ef¬

for

percentage
follows:

...

and needs no re¬
here.
However,
this

petition

this

issued

;

Newspaper and radio storprofit that this great na¬ .-.
ies indicating ex istence of a v
tional enterprise can be carried
% dispute as- to >the need for ;
on by the War Damage Corpo¬
ration with a skeleton staff and !; -sugar, rationing between the

well

is

banking

Henderson

and

son

statement:

February •
which they;

and

made

each purpose

any

known to you

tion, the Institute has offered its
aid in seeing
that rent control
provisions where

industry to serve the country in
its time of trial without seeking

controversy with regard

The

wide

to

the

for

purpose

were

.

areas,

avoid

taken

measure

of

Breakdown

loans,

.

Congress has made for price con¬
trol, including where necessary
a

total

of

.

at the request

major, contribution to V
in defense

a

the housing of workers

been

•

Estate

conference is called

The

have

State

The War Damage Corporation iThei^ugarl^rajipnip^
branch banking
will
proceed ' as'v scheduled • for
will utilize the machinery, the
prominent in
early May,' it was recently an¬
their opposition to all measures M skill,
the experience
of our nounced in
a
joint statement is¬
proposed
in
Congress
which
great institution in the most
sued
by
Donald
M.
Nelson,
would
extensive
insurance
permit branch banking
operation
Chairman of the War Production
in States where such type of
yet seen in this world—the proBoard, and Leon Henderson, head
banking is prohibited to their ; tection of the dwellings, the
of the .Office of. Price Adminis-:
State
banks.
The
General
business structures, the indus¬
tration.
trial plants and the tools and
Assembly of this State has on
:
Following, a - conference, which
every occasion, when the subpersonal effects of all of the
had, been
called
in * connection
ject was brought up, confirmed
people of this great land. It is
with
this opposition and reiterated it
reports that the program
due to the willingness and the
as
public policy within
the
ardent desire of the insurance might be called off* Messrs. Nel¬

posed

Chicago,

April 29 and 30, under the aus¬
pices of the Institute of Real Es¬
tate
Management and the Na¬
tional

this

*

throughout the years been op¬

Thursday, April 23, 1942

and a -member of
the Council of Administration of
Group

tion.

At

VII

the

present

time

he

is

:serve

nation

"as-the
of

center

of

co-ordi¬

Federal- Civilian

De¬

fense

activities,
which
involve
relationships
between ; various
•Federal agencies and the State
and

local

governments." ''XX^.;X\

The White House

said

that Mr.

Landis will continue the "internal

prices. Lending of $33,- organization and management" of
769,000 made this the most active the OCD, but will perform, his.
February in home purchase loans duties "under the direction and
in 10 years,' he said.
Home con¬ supervision of the President" and
of rising

struction
count

for

loans
more

continued
than

a

to

fourth

ac¬

"with the advice

of of the

new

board.

and

assistance"

■

Volume 155

Number 4066

*

THE COMMERCIAL & FINANCIAL CHRONICLE

1635

WPB Freezes Bicycles

^ Changes In Holdings Of Reacquired Stock # Moody's Bond Prices And Bond Yield Averages
The
Stock

monthly compilation of companies listed

made available

was

issued by the Stock
.

April 16.

on

Exchange:

,

w\, „"

;

/

.

'

',

t
"

'

Company land Class of Stock—
Stores

Corp..

Shares '
Shares
,Previously 1' Per Latest
Reported
Report

v< '"i'

1

.

5%

preferred
American-Hawaiian Steamship Co., common
American Hide & Leather Co,; 6% preferred-™-^----!!.-...American Viscose Corp., 5 % cumulative
Armour & Cbi 'iDeL)i 7%v preferred

Common --i—..—I-

Barnsdali

—

-

Borden Co, (The), capital-—^.™
Case (J. I.) Co., 7% preferred

—

-

+—

-

Coca-Cola-iThe)

Co., :common

Oil Corp.,

—

-

common

+

Cuban-American Sugar Co. (The),
7 Vc cumulative preferred-

,

—----

5Vz%

*

-

?

preferred-' *

conv.

13,488
6,533

-

————-

•

317,359

»

«

19,866

cumulative A preferred—^——--——

6r,c

;

(The), $4.50 cumulative preferred—
'
800 •
freeport -Sulphur Co., common
...———
Fruehauf Trailer Co:, 5 %' conv. preferred——---——.
3,703 ;
General Motors Corp., common
236,040
General Railway Signal Co., 6% preferred
.
689
General Realty & Utilities Corp., 6% preferred—...;
General Shoe Corp., common
—:
Ul—
3,500 .,
Gillette Safety Razor Co., $5 conv. preferred—_
3,449
Goodyear Tire & Rubber Co. (The), $5 cum. conv. pref.— v
13,065 , ,
Household

Finance

Corp.,

International Silver

common

7%

Co.,

,

preferred

Interstate Department Stores,

Inc., 7#

——

preferred-———_

Jones & Laughlin Steel Corp.,-common—

5r/c

preferred

5r'c

preferred B_

A.,

;

..

---

—

-.

.

:

---

Madison
Mohawk

—

Aviation

National

National

Corp.,

capital—.———r-l__

Department Stores Corp.,

National Steel Corp.» common

Norfolk & Western
Otis Steel

<

Co.

6 'h

preferred

(The), $5.50 conv. preferred

Petroleum Corp.

——-

of America, capital

1

Plymouth Oil Co., common
—„i_„
——
Radio Corp. of America, $5 cumulative preferred B
Silk Hosiery

Real

Mills, Inc., 7% cumulative preferred—

Rustless Iron & Steel Corp.,

/ Safeway Stores,
'

common

—

.

(Frank

preferred

.'

——

common—I—

Co.,

G.)

—

v

-

———

Kv;/./.;*!)

.

1.380

shares acquired.
stock, were delivered

unissued

(3)

Retired.

(4)

'

••

100 shares acquired and retired.

Name—

• •

,

.div/ser., preferred—

Central Petroleum

v

.

Corp.,

common

———

:

/

'

!

106.92

116.41

113.70

118.17

106.92

116.22

104

—

..

.

Central Texas Oil

Co., Inc., common——

Inc.,

Inc.,

t. c. common

common

116.22

113.70

107.62

92.20

97.00

110.52

118.03/ 106.92

116.22

113.70

107.62

92.20

97.00

110.52

113.89

118.20

106.74

116.22

113.50

107.62

91.91

97.00

110.34

/113.50

117.80

106.21

115.63

113.12

107.09

91.34

96.85

109.79

112.93

ting

117.33

106.21

115.43

112.93

107.27

91.34

96.85

109.60

112.75

needs

—

—

110.52

114.08

114.08

available
needs

112.93

107.27

91.62

96.85

109.79

113.31

115.63

113.31

107.62

91.62

96.85

110.15

113.31

115.82

113.31

107.80

91.62

96.85

110.34

113.50

116.27

106.74

116.41

113.50

107.80.

91.77

97.16

110.70

113.50

117.02

106.74

116.41

113.50

107.80

91.91

97.16

110.70

113.70

30

117.08

106.92

116.22

113.70

107.80

92.06

97.31

110.52

113.70

117.51

106.92

116.22

114.08

107.62

91.91

97.31

110.70

113.70

became

117.60

106.92

116.41

113.89

107.62

'91.91

97.31

110.52

113.70

118.00)

116.61

114.08

107.62

frozen at

106.92

91.77

97.16

110.70

117.61

106.04

115.82

90.63

95.92

110.34

if

all

in

113.50

107.09

113.31

consigned to

106.92

116.61

114.08

107.98

92.50

97.47

110.88

114.08

er.

106.04

115.43

112.93

107.09

90.63

95.92

109.60

112.75

fined

1941

120.05

108.52

118.60

116.02

109.60

92.50

97.78

112.56

115.89

105.52

116.22

112.00

106.04

89.23

95.62

109.42

111.62

'

1941

crank to

106.04

116.80

112.75

10G.39

90.91

96.54

110.34

103.30

116.41

113.31

102.46

85.20

90.91

108.70

112.00

MOODY'S

(Based

YIELD

BOND

Individual

on

Avge.

AVERAGESt

Closing

Prices)

this
'>

Corporate by Ratings
Aaa
Aa
' /
A

rate

R. R.

P. U.

inches.

Indus

2.83

3.30

4.26

3.94

3.12

2.83

2.97

3.30

4.26

3.95

3.13

2.95

sale

3.34

2.83

2.97

3.30

4.26

3.94

3.12

2.96

2.83 '

2.97

3.30

4.26

3.95

3.12

2.96

3.34

2.83

4.26

3.95 Z ;

3.13

2.95

3.34

2.83

2.97

3.30

4.26

3.94

3.12

2.96

models

3.34

2.83

2.97

3.30

4.27

3.95

3.13

2.96

same

3.34

2.83

2.97

3.30

4.26

3.94

3.13

2.95

3.34

2.83

2.97

3.30

4.25

3.93

3.13

2.95

3.34

2.83

2.96 V;

3.30

4.25

3.93

3.13

2.95

3.34

2.83

2.97

3.30

4.25

3.93''

3.13

2.95

3.34

2.83

2.97

3.30

4.25

3.93

3.13

2.95

7

3.34

2.83

2.97

3.30

4.24

3.93

6

3.34

2.84

2.97

3.30

4.26 /

3.93

/

3.14

4

3.34.

2.83

2.97

3.30

4.26/

3.94

f

3.14

.

rC
«\
'

3—

2
t

'

.

STOCK

-U

EXCHANGE

:?■

i

-

.

2.84

2.97

3.30

4.26

3.94

6:

3.30

4.26

3.94

3.30

4.28

3.94

3.15

;

'

3.33

4.32

in 3.95

3.18

„

—

• •

4.32

3.95

3.19

in

3.01

3.32

4.30

3.95

3.18

3.30

4.30 f/ 3.95

3.16

;

;

1941

21,

/

2.83

2.98

3.29

4.28

3.93

3.13

2.84

2.97

3.29

4.27

3.92

3.14 /

2.97

2.84

2.95

3.30

4.28

3.92

3.13

2.97

2.83

2.96

3.30

4.28

? 3.92

2.82

2.95

3.30

4.29 /

3.93

2.86

2.98

3.33

4.37

4.01

2.88

3.01

3.33

4.37

4.01

2.82

2.95

3.28

'

20,

:

4.24

3.14

/

2.97

-

3.13
3.15

/

3.19

3.12 /

3.91

:

2.97

' 2.95

2.86

3.06

3.39

4.47

4.03

3.20

2.85

3.19

4.24

3.89

3.03

2.81

3.02

3.37

4.35

3.97

3.15

3.06

2.83

2.99

3.60

4.77

4.35

3.24

3.06

''

,'

■

■

'-'ri

computed from average yields on the basis of one "typical" bond (3%fl
coupon, maturing in 25 years) and do not purport to show either the average level or thi
average movement of actual price quotations.
They merely serve to illustrate in a more eom
prehensive way the relative levels and the relative movement of yield averagea, the let
ter being the true picture of the bond market.

complete

list

used

bonds

of

computing

In

these

Indexes

which

ties

1941, page 409.

stated:

also

included

of dried

26,683,000 pounds
at an f. o. b. cost

eggs

$25,824,000; 57,498,000 pounds
canned pork at $22,404,000;
24,368,000 pounds of cured pork
at $5,093,000; 37,297,000 pounds
of lard at $4,877,000; 3,290,000
of

•.

Electric

-

.,

,

;

The Edison Electric Institute, in its

,

mated/that the production

v,

1942,

was

kwh.

in

output
:

the corresponding

for

the

an

i

which

.month of March, 1942 and 1941.- Cotton consumed amounted to 966,compared with 893,-

with

compares

pounds of dry beans at $1,318,000; nearly 257,500 gallons of

The

concentrated
orange
juice
at
approximately $740,000; 40,878,000 pounds of granulated cane

1941.

sugar

PERCENTAGE INCREASE OVER PREVIOUS YEAR

Major Geographical Divisions—
New England—
Middle

9.7

9.0

12.3

10.2

10.1

8.8

11.5

12.4

18.6

14.8

11.7

7.7

13.3

13.6

28.3

28.8

13.1

12.4

Central

<

9.0

States—.

United

.

18.1

Rocky. Mountain
Coast.'.—.

2.1

,

r

26.4 "

25.3

States

14.2

J;

V

14.3

Fridav. April 17

Saturday,

'

i.

1942

1941

3.392,121

/-

3,004,639

+

April
April

1,538,452

1,702,570

Tuesday,

1929

20—

231.6

March consumption of cotton includes 5,400 bales distributed by
Surplus Marketing Administration through various cotton mattress

i programs.

,

'

■

■

•"

>:•"




■.;

J

■ ■

14

3,357,444

2,983,591

+ 12.5

2.550,000

1,537,747

1,687,229

Two

3.357,032

2,983,048

+ 12.5

2,508,321

1,514,553

1,687,229

28—

3.345,502

2,975,407

+ 12.4

2,524,066

1,480,208

1,679,589

Month ago, March 21
Year asro, April 21

3,348,608

2,959,646

+ 13.1

2,493,690

1,465,076

1,663.291

1941

1,480,738

1,696,543

Apr.

r

.

Apr.

11

3.320.858

2,905,581

+ 14.3

2.529.908

Apr.

18

3,307,700

2.897,307

+ 14.2

2.528,868

1,469,810

25

2,950,448

:Sy.-•

2,499,060

1,454,505' ;

v

1,709.331

Apr.

weeks ago, April 7

High—Sept. 9
Low—Feb.

1,699,822

_

TV'

.

,

■

/

•

V-vT'v

I • V

w..:

it;

""i

'

:

ti

.:•>

i

•

1942

i

>„

—

(■

■

„.>i.

2

.'-rVyi

229.5
186.1

—

17

233.3

_is
—

—

—

High—April 7 i
Low—Jan.

231.5

231.2

21

.

231.3

April 21

1932

1940

Mar.

; •

i—

———J

18

Monday,

2,553,109

1941

Mar,

—

/ 231.7

!

1$.9

over

232.3

=

'

Mar.

1942.

at

ill232.5

14
Wednesday, April 15
Thursday, April 16

1942

7

flour

.

Tuesday. April

DATA FOR RECENT WEEKS (Thousands of Kilowatt-Hours)

Week Ended—

1

Moody's Daily
Commodity Index

% Change

Mar.

white

/

8.4

11.6

Pacific

of

$2,895,000.

9.8

9.3

12.4

10.8

/

Mar. 28. '42

April 4, '42

13.0

Atlantic

Total

Apr. 11, '42

at $2,036,000; and 623,000

barrels

——Week Ended-

Apr. 18, '42

at

97.8,000; 5,136,000 pounds of but¬
at
$1,776,000;
29,782,000

increase of 14.3% over the corresponding week

-———

milk

ter

1942, was estimated to be

11,

evaporated

pounds of dry skim milk at $3,-

2,897,307,000

period in 1941, a gain of 14.2%.

ended April

week

3,320,858,000 kwh.,
in

24

of electricity by the electric light and

3,307,700,00ft kwh.,

of

cases

$10,552,000; 35,067<000 pounds of
cheese at $7,913,000; 32,439,000

current weekly report, esti¬

industry of the United States for the week ended April T8.

power

57,650
289 m,-';•
None
12.124
8.590 /,:-/

Output For Week Ended April 18,1942

/Skcwr l4.2% Gain Over Same Week In 1941

..

and imports and exports of cotton for the

bales of lint and 107,539 bales of linters, in February,

De¬

of

.

.

-745

the

Items bought in large quanti¬

pub

was

needs,

$877,353,000 for the 12^-month :
period ending March 31, 1942, said
the
Administration's advices,

These prices are

latest

other

all

.

3.55

and

April 17. Cumulative value of
farm
products
bought
for
lend-lease
shipment
and
other
distribution
needs
approximates

2.8C-

'

1940

1249.

p.

on

3.06

,2.72

''

26,

Reaches Record In March

2.98

3.42

v

Mar.

save

noted-

Purchases

2.98

3.13

1941—3.39

of

issue

was

partment of Agriculture reported

3.15

3.93

3.25

—

materials

lease

3.95

4.29

3.34

1941

bicycles in order to
war

2.99

.4.30

3.39

—

of

3.02

3.29

3.29

3.39

1942

the

"camel-back"

2.96

2.99

2.98

3.34

—

/about

.run

the

of
farm
products
reaching a monthly high record
of $104,370,000 were made bj/the
Agricultural Marketing Adminis¬
tration during March under, the'
general buying program for lend-

2.86

2.83

3.34

1942—

as

Farm Product Buying

2.99

2.87

3.35

bar

2.99

2.99

2.87

3.34

—

double

curtailment in the manufac¬

a

our

3.02

3.36.

—

30

which

sizes

critical

;

,

1,486

Level

prevent the

18-inch

3.01

3.32

3.34

6

AiV

the

frame, which also
adult bicycle, and women's

an

ture

2.98

3.00
3.01

3.35

—

—J—

t The

2,800

.

17
this

2.95
2.96

2.87

3.37

tlshed in the Issue of Oct. 2,

;5

1,350

to

that

The action of the WPB in order¬

2.96

2.88

,

of

ing

2.95

3.14

2.98

3.38

———

2

-

..None

said

styles.,

" 2.95

/

3.14

2.97

2.84

3.38

is

CLOSED

2.84

3.38

,

2.96

3.13

3.35

13'-.-——-——

13

3.30

3.34

-

20

2.97

;

3.34

—

—————

27

2.98

V:

Mar.'"27*

•

bicycles
than

more

"camel-back"

3.34

r

April

of

taken

was

3.34
3.34

9

,

19 inches

include

to

Officials

action

the

saddle

April 7 extended

on

order

21

.\

the

been used by

never

having frames

Corporate by Groups
Baa

of

consumer.

The WPB

.

Corpo-

ultimate

an

meas¬

of

center

top

and which has

11

6,550

•

the

frame

a

the

staff post of more than

112.00

115.89

1940.

2 Years ago

6,545/.

from

13

.

be

bicycle" is de¬

with

one

urement

,'

118.65

_

as

15

*

order

will

ultimate consum¬

an

A "new adult

16

>

the

These

116.4]

;

J

time

their destination unless

118.27

April

13,516

the

at

effective.

8

2,465 =
700
570
8.486 '

.

transit

17

356,644
)i 11,300

•

"freezing" order applies to
bicycles except those actually

18

^

get¬

available."

more are

20

Low

workers

The

115.90

.

8,931.,

..

defense

1942

Apr.

Low

them

113.G9

Average

High

have

call, essential civilian
next, and then anyone else,

115.63

1941

Jan.

to

first

106.56

Daily

/

have

the basis of essential

on

with

106.39

■

1942—

Report

——

b-nles of lint and 131,187 bales of linters, as

97.00

CLOSED

106.21

port showing cotton consumed in the United States, cotton on hand,

G31

EXCHANGE

116.32

April 20,

April 14, 1942, the Census Bureau issued its re¬

spindles,

113.70

116.34

Southern

cotton

92.20

116.41

STOCK

who

added that "stocks frozen and fu¬
ture
production will be
made

2 Years
ago

,

v .;

Golton Consumption In March At High
active

now, or soon will need them." He

1942_

West

Under the date of

113.89

106.92

Central Industrial

;

110.52

106.92

April 21,

26,474

^
~

———-a.™'—

97.16

117.32

:

309

-..Jione ;.

23
57,550
Sunray Oil Corp., 5 V2 % conv. preferred—272
Tobacco & Allied Stocks, Inc., capital—^
470
United Cigar-Whelan Stores Corp., common————
12,121
Utility Equities Corp., $5.50 div. prior .stock——-———-/ // ^ 8,390
Sterling,

114.08

118.10

1 Year ago

7,497..

32,400
104
59,400

: /

—-

110.70

2

32.000
3,710
60,400

——:

$5.50 div. prior stock

workers

97.16

27

Low

4.226

-A.), Inc., common/--—;

Industries,

114.08

62.20

107.62

114.08

110.70

92.50

107.62
113.70 /107.62

110.70

97.16

'

118.16

3

-

High

139,081

—

'Convertible preferred

114.08

97.16

92.35

9

4.220

—

—

capital—

Inc.;

92.35
.,

16

129,881

-

Oilstocks, Ltd., capital

92.35

of the terrific rate at which

23

27,078 •
• 27,028; ,
.7.258* 8,058
642
2
2.968 / ' • 3.243 y
.U 1,747 ^
1.946
2,535
V, 2,735,

Maryland, A preferred—

—

Starrett Corp., v.

110.70

118.11

,

.;

259
8,481 ".

,

preferred——————

7%

first

Niagara Share Corp. of

Selected

97.16

7

Jan.

'

/•.V:

114.08

107.62

Per Latest

.

,

Field,

110.70

6

^

Shares

^ 356,528
8,300
? 1,650
600
'569
8,186

—:

preferred————*—a———
——
New York & Honduras Rosarlo Mining Co/ capital——-.—

(b,

97.16

1 Year ago

•

—

-—

-

common—1—

Bryant, Inc..

Roosevelt

92.35

.13

•

.

———

Merritt-Chapman & Scott Corp, 6 '/2 % A preferred

JSchu/lte

107.62

107.62

9

>Knott'-'Uorp:;

North

113.70

cause

bicycles have been going to people
who don't need them, with too
few going to people like defense

6

issued on ApriM5, the follow¬

(L B.V Rubber Co.,

common

116.41

107.62

,

,

Mfg. Co., 6'/r preferred
—
—13,216
Corp,, commpn
—
1,386
Interstate Hosiery "Mills, .Inc., capital-—,
6,125
Ken-Rad. Tube & Lamp Corp., A common—None

B

106.92

,

20

23,000 shares acquired during/March.

Casket &

Corp..

114.08

113.89

Feb.

:

Reported

—Z

Dejay Stores, Inc.,

Lane

113.89

110.70

92.20

>

13

,

Electrographic

Nehi

110.70

97.00

23—

.

Writing Paper Corp, common—
Elue Ridge Corp., $3 conv. preferred—:
Cooper-Bessemer Corp., $3.50 prior preferred

Kleinert

113.89

96.85

92.20

113.70

Low

-

.Previously

American

-

110.88

92.06

107.62

.

Corp., $2.50 div/sew preferred——

/.//-Common

.

97.00

107.62

113.70

20

4,156 •
78,005
■
1,079,300 (6)
~: .V5.000
/:
v 16,735 /•/;;
-379
5,814
19.100
2,025
/ 1,283
V

Shares
v

Detroit

107.62

113.70

116.41

113.70 '

changes in their holdings of reacquired stock:

,

113.70

116.41

106.92

116.41

High

Crown

116.41

106.92

118.16
118.07

1

of fully listed securities which have reported

ing list of issuers

$2

106.92

118.18

.

8,000 shares acquired during February;

American General

118.16

—

of
WPB's durable goods
branch,
said that "the order was issued be¬

113.89
114.08

~16„

The New York Curb Exchange

-

110.88
110.70

Mar. 27

:
.rcV/ L-V
3,620 shares of previously

;

Such shares, together with
to acquire certain property,

(6)

/

96.85
96.85

20

(5)

j

92.20
92.20

116.41

acquired; 2,758 shares retired.

shares

230

107.62

107.62

116.41

NOTES

1,400 shares acquired,:

retired:

shares

900

(2)

.

113.70

113.70

106.92

Feb.
«

116.41
116.41

106.92

140,500/

—-

the

106.92

106.92

.

——

effect at 11:59 P. M., April 2.
M. D. Moore, section chief

113.89

106.92

4

.

140,000
Shcaffer (W. A.) Pen Co., common-::./—:—
3,986
Swift & Co., capital
-i
78,092
Transanierica Corp., capital
—zJ--—...——i—
1,048,300
United Fruit Co., common—
—1.300
United States Leather Co. (The), prior preferred
—l—*1
■
16,435
United States Rubbei Co., common
—
*
401
Universal Pictures Co., Inc., 8% preferred———5.741
Vick Chemical Co., capital—
18,900
Vulcan Detinning Co. (Thet. 7'a
preferred
'
'1,875
White (The S. S.)
Dental Mfg. Co., capital———
1,216
Shattuck

113.89

Indus

.

•

118.08

2

v.

common

cumulative

5'F

•

*

114.08

110.88

118.11

'

-.77,813
6.450 *v
3,593.;
——>.
2. ;
124,300
129,800,
- 5,200
' .J 7,700
—<—
*
____(5)
5,293
5,303
336
,
338
.
15,094
15,09.5,.
671
2,014,'

;

110.70

97.00

118.07

6,575
3,423

x

Railway Co.*. adj. 4%. non-cum. pref—

v

96.85

92.20

118.06

-15,600*;,'
..

92.20

107.62

-

18,735". *
19,800

: —-—
—71,701

107.62

113.70

6

_——
(4)
•-'+ 4,826-*
63,253*
25,301
25,301

20,235
18,494
10,800

5% cum; preferred—
Square Garden Corp., capital—.—
^—
Carpet Mills, Inc., capital—-4'—

Kaufmann Department Stores, Inc.,

113.70

116.41

—

High

,,;j

116.41

106.92

——_

4,149
15,765tM;

7,297
9,212
-4,816
61,191
24,476
24,476

106.92
f

10

3,525^.

.

110.88

8

.

•

97.00

9

-<2)
1,175 (3)
247,640 ,
1,191,.
v.,
r 1Q0

—

P. U.

92.20

/

——-

— __

R. R.

107.62

Aa

11

1,000,

,

Baa

113.50

Aaa

,V

.

Flintkote Co.

A

116.41

118.13

13

\

':Corporate by Groups *

_i——

14

9,550
10,118
13,000
318,319
23,366

*

.

Yields)

Average

on

*»

them, on April 2 froze the
sale, shipment, delivery or trans¬
fer of all new adult
bicycles, pend¬
ing the establishment of a ration¬
ing system. The order went into

106.92

118.12

—

move

need

PRICESt

BOND

—

15

/

V.3*

13,588 V
6,733..

8,850
10,648
12,000

Davega Stores Corp., common
—
petroit Edison Co. (The), common
:
Federated Department Stores, Inc., 4',4% conv. preferredFirestone Tire & Rubber Co. (The), common———_

——

Board, in
designed to halt the sale
bicycles to persons who do not

a

of

Corporate by Ratings *

rate *

117.96

—118.03

/I

31,254
4. 3,235
1609,604.
4,800
13,500

4,000
400

Bonds

1
—

—L_

7,100.
1,746 (1)
1,057,r

,

,

'

\

21
18

;.

are

Avge.

Corpo*

17

29.,500

7,222

iv-------*—-

,.

,

20

19,905
273,961
.6,122

4

Averages

.■.

^9,464.

'18,551
264,982
2,008
26,900
26,011
2,645
4..
70

''

-

16

-

.

u.s.

Qovt.;

v

:.

/•i

"

5,058

,

-

Century Ribbon Mills, Inc., 7Vo preferred-.
Chicago Yellow Cab Co.* Inc., capital—;—
Consolidated

-

—

Oil Co., common

(Based
Daily

69.10ft,/;//

.

6,500
1,246
1,056

-

Corp.; -common
preferred

6%

,4,10.3j

*

68,700

preferred--.-.--^-'-

Associates Investment Co., 5% cumulative preferred-*,
Atlas

3,303

.

averages

:

1942—

Apr.

'

bond yield

and

prices

MOODY'S

Following is the tabulation

/

•

the New York

on

bond

computed

given in the following tables:

Exchange reporting changes in their holdings of'reacquired

stock

Allied

Moody's

Of N. Y. Stock & Curb Listed Firms '£0$

; it;;

The War Production

219.9
171.6

234.0
—

!-•••>

—220.0

►'!-!*

;

*>

THE COMMERCIAL

1636

& FINANCIAL CHRONICLE

Lumber- Movement—'-Week

!

Ended April 11, 1942

.

Lumber
week

2%

:

the

nounced

:

from

regional associations cover¬
the operations of represent¬

ing

ative

hardwood

and

mills.

Shipments

were

business 34%

/

Year-to-Date

Reported

/•

-

,

first 14 weeks of 1942

>'j

for- the
4% be¬

was

low

corresponding weeks of 1941;
shipments were 4%
above the

shipments,
above

and

the

business

duction, and shipments
;ab(W6 production/

8%

15%

...

j

<

advances

Higher

for

week

April 12,1941, and the percentage, changes from a week ago, a
month ago, and a year ago; (2) percentage changes in subgroup
indexes from April 4 to April 11, 1942.

thousand board feet:
SOFTWOODS AND HARDWOODS
1942
1942
7

|

Mills

Week

'

'

1941

Previous

Week

•

Class of Paper—

*' '

-

'

'/

460

460

247.696

—272,848

245.364

284,520

Orders——356,872

266,193

319,077

<;

....

Softwoods

•wif.

Hardwoods

1942 Week

Mills

4-4

All Commodities..

98.1

4-12

4-4

1942.

82.9

97.4

3-14

370

'

1942

1941

+0.2

12,846—100?/
13,643

—344,522

•

156

104.6

12,350

96

103.4

102.3

74-9

+1.0+18.3

+ 0.4

97.2

95.9

95.8

77.5

—0.2

118.1

117.6

116.4

103.9

+ 1.4

97.0

95.9

95.9

80.4

78.3

'78.1

78.2

73.4-

:—

Hides and leather products.,

Textile

97.1

Fuel and

106

104.2

97.0

119.8

Foods

104

117

products..—.—1---

Farm

1942 Week

;

Production ,_220,967—100%.

77.9

products,.—_
—,
lighting materials
Metals and metal products—,
Building materials—
Z,

,

103.9

A

Chemicals and allied products—

Government Employment

Housefurnishing

W^SAi New Record in Jan.
The" Civil Service Commission

reported on Apr. 6 that civilian
employment in the Government's
executive

103.8

advanced

branch

by

Jariuary^, 1041.

The increase- ocr
Postoffice De¬

103.7

103.7

97.8

110.6

110.2

—0.5

99.9-

—0.4

program."

Associated

advices

ther:;1.

of

due

to the

Press 1 Washington

Apr.

6

81.7

0

0

+ 18.8

91.5

0

+ 0.2

+ 14.0

89.6

89.7

89.4

78.1

+ 0.1

+ 0.3

99.4

98.5

reported

.

98.3

97.4

77.4

0

'■>

earlier.:..
The

i-x i

-

-f Government's

January

payroll

for

•

regular!

$259,404,945, compared with!
$178,413,671 in January, 1941.
i.
Civilian employment in Wash¬
ington's metropolitan area con¬
firmed to dimb in February by
was

9.920 persons-to a record of

403,

the (Commission
another report.

92.1

84.9

0

+ 0.8

+

97;9

97.9

85.6

+ 0.3

+ 0.6,

+ 15.1

96.6

96.1

95.9

84.7

+ 0.1

+ 0.8

95.6

95.3

95.2

85.9

0

+ 0.4

+

CHANGES

APRIL

,

IN

SUBGROUP

.

Residential

233;-

said

_

,

tivitie§,-

employment

Washington

area

persons.

-

retail—other

Cement

0.1

Cereal

Industrial,
Total

.

Furniture

Hosiery

0.4

Other

0.1

„

_

and

underwear.

0.1

miscellaneous

0.1

and

1.3
+

Other textile

Paint

1.2

vegetables———

Fertilizer

■Leather

1.0
products

——-—0.5

—

Bituminous

J.9

:

products—

—

—/

coal

paint

354,021
fy.

824,141

,

2,556,945

7

.

?4 f/
4

'

and

farnfr equipment—

;54

financing

.

on

AUTOMOTIVE

finance

AND

companies providing

109

4/

■

;

;

^

FINANCING-

^

_

,

\

■

"

;■

■'

:

■

retail

Total

wholesale

\

By all

■

-*

.

Ratio

,-r/r
-

Outstanding

..reporting....,

§

balances-

^

outstanding.

.

'

$33,484,533

$32,724,357

$1,071,894,006

94,872,747

94,003,844

342,710,554'

f-v.

1942>

•

balances

;

■';» 3

goods

and

13,294,131

.4,725,041

/

*W'i

11.174.021

42

297,105,486

13,073,422"

l:

'»

4.4

:

farm

2.

—

-

27
r.;/

consumers'

consum.

-

of paper,

acquired to
outstand'g

Feb. 38,..

ibalancest-

:—4,780,983

—

.

>

companies®

-

commercial

"

'

--companies;

.

automotive_^

retail—other

equipment

•

-..

automotive

wholesale—other

Industrial,

..

...

Class of Paperr—-

Total

/

./

Total

*

February, 1942 \ ' ^
% By all

■>■

.

.

...697,543

587,471-;

7,071,023

8

0.2
Total

or

sales

®Data

______—l,——,+-■-+"0.1

are

not

they

financings

based

could

on

tData

_$147,129,937 $145,114,135 $1,729,955,090

8

'

reports from all sales finance companies regardless of whether
a breakdown and whether or not they could
report their

supply

outstanding balances.,
based

•

- -

-

-r

.

/ /;/

„

.:

figures from sales finance companies able to report both their
acquired and their outstanding balances,
>
.
" /

paper

Automobile Financing Down 78% In
Diversified Financing Unbalanced

•

breakdown

a

goods.£v/\

DIVERSIFIED

40

1942, and Balances Outstanding "
Feb. 28, 1942..

;r

0.1

0.1

A decrease of 78% from January,

$11,834,451 •!

,

reports from sales

V

m er

697,543

Volume of Paper Acquired During February.

0.4

materials——

materials—

are

on

,

Month
jS Engineering Construction Down 40^ ln Week

1942, to February, 1942, in the

Engineered construction volume/for the week,' $148,577,000, is /
the number of cars
upl24%comparedwith_the_£orresponding;'1941,1'W€ek^%but■is40%^.,
announced April 13
below the high volume of a week ago as reported
hy. l'Engineering - by J. C. Capt, Director of the Census. This is identical to the per¬
centage decrease for new cars from December, 1941, to January, 1942.! News-Record" April lfr. Private construction just tops"last week's
"
For new: commercial cars; the number financed and the volumef of!
mark/ but is j20 % ^d^[la^j^r;rpublic wbrk/declines 42f
amount of

passenger car financing for both
and for the dollar volume of paper acquired was

paper

new

acquired

commercial

cars

were

both

were

down [71%;
23%

down

-Used passenger and used}

each for the number

of

cars

fi-(

the

by

preceding

week; -however,

it: exceeds

the

-

^1941;

week's

totall/

174%//""'*'~/?:[/:://'"~r"/"" *: v-™:— -L

^

by

the
in;the
747

new

The

cars

volume

kept

f ii •(

.1

1

brings 1942 construction^to $2,495,2
145,000, an increase of 44% over the opening 16-week period a yeari

Private' construction/ $227,474,000, is 52%"■ lower than in• the;-

ago.

period last

Public work, $2,267,67i;000/ iricreases 79 % over "a
result of the 138% gain in Federal construction/ -^ i

year.

year ago as a

of paper j, acquired

pace

/

.

vr:..k

.

'

^

'';

The trends for diversified .financing were- mixed.
Increases in
the-volume of retail paper acquired .were registered in the financing

■

The current week's volume

for the wholesale .financing; ofConstruction volumes for ,the>1941 week, last
week/and the cur/
with that for January, but there was-a drop of, rent week are:
/;•>
//■/
33% in the volume of wholesale used car paper acquired. 'The out/
'

ernment offices in this area in
February was $39,541,247.:
;; •




of total

,

goods—^ $8,345,925
igoodsi^iJi--._^^^^i/ v 4,'780.983:

financing of other consumers'1
-

Total

Grains

standing balances for: wholesale automotive, however, increased 19%,
as compared to a
,12% increase during the previous month... . .'

:>.l

based

are

their retail

goods
Decreases

2.1

;

products

$303,00$

consumers'

commercial,

(diversified

"Data

of

0.1

products————/

ini

'/'•••"

•

consumers'

0.4

0.8

goods

Petroleum

;

^ / 462,288

vhoresal&=-K>thc!r

0.4

leather products

0.6

farm

/

Volume?

■

Total

Total

..

foods—

Other

1.0

tile

Dairy products

.

1 1,845.525

modernization_-„____^_^_\;

1942

Other

/_/ * 1.8

_.L

Fruits and

1942

acquired during; '

3.1

.

'

-

>

dropped

/

and

/

,

/

8 \

breakdown
- '

a

Dollar volume of paper

The civilian payroll for Gov-

-

repair

92

-

•

,

•

FROM

_t

Commerce [ Department

building

Miscellaneous: retail

It. 3

2.3

-

During February,

-

[../vll_.llM;.fDollar

,

.

television sets, pianos and other musical instruments.Refrigerators (gas and electric)
household
appliances

9.3

>

i;,

Paper Acquired

/ ,,/.//
goods:

>

.r

Other

.Increases

Cattle feed

Cotton

INDEXES

11,

1942, TO APRIL

'

,

Brick and

4,

skins

anc!

FINANCING

i-i—V

+ 14.2

99.4

>

nanced, and 27% and 19%, respectively, for the volume of paper
f
acquired. ?
;
; /
/•/
' ' :
- «
- •
/
; cThe War Department added
..Retail automotive outstandings were down 8%, as.compared to a
3,§89 civilian workers, the Navy;
7%. decline during the previous month. The downward trend of re-;
"Department-3,078 and the Office
tail automotive financing is indicated by the chart.
The index, which;
of-,-: Emergency
Managementj
had risen from 100 to a peak of 178 during the period from Jan. 31,|
1,570.
■:
'
;
j
Due to
decentralization a<M 1940, to Aug. 31, 1941, has in six months dropped 50 points to 128.

£

Volume of

?

100

73,056,155

finance

companies providing
financing,/."
' / ■'

automotive

;

civilian

workers in the executive branch!

I

-

5

/

6,509,649
sales

Radio,

Tennessee

«"

wholesale

Class of Paper—
Retail—other consumers'

+ 2.1' .+• 28.4

92.2

98.2

95.6

products and foods

Other

Commission, Panama Canal and:
Valley Authority, to¬
taled T,015,98P in-January,> as
compared, with 497,354 a year!

-

96.7

products.,

Anthracite

The Commission showed that

.

92.8

fur¬

//

employment in 10 "principal war
agencies," such as the War and
Navy
Departments,
Maritime'

■

and

2

87

1.567,640

>

reports from

DIVERSIFIED

All commodities other than farm

PERCENTAGE

CV 4

commercial)

on

6

,

522,425s

27,925,166

commercial)

and

based

retail

4,002

"

+ 14.9

Meats

f

97.1*

97.1

+ 10.6

164.1

•

92.8

partment's drop of 53,564 seasonal
employees "and therefore shows
expansion

97.1

0.3

104.1

Raw materials-

Hides

■r

their

2,095,236

2

91

$79,565,804

and

(pass,

are

3
i-a

553

77,250

6.2

+
-

89.7

Livestock and poultry
Shoes

f

2,681
tractor-trailers

Dollars

$32,100,467/

automotive.:

(pass,

cars

°Data

6.1

+ 0.2, +

+ 0.1
"0

+

104.3

Manufactured products
All commodities other than farm

curred despite the

definite

97.1

Semimanufactured articles

32,177 persons in Jan¬
uary to a record total of 1,703,099,
as
compared with
1,153,431 in

t

cars

Used

-Volume

100

cars

trucks, buses, tractor-trailers
wholesale

New

+ 25.2

104.3

goods—

commodities

Miscellaneous

another

war

Total

+ 1-3, + 20.8

+ 0.1

110.5

110.5

+ 39.7
+ 1.3

During February, 1942

% of total

cars

buses,

passenger

Used

+ 2.9- + 15.3

-

a

trucks,

4-12

1942

1941'

97.1

1942

97.9

■

3-14'

3-28

41942

1942

Commodity Groups-

-

Shipments ^_259,205

;

passenger

Furniture

m,

Orders

New

Used

April 11. 1942, from
4-11
»

the

7"

84,486

Percentage changes to

237,558

Shipments

as

the vol/

on

Companies

FINANCING

Number

automotive.

,'(1926=100)

475

Production —233,813

retail

New

of

'

Wk, (rev.)

'

-

financed and

cars

—Number of Car*—

The

and

the number of

on

AUTOMOTIVE

certain

following tables show (1) index numbers for the principal
groups of commodities for the past three weeks, for March 14, 1942,

V/\

;

financing by all sales

Number of Cars Flrtanced- and Volume of Paper
Acquired

prices for raw cotton were reflected
yard goods and underwear.

reported

/ v;*

--

Sales—Finance

in

were

■ - ■

acquired.- The indices of. outstanding: balances "for
February were obtained by calculating the percentage changes from
January to February, as shown by matched schedules, and by linking
these percentages to the indices
previously derived for January, 1942:
Figures of automobile financing for the month of January, 1942, were
published in the April 2, 1942, issue of the "Chronicle," page 1348. :

building materials
such as brick, cement and plaster while paint materials, particu¬
larly rosin and turpentine, declined.

11, 1942, for the cor¬
responding week a year ago, and
for the previous week, follows in
5

prices

- •

For wholesale financings the?

of paper,

prices for hides effected higher prices for
Quotations for goatskins and sheepskins

in prices for cotton yarns,

ended April

-

of Feb. 28, 1942; the volume of
goods other than automotive

as

report for January in that the month of January, 1942, is used

sharply.
Continued

^Softwoods and Hardwoods
current

up

consumers'

outstanding balances.;

base for the indices
ume

corn

rose

less.

the

were

report differs from the

Total

for

for

should be used to indicate the total amount of
finance companies in the United States; This

,

declines in

Earlier increases in

of the

shoes and leather harness.

1942, compared with 39% a year
ago.
Unfilled orders were 24%
greater than a year ago; gross

Record

equipment

The compilation of these current trends is < based bri
monthly re¬
ports from 292 sales finance companies in the United States. The data
are published
as reported without adjustment for seasonal or
price
fluctuations.
Neither the dollar volumes 'reported nor the indices

higher for butter, fresh pork, mutton, dressed poultry and
meal, rice, dried fruits, canned salmon, salt and sugar.
Nothwithstanding the recent decrease in food prices they are 1.3%
higher than at this time last month and in the past year have risen
25%. Cattle feed prices advanced 1% during the week.

'

12%

milk, citrus fruits and white potatoes.

Seasonal

for

gross stocks was 54% on April IT,

were

acquired

paper

4%

financing, respectively;

were

Supply and Demand Comparisons
$he ratio of unfilled orders to

stocks

outstanding balances

retail

prices for fruits and vegetables together
with lower prices for milk, certain cured meats and for flour and
oatmeal accounted for the decline in the foods group index. Prices

1941

were

farm

ratio of the volume of
paper acquired to the outstanding balances is
much higher,
being 27% and 42% for automotive and for diversified

;

27% above pro¬

was

and

The volume of retail automotive
paper acquired during February

is 3% of the

of

eggs,

For the 14 weeks of 1942,

period.
new

orders

new

orders ' of

the

commercial,

Although prices for agricultural commodities rose less than
1% during the week, they are more than 2% higher than
a
month ago and nearly 40% above the mid-April level of last
year.
In the past week average prices for livestock rose 2.3% led
by sharp increases for cows, steers and hogs.
Quotations were also
higher for apples, onions and sweet potatoes and for barley, flax¬
seed and wool.
Lower prices were reported for corn, oats, rye,
wheat, for calves and live poultry in the Chicago market and for

Comparisons

production

industrial,

as against a 2% decrease for the previous month.
Wholesale
diversified outstanding balances continued to pile
up, showing a gain
of 18% as compared with an increase
of'7% last month;"

is

J/2

1935-39 shipments in the
.

for

ances

slightly

dropped-0.2.%.

ing Week of 1935-39 and 145% of
week/.'

■■/: v:

outstanding balances for retail financing of consumers' goods
other than
automotive, were down 3%, which is identical to the per¬
centage decrease reported for the previous month. ' Outstanding bal¬

r

greater. The indus¬

54%. .' .// ,/

The

.

companied by advances of 0.4% for farm products and 0.1% for
products, metals and metal products and miscellaneous com-,
modities.
Fuel and lighting materials declined 0.5% largely be¬
cause of seasonally lower prices for coal and for gasoline
in the
California • area. Average prices; for foods in primary markets

of the average
of production in the correspond¬
average

automotive)awas

textile

try stood at 131%

same,

an¬

on

the index has risen 1% and it is now 18% above
'
The Labor Bureau's announcement further says:
'
An increase of 1.4% for hides and leather products was ac¬

production; new orders 53% above
production. Compared with, the
.corresponding
week
of
1941,
production was 6%
less, ship¬
ments,
11%
greater,
and
new

47% ,• miscellaneous -retail; up 44% v /

up

up 5%:; .Losses were registered in the volume of,papers
acquired for the-financing of-furniture, which wasr down 'l'2%, andv
residential building repair and
modernization/which was down
8%V The volume of-paper acquired for. industrial,
commercial, and
farm equipment financings was
up 57%.
The volume of.wholesale
paper acquired for diversified financing (all commodities other than

In the past month

17% above

were

appliances,- up 15%, and radios, pianos £nd other Musical

of

the corresponding week of last year.

softwood

.

Thursday," April 23, 1942

instruments,

stock and its

Association

Manufacturers

refrigerators, which

household

April 16 that except for sharp increases in prices for live¬
products, wholesale commodity markets were compara¬
tively steady during the week ended April 11. With a gain of 0.2%
the Bureau's comprehensive index of nearly 900 price series rose to
98.1% of the 1926 average, the highest level since September, 1928.

less, new
business 12% greater, according
to reports to the National Lum¬
ber

Statistics,-U. S. Department of Labor,

The Bureau of Labor

previous week,

4%

were

*

Again AdvancedSlightly In April jI Week

production during the
April 11, 1942, was

than

less

of

Wholesale Price Index

s

ended

shipments

v

/

t

.

l

.

•

•

v•;

...

•:)

,.r~*

if

Apr. 17, 194 U/-

Total

construction

Private

Public
State

-

iL-l-C.ii----J

construction.

cpnstruction
,;
and' municipal'2-___;_:—12_

Federal

■

$66,308,000,
17,185.000

^

/
'

49.123.000

/

/13.772.000;:-

/

13.774.000 *.<&

232 572.000

,/ [
22.'228.000'* 4

13.4.803.00))
7:631.000

26,427,000//; it V 216,344,000 //

.^127/72,000

22.696.080^
:

Apr. 9,1942 :;! f/ Apr.
16.19*2 jf'
$246,344,000 w/r- S148.377.000
s.

•"

rf» '

.

:%■

■

<.v,

i.■

<:

C-

(.

i3

-i -1

<-,S

W

'.v-v

'A'
Volume 155

j

THE COMMERCIAL & FINANCIAL CHRONICLE

Number -4066 AA-t

;

4637

''r V l'r! !'■

/■ if'; fi, A

!

Pennsyl-r
vania anthracite for the week ended April 11 was estimated at 1,112,OOQ tons, an increase of 232,000 tons, or 26.4%K;over the preceding
week. When compared with the output in the corresponding >yeek of
1941, there was an. increase of 478,000 tons (about 75%). The calen¬
dar year to date shows a gain of 5.1% when compared with the corre¬
.The U. S. Bureau of Mines: reported that production of

sponding period of 1941.

NYSE Annual Shows: : i i

Weekly Statistics Of Paperboard Industry

Weekly Coal And Coke Production Statistics!

i. :

We give herewith latest figures received by us from the National

.

Paperboard Association, Chicago* 111.,- in relation to activity in the

paperboard industry.

:

' :

!'• '"« ;

V !

;

The members of this Association represent

83% of the total in¬

dustry, and its program includes a statement each week from each

production, and also a figure which indi¬

member of the orders and

.

:. The Bureau of Mines also reported that the estimated produc¬
tion of byproduct coke in the United States for the week ended
April 11 showed a decrease of 12,000 net tons when compared with

^

the

cates

figures

output for the previous week. Coke from beehive ovens increased
-/•'! 3,200 tons during the same period.,
;
The Bituminous Coal Division, U. S. Department of the Interior,
in its latest coal report states that production of soft coal in the
week ended April 11 is estimated at 11,250,000 net tons. This is a
sharp increase over the preceding week, when output was curtailed
by the holiday on April 1, and is higher than, any weekly figure
recorded for the month of-March,-1942.
•,
.

activity of the mill based on the time operated.

are

Drop In Secur. Business
Member : firms

York

These

last

direct

.

UNITED

ESTIMATED
NET

TONS

10,500

1,078

157,854

135,851

2,019

180

1,853

1,580

Yearbook,

during the week

(Subject to revision.
1

;

:

converted into equivalent coal assuming

MM

554,417

98

MM

530,459

93

—

640,188

743,637

.

673,122

528.698

102

665.689

493.947

101

781,805

weeks)

668,230

640.269 .;IZ

.

(5

838,298

436,029

101

100

1940

amounting to $2,104,255,000,
299
preferred
issues rpaid
$330,581,000—a- total of $2s434r836,000, according to the d'Year
Book." As a result of • 1941Pdisand

—

176,619" "

168,256

582,287

11

159,337

164,374

575,627

99

85

18

167,440

165,795

574,991

98

86

25

165,279

168,146

568,161

100

86

1

170,597

165,420

568,264

99

86

says the 6'Year
Book," dividend paying comrpoii

and

..

.

85

1942

576,923

97

570,430

99

87

160,889

550,383

96

1,112,000

880,000

87

1,056,000

836,000

602,000 15,119,000 14,383,000
------

151,900

148,700

1,665,200

164,875

554,417

101

87

respectively,

181,185

166,080

567,373

102

87

163,226

553,389

101

88

20

149,874

166,948

535,556

101 rt

88

27

116,138

124,258

523,119

147,419

'140,263

530,549

coke—

\

United

1,169,200

1,157,200

total

States

t

t

16,877,500

stocks

common

88

76

change

••

'''

"

3

based

year-end

on

The Year Book shows

1942—Week EndedJan.

(

a

1)19%,

'

'•>">

2,145,600

7,000

By-product coke—

and

profits.

149,021

Dec.

1,780,500

169,111

6

13

Dec.

19,237,000

29

Dec.

634,000 15,915,000 15,140,000 20,730,000

•(Commercial production

show^O.

preferred stocks
typical yield of 9.3%

86

165,397

145,098

bursements,

Dec.

192.9

1941

159,860

156,394

22

Nov.

Apr. 13

Apr. 12

Apr. 11

1941

169,585

15

Nov.

-Calendar year to date
Apr. 12

1942

8

Nov.

Apr. 4
'

4

Oct.

Nov.

♦Total, incl. colliery fuel

total

paid dividends aggregating
$360,367,000—a ; total of $2,641-,
021,000. Of these same issues, 583
common stocks
paid dividends (in

sues

Oct.

ANTHRACITE AND COKE

PENNSYLVANIA

Week Ended

States

760,775

^

MM

Nov.

OF

1942

'

649,021

•

States,
foreign

Oct.

§Apr. 11

Beehive

99

MM

V

1941—Week Ended—

pound of coal. Note that most of
competitive with coal.
(Minerals

13,100 b.t.u. per
is not directly

-

PRODUCTION

anthracite—

United

568,264

February

(In Net Tons)

Penn.

831,991

January

statistical convenience the

SSubject to current adjustment.
ESTIMATED

839,272
_

five

Oct.

products
page 702). i
;

petroleum

1939,

94

March

barrels produced

of

94

578,402

.1942—Month of—

75370

84,527

91,153

5,772

5,475

6,000,000 b.t.u. per barrel of oi) and

supply

86

576,529

630,524

December

5,676

tTotal

737,420

649,031

November

production of lignite.

the

807,440

October

1,697

purposes of historical comparison and

88

642,879

_

and

stock issues listed1 op the
Exchange paid cash dividends ag¬
gregating $2,280,654,000 and 322 of
the 398 listed preferred stock is¬

MM

509,231

cities in 44

territories

During 1941, 627 of the 834-com-

MM

608,995 ;

mem¬

mon

MM

84

488,993

602,323

MM

659,722

August

(Crude petroleum-?* *• •
Coal equiv. of weekly

'"includes; for

■

509,231

July

142,743

output

:

634,684

June

1937

11,250

i

fuel

656,437

of

1942,'were

1,

•MM

,l
82
•r','A: 83

.

with

countries.

81

t

-

447,525

-

'

Apr. 10

1941

1,875

Total, incl. mine
Dally average

726,460

337,022

571,050

857,732

September

Apr. 12

1942

1941

1942

1942

§Apr. 11.

Apr. 12

Apr. 4

(Apr. 11
^Bituminous coal—

■

261,650

548,579

.

652,128
y-

75

offices

of Jan.

as

located in 349
two

608,521

April
May

1, :

1942;

reduced from

connections

Branch

ber firms

202,417

629,863

wire

lished.

Activlti

Cumulativt

Current

.vWtf

♦'.

673,448

March'

.

PRODUCTION OF' SOFT COAL, IN THOUSANDS OF
DATA ON PRODUCTION OF CRUDE PETROLEUM
-January 1 to Date-Week Ended

STATES

"

Percent of

y

.

Tons

Tons
'

1941—Month of—

January
February

COMPARABLE

WITH

Ordzrs

Remaining

Tons

Jan.

of

as

Jan. .1,

on
were

members, declined from 3,026, to
2,606, according to the Stock Ex¬
change
Year
Book,
just "•pub¬

,f*

Unfilled
Production

Orders

591

557;.

New

decreased

868, and non-member cor¬
respondent firms, which maintain

STATISTICAL REPORTS-BORDERS, PRODUCTION, MILL ACTIVITY

Received

to

the

978 to

advanced to-equal-100%, so that they represent the total

Period

from

year

1941,

of

Exchange

branch offices

the

-

Stock

88

86

which

listed

have

list of

a

the,'Ex¬

on

paid

cash

dividends consecutively for 25 to
94

101

years. Heading this list is the
Pennsylvania
Railroad,
which
made its first, payment in.. 1848,
followed by the Continental In^
surance Co.
(N. Y. and the Corn
Exchange Bank Trust Co. qj^New

Jan.

ESTIMATED

STATES

BY

WEEKLY PRODUCTION OF COAL,
[In Thousands of Net Tons]

Apr. 4

102
101

York, both of which made their

385

100

267

239

412

,7 41

18

11

38

70

130

61

'

125:

7 86 ,7

•

1 '

*

tt
342

660

933

285

324

58

27

41

75

159

115

95

159

850

236

588.-

648

7

177,823

165,081

505,233

140,125

166,130

476,182

100,

101

first

101

During 1941, the "Year Book"
further reveals, 112 applications
to list 107 stock and 66 bond is¬

157,908

211

255

121

203

45

9

28

47

7

8

7

4

442,556

100

101

169,249

436,029

100

101

153,269

428,322

S3

101

161,888

145,000

;

_

52

5

465,439

168.394

4

ll__—-

188

40

169,444

101

144,061

28l„II—II——IIIII

620

209

/1
&

do not

138

881

102

100

150

'•*

165,240"

102

101

514

59

167,424

102

,

necessarily equal the unfilled orders at the close. Compensation for delinquent reports,
stock, and other items made necessary adjustments of unfilled
orders.:*A
4 ".-; ...
-v^gv
■£■££ ££] ■■■ '■££■

1,471

175

514,622

orders made for or filled

tt

r

1

525,088

169,735

Note—Unfilled orders of the prior week plus orders received, less production,

..184

470

527,514

165,360

14

Apr.

1,122

166,095
'

101

Apr.

2

1

22

Missouri
-•

—

Maryland

Michigan——

100

1923

1937

v

Kentucky—Eastern
Kentucky—Western

493,947

Mar.

425

Indiana——"

and

164,601

Mar.

1,133

Kansas

1Q2

163,067

avge.

2

Georgia and North Carolina-

—

102

28

fl April
1940

107"

Iowa.—

21::::::::::::::::::
•5

Apr. 3

48

Illinois

102

Mar.

354

1—-

102

101

Mar.

5

3

Arkansas and Oklahoma

Colorado

101

Feb.

2

\
—

102

522,320
510,542
496,272

1941

1942

State—
Alabama

101

168,424

Apr. 5

Mar. 28

1942

528,698

162,894
156,745
157,563

Apr. 6

—Week Ended

'.

167,040

7

Feb.

railroad carloadings and river ship¬
ments and are subject to revision on receipt of monthly tonnage reports from district
and State sources or of final annual returns from the operators.)

Alaska——--.

31

161,713
181,070

Feb.

weekly estimates are based on

current

(The

167,846

24

Feb.

revision.

162,493

17

Jan.

dredge coal, and coal shipped by truck from authorized
colliery fuel.
(Comparable data not available.
SSubject to

and

washery

(Excludes

10

Jan.

Jan.

•Includes

operations.

—

a

.

,

Fertilizer Ass'n Price Index
The

42

general level of wholesale

63

70

54

57

49

26

27

18

21

32

59

37

24

34

35

**16

390

1,772

3,531

106

121

14

20

pared with 126.8 in the preceding week.
was

<

726

148

328

2,673

'

687

1,780

152

57

109

6

/

...

2,868

129

Pennsylvania bituminous
Tennessee._

8

7

15

Texas

Utah

92

25

42

57

70

353

131

230

213

__

31

29

26

2,250

1,513

1,249

1,256

816

912

215

520

430

778

140

105

83

71

The

35

465

115

,

32

116

v

__

In the week ended April

A month ago the index

249

2.128

Virginia—Southern
Virginia—Northern

tWest

Wyoming

124.0 and

year

in

gain

substantial

a

104.4.

ago,

and building

in food

increases

index

food group advancing quotations were

tt

2

tt

tt

**6

10.500

3,327

6,953

7,241

10,836

880

11,150
1,158

655

709

1,092

1,974

11,380

12,308

3,982

7,662

8,333

the

was

of

result

net

material prices.

In the

registered by 12 items while

12,810

(Other Western States—.

11 j 77

only 4 declined, causing another marked rise in the food price in¬
Total bituminous

coal

§ Pennsylvania anthracite

dex.

The

level.
Total, all coal—
♦Includes

C. & O.; Virginian; K. & M.; B. C. & G.;
and on the B. & O. in Kanawha, Mason, and Clay counties.
tRest of State, including
the Panhandle District and Grant, Mineral, and Tucker counties.
(Includes Arizona,
California, Idaho, Nevada, and Oregon. §Data for Pennsylvania anthracite from pub-;
lished records of
the
Bureau
of Mines.
([Average weekly rate for entire month.
••Alaska,

operations

Georgia,

North

on

the N. & W.;

Carolina,

and South Dakota

included with "other Western

"

States/', ttLess than 1,000.tons.

..

.

;

,

price of southern ptne was adjusted

This advance

sponsible for

combined with

Small increases

age.

were

dex

lost

of

the

increase

an

week's gain as

dropped off.

Bank

debits

as

13% From Last Year
$16,875,000,000.

above the total reported for

At banks in

ago.

the corresponding period
year

ago,

preceding week there
ond preceding

-./

-

.■,

other reporting centers there was an increase of 19%.

25 advances and 11 declines.

were

COMMODITY

[*1935-1939

.

=

[In

millions

Week

Bears to the

of dollars]
Week Ended

Apr. 15, Apr. 16, Apr. 15,

Federal Reserve District—

1942

1941

125.6

25.3

8,369

7,016

54,199

51,072

Preceding

Farm

Year

Month

Week

100%,

against

members

99.95%

was

for banks

During 1941 the high price paid
for a Stock Exchange member¬
$35,000, in January and
and the low price was
$19,000 in December. This,; com¬
pares with a high of $60,000 in
1940 and a low of $33,000.
ship

was

The
the

Book"

"Year
of

names

the

also

contains

signers -of the

original "buttortwood tree" agree¬
ment, when the Exchange had its
origin on May 17, 1792, incident
to the 150th anniversary of the
Exchange next month.
included

the

is

the

in

"Year

list of 87 members of

a

Exchange

and 75 employees
who were in the

of the Exchange
armed

or

Federal

executive service of the

Government

of March

as

Ago

Ago

Red Cross War Fund \
Drive Exceeds Quota
President Roosevelt anndfliiced

Apr. 19

1942

1942

1941

on

121.6

99.0

Red

124.6

York
;

commercial houses.

99.45 for

and

Mar. 14

98.1

137.3

136.1

159.3

159.0

159.0

137.7

138.7

133.8

194.5

183.8

105.7

113.9

115.3

119.8

92.3

133.0

Oil

Products

Exchange

Apr, 11

193.3

Cottonseed
23.0

the solvency record of New

/

year

-!Ti

138.0

Fats and Oils

1941

573

•

4,180

York

1942

Total Index

Apr. 16,

1942

3,722

660

Boston
New

13 Weeks Ended

Apr. 18

Group

successive

15, 1942.

100]

Each Group

'

1

third

the

PRICE INDEX

Latest

l

"

For

Also

Compiled by The National Fertilizer Association

•

was

against $1,669,438,000 in 1940.

Book"

28 advances and 8 declines; in the sec¬

were

week there

WEEKLY WHOLESALE

the

SUMMARY BY FEDERAL RESERVE DISTRICTS

lower

was

balanced, with 25 price series advancing and 26 declining; in the

a year

and at

likewise

than offsetting increases in woolen yarn quotations,

more

increase of 5%

New York City there was an

compared with the corresponding period a

cotton, grains, and

During the week price changes in the index were nearly evenly

Total 'debits;dur¬

ing the 13 weeks ended April 15 amounted to $141,028,000,000, or
14%

re¬

resulting in the textile price index easing off slightly.

leading centers for the

reported by banks in

'week -ended April 15 aggregated

and

was

Prices of cotton goods moved

back to the level of two weeks ago, raw cotton

price,

in brick

The farm product in¬

commodities.

previous

most livestock quotations

bond volume/ (par
$2,111,805,000,
as

reported

value)

ceiling August,

new

registered by the indexes of chemical

drugs and miscellaneous
most

to a

sharp upturn in the building material price aver¬

a

and

in

Bank Debits Up

the

Stock

all-commodity

the

'f-

Exchange in ,1941 was *A70,shares! !compaxe<^ with
207,599,749 shares in 1940,\ while

•

29

;

compiled by The

index

April 20.

*

'

reported stock volume on

the

18, 1942, this index rose to 127.7% of the 1935-1939 average, com¬

64
;

Fertilizer Association

National

393

__

Virginia..
V/ashington—s.•West

>v

according to the price

higher last week,

were ' ap¬

12 applications
and;. 2 bond issues
were by companies not previously
represented on the Exchange's

again 603,671

was

766

593

Ohio

Exchange

stock

13

The

Again Higher

commodity prices

New Mexico

50

the

on

sues

proved. Of these

for

list.

Montana

North and South Dakota

distribution in 1854.

133.8

127.0

99.0

104.5
'

99.4

March

for
the

the

American

Fund

Compaign

that

31

War

Cross

raising $50,000,000 has passed
goal, with funds aggregating

■

Philadelphia

553

7,542

10,297

8,780

5,811

"4,808

__

Cleveland

815

Richmond

448

•

375 "

Cotton

6,595

.

Grains

—

—

Livestock

;

:

4,049

17.3

Fuels

117.4

117.4

113.3

102.2

1,673

1,486

21,992

18,965

10.8

Miscellaneous

128.3

128.0

127.5

114.5

357

309

4,622

3,755

8.2

Textiles

149.5

149.7

146.9

120.5

Metals

103.4

374

Atlanta

Chicago
St.

501
788

•

Louis

318

•

7

4,935
'

commodities-

Minneapolis

214

172

2,599

2,065

7.1

104.4

104.4

104.4

Kansas

349

318

4,517

3,679

6.1

151.7

140.0

139.6

294

259

3,823

3,114

1.3

120.7

120.3

120.3

.3

118.7

118.7

118.9

115.3

115.3

115.3

101.2

104.1

104.1

103.8

99.7

126.8

124.0

City—

Dallas
San

957

Francisco.

798

12,323

''

10,105

Fertilizer

materials-

Fertilizers

10.875
New

York

City*

140

other,

133

other reporting centers

141,028
49,021

46,639

:

♦Included in the national series covering

.

5,387

79,379

67,057

12,628

.3

124,004

■■■ '3,398

10,309

6,091

^enters*




9,620

3,807
977

-

V.'

835

.

141 centers, available beginning with 1919.

All

100.0
"Indexes

April

19,

groups

on

1926-1928

1941,

81.3.

127.7
127.7

combined
base

were:

April

18,

1942,

99.5;

April

11,

$65,000,000 and additional funds
expected. The President praised
the response

of the American peo¬
ple as magnificent and said it in¬
dicated
their
determination
to

118.1

make

104.9
■

win the war.

any

sacrifices necessary to
7

107.0

11
1942,

98.8:

The

Red

Cross

funds started

on

campaign

for

Dec. 12 and the

President's appeal for

funds

was

reported in these columns of Jan.
1, page 34.

1638

THE COMMERCIAL &

Opposes Advancing
N.Y. Tax Payment Dale
Opposition to a bill in the N. Y.
Legislature advancing the
tax payment date of business cor¬
State

134,425

to pay
March 15

on

letter

a

*

14,657

Atl.

or

the

to

Legislature,

P.—W. R.

^1942 '• "..1941.
of

Ala-

Association

called

the

1.019

•;:" 5,965

4,415

4,791

3,865

4,324

429

464

328

236

160

1,226

50

42

36

158

1,029
297

2,278

1,550
426

!

heretofore

was

one-half

is

so

that

on

payable

now

date

payment

advanced

May

15, the second half being payable
Jan.

on

15 of the

following

,

4,082

4,002

year.

these

troublesome

all

of

the

war-time

regulations
Instead of ad¬

presently imposed.

vancing the date of payment, the
Legislature should aid business
by making the tax payment date

15,281

172

•

179

186

& St.

L..____

Coke

loading amounted to
preceding week, but
corresponding week in 1941.
the

3,311

1,295,;;;

_

Northern

1,402

weeks

10,126

and

be able
to get initial allotments of camel-

Four

back

Week

for

local

passenger

tires and

car

weeks

Four

rationing boards may issue
for purchase of new

of

weeks
of

Week

February™——__u.«

of

March

*

April

3,066,011

2,489,280

_

11

828,890

—

814,233

—

r

683,402

tubes

for

and

List

B

trucks

passenger

is

679,8

619,105

;

contained

in

10,750,195
10,756,195

11,795,608

—.

cars

9,932,470

j

The following: table is a summary ot the freignt carloadings

Amendment No. 4 to the Revised
Tire

—

.

the separate railroads and systems for the week ended

Rationing Regulations, an¬
on April 7 by Price Ad¬

for

April 11, 1942.

nounced

During this period 90 roads showed increases when compared with

ministrator Leon Henderson.

the corresponding week last year.
REVENUE FREIGHT LOADED AND -RECEIVED)- FROM

The

amendment, which went
April 10, prohibits the
application of truck type camelinto

(NUMBER

effect

back

tires to

to

be

used

on

tires.

L

,

'*»

<••"*.-v.-••

'•

*•

»
•

V

,

;

,

vvJV-'v'-*'/•

said:

District— >

Eastern
Ann

ment,
who

retreader

a

of

as

or

recapper

midnight
type

passenger

March

22

camelback

inventory equal to less than 500
pounds for each mold or cur¬

ing

Arbor

t

^.

-

:

than

certificate

>.'•

j

593

26

the

serves

area

in

principal office is
located. Application forms will
be furnished by the board
any
time after the effective date of
the amendment.

Taking into consideration the
amount

of

ventory

as

issue

may

the

retreader's

ference

between

buy the dif¬
that

amount

and

the permitted initial allot¬
ment of 500 pounds

mold

per

or

curing table which

dle

only

tires

can

smaller

han¬

than

7.50-20.

•:'•,/9

Indiana

Vermont::....

Delaware

-r

1,204 '•■■•:

recipient of such

chase

may

of

it

use

the

for

material

supplier of camelback

a

cer¬

pur¬

from
any

a

order,
may

the

return

certificate
to

the

& Hudson

&

Detroit,

Mackinac

Toledo

Detroit &

Erie

&

&

Maine

which then may issue
certificates

permit

as

are

spreading

as

board
many

necessary

the

:

.:

255

242
:

5,988

4,728

.290

259

2,210

•

1,528

8,860
: "

2,539

7,007

„

-

York

Central

2,300
11,228

7,888

2,002
3,440
875
1,699 ; 11,811
• *7,850
4,122 : 5 3,548
•:*
354
382*

4,837

25

1,458

28

43,938

37,939

55,040

10,819

8,758

19,799

983

1,062

7,360

6,023

4,876

3,260
V: 14,826

'

555

461

392

1,202

5,654

9,495

6,171

6,452

160

760

215

389

947

392

909

487

651

4,954

5,642

3,449

331

Midland

Texas

New

&

1,091

148,125

168,381

,

3,169

136,023

155,117

224,966

650

Buffalo

Creek

Cambria

&

&

513

974

799

28,437

28,613

16,912

2,291

2,243

"2,093

3

325

•2

1,818

6

1,330

..

6,943

672

675

Cumberland

312

63

Pennsylvania

—

Pennsylvania

Reading

51

Union

-

36

22
'

48

38;

.3,285

'i

2,792

132

536

1,561

1,098

80,186 V

63,651

55,148

68,892

15,809

-

94

843

1,664

System

46

798

-—-

Co

vv,.7i

12,591

211

&

Ligonier Valley
Long Island

,

',:,

76

627

—

8

20,106

5,982

7,721

Cornwall

Central R. R. of New Jersey

15,712

12,555

28,776

>

2,156

20.484

13,850

3,178

13,437

;

1.646

40,931,

15.927,

3,496

4,901

2,240

20,466

(Pittsburgh)

1.380

70,461

57,932
<*•
',

140

"

2,361

•'-/

1,950

2,936

2,169

1,816

V

217

1.708

2,860

287

370-

167

•2,577

1,542

2,263

246

;

•861
'

875

2.455

2,462

1,764

2.031

286

-•374

-.453

452

484

224

264

173

139

C" 376

£5,428

f 340

4.147

3.489

3,950

14,538

13,192

•

V

:

v

f

*£.124

7,035

£ 2,755

Orleans....

2,699

''3,263
14,298 "r:M0,683
171 ^;/--i34,
*

■>&?&n

f7,148 ;>l'5,40$

6.293
^

912'

*•4,884 ^*2;949

2,133

'

// 9,033

7,516

/ 6,120

;;4.455

3,938

3,559

5,236

119

J31

66

3,663*-

»

'937

"11,832

-135

7,602

t

-'3,701
4,204

'
•

94

-

29

^

58,624

•Previous

:

figures.

Note—Previous

i

v

-'•->-.8:

16

50,203

-43,183

18

*

-

/ 52,447

-

8?

-35

41,630

;

-■

«*

year's figures

revised.

>Marcli Chain Store Sales $384,956,794
|According to

compilation

a

Fenner & Beane, 30 chain store

companies, reported
first

three

made

months

to

Lynch: Pierce,

increase of 27.7% in sales for the

an

1942.

*

previous months, anticipation of future goods shortages
major contribution to sales gains in March.
The earlier

a

date

this

year

also

had

a

stimulating

effect

and,

increases to be reported for the current month
less

prove

had

by- Merrill

in

Easter

parel

of

made

companies, including two mail order

increase of 24.6% in sales for March, 1942.

an

companies reported

same

reason,

'

Indiana

6,209

•

'183

1,406

•303

Gauley

629

28.061

4.497

—

o

9,502- ^

2,857
r

:256

.Totals

980

40,634

;

V

Texasiit Pacific:::^.:...:^/::;

8,699

5,061

=

Allegheny District—

Erie

.157:
1.845

"V 4,353

VaUey:./:;.:.../::':/::.:''..

As

Ohio__

66

39.4

4,006.,

>'■ -

96,266 /

3,774

1,961

Wichita Falls it Southern-::__-::._i:.
Weatherford M.;W. & N. W,"_

The

Lake

-333

>

0

..

22,891*:

103,636

4,717:;

St. Louis Southwestern:...

1,938

10,934

3,294

&

•

397"

■

-

129

Lines...

Kansas City Southern__i___
Louisiana & Arkansas._j.____.:j—.
Litchfield 'it Madisort:^.:.-^

.198

-

,

3,372

\

led

impressive.;' Companies specializing in wearing ap¬
again in March.
Six general apparel chains

shoe chains

the other extreme,

9.9% in

this

likely

the field

aggregate sales increase of 47.5% and

an

by three

for

are

with

aggregate

an

followed closely

gain

of

44.3%,

the combined sales of two drug chains

of those for the

excess

were

sales

month in

same

(At

orIj/

were

1941.

'

Western

4,533

Maryland

,

6,146'
,

143,208

180,195

Total

173,399

126,127

102,779
.1

'

';

,

!

; ;

•

—Month of March-

Sales—March—

5 Grocery

chains—

11-5-&-10C chains—.
6

Apparel

.

chains

___

$90,708,359

——3 Mos. Ended Mar. 31

1941

1942

% Inc.

^ $70,279,704

86,479,968:

29.1

Chesapeake & Ohio
Norfolk &

to Virginian

Western

:

.

.

-

13,371

22,543

23,381

7,982

17,690

7,371 i

4,647

849

3,679

2-127.:

>.7.710
1,598

47.5
9.9

132,219,297
29,507,027

25,983,915

13 6

6,770,640

44.3

21,954,239

16,916,670

29V

14,943,000

11,309.000

32.1

chains

1 Auto:

supply -J-./ 5,576,000

4,124,000

35.2

1

$253,062,315
131,894,479

$198,037,629

27.8

110,866,089

19.0

28

Chains

2 Mail

43,912

*

22.869''

—9,772,879 '

—

orders

—

32 3

.*50,550,696 .^34,282,393
9,974,413.
9,078,043

'

17,544

% Inc.

240,297,181

chains

5,085
."

1941

17.7

3 Shoe

8,713

28.946

1942

$265,923,910 $201,000,373

73,502,849

.

2 Drug

Pocahontas District—

purchase

among several suppliers.

Coast

■T .;'•' 39

36

S

;

609

5,945

&

443

1,428

'■>"123'::

x

-295..

966

1,929 '

13,160 r~. 10,748 '
8,384
o-,:. ■A' 227 "V' 'T'-\. A
' 4
1,559
-3,6ii
r- 2,039
i,60i *

;

109,985

International-Great Northern.—...
Kahsas, Oklahoma & Gulf__: J—....

5,169

5,526

Bessemer

1,095

3,436

6,607

Rutland

Baltimore

SA 'i 8

1,340

6,780

441

Akron, Canton & Youngstown

17

.

/14,479
.v

feurlington^Rock-Islandij—^L:^-—

2,082

639

mm

1,667

-3,069

Afr

31,460

.

5,473

.

..

768-

g

334-,

v

:

678

*

2,911

4,673

'

1,955
"*•

9,537

41

8,389

Wabash

TOtal

.■>.•;•
•.

'

808

10,425

>

Wheeling & Lake Erie———

1,941

;

1,663

,870 ">•-

.

71

9,022

2,880

;

1,617'"'

5*

.394

Total,/—l—l/J::

15,264

956

York, Chicago & St. Louis
N. Y., Susquehanna & Western
Pittsburgh & Lake Erie
Pere Marquette
Pittsburgh & Shawmut
Pittsburgh, Shawmut & North
Pittsburgh & West Virginia

*

2,519

'"

608
9,430

347

,

'

765

2,095

Quanah Acme & PaCiflCa—:~ L:..:.

11,917

...

;

932

;.

15,002

St. Lpuis-San Frqncisco-—'-'—1

47,102

Lines

System:...i:...—.—

7,117

v

;

9,489

",

1,964

; W22

999

Pacific:..—

102

,

2,300

2,830

■;■'•'■>

•

315

6,950

,,

47,025

3,644

688

';■* 1,733

246..

.712

..,

•

2,253

Monongahela
Montour

1,915

99

2,486-

.

27,264 A 24,967*/

Mfssourl-Karisas-Texas Llnes.i^./:./.
Missouri Pacific.:.:—

8,259

1,394

7,435

v

393

"8,897
/

-

559

10,312

s

••

161

:

895

Western

8,564

7,395

-

15,868

;

.

t.-i

1,936

Missouri fr'Arkansa

,f,

10,696

14,236

215

3.998

>

56,809'

;

1,878

1,283

:■•'■'* 7

2,199

.

629

1,267

/ ; 38

129

:•

2.511

391-,

13,804

2,383

-

-

:V; 1,424 ;s

.

12,262

835

V,

;

314

4,557

Central

;

2,504

•v.; 419

rV

River

1,949

'

1,480

379

250

;

10,012 ;

72

1.992

;

3,147

2,521

207

:

2,547

6i

23

8,482

Line.

Western

Hudson

'.1,895 "

4,659

275

i,i3o

,

'-12,493

14,990

9,057

56.974




;

14,078

Trunk

Lehigh

••v;v',;.:.240,

'1,140

,

1,383

2,151

—

Grand

;

601

1,904
6,619

80

3,063

17,679

> 14,296 /

2,431
:

Utah.

Gulf

/1942;;./' $: 1941

1,285 A..; 1,943
4,463
12,826

;*::

Ironton

Toledo Shore

Connections.

8,164

:

Delaware, Lackawanna & Western
Detroit

v

Padlflc

673

Southwestern District—*:

Received from;

v/

holder

local

Union

136

4.079

4,592 "

.^3»265

614

9,753
:

....

Southern Pacific. (Pacific) ..—...v

Western

153

696

'

.

9,208

2,178'
.

2,734

Union.—
&

5,048

.

time

before June 1, 1942. If one
sup¬
plier is unable to fill the entire

V

Pacific.—

Peoria

~

'

Missouri-Illinois;:^

Toledo,

267
562

,

/ ' 2,l35 ;

4.473;

20,744
:

1.819

& Pekin

a

365

\

81

15,229

:_i.

City.

Peoria

^

4,162

,..

1,634

-i. 308

Western

"

/

'1,675
.

153

3,456

Quincyii.....

North

494

9,286

109,456

4,073

10,029

9,420
-

7.991

!

568

/ 497

'

2.474

610

Lake

Fort Worth & Denver

10,346

' 2.969

300

6,475

,5,645

.

20,158

V

-

>

6,400

...

Penn-Reading Seashore Lines

The
tificate

Salt

*
•

3,553

-1

-,454

9,562

1)0,884

Denver & Rio Grande Western
&

78,000

»

v

:i

■

11,922

1,001

41-7-

138

,

Colorado & Southern—

in¬

of Mar. 22, the board
a
certificate which

will permit him to

.

i

1,038

Indianapolis & Louisville

_

his

V

2,044

1,404

certificate, he
must apply not later than April
30, 1942, to the local rationing
which

:/

Chicago,

N. Y., N. H. & Hartford
New York, Ontario & Western

a

'-'575

2,420

New

get such

*

,,b

II

1940

8,136

New

as

1941
-

8,269

of

board which
;>

can
get a
purchase
of

enough to bring his stock
March 23 up to that level.
To

;

7.50-20

for

1942

——

& Aroostook

Bangor

table in his establishment Lehigh & New England
capable of treading only tires Lehigh Valley:..._....«.._._.._^.^.;:
smaller

&

i!:

3,191

t

16,207

2,718/;/2,507

*

/

-V

CONNECTIONS

APRIL

Total Revenue

Boston & Maine—

Central

By the terms of the amend¬

ENDED

Freight Loaded

Central

had

CARS)—WEEK

Railroads

s&J

iYUV

Explaining the order, the OPA

>

OF

pas¬

application of
passenger type material to truck
•

International.__i.___——
.

530
'805

•

105,582

13,965

3,229

;r(i

10,609 /:;

—a

'

j

525

1

L-

i

15,562

...

^

916

:i

■

20,081

9,890

Central Western-District—*

:

Total Loads

senger cars and the

;

,.V

■ ■

% 100,329

107,636

'

-

2,966

Nevada :• NortherriA—•
Total

'■■

'1,602

602,835 Illinois Terminal

certificates

■

515

—

22,146
V, 965

135

514

Denver

•

April 4

of

3,171,439

•

399

9,052

Chicago, Rock Island & Pacific..
Chicago & Eastern Illinois-

2,465,685

21,250

.

:569
'147

2,484

3,288

Atch., Top.: & Santa Fe Systeniii—i

1940

3,215,865

2,866,565

3,122,773

1—

•

1941

3,454,409.

5.391

15,627

Chicago & Illinois Midland

3,858,273

7,267

617

Total,

>

»-

of January

weeks

Five

will

recappers

1940.

)

552

reported increases compared with the corresponding Chicago,
Burlington

and

9,411

23,772

11,229

•

1942

Authority under which retreaders

1941

in

6,018

17,982

Bingham & Garfield—

All districts

Camelback For Tires

*

1,24#

9,969

18,995

\

Spokane, Portland & Seattle

1.010

v.

t

1,232

319

20,152

Dodge, Des Moines & South

Northern Pacific—

1,490

.

;u395

2,508

2-

Northern^^————

:

480

2,596

Shore &. Atlantic.—.
Eastern

782

3.467

-

378

.

?

7,281

3,817 *

,

1,253

476

•

Spokane

13,768 cars, a decrease of 77 cars
increase of 4,353 cars above the

3,300
11.922

•

"/I 454""'403

128

'.3,537

-

Ishpeming.—__
1,839
Minneapolis &<St. L0uis__.^l/^i—2,054
Minn.^ St. Paul.& S. S. M.——
6,919

an

,

3,677

126

.

189

3,174

17,382

the

below

conform to the year for which the
tax is imposed."

595

i

14,881

Ft.

loading amounted to 51,007 cars a decrease of 4,037 cars
preceding week, but an increase of 5,056 cars above the
corresponding week in 1941.

125

2,040

-

10,189
"...
714

Green Bay & Western.
Lake Superior &

Ore

below

3,425
18,998

20,943

Great

letter

267

' 1,071

•

596

26,708

11,117 cars, a decrease of 869 cars
preceding week, but an increase of 329 cars above the
Dulutlv South
corresponding week in 1941. In the Western Districts alone, loading Elgin, Joliet &
the

of live stock for the week of April 11 totaled 8,447
carina decrease
times," of 968 cars below the preceding week, but an increase ©f—436 cars
said, "the Legislature above the corresponding week in 1941.
/
:.rV' -J
should refrain from adding addiForest products loading totaled 46,867 cars, a decrease of
1,548
tionaLburdens upon business now cars below the
preceding week, but an increase of 7,585 cars above
finding it difficult to comply with the corresponding week in 1941.

"In

the

,

27,301; ' ' 22,306

Chicago Great Western.
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha
Duluth, Missabe & Iron Range.......

.

Live stock loading amounted to

below

1,082
404

/

—

-

345

555

1,339

Illinois Central
System.:

Piedmont

1941.

1,374

'* 1,789

,257

1,092

_

Loading of merchandise less than carload lot freight totaled
Mississippi Central
132,367 cars, a decrease of 7,431 cars below the preceding week, and Nashville,
Chattanooga
a
decrease of 29,300 cars below the corresponding week in 1941.
Norfolk Southern—

in

1,906

2,934

344

2,694

...

tax

399

1,239

333

-

Southern——163

.

3.835

f

1,521

1,694
w

Louisville & Nashville..—
Macon, Dublin & Savannah.

Coal

1,707

1,144

-

Georgia
Georgia St Florida.—-w—
Gulf, Mobile & Ohio.__.__.

■'

The

'

•'/

9,528

,

31.

■■••:. 1941

2,519

,

598

,

Dec.

-:

10,069

•

.

_

pro¬

1942

"R' r440::i C''rl54

250

'.,',,'761

731

loading amounted to 160,646 cars, an increase of 12,830 Richmond,- Fred. &
Potomac...—553
cars
above the preceding week, and an increase of 129,054 cars Seaboard Air Line
posal "burdensome and unreason¬
11,591
above the corresponding week in 1941 which was affected by strike. Southern System
25,444
able," and stated that it will im¬
Tennessee
Central
736
Grain and grain products loading totaled 33,861 cars a decrease Winston-Salem
pose hardships upon corporate fi¬
Southbound
122
nancing, making the payment of of 1,469 cars below the preceding week, but an increase of 165 cars rt'. ' ' kkj 'f ;"')■:' *4" ]'pj' 7"-v-i \ * '*• •• " " *-**
Total
;
129,390
Federal taxes on March 15 more above the corresponding week in 1941.
In the Western Districts
difficult.
The Association points alone, grain and grain products loading for the week of April 11
out that the business franchise tax totaled 20,976
cars, a decrease of 973 cars below the
preceding '/■Northwestern District—. ■
was formerly payable on or about
week, but an increase of 1,040 cars above the corresponding week Chicago & North Western
20,176
the

-.1

955

& 13,292

i;

_

,

Gainesville Midland
^

X Connections

696

Florida East Coast—

Miscellaneous

vi

909

Charleston & Western Carolina-.—-

&

'%Received-from-'

13,835

Columbus & Greenville
Durham

below the preceding week.

Total Loads

>"-j-

v-

" '•; 1940

Ndrtherri&iii36lM-v*$325

R.

Cltachfleld.

and

seven

W.

Birmingham & Coast
Atlantic Coast Line——
Central of Georgia..

195,128

was

&

Atlanta,

\

,

1'w

Freight Loaded

Alabama, Tennessee &

freight for the week of April 11 decreased

revenue

1.8%

cars or

•

,

IvV

>

yvTbta^*Revenue
Southern District—

freight loading totaled 364,600 cars, a decrease
of 12,056 cars below the preceding week, but an increase of 17,183
the first half of
cars above the corresponding week in
1941.

one-half months prior to the com¬
mencement of the tax year.
In

31.5%.

Loading of

York, Inc.
Under the proposed
legislation, corporations would be

;

19.8%, and above the same week in 1940

cars or

or

."v.;v-H:'

*

V

Loading of revenue freight for the week ended April 11, totaled
814,233 cars, the Association of American Railroads announced on
April 16. The increase above the corresponding week in 1941 was
cars

the tax

*/•!•.

Freight Car Loadings During Week #
Ended April 11, 1942 Totaled 814,233 Gars

porations,

required

Thursday, April 23, 1942

Revenue

9a of the Tax

taxable under Article
Law, was expressed
on April 7 by the Commerce and
Industry
Association
of
New

FINANCIAL CHRONICLE

,

197.944.767
'

88,981,640

$704,844,654 $542,136,365
343,015,672
278,164.392

2L4
.-

48.6

30 0

23^3

14.393
30 Companies

fZ

$384,956,794 $308,903,718

>

24.6 $1,047,860,326 $820,300,757

:2L7

<

Volume

Number 4066

155

:

''

THE COMMERCIAL & FINANCIAL CHRONICLE

/;vV:

1639

Subscription and Allotment Figures
Orders Srcwif Mills—Scrap
When the flow of

war

goods from U. S. plants reaches the level
pressed to finding storing and ship-

where the Government is hard

•

The
League Loans
(London) comprised

IJISllIGn Treasury Oertificate Offering

Relief

of

indebtedness,

of Series A-1942,

revealed

were

the Treasury

by

for it is on the way Department on April 16, indicating that total subscriptions received
were $3,062,250,000, of which $1,507,000,000 were allotted. Preliminary
to being done, states "The Iron Age" in its issue of today (April 23):
results of the offering, made on April -3, were given in these columns
This week brought fnew evidenced that the flood is not far off and
of April 16, page 1540.
]: that within a reasonably short time the emphasis may shift from
Final subscription and allotment figures withV;respect to the
intensifying manufacture of war implements to speeding their transcurrent offering of l/z%
Treasury certificates of indebtedness of
port to battle areas, continues the "Age", which further says in part:
Series A-1942.
"War goods are* piling up at the docks. on both Coasts and "are
Subscriptions and allotments were divided among the several
[ backing up at some inland war plants. For example, 40,000 military Federal Reserve
Districts and [the Treasury as follows:
trucks are standing at a single East Coast jport waiting for ships.
Federal Reserve
Total SubscripTotal Subscrip; At one inland plant there are 30,000 combat vehicles ready to be
District—
tions Received
tions Allotted
1
$212,414,000
$104,289,000
shipped, Thousands of trucks, many of them- intended for use in Boston
New .York
1,724,584,000
> ' 832,804,000
| Russia, have been stocked.
.
. ;
Philadelphia,
111,799,000
55,613,000
"Soon the surplus of war; goods,., which involves other factors Cleveland
—■
150,548,000
75.334.00C
L
" 77,737,000
■
39,828,00C
than ship sinkings, will' spread from combat- vehicles, in, which a. Richmond
Atlanta
73,532,000
37,200,000
tremendous flow might be expected,i to other war materials and
Chicago
1^,,
368,055,000
185,568,000
•
71,103,000
V
implements. Already a few plants are said to fear that they soon St, Louis
37,386,000
Minneapolis J
50,052,000
27,087,000
will receive 'stop production' orders or'slowrdown'; orders.,,
ping space, industry will know that the job set-up

•

'

,

_

_

,

.

'

,

;

—

L

according to 'Iron
LI
Age' estimates, rebounded a point tdf99%; of-capacity,? equallingvin San- Franciscoactual tonnage; the all-time high of two weeks ago.For the most Treasury
part, the recovery was the result of returns to operation of furnaces •'
Total1__
that have been off for repairs. Scrap is moving more freely than
in many months, although constant pressure is required to keep
; sufficient quantities going, into the plants.. Allocations and spring
From
I weather are factors in this improvement. ' Producers, in one; area
; have been getting a little more scrap than they, are using, .permitting,
(Continued from First Page)
; in this one case; the accumulation of a small stock.
After the last war, our great
"Latest development in the scrap marketlis eourt action against enterprising American press es¬
; two steel companies, a broker and 24 dealers in an effort by- OPA tablished correspondents all over
\ to insure an 'orderly' market.
Bright spots ^ in: the scrap supply Europe, relatively few of whom
picture are the planned addition of two openhearths to the active made any pretense of being able
list at an Ohio steel plant, an increase in slag dump 'mining' opera¬ to speak the language of the
tions and invaluable contributions from public, scrap? drives such as country which they sn
graphically
steel production hi the U.S.;

"This' week

44,835,000

.

Loans issued by

Austria, Bulgaria,
Danzig, Estonia, Greece and Hun¬
(total

gary

in

state

ering

47,634,000

,

•

'

.

63,774,000

185,00(1

...

$3,062,250,000

—-

-

98,000

the

Washington

.

.

rope

.

.

•

•

;

•

-

•

each

of

service

the

default.
mittee

full

gic materials
from

v

this

in

Com¬

maintained

of

her

League

month the Loan fell into
complete default after the in¬

up strate¬
recently taken

and

given

of

Estonia

ably

in

window

a

display,

Greece made

I

first look

it

sible for the large proportion of

the ground

In

terest

in

the

^.Wlth'ithe':-.

of

January^ V1940
1941, and tjie in¬

to April,

up

provision
of the in¬

accordance

arrangement
•

terest service

broke

down

only

after the invasion of Grdebe by

Germany.

some

imagine that all these

regular

for payments of 43%

to

Henry; The necessity for doing
this, it was explained, was speed.
For example, a U. S. agent mighl
be walking down the streets of
Turkey and he would see, prob¬

country; whenever they saw a
building being. erected they mar¬

In

February/ 1942,

-*

the Greek Government in Lon¬

don

informed;

that it

thei Committee

compelled to prolong
suspension
of
payments

the

was

forced
but

it

upon

assured

April, *'1941,

in

them

that

as- soon

possible after the liberation

as

of Greece and the establishment

of

a

of

measure

covery,

situation

the

economic

and

collaborate

bondholders

reach

re¬

it would re-examine the
in

with

order

to

equitable settlement.

an

Hungary

defaulted
on
the
Settlement of her League

1937

Loan in

October, 1940, but sub¬

sequently

concluded
for

arrangements
with

some

tries

separate

the

service

of the creditor

coun¬

tha^ the default

so

limited

to

branches

was
the

only.

years

certain

'

Burgaria

and

of

Danzig,.

re¬

mained in complete default.

before

around.

orders ^bearing high rating.

Prac-

fically no requests now are received by .mills for *■ material on low
priority^ cessation of manufacture of a'large number of durable consumer goods cutting them to a minimum.

over

The report was

began

released.on be¬

''plan"—planning by the Govern¬

throwing' its
money
half of Elio.t.. Wadsworth, .Ameri¬
We can't be wasting time
can Member League,
like that in an official occupying
Losing, Conw
mittee.
7y
►
of our rightful place in world

ment.

affairs.

country

a

We

'

factories

the

f* that

buying

was

Jones

Jesse

velled rat; what could be done in

"Concentration of steel consumption in war work, reflecting con^
>

.

have

always

service

corporation

versibri of civilianfacilities to essentiaLproduetiOn, is;te

,

-

didn't

we

...

„

of

directed towards

| Loan up to July, 1940, but in

the Rockefeller Foundation would

,

.

work

Soviet Union.
when the job of

fication.

.

League Loans; is in

The

has been

Estonia
the

$1,507,000,000

April 20 stated in part: "Delivery -promise on steel below "socially conscious" the European
priority is virtually impossible to obtain under present circum¬ countries were. They saw factor¬
stances ^nd early; deUvery requires priority well up in this classir ies MiRussia and wondered why
on

A-l

in Eu¬

war

the

position. The announcement adds:

voked, or at least, how their Gov¬
ernment can swing into it.

kets

;

of

mitigating the effects of these de¬
faults, making interim arrange¬
ments where possible, and safe¬
guarding the bondholders' formal

•

-

cov¬

greater
part or the whole of the bonds of

,

•

report,

July, 1940, to
that as a result

1942,

[the

strategic materials. Well# the idea
in a case of this kind is to buy
that at ■ Buffalo where 65,000 tons is reported uncovered. ■
wrote about. When you consider
those materials before the Axis
"The scrap shortage should be relieved by next December with the difficulty you have in making
can
buy them.
This is what is
the aid of increased blast furnace output, C. M. White, Republic a. man
fully
understand
you
it
was
explained
pa¬
Steel Corp. Vice President, said this week at Cleveland. He estimated across the table, you can imagine known,
tiently, as "preclusive" buying
that the steel industry is now 3,100,000 net. tons short of having how. informative must have been
one of the cutest little words ths
the work of the correspondents
enough scrap."
New Deal has ever dug up. Under
We became
quite Europe con¬
The American Iron and Steel Institute on April 20 announced
the old order, before this ageni
that telegraphic reports which it had received indicated that the scious. American widows having
could do anything he would have
been left competences and men
operating rate of steel companies haying 91%, of the steel capacity
to take it up with Washirtgtor
who had acquired them retired
of the industry will be 97.6% of capacity for the week beginning
and then
as
apt as not, Jesse
in droves to France where the
April 20, compared with 97.2% one week ago, 99.0% one month, ago
would
inquire about the price.
rate
of
exchange stretched out
and 96.0% one year ago.
This represents an increase, of 0.4 point
But now, all the agent has to dc
their
competences
appreciably
or
0.4% from the preceding week.
The operating rate;- for the
is to take out a Government check
Tourists, went over to Europe by
week beginning April 20 js equivalent to 1,657,900 tons of steel
book
and
buy the stuff on the
thousands and saw post cards of
ingots and castings, compared to 1,651,100 tons one week ago, 1,spot. It is truly amazing how our
a "Workers' housing project" here
681,600 tons one month ago, and; 1,549,300 tons one year ago.
and'there and marvelled about people can swing into action when
"Sf£elr" of Cleveland., in its summary of the iron.,and steel mar- how S "socially - advanced"
and they have been sufficiently pro¬

.

£81,000,000),

ninth

period

of the extension of the

.

.

issued

their

February,

23,493,000
24,526,000

.

129,772,000

—

British,—

bers and representatives of hold¬
ers
of
the
League of Nations

k

Kansas City
Dallas L

Committee
of

American, Dutch and Swiss mem-",

Final figures on the recent offering of Va% Treasury certificates

-

:

,

League Loans In Default

[

;

where

there

noticed the

never

was

new

a

,

house

"Scrap supply is keeping up the improvement of the past few
but increased consumption is preventing accumulation; in going up next door over here, a
new plant made no impression on
reserves.
Not all areas are receiving sufficient material and some

weeks

In

I

respect

one

occupying

suppose

our

President Signs

,

,

,

Bill On

place
Marine War Risk Ins.
henceforth and our occupying i
President Roosevelt sighed on
us.
The fellow next door could
in the past will be the same. For
open hearths continue idle.
April 11 the bill amending the
die
and
leave
his
family in 25
years
our
"Liberals"
have
"Pig iron producers have been given relief by OPA from the
straightened circumstances^ We hounded the life out of American war risk insurance provisions of
necessity of absorbing increased transportation■■['costs involved in would know
the Merchant Marine Act, 1936,
nothing about it but investors who built
up plants in
shipments under" allocation to points outside their .usuaL market we
so as to permit the Maritime Combecame terribly excited about
foreign countries, help develop mission to insure
areas, A new ruling permits producers in case of such shipments, due
a street brawl
vessels, cargo,
in Bratislavia.
the resources of those countries
to emergency conditions, to charge the basing point price, plus dif¬
and personnel of both American
When you stop and think,
ferentials established in the schedules and freight charge from basjn Very likely we shall pursue this and
foreign-flag ships.
fact, just how far we have ad¬ policy.
V ing to delivery point, With deduction of ; $1per gross torn
Congressional action was com¬
vanced in our first spree of occu¬
pleted on April 6. The measure
"Requests for pig iron allocations -under priorities below the pying our rightful place in world
A* classifications have practically disappeared, consumers being inFin. Advertisers Clinic
passed the House on March 19
affairs, etc.; etc., it almost takes

rightful

our

.

.

>

.

•

creasingly engaged in production; of war work.

breath to contemplate what
Victor Cullin, President of the
happen now that we are of¬ Financial Advertisers Association,
Administration has opened the door for applica¬
tions for relief from the $6 ceiling pn beehive fuel.
The producer ficially to do it, that we are to has announced that its members
do it at least with the blessing of will
must show that net realization is insufficient to support continued
get together for a Clinic for
the New Deal and the Republican fhe 27th year in
Chicago at the
operation at the maximum price.;
National
Committee
meeting in Edgewater Beach Hotel on Oct
•"Composite prices continue unchanged under ceiling regulations,
Chicago. Frankly, it is a rather 26, 27, and 28. L. E. Townsend
finished steel at;$56.73, semi-finished steel at $36, steelmaking} pig
awesome spectacle.
Vice-President of the Association
iron $23.05 &hd steel making scrap $19.17."
.
•
your

will

"Office of Price

It is

J

.,

v

k

Commercial Paper

t*

*

•

—

'

j

<

j

i

n. v

„

Outstanding

The Federal Reserve Bank af New York announced on April 14
that

reports received by the bank from commercial paper

show

total of $384,300,000.of open

a

March
paper

31.

the

paper

outstanding

on

table we

give

compilation

a

Marr„

present

Feb.

28———————

388,400,000

Feb.

31—

380,600,000

Jan.

31

———

31

Nov.

Oct.,

374.500.000

—

"31

-387.100.000
—J— 377.700.000

29

Bept.

30

Aucf.

30

July

1

—

31

June

31—

Apr.

-

Dec.

31__———

Nov.

3CL

30-——.

—

———_———

Oct.

3,1———

-

30—

Aug.

31——

244,700,000

3t

232,400,000

:

June

295,000,000 May
274,600,000 Apr.

the

be
our

„250,700,000
.

.

Some

.

the difference between

an

feverish

V

i'0

i;

i! £

f.




r ?

■f-.

heat

ier of the

First National Bank of

Chicago, is General Chairman of
official the Chicago group to make all the
,

on

224,100.000

arrangements
238,600,000 ing by studying a statement issued vention. I

30—1

%

i

■

v. o-"--

vvJ

v

v.:' h

re¬

Guy W. Cooke, Assistant Cash¬

•

29

occupying and unofficial

produce

local

occupy¬

-V.;,.:

for
•

the

con¬
v

,

approved by the Senate
on

April 3; the

House

agreeing to the
Senate
changes on April 6.
The Mari¬
time
Commission's authority to

write
and

marine

war

reinsurance

insurance

risk

broadened

is

by

the legislation to include any ves¬

foreign
they are

sel,
as

war

the

domestic, insofar
with the
Under existing law

or

concerned

program.

Commission

is

limited

to

in¬

only [ vessels of; United
States
registry,
and
thens; only
when
it found
adequate .insur¬
suring

at reasonable rates

ance

not

was

available

through regularncommercial companies.
•'
■
,

yV

m.

^

,.

1

.

«•/

Mother's Day May 10
President

Roosevelt, in qp proc¬
April 8, desig¬
Sunday, May 10, as Mother's
and called upon the people

lamation

issued

nated

Day
"to

express

ence

31—i———-

234.200.000

work with

men

and

was

in amended form

limited amount of

sults.

■

;•••: '•

a

conferences where

many

light might be thrown

enter¬

entertainment, this year the en¬
tire three-day program will get
right down to real clinics and

but its work could hardly
called an official occupying of

rightful place, etc.

time for

tournaments

study and work inter¬

spersed with

American

these

no

Conventions in the past have been

Occupy Our
in World Affairs,

world

be

golf

sessions of

Board to

years

252,400.000

1

Sept,

299,000.000

agency

agency,

over

will

or
other usual convention diversions.

is
It should be

Another

all

217,900,000
231,800,000

329,900,000 July

———

30—

May

misnomer.

Rightful Place

232,400,000

370,500,000

—
-

The

the

philanthropic

353,900,000

»

a

called

1940—

1941—
Dec.

?

of

While the Advertisers Association

the Rocke¬
feller Foundation, of course, has
263,300,000
240,700.000 been doing wonders for mankind

28

Jan.

-

of

name

really

s

3

31—384.300.000

there

tainment,

linguist and philan¬
Henry
Wallace.
The

BOORPWA.

Mar.

Vice-President

Assistant

states, that since this is war time

great

thropist,

on

of the monthly

Tort-

$ >:>•

4942—

and

when

the world with,; the
Warfare Board under

Economic
that

figures for two years:
V

awesome

the

ful place in

Feb. 28 and with $263,300,006 on March 31# 1941.

following

more

particular the Bank of America, San Fran¬
agency ; which the New Deal has cisco, who is General Chairman
the
Convention [this
year,
set up for us to occupy our right¬ of

This amount compares with $388,400,000 of commercial

outstanding

In

market

dealers

even

consider

you

and

-which

mothers

of

the

love

and

feel

we

rever¬

for

the

by the
customary display of the flag at
our

homes

places
sages

country

our

and

and by

other

tokens

suitable

and

mes¬

of affection."

t'vf4..V&'. T
•

tc.cik

•

h

"

i ."

-

1640

THE COMMERCIAL & FINANCIAL CHRONICLE

more

than

when

it

600,000

folded

depositors

its

doors.

the

De¬

holding claims under
$300 got 100% on their money
in
1935 by the
sale of their

claims

-

The' Directors

p

of

J.

convertible

Henry

Schroder Banking Corporation of
New York on April 14 elected the

par

following officers: B. Alden Cushman, Assistant Secretary; John E.

par

McNamara

and

Peter

C.

A.

shares

Car¬

penter, Assistant Treasurers.

preferred stock of the
value of $50 each and 58,000
of

of

stock

common

bered

bank

.

Canon

J.

Marc

Clements

■sistant Treasurer*

\

The

William G. Green, President of
i

since

shows

eight months of delay, while al¬
lowing war-related orders to take
precedence, the bank has com¬
pleted its greatly enlarged quar¬
ters at Eighth Ave. and 14th St.,
New York City. The celebration,
which
was ; held
April 17 and
April : 18,commemorated
the

since

assets of $264,998,986
deposits of $254,716,684,
which compares with $211,701,234
and
$201,573,718, respectively, on
Dec. 31, 1941. Cash, balances with
other
banks, including reserve
balance, and cash items in process

bank's 88th anniversary as well as
the official opening of the en¬

latest

larged quarters.
that

the

statement

bond

at

in

and

pur¬

bank's

tota 1

stands

Roger Topp, Vice-President of

at

At

the

close

Hospital. Born in Columbus,
Miss., in 1885, Mr. Topp after at¬ capital account
tending

public

and

1941

the

at

Trust Officer and has been

sistant

Cashier

elected

was

and

bank in September,
same

meeting,

buttel

was

and

Cashier.

Director

a

zie

1941.

immediate

-

appointed Trust Officer and

Assistant Cashier, and William G.
Kaufmann Assistant Cashier and

Seaboard

not

appointed

George
the

P.

The

Kennedy, President

the

plan
in

Comptroller of the Cur¬

of

Metal

Manufacturing Co.

Brooklyn, has been

Director of the bank.
is

Director

a

Chamber

of

elected

ted

the

Commerce and was
formerly President of the Brook¬

urer

of

the

Fred

;

final

A

;

types,
it
cluding 2,000
8,000

Manu¬

sale

facturing

real

real
and

of

im¬

more

estate;

than

estate

contracts

many

hundreds ; of

the tentative agreement reached
between the Comptroller of the

The

of the bank's President.

Rochester

Trust

&

Safe

:

Currency
would

Deposit Co., Rochester, N. Y., has
received

statement

and

permit

and

,

,

declared

v

the

receiver

since the bank suspended busi¬
ness on Feb.
11, 1933.

of

The First National

par




of all

u

.

America,

IxXji

,.C

M

any

of

of

and

Mexico

all

instruments

docu¬
of

..

3.

for

the

conference

de¬

Nations.

this

would

the

Norway,

In

title

which

Minister
on

King
April 19.

House

Naval

formally

.

ants

'

shall

.

claims

ing

that

©gainst

may

one'

*

Single copies, in all cases, will
be raised from 3 to 4 cents, and
the

former weekly rate which,
one

will

variously increase from 2

supervision."

tunities for sabotage, or

activity,

The

ever,
abundant."
the report to the

new

Elmira

each

other

Naval auxiliary vessel

'

weekly rates

are:

Rochester

Times-Union, 20 cents; Roches¬
ter Democrat &
Chronicle, 20
cents; Elmira Star-Gazette, 20

cents;

Utica

Press,

22

cents;

Observer-Dispatch,
22
Hartford, Conn., Times,

20 cents;

-

Saratoga Springs Saratogian, 24 cents, and the Ithaca
Journal, 24 cents.
The last reference to the recent

increase in

prices of daily papers
magazines, appeared in our
issue of April 9, page 1444. - ^

and

New

Envoy To Russia

Admiral

A

In submitting
full Naval Com¬

the

is

Other papers affected and the

on

almost any
how¬

exception

whose former 15price becomes 20 cents. •

cent

sub¬

were,

18 cents,

was

Advertiser,

cents;

v.

exception

to 6 cents

al¬

reported

reporting this
vA V. •% v v 'A

United

William

States

H.

Standley,

Ambassador

to

Russia, presented his credentials
to

President. Mikhail

Moscow

Kalinin

in

April 14.
Admiral
Standley, who is a former Chief
on

of Naval
in

Operations, had arrived
Russia by United States
Army

plane..Before-

;

.A

•

...

leaving ; the-

United
States, the Admiral received the
Navy Distinguished Service Medal

which was
being converted for war use and from President Roosevelt, as was
disclosed that the ship was sched¬ noted in our issue of March 26,
(I *> * «.*l • * *| <u »'
J.
another;* with uled* to sail on Feb. 44.^ - •* * * - *A page-1242;

release

of

'

with

returned

Affairs

Government of Mex-

respectively

.

v

and

are

Due To Carelessness

subversive

daily

/

Rochester, N. Y.,
said:. ••A•. A:

China.

include

Netherlands

others'*

proper

Inc.,

rates, ef¬

fective April 20.

Fire On S.S. Normandie %

of

Up Prices

Company,

newspapers would increase
and weekly circulation

addi¬

mittee, the House group criticized
ico and each of the said claim¬ Governmental
handling
of
the

i"

v

The

Gannett

*

\

' -:

Rochester, N. Y., announced on
April 17 that nine of 19 associate

on
Feb.
'
9,
was
"directly
at¬
is tributable to carelessness and lack

these

-

The

ready at war with the Axis.

A

a

Associated Press accounts from

United

committee

\

Gannett Papers

the United States and others of

on

,

payment

account

on

riages.

Utica

above-mentioned

Export Lines is

fans, aircraft
wheels, brakes and under-car-

training program undertaken by

Prime

of

American

New Zealand) air training plan
with the greatly extended air

several

and

and commercial air¬
line company, and
Hayps Indus¬
tries manufactures

the
desirability ' of
more
closely coordinating the British Commonwealth
(including
Britain, Canada, Australia and

tion

Vice-President,

Hugh M. Gillespie, Vice-President, Secretary and Treasurer.

and Treasurer; Leland S.
Bisbee, Director, and Pon T.
McKone, also a Director.

of

1941,

pertaining to the expropriated
properties.
: >
'•
; •

}•' •[

troit, had deposits of more than
:$400,000,000?.; ^divided- ,a m o n g

;

ments

in¬

Bank, De¬

'i;

ernment

>

deposit claims

.

the

value of $20 each, to $1,660,000,, coins is ting; £f« 10,000 .Shares ofe

in

awards, the corporations affect¬
While
sabotage was not held
ed shall deposit in escrow and.,
responsible for the disaster which
when final payment has been
later resulted in the ship capsizing,
made, shall deliver to the Gov- the subcommittee said that "oppor¬

.

to

crease its capital stock and
to re¬
classify its shares, from $1,000,000*

on

the

Before

made

the. Committee

pay about two-thirds

terest accrued

2..

that

permission
from
the
State Banking Department to in¬

consisting of 50,000 shares

re¬

veloped out of the recognition

the

Export Lines was
by John E.! Slater,

tary

Nations.*

voiced

"

other
;

States
of

ments.

for

is

The

all

of

has already
pooling the air¬
plane production of the United

time

the
United Mexican States shall
pay
to
the
Government
of
the
behalf

said, : in¬

was

parcel

notes,
judgments,
types of assets.

son

•

made

progress

made

Plans

States and Mexico provides:
1.
The Government of

ap-

Co., has been elected
Trustee of the Lincoln
Savings
Bank of Brooklyn.
Mr. Gretsch
a

a

Great

been

were

27,

be

of personnel.

the five-point
between the United to Ottawa

agreement

A,f:;

will

use

claimants, the amount of $23,- April 15, after a two-month in¬
995,991,; in
accordance
with
vestigation, that the cause of the
schedule
of payments
finally fire on the former French liner
approved by the two govern¬
Normandie, in New York harbor

Treas¬

Gretsch

be

Schram,

shipping

United

proved

Jr.,

for

courts

'

ous

lyn Club.

Gretsch,

Nov.

con¬

completed,
there
remains
a
large volume of assets of vari¬

Brooklyn

of

Frederick

columns

a

the end that the most effective

objection to the proposed
for settlement; referred to

these

that

While the asset liquidation of
the bank has been substantially

a

Mr. Atwood

the

to

grproval.

be¬

govern¬

groups

made

the President

Minister

the

were

officers of Hayes Indus¬
tries, who came on from Jack¬
son, Mich., for the occasion, in¬
cluded C. B. Hayes,
President;
Charles
Hollerith, Vice-Presi¬
dent; E. C. Hetherwick, Secre¬

the United Nations air

on

specialists

watched

The

purpose of the meeting
along the lines of further
military
efforts.
The
meeting in Ottawa would ex¬
tend the air programs to take in
the
training of personnel to
operate the military aircraft to

Jersey

that

*

lies

"Herald-Tribune,"

mittee, which must be submit¬

orated

At

Executive

united

According to Washington ad¬
vices of April 18 to the New York

nounced

Brooklyn, in New York, an¬
on April 14 that
George
D. Atwood, President of the Dec¬

oil

ses¬

The

page 1248.

rency,

Bank

dispute.

American

statement said:

$487,370.

two

Prime

the

guests of Emil

represented

Parliament.

was

with

securities,

ment states:

training programs will be held
early in May in Ottawa. The joint

a

principal

their

the statement said, has
accepted the offer of the Com¬

National

and

ference

.

the

joint

a

announcement

sources

The experts

by

under

standing

the bank's

of

Lafayette

in

which had
for three days.

at the same time by

plan worked out
last November to settle the long¬

de¬

stockholders.

of

Joint

Export
Industries, the

of the Exchange, and
Robert L. Stott, Chairman of the
Board.
The Exchange announce¬

the joint war effort

on

American

President

President,

been in progress

companies, it is stated, are
obliged to accept the commis¬

ments

remaining assets.
Any
values
remaining ' after
the
claims of depositors have been
will inure to

of New

the

of

Hayes

talked

their

luncheon

Macken¬

revealed

the Canadian

discussions
with

;

*

group,

sion's findings.

bank's

settled

Assistant Trust Officer.

Canada

of

The

the

on

of

and

opening of the market, and

Prime Minister King made this
disclosure at the conclusion of his

Consolidated Oil Co., $630,151.
Sabalo group, $897,671. >

sub¬

a

Oil

on

money

follows:

as

Standard

to
participate in the further liqui¬
dation by the Committee of the

Olden-

elected Vice-President

Cashier, William H. Schmidt

was

of

principal amount of their
posits, or the opportunity

At the

Charles

payment

stantial interest dividend

the

Lines

Training

Minister W. L.

King

stocks

mon

New York" Stock
Exchange was
host to officers of those
companies

perhaps address

group, $18,391,641; Standard Oil
of California group, $3,589,158.

will be offered the
option of an

He

of

Co.JJ

closing,

ciated with the bank for 33 years.

He has also held the office of As¬

rate

from

18, 1938.

Prime

The agree¬

provides that the

allocated

have already had returned to
them 100% of their funds in the
bank
at
the time
of

asso¬

the

at

dating

year,

sion

ment

banks.

Coincident with the admission
to trading on April 20 of the com¬

Ottawa within the next few weeks

Under the plah contemplated,
the
depositors, all of whom

George W. Spence. Mr. Spolander
was formerly Vice-President and

interest

a

States

half of the claimants.

by

Companies Visited NYSE

on

prescribed

an

United States Government

that

Officials of New Listed

to

associate of the Washington on April 17 that Pres¬
Roosevelt
National Bank of ident
hopes to
visit

;
The
Treasury's announcement
in the matter further said:

Arthur W. Spolander was elected
President ; to
succeed
the
late

bear

3%

dates

To Talk Air

U. $., Mexico Agree
On Oil Settlement

appointed
Vice-President of that Institution. representative of Detroit's leading
industries. This group is headed
by Joseph B. Schlotman, Chair¬
At a meeting of the Board of
man of the E. L.

A the

}

in

all-

Negotiations
leading
to
the
The State Department at Wash¬
closing of the largest bank re¬
ington announced on April 18
he was a member of the D. K. E. ceivership in the history of the
United States, the First National that the joint Mexican-American
Fraternity, graduating in 1908.
Bank of Detroit, Detroit, Mich., commission on oil expropriations
After
various
activities
which
has fixed a value of $23,995,991
were announced on
April 10 in a
took
him
abroad
for extensive
as
full
and final
settlement of
periods, he joined the official staff joint statement issued by the claims of American oil
properties
of A the
of the National Bank of Com¬ Comptroller
Currency,
expropriated by Mexico in 1938.
Preston
Delano,
and
Senator
merce in New York, New
York,
The two experts who comprised
Prentiss M. Brown of Michigan.
where he
remained
from
Feb¬
joint
commission — M.
L.
The remaining assets of this re¬ the
ruary, 1923, until: April, 1929. Fol¬
Cooke, representing the United
lowing this, he became Assistant ceivership, it is announced, which
had an original book value of States, and Manuel J. Zebada for
Vice-President of The Public Na¬
Mexico—agreed that this money
tional Bank and Trust Co. of New over $500,000,000, will be disposed
shall be paid by Mexico to the
of through a bulk sale to a
group
York, and in 1931 was

over

of this

being

made

July I

shown

as

and

the

16

The New

explained

members

purpose

who

recent
an

by

April

survey is to
provide information, now unavail¬
able,
concerning ' the
kinds
of
loans that are currently

commer¬

of

between

week-end.... It, is

substantial

time

and

made

;

several

March

University, California, where

Directors of the Peoples National
Bank of Brooklyn, on April 16,

balances

on

year.

due these said claimants

of

an¬

says:

a

be

May 15, inclusive.

respective

deter¬

Portland, Ore.

high

Ford

amount

subsequent

All

shall

capital

April 4 had reached

United

schools
in New York City, entered Stan¬

ford

5.

the

time high of $4,488,568.48.

$9,609,579.

was

each

be

$41,-

The

industrial,

The bank is

accounts

of

total

a

enjoyed

National

$3,000,000 of common stock, $4,York, died suddenly on April 20, 500,000 surplus, $1,661,088 undi¬
vided profits and $522,703 in re¬
after a brief illness at the Memo¬
serves.

of

the

to

Federal Reserve Bank and
the other Reserve Banks sent out
the! loan
questionnaire to their

Recommendation is hereby
that

commercial

loans

banks

have

nation¬

a

York

the

installments, payable
of
-

cial, and agricultural activities.
Deposits of the Clark County

$9,683,791, consisting of

member
and

System

make

of

survey

industrial

Vancouver, Washington,

has

increase in

the Public National Bank of New

rial

profits

of $316,891.38.

The

call

wide

to

balance in five (5) equal annual

These amounts, together

provide

area

are

capital

.

nouncement also

given
$103,974,298, against $68,796,901, and loans and discounts (in¬
cluding $18,683 overdrafts) total
$37,718,601, compared with $36,724,738 on the earlier date. The

chases.

4.

Reserve

undertaken

v.- ./•>:

,t -:-

courts.

County
National
Vancouver, Washington,

undivided

891.38

The Board of Governors of the
Federal

com¬

Clark

structure

the

said

made

of

with

the

mined be paid as follows: onethird on July 1, 1942, and the

$125,000.

$102,682,947,

guaranteed,

4

capital from $100,000 to $150,000
and its surplus from $100,000 to

as

April 1 showed that over 40% of
total
deposits of the bank
have already been loaned to the

through

statement

direct

for

the

Government

listed

are

deposits
suspension

"'v

has announced the increase of its

compared with $95,291,971; United
States
Government
obligations,

It is announced

bank's

total

collection,

of

on

of

of

1933.

The
Bank

and total

of

date

account

23, 1942

pftrlJelails|oii toens

those'

as

liability for all private
claims which may be instituted
after this date by private indi¬
viduals against these companies
as a result of
expropriation, but
not
for
the
private
claims
against these companies now
pending before the
Mexican,

receivership has been ad¬
ministered by
B. C* Schram

National

Manufacturers

the

as : well

Thursday,-April

Reserve Banks Ask

assume

the medium of

accrued

the

The'Mexican Government will

all

The

Bank of Detroit, in its report of
condition as of April 4,
1942,

the New York Savings Bank, has
announced that after more than

the

100%

of

against

on

panies!

received

nine years ago.

Director of the bank.'

a

,

the

num¬

years

those

payments legally made
by the Mexican Government for

large

receivership

through

interest

and

Vice-President

First

in

duties,

based

claims.

is

sets

Gardner,

elected

and

Presently their
only interest in the bank's as¬

the Providence National Bank of

elected-As-

was

450,000.
the nine

was

their

Providence, R. I., has announced
that at a regular meeting of the
formerly Assistant Treasurer, to Board of Directors on April 6,
be Assistant
Vice-President.
R. Rupert
C. Thompson, Jr„ was
elected

These claims

depositors

of

of

of

Goyernihent

V

;

the companies for unpaid taxes

about

During

value of $20 each.

Directors of Schroder Trust Com¬
pany

syndicate

a

depositors.

the

Thomas L. Pierce, President

The

to

exception

Mexican

positors

/

all

reciprocal
still be pend-

.