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APR 8
Final Edition
W46
•
In 2 Sections-Section
ESTABLISHED OVER 100 YEARS
1
Financial
Reg. TJ. S. Pat. Office
Volume 163
Number 4478
New York, N. Y.,
Thursday, April 4, 1946
Price 60 Cents
a
Copy
Economic Policies for
By A* WILFRED MAY
;
Soviet and Iranian
Replies to Security Council's Query Stimulate Hope for Com¬
promise of the Immediate Dispute. Secretary Byrnes Is Lauded for Statesman-. ":
'
ship and Splendid Judgment in Avoiding Appeasement and in Establishing
UNO's Authority.
Commentator, However,K Warns That Fundamental Prob¬
lems Concerned With National
Confront
Sovereignty and Russia's Veto Demands Still
Effective World Organization.
an
The Press Is Criticized for Over-
Dramatizing "the Oriental" Gromyko. France's Functions
Mediator Cited.
as
|| HUNTER COLLEGE, NEW YORK, April 3—The internecine "war of nerves" en¬
gaged in by the victorious Allies since V-J Day today took a decisive turn toward an armis¬
tice, in marked contrast to last week's climatic walkout of Soviet delegate A. A. Gromyko.
The written replies received by the Security Council this morning from Iran and the So¬
viet, in reply to its qudry for information, restored hope to the Council members that at
least a temporary pacification of the Iranian
controversy is in sight. The ebbs and flows in
:
British Business Men's Dilemma
this situation have been so sorely trying to the
emotions, as well as the analytical abilities, of
the
diplomats, the international experts, the
press, and the
public, that
welcome.
indication
and
An
any
of
>
'*
respite is doubly
the
Y
r
IFi'
-
general tension
'
<
pervading "jitteriness" ensuing from Sovietrelief displayed at to-
consciousness is the great
day's Council session when—even before the
tent was known—it
reply
was
seen
that at* least
con-
'
some
forthcoming from the absent Gromyko.
Satisfaction with the Russian's reply is de-'
rived from the following clause, answering the
was
g
|!fa§| lf| I!1
definite question whether there was
any^'trade"„
demanded for the reported withdrawal' of Tier
troops:
~
"As to other questions, they are not con-
nected with the question of the withdrawal of the
■BBBMatf
Soviet troops"; this affirmative statement being
coupled with another phrase: "as it is known, the
question, concerning an oil concession or a joint
stock company was raised in 1944,
of the question of the evacuation
||
fpl
mHAH|
IMwpWAAIM
independently
.f*
of the Soviet;; .,; A. Wilfred May •;;;
troops." Thus assurance is offered that duress isV.;^i£££
being used for an oil grab.' Furthermore, the previous proviso
excuse for preventing
the promised troop evacuation is now foresaken.
The greatest cause for optimism, however, is gained from the
not
of so-called "unforeseen circumstances" as an
*
An address by Secretary Vin¬
before the Buffalo Chamber
son
of
Commerce,
Buffalo,
March 29, 1946.
i
(Continued
,•
N.
carefully-prepared reply of Iranian representative Ala to Mr. Byrnes'
\
•
(Continued on page 1832)
*
Y.,
,
on page
1806)
(
Gaumont British
Index of Regular Features
on
page
1834.
State and
San Francisco Mines
Aerovox Corp.*
Municipal
Pratt's Fresh
Nil-Enamel
Bond
Frozen Foods, Inc
Brokerage
Bonds
"
*
Prospectus
Common Stock
request
on
Service
Prospectus on Request
Hirsch & Co.
HIRSCH, LILIENTHAL & CO.
Members New York Stock Exchange
end other Exchanges
':: •
Established
.
2-0600
Chicago
Teletype NY 1-210
Cleveland
Geneva
v-
London
(Representative)
y
•
••
25 Broad St., New York 4, N. Y.
HAnover
for Banks, Brokers
R.H. Johnson &Ca
Successors to
..
1927
INVESTMENT SECURITIES
^
PROSPECTUS
{-v.
OBTAINJED
■
PHILADELPHIA
BOSTON
Troy
Albany
Buffalo ."••• Syracuse
Pittsburgh
Dallas
Wilkes Barre
Baltimore
Washington, D. C.
Springfield
V
Woonsocket
.
or
*
DEALERS
,l:
634 SO. SPRING ST
'
NEW YORK 3
>
Common
SECONDARY
*
LOS ANGELES 14
MEMBERS NEW YORK STOCK
INCORPORATED
EXCHANGE
Member $ N.
14 WALL ST., NEW YORK 5. N. Y.
TELEPHONE-RECTOR 2-6300
Y.
Security Dealers Ass'n
New York 5
45 Nassau Street
TCL
REctor 2-3800
Teletype N. Y. 1-876
Philadelphia Telephone:
~
Enterprise 6016
THE
;
Prospectus
on
$6 Preferred
Dealt
In
Exchange
Telephone:
REctor
Teletype NY
52
York
Security
WILLIAM ST., N. Y. S
Dealers
Assn.
HAnover 2-0980
Bell Teletype NY 1-395
Mtew York
...
Curb
on
Exchange
request
111
New
other
and
Members
New
2-8600
1-635
Y.
ira haupt & co
Reynolds & Co.
130 Broadway, New York 5, ST. Y,
N.
on
Analysis
,
Members
Bell
|
Brook Water Co.
request
Members New York Stock
NEW YORK
SECURITIES
Conv. Preferred
,
CITY OF
Scranton Spring
CANADIAN
Universal Winding Co. Com.
*
OF
Tele. NY 1-733
Preferred
Conv. Preferred
chase
national bank
New York 4
Alloys, Inc.
Conv.
Solar Aircraft Company
$2.40
*
Kobbe', Gearhart & Co.
30 Broad St.
Tel. DIffby 4-7800
1|the
Exchange
Curb Exchange
^Raytheon Manufacturing Co.
MARKETS
Bull, holden & C°
York
^Detroit Harvester Co. Coijf
90c
BROKERS
&
York Stock
Members New
;:
INC.OUP oiati»
WALL STREET
Acme Aluminum
FINANCE
Hardy& Co.
from
HUGH W. LONG and COMPANY
48
Bond Department
V
Members New
CORPORATE
BOND
.and Dealers
;i
FROM
AUTHORIZED
64 Wall Street, New York 5
BE
MAY
York Stock Exchange
Principal Exchanges
Broadway
New York 6
REctor
.
2-3100
,
'
10 Post Office Sq.
Boston 0
Hancock 3780
Tele. NY 1-1920
Montreal
Toronto
Direct
Private Wire to
Boston
;
1782
C
-—;
Trading Market» in:
v'.v.
/ ;•<*.\C v <.;**'.•
-
t
,,
,
Executive V.-P., Economists' National Committee on
/;.• *4
>•'"
.
••
i
.
•
,
'-if...
,i
Members
Security Dealers Ass'n
Dealers, Inc.
Exchange Fl., N.Y. 5 HA 2-2772
NY 1-423
nature.<§>
Its general
1.
policy is one
Our national fiscal
profligate spending of
people's.. money, and dissipa¬
of our national patrimony. It
the
Coal
tion
;
is
Kearney & Trecker
a
;•
type
.
as
act.
"
•
Although the
end of the war
MitcM&Coiapaij
brought
has
sharp drop
in *m i 1 i t a ry
a
Stock Exchange
N. Y. 5
120 Broadway,
BeU Teletype N. Y. 1-1227
'
400 shares
The
ex¬
time
Sloanej
Company
'Common
this
'
w-,
'
'
c
Exchange
Curb
Telephone COrtlandt
one
can
predict
-
purposes.
.•.
in g s a
r ow
banks
t
A.
James
Howe
to
thus
w.
"
Hew
Telephone: WHitehall 3-1223
Exchange,
-
Teletype NY 1-1843
Tel. REctor
.Teletype NY 1-1919
Central States Elec.
|
(Va.)
Common Stock
Hamilton Gas
Tudor City Units
*Wilson Brothers Com.
-
* Prospectus on
Request
Frank C.Masterson & Co.
Members New York Curb Exchange
64
WALL
NEW
ST.
I
YORK
HAooeer 2-9470
Teletype NY 1-1140
currency
more
buy
■
BONDS
WITH
order.
The
8.
inflationary
Coupons Missing
Gude, Winmill & Co.
Members New York Stock Exchange
business* inactivity.
BROADWAY, NEW YORK
120
Broadway WHitek&114-8120
Bell System
any
effects; of
low money rates can be kept
savings and encourage spending within bounds by rationing, and
—one
of the ancient theories of by price and wage regulations.
the cause of depressions being that This combination of measures will
people at times Saye too much greatly reduce the cost of war.
and spend too. little, thus- causing
Contradictions
New York Curb Exchange
50•
duce any
,
Members
York Stock
tox cover
in circulation, creat¬
spending money, putting
up prices, and stimulating busi¬
ness activity.
•
'
'
3. Low money rates discourage
MCDonnell&CO
S
^Meinbers New fork-Stock Exchange v
'ly/Main her* New York rttrh Exchange ' 3
tendency;;which may at
time exist for foreign capi¬
tal to flow to the United States
for investment, and thereby con¬
tribute to international financial
of
Bought—Sold—Quoted
K^-Capital
Publicker
item 6is the
their deficits,
ing
Lincoln Bldg.
7% Preferred
Tenncissee Gas^ & Transv
thought that low money rates ret
bank de¬
posits and indirectly the volume
Guaranty Co.
V.f* Common
Electrol
•
governmental enti¬
Increasing Ifoe volumepf
Common
Central States Electric
IA
United
■.
Collateral
7.
-
1
Central States Piv & Lt.
expenses,
war
ties
Home Title
20 Pine Street, New York
pay
prise and by
-
H. G. BRl.vw
to
States*.
v
branch offices
American Potash B
by the Gov¬
eigners to borrow in';the;
by pri¬
enter-'
vate
From
> 6.; Less "freguehUy bieafd is the
argument that low interest fates
make it less expensive for for¬
rates
our
Anderson Pritchard
el, without increasing the budg¬
etary deficit. ;
larger bor-
1, 1946, Cincinnati; Qhio.
f Coittiimed or! page 1810 JJ
A. S. Campbell
Bell
.
encourage
Byrndun Corporation
■>'
gen-
business
ter e s t
Direct wires to
,
Edward A. Purcell & Co.
1933,
in the alternative, making it
possible for the Government to
borrow more at the same tax lev¬
|.r2. 'Low in¬
Electric
Edison
for
eral
NY 1-1557
New Orleans, La.- Birmingham, Ala.
or,
andhomes,
Quoted
St., New York 4, N. Y.
Hflnover 2-0700
thereby making it easier to bal¬
ance
the
Government's budget,
against houses
April
Common
.§
interest rates decrease
Low
ernment
—
,^v.
the cost of borrowing
borrowing
Institute Accounting Meeting,
**
. ..
■ ■
1>
'
-.V.-
25 Broad
'» -'
5.
Sold
Members New York Stock Exchange
:v
of its return.
.,1 " '
cost of
the
paper
Association
1
f or
—1».
Steiner, Rouse & Co.
ployment; (b) increase the profits
of farmers; (c) reduce one of the
costs of doing business, and (e)
deprive a part of capital of much
reduce
ey rates
arid
Probably no
Gas
*0
■
.■ •
I
1. Low mon¬
presented by .Prof.
Spahr before the Joint American
7-4079
'."7,,,. .'
....
^ *'•'
*'
1
« CO., INC.
Bought
Controls .and That a:
Reserv^ Isolated From Effects of Gold
been
asserted:
people's incomes are still in
the driver's seat, and; fiscal poli¬
cies, fundamentally, seem just as
unsound as they have been at any
time since the blight pf spending
and "wasting ;struck this country
*A
York S
NY 1-1548
Bell System Teletype
|
,!/*.
and %
Holds Reasons for Easy Money
policy
have
brs of
.
Vanderhoef & Robinson
York
j-'.; [i
on a
r e a s o n s
in the 1930's.
New
*'■ '
:
Arguments for Low Interest Rates
Contradictory.
to time,
following
the
spenders
dissipat-
and
Members
'* *•
1933, and to some degree even between 1929 and
Government has favored extraordinarily low interest rates.;
penditures or
in plans for
such
outlays.
FOR SALE \
31 Nassau Street, New
'
Since
.
in
decline
non-war
W. & J.
•
;\"-By JAMES A. HOWE
Movements.
it has brought
no
f*1
Industry, Wonts Monetary
expenditures,
WOrth 2-4230
•
kv'a•.1 •
Whole Network of Complex Economic Interrelations, £
Which Are Incapable of Measurement or of Forecasting. Says
Much of Present; Economic Diffictilties Arise From Distortion of
the Money System, and Recommends That the Monetary System
J Be Restored to a Gold Basis and That a Basic Reserve Be Estab¬
lished^ In accordance With laLbng-Terni Rate of Growth and
Depend
anti -social
Bros.
'':
1
Howe Reviews the
Mr.
an
as
•
,
Notes They Are
pros-
thrift
y,
•
Monetary Policy
v
.■...
'
■
;. .7
perity and
Standard, Screw
Members Baltimore
-
;
*■
;
rnment
g o v e
debt
Seven-Up of Texas
Stern
.:y
■*..
Reappraisal of Easy Money Policy
treats
that
Mayflower Hotel
;
of
—;
_
involving
Preferred
i
...
Better Staffing of Appropriation Committees
Mon-Esssniial Government Expenditures End; >
That Federal Policies Be Geared to Freedom of En erprise and Production, and That the National Debt
Be Converted Into Perpetiial Consols Which lndivii;ia!s Would Buy..
Natl Ass'n of Securities
&
'
Proposes Congress Be Reorganized to Create Better Fiscal
Nothing to Avert.
Established, 1920
Horn
1
j'
,
^
System of an Over-All Annual Budget Be Adopted, With
and Thorough Audits by the Complrolhr General.
Urges
New York
Elk
P. R. MALLORY
University
Spahr, Claiming That When the Gold-Coin Standard Was Abolished, the People Lost Control Over > J
the Public Purse and Government Is Left Free to Run Without Brakes of Its Spending Activities. Adds ¥
That Low Interest Rates Also Lead to Profligate Government Spending, Which Congress Has Done T
KING & KING
Common
York
New
Dr.
*Prospectus Upon Request
BBLIi TELETYPE
Economics,
of
Professor
■
:
Higgins, Inc. * |
10
Thursday, April 4, 1946
,
By WALTER E. SPAIIIt*
Pfd. & Com.
Dumont Elec.
'
v
*
''
Miss. Valley Barge
:
"
National Fiscal Policy
Arnold Brilhart, Com.*
N. Y. New Haven R.R.
Old
'
THE COMMERCIAL & FINANCIAL CHRONICLE
:
effects of 1,
4. The stimulative
Tf
2-7815
2
and
(a) Increase em-
3, thus:
It will be noted that the reasons
expressed in qualitatiye terms
are
I Wall St., New York 5, N. Y.
Plgby 4-7060
Teletype NY 1-953
.
because the effects of low money
rates cannot be isolated
Alexander Smith
Carpet Co.
only one of-many examples which
Cbuld be listed: Low money rates
are supposed to discourage saving,
but figures are published from
time to time by the Board of Gov¬
CANADIAN BANKS
CANADIAN MINES
*Pufclicker Industries
CANADIAN UTILITIES
*
Prospectus
on
Request
'1
~
t'
"'I
■<'
*''J>-
V
'
'
'
'
' / '
♦"
V1'-
,•'» A
k
'
1
I ^-
''
11
'Jt
J'u
,
Goodbody & Co.
Members JV. Y. Stock Exchange xmd
Members N, Y. Security Dealers Assn.:
37 Wall
BeU
St., N. Y. 5
;
115 BROADWAY
Hanover 2-4850
Teletypes-lNY 1-1126 & 1127' /
Other Principal Exchanges.
NEW YORK 6, N, Y*
This
v
.
•
For Banks,
Inc., Com.
Active Trading Markets
Harrisburg Steel Corp.
*
Common
"
District Theatres Corp.
Common
Alexander Smith & Sons
*
HAnover 2-0600
Tele. NY 1-2908
on
Private Wires to Cleveland
Detroit
-
Macfadden Pub. Inc.
Pfd. & Com.
Southern Textile Issues
C.E.deWi'liers&Co.
Members New York
Security Dealers Assn.
120 Broadway, N. Y. 5, N. Y.
REctor 2-7630
Teletype NY 1-2361
International Ocean Telegraph Co.
& Atlantic Telegraph Co.
Pacific
MICHAEL HEANEY,
Request
Place, N Y. 6
HA 2-2400
Teletype NY 1-376-377
.
.
Western Union Leased Line Stocks
BOUGHT
—
SOLD
—
Pittsburgh
-
St. Louis
Mgr.
■yy WALTER KANE, Asst. Mgr.
QUOTED
Southern & Atlantic Teleg. Co.
Empire & Bay States Teleg. Co.
bought
J-G-White 6 Company
j
incorporated
,:.a-
Joseph McManus & Co.
Memb*'*
74 Trinity
25 Broad St., New York 4, N. Y.
Dixie Home S tores
Jefferson-Travis Corp.
Common
Publicker Industries Inc.
Members N. Y. Security Dealers Ass'n
Members New York Stock Exchange
.
*
"
CORPORATION
Troster.Currie sSummers
Simons, Lin&srn & Co.
to
bond
campaigns,
and
to
wartime
shortages
of
goods for which
(Continued on page 1802).
„
(Statement Available)
war
■■WfibCarP®t Co.
*Prospectus
Prospectus Available
attributed
to
MACHINERY
Bought—Sold—Quoted
*
then
income,
GENERAL mm
Short Hand Dealers
/'
\
result "is
Howard Aircraft
Brokers and
•
Bowser
of
increased
1-672
Teletype NY
Telephone BArclay 7-0100
the Federal Reserve
System to indicate that individ¬
ual savings have attained record
size during the wartime period of
unprecedented • monetary
ease.
ernors
Canadian Securities Dcp't.
oteeneahdComptm^
economic
er
CANADIAN INDUSTRIALS
•
from oth¬
phenomena,
and
measured quantitatively.
To cite
V. S. FUNDS for
We Maintain Active Markets in
*
NEW YORK 5
ESTABLISHED 1890
/
j
37 WALL STREET
j
-
I
Tel. IIAnover 2-9300
Tele. NY 1-1815
j
n*w
Vnrk Curb Exchange
•
New York 6
Teletype NY 1-1610
-
quoted
Arnhold and S. Bleichroeder
INC.
Chicago Stock Exchange
i 39 Broadway
! Digby 4-3122
sold
30 Broad St.
WHitehall
3-9200
New York 4
Teletype NY
1-515
■■
.Volume 163
Number- 4478—
THE COMMERCIAL &?'FINANCIAL CHRONICLE
1783
A Sound L^bor Policy Plea for Continued Price Control
By CIIESTER BOWLES*
Professor of Economics, Columbia-University
Director, Office of Economic
Dr.-Wolman, in Ascribing; the Source of Many Labor Troubles,to
Reform
Policy, Holds That First and Most Pressing
Bring About Industrial Peace Is:
to
Fair and Unbiased
a
"
Administration of the National Labor Relations Act.; Cites Case of
Recognizing Foreman's Union
as
t
Indicating NLRB Has Been Yield¬
1
ing to Organized Labor Pressure and Gives Illustrations of Ambigui¬
and. Inequities
ties
of Law Enforcement Where Unions Are In- j
volved.
Holds Government Is Making Collective Bargaining Un¬
workable and Urges That Parties in Labor Disputes Settle Their
Own'DfFerences.;^-;^! f j;
'•What
we
expect of
a
,..
national labor policy is a reasonable amount
This does not mean the elimi
of. peace ^nit .qpiefr in labor relat
«nation "of all
s
trikes
settle.-
to
t
i!
spells
the decline of-
demo caratic..
the
mean
the
a n
;>
d
V"Vhave
,
,
were
important
price.
deal
long
than
they cart posbly ga in.
fc i
Prof. Leo Wolman'
whom
great
strikes- ? of, last
©rid this spring fail into
\h
e.
a
v
t
r
c'
u
lively.
sions
-
On
d
we
have
is-agr eed.
Sometimes
h
'comes
;
address
by Dr. Wolmafi
before- the- National. Republjeafr
^
a v e
Brunswick Site
we
even
disagreed vig^
orously.
But
were surprised and perhaps
little resentful to* find that
many
which
have faced
we
since
J. GOLDWATER & CO.
..
Members New York Security Dealers Assn.
problems have remained to plague
us.:. In many ways the difficulties
39
t;#•
V-J
HAnover 2-8970
Day have been
more trying than
economic; problems with
which we struggled during
the
war.
In the;midst of.the war ef¬
fort it was easier to pull together.
Out There Is
I
Stock's Value Is Its Selling ^
Prospective Earning Power, points {
Puhlicker Industries,
,
Incorporated
1
Prospectus
on
Earnings i
Chills from
»
ment
somewhat
degree.
- ::k Numerous
Were recorded
Simultaneous-;
4 1 y with a
scatte r i n g of
hew lows, thus
emphasi zing
the selective
nature
els.
market. So
fap
1
nohsehse,."
pow Jones in¬
dustrials
.back
vs.
J
instance,
•;!
-
.•••
TRADING MARKETS
Thiokol Corp.
Miller Mfg« Co.
.Billings & Spencer
Wilcox-Gay Corp.
,
Ttinney-Coastal Oil
Doyle Mfg. Com.&;IPfd«.
Est. 1926
ton
MtRIOO & [o.
Members New York
170
*
Security Dealers Assn.
Broadway
',J "
WOrth 2-0300
Bell System Teletype NY 1-84
cent and current wage and other
" As a result, some
manufacturers
are r. reported
to
present conditions
suspended
-
■
are je-
(Continued
Haytian Corporation
operations % and
1818)
on page
Pun ta Alegre Sugar
.
We are iriteresied in
Eastern Sugar Assoc.
offerings of
Lea Fabrics
some recr
High Grade
Public
i/Continued m page 1815)
Utility and Industrial
Sugar
General Aviation
■■
Equip.*
"
y.
Pressurelube, Iric;
PREFERRED STOCKS
jk
,
U. S.
68; and thp,
Spencer .Trask & Co;
Armstrong Rubber
The selective nature of the mari-:
ket sedms" likely tt> continue Over
a further brief period
but, later
4
Oxford Paper
when the continuing marked
Northwest Eng.
CERTIFICATES;
;
«Tw
1
.
•••''"
I
'
'
,s
'■«
N.
7., Security
32 Broadway
.NEW YORK 4
.
Prudence Co.
/
>■
*
DIgby 4-8640
Teletype NY 1-832. 834
„
Newburger, Loeb & Co.
Members New York Stock Exchange
WHitehaU 4-6330
Bell Teletype BT1-2033
Private
American Bantam Gar
Wire
to
Boston
Dealers
Sales &
Prospectus
Bought—-Sold—Quoted
.
Harrison 2075
Teletype CO 128
HoeRsseSTrsster
"
.
v
j
established 19I4
:
•
'?■'
Direct Wire Service
York-—Chicago—St. Loui»
Kansas City—Los Angeles
74
,
Trinity Place, New York 6, N. Y.
Telephone:
BOwlmg Green 9-7400
.
.
>
,
C. E.
upon
request;
Unterberg&Co.
Members N.
■
New
Service;Inc.-
Assn
Board of Trade Bldg.
CHICAGO 4
;
•
Parks Aircraft
Commoii & Preferred '
r
STRAUSS BROS.
Members
N. Y. Title & Mtge. Co.
WHitehall 3-0272—Teletype NY 1-956
'-.sV--,y;l
Lawyers Mortgage Co.
Lawyers Title & Guar. Co.
Teletype NY 1-5
-.1. Members New York Stock Exchange
Liberty Magazine!
Bond & Mtge. Guar. Co.
Members New York Security Dealers Assn.
25 Broad St^New York 4,N.Y.
!
;«
TITLE COMPANY
-
DUNNE & CO.
25 Broad Street, New York
4
Telephone HAnover 2-4300
'
H. K. Porter Co.
'Jl
U
general
uncertainty
about
possible price relief following re¬
1-2733-34-35
te
Los Angeles
'
have
under
time all securities which have had
Febru-
g 40 Wail St., N.Y. 5
the
NY
Chicago &
'
luctant to produce and sell merr
actually■' for sale; clearly reveals^
as
indicated, that manufacturers
sensational, price advances during
the pn^t few*years. Now, we ha've
Utilities* to - 'around the previous
bull market top of 41.. v.
1 i
gi
rBo?t<Ar,
V
cost increases.
during -the past
week; to liquidate at the present
com¬
rails to around 64
on,
"Examination of both the vol¬
ume and characteristics of current
bmmendations
&tt2°06;-th|.;'c''""*v-Bin"a;i
v
ning of the year, the article states:
2-4785
Teletype,
.
pared with the
early-
'
*
-
We note, for
to around the
200 level
pessimistic view
but'in" the stock market it more
often than not-fust-leads to plaid
the
recovery
(las carried the
;
Study of history in the schoolf
boys' classroom makes some sens^
••
System
Private' Wires
the immediate
production and the supply of goods
Sense and Nonsense
the
of
; of
br.oader demand for well situated
equities will ensue that will caijry
prices ta substantially higher levr
HAnover
Boll
j
depreciation in • the s;phrcha$ing the Seventh Federal;Reserve JDis? prices which ^re not considered
power of the dollar becomes niore trict (Chicago area) has shown a by individual firms to be
high
widely recognized, we believe! a declining trend^since the^, begin? enough id permit profits and to
highs
new
? '
,
ftiture of manu- chandise when losses are anticir
UNO and bituminous, coal dampened .'bullish senti¬
facttirih| output and consumer pated.. Some of the current lag in
demand i$ expressed^ " Noting that
during the past week but not to, any. appreciable
output and distribution apparently
the, manufacturing industries in can ;be
•
^
•
j
attributed V directly j to
'
Reilly & Co., inc.
,
In an analysis .of fhe .business and reconversion
outlook, the
April issue of "Business Conditions," published by the Federal Re4
serve Bante of Chicago, a
restf ain-^
ed and somewhat
Chills
Request
on
Members
i
Nev> York Security Dealers Assn.\.
•:.*
Chicago .Federal Keserver Bank Says Tbey Anticipate Losses Because |
of Uncertainty of Prices4abd,Wages;; Expresses Doubt^ That Accu¬
mulated Savings Will PermitHeavy Purchases of Consumers Goods
Without Current Financing. Sees Financial Positions of
Many Corjipratious Weakened.
no
4 Shares Will Be Increased Because of Tax Penalties
te■ Retention. &S*•
^ 4;
gjjj;|g. Carpet Co.
40 Exch. PI., New York 5, N.Y.
a
Concludes That a General Boom, With Temporary Setbacks, Should i
Last Approximately Three Years and That Dividends on Some i
Teletype NY 1-1203
Alex Smith & Sons
...
Reluctant to Produce
Assurance That Selections of Issues by the Pin |
| .Slicking Method Will Produce Satisfactory Results' From Now On
| and That Eternal Vigilance Is. the Price of Investment Security.
|
C
the
| ?
Partner J. R. Williston. & Co.
Price in Relation to Current and
Broadway
New York 6, N. Y.
J. F.
|
^,
j
We
Holds Manufacturers
J Analyst, Asserting That the Test of
Dye Works
j
.
.
Piece
Huron Holding Co.
<
By G. Y. BILLARD
YORK
United ' Artists
United
.
:i
Dept.
NEW
Telephone WHitehaU 4-6551
be
*
Problems That Plague Us
a
con¬
many ' occa¬
!
STREET,
e
more
;
's
overnight.
.
on
Obsolete Securities
the
economic problems would
eased
more
they
-
over
dry up!
WALL
99
.:'V;i^:1^4 .-4:7:>4.
*An address by
Chester. Bowles
.always. I.Tfelt
JVCr. Bowles be^,* that we 'were fore the American Retail Feder¬
wintejr Club,' New York -Gity, Marph 30,- working - Earnestly for the .same ation,
Washington,D. C., April I,
^s; pate£
final result.
! 1946..
b
which they
(Continued oh page 1798)
;Duriiig tbe yrar we.'ail looked
(Continued on page 1800)
!
Most of the
The issues
*An
people'hope
long the - time
wetter
them
turn
',
■
day when the
shooting would finally come to an
end; " Unconsciously. perhaps, we
congenially br
wars
most,
-as
will.: Before
"ii
getting
Then
felt that with the end of hostilities
w
and boorris
any "price .seems 'to work;- Biit
wars end and booms-fail to last as
tably iosea
.
our
worked
thah
warfare. ^Almost £ any;
During
years,
none
with
VI
-
few
'
forward ; to
been
appall-
often
us—and
to
there have
the
labor dispute can; be. settled at a'
strikers inevi¬
gory.
More
industrial
hi ch the
great
'critical
is the correct settlement of
the issues which cause strikes anid
sively
costly strikes
—~str ikes in
more
everybody
in^
come
contact .during
p the; last
peace
exces
w
months .and
ing.;|Jg>||f:
avoidance. o.f
needless
for
streets
wetter?
4 I am glad of an opportunity to appear today before the American
Retail Federation. \ Among the scores of organizations with which I
a
losses to.
411
processes.
does
proved
strongbox
.your
and
J: Hon. Says, Selected Price Adjustments Will Continue and Predicts
Early Wage Stabilization. ; Criticizes Opponents and Contends That }
if They Prove Wrong, Disaster Will Result and Free
Enterprise Will \
Be Destroyed. - » — •
•
,
,
,.
.
•.
j
greater.hindrance thap
aid tcr peace.
Heiice men .walked-
come
DAMPER
Are those obsolete stocks and bonds
•
and reckless arid the. Government,
an
FOREVER
iu
Amendments, the Last Major Stumbling Block |
Prosperity Will Be Behind Us and There Will Be All-Out Produc- I
to
Butj men .got careless
out¬
such
*i<
time Controls Without
fought were, simple and easy
were
or
lockouts. For
Stabilization
Asserting That There Has Been an Over-Indulgence of the Natural !
Tendency to Take a Swing at the Government When Our Problems 1
Are, Difficult, Mr. Bowles Recounts the 'Stabilization Accomplishj
ments Since V-J
Day. Contends, That if Congress Continued War- 1
,
the National Labor.
»LiCHTtnsTEir
v
AND COMPANY
"*
:
.
fpeiefypes:
NY 1-375 & NY 1-2751
61
Y.
Security Dealers Ass'n
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
Teletype NY 1-1666
THE COMMERCIAL & FINANCIAL CHRONICLE
1784
5
Thursday, April 4,1946
i
lit
111
Asst. Director,
■
v
't,-'
x. By EDGAR L. WARREN *
Director* IJ. S. Conciliation Service
S. Department of Labor
■0C-
Has feeek Sue- j
cessful in Nearly All Labor Disputes, Expresses Opposition to Com- !
pulsory Arbitration as Destroying Individual Freedom. Claims
President Truman's Fact-Finding Bill Is Not Coercive and That It %
Merely Provided for Compulsory Investigation and Not Arbitration.'
Lists the Objectives of Mediation As Not to Avoid AH Strikes but
to Bring Parties Together So As to Bring About an Understanding
of Divergent Views and Claims.
Concludes That Conciliation and j
Mediation Can Only Be Successful When at Least One of Parties
Is Anxious for a Settlement.
In Washington He Describes Work
Conciliator, AssertingThat Mediation
Government
Transport!
Air Cargo
American Bantam Car
Armstrong Rubber
& Pfd.
Com.
Automatic Instrument
S. F. Bowser
;
'
:V
old Pfds.
I have been asked to
boards
ar¬
of
Hartford-Empire Co.
these
c e
d
u r
the
M. Lowenstein & Son!
$
.
by Mediation
applied to
dispute set¬
tling machin¬
ery.
W hi 1e
Conv. Pfd.
Missouri Pacific
0iM
labor disputes, are settled, by con¬
ciliation or mediation. ; Even dur¬
are
of all labor
the
well understood by
without
mem¬
Old pfd.
Sylvania Industrial
Taca Airways
*
without the' interven¬
on
Philadelphia,
Association,
ence
construed,
carried
During
♦An address by Mr.: Warren be¬
fore the American Political Sci¬
synonymously.
Strictly
conciliation may be
used
intervention of the War
with its extraordi¬
war-time authority.
nary
Conciliation and mediation may
be
"
were
set of definitions.
on a common
N. Y. New Hav. & Hart.
disputes
Labor Board
organization I believe
that it is desirable for us to agree
Fireproofing
75 %
settled
ing the war approximately
Warren
L.
Edgar
terms
bers of this
Mohawk Rubber*
significant that nearly all
It is
..
,k
these
Settled
Disputes
Most
which
are
Maxson Food System!
Pa., on March 28,1946 followed by
his
the American
before
address
members
What
are
as
has for
in
special connotation as a policy
applied to the distributive trades
their
respect¬
this
this
to
Crowell-Collier Pub.
absorption.
I
attempt
to outline the
Saul
Sell#
B.
industries.
Dye
.
my own
I
look
can
the
at
opening remarks to a
analysis of the cost ab-
Members TV. Y. Stock Exchange
Cent. States Elec., Com.
11S
Broadway, New York
.
Telephone BArclay .7-0100
Prospectus
on
Teletype NY 1-672
DerbyGas
working rules and standards to
carry out the general language
a n d
intent of Congress.
The;
(Continued
COMMERCIAL and
The
William B. Dana Company
Established 1908
Publishers
25 Park Place, New York 8
,
^District Theatres Corp.
Puget S'nd P, & L. Com.
I
'
J
'
*
v
*
Southeastern
•'
Corp.
I
United Public Util.
-.
<«'?<
;
i
r.
.!-/ ' "
..
.
•
r-
I
V:4"'
'
.
-4
fProapecfo* Upon Request
::•
'
* Bulletin
*
or
v;
-v/u;;
•.
System Teletype N.
Y.
Assn.
REctor 2-9570 to 9576
Herbert
1-714
'
1
'
*
\
-
;
i
\
'
or
Special Letter
on
ARNOLD BRILHART
.
Published
v
52
Members
New
Wall Street
York
Security Dealers
Association?-
DU MONT ELECTRIC "
Teletype NY 1-2425
; '
twice
.
1946
week
a
'
,
(general news and advertising issue) |
and every Monday
.*-0
(complete statistical issue—market quo¬
tation v records,
corporation,
banking,
clea/rings, state and city news, etc.) „
New York 5, N. Y.
.
Tel. HAnover 2-8080
4,
jvgry.Thursday
FIRST COLONY CORPORATION
'.
April
Request
L. E. CAREENTER GO/ ''
i
D. Biggs, Business Manager
Thursday,
^
Prospectus and Special LetterAvailable
/
William Dana Selbert, President
.William'
f Le Roi Company
'
•
D. Selbert,
Editor and Publisher
-
Stand. Gas & El. Com.' !
§
*
^Statistical Study
Spec. Part.
Bell
^Simplicity Pattern
Shops
1809)
on page
FINANCIAL CHRONICLE
request
J.K.Rice,Jr.&Col
^Electronic Corp.
^Princess
March
City,
York
New
ciation,
28, 1946.
REctor 2-4500-—\2D Broadway
*Dumont Electric Corp.
Sells before
Oil Corp.
Members N. Y. Security Dealers
| New England P. S. Com.
| North'n New Eng. Co.;
develop
to
Administrator
Reg. U. S. Patent Office
7
Iowa Pub. Ser. Com. 5
responsibility of the
It was. the
Price
105 West Adams .St., Chicago
,
maintain them
and equitable,
♦Publicker Industries, Inc.
*
directed to
♦An address by Mr.
Great American Industries
and Other Principal Exchanges
is
at levels which are generally fair
the Commerce and Industry Asso¬
United Artists Theatre Circuit
Goodbody & Co.
American Gas & Pow.
I will
points of view.
♦Anderson Prichard
——''
he
problem
♦District Theatres Corp.
Warren Bros. B. & C.
Bought - Sold - Quoted
.
Without cost absorp¬
tion We could not possibly attain
apprais¬ effective price control. \ as a Government
Let me explain the principle
official and as a business man.
and
its
application at various
For several years I have had
levels of industry. This requires
an opportunity to observe the ef¬
an understanding of the provisions
fects of this and other policies as
of the law. First, the Price Con¬
they affect a wide range of in¬
trol Act provides that the Ad¬
dustries
operating under
price ministrator shall set ceiling
control. During this period I was
prices in the first instance with
closely responsible for the finan¬ due
regard to levels prevailing
cial
and
cost
information col¬
during the period Oct. 1 to 15,
lected from industry.
Then, for
1941. In the event that period is
the last year and one-half, I have
inappropriate, he is directed to
obtained a closer view and I have
consider the closest period to that
shared the responsibility for ad¬ during which; competitive con*
Second, after
ministering the policies and regu¬ ditions prevailed.
initial establishment of ceilings,
lations in the vast consumer goods
give you
al of this policy
Sunray Oil 4%% Con! Pfd.
Central Public Utility 5V^'52
levels
and
Oxford Paper Com. & Pfd.
Bowser Inc.
r
absorption
price policy. It applies at
of manufacturing and
distribution, in all "industries in¬
cluding the textile and garment
all
will
issues
J
cost
of OPA
cost
on
or¬
is a
foundation stone in the structure
round-
table
Perhaps
policy.
Actually,
in
participate
this
retail.
and
for this is that the
retail trades have been
most vocal in their objections to
accept your
invitation
reason
to have
come
ganized
honored
were
to
the
OPA
in
we
reason
some
wholesale
For
reason
detailed
Textron Wrnts. & Pfd.
Absorption? >
leaders
confine my
Art Metals Construction
Aspinook Corp.
Cost
Is
Cost absorption is a term which
wide
of
from both
Alabama Mills*
m
and
officers
that
American Hardware
United Piece
sorption probjem, but I will be
glad to answer questions later.
Your
tion.
tion; of a third party merely by Public Relations Associations at
field including the textile and ap¬
the parties in dispute .endeavoring
Washington, March 29, 1946.
parel industries. X feel, therefore,
to argue out their own differences.
(Continued on page 1808)
Upson Corp.
U. S. Air Conditioning
Sfe;.
<8>-
in
na¬
then to
0
#
:
various
terms
by
non-coercive.
is
his services.
fi
'
*
of
meaning
the
mediation,
or
Not
only does the mediator have no
authority to impose his ideas on
either party, but his intervention
in a dispute, must be wholly vol¬
untary.
Either party may reject
would like to
Kaiser-Frazert
Conciliation
definition,
I
review
to
party
the same thing.
,
pro-
es,
third
assist in. this bargaining process,
but as these terms are currently
effectiveness
Gt. Amer. Industries*
a
the in¬
used they mean
tempting
to
appraise the
Getchell Mines
of
tervention
at¬
Before
but
the entire
City,
ive fields.
in
adjusting la¬
bor^ disputes.
Machinery
The Commerce and Industry Association of New York occupies
distinguished position in the business world, not only in New York
.
a
reputation
Mediation clearly implies
and
voluntary
bitration,
Douglas Shoe*
National
V
discuss the effectiveness of non-coercive
action* including conciliation, mediation,
fact-finding
District Theatres!
01d p(d*:
administrative
of
forms
r
Dayton Malleable Iron*
General
*
;
A.
r
Maintaining ' That WithoutCostAbsorption; Price Control Cannot
Be Effective, OPA Executive Describes Working of the Plan on the
Basis of an "Industry Earnings Standard/' Contends That if Each
/ Cost Increase in the Process of Production Is Pyramided to Con¬
sumer, Rise in Living Costs Could Not Be Curbed.' Says Absorption '
Capacity in Some Cases of Textiles Has Been Reached and That
/ Adjustments Are in Order.
• J >
men
of U. S. Conciliation Service.
Chicago R. I. & Pac.
Consumer Goods\Price Division,^ OPA"
'-1-
MSfitt":.:.
PRATT FROZEN FOODS
Circular upon request
Offices:
135 S. La Salle St.,
3, 111,. (Telephone: State 0613);
Drapers' Gardens, London, E. C„ Eng¬
Other
Chicago
1
land, c/o Edwards & Smith-
Bought—Sold-—Quoted
Copyright 1946. by William B. Dana
GALVIN MANUFACTURING CO.
(Makers of Motorola Radios)
s
EST
UPSON
1926
REctor 2-8700
Hartf'd 6111
Buff. 6024
Descriptive
•
;/•
r
Circulars
J. F. Reilly & Co., inc.
1
request
on
Seligman, Lubetkiii & Co.
Incorporated
Members New
York
.
~
Broad
40 Exch. PL* New York 5* N. Y.
HAnover 2-4785
\
Bell
Security Dealers Association
Street, New York 4
"'
.V-Z'^/DAnover
'$ Reentered
second-class matter Feb¬
ruary 25, 1942, at" the pgst office at New
York, -N. Y., under the Act of March
3, 1879.
;■
System
Teletype,
NY
Wires
1-2733-34-35
to
"
2-2100
Boston,
Chicago &
Los
Angeles
,
Possessions,
Canada,
of
Central
as
in United- States audi
$26.00 per year; in Dominion
../J
$27.50
America,
per
South and
Mexico, and
year;
Spain,
Cuba,. ■ $29.50
per, year;
Great Britain,
Continental Europe (except Spain), Asia,
Australia
New\York Security Dealers Assn.
Private
41
'
Members
;
Boa. 2100
/ f
s ,>
Subscriptions
WELLMAN ENGINEERING CO.
p
ENTERPRISE PHONES
*/'
^
.•
i
1-1287-1288
Direct Wires to Chicago and Phils.
i./G // 'i
TENNESSEE PRODUCTS
120 BROADWAY, N. Y. 5
N. Y.
Prospectus oh Request
'
I |
COMPANY
| KENDALL COMPANY
Members N.Y. Security Dealers Assn.
Company
^
and
Africa,
$31.00 per year.
Other Pnbllcrfttoh#
1
Record—Mth.$25 y*.
Monthly Earnings Record—Mth.. .$25 yT.
NOTE—On account of the fluctuations
in the rate of exchange, remittances fqi
foreign subscriptions and advertisement*
Bank and Quotation
Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL CHRONICLE
In South Africa Cohu-Torrey Advisory
Torrey,
Street,
oreign Policy
f
•;*
U. S. Senator from Texas
Chairman of Senate Foreign Relations Committee Sees Progress
Made in London Security Council Meeting and Points Out That
Present New: York Meeting Is the Most Momentous and Fraught
With Hope for Future of Mankind Since Our Constitutional Convention in 1787. ; Insists Every Nation Must Make Real Sacrifices
ward.
Favors
United
Retaining Pacific Bases Under
Trusteeship, Provided Our Security Is Protected.
I
in
came
/
:
Nations
the territories they now
or
der
to
the
out¬
bilateral
all
maneu¬
vering. .',
work
we
advance toward the establishment
together
of
honestly and
fearlessly for
ty
>
;
th
of
e
Sen. Tom Connally
greatest blund£r in history, we allow our whole
civilization' to collapse / in ruins
about
world
a
order
which
will
do
away;with the exploitation of de¬
pendent peoples and make sure
thdt dependent territories are ad¬
ministered on behalf of the native
guil-
peace, or,
population.
'
Mandated /Pacific Islands'
/
us.
I; Very
.
The
alternatives* are -clear.
If
and reason and common
logic
must
soon
decide
.
the f United. States
what
policy
our
should be with respect to the man¬
guide our choice there, dated islands which we now occu¬
only one answer — the py in the Pacific. Some of these
sense are to
be
can
United Nations.
By
gains
•
no
islands,
the least of our
the fact that progress
ice department.
Mr. Snow, who
joined Cohu & Torrey in 1945, w;as
in the past a partner in
Snow & Watts.
Preference
John C. Gross, Inc.
John
United
C.' Gross,
Inc.,
here
also made toward
setting up
Trusteeship Council.
Great
Britain, New Zealand, Australia,
Belgium and France all agreed to
place under the trusteeship system
been
poten¬
tialities are
might
just
the
European population.; ;In a
word, the latter dominate the en¬
tire life of this British, self-gov¬
We
hand
a
business of John C. Gross, a sole
proprietorship. Officers are John
C. Gross, President and Treasurer;
tical
suppose
off
that
small that many of the statis¬
data are recorded only for
so
trade
excellent.
with offices at 40 Broad
Street to continue the investment
®
there,
erning colony* which is made up
6f the provinces of the Cape of
Good Hope,; Natal, the Transvaal
and the Orange Free State.
popu¬
will recall,
you
to;
mil¬
ten
afford
Helen
V.' Gross,
Vice-President
Assistant Treasurer,/and Ed¬
win Nilsen, Secretary,
;
,: •
and
.
cellent
The Economic Resources
ex¬
an
mar¬
ket; but when
learn
we
two
o
i
that
perity
der
r o-
stay
Dr.
Van
E,
of
Bantu, about 220,000
In fact, the productivity
the
non-European
element
Bank of Toronto
the people dating from
However, these "one com¬
modity" economies began fading
Asiatics and about 800,000 of other
origins.
Bank of Montreal
Bank of Nova Scotia
based
of
Canadian Bank of Commerce
1870.
Cleef
only a very low pur¬
chasing power, the economic pic¬
ture changes notably; Of the nonEuropeans -over six' and a half
are
SECURITIES
upon its diamond
output which had been the main¬
with
millions
as
which began in 1886. Prior to 1886
the region enjoyed a certain pros¬
the lat¬
pean,
ter
n
u
n-E
CANADIAN
established
was
in
1910,
the
year
often
tnarked as ending the "Gold Era,"
millions
rem a
Union
such
only are of
European
origin and the
h
The
:
is
Dominion Bank
out at about the same
time, giving
degree to a
more stable mixed economy.
Agri¬
culture,
pastoral
pursuits
and
manufacturing, all began to at¬
tract attention and, happily for.
the colony, were stimulated by
the advent of World War I.
vf
Imperial Bank of Canada
Royal Bank of Canada
in some slight
way
(Continued
Andian National Corp.
Assoc. Tel. & Tel. $6 & 7% Pfd.
Atlas Steel
^
1816)
on page
Brown Company Com. & Pfd.
,
blocked
Bulolo Gold
^Excerpts from/ an Address by
Senator Connally before The Na¬
was
■the
has
formed
Dredging
means
was
Blanchard,
lions {would
point out that the creation of
the Trusteeship Council will mark
a real advance in bringing the de¬
pendent peoples of the world one
step further toward their ultimate
goal of self-goyernment or inde¬
pendence.
It will mark a real
throat compe¬
tition and its
Either
and
i May I pause here long enough
to
*
supervise
the
firm's
recently
formed investment advisory
serv¬
'■>
lation of close
:
its
diplomatic intrigue, its cut¬
selfish
firms
Assembly meets again: in
September.
; states/
with
un¬
time the
dealings be¬
tween
hold
League of Nations mandates.
It is hoped that appropriate agree¬
ments can be concluded by the
method
worn
of
Sentimental
a
'
Stock Exchange, an¬
that Charles W. Snow will
although for individual
United
Nations work
revert
and
York
nounce
-
Trade prospects with the Union of South Africa for the
States as a whole are not particularly
bright,
the
we
South Africa
1 Wall
City, members of ;the
York
New
Dr. Van Cleef Analyzes the Population Composition of the Union
of South Africa, Together With the Resources of the Common-1
| wealth, and Points Out That on the Basis of Past Experience and
Future Proposals, There Is Little Likelihood of Substantial In¬
crease in the Commerce With the
United States. Sees Increased
for British Goods.
&
New
.
Department of Geography^ Ohio State University
Industrialization in
from London with exactly the same feeling I had
when we framed the Charter.
Either we make
away
San Francisco
'
,/
,
So That World Peace Can Be Realized and That Regardless of
Russians' Presence or Absence the United Nations Must Go For¬
,
Cohu
'
By ENGENE VAN CLEEF
By HON. TOM CONNALLY *
/■
Charles Snow to Head
Our Trade Outlook
and American
Canadian Pacific Rwy.
Canadian Western Lumber
Direct Private Wire Service
tional Conference of Music Edu¬
cators in Cleveland on March 28,
COAST- TO
Famous Players Canadian
'
(Continued
New York
page 1814)
on
-
Chicago.
-
St. Louis
-
Electrolux^'
^
COAST
-
1946.
Kansas City
Los Angeles
-
Corp.
International Utilities
Jack Waite Mining
American Gas & Power
STRAUSS BROS.
Company
Common and Warrants
Board of Trade Bldg.
CHICAGO 4;;."'V>
Broadway
NEW YORK 4
Common Stock
DIgby 4-8640
Teletype NY 1-832-834
"W. H* Bell- & Co.
.
■■■,
'
Incorporated'
,
50
BROADWAY, NEW YORK
*
Wilitehall
Harrison
'
:
/Steep Rock Iron Mines
t
Sun Life Assurance
'.
Teck Hughes Mines
Company
•SY# LOUIS 4
Baum, Bernheimer Co.
KANSAS CITY
■
Pledger & Company, Inc.
4
Sherritt Gordon Mines
>
.
;/
2075
Teletype1 CGv 129;'
White &
•■■■
■
Pjend Oreille Mines
1
32
,
HART SMITH & CO.
52 WILLIAM ST., N.
LOS ANGELES
4-5263
-
PHILADELPHIA
BOSTON
Private Wires
to
^
Principal Offices
ACTIVE MARKETS:
panama coca-cola
Quarterly dividend payable April 15, 1946
Dividends 1946 to date
Puget Sound Power & Light
Analysis
on
$.50
—
DI-NOC CO.
$1.25
—
Approximate selling price
Sierra Pacific Power
33
—
request
Southwestern Electric Service
'
•
Specialists in Soft Drink Stocks
Boston
-
74
Street New York 5, N. Y.
*
Philadelphia
v
Telephone:k
\
of America
Chicago
J
•-
San
i
companies in
its
:
_
Analysis
on
|
/
Lane Cotton Mills Corp.
.
.
Chicago, Rock Island & Pacific, old
-/
-
|
/
;.
Stand. Fruit & S/S Com. & Pfd,
St.
New York 5, N. Y.
Tele. NY 1-2078
York, New Haven & Hartford, old
Louis & San
United Piece Dye Works
United Stove
^
com.
& pfd.
Missouri Pacific, old common and preferred
New
L j. FEIBLEMAN & CO.
Tel. BA 7-5161
V-
"k
:
:
•
%»•
*
£
i'
>S
/V
39 Broadway, N.Y. 6
Dlffby 4-2310
Teletype NY
1-1942/WoiiUZ
.
.
..
Francisco, old
/: Bought
—
common
common
V
Eastern Sugar Associates
Common
&
Preferred*/-'
•'
r
and pfd.
Punta Alegre Sugar
and preferred
sold—quoted
•
V..
v...,-
Quotations- Uport
Request
&
CO.
?
.
/
PETER MORGAN & CO.
31 Nassau Street
-
.
Old Colony Railroad ;
;
Kold Hold Co.
Rademaker Chemical
ficld.:
Request
'Boston-& Providence Railroad
;
0-
'
Present Market about 5%
'; / /-
M Harvill Corp..
v...;.-
SIEGEL & CO.
NY 1-375 & NY 1-2751
Francisco
Jeff. Lake Sulphur Com. &/Pfd.
One of the mosi promising
•
^A
.
-
Soya Corporation
/
p
Teletypes'
-
^
t
Trinity Place, New York 6, Nv Y.
BOwling Green 9-7400
Teletype NY 1-490
'
:
#v.
ESTABLISHED 1914
;
Incorporated
■*;
SOYA CORP.
Hon, Rose STrqster
'
E. H. Rollins & Sons
40 Wall
HAnover 2-0980
Y.„5
Bell
-
Teletype NY 1-395
New York
Montreal / Toronto
WASHINGTON
Delaware Power & Light
..Jch.WHiteha!l 4-4860;;,:
Ontario Paper Co.
Noranda Mines
Members New York Security Dealers Ass'n
f
Community Gas & Power Company
;
Minnesota
idembers New Orleans
New York 4, N. Y.
.
-a
Bell Tel.—NY-1-493
FREDERIC H. HATCH i CO., INC.
Exchange d
New Orleans 12, La.
Carondelet BIdg.
41 Broad St.
Bo. 0-4432
Stock
///:/•/-
Established 1888
FARR
'/Members New
New
York
York
Coffee
&
Stock
Exchange
Sugar Exchange
-
"
MEMBERS N. Y.
.
63
Wall
SECURITY
Street, New York 5, N. Y.
DEALERS
.
;
ASSOCIATION
Bell Teletype
:NY 1-897
120
WALL
ST.,
NEW
YORK
TEL. HANOVER 2-9612
Thursday, April 4, 1946
CHRONICLE
THE COMMERCIAL & FINANCIAL
Opportunities in Latin Americaior
V.,.;
Warns, However, That "We Don't Cooperate in a Vacuum" and;
That Between Russia and Ourselves, There Must Be a Give-and-
t
;
m
i &&&
|
each shows a decline since
time when large funds
placed
were
and
in,
sometimes
have
been
have
/ There
locality for U. S. investments, for
Steady decline: of our investments
in Latin America may soon* be
reversed.
At the present time
countries.
those
on
proportion of its total
direct investments of $7 billions
in 1940 was placed there; and the
the largest
flotations
there
no
and
securities,
of
the
large amounts of funds
are
country seeking employ¬
ment. If once more they should
investors
and
present
holders of
im¬
securities must consider two
portant facts: the large amounts
already placed there by the U. S.,
and the equally large amounts of
Latin
in
investments
of
nations,
whom have been lured by
used its head.
of management has
By and large, there
has been- more of good-will than
there has been of ill^temper.
As/
to
seems
it
me
proof positive of that,' let's not
forget that all through this war in:
industry, costly though it was, it ''
ran its course with veryy very lit- ;
tie violence.
Now we are faced,
the worst is
As of
over.
the
we
moment,
look
can
forward
full
t
o >
tion
of
this
/This
has
fall:
promised .riches of the His¬
.
year.
.
tre
of
another
It Broadway, New York
4, N. Y.
WHitehall" 3-4490
.
This is on/
war.
been
diffi¬
a
Eric
A.
your
Johnston
cult
period. In
the catch phrase of the day, we've
all had a rugged time of it:
It's
been rough on reconversion; we
have lost a lot of ground on the
because it is on my own.
the mind of every
.
,
Teletype NY 1-960
.
We/
are up against a new crisis,
This '
time it is international/ not do-/ /
mestic.
In a word, it is the spec- / ■
with another kind of conflict.
produc¬
by
the
minds, I know. T know it is,;
,lt is on'
American.
The question shouts at us from 0
the headlines; wei hear it in the
the U. S.
corner drug store, asked some- ;
path to full production, but we times in anxious whispers; it is.
TJ. S. and British Investments
repeated every hour on the hour;
have learned some things.
Equal
WO ask it in our homes.
Some people were pretty free
This is the question: "Are we/
; In 1940 the amounts held by the about V
predicting an industrial
U. S. and Great Britain in Latin
going'to* have trouble with Rus¬
revolution in .this country., We
sia.?"
*
American
Securities/ were
ap-*
haven't had .any such thing. The
About Russia
J
proximately
equal—roughly
$4 American
people were torn at by
billion was placed by the investors
1 want to talk to you about Rus¬
these strikes, but they were not
of each country in direct invest¬
torn aparfcv And through all this sia. I feel obligated to do so. If /
ments and portfolio holdings. This
I 'didn't; T would be dodging an
turbulent transition period since
total does not include any govern¬
VrJ /Day /we haven't had/Wide-r Issue JE am .supposed to know,
mental undertakings, such as the
spread unemployment in spite of something about* Few Americans y
U. S. Export-Import'Bank trans¬ the
work tie-ups. Actually, right have; had iny opportunity to see ;t
actions, but applies to the private now, we have little if any unem¬ that land of mystery, ruled by y
men of mystery.
Few Americans (Continued on page 1822) 1
ployment. In fact, if things prothe
panic countries, the foremost in
the race to invest in this large
area have been Great Britain and
Crane & Hoist Corporation
by using
its head; most
of this
as
moment',
this
in
through thus far
heads. Most of labor has used.
our
But
Elsbeth E. Freudenthal
all
Shepard Niles
come
domestic strife
be costly
strikes, too.
America. Of the industrial
Corporation
in. our
They
may
British
Eisemann
We have
more
strikes.,
recent gush into Latin America, future
But
Latin America is still the favorite
forced
'
•
We may
over.
-
(after
Latin
$3 billion in 1941 were
Canada)
preponderantly
American.
it is
entirely
no't
poured into- Latin American securities in the 1929-1930 period. As
of U. S. direct invest-^
and portfolio holdings ap¬ foreign dollar bonds totaling Over
lush
through a period of widespread
We have had a war in industry, a costly war.
^ 1
1
1 1
"
'
'
gress in an orderly way, we may
have a near labor shortage by fall.
We have just been struggling
Perhaps
ments
the
;
and persistent strikes.
estimates
pear,
Says We Cannot Have Peace Without World Wide Eco¬
Weil-Being and That Iran Has Become a Symbol to America.;
Take.
nomic
It#:.
being squeezed out Of the large amounts of money
The water is
/
but Can Still ; Live Side .by Side in Peace.
Economic Systems,
>
f Area; They Are Similarly Distributed.! Miss Freudenthal Analyzes
in Detail (1) the Similarity of Interests Between U. S. and British /
Investors; (2) the Locale of Their Funds, and (3) the Propcf- ;
tionate Distribution Between Direct and Government Investments.
■
She Concludes That Further Courageous Investment in South
America Will Promote Its Domestic Enterprise, and at the Same /
•
\
A
Spectre of Another War, (
Prominent Industrialist, Who Has Seen Much of Russia, Holds
That Russians and Ourselves Are Going to Live in Two Different
/Approximately Equal, at $4 Billioh Each. ' With the Exception of//
/ American Predominance in the Mexico-Caribbean-Central America
,
/■>/;/;
Asserting That We Are Up Against the
By ELSBETH E. FREUDEN1HAI,
0
/
President, Chamber of Commerce of the United States
Statistician Points Out That Most of Our Direct Foreign Invest¬
ments Remain in Latin America.
U. S. and British Holdings Are
Time Return Handsome Dividends.
Y
By ERIC A. JOHNSTON*
U. S. and British Investment
have seen
much of Russia as
as
chance afforded me.
I went to Russia In the summer
pacific coast
of 1944 for
Fuller Houses, Inc.
'
war, ' I spent six
weeks there.
If /
traveled 10,000 miles in that vast ! ?
'
Private Wires
Direct
countries after we'd won the
our
Bought-—Sold---Quoted
"
close-up look at Rus- •
tq Russians about trade .between
Capital Stock
Hawaiian securities
a
sia's industrial plant, and to talk
♦An address by Mr. Johnston at
DEAN WITTER & CO.
members
NEW YORK STOCK EXCHANGE
HONOLULU STOCK EXCHANGE
14 WALL
FRANCISCO
*
74
STREET, NEW YORK
LOS ANGELES
•
of New York,
New./
City/March 20, 1946.
(Continued on page 1812)
York
LOS ANGELES STOCK EXCHANGE
'
Telephone BArclay 7-4300
SAN
dinner of the Purchasing Agents /
Association
ESTABLISHED. 1914
SAN FRANCISCO'STOCK EXCHANGE
v'
a
HoiiRsseSTrssier
♦
.
>
'
BOwling Green 9-74Q0
HONOLULU
'
Trinity Place, New York 6, N. Y.
Telephone:
Teletypes:
NY 1-375 & NY 1-2751
t
Philippine Mining Stocks
For Dealers
A
Atok
Quality Stock timely for participation in
Getchell Mines
Chicago and
Southern Airlines, Inc,
Railway Equipment Demand
Master Tire &
Magor Car Corporation
Management Excellent
—-
Dividend
Record Consistent
Airlines, Inc.
Descriptive circular
upon
Big Wedge Gold
Mindanao Mother Lode
United Public Utility
Common
All American Aviation
*'
"
•
Benguef Cons* Mines
Rubber
Continental
•
Balatoc Mining
>
?V'\
/' '■* 4
.Quotations and information
«/S
*
•
4
„j,
V'
Furnished 6n Request
request.
Bought—Sold—Quoted
Blair F.
"
"
BURNHAM& COMPANY
Claybaugh & Co.
Members Philadelphia Stock Exchange
members New York Stock
'
N.Y/*
72 WALL ST., NEW YORK 5,
WHITEHALL 3-0550
Tele. NY 1-2178
Harrisburg-Pittsburgh-Syracuse-Miami
*
1 McDonnell aircraft
Beach
-
corp.
Manufacturers of Airplanes and Helicopters /
11/
,
^
Designer and Builder of Navy's first "Pure all-Jet"
Powered
-
Fighter Plane
Exchange
Exchange
associate members N.Y.Curb
JOHN J. O'KANE JR. & CO
HARRISON & SCHULTZ
■}
15 Broad Street, New York 5, JY. Y.
telephone: HAnover 2-6388
64 Wall St., New York 5
Phone HAnover 2-7872
;
?/•••• i
/ /
MEMORANDUM ON REQUEST
Patlie
,
Bridge
?•
'
Broadway,* New York
Teletype tyY 1-1525
Benguet Cons. Mines
District
theatres Corp.
!;i;«;'s;:Higgins;||
American Insulator
•
Industries;1'
Common & Preferred
1922
:'Eliminator'^
•
"'"/'■■v /'/
42
DIgby 4-6320
*
Carbon Monoxide
Crescent Pub. Serv.
Detroit Int.
/
Tele, NY 1-621
Baker Raulang
Brockway Motors
:
Established
Members N. Y. Security Dealers Ass'n
Preferred
&
^Pubiicker Industries
Common
:
;
American Beverage
*Prospectus
V
on
Request
;
Preferred
F. H. KOLLER &
CO., Inc.
Members N. Y. Security Dealers Ass'n
111
Members N-ew York Security Dealers Assn,
BROADWAY, NEW YORK 6, N. Y.
BArclay 7-0570
P. J. Steindler & Co.
NY 1-1026
11
Broadway, New York 4
Digby 4-0330
NY
1-1340
S. Weinberg & Co.
PETER BARKEN
32 Broadway,
New York 4, N.Y.
Tel. WHitehall 4-6430
Teie. NY 1-2500
Members N. Y.
60
Security Dealers Ass'n
Wall Street
New York 5
Bell
Teletype
Telephone
Whitehall 3-7830
NY
1-2763
Volume .163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
Courts & Co. Adds
Who Will Head World Bank?
Maddox,; Hefner
By HERBERT M. BRATTER
Maddox
"
H~ Boss
t
G6v?inmeitt Coopeiation
With Small Business
Captain, ' A.
'
,
ated
,
.
iSiB
;
,
with
firm
in
reported
Mr.
•
And Fund Set Ufi
Lewis
Douglas as
President of
Meeting of Executive Directors of Both institutions Set foir May 6 !
and; 7 Respectively. List of Executive Directors and Governors. :
Interna¬
the
tional
Bank
for Bee
struction
Staff Pooling Under Discussion.
on-
d I
WASHINGTON, April 3--The first. meetings of the executive
Development directors of the Fund and Bank Will"be held-in Washington on
May
a n
job which 6 apd 7, respectively. The reason &•
is to pay $30,- for the different dates seems to be Thor Thors. Iceland———————.v- '
26b
H. LeGallais, Luxembourg.
000 a year af- that M.
350
Gutt, the Belgian execuM. Frere, Belgium^——2,500
ter, taxes, and tive director of the
Fund, is also F. A.,
a
with addition-
al
Paz,
his country's executive director of
allowance the Bank.
'• [
^
Herbert M. Bratter
for
*
entertain-1
ment and sim-
*
Bar
:
t
dislikes Douglas' c on nections
"with big business and Wall Street
*finance, his tie-ins with internat tional
financiers, and his general
point
v
of
f
the
be
held in
the
State
Executive
directors
commence: as
...
Department
"'1'
.1818 H Street; N-. W,
'
annex at
»
.
G.
a
March 29.
i
*
.
*'
'
'
.
.
As
I:
cabinet post in
huff there
a
was
some
speculation that he might
President of the World
Now Morgenthau's public
protest i against
Douglas,
even
G,, K. Blowers, Ethiopia—,—
.»
executive
has
Fund-^-Koo:
General of
directors^
appointed:
Yee-Chun,
For
-
What Mr. Morgenthau is after
,
may not be clear, but he seems to
■be after
something.
In recent
*
.
Harry P. White__
Koc
J.
Go v-t-
Feltus, who had been brought to
:lhe Treasury as Assistant to the
Secretary
by
Mr.
during the
war
to advise him
Morgenthau
Pierre
ment
very
had
prospective public relations
Louis
client in
hurriedly because he
New York who couldn't
(Continued
1824)
on page
J. '
Caceresv
Honduras—.4
H. -de
Africa
Kock,
—.
■
v
1,250
——
Kyriakos * 'Varvaressos—•
^.Greece
Mr. Ole:
Colbjornsen.—_4——---^-Norway
Victor Moller_.——_4_—.....Chile
Mr,
Mr. J. W. Bey en—
..Netherlands
.'Mr, R. B. Bryce_.._——_..i..Canada
Dr.- Leon Bara^skL——
Poland
r
Meetings to Be Executive
It
the
-
true
danger
**"1
-*
^
/■. '
'•
4
•
1
'
-
r'
^
Country
^
■
v*•:?*•"•#**?<
Vot'BA
'
M.
that
economic
decisions
a
situa¬
is:
"That
should be made
be,
decisions de¬
termining
the
of mil-
lio'ns upon
millions
of
Ameri
tend
I
be
by
men
c e n
a
it
think
be truly
can
enterprise of the many.
a
is
business
your
in a
tr
as
Keynes, United Kingdom.
doors^ At Savannah only a few!
of the • sessions of the 'governors
said that
Although
comparatively
free, you should work for the
1
spots. This
vival and growth
concentration
tive
enterprise in all fields. Before
I
economic
of
♦From
an address by Mr. Rey¬
if un¬
George M. Reynolds nolds before the National Restau¬
checked, could
rant ■ Association,
finally give us
Chicago,
111.,
a private Planned Economy just
J March 26,1948
as tyrannical as any public* Plan
(Continued on page 1820)
power,
TRADING
MARKETS
1
Arkansas-Missouri Pr,^Cb,
■
IN
Michigan Public Service
Black Hills Rower & Light
Missouri Utilities
Central Arizona Lt. & Pwr.
Mountain
Centra) Illinois Ele& & Gas
t
Public Service C(r. of Indiana
States Power
Derby Gas & Electric
Sioux City
Empire District Electric
Southern Colorado Power
Southwestern Elec. Service *
Federal Water & Gas
Gulf Public Service*
Southwestern Public Service
,
Iowa Public Service
*Prospectus
Gas & Electric*
Western
available
Light & Telephone
dealers
to
bankers
&
only
G. A. Saxton & Co.,
70 Pine
Inc.
Street, New York, 5js N. Y.
WHitehall 4-4970
Teletype NY 1-609
were opened to
press.
This was a cause of
dissatisfaction with several of the
(Continued
13,250
L. A. DARLING CO.
1824)
on page
One Company in Four Growth Fields
OUR REVISED DIRECTORY OF STOCKS
TRADED ON
COAST
EXCHANGES JS
ISSUES
Arden Farms
TRADED
ON
TRADED ON
OR THE
'v.'.''
-
Company
v
THE
*0,
v
•
.
1
•
.
..
.
r
'
i:0y.
r
•
'
^
(
Analysis
^
^.0:
•
.
-
PACIFIC
Display Fixtures
219
Precision Castings
Plastics
ARE
ARE
Grey Iron Castings
ALSO
STOCK EXCHANGE
""
v-. v
Analysis For. Dealers Only On Request
A COPY WILL BE MAILED UPON REQUEST
'
SAN
STOCK
■Z o PINE STREET.
0
EXCHANGE
RUS5
NEW YORK S
Moreland & Co.
•
LOS
ANQELES
BUILDING
'
MEMBER
OUKB-KXCHANBC'
STOCK
SPOKANE
EXCHANGE
B
Creek
Bay City,'XAnsing '
request
•*
STOCK
DETROIT 26
PAULSEN BUILDING
SAN FRAlslDISCa4
DETROIT
1051 PENOBSCOT BUILDING
EXCHANGE
Battle
on
■
t
'MEW-YOWIC;-BTO'cic,,.EXni^aN8Pt';-^.:iSf'BWtyOAK
FRANCISCO
''' '
v
CURB EXCHANGE.
Kaiser sl Co.
■MEM8CltS
V
•
'» >' '%'■
•;
•';*£ ''y
'
.
VORK
'1_ -M:
'
BOUGHT—SOLD^QUQTED
Oi
■•:
NEW
THERE
EXCHANGES THAT
NEW YORK
•,.
■
V-
NOW XVAltABLEi
THESE
.Muskegon
■'
I
:
Steep; Rock Iron Mines; Ltd. <
•
,
New York Hanseatic
Bulolo Gold Dredging, Ltd. 1
WE ANNOUNCE THE
I
REMOVAL OF OUR OFFICES TO
Los Angeles Mortgage Loan Agency
"
Corporation
»
Clayton Silver Mines
"
| \{
.QUARTERS AT
■
NEW YORK 5, NEW YORK
MAHER & HULSEBOSCH
Brokers
.4' ;.;,,
'Phone: BArclay 7-5660
Teletype: NY 1-584
Angeles mortgage
ment,
Established 1920
120 BROADWAY
Los
NEW AND ENLARGED
Bought—Sold—Quoted
;
In
&
■
4-2422
Branch
113
Securities
Hudson
•'••<
New York 5, N. Y,
Telephone
WHitehall
'•
'
729 S.W. ALDER
-
•
•
1-2613
St., Jersey City,
DAU6HERTY, COLE & CO.
Atwater 0233
Teletype PD 142
N. J.
to
-
company
immediately
company
with
produce
loan correspondent.
in New York April
Teletype
NY
Office
able
729 S.W. Alder
Portland 5, Oregon
proven
profitable
of FIIA and other loans, desires contract
Dealers
Investment
62 William St.
V
sur¬
of free competi¬
the
.
possi¬
the restaurant business up to now
is free enterprise because it is the
c a n s
to
made
much
as
ble, not by handfuls of men but
by multitudes of men. * True free
enterprise cannot survive except
as
the enterprise of the many."
economic des¬
tinies
as
of Fund and Bank
Vinson, United States
—-27,500
K. Yui; China—^ 5,750
Deshmukh, India--.,——
—4,250
P. Mendes-France, France
4,750
C.
1
much as possible, not con-*
centrated but diffused. V They
Such
tion
requires
of
.
^
'»t •'* '*'•
is. fully
expected that the
meetings of the - executive di¬
rectors wilt be held behind closed
—^Mexico
'
'
I V'l
»
Canad^
Gomez„
f
that
' 270
3,000
Sduth:
Dr. Luis Machado Y Grt^ga—-4——;_Cuba
Mr. Camille Gutt.—.
—.—Belgium
J.Bruina-,-—-^_^-^l:-NetherlandI
Governor and'Contributing
!
Lord
of
the Bank
■G^'W.
Fred
Union
Elected Executivef Directors of i
;
.——-.Czechoslovakia
Ahmed Zaki Bey Saad
Egypt
••
»7
H
300
i
Mladek—
I,
1
l1'.*
—750
^---^.i-Belgium
Gutt
Eodrigo
Republic..
A.M.. de Jong, Netherlands—.—
-United Kingdom
Executive Directors of
Basminsky—
V.
27$
30Q
Prof
Francisco Alvea dos SantosrFilho——Brazil
J.
400
" *500
650
Sacasa,. Nicaragua.-.^..!;
270
A. Espinosa Monteros,
MexicQ._4_.__ .1.156
______India
O.
f ]
Calzada. Dominican
Emilia. Toro, Colombia..
|
Fund
Camille
j
1
G.; B.
_»„-.C-trnited States
Joshi—
(Not available)-—
■
a
Jose
Mendes-Prance-.u—^—^^^.-France
; Elected
on
public relations, quit the Govern¬
,J ' /,
Common-
M. N. Morales, Guatamala.
300
J; E.- Meyer, Cuba—Z,
—1——_1750
Yee-Chun_„„,___._____-_._.;_^LChin^
Vishwanath
.
-months he has frequently inter¬
sected himself into various public
.Questions.
He
employs a ghost
writer.
Following the Savannah
meeting of the Fund and Bank
Governors, Mr. J. H. Bandolph
Fund
.
330
,
Appointed Executive Directors of
0
Morgenthau's Motives
Philippine
Zolotas,. Greece.——————
H.. D. Castro; El
Salvador-——;—^-.
Pena Morua, Costa Rlca.
Mr
*
Foley,
X.
erhing Board and former Minister
of Finance; For the Bank—Shen
Lai-ching.
The most complete list of Ex4
-though the reports of the latter's
consideration for the job have yet ecutiVe Directors--4)ut not Alters
Tto be confirmed, is interpreted by nates—of Fund and Bank'obtain-'
;Some as
indicating that Morgen-^ able to date is as follows;
?;
;
310
—,
Taghl Nassr; Iran—
■be made
^thau himself is pfter the job.
1,500
•
700
'
During the war the concentration of economic power was high¬
lighted by the fact that 56 corporations held 75% of our war contracts.
Secretary
P'<:
Wallace states
ned Economy.
Economic freedom
few
wealth
thd
Secretary^
the Four-Bank
—;
"
few
GailanL Iraq——v——
Joseph
'Bank.
'
M.
»
,850
1,500
Yugoslavia—
Pazzman,
Czechoslovakia.—
Drozniak, Poland.-.
Ahmed Z. &: saad, Egypt-————
a Definite Relation Between
High Wages and Gen¬
Prosperity, and a Depression Caused by a Drop in
Wages Will Work Peculiar Hardship on Small Business. Says Busi¬
nessmen Must Take the Initiative in
Expanding Our Economy, but
Acknowledges That Satisfactory Profits and Rewards for Venture
-Capital Are Essential. Outlines Commerce Department's Program ;
to Help Small Business.
*
'.A..'
3,250
;
E.
A;
its
When Mr. Morgenthau quit his China
\
Dolinsek,
Towers, Canada....i
Julius
f
1
was
F.
L.
salaries
of the "date of the
view," the
350
Francisco
Alves
dos
Santos-Filho,
I'
Brazil „L
1,750
Hugo Garcia^ Uruguay-i'——i<_iL-—
400
A. Maschke, Chile
^
^ 750
Emilio BarJeto, Peru
"
—,,
500
Gunnar Jahm Norway
l.L.L—^
750
Washington
Washington first meeting.
reports.
Mr. Morgenthau '■$0y
f if
•$ 0/
White House visitor on
Chiha's Appointees
•Tost"
$
The- Fund meeting will take
J place in
Hotel.
Morgenthau (The Bank ineetihg probably Will
Mr
expenses.
Bolivia—.
J. Vallarino, Panama
25b
Ruben Benites, paraguay^LLuw^--— ' 270
E. F. Carbo, Ecuador..300
3.
.
Department
eral Business
consideration
of
Few Hands, Commerce
a
Insists There Is
|
Roster of World Bank
disapproval of
.
Official Contends That if Monopoly of Economic Power Did Not
Exist There Would Be Less Demand for Regulation of Business.
Both Mr. Maddox and Mr. Hefner
-
j.
Repeating Secretary Wallace's Assertion That There Is Concentra¬
Gadsden.
served in the South Pacific.
Assistant to the Secretary of Commerce
tion of American Business in
has become associ¬
the
'
By GEORGE M. REYNOLDS*
Hefner, * formerly with
the A, U. S.,
,
the
■
Joseph .*', J.
members of the New York Stock
——
+
formerly
Exchange.,
.
last week
to Staff
—-
Street,
WASHINGTON, D. C., April 3.—Former Secretary Henry, Morgenthau, Jr., in letters to the President and Secretary of the Treasury
—:
GA.
U. S. has become associated with
Courts & Co., 11 Marietta
Monetary Fund. Discusses Motives of
Ex-Secretary of Treasury, Henry Morgenthau^ Jr., in Reported Oppo¬
sition to Douglas Appointment, as Well as. the Grounds for
the 8
American Support and the British Opposition to
Payment of Pro¬
posed High Salaries to the Bank and Fund Officials.
son
ATLANTA,
&
Mr. Bratter .Comments Regarding the
Proposed Appointment of
Lewis Douglas as Head of World Bank and of
Harry White as
Executive of International
;VvV'5.::;-Fred m. Vin-S>——
1787
as
manage¬
volume
life insurance
Managing officer will be
10 to 17, Chicago April 19 and 20,
for personal Interview.
Address Wilshire Service
Cor¬
poration, 461 So. Western Ave., Los Angeles 5, Califor¬
nia,
or
Walter D. Smyth, the Plaza, Fifth Ave. at 59th
St., New York 19, N. Y.
~
THE COMMERCIAL & FINANCIAL
1788
CHRONICLE
£
"
Bank for International Settlements Vinson Defends
Problem of Its Future, Now That the Bank for Reconstruction and
Development Has Been Organized, Is Discussed. ' Dr. White Opposed
Its Incorporation Into World, Bank. ,
Now that the World Bank for
Low Rates
In Annual Report to
Reconstruction and Development
question naturally presents itself: What can be
salvaged from the Bank for In-^
the International Bank for Recon¬
ternational Settlements in Basle? 11
The Bank for International Set¬ struction ' and Development has
tlements, which is still in exist¬ now been set up without refer¬
is in actual being, the
Basle, is a central
in
ence
bank¬
adoption of
er's Bank." Before the
the Bretton Woods program, sug¬
in¬
gestions had been made that
stead of creating a new
institution,
Settle¬
the Bank-for International
foundation for
development
ment be made the
reconstruction >" and
loans.
suggestion, however,
This
vigorously opposed by Dr.
Harry White- of the Treasury De¬
was
partment and others. As a result,
Congress, He
Policy Will
Contends Low Interest
Make
an
With
National Income Maintained
Excellent Earnings Outlook for Utilities
'
Based
on
periods
with
comparisons
a
year
earlier,
-
current
Important Contribution to Utility earnings figures appear likely to make favorable or even
Achieving Full Production. Holds startling comparisons, due almost entirely to tax changes. For ex¬
,
National Debt Will Not Be
a
Bur¬
ample,
the figures for all
month of December,
Class A and B electric utilities for the
published recently by the Federal Power Com¬
mission, made a remarkable showing. Net income- for the month
Progressive Per¬ gained almost 39 % over the pre-if.7
sonal Income Tax Should Be Cor¬ vious December, and the calendar plentiful water supply for hydro¬
be able to contribute something to
electric operations. - While some
the new institution. In addition to nerstone of Our Revenue System. year was 3% over 1944. This was
despite the fact that KWH sales areas are- now reflecting near
the experience which the BIS has
.'Secretary of the Treasury Fred to
industrial
consumers
were
drought conditions, the country
given to the central bankers who M.
Vinson, in his annual report for down 18% for the month of De¬ as a whole is still in good shape.
participated in its work over the the fiscal
year 1945 to Congiess cember and 6% for the calendar Should
this
condition
change,
years, the BIS has a small but
on
the
State
of the
Finances, year. Despite the loss of this war. however,;; fuel costs will again
very good staff, of economists as
upholds the present policy of low business (which was probably un¬ rise. The present coal strike will
well as a library and files.
interest rates, and asserts the pol¬ profitable,* though nobody seems doubtless raise the price of
coal,
For information on the history
icy will continue in the postwar to have realized this) operating although the utilities are partially
and
work
of
the
BIS,
the
period. His statement as to the revenues gained
4 % - for
the protected by contracts and fuel
"Chronicle's" reporter turned to
Admhiistration's policy on inter¬ month and 2% for the year; de¬ clauses in their rate structures;
one of the delegates of the Savan¬
est
rates, comprising; in large spite lack of new appliances and
nah meeting who is well informed
Wage adj ustments may soon be¬
part ah excerpt from President new
houses,
residential
KWH gin to show up in the earnings
on
the subject.
As a result of
Truman's Budget Message, is. as sales gained nearly 14% and com¬ statements.
For the month of
this inquiry, the following infor¬
follows:
'.
mercial 9,%; in December, and 9% December there was a
mation is presented:
'
gain of
"The President, in his Message and 6% respectively for the year. 14%
over
the
previous period
"The
Bank
for
International
on
the State of the Union and ; When appliances and new homes compared with
only 4 % for the
Settlements in Basle Was created
Transmitting the Budget for. the enter the picture this rate of calendar year; this reflects both
in connection: with the so-called
fiscal year lending June 30, 1947, gain "may be accelerated.
wage increases and increased em¬
Young Plan for German Repara¬
said:
Most of December's big gain, ployment (returning service men
tions.; Its task was to administer
'Although the public debt is resulted' from year-end tax ad¬ or-others); Tt seems likely that
reparation payments and act as
the amount of this increase might
trustee for the Reparation loans expected to decline, a substantial justments. The utilities had been.
volume of refinancing will be re- over-conservative
in the
early. get up to 18 or 20% by the mid¬
(Young loans). The constitution
dle of 1946. Fortunately, the labor
of its board reflects this. The cen¬ required, because of the/ large part of the year and found their
of
maturing
obliga¬ tax bills weren't as bad as they bill isn't^particularly/h^avy* just
tral banks of those countries in*? volume
feared.
Also they were able to about equaling net income.
The
terested in reparations as ■ credi¬ tions.
tors and as debtor hold the ex'The interest policies followed make huge charge-offs of pre¬ big tax savings seem ample to
on
called
bonds
(last take care of all increased wage
officio seats on the board and in the refinancing operations will miums
and fuel costs, with something to
their
countries hold a
certain have a major impact not only on year's refunding was extremely
number of other seats.
From the the provision for interest pay¬ heavy) and this resulted in big spare.
The big question-mark is, of
start, however, the Bank was also ments in the future budgets, but savings in excess profits taxes.
meant to act as a center of con¬ also on the level of interest rate^ Miscellaneous income also showed course, the amount of rate cuts
which may be ordered by the
sultation for the central banks of prevailing in private financing. a big jump (some of this was also
State Commissions or announced
the member countries, including The average rate of interest on accounted for by tax changes for
countries not interested in rep¬ the debt is now a little under 2%. other utility services such as gas, "voluntarily" by the companies.
to the BIS.
ence
Even so,
i
den and That the
however, the BIS may
.
Baltimore
Bayway Terminal
Emerspii Drug
Common.
■
-
.
Monumental Radio
Noxzema Chemical
Union Trust Company
of
"
Maryland
STEIN BROS. & BOYCE
& Baltimore Stock
Members New York
Exchanges and other leading exchanges
6
S.
CALVERT
Bell
-
ST., BALTIMORE 2
Teletype BA 393
New York Telephone Rector
2-3327
.
.
"
..
-
WALTHAM
arations, and to do banking trans¬
actions for those central banks.
WATCH
(Continued on page 1825)
DETROIT
CO.
Low interest rates
will be an im¬
portant force in promoting the
full production and full employ¬
ment; in the; postwar period for
which we are all striving.
Close
wartime Cooperation between the
TreasuryDepartment and the
Manufacturing Corp/
Available
Reports furnished on request
was
Department has
policy of low interest
"The Treasury
followed
a
during the war, and that
policy will continue in the post¬
war period.
I believe that this
policy will make an important
rates
k
du Pont, Homsey
Co.
Mercier, McDowell
& Dolphyn
Members Detroit Stock Exchange
STREET
Buhl Bldg*, Detroit 26
Cadillac 5752
Tele. DE 507
BOSTON 9, MASS.
HANcock 8200
Teletype BS 424
CAnal
N. Y. Telephone
contribution
the
to
achievement
of full
production in the economy,
especiallv after the b«w1rlAC? of
(Continued on page 1825)
st. louis
Boston
Edison
\
New England Lime Common
;
there will
RR.
Submarine
be
(in effect)
fear
been
able
justments
plant
seldom
as
operation.
been
so
cuts.
/
Two
Conv. Preferred
Common
are
the
Among
taken
care
of.
companies
which
tax savings tout witnoui at¬
tempting to adjust for rate cuts)
are
Central
Arizona
Light &
Power; Central Illinois-Electric &
(Continued on page 1821)
tor
Rainfall
in 1945, resulting in
Delaware Power & Light
Signal
Common
Federal Water & Gas
'Common
*
INVESTMENT SECURITIES
509 OLI VE
Common
white, noble & co.
^
Members Detroit Stock Exchange
/////■■?
Members St. Louis Stock
BOUGHT
■
/
i
—
it
SOLD
«» '
'
"*
—
QUOTED
f > *
■'
'
••
S.v.i'
ESTABLISHED
Teletype GR 184
1879
utica. n.y.
des moines
louisville
WHEELOCK & CUMMINS
Oneida Ltd.
American Air Filter
INCORPORATED
American Turf Ass'n
V:
Utica & Mohawk
Preferred
:
United Light & Railways Co.
Preferreds
;r
:
.Cotton
Merchants Distilling Co.
•
Louisville
'
Grocery;
Common
™E BANKERS BOND sE
Incorporated
BUILDING
FOUITABLE
DES
MOINES
Phone 4-7159
9,
IOWA
1st
Floor, Kentucky Home Life Bldg.
*
Bell Tele. DM 184
Central Ohio Light &
Pr. common
Central Public Utilities 5V2S 1952
'v
INQUIRIES INVITED
; :"
Portland Electric Power 6s 1950
MOHAWK VALLEY
Sioux City Gas & Electric Co.
and
Mills,/ Inc.
Crescent Public Service common
New Stock When Issued
Gas Pref.
Winn & Lovett
i
Preferred
Common
Girdler Corporation
Iowa Power & Light Co.//
LOUISVILLE 2,
Long Distance 238-9
t
KENTUCKY
Bell Tele. LS 186
7
»„>
Paine, Webber, Jackson & Curtis
MICH, TRUST BLDG.
Phone 94336
//£
,
Exchange
GRAND RAPIDS 2
Vork Telephone
REctor 2-5035
v"
Public Service of Indiana
STREET
Inquiries Invited "
Street, Boston 10
Preferred
be
to he most reoshn^blv triced;
in relation to earnings adjusted;
untiformly
Stix&Go,
Common
Dayton Haigney & Company
•
these
of
seem
(along with the heavy war load)
much of their expensive standby
has
rate
expected to follow after rate ad¬
eliminate
to
of
dividend rates and others may
favorable position with re¬
spect to fuel costs, because they
have
other
with
compared
companies, Public Service of New
Jersey ana Public Service of In¬
diana, have already raised their
55%
a
as
utility stocks, perhaps because of
very
ST.LOUIS IMOI
Private New
prices,
saving in excess profits taxes and
5% saving in income taxes. The
utilities will also continue in a
generous
Old Colony RR.
75 Federal
to
gain
year ;were probably accrued at
too high a rate, and (2) this year
Aeronca Aircraft
Common
Haven
close to
Companies which are expected
enjoy a substantial gain in
earnings due to tax savings are
still selling at very reasonable
and fixed
taxes
month's total
$18,000,000.
the
MARKETS
Megowan-Educator Food Co.
New
reduced
the
steam
6-8100
crand rapids
TRADING
and
The first few months of 1946
pensive war in history at
and
stable rates of interest. This co¬ should also make a very good
operation will continue.'
comparison because (1) taxes last
Shelter
Descriptive Circular
MILK
larger returns from other services
charges,
Electromaster, Inc.
31
water, ice, etc.) On the basis of Thus far cuts have not been dan¬
operating results alone, the util¬ gerously heavy, and the utilities
ities bettered the showing of De¬ usually regain much of the lost
cember 1944 by only about $2,- revenues (in time) through larger
,
000,000, but after figuring in the sales per family,
INVESTING COMPANY "I
:
,
...V/,
INC.
238 Genesee St.,
Tel. 4-3195-6-7
Utica 2, N. Y.
Tele. UT 16
Gilbert J. Posti.ey &
29 BROADWAY,
Direct
Co.
NEW YORK 6, N. Y./ r
Wite to Chicago
.
>
...
,
Volume
163
Number 4478
THE COMMERCIAL &
FINANCIAL CHRONICLE
Long Period ol High Taxes: Garland
President of IBA
Says Heavy Taxes Essential to a Balanced Budget,
But Sees Need of Intelligent, Equitable and Comprehensive Tax
Program to Replace Present Hodgepodge.-. Criticizes Low- Interest;
Rate Policy as Encouraging Inflation and Promises IBA. Aid. in
;
f
/
Small Business
Financing.
Charles S.
ciation, who
Garland, President of the Investment Bankers Asso¬
is making a tour of speechmaking, addressed the Invest¬
ment Bankers^
of
Kansas
City
on March
24 in which he
stressed
need
Federal taxes."
*
•
Mr. Garland mentioned
a
sub¬
as
balanced Fed¬
jects calling for immediate atten¬
eral
tion by the Association:
budget as
a
prerequisite
;to
a
sound
STk.
-
He
economy.
asserted
to
it
need
would
political
to
keep taxes at
courage
high
level
for
years
to
come, but he
pointed out
a
Charles
S.
Garland
the
desirabil¬
ity of revamping the tax structure,
r;
debt and its relation to the forces
that
accomplish
this
Management of the Government
of inflation.
"The Investment Bankers Asso¬
The
intelligent, equitable and
an
comprehensive tax program to
re¬
Federal
budget
Encouragement of
ness enterprises.
and
tax
small
busi¬
personnel for,
the investment busihess.
new
"Management
debt
is
of
of
one
already
is
the
the
Federal
most
serious
and
complex problems of
day," he told his audience.
the
over
plentiful
-
Augustus Slater Joins
Joins Smith, Moore Co. Gross, Van Court Co.
when goods are scarce.
of ' the
nation's
and
Manage¬
(Special
lowering of interest
ernment securities
Olive
ciated
a
on
Gov¬
source
of
"Not only should interest rates
stabilized on Government se¬
Louis.
tional
purchases
mean so
being
much
by
more
pumped
his
non-
the
fore
that
so
we
retail
on.
get
may
shelves
to meet the
firm. in St.
'
-
from active
duty, has
with
Bogardus, Frost & Ban¬
ning, 629 South Spring St.,
bers
of
New
the
York
past Mr. Crawford
Morgan &
.anaugh,
re^
was
of
manager
department
the
the
of
In the
with Cav-
the
Wm. Pollock Visits Coast
the
he
State
Wm.
Monetary Division
&
Co.,
S.
Inc., 20
Government,
municipal
State
left
bonds,
March 30th with his
on
family for
a
two to three months trip to Holly¬
the
wood, California.
of the Office of
Liquidations
Pollock
U.
in
ers
and
Department,
to
E.
Pine Street, New York City, deal¬
office
attached
was
wood,
Commis¬
Pollock
will
stay
at 2401
Vermont.
Announcement is made
I
"•
V.
•
,
.
V
<\
is
(Member
of
of the New York Stock
will
admit
Milton
leading exchanges
:
NEW YORK
North
SCHENLEY DISTILLERS
;.
/v Research
V
v'
'
x-'
•
"•••:
' ■ '
•"...
We
Laurels
Association
of
Securities Dealers,
By MARK MERIT
y:y>Syy:0y^; ri Y0
"/y.: I
Inc.)
II
/
l|l|
This recorder
pleased to
are
'
SIDNEY
f/;. 'ks
;
is
human interest story.
latest occasion,
Western
a
All, America, is interested today,
more than ever, in
observing meas- '
ures that provide
safety for work¬
ers for
pedestrians, for all activities
announce that
,
!
-
'%*
now
f
^
^" • •
associated
-• <
with
dynamic movement of American
J
H| FISCHER
life results in
some
frightening figures
••
U<
\>
occasional,
increasing:
on
,
accidents. And there is
us
no
substi¬
tute for Constant
vigilance for the
prevention of crippling and fatal
Development Corporation
So it
that
\
.
gratifying to learn "
of Schenley's affiliated'
was very
one
companies-r-The New Bngland"
Distilling.Co., of Covington, Ken¬
tucky, has just received further
v.
j|Clark, Dodge
April 1,1946
This
few days ago,
exception.
^
This, then, is a piece about safety.
.1
d
' f)
our
was no
Manager of the Trading Department
as
■■■'.
visits
never
company's production offices in
Cincinnati, that he doesn't discover
inside and outside the home. The
our
'
CORPORATION
\ £ .v
III?'Iv Ill^'lll'll?''
Department
'''T'w,; ->f i
and
NOTE-^Erom time to tinte, in this space;
'
$ V
*{<
INVESTMENT SECURITIES
brown, Jr.
associated with
Exchange,.
Roth
Jerome Baumann to
partnership
in the firm as of April 12th.
Development-Corporation
National
pleasure in announcing that
now
:
Jacobs •& Low, 40
Exchange
Place, New York City, members
accidents.
J '"
■'
'
-
/"I.
T
Western
1865
-
'
STREET, NEW YORK
^Edmund
•
of
the formation of
(formerly with Strauss Bros.)
We take
analysis
...
•
SCHENLEY DISTILLERS CORP.:
Established 184$
•
security
'
/-•
hope will be of interest to our fellow
Americans. Thin is number 120 of a series.
Clark, Dodge & Co.
•
and
Mr.
charge of the*
we
BOwlIng Green 9-2180
'
in
Jacobs & Low to Admit
some
•.
Los
Exchange.
be
,
Spring
the
there will appear an advertisement which
120 Wall Street, New York 5, N. Y.
61 WALL
-
of
While in Holly¬
much earned rest, Mr.
on a
:
'
■
will
-.
William E. Pollock, President of
Secretary of the Navy, and
to
Slater
Stock
•
Navy, Mr. Cor¬
assigned to
-v,
ONE WALL STREET
as
South
members
activities.
Dur¬
was
Street,
639
research
New
York office, 120,
Broadway.
Company,
Angeles
Co., Inc.,
economist.
buying
Slater
A.
Los
re¬
firm's
'■-iT'
ESTABLISHED
mem¬
and
Angeles Stock Exchanges.
Charles C. Cornish, Lieutenant*
Commander, U.S.N.R., recently
Chroniclk)
C. Crawford has become affiliat¬
Cornish Heads Depl. of
Olis Co. in N. Y.
firm.
Members New York Stock
Exchange and other
■■■
& Co.
laurels
1
on
its
plant safety record.
This plant hiss gone without a single
lost-time accident for three and a half I
NATHAN Z. GREENHOUSE
years.
stsl
flSlSi II
& Co
Announce the Formation of
Members New York Stock Exchange
Members New York Curb Exchange [Assoc.)
particularly noteworthy since the plant operated
around the clock, twenty-four
hours a day, seven days a week,
poration to Conduct
a
Michigan Cor¬
a
the removal of their offices
to
dent-less period. '
Besides
Bonds Under the Firm Name of
*
"is
''
r
;*
'
•'*'<.
.
r
t
•"
;.
1N«-
,.
_
1
'r
•,
J
f
^
f, x
k ''
J.''
CHARLES E. BAILEY & COMPANY
<
*
/
Members Detroit Stock Exchange
1166 Penobscot
Bldg.,
Detroit 26, Michigan
-
;
-
i i
•
Tel.
tj'
providing this recorder
$
something to boast about,
this single plant furnishes inspira- I
tion and an example for all of our
other diversified
operations.
J
Salute t
(
■
HANOVER 2-6500
•
with
Specializing in Michigan Securities
•.
v
producing alcohol for war purposes,
during a great portion of this' acci¬
General Investment
Banking Business Dealing in Stocks and
announce
4
This record is
CHARLES E. BAILEY
Townsend, Graff
&
Nayai Re¬
day been admitted
our
Court
fuOS ANGELES, CALIF.—Loyal
ed
v
-•
investment
own
(Special to Ths Financial
more
public demand."
Foreign
General Partner in
Gross, Van
Loyal Crawford With
Bogardus Frost Firm
"Speeding up the production at
this time is needed as never
be¬
sioner.
as a
with
banks
deposit money
the already
into
swollen stream of credit.
where
Major, A. U.S.
ciated
509
In the past he was with G.
Walker & Co. and conducted
serve.v
securities into the hands of
of the
JOHN DABNEY PENICK
and has this
Moore,
banking investors, because addi¬
also
has returned from active
service,
Smith,
St.,
H.
nish
;
with
Commander in the
as
deter¬
a
ing his service of approximately
pleasure in announcing that
LOS
ANGELES,
CALIF. —
Augustus Slater has become asso¬
r
members of the St.
Louis Stock Exchange.
Mr. Ha¬
verstick was recently discharged
be
curities," he stated, "but
Chronicle)
;: ST.
flation.
four years in the
tWc take
Financial
ship to the driving forces of in¬
leased
constant
rates
as
The
LOUIS, MO.—Edward E.
Haverstick. Jr., has become asso¬
become
the
on
to
debt
and
concomitant of money rates,
he
explained, should be under¬
taken in the light of its relation¬
the
joined Otis & Co., Incorporated, to
Interest Rates
Commenting
E. E. Haversfick, Jr.
time when money
a
ment
goods
World finance and participation
of the United States in the inter¬
national bank and monetary fund.
Training of
and credit at
,
program.
ciation," he said, "soon hopes to
join other organizations in prepar¬
ing
r
'
"
he said it is caus¬
ing further, expansion of money
mined effort should be made to
put the maximum of Government
•v.-
The IBA Program
the
for
-
place the present hodgepodge of
great danger,
.——c...
,
RAndolph 9000
Teletype No. DE 184 r
FREE—Send
OF
Dept.
N.
a
..
^
Y.,
18A,
350
and
containing
A
postcard to MARK ]MERIT
SCHENLEY
you
DISTILLERS
Fifth
will
reprints
of
receive
earlier
CORP.,
N.
Avenue,
a
articles
various subjects in this'series? "
1,
Y.
booklet
on
TT "
Thursday, April 4rl946*
FINANCIAL CHRONICLE
THE COMMERCIAL &
1790
Delta Electric
,
f||f|f
Fuller Mfg.
j
United Stockyards
Canadian, Stocks—Current Re¬
C. L. Schmidt & Co.
Salle Street
120 South La
Canadian: issues
115
Charles
—
& Co., 61 Broadway,
King
chicago 3
Y..."
York 6, N.
i
/
C.
Knies, partner in Vilas & Hickey,
given before the Central States
Group of the Investment Bankers
CARTER H.CORBREY&CO.
Member, National
f
..
at
Chi-*
cago—VHas & Hickey, 49
Street, New York 5, N. Y.
W^ll
of America
Association
Wholesale Distributors
Middle West
.-v-'"".'
.
Pacific Coast
—
For
-Vx
cipal stocks as of Dec. 31, 1945—
Mackubin, Legg & Co., 22 Light
State 6502
Street, Baltimore 3, Md.
Also available^
LOS ANGELES 14
655 S.
on
Co.,
Insurance
Aotna
tional Casualty Co.r
Fidelity & Guaranty Co., United
States Fire Insurance Co., and
Westchester Fire Insurance
Consolidated Gas
Fony-Year-Old Bull Market
The-Muter-Co.
Request!
New York 5,
HICKS 6- PRICE
Chicago Board of Trade
231 SO.
York Office
1
-
News—Brochure
'
Inc., Pfd,
'
W-
..
r,l
'■
»
V.i * i'/, fy'i ''*y
t'':
teal H.Davis &Go.
Pacific Coast
<• :
Chicago Board of Trade
-
"
3
10 So. La Salle St., Chicago
on
Indianapolis, Ind.
,
Rockford, I1L
Cleveland, Ohio
1529
—
Revised
Street,-Philadelphia
'
' ' .*
available
are
•
revised
memoranda oh Metal & Thermit
■
Also
A. de Pinna Company—Circular
jlerrick; Waddell :& Cb;; Inc./ 55
Liberty Street, New* York 5, N. Y.
Electrbmaster
Inc.
.
Wans
ISheller Manufacturing Corp.
Co.,
120 Broad-
N. Y.
.
,
<t
:
and Bird & Son, Inc.
{International Detrola — Memo^
The Gabriel Company
■'
•
■■
•
St, Regis Paper Co.—Study of
situation
offering
interesting
Co., 209
growth possibilities — Eisele
&
Chicago? 4,
Xing, Libaire, Stoht & Co., ' 5(3
Broadway, New York 4, N. Y. :;
&
Landers,
Frary
Tnc..
Broadway, New York 7.
;
150
N; Y.
.
:
Roi
Le
lative
Guentber Law
'
(
/
Company
Telephone COrtlandt 7'5060
^
Chicago Philadelphia San Francisco
'
Members Chicago Stock
209 SO. LA SALLE SK
T^lpDhorjp
Dearborn' 1427
.
v; ;
Exchange
'
..T
Study
of
sound specu¬
jitifchase—First": Colony
as a
York 5,
.
;
CHICAGO i, ILL.
-
—
Corporutiort, 70 Pine Street; New
N.-Y.
: - .f
x
SILLS, MINTON & COMPANY
incorporated
Schenley Distillers Corporation
^-Brochure of • articles they havo
been running in the Chronicle-^
write
to. Mark Merit, in care 01
Distillers Corporation,
Schenley
(Par Value $10 per Share)
N.Y.
Clark—
&
Vi^ed study—Amott, Baker &; Co..
5% Cumulative Convertible Preferred Stock
.
Boston
&
why, New York 5,
Galvin Co.—Descriptive Cirdu-'
Richardson Company^—Circular
laf—Seligman^. Lubetkin & Co^ on interesting: growth: opportuniA
41! Broad Street, New York 4, N. Y.
ty in the plastics industry—Amott,
1
Also detailed circulars on Upson Baker &
Co., 150 Broadway, New
Co.; Tennessee Products; Well- York 7, N. Y.
,
?
.
t.
man Engineering Co.; Kendall Co.
cojnmon stock
v
Incorporated
- ' .
131 Cedar Street New York 6,
Keith-Orpheum—Analyi
sis—Abraham
or
—
Brahches
«
Street/ Chicago 4, 111.
Radio
report
Prospectus A vailable
Prepared-—Conference Invited
Albert Frank
Puget Sound Power & Light
Co.—Analytical study indicating
;nteresting
possibilities -7- Sills/
Minton & Co., 209 South La Salle
26, Mich.
jv; Also I: available* a
South La Salle;StreeL
III.;v
ADVERTISING
A11 Its
Recent
—
report — Mercier, McDowell
&
Dolphyn, Buhl Building, Detrob
■;
'In
Interesting ' possibilities; ~ Hoit»
Rose & Troster, 74 Trinity Placed
New York 6^.N. Y.
*
I;
•'*(:
randum-r-Cruttenden
FINANCIAL
Investors;
American
Pacific
^
Phenolic
Walnut
2, Pa.
Industry—Anal¬
Motion Picture
&'
memorandum—Buckley Brothers,
.
,
>
American
change; or
-
Larson
Ypung,
Mich.
Exchanges—Revised
the; New York - Curb
Exchange—Kaiser & Co., Kuss
Building, San Francisco 4, Calif.
Teletype CG 405
Tel. Franklin 8622
hawk Rubber.
40
Tornga, Grand; Rapids NationaJ
Bank Building, Grand Rapids 2
directory of issues, 219 of which
are traded on these exchanges and
also on the New York Stock Ex¬
Members Principal Stoek Exchanges
:
Co.,
Co.—
Iron
possibilities for appreciation for Inc.—Special report on a levers
this company—Ward & Co., 120
age-type investment company-^
Brbadway, New York 5, N. Y. Also
Maxwell, Marshall & Co., 647
available are late memoranda on:
South Spring Street, Los Angeles
J>
Great
American
Industries;'
14, Calif.
31.;
Alabama
Mills,
Inc.;
Douglas
Shoe; General Tin; Upson Co.;
Panama Coca Cola—Circular on
New jersey Worsted Mills; Mo¬
Wall Street, New York
Circular—De
Directory of Stocks' Traded
' Established 1916
v
&
Treat
Co.; report—Amos
Rubber
»
'
Descriptive circular—Dayton
Haigney & Co., 7j Federal Stree^
Boston 10, Mass. v
'
"
Study of outlook and speculative
American Bantam Car—Special
Broadway, New York 4, N. Y.
^Prospectus Available on ■Request.
/
Armstrong
Malleable
Dayton
IK,
Lime Company-
New England
Penobscot
Building, Detroit 26, Miqh.
,
Snap-On Tools Corp., Com.; ■
..
ties—Moreland & Co.-,
5, N. Y.'
Also. available are reports on
niture xCo;j Punta ' Alegre Sugar
Corp.;
Ilaytian
Corporation
of Automatic Signal Corp.; North¬
ern Engineering Works; and Van
America; Latrohe Electric Steel
Dorn Iron Works.
Co.; Ray-O-Vac Company; Fort
Pitt
Bridge
Works and Welch
Grape Juice Co.—Strauss Bros., 32
American Forging and Socket-^^
•Camden Forge Co., Common
;
Darling Co.—Study of a
offering
interesting
growth and appreciation possibili*
Plan-
Investment
N. Y.
Ohio Leather Co.; American Fur¬
*'Wells-Gardner & Co., Com.
VWoodall Industries,
L, A,
Upson Company; Lawrence
Portland Cement Co.; The Parker
t/f, ;v;:
:„>a
.
orandum on The Muter Co«
The
Wall St.
Corp/,
■■
Also available is a recent mem¬
;
contain-* only4—Hugh W. Long & Company,
Iric;,: 48 Wall Street/ JtfeW YorfePb^
Appliance Co.; Pettibone Mulliken
J -v
memorandum
IStreeii, 'Chicago 4* 111;
Thirty-Year Bull Market—-Study
hi rotative action of .industries' in
the securities market—for dealers
ing brief analyses of Philip Carey
Manufacturing Co.; Sargent & Co.;
*
Randolph 5686—CG 972
Now
RealizationvCoa,)--A®tC
on a stock offering
combination of Improving utility
income, together with excellent?
speculative possibilities'^ jhomxoil:
developments—Fred W. Fairmant;
& Co., 208 South La Salle Street,,
Chicago 4, III. *
Midlahd
Corp.—CircularsLa Salle
Chicago
Corpi
(formerly; Midlan<L: Utilities and
Hicks & Price, 231 South
;
of comment and review
v
CHICAGO 4
LA SALLE ST.,
N. Y.
Geared to the
Exchanges
Members Principal Stock
rhe
l
Hotels
Successful
—
Galvinj
on
National Gas & Electric
'
.
'
Consolidated Gas Utilities and
! /
Analysis of the market after four hing--»Discussiott of oppkirtunitieS
for income and profit—Security
years of rising stocK prices which
indicates that greatev selectivity Adjustment
Corp.,
16: Court
in purchasing is advisable—Har¬ Street, Brooklyn 2, N. Y.
ris, Upham & Co., 14 Wall Street,
The Chicago Corp.
on
—
pompany
Utilities Corp.
Circular
bulletin
Revised
—
ill!. ' *
Amott, Baker & Co., Inc., 159
Broadway, New York 7, N. Y;r : y
Co.
Ktc,
Motbroia^-Circular
Manufacturing Co., makers of the:
Motorola Radios and Phonographs?
Doylep;0'COnnor^&^06.; Inc./ 135 i-Seligman, Lubetkin & Co., 41
Broad Street, New York 4, N. Y.
South La Salle Street, Chicago 3,
Hotel Waldorf Astoria
Statler Co.; N. Y.
Hotel Statler Co.; Roosevelt Hotel
NY; Savoy Plaza;, and 870. Seventh
Ave.; Corp.—Ask for list C21—
United States
Chicago 4,11L
>
Estate: ' Equity I Stocks-
Corp.;
Co.—An-*
Miller Manufacturing
alysis: of current situation and.
prospects for 1946—Comstock &
Co., 231 South La Salle Street,
South
Chicago South Shore &
'
Inc.;
ton,
&
New-
Inc.f 4 111. Broadway,
York 6, N. Y.
Co.i
210
Also available is"a circular on
Analyses, of situations considered
especially attractive at this i time,
including
Brunswick
Site
Co.;
Commodore Hotel; Hotel Lexing¬
Fidelity & Deposit Co., Massachu¬
setts Bonding & Insurance Co., Na¬
Michigan418I
CG 99
.
randa
Spring St.
are-latev'men^^'
Corp.—
Koller
H.
Memorandum— F.
of
'■<;A •:
;
Aircraft
'McDonnell
!Sports Products Inc.
r
MARKET
135 La Salle St.
&
appraisal of City of Philadelphia
Bonds
and ^ compilation - of
Pennsylvania Legal Bonds.
Real
Chicago 4, 111.
S.
;£-Hardy &' Hardv, 11 Broadway,
! Yew-York A N. Y.'
Co., Inc., 123 South
Broad Street, Philadelphia, Pa.
Also available, a valuation and
fitocks—Comparative data on prin¬
DISTRIBUTION
CHICAGO 3
appraisal
and
&
interesting low-priced speculation
Insurance
Casualty
and
Fire
UNDERWRITERS
SECONDARY
cates—Valuation :
—Stroud
T.
N.
Bost, Inc.—Detailed circular on
Certifi¬
Equipment
Railroad
•
.-
West
Seventh
Street, Los Angeles 14, -Calif;
values
railroad
affecting
•
America
of
California,1
1946—Laird, Bissell & Meeds, 120
ditions
v
Statement—Butler-Huff & Co.
Broadway, New York 5, N. Y.
—reprint of address by Arthur
Association
of Securities Dealers
Bank
.
Facing the Facts'—Study of con¬
•
Farms
AA^SpeciaL study based upon the
Bank of America's Dec; 31/1945
Stocks-
City Bark
York
New
New Comparison ahd j' .alyns ' of 19
stocks r;f6r;^the^i^;f'^'^'Tart«r;0;of
Tele. CG 271
Tel. Randolph 6960
ytical circular—Hirsch & Co., 25
Broad Street,; New York 4, N. Y.
••
•
.
.
and yields of
^dividends
range,
'
Established 1922
■
price
earnings,
showing
Co.; 72 Wall Street, New York ;5»
N/Y.
National
and
-
Maryland Casualty Co.~-Analy^
sis of the 1945 annual report show¬
Co.—ArialysisNew; York Haaseatic Corp., 120 ing substantial operating; and - fi- ;
nancial gains—Cruttenden & Co.;
Broadway, New York 5, N. Y.
209
South
La
Salle
Street^
-
Ardeni
Pfd.
view
descriptive of the common
stock of interesting railway equips
ment issue—Blair F, Claybaugh &
Steel
Michigan
Co.;
Casting Company
Terminals Corp. -,
It is understood that the firm* mentioned will be pleased
to send interested parties the following literature:
Globe Steel Tubes |
:
Iron
Brooke
Recommendations and Literature
•,
,
lar
Co., 231 South La Salle
Street, Chicago 4, 111. Also avail¬
able is a recent circular on E. & G.
Investment
roker
Dealer-B
Central Electric & Gas
Corporation—Circu¬
Magor Car
Co.—Circular
i; American Service
—Adams &
Trading Markets
:
Teletype CG 864
Lehigh Valley RR.—CircularMcLaughlin, Reuss & Co., 1 Wall
Street, New York 5,. N. Y.
: v
.
Fifth Avenue, New York
N. Y.
350
-
Middle West Corp.
-
-
•
(Continued On page 1791)
MARYLAND CASUAL1T CO.
—We Maintain Active Markets In— ■;
COMMON STOCK
-,
Members
Chicago
Stock' Exchange
Chicago Board of Trade
B':':
National Gas & Electric
Corporation Common Stock
Write
For
CHICAGO SO. SHORE & SO. BEND RR. Com.
We have prepared an
of
DEEP ROCK OIL CORP. Common
NORTHERN STATES POWER CO. 6 &
7, Plds.
CiiiiiifiiDEil-8 Co.,
.
A
discussion
of this company.
H. M.
SALLE ST.
CHICAGO 4, ILLINOIS
208 SOUTH LA
40G8
Private Wire to New York
Telephone Randolph
Direct
Bell -System
CG 537
Byllesby and Company
Incorporated
135 So. La
'
Salle Street, Chicago
Telephone State 8711
New York
■
Philadelphia
Pittsburgh "
y
;
,-v,
1Vr
^
.
' *;
w.jtr) Yjtw tjorl,
*'
'
.
•
* vJ'*
•, -I
" "*'
'
. -
'
.
,
;,v/
Chicago an IJo, ^4nyt!ei Stocl £xclan(]t}
f "
3
Teletype CG 273
*
analysis df the 1945 Annual Report
Maryland Casualty Co., which shows sub¬
stantial : operating and" financial, gains. .Copies
of this report are available on request.
the
N-l,
-
Minneapolis
LOS ANGELES
209 South La Salle Street
DIRECT WIRES
Chicago 4, Ilunois
WEST COAST
TO EAST AND
LINCOLN, NEB.
OMAHA. NEB.
.1
Scr?»nfon Spring Brook xWater
Co.—Analysis—Ira Haupt & Co.,
til Broaaway, New York .6/N. Yf
Also available is a study of the;
[SINCE 19081
FREDJ.FAISMANCO.L
lr
'
Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
tion to proceed at will once SEC
clears the -Securities involved. ';
Broker-Dealer
;-.Avv"
Recommendations
(Continued from
i •
Southern
Natural
Gas
Co.
Memorandum—Graham,
Parsons
Co., 14 Wall Street, New York
5> N. Y.
Soya Corporation~~Late
'memo-
Bankers
with
Lerner
Portland
recent
&
Co.,
•
them- in
Walthain Watch Co.—Descrip¬
circular-—du Pent," Homsey
Co.,- 31 Milk Street, Boston 9r Mass.
i
A nation-wide group of 108 in¬
vestment bankers headed jointly
fby Kuhn, Loeb & Co.; Glore, Forgan & Co., and Lehman Brothers,
on March 29 offered
478,194 shares
of class B stock at $35 per share.
The shares, held by the Alien
Property Custodian and awarded
io thegroupetcompetitive sale
March 27 on a bid of $15,440,884,
$32.29 per share, represent ap¬
proximately 90% of its total out¬
standing capitalization. The only
other securities outstanding are
*48,664 shares of class A stock.
or
ThecompanynviU receiveino pro¬
ceeds fronr the sale.r ■
>'»
The company is engaged prin¬
*
_
-
Trona, Calif.,
northwestern
edge , of
Lake which lies
the
in
the
Searles
on
northern
part of the Mohave Desert.
task
of
-
distributing
^
•
-
Stock
Exchange, an¬
nounces
that Amos M. Kidder,
lieutenantColonel,: A. C„ has re¬
turned from service and resumed
general partner
m
Boston
'.
BOSTON,. MASS.—Kenneth M.
•Jones is engaging in the invest¬
ment business -from offices at 141
Milk Street.
Mr.
Jones
was
for¬
merly id the trading department
of Weston & Co. for a number of
years.
?,
'
,
'
W
,
ap-
Commonweaith \m Go.
Nnveen in K.Y. fs Formed in Chicago ;
Manage
f?;
Union
Pacific's
;
v*<
closed
$81,000,000
around 101
Great
l/z.'
liberal ; supply
around.
report
ot bonds
.
was made
yesterday,
sale
bulk
of
a
of
total
of
bidding rule;
,
h
a r
Stone,
Brinker, Lieu¬
#V pSC'? ^
Pan! A. JiislJoiiis
CHICAGO,.ILL.—-Paul
and
.11
jii
.'')Xv-Vr
-
135 South La Salle Street
Chicago 3, IIL
A/Just,
Tel. STAte 4950
Tele. CG 28
recently released from active duty
the Army Air Corps with the
rank of Lieutenant Colonel, has
in
Active
Trading Markets
•h ^
*
York Stock- Exchange and .other
principal exchanges, and - will be
-hj-i
-
'*+•{''.
1
American Service Co. j
Preferred; Class A and Common
?
in charge of their
fore that
;was
R. Hoe &
Co., Inc.
Common
*
y
,
•
vj.
t
& G. Brooke Iron Co.
"v:
y.
a4 partner of Haf-
Common
-
,
.
^Nat'l Terminals Corp.
1
These would
•a
be
replaced by
issue of- collateral trust
new
j bonds, and if undertaken
;s
■
1-
Common and Preferred
,
•
..
>
-t
KITCHEN & CO.
Daniel F. Rice S Go.
•
0*0.
Airlines
become associated with the firm,; :
rison,' O'Gara & Co; He-served
New Rail Loan Shaping
for 39; months, part of whichr was
The; latest prospect for* refund¬ in the ^European theater of'bp*
ing in the railroad field is North-?: erations, during the War. 5 * v • J
to
price-yield range.
Chicago. *
f■' Taca
,
.
a new
Li¬
own
Mid-Continent
Jr.
Rice and Co., Board of Trade
Buildingj';members;ofthe:New
only em^Pabifiq
BailroadCn;,w^
wait, if they can considering the advisability of all
stand the strain.
Major .investors its outstanding $55,000,000 of'colmust, of necessity, > invest their lateral- trust 4H %
bonds, due .1975.
consensus seems
in
his
Chicago & Southern
Fred D.
^Mich. Steel Casting Co.
rr—
Ex¬
operation will result in a net
reduction in the, road's .total
debt, it was indicated.
^ ^
.
-t'»;
Seodfeodjf in
.
^\ri,
-■
Anderson A Sara With
•Recent
Chicago
CHICAGO, ILL. --- William- T.
Anderson, Jr., has become associ¬
ated with .Goodbody & Co., .105
the
Common
.
and
funds; and the
conducted
Trading Markets
d
cago, ijfoseph J; Rice;;partner^ an*
nounced. Prior to his war service,
Mr. Just'was a partner of iCarter
H.' Harrison & Co, here and ; be-
m
was
a?id J. C. Rein-
The balance will be added to
general funds and used; as needed
to finance expansion of the" firm's
own
operation^ and those of its
subsidiaries. ;
:
v
:
-
M.
Tate
become associated - with DaniepF.
the
:
their shelves need
back
that - William
A. Grigs by
security depart¬
ment with headquarters in Chi¬
c
Mr.
investment business
1961 respectively and $5,835,000
of serial notesjr due 1947 to 1953.
still
he
.
;000 of outstanding 2^%,; and
'Z%% debentures, due 1954 and
a
and|
Lenna
Harsin, Roberts & Co.
past
tenants, U. S. Navy, have ' again
proceeds
from this bperation will he ap¬
plied to redemption of $85,061,r
However, with Treasury. 2M>%
bonds Oncemore moving;
up/the
allowable limit of
point for
several days recently, it. looks as
though the ; bankers who * have
on
The
i
^' v'
dealers
the
also
was
and
announced
to the competitive
settled to
now
quoted
Q
and
Co. and
as
Lieutenant
Commander.
It
Secretary;
King
!
formerly with Lowell Niebuhr &
from
duty
Tate,
V.
Prather, directors.
re^
a.
&: Co., as underwriting sponsor
since this Operation is not subject
.
slowly
active
$125,000,000 of new 25-year de¬
bentures, naming Morgan Stanley
Northern's
series
Reoffering
prospective
$35,000,000
bonds, due. 2010,
brought out little more than" a
Week ago, are likewise moving
of
leased
about
registration with the Securities
■and I Exchange Commission
for
of
ou^ the syndi¬
is
of
In line with expectations,^ Shell
Corp.,;has gone into
;
quickly
It
indicated cost
carrier
Shell Union Oil
cate agreement and the. issue, left
own,
around 101.
an
cently
re¬
man and Robert R.
Sponsors at the beginning
on' its
the
was.
: W.
Aline
t, -Cap¬
S.
lic; offering isi of course^ subject tains, | U.
to ^ approval
by the Interstate Army, and
William G.InCommerce Commission.
,
sticky.
issue,
to
He
price of 99.279
a
Earl
office,
40 Wall Street.
bankers fixing a price of 100 and
interest to the public, for an in¬
dicated yield of 2,25%v/The pub¬
new
mortgage bonds bought as
2JAs at a price of 101.27 and reoffered to the public at 102.19 to
yield about 2.42%, have been
of the week
York
group,
Union. Oil
circular
■■
.
y
Tv'''1.
v".
on
?
yy".]!' :^r&
request
ADAMS &. CO.
231 SOUTH
'
L AS A LLE STREET;
CH CAGO 4,
|TELE;TYPE :C(»3ei-
ILLINOIS
W40I4E STATE Of Of1
West Adams.Street^.as manager of
the trading ' department. He: will
be assisted by- Joseph. J,. Gavin.
change Commission's registrations
division has considerably expand¬ ;; Outstanding issues are redeem¬
Mr.
ed its staff, or perhaps
found able af the option of the
Andersop .was 'formerly with
company
Harris, Upham & Co., and Swift,
short-cut methods of processing
at a price5 of 105 and accrued; in¬
Henke&Co.
new issue applications, it faces a
terest, either in whole or part on
period of busy times;
•45"days• notice. >• r..
" ;'
Potential new issues literally
-
«
Appteton Manufacturing
Company
-
inundated
With
the
Federal
;
;
;;
month.
'•.A
,
*
■
t'
<
.:
;
"
,;1
*"*■
"■»*.,
^rlE;
Kane Rejoins
For
Gray, McFawn & Company
:
i
k- i-l
^
DETROIT,
MICH.
—
Carl
Daniel
E.
with
Lobdell
&
of" prospective
aim
V
Co.
Inc^
20 Exchange Place, New
York City,-as' manager of their
is¬
ner
in the firm.
*
"
Kropp Forge Co.
Millef Manufacturing Co.
course, is td make "use
re¬
"v.
Hydraulic press Mfg. Co.
'& Cdmpahy, Ford Building/ mem¬
I bers of the ^Detroit Stock Ex-- U; Sv^Government Bond
trading
of already existing data, that is
change. Prior to serving in the department. Mr. Moffat was forreports for 1945 earnings, assets,
U., S. Navy, Mr. Kane was a part¬
etc., instead of having to, wait nn
iperlyt an officer of C. F. Childs
The
suers^ of
',\vtV"
Howard I ndustries, Inc.
Moffat^ Jr.^ has become
associated
Kane has rejoined Cray; McFawn
v'"- ft
Burgess Battery Co.
Mat to Htad Depl.
Lobdoll & Co.
agency
registrations in the
closing days of March, with a
total of no less than 18 filings
made on the final day of the
new
availability of first quarter
,
F. D. Stone, Jr., to
.
ating the bids.
-
alid selling their wares.
Under the Wire
A.M. Kidder & Co., 1 Wall St.,
New York City, members of the
Kenneth Jones
-
it
buyers,
Unless the Securities
a
•
2.31%. ' Again the bidding was
close with a difference of only
70 cents per $1,000 bond separ-:
;
be that the bond marketis defin¬
Resumed jnv, Business
as
basis
,
Amos Iff. Kidder Has
active duties
In the firm.
Tor the
1
,
itely in
New York
'
.
successful banking
paid the road
grejit haste in taking some;
of the newest issues off the
hands of the underwriters.; The;
latter, consequently* Jaro Ifacedj
with the job of really
going out
sit
at
'•»<. ^ •'
two syndicates sought the loan,
no
bonds
cated
%The
rail¬
the further lowering of returns;
oil; Investments and bave shown•
ash and salt cake.
is lo¬
the
Institutional
cipally in the production and sale
Of potash, boron products, soda
Plant
vying
recent
pears, are tardy to say the least
In their willingness to recognize
„
'*jVWestern Light: & Telephone Co.*
Inc.—Study of situation offering
interesting .prospects foy growth^
and
increased earnings— G. A.'
Saxton & Co., Inc., 70 Pine
Street,
New York 5; N. Y.
.«
-
for
such issues.
tive
American Potash Co.
have: been
other
obligations and," accordingly,
making it possible for the carriers
to obtain funds sought at recordmaking low cost,'are finding that
they have their work cut out for
developments—
10 % Post
Office
Mation-Wide Group
(Offers Gommon Stock of
who
each
road
Cement--
Square, Boston 9 Mass.
'
_
randUm—Peter' Morgan & Co;, 31
Nassau Street, New York 5, N. Y.
Spokane
Bulletin on
1
•-
Fred D. Stone, Jr., who prior to
CHICAGO,
ILL. — Common¬
Railway's bond offerings. This is¬ serving, in ^the Navy,,;; was as¬ wealth
Investment Corp. is engag¬
sociated with John Nuveen & Co.
sue^1 involving $25,000,000 of new
in Chicago for
ing
iii an investment business
2 Vi%i had the
appeal of an inter¬
fronv offices at 141 West Jackson
mediate maturity, - 1961;- or *"15 13 years,. has
been named
years, making it one of the short¬
Boulevard.
Offices of the firm
est; term rail offerings in recent manager^of
are Edmund W.
Miller, President;!
the firm's New
months.-.--. '•.
—
&
'
*'
Dealers "reported brisk demand
for the newest of Great Northern
1790)
page
\
New Great Northern's Move
1791
Puget Sound Power
&
Light Co.
& Co.
ports for the current; year.,
In New Location
This rush to* register does
removal
and
of their offices
enlarged
to new
quarters
at
jSouthwest Alder*
729
INDUSTRIAL COMMON STOCKS
.
mediately; at the end of thev re- {
quired period of "hibernation.'' It;
merely puts iite issuers iii a posi-
Gisholt Machine
DEEP ROCK OIL
is
Rath
TENNESSEE GAS & TRANSMISSION
Macfadden Publications
Packing Company
Gisholt .Machine
All Wisconsin Issues
v-
-
Publishers, Inc.
*Waltham^Watch Cbmpany
DOYLE, O'CONNOR & CO.
M-.;
INCORPORATED
.
•
•■.,
....
;
;
u
^
j
«r'
r
Prospectus available
HOLLEY, DAYTON & GERNON
■'
upon request
y
-
S
v"
CHICAGO 3, ILLINOIS
6161
-A;,;c;..:
*
Member—Chicago
CG 262
A.CALlXN«®COMEANY
*'i«
Teletype: CG 1200
*
Exchange
Stock
105 So. La Salle St., Chicago 3,
135 SOUTH LA SALLE STREET
Telephone: Dearborn
■.
;
"
Chicago
New York
'
Company
United Printers and
A;;,,
'
Company
*Uarco, Inc.
Prospectus available ^vpon request,'
Teletype "CG 955
T
Corporation
^Standard Milling Company
CHICAGO SOUTH SHORE A SOUTH BEND
*
w
*MacWhyte Company
WILSON BROS. COMMON
So. La Salle St. ^^DearKorn 1501
231
^Consolidated Grocers Corporation "
Footer Brothers: Gear and Machine
/
CHICAGO 4
*Anders6n-Pricfeard Oil Corporation
Hart Carter
*
CdMSTdck& Co.
not'
PORTLAND," OREG.— Daugh-
necessarily mean thai the issues!
«rty, Cole & Co., aannounce the, involved .will reach market im-j
;
Incorporated
Boston
...
Milwaukee
'<■
->•
.
Minneapolis
*
Omaha
"
offices in Wisconsin
Eau Clfcire
-
Fond du Lac
Madison
111.
Central 0780
i
-
-
•
La Crosse
Wausau
a
satisfactory showing on this
year's operations. That prediction
is based on the accomplishments
American Phenolic
Pennsylvania Brevities
Metal & Thermit
Optimistic Outlook for Philadelphia Industries
Bird &
Members New York,
Los
1940 level.
1529 Walnut Street,
New York
;
expansion
Philadelphia 2
Lo# Angreles
enormous
between
Private Wire System
Philadelphia, New York and Los
an P'
retail trade and heavy on
in
construction,
:
requirements of existing and new
business for all kinds of capital
and durable goods."
Hagerstown, Md.
Telephone—WHitehall 3-7253
Pittsburgh, Pa.
N. Y.
Angeles
report states that many
The
industries have
solved their reconversion prob¬
lems in advance, have increased
their financial reserves in spite
of heavy
taxes and are now
ready to go to work in provid¬
ing jobs at good wages and in¬
suring reasonable prices to con¬
manufacturing
Philadelphia
Bank & Insurance
sumers.
Stocks
.
Philadelphia County com¬
The
mittee
Philadelphia Transportation Co.
organized two years
was
part of a national effort
by industrial leaders to stimulate
ago
'
3*6s 2039,
Pld. & Common *
as a
business activity and
H. N. NASH & CO.
1421 Chestnut Street,
Locust 1477
Philadelphia 2
York Phone
HAnover 2-2280
New
Phone
;
71ftftftXI'ftTeletype PH 257
.
labor, social and civic lead¬
joined in the co-operative
planning which is credited with
holding unemployment to a mini¬
mum
and in speeding reconver¬
sion of the area's numerous in¬
ness,
ers
dustries. 1ft.: ftft.
-./ft,.-,'*
=
"Chinese Wall" to Go
Inland Gas
1st 6%s 50%
employment
Hundreds of busi¬
after the war.
Phila.
which the
Included in projects
Paid
Philadelphia are expect¬
ed to ratify in the May primary is
that of removing the city's long¬
standing
mid-town / blight,
the
"Chinese Wall" which elevates the
voters of
Iowa So. Utilities
.
Common.
,
Midland Utilities
Common
CERSTLEY, SUNSTEIN & CO.
Y. and Phila. Stock Exch.
{Assoc.)
Members New York Curb Exch.
213 So. Broad
St., Philadelphia 7, Pa.
Bell System Tel.
New York Phone
new
vide
the
satisfactorily owing to an aggra¬
vated dislocation of the .eco¬
nomic life of the nation.
Our
present difficulties and delays
are~ solely due to the unsettled
problems in the plants of our
suppliers. Several hundred fab¬
ricators of steel, many of whose
Pennsylvania
products
to us,
Schuylkill at
000
asked to ap¬
the borrowing of $78,000,waterworks, sewerage,
prove
«**■,
for
^hospitals and other
highways,
It is thought that
borrowing capacity
may he greater
than the au¬
thorization sought due to an in¬
crease
in
personal
property
assessments.
In August, 1945,
undertakings.
the
LEWIS C. DICK CO.
1420 Walnut Street, Philadelphia 2
NX Phone REctor 2-0037
Bell System Teletype PH 205
and
city's
ger
ward to
Invited
^
*
v,
r
*■
**• *
*'
* ■*
Botany Worsted Mills pfd. & A
entirely."
of the company's
in the
preferred stock. Last year
dividends in 1945 were paid
form of
convertible jpreferred, par
of 5%
$20. V
Autocar Company
Central Iron & Steel com.
days
not yet free of the dan¬
stockholders received 48,784 shares
v vi
*
still
pense and to maintain finances
in liquid position, common stock
»
*
;
1, *
/
are
production
many
are
of being shut down
In pursuance
$744,720,066.
''■'■'ft.:ft: ft
We
costs.
policy of conserving cash in order
to take care of modernization ex¬
property values were estimated
at
$540,000,000.
Last
month
assessments were revised up¬
"ft""
Dealer Inquiries
losing
will be
a key link in the Industrial High¬
way plan.
COMMON
Tel. Pennypacker 1787
increased
additional $4,000,000 to
he
still shut down en¬
of the Govern¬
attitude in not yet grant-
irig price adjustments to com¬
pensate for those fabricators'
The State will pro¬
Voters will
of prime necessity
are
are
because
tirely
construct the span which
(Philadelphia)
Reporting net profit of $801,167
Closing his message on a more
optimistic note, Mr. Page states:
though our production has
been badly retarded by strikes in
"Even
suppliers and in
spite of the fact that the period of
uncertainty is not yet ended with
the first quarter of 1946 approach¬
ing its close, still we should make
the plants of our
Pittsburgh Railways
Available Publications
1
Warner Co. common
H. M.
Byliesby & Company
common
Kellet Aircraft
While
pursuing its research and
experimental projects in the de¬
sign and manufacture of helicop¬
ters for the Army and Navy, to
be followed later with the an¬
nouncement of a commercial heli¬
S
'
«
'■
~
r
<
■/%'
^
'H
Valuation and
Appraisal
'
'
V
-
"
$$$1.
,
Tele. PH 73
CITY OF PHILADELPHIA
••
**«':
■
.r-
•>'/
'
v
..
has
increased
authorized %
effective
products
March 1.
Raymond
Vice-President,
C. Mateer,
believes
ft*'*>• :[/•/'
(Special to The Financtai,
copter program, Kellet Aircraft
is busily engaged in the produc¬
of refrigeration and deep
freeze * units,
coin
phonograph
parts, sheet metal products and
airplane parts.
W. Wallace Kellett, President, states that present
backlog of orders is approximate¬
ly $3y355,000. Renegotiation pro¬
ceedings with the War Department
have
resulted
in
settlement
Chbonicie)
CHICAGO, ILL. — William M.
Galloway and Albert F. Lippmann,
not
requiring refunds.
both
formerly
with
Philip
Penna. Pr. &
:
-•■■■
■'
w.
>
■
BONDS
ii• '•
<.'
,•
.
-
/
»
did business
as
ah individual floor
broker on the Chicago
Stock Ex¬
change arid was a partner in Mor-
rill, Clarke & Rich.
George H. Kitchen Is
Wurfs & Co.
With Gr
PHIADELPHIA,
PA.-rGeorge
■pm
, Tftft
H. Kitchen, Lieutenant Colonel in
Pittsburgh Railways Co.
the U. S. Army, has become as¬
The City of Pittsburgh's petition sociated with C. S. Wurts & Co.,
to place all the street railway FideUty-Philadelphia Trust Build¬
underliers under the jurisdiction ing, as Manager of the trading
of the court and which was reject¬
ed by
the District Court for West¬
Pennsylvania, now languishes
in the Circuit Court of Appeals in
Philadelphia where it has reposed
for about a year.
It is unlikely
department.
further progress
that any
made in pursuance
can
be
Hawes fi Bowers Rejoin
Staff of Ramho, Keen
PHILADELPHIA, PA.—Rambo,
of the Phila¬
delphia Company's tentative plan Keen, Close & Kerner, Inc. an¬
to mafce an offer to purchase mi¬ nounces that Marion S. Hawes,
nority public holdings until the Major XJ. S. Army Air Forces and
City's position is judicially, de¬ Philip W. Bowers, Major" U. S.
termined. In the meantime, Trus¬ Army Air Forces have returned
tees' cash is reported to be over to their sales organization.
$21,000,000,
closely approaching
an
amount
equivalent the full H. A. Riecke Adds Three
of
par
plus
arrearages
Close
to
the
on
stocks.
to
New
Representatives
be
war-time
peak.
&
Co., Inc., 141 North 32nd Street,
announce
the
association
them of C. William
i
Corporation Notes
Joseph Souder Todd to represent
Declaring its first dividend in them in Reading and Norristown,
the
60
years
of its existence, Pa.; and Harry Parker to repre¬
Philadelphia & Reading Coal & sent them in Trenton.
•
"'ft-ft
'ftV'ftl
CORPORATE and MUNICIPAL
ft.
Coptet on.Request
COMMON STOCK
SECURITIES
b
Bought—Sold—Quoted
STROUD & COMPANY
E. H. Rollins & Sons
Pennypacker 0100
1528 Walnut
New York
;
Incorporated
123
Incorporated
SO.
BROAD
STREET
120 BROADWAY
Boston
San Francisco
Rambo, Keen, Close & Kerner, Inc.
Investment
Securities
•«,,
PHILADELPHIA, PENNA.
NEW YORK, N. Y.
St., Philadelphia 2
Chicago
Allentown
Pittsburgh
Reading
' Scrahton
Williamsport
with
Biaselle and
/-"/«"*'t''
PENNSYLVANIA LEGAL BONDS
tt|
i
D.
Stokes, are now associated with
Chesley & Co., 105 South La Salle
Street. In the past Mr, Lippmann
Compilation of
.
that
Galloway & Lippmann
With Chesley & Go.
tion
holding
CERTIFICATES
RAILROAD EQUIPMENT
PHILADELPHIA OFFICE
OPA
principal
stock re¬
plan which would give pre¬
claim
Valuation and Appraisal
Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717 7
all
all publicly held bonds and
Traffic revenues are said
Sterling Motor Truck
v
an
the
to
ern
Empire Steel Corp. com.
Vinco Corp.
cap
costs,
not up to
were
due
,
ment's
the
consider
1946
budget,
price increases in the company's
suggested that stockholders
pose
;
;
the
i
.
$20,000,000, of which the rail¬
road
will
pay ft $10,000,000,
the
State, $6,000,000, and the city the
across
for recapitalization.
A
committee appointed for the pur¬
increase
though earnings in the first two
months of
strength following discussions,
at the annual meeting last month,
plans
an
from
common
■
at
Penrose Ave.
Preferred shares of Alan Wood
ket
of
the
consolidated sales for 1946 will
Explaining the company's ex¬ ferred holders 85% of the equity
exceed those of 1945.
pansion program which entailed and common holders 15%.- The
I ftftft'* .&♦: 117
large capital expenditures, Mr. present preferred carries approxi¬
The acquisition of control of
Page said, "At the same time mately $50 per share in arrears.
when professional prognosticators,
The report was opposed by Hen¬ Central Iron'& Steel Co., of Harmulling over their cloistered sta¬ ry P. Carr and Joseph L. O'Brien risburg, by Barium Steel, adds to
tistics, were predicting that the of Carr, O'Brien & Co., Philadel¬ the latter's capacity by 336,000
end of the war Would bring a re¬ phia security dealers, representing .tons of steel ingots and 288,000
of
sheared
and
universal
cession with a decline in employ¬ a preferred stockholders' group. tons
ment and purchasing power, we It may be recalled that, several plates.
7
*
*
*
were buying more land and build¬
years ago, York Ice Machinery
Directors of Baldwin Locomo¬
ing so as to facilitate the handling Corp. in a somewhat similiar situ¬
tive Works have postponed the
of a greater volume of business.
ation* effected a recapitalization
!We were acquiring and installing on an 85% and 15% allocation be¬ annual meeting from May 2 to
new machine, tools even
though tween the preferred and common June 11 in order to allow further
they were then exceedingly diffi¬ holders. The plan worked out to time for the preparation of the
cult to obtain.
We were provid¬ the advantage of holders of both annual report, delayed because of
;
ing jobs for nearly three times as classes of stock. Disgruntled, un- recent strike.
*
*
*
many men and women than ever assenting preferred holders who
before in peace-time.
Benjamin F. Pepper, Herbert
insisted on their pound of flesh,
"'Now we find ourselves, six
namely, par and accrued, were W. Goodall, William T. Kilbora
and F. Brian Reuter have been
months after the end of hostili¬
appraised out at a much lesser
figure. A new committee for Alan re-elected directors of Pennroad
ties, confronted • by the everyWood has been appointed and in¬ Corp.
swelling volume of orders that
structed to report at a later meet¬
we had partly foreseen and pror
ing.
-ft ft
vided forj but unable to perform
City Council has voted $1,000,000
toward
the proposed
new
Industrial Trust Co.
S
*
♦
50c pay¬
1,000,000
to 2,000,006 shares and the creaf;
tion of 150,000 share of new'
cumulative preferred stock. Al¬
year."
Steel Co. have shown recent mar¬
$49,199,013 in
on
1944-
Boulevard. Total cost is estimated
bridge
Co. have authorized
*
a
common
Stockholders of Scott Paper
at an accelerated
Alan Wood Steel Co.
the company's problems
in the annual report just issued.
The net was $664,828 less than in
balance.
PHLA. 591
WHitehaU 4-2300
the
tracted
going
the
payable out
earnings.
The company
emerged from reorganization Jan.
l, 1945.
on
1945
in
of orders, large
sales■■ of
total
length
In its place will be con¬
Street.
us
have
orders to
we now
enough
Co., has ordered
ment
of
the
1945, Robert P. Page, Jr., Presi¬
Co., comments at
to 30th
from Broad Street station
books
Iron
rate of production for the rest of
dent of Autocar
tracks
Railroad's
Pennsylvania
Members JV.
keep
plant and organization
the fact that
our
on
■*
optimistic report is based on "huge backlogs
The
?
our
on
produced, compared with the
employment and of 40. to 50% in goods
Philadelphia and
Stock Exchanges
Angeles
and
Development for Philadelphia County, in a detailed report covering
the Committee's activities, forecasts a postwar rise of 20 to 25% in
BUCKLEY BROTHERS
;
inside
Committee for Economic
Percival E. Foerderer, Chairman of the
Son, Inc.
Revised Memos on Request
,
Thursday, April 4, 1946
FINANCIAL CHRONICLE
THE COMMERCIAL &
1518
Locust
Street, Philadelphia
Private telephone wires to
2, Pa.
New York and Baltimore
Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
Consumers Public Power District
France Seeks
WESTERN DIVISION BONDS UNDER PRICED
IN MARKET
'
Exchange Holdings.
By WILLIAM F. MILLS
Usually, between ,two. public revenue bonds of similar rating, cou¬
and maturity, and whose issuers derive revenues from; the sale
same,type of service, the
bonds of the project showing the
the
greater
after bonds began to be traded
in the secondary
market that
the price differential appeared.
coverage of debt
sell
at
somewhat
will
service
higher
prices than the bonds of the proj¬
ect
with
the
lower
coverage.
The
This situation is exactly reversed
in the case of Consumers Public
Power
District,
Western
shown
Nebraska.
System
better
has
this price
sell
only
was
usually
given
for
differential is that the
System
is
the
larger,
experience in
comparable
are so
many
For the 12 months ending Dec.
31, 1945, on the basis of revenues
outstanding and the supply ? is
usually fairly large.: In the case
available
of Consumers Public Power Dis¬
1.73
v
debt
times
showed
debt
service, re¬
the Western System
etc,,
showed
service
and
1.65
tricts, with Eastern Systems out¬
standing in the ratio of approxi¬
mately seven ;to one to the West¬
erns, the Westerns still sell under
of
System
coverage
Eastern
times.
With minor
variations this difference in cov¬
between
erage
Eastern
tained
Western
Easterns.
and
Since
Systems has been main¬
since
the
consolidation
writers
of
Systems
rates,
Bonds
issued
denture,
visions
have
both
the
same
and
for both
Systems.
were
out in July,
no
ferential
inal
1944,
When
Declares
Systems,
two
to
to
eliminat¬
separate
Systems.
consolidating both into one
Public
Power
Dis¬
trict of Nebraska issue should it
brought
be possible to refund the
pres¬
ent bonds on or after
July lr
orig-
offering between bonds
the
bonds
the
seem, reasonable
Consumers
price dif¬
made in the
was
the
are
.
all
and the Directors
consideration
give
Board of
.
the present bonds
'
would
ing
Directors of the District
same
it
pro-?
a
on
Since
are the same for both
to application
issuance of addi-i
the
identical
are,
in¬
and
revenues,
tional bonds
least
with Easterns.
essential details of
par
Systems
same
East¬
that West¬
seem
should sell at
erns
relating
of
,
-
of
under ithe
than
coverage
it would
ern,
coupon
maturities, and call fea¬
tures.
are
identical
under¬
to differ¬
In
greater
a
Bonds of both Systems of the
Consumers Public Power Dishave
original
saw no reason
price between the
two
Systems, and
since
the
Western has consistently shown 5
in July, 1944.
1 trict
the
entiate
the Consumers Public Power Dis¬
trict into the two major
>
of
1949.
Overselling Charges
Keats Are
on
:
,
,
"An analysis of the
surveys show that
spread and flagrant," he Said>
•
centage
the
on
lower
James H.
the
overcharges
*xlm*
h
wide¬
are
of
directors
of
the
...
a
shows that all
types
and sizes of stores charge
over-ceiling prices," Mr. Eggert
said, pointing out that the study
shows that from
*
I—"Illegal prices
of meat
in
a
on
cuts
some
twice the ceiling and
are
few instances three times the
legal price.
.
coast-to-coast:
—
*
2—"Over-ceiling^ prices
were
charged in 83% of the stores.
3—"68%, of the cuts purchased
were over the
ceiling by an aver¬
age of 29%.
4—"The average
all cuts purchased,
over-charge of
including tnose
ceilings, those sold at
ceilings, and those sold over ceil¬
ings, was 20%. %
\
sold
below
5—"The
black, market inflation
in meat is increasing."
Scott, Redmond
NEWARK,
N.
m
Archibald
B.
Roosevelt,
with
and
Cross, LeHoy A, Frank
Wilbur'
J.
Fippinger—all
ness
were connected in busi¬
with Mr. Roosevelt prior to
is
Municipal bonds; it
announced.
The
firm
new
opened for business April
Prior
the
serving overseas with
Infantry Division, Col.
Roosevelt,
son
of the late Presi¬
dent Theodore
Roosevelt,
was
partner of Roosevelt & Son and
President of Roosevelt & Weigold.
Inc. Mr. Cross became associated
with Mr. Roosevelt 21
years ago,
Mr. Frank; 17 years and -Mr;
Fip¬
pinger 9
years ago.
^
Teletype
;■
PG 496
Benjamin Franklin Hotel 5s 1960
max¬
Belleyue Stratford 5%s 1935
Pittsburgh Hotels 5s 1962
Bulletin ; reports
France's gold stock at more than
Phila, Transportation Pfd.
$1 billion, nowhere in the above-
Phila, Transportation 3-6s 2039
mentioned
French
statistical
re¬
Phila. Western Ry. 5s 1960
view and its many tables is there
any information on France's gold
and dollar holdings.
Samuel K.
John Kb Peitick Is
Members
Teletype '
A. M. Kidder Partner
M. Blum
John
Major
Phillips & Co.
Philadelphia Stock Exchange
Packard Bidg., Philadelphia 2
%•
N, Y. Phone
'
REctor 2-0037
PH 375
DabnSy Penick, formerly
AUS,
connected
with
the
way, and those members
Blum Mission who had
here ahead pf the former
come
Chilton Company.
Premier not only raised no objec¬
tions to the American
delegation's
at
program
Savannah,
advantage of the
but
Publishers of
took
Iron Aye and other leading
opportunity; to
ject of
a
loan in
y::>
,v
negotiations have now
begun, Blum has met the National
Advisory Council. The French
called,/Sta¬
and Financial Situation of France
at the Beginning of 1946.
A
noteworthy
feature
of
this
Private Phone
COrtlandt
/
of the French. Mis¬
is that it introduces a new
before
we
were,
"Economist"
harder.
entitled to
are
American
puts
aid
last
Kidder & Co., 1 Wall Street, New
'
:
.
:
The French apply the
equalityof-sacrifce argument to their sac¬
rifices of World War 1 The
pamph¬
let states: "Countries in a more
fortunate
had
geographical
suffered
less
from
position
the
First
World War, and did not feel the
immediate threat of a second con¬
flict
while France yvas shoul¬
dering burdens incommensurate
with her strength in
from
.
.
the
First
World
recovering
War, and
democracies, had
double effect—(a)
They
normal increase iri
the
national; income;
held
a
a
retarded
France's
(b) They with¬
considerable
fraction
of
■
*
"
Dillon, Read Offers
Established 1895
Southwestern P.S. Pfd.
Dillon,
Re&d
&
Co.
are
Inc.
(Sco.
and
Members
offering 65,-
red
stock
%.
Philadelphia
Stock Exchange
Stock' Exchange Bidg., Phila. *2, Pa.
of
cumulative prefer¬
(par $100) of South-,
N. Y. Telephone HAnover 2-4552
•
Bell System Teletype PH 220
!
western Public Service Co. Hold¬
ers
of
the
50,000
outstanding
shares of 4%% preferred stock of
the company are being afforded
by it the opportunity (subject to
certain
limitations
and
Complete Investment
condi¬
tions)
of exchanging such stock,
share for share, for new 4.15%
cumulative preferred stock.
The
and
Brokerage Services
65.000 shares consist of the 4.15%
as to shares so exchanged
stock
and
of
3.70%
stock
as
to
Rakestraw, Betz & Co.
the
balance; The price for the 3.70%
Proceeds
Members
3.70 %.-'
from
the
sale
of
New York Stock Exchange
Philadelphia Stock Exchange
the
123 S. Broad St., Philadelphia 9
preferred will be used to
PhiladelphiaTelephone Kingsley 3311
redeem any 4%% preferred stock
not
exchanged
for
the
New York Telephone Hanover 2-2280
4.15 %
preferred.
pennsylvania
Pennsylvania
new
and New Jersey
jersey
Municipal Bonds
A. Webster Dougherty & Co.
engage in an"
In the past
Vice-President of
the New York Note & Share
Corp.
/
by
Allan N. Young & Co.
Lewis Tower Bidg., 15th & Locust Sts. j
F hiladelphia 2, Pa.
PENnypacker 1750
•
1421
Dolphin & Co.
Fidelity Philadelphia Trust Building
PHILADELPHIA 9
/
Municipal Bonds
CHESTNUT STREET
Philadelphia
Rittenhouse 2580
:
PHILADELPHIA 2
.
-
Teletype
PH
>
'■:*#>-«
Common
preparing for the second. These preferred stock is $103 per share
burdens, which represent the con¬ plus accrued dividends from Feb.
tribution of France to the common 1,
1946 «■ to
date
of
delivery!
defense of the
'•
VINCO
York City, members of the New
York Stock Exchange.
Associates today
long
000 shares
and—as the
it — fought
N. Y. C.
Trading Markets, in
,
because
war
PH 30 v'-V
to
7-1202
John Dabney'Penick
,
8th, Air Force, as of April 1st has
become a general partner in A. M.
presentation
sion
;
frM '!
Walnut St.* Philadelphia 3,
Pennypacker 8200
all, he leaves to the American
Government.;
gests how mpch the French deed*
^Review of the Economic
.''M;■
;
'•-7
boenning &. co.
1606
approach
has been interesting.
Blum asked for no specific sum
of money.
The amount to be lent,
or whether it is to be a loan
at
tistical
?&<$,'<}
"
Memo on request
■.
..$£.•%*.J.y?•'iv
Those
pf a ^30-
Stock
Common
the subsequent
'
Washington negotiations.
means
.
trade journals,
feel out American officials on the
best method to approach the sub¬
MUNICIPAL BONDS
UNLISTED
'
Court 2380
Retail Distributors
Red¬
E. Edward Scott, to
was a
a
Telephone
of
the
.
to
41st
not
other
Newark
J.—Scott,
investment business.
| Mr. Scott
of
does
women
than
Union Tr. Bidg.—Pittsburgh 19, Pa.
While the Fed¬
SECURITIES
Street,
'
under
and
less
Members Pittsburgh Stock Exchange
greater
eral; Reserve
spite the misgivings expressed by
the French at the
original con¬
ference was assured by the desire
arrived in Washington while the
discussions ?were still
This
men
worked
foreign exchange.
French delegation raised no
difficulties.
France's approval of
the Bretton Woods
program de¬
Savannah
France.
times
According to M. Blum, France
for
American loan.
C. S. McKEE & COMPANY
imum" all its remaining gold and
Governors of the Fund and Bank
an
pro¬
Prior to
is "resolved to utilize to the
the
for
from
people; there is some evidence
that they worked harder."
big money
makes that country
fos the pres¬
ent at least very
cooperative. At
the
Savannah
meeting of the
generous
mond & Co. has been formed With
offices at 1025 Broad
j
desire
saying that "they
Edwin J.
and State and
year.
France's
they Were in the
Institute, told the the war—has organized the firm
Committee that the black market of Roosevelt & Cross,
Inc.> with
in meats is costing American con¬ offices at 52 Wall
Street, New
sumers
more
than one and one- York, to deal in TJ. S. Government
"The survey
that the
France
Indeed; the United Kingdom loan
is still not out of the
way.
Formed in New York
American Meat
quarter billion dollars
in
mean
Congress
Roosevelt & Cross Is
McCall, Chairman of of whom
board
ask
three
was
than
of the same for France.
more
application of the "equality of
sacrifice" argument. The British,
it will be
remembered, have been
grade cuts
ordinarily purchased by the workingman."
States
Ex¬
King¬
Congress — is
to do
income
taking the economy as a
whole, labor output in the United
port-Import Bank can handle with
its present resources.
The fact
page-printed booklet
by independent market research agencies in 11 cities
during the last two months revealed that 83% of 1,803 stores
shopped
were selling meats at
over-ceiling prices, K. J. Eggert, Associate Di¬
rector of Marketing of the
American Meat Institute, told the House
Agriculture Committee recently.
?
"Illegal mark-ups are not limited
to the higher valued
cuts con¬
sumed by higher income
groups.
As a matter,of fact, in some areas
the overcharge was higher in
per¬
than the
more
This he does by
Widespread and Flagrant
A survey
considerably
retarded
RETAIL DISTRIBUTION
the war,
long-term loan is, according to
reports of
recent
weeks,
to
general
; TRADING MARKETS
ductive investment.
press
Administration
the
than
most
credits because there
,
that
it difficult for the
prices
of identical coupon and
maturity.
serves,
a
"unique" makes
New York City's can
be obtained at somewhat cheaper
point lower than Eastern Systems
for
France's standpoint, its place in
queue
is behind
Britain's.
What France wants in the
way of
the
that the loan to the United
dom— now before
other bonds.
;
most other countries,
France is looking to the United States for* substantial
economic aid
on
credit.
Unfortunately
from^
follow
debt
WESTERN PENNSYLVANIA
WASHINGTON, D. C., April 3—Along with
$36,000,000 bonds outstand¬
ing as against $5,000,000 Western
Systems. This does not seem to
consistently
System
one-jhalf to ;a
from
It
some
service than has the Eastern Sys¬
tem
and
yet
Western ;
bonds
Systems.
reason
Eastern
The
coverage' on
two
Loan
a
Former Premier Leon Blum Has;
Already Met With National Advis¬
ory Council, But Has Not Named Amount Desired.
No Information
Given Out on French Gold and Dollar
■
pon
of the
1793
70
New York
BOwling Green 9-8184
Telephones:
■
''V"
Philadelphia—Pennypacker 46441
New
Bell
York—HAnover
2-9369
System Teletype—PH 299
•;>}
;v
1794
.
"On,the closing date of the cur¬
assessment
tentative
rent
period,
15,L1946, the last' day for
the filing of protests on. tentative
Estate Secu
valuations for the fiscal
assessed
numbered
Upward Trend in Real Estate Values
This
has
column
continuously
almost
taken
the
as
real
in
trend
upward
activity in sales
SOURCE
condition of the real estate mar¬
ket.
:
'
Bronx
Manhattan
»
1940-41—
18,773
5,840
New York for the second succes¬
1944-45_lu..
1945-46-_1
20,161 '
20,481
21,734
20,780
$72,869,470
for the fiscal period July 1, 1946;'
to June 30, 1947. The total of tax¬
valuations for
ically illustrates this condition:
.
"Thedownward
Oct. 31,
of
1942-43___
1943-44
the
1945,
Department Feb.
first
the
since
increase
4)73,225 and signaled
reversal of
a
Si BLOCKS OF
REAL ESTATE
WANTED
15,386
5,340
6,118
:
!
-
11,180
17,320
3,186
1,355
280
r.
827
-
'291
1,303 ;
,
6,549
4,300
796
,304
472
v'169
45,449
•
.
"3,232V
33,820
22,811
;
:
of
blocks
securities.
commercial
•
banks
as
whole should not increase their
bond
holdings beyond the amount
already held.
Our commercial
banks are organized primarily to
finance" the current requirements
of industry and trade, and their
operations
are
dislocated
and
their credit supply is excessively
out of balance because of current
aggregate
enormous
holdings
of
government bonds. Our need is to
make every proper effort not only
to prevent a further accumulation
of inflationary bank credit based
on government bond issues but to
cut down the amount of this type
of credit that
now
exists."
A suggestion was offered
Gehle
time
that
this
the
by Mr^
government some
year
now held by the banks
provide an opportunity to
the public for; the investment of
its new savings, which are cur¬
rently "increasing at the rate of a
billion dollars a month. *,
Mtmbert New York Stock
Member* New York Curb
■
40 EXCHANGE
PL., N .Y.
Exchange
Exchango
Dlgby 4-4950
'
\
Boll Tolotypo NY
,
Z i
1-953
KANSAS CITY, MO.—-Merrill
Lynch, Pierce, Fenner & Beane is
opening an office at 1003 Walnut
Street....Thomas Bates Huffaker
wil be resident manager.
Assodated with the new branch will
•.
Alexander
R. Silberberg
an<|
Hugh Van Home.
Mr.
Silberberg was formerly with J.
S. Bache & Co., in Kansas City. 'M
Opening of the new branch was
be
Leonard
previously reported in the "Chronicle" of March 7. C
;.// iC'i
Trenhoim Heads
according to the speaker.
ago,
Though the United States Treasury's war finance program ended More than a third of this amount
on Dec.
31, with the successful Victory Loan, there still remain is in -Federal securities, nearly a
third is in currency and checking
billions of dol- ' ■
■
"
^ "i:""
'
11
■" .-■■■■■■
11''
Gehle.
"More than 50,000,009 in¬ accpunts^ahd fhe balance ih vari¬
lars of "undi¬
dividuals responded to the appeals ous types of savings accounts.
gested" Govmade by the Government to their
"These savings are bound to in¬
e r n m.
war-time patriotism and-bought crease," Mr. Gehle said, "and as
b •> o f n
bonds.
However, they did not by far as possible we want them to be
throughout the
a
wide margin absorb all
n a t
the soundly invested. Responsible
i o n
bonds that were offered, and there leaders of banking, industry and
according t o
still faces us the need to distribute labor, should work together for a
Frederick W.
holders
a
substantial
coordinated
effort in this, direc¬
the
tion-—not
for; certain
Chase
of
ultimate
to
part of the war loans. '
i
Though our commercial banks
were severely restricted in making
bond subscriptions during the war,
they were the principal market
bound to confront them from now
they
were
Federal
issues
sold by the- Treasury,
and this accounts for the
Ad^
after
swollen
only
tional economy
to help the- na-i
through "placing"
government "issues :/ permanently,
but also to guard thrifty investors
against certain dangers which are
on.
Since the close of the
.
war we
have already!seen many signs of
total of government bonds v and the appearance of unscrupulous
notes$107,000,000,000 r— which cheats, and swindler?, and new
this system already holds.'' Then, cases of schemes to lure unwary
Club on Mar.
27. Mr. Gehle,
too, business firms and corpora¬ investors are being reported daily
who was New York State Chair¬ tions used their surplus funds and to protective organizations.
"If there is one thing we need
man
of the Sixth, Seventh and subscribed heavily for each issue
Victory Loans, said that this vol¬ of the war loans. The purpose of today, it is a sound concept of
American business is to manufac¬ what" is required to insure the fi¬
ume of bonds is in possession of
commercial
banks,
the Federal ture and distribute goods and hot nancial health of our country.
Reserve System and various busi¬ to make permanent investments, And if there is one thing we can
ness enterprises/ and.' that it. has
but business organizations now count on, it is the readiness with
which average Americans will re¬
not yet found its way into the
hold twenty billions more govern¬
hands of permanent investors.
spond . to ^leadership which they
ment securities than they, held be¬ believe in.
We therefore should
"The eight war loans that ended
fore Pearl Harbor, and in time a undertake a well-organized, wellwith the Victory Loan were ex*
traordinarily successful," said Mr. good part of these will find their sponsored nation-wide effort un¬
der responsible direction: (1) to
a
t
Lawyers
insurp
At F.
F. vS,
•
j
a
sound relationship of the
REAL ESTATE
sociations, organized labor, better
ment
ury
Seligman, Lubetkin & Co.
Members New York Security Dealers Assn.
-v.
•
Incorporated
-
" ",
5Members New York Security Dealers Association
Broadway
HAnover 2-8970
41Broad Street,
r
New.York.4
•-./
institutions like the Treas¬
Department, the F.B.I, and the
Securities
&
sion, have
an
fare
*
REAL
r
,
Beacon Hotel 2-4/58
/
Broadway Barclay 2/56
Brunswick
Hotel
Montgomery St., San Francisco 4
61
&
62
EXbrook
.
vv
Astoria
N.
Com.
Y. Hotel Statlcr Co. Com
Roosevelt Hotel NY Com.
Corp. Com.
Savoy Plaza Class "A"
870 Seventh Ave. Corp. Com,
J. S. Strauss & Co.
SF
Com.
Lexington, Inc. Com.
Hotel Waldorf
Broadway 4^/58
Hotels Statlcr Co.
Site Co. Com.
Copies of our statistical
Ask
;
55
STOCKS
suggest
Westinghouse BIdg. 4/48
rele.
EQUITY
special consideration at this time "of Real
Estate Equity Stocks. Among those we believe to be particularly interesting are the following:
-Z •/ « '
We
/; Commodore Hotel, Inc.
Broadway Motors 4-6/48
165
ESTATE
,
/
1285
!■."
-
memos
.
~
will be sent on request,
for List C21
Amott,Baker & Co.
Incorporated
150
Tel.
Broadway
BArclay 7-2360
*
New York 7, N. Y.
Teletype NY 1-588
Exchange
Commis¬
opportunity for joint
both, of. the country and its
people."
1
govern¬
service in the interest of the wel¬
HAnover 2-2100
,
Teletype NY 1-1203
Firm Markets:
Bankers and trade as¬
exchanges, together with
L i. GOLDWATER & C(L
*
L, Tren-?
sociated with the firm/ Mr.
holm will
Tren-^
the corporate
trading department. In the past
he
manage
the
with
was
First
Boston
.
.
>"
Now With /
Buckley Bros.in L. A.
-
(Special to The Financial
-
Chronicle)
; los Angeles, calif.—Aus¬
tin- Fojfc has. become associated
Buckley Bros., 530 West 6th
formerly with
Fewel & .Co., Barbour,.- Smith 8c.
with
Street. Mr. Fox was
Co. and Hurry,
Hilgers & Co.
In
past he was an officer of Lux-
the
ford & Co.
Doyle Mfg. Go.
Stock
on
Market
Burr 8c Co., Inc.,
and
Hirsch 8c- Co,
Dempsey & Co., underwriters,
public offering April 1 of
shares of 60-cent cum¬
ulative dividend ($8 par) convert¬
ible preferred stock of the Doyle
Manufacturing £o., fabricator of
precision tools. The stock, priced
at $10 a share, is redeemable at
$11 a share, and each share is
convertible into two shares of
common stock/
Under ; a /prefer¬
ential
offer, stockholders
sub*
scribed to 12,414 shares. Proceeds
will be used to increase working
capital.
V
made
a
37,586
new
Fitz-John Porter Dead
Fitz-John
Porter*member
of
the law firm of Davis Polk Wardwell Sunderland and Kiendl, died
of
heart attack at his office at
a
with
business bureaus and the security
Stocks & Bonds
39
that William
announce
holm, /Lieutenant
Commander;
USNR, has been released from ac¬
tive
duty and has become as¬
Porter
of. savings.
Real Estate Securities
Co., 14 Wall
City, members
of the New York Stock Exchange
government debt to our national
economy,;and (2) to educate the
American public for the protec¬
SPECIALISTS
New York 6, N. Y.
Moseley &
Street, New York
tion of its unprecedented volume
Offerings Wanted
Dept.
S. Moseley Co.
•
-
SHASKAN & CO.
Lynch Opening;
Kansas City Office //}
:
issue a popular
"peace loan" at rates of interest
that would attract long-term pur¬
chasers,
the
dual
purpose
of
:
-
ill
Bank, and State Chairman of Bond '*
The total liquid savings of in¬ Corporation.
Drives, Points Out Danger of. Commercial Banks Taking Up Floatdividuals in the United States have
ing Supply and Urges Encouragement of Private Bond Purchasers g now, reached the unprecedented
amount| of : $146,000,000,000, £ or Austin Fox
and Protection of Their Savings.
Suggests a New Long-Term
three times more than it was six
"Peace Loan" at Higher Interest Rate.
years
the
se¬
to
ing issues
Bonds Undigested
vertisers/</
real
unlisted
.
and to
F. W. Gehle of Chase National
nancial
instances
.
whereas the -commercial banks
a
51,101
52,814
268
.
2,415/
€.500'
4,600
13,337
;£
New'York Fi-...
prevailing of¬
fering prices for cer¬
estate
59,127
Holds Billions oi Government
eon:
above
lected
8,297
15,071
5,845
Bank,- speak¬
ing at a lunch-
prevailing bid prices
tain
61,575
offered
■
National
above
pay
some
'si; ■
-552
.
which 'would be to refund matur¬
The
and in
/Total
Util. Corp.
2,016
8,259
Gehle, vicepresident
o f
SECURITIES
will
2,308
circum¬
as
"These in all probability will be
'■
"
1,|
This amounted to $88,*
valuation.
:•
:: r.
/ trend 4; that
that date in the tentative assessed
We
-
Richmond
10,719 f
19,'8 39
1931, continued unin¬
Tax
of
/
1946-47-^,
terrupted until the announcement
by
PROTESTS
10,617
24,222
:
the taxable status date;
on
OP
Queens
this
period is tentatively fixed at $15,*
975,847,166.
I
started
last
The following table graph¬
year.:
Brooklyn
5,655
1941-42
sive year, amounting to
with
compared
as
Real Est. of
in the past few
has been further confirmed
by the increase in the tentative
assessed Valuations of the City of
assessed
This figure represents a drop
33%
of
NUMBER
AND
since 1929—further
evidenced by the
years
able
one year
any
confirmation of the very; healthy
•
"The
,
22,811-This established
low in*the number of
protest ' applications received, iqr
in
pointing out the investment merits of sound real estate equities pro¬
ducing astonishing yields in the face of declining interest rates and
rising prices.
That real estate-has finally come into its own again
after an unsavory past of grossly inflated values, foreclosures and
reorganizations, might best be illustrated by quoting from Mayor
O'Dwyer's message presenting^
New York City's executive budg¬ the downward spiral that lasted
well over a decade.
et:-;''
zX.-iZ
/
;
estate values
record
a
9®
forefront
filed
protests
1946-1947,
period
into the market
require.
,
way
stances
Marchj
Real
Thursday, April 4, 194$
THE COMMERCIAL & FINANCIAL CHRONICLE
,
15 Broad
the
St., New York City. Mr.
was a
leading authority oh
"blue-sky" law, which deals
security regulations in the
various states.
v.i;. -f > vSp! /:
,
James Scott
James
E.
Opens Firm
Scott; has
formed
James E. Scott & Co. with offices
at 70 Wall
to engage
Street, New York City,
in the investment busi¬
ness. /Mr. Scott
in the past was
with the New York office of R. S.
Dickson
&
Co., Inc.,
and with
Kennedy, Hall & Co. Prior there¬
to he was a partner; in James E,
Volume
163
Number 4478
'
•*
V
-
THE COMMERCIAL & FINANCIAL
0
;>\VJ
v
S
■
■■■■■■
•
•.
,
m
>"7 ~
:
.
...
,
PUGET SOUND
v
t.
1
i
v
»
r
■»
*•
'4
J
i>
EARNINGS
AND
Net
$4,017,-
were
to" the
1945 decrease in
net
net
were ac-
greater than those for
1944; before the special tax
1944. After
the
saving in
deducting full dividends
Prior
amounted
_
to
$1.52.
.
on
The
RETIREMENT.
W.ftSBr
banks
on
March
,
and
September
1,
aggregating
$1,125,000, leaving
balance outstand¬
a
500 of its bank Joans and made
con¬
struction
expenditures of about $9,200,000, all from earnings and the
use
of available
or more
ings
chase
proposal of $18 per share for
the Common Stock
and the
redemp¬
tion of the Prior Preference Stock
at
$110 per share. As the Company did
receive evidence of the district^
ability to perform, the proposal was
not
presented to stockholders.
%
As
-soon
position
to
as
do
the
so,
districts
are
in
a
Power, is endowed with splen¬
pay¬
Federal,!
to
ated
territory served by Puget
did economic and
advantages*..
,
of
*
■*
-1
.**
*"
[•
.
have - established
:
net earn*
Washington.
tion is
atten¬
this
re¬
■
high levels of performance
three
principal fields: viz.,
new
in
•
SITUATION-Among
vitally affecting the Com¬
pany's welfare, the report fully and
laws granting substantial
tax
subsidies
public power.
consumer
tured
goods produced and fur¬
development of the State's
agricultural and other resources
point the way to expansion of
existing industries and the establishment of
,
of the 1945
new ones.
■
>
■
Excellent
portunities
copy
Growing
markets for manufac¬
ther
to
•
A
development, Yoteigfli
trade and aviation.-
of Federal and State
enactment
,■
v
foreign trade
presented
.
op¬
the
are
to
Puget Sound
re¬
port to stockholders will
be sent on
request to
econ¬
on
the postwar period, move to
Administration oper¬
-
other factors
sweeping
National
focused
now
about^5l/^%, and the Boriv
and other benefits and immunities
are
CVA is
Puget Sound Power &
Tight Company, Main
charged with responsibilities affecting
est route to
is
area, as the short¬
the Orient. There
probably
more
widespread
interest in Alaska
today than
history of
Office, 860 Stuart Build¬
omy!' aspects than TVA.
I
*f
^i X
\
1-
V "i
Operating Revenues
Electric'Customers
i...,/.,f;,y'
Peak Demand—KW.;...;
Average Rate
per
...
t....
*
Passengers
.i..
Over 1944
$2,059,982
250,242
.9,456
111,118,336
423,300
45,800
Seattle-Tacoma
gateway;;
Increase
7.7
3.9
!
.Oriental
airline
across
North Pacific.
:.,:.6.e:,y
12.1
»
Washington, the State, which
so
prominent in pro¬
ducing for war, will continue
'.
2,695
306
12.8
to
1.64
7,942,569
.08*
491,284
4.7*
grow
and prosper with peace.
6.6
Decrease.
Sixty Xears ofiPublic Service
PUGET SOUND POWER & LIGHT CO
Frank
an
the
has been
,V.i>...,,/
.................,
foreign avia¬
will become the terminus of
Rural
.*
territory.
Domestic and
the
'Increase
KWH—Residential and
Rural Customers—cents
Bus
V
,
Annual .Use per; Residential and
that
before in the
tion will make
great advances
in 1946. It is
anticipated that
1/45,750,208
Energy Sold-KWH
Customer—KWH
,
190
$28,649,520
,.........,....
...
ii
.
-V;.
HJ
.v"'
ever
ing, Seattle, Washington,
NEW HEIGHTS ATTAINED
s.
^
McLaughlin,
:
future for
a
Public
abbut 5%,
frankly discusses the extent and na¬
ture of the
existing and potential Com¬
petition from governmental agenda.4
This
competition has resulted because
,
^
••
manufacturing in the States of
the average
taxes were,
entirely, tax-free,
of the
•
outstanding results
achieved in war
production
PUBLIC POWER
con-
s
1
The
industrial
r-
'?r*
geographical:
-yv.:
it is understood that
ma¬
The
These
times the
while
TVA itaxes
tatives' Rivers and Harbors Committee.
The CVA measure is more
far-reaching in its -planned
resources.
labor,
gion because it has attained a
real
place in the industrial sun.
It is felj that this State
will, in
ofRepresen-
During the
a pur¬
than"
neville; Power
before the U. S, Senate Commerce
Committee and the House
and
Washington
natural
chines, materials and markets.
per
Utility District
area,
Valley Authority
amount
revenues*
now
•
of $2,l46,«
share of Common Stock.
The Company's .taxes for 1945,' as
shown in the Income
Statement, were
26.4 cents of each dollar of
operating
/
Columbia
the public utility districts in the
Company's; territory presented
V
a
of
State
It is rich in skilled
in¬
payroll charged to
operating expenses, and amountedto
$3.47. pet share of the Common Stpck,
av-
economic, social and cultural wel¬
current assets.
PURCHASE PROPOSAL.
year
not
of
The
abounds in
ments
the total
ii,,
$7,800,000. Taxes
payable for the year
an
,
WASHINGTON
-
State and local governments exceeded
COLUMBIA
VALLEY
AUTHORITY.
Identical bills for the" establishment
1945
ing on December
31,1945 of $2,812,500.
From
January 1, 1943 to December
31, 1945 the Company retired $3,687,-
kwh than the average
in the TVA
sumer
of.
•
540, or37.6%ove*
residenrial' and rural .custfrmcrs went down again
rate per
1
OVER
the Company and
1944.
pany's average domestic customer used
44% more electricity at a 10% less
Company
made payments on
its serial notes to
to
.the State
would be ex-'
crease
paid in 1945 at'
the annual rate of $5
per share. Four
cents per kilowatt-hour, or less than,
dividends of 30 cents per share each • one-half the national average. The
were
paid on the Common Stock,
average annual use of electricity of
A dividend of 25 cents
per share was
such customers was more than doupaid on February 15, 1946.
hie the national average. For the 12
months ended
June 30,1945 the ComDEBT
measure
$7,853,166,
.
the Prior
A NEW FRONTIER
1945 amounted to
^
dropping
40% under its 1935v
1939 average, although other living costs have i«creased 32% ,in the same periods The
year-end average rate was about £.6
were
of this
TAXES;
erage rate to
;
for transferring,
purchase, the
or
its stockholders.
con-
MORE TOR LESS; Puget Power's
,
Quarterly dividends
Preference Stock
' f
a
vast fegton
contemplates
private utilities in the region to publiq
ownership and operation. The enact¬
tremely harmful
.
earnings per share of Common'Stock
in 1944, before the
special tax saving,
program
ment
Preference
Stock, the
earnings per share for the Common
Stock for the
year 1945 were $1.53, as
compared with $2.05 in 1944. Net
complete
by^ condemnation
elusion of»such litigation will enable
the districts to furnish the Company^
with legal and financial evidence of
ability to perform., In such event, the
Company, in accordance with its previously announced policy, would submit the'proposal to the stockholders
for their consideration and action.
tually $16,395
on
*'
a
proceedings will? be instituted
determine the
validity of'the pr6-
e
earnings,
earnings for 1945
,
people of the
affected. The CVA bill
fosal and; the legality of the bonds to
issued, and that
favorable
decrease of
$1,127,605, or
21.9% under 1944.
However, in 1944 there was a special
tax
saving of $1,144,000, but none in
1945, such saving being about equal
Thus,
J^—-
.'i
to
earnings for
1945
^ /1 V
*
yc.cv
court
DIVIDENDS.
329—a
"""
v
fare of the
POWER & LIGHT REPORTS
This feport not
only reviews the Company's operations for the year 1945
but it also commemorates
sixty years of pioneering, progress, and development
in
making electricity available to more and more people, in an ever
expanding
field of usefulness^ at
constantly reduced rates.
v
'.'.it
NET
1795
•
,
..
CHRONICLE'
President
m
H
t
FINANCIAL CHRONICLE #
THE COMMERCIAL &
1796
Price regulation can do nothing to
or
diminish
the
forces
fective,
necessarily go with it, it must be
remove
recognized for what it is—an at¬
tempt to deal with symptoms, not
causes—and must be supplement¬
tending
war
while minimizing the dangers
Valve
Says Price Control Ties Down the Safety
Control Limitations and
Guaranty Survey Points Out Price
The
;.
Rises Be Dealt With Rather Than the
Holds That Causes of Price
:•'/
.
^
sis
it is
artificial means
an
which
As long <as 1
place.
be
regulation continues, it /should
administered
with
.
be used
tainment of this objective
"Guaranty Sur¬
issue of the
vey," its monthly review of busi¬
ness
and financial conditions in
Limitations of Price
this
T
lished.,
perform,
may
price control to do more than it is
capable of doing. It is a temporary
is To
cushioning device, not'
far as/possible, the
as
is to be gained, and
be lost, by expecting
"Nothing
-
much
correc¬
a
mechanism. in: any. sense.
tive
function for which it is intended;
objective of the stab¬
"The main
princi¬
ple. It must recognize production
as the primary aim and must yield
where ; > necessary
to
ground
achieve that aim.
"
•
/
Control/
"If postwar, nrice control
realistic wage-
bility to give effect to this
helped by such unwarranted
assumptions'as that prices can be
permanently held at an arbitrary
level or that upward
pressures
will automatically cease when re¬
conversion is completed.
'y/'
transition,;not
as
a
weapon
4or 'holding the
line,'" states the Guaranty Trust
Company of New York in the cur¬
smoothing the
rent
will not
be
instrument
an
as
minimum
price, disturbance—should be
constantly kept in mind. The at¬
adaptability based on a clear
recognition of this basic fact.-'/ It
should
ilization program—thd restoration
of free markets with a
those
"Survey" continues.
'the
price policy based on the princi¬
ple that reconversion cannot be
stimulated by a 'squeeze' of prof¬
its between rising costs and sta¬
tionary price ceilings. It must be
administered with'enough flexi¬
of
flexibility
a
and
for
causes/
"It must include a
readjustments^"
necessary
normally take
:■
useful, but in the final analy¬
of preventing the price fluctuations by
be temporarily
"Price control may
that
by measures To 'control
ed
Symptoms.
Thursday, April 4, 1946
to
raise
prices.
On
its natural effect
contrary,
the
ished, and consequently the need
demand.
"A
"
'
soundly
conceived
priceshould
be based on a clear recognition of
its
own
limitations. - Not
only
should it be flexible enough to
avoid,, as far as possible, interfer¬
with
ing
reconversion,
but
it
should
be v progressively
aban¬
doned as reconversion approaches
completion.
It would
be
both
control
policy,
therefore,
useless and dangerous to wait for
the
pressures against price ceil¬
ings to disappear, for the wartime
accumulation of purchasing power to be absorbed, or for supply
and demand to balance under the
ceilings.
Whether such
a
balance
place while price
•' Condensed
Including Domestic and Foreign Branches
.
50*
NEW
»/'1
*
*
-«
»
I
•
.
j
^
*
«
f. {"Vi 4<' J, &
**
A
(in dollars
-
^
Statement if.Condition 'as. 'pf March 31, 1946
,
;
.
*■>
VT'
.
,
,
disappear—that is, when indus¬
try has. had time. to : reconvert,
.
f
;
the
when
l'/'**<
^
j
omitted)
only—cents
r
*
i\$
t
i
When those conditions
bulk
of
the
manpower
has been released from the armed
-
services, and when the most press¬
LIABILITIES
ASSETS
Cash
Due
and
Bankers
\
Banks
from
/\
,
.
.
and
Obligations
t
2,577,056,576
*
Other Securities
Acceptances.
and
.
r-
....
Acceptances
:
s
Stock
.
'
....
Essentials of Stabilization
"Price control is only one part,
and not the most important part,
of a sound stabilization policy. If m
our industrial system is to be re¬
stored to
«
Total
.
xpenses, etc.
Dividend ,
.
.
.
.
.
.
.
.
.
.
30,821,686
.
.
.
.
.
;
.
.
8,029,189
Surplus
.
.
,
.
Undivided Profits
Ciffotal
$5,248,215,688
33,992,115
supply side, the principal cause of
instability is the prolonged inter¬
ruption of output of consumer
goods due to the war. The remedy >
is to be found in the swiftest pos¬
sible
•
price
upward pres¬
on
operation, a transition' that
should take place in a compara¬
tively short time * if unnecessary
impediments
$5,248,215,688
Included
"
and bank deposits that has
from nearly 16 years of
deficit' financing by the Govern¬
ment. One step toward stabiliza¬
tion on the demand side is to put
money
resulted
stop to the deficits. Another is
modify the Treasury policy of
interest rates to lower
and lower levels, a policy that has
made Government obligations un¬
attractive to many individuals and
corporate investors and thus has
'monetized* a large part of the
public debt by forcing it into the
banks and making it the basis for
the huge increase in deposits.
a
to
reducing
"These
'
.
g
7 )
t>-'
,
-c*!
k,
Chairman
*
-
<•
*
^
'
w
*
!>'
of the Board
0
.
j*
?
ft'
5
-
1
y*
*
•
* K
Vi."
■
1 j
l'
•»
.
,
+
*■
r
Gordon S, Rentschler
S•r"
- •
.
yf
' '
"
"
.
President
W. Randolph Burgess
'
''*•
}£ 1
i
k
Vice-chairman of the Board
Wm. Gage Brady,
Jr.
CITY BANK FARMERS TRUST COMPANY
Head
(in
of Condition
!
of March 31, 1946
as
tying down the safe¬
ty valve is not only futile but
dangerous."
:/
other means,
Minnesota Ring. &
Goldman, Sachs & Co. and Pi¬
Jaffray & Hopwood headed
offering April 2 of 72,000
shares of common stock of Minne¬
per,
an
coated
been
sota
at $44
Cash
Due
and
Banks
from
„
i*,
$. 25^193,400
U. S. Government Obligations
(Direct
or
Obligations
and
.
in
.
Loans
1,168,993
Securities y
and
Federal Reserve Bank
Bank Premises
/
.
•;
.
^
Other Real Estate
.
.
...
2.679.782
*
600,000
,
„
■
.
,
w
.
ed hot sales, compared
in 1925.
^
"
* '
"
^
'
.
'
v
t
^
$192,127,921
v1 i ^ t'* ' '
'
! t ''v
1
Total
at
;
10,000,000
7,893,926
27,893,926
•
•
1'
')
,r * '
'i*
'«■
l
"
$65,507.768 of United States Government Obligations
Lnited States \\
ar
i
)
'j t
\
a
i
are
deposited
Loan Deposit and for other purposes required
or
;
to
;
V
'
■
■
ji'.
'*
Chairman
:
•
■**
'fi
.
secure
of the Board
Gordon S. Rentschler
'
;
»
.
"
.
;><
consolidated
net
$63,548,377 and the consolidat¬
net profit at $3,649,342.
The
consists,
Hayden, Stone & Co.
tr
Street, New York City, members
of the New York Stock
j
'i**1
f
i
^
i
;
.
:'-
r
:
Lindsay Bradford
v-/-'i /•
;
ancing
great as to impede production
employment. It is doubted
whether price regulations can be
effectively enforced in the absence
of wage control and rationing. To
the extent that they are enforced,
it is feared that the narrowing of
the margin between
prices and
costs will weaken or kill the in¬
centive to produce.
war
Mr.
sultant
Exchange,
W.
associated'
become
department/
Howard
in
Government
the
was
During
the
Chief Con-
renegotiation
contracts
for
/
of
the
Transportation Corps of the War
Department in Washington. The
Transportation Corps in general
handled
the
renegotiation
of
companies producing locomotives,
a wide variety of machinery, steel
And it is ar¬
gued that, as long as price control
continues, and in so far a$ it is ef¬
has
with the firm in its industrial fi- ■:
and
it
^
Howard
Vincent
that
announces
so
$192,127,921
.
:
Hayden, Stone & Co.,'25 Broad {
readjustments and that the time
required for administrative agen¬
cies to make such readjustments is
the
)■■■'.■ C- President
•
the
Vincent Howard Joins
example, that the maintenance
of sound and equitable cost-price
.
t
permitted by law.
(member federal deposit insurance corporation)
1945
company's capitalization
solely of common stock.
extent on the view
upward price pressures are
for
'
-
ed
powerful than is generally
supposed. > A
more
important
ground of opposition to continued
price control is the contention that
it. creates evils greater than those
it aims to avert. It is pointed out,
4,837,468
.
$10,000,000'
;
.
For
with 94%
sales of the company are reported
relationships necessitates constant
115,196
....
some
diversified in recent years
less
.....
.
2,196,576
,
3
that
3,313,724
Other Assets
Total.
,
.
Capital
Surplus , . . . , «
Undivided Profits:^
/
•
1,074,802
.
Advances
ReaL Estate
'Stock
Reserves
.....
.
based to
$159,396,527
,
Loan Deposit $50,496,162)
155,785,748
,
*
%
so
that in spite of increased sales of
abrasives, they accounted last year
for only about 20 % of consolidat¬
"Opposition to price control is
-Deposits
«j-.
.
*
(Includes United States War
Other Federal
of
Agencies.
Loans
■'
Fully Guaranteed).
LIABILITIES
.
_
abrasives for the past 40
: However,
products have
years.
Grounds of Opposition
ASSETS
Mfg.
Common Offered
rehabilitation program.
omitted)
dollars only—cents
promote that aim.
be taken to
Certainly price control alone cannot do it. Unless the pressure in
the boiler is being reduced by
need for American goods
Office: 22 William Street, New York
Condensed Statement
a
the existing price level, but they
are the chief practicable steps that
abroad is
acute, and foreign countries hold
more
than $6 millionin dollar
bank balances and probably even
greater amount in gold, while
large quantities of goods are being
supplied free under the relief and
•(member federal deposit insurance corporation) ••
,
^
•
of
features
Mining & Manufacturing Co.
3/16 per share. The shares,
offered are presently outstanding
end of/thn war, rind; the-reabsorp-i and are being sold by certain
tiori of veterans into the civilian stockholders for the meeting of /
labor force is far from comple¬ inheritance and state taxes and
tion.
Holdings of currency and related purposes. Incorporated in
bank
deposits are nearly three Delaware in 1929 to continue a
times as large as before the war, business started in 1902, the com¬
and there are outstanding nearly pany has been a manufacturer of
||
'
u,.
t
essential
true stabilization policy might not
be sufficient to 'hold the line* at
$50 billion of savings' bonds con¬
vertible into cash on demand. The
as
$1,220,227,485 of United States Government-Obligations and $16 470,568 of other assets are deposited
to secure $1,183,278,698 of Public and Trust Deposits and for other purposes required or
permitted by law.
1
side, the out¬
standing threat to price stability
lies in the enormous increase in
goods is swelled by more
than three and a half years of par¬
tial or complete suspension of out¬
put. Production of such goods has
increased only slowly since the
of March 25, 1946, except those of the Shanghai
and Tientsin Branches which are as of March 7, 1946 and of the Tokyo and Dairen Branches
which are prior to the outbreak of the War, but less reserves.
are
avoided.
are
"On the demand
sumer
Figures of Foreign Branches
,
normal peace¬
transition to
time
inflationary ' experience and
subsequent deflation and de¬
pression that followed World War
I and point. out /that the /forces
making for higher prices are much
stronger/now than they were then.
The accumulated demand for con¬
253,992,115
;
.
;
Regulation
continued
minimum of disturb¬
it is essential that the causes
as well as the symptoms of price
instability be dealt with. On the
ance,
the
.142,500,000
.
of
a
the
2,325,000
^ $77^00,000
Capital
4,101,969
.
2,411,424
Unearned Income . . . . .
Interest, 1 axes, Other Accrued
29,840,407
Other Assets
of permanent econ?
on the other.
existing ceilings as evi¬
dence .that strict regulation is the
only preventive of a ruinous up¬
ward surge of prices. They recall
sure
.
Branches
with
or
regimentation
control point to the
^
Other
and
.
Transit
in
'
for-
TT
Unearned Discount
„
Bank Premises
-Items
Rf^rvfs
*
7,000,000
•••'
hand
omic
"Advocates
6,600,000
.
Ownership of International j/
Banking Corporation
.. V'
.
-
one
9,812,953
Portfolio 6,069,779
normal mode of oper¬
a
ation with
can
5,917 953
.
Federal Reserve Bank
in
$15,882,732
.
,
^
/
.
"
.
Reasons for Price
6,019,663
for
.
.
Bills.
ances in
1,290,314,552
.
Securities
and
.
Customers Liability
.
•
»■
,
*
Bankers'
.
Real Estate Loans
'
*
„
102,673,022
.
/Loans, Discounts,
;v.
'181,278,463
«
ing foreign relief needs have been
met—price control will have per¬
formed its legitimate function and
should be promptly abolished. To
continue
it
beyond that point
would be to incur the danger of
breakdown and price chaos on the
$4,948,852,510
,
Less:Own Accept-
33,463,116
Municipal Securities.
and
/
\
.
Accept-
on
ances and
Agencies
State
Liability
Other Federal
of
.
.
(Includes United States War
Loan Deposit $1,001,642,473) •
$> 995,920,778
*.
.
U. S. Government Obligations
;
(Direct or Fully Guaranteed) .
;
Deposits
.
v
itely,
artificially low levels, thereby re¬
stricting supply and stimulating
conditions.
•
will remain
years
for control will continue indefin¬
certainly the control can do noth¬
ing to promote it. The most that
price regulation can safely do is to
shften the "impact of necessary re¬
adjustments by preventing or re¬
ducing the price fluctuations that
might otherwise be caused by
strictly temporary arid abnormal
0#<*: 5 5 Wall Street, New York
the
undimin¬
during
is to
control continues is doubtful, and
HW
purchasing
excess
strengthen and perpetuate the up¬
ward pressure by holding prices at
will ever take
THE NATIONAL CITY BANK OF NEW YORK
the
accumulated
power
jcastirtgs,
I
ships,
railroad
stock and supplies.
rolling
.
Volume
Number 4478
163
THE COMMERCIAL & FINANCIAL CHRONICLE
WE
Our new 5-year plan calls for the expenditurethe $120,000,000 in new plant
facilities, extensions and improvements in of distribution system, and
othfer additions which will further
assure a
to the Company's electric,
energy
gas,
continued and
dependable supply of
and steam customers.
This investment represents our firm faith that New York
wiU attract
\
than
over
people, do
more
before.
.
business, offer
more
it exemplifies
.
our
\
v,
v' i," (-V
<>•'
•
'H
I -•
^ 'Jj.
'
[>
Some of the
KT"'
;
w
k\ 11 \
'V1 ,V
things
FOR
on
VETERANS
military
or
leave from the Company. Our special Veterans'
:Bureauwas. organized to he 1 p feturning
employees readjust themselves to civilian life.
u
7- '? V
"""'i v'J_
"
'
-i
~
year
~r'* V
i
\S
Ci
:
t,!~ >*,\f
{
\
f,
' /*
t
also affect you*
WE MERGED
our
electric companies in Brooklyn
and Queens with the parent Company for
greater
efficiency; a"nd
year*
was
still
a war
we
arranged added facilities for
However—
„
whp.t they would otherwise be paying at the rates
in effect before 1931. Despite the rise in other
your convenience in transacting business
living costs, the price of electricity
Nearly two-thirds of 194 5
WE
dated Edison lines is
now
lower than
on
Consoli¬
ever.
:
as
WE PAID NEW YORK'S BIGGEST TAX BILL—
$29,385,721 out of
000. The amount
enough to
run
nearly half
our
we
total taxes of $70,485,-
paid the City in 1945
STIMULATED
an
industrial
through special
lication of
a
INTEREST
center
surveys,
city market
fourth
making the
WE PUBLISHED
newspaper
and
and through the pub¬
survey.
"Serving New York"-describ¬
23,6% for
electricity,
gas,
Annual Report for the
You
can
a
obtain
of "Serving New York" by writing
Company, 4 Irving Place, N. Y. 3, N.Y.
steam, etc., $298,503,000
taxes
=
$70,485,000 (including tax adjustment)
11.6% for depreciation =?$34,539,000
on
borrowed money=$17,194,000
9.8% for dividends = Common Stock $18,362,000—Preferred Stock
$10,945,000 (less than 4%
our
issued."
payrolls» $71,646,000
5.8% for Interest
of
ever
24.7% for coal, oil and other materials=$73,719,000
WENT IN 1945
•*.4 copy
colorful booklet of information about
to this
WE USED: 24.0% for
DOLLAR
(not including City Sales Tax)
One New York
most comprehensive
your copy
about $29,000,000 (30%) a year over
WE RECEIVED from sales of
SERVICE
called it "the
public utility
which $2,552,000 was for residential users, who
WHERE YOUR
YORK
ing the operation and organization of the
a year.
major reduction since 1930. The ^otal
$6,300,000,of
save
NEW
was
the entire Police Department for
amount of the latest reduction was
will
IN
with us.
through advertising,
Consolidated Edison System.
WE CUT ELECTRIC RATES AGAIN,
and
wartime
City tomorrow
^
did last
we
were
constant endeavor to provide the best
1 *
\
PROVIDED' JOBS
workers Who
jobs and opportunities
more
utility service at the lowest possible cost.
^^
war
/
year
'
v
"
on
the money invested)
.
\
i
0.5% for surplus (mostly applied to new construction and other assets)
1945y giving details of the year's financial results and operations, will be
.
=
=
$1,643,000
sent upon request.
"m
.
.This is
a
reproduction ifsmaller size of ad*advertisement in.New York City newspapers the
•:
"N
and law
the
when
country
a
The
pay-off.
then
shrink
are
firms to shut down, or
cause
their
Millions
operations.
thrown out of work and, un¬
willing to accept
adjustments
in
wages,
less everyone is
drastic
prices, they will stay
out of work for months and even
costs
and
years, as
will
they did throughout the
Clearly, settle¬
1930-'40.
decade,
that
ments
Source
If
*
Our
Labor Troubles
forming the law and its administration and in-shaping the con¬
are
of
these
to
greater peace and more workable
settlements is to be found in re¬
produce, not peace, but un¬
rest and disturbance.
The road
troubles.
labor
our
results
such
to
lead
sibilities
the
duct of
appropriate
government in labor rela¬
:
2
",'
tions.
goals of labor policy, how are we
to go about the task of reaching
them?
The labor policy of this
.
,
The first arid most pressing
:
achieving fair and un¬
administration of the Na¬
toward
country today rests upon statutes,
the
decisions
of
administrative
biased
boards, rulings of the courts, and
tional Labor Relations
,
of
be directed
should
reforms
these
<>Vagner)
on
• vf
s
*
.>>'^'1
' -
consistently'
Board;
foreman
BROWN BROTHERS HARRIMAN & CO.
everything possible to
collective bargaining
unworkable and unprofitable.:
It
holds out promises of concessions,
which
on
better
than
sible.
Hence
and go out on
decision of the
the
employes
S. Su¬
under
closed-shop-
workmen
^ "j"'."
il
Statement
r!
,1
.
v'
-
'j
w
^
'
,
f
ASSETS
.
United States Government Securiries
..
..
$ 39,274,16878
Other Marketable Securities.
Loans and Discounts.
;
.
.
.
,
.
.
.
.
.
5,238,412.54;
.
.
.
employer
or fWith respect
to his subordinates, a foreman
constitutes the voice of the em¬
48,879,043.85
-
.
Customers' Liability on Acceptances
,
,
.
ploy er^V or -"Foremen
52,756,899.38
563,330.88
Deposits—Demand
Deposits—Time .
.
.
are
An earlier decision
unions
finds
free
by the court
a
liability,
from
2,951,407.03 $184,610,547.22
Am erica—appeared on the scene.
Before
Acceptances
.
.
.
$
...
Less Held in Portfolio.
"
long the* board began to
everything it liad been
saying.
It began to question the
functions of foremen, to doubt
8,533,651.63
take back
8,201,658:47
331,993.16
.
Accrued Interest, Expenses, etc.
.
.
.
,
f
Reserve for
,
,
.
.
,
.1,500,000.00
Contingencies
Capital
Surplus
.
,
$
.
.:.
168,253.62
that they
radical Ganges in the lvistoracyb-*ties and responsibilities of fore¬
U. S. Government Securities Par Value $700,000 arc
Deposits
as
Pledged
Required by Law.
ft
men.
$208,186,001.54
Public
even
invented
agents are scrupulously! fair end
open-rqinded and unless dt is more
deeply concerned over The com¬
.
The upshot .of this
FACILITIES
PARTNERS
Thatcher AL Brown STEPflF.N V. HoRo
Prescott S. Bush
;
Foreign Banking
>
%
k
•
..
..oiifcV gpd
Deposit Accounts* Loans*Acceptances
Commercial Letters of Credit
Thomas McCance
Louis Curtis
and
Complete Facilhies tor Domestic anh
'
Ray Morris
what
did
they
and
passing political expedients.
David Rockefeller Now
would
-
With Chase Naf'l Bank
tc
seem
David Rockefeller, youhgest;son
D. Rockefeller, Jr., .has
-people: a-: purg and simple
crime.
-of John
2
;
an Assistant Man¬
Foreign Department
been
appointed
ager
Union Monopolistic Practices
in
the
Chase National
of the
Bank and
joined the. staff at the head office
of the hank, 18 Pine Street, New
York CityMr. Rockefeller', served in i the
Arrry for three and a half years
2nd was ohv overseas <; duty; in
policy ^and in
North Africa .and France for two
Department of Justice has vigor¬
years of that time.
He enlisted as
ously and extensively prosecuted
a private la May,
1942-and was
what it deemed to be monopoly in
a: Captain
when he Was demo¬
industry. Here again the labor
bilized in December, 1945. While
Union operates in a land of no law
Jq the service he ,"was a wa rded* the
and mo, restraint.
Barring prod¬
Legion of Merit and the Commen¬
ucts >ahd fixing: prices in New
dation Ribbon of the United States
York-City; if done by a un'cn in
Ariry. -and the French Legion of
collusion
with
employers:, is
maneuver*
Hcnor,
employes:
In
in a deck
few weeks ago,
contained
sion announced
a
Before
sanction¬
ing the: unionization-of foremen
in each and every respect. £ Again
the board yielded to the pressure
Mayor LaGuardia at the City Hall
during
citizens of the Unit¬
asked
are
-
to 'accept
served
a
Wagner Act in 1935,
as
>
...A graduate of ..Harvard
in the class of 1936. Mr.
amend or
clarify -the law jhas been shouted
a S1,anti-union
Welfare
1941 until
and
May*. 1942;:-;'':::; -;
became
clear, y every! effort .to
down
He then
;
Regional Di¬
Fervice; from October,
of the
experience
arid abuses
Assistant
Defense, Health
of
Ever- since1 the. passage
accumulated
1941.
1940 and
.as
rector of the United Stales Office
of conduct which is plain¬
ly. against the public interest, '
.
joining! the Army, ;Mr,
Rockefeller had been Secretary to
course
rank and file
conclusions
it took the final step by
,
ed: States
differentiate between foremen
to
-
'interest than-with its powers
mon
#.ces .nol;:apply
nsost
the law and
business,,
to Secure
ing, vacillation, torturing of defi¬
was that the board ceased
*W. A. Harriman
unless j its
under the law' if they * engage in
a new name
nitions
Moreau D, Brown
government ^can
no
perform
what the court concedes to, be a
agaiiist^if a union
doe«; precisely the same thing .by
itself and produces identical con¬
for them and called thetn ^traffic
sequences, there is,no violation of
cops," as if that settled the vwhole
13,705,542,23
,
really^ spoke for the em 4
It professed to discover
ployer.
2,000,000.00
11,705,542.23
.
task which
effectively
com¬
of years ago.
Then a mew union
—the
Foreman's
Association of
$181,659,140.19
.
.
own
.
LIABILITIES
.
their
settle
byj uninns provided that: the vic^ the soil
timizat ion 2s' carried pn. in the bility flourishes is preeminently
the task of government.
normal union way..
But it is
; "Confusion
and
inequities V of
representatives ;.. their acts
even
more, fundamental char¬
may well have a greater effect on
acter have to do with- the 'large
employes than posted generalities
question of monooolistrc pracf
by high executives."
tices.
American public policy has.
This is what the board thought
always been an anti-monopoly
about foremen until only a couple
$208,186,001.54
.
to
and
'The task of creating
in which such responsi¬
pany
8,121,776.20
Other Assets
in i the
as
differences.
.
acts
53,352,369:91!
.
State, Municipal and Other Public Securities
,
.
agent for the employer and Irs
are necessarily those of the
an
...
well
as
.
of Condition, March 30,1946
r
Cash.on Hand and Due from Banks.
bilities
s
form of racketeering.: This is an¬
to be company-dominated
other way of extorting money by
and illegal and, hence, ordered
force" or threat. The
them disbanded. Again and! again, physical
in a long line of decisions, the money in this case goes into the
union treasury. There is an antiboard spoke of foremen in these
terms: "As we have frequently racketeering, just as there is :ar
statute.
But
V
stated
the supervisor acts as anti-kick-back,
/
law,
sume
law,
safely be victimized
can
industry.
parties to labor relations to 4 as¬
their full respective respon-
union rules or their violation. Ap¬
under : existing
| al¬
and sound policy can! be
only by. encouraging 1 the
peace
made
ship
;j3
of
ment
jurisdiction over
no
and
daily practices of government,! the
most signal contribution to labor!
eon-
have
statistics
the law and in the enforce¬
In
tract and because the law and the
parently,
a
a.
much
refuse to settle
the conflict of labor and
such
helpless to act in this situa¬
tion because what was done war
done
men
unofficial
lssue
their
for
it
forbids
law
so
leged facts which mislead onlook¬
er and participant and precipitate
Yet the court finds it¬
practices.?
member4
into
foremen
admitted
The
seem
be
can
strike.. To promote
what appears to be a momentary
political interest,;official agencies
self
The board consid-t
spokesman of the
If found unions which
employer.
kept
and
T,se.
own
bona fide agent of
a
U,
their face
got by direct
negotiations,
that
a
voluntary
meeting of minds becomes impos¬
Court in the anti-kickback case.;- In this case- the- evi-.
Jerce is unchallenged that union
officers
extorted
moneys
from
the
him
ered
PHILADELPHIA
BOSTON
free
or
preme
management.
PRIVATE BANKERS
NEW YORK
as
Govern¬
the
make
:*s
'
regarded
/
The first and most recent examplf
Throughout most of its exist¬
ence, the National Labor Relations
•
.
reason only that this con¬
happens to be the conduct of
organized labor.
Let me cite a few examples of
this astonishing trend in our law
The Foreman Question
Business Established 1818
.
the4 contrary;
does
duct
the continuance
,* ■
While every¬
for the
ened.
r1
ment's agenda.:
On
courts
»7
for
law
items of the collec¬
inadvertently, ren¬
dered a large area of human con¬
duct immune to all legal restraint;
whether the rights of management
are further strengthened or weak¬
*
ordi¬
crime or vio¬
liberately
strengthening of this trend.
happens to the position of
foreman will largely
determine
>
a
ment
the
settlement of,the
the
on
approvingly of free
collective bargaining, encouraging
such bargaining seems to be (the
very
last thing. on the Govern-
unions and
of
j fix
body / talks
crime
a
to
bring their influence
and
bear
their officers.: We have, thus, de¬
What
1
citizens is not
lation
and
„
What is
,
of the law for
viola ton
nary
The common run:bi employconcerned with the survival
prosperity of their business,
look with fear
tive labor contract.
or
through the law, organ¬
ized labor, and collective bargain¬
and
continue
most detailed
separate
everybody else.
manage
ers,
agencies
to
and. contradictory
legal systems—one of which ap¬
plies to unions and the other to
right of management to manage
In the last decade great inroads
have been made on the right tc
ing,
and
wages
two
issue of the
entire
the
of
In the
<
ating in this country today under
This question is at the
question.
labor, unions.
of
cisions of the courts, we are oper¬
board
powerful government agency.
The most striking illustration of
such
behavior is
the way the
board
has handled the foreman
center
to relinquish the powers it has
acquired.
Government
officials
they af¬
as
present state of the. law and de¬
which has ad¬
ministered this statute since 1935
The
Act.
government. It is in the operations
has played havoc with our tra¬
of this intricate and interrelated
machinery of policy-making that ditional view of what is meant by
It has acted
the conditions of labor peace must government by law.
as
investigator,
be sought.
After 10 years of con¬ -simultaneously
It has in¬
tinuous and detailed experience prosecutor, and judge.
with the evolution of our national terpreted its job to be the promo¬
tion of union interest, regardless
labor policy, it has
become in¬
of circumstances or merit.- The
creasingly clear that the policy it¬
self and the way it is enforced record is crowded with examples
of the misuse of author ty by a
are the source of a large part of
lace the
settlements
musi
wrong
central
attitudes of local and
enforcement,
fect the rights, duties and respon¬
Policy
A Sound Labor
(Continued from page 1783)
Thursday, April 4, 19.46
FINANCIAL CHRONICLE
THE COMMERCIAL &
1798
ler" rem a ined 1 at
and. dcstruci-
College
feockefel-
Harvard" fof
of, post-graduate:5 study
year
economics,
followed
a
in
H. D. Pennington
KnightWoolley
t";.-
.
:,
.
•
<
tor
op
Purchase and Sale
Securities
.
.
,
;
examples I have-put before you
should show what abuses now ex¬
of
ist under our labor law and how
Ph.D. degree in 1940.
and
J
.
Investment Advisory Servic*
By this actiop
it opened up a vast new era of la¬
conflict, between employers
Brokers
:
E. R. Harriaian
by further
ptudy at the London School of
Economics and at the" University,
unions and between compet¬
ing
unions.
their perpetuation harms the gen¬
uine interest of labor, as well as
of
organized labor-
tive of the purposes
labor.
bor
Managers
Edward Abrams
.V.¬
L. Parks Shipley
Howard P. Maeder
Davtd G. Ackerman
Edwin K. Merrill
Charles F. Breed
Ernest E. Nelson
F. H. Kingsbury, Jr.
Merritt T. Cooke
i
Assistant Managers
>2
v
Wi# V.-':,' iej;
Arthur K. Paddock
William F. Ray
Herbert Muhlert
Arthur R. Rowe
Charles S. Carlson, Comptrollet
as
1
Arthur B, Smith; A uditor
Private Bankers and subject to examination and regulation by the :
Superintendent of Ranks of the State of New York and by the Department of
Banking of the Commonwealth of Pennsylvania. Subject to supervision and ex<*
aminatioo bv the Commissioner of Bauks of the Commonwealth of Massachusetts.
action, the
of the
showed its in¬
problems and
feed
unique. >. It
can
be
duplicated
throughcut the history of the act's
existence.
Unless steps are taken
to remove carelessness and bias
from the
mental
population.
Abuses
themselves and, until
^remedied, there would
be little - hope for the
HOUSTON,
operation of this funda¬
it will prove fu¬
•
'
'
'
" ry
■
;
Law Enforcement
An
equally fertile
source
bor trouble is to be found
to
come
a
tion of Fridley & Hess with offices
ing,
to ;: conduct, an investment
banking, business specializing im
municipal ; and corporate stocks
and
Partners
are
Earl
G-
and
been
play in making and .ap¬
dissolved
Wilbur
E.
Hess.
has
part government
bonds.
Fridlev,, formerly proprietor of
Earl G. Fridley Co., which has
Mr, Hess who has been
rev
leased from
plying the national labor policy.
During the war it assumed more
of la¬
An¬
ftmmaf
in the First National Bank Build¬
pass,
dominant
-
Ambiguities and Ineouities in
TEXAS.!---
nouncement is made of the
Policy
statute,
{
!n Houston* Texas
finally, to another, but
related, subject—the general atti¬
tude of government toward un-:
ions, industry, and fribor relations.
It is unnecessary to stress how
tile to expect more peaceful labor
relations than we have so far had.
4
>
Fridley & Hess Formed
entire
Government'^ Part in Union
I
;
———■
upon
.
<
*Now in Government Service.
Licensed
the
^
Chicago, where he received his
=%
rights of industry, " anci, conse¬ they are
seem
to
quently,. to the welfare of labor.
This development in the admin¬ growth of constructive labor, rela¬
tions.
.'
>'
- istration of the Wagner Act is not
George E. Paul, Treasurer
"
By this
more
to
Gale Willard
Joseph R. Kenny
Thomas J. McElrath
James Hale. Jr.
William A. Hess
:
once
difference
Harry L. Wills
Joseph C. Lucey
board
John C. WesT
•
,
f
i
Donald K. Walker
;
:
of organized
Any fair appraisal of these
-
active duty as Lieu-f
tenant, J. G., in the U. S. Naval
authority than ever. Now that the Reserve, in the past was a partner
in Chas. B. White & Co.
Q r
war is over it is most reluctant
in the
ambiguities and inequities in law
*"
,
^
-
•'
r
•.
T *
:*v- T'"**•
■
.
*
,*"*•"
.
■
t
'
Jr.-
2
V
|t
?
Volume 163;: Number 4478'
•:
'
.
THE COMMERCIAL & FINANCIAL CHRONICLE
V
'
.
1944, however, the net return
7.38% with
while
was
lower
a
leverage fac¬
Thus, it is plain
that, although the earning rate on
tor, viz.. 12.2..
book
By
E.
A.. VAN
with
PETJSENi
,
This Week— Bank Stocks
Public
i
9.0%
National y
book
on
0.57%^
on
an
bank
influence.
be
value
earned
and
also
earning assets.- The
significant point in this compari¬
.
increases
1799
generally:
.
lies in
son
the
leverage, other factors also leverage factor
exert
one
value
*
Moreover, if
Public's
fact that Irving's:
only 9.6 while
Comparative
an
important
was
17.5.
was
other, it will be
Two weeks ago1 this column presented a record of the
growth of,
•deposits and earning assets of 15 leading New York City banks, from, earning fate will vary .consider¬
ably;: JW example, in 19144, the;
the time of the "bank
holiday," through, the prewar .years of the New;
peak year of ; earning rate on
-Deal, thence through the war years to the close of ! 1945. / : r V .v
! book
value for the period, Irving
*
vJt is proposed this Week to present the trend of earnings, starting;
Trust earned 5.4% on book value
with the year 1938. So far as
possible, security profits and recoveries and 0.57
%
on
earning
'
make-up of each
earning'.assets,
perhaps
included, thus, the<S>
•figures used represent,; approxi¬
The first tabulation shows the'
mately, net operating earnings aggregate net earnings of -the
•only; Unfortunately, bank earn¬ 15 banks each year, in relation to;
ings have not been reported uni¬
their' aggregate
earning assets^
formly or consistently by the
The latter figure ia any year iq
-banks, though during the past five
7
•
r
to
maintain
perhaps not
1944.
in
expand,
category of
the
the
outweigh
net
was
an
operating
six years there has been
the
some
improvement in the situation.
mean
figures.
so
upward trend in
evidenced between
—
■:7;
v
year-endi
between. two
••'
''
1
:'7.
7
'
Net Return
Earning Assets
Year;7:g
.'($000)
.
Net
Earnings
($000)
'
'
r
on
Earning Assets
7^7
'
ljo
•
9,3771065
1939-
.
:
*
v
1940—,U~~~
^
1941_^«f
r
''
...
1944
1—.7
83,328,
.
-
96,020
110,954
V:y
7
;;:Y^aTy7v77 7777 7A-
..1943
earnings
net
in
Of?
ing
the
assets
aggregate
mean
RESOURCES
book^value for each
yearns been
used.
Adjustments- have-.been'
made - fon the y preferred stock-' of
Manufacturers.Trust Company. - '
15
of
Cash and DuS from Banks
U. S. Government
Banks
Net Earnings"
:
State and
1478,433
7:. 1,578,650
7
•1944—'
1,675,191
'•1945«.I.->^-7---)'v
1,785,604
Other Securities
.
5 95
6.14
'7"'
7.7)
.
,
j
M
*6;35 '
'
.^-"7.03;,.
7.38;
the
of
rate
net
return
clined
4944.
toook
to
7.T5%
from
v;
.
*
.
.
.
•
.
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,
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•
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=,7^
^
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...
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•
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.
W|
•
Mortgages
7.15
127,686
j<V-"-V.
.,•*
'
.
.
*-■
Customers'
.........
S^
$
'
.V
f-'I
■
.
'
B*f
Acceptance Liability
.
«
.
.
.
.
.
.
.
.
.
*
.
.
.
r'
<t-j
,
.
Stock of Federal Reserve Bank.
Banking Houses
.
7.
NEW JERSEY
in
In other words, during 1945
value (capitali?atiori) ; ex¬
BANKSTOCKS
panded at a faster rate than did
inet earnings.
fc
H
on
7.38%
.
.
....
.
.
.
.
Accrued Interest Receivable
V
1'/
while
.
Lqan& Discounts aa<FBaakers' Acceptances
.
Aggregate book value has in- , factor was 134, and.the net return;
fcreased 25.5%'over the period, net bn book value: was 7.15%.
In
earnings 54.8% as already noted,
ibook valde has increased 23,5%.
However, in 1945 the rate de¬
Obligations
"
0.83
o
.
r
1,511,230
'
...
Muhici{>al Securities
Book Value
:
5.70
82,474
-83,328
,86,154
90,741
96,020
110,954 y
123,675 '7
^
"
on
;■
($OQO)
.
m**—>.
CQNDITIO^
j.e.,capitalfsurplusand;undivided
profits. As lh; thef case- of eern-i
1)423,207
7 1,430,364 7
1*447,439
r
1942-4-^.———
•
aggregate
shows the
relation do aggregate book value,
:
—7.
-
The next tabulation
same
'Book'Value;
'. ($000)3
•
-
1938i-w™^--:—.
'1940^rw^».«^—r-r-~
~
OF THE CITY OF NEW YORK
0.55
7127,686
7 Net Return';
?
r
•
1
7 ; .0.60
TABLE II;
Aygregates
■
'
7
0.62
•
-
||7:f
0.77
U,65':
and 1945, mean .interest notes. Higher costs, taxes,:
annual earning assets etc., have also contributed* *
:
;
179.4%, aggregate net
^operating 7 earnings i h ere a s ed
54.8%, while, the rate of net re¬
turn declined; 44 %
Thiis declin¬
ing rate Df return has mainly been
"attributable to th.e changing char¬
acter of the bunks* assets^ which
fiave become preponderately Gov¬
ernment securities, Including - a
large proportion, of short term low
•'r
•
-
.
/
123,675
23.406,230 7
.
1038
-aggregate
i<;:
:
'. >86,J$4 "
90,741
increased
'
-
0,95
,0.86
"
20,560,575
1945-.-—
Between
7:7
0;98
r
'
8,792,520
9,998,970
il,736,060
1. 14,768,710
17,786,235,
»'
,
*k; V;S
82,474,:
■
X-__
Other Assets
•
»
.
•
♦
-1.
.
'
■!' What conclusion,
can be drawn
sets of figure??
from these two
^or one.thing, the importance of
Beverage is clearly illustrated. In
1938 the leverage factor of earn¬
ing assets to book value
7
5.9
was
5.79 %.
Capital Funds:
Established 1891
Capital Stock.
18 Clinton St, Newark 2, N. X
and the net return on book value
was
LIABILITIES
J. S. Rippel & Co.
-'y;:r-:siArket:s-3««..y-
In 1945 the leverage
N.
•
.
$111,000,000.00
.►•
Surplus.
Y. Phone—REctor 2-4383
«
•
•
139,000,000.00
.
•
Undivided Profits
1
Comparison and Analysis
Dividend
pf INDIA, LIMITED
19 New York
-'
Payable May 1,1946
l' \^
'
on
Head. Office s. 26. .Bishopsgata,
London, E. C.
Branches
request
"
.7
'*y7 '
!i
I.
■} {•.
*}
V'
:
*
.p
Subscribed
Laird, Bissell & Meeds
Paid-Up
Reserve
Membors New York Stoek Exchange
ISO BROADWAY, NEW YORK 8, N. T
;
]£:
(L.
Telephone: BArclaj ?«3500
Bell Teletype*—NY 1*1248-49
,
The
:
v.
t
•" India, Burma,
,v
-
-
CapitaLk~~£4.000,000
Capital--
!
..'S
,
..
'-also undertaken
\
of
Trusteeship* and Executorships
A. Olbbs, Manager Trading Department)
.»•.■.
Contingencies
•.
•
-•
-
.
•
..
...
•
'
7 >i
•»
.
.
-•r»
**'*
"1
and
as
A
■
Endorser on
^
1
Foreign Bills
Other Liabilities
•
-
-
■
.
...
1
*
•
<|
..
$10,557,865.65
less Amount in Portfolio
liability
■
.
......
Acceptances Outstanding
~;
£2,000,000
conducts every description
:
banking and exchange business
'
Deposits
T
Fund_^,^.w»»li.£2,200,000
Bank
>■
Reserve for Taxes, Interest, etc.
"
Oeyion,; Kenya
Colony and Aden and Zanzlhay
.
77^ ;V".
In
•
■
Reserve for
Banker* -to tfae Government 'in
Kenya Colony and Uganda
„
Bank Stocks
Circular
56,792,459.41
NATIONAL BANE
1st Quarter 1946
1,026,365.49
Acceptances
f
'
.
.
•
♦
...
.
V
s
**'"
n
/-£v M-;;'
.
.
...
.
4*
•
.
.
Insurance & Bank Stocks
'• v
.•
Bought
ANALTZED
>
-
—
Sold
—
Quoted 7^ ^%:
REVIEWED
Special Bulletin and Booklet
Service to Dealers
Trading daily 7
.
Inquiries Invited.
'
•
OF
Brokers
.
■■
-New Yotk
'
-
PRIVATE
Chicago
TELETYPE L.
-
i..
A.
'
.WIRES
San Francisco
279
--
funds and .trust
deposits,
at
$1,398,010,096,94 are pledged
Deposits of $1,080,690,77186 hnd other public
and for other purposes .as required
CO.
CALIFORNIA
210 West 7tk St.. Los Angeles
•
United States Government and other securities
carried
to secure U. S. Government War Loan
.
Orders solicited.
BUTLER-HUFF
V'
&
to 5 p. m. <P, C,
T.)
a. m.
r
J
i
COMPARED
•.
L.
A.
-
880
.
Seattle
*
•;
Member Federal Deposit Insurance
Corporation
that
increased
earnings, though
sharp a trend as
..
'or
extent
operating "costs, including pay¬
rolls, the banks may be expected
particularly
assets,
•have not been
.o
items
It-seems likely, over the next
few years, that the banks'*
earning
assets may continue to
■
rise,
earnings ( are
undistributed
credited to surplus and undivided
profits.
The leverage factor
may
also
advance,
though
these
well as the
bank's portfolio
of
as
moderately^: To
with an-: leverage, then, is
found that the factor to; watch, as
compared
commercial loans.
Doubtless, too,
book value will continue to
or permitted
by la w.
7v
1939 and
y';7;'7': 77:;'- ':
'
:
THE COMMERCIAL & FINANCIAL
1800
Price Control
Plea for Continued
During the first World
and through what we then
(Continued from page 1783) *;;; repeating.
It
was
easier to harness our ener¬
War
It
is really not
the last
months have been
seven
problems. ; Certainly
expect our economy,
with
filled
surprising that
could not
we
an
over¬
our
natural
healthy swing
the government when solutions
our problems seemed particu¬
somewhat
at
a
larly difficult.
May, 1943, to V-J Day, and that
it was during this same period
that our .greatest period of pro¬
achieved.
Our record in both production
and
inflation
controls
during
duction
was
World War I was far below our
Calls for Tolerance and
record of the
past four years. Our
Understanding
record following World War I in
f If we look at things reasonably reconverting to peacetime pro¬
and
objectively, I believe that duction was little short of dis¬
there is nothing in the last six "or graceful.
,
eight months that should really
surprise us or cause us any undue
about
concern
vided
we use
the
future—pro¬
good judgment, or¬
dinary tolerance and understand¬
ing, and a little courage from here
{ Let's add up briefly where we
stand
the
today.
war
years
Our record during
went far beyond our
greatest expectations. I am talk¬
ing about our record in produc¬
tion,
record
our
on
battle
the
front, and our record in the fight
against inflation.
*
You are familiar with the fig¬
ures, but they will still bear some
succession
was
of
disas¬
The Bungling After World War I
too
tion in
all
are
the
danger
signals
ago.
check.
that in some, way
is passed, I believe the last major
economic
tragedy which oc¬
and 1920 would
stumbling block will be behind us.
I believe that
the country will
settle down with renewed vigor to
price control committees.
The attempt to recruit staff which
to
had returned home Convinced that
curred
ment of
the
1919
in
repeated in 1946.
Of
conditions are not the
at all levels of production and dis¬ same today. Our production power
tribution.
The
upncertainties is far greater. - But so are the in?
about business costs and indus-: flationary forces that confront us.
trial prices materially throttling They
are
seven to
ten; times
greater than those that blew up
production.
Our economy in 1919 and 1920.
Rents moving up 30-50-100%.
Apparel prices doubling and triple
Accomplishments Since V-J Day
ing. Sugar moving from 5 to 28
We have come a long way to¬
cents a pound.
Eggs selling for
gether during the last four or
over a dollar a dozen.
Factory
five years. Whether we realize it
wages moving higher and higher
or not, we have come a long way
in a frantic attempt to keep up
since V-J Day.
We have settled
with the rising cost of living. Con¬
the major part of pur labor-man¬
sumer protest parades against the
agement disputes.
We have ad¬
high cost of living from one end
of the country to another. Indus¬ justed our inflation control poli¬
cies to the changing conditions of
trialists plagued with uncertain¬
the reconversion period. We have
ties on costs.
The hoarding of
boosted civilian production until
scarce commodities by consumer
today it stands at the highest
and businessmen alike.
point in our peacetime history—
And then the final inevitable
45% above the average of the
collapse in May, 1920. Inventories
pre-war years 1935 through 1939
dumped on the market for what¬ —with
employment at the highest
ever price they would bring. Sales
peacetime levels of all time.
be
their responsibilities were ended;
not
The wild scramble for inventories
wish
every
f
,
INCORPORATED
NEW YORK
Chairman
.Condensed Statement of Condition March 31,19.46
GEOR GE WHITNEY
V
ASSETS
HENRY C. ALEXANDER
Cash
$124,084£08.06
Handand Due from Banks
State and Municipal
I. C. R. ATKIN
Stock of
Vice-President
414,306,975.76
11,477,898.04
Bonds arid Notes
1,200,000.00
the Federal Reserve Bank.
Other Bonds and Securities {including Shares
PAULO. CABOT
President State Street
investment Corporation
of Morgan Grenfell & Co. Limited and
Morgan# Cie. Incorporated)*
.....
}
Loans and Bills Purchased..................
BERNARD S. CARTER
President Morgan & Cie.
Incorporated
on
United States Government Securities
Vice-President
Accrued Interest,
17,906,488,19
151J799,453.18
2,636,715.32
Accounts Receivable, etc..
•.
,
Banking House.:
CHARLES S. CHEST ON
3,000,000.00
...
Liability of Customers
JOHN L. COLLYER
on
Letters
of Credit and Acceptances.
President The B. F. Goodrich
Company
♦
$
.
6j618f520.22
■
H
'
*
its
Less Prepayments.,........
6,023,518.93
595,001.29
P. DAVISON
$732,435,257.48
me
N.D.JAY
Deposits..................
Vice-ChairmanMorgan &Cie;
Incorporated
Official Checks Outstanding
Accounts
$663,101,843.38
947£0165
$664,049,345,03
Payable and Miscellaneous
Liabilities
i
*
4,196,769.77
Credit Issued................
,
surplus
Vice-President
6,618,520.22
20,000,000.00
Capital.
'
JUNIUS S. MORGAN
"
'.
20,000,000.00
Undivided Profits.
6,784,766.72
General Reserve
ALFRED P. SLOAN JR.
10£85,855.74
Chairman General Motors
$732,435,257.48
.
Corporation
E. TAPPAN STANNARD
President Kennecott
United States Government securities carried at $171,038,284.66 in the above
statement are pledged to qualify for
fiduciary powers, to secure
pnbhc monies as require# by law, and for other purposes.
Copper- Corporation
-■■■,
JAMES L.
'Mr
THOMSON
Chairman Finance
••
Committee Hartford Fire
•
.Insurance Company
'Ml
M-.-:-
'
JOHN S. ZINSSER
President Sharp & Dohme Inc.
facto¬
country will tend to stabilize and
While
settle* down.
to
will
we
hold firmly in check the prices of
all products; which affect in any
degree the cost of living of the.
average family or the cost of do-*
ing business, we will find our¬
selves able to suspend controls on
and
more
more
items.
While
our
•
•
Member Federal Reserve
System
Member Federal Deposit Insurance
• - v.".
;
and
eliminated
most
on
of price control in a few isolated
fields would remain as remindersI
est of all the groups
which make
Corporation
By June 30th, 1947, the
great bulk of our task will have
been completed. It would be my
hope that by that time only rent
controls and some last remnants
of pur
difficult and stubborn fight
against inflation.
that
But let me make it clear
optimism is based on several
assumptions.
The first of
Our first objective in this pro¬ these, let me repeat, is the, pas¬
gram to avoid inflation and to sage in the very near future of
assure us all an opportunity of
the Price Control Act with the
lasting prosperity is, in my opin¬ necessary subsidies to hold down
ion, the renewal of the Price Con¬ the price of food.
Every week
trol Act.
Today most of our la¬ the passage of this Act is delayed
bor-management disputes are be¬ beyond May 1st will add immeas¬
hind us. Basic price adjustments urably to the inflationary danger.
have been made in many indus¬
Predicts Wage Stabilization
tries.
Hundreds of thousands of
The second assumption is that
veterans are trooping back to
their jobs. The major remaining wages will be stabilized on the
hurdle is uncertainty about the basis
of
the
general patterns
future of price and rent control which have been developed since
up our economy.
my
vital
V-J Day. During my many talks
with labor leaders, I have been re¬
assured anew of their awareness
of the responsibility which they
legislation.
Without
I ami hopeful 'that Congress
will
pass this Act within the next four
or five weeks and without weak¬
and by their determination
play their part in helping to
carry
to
maintain stable costs in this
crit¬
ening amendments. Above every¬
thing else, it seems to me, the
ical period.
country: needs ? to know where it
and it needs to know
Russell Amendment to the
Businessmen need to
know that prices and costs will
remain generally stable.
aside. This amendment would cost
stands
Acceptances Outstanding and Letters of.
<•
our
ries in even faster tempo. Within
two to six months I believe the
made, the forces with which we
confronted, the practical "ad¬
ministrative requirements of fin¬
flation control, and on what seems
to me the lasting economic inter¬
Amendments
Railroad Company;
levels will flood from
only as¬ relaxed
are
■
W.A.MITCHELL
I believe that the flow of goods
which is stepping up day by day
and week by week to record
During the next year, if all goes
them in well, controls would be gradually
you
Vice-President
RALPH W. GALLAGHER
GUSTAV METZMAN
;
items.
CHARLES D. DICKEY
President New York Central
at
cheated
give you my own views.
Favors OPA Act
Vice-President
I
last that they have been1
of their opportunity for
inflationary killings.-
ize
Vice-President
THOMAS S. LAMONT
job pf all-out production.
believe the speculators will real¬
that they are carefully
considered. They are based on an
intensive study of the problems
we have already dealt with, the
mistakes and successes we have
cf leFfingwell
ARTHUR M. ANDERSON
When this necessary legislation
,
J. P. MORGAN & CO.
Vice-President
where they are most needed
to break bottlenecks.
!
v;
:
omy
course,
THOMAS W. LAMONT
•
further ex¬
rationalize
,
sure
President
a
controls must, remain firm where
businessman,
firmness is reasonable and proper
every
labor and farm leader,
to protect the consumer, price ad¬
every member of Congress, would
justments must be granted wher¬
take the time to read carefully
ever they are really necessai^r to
the record of the period immedi¬
increase the flow of production;
Farm
ately following World War I. It volume hitting the skids.
'.v.'
We have accomplished
more
income dropping 66 %«
Factory
was bungling, fumbling, miserable
Selected Price Adjustments
than we think, but there is still
payrolls dropping 44% with
period and we will be foolish in¬
This program of selected price
more left to do than many of us
deed if we do not benefit by the nearly one-third of our factory
workers unemployed. Eleven bil¬ are; prepared to admit. What are adjustments to increase produc¬
experience which it offers.
lion dollars in inventory losses. the problems immediately ahead? tion has been followed consist"
The prophesies of some of our
What program should we follow? ently in the past several months,
Corporation profits reduced from
wisest leaders immediately fol¬
How long will it be before all with excellent tesults in Lthe^ field
over 6 billion dollars to a net loss
controls can be behind us? What of building materials and with in¬
lowing the Armistice in 1918 were of 500 miUioh., ;
It is a dismal tragic story; a is the pattern of the period im¬ creasingly good results on ap¬
that^the inflationary problem was
mediately ahead?
parel.
I
DIRECTORS
Chairman Executive Committee
prices of building
materials. We need
tension of the War Powers Act to
allow us to allocate scarce mate¬
weary and
Let
n.
of food and the
warn
You may disagree^ with
whole or in part. I can
...»
that
against a repetition
of the disastrous errors of 25 years
should
rials to those sections of the econ¬
feeble—to reorganize
the
government's forces to hold infla¬
all
come.
It is also a tribute to the
story that makes miserable read¬
ing, But I urge you to study it all health and effectiveness of our
: the same. And I only hope every democratic legislative system.
~We. need a Price Control: Act
other leader in our country will
do likewise.
In it you will find fre.e of weakening amendments.
all the lessons on how not to re¬ We need the subsidy payments
convert from war to peace.
In it necessary to hold down the prices
Today we are irritable and war
anxious to put all the
vestiges of wartime controls be¬
hind us. It is easy for some of us
The re-establish^
The effort—all too late and
1919,
.
it surprising that we have
to
the
.
.
followed
all-out effort, we
In
this
second
World
War,
literally
turned -upside down by war, to through our all-out effort, we in¬
snap back
into place overnight. creased production from four to
Certainly it is not surprising that five times as much as in the first
we should be somewhat irritable,
World War, while we held indus¬
somewhat uneasy, a little fright¬ trial prices to an increase of only
ened perhaps at all the complex¬
25 % with an increase of only 31%
ities with which we have been in the cost of living for lower and
surrounded.
medium
income
families.
This
^ •
.. /•
, ,
•»:it is not surprising that we have record is even more remarkable
found ourselves indulging in con¬ when we consider" that bbth in¬
troversies between groups, with dustrial prices and the cost of liv¬
disagreements between labor and ing index rose only about 3%
management and farmers. Nor is from the hold-the-line order of
tendency to take
.
that
increase
to
which for four years was
indulged
: us
events
trous indeed. The rapid stripping
industrial off of the controls which existed
production
only. 25%,' while at that time. A temporary drop
wholesale
prices by November, in prices which served further to
1918, shot higher and higher to a drop our guard. Then the upward
level 102% above pre-war figures. surge of prices starting in March
considered
gies towards the achievement of
managed
common objecti ve. •• V'
a
behind
Thursday, April 4, 1946
CHRONICLE
.
.
.
quickly.
J I am confident that the Con¬
will i carry its share of re¬
sponsibility to provide us with the
necessary legislation.
And I be¬
lieve my confidence is based on
solid ground.
For the past four
years Congress has beaten off lit¬
erally hundreds of efforts to elim¬
inate or to cripple the price and
rent control legislation.
In one
year alone 150 weakening amend¬
ments were offered. The fact that
Congress has had the courage and
the collective good judgment to
maintain this legislation intact in
gress
the face of
unbelievable pressures
rv^rvn+ViG
tn
The third assumption
mum
Is that the
Mini-%
Wage Bill is eventually cast
American housewives
billion
food prices. It.
would sharply increase the cost of
dollars
in higher
living. It would make our tasks,
of stabilizing the economy flatly
impossible.
-
Fourth,
Congress
Powers
I am assuming
will extend the
that
War
Act whiVh U designed to
support price controls by getting
scarce materials into the channels
where they are most
Fifth, I
Office
of
am
needed.
assuming that the
Price
Administration,
the Civilian Production
tration,
theW*ee
Board will be given
Adminis¬
Stabilization
adequate ap-
Volume 163
•
Number 4478
propriations to handle their
COMMERCIAL & FINANCIAL'CHRONICLE
mendations
to
either wipe out
price and rent control directly as
proposed by the National Manu-.
facturers Association, or wipe it
out discreetly as proposed by the
National Retail Dry Goods Asso¬
essen¬
tial work.
-'
'■Sixth, I am assuming that busi¬
ness
will; continue to cooperate
with
the stabilization
agencies in
up to the regulations and
living
assisting in
every
to make
way
them work
effectively.
I wish I could
promise
:
ciation,
reckless in the ex¬
Today I believe that the
greatest single danger to the fu¬
ture health and prosperity of our
'
you that
the program which 1
have out¬
lined could be administered
without mistakes or errors, or
irrita¬
tions.
Let me
emphasize, that I
am
only too well aware of the
difficulties and problems which
price regulations sometimes cre-
;
ate
for
businessmen.
j understand
people
that
I
„•
free enterprise system comes from
those who advocate such meas¬
as
we
•
is
to
one.
ened
with
creases
to
year
ritations
the
or
controls
and
4-
But I am as equally convinced
that this future under free enter¬
an
prise
can
be
never
if
won
in¬
we
ary
health and prosperity of our free
have
one
deep and abid¬
a
most
certainly develop
with
or
50-50,
for
wholeheartedly
my assurance
some
ir¬
outlined,
we should be free of all
V (Continued on page 1802) ,; -
a;
■
Manufacturers
the
/
take
a
of Condition
man
;7-;7Xf7fj'l77 j 7
who
RESOURCES
.
U. S. Government Securities.
man
believe
State and
.
1,417,231,943.04
Mortgages
.
.
.
.
;
.
.
Stock of Federal Reserve Bank
Other Securities
.
.
.
...
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.■
Banking Houses .,i
...
.
Other Real
.
.
Estate Equities
.
.
.
.
....
,
.7.'
.
.7
.
Accrued Interest and Other Resources
.
.
29,229,124.12
,
.
.
2,475,000.00
.
.
.
.'.
:
22,137,946.81
527.435,424.21
'
7'7. • .7: 7,743,719.52
.V
.
.
Customers'Liability for Acceptances
18J53
.
.
7
'
4,117,598.72
,
...
,-r.
.
.
...
7R
«<.
.
,.
Loans, Bills Purchased and Bankers' Acceptances
Mortgagesr|v|.f^|g'?i'
366,135,931.04
.
Municipal Bonds
that
*
:
$
U. S. Government Insured F. H. A.
people would again
reasonable
a;::.:
Cash and Due from Banks
our econ¬
go through the economic wringer
as they did in 1929 and 1932?
Does
any
close of business March 31, 1946
as at
gamble like
omy at stake really believe that
the American
Mrs.
™
:
TRUST COMPANY
Condensed Statement
.
11,381,530.67
7
.
324,003,73
6,840,417.05
.
.
.
.
...
7;
.
6,380,908.53
.
'
t
.
$2,401,433,547.44
LIABILITIES
Capital
7|
Surplus
.
.
.
.
.
.
.
of Condition March 31 1946
Reserve for
y
in
Banks
.
.
.
.
77. Loans and Bills Purchased
United States Government
State and
.
Dividend
.
$ 26,665,458.13
.
,
.
;
.
.
.
.
.\
.
.
.
.
\
,
Interest,
.
....
,
.
.
.
.
.
.
.
.
.
..
114,393,451.33
.
9,6^3,899.91
.,
.
/
etc.
7,
v,
31,893,451.33 $
.
7,935,840.10
.
1,237,498.20
...
.
7,946,118.50
.
.
„
.
-
* 6^3,517.90
.
.
6,944,100.00
,
Payable April 1, 1946
.
90,317,715.41
Obligations
Municipal Obligations
Contingencies
;
Outstanding Acceptances
\:.i>
liability as Endorser on Acceptances and Foreign Bills
Deposits
"7.
j
.!
7
37,348,411.86
,
.
;
..
Reserves for Taxes, Unearned Discount,
RESOURCES
Cash
$41,250,000.00
W.i. i ."41,250,000.00
.
Undivided Profits
Statement
1; f77.
.
.
.
.
.
.
l
•;
.
.....
.
.
.
.
2.259,623,221.50
'
Other Bonds
\
u
.
77 Federal Reserve I>ank Stock
5|| Real Estate Mortgages
Accrued Interest Receivable
»Total.
i.#
♦
Z./yy. %v' -.-77.7
y<'j-
.
.
,
.
;•
.'
A
%•
--
:
'.
"
■
t/,
'
; •
•
•
,l
V •'
•
"
funds and
:
■"£/;/:/.;
1
'"//r /^/v/
'
Chairman,'Mathiesou
Works, he.
Alkali^
Surplus Fund
.
.
*
.
.
.
.
.
,
.
....
.
7
..General Reserve,:,
'
President, Atlantic, Gulf and
West Indies
Steamship Lines
y
136,368,157.35
Unearned Discount
Expenses, etc.
.
.
Payable April 1, 1946
.
Total
■'
ii
,,
v
President, United Slates Lines
$169,411,529.71
-
.
•
T
AAi-1:' *
New York Clearing House Association
AA " Federal Deposit Insurance Corporation
\
,
i
■
New York City
,
N&to York
City
.
President?Home Inmtrcwce Go*
'
*
.
ERNEST STAUFfEN
Cliaitman, Trust Committee
GUY W. VAUGHAN
;
President, Curths- Wright °
•
'
TfOlIN T MADDEN
InduXrial*
'
Corporation
TSENRY'C. VOI^ ElAl' V
<V;
President, John P. Magiiire &
Co., Inc.
^
Vice-Chairman of the Board
ALBERT N,
WILLIAMS
Chairman, Western Union
<
Telegraph Company
(
BANKING
OFFICES
IN
GREATER
NEW
European Representative Office: 1, Cornhill, London,
M ember.'
:
Coal Co.
.
..
i
•
,
Principal Office: 55JBroad Street^ New York Qtv
69
permitted by iaw.,
:AA>'
•
350,00000
.
Securities carried at $31,345,000.00 have been
pledged to secure
States Government War Loan
Deposit of $27,086,141.25
and for other purposes as
required or
| i Federal Reserve System
•
<
GEOKGE J; PAJTERSON
President, Scranton & l.ehigh
.
President;Emigrant
*
Member Federal Reserve
?
•
HAROLD C. RICHARD
Savings Bank JOHN P. MAGUIRE
4
•»
.
HAROLD V. SMITH,
Simpson Thacher & Bartlett
,
C.; FLANIGAN
Company1
\ '
CHARLES L. JONES
•
<
;
The Cltarles L* Jones Company ■
Fuller Company ' SAMUEL McROBERTS
V
Vice-President
3,096.00
*
JOHNL. JOHNSTON
President, Lambert Company '
i,7 7
JOHN M. FRANKLIN
United
.
ORANDALL
\
I'MAI EH
OSWALD L. JOHNSTON
President, Spicet Manufacturing Corpi
HORACE
921,699.51
,
.'
president; George A*
CHARLES A.DANA
1,040,000.00
Deposits
,
^"cti CorPomtion
•,
GIBSON
President'
,
»
•
.</
.
President, La France Indtptrief, Int.
HARVEY D
r
;
*
»
President*Cluqtt Pcabody &
Co., Inc.
I
PAOLINO. GERLI
V
ALVIN G. BRUSH
2,728,576.85
.
„
Reserved for Taxes, Interest;
Dividend
4,000,000.00
24,000,000.00
.
r'*v-L4'
v ■
C. H.
.
Cftairmarii Lincoln Savings Bank
•
Chairman, TheSperry & Hutchinson Co.
:
$
*vvV;
'
»i R EL tor sy.
CHARLES FROEB
4
V
Chairmany American Home
Undivided Profits
-
.
.
<<
«
;
^
% EDWIN J. BEINECKE
$ 169,411;529.7 1a
'
.
7/ 7
at $456.840,260.93 are pledged
Deposits nf $427,751,906.02 and other public
deposits, and for other purposes as required or permitted by late,
trust
EDWIN M. ALLEN
LIABILITIES
Capital Stock
7:7.r
Jj
•*
U. S. Government War Loan
EDGAR S, BLOOM
.
*
United States Government securities carried
secure
408,252.77
.
" j *
v'-V7 T
-''r7\
j
1,475,000.00
#
'*
"
■
,
.
77v.
7
-
3,763,591.54
....
Banking House
K
1,649,000.00
7: 840,000.00
....
a
•
.
System * Member New York Clearing House-Association
'
that
follow the program which I have
an¬
we as a nation would
Does any reasonable
CHARTERED
7 :7
lesser de¬
with good luck and provided we
if
'7!.7V7>?:,,;77:7'77'••7\7/7;77-v;; </*7/'•
in greater
me
gree, I hope that you will accept
ing confidence that our free en¬ we followed the advice which
terprise system can continue to some groups have offered us. The
produce the highest standard of fact that this advice with few ex;''T7-
>
hope that you will back it to the
limit and give it your full support.
But even though you fail to agree
interest in another inflation¬
boom and collapse of major
would
7
YOKK
E. C. 3.
s-
Member Federal Deposit Insurance, Corporation
*
;
*
I
proportions.
And I believe that
that is the course of events which
enterprise system.
I for
It
the program that I have offered.
'
A
self
the
conditions.
require good sense, good judgment, and courage on the part of
the governmental agencies which
carry this huge responsibility.
I hope that you will agree with
freedom
7777^7'
are
•
.
individual
future
to
menace
v
■
with
democracy.;
rceklessly with inflation who
today the
easy one even
of
will
dulge ourselves through ignorance
or
through the pursuit of narrow
Average Citizen. If Congress ever our economic system would again
decides to pass such an amend- survive the shock of two
such ex¬
ment, they would save time by periences in a single generation?
openly wiping out price control
and rent control and being done
Can Capitalism Survive
with it.
Twenty years ago we sometimes
In my opinion, these recom- asked the question, "Can socialism
■r.—
as
an
best
our
that it is those who would gamble
occasional
some
has the best interests of
re¬
manufacturers'
Mr,
permanently
up
wrong,, and that we
Then to follow their
crazy to
that.
appropriate margins added, would
to
and
plot
a
under the
but to all the human satisfactions
that go
every
to socialize the
country and to set
are
be
prices generally would run into
several billion dollars, which, with
on
of
..
We would be
so.
and
fight;
were
$280 million at retail. It would in¬
food prices by more than
passed
accused
nonethe¬
nursery
'
does
repeat that the task that
me
lies ahead is not
the
we can prove to
f
Let
innocence
require good legislation from
road is the Congress.
It will require the full
right road, not only to economic, cooperation of labor, management,
security and unlimited prosperity, businessmen, and farmers. It will
so hard to
enterprise econ¬
omy against the danger of infla¬
advice could well bring us to eco¬
nomic disaster.. Even if the odds
crease
,
v
But suppose the NAM and
•
on
twenty years,
preserve our free
been
damage in the
less.
entire world that
hardships.
amendment, which they
proposed on March 13th, would
increase clothing prices aloneby
million dollars at
con¬
only insignificant in¬
unnecessary
other
about
are
The effect
are
weak¬
or
in price levels.
NRDGA
8 Rundred
can
teachings of history.
We who have fought
have
all
ties and
who seek to disregard all the
tion
in
even
subjecting the American business
efboth prices
over
us
a
a
inflation program which I propose
is followed, we would be guilty of
The
7
they
Under such circumstances if the
fective cbntrols
be
that there
continuing unnecessarily
and rents.
..
assume
50-50 chance that
a
abandonment of the cost absorbtion program, the NRDGA
has in
effect advocated: the end of all
tail.
something like
But for the sake of
run-
trols could be removed
they have advanced what amounts
to the same
proposal.
Let there
advocating
produce business opportuni¬
a standard of
living that
goes far beyond anything we have
ever dreamt of in the past.
I be¬
lieved that in the next ten to
survive in
the midst of
the odds that American Commissariat. I believe
in their estimates that the future will demonstrate
right and that price and rent
The National
Retail Dry Goods Association has
been somewhat less direct.
But
officially
rapidly expanding
socialistic world?" In my opinion
the answer is emphatically
"yes"
unless capitalism is pushed into
suicide by some of those among
ism
and
.
opinion,
my
argument, let's
all of the networks.
"f
,
beliefs,.
100
"■
!
are wrong
and
sociation has proposed that we
do
just that. And they have
proposed
it from the
housetops as well as
in all the; public
prints and over
In
the
major nation in
not alter the facts. The little
boy
Who didn't know his big brother's
shotgun was loaded did a lot of
properly be asked, "Can capital¬
ourselves
In
Manufacturers As¬
misunderstanding
of
aware
as
problems " which
ceptions is offered in all sincerity
freedom for the individual, of
any
system on earth.
•
vv"
I believe that in the future we
conceivable crime including
they
Hits Opponents of Price
Controls
The National
be
no
that.
and
living, the most widespread eco¬
nomic security, and the greatest
a
patch.-
if price
controls
removed, we could muddle
through without disaster.
7 7'7'"'--'7''-77 •''•77'1': ^
and
are,
a single nation in the
capitalistic world?'' To¬
day the question ;might very well
midst of
confront us, they would abandon
their recommendations with dis¬
somehow
•
immersed in the problem
pressures
were
7
confident that if they
am
were as
well
can
I
ures;
how < many
sincere
rationalize their belief
can
are
treme;
survive in
1801
,v.
7
■
'
Price Control: Bowles
Plea for Oontimsad
(Continued from page 1801)
tne
constructive point of view
controls except those over rents
which you have brought to our
and a few individual scarce com¬
modities
conferences.
by fifteen months from
vigorously
with many pressure groups and
lobbyists.
I feel that in. many
cases their efforts have been irre-,
sponsible, reckless and destruc*
point,
as
ready
be
to
nearly three
tive.
But during my
years
It is
possible then that some prices
will Move higher. -That does not
of service here in Washing¬
ton, I have looked to such groups
as yours,; to
the Grocery Manu¬
facturers' Association of America,
particularly concern me,
Not Sacred
Price Level
disagreed
.
,
some,Smalt risks remaining.
•
have
I
I see it, we
return to a
fully free and competitive econ¬
omy even though there may be
that
At
should
>
.
'
Inc., 'The-National Association of
Chain Drug Stores, the shoe and
food retailers and to other busi¬
Thursday, April 4,1946
CHRONICLE
THE COMMERCIAL & FINANCIAL
1802
Reappraisal of Easy Money Policy
would normally be spent.
But Who can assign the correct
quantitative weights to each of
the influences which produced the
actuality?
Who can even say to
specific knowledge and the
power to appraise accurately all
the effects bf money policy upon
economic interrelationships, and
the impossibility of attaining one
savings are representa¬
tive of the actuality?
•
'
; ^
II Wiil be noted that the reasons
not necessarily
are
each
objective
without
which
consistent with
:
even
are
in¬
them¬
to adjust
nearly naturally
*
'
/;
additional;
-
will
//
r^:;
happen
if the
on industrial suc-t
prospectively
con¬
these
by
measures,
it alto*;
gether?
(h) We: have extended thrbughj;/
the Government, and other*
wise, an unprecedent vol-» ume
of
foreign
credits,
which in. the depression do
not look very strong?
Will we be prepared to ex¬
tend
still
further foreign
seem
desired, it is clear
should be
as to permit interest
terrelationships
selves
What
cess,
noted
not
set up
rates arid all other economic
future
taxes?
penalties
through rmohey rates
producing
by-effects
so
-
..
,
that the money system
in theory. Again
to cite but a single example: If
low interest rates reduce savings,
and J increase
borrowings
and
other,
/
and subsidies,-/ con*"
notes
in others. In view of the absence
dividual-
pro¬
grams
of
in¬
what extent the estimates of
construction
ditional
simplified in some cases, and ren¬
dered unnecessarily
complicated
(Continued from page 1782)
money
to
preclude
'
as pos¬
prices, is it not possible that ris¬
sacred about
ing prices will make it necessary sible.
price level. Perhaps
ness organizations for enlightened
for one to borrow so much more
it should be a little higher. Per¬
/ Questions Regarding Policy
/ credits at-still lower ratea ;
and
constructive
opinions
and to pay for his .house or farm, that
haps ^t should be a little lower.
In ; connection
/
in order to. .keep interna¬
the actual burden of the interest
;
with
present
I would not'fight so hard to main¬ help.
W'$:$
tional trade flowing?
Vv
tain it as'it stands today if I didIh alt earnestness L appeal now and increased .principal/which he policies, one is led to ask the fol¬
*
pot believe that to depart from it ftit: youft continued thelp arid; Slip* must amortize will be greater as a lowing questions:
Distortion of the Money System i[
at
What will happen in the next
this
critical moment would port. There is no group in Amer¬ result ,of low .money rafes?
: 3
In recent years;/we have beeri
The fea^hsrpbhiit ahy;teference
counter
attack of depresstart us on a .cycle of increasing- ica who has so much to gain from,
-sion/ if during the present distorting the money system quan*
prices^then increasing wages, then the stabilization of bur economy; whatever' tb- many imjpohant
titatively and qualitatively, first /
collateral matters.' Again to cite
increasing prices and so on in an,
.kperiod of activity—
as
a
remedy for depression, and
upward spiral which would soon during "the: years, to comfc;./pr, sp but1 a single example J low money
(a) °We have' shot away all the
much to lose through inflation. I rates lead to refunding, opera¬
\ ammunition of easy money? second to pay part of the cost of
cause disaster. Once production is
tions whereby, owners ..o£ jobliga-,
Will we lower money rates war. In the earlier period the dis*
am. confident that the great, ma¬
going, full blast and the. danger of
tortion/occurred chiefly in thd >
tions with a fixed return find jthat i
to zero?
*■
' *
'
jority in your organization will
their investments are redeemed,,
the; spiral is behind us, we can af¬
Will banks and others lend Volume of reserves/ In the later /
be willing to put up with us a lit¬ and
ford % take more chances.
issues bearing lower rate$ are
money, if the return is zero period it occurred also in 'deposf t
its and currency. > In. connection 3
or virtually" zero? / '
■
Xgain let me thank your orga¬ tle longer in the interest of a fu¬ substituted. What ohe gaina by.
with any large' war effort, how^
We^do • notf lower money
ture of. unlimited prosperity,' se¬ this, process, another loses. The
nization for the help and support
hasi
income
of financial institutions
rates further, what will we ever//;monetary ^distortion
that -you have given us and for curity, and freedom for all of us.
substitute for the stimula¬ rarely, if ever been avoided.
pier dollar of their investments is
There
nothing
is
the present
as
■
-
.,
,
«•
.
*
•
■
-
''
,
stitutions
(1)
Main
*/•/■ VVV-/,
•'V;.
://•/;/.. ;/;'Vi '/
..
STATEMENT
shorter
-j.
■
,.'■. v
.
.
|l ; .^i^lli'ifeEESODRCES/
:.
V
-Vv;
•
Cash and Due from B anks»
»
Other Securities
J Loans
i
.
Municipal Securities
and Discounts.
Customers'
.
.
.
.
,
•
.
.300,499,780.86
upon
chain
2,799,586.74
Reserve Bank.
Banking Houses
«
Other Real Estate
.
.
>
...
«
.
.
.
.
.
.
,
..
1,048,412.50
.
292,816.23
p
Accrued Interest Receivable
Other Assets.
.
.
.
...
.
.
$55$42i;704;64
only
Capital.
*
»
t
*
*
»
•
♦
»
»
5,276^73 90 $27,276,273 90
.
.
■»
.
.
•
♦
«
•
.
•
$3,697,928.25
*
1,770,300.78
•
•
Other Liabilities
Deposits
1
i*
vi.,'
♦
i
«
^
.
♦
»
•
f
•
•' ''
"
•
f
I
,
t*
*
*
h! S, V
♦
s
'
''
>
«
•
*
l*,\
Securities carried at $76,053,968.80
V, S. Government War Loan Deposits
other
v
178,111.47
•
524,091^368.75
•
#
k
1,927,627.47
•
•
$558,421,704.64
^ ^
>
{
t
pledged
are
•
*
ti
:
...
member: n. y. clearing
'* *
...
;
•^
•r ■
as
boards
"*
corporation
what
<
:
interests
of
special
the
short!
so
circumstances,
and
ject
of
interest
and
rates
has
inaccurately
will
be
the inex¬
orable operation of forces inher¬
ent in the nature of the world,
which any political party has long
survived the ultimate effects of
any
above,
this
bonds, but for rea¬
suggested as possible
the credit of the
government suffers, and,its
credit cannot be so conve¬
niently
nancial
used to bolster fi¬
institutions .as
the 1930s?
(f) A' long
,
in
.
of
one
list
sort or another used
///fto keep prices down? '
*•••;.•
depression, will not
the need of subsidies- in -all
In
the
business
going be alleged?
,
How will these be
financed?
tax' level is already
slightly below the all
time high, and every move
of the government to com-
(g) The
but
,
v
war
bat depression, such as
ad-
y-
^the^dhstarices in
Few indeed1
;
important* departure: from
principle. fBy the results of
time monetary and economic
distortion,
defeated
Democrats-
the
World
after
were
War; I.
By. the effects of distortion- of the
the world in
qualitative dis¬
the
Republican Party was all
but
obliterated. By gross distortion of
the German money system and its
of
systems
the 1920s, (chiefly
in the
tortion
United States)
collateral effects, German Democ¬
racy
was
wiped out, and Hitler
Monetary distor¬
rose
to
tion
directions to keep
/
;
money
.
of enterprises
has become dependent
upon government subsidies
been
over¬
been," and always
measured by reason of
sons
,
then only in a very approximate
and general way, The whole sub¬
greatly
has
the value of their govern¬
.
;
by
ment
or
is for the best
country, except
years—biit,
yardstick
above,
h ave
bedependent to an ex¬
traordinary, degree . upon
that! no
rates,
actual
reasons
the
come
expert, can tell
interest
therein,
of
in
diverse
however,
level
change
in
are
post-war
the ultimate success of
monetary policies always
be which
might
for
weakened
immediate
the nevertheless,
cited
i-
and
economic factors.
different
effects
variable
and
*;■.[. •''*;> •" •••p.
Located Throughout Greater Nei.c York
particular level of interest rates,
or
of any given change therein,
are different urfder different con¬
These
house association • federal reserve system
federal deposit insurance
25 Offices
...
•
upon
of $73,566,891,70 and
.
be
ditions, and at different times,
to secure
public and trust deposits, and for other purposes
required or permitted by fau>.. P
vp/p: v-,\;
effects of the
particular level
Of 'any' gfven
change in the level of interest
rates upon the price of wheatr or
any
price index, or upon the
degree of activity in any busi¬
ness, or any index of business
activity; or upon the; rate of Sav¬
ings or capital values. The 'ef¬
fects of the maintenance of any
4,223,163.55
depression
in
'(e) Financial institutions should
<
of interest' rates/ ot
498,284.50
Less: Own in Portfolio
Acceptances
the
of
timing
*
amount
$40,000,000,000 or.more.),
forecast the degree
maintenance of a
226,875.00
•
.
.
.
.
,
or
Rates
can
one
.
-
portionate
••
No
Reserved for Interest,Taxes, Contingencies
V
-
.
part of the 1930's,? (A pro¬
next
22,000,000.00
Payable"April 1,1946
a
not neces¬
Forecasting Effects of Interest
12,375,000.00
—
Unearned Discount
,
'
out of date.
f$9,625,000.00
•
Dividend
as
f
for easy money are now
reasons
Surplus.
•
advanced
is
war measure is
.
sarily appropriate to peace. The
LIABILITIES
Undivided Profits
i
under
What
rises.
special
,
realistically
are ;
certain condi¬
tions/; and at- certain times/ land
then only when due regard is
given to degree. What is advocated
for times of depression, is > not
necessarily appropriate to times
of activity, when the problem is
dhe
of
checking undue price
20,143.66
.
,
of character re¬ and full employment could have '
quired to balance the budg¬ accompanied such monetary con¬
et when conditions are ac¬ ditions appears to be entirely for¬
tive, can faith in the gov¬ eign to much present thinking/!/
ernment's credit be main- By accident or design, British
:-i
tained
when
things
are policy of that era gave recognition
to a far deeper and more inclusive
bad?
(d) The combination of wage principle—to the only sure basis
; i "increases
and
OPA price or golden rule of monetary oper*
ceilings restricts corporate ations—namely, the avoidance of
or the minimizing Of quantitative;
profits in the active phase,
and prevents the accumula¬ and qualitative distortion within
money
system—an
ideal,
tion of reserves by corpora¬ the
tions as a whole which will which like other conceptions of
permit them to, pay out perfection, is never likely to be
$20,000,000,000 in excess of fully attained in human affairs,
earnings as;they did during particularly in time of war or in
strength
variables incapable of
reasons'
valid
1,891,844,90
•
<
interrelations, most >of
are
these
•660,000.00
«
entirely
to a whole
complex
as
isolation, visualization, accurat
quantitative measurement or fore¬
cast, hhd incapable, of accurate
forecast as to timing. In a word
.1,59.7,773.48
.
•
•
jeafcdns
work ■ of
net
or
which
145^08,341.91
»
»
hypotheses
economic
9,443,795.06
•
♦
Liability for Acceptances
| Stock of the Federal
$ 94,657,209.30
*
•
5
willr be observed that I the
It
realistic -validity of the'
for easy money depends
•
*
•
•
•
.
.
.
'■ •-/
*
•
| U. S. Government Securities
State and
v
•
.
*
differ¬
.
*
.....
*
"it
works* programs, adding to by amounts which appear to have:
the long
the Jabor :T shortages and closely approximated
pressure for materials
in term rate of growth of British
tjade" and/industry. ;It^^ was alsdi
> this boom era?
;
a .period of; surprising
approachji:
/; Can we still Sell/more gov¬
ernment bonds at new low to regularity in industrial growth !
4, rates > to fjbnance still great- ^nd/eipploymeht/ Trade union em* t
er public works! programs, ployment figures did not $how! 4
or
will we simply pump maximum swing of more than
'«■""*
5.5% in either decade.
It was not "
but Currency? ; - t r/ 'hv
(c) We have shown that we do a period of stable * money rates, !
were
rates
predominantly/
hot have the strength of nor
character to
balance the low, especially when judged by ;
present standards. That dynamic:
budget?
t
If
we
do
not have the regularity of industrial progress
maturities;; While money
business isj aCr
tracts no attention. Under
ent conditions/ it might.
March 31, 1946
_
•
;■
tive, this; general Weakening - at¬
w...
.
.
->>•-.•
'
rates are low and
CONDITION
_.
I-.v.:~r-vi
r
ties
.
OF
,
*
vbeing 'Subjectito^^/the i>dssibility • of a relatively greater
shrinkage; in market values than
•
CONDENSED
.
held, the longer maturi¬
vestments
.
•.
capital values which may be or
become inflated, and (3) a length¬
ening of the maturities of th^ in¬
Office, .37 Broad Street
-V-
by
(2) the ownership of debts at the
highest prices on record against
NEW YORK
AND TRUST COMPANY OF
a
of
reflect the
not
from
comes
/ Will ? we r
interest, return
fisk,
of
does
History is replete with examples
monetary distortion. Rare in*
embark upon the deed are any prolonged period^
/ Issuance
of irredeemable without any appreciable monetary
;
'
distortion. One such period oc- J
#aper * currency?; C ; i
■
If "so/ iti what basic respect burred In England: in the last
/
will this action differ from decade of the 1890s, and ..first
the errors of ancient France decade of the l900sr when the vol-? /
ume of deposits of the joint stocl^
and modern Germany?'
(bp/vye have shot away the am* banks grew; ~ annually with * aii
^
munition of large public astounding approach to regularity,
Which
tion
rise. Maturi¬
Financial in¬
weakened
thus
are
level
a
which
of/capital
level
reduced.. -The.
values may tend to
ties are lengthened.
facilitates
power.
and
distortion
the
of
interrelationships,
all /' economic
gives rise to industrial diffi¬
which few political par¬
to survive in
culties
ties have been able
office.
.
1
.•
v
Infractions' of
.
'
the
•
basic
...
mone-
-
Volume 163
Number 4478
THE COMMERCIAL: & FINANCIAL CHRONICLE
tary law are more numerous and
dramatic than the cases, such as
the British precedent cited
above,
in which the law has been
distortion, both quantitative and
qualitative, of the monetary
tem;
silver,"
"easy money," and other get-rich-
not possible
sion which
quick schemes of money manage¬
ment, which appeals to 4he pub>
imagination and hence
to po¬
litical powers, and which
leaves
them both unemployed. The subJect of interest rates is both in¬
finitely complex*; and essentially
simple. We have already seen that
.
no
one
the
isolate' arid; trace all
of different
interest
can
effects
rates
through all the complex de¬
tails of the economic
fabric, but
that a simple basic
policy fol¬
obfuscations of
half
In
or
quarter truths; to wander
the
of
mazes
myth
the
and
imponderables; and to try to beat
the basic natural laws
by the most
complex
and
befuddled
systems,
people like to try
to beat the game at
Monte Carlo;
exactly
than
as some
to
observe
what
is
rather
obvious but less exciting.
it is
so
And
policy., - that the simple and. well
substantiated
general
principle
that monetary distortion
maxi-
niizes and the avoidance nf
£tary distortion minimizes
mdn*
eco¬
nomic
maladajustments is brushed
aside in favor of
complex schemes
based
on
partial
results
the .final
considerations*
of
which
are
painful.
Effects of Trice Regulations
v
*
i
During
war
overexpan-
a
war
effort
of
*
great
best results will be attained
by a
of action designed to miti¬
course
order
such
the
as
themselves
tions.' •
!
What
The
price level, to adjust
to monetary: condi¬
\
Change
main
of Policy?
achievement
;
which
awaits
us
to
which seeks to avoid fur-
one
is
change
a
of policy
ther' monetary distortion |or; the
sake of
maintaining any.precon-
ceived level of money
rates, or at¬
taining any other limited objec¬
tive at the expense of
a, general
disarrangement of economic in¬
ter-relationships. Withqut predict¬
ing the
of
course
future
money
rates, it is obvious that it is not
safe to have
so
much nf, the gov*
bf'the volume: of bank,
deposits
and currency, created
upon
government
by
based
or
bonds.
During
the:lart^art'lhterest^tates
were
kept
ldw in Ortier to reduce the
cost of governmental:
borrowing;
and:
rationing,
price: and
Wage
regulations were used to prevent
the increase in the volume
of de¬
posits and currency from
trolled, it would be
gold
full
i
:
of success
as;
time
war
The
continuation; of
of
price
regulations
for par¬
ticular
commodities
undergo¬
ing
a
very
special and* tempo¬
post-war demand may be
how¬
desirable,
including the elimination of the
that
be
pyramiding
of
minor
distortions
avoidable, but
no/fixed
may
budgetary
sur¬
plus and to effect somq neductioh
of the debt, while business is; ac¬
tive, It will then tbe possible and
deSirable to consider a change in
money pblicy, and.
plementing it.
avoiding,
or
at
of.
a
sition
bank ^ reserve ^ accounts i tn t
grow
a
monetary
and
the
general fo
4
rates
indefinitely
community.
They
delay
and
basically
inflationary'
is limited.
Except
measures for the
ate
as
emergency
and immedi¬
war
post-war ^period
.
influences
Filth Ave;
I
of.
special
temporary demands,; their,
influence
will
be
as
these
Successful
;
of
finance
war
been
to
far,
so
the
measure
success
system,
consisting
I
•
at 44th
'
...
■
»■*
:
St.
i»
c»
'
140
■)
Broadway
v"
^
^
i
i
LONDON
PARIS
♦
;;
.....
large in order
the period of transition,
provide a definitely large
base for financing the
to
has
monetary
attained
degree/ of
due
their
and
other
excellent state of nat¬
This
means,
away from
time
we
in
are
ef¬
able
these special
without
measures,
un¬
immediate repercussions, the
greater their ultimate
have been.
Already
we
have
a
success
will
.
.
.
.
.
.
,
substantial
.
.
.
$
.
.
Acceptances
ivithout^TloWr
destroying the. fundamental
of
.basic
a
reserve,
slowly
some
consistency
with
long
-
,
;
""
Madiaon Ave. at 60th St.
■"
.
H,
'
'
(
>,
%t>
1
-.j
.and with
in -accordance
term variations from the
average.
No rate of growth would be
pre¬
thri Federal; Reserve
with average long
by
the
„
,
Bank
6,694.43
,
^
~
,,
Buildings
war.
would
be
Reserve
——-
125,640,847.85
9,369,527.19
145,201.13
v
Total Resources
M\
.
.
...
..........
.
.
.
.
...
.
.
.
.
.
,
......
.
.
*
.
.
.
.
.
.
.
.
.
.
.
.
,
.
.
Deposits
.
Contingency Reserve*
.
.
.
........
Treasurer's Checks
Outstanding
Total Deposits
Bills Payable;
;
Acceptances^.,
Less: Own
.
.
;
'
.
.
.
Investment
.
.
.
.
.
.
.
...
.
.
.
.
and
Endorser
Foreign Bills;
a^
on
.
.
etc.
.
i
„
.
V
.
.
.
3,093#,764,158.11
.
6,562,175.48
132,000,000.00
V
2,882,936.45
Acceptances
.
Dividend Payable April 1, 1946
Accounts Payable, Reserve for
Expenses, Taxes,
I
\
3,679,240 03
.
$
Liability
314,865,940.97
36,368,646.60
7,007,175.85
.
.....
$
$3,086,756,982.26
.
./
v-.-.$
Acceptances Held for
.
.
.
.
.
.
the
country,
This basic
carried
Banks
at
Total Liabilities
the
against
W-'W
54,865,940.97
Total Capital Funds
General
$3,609,511,466.11
/
>,| H|i|
$"; 90,000,000.00
170,000,000.00
*
,
.
Undivided Profits./J
..
.
LIABILITIES
(
.
,
Capital
Surplus Fund
as
long
average
of
.
.
■.
.
135,213.00
2,700,000.00
.
.
.
>
•
26,794,570.98
......
accordance
term rate of growth of the indus¬
try and business
.
Other. Real Estate
au¬
term needs
except in time of
'515,525,209.75
2,060,896,995.82
."■'■■■ 897,933,684.37
85,583,920.32
7,800,000.00
16^841,543.81
2,882,936.45
.
Foreign
Branches)
thorities to govern the growth of
in
J
...
(and Net Difference in Balances between Various
Offices Due to Different Statement Date of
.
average needs,
than in accord with short
j
10,940,502.94
1,585,249.90
Real Estate Bonds and Mortgages
Items in Transit with
Foreign Branches
term
reserve
.
.
.
Accrued Interest and Accounts
Receivable
enough
granted for consideration of such1
technical ^matters;:
moves
.
...
Othw Securities and
Obligations
Credits Granted on
and: to
currency can .change.
In deter- j
mining the rate of growth, of the
basic reserve,' latitude" should. be
Federal
on page
\*
MADISON AVE. OFFICE
.......
.
posits turn over at different rates*
Habits as to use of deposits and
reserve
(Continued
.
.
trade.
indicated
policy
or iwhich we are suggesting, although
not the precise mechanics for its
BRUSSELS
•
.
industry and
the basic
in England for more
20 - years under monetary
conditions reflecting
the
than
l
'
'
Condition, March 31,1946
U.' S. Government
Obligations
Loans and Bills Purchased
Public Securities.
Stock <of the Federal.1 Reserve Bank
estimated average long term rate
of growth of our
rather
able possibility. As we have
seen,
such
a
condition
actually was
maintained
'
^
32,512,720.43
.
.
C
.
7
.
7
.
...
...
.
.
$3,609,511,466.11
Securities carried
at $989,985,381.40 in
the above Statement are
pledged to qualify for fiduciary
public moneys as-required by law, to secure
Bills Payable, and for other
purposes.
This Statement includes the
resources and liabilities of
the English, French, and
Belgian Branches
as of March 26, 1946.
.1
" 1
powers, to secure
•
,
close
inter¬
Member Federal
Defrost Insurance Corporation
,
growth with only very minor and
readjustments would \
be within.the bounds of reason¬
Hand, in Federal Reserve Bank* and Due from
on
i
-special
the im¬
until; recting
ceased,: and
factors
interrelationships have
an
balance.
move
•war
have
will not be able
fect, that the faster
to
theories
to
finally
economic
ural
new
such
temporary
RESOURCES
Cash
ease
a
"distortion
the
unsatisfactory.
appear
of
economic
.
Condensed Statement of
foregoing suggestion, would
rather
/
of
relationships that continuous
,
/
chance
manner,
bring
condition
/IVte<^nedT1tOCKEl^ER CENTER
/.;/.
our;
which
orderly
every reason to suppose
could
gradually
adjustment
MAIN OFFICE-
•< (v
of
currency, and so set up that
it could thereafter
consciously be
caused to
grow,at an annual rate,
which, in the opinion of the Fed¬
eral Reserve authorities, seemed
to represent about the
average
normaLIong term rate of growth
conception;
a
an
basic;/^reserve/^^ ior: ihe
until They have
thing of the past—until scribed1 by law, but the law would
upward spiral of monetary contain a statement of policy di¬
become
the
we
general
we
in
By thus
a
ac-
,
*
and
ever,
is
about
tivity; thus distorting all economic
existing volume of bank deposits
be
work
that
con¬
or
policy
there
main¬
specific price level,
a
a^specific degree of business
u
FIFTH AVE. OFFICE
or in certain circumstances,
gold and paper, initially of suffi¬
cient size to carry about the then
the
to
in
interest
reserve
orderly,
tive, or because of war.
giving the natural laws
ob¬
such as a fixed level of
tained, die
■
basic
and
1804)
Guaranty Trust Company of New York
policy of
least minimizing
of
of
system
the
be¬
was directed towards
unattainable partial objec¬
cause
some
reserve po¬
money
set-up which made the
a
of
trollable
attain-' impossible
jectives,
of the upward
future monetary
distortion.would
be
materially aided by changes in
provide.
stead of distorting the
;
.
.
of: im¬
ways
status
.,
times, that i whenever a
tendency, appeared for member
of
an
themselves
lack of
un¬
i peace
rate
savings, etc.,
opportunity to
according to
the natural law, an
opportunity
which they have never
really had
in all our history, either because
of inflexibility of then
existing
banking systems or because of the
oL member bank j which in turn would tend
to conreserve accounts to* the basic re*
! tribute
to
regularity/ in.
the
serve would be prescribed by law;
I growth of the volume of deposits
but it would be a stated
policy for and currency in circulation. In.
ratio
are
proper
adjust
j ber- bank reserve accounts (but
[not without some
flexibility)
be minimized), | through the action of mbhey
rales,
which
-
spread out the effects of
monetary
over-expansiori, but the extent to
which
they obviate or. reduce
the
through .would be given
reserves
separate
a
.
Ti is obvious that the administration of this, policy should4
not be purely
arithmetic, statisti¬
changed leave
business in a constantly uncertain cal or mechanistic, and that lati¬
tude should "be granted, for
state.
They put. a high premium
ap¬
on
dishonesty and black market- propriate changes arid corrections.
All the credit in the
Bering, so that many.profits go to
country is not
the least desirable elements in
the extended by banks. Different de¬
ever, without their
disadvantages.
The slowness and
uncertainty with
Which they are.
con-
as
rates, the proper price level,
the proper level of
capital values,
In order to meet actual
depart¬ tend to contribute to a similar
ures of economic conditions from,
; regularity in the growth of memthe long term line of trend
(the
large credits against values tem¬ growth set for the next few years
porarily arid grossly inflated; and might be somewhat? less than the
not,
nitude,
such
and producing
troubles of great mag¬
the great imponderables,
the proper level of inter¬
est
made/ by the public),
rary
temporary demands of
helpful in avoiding the creation of mediate post-war era, the rate.of
the losses which result
therefrom.
Price regulations are
recurrent
years.
International
influences Ii and
universal
membership
of
woul<i have to be controlled by
j;; banks in the Federal Reserve
special
measures,
if
they
ap- 1 System. V
peared likely to overtax even the
We would then have a
system
enlarged powers and added flex¬ ■under which
regularity in the
ibility of this arrangement. ;•'/
growth of the basic reserve would
effects.
measures.
interrelationships,
low¬
interbank .deposits,-the establish¬
gold reserve at thei? Federal. Re- i ment of new uniform and low reserve Banks.
This is necessary to \'serve requirements
(the reserves
insulate the basic: reserve: from thus freed
being used as an offset
-
measure
so
necessary
credited and debited to
rates
money
correspondingly
(
,
To make this system work at
its best, still further refinements
would be necessary or
the
withrawals and deposits
industry
exerting
By comparing a: rate of growth would probably
the course- of. prices
fall within the range of
2% to
during this
war with /their course
in earlier 3.%%, compounded annually,; Since
wars, these measures appear : to the: initial volume of the'basic re¬
h a v e
enjoyed
a
substantial serve, if set in accordance ■ with
their
be
of
!
gold,
more than likely
be financed by,
overexpapsion
be
•
size
in short: form, and a i
more rapidly than the basic re¬
refunding; operation is desirable
serve; money rales, would become
to put' a much
larger part of it 'firmer in a
degree which re¬
in long form;
It is also
necessary flected the
intensity and extent
to establish some
Important part is
to
the
could
reserve
ourmonetaiyset^up/whichwbuld
purposes
that
i Situation,
reverse
would
''
■/
gate any further unusual growth i
the volume of bank deposits i extraordinary international move- to the
gold fund from which with¬
j
s
and currency in
circulation, and ments of'gold under ;the unusual!drawals and to which deposits
to permit other economic
factors, | conditions likely to exist for many II would be
in
is likely to be
financed .only .partially
by taxa¬
tion and by borrowed
savings. An
:
basic
view, the
The, execution
magnitude,:; expanded production
for
to undo
ernmenf
in
balances
reserve
A Basic Reserve
In
already exists, witnout
.
lowed by the British for 20
years
produced very good results.
It
seems to be more
fascinating to
become lost in the
bank
and currency,
ered.
grave repercusslons^Frorri a prac¬
tical operating point of
lie
;
member
■
sys¬
is
possible to minimize
further overexpapsion in the fu¬
ture with good) results; but it. is
strictly
obeyed for a considerable period.
There is a lure to; "free
It
-
-
-
-
•
,
/
these
investments
two
are
cluded in the booklet. ./ a,
in¬
i};.
it is pointed out
although the study has no
value as a practical estimate of
attainable profits, its value is to
In conclusion,
Mutual Funds
that
stimulate
A Stake in
investment ad¬
ministration. "An investment deal¬
Capitalism
which seems to have been
largely overlooked to date, but which could prove to be a major
factor in support of our free enterprise system.
It is a factor which
deserves the attention of government and business as well as the
There is one aspect
of mutual funds
of mutual funds.
As Eric Johnston said recently,
stake in capitalism if we want
■ ; -
sponsors
a
And
funds
be a
thoroughly sound
capitalism to survive."
through the use of mutual
every
working man can
"capitalist"
on a
basis. '■■■'H/V-V;
Through mutual funds it is pos¬
sible for the individual with mod¬
carefully
selected, professionally managed,
diversified investment in Ameri¬
can industry. He can put his mod¬
est savings to work through part
to acquire a
est savings
ownership of our great corpora¬
tions.
/.j
fact, if he is a worker in one
of our large companies, his mu¬
tual fund investment may give
,
/
,
In
"Every working man should have
him
ings
participation in the earn¬
the very company for
a
of
which
works.
he
Four
times
a
he will receive dividends on
he gets
taste of the fruits of private
year
who is striving for
er
average
clients
this country has there been such
a
tremendous
deferred
demand
for
better than
investment results for his
cannot
ignore the wide
disparity between the potentiali¬
ties of the two methods." 1
Surprise
In
tin
1
1
Reappraisal of Easy
Money Policy
never
such
a
huge volume of buying power to
make
this
felt
demand
the goods become
as
fast
iy; (Continued from page 1803)
as
19 Times in Less Than
the■;'< question
To
time
time
to
"load"
the
about
the
in
contained
without
offering
answer
The
of
the
index
of
indus¬
Economists and
a long time
practically unanimous
in
a poor prospect,for the advocates
agreeing that once reconversion
of state ownership.
was accomplished, the happy com¬
bination of a strong demand for
The Modern Mutual Investment
goods with an unprecedented abil¬
Fund
ity to pay for them would bring
Under the title, "The Modern to the country an extended period
Mutual Investment Fund," Na¬ of prosperous times.!
%
production.
memo
Board index of industrial
burdensome
four
than
less
years
made
Shares
-T.
;
i' *-Ii
/,
'
''
'
i
,
,
'
regarded as temporary, the
in
1946 Pocketax
vious periods of prosperous times
such as 1929 and 1937 saw this
tion of the "1945 Pocketax" book¬
Because; of the splendid recep¬
index in the
vicinity of 120.
let by its dealers last year, Well¬
Surprise,: continues the bulletin; ington Fund is making available
has
in .many/ places a limited supply of the :"1946
greeted the behavior of this in¬ Pocketax."
The following paragraph which
dex, for reconversion has been Extra
Fay Days
appears in; the Foreword of this proceeding apace and it has been
/"Almost every month in the
booklet sums up briefly the serv¬ marked by a succession of strikes
year,!' ; writes Keystone Co. in the
ice performed by such funds:
in some of our maj or industries-?
latest Keynotes, "brings some ad¬
;.
"The mutual investment fund is yet
the production index has ditional demand on the family
a
practical and efficient method dropped only to 150 and has apibudget over and above normal ex¬
of combining the investable sav¬ parently
turned
upward from
penses.*
.
These 'bulges'; lii
'
ings of thousands of investors to there.
the monthly budget often prove a
command the facilities available
"Such a volume of production*
strain on the regular monthly in¬
only to large aggregations of capi¬ which promises to grow now that come from
salary, business or pro-.
tal;
Although many people are most of the reconversion has been
fessionaT sources.'.'
not familiar with the advantages completed and many important
The bulletin suggests that in¬
of investment funds, shares of strikes settled, provides a sound
various types valued at over two basis for confidence in the trend vestors would find it highly ad¬
vantageous to set up a - program
billions of dollars are already in of security prices."
so as to obtain a check each month
the hands
of. investors.
These
and their application to
National - sponsored
funds are discussed in detail.
various
therefore
-
.
FROM
A PROSPECTUS ON REQUEST
YOUR INVESTMENT DEALER
,
r
Distributors Group, Incorporated
63 Wall Street' X""
* - New
One
shares
OR
Yofk^ N. Y.
are
held by individual in¬
Securities^Series
INDUSTRIAL
investment— after weighing the arguments sup¬
timing the general -market- and porting -both* sides of* the issue,
industry selection—were studied the odds would appear to favor
on a
"perfection'' basis. For ex- the retention of some kind of
theories
'
of
ample, a hypothetical investment
•of* $100 in the Dow?Jones Indus^
Prospectus upon request from * ^
your investment dealer or
.trial. Average, w,as, made, .starting
of
applying perfect tim¬
major bull market ad¬
vances.
The investment was worth
in 1915 and
NATIONAL SECURITIES &
RESEARCH CORPORATION
**
\
Vance, Sanders'
from their invest¬
A planned invest¬
"'-F
,
ing
,
$51,314.06 at the end of
A
1945.
.
.
.
Priced at Market
'
year
.
STOCKS Shares
»
the
ment account.
latest Brevits is
ment program is used to demonrby
estates,
trustees, insurance devoted to a discussion of the tre¬
strate how this could be accom¬
'companies, - corporations, schools, mendous1, growth oP liquid assets
•colleges, ♦ associations-' and religi¬ held by. Individuals dnd businesses plished using, the various Key¬
stone funds.
in the last six years. / The prob¬
ous and fraternal organizations."
lem, according to the analysis, is
Mutual Fund Literature
A Thirty-Year Bull Market
that if prices are allowed to rise
Caivin Bullock—Latest Bulletin
Hugh W. Long & Co, has pub¬ in an inflationary spiral, a great
lished- a booklet for investment deal of the ' latent purchasing entitled "What Management
Means."
National Securities
: dealers, entitled, "A . Thirty-Year
power in the hands of the public
Research
Corp.
Descriptive
Bull Market."
As expressed by may be destroyed with the ulti?
folder on First Mutual Trust Fund],
Mr. Hugh W. Long in a covering mate result; that our. chances of a
revised folder on Industrial Stocks
letter, "the story has startling im¬ prolonged period of high business
plications tp those who aid the activity may be seriously im¬ Series; memo re special year-end
distributions; current Investment
public in managing investment paired.
Lord, Abbett—Cur¬
funds."
The
bulletin
concludes that, Timing.
vestors, large and small, as well as
Two
,i
in
1
■
of the "
NATIONAL
**
Hold the Line
rent Abstracts;
vestments
on*
Co.
15, 1946; latest issue
of "These Things Seemed Imporcontrols. "The stakes are
tani';
Keystone Co.—New
hiuch too high, in our opinion, to
General Prospectus .on all 10 Key¬
take a chance on the possibility or
stone Custodian Funds and sup¬
even probability that full produc¬
tion would automatically follow plemental Prospectuses on Series
the complete removal
of price B-l, B-2, S-2 and S-3 all dated
March 25, 1946.
Distributors
controls in .time to stop a serious
Group—Revised folder on Rail¬
rise in prices."
price
.
.
.
.
.
.
The
hypothetical investment of
road Equipment Shares of Group
$100 was maintained continuously
Securities; reprint of the March 25
$145 Billion. to Spend
in the best performing industry
Standard & Poor's Outlook enti¬
; Commenting
oh a newly re¬
group since 1915 and was worth
tled "How Long Will the Boom
vised
folder
on, Merchandising
$424^276,831 at the'end of the pe¬
Lastf.'^^^
riod. The supporting; statistics of Shares of Group Securities, Dis
Dividend
tributors Group calls attention to
Manhattan Bond Fund, Ine;4-Ah
the "liquid savings of individuals
now totaling $145 billion.
This is ordinary distribution of 90 per
knhkcrhiH'krr
equivalent to nearly $4,000 for
every family in the United States
and is almost' double last year's
second
I20 BROADWAY
New York 5, N, Y,
'
,
total retail sales.:
Fmi
Never
50
..
REPUBLIC
v
The
Request
Board
-
Manhattan
has
of
No.
Distribution
Founded 1932
Knickerbocker Shares,
General Distributors
20
.v
Inc.
N> Y,c j
Teletype NY-1-2439
your
local investment dealer
*
*
close
or
1946.
A.,
Tlie
Exchange Place
New York 5,
Prospectaatnaybe obtained
from
>
50
1
Keystone Company
'
,
of Boston
'
Congress Street, Boston 9, Mass.
consideration of
full
a
on
influ-,
than on some of
them, and having recognized the
golden rule or essential basic
principle at the root of central
money operations, we would be in
a much better situation to con¬
ences,
father
sider
further
refinements/
We
couldj for example, consider what
additional measures, if any, might
be desirable from time to time to
encourage
correspond¬
closer
a
between the rate of growth
ence
the
of
volume
of
deposits
and
and the rate of growth
through ac¬
currency,
of the basic reserve
supplementary to changes in
tion
interest rates. But as long as there
is nQ basic reserve,
which
can
the growth of
be kept orderly,
when
gold movements are free; and the
of- member bank
volume
Reserve
accounts is controlled on the basis
of temporary
tain /low
expediency to main¬
bit government
rates
bonds, of; to: maintain in a boom
era money policies which are ap¬
propriate to a severe depression,
attain
to
or
other predetermined
objectives based on some partial
idea of monetary influences, we
are
so
far off base at the bottom
■
of things, that the
accomplishment.
Directors of
Fund, Inc.
Dis¬
31 of 9 cents
;
Whoever undertook to
establish
adminster the suggested pol¬
and
inherit the distortion
system and collat¬
eral economic distortion which
already exists.
He would also be
faced with the necessity of financ¬
would
icy
of the money
ing a very special and temporary
post-war demand for merchandise,
arising .from shortages built up
during the war and from war
damage. He would be faced with
the necessity of easing the pain
of
of this spe¬
demand. The
the disappearance
cial and temporary
practical task of mitigating mon¬
etary distortion under such con¬
ditions will not in any event be
simple or entirely possible of ac¬
complishment. Complete realiza¬
tion of the aims of the policy out¬
lined would necessarily be a mat¬
But every day
delay in seeking its objective
postpones in geometric ratio the
day of its accomplishment, and
also aggravates in geometric ra¬
Ordinary
the difficulties of establish¬
a
basis for relatively unin¬
terrupted advance.
V
tio,
ing
to holders of
share
•
based
all the effects of monetary
of
share and Extraordinary
FUND Inc.
.
-,
Having thus established a policy
ter of some years.
Inc.
Bond
declared
tribution
per
v
per
history of
INVESTORS
on
of
Manhattan Bond Fond,
Supervision and Safe-keeping
Prospectus
extraordinary dis¬
an
share, pay¬
able April 15, 1946, to stockhold¬
ers of record April 5,
;
tribution
ustoc
for the Diversification,
of Investments
.
before in the
and
share
nomic interrelationships.
—
Selected
dated March
.
effect of the
refinements of
coordinating government build¬
ing programs,
and government
surpluses and deficits,; with a
Selected In?
money policy designed to promote
New Prospectus
steady dynamic progress are be¬
American
Shares
yond any hope of well ordered
.
.
would
policy. The general
policy and the mearis
of implementing it would be to
provide a means by which the
natural laws would, to the great¬
est possible extent, be permitted
to express themselves in an ord¬
erly fashion in the determination
of interest rates and other eco¬
plained
the
discretion
which
statements of
' '\J}!
from 1926 to date shows that pre¬
^
reserve
be allowed would be narrowed by
the
', • }/".'< •'*t-' I
\
bank
field
prices 19 times.
,
member
were
difference between bid and asked
activity
of
monetary
balances from this rate of growth
Selected
up
reserve
degree
would reflect the variations which
,
in
the
of
course
detail,
important services performed,
Moreover, in periods of rising
markets, the cost can be made up
quickly,
^' u y?
h; To
support this latter point a
table is used to demonstrate that
American
basic
the
factors
which they considered to be per¬
manent, and the departures of the
in
growth
availability, high degree of mar¬
ketability ; and numerous other
_
A chart of the Federal Reserve
of
of. the
reflect
would
since
times,
peace
movements
by the diversification, elimi¬
nation
discretionary phases,
its
in
even
in its
Selections.
current
Federal
Reserve authorities would not be
or
price of an open-end investment
company's stock, Selected Invest¬
an
;
policies.
the money system by the
from
cost
}:
were
Although the management of
Four} Years
raised
points out that the cost is justi¬
behavior
attained by contrary
ever
'}
results
such
No
execution.
available.
fied
bett calls attention to the surprise
statisticians have for
The special features inherent in
mutual funds are set forth and ex¬
been
current Investment Bulle¬
trial
prepared a new booklet which
tells the story of mutual invest¬
ment funds.
there
Affiliated Fund, Lord, Ab-
a
on
a
has
has
ments Co. offers
ownership of industry, he will be .been
tional Securities & Research Corp.
goods—and
consumer
before
of
his investment—and, once
:
'BUILDING
reexamination of pres->
methods
ent
Thursday, April 4, 1946
CHRONICLE
THE COMMERCIAL & FINANCIAL
1804
if. R. BULL MANAGEMENT
C8., INC.
St., New York 5
5
cents
per
.
payable April 15, 1946 :
record as of the
of
business April
5,
;
COMPANY
Incorporated
National
48
Fuqua Director
E.
B.
HUGH W. LONG and
Distributors
15 William
of
York 5, N. Y.
165
R.
Fuqua, Secretary of Ed¬
Parker Company, Inc.,
Broadway, New York
bankers,
has
investment
Distributors
Wall Street, New
ward
elected
*
a
City,
been
Director of Frailey .In¬
dustries; Inc.
THE
COMMERCIAt & FINANCIAL CHRONICLE"
Calls Bank Nationalization
phshedr its nationalization, is em¬
powered to- "request information
to
A Phase of Socialism
->
,
<
,
Independent banks
the public has
a
are
bank
nationalization in
countries.'
other
•
•■
^Throughout the world; banks
ere
feeing nationalized," the study
joints out.-"In England,Russia^
France, panada, Australia ■ and
'many other countries, the
ments
govern¬
have
acquired the central
banking systems. In Russia and
Czechoslovakia,
been
all
banks' have
nationalized; while in France
and New Zealand some of the
commercial
banks,
•central
banks, are
under government
well
as
ommendation."
•\Critics
large
uii'ii wiii1''.'!'
.
Nationalization
would
confidential
bf
also
*i»'^ uil'ng;
w.-iXo
■ •
relationship
depositor., As
an
say
once existed between
that- bank
and ^he rammercial. bankers will
be lost...
YiY
N, Baxter Jackson, president of
the
Chemical
Bank
&
now
duced
enough; to -fill
own
E. Tree, Assistant Manager of tne
Foreign Department of the Bank
our'
■
needs :of
Ytwith independence being taken
-
the
ex¬
now'
away from central banks- all over
the, world," - the analysis - con¬
cludes, "it is a tribute to the\banking system-of' the United States
and the
example of how
•that efforts
this might be brought
about, it is
pointed out that the Bank of
fohe
of
and
.are
Communism
widely experienced in-foreign
banking.
fill
not
themselves.:
Our
Services
limited
are
could
to
of
hud
will he available jto persons
rcon¬
free enterprise,
nected
of
-reas^Yuhr iar&Ah important
which
banks
part."
being brought
ownership and
c-rnments.
The first of these con¬
trols sought js that of the instru¬
ments of production, the
control
©f" the
inherent collateral indus¬
instance, in England
"transportation, power, mining and
For
other basic industries and
services
are to be
socialized. In Russia, of
not only the basic indus¬
even
the agricultural
but
^production facilities
cated by the
were
confis¬
Government.
,
"The Ultimate objective Of
>,
na¬
tionalization is political control.
Once this has been
obtained, the
power of the
Government
may be
exercised without
restraint, either
through a dictator or a political
bligurchy. Tbus, th#: nationalize*
tion of banks is a serious
threat
to free men and free
institutions."
The two chief claims to eco¬
nomic benefits of bank
national¬
ization, the article notes, are that
•;«:
teouriv
it gives to
trol
the government con¬
the allocation of
capital,
over
both
as
to its
employment and
•
fr-g1; f
V:
of
credit
banks
from
to
the
privately
government.
as
'm
tion and
employment, and there¬
fore the government
should con¬
•
banking.
IRANSITION from
T
curtailment
Powder
"Mere
availability of money,
credit and
capital," says "The In¬
dex,", "by
no means assures either
production
are
or
employment, which
influenced
by
non-monetary
aur well
as
monetary
factors.
Spending and investment policies
of
businessmen and the general
public also bear
directly upon the
volume of production and
employ¬
ment.
"An
<
of
illustration
these
the
factors
is
the
effect*
furnished
bv
experience during the 1930's
in this
country.
ply. in this period
ever
of
before in
United
States,
»»*■»««
owned
It is
contended that these, factors af¬
fect directly the level of
produc¬
trol
of
war
Company,
plant operations
are
to peace has meant
production
nine
by
of
no
Hercules
whose
major
located in the South.
larger than
history of the
was
while
such
em¬
of
the war, the company
fabrics,
into
r^yon,;
continued its huge
paper and film.
lacquer,
capacity
for
the
plastics,
paper*
producing
of
on
uses
exploration,
Y-YY
Y -YY
Savannah,
East
"%
>
Point
'.M
'
and
producing
are
making, synthetic rubber and other indus¬
-
are
improvements
included
in
to
-
these
the" company's
.
r..
;
•
*,
Southern
$30,000,000-
now under way.
In
the meantime, demand for the
Company's products1
is
are
raw
'Y
at
postwar construction program
naval
stores products which find their
way into countless
basic
'.Y' Y*;V
plants
Additions .and
commercial applications.
The
oil
,
Ga., and Ilattiesburg, Miss.,
quantities
'
enlarged
lacquer, insulation and
tremendous
mining,
tries.
plants
Plants at Brunswick,
industrial
chemical-materials required extensively by
coated
other industries.
are
right
gone
for
Brunswick, Ga., and Mqrrero,
The ethyl cellulose
plant,
also at Hopewell, is
producing at newly
metal
pro¬
basic
plastics,
and
material
so
great that most of the Hercules departments
operating at capacity, with orders sufficient to
?'
*
below
the
"This experience
indicates why
are
coal
as
Chemical
duction of chemical cotton, which is
processed by
industry
Bessemer, Ala., has
explosives—-but
'
ployment
remained
level of the l§20's.
further controls
at
high
Hopewell, Va.; immediately following the end
.
the volume of
production and
plant
•
At
satisfactory
borrowers, could
obtain
ample
funds* at Jow interest
rates, yet
The
making
quarrying, non-metallic mining and construction.
The money sup¬
the
'
/r$
/>0\»0!PH
to individual
firms, and that it
transfers the control and creation
>
for
these
«* '■
,
plants is the pine stumps found in the
V.
,v
..A
»
Yr-
,;;.l
-?
keep the company's 10,000 workers busy for
many
cut-over lands of Mississippi, Georgia and Florida.
months ahead.
'
.
.
,
v
|§
i-
sought, and
yd#natjonaliihtipn-pro^
result,
in
a
.condition ; under
which the government
decrees the
at which- each man
must work,
and the amount
he shall be paid.
Another
vTtfutionalization
advertisement
in
the
featuring Southern developments.
job
companies*
is
ready
to
do
its
series,
"by
Equitable
Securities
Corporation
Equitable has helped to finance many Southern
part
in
supplying
others
with' capital
funds.
:of commercjar
banks would remove the
element
:of competitiod
which is
Ufdistincf
advantage
to the public
since the
banks are now
Competing keenly
for deposits and
loans.
Moreover,
it would tend to
put the borrower
completely jn the hands.of finan¬
cial bureaucrats and
would trans¬
form the
banking system into
a
gigantic
open to
governmentmonopoly
manipulation for political
and subject to politi¬
expediency
cal control.
.Under such arrange¬
ment, it would be possible for the
•
NEW
T A
'
■
t;
.
1
YORK
Ml MV
ikjue
HIS
HA R T FO R D
3 H AM
Securities CorpGration
GREENSBORO
CHATTANOOGA
BROWNLEE O. CURREY, president
TWO WALL
and
with\ the United Nations
Organization -exclusively.
- is
only
toward the acqui¬
sition, of; other controls by ^gpy ^
jcourse,,
office
withdrawal,. eheck-cashing
foreign exchange facilities
jtbe initial step
tries:
the
providing deposit,
production-structure which
maade
this possible: was built;
up under
to
principal
countries- "that
and
bring the Federal
Reserve
System
under -public
ownership have made little head-
Eng¬
land, under the act which
facQpm- j way.
the /
exponents
operation.
'
'. • "Bank nationalization
tries.
Co.
supply, a part of the
needs but to-
the
as
Trust
,
commercial
endanger
isting; between the -bank
dustrial and agricultural economy.
"It is worth
announced the opening on March
cthat British bankers
remembering that
Sank of England .under in the conflict just:ended, when 25 of a branch office at Hunter
Covernment ownership ;wUl f be production became a
matter of College, the Bronx,, to serve the
a;.
^ dominatedanatitu? national life and cdeath, ouiYfree United Nations Organization. The
tion, and that the intimacy which enterprise system not
office will be in charge of Alfred
only pro¬
government to siphon off the re¬
sources pf some areas for the ben¬
efit of others.'*
'
;Y banks
Y
io Serve IISIO
1
fear the:
Index,"
igji
bankers;" and with the authori¬
hanking system, : with its thou¬
purpose "of securing that effect is sands of individual institutions, is
given to iny such request or rec¬ peculiarly well
adapted to bur in¬
essential to the free enterprise
system and
1
their preservation,'The
gujj.it ■'
Chemical Bank Opens
Branch at Hseter Cell,
the
Government during > two
great wars arid a World-wide de¬
pression.
Further,' our present
of, the Treasury to' "issue
directions to " any bahker tor the
r
very real stake
Quarterly publication of the New
York Trust Co.* declares in a
study
of
*
ing
zation
Publication of New York Trust
'Company Sees Danger of Political
Control and Maintains That
Independent Banks Are Essential to
! Free Enterprise, Says Public Wili Suffer
If Competition Among
Banks Is Eliminated.
doubtedly' is that' the system has
operated so-successfully in financ¬
from and make recommendations
STREET, NEW YORK 3, N. Y.
THE COMMERCIAL &
1806
*.v
Economic Policies for Peace and Prosperity
v
ple want this high-level economy us
win the tenth and final
round.
duplicated in peacetime. They will
We must maintain our program
feel that something is wrong, as
indeed it will be, if it takes war to of preventing inflation not only
through direct controls such as
make a full economy.
Our people wish to reach these price ceilings but also through less
direct deterrents like taxation. We
economic
objectives under the
need large revenues not only to
system that built us a greaf na¬
help the battle against inflation,
tion and will build us a greater
(Continued from first page)
but I wish to emphasize, in turn,
the
that
world does
not
stand a
chance of
haying a stable economy
unless this country has a sound,
Other coun¬
recognize the major impact
our
domestic policies and
high-level economy.
tries
that
.
achievements have upon
the con¬
influence and strengthen
each other for good just as during
a
depression general contraction
can
lead
us
into
a
vicious down¬
ward cycle.
and longproblem
and our debt problem is a high
level of production, employment,
The
only
desirable
term solution of our tax
and national income.
A large tax
adoption of fair currency
fair and equal terms.
such a program
for world recovery.
We know that it is good for Amer¬
ican business. It is because of no
We believe that
is
a
„
can
basic
economic
to try out its newly-learned Washington is working to cut back
We cer¬ to a peacetime basis. In the eight
tainly have a made-to-order op¬ months between June, 1945, and
portunity to reach a "high level of February, 1946, the rate of our
eager
objectives production know-how.
be stated simply: vast
produc¬
tion, a good job for every- man
seeking employment, a high na¬ production and employment. This
can be one aftermath of war that
tional income, and a full Ameri¬
is pleasant.
can standard of living. To find
and carry out all of the ways and
Favors Price Controls
means to these simply stated but
This good fortune, however, is
most important objectives will re¬
quire attention and action on not inevitable. We could dissipate
quickly our energy and our re¬
many fronts.
During the war our people serves in spiralling prices and
markets. We must
learned what it is like for the job speculative
to seek the man, and they also continue the fight against infla¬
All through the war we
learned what a terrific productive tion.
bested this insidious enemy. Let
capacity this nation has. Our peo¬
was decreased nearly
We are on the road to
expenditures
two-thirds.
a
In view of the
balanced budget.
fact that
our
current expenditures
much less, the Treasury does
not need to maintain as large a
are
States
they are, but even more because a
world is likely to be
world. In contrast a
prosperous
a
peaceful
raked with economic war¬
world
fare
cannot «be ;a"
stable en¬
and depression
world of security and
during peace.
the stage
international
economic program can be, and is
being, put into effect. The big
danger is delay. If we wait too
long, continued reliance on war¬
time currency and trade restric¬
tions may make it much more dif¬
ficult to remove those restrictions
later. That is why the success of
We
reached
have
where much of our
program depends in large part
securing prompt adherence to
these fair currency
and trade
our
on
practices. Unfortunately,
England
put these prin¬
will not be able to
cipled into effect until she is
assured, in one way or another, of
necessary food and raw materials
to feed her
people and her fac¬
tories.
The Loan Agreement
with Britain
England's international
economic
position was disrupted by the war.
In 1944 her exports were only 40%
of her prewar volume. Her pro¬
duction was diverted from goods
export trade to the materiel of
England sold many of her
foreign investments. She has lost
the income from these. Similarly
she has lost much of her income
for
and trade practice.
At Bretton Woods
resulting
though
world, not just for the
material benefits, important
adopt a comprehensive policy
of international economic cooper¬
ation to restore world trade and to
establish standards of fair cur¬
made much
however, that we
urge this program on the United
Nations. We want a prosperous
wants the United Nations
We have
necessary
sordid motive,
to
rency
and
trade practices will give all coun¬
tries access to world markets on
high level of income is less
burdensome than a small tax from
a
low level of income.
We can
from
standards of living.
raise
tc
The
Let us recog¬
Obtaining the Objectives
j
i
employment,
and
their importance at
Our
'if'.
•
and
production
of
but also for the very practical
nation—the system of free enter¬
have that high level of income.
least as prise. Again they are right, for purpose of meeting our expendi¬ The war has demonstrated that
tures.
much and put our domestic econ¬ the system of free enterprise not
this is a 200-billion-dollar nation.
Our
nation
should strive to
omy into high gear.
only preserves the human values
It has also been demonstrated that
make both ends meet just as every
The second basic part of our job we hold dear, but it affords the
we
can
have mass employment.
family that composes that nation
best opportunity of material prog¬
is to cooperate with other nations
We are on the road to a sound, ex¬
must do. The postwar budget will
in building a sound world econo¬ ress,
There are, of course, threats
be large. The legacy of the war- pansive economy under the sys¬
my. We must do our part or more to the system of free enterprise.
tem of free enterprise.
in debt, obligations to veterans,
in making international coopera¬ The biggest threat is mass unem¬
and
maintenance
of sufficient
Foreign Economic Policy
tion work
and in establishing ployment.
armed
strength — accounts for
Our foreign
healthy
economic relationships
The
economic policy
great depression proved most of the increase rii our ex-i
among nations. Such a .course will that mass unemployment could
goes
hand-in-hand
with
our
penses.
mean much to other peoples, but
domestic program. For some time
topple our system, The pleas of
it is not simply, or even primarily, the false
this country has stood for interna¬
prophets were strong. It
Budget to be Balanced
:
a matter of altruism. Assisting in
tional economic copoeration. It is
is ever to the credit of the Amer¬
We mean to balance the budget
the building of a sound world ican
people-that they did; not suc¬ as soon as possible. We mean to a good thing to learn from experi¬
economy is in our own self-inter¬ cumb to the starry-eyed' plans of
ence,
No one will gainsay that,
reduce the public debt whenever
est. A world economically healthy men with liquid
but people and nations have been
promises. Strong
possible and as much as we can.
means that all nations can produce
known to fail in the practice of
as we are, it is the wiser course to
On both scores I can report we are
piore. It means also a large flow avoid the danger of over-tempta¬
it.
The
policy of cooperation
well on our way.
of
trade
among
nations.
That tion.
among the nations is in large part
Since the President transmitted
means more markets for Ameri¬
a
frank
recognition
that the
Today we have the best oppor¬ the budget to Congress in Janu¬
can products. That means we can
breakdown in world economic re¬
tunity that we have ever had for ary, experience has shown our re¬
buy more goods to improve our mass
lations was ah important factor
production and employment. ceipts to be higher and our expen¬
standard of living.
A high level
in intensifying, here as well as
During the war a tremendotis de¬ ditures to be lower than was esti¬
pf foreign trade is a vital and in¬
mand was built up for most con¬ mated at that time. Our receipts abroad, the great depression.
tegral part of our domestic pro¬
There is, as well, a frank recogf
sumers' goods. At the same time a have been greater than estimated
gram of full production and em¬
nition that the economic warfare
large reservoir of savings to back because our national income has
ployment, vdth a higher national
of the 1930's was part of the mas¬
up that demand was created.
In¬ remained at a very high level.
income and a better standard of
ter plan for aggression by Ger¬
dustry is eager to match that de¬ Our expenditures have been less
living.
The United
mand with production and it 4s than estimated because all of many and Japan.
dition of the world.
nize
w
rt..
omy can
v
4,1946
Thursday, April
FINANCIAL CHRONICLE
,
v*
progress.
representatives
of 44 countries agreed on the es¬
tablishment and principles of two
war.
the Interna¬ from shipping, insurance, banking
Reconstruction and other services. In addition to
and Development and the Interna¬ this she incurred a tremendous
public debt. Each reduction of the
tional Monetary Fund. These two foreign debt among the sterling
debt means the carrying charge is
institutions
were
conceived to area countries amounting to some
less and our 'expenditures in turn
help promote good economic rela¬ $13,000,000,000 measured iri our
go down. Yes, the different fac¬
tions among nations^ and to re¬ money. For some time, what Eng¬
tors of a sound, prosperous econ¬
land sells will be far short of what
move as far as possible the eco¬
cash balance,
and
we
have twice
made substantial reductions in the
great
tional
institutions,
Bank
for
irritations she must buy, nor will she have
incpme
from
other
god of war. sufficient
sources to make up the difference.
Bretton Woods is perhaps the
That creates a difficult problem
best example this old world has
for the people of England. It is an
seen of so many nations putting
their heads together to solve their urgent problem that they cannot
decide on the basis of abstract
common problems in the interest
principles. To assure the flow of
of economic peace among nations
essential imports during the next
and in their own self-interest; The
few years, they must have some
representatives of 44 countries not
help from abroad. To restore their
only agreed on the fact that these
wartime economy to high stand¬
economic problems should be met
ards of efficiency they must in¬
but also agreed on a complete and
crease
their export trade.
The
basic constitution of principles for
policy that England chooses must
the two novel institutions. By the
have the very practical effect pf
end of 1945 more than enough
assuring her people that they can
countries ratified this work so that
eat and work in the five critical
it
could become effective. We
years ahead.
It must offer the
have
just
been
to Savannah,
opportunity of expanding Eng¬
Georgia, and there we established
land's export trade to the level
the World Bank and Fund as liv¬
nomic
and
financial
that feed the greedy
NOTICE
TO
HOLDERS OF
CITIES SERVICE
COMPANY
5% Debentures Due 1950
principal
redemption on
June 1, 1946, at 102. This amount constitutes so large a pro¬
portion of the total of such series outstanding that a substan¬
Service
Cities
of its
amount
Company is calling $35,000,000
>
5% Debentures due 1950 for
tial number of the holders
thereof will be affected.
ing organisms, Again at this meet¬
ing there was a re-dedication to
the efficacy of effort and again
there was a solemn resolve to
make the discussion process
Again, as at Bretton Woods, there
was not only a meeting of the
After
Juner l,11946' no1 further interest
as are
will accrue upon
called for payment on
that date.
living
and the op¬
eration of her industries.
One choice is for
cept
fully the
England to ac¬
program
United Nations. She
of the
would do this
by cooperating promptly with the
fair currency principles of the In¬
meeting of our
ternational Monetary Fund and
hearts-. The( spirit of those meet¬
with the fair'trade priiioiplfes "of
ings builds a firm foundation for
the proposed International Trade
faith in the future.
Through the International Bank, Organization. This would mean
minds, but
such Debentures
work.
to maintain the
necessary
standard of her people
also
a
England would remove her
countries will find it possible to
wartime currency controls without
reconstruct
and
develop their
waiting for the end of the post¬
economies.
They then can pro¬
war transition, period.
Then as
duce more; Through the Interna¬
world trade grows England would
tional Fund, they will remove
share in this growth and her in¬
monetary restrictions and substi¬
creased exports would in time pay
tute fair standards of currency ex¬
for her essential imports.
change. All countries, then, can
This is the choice that the peo¬
that
The individual numbers of all Debentures
tion may
called for redemp- j
be obtained from the Company or from the Trustee, J
Bank, 11 Broad St., New York 15, N. Y.
The Chase National
This notice is published as a service to all persons
affected. It is not intended nor is it to he construed
as
affecting the formal legal notice of redemption.
CITIES SERVICE COMPANY
Sixty Wall Street, New York 5, N. Y,
trade more. And the
United States
proposed that an International
Trade Organization be established
to reduce other barriers and dis¬
criminations
that
hamper
the
has
growth of trade.
Through this program, the Unit¬
ed Nations can put into effect the
fair currency and trade practices
which will be conducive to a full
flow of trade among the nations.
The expansion of world trade will
benefit all countries. It will make
it possible
to maintain high
levels
ple of England would
England's economic and
prefer.
political
traditions and interests argue
her to find a solution
for
to her prob¬
lem within the
framework of a
world economy.
The difficulty is
effect
the
that
of
expanding
world trade on her exports may
not
come
means
a
few years. In the
she
must: find some
for
meantime,
for
continuing her essential
1807
<*
imports. She needs help to follow
this
course.
her wartime currency and trade
controlsi She would form a Brit¬
ish economic bloc. Countries that
wish to sell to England would be
compelled
to
take
British exports.
whom she owes
payment
in
The countries to
$13,000,000,000 in
blocked
sterling would be com¬
pelled to take British goods in
payment of the debts. Our trade
England would be
trickle
a
under such conditions.
In fact the
of a British economic
bloc might exclude us from trade
with most of the British
Empire,
formation
the
sterling area, and the
coun¬
tries with which England has es¬
tablished
trade
and
payments
agreements.
the fair trade and currency
prac¬
tices for which we stand.
Eng¬
land's action will set the pattern
for the whole British
sterling
Empire and
for
and
area
many
countries in Europe.
These coun¬
nearly one-half
tries account for
of
the
international trade of the
entire world.
The continuation of
currency and trade restrictions in
England
i
-
hK 1
•>'
s
ff
s
dissolve
the
United
enormous
an
the
trading
sterling
These dollars could be used
don.
only if allocated, and London did
not
allocate
unless
the
goods
wanted could not be obtained
in
sterling area country. Amer¬
producers lose markets, and
fast, under that system. Under
the provisions of the Financial
Agreement, every fcountry in the
sterling area will have complete
any
ican
freedom
to
wishes.
its
use
dollars
as
it
All dollars that the ster¬
ling/area
countries
receive
for
their exports could be spent in the
United States without obtaining
allocation from England. That
an
India could
dollars to
use
buy American machinery instead
of being forced to buy English
machinery.
3.
Current
exports of
goods
and
services
from
the
United
*
amount owed by England. Begin¬
ning in 1951, England is to repay
payments and to enable her to
the credit with interest at 2%. She
will do this in 50 equal annual
trade restrictions.
interest would be resumed
as
trade
that American
com¬
ty in getting their earnings out of
England will now be paid in dol¬
lars.
For all practical purposes
can
be just
of payment for their sales
England as they were before
<
sition that if conflicts between
re¬
tions
and
currency
'
:,
,.
the United
States.
The
credit
her
essential
modest level.
phasize
imports
that
England
will
war
a
repay.
rate
cost
It is not
is
a
only
an
credit
to
of
the
to
which
meet
money.
be
Britain's
economic
with full faith to
have
defend
to
ourselves.
We
would retaliate.
That
fare.
would
be
Probably
economic
war¬
would win, but
it
would
be a pyrrhic victory.
World trade would be destroyed,
and
we
all countries would suffer. If
England
and the United ■States
should drift into such a policy it
would
be
would
find
and
our
land
tragedy for all.
a
trade
our
We
decreased
people unemployed. Eng¬
would
find
her
standard
of
living deteriorated and her peo¬
ple v impoverished.
And
other
countries would
construct
be unable to
their
bombed
re¬
and
wrecked economies.
The hope for
economic
coopera¬
international
tion might be lost forever.
The
consequences to world prosperity,
and even to world peace, would be
disastrous. That is not the kind of
world
..
people want.
our
Our basic goal is to establish
a
world in which countries can live
and work together in peace and
prosperity. International econom¬
ic problems can no more be solved
by economic force than political
problems can be solved by war.
Out of discussion and
agreement
between the representatives of the
United
States
and
of
England
proposed
Financial
Agreement now before Congress
for approval. We found a way to
the
came
help
-
England
within the
meet
her
problem
framework of the fair
currency and trade principles that
have been accepted
by the United
Nations.
Our representatives
agreed
subject to
the
that
of Con¬
gress we would open a line of
credit of $3,750,000,000. to be used
by England to pay for her most
essential imports. Their represen¬
tatives agreedi! in turn, that sub¬
approval
ject to the approval of Parliament
they would commit themselves to
remove
various ^wartime
restric¬
tions and discriminations.
What England Undertakes to Do
In
brief, this is what England
undertakes to do under the Finan¬
cial Agreement;
1.
Within
to
agree
a
year,
unless
we
a
temporary extension,
will make all sterling
England
arising from
current
trade
con¬
vertible. England will thus return
to the free
of sterling in inter¬
national trade that she permitted
before the war. ; If Mexico and
Egypt export to England they will
be able to
use
use
the money they re¬
ceive in any country.
,
they- could/- convert
That
the
means
sterling
into dollars and
buy radios or re¬
frigerators m the United States.
2.
Within a
.
year,
unless
we
The
make
we
now
may
England, will
fund
shall do everything in
to build such a world.
used
current
their
6%.%
series
will
power
B,
be
Trust
We have started with the propo-
made
at
the
:'
r
import
will be administered in
does
not
-..v
ness
controls
a
manner
asphaltic and asbestos products
pany's annual report to stockholders, shows total assets of $3,784,-
discriminate
American cotton, tobacco,
includes the manufacture of
used for these purposes. As of December; 31* j.945, the company's
consolidated balance sheets as audited and presented in the com¬
952.87; total current assets of $2,888,892.01; total current liabili¬
against American products.
That
means England will not
keep out
ties of $979,938.36 and earned
grains,
surplus of $1,848,723.54.
fruits and nuts, or our industrial
products in order to buy these
same
goods in other countries.
Any quantitative limitation that
England finds it necessary to im¬
pose on her imports will be ap¬
plied on an equal basis toward all
Condensed Consolidated Statement of Income
Calendar Year 1945
Sales, including gross income front finance fees
operations of subsidiary finance company.
countries.
England
will
the
support
on
$5,728,370.12
Cost of sales,
including branch office, selling, general
charges on accounts insured and provi-
expenses,
American proposal for an Interna¬
tional Trade Organization to re¬
•
h
•
sion for doubtful accounts
Jv
.
4,881,242.33
duce trade barriers and eliminate
restrictions.
In
this
i
way,
of
the
United
805,953.45;
$52,500.00 for
and
profits tax
excess
376,000.00
.W$
Depreciation and amortization
489,953.45
provided during the year 1915
charged to
charged to other profit and loss accounts.
was
y
in the amount of $47,832.01 of which $25,735.04 was
costs and
In the long run,
trade
income, including
on
Net income
asked
England
to
adopt these
principles because
they will help world trade and
fair
taxes
Nations
this year.
We
have
these
847,127.79
;
.18,'825.66
Provision for federal
Trade Conference to be held later
American trade.
■■
■
Other income (net)
England supports our policy of
expanded trade, with all countries
having access to world markets on
fair terms. England's support of
our proposal augurs well for the
success
$22,090.97
was
"
currency
i
practices will help England;1 too:
i
With expanded world trade, Brit¬
ish
exporters
will
find
better
markets. But it will take several
•
Record of Dollar Volume of Net.Sales and Earnings
,
i, <<
"
:
Net Profit
,
„
Net Earned
*
after
Ne.t Sales
Year ;
before British ^exports are
increased
sufficiently to make
Federal Taxes
,
Per Common
Share
$1.10
years
;
is
to
secure
England needs
vital interest in
land adhere to them. Much of the
credit England can get
only from
us.
Under the Financial 'Agreement,
England can draw upon the line of
credit of $3,750,000,000 until 1951.
The money is to be used to pay for
her imports and other current
needs. Any part of the credit not
by
then
will
reduce
if'-. 1943
^ 5,010,738
5,129,493
A copy
se¬
curing British agreement to these
principles and she will help Eng¬
used
377,905.60
%
1945
she will get from other countries.
a
$540,403.30
4,112,110
1944
imports es¬
sential to her people and to her
Canada has
$4,444,213
1942
'■
the
economy.
Part of the credit
1941
y-
%>■ k:■
good her heavy foreign exchange
losses during the war.
In the
meantime, England needs credit if
she
vCIX
Tilo roofing company, Inc. is one of the larger organizations
engaged in the application of roofing and siding materials for the
renovation* repair and maintenance of existing structures. Itsbusi-
American products from
the sterling area, or to put our ex¬
porters at a disadvantage in com¬
petition with British exporters. :
England's
;
not
exclude
trade
of
ica, 115 Broadway, New York 6.
Summary of Annual Report
This large debt will not be used to
6.
office
Company of North Amer¬
:?V
British instead of American goods.
which
bright future.
Holders of
shape
v
force
these countries holding more than
$13,000,000,000 in sterling to buy
5.
a
blocked
sterling bal¬
ances will be settled by England
and the countries concerned. Any
payments on these balances, made
now or later, will be free for mak¬
ing purchases in any country, in¬
cluding the United States. That
means
peace.
Redemption of Banco
i
war.
4.
for
Nacional (Panama) Bonds
i
Our position in world trade
would be threatened.
We would
area.
foundation
guaranteed sinking
20-year gold bonds,
due May 1, 1947 of
Nacional
We have one; more chance to Banco
(de
Panama)
build a world in which countries are being notified that all of these
can
live and work together in bonds
outstanding will be re¬
peace and prosperity.
We are de¬ deemed on May 1, 1946 at 102 $£%
and accrued interest. Redemption
termined that theUnited Nations
credit, it
must
at one time
another, have thought of the
decisions
Govern¬
borrowing
The commonway is to deal with such
problems through discussion and
agreement—through international
cooperation. Cooperation on po¬
litical problems that affect world
security is essential. But it is not
enough. We must provide a sound
We have made good
building a sound and
expansive economy at home. If we
continue to apply ourselves, if we
exercise the same intelligence and
unity of purpose that we did dur¬
ing the war, we can look forward
the destiny of the world for gen¬
erations.
years.
unconditional
national problems.
sense
decide the fate of nations? We live
in just such a critical time. The
still
a gift.
It is a
loan which England is to
It bears interest at 2%, a
comparable
ment's
by fire and sword, some other way
must be found to deal with inter¬
wondered: Did people know then
that what they were doing would
a
em¬
This credit is not
loan,
na¬
settled again
great turning points of history and
austere stand¬
an
be
progress in
I suppose all of us,
consumption, little differ¬
ent from that of the
to
cooperation.
tor in our national economy.
or
not
are
We have made good progress on
the road of international economic
production and / employment.
Foreign trade is an important fac¬
to
on
I should like to
fair and equal basis.
a
of
England will enable her to main¬
tain
on
country in carrying out our own
policy of maintaining high levels
as sure
the
wartime
The expansion of international
trade will be a great help to this
provi¬
a
forcing a default.
The greater part of the credit
will be used to pay for exports
frqm the United States. Directly
and indirectly nearly all of the
money will ultimately be spent in
have to enforce
means
kets
as soon
sion to take care of an emergency
situation is certainly preferable to
ard of
panies which in the past have ex¬
perienced considerable difficul¬
Such
recovers.
States to England will be paid for
That
her
move
This
Financial
Agreement is
payments.
good business
for
the
United
The principal of the credit due States. The credit we extend may
each year must be repaid without prove to be one of the most im¬
qualification. Under conditions of portant investments we have yet
severe depression: in world trade,
made in world peace and prosper¬
and
under
objective standards ity. Not only is the $3,750,000,000
written in the Agreement, the in¬ to be repaid, but American busi¬
terest due in. any given year ness v will, reap
rich dividends
would be waived, but payment of through its access to world mar¬
in dollars, or if paid in pounds,
the money can be converted into
dollars
by American exporters.
in
isolate
.
the war,
when a
sterling area country received
dollars they were pooled in. Lon¬
would
to
'
»•
dollar pool. During
under the dollar pool,
American businessmen
be
"•
temporary extension,
a
will
will
necessitate
their
continuation in large areas of the
world.
Their
practical
effect
States from
1
area
means
England's choice is very impor¬
tant to us. Our
program for inter¬
national economic cooperation de¬
pends on having England adopt
the
to
agree
Britain
The second choice is for
Eng¬
land to continue and even extend
with
I 1
the
■
:
412,135,10
.
.74
,
•
■
.82
477,326.11
5,728,370!®
.96
489,953.45
.
1.00
of the Annual Report, which includes the financial statements
of the Company, may be obtained upon request,
'
'"'Tp/v
X'.f
* fir.
*•'1 r'
1
V-1
*V
^
' i-,h '
''
Tilo Roofing Company, Inc.
STRATFORD, CONNECTICUT
r
THE COMMERCIAL & FINANCIAL CHRONICLE
1808
settle these wage disputes.
TBe created a "climate'! of conciliation,
solution would appear to lie in ef¬ wherein; both sides are willing to
forts that can be made to establish1
bargain
Non-Coeicive Government Action in labor Disputes
(Continued from page 1784)- t
the
fiscal
"1945
year ending
Conciliation^
the
-
handled
June 30,
Service
19,53'^ iri oot • disputes dn*
2,868 threatened Strikes
and 3,085 .actual striked or lo'Cl^
eluding
Of MI of these disputes
;outsi
only
5,691; werereferred or certified
to the War Labor Board*'
'
1
The "mediator1 can- work to ob^
tain a: settlement of the dispute
either oil a substantive' basis,' in
of
-terms
••paHi<mla^'%,ttoiiaihons-OT;
employment,, or on .the .basis of
agreed to procedures which, will
be followed by both parties iri
finally resolving the dispute.
%
*
If the mediator fails' to arrive
at a settlement of the dispute he
limited. The
use of this technique during re¬
cent months also indicates that it
can be used effectively only in: a
very limited number of raises arid
primarily where the conditions
-under
which •f the
fact-finding
boards will operate have been
largely agreed to in advance by
the disputants.
Some opponents
-of this procedure feel that it is in
effect compulsory arbitration since
if. is' difficult; for' eitheri Of the;
parties' to resist public pressurfe
to accept a Board's public findings
and recommendations. Others feel
that even a temporary restriction
tM-the-;right^tb strike: is/uhwar-
hnay recommend,^ that the parties
accept some other procedure rath¬
er
than resort to strike or
lockout.
During/ the-WaS" about • one-fourth
of- all the cases to which Concilia:-
■
—
j
have- such a grave im¬
the public welfare that
tries: may
on
■
deprived of their right to reject complished by guaranteeing price
management's offer and quit, or •relief, but it is difficult to imagine
that such a guarantee would be
if management has lost its: right
to
the only method.
refuse the workers' terms and
compulsory arbitration should be
to
assigned were referred
de¬
were
War Labor Board for
the
required.
tions of this kind indicate
aid
Function' of Mediation
Pittsburgh,
Pennsyl¬
strikes vitally af¬
fected the lives-of all the inhabit¬
:
country's
centers.
All
three strikes were settled during
the week by voluntary means, and
■while they' undoubtedly resulted
in some hardship, no instance of
loss of life or serious damage' was
reported as due to these wopk
stoppages.: The New York Tug¬
three*
in
ants
largest
boat
the
of
industrial:
strike
and
transit strike
the
were
Philadelphia
settled by "the
employers and the unions agree¬
ing to submit the issues in dispute
to final and binding arbitration^
Thus, while the parties were riot
able toCagree on the provisions to
be included iiritheir contract, they
did
agree
to a procedure., by
which rthe
contract /provisions
.
,
without further
rIrv jthe~ Pittsburgh
could be modified
strike
action.
situation the
union agreed to go
back to work without-
a
final
reso¬
lution of. its
Odenmnds^ merely, on
the basis of the appointment of a
three-man mediation board. Sub¬
ment
on
the desired
is
necessarily
if
be
ment. of
the part
ness on
of both parties
in maintaining sound
quently, efforts
tinguish'
of Labor and other public
officials
were
able
to "persuade
both parties to submit me issues
•
in
dispute to arbitration and the
strike was averted.
Fact Finding Boards and Coercion
As
;
against these vpluntary pro¬
cedures, other measures have been
proposed of a more or less compulsory nature.
The President's
proposal to the Congress for au¬
thority to appoint fact-finding
boards to make public recommen¬
dations barely skirts the corner
of compulsion.
The only coercive
made to dis¬
that these methods
cessful.
prevention
cilation
<
these
•
in the early
1
Solomon Brum* stated,
;
has
enforcement
no
issue in dispute*
v., - i-:?- <•
0 There eould be no better quick
description of the work these Com»
cilators perform than-rindustrial
relations, is primarily a problem
in human relations.. That: may
involving
a
and
mediation
humari
Service Successful
The long
,
❖
*8
Sj:
*
pn the day following the fore-,
going address, Mr. Warren spoke
.
before the national convention of
the
American
Association
Relations
Public
the
regarding
Conciliation Service
U.
S.
follows;
as
Seitled
crises
offers abundant proof of the sup-
•
;
equation which must some¬
brought into balance be¬
agreement can be reached.
how be
fore an
v.
of this technique.
cess
Conciliation Service was
in
1913 more : than
S.
U.
Since the
.
established
100,000 situations have been dis¬
posed of by voluntary methods of
conciliation
and
mediation.
At
present
300 Commissioners
some
of Conciliation carry on this work.
1 would like to look at
the reCOrd
for; the calendar year recently
ended fori a few minutes.
From
Labor-management relatiofts are
important phase of public re¬ Jan. 1 to V-J Day Conciliation
lations.
I am glad that your asso¬ Service disposed of 15,167 cases
ciation has seen fit to give some involving some 8,800,000 worker^.
time and thought to this subject. This total included 1,886 strikes
I am glad also to have this oppor¬
with just over a million workers.
tunity to discuss briefly some Threatened strikes numbered 1,415
aspects of labro-management re¬ also with a few more than a mil¬
lations problems, particularly as lion workers involved.
Another
they relate? to the work of the 10,000 cases were controversies
Conciliation Service.
embracing
5,717,000 employees.
This Service, as you know, has Arbitration, technical services and
the responsibility for maintaining other situations accounted for the
labor-managament relations on a balance.
peaceful basis. It is the sole Fed¬
From V-J Day through Dec. 31,
eral agency with this responsibil¬
1945 the Conciliation Service dis¬
ity aside from the National Labor posed of 7,288 cases
involving
Relations
Board, which , has
a more than 2,900,000 workers. This
quasi-judicial function, and the total included 1,199 strikes and
National Mediation Board, which
lockouts embracing about 707,000
has jurisdiction in
the field of employees.
Theatened walkouts
railway labor disputes.
numbered 1,453 with nearly 650,an
The
have
authority
the
for
Service
established in the organic act
creating the Department of Labor
in 1913, which stated, "the Secre¬
tary of Labor shall have power to
act as mediator and to appoint
Commissioners iri labor disputes
whenever in his judgment the in¬
terests
of
industrial
peace
may
involved.
workers
000
Contro¬
versies accounted for another 3,540
about
affecting
cases
1,400,000
:
employees.
These
impressive figures
when we remember
are
especially
that
no
that
mandates
thority;
require .it to he done."
6t Concilia¬
enforcement ain
they never issue
Commissioners
,
tion have
The: sixe
but that
Where Mediation Failed
purpose
has not changed.
The
is true that non-coercive meth¬ Service rests entirely on voluntary
It
orders,
Whether
V-J
before
or
look
we
Day
at
or
decrees.
the
record
since, it is
plain ^hat each week hris seen
ods, which were applied to the full prqeedures^ither/' party irf dis4 hundreds of industrial disputes
limit, did not immediately result pute;v'cari? reject* the-irit^veritihiff ."settled' without. fuss or ^ fanfare;
It is entirely, iriin a termination of some of < the of a conciliator.
"A-strike
main¬
tyranny,
most "important work stoppage^
during the early, part of the:-jtear|
For example, in the General Mot
„
conditions of his
Service
authority * nor is it in. a-position,
to determine^ the -merits of any
of the Service has grown
legal1 usurpation,, or overwhelm¬
ing
economic - domination."!
1
would argue that at this point
in history we are not prepared to
question the'right of ah iridividual, or a group of individuals, to
stop work whenever he considers
or
exist-j
part
of situations
continue
be free
agents with respect to the em¬
ployment of their workers, or the
employees to be free agents with
respect to the conditions under
which they are willing to work. It
is, in effect, to argue that the price
one has to pay for' democracy is;
too high.
During this same period, how¬
hundreds of disputes were
being settled every week, and
while emphasis in the press was
placed on the unsettled strikes:the
great proportion* of employersjariri
unions were working
out their
problems by normal negotiations;
and to industry than peace
the terms
not
ever,
.be less, harmful, to the State,
tained -either bystatutory
basis for
was
different
"t;
settle¬
a
a
as
failed.
any
four
are
In terms of the situation
conciliation
form of
to the
question posed must be in terms
-
mediation
large number of employees in key
industries', whefe it is felt that
"strike action." " Any answer
of
and
of March
1946 there are a large number of
strike 'situations, or
at least a
could have; and at' the opposite
side, there are revolutionists who
one
has
responsibility in the
of 'work stoppages;
wholly successful.
number
of
that One
Government
then it must be admitted that con-
possible should be done first to
avert, and second, to minimize the
ill effect of strikes, but that at¬
tempts to rule any strike "out of
order" are apt to result in a tyran¬
ny with more far-reaching un¬
desirable effects than any strike
on
emphatic reply
are highly sue-1
the- extent
the
further;
cari be?
further'
some
crime against society; some peo¬
ple agree that the merits of each
strike differ and that everything
with favor
To
that
feels
a
look
question posed
answered with the
ing
may
^
labor-man¬
the
then
'-permissible"
between
the union again threatened strike
action to" takei place 'on* Feb, .26..
Feb. -25; however, the- Secre¬
are
serve
argue that we should not
to permit employers to
,
intervention should go no
strikes and those which represent
philosophies.""
On
it
agement relations consistent with
a
dynamic and developing econ¬
omy.
On the one hand, it can be,
and has been, stated that no strike
should
be tolerated;
more
fre¬
sequently, the efforts of this medi¬
ation board were unsuccessful and
tary
than
effective
meant
dispute such
a
ment will not
so
settle¬
a
The
that the use of the strike weapon lasting industrial peace.
surprise many people who think
To condemn .voluntary methods -of industrial disputes as centering
can
be kept at a minimum and
wioleiice resulting; fronL its usej of settling labor disputes under -entirely on such economic issues
can be awMedc
In indrid detail,; such circumstances is to lack, un¬ as wages and -hours or union se¬
1 believe that the function* of con¬ derstanding of- the fundamental curity. Of course these issues are
important, but underneath them
ciliation and mediation is to make and long-range problems involved.
Conciliators nearly always find a
certain' (1) that each issue in dis¬ To urge coercive methods is to
goals. If one
preventing
different
one
atmosphere
an
if it should result in
the conference table a reasonable¬
all strikes or lockouts the answer
would
in\ .Creating
even
in
effective
meansr
v
-v
.
in
to
gradual narrowing of the
about a
tof settlement.: When
I would first-their.want -to ob*, this,atmosphere is present media¬
tain agreement that the function tion efforts can be effective. Com¬
of non-coercive methods: of ad¬ pulsion, on the other hand, creates
justing labor disputes is riot to an atmosphere of animosity and
.
vania.: -These
ready
be
must i
disputed issues, or to bring one of
the parties to? the- point where he
will agree to the reasonableness
Of the other's position.
The Cori^
.conducive
,
panies
Conciliator
bridge the gap if negotiations bog
down. He must endeavor to bring
plant. It is, in the last an understanding of the economic
analysis, :the pressure of this right problems involved arid an attitude
to strike or to lockout that keeps •of tolerance toward the views, of cilation Service seeks to persuade
the parties at the conference table; each other, on the part of the gen¬ the5 parties tqv settle their differ^
that tests their courage, resource¬ eral public as well as on the part ences by compromise rather than
of the parties in dispute, would, by an appeal to strike or lockout.
fulness and decision."2 e.<-;
Although most sugges¬
that its
cision by what waS in effect; com¬ application should be limited to
only a few rare situations, experi¬
pulsory arbitration. Since the war
pute is considered ori its merits and,
ence indicates that where such a
many difficult cases have been fi¬
as; dispassionately as possible; by|
technique is available for the set¬
nally resolved by the agreement
both parties; (2) that the divergent
tlement5 of disputes public pries-;
of the parties, to submit some; Or
points of view of both' parties are
sure and the- pressure of the party;
all of the issues in dispute- to final
thoroughly understood by each
^onomieaiiy
land binding. atbitratiOtt---thaf is, iri>. dispute, who;
weakest makes it difficult to'avoid other;; (3) that all possible, means;
voluntary .arbitration.
^
compromise pro¬
its
extension to labor disputes including (a)
For example^ during, the week
posals (b) suggestions based on
generally. Compulsory arbitration
ending Feb. 16; ;T946j/ except for
analogous situations? (c) the sub-;
machinery may take -the form of
mission of the
the Steel and General Motors dis¬
dispute to fact¬
single umpires, boards or labor
putes, the three strikes which at¬ courts. Whatever the specific na¬ finding or to voluntary arbitra¬
tained the greatest nation-wide
ture of the machinery the essen¬ tion, have been thoroughly ex-;
attention were those involving the
tial characteristic is that a third plored; and (4) that both parties
New York tugboat operators af¬
realize the implications in terms
party makes a decision which is
filiated
with
the v International
of economic consequences of their
binding on the parties in dispute.
failure to arrive at some kind of a
Longshoremen's
Association
of
settlement.
"
1
America,- AFLr the strike of the
Mediation Philosophies
Transport Workers Union, CIO,
If we agree that this is the func¬
To appraise the effectiveness of
Philadelphia, and the strike of the
these different types of procedure tion, and the only function of riom
Independent Union of the Ducoercive methods, and that ih
there.must also.be some agree¬
cpiesne Light and Associated Com¬
democratic
society
Government
tors
I believe that
.close the
avoid all strikes but is to bring to
persons.. who "argue
in particular indus¬
ThOre are
that strikes
pact
reality if the workers have been
'i&i- -/■ o.
ranted.
frankly and openiyv -the
atmosphere conducive to settlemerit;
This could have been ac¬
an
conference table loses aii color of
is probably
tiveness
Thursday, April 4, 1946
tors case and the General
fdrmalrrlt' issUe rio. difective&J: rid
orders.
ment in-industrial
Electric
the positions of the parties
a long period
of time and both sides appeared
determined to use the existing,, sitt
uation as a test of strength.' This
It stresses the human el6?
disputes. V-
;Mpreovef;
Kerilthy^d^Qctaiad
process" has. taken place against "a
background" of changing 'riationaf
policies and econorriic uncertainty^
r
:
Procedure of Conciliation
case,*
were
em¬
ployment unsatisfactory, nor are
we prepared to question the right'
of an employer tq
refuse the
workers' terms at any time he; sees
fit and close his plant. ; Too often,
I am afraid, the average news¬
deadlocked for
apparent deadlock still exists in
the Westinghouse situation.
Con¬
ciliation or mediation can only be
successful if at least one of ? the
.
wheni'tt'CfemmissibrieM^ assign
ed to' a case his first" jdb' is to get
picture of the whole situa{
tiori, both the formal issues arid
the humari angles that may stand
iri the- Way of real riegotiatibri; He
a
clean
To
Regional Organization
this
handle
Service
has
.
been
load the
decentralized
case
intp seven: riegioris^eat^witri;^
Regional Director; Cases are
assigned at* the* regional, level, and
in at least 99% of the; cases-set¬
own
begiris this- all imriprtarit spade tlements are reached at that level,
work- by talking privately with
AnadminiStrative>atMf:in Wash¬
^okeMeri fbr aach ride;;i It bfteri
parties is anxious to obtain a setf
ington: coordinates
the overall
happens that repeated interview
tlenientf and, of course, the aprirof
work of: the' Service and deter¬
paper reader is inclined to believe
are-necessary before the picture i
effort's iis
mines broad matters of policy/
that the use of the strike weapon, priate"' time for such
features of this recommendation
when both sides have a real'-de¬ clear enough for the Conciliator
■v' Many proposals have been* pre¬
particularly in a per.iod of emer¬
are
the
to suggest that the parties get to!
proposed requirements
sire to settle. "
• )' •"
j
sented-in recent months for some
that'union members continue work gency ..like the present; is an un¬
This Situation has been corripUi gether in a joint conference.. These
additional' type of- machinery* to
while the Board is carrying on its mitigated evil.'. > Not, only is the cat'ed
by the fact that the employ/- separate/and / private discussions
,
.
•
.
investigation and that employers
any
information required
make
available to the Board..
gested
procedure
Labor
economists
it
to
title
for
is
This sug¬
notr
new.
have: referred
under the
of compulsory investigation,
years
many
Advocates of this
procedure argue
one can go in
democracy toward compulsion,
that
a
but
it is,
as
far
right of wage earners to refuse to
work a legal right, it is also a
fundamental human right, and it
can
be argued further " that" the
exercise of this right is a neces¬
sary ingredient of a vigorous econ¬
omy.
"The
ties have either had
William H. Davis has said,.
sire
creative
adventure
of
the
third arer normally followed by' a
coriference / Of management
party—the OPA—is involved, in
obtaining a settlement of the dis¬
putes; Whatever the reason, it is
clear that one or both of the parf
-.MiM.
as
usually agree that its effec¬
at least have felt that a
ers
i
or
i
no
basic
det-
have lacked the ability to
•'' &
.—i
h j
'V.'.
2Testimony before the Senate
!Labor Economics, H. Holt and
Company,. 1925,: pf 268.. .
Labor
D.
Committee,
.
January, ,1946.
.
Washington,
^i
-
-
union representatiyeSr
/
This conference table
joint
and
•> "• v J
method,
which
gives
ment
chance to talk; things over
a
labor
and
manager
an
impartial "master of
ceremonies," is one of the- ke£
steps inConciliation.lt sounds very
simple yet actually the role is far
from ; ea^yr
Even §iteB:;? he-: hafe/
before
be1 established
to1
handle* indus¬
disputes.
These proposals
have been largely due to the fact
that a: few* difficult * strikes- of
trial-
long duration have been spot¬
lighted and the day-to-day settle¬
ment of labor disputes has been
played down.v Most of these pro¬
posals are based on the feeling
that the Government should take
ri mOre
positive position in settling
Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL
•
CHRONICLE
1809
While the term may not
strikes.
Iiave beenr used; rhost of them* in-!
volve "compulsory arbitration" in
one form- or
another.
Cost Absorption in Textile Industry Irving Savings Bank
(Continued "from
1784)
The
Opeiis Life Ins. Dept.
general has"
23.5%
tion
page
reached.
was
have
There
of price control.
cost of liv¬
As distinguished from compul¬ standards which were
developed been other cases where
risen
^cost de* ing in
arbitration, where the parties; were examined in minute detail creases have Offset cost increases jsince 1941 and 40.6% for, the
are retired
to-accept a• decision by both houses of Congress on at and the limit of absorption has clothing and apparel component
of a third party, the function of
least two occasions and received not
alone. This
sory
•
conciliation
is
to
conference table
a
bring
their
the part of both the employer
union so that the use of
on
approval,
They were also
by the courts and up¬
reviewed
the strike weapon can be kept at
a minimum and violence
resulting
clear indications of trends to in¬
its
more
detail*thefiuictibn Of^cdn-i flationary price leveis.
be
avoided.
In
Most
■
of
early schedules of ceiling;
ciliation or mediation is to make the
certain: ? {1) that each issue in) prices, stabilized commodities at
the level of October?; 1941 or at
dispute is considered on its merits;
those of later monthSTOf that year.
and as
dispassionately as possible
by both parties; (2) that the di¬
vergent points of view of both
parties
are
thoroughly understood^
The big freeze of GMPR selected
the level of March, ,1942.
Once ceiling prices were estab¬
lished for the bulk of commod¬
by each other; (3) that all possible
means including compromise pro-' ities the problem was to have a
pdsals, suggestions based on anal-' uniform standard to determine
ogous situations, or the submission' when they might become no longof the dispute to voluntary arbi? el"generally fair and equitable."tration have been thoroughly ex-1 In
other
words
to
determine
plored; and (4) that both parties when and how milch' they should
realize the implications, in terms be increased.
.!
'• !
Of ecpHdmib consequences, of their
The "Industry Earnings
failure to arrive at some kind of
—
settlement.
I would argue that in
a
society, Government interJ
ventlbh should^ go; no further/ - If
is' true, of course that non-coercivef
methods Which have been applied
to existing and recent* strikes havd
not
resulted
of
However,
as
in
"a
.1925,
harmful to
in
-"tHe • proihpt fer-J
work stoppages?
Solomon JBlum stated
all
strike
either
.
be
may
the .State
dustrythan
and
less
tb
in¬
peadd: maintained
by statutory tyranny;'legal
usurpation, Or overwhelming" eccM
nomic
This
demo¬
cratic
mination
Standard"
;
•
-
domination."
the
led
to
what>is known as
"Industry
Earnings
Stand-'
ard" which is the basis of cost Ab¬
sorption. This standard provides
—simply—that ceiling prices are
no * longer
generally: fair and
equitable if they yi|ld industry
overall return
an
its
on
current
worth which is'less than the
net
industry's overall return
normal.; peacetime period.
in
a
Thus;
To condemn voluntary methods For most industries the period of
settling labor disputes merely 1936 through 1939 is used as the
because these methods do not al* base
period.; This
corresponds
ways prevent strikes, is- to' jack with the
understanding of the fundamental Congress
long range problems involved! tax.s
base
period chosen by.
excess
profits
for
the
and
.'coercive methods is to
can hot continue to
Ormit'employers to be free agehti
urge
with
respect to the employment
of their workers pr the employees
to be free agents with
respect to
the
conditions
under
which
Let
cite
me
simplified ex¬
ample of the application of the
industry earnings standard, Sup¬
a
willing to work. ' It is in ef4
to argue that the price one
to pay for democracy is too
high.
'
>
feet
has
.
As
Behi^ Pfe J
Chain of Prices
on
truism that
a
man's price
one
increase is another man's cost in¬
Hence
crease.
increases
price
granted at any one level of in¬
dustry inevitably raise questions
of
cost
These
level.
of
terms
industry
and
next
in
earnings
related
some
which I cannot
Thus
the
reviewed
are
the
standard
now.
at
absorption
tests
develop in detail
if
fabric
a
manu¬
facturer's
price for a commodity
advanced, this r increase be¬
is
comes
ident, the Irving Savings Bank of
'
New York is opening a Life In¬
advances on surance ' Department ? under the
clothing and apparel will mean a provisiori of the New York State
dangerous trend to inflation.
BaHkittg Law and planned to
In my opinion, cost absorption, start issuing Life Insurance pol¬
icies about April 1. According t6
as I have endeavored to
explain
it to you—*simply : and in barest the announcement, the Irving has
detailr-is synonymous with' price been an Agency Bank for life??:
13%
of
further
significant
departments of other
savings banks since July I, 1940
and during that period has placed
approximately $1,000,000 in life
of
insurance
such
itself.
Unless
we
follow
a
price control today
this proposition.
heed
well
I believe
may
fices;;n5?Chambers
81st
wants to protect his own invest¬
ment and the future of his own
';
Street and.
Avenue,
New York.
business as well, as? the entire
if the converter's price is adeconomy of this great country.
I
vanced, this becomes a cost increase believe that he must therefore
to the garment manufacturer. If the
want
to
continue price control
garment manufacturer's price is until the danger point is passed.
advanced,, this becomes a cost I believe he may question (and
retail
or
%
?.
policies at its two. of¬
that every sensible .business man
ers.
increase to the wholesale
insurance
plan we cannot avoid an
inflationary boom of serious pro¬
portions. Those who are critical
control
cost increase to convert*
a
Street
Mr.
work
and
Barnet
.
has
First
also
started
reports
its
on
that
neW<
branch officd at 111th Street and
and the contract to
building
has
been
awarded: to the Edward Corning
Company.
The; new
building 4'(
will provide- deposit box facilities -;
Broadway
alter
the
.
perhaps properly? so) the Advis¬
ability of adhering: today to 1936- in the vault with elevator serv^
1939 as a base period in every ice. As a special feature the Bank
case? Perhaps he may find other
is making provision in the altera¬
detailed points on which adjust¬ tion for a room to be available for
use or f or meetihgs of community •
ment is needed? But I do not be¬
There- is no doubt that if this lieve he can achieve price con¬ 'organizations and civic associa¬
If is
?
policy had not been followed, the trol if he, is willing to pyramid tions in the neighborhood.
increases-in the cost of living re¬ every
cost
increase ; from ri its expected that" the New. Branch ^
i
sulting from price advances on source through? every successive ^ill^^emfor business late in the*
textiles and apparel would have level of markup to the consumer
admmer;bjr early fall.
been far greater than those which
examines
OPA
the'
possibility of securing cost absorptioif jat the next level before
passing- through price increases
granted at any prior level.
haVe occurred.
-
Maximum
General
the
Regulation
issued
was
in
"
the
spring of 1942, with the exception
Occasional
of
individual
adjust¬
ments, there have been
eral*
price
advances
fiber, yarn,
is
true
for
gen¬
no
on;
rayon
or fabric. The same
wool.
(Surely there
have been cost increases in these
fields in the form of labor costs
and in indirect costs.)
This is not
however, for cotton.
The
textile industry has been
true,
cotton
the
beneficiary of special "legis¬
standards required by the1
industry
Bankhead
which
manufactures
and
reports
and
1939.
for
current data
1936,r 1937,
Here
are
the
1938
facts:
Base
period "(1936-1939).
Av¬
net profit before taxes, $2
million; Average net worth, $25
million; Average net sales, $50
million; Current period net prof*
it, $2 million; Net sales, $65 mil*
lion; Net worth, $50 million.
by NLRB
.
lative
erage
Firm Cited
It is
pose we examine the consolidated
financial statements of the entire
they product A. We have
are
Effect of Costs
Since
injtn^jripst"; r^c^nt' fjs-f
<:caLj)erIdd? with|Carilii^s:"(b^erd
taxes, of course) in a base period!
argue that! we
.
distributor.
?
of
To
been
<
Price ceilings were imposed in
the beginning where there iwere
from
can
cases
held.
and the
use
been reached.
In such
no
price increases have
granted.
•
;
yet
the
to
reasonableness
According to an announcement
made by Robert A Barnet, Pres¬
segment accounts for
the cost of living and
.'Note that current net worth is
double
the
base
period
while
4Thd !5t tihuis office of't{ie;Na|
profits are the same as in the base
ional .Labor Belatioiis Bodyd; jtef
period.
Base period profit of $2
the
Brown
Amendment
Stabilization
-
Amendment
Act.
to
This
provided*
that the
ceiling
p'iTces for each major item made
in whole or major part of cotton
or cotton yarn so that the ceiling
reflected at least parity for cotton,
Administrator
conversion
able
profit.
such
a
the
Standard"
set
cost, and a reason¬
It is apparent that
standard
than
eral
must
in
is
far
more
lib¬
"Industry Earnings
that
the
Bankhead
Amendment restricted the amount
of
absorption that could be
cost
required.
The results are self evi¬
errihg?:itb? ufcual :&etioh;
million, adjusted for a 100% in* dent. Cotton textile
prices have ad¬
ases, has phargejl. jhe, Amerillh
crease mi netfwdrth,. becomes $4
vanced on the average over 20%
arfoundry
.miilioh. Sihce. current net ■ prof* since GMPR was
issued, practi¬
ctivity. for .:dismissing' a;' jyorkf
•it - is
$2 million ceiling prices
cally all of which occurred since
;an fnnn^ its Madison, 111,, plant
must; be, 'advanced
and
in an
June, 1944, when the Bankhead
ecausAbe'refund to;
/ambunti-sufficient to raise net
ccording to an Associated Rress
ispa teh on March 27,. Which, furier. adds;.
• J : 4?
'0*
,
Boai^4:Ordered
.
j
thelc^m^
profit
up
Brown Amendment was passed.
to. $4 million.
In
%;.is/ doriej by/adding $2 mililibh (the: amount of additional
profit ^tb;; bej allowed) ^ tb" net sales
•ahi'then;) bpmputin
he was fired for refusal
join the Brotherhood of Rail-
sserted
o
dy Carmen (AFE), and directed
he company to 'cease and desist
rom encouraging
membership', in
hat
|
orally^
"The Brotherhood was the desi¬
gnated ^bargaining unit in which
f. Roper Was
ombioyed^ but the
this 'ihcreasC
as a percentage of net sales.
The
price increase percent can thus
be
measured
accurately.
In this
is 3% which is de¬
example it
by dividing $2 million
rived
the current net sales
r.J
million.
the
example had shown that
industry's current earnings
exceeded
forms
either
~
rollbacks,
increases
ance
through
margin
or absorption of wage
granted since the issu¬
of the regulation.
Absorptive Capacity in Textile
j :
If this
garment field, although
important items are
all
margin types > of i regula¬
tions, cost absorption is neverthe¬
less applied in orte :of several
by
figure of $65
the
almost
under
V •"•'
Industry
~
Absorptive capacity of the tex¬
base
period earnings some
cases
virtually
been
increases
in net rfeachedv -We; have i considered
worth, no price increases would seriously" the inadvisability of re¬
be required.
Thus thp "Industry quiring • absorption td the maxi¬
lantvwhich; the Board decided Eai^hig^ Standard"-required cost mum extent required by law and
absorption by an industry up to in? most clsfes have left' a cushion
vas^ caused by the refusal of otheb
the point where current
earnings ever: blase period earnings for in¬
en,to wdrk with Mr? Roper be4
fall below the base period earn* dustries in: the
textile and gar^
atise of his
non-membership in
ings adjusted for increases in net ment' field. If any general
he Union.
price
worth.; Most of the textile and increases are hereafter'
granted
nion/did hot. have
closed; shop
Mr. Roper
as discharged On July 12, 1944,
fter a brief work stoppage in the
"The: Board rejected the
comp¬
any's contention, that' Roper wap
ired -for- leaving work' early in
delation of company rules.
"Harry.
Carlson,
NLRB
attor-
ery, said this Was? the first time
he local office has issued
f
a
adjusted, fof
garmeht industries'and the whole* for fabrics some of them may be
sale and retail sellers of their
passed through at' the
converting
products were earning
ably in
ruling
thi§ nature."
riod
earnings
consider¬
of their base pe¬
excess
when
ings were set. In
increases
were
when- the
limit
is catching
up
too
•
a;
•lause in its contract.
Long Distance
tile and garment industries has in
initial
ceil¬
some cases
price
later
of
required
cost absorp*
level, the manufacturing level and
where;
been
absorption
required
mar be
This is
calls
delays
go
through
are
a
seri-
probiem froitf the standpoini
as you
fewer,
V,
^fhe service Is getting better, hut we've still
gbf d g6od way to gd before
pre-war
we get
back
to
service.
we catch
tip with that, We'll keep fight on
going, att«d: try t6 make the recbrd event- better.
Once
already
of
distributors^
pyramided right througli
to the' consumer.
ou£
has
More Long Distance
hold the wire. Long
BELL
TBIriPHdNg
SYSfEM
w
Thursday, April 4,1946
THE COMMERCIAL & FINANCIAL CHRONICLE
1810
National Fiscal Policy
fairs
we
as
best
we
likely to bring.
*•
as
can
think
we
politician decrease the size of
the bushel when the apple crop
they can; and since many of them
are restricted by law or policy to
such investments or cannot find
lic
If, when a gold-coin standard
is at the disposal of the people,
the Government should issue a
other adequate outlets of a satis¬
thing like
.
.
from the gold-coin
standard deprived the people of
direct
control over
the public
2.' Departure
.
purse.
currency
important to realize that
when we departed from the gold-
people would demand gold rather
than this currency and thus re¬
veal the extent to which the Gov¬
It
is
standard in 1933
the people: in "this country lost
control of the public purse.
So
long as a country is on a goldcoin standard the people have a
direct and an automatic control
coin
monetary
and
credit,
whether issued by banks or the
Government,
and
consequently
of '< paper
money
the
the use of the public purse.
these channels have proved
fective indeed,r
There
•
probably no
are
inef¬
basic
principles underlying the nation's
fiscal and monetary affairs that
even begin to approach in impor¬
tance those involved in depriving
people of control over the pub¬
abandonment of the
metallic currency standard. When,
for example, a government is free
to issue money not merely against
a
nation's gold and silver assets
but dgainst debt, it is necessary to
a
lic purse by
realize
there is
that
limit to
no
i debt jmd, consequently, no Kfriit
to the supply of money that'can
be issued against it,
Germany
presented the world with a shock¬
ing illustration of this great truth.
It is worth, while to consider
just what the abandonment of the
gold-coin standard has meant to
the American people in connec¬
tion with the fiscal policies devel¬
a
gold-coin standard is
of the people,
disposal
banks should issue notes
or
cre¬
;
existence
the
Thus
coin standard, which
Government
of a goldrequires the
all
maintain
to
its
currency
through
otherwise be tested,
and to force the Government to
it
as
avoid
inflationary procedure in
an
its issuance of currency.
If, under
gold-coin standard,
a
Government
the
should
attempt
to issue securities at prices
deemed
too high, or if they bore a rate of
interest deemed too low, by in¬
vestors, many people would in¬
vest in gold rather than run the
risks
involved
in
investing in
such securities—they would pre¬
fer the safety of gold and loss of
to
interest
the
small
interest re¬
turn on securities and the risk of
Such pref¬
erence for gold would compel the
Government to pay a higher rate
a
drop in their price.
of interest and to sell its securities
at lower
prices in order to induce
invest their savings in
to
savers
This
securities.
Government
would have the virtue of making
Government borrowing more dif¬
which,
brake
on
would put
in turn,
Government spending.
This enforced higher interest rate
would also have the additional
virtues
of
providing
better
investors
ate
the, people, would
purchase securities at
prices, thus re¬
ducing the risk of a drop in their
prices.
;
deposits of questionable value,
demand pay¬
gold, and, by this action,
they would reveal their fear of
the banks' notes or deposits. This
would force the ; banks and per¬
haps the Government to correct
the
gold
situation.
is
a
judgment
Such
demand
reflection
of
for
popular
regarding the state of
suffered
as
a
consequence
by
in¬
of this
them
more
a
return
and
enable
to
reasonable
Since
people
cannot
obtain
gold, many of them invest in what
is widely regarded as the next
best
thing—Government securi¬
ties.
But many private savers do
have
investors
been
appall¬
The gold-coin standard, as the
people's automatic brake on their
banks
and
Government,
places
limits on the speed and reckless¬
with which the Government
ness
to spend the people's
And that is as it should
proceeds
money.
But
be.
apparently most politi¬
and abroad, do not
brake, and, in general,
they have sought to keep them¬
selves free from its restraining in¬
here
cians,
like such
a
fluences.
would
with
ment in
losses
and these institutional
vestors,
and
ficult
the
funds,
a
ing.
a
If, when
the
compile
savers
the Government to correct the sit¬
from that date until
at
their
for
great demand for
these securities.
But if we could
uation.
oped by the Federal Government
now.
nature
there has been
lacks
currency
on a parity with gold,
convertibility into gold
at par, guarantees at all times the
This direct and automatic control
by our people over the public quality of all. circulating Gov¬
ernment currency.
purse was swept away when spe¬
The inability of our people to
cie payments were suspended in
obtain gold coin domestically de¬
March, 1933.^
>
/
Such controls, as remain must prives them of the power to test
be exercised through less reliable the quality of our Governmentand less effective channels.
And issued paper and silver currency,
over
factory
as
the. money and credit policy of the
value of gold.
This manifested Federal Government, we would
preference for gold would compel find that the costs to these savers
ernment's
the unwise or improper use
over
value,
doubtful
of
such interest return
earn
It ought to be
this
in
instructive to us
to rea'd what a
country
highly reputable European econ¬
omist had to say about the gold
standard
as
brake—Wilhelm
a
Ropke in his "Crises and Cycles"
(William Hodge & Co., Ltd., Lon¬
don,
1936).
He said' (p. 175):
"The automatic safety brake pro¬
vided by the gold standard has to
be considered as an indispensable
part of our economic machinery if
we
want to be safe against real
disaster. '* We do not even trust
the locomotive
engineer to forego
safety appliances
in
spite of the fact that there are no
personal economic interests of his
at stake, and that his own person¬
al safety depends on his sense of
responsibility.. How
much
less
automatic
without
do
we
can
automatic
appliances in the case of
whose affairs are
in an atmosphere not
entirely free from personal eco¬
nomic interests, and whose lead¬
ers
are
responsible only 'before
God and history,'
writing their
memoirs
if
anything* has gone
wrong!
It is desirable that all
planners, all popular writers on
the 'end of capitalism,' and all despisers of 'orthodox' economics
should take this to heart, and as
far as the policy of trade-cycle
safety
governments
conducted
control
gers
a
shares
some
of
the
dan¬
of economic planning, here is
lesson also for the more enthu¬
siastic
of
advocates
monetary
management."
in
Government.
1933,
It
the
and
de¬
ab¬
in
this country, particularly since the
middle
1930's, have contributed
greatly to the loss of control by
was
removed
Administration
has freed itself from its restraints.
placed in the
The controls were
driver .and
the accelerator, anc
the people have been, arid{ are be¬
ing, taken for a wild ride.
These
fundamentally
government
perience has demonstrated cannot
Though the people who
pursue these plans know full well
that there is after all such a thing
work.
a
form
of
obj ective nonpolitical valua¬
tions; which are inherent in the
gold standard, arid for the true
values reflected by the free oper¬
ation of the forces of supply and
demand in the, market place*
To
have-r obj ective values
requires
that a nation have an objective
for
IN VEST MENT
Members
Other
BANKERS
New
Slock Exchange
York
Leading Exchanges
underwriters" and
distributors of
investment securities
standard, such
free
•
BROKERS OF
Private Wires
•
BONDS, STOCKS, COMMODITIES
Home Office: Atlanta
•
Phone LD-159
2S22ZS
cians
be.
from
as
the
as gold, which is
notions /of politi¬
Just
as* we
been
price
accompany
fixing.
-
With
as
the impossible, they will not
such price-fixing, the borrowers
recognize that it can apply here. and the lenders, especially the
They will not admit that they
latter, have lost their bearings.
cannot
make something out of
The familiar landmarks of a nor¬
nothing; that a stable objective mal and free market place are
unit like gold is as desirable as an
missing.
unchanging bushel; that the gold-
coin
standard
primary
has
been
not
the
of the great fluctu¬
prices and the wide
cause
Although a slow decline in in¬
terest rates on government secur¬
began as far back as 1921,
in
the business recession beginning
swings in business activity and
late in 1929 contributed much tc
prosperity; and that the present
further
decline.
During the
world-wide suspension of specie
1930's especially from 1935 on, £
payments is nothing more than a
series of governmental policies, o
fairly-common, but always tem¬
a
managed-economy type,
had
porary, episode in the history of
the net effect of disturbing anc
metallic currencies.
ations
In addition to the fact that the
agitators for a "managed" cur¬
rency, cut loose from a gold-coin
standard, are definitely wrong in
their fundamental contentions as
to the virtues of such a system,
they rarely make clear to the
ities
depressing normal business activ¬
self
revealed it¬
situation
This
ities.
(1) Ir
chiefly in two ways:
the reduction of the flow of cap¬
ital
into
enterprises' to p
new
level that amounted to little moft
than
trickle, and (2) ir
the abnormally low velocity, o
public the fact that, by the aban¬
deposits which prevailei
donment of a gold-coin standard, bank
the people of a nation have been during practically all the years o
the 1930's and up to and evei
deprived of control over the pub¬
lic purse and the Government is after the period of our entrance
left free
to
without any im¬
run
a
mere
into the second World War.
Th<
velocity of bank deposits prob
spending
activities. One note¬ ably is in general the best singl<
index
of people's activities.
I
worthy exception has recently ap¬
peared.
Beardsley Ruml, Chair¬ people are reluctant to act, tht
velocity of their deposits drops
man of the Federal Reserve Bank
optimistic and art
of New York, in an address be¬ If they are
fore the American Bar Associa¬ anxious to embark upon, enter
portant brakes being placed on its
tion
in
1945, stated the point of
of
view
those
who
wish
free
to
their de
prises, the velocity of
frosits rises.
themselves from the restraints of
For
gold standard.
In this address,
published in "American Affairs"
(National Industrial
Conference
Board, New York, January, 194-3),
months
al state where there exists an in¬
this velocity
of
most
the
an<
years
the ve
locity of bank deposits fell stead
ily. After 1937 it fell below th
low point reached in the depth
Mr.
Ruml said:
"Final freedom of the depression in July, 1932
from the domestic money market Thereafter,
and on up to an<
exists for every sovereign nation¬ after our entrance into the wai
a
which
stitution
of
mariner
and
the
modern central bank,
a
whose
vertible
in
functions
currency
into
gold
other commodity.
or
is not
into
nation¬
a
central bank¬
a
ing system, the Federal Reserve
System, and whose currency, for
domestic purposes, is
not con
vertible into any commodity.
It
follows that
our
Federal Govern¬
market in meeting its fi¬
nancial
requirements.
Accord¬
money
the
ingly,
economic
all
ana
inevitable
social
consequences
taxes have
of
and
any
become
now
1935
following
remained at the low
est levels on record.
One
tion
of this situa
consequence
was
hoarding of unuse
banks; and since th
a
funds
in
banks
"The United States is
al state which has
con¬
some
could
find
not
norm;
a
outlet for them in business chan
nels, and
since these banks an
other investing institutions had t
do the best they could to earn
return on their capital account
they naturally turned to goverr
securities.
ment
On the other side of the
pictui
the government found this abnoi
mally
large
its
volume
available and
funds
fore
borrow
them
terms.
of
unuse
could
there
practically
o
These
were, i
«consideration Iri :-fh?
brief, the major factors which ir
imposition of taxes."
itiated our abnormally low intei
Mr. Ruml stated a fundamental
follows that
our
Federal Govern¬
free
the
from
any
restraints
American people
wished
to
place
which
iriight have
it;
that
own
est rates in this country.
A
vicious
cycle of Treasury
relationships was thus s<
and it is still runnir
bank
in motion,
its course:
Because
of the gre:
supply of unused funds in banl
and other lending institutions, tl
government could borrow at al
normally
low
rates.
Becaw
these rates were abnormally Iot
banks
their
were
compelled
investments
in
to
bul
these
go
securities,' and cons<
Congress alone can institute re¬ quently their deposits, to an al
normally high level as again
straints which the people them¬
their capital assets in order
selves
can
no
upon
longer exercise di¬
rectly^ and that, up to date, the
majority of ^Congress"
has shown
value should no important disposition to check
make the bushel the
orgy of spending and waste
to what its
objective unit of measure¬
ment, so should the people have
an
equally objective monetary
an
has
price
the
the government at a very
low level with the resulting dis¬
tortions and artificialities which
"managed"
currency.
And "managed" cur¬ ment has final freedom from the
rencies of this type and of the money market in meeting its fi¬
types now/ popularly advocated nancial requirements. He should
are but one feature of dictator¬
have gone on to say that the Fed¬
ship and Socialism in- Whieh po¬
Government is
practically
litical valuations are substituted eral
called
loanable
fixed by
have a monetary ar¬ truth indeed when he said that it
rangement which probably can
be
economy.
price for
a
of ;u
feature
a
managed
-
a
We ; now
I':/
people over the public purse.
low
interest rates ;; are
our
fanatical determina¬ Interest, is
try expedients which ex¬ funds; and
to
and
rates are low
not, or cannot, rise. The
velopment and persistence of
normally low interest rates
do
unrestrained hands of politicians.
There is apparent today some¬
tion
spending
government
when interest
into the almost
passes
purse
removed from
Another brake is
profligate
ment has final freedom from the
But this automatic brake is off
our
waste.
the fact that control over the pub¬
must
our
profligate
and
spending
ment
,
is
the
position in
people have; found
themselves since March, 1933, and
find themselves today.
This
them.
the future is Which
understand what
moved another brake on govern¬
the
fails!
the banks' money- and credit; it is not invest in these securities for
(Continued from page 1782)
When
a * nongold
"managed"
the red flag of warning to the the reason that they do hot think
with accuracy when or where this
banks and to the Government; they can afford to accept the currency is substituted for a gold
spendthrift policy, with its insidi¬
and it is the people's direct and au¬ low interest, especially
in the standard and the management ap¬
ous, widespread, and deep-seated
tomatic
check
on
bad banking light of the fact that they are not propriate to it, political values re¬
corruption, will end. Perhaps the
they5 are de¬ certain that important risks are place true economic, objective
best we can do is to scrutinize practices.' When
prived of the right to demand not involved; they prefer to let values, and when this is done the
some of the basic features in this
their funds lie idle.
A large pro¬ people suffer as a consequence.
Federal fiscal policy, and then gold, this direct and automatic
And one of the most fundamental
watch them as they unfold day by check is gone; all they can do is portion of these securities is taken
and far-reaching of their losses is
to-accept what the banks give by institutional investors which
day, adjusting our plans and af¬
have re*
Low interest rates
3.
We do not let
standard of value.
which has devastated; this nation
since
1933.
ernment
obtain
a
reasonable
return
<
capital investment.
T1
Consequence has been that tod;
the ratio of the banks' capital a
their
counts to their
to
an
deposits has fall*
abnormally
low
ai
dangerous level—to a level of a
proximately 6 per cent—, and t
Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL CHRONICLE
ratio of their capital accounts to
their investments in Government
securities
is
mately 10
per cent.
down
to
approxi¬
Out of this situation is
emerg¬
a
variety of proposals to
maintain bond prices and to
ing
pro
tect the banking structure
against
the possible serious
consequences
which might result from the ab¬
normally small proportion of cap¬
ital to Government securities and
deposits.
Accentuating
■
„
the
dangers
in
Which the banks find themselves
is the fact
that, with a sharp re¬
duction, which is anticipated, in
Treasury war loan deposit ac¬
counts
in
against
the
required—,
ited
banks
which
deposits
—
reserves
pressure
not
are
will be
ex¬
on the liquidity of the banks
through loss of reserves or
either
increase
an
osits
in
which
commercial
de-
will
require re¬
warning on this matter
as issued
by Frank C. Rathje,
resident of the American BankA
serves.
rs
Association, in
ioux
City, Iowa, Feb. 12, 1946.
4.
.
address at
an
Congress has provided
important
brakes
on
no
profligate
pending.
Another factor in the
situation,
nd one which, like the
others, is
iill running its course, is the uterly bad procedure in Congress
n
voting appropriations. Since
he people themselves have lost
11 direct control over the
public
urse
through the Government's
eparture
from
the
gold-coin
maintenance of
very low interest rate, the last
nstrument of control at the disandard and
its
.
osal
ut
of
the people is
Congress,
Congress has
demonstrated
hat*it has not been organized so
hat those who would conserve
incomes and
ur
national
patriany
ef-
ony
could
exercise
ective control against a
majority
ntoxicated
by the spending dismajority has not
disposed to tighten up its
nachinery of control.
About all
hat Congress has done has been
and
ase;
this
een
0
vote away
taxpayers' and lend-
rs
money. It has seemed that no
lan for spending could be too
idiculous to embarrass the ma-
ority.
Kotowing to every presure
group that had an important
oting strength, playing demaogic politics day in and day out
y spending the people's money
01 corrupt
them,
subsidizing
ractically everything and everyody without shame, spending
nd ? wasting
and wasting and
pending—these have been the
rder
of the day.
Federal fiscal
olicy since late 1933 has been lit-
short of fiscal insanity.
vorld probably has never
le
nything
approaching
The
never
ory
rs,
before
seen
resources,
of the
fiscal
ur
Before
nd
a
for
a
e
war
is
over
war.
we
are
fallen.
we
Then,
an
devising
do it
an
no
/'hen
in
Washington
rw%>v—
and
New
of
of
the
supervises the world's larg¬
enterprise without any coor¬
dination
between
its
revenuenow
.
.
of
govern¬
appropriate money
estimated receipts,
"Therefore,
we recommend that
he practice of reappropriating un¬
expended
balances
be
discon¬
.
by
been
the
enacted.
resolution
Then
has
there
not
is
the
helpful and informing work done
by the Joint Committee on Reduc¬
tinued, except in the case of con¬ tion of Nonessential Federal Ex¬
tinuing appropriations for public penditures, "popularly known as
works, and that unexpended bal¬
he Byrd Committee.
ances
revert
to
the
Treasury
as
provided by law."
(e) Recommendation that legis¬
lation not be
If
Congressional
responsibility
and procedure can be improved
in some such manner as that sug¬
attached to appro¬
priation bills.
,
legislation to
has had
a
that the present
practice of hold¬
Appropriations Commit¬
tee hearings in executive or secret
sessions
cease;
that
committee
and
hearings
reports
on
ap¬
propriation bills be laid before
Congress
Joint Committee
on
ing
the
Organization of Congress—the socalled LaFollette-Monroney Com¬
mittee of 12
this
—
which has studied
particular
.
tions Committees of both Houses;
ing of appropriations.
For some time, also,
problem
along
all
the House and Senate
with other plans for streamlining
a
minmum
and
Senate committees,
provement
of
and im¬
committee
pro¬
cedure;
(2)
establishment
o"
majority
and
minority
policy
committees; (3) enlargement of
research
and
Members
of
staff
facilities
for
Congress; (4) more
efficient
use
of
Congressional
time; and (5) registration of or¬
ganized groups.
of three legislative days before
Congress.
Recently it made a
their floor consideration; that a
report, and its Section IV contains
five major recommendations "de¬ uniform appropriation classifica¬
"The report," says the Citizens
tion be devised and incorporated
signed to strengthen the position
National Committee, "is the result
of Congress in relation to fiscal in the hearings; that four qualified
of a thorough and careful study
staff
assistants
be
assigned to
affairs."
each of the Appropriations Sub¬ by the Joint Committee and its
For two years the state tax¬
staff.
It constitutes one of the
committees
to
serve
both
the
most complete documents ever is¬
payer organizations and the Cit¬
majority and minority members;
izens National
Committee have
sued on Congressional procedure,
and that modern accounting ma¬
studied the methods by which
its weaknesses, and the need for
chinery and equipment be pro¬
Congress might strengthen
its vided
strengthening
the
Congress."
for each committee staff."
fiscal controls. Out of this study
("'Round Washington," March
came
nine major recommenda¬
(c) Recommendation of audits 1946.)
tions
submitted
to
the
Joint by the Comptroller General.
Mention should be made, also
Executive
Director
of
the
Joint
Con¬
Public
necticut
Expenditure
Council, when he testified in be¬
half of the state taxpayer organ¬
izations on June 8, 1945.
These
recommendations
in:
are
contained
publication of the
a
Committee
issued
an
Citizens
IV
law and that, with a few excep¬
tions, it brought all government
corporations, (including those of
mixed
Section
"Congress
the Public Purse."
of
are
so
be
done
to
obtain
better
Recommendation
of
an
of
appropriations; in other
Commit¬
,
ownership),
free
been
The two
recommendations
from
which
had
independent
any
auditing, under the supervision
of the Comptroller General who is
responsible to Congress.
(d) Recommendation of discon¬
tinuance
of
indefinite
appropria¬
tions.
A
fourth
volves
the
definite
recommendation
in¬
penditures should be examined
fearlessly and honestly. The Fed¬
eral budget should be
brought
into
balance; and, when receipts
expenditures, the surplus
exceed
should
be
used
to
retire
a
cor¬
responding amount of debt.
I (2) Federal policies should be
geared to encourage freedom of
enterprise
and
production.
As
soon as the budget is brought in¬
to balance by lopping off all un¬
necessary
expenditures, taxes
should
be
reduced
provide this
one
in
order
to
If
encouragement.
must choose between the
en¬
couragement of production through
reduction
of
taxes, among
the
other
of
S.-J.
Res.
Senator
SMALL
TOWNS
GEORGIA
in the excellent small towns of
will find
a
born workers who believe
pay
Georgia you
reservoir of intelligent,
deserves
an
an
native-
honest day's
honest day's work. Mild
year-round climate affords peak production
conditions. Write Industrial Development
Division, GEORGIA
POWER
COMPANY,
Atlanta, Georgia.
discontinuance of in¬
appropriations. This
commendation
reads
as
re¬
follows:
"That all appropriations be in defi¬
nite amounts • and that the cus¬
tom of
reappropriating unexpended
be discontinued except
continuing public works; that
balances
for
transfer of funds between agen¬
cies and departments be discon¬
tinued; and that all regular gov¬
agencies and depart¬
ernmental
ments
be
basis of
placed
on
a
uniform
returning to the Treasury
income from sales
or
services." On
this
action
Committee said: "One of the first
Congress is "That by joint
the Revenue and Appro¬
priations
Committees
of
both
expenditures
should be ended at once—and the
nature of these nonessential ex¬
FRIENDLY WORKERS
called
analysis of the
in
nonessential
All
devices, and the collection
8, introduced by of enough revenue to retire part
of the debt each year, it would
Tydings of Maryland in
General
Accounting
Office be January,
1945. That resolution Seem much more desirable to
directed to submit each year a provided in brief that, except in adopt a policy of a permanent
general
service
audit of
each time of war, Congress shall not
(Continued on page 1812)
agency of Government (including
Government
corporations),
fur¬
nishing information to the Con¬
gress
on
the general financial
operation of the agency and its
care
in
handling Governmental
funds." It may be recalled that on
Dec.
YOU WILL FIND THEM IN THE
6,
1945, the Government
Corporation Control Bill became
A third recommendation by the
Committee
is
"That
the
Committee on the Organization of
Congress by Carter W. Atkins,
mendation of the Joint
point
the
requirements
Citizens
of
a
National
proper
ap¬
PLANT the Future
horrible
example
is Houses submit to the Congress propriation is that it* be definite
ointed out, people simply shrug within 60 days after each session and
specific
as
to
the
exact
leir shoulders and consider it a opens (or by
April 15) a concur- amount being appropriated. For
iere incident in the Federal
pic- rent resolution setting over-all many years Congress has been
ire.
The general, lethargy re¬ Federal receipts and expenditures departing from this
well-recog¬
garding this matter is a problepa (estimated) for the coming fiscal nized rule of legislative control in
of
excess
except
a
vote of three-fifths of each House.
Jhus far
.
in
est
tee of
great that the public
longer grasp its contents,
so
ment.
total
exceeded the
approved budget
the
.
York
words, a system of annual Fed¬
eral budget totals.
The recom¬
catalog of fiscal waste has
a
appropriations
case
strings
appropriation bills with changes such as these, profoe
discontinued; that the rules be igate spending
could continue
tightened effectively to prevent unless
City, both of which have worked
the
complexion
of
the
closely with and have been aided raising and appropriating com¬ vmder the parliamentary guise of
majority of Congress so changes
greatly by various
state
tax¬ mittees.
Neither, so far as Con¬ 'economy limitations' amendments ;hat
,this majority is disposed to
payers' associations, among which gressional
inachihery
is - con¬ which are, in fact, designed to .ef¬ .urn from irresponsible wasteful¬
the
Ohio
Public
Expenditure cerned, gives any consideration to fect legislative changes; that the ness to
economy and conservation
Council (Edward W. Wolfe, Ex¬ the relationship between income Comptroller General survey vari¬
of our national patrimony.
ecutive Director)
is playing a and expenditures.
." ("'Round ous limitations on appropriation
6.
Other basic problems pro¬
most helpful part.
Washington,"
Citizens National bills to determine those which re¬
vide great difficulties.
For example, just recently the Committee, Wash., D. C., March quire more money to carry out
The other basic problems pro¬
than they save; and that the Ap¬
Citizens National Committee of 4, 1946.)
vide great difficulties. We have
Washington has issued a series of
Committees
study
(b) Recommendation for better propriations
run so far beyond the red lights
recommendations designed to im¬
means
for limiting any increase
organization and staffing of ap¬
and have been running so long
in permanent appropriations."
prove the Congressional organiza¬
propriation committees.
and so rapidly
without brakes
tion and procedure in an effort to
In addition to these 'five recom¬
The
second
recommendation
that serious questions arise as to
obtain
arrangements that
will
mendations, the Joint Committee's
what saner drivers can do to slow
provides for the organization and
make clear to the general public
report contains other recommen¬
down this free-wheeling machine
of appropriation com¬ dations some of
what Congress is doing and also staffing
which
should
mittees.
For example, the Joint
of reckless spending without caus¬
to encourage and to aid Congress
have
a
beneficial influence on
Committee
of
ing a wreck.
Congress recom¬
to correct a system which in it¬
Congressional management of the
mends
"That
all
appropriation nation's fiscal affairs.
(a) Two suggestions.
self contributes to waste and in¬
They are:
bills be fully and carefully con¬
Two
simple and safe things
efficiency in the management of
(1)
Reorganization and reduc¬
sidered by the full Appropria¬
our fiscal affairs and in the vot¬
tion in the number of the House suggest themselves at once:
(1)
Foundation
vance
ation.
The
percentage in
amount
been
over-all fiscal plan.
One proposal is that there be an
over-all fiscal plan adopted in ad¬
long as
grip of the
so
longress is in the
pending
disease
which
has
lighted and is still blighting this
rown
mittee
Tax
(a)
for any occasion and
indefinite length of time.
we can
has
UbbWAVAVAA
organization and a more respon¬
sible procedure in Congressional
control of appropriations and of
Federal fiscal policy.
nything
r
the
ways which in effect deny
Congress the full control of
purse
The fifth recommendation of the
should
Now that
to the
the
gested by the Joint Committee of
*.
Congress or the Citizens National
given by various individuals and figure."
Committee, a new element of
Joint Committee of Congress is
organizations.
Outstanding have j
As pointed out by the Citizens
health should be injected into our
been' the Citizens National Com¬ National
Committee,
"Congress "That the practice of attaching Federal fiscal policies. But even
attention
«JL
special
V CI
y
very
given, we can see reasonably well
the situation in which Congress
now
finds itself, and also what
these investigating bodies think
ostwar subsidies; apparently we
an devise reasons for subsidiesf or
:ertainly
permanent nature, in¬
a
oh
uniform
Congress and its bad procedure
in
voting appropriations, some
similar that it probably is not important to attempt to distinguish
between them here.
Perhaps if
the major lines of thought are
we
had entered the
of
excepting
public debt, vet¬
further
pursuit
of
this
mad erans' pensions and benefits, trust
course.
In respect to the ineffi¬ expenditures, and public-debt re¬
cient and loose organization of tirement, would be reduced by a
sets
entered the war, we deised some new subsidies because
e
fighting to turn this tide arid to those
terest
save this nation, if possible, from
and
multitude of absurd
reasons.
appropriations,
portions of the study
some
war
All
excess.
of the Joint Com¬
mittee of Congress and of related
.multitude ,of sub-
uneconomic
hen
have
entered the
debt in the amount of the
of the Report
in the his-
have
rec-l several
estimated
ize creation of additional Federal
Congress.
Various individuals and groups
have been fighting and are still
recommendations
depths to which
insanities
we
evelqped
idies
we
exceed
Proposals for better organi¬ income, Congress should be re¬
zation
of, and supervision by, quired by record vote to author¬
1946—the Citizens National Com¬
ldy to mow their weeds under
he guise of conservation of nateasure
ommended
5.
mittee
of this nation. When farmfor example, are paid a sub-
ral
If total expenditures
year.
"Congress and the Public Purse."
Recently—that is, on March 4,
The
pirit and good sense of the maority of Congress and perhaps
f the majority of the American
eople have revealed a corrupion
our so¬
psychologists.
National
seen
it.
worthy of the attention of
cial
1811
■
f
r
rt
•
Y*
-
GEORGIA
Thursday, April 4,1946
THE COMMERCIAL & FINANCIAL CHRONICLE
1812
would hardly be open to serious
Policy
National Fiscal
:
(Continued from page 1811)
.
debt in deference to the reduction
"Road to World Peace
question: It is that the b^ks en¬
large
the proportion
of their
capital as against their deposits
(Continued from page 1786)
and be better prepared than they
ple a direct control over the pub-f) are how to meet any adverse
lie purse but also because our'
situation that might well develop.
gold reserves really belong to the This opinion was also held by
people rather than to the govern¬ the Federal Deposit
Insurance
ment.: There are various devices
Corporation when Leo Crowley
it
is
the
under
who would not be
bark
of
control
men
could
we
revert to
pur
present
disposed to em¬
of wasteful system again and be no worse
programs
upon
off
public expenditures or programs than we are now—that is, we
of governmentally-managed econ¬ would slip again from the .best to
omy
which
invariably
involve a second-rate, type of monetary
heavy and wasteful public ex¬ system. Then there is the further
basic consideration that under our
penditures.
(b) On returning to
a
standard.
-
would
ard.
restore
brakes
of
one
fiscal
on
the
policy
and return to the American peo¬
direct control
the pub^
It would
cannot.
citizens
goldvcoin stand¬ difficult tp find
A return to a
missing
present system foreign countries
gold-coin can
get our gold while our own
seem
logic in such
any
Stalin
bills
certificates^ bC funded
perpetual debt, like the
British consols, at a rate of in¬
or
reform
along
lines is
better
(c) As to the matter of low
in¬
terest rates.
a
over
lie purse.
The desire to be free
from such control is so deeply im¬
understanding of the connection between a gold-coin standard
and popular control over the pub¬
lic purse, that at present there
seems to be little desire to return to
this standard. There is a widespread
fear of a hoarding of gold should
we return to such a standard; and
it is a fact that our system of in¬
any,
•
direct conversion of our domestic
into gold, under our in¬
ternational gold-bullion standard,
has, since Jan. 31,1934, maintained
the parity of our domestic cur¬
rency to the gold dollar. The basic
currency
issue
the
is
whether
risks
of
we
wish to
run
hoarding of gold
and restore to the people direct
control over the public purse or
whether we prefer to have a sys¬
tem in which the people cannot
obtain gold and at the same time
lose
;
all
a
direct control
over
the
is
my
judgment
should return to
ard not
a
that
we
gold-coin stand¬
lost
as
a
con¬
the banking
struc¬
Holders
of
less contact with the
that
the
in
land
the
of
I will be accused on
of
being
the
one
and
a warmonger,
Argentine Republic
that
I
This is
a
C2a$3
a mess."
It
of
our
money
in a ; heck of
us
speaking.
all my talks with Russians
talked
as
a
capitalist, and I
talked
as
Communists, and they
talked bluntly.
I broke tradition
over
there.
The Commissar of
Interest
probably would be futile at
attempt any review,
which of necessity would be brief,
of the various corrective: plans
that have been offered. Perhaps
only to restore to the peo¬ 0nP^suggestion can
be made which ;
Foreign Trade gave a dinner for
me.
We were supposed to toast
each other.
I gave a talk with
my toast.
I talked about the dif¬
ference between our two econom¬
ic systems.
I told the Russians
some direct, hard, tough business
truths from the viewpoint of an
exponent of the capitalist system.
National
cease on
On
of
amount
principal
on
The
the drawn bonds will
1946,
25,
try was not
from theirs.
$424,500
'
.
'
of
what
I
said
_
•
was
economic
own
the
by
unimpeded
experiment,:
I assured them- that; we
weren't going to send capitalist
only just different
I said. it was more
state- minded,
minded
/
in
profit
.sending * Communist
inter¬
best I
y
agents into our country to
fere with pur system. - As
I tried to make them un¬
derstand' how .compl^iy:-:'Anae^Lcan Communists had been wasting
their
own
time—and
Russia's
could,
.Our
time.
then
American; Communists
haven't caught oh to
iv
now
as
I said to the Russians
that fact.
Jack
Communists
American
that
originality and realism. That the*
the
think is Russia's current policy
most
collective-
people in existence.
the party
And
In
line.of the moment.
fact, I said, and I'm quoting my¬
self: "If you take pepper, the
indigestion,
If you have
sneeze.
they belch."
talk by saying
wound up my
I
should resign our
selves to the fact that for a very
that both of
us
long time to come the Russian
and ourselves are going to live in
two different economic days-r-un
der two different systems.
;
My. thought then is the same a
it is now.
The two systems ca
side by side.
Once we ar
that Russians feel th
live
convinced
ought to be able
with each other ve
way, we
same
different; from theirsthan any
other coiihti^ in th^Worldi I told
them that they were the most
principal amount of the bonds
previously called for redemption
had not been presented for pay¬
ment.
core
the this: I told them that in
the bonds. ideology and pracUce^
the redemption date.
March
pursue its
still follow and imitate what
ton, payment will be made of
genius
has landed
time for
talked bluntly then. The Russians
City Bank of New
York, or at the principal office of
the First National Bank of Bos¬
the
the
being an appeaser.
But those accusations aren't going
demption on May 1, 1946, out of
moneys in the sinking fund. Upon
presentation and surrender on the
redemption date at the office of
J. P. Morgan & Co., Inc., New
York, or at the principal office of
the
hand
on
In
Wall
"The
in
a
ether hand of
blunt
Street Journal" of Feb. 8, when
he said that "... It is to be feared
Tennessee)
blind
is king.
man
I know very well that no matter
what I say about Russia now that
1948, are being notified that $1,612,500 principal amount of the
bonds have been drawn for re-?
(of
outside
other major na¬
But there is an old saying
any
to trouble me.
suggestions, in¬
cluding some pretty wild ones
from
supposedly reputable au¬
thorities, have emerged without
any one having gained wide sup¬
port in responsible circles.
The
sum and substance of the situa¬
tion seems to have been stated
rather well by one Sam Green
Numerous
ture.
this time to
public purse.
Tt
jeopardizing
been
two
our
be; allowed
unique economic
agents into their country to inter¬
fere wit& their system, and I also
assured them they would find no
one-eyed
10-year
sinking
fund
external
loan 4j/2% bonds, .due Nov.
1,
has
of
should
countries
other.
tion.
give support to various or¬
ganizations and individuals that
Argentine. 4^2 % Bonds
Called for Redemption
of the evolution of our
abnormally
low
interest
rate
structure without at the same time
on
Russia thinks she's go¬
world than
is to
sequence
where
has
these or
effected,
Up to date there seems to
agreement among
which
Communism, in U. S.
I told them that each
bly consists of only a few scraps
of facts, but that is all we can
hope to have about a land which
gov-
little if any
the control over the public purse
so."
Furthermore, what any out¬
sider knows about Russia ^proba¬
are
fighting for fiscal sanity,
be watch events as
they unfold day
the
by day, and adjust ourselves to
most competent authorities as to
bedded in government circles, and
them as best we can.
the best method of restoring to
the general public has so little, if
the people in general that part of
ple
authority
me an
And I
this, too: "Gentlemen, make
We are determined
to remain so-?—and even to become
mistake.
no
ing;
ernment might receive from time
to time to reduce the debt.
Until
individual-minded.
most
said
more
what
Russia wants, what Russia intends
that will be attractive to
institutional and other savers,
some
United
the
and
•
to make
terest
using such surpluses as the
the most
miles 1 traveled are not sufficient
a
our
that we, on
Josef
The time I spent with him, the
weeks I roamed around and the
and
into
Russia
tween
States.
the other hand, were
private-minded and the
three
Generalissimo
his
apartment in the
Kremlin. We talked largely about
postwar economic relations be¬
small proportion of Treasury
a
in
nearly
spent
with
hours
about all we can do with wisdom
arrangement.
an
of
1
country.
'
encouragement to
greater production. Since a policy
of a perpetual debt, as against
one
of
debt
retirement, ,would
provide a new lease on life for .that can be employed to make was its Chairman.
But should
the Congressional free spenders, hoarding uninviting.
My other suggestion is that the
nevertheless
deplete
it probably would be safe only if hoarding
Federal debt, with the exception
bank and Treasury gold reserves,
of taxes las an
//
get along
easily.
:
.After that I saw Stalin.
Two things he told me com
forcibly to my mind at this par
ticular time.-; I'm going to quo'
One
them.
this?- f '
was
has
Hitler
"Foolish
•
done
on
He has brought th
American people and the Russia
people together." We must neve
good thing.
ThistidceirHsewentisMUhor
pm offer
qf ihislStock*
tosellfnor^soliyUution^
The offering is made only by the Prospectus,
W-
anything to come betwee
again. We must work togethe
allow
us
after the war."
lighter mood, h
And then in a
March 29, 1946
"I
said:
like
to
do business wit
American businessmen.
You fel
You
want.
lows know what you
good, and best of all, yo
stay in office a long time—jus
like we do over here.
But a poli
tician is here today and gone to
morrow,
and then you have t(
make arrangements ail over wit"
word is
478,194 Shares
American Potash & Chemical Corporation
a
new
I
set."
made
notebook
Class B Stock
comments.
"Stalin
jottings
some
was
in
]
the result of Stafi
as
"Yes," I wrote do\
right. War has broiij
together.
But the sand tr<
many
difficult problems
us
of
Will
ahead.
be able
we
to $'
the
fairways of cooperat
and
friendship
after we hi
crushed the common enemy? 1
on
Price $35 per
destiny of the world may
stake in that answer."
share
Such
were
my
be
notebook
com
The.,
are amazingly fresh to me at thi
moment, fpr it is a fact, that th
destiny of the World does depen
on our cooperation.
And I refus
ments almost two years ago.
to
Copies of the Prospectus
may
be obtained from any of the
seperat Underwriters, in*
believe
way
that
can't
we
to cooperate.
.
find
;
.
eluding the undersigned, only in Stqtes in which such Underwriters are qualified to
ad
as
dealers
in securities
and in which the Prospectus may
legally he distributed.
.
Don't Cooperate
But
don't
we
in
a
Vacuum
cooperate
in
must
b
based on the mutual trust anc
mutual acceptance of principle
Sure, there must be give^anid
vacuum.
Kuhn, Loeb & Co.
Glore, Forgan & Co.
Lehman Brothers
Cooperation
hut- there are basic principle
cooperation between nation
I take
in
just as there are between individ
uals, which cannot be violated i
cooperation is going to mean any
thing ;^r Work at ^11.
If a.
man.
he Wiii "db
gives his .wprd tha
ia certain-
thing1
on
[Volume 163
Number 4478
THE COMMERCIAL-& FINANCIAL
CHRONICLE
certain date, he is expected to live
flow of world trade, and we have
up to it.
If a nation
ing any complaints
pledged ourselves to help the un¬
developed countries of the world
to
help " themselves.
We
have
which
gives its word that
it will do a certain thing oh a cer¬
tain date, that nation is
expected
to live up to it.
4
V
.
Russia promised 'to withdraw
her troops from Iran on March 2,
.
She hasn't done it»
'
And that's why we're worried.
We
can't
have
world
a
com¬
munity unless nations keep their
Word,
can
foreign policy. At this very
we are heading toward
learned
that where goods flow
freely across international boun¬
dary lines, the tramp of invading
troops is seldom heard. Trade, in
fulfillment of the commitment
guarantees
We
ence.
them
are
their
keeping
we
independ¬
pledge
our
to the Philippines,
/ 1 .4".*
'*
That is principle No. 1 of
foreign policy—keeping
i
our
word,
our
Our
story.
If Russia is
ought to see that her
Hare protected.
The place
to put Russia's case is before the
of
is
differences
the conference table.
In
nified way, it is the same
a
at
mag¬
in simple, layman's lan¬
is our policy.
These are
the principles on which we stand.
they be fair with the rest of the
world.
This is the force of right
It
nations
This,
is
simple,
be
can
these principles.
weakness,
The
spirit
ever,
can
ernment
are
of
and ours is
common
sense
a
us
a
conference
table.
international
new
That
is
the
IInited Nations Organization.
There will be all sorts of differ¬
ences and
disputes. What one na¬
tion may think is
necessary for
its security, another nation
may
regard as aggression.
Such dis¬
putes don't have to lead to
war.
That's why we and Russia and
the other nations
created UNO.
That's why America gives her full
Support to UNO.
and
She gives moral
physical support to it.
Don't
Sell
UNO
Short
that
treatment
demand that
Attitude
The
It is
that
pages
tered
in
the
with
force
/,
•
Toward
.
of
.,,
Our party line is one on which
all Americans
unite. It
can
We must
be strong
scientifically,
militarily and industrially.
A ;,:
Scientifically,
we must continue
lead the
world, science is the
key to production,
j,
;
,
Militarily, we must have a
strong army, a strong navy and a
air
force.
The
whole
strong
strength
of
all
three
must; be
backed by bur inexhaustible '' caparity to supply them with the
most modern equipment.
4
Industrially,
we
can
is
the
peace.
best
pered are those who put right
above might, and then were able
to enforce it.
I would suggest
always will be true that
We
to
want
We
be
friends
with
hope Russia wants
to
be friends yrtth us. We don't want
Russia to fear
more
than
we
us physically any
want to fear Russia
physically. Democratic America
has no designs on anyone.
We
want
to
see
a
no
our
in¬
our
ternal differences end at the
fair
In our drive for
a
people. But as a symbol, nothing
could be closer.
It is a test of
whether nations, like people, will
change and is still
member of
a
Commodity Exchange of NewHe
has
fifteen
background of
of investment
a
years
analyst
and
articles
writer,
of
appeared
having
in
Shepard's chief interest at present
is in the field of aircraft securi¬
ties.
Jared
Aiken ' has
C.
throughout the world a just surance circles and
has been a
lasting peace, there are no
Democrats, no Republicans, only partner for many years in one of
Americans.
jthe largest firms_ of ! insurance
\V'4';4 v'/",
peace
and
agents in California.
The Road Ahead
-
,
a road back arid a road
The / road, back is .paved
ahead.
John R.
words, broken promises and bru¬
tal
treatment
of
the
weak
and
helpless That road ends in war.
:
f The road ahead is paved with
strength, tempered with justice,
with. honest:; words and honest
dealings—above
all,
with
Staff of Laidfaw Go.
Laidlaw
New
Co., 26 Broadway/
City, members of the
York
Stock
that
nounces
faith
&
New /York
Exchange,-
John
R.
America,
that the plain peoples of the world
Major AUS, has become associated
with
want
with
developed; peacefully
higher standards of; living
her
for
needs
this.
boast that they always keep their
Here's a chance to make
good their boast. It may not come
a
That road
America
■
ahead.
has
chosen
to
again.
To do this it must be prosperous
and strong.
It is only the
who lead;
who lead them.
strong
withdraw
A strong foreign pol¬
icy demands a strong America.
If Russia has a party line, so
have we. vf
M
their troops from Iran, we should
support their request for prompt
hearings before the UNO involv¬
the
road
It has chosen to be strong;
on justice; to speak hon¬
It has chosen through UNO
I want, to see America exert her
leadership for peace in the world.
Russians
in
bond
word.
the
ends
peace.
people.
America
also
long period of peace to do
•,
peace.
to insist
estly^
test
the
principles of all
tions by the actions of the
na¬
men
If all nations will
choose the road ahead,4 there will
be no spectre of a third world
war.
the
firm
in
its
department.
municipal
Mr.
partment
from
of
1933
Lehmari
until
he
these shares.
an
The
Army in 1942. During the
was "
assigned ;as
chief of the
instructor
cannon
Knox, Ky.
arty
of
international
Alexander
•
i:
/much to do with spheres
of influ¬
international power pol¬
We have been able to
and
50,000, Shares 3'/2% Cumulative Preferred Stock
place
reliance in UNO without
'any
hangover in our
(Par value $100
a
share)
thinking from
earlier and outmoded practices.
We believe in UNO.
We believe
Price
it will work.
We're
and accrued dividends
going
to
help make
$103
/
it
,
work.
In fact, we are
determined that
it shall work, because it is the
'only hope in sight for a peaceful
World.
f We here believe that the
r
*
plain
people
everywhere
share
our
faith and hope in UNO. The
plain
people all the world over are
m
H-r<•>*?
;*.(!> *jn
150,312V? Shares .Common Stock
«.««■ *-.?
/
/ 4 4;
weary, of war and all the woes of
war, They have been told before
(par value $20
Price $31
a
a
.
share)
share
this that they can look ahead to
an
era
of reconstruction.
They
have been promised ;a time of
_
peaceful building.:
They have
promised
a
better
living
They have been promised a better
y-ft-;*--.*:--
been
%
Copies of the Prospectus
world.
f
And
regard
,
that
brings
pillar
American foreign policy.,.
We
can't
have
world
Without4- economic
abroad
as
well
as
prosperous
ly true that
perous
well
in
securities laws of the respective States,
of
i
being
our
own
MORGAN STANLEY & CO.
America, it is equal
we
America
can't have
with
the
have pledged ourselves to
may be obtained from such of the
undersigned
legally offer these shares in compliance with the'
peace
-
a
pros¬
rest
the world in rags and tatters.
.
may
4/4
country. If it is true that we can't
have a prosperous world without
a
as
to what I
me
the •;) third
as
.
a
of
We
freer
April S, 19^6.
'
•
'
D OMINICK
he
and
and turret di¬
««!Y
power poRtics.
Perhaps it is relatively easier
for us Americans to
adopt the
new concept.
We have never had
the
war
vision at the Armored School, Ft,
offer to sell nor a solicitation of an off er to buy
offering is made only by the Prospectus,
.
Brothers
entered
has
This annbuncernent is neither
Downing
was" with the municipal bond de¬
,
I
an¬
Downing,
now
our
,
Downing Joins
with threats of force, with weasel
young in international collective
bargaining. It takes time, to rid
ourselves of thinking and
actjjig
in terms of
spheres of influence
and
in
terms
of
itics,
*
There is
The American pfeople want the
Russian Government to meet that
test by "Withdrawing its troops
from Iran.
The Russian leaders
-
ence
wide
a
keep their word;
more enthusiastic
than it willrequire
proved its strength
and when it has become a
world
habit to regard it as a
permanent
fixture in the lives of all of us.
If UNO is young, we are all
;
as
many
whole-souled,v
support
when it
'
•
formerly
background of experience irf in¬
prosperous
I also want to see a
prosperous
'
•
was
member of the New York Stock
the
wa¬
ter's edge.
'
1
Shepard
eading financial publications. Mr/
partisan
foreign policy.
It
has always been true and I
hope
are
J.
Exchange and New York Curb Ex¬
an
Russia, developed peacefully with
a
higher standard of living for
her people.
Russia heeds a long
period. of *peace to produce the
consumer goods essential to a high
standard of living.
bol to the American people. Iran
is a long way from the American
a
Americans must show the
politics in
Russia.
Saul
his
Nations that have lived and pros¬
present
it is announced.
experience. He is well known
of
.
We
Shepard and Jared C. Aiken
joined Morgan & Co., 634
South Spring Street, members of
the Los Angeles Stock
Exchange/
have
over
winning two
guarantee
ANGELES, CALIF.—Saul
J.
York.
strong without production. Amer¬
ican production, which has been
world that there
that
be
never
thought that might makes right.
Policy Work
LOS
■
to
wars,
of history are clut¬
ruins of those' who
Shepard and Aiken Are
With Morgan & Co. 4
means
America strong in every sinew.
an
the decisive factor in
Russia
day statesmen read
Naturally, it isn't enough just
to have a policy.
We've got to history before trying to make it.
When
This is not the time to sell the
United Nations short.
UNO is
young, it needs more ardent, more
now
us
Our
our
We Must Make Our
to
,
gov¬
sense,
with
we
them
would
will rally
right.
not weak.
of compromise, how¬
exist between men of
only common
keep
Appeasement is
and we
as
tell
fair
right of force., Other
never join us in
the right of force, but all nations
who believe in right and
wrong
appeasement of
no
should
demand
and not the
definite,, practical.
And it is fair.
There
We
will
we
princi¬
effectuate it.
ple we employ in disputes in in¬
A policy is one thing.
Making
dustry, and it is traditional with
it work is another.
Our Govern¬
Us like the town
meeting, from
ment can : originate policy but it
Which, in great degree, it is
will work only if our people sup¬
drawn.
The conference table is
port it.
Our foreign policy should
the
setting wherein democratic
be fair, friendlyland firm towards
peoples resolve their disputes.
*
all nations.
That kind of a policy
It is inevitable; that
misunder¬ the
American people will support.
standings should arise among na¬
Iran today has become a sym¬
tions, and that is why we have
established
-
UNO.
word, and it is. only
common
sense
that we expect
other nations fo keep theirs.
basic principle
second
settlement
the
we
for them
we
differences at the
Conference Table
of
trade.
common sense,
1 Settling
i
the
side
right,
rights
other words, is the token of peace.
Peace is the inevitable partner of
moment,
have with the Philippines which
grievances
have in the
or
may
•
guage,
The principle of
keeping our
Word is the foundation of Ameri¬
Russia
Iranian situation..:;/4'-4
We are willing to hear Russia's
1813
&
BOMINICK
J
should
be
out to preferred
paid
United Nations and American
The suggestion was
stockholders.
carried out and followers of
never
the road's fortunes
are now won¬
under
similar
pending applica¬
company
will be able
whether
dering
conditions in the
the
tion
•
appear particularly disturbed over the pessi¬
mistic tone of the Alleghany statement as to what the future held
for holders of the Nickel Plate preferred.
Many question whether
the market
of
'
enthusiasm
the
for
stock had been
based
on
(Continued from pge 1785)
again to find some pressing need
The market did not
^
cash if it is
the
for
used
not
to
purchase the Wheeling stock.
that
Be
prospects
it
as
may,
our
forced
>
rail
many
before
merger
interval
of the
Chicago, Milwaukee
f
& St. Paul
Walt
:
.
Stock
So.
331
at
and
other
Chicago 4. 111.
in
was
should
-
Magazine Repeating Razor Co.
Universal Match Corp.
Dixie Home Stores
5%s
Tennessee Gas & Trans.
operating
arrears.
action
Such
was
war
;
earnings generally
$25 to $30 a share
run
on
the
ferred,. although ;* naturally
par¬
of
United
the
States
of
world
maintenance
fact that the road had net work¬
current
ing capital of over $20,000,000 as
end
the
of
of
1945
mighty contribution to
the
of democratic government
cause;
throughout the world.,
'
regularly the meet¬
attended
ings of the Security Council, and
it is my belief that the Council
acted
pressure
notable
that
some
in
excess
unpaid dividend arrears
ter of fact there will
be
increasing
make
years
when Nickel Plate first tried
to buy this stock the application
was turned down, at least partly
the basis that if
the management at
on
a
start
wiil be
Constitutional
the
tion- met
already ac¬
world
.
so
-
(he
Specialists in
Selected Situations
STOCKS-BONDS
INCORPORATED
IBy Insisting that ,we-starid firm
on our principles I don't mean to
suggest that we do like Tom, Saw¬
yer when he drew " a line m the
dirt; withslhis big toe and| then
dared the new neighbor boy to
step over it. Our policy, in other
words, must be flexible enough to
meet new situations as they arise.
|||
j
l
that
the
tions
with the
Council
Securjty
could
Russia
that
statement
give us assurance
Government in¬
part in the Iranian-Russian
dispute unless debate were post-
This actioil
with?
poned until April 70*
does not mean that Russia
Council
the
from
draws
public
the
fy
—
/
Quoted
•
World.;?:: Russia
of
defy
cannot
noble
their
in
quest:for" World
>
Nations
*
of
,
absence,. the United
will go
service
obligatiohs
forward on its career
Russia was
mankind.
to
gallant on the battlefield—she was;1
not a deserter in war. She musi k
.
be'gallant in the cause of peace-?
she must not be a deserter from "
the Charter.
Tbwnsend, Graff & Co.
In New Location
Townsend, Graff & Co., mem¬
bers of the New York Stock Ex*
change, announce the removal of
offices to
their
15 Broad
New York 5.
\
/•;
^
r
•
'•
-V', •.'
t
\<X
J"■
,
v
Members New York Stock
Exchange1 /
New York 5, N. Y.
Teletype: NY 1-911
*
4
■
'
'
■.
Lehigh Valley
INC.
General and Consolidated 4s-4^s-5s, 2003
UNITED PUBLIC UTILITIES
,
UNITED PUBLIC SERVICE
Boston
Tele. NY 1-724
Philadelphia
Hartford
Circular Upon Request
Mclaughlin, reuss & co.
Adams & Peck
BOwling Green 9-8120
Railroad
Members New York Stock Exchange
1. h. rothchild &
NEW YORK 5
ONE WALL STREET
co.
Member of National Association
52 waH street
0/ Securities Dealers. Inc.
HAnover 2-9072
n.
y. c.
5
Telo. NY 1-1293
TEL.
HANOVER 2-1355
'
TELETYPE NY 1-2155
Philadelphia Telephone — Lombard 9008
-
i
Street,'
.
Telephone: HAnover 2-7900
YORK 5, N. Y.
Susquehanna Division
63 Wall Street, New York 5
y
Regardless of Russia's presence
or
49 Wall Street
Members New York Stock Exchange
GETCHELL MINE,
thq
no power; that can; withstand >
the vimpiattial said conscientious f
judgment of peace-loving nations ;
Utica, Chenango &
3-5s due 1993
r
the
Nations', of which it is a
Charter it ;
has subscribed.
There is no iso?
lafioft to which a .nation Can with«i
draw that is impervious to the
force of world opinion.
There is >
Vilas & Hickey
1
Telephone REctor 2-7340
y
meet¬
opinion
Copies Available to Banks and Dealers
SUTRO BROS. & CO.
120 BROADWAY, NEW
,
[
member and to whose
\<v
Sold
,
United
Tqlk by Arthur C. Knies
'-'V';"'
North West Utilities. Company
—
»
Russia cannot
not withdraw.
Facing the Facts
(Del.)
6% Cumulative Preferred
—
not
take
.
Northern States Power Company
Bought
& Western R. R.
Russia's Withdrawal Action.
§
Soviet
7% Cumulative Prior Lien Preferred
Delaware, Lackawanna
new
■
New York 4, N. Y.
Teletype NY 1-1063
prestige and power.
momen¬
of mankind.,
tends to live up to its
under the Charter.
7% Cumulative Preferred
Telephone BOwling Green 9-6400
impelling force of world public.,
opinion.! It is a hopeful augury ;»•
that the Organization may ; emerge .
from its first serious test with in-
.
developments
61 Broadway, New York City
For Banks and Brokers
a
Within the week two important
PFLUGFELDER, BAMPTON & RUST
fit all Times
RAILROAD
such
fraught with hope
important ^ for the future
realized.
SECURITIES
i
•
so
Every nation, including our own,
must be willing to give up things
—to make real sacrifices—so that
our goal of world peace can be
Red Cross
RAILROAD
1787: has: the
in
witnessed
and
seated, it is in
*
American soil;
Not
Conven¬
on
since
meeting
to
Security .Council
first time
to at least
tous
GIVE
the "m
tbdd^llln:^anyevent Riissia musj ?;
Meeting
.
Teletype
are
that Russian troops arq
withdrawing from Iran... I interpret this action as a real victory
for the United Nations and for the
Whenever a dis¬
This week in New York City the
towards, whittling
full accord.
important
more
ing.. It. is said. that , it will return ;
to
.
management,has
the company
Even
reports
act
directed
was
cumulated, an aim with which the
cash of that amount it
misunderstandings which have
past few months.,'
arisen during the
presumably Security Council convened for the Is.
pressure
away at "the arrears
it
The Current.
well night irresistible,; As a mat¬
ago
on
back¬
least to avoid any further increase
Also, it is proposed to use some¬
what over $5,000,000 of the treas¬
is
this
as
pute arises, its first and foremost
duty is to encourage the disputing
parties to settle the affair ^ by
peaceable means** of their <own
choice.
- t
\
II
ground it is? considered that;; the
and financial
officers | of
the company have
stated that $5,000,000 is adequate.
It
With
year.
poses
-
they by the Charter.
NY 1-1499
ii
a
pre¬
'-i.
HA 2-6622
25 Broad Street;
have built there for the
the
with the principles and pur-»
of the Charter. His message f:
came as a reassuring note in the
midst of the confusion and the r
mony
Yesterday (March 29) the Rus-f
sian delegate left the United Na-
will be considerably lower in the
*/;V NEW YORK 5 li
GUARANTEED
pro¬
without jeop¬
so
neither the hatiojns of the world I
their armies are seeking an7 ;
other, war, wds entirely in har- '
nor
Belgium and New Zealand—more
squarely behind the Charter. By
such a move we would be making
from
ticularly surprising in view of the
had
Telephone
'%
do
„
creased
material costs,
Van Tuyl & Abbe
■
Nations
United
can
Stalin's statement ap-
Premier
plauding the United Nations and;
expressing
his
conviction that;
By, such a move we would be
taking
our ; stand — along
with
Great Britain, France, Australia,
portant offset to higher wages and
estimates of post¬
their
not
peace. <
v
.
we
and
well
National Maliison Fabrics
72 WALL STREET
bases
therefore
important
the
we
protection
charges, and with
the increased efficiency as an'im¬
funds to purchase the Wheel¬
ing common from the parent com¬
pany, Chesapeake & Ohio.
■
Missouri Pac. RR. Serial
program
and
in
am
provided there is a full under¬
standing that we may use the
military establishments and the
With the lower
ury
TRADING MARKETS
re¬
50%
I
ardizing the vital security inter¬
ests
of
the United
States, and
It is assumed that
economies. '
declaring only
$1.00 a share on the preferred,
thus continuing to
increase the
New York5,N.Y.
LaSalle St.,
result
indicated in the
directors
about
of
vided
These charges will
physical
conceived
March meeting in
<
Exchange
was
the
of
them.
,
leading Security and Commodity Exchs.
120 Broadway,
This
of
and
tem
further reduced
the
improve¬
ing the. past few years it is ap¬
parently the intention of the man¬
agement to hold as long as pos¬
sible
to
a
niggardly dividend
action
;
Ernst&Co.
York
vast
charges.
been installed.
-
the
with
policy.
Common
New
rehabilitation.
retirement
over
giving them up. I am,
however, in favor of placing those
Islands under the trusteeship sys¬
by refunding
outstanding- 3%s in April.
Vast sums have been spent on the
p r o p e r t y,
and
a ; substantial
amount of new motive power has
retirement, prop¬
and financial
debt
for
debt
reduction
a
be
erty improvements,
Even
Lines
' MEMBERS '
able to wrest them
in favor of
of the
ment in Nickel Plate's status dur¬
Angeles Transit
•
in
fixed
of the holders for
reward
the
ings
Disney flilj
Common
-
of
Americans
gallant
we were
control
our
funding operations have resulted
foregoing dividend payments in
favor of utilizing the large earn¬
Productions
Los
improvement in the status
company
in the inter¬
vening, years.
The -rise in the
value of the stock was pointed to
the
of
as
5s, 1975 & 5s, 2000
'
were
lives
from the enemy.
For that reason,
t am not in favor of relinquishing
Chicago Railways
.
of
we
the
sacrifice
1
1
-
to
thousands
with Chesapeake; & Ohio.. As a matter of fact, only a j analysts still look upon the Nickel
week or so earlier in appearing before an Interstate Commerce Com- Plate preferred as one of the most
■'
Emission examiner, in connection promising
speculations; to
be
witn
Although
application to purchase found in the rail field.
Wheeling & Lake Erie common, the company was subject to heavy
excess
an executive of Nickel Plate had
profits taxes during the
■'
pointed with pride to the advance war period aggregate earnings on
the stock for the past
Cons. "A" 5s, 1927
in the stock from the 1938 low
10 years
to
the 1945 high as a measure topped $171 a share.
During this
a
to Tokyo and
way
'
Volume 163
Number 4478
THE
COMMERCIAL & FINANCIAL CHRONICLE
Current Chills and Market Outlook
yi.;(Continued
from page 1783)
intention
no
boom
of
defending all of
the equities
recording sensational
gains. The point we want to em¬
phasize,-
however,
..
is
that
:
iri'dtTStries.
various
For
boom
instance, the study estimates the
boom
in textiles
and
last
Be that
as
Irving
equipment three years, automobile!
.What's Coming )":;,yv- »
The sale of the First National
and, automobile parts, three years,
Article* 102 of the Revenue Act, Bank of Miami, Fla. and its three
and building ten years. These are
providing severe tax penalties for affiliates to Wiley R.
Reynolds,
tions* The fact that St. Paul Gold
5s due 1975 sold at 4 in
1940 and
industries
are
now
that
the
test
of
the
value
of
a
stock
is not the historical' one of
'.where it sold on what it. earned
in 1929 or 1937 or 1940 or
1942,
.even
1945, but rather what
.selling price is in relation to
rent
' and
X
prospective
power;;)'i;Y^
The
■
?
or
the
cur¬
earning
the
Visible future—and
not be
forgotten;.for
every investment is
a
it
should
minute that
a
speculation
although, r of course, : thereare
varying degrees."
•
'
.
How
Pin-Sticking Selections
;V".
Work
,-
•
Granting that the. broad under¬
•
lying
market trend remains up¬
ward there is no assurance that
selection of: Stocks by^ the pin-
sticking method will produce sat¬
isfactory results from here on. I *
;As a matter of fact, while the
latter stages of all1 bull markets
characteristically show
advances, these
the widest
are not indiscrim¬
inate
by any means, as we shall
demonstrate. For instance, it was
possible to have
held stocks after
furnish
industries
levels
and
which
been; forced
lower
to
related
than
their
will
markets
also
business
boom.
is;'- classified
group
over-all industrial
activity. These
include brewing
and
distilling, coal, container, drugs,
foods, leather, machinery, metals,
motion pictures,
railroads, ship¬
ping and shipbuilding, and steel.
Balancing
the
short
boom
industries
-
business
to
officers
or
the
with
distributions
the
nature
-
of
the
the financial position
or
appear
to be
beyond the reasonable needs
of the business.
The foregoing
will
ultimately
have quite a pronounced effect
on
dividends—in
some
stocks, such
fact,
many
Pfizer, McCrory,
as
McLellan and many others which
seem
last
very
high
year's
the
on
dividends,
basis
of
mal
replacement expectations and
the
accumulation
which
of
savings and
increase in population, one arrives
at the conclusion that the
general
American
Miami,
Na¬
was
an¬
York
"Times"
which
we
of
quote,
April
also
1:-):Vv:_ V
•
exceeded
»?
%&?}*>" 'f\
$100,000,000
c.vc*
V'V
'
.
some
of
the
are
non-dividend
New
York
liiPHH
n,
;
a
partner of the
law
J
firmf
a
f
of
i
n,
Schne i d
e
Kimmel
and
r,
Galpeer.
Mr.
Galpeer,
graduate
of.
Harvard -Col- ;
lege
in
Harvard
1930
Law
in
V,v.'v
School
1933, where
he
1 an
was
Editor
the
on
.
"Harvard
Law
-*•
Irving J. Galpeer
Review,"
joined
SEC
the
in
November,
1935.
in
1929
was
218.
Likewise
an
offer to sell
and
Stephen
his
home
March
28.
PassaicL*N. J.,
He
78
was
years
In reporting his death
age.
cial
in
advices
from
Passaic
on
of
spe¬
to
the
New York "Herald-Tribune" said:
"Mr. Merselis retired in
1937,
before
years
the firm
was
incorporated as J. P. Morgan &
Co., Inc. He joined J. P. Morgan
in
1912
in
March, 1931.
"He;
and
was
Passaic
rector
City
of
became
a
member
Club,
the
Comptroller
a
the
di¬
National
Bank and Trust
Company, a for¬
mer
member
of
the Board
of
Governors of the Passaic General
Hospital and former treasurer of
in
known
New
«
case
of McKesson
Robbins, whose President
time
the
was
be read
name
of
of
only; 320 in
1929,
December, 1942, Mr. Gal¬
was
appointed
Chief
At¬
torney in Charge of Enforcement
at
the
New
York
office, and in
was appointed As¬
Regional
Administrator.
During the war he helped esta¬
May, 1945 he
sistant
blish
fare
the SEC's Economic War¬
Unit and for a time was in
of
its
liaison
making public Mr. Galpeer's
resignation, Mr. Peter T. Byrne,
Regional
Administrator,
com¬
mended
cellent
Mr.
and
Galpeer
loyal
SEC, and wished him
cess
in his
new
of
202
to
about
1929
a
179
high of 381,
or
solicitation of an offer to
buy the securities. Thd
of the Offering Circular which should
prior to purchase, of the Bonds.
or a
GENERAL MORTGAGE 2'A% BONDS, SERIES R
Dated. January 1,191^6
Due
January 1, 2961
The
foregoing should not be
construed as indicating that his¬
Interest payable
January 1 and July 1 in New
tory is going to repeat in detail
We
are
same
same
not
think
we
will
predicting
that
have
twist.
things
somewhat
a
Be that
that the
in the
as
this
The issue and sale of these Bonds
time
Price 100% and Accrued Interest
eternal
At
the
markets
subject to authorization by the Interstate Commerce Commission
different
to
Short and
are
it may, the
point
emphasize is that
vigilance is the price of
investment security.
want
we
Yorh, City
groups will perform
manner—as a matter of fact
Long Boom Industries
present
exist
time
"sellers"
Copies of the Offering Circular
for
practically all
[kinds of goods. To repeat what
I we have pointed out before, "sell-
may be obtained in any State in which this
from such of the undersigned as may legally
offer the Bonds in compliance with the securities laws
of such state.
announcement is circulated
,
jers" markets
and
turn,
mean good volume
good profit margins and, in
large dollar earnings and
large
dividends,
markets
mean
while
"buyers"
and
Some months ago we classified
Iherein various industries accord-
ling
to
the
the
INC/
probable
duration
■
'
-JIncorporated
STONE &
THE FIRST BOSTON CORPORATION
KIDDER, PEABODY & CO,
WEBSTER SECURITIES CORPORATION
of
"'sellers" markets. During
past week Standard & Poor's
published
(showing
BLYTH & CO.,
HARRIMAN RIPLEY & CO.
[companies.
(present
MORGAN STANLEY & CO.
intense
competi¬
restricted
profit mar¬
gins and, in turn, lower earnings
and
lower
dividends for many
tion
|probable
an
in
interesting
rough
study
measure
the
duration of the postwar
April 8,1040.
'
;
>
'
■
.
■■■.
-
his
ex¬
to
the
every suc¬
undertaking.
means
points.
on
service
coal.
while the Dow Jones industrial
index advanced from a 1927
high
in
;
In
we
on
office
Washington, D. C.
might mention would include cot¬
ton goods,
leather, shipbuilding,
Even a price index of the
popular tobacco shares
at
the
peak in 1929 reached only 118 vs.
118 in 1927. All of this was
going
Donald
peer
Nu¬
other similar situations
F.
In
of : rayon
and
silk
shares
touched 342 in 1927 but reached a
merous
&
the
Philip M. Musica under
assumed
dex
peak
at
Coster.
charge
of
former
Passaic
investigations, including" the
well
in¬
an
an
on the staff he handled
of its important litigations
many
Stephen Merselis Dies
|
-
offering is made only by
As
attorney
paying stocks, such as Willys- the Lying-in Hospital
Overland, are being bought.
York.
;*
4 5, h
This announcement is not
Se¬
g e
o
become
1927
and, despite the swift uprush
in the following year or
two, to
have sold at a loss at the
top of
the market in 1929. To be
speci¬
fic,: a^price index of woolen goods
common stocks hit a
high of 305
in 1927 but the best
price reached
of the
_______
n
Commissi
to
office
and
a
and
Dec. 31.
on
the
Exc h
.
Gables First National Bank. De¬
posits in the First National Bank
three
really
being purchased on a very liberal
future income
basis, to say noth¬
ing of the future income basis on
against the long-boom and growth
industries and by
adjusting nor¬
New
from
3,
of
of the corporation or
corporations
with accumulations
of cash tor
other quick assets which
as
those industries which will benefit
from the deferred demand indus¬
tries and may be expected to move
more
dry less in harmony
with
of
on
Merselis, Comptroller
which, while exceeding 70% of of J. P. Morgan & Co., 23 Wall
their earnings, appear to be inade¬ Street, New York, when it was a
quate when considered in con¬ private banking house, died at
nection
Another
i sums
porations
expansion in these industries
the
normal
plus from which taxable dividends
might have been declared; cor¬
at
finance, gold min¬
contribute to
their
shareholders in the form of loans
out of undistributed
profits or sur¬
ing, paper, printing and publish¬
ing, retail trade, and sugar. Vol¬
ume
or
to
advanced
Such industries in¬
clude beverage,
the
The First National
group in¬
corporations cludes the First
Trust Company
invested earnings in of
Miami, the Little River Bank
other properties un¬
and Trust
Company and the Coral
activities; corporations which have
therefore
operate
of
Bank
said:
securities
or
in which deferred demand cannot
f
the
which have
lesser degree the cycli¬
cal impulses of other industries.
Then there are those industries
have
say,
Corpor¬
ing, aircraft,. air transportation,
chemicals, cigarettes,' petroleum,
and utilities/ which over a
longer
term may be expected to reflect in
accumulate
to
ations which have not distributed
at least 70% of their
earnings as
taxable ; dividends*,
into other distinct categories, such
the growth industries,'includ¬
greater
venture
we
attention i to determine whether
-Section 102 is applicable:
as
i
-dividends,
Chairman
April 2 by E. C.
will produce more or less
startling Romfh, pioneer Miami banker
and former
developments later in the year.
Mayor, who said he
The
law
states
that
returns was retiring from business.
As¬
filed toy the
Press
following classes of sociated
advices
from
corporations will be given close Miami, Fla. April
2, appearing in
classified
are
nounced
earnings
will, be intense and perhaps even
Other
tional
in
the
dangerous competition.
could support.
of successful specu¬
lation is not only a correct
apprai¬
sal: of the present situation but of
essence
will
ferred demand has been met there
now
.
-
Profits will be large while
the boom is on, but when the de¬
125, or that Standard Gas &
"Electric $7 Preferred stock in 1942
;sold at 6 and now sells at 140, or
that Raytheon in 1937 sold at 50
.reaching a decision as to whether
to buy, sell or hold.. «
;;f
The important fact to realize is
and
corporations failing to pay
; out
a
substantial part of their
boom.
of
sells at 26, or that
/Radio in 1929 sold at 114 and how
sells at around 15
may be interest¬
ing, but nevertheless irrelevant in
deferled-demand
,
greatest impetus to the post-war
selling at the equivalent
cents and
so-called
Galpeer
has
an¬
resignation as As¬
sistant Regional Administrator
of
his
curities
Reynolds of American National.
whatsoever as - to their
present intrinsic merit. Stocks sell
;at different levels at different
times because of different condi¬
the
J..
nounced
First National Bank of Miami
and three affiliates taken over
by
now.
,
bearing
Acquires
First Nal'l of Miami
amiss,
though it may be premature
even
SEC to Join Law Firm
it may, a
boom equities may not be
just
Irving Galpeer Quits
Of Miami
approximately
warning to look out for the short-
electrical equipment' from- one'to
two years, tires two years, office
equipment
three
years, .) farm
prices at which stocks sold on cer¬
tain previous occasions
have no
should
three years.
apparel in¬
dustry will, last about 18 months,
the
-
in
American Nal'l Bank
GOLDMAN, SACHS &
CO.
MELLON SECURITIES CORPORATION
SCORPORATION
EITIRUCESifU
Y>
*.r.
'•
fl.!'
•
■
.
v '
I ■
.
1816
v
Thursday, April 4, 1940
THE COMMERCIAL & FINANCIAL CHRONICLE
timates of
2%%
a
the
coupon on
next Government loan in the fall
will
probably
wards.
With
By
BRUCE
Furthermore,
as
it is
WILLIAMS
'
/
•
likely to remain
a
vorably affected by the settlement
of the
"Seed-grain Case."
The
internal bond section is likely to
natural security when traded in
.
continue in the doldrums and cau¬
its income return as a permanent
investment.
I-',; 1 ■
should
tion
still
ba exercised
in
taking extended commitments.
the Canadian dollar
of
return
Saskatchewan
Dominion
Due
would
January 15, 1957,
the
ling, and
its
S.
U.
dollar
ster¬
in
valuation
Toronto and Montreal
the
light
expected event of
of
the
would
what
be
of
the
Canadian
the
re¬
of
a
Pomimiox Securities
<ORPORATI07i
40 Exchange Place,
:,
^ J,
Canadian
bond? '
for
market
an
Charles E, Bailey Co.
internal
free
To
funds
doubt
initially improve
in sympathy, but as the huge bull
position
in
Canadian
internal
bonds was largely established for
no
buyers
would
Open
with
offices
in
ment
automatically be¬
Therefore,
Officers
business.
Bailey, President, and
Nathan Z. Greenhouse, Secretary
and Treasurer. Both
&
GOVERNMENT
liquidate profitably.
It
is very unlikely that the Canadian
authorities will immediately lift
the exchange restrictions to per¬
further
MUNICIPAL®
The
CORPORATION
the
of
internal
position of the
bond
is
there is
ance
less
even
no
from
A E. A M ES & CO.
.
INCORPORATED
free
funds
9 5/16%.
A
\
TWO WALL STREET
f
NEW YORK 5, N.
Y®
,
,
.
recent
was
,
issuance
by
NY-1-1045
Thus
a
because
have
not
per,
have
been
little
following table:
to say about
■/
,
1910,
the
Mineral Production According tq
carats
Gold
In
BOSTON,
MASS. — Dayton
Haigney & Co., 75 Federal Street,
is now doing business as a cor¬
poration, with Dayton P. Haigney,
formerly proprietor, as President
and
who
Treasurer, Benjamin Bailey,
has been with the firm for
some
years
in charge of the bond
department, $ is
Vice-President;
and William J. Gately, formerly
Comptroller, is Assistant Trea¬
surer.
v,
province
has
c
.
New
Proprietorship
,.
STOCKTON, CALIF, —Otto E.
Sandman is now sole proprietor
of Holmes & Sandman, Bank of
America Building.
He was for¬
merly a partner in the firm with
long term public
level, and, es¬ Horace T. Holmes.
issue below the 3%
~
386
/
——XX
337
176
Chrome Ore——
:;i75
—
Silver
X—-X-x : ;; 136
Manganese Ore——— V 128
115
Tinx'-xXXX-—XXLXXXX-Xxxxa1
third to gold, with a ratio
totaling only 2.4% ^compared with
89.8% for gold. The value of the
coal output was greater than for
diamonds,1 representing 4,5% of
that >for all minerals.
:
;
poor
:■■■
Mineral
production has stimu¬
development of a rail¬
a few miles of
the
lated
network and
road
improved
y
national
roads. ~ The
the
derives
Government
greater
contributes to the maintenance of
of its revenues from the
products of the mines and affili¬
ated activities. However, it is not
perhaps 4,000,000 persons or very
nearly one-half the population.
trial
The gold
ploys
The
mining industry
400,000
over
Union
a
persons;/ and
South
of
part
em¬
Africa
the
had
production
of
essential rather
an
war
Among these industrial
products may be listed clothing
and
textiles,
leather • products,
ceramics, wood products includ¬
ported.
workers
ing furniture, vehicles, books and
printing. In consequence, the kinds
manufactured goods imported
quantities have been
luxuries, motor vehicles, electrical
of
in increasing
such as have been
Union, have been of
the
precious stone variety and
therefore
essentially luxuries.
Like
most
luxuries
they,- have
faced an uncertain and varying
market. Hence it is not surprising
Diamonds,
equipment, the latter two mostly
mined in the
find
with
ness
that investors
a
little
has
in the dia¬
that
no
or
time
to
produce
produce owing to
the lack of certain raw materials,!
^® ^
A,
The
accompany
'*•
.
V>*-''• fv
'Agriculture
.
many
J4
i
.\
uncertainties asso¬
industries I
ciated with the mineral
this type of sensitive economic ac¬
tivity. The practical world
clothing
is unable to
or
experienced all the
travail
States,
piece goods, iron and
steel products (largely machinery)
and a miscellany of many other I
items which a frontier country
cotton
and
somewhat hazardous ,busi-,
joys and
United
the
from
industry have always flirted
and have
limited
as
petition ^with commodities which
v/ould otherwise have been im¬
have
of
well
as
facilities could not withstand com¬
For had gold min¬
luxury.
significance that indus¬
growth has been aided by
The local high cost of
without
tariffs.
pared with the gold mining in¬
dustry is about 25,000 to 30,000.
Competition from the Belgian
Congo, Angola and other parts of
Africa has been quite severe.
mond
was
-
Platinum
compared with the total value of
the mineral output, ranked a very
to
develop¬
3,950
2,125
Copper-------x~—.'
1936, this latter value,
the distinction during
I®
79,495'
—-
:;
Asbestos ______—X
10%
of that in 1910 and the value about
25%.
in 1936
(000)
--L-
Coal
output
roughly only
:
Diamonds--- A
In 1936 the volume
was
£'s
Value
v;-aaa
diamond
ore,
manganese
platinum, silver and
mined, as showing in the
tin are
significance.
more
of
We shall have
f asbestos,
chrome ore,
included
until quite recently they
number
'
•
forestalled the Dominion in being
the first to sell
diamonds, small quantities of cop¬
manufactures in these comparisons
certainly
inactive
the - Province of
a
the Detroit Stock
as
British Columbia of 20 year 2%%
premium.
We
In addition to gold and
that
note
collapsed. / The
employed in
the diamond industry today com¬
bonds which were sold at a small
RECTOR 2-7231
on
respective needs. But gold above
all still "pays the way" for the
Union.
Before leaving our con¬
sideration of minerals we should
ing been stopped the nation would
ment in the domestic market
the
monds. a"
Union.
the
of
nearly
was
ex¬
slightly to
interesting
Its value also
market.
favorable
eased
the economic backbone
They have been
and are important not alone for
the value of their own production
but for 'their attraction of other
industries essential to supply their
stituting
years.
five times the total value of dia¬
firm, which will hold
new
unregistered
section
internal
recent
total value of the major minerals
mined.
declaring gold
During the past week the high
grade external market continued
very firm but there was little ac¬
tivity in view of the scarcity of
supply.-; Albertas were dull and
quotations were slightly lower.
The
in
of
in
production figures for the entire
period. These show the value of
gold to have equalled 75% of the
than
question of its sever¬
any
association with
and
Hague
'
ties.
the market in Canada.
CANADIAN STOCKS
former¬
Exchange, will conduct a gener¬
al
investment
banking business
dealing
in
stocks
and
bonds,
specializing in Michigan securi¬
action in
the
/v.. :
membership
to the official
divorcement
ternal from
CO.
The
removing the registration privi¬
lege suggests a contrary attitude
with the possibility of temporarily
PROVINCIAL
were
ly associated with Smith,
efforts to
access
are
Charles E.
competition in their
market and their recent
Penobscot
the
considerable
mit external
ounces
tion of gold throughout the life
the colony may be observed
in
Building to engage in the invest¬
the best sellers.
gold and diamond industries, they
must be recognized as still con¬
In value, this
has declined.
Detroit
in
it is likely that even the holders
of registered internals will meet
CANADIAN BONDS
fine
a;'
Backbone
the variability of the
In spite of
to
3,000,000 ounces annually,
it has reached practically 12,000,-
since
DETROIT, MICH.—Charles E.
Bailey & Co. has been formed
this very event, the previous best
come
the
While gold production with oc¬
casional exceptions has increased
'
,
The
would
New York 5, N. Y.
T:i-•";;
Bell System Teletype NY 1-70273
syv'\
unregistered
&
" ■.
v
the market situation of
on
of
amounted
Economic
The
about
them later.
change in the official rate in Can¬
ada
on
fact, the importance of the posi¬
Winton
Jackson; James F. Jacquest,
previously an officer of Dallas
Rupe & Son; and William P.
Smallwood, proprietor of Smallwood and Company of Ft. Worth,
who has recently been on war
duty.
dollar
effect
field
/>.,/v
•
and Gold,
Diamonds
impressive produc¬
tion has amounted to nearly 90%
of the total mineral output.
In
A.
un¬
upward
an
first
at
■
very
a
world-
the
plateau
5,000-foot
the
close correlation with
variations in our coun¬
try.
output con¬
in
Witwatersrand
<
000
of Beckett, Gilbert & Co.;
V
Even
Direct Private Wires to Buffalo,
famous
gold
largely
Transvaal
Principals of the firm are Wil¬
liam C. Jackson, Jr., recently in
the U. S. Navy, and prior thereto
of Callihan & Jackson; Thomas
Beckett, Jr., formerly a principal
trade the Dominion will not jeop¬
ardize its current favorable posi¬
tion.
to
the
centrated
Union
the
in
industry
business
show
inter-relations.
Building, in Ft. Worth.,
than ever with
stake in world
greater
Company
cantile Bank Building, Dallas, and
now more
even
Southwest
First
market for these diamonds,
of the diamond-
vicissitudes
mining
non-mineral in¬
mineral and
in the Fort Worth National Bank
bal¬
and
United
we
us,
effort to main¬
an
Incidentally, since the
States has been the pri¬
tain prices.
the
for
and corporation securities. Offices
will be maintained in the Mer¬
old
always had to preserve a
somewhat precarious balance be¬
3.80%
Government in
mary
in investment banking as
originators,
underwriters,
dis¬
tributors and dealers in municipal
has
tween
Price 10654 to yield
the
very
hard-earned
in the early 20th Century has now
disappeared.
Iri pre-World War
II days production had fallen to
10 to 12% of the world total. Dia¬
mond deposits are still abundant
but mining is restricted by the
present-day situation in
Whereas
TEX.,—Announce¬
engage
established.
Canadian currency
or
the
the
create
proportions after 1910. Nor would
convey the idea that their in¬
fluence upon the development of
the region thereafter was incon¬
sequential.
However, to appre¬
terests and their
ment is made of the formation of
conditions become decidedly more
The Canadian dollar
States
United
seems
to
we
the
in Texas
DALLAS,
of her economy until world
ance
in
it
the
wish
not
must take into
consideration the struggle between
First Southwest Co.
to
evident that Canada will not risk
unsettling
Payable
restore
do
pect
This supposition
appeared vrey logical when it was
thought that Canada had tem¬
porarily established her currency
at a 10% discount only-as a war¬
time
measure,
and that almost
immediately after the war the
parity.
'
Today however
4%% Bonds ®
We
impression that gold and diamond
mining dwindled to insignificant
this market andito weigh its pros¬
its old parity.
Province of
In South Africa
(Continued from page 1785)
ciate the
demand however for these
securities has been largely based
on
the expectation of an early
$100,000
'
regard to
Albertas
dull feature
but Saskatchewans should be fa¬
are
'Can not be hedged in the foreign exchange market.
its liquidation value depends on<S>
The
down¬
revised
be
\
the high grade externals.
Canadian dollar obligation it is also not a
this country, and the exchange risk
' Consequently
a
'
the immediate
market outlook everything points
to a continuance of strength in
,5
What is the status of an unregistered Canadian internal bond
Jield in this country?
In the first place such a security can not be
exported to Canada and it is thus divorced from its natural market.
i
'
;
might cause one to suppose that
agriculture would attract increas¬
ing interest.
The fact is that it
monop¬
oly enjoyed by South Africa back
but unfortunately for the
of the Union the climate
and soils are not everywhere fa¬
has,
people
CANADIAN
Dominion of Canada
STOCKS
TAYLOR, DEALE
All Issues
64 Wall
Industrials
—
Banks
-—
Mines
Bought-—'Sold—Quoted
—
Sold
—
even
a
a
3-1874
primitive
Quoted
of
the
lied
as
CHARLES KING & CO.
61
Broadway, N. Y.
Whitehall 4-8980
Exchange,
Royal Bank Bldg,
private wire to Toronto
the
CANADIAN
14 Wall
Street, New York 5
Direct Private Wires to Toronto & Montreal
Government
Provincial
Then, too,
thel
farmers.
Nearly 80%|
classi-|
nearlyl
ofl
recorded <asl
whereas only 35%
Europeans
are
rural, numbering just under 700,-1
000.
Due to much mal-adminis-|
SECURITIES
Incorporated
Toronto, Canada
Teletype NY 1-142
Direct
Wood, Gundy & Co.
one.
non-Europeans are
rural, numbering
six millions,
Members Toronto Stock
lrage development or
stable
non-Europeans who far outnum-|
ber
the
Europeans
are
ratheri
Street, New York 5
WHitehall
Bought
vorable to
a a & company
oppression by -the
the
natives have|
farmed largely upon a mere Sub*
sistence basis which in turn has
tration
Municipal
and
Government,
Corporate
'
,
;
,
Smv. .}.
Volume
Number 4478
163
provided
life
of
THE COMMERCIAL & FINANCIAL CHRONICLE
alternating
than 4%
of her
exports, whereas
Kingdom/took about
Germany 8 to 13%.
tion to these items, wool,
asbestos,
chrome ore and a few other com¬
Outlook for U. S. Exports
properly instructed and
given the opportunity to work. He hZ Naturally we ask what is the
could prove an asset to the coun¬ outlook for
increasing our sales fo
try both as a producer and con¬ the Union of South Africa?
We
sumer
and thereby add to
the have supplied a considerable va¬
modities/but all in small quan¬
tity.
In fact, our imports in 1936
totaled only about $5,000,000 and
in 1937 just passed the $6,000,000
level. On the other hand we ship¬
ped to the Union in 1936, $78,000,-
a
famine and survival and
a•
rather
wretched existence generally.
the
whole
the
native
is
On
the
United
40% and
good
a
/worker
•
wealth of the
nation, but thus far
Europeans who dominate -the
riety of goods, but mostly automo¬
biles and parts, electrical goods,
scene do not see fit to allow of
machinery and
apparatus, iron
"this transformation.' The setting and steel
products more particu¬
is not unfamiliar. It is common
larly sheets and plates, chemicals,
to most other parts of the world
lumber, gasoline, lubricating and
where white man and black com- other
oils, clothing and food stuffs.
pete,,
\
All
of
these
were
competitive
The primary plant crop produc¬
products with those of the United
tion focusses upon corn, wheat,
Kingdom and Germany. We ought
potatoes,
tobacco,
oats,
citrus to be able to replace Germany in
fruits, the vine, peanuts and wat¬ part. What we can do in competi¬
tle bark./ Corn production is far tion with the
Empire preferential
ahead of wheat and becoming in¬ tariff
enjoyed by England is less
creasingly important in the na- certain. Of course if this arrange¬
tionl economy. Cotton, sugar cane ment is removed in
exchange for
and tea are steadily' expanding. the
proposed loan to Great Brit¬
Pastoral activities hold an impor- ain, we may be able to increase
'the
'
.
trit
position too. . In fact, South
African agriculture is often inter•preted as largely pastoral. Cattle,
; swine, and sheep production; are
important but like other crops are
our
sales
at
the; expense of the
United; Kingdom. / We can pot
a
sentimental preference
ignore
in the Union for British
the other hand
we
goods. On
.
bad
public attention to
farming procedures such as burn¬
ing of pastures to increase soil
fertility, inadequate weed eradi¬
cation, methods permitting of ex¬
cessive erosion and overstocking
©f
the
has
Lack of funds
land.
some
strong
Staets
observers,
-
are
showing
a
inclination toward United
products as
to de¬
a means
feat British Commercial Imperial¬
ism,'f which, they interpret
as
merely a form of- political im¬
perialism.
,
handicapped this division of the
Government from putting into ef\fect all the projects it would like
to have introduced.
Even so, the
Government
estimated
that
of the land
-
Unfortunately,
S
o ut h
Africa
does not offer much for
our
sumption.
gold
course
if
Diamonds,we
want still
more
of
than
can
has
about 15%
cially
on corn.
merchandise
of
SEATTLE, WASH.,—Foster &
Marshall, New York Stock Ex¬
change members, opened a new
branch office in
creased
of
as
enter
we
a
new
ident of the Seattle Bond Traders'
Club. Other general partners are
period
George
England, and certainly less from
Ragen
Germany and Japan.
Mr.
W.
sales
Our much
make
a
an
new
ability, clever ad¬
and
also
may
James
L.
C.
will
INDUSTRIAL! ZATION
AND
FOREIGN TRADE—Series of the
Brooks
League
of Nations Publications
(II. Economic and Financial 1945^
Robinson.
the
Spokane branch temporarily.
The
vertising and originality
Marshall,
Robinson
firm
also
manage
has
branches
II.A.10)
—
Columbia
University
Press, New York, N. Y.—paper.
,
in
SHOULD STATE UNEMPLOY¬
MENT
INSURANCE
BE
FED¬
people still possessing something
of the; frontier progressive
tries
might be expected
power
is
unsettlement often
involving arbi¬
controls in the past,
mbve
toward
stability and of certainty.
all
an
may
stage of greater
a
While
these things may provide
of
J
17, N. Y.—paper—5Op
improved outlet for the goods City.
turers, we need to recognize-that
the advance will be slow
Of Natl Sec. & Research
the mineral industries, and gold
MUST
MUTUAL Fd Page
,//:
National Securities & Research
in particular, dominate the life of
the nation.
Furthermore,
Corporation, 120 Broadway, New
have to try to find more products
of the Union to
buy what
need
not
balance
merchandise but
exports
our
our
we
and
announce
City,
Reed
announces that Francis
has
been
a
has
Mr.
practice of law
Ph.
re-elected
director of the corporation.
We Reed
trade
need to
of the New York Stock
C.
we now
import, in greater quantities.
/ Clark,. Dodge & Co., 61 Wall
Street, New York City, members
York
shall
we
Edmund Brown, Jr. Now
With Clark, Bodge Co.]
Reed Re-Elected Director
long
so
in
resumes
as :, a
the
partner
in
the
.firm
firm.
into serving
somewhat better alignment.
That Colonel
obviously will not be easy.
three
over
the
on
of
years
War
General Staff.".
as
•
Brown
who
,s
'
/'
"
.
/'•/.
•'
v
.*■•*»•V*
This advertisement is not,
offer to buy,
years
circumstances
no
any
Vfi}* 'v
'
•
i' I
'
r^'}X
-
to be construed -as, an
offering of this Stock for sale, or as
of such Stock. The offering is mdde only by the Prospectus.
>?•>
Y 'J
*
V[
* T y>
.r
•
«
•
'.-v
»
*''
an
c-
*•
y'$.
Publicker Industries Inc
Manufacturing
industries have
forward rather vigorously
since the depth of the worldwide
depression,
although
they i had
done very well from 1914 to 1929.
In 1934 a steel mill was opened in
Pretoria, fostered by the national
Government, marking a distinct
^
Common Stock
'
(^5 Par Value)
Other in¬
dustries are chemicals, textiles,
furniture, leather goods, ceramic
and
food products,
as
well as
many secondary ones, at least in
point of quantity of goods pro¬
duced.
By 1936 over 300,000 per¬
sons weer employed in all indus¬
.
| Price $23 Per Share
.
tries.
This
number
is
less
Copies of
the Prospectus may in any State only from such dealers
be obtained
ing.'m this issue-as-'tnay legally offer this stock under the-securities laws ofsilch'State,
than
the total
employed in the mines,
indicating something of the con¬
tinued dominant position of the
mineral industries.
it is
Nevertheless,
figure whose curve is mov¬
ing upward at an accelerated rate.
a
The
Union
has
endeavored
Merrill
to
Stimulate
manufacturing by the
standard
practice of protective
tariffs, sometimes to the imme¬
diate
disadvantage of the
mass
of
people because
many items could
for less money than
they can be produced and sold at
home. The natives, whose weekly
income is only a few dollars, can
>
ls$k
*'*
*
'v',;;T
5t 1
>? t;
V,'
v/
\X,.
Blyth 8C Co., Inc.
I
*
Lynch, Pierce, Fenner & Beane
V'
?
tfi
T
-•
^'d-'
%
w
buy few of these goods.
Of the total merchandise trade,
the
United
States
well by way of selling
the Union. He sold her about 20%
ranking next after
United Kingdom, which sold
between 40
to 50%.
Germany
of her imports,
the
On the other
absorbed little of South
production, taking less
supplied about 5%.
:
hand, we
Africa's
Eastman, Dillon 8C Co.
A. G. Becker & Co.
businessman
did pretty
*
;
be imported
,
>d
Central
]
>
J
-"X:.
Republic Company
(Incorporated)
Hemphill, Noyes 8C Co. /
/
'
,
0
y**-
•
' 14
t
' *'ii 'rs
;
Drexei 8t Co.
;
A
•
:"7 :
v'
'
//'C-.
.
Hornblower SC Weeks
Incorporated
Aprils, 1946
'*?:<
The First Boston Corporation
Hallgarten
Co.
~
...
E. H. Rollins 8C Sons
"
v;:
,
a
for the last five
has been a-Vice-President
of that organization.
,
400,000 Shares
gone
advance in this field.
andffts under
solicitation of an offer to buy,
-
Manufacturing Industries
j.
or as a
has
research,/ and
Department
•
Mr.
•;
D. i degree;
from
Columbia
University, has been with Leh¬
man Corporation1 since
1929, do¬
ing
investment
and - industrial
bring Hughes, Hubbard & Ewing after
imports
Exchange^
that Edmund Brown, Jrl
associated with the
become
„■
agricultural situa¬
tion because it has a bearing upon
the standard of living of the peo¬
ples both in rural and urban
areas,
upon
industrial develop¬
ments and consequently upon the
nation's import and export activ¬
ity. • / With nearly two-thirds of
the total population engaged in
agriculture, they produce only
one-eighth of the national income.
}
.
—
of many United States manufac¬
as
•; ■
//WINGS OVER AMERICA, The
Future
of
Air
Power
Johij
Stuart—Public Affairs Pamphlet
associated/with them in their
No. 114—Public Affairs Commitimunicipal bond department.
In
tee, Inc., 30 Rockefeller Plaza, New
the past Mr/ Milnor was
Manager York
20, N. Y. or Aircraft Indusj
of the trading
department of the
tries Association of America, Inc.;
New York office of Van Deventer
610 Shoreham Building, Washing*
Bros., and conducted his own in¬
ton 5, D. C.—paper—10p
vestment business in New York
hope that Government
trary
—
Mellon Securities Corp., 2 Wall
Street, New York City, announce
that J. Kirk Milnor has become
to add to the size of the market.
There
Herman
Gray -i
Enterprise Association;,
Inc., 4 East 41st Street, New York
American
Mellon Seenrilies
which should increase pur¬
chasing
ERALIZED?
J. Kirh Milnor With
spirit.
Progress in manufacturing indus¬
4
.
Portland and Eugene, Ore.
effective sales appeal to
s
Bookshelf
ing in Spokane. Albert O. Foster,
senior parter of the
firm, is Pres¬
perhaps less competition from
vaunted
Man
Spokane, April 1.
The new office and boardroom
will be located in the Title Build¬
1937
in
and
Business
Opens Spokane Branch
We note the
*
•*
we
be
ever
000
Foster & Marshall
nearly $98,000,000 worth.
These
amounts are by no means
negli¬
gible and apparently can be -in¬
con¬
have, angora hair, wattle bark,
sheepskins and perhaps a few
cultivated, most of it be¬ odds and ends in native handcraft,
ing more suited for pastoral farm¬ are about the only items unique
ing.
In fact, the unsatisfactory to the region which might appeal
status of agriculture has led the
Government to provide bounties
«on
food production, more espe¬
only
We have bought, in addi¬
us.
should not fail
adequately supported al- to recognize a growing spirit of
though encouraged by the De¬ goodwill toward us and a recogni¬
partment of Agriculture as de¬ tion among many if not all of the
serving of increased concentration people, of the worth of "Ameri¬
can"
goods.
!©f effort.
Furthermore,
the
1 Leaders in the Department of Afrikaners, supporters of the Na¬
'Agriculture have for some time tionalist movement, according to
not yet
directed
to
I"C«P0M"4
-
/
FINANCIAL CHRONICLE
THE COMMERCIAL &
1818
Lion Oil Common
Thursday, April 4, 1946
Holds Manufacturers
Securities Salesman9s Corner Offered by BByth & Go.
An
This Dealer Is Looking
by
Ahead
$34
,
share.
per
the
Of
proceeds
1929 and again in from the sale, the company ex¬
1937, are aware that it is not so important where you are today, but pects to spend approximately $1,where you are likely to be several years from now.
Many a fellow 250,000 in the construction of a
who counted his assets up, and smiled in satisfaction at the top of still at its refinery at El Dorado,
some of the memorable market sprees of the past, lived to see the
Arkansas, for the manufacture of
day when he was glad to have a few customers, on whom he could petroleum products by catalytic
count for some orders and some commissions.
And what kind of cracking and treating by the use
customers were they
Were they the "free riders," the "quick turn¬ of the Houdry Process. The re¬
ers," and the "get me rich quick" boys? No, they were the kind of mainder of the proceeds, with
security buyers that were more interested in the old fashioned tri¬ treasury funds, will be used for
umvirate, that all of us learned about years ago—SAFETY OF PRIN¬ expansion. ;;;of drilling
and ex¬
CIPAL, INCOME, AND MARKETABILITY IN KEEPING WITH THE ploration activities. Lion Oil Co.;
NEEDS OF THE INVESTOR, /They were the kind of people that is
engaged in the
production,;
were not interested in watching the market overy other minute of
purchase, sale, transportation and
the day.•
//-.'/^
'•////1//"//-■•/•///
•/;J refining of crude oil and its prod¬
Crude
oil is produced in
And the woods are full of this type of security buyer—even to-: ucts.
Kansas,
Louisiana,
day. All you have to do is to go after them. The investment trusts Arkansas,
are proving
through sales running into the hundreds of millions, Mississippi and Texas. The Ark-;
that people will buy securities for income today.
The savings banks ansas production is run to the.
are loaded with cash.
Most of it "is earning not over 1V2%.
Even a company's refinery through its,
four percent return looks high when measured against such a low1 own pipe line system.
Gross operating income of Lion
yield. Of course, people in the higher income brackets are not inter*/
ested in income.
That is only natural under today's penalizing tax; Oil
Co.
in .1945
amounted to
laws which lay an inordinate burden upon those who have large $22,963,713
and net profit was!
incomes. ^/■//
$1,670,689. The company paid div¬
idends
on
the
common
stock
But there are more investors, with sums ranging from $3,000 to
$10,000 seeking investment today than any. other time that we can amounting to $1.40 per share in
recollect.
Mortgages are being repaid, frozen real estate is thawing 1945 and for several prior years
dividends were, paid at the rate1
out, and this too is piling up cash for investment.
of $1 per share annually!
One dealer in a northern city in New York state, decided to find
a method of uncovering some of this income seeking cash.
First, he
hired two new salesmen. He gave them enough small accounts of
Those who
remember what happened in
can
Relnctant to Produce
underwriting group headed
Blyth & Co., Inc. offered to
the public April 3 150,000 shares
of Lion Oil Co. common stock at
By JOHN DUTTON
,.
,
(Continued from
others
many
shifted to
known to have
are
models and prod¬
new
ucts which offer better, prospects
of
profits than some of their reg¬
ular lines.-, The distinct possibil¬
I
»
his
that at the beginning they were able to get
own so
into produc¬
Next he-secured a list of BUSINESS and PROFES¬
SIONAL women who are reputed to have incomes of $2,500 per year
tion promptly.
another prospect list of several thou¬
in his community that had an annual income of $7,500
He also acquired
and above.
sand persons
and above.
,
•
•
He devised
.
attractive printed card that folded over and could
an
This card had a
The offering
was based upon INCOME.
A strong local company, that was well
known to everyone in that city" was briefly described, and the oppor¬
tunity for securing four percent return was emphasized by contrast¬
ing this income return with prevailing interest rates of about 1%%.
be mailed by
using one cent pre-cancelled "stamps.
perforated return that the recipient could use for reply.
beginning to do business because they are
working the leads that have been brought in by this mail campaign,
The
j
sr
new
salesmen
are
This dealer is building his business the right way.5 He is adding
that are:-primarily concerned with getting a fair
all -investors
return
c?n
on
count
fc~des
on
their investments.
on
a
They are the kind of clients that you
in bear markets—they aren't watching the world go to
tieker tape.
dividend check; and as
What they want to know is where is my
long as they get it THEY'RE HAPPY.
Western Development
J. Lee Peeler Forms
Corp. Open in N. Y.
Own Firm in Durham
/Announcement
formation
of
is
made
DURHAM, N. C A-J.Lee Peeler
of the
Develop¬
Western
Corp. to deal in investment
securities from offices at 120 Wall
ment
has formed
Lee Peeler &
Co.,
Inc., with "offices in the Trust
Building to engage in a securities
business. Mr. Peeler, who will be
J.
Street, New York City.
Sidney H.
Fischer, formerly President and Treasurer of the
with Strauss Bros., is associated new organization, was formerly
with the firm as manager of the an Officer of the First Securities
Corporation.
trading department.
Mary Lee Candies, Inc.
Common Stock
Prospectus
request
on
Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NEW YORK 5, N. Y.
Growers
Inc., Com*
Bradford Eyman
Co., Com.
Eyman & Co. in
thereto / he was
officer of Patten,
Prior
Seattle.
with
Druihheller^ Ehrlichman. &
Whiter
./-. / / ■%/ ;/■ ■:/ ^;
j
r
contracts
■'/'Ki'-.H
especially of
ments by the armed services have
goods, would
during 1946 be¬
been available within an average
of two weeks after application, so
cause'-of the
greatly expanded
productive capacity available, plus
that companies have /not
been
obliged to wait for actual termi¬
ords in production,
consumers'
durable
established
be
of effec-: nations to receive cash. In addi¬
recent weeks/ tion, in January and February of
however, many firms have low**; this year .business /firms In 4he
ered their sights for 1946 as de¬ nation cashed over a billion dol¬
lays /caused by strikes, material! lars in excess profits tax refund
backlog
considerable
a
five
demand.
In
.*
and ; labor / shortages
increasingly serious.
shortages,
bonds./
//:-/
-
.
,
,
//
/
have become
Many businessmen in this district
report that this year's pro¬
now
Financial Positions Weakened
"The
average
improved finan¬
not even reach the cial position of 'businesses be*
levels attained* in tween June t and December; 1945,
1941, if current Industrial- under*: however, should not obscure the
tainty and strikes are prolonged fact that' some companies have be¬
duction may
best prewar
much/Turthdr/^'Th^ farm equip¬
haved
to trend,
counter
particu¬
ment industry, for
New Bond,
McEnany
Partnership Formed
-ress
of de¬
mand for many of their products,
some'; questions
are
now
being
uncertainty
to
as
consumers
the ability
of most
finance more than
to
iipportant consumer durable' ■
good purchase at any one time,
especially at present and expected
price
levels.
In other words,
while most consumers may be
anxious to own a wide variety
one
11th, a new partner¬ of new products, including auto¬
formed under the mobiles, furniture, and appliances,
firm name of Bond, McEnany &
it is highly unlikely that the bulk
Company,
with
offices
at 60 of them will be able or willing to
Beaver Street, New York
City. finance from current; income, or
Partners will be Allan Bond, Ber¬
buy from accumulated sayings,
nard J. Conlin, Clarence A. Millmore than a very limited number
ner, Benedetto Lopinto, Richard of • items at
any one time. As a
A. Springs, "jr., Sterling S. Beardsresult, more attention is being
ley, member of the New* York given to the probable order in
Stock Exchange, general partners,
which these purchases will be
and W. E. Cliff-McCulloch, lim¬
made. Industries and firms which
ited partner,
have the earliest production may
; /Mr. Beardsley was formerly a
have certain marked advantages
partner in Hazlett, Burt & Wat¬ over
others;- in tapping the soson; Mr. Bond in the past was a
called backlog of demand, as it
member of the former partnership
applies to any particular family
of Bond, McEnany & Co.
Mr. unit. The necessity for consumers
Springs at one time conducted his to/
buy many goods in sequence
own
investment business in New
rather than all at once promises
York City. Other members of the
to level offr and probably to ex¬
new
organization were members tend the duration
of, the backlog
of the former partnership of Bond,
of demand as it is now viewed by
McEnany & Co.
.
some
business firms.
This fore¬
shadows a return to active • sales
New York Stock Exchange competition in many lines perhaps
sooner thatjiiow expected."
/ !As of April
ship
will
be
Weekly Firm Changes
following firm
Continuing
bank
Henry S. Allen,
from
Bantel
Garvin,
Jr.,
on
&
Privilege of Edward
to
act
as
Co.,
was
March 31st.
Harry I.
alternate for
was
Lamb
S.
retired
from
"Not only has
production de¬
number of idle
.,
and demobilization
since the first of; the
mounted
the
but
effects /of wage-
price-profit controversies can also
be seen in%ie financial status of
some
business firms,
consumer
accumulated
individuals,j and
expenditures,
.
over
<
wage-
v
by
no means
serious, but
a num?
begun' tor experience
financial difficulties.
Cur*
have
ber
some
production and.output for
inventories
rather than
sales;
tailed
,
pending reconsideration of price
requests by OPA, have caused re*
cent financial statements of many
companies to show losses and a.
deteriorating current position/ . *
"The cushioning effect of accu¬
mulated savings /uppn/iiicUvidual
expenditures and community bus¬
iness life during periods of work
stoppages has been amply demon¬
strated during the current unset¬
tled phase of reconversion in the
Seventh Federal Reserve District.
Equally apparent; however; is the
that / accumulated
savings,
once
used to maintain families
and communities affected by work
stoppages, cannot be counted upon
later for purchases of consumers'
durable goods or for support dur¬
ing any future periods of unem¬
ployment, Gary, Indiana, District
steel center, and Flint, Michigan,
key city in the UAW-General Mo¬
tors controversy, are two impor¬
fact
illustrative
tant
Seventh District
industrial areas which have expe¬
widespread
strikes
in
principal/ manufacturing
rienced
-
their
The steel strike extended
21 to Feb. 17
producers, and
is still in prograss for steel fabri¬
28
the
strikes
savings oflhany
withdrawn March 31st.
Dana
District
and/the
clined
year,
Gutekunst
noteg" that
Seventh
analysis,
its
•
ment's
plants.
Effect of Labor Disputes
Exchange
The New York Stock
has announced the
upon strikes and
the .Govern¬
price - policy.
For
most5 companies-the recent com¬
mon decline in current assets if
attendant
have utmost confidence in the ex¬
istence of a huge backlog
raised*
previously with
A. C. Allyn & Co., has also joined
the. firm's staff.
John A. Eifert,
Nicholas, Jr. of Benton & Nicholas
WdgensellerS Durst, Inc.
terminated
have
study of
With
Son & Co. of Seattle and was an
Arden Farms Co.,vPfd. & Conn
Oil
A sample
The Marshall Gompany
withdrawn
Fullerton
4,000
over
with which
terminations
example* had larly during the last few months.
planned a new record-volume of •Companies whose financial posi¬
farm equipment in 1946, but ma¬ tion weakened after June, 1945,
jor firms now hope only to be fall into two main groups, namely
(1) those which were inherently
able to equal 1945 output, which
weak Throughout the war, and (2)
was considerably under the record
(Special to The Financial Chronicle)
-those, mainly in metal working,
high of 1941. Automobile manu¬
MILWAUKEE," WIS*.—Bradford facturers, moreover; who early whi eh /expanded considerably
Eyman
has
become
associated last fall believed they could at¬ •during the war and .which have
with the Marshall Co., 762 North tain /a rata of: 5 to 6 million: ears since been shrinking back to their
Water./ St.; Mr. Eyman lias re¬ a year by this spring,- currently prewar size. The general weaken¬
cently been engaged in. the .man¬ have lowered their expectations to ing" in financial status in the last
Tew months is due largely to the
ufacturing industry.
In the past 3 milRon vehicles/
he was with Wm. P. Harper &
"While businessmen continue to •slowing up of reconversion prog*
the Exchange for
Fruit
contract
war
been handled.
reveals, moreover,; that requests
/ for advance payments of any. kind
/At the time the war with Japan were made in less than 10% of the
ended,
there
were/ widespread cases. T loans through the Federal
predictions that new all-time rec¬ Reserve Banks and partial pay¬
bution of goods.
changes; •
> • ■,
Privilege of Daniel G. Condon
to act as alternate on the floor of
American
to the speed
measure
ity of further upward price ad¬
justments, 'in fact, is in itself an
important hindrance at present to
large-scale production and distri¬
.
■
1783)
page
stronger liquid position than they
did the month following V-E Day.
This average betterment of cur¬
rent position was due in no small
particu¬
days from Jan.
for the basic metal
The General Motors strike
cators.
continued 113
days/from Nov. 22
primarily because of
accumulated savings of workers
and their families, the extension
to March 13.
of considerable credit
by ^business
firms, and the availability of some
funds
from
sources,
public
and
private
to aid destitute workers
their families, general busi¬
and
Heath, limited partner in Thomas
Gary and Flint
industrial areas most
have been maintained .at unex¬
seriously hit by work stoppages.
"At the end of 1945, some four pectedly high levels despite the
months after V-J Day, business complete shut-down over extend¬
Marsalis
firms
Members Los Angeles Stock Exchange
•
partnership in Ingalls
626 SO. SPRING ST.
March 31st.
1 TRINITY 3761
LOS ANGELES 14
Interest
of
& Snyder
-
the
late
Marian B.
Teletypet LA 68
Mark! Quotations and
information
on
all California SecurlflM
21st.
:
&
Co.,
ceased
on
Feb.
ness
larly in the
activities in
,
in the
district
on
nation and in this
the
average
had
a
ed
periods of .basic income-pro¬
ducing plants."
/#///'':7
m::m
163
Volume
'
*'
■
THE COMMERCIAL & /T/. „
FINANCIAL CHRONICLE
Number 4478
.
>It
.
T
.
seems
as
though the change in short-term rates will have
on long-term rates.
77
/ 7
; ;
^
important effect
ff0ur Reporter
Governments"
on
.
dent
no
The combination of
ings have again
good institutional demand and small offer¬
a
listing
needed
to
earlier
%%,
was:
'
change.
...
j
The short-term section.of the Government market
has been,
;;
and still is, in the process of
adjusting its position to the new/'
conditions created by the Government's debt retirement
program and the regaining of control
by the Federal Reserve Banks
>
*
.
•/,'.
It is apparent that the minor stifrates will affect all factors in the near terni
market, but these elements will' sooner or later become
.
.
particular
rto; the
to
adapted
new.
developments without too much -disturbance in the
of
these
securities
.
*
Although the opposition of the 'Secretary of the Treasury to a
; change;ih^ thevpreferential
^discoimt?Tate j had a igood Effect on "the
,
.
Government securities markets, it is: believed in some
quarters that
/ .this rate could toeeliminated
any time without causing more than
.vuy temporary uncertainty, in the market.
.
.
to /subscribe or other
of
The borrowings for one yeir or less are not
large and it is; .'
Very doubtful that the big banks would borrow for.any great1
listed
securities.
"I
York
sure
action
or
Mr/ Schram^
that when
you agree
is
taken
the
of
obliga/ tions and loans to others for carrying Government securities. W i
it
at
the
moment.
some
guide,
,-.
The
Long-term rates should not be affected
.
by changes in the near-term rates.
.
„
.
The; position -1hat Mr. Vinson-took
serve
requirements indicates that
likely during 1946.
' *
•
%
.
no
'
£
-
policies in the
The present
ed in
1945.
pany
may
and
divided
and
of
of
the
tribution
;
with
made
Stock
develop¬
policies
these
incorporated
have
/,
variety of
the change¬
which
in
The
the
the
companies
the
Exchange
-
In
view
New
the
at
of general
industrial
time
alcoholic
and
of
beverages
also is engaged in
shipping business through
Paco
it has
Tankers,
50%
a
conditions
•
interest in two
'
company and
of
year :1945 amountechto
a
considerable number of listed
companies, and, further, because
of changes in personnel coinci¬
"
no
Afv;/ / .•■:/
circumstances
to
■'
"previous yeax.
.
;///
be construed
as,
an
.
///T/
offering of these
.
.
•
"
.
NEW ISSUE
Institutions..
*
-, -
"r
*»
x x
.
r
>
■
,
' .:// '
:/-
■
50,000 Shares
/ :
■,
f
Doyle Manufacturing Corporation
„
supply and demand
With reference to non-bank investors and
their holdings of bank
eligible intermediate- and long-term bonds the amount of
liquida¬
tion of the eligibles
by these owners will depend largely upon what
the'Treasury will dc' in the way'of new offerings to ultimate inf
are
.still
investment and this
money
ities which, unless'
very
60 Cents Cumulative Convertible.
Preferred
available
supply of
Stock,
Series A
large amounts of funds seeking
exceeds the
(Par Value $8
secur¬
share)
per
something is; done to increase it, will result in
*.
"
'
4
This probably means that non-bank
investors will not be;;
heavy sellers of bank eligible bonds, unless
they can get very
fancy prices for their issues or are
preparing their short-term 7
position for possible pew
financing by the Treasury.
Cash
>
funds will be used up first for
purchase of restricted bonds by
institutional buyers, although some
very satisfactory
switches
/ .cuit of bank eligibles into restricted
bonds, which have improved
^.income, have been and are still being made.
/ A
/
..
V
,
,
.
.
.
Of the above mentioned
50,000 shares, 12,414 shares were purchased
common stock in the exercise bf
/their preemp¬
tive rights,
leaving 37,586 shares available to the several under¬
writers for ' public
offering, all as summarized in the Prospectus:
by holders -of
-
.
.V-
-
.
r/A/
WATCII FOR WEAKNESS
As to the restricted
,
alwas's
on
/
'
.,
issues, the insurance companies
'f^''
'i'~ 1
fC
r ;
'V
7- i
(
' «'•' ''
1946
/
**
.v
*
r
i
■
*
'
-
,
%
and savings
<J:
7.v
.
.
liquidation recently by ultimate
investors, corporations
issues, and this selling will probably be
more pronounced
after May 15, when their
positions in the bonds
purchased in the Victory Drive become six months'
holdings. *"
/t|
j
r~v
'j
>
i*r .r
■?/.
u
lfl,
,
7.^
/J
■
t' -,
'•
7
.
- v
^
•»
;
«
,
.
/
\
-
b,
r
v
.
,
'v
*-
Copies of the Prospectus may be obtained in
any State only from such dealers
partici¬
pating in this issue as may legally offer this stock
Pndef&securitiefl4m:pf such State.
obligations,- since
.
'*V'f
*'v'
very substantial..
7 They
the lookout for buying
opportunities. ;
There has
some
and speculators of restricted
This
could
result
in
some
minor
most recently issued 2Ms and
2Ms.
ing time if
any
price
adjustment
in
a
It should be a good
buy- i
price weakness should develop in these
bonds.
whole it
,
,
/.
i/ip/:///
7
Burr &.
•V*!'-*'v• -h<_•/•._•
\\ •'!•.•
v/'
"•
:
Company, Inc.
v.;.'
>*•• -y
"►
Hirsch & Co.
:
/
as
the
■
..•
•
'*
•'
•
better,.
April 1/1946
'
,
1
.
„
'
-
-.yv-'-i
• •
,
,
*-
if
.v.//.;,/' '*
Dempsey &. Company
.
though the demand factors are
greater
supply factors in the long-term Government .bond
market
and therefore prices for these obligations should
be stable to
seems
////I/ //.■
the
.
As
than
share
per
"
,s'""
.
been
$10
plus accrued dividends from April
,
,
banks will not be interested in
selling any of their
the funds they have for investment are
are
Price
>
.
-
,
'
'
$3,558,336,
compared with $3,715,904 in the
:'///■ //'
' :
subsidiaries for the
.
*
a
Inc.,
ship management companies.
/Consolidated net income of the
today, and the resulting changes
financial policies on the part
There is nothing these institutions can
buy to replace the
lonee**-te«Tn GovemmeFd bonds thev would
sell, and the pressure
to maintain earnings means
very little liquidation of long-term
bank, eligibles by the commercial
higher price* levels.
and
chemi¬
grains and solubles.
company
offer to.buy, or as a solicitation of an offer to
buy, 'any.
of such securities, The offering is made
only by the Prospectus,
■
.
to the bank
eligible bonds of longer maturity it
though the deposit banks will not sell obligations that show
yield of 2.00% or better..
/
There
two
production and dis¬
of
subsidiary,
York
in
.
.
as
vestors.
.com¬
into
lines—production >
distribution
cals
adopt¬
Business of the
toe
principal
Distilling
name was
tillers' dried
corporate ■*
Sortie
been
/;////
/y/'/
This advevtisement is
not, and is under,
securities for sale, or as an
j
,
reference
.them a
/
Co.
and, in ^connection therewith, dis¬
agreements
incident to
of American industry from
war to
peace, and. the conse¬
quences of this readjustment in
the programs of many businesses,1
-proposed changes in relegislation Orrthis subject is
Reserve balances of the member banks will be
reduced toy the
"refunding operation and the action of the; Federal Reserve
Banks,
•which are again in a position to control the
money markets because
?of the debt^retirement
program.. ».
This poses the question will
long-term-rates be affected by changes in the short-term rates?
With
Exchange have
Pennsylvania under the
important "
over
,
.
Tapidity
events
'
-
on
question and answer
/seems
to
f
.
used as in.the past.
.
accrue
»
.
Publicker-Ward
name
of
have
u
*
l
and
pro¬
The company was incorporated
in 1913 in
aware, your
and others listed on the
Stock
No
ceeds from the sale will
the company.
well
numerous
ments.
>
.
are
outstanding
stockholders^
gressive management of publicly
companies, of the principle
of prompt and full disclosure of
-
.
of
are
and
being sold for the -account of
certain
owned
?
.
issued
are
codified by any set of rules, but
represent the application, by pro¬
requirements: before commenting on them,; in¬ action/ was.
prompted by delay
dicate no immediate change in the
Treasury's method of solving the] early that week of the announce¬
'debt problem and, this means low interest rates
and no increase in ment;/by a -corporation that ? it
/the debt burden,. .V,
would omit the dividend on a
/
/.
^
v
^ 'While' short-term rates- will
particular. elkss of its stock, '
rise, there will not be enough
/
change, ;a6 least iii the immediate future, to result in an
In
part Mr. Schram's letter
increase!
V
in the debt cost.
The %% certificate rate will continue to be
said:
j
*
v/7;
*
was priced to the public at
$23 per unit.
The offered shares
security holders and
the. investing / public "
generally
Many of these policies are not
reserve
(
you
interest
Secretary Vinson's reluctance1 to discuss the future level of inIt was stated in the New York
"terest rateaandMs*standsthat he] would rather/see:;the suggested! "Times" of March 22 that the
.
headed by Merrill Lynch,
Pierce, ' Fenner
& : Beane, The
stock
are
of the matters which
of
stock
dicate
this letter in regard to
adopted
;"
,
in
7. '
As
.
,
Stock Exchange,
public; special interest to all listed companies, their security holders and
earliest practicable the New York Stock
Exchange.
.
.changes in
77
"As indicated in the;
agreements; Company
and the accompany¬ New York
ing
explain par¬
we indicate
400,000 shares of
($5 par) of Pub¬
licker Industries, .Inc., was made
April 3 by an underwriting syn¬
~
the Exchange inter¬
rate, .
It would hasten the stiffening of prets : 4to. publish promptly*; as
short-term rates and would be beneficial
mostly to banks in the large meaning an immediate release to
?rnoney centers;
It yrcmld uot have
ah^iasting Effect on long-term the public through the press serv¬
ices by telephone or
'grates. .
•/ \ ^
telegraph.:
Prompt notice to the Exchange is
also required."
/YO -COimNUEPASTTOUCYf
doubt be increased with the elim¬
no
Offering
common
companies with securities
themselves
.
agree¬
Stock Marketed
generally has the right to know
About the only elfect the abolition of this rate
would have would
be On the borrowings of brokers ?a(nd dealers
on Covernment
the
ineligible
its
prompt
am
-7
further above.
listing agreements, and
publication of any action
dividends, the allotment of rights
benefits pertaining to the
ownership
added:
such
length of time....
The rate of these loans would
ination of the preferential
lights
of
ticularly that which
Listing Requirements
President Emil Schram of the New
letter March 21 to the President of all
listed on the Exchange, called attention
to
in particular to one
relating to "prompt
taken by companies with
respect to
.
.7
.
*
the
■
Publicker industries
a
/not important
into
feature
ments but wanted to
Schram Galls Attention of Listed
Companies
'
.
fening of short-term
,
-
out
move
issues^////v;/:/:////:/v/g/^
;
the money markets.
over
.
investors
■/
any
•
bank
V// 77.]////•: •"; /
;■
Mr. Schram stated that he "did
not wish to
overemphasize"
.
..
and the New York Stock Ex¬
ers
.
...
guide
a
organization charged with dayto-day relations with stockhold¬
City banks] move higher. ., 7/7/
/■ i>-;v/7--/7'^;l:/
'/■-;'/■>
all: that; -The extent of the rise in
price and decline in yield, whether
in the week to soften
up a rather thin,-in-;
//it be to a 2.15% basis or 2.09%, is now largely
"active and uncertain market,/..
up to the instituWhy the increase in the acceptance- //itional
buyers of these securities, /.
Tate should have had .a
The Treasury cannot lose
dampening effect on the whole Government!
7/by doing nothing and watching the show since (the
market is not readily
continued deunderstandable.
It only affects the
cline in yields of restricted
shortrj
term part of the
bonds means that new financing
market, and more particularly the large money
when it does come
along will be at a lower rate/which decreases
/centers'/deposit institutions.;/,' By increasing the rate
by V8%, the
the debt burden.'
large commercial banks or others that may follow this
/-,.■;7//;_
•/■ '• .y
policy - on;
hankers' acceptances will be in a
Aside from the demand which exists for the
position to increase their earnings
longest bank eligible
„■
bond, these obligations still continue to be under
Very slightly.
7 /
/'
" 7
•
pressure as non"was
former
which has been prepared to facil¬
itate the work of those in
your
.
/Would increase the acceptance rate from
of
agreements, together with
.
.
return
up-to-date copy of the current'
form of the Exchange's
resulted
in a sensational spurt in the restricted
bonds. .7. The full daily limit
gains of 8/32nds are again in style for:
;
The statement last week by Secretary of the Treasury Vinson- these
obligations, which continue to make new all-time highs. .
that the preferential discount rate should not be abolished .at this- The so-called strike of institutional
buyers has now given away to
time, bolstered a confused and jittery Government securities market.;
the usual scramble to
buy up the available supply before prices
The announcement that one of the
large New York
J';
the
men
and women, I be¬
lieve it would be helpful to listed
companies to have the enclosed
MARKET PERFORMANCE
By JOHN T. CHIPPENDALE, JE^
with
service
•
.
'
t
•
THE
1820
Thursday, April 4, 1946
COMMERCIAL & FINANCIAL CHRONICLE
ry it on to higher levels of pro-*
7.7
'.'7 7:
,7 - •
7;7,,, „ „
: vk7" 7 .' duction.
J:
I am happy to inform you that
When7 we talk about jmoving
ahead to a higher and more perk
the Department of Commerce has
and
government
must
Keep
recently been reorganized by Sec- manent. kind of. prosperity..than
abreast of human progress. 7..7,-y
-retary—Wallace- to 'implement vig¬ we -have ever- had before,vwe~arfe
Government 7 policy
has
far
orously
this£,general program, talking about-a, program in which
reaching effects on our economy
with, spjecial^emphasis on. aid to business must.take the:initiative
—the Homestead
Act following "small business.
I shall speak in and bear certain risks'.Mt is up to
the Civil War and the building of
government to encourage*thafinik
•more, detail about this later. 77-;
the railroads in that era brought
7 As has been shown, by econo¬ tiative and to cushion those risks'.
immeasurable benefits to the de¬
mists in the Department of Com¬ The^ program 7of the Department
velopment of .our country.7 The merce and elsewhere, it is vitally of Commerce is based
upon that
public * road .policy ; -following necessary - in the postwar period
assumption.1. We,want, to make it
World War I made possible, the
icy favorable to business expan¬
Cooperation With Small Business
Goverment
(Continued from page 1787)
start beating the drums for
you
any
not
'7
self interest lies
real
Your
working night and
in
day at making
freer than it is
economy
pur
free and
group, be sure it's
monopoly.
sion.,'
to¬
day,- You, along with other likeminded groups and all units of
and think them un¬
remember that in the
of violent- and. intemperate
them
like
necessary,
face
opposition theyJhave; been
contin¬
the unusual war con¬
ditions that made them'-hecessary
are still present and the Congress
has decided up to now that they
are in the interest of the country.
ued because
Price control will pass along with
should deliberately'j allocations, ; and rationing when
enterprise of the supply and demand again assert great automobile industry and the
many;
v .77
,7 7 7 7*7; 7^ 77k. themselves in a normal fashion.
development 7 of business along
You have an abiding interest in
It is1 probably fair to say that highways—including restaurants.
the policies and actions of your minimum wage laws and partici¬ Future Government policy on air¬
ports and airlines and in fostering
Government.
Even the, most re¬
pation of 7 government in wage
the development and application
actionary conservative agrees that regulation and conditions of work
fiscal/ taxation, tariff-and mone¬ will continue because they : are of new scientific knowledge may
open new horizons for -business.
tary
problems must be-lodged wanted by the people.
This may be particularly true in
with the Government and decided,
7 IFtmdnopply "and undue concen¬ the further development and ap¬
by the elected representatives':ofj
tration, of-economic power did not
plication of atomic, energy; and
the people.
No government can
exist Jn .thi£ country therewould radio-active materials involved
in,
escape its responsibilities in these:
be much less demand and need for
nuclear physics, 1 Because of the
fields.
Up to I860 the main strug¬
regulation of business and labor; untold
business, ;' medical, and
gle in American politics was over
Big business and big labor, .are Other civilian;
possibilities rin the
the distribution of powers in the
probably here to stay and because field of atomic science, the control
American system of government.
of their far reaching effect on the
must rest ;.with a; civilian agency
These years were spent in. consol¬
lives of millions of our citizens
ofI government and not the mili¬
idating the constitutional system;
there is and will continue to be de¬
upon a
broad democratic ; basis. mand for Government interven¬ tary who. in their zeal for secrecy
will stifle further development of
From 1860 to the present the great
tion in their relations.
The freer
both the military and civilian ap¬
debates in American politics have
we keep businesss enterprise and
been concerned less with the form
plications of this new science. No
the greater the competition, the
great scientific advance has ever
of
than
government,
the
encourage
.
.
with
government
the
government, such as
regulation of railroads, corpora¬
functions of
tions, money,™ taxes, wages,
in
short, things that affect the eco¬
nomic welfare of the people. How
freedom —has been
balance
to
How
much
regulation— how
much
and individual
the debate
the question.,
welfare
public
liberty.. Although
still goes on the peo¬
ple have decided that they expect
to protect their economic freedom
their political freedom
through their government.
You should remember that gov¬
ernment is you.
It is a cross-sec¬
tion of society and its composi¬
as
well
as
demandthere will be
Government, regulation, 7 < •
for
less
Government Regulation With
erence
and
Ref¬
regulation
as
have and what may be neces¬
sary
in the future, I
believe, will
planned and administered to
take into account the problems of
small business.
A lot was learned
be
during the war. The Congress, the
Administration,; and both major
political
parties, have declared
for policies that will
the
development " and
ways
the
porary
tried, agency of
whatever its tem¬
best
and
mankind
aberrations may be, and
they are many, there is no reason
to conclude that government can¬
not
be
kept
abreast of the ad¬
vancing waves of human progress
.the aim of government is
American tradition of 150
scientific and military
The bomb is only; a
by-product—the least important
of the scientific possibilities. - To
economic,
discovery,
argue :
.
that
the
military
under the regulation
corporations that have no
responsibility to any one. If there
w;ere no regulation, monopolies or
near monopolies, could decide at
will which businesses should live
and which should die, - Governof great
,
m erit
regulation has two sides—
what
we
reasonable
should
for is a
between the
strive
balance
public good and individual busi¬
ness freedom.
As a citizen of a
You are
should
control atomic science is like say¬
ing they should control steel, oil,
medicine, and food, because these
things are also vital to military
Small business
—
—
the
has a real
an
offer to sell nor a
buy securities. The offering is
50%
We
r
level
solicitation of any offer
made only by the Prospectus.
Minnesota Mining^
we
Stock
7
■if?"®*;
$443/i6
per
Share
Underwriters
as
may
State from such of the '
regularly distribute the Prospectus within such State.
ing
more
goods and selling more
people than ever
7 7 777,,
\ <• r , ; 7,..
before.;
Satisfactory
time, I wish to em-;"
phasize that satisfactory profits
for stable enterprises and higher
rewards
for
venture
capital in
new undertakings are indeed most
and I am sure
people share this belief
there is a very defi¬
nite and very close relationship
between high wages and general
business prosperity.
When wages
ment of Commerce,
with us, that
essential.'
which,
as you
•"
7
£ -7
7
-
7 All of which is
drop, purchasing power declines,
business falls off and depression
sets in,
Profits Essential 7.7
77 At the same
the Depart¬
that you
v •*
simply another
of saying that the salvation
of American industry—and of the
way
know, works
American
economy and our free
enterprise system itself—lies in a
process which is perfectly famil¬
particular hardship on the small
businessman.
7
a
>
have
iar
to
of
all
you:
improvement,
and pros¬
to spend
money
people
the
when
Conversely,
it is
the
who
and
last
the
is
to
•
recover
7
.
;7r 7r •
Piper, Jaffray & Hop wood
been
,7
greater
else in
equality
world,
this
opportunity
of
pronounced.
so
It is true
>
•
,
that during the war
the lot of many small businessmen
Inflationary Boom Can Be
.
the
has
pinch first and hardest
from its effects.
nowhere
that
who
the small businessman
feels
not
was
777777; Avoided
nesses
a
happy
Many busi¬
one.
closed their doors, and
the
inflationary reasons are riot hard to find. For \
boom can be, and must be, avoid¬ one thing, 'many a small business-».
ed if our system of free enter* man-was called^t.QJpar,
He had)
prise, ; of opportunity for small no choice but to board up his busi-:
business, is to survive and flour¬ ness.andtalCe up the fight. Many*
ish.
The path that, we must fol¬ a small businessman closed up his 7
low in achieving this aim of an shpp to take, more profitable work;
expanded economy, withouts- an in a war plant. And others drop-?
inflationary boom, is not easy. To ped but of the race because ther
begin with, we may as well agree exigencies of the-. war - imposed
that the Government can't get it more restrictions than they could ?
We believe that an
We can't spend our way
us.
business conditions just
by dipping freely into the Federal
treasury.
We can't legislate full
employment and full production
into existence.
7^
At the very most, government
can do no more than make it pos¬
to op¬
What gov¬
field can be
extremely important, and I doubt
that we can get a sustained level
of
prosperity
unless
govern¬
at
erate
full
speed.
ernment does in that
does its
analysis
and
wisely
in the last
of a free competitive
has to be what its name
that de¬
dynamic power on
of market forces to
economy
the free play
.effect
part
But
efficiently.
pends for its
the best
utilization of the
!t. must be an
nation's,resources.
that is determined to
the utmost, and it must find Within
economy
many
buy the products offered for sale.
„.
.
It is our belief in
economy
April 2,1946.
on
of them to mote
implies—an
Goldman, Sachs & Co.
con-;
that price
means
,
ment
A copy of the Prospectus may be obtained within any
This
trols must be maintained
employment,; of profits.
The lines of goods where severe short¬
question is,- how. are we going to ages now exist, and we must ad¬
get it? Obviously, the answer isn't here to these price controls until
the simple one of raising wages, production and demand are more
then raising costs, 7then raising nearly in balance. 7 ,' 7 7:77 ;
:-7|7.7j;
In order that the nation's pur¬
prices, and going on into a vicious
spiral of inflation.7; What we do chasing power will. not decline
not need is a genuine increase in wages must be. kept at a high lev¬
mass purchasing power.
W.e are el. This nation's^ production ma-7
chine is geared to a high level of
up against nothing less than the
necessity for raising the American consumer purchases and the ma¬
standard of living well above pre¬ chine cannot long function if the
war levels—and that means mak¬
nation's workers cannot afford to
sible for our free economy
Price
kind
several
are
trol.
into good
777777;777:77;;7'.777;777;
more
a
inflation must be kept under con¬
high
of investment, of production,
sustained
a
do'.7
can
of
prosperity
sign-posts that
must heed." In the first place,
there
7•'want
follow the road to
permanent
jobs than it did before
.
all
we
of
for
72,000 Shares Common
If
•
a
more
the war.
Commerce
of the Department
exists, you can
government that are a
of Commerce to provide all pos¬
hangover from wartime controls. help determine what that reason¬
What the sible services that business can't
Price and wage regulations and able balance shall be.
some
allocations
and rationing proper balance is will vary from provide for itself, to speak for
business in Government, and to
remain. Even though these con¬ decade to decade—the only thing
trols are irksome and you may not certain is change.
Small business work for a climate of public pol¬
to
things which only business
period of stable, full
employment—and that means that
business must be able to provide
will have
It is the job
cratic government
T/iis announcement is neither
possible for-business to do those
.
country where responsible demo¬
lations of
prosperity be sus¬
,
high level so that we
a
Technological
productiv¬
ity, expanded production, expandk
stake in-this new science and you pects of steady employment, the
ed consumption and higher profits
nation's
economy
expands, and
should insist that Congress pro¬
this means increased profits not based on high volume rather than
vide for complete civilian control
high prices." * • - • -[
that will encourage the
fullest only for big business, but for lit¬
It has long been, an akiom
tle business as well.
When our
realization of all its possibilities.;
American business that the geni¬
economy expands; the opportuni¬
I would like now to turn from
us
of mass production must be 7
ties of small business multiply.
this general discussion of your re¬
to the widest possible
We must be careful here to dis¬ coupled
lation to: consumers; and
your
tinguish between an expanding distribution through lower prices^
Government, in order to outline
and
mass
markets. v It is * only
economy and a short-lived "busi¬
to you our general views on what ness boom." And this is where the through; adherence to this essen¬
we think is the task ahead.
I will
tial" American
belief
that sus¬
question of relation of wages,
also give you; the plans the de¬
prices and profits comes in.
A tained prosperity can be attained.
America has always been for
partment is making to play its business boom, built upon infla¬
its people a land of new frontiers.part with business in this task.
tion, is like a house built upon the
sand.
It cannot last.
It soon col¬ The very greatness of our democ-M
The Job of Department of
lapses. And when it does collapse racy lies in the incontestible fact
restaurant business
would, have
tained at
It is against
to turn over to the military
the control of such an important
foster
freedom and
order."
bothered most by regu¬
likely.
operations.
growth of small business.
Small
likely to be business has a better chance to
and prosper under some
that of the social force and atti¬ grow
tudes
from
which: it
comes. regulation by a government re¬
Charles E. Merriam, the distin¬ sponsible to the people than it
guished University of Chicago po¬
scientist, says, "Govern¬
ment is the oldest and in some
every
is
themselves
tion and conduct are
litical
none
military control
years
to Small Business
Such Government
we
,
been made under
business
that
.
.
itself the
•
leadership that will car1
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stand.
7
Business* failures
-
not only a
are
personal misfortune, but
one
a
as
well.
whole
loss of
tal
each
a
and
the
For
failure
a
public
nation
means
as
the
certain amount of capi-i
credit;
it
means
a
lower
standard of
living for one or more
people 7 through
unemployment;'
and
to other businessmen with,
whom
it
the
means
failing
company
the loss of
a
dealt
customer for
{
goods,
materials, products and
services.
A continued high rate';
of
mortality
small
among
nesses
could rob
nomic
svstem
our
busi¬
whole eco-v;
vitality and
ultimately of its freedom.
Early in
of
ihe
its
war
the Govern¬
ment recognized the truth of this
fVriprpcs; set up
Business
Committee
in
a'Small
the
both
Senate and the House and legis¬
lation
Smaller
was
War
passed
Plants
creating
a
Corporation
to aid small concerns in
war
procuring^
contracts and obtaining mate-
7:,{.:'7;:7,-;7;:;
.
.
Volume
rails
163
and
Numbet 4478
-
facilities
THE
for
necessary
are-
fulfilling these contracts.
Now that the
war
encouragement
is
until
over
every
must be
possible
the
given to small businessmen, to re¬
tailers, distributors, factories, and
business
population,
while
completely
approved
Congress.
partment
financed by
and
I
others
available
happy to say
am
sympathetic hearing
and we hope for the
approval of
most of this business service
pro¬
gram.
It is a program developed
operators of services. These small
our
be
that Congress has given your De¬
businessmen, who represent 93%
of
available
now,
cannot
COMMERCIALS FINANCIAL CHRONICLE
sell
a
30% of all the goods and materials
produce, service about 90% of
ness.
we
nation
in
countless
ways, and support
different
'
The
big business by
(Continued from page 1788)
buying its
raw materials and finproducts for manufacture,
distribution and sale—these small
businessman
This
is
the
businessmen have as in the
past,
been left too much to shift for
not prosper unless
,''
Program
for
It is
belief
the
these
&
fornia
of
Business
the
ment of Commerce that
realistic
and
as
offer of securities for sale
submitted
income and
reports
nomic
conditions,
iness
every
sample
monthly report
on
successful
such items
display,
as
cost of
pricing,
finance and
how for
tax
with
and
an
we
\
the 4.15% stock
j4
>.♦<
•-V".-Vc
■.
exchanged and of the 3.70% stock
so
to the balance.
as
;
~
-
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$103
"r
*
*
*'
share
per
"
**
f-
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*
,v
*
-,%
i
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Copies of the prospectus may be obtainedfrom such of the undersigned {who are
among
the underwriters
of the 3.70% Cumulative Preferred Stock named in the pros*
pectus) as may legally offer these securities under applicable securities laws.
f ,4
goals
c4^
"i
goals,
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Dillon, Read & Co. Inc.
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E. H. Rollins & Sons
r>
practices,
problems, know-
*
plus accrued dividends from February 1,1946 to date of delivery
'
on common
shares
to
«s
Price for 3.70% Cumulative Preferred Stock
can
Let; us all seek such 'underunderstanding-and reach agree¬
ment
Share
') stock, share for
^
for America.
covering
Par Value $100 jier
.
much desire if "
understanding of
.
,
high!
on
the other and only if all
distribution,
v
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Blyth
.Incorporated
f'
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'A
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Co., Inc.
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HarrimanRipley & Co.
John Off Rejoins
Security Adjustment
association
Kidder, Peabody
Incorporated
•
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Co.
Stone & Webster Securities Corporation
*
&
Smith, Barney & Co.
1
Union Securities Corporation
on
"Establishing and Operating a
BROOKLYN, N. Y.—Security
Restaurant;' is an example), mar¬ Adjustment Corp., 16 Court
Street;
keting, production, methods of announces that John Ott,
having
selling; training personnel, loca¬ returned ftorn service with the
tion.
3. Technical assistance that
will
enable the. small businessman to
keep abreast of new scientific de¬
velopments in his field. This serv¬
ice should be
comparable to that
now
made available to farmers
the Department of Agriculture.
by
.
•
4;
Every 'assistance possible
credit and tax problems.
the
Department
of
in
Although
Commerce
does
not control Federal credit
and tax
matters, it proposes to use
Its influence to
encourage the fur¬
nishing of adequate and reason¬
able credit to small
business and
•
The Milwaukee Company
forces in the Pacific, has
rejoined their firm and has been
■
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'
''
Hugh & Schoile Rejoin
Warner Organization
Clinton
J.
■This advertisement appears
as amatter of record only andis under nocircumstancestobe construed as art
off'ering
of these Shares for. sdlefor asan offer iobuy^or as a solicitation of an offer to buy;
any of such Shares; The
offering is made only by the Prospectus. This advertisement is published on behalf of
only such of
: ; ' the
undersigned\ as are registered or licensed dealers or brokers in this State.
w
*
Hugh
and Jacques
Schoile have returned from serv¬
ice in the Army and
rejoined J.
Arthur Warrier & Co., 120 Broad¬
New Issue
New York City, in the firm's
institutional service department.
way,
.
I
Corwin
.'■Corwin-A.
>
Fergus Dies
Fergus, Vice-Presi¬
dent
and
'
.
'
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V
150,000 Shares
,
expansion of small business.
In this
connection, the Small Bus¬
iness
Advisory Committee and the
Secretary have made recommen¬
dations
tion.
on
both
credit
and
taxa¬
eg}
5. An adequate field
service to
furnish the small
businessman'-all
these services at
! cation in his
tie to his
will
own
permit.
a
convenient lo-
own state as access!-,
community
Through
as
funds
field staff the
services of the
Department
will be as accessible
to the small towns and
cross-roads
store
as
I cities
6.
they
now
are
to
the big
and the great
An
corporations.
Office of Small Business
Iin Washington to organize
and di¬
rect all services to small
business
utilizing all the facilities available
in
the
eral
Institutional
Department and the Fed¬
Government generally.
Some of these business services
1
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Lion Gil Company
Securities
Corp. of New York, and former
Common Stock
Without Par Value
1
go.■;Born, in / Columbus, ■ Ohm,
he was a graduate of Ohio State
University and a former President
a
of
the
Board.
I
as
of
a
Columbus * Real
Estate
He served in World War
Lieutenant With two years
active
duty overseas.
He re¬
sided at Fleetwood Acres, Bronx-
\\
^
ville, N. Y.
'
'
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f
M
t!
X.
as are
registered
or
^
fw
Copiesof the Prospectus
letters,
I telephone, and
personal visits by
lour
of
V
,
■■■
Deputy Manager of the Federal
Savings & Loan Insurance Corp.,
died suddenly in Philadelphia on
March 31. '• He was 52 years of
growth
Edward D. Jones & Co.
-
the adoption of a
Federal tax pol¬
icy that will encourage the
:
Rauscher, Pierce & Co. Inc.
appointed Public Relations Man¬
ager for the purpose of expand¬
ing the services to its clientele.
buying procedures, capital
requirements and sources, gener¬
al business policy and
adminis¬
,
G. H.Walker & Co.
WPP
armed
tration, and full and complete for¬
eign trade information, /
White,Weld & Co.
may
^
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^
be obtained only front such of the undersigned
licensed dealers
J. O. Winston Partner
or
brokers in securities in this Statet
»
.
In Rowles Co. of Houston
HOUSTON, TEX.—J. O. Win¬
ston, Jr., is a limited partner in
Rowles & Co., Bankers Mortgage
Building.
merly
prior
a
Mr. Winston
Major in the Air Corps;
thereto he
was
Vice-Presi¬
dent of the Navarro Oil Co.
mation of Rowles
sell R. Rowles
ported
for¬
was
in
the
was
&
Co.
by Rus¬
"Financial
.
Higginson Corporation
Glore, Forgan & Co.
Lehman Brothers
r'
Hornblower & Weeks
Carl M. Loeb, Rhoades & Co.
For¬
previously
icle" of March 24th.
Blyth & Co., Inc.
Lee
re¬
Chron¬
Merrill Lynch,
April 4, 1946.
•
Pierce, Fenner & Beane
-
v.
;
'
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Goldman, &
Sachs & Co.
'
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.
in starting a
your
.
our
national
life
can
be
achieved only if each understands
specific type of business (our bul¬
letin for veterans prepared in co¬
operation
v
the
trade
newcomers
April 4, 1946
.
outstanding shares of 4%% preferred stock of the Company are being
afforded by it the opportunity (subject to certain limitations and
conditions) of exchanging such
share, for new 4.15% Cumulative Preferred Stock. The 65,000 shares consist of
'
of
sales.
businesses
,
time unity like the wartime
unity
between these principal segments
2. The most up-to-date
manage¬
ment aids based on the
experience
of
by investors.
♦Holders of the 50,000
unity between busi¬
labor, agriculture, the con¬
ness,
of bus¬
census,
be
4.15% Cumulative Preferred Stock
sumer, and Government. A peace¬
annual
years,
so
restore
reports,
a census
five
business
all
we
state and regional eco¬
on
than
.
product
outlook
urge
nation's prosperity/
We can achieve this
prosperity
others, such subjects
business
to
offer to buy securities.
an
3.70% Cumulative Preferred Stock
This is. the key not
only
own success, but to our
to your
v.1. General business information
based on Census and Office of
Business Economics data cover¬
National
cannot
us
rather
prices.
business, particularly small
business, the following services;
as:
I
of
volume
all
studies,
that
tp a sustained high
prosperity, namely, in¬
creased
.productivity,
improved
products, expanded consumption
and higher profits based on
high;
as effectively as
possible.
'
/In general, the plans submitted
to Congress, calls for
furnishing
among
lead
level
and
ing,
closely tied up with
nation, of our people
so
our
whole,
a
will
very definite
recommendations outlining a plan
designed to serve business as fully
to
consideration
solicitation of
or a
announced,
seem
Southwestern Public Service Company
you too strongly that his
only salvation—indeed, the salva¬
tion of our economic system as we
know it—is dependent upon our
adherence to these principles that
Advisory:» Committee,
has
Edison, and General Tele¬
are
stocks
65,000 Shares*
upon
and; careful study and with the
help of the department's Small
Secretary Wallace
;to Congress some
is
nessman
that of
and
should be done for the small busi¬
nessman, v After
making a long
Business
reductions
Cali¬
there is maxi¬
,
The welfare of the small busi¬
Depart¬
can
Southern
,
mum
production and maximum
employment in our land.
j
something
concrete '
Electric,
com¬
and might be
as further rate
prosper
I;
Small
The list may not be
Gas
for long unless he prospers> and the converse is also true,
that the small businessman can¬
themselves.
phone.
plete, of course,
subject to change
;
an
States
New Issues
very bone and. sinew of our eco¬
nomic system.
Our nation cannot
ished
is not
announcement
ent
Mountain
Gas &
Electric,
Public Service of Indiana, Public
Service of New Jersey, San Diego
Community Public Service,
Florida Power, Idaho Power, In¬
dianapolis Power & Light, Mis¬
'
small
souri
Utilities,
Power,' Pacific
Utility Securities
Gas,
for business, with the aid of busi¬
ness, for the fullest use of busi¬
the
Public
Paine, Webber, Jackson & Curtis
but
worth
COMMERCIAL & FINANCIAL CHRONICLE
THE
1822
to
amounted
Co. Preferred and
Common Stock Issue in First Public Offering
Alexander Smith & Sons Carpet
and net
was
priced at $103 per
share.
which was incor¬
porated in New York in ,1873,
traces its history back more than
100 years to a business founded in
1845 by Alexander Smith in West
Farms, N. Y.
Proceeds of the
present financing will be added to
company's
in part for
A group of
of
both
lished products.
The
-
company's
estab¬ par)
and
new
on
of
located
one
Corp. Each
in Yonkers, N. Y., is the largest
amount of
common
Britain the
U. S. figures.
.
figures used as signi¬
fying
British
investments
are,
generally, those securities listed
the
on
London
Stock
Exchange,
supplemented by other
informa-
tion.
.
the debenture from Dec.
31, 1945,
to the date of delivery.
that
defaulted
bonds
dollar
Mexican
/
On the other
in
included
not
were
the*
3-'
;
hand, total British'
investments decreased in 1944, but
too much
emphasis should not be:
this as a trend.
For
Bolivia was not included in 1940,
placed
on
Bolivian
tin
which
and
I.—Total
British
Latin
in
and
S.
U.
American
Investments
Countries
//#////
.($000,000)'
price of $1,056
unit plus accrued interest on
per
and
a
A large amount of
the fact
for-1940.)
governments or their cor^
porations ; through dollar bonds
issued in the U/ S
For - Great
$1,000 and 30 shares of
stock, at
figures
British
while
1940-1941,
are
this difference is due to
unit consists
debenture in the principal
single unit in the country engaged
ex¬
of Standard
stock
(Continued from page 1786)
money hopefully placed in Latin
American companies and lent to
their
underwriters headed
common
Factors
■.//■/
.
plant,
modernizing the in production of wool floor cover¬
company's manufacturing, facili¬ ings... Sales of the; company were
ties and those of Sloane-Blabon $30,617,431 in 1945 and net profit
panding
on Jarket
program
output
additional work¬
capital and
y
is expected to re¬ April 1 offered on a unit basis a
new issue; of $750,006 4%%
15-*
duce manufacturing costs, provide
convertible
subordinated
for new developments in produc¬ year
debentures and 22,500 shares ($1
tion methods and to increase the
This
be
to
resources
used in part for
ing
U. S. and British Investment
subsidiary. by Sills, Minton & Co., Inc.;
principal
its
Corp.;
The company,
the
Opportunities in Latin America for
profits of $352,455.
Issues
stock. The preferred stock
share and accrued dividends and the common
stock at $31 per
■
re¬
Standard Factors!
shares of new common
156,312V2
Sloane-
products,
public distribution of the
first
Smith & Sons Carpet Co., an
and
felt-base
and
ported sales of $8,190,736 for 1945
securities of Alexander
underwriting group headed by Morgan
Stanley & Co. and Dominick & Dominick on April 3 offered 50,000
shares of the company's 3%% cumulative preferred stock ($100 par)
the
In
$1,454,953.
Blabon, which manufactures lino-*
leum
Thursday, April 4, 1946
1940-1941:
1940
1944
570
1,684
1,501
468
& 1,029
925
593
w
332
202
Argentina
Bolivia
J,
Chile
,
Colombia
235
Rica—w—
Costa
23
31
Dominican
130
Rep._
15
18
111
'57
71
V
49
Salvador——
43
Ecuador
El
31
15
617
Cuba
THE :\M YORK, M iMM ID 1URTF0M
18
80
Brazil
5
Guatemala
-t—;
Haiti
;
•
6
43
'•38
T
358
695
556
9
2
WtM
13
11
—
Mexico
was
money
in 1944, when the British
in Bolivia is shown at
$18,000,000. Furthermore, the re¬
duction of complex financial and
industrial activities to /dollar; and;
pound figures can not always be
within specific national
confined
this
For
boundaries.
reason,
:~ii doubtless, figures for both coun-
v;, is
Honduras
the highest yield to British'
ap-'
investors. This important item
pears
British
U.S.
it
gave
..4
amounts
triesinclude undistributed
called
/'South;America ;and CeiVv
America," and "Banks and
Shipping." With all these and
other possible qualifications, the
tral
,
Nicaragua
Panama
49
V-
—
S
Paraguay
Peru
j...-;
136
Uruguay
Howard S. Palmer, James Lee Loomis, Henry B. Sawyer, Trustees
,
_
i
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.
"'
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116
v.
158
44.
Venezuela
262
has received at least $8 billions of
178
118
v
'
U.; S. and British money;
74
Total
tOther
Treasury Department
3,653
March 29,1946
4,347
66
64
39
4.411
3.850
— .
Total
New Haven, Connecticut
3,719.
—
3,811
^Including British Honduras.
tFor the U. S. this figure is called
simply "South America and Central Amer¬
.
ica."
the
In
British
figures
is
it
called
"Banks
are
NOTICE TO HOLDERS OF CERTAIN BONDS AND
DEBENTURES OF THE
and Shipping."
In no instances
these figures distributed by countries.
Pursuant to
No. 867,
authority of the United States District Court for the District of Connecticut under Court Order
anid subject to the terms, conditions and reservations contained in that Order, funds will he available
and after
on
the payment
April 10,1946, at IRVING TRUST COMPANY, ONE WALL STREET, NEW YORK CITY, for
Dates of Coupons
To Be Paid
Amount
1,1943
per
4s
5/1/56
May
1,1943 and Nov. 1,1943
4s
7/1/55
July
1,1943 and Jan.
1,1944
40.00
a
3y28 1/1/56#
July
1,1943 and Jan.
1,1944
country.
/If'
(U.
S.
ii.— British
figures
1/15/48
July 15,1943 and Jan. 15,1944
3/1/47
Sept. 1,1943 and Mar.
capital expEmsion Jand.
appraising present holdings/
By arranging the Latin American
for
for
are
table to
a
amounts^
limiting then
the largest five countries,'
and
xnadej
comparison can easily, be
favorite fields
of the
of invest-/
ment.
Latin American Conntrles
($000,000)
''
60.00
4s
for venture
40.00
.//;.i/'■ v
1940
/;VilJ/;"
:
19 4 4
Country; British—
Cuba
a
1,1944
Sept. 1,1943 and Mar. " 1,1944
31/283/1/47
617
Country; BritishArgentina
Chile
593
Brazil
Argentina
570
Mexico
695
Mexico
468
Chile
332
Chile
202
358
Uruguay
158
Uruguay
178
Country! «U. S.¬
35.00
Brazil
;
Mexico
Consolidated
Ry.
4s
1,1943 and Jan.
July
7/1/54#
4s
"
1/1/55#
1,1943 and Jan.
July
*
1,1944
Totals
40.00
a
4s
1/1/56#
July
1,1943 and Jan.
1,1944
4s
4/1/55#
Oct.
1,1943 and Apr.
1,1944
40.00
N.y.,N.II.&H.R.R. 31/2S 4/1/54#
Oct.
1,1943 and Apr.
1,1944
35.00
Table I
,
5%
on
'
.
*
* "
*
>
^
r
'
♦N.Y., N.H. & II.R.R. 6s
'Mt,>
s
'
4/1/40
1
^
hr
irt*
jf
j
}
r
*I
}V
'•(
1
'
<
«.
Interest from March 1,1945 to April 1,1946
amounting to..L.••«••«**•••«««**•• .,$57.43'
and
'V
a
,
PAYMENT ON PRINCIPAL OF
rt
,
-
'
Y
v
\
32.50
v 4'
/
1
*
''
V
-
♦Bonds both
ONE
registered and hearer form must be presented to IRVING TRUST COMPANY,
WALL STREET, NEW YORK CITY, for stamping of payments when collected.
#Company
assumes
Z>:
I
!
2% Federal Income tax. When presenting coupons only one ownership
or 1001 is required to cover the entire payment.
E. L. BARTHOLOMEW,
'
Treasurer?
in
lar
countries:
five
Cuba,
bonds, and take no account
agreement providing for
payments to U. S. bondhold¬
t lf the Mexican
dollar bonds
Mexico would
have been higher on the list; but
nevertheless, it still ranked with¬
in the first five.
Great Britain's
favorites
accounted for
in
Latin
an even
America
larger pro¬
investing
countries,
as
is
have a
British funds
nearly $3,900,000,000 in 1940
$3,400,000,000 in 1944.
are
MASSACHUSETTS.
RHODE
ISLAND
INDUSTRIAL
AND
and
STATES
CONNECTICUT
OF
the same for/British and
Mexico; Chile;
Argentina, and Brazil—these are
the four countries where invests
ments are concentrated;
here is
the
area
of identity of interest.
Between
Differences
U.
.
// /
and
S.
Investments
■/; British
,
w
noting these similarities*
the evidence then brings out the
differences
between
U./S; and
British investments. For Cuba, in
After
the
is the fifth main
Caribbean,
those
not; appear
a
the British main
on
nearer
vari¬
Mexico-Caribbean-Cen-1.
(to us) region called
ously the
tral
America
generally,
Ca¬
(in spite of the Pa¬
area,
or
described more briefly as the
ribbean area
who
brings out another fact which in¬
dicates clearly the size of British
investments, and the similarity of
U. S. and British interests in Latin
It' itf
difference.
significant
highlighted by our tendency, inspeaking of that large slice of the,
world known as Latin America, ta
divide it into two areas: first, the
,
lightly dismiss
the influence-of Great Britain in
international
trade
this / table
To
GREAT
are
for U. S, money.
lists; whereas Uruguay, in South
America, was the British fifth fa¬
vorite, and comes far down on the
list of U. S. investments.
This is
larger than those of the U. S. for
these five countries, amounting to
THE
tries
order, accounted for 88%.in 1940
and 87% in 1944 for the total Brit¬
ish investments in Latin America.
Consequently
AND
in the same countries;
Four out of the five main coun¬
chiefly
country for U. S. money, and does
high degree of concentration for
their
funds,
although
British
funds are more concentrated than
are
those
from
this
country.
YORK
For Table II sTiows that
America.
portion: Argentina, Brazil/Mex¬
ico, Chile, and Uruguay, in that
shown in the table above,
NEW
87%'
U. S. and British investments He
had been included,
Both
SERVING
3,850
figures are for 1940-41.
the
five
556
-
/S; /;■/::/.■?;-////:
cash
ers.
925;
U
3^362,
70%
Chile,
Argentina,
Brazil,
and
Mexico, in that order.
As men¬
tioned previously, the U. S. fig¬
ures^ do not include Mexican dol¬
of
certificate Form 1000
.
funds
; l,50i
—w-
Brazil
4,411
-
As shown in Table II, the U. S.
invested over $2^ billions,
or 70% of its total Latin American
t
'«
*•
—
had
fully registered bonds will he mailed to holders of record March 29,1946*
*
1,029
3,898
3.719
totals
#U. S.
COUPONS MUST BE COLLECTED THROUGH REGULAR BANKING CHANNELS. Checks for payments;
of interest
to
Argentina
1,684
2,606
Totals per
40.00
tt
'
—i
40.00
1,1944
^
the future areas,
give guides to
U. 6. Investments In Five
and
--
6s
large
It is
larger than those from this
35.00
a
Guides to the Future
placed, there,
country's
America.
the
The answers to these questions
countries by the size of
of that
stake/ in Latin
were
40.00
a
for
account
an examination of these
latest figures gives an up-to-date
obvious that; British investments
$45.00
ti
and are
the British figures are available
for 1944 as well as for previous
countries
which
highest
percentage
of
British;
capital?' Which fields offer, the
largest returns?
picture
$1,000 Bond
June 1,1943 and Dec.
roughly comparable,
minimum estimates. Since
years,
<r.,/
of interest for the periods and upon the Issues shown below:
•N.Y.»N.H.&H.R.R. 4%s 1st & Reft 12/1/67
proportions of U. S. capital? And
ments
are
greatest
tries have; absorbed the
As shown in Table I, the invest¬
of the U. S. and Great
;
Britain
!
'/
investors, important ques-:
tions are* which individual coun-/
To
- .<
!N.Y.,N.H.&II.R.R.Co<
America
that Latin
remains
fact
cific
coast-line
countries
which
several
possess) ; and second, the
remaining
10
countries
which
comprise South America.
Due to the great interest evi¬
denced by the
U. S. in the affairs
many
of the Caribbean area over
Volume
■* *
<r
163
Number 4473
*'■
•
••
4
the commercial & financial
chronicle
,
.
years,
would
one
expect to find
that its -investments are concen¬
trated
more
South
bean
in that
America.
have
countries
materials; and the
laneous group), yielded a much
'
is higher return.
;
true, for these countries de¬
The Impact on Individual
pend on 'us to import - from them y
Countries
their main products.
V- :;
4
reverse
fre¬
affairs;
different
•
coun¬
tries of the region have been
merits
main
S. forces.: On the
economic side we depend on this
in.—Distribution
of
u.
divided into these two
are
oc¬
cupied by XT.
'
U. ''Sr and British total invest-
S.
of
areas
Table III.
Latin
in
'
and British-Investments
1
America
by Areas
V.
($000,000)
■;
■'
:0:W'y.
•^-♦United States-Amount
....
Mexico-Central
'
'
—British
Amount
%
American-Caribbean •»1,255
South
-British-
Only-
Amount
America
"
34
897
66
2,398
.3,450
■V-740
f
3,071
•
*
tTotal
3,653
♦United States figures
.t"Other" not included;
100
for
are
4,347
.
totals
•
100
"0:
are
Actually, as shown in the table
above,: the; U.. S. had invested
" 3,811
100
.
.
1940-1941.
therefore
totals
rect
investments
in
countries
only.
(that
is, = funds
corporations
foreign
34% of its funds in the Caribbean
or
whereas only 21% of Brit¬
ish funds in 1940 Were located
there. In 1944 British money had
U. S. citizens) the return in 1940
entities controlled
owned by
or
very high—it was estimated
be 17.1 %But. the return on the
was
to
decreased, proportionately, to ,19%
in the Caribbean, leaving 81% for
holdings which totaled
$54,000,000 of dollar bonds in 1941
South America.
was
is
South
sis
1940
to
bear
American
Great
Britain
there
noting
in
bonds
that
were: more
fortunate, re?
countries ceiving %% iri-1940, ♦which in¬
six
were
ments was greater in amount than
U; S. investments, and live
the/se -countries were, in South
were
creased to 3.4% in 1944; But Brit¬
ish investors in industrial securi¬
ties
received-only 1 Yz % in 1940,
arid only 1.9 % in 1944. i For-Great
Britain: the categories ?of^ direct
iAmerica-^Argentina, Brazil, Ec¬
uador," Paraguay and Uruguay.
and government
Moreover,
securities
in
were
of
interests
by
nil, for all these issues
then ip total.default.
British in¬
vestors in Peruvian Government
on. the
jjshere the size of British invest¬
ci
portfolio
Further empha¬
brought
spite
listed
bonds
are
.those
the .-.London
of the fact
British invest-i Stock Exchange, which have re¬
ments declined from the 1940 to¬
cently been amplified to include
that in
1944
*
on-
total
tal, investments increased in Ur-
bguay^
ahd ■ Colombia- (both " in
South America), and' in El Salvador (in Central America,1 but
with a? coastline limited to the
Pacific).
British
investments
America,
in :. Latin
further factor, Inher¬
ent in the figures
presented, is of
great importance: what of the im¬
pact of the combined U. S. and
a.
also
the
Morgan Stanley and
Associates Purchase
Thus the U.
S. holder of Latin American secu¬
rities
faces
the
picture
same
the British investor.
Gt. Northern Ry.
as
^
Together they have sought out¬
lets for their surpluses,
they have
had
similar "opportunities
and
equal results.
•, *;
-v/'V:*
on individual
Latin American countries: An in¬
vestments
*
*
■'
in
that
true
This
Some
facts
Conclusions
choose
as /
to
:
•
consider these
for
reason
predicting
great
competition
between
the
U. S. and Britain in the
years im¬
Equally important for Nicaraguan
is
the
comparatively
small amount of $11,000,000 in¬
vested there in. 1940 by U. S. plus
British money.
The significance
to each country of previous in¬
economy
.
2.31%
vestments there should not be ob¬
of
awareness
from
beneficial
projects
investments
the
larger.
are
considering future capital,
ventures
in
Peru,
panic
it is; therefor of paramount
significance, ihat already $254,-
and interest.
•-
r.
for
a
Admits A. E. Stein
ST.
v
LOUIS,
MO. — Scherck,
Co., Landreth Building,
Richter
splendid
has
many similari¬
between U. S.
countries
fields
as
venture
capital.
admitted
A.
Ernest
Stein to
for
Here
Henry Vance Director
can
build industry and
bring excellent results to cour¬
Of Boston Fund
ageous investors.
Latin America will pay dividends!
coiiritries,'respectively. : # :
This warning to mote previous
investments is but another way of
and British investors which
>
funds
.those
pointing out- the
<
Scherck, Richfer Go.
The fact that it is avail-
large
000,000 andv$ll,000,000 of U. S.
plus British money is located in
ties vof: interests
a
railroad is¬
a
in Nicara¬ fable; proves: the worth of His- i partnership in the firm.
or
gua,
information
issuer
but
foundation
future.
the
Henry
elected
T.
has
Vance
with
been
Fund,
director of Boston
a
open-end '' investment
Spencer, Swain
Incorporates
have
assets
$23,000,000,
of
it
is
company
approximately
announced by
the? fund.
He
is
a
partner of
MASS. —' Spencer,
Vance,- Sanders & Co., under¬
Co,, 10 Post Office
der: to conserve-paperf and- therel and U. S. funds are alike; the four
Square, is now doing business as writer for shares of a group of
for
did not
include
securities principal countries where their a
corporation with Earle F. Spen¬ investment funds, including Bos¬
The Returns Received
whichfwere; for instance;irifre? funds are
President
and
Treasurer. ton
chiefly concentrated are cer,
Fund, with total assets of
,r The ' questions
of what v divi¬ quently traded, these British- esti¬
the same; and the proportionate Caroline M. Murray is Secretary,
more
than $250,000,000; and is
dends. have been received," and mates must ^considered as Ult¬
and Helena I. O'Toole and Cath¬
how r e t u r n s on investments ima,
distribution into direct invest¬
In¬
erine h: Baker, Assistant Treas¬ President of. Massachusetts
have held up, can be answered
By dividing the previous total ments as against government or urers,
vestors Second Fund.
only by breaking these figures, investments into these two
catef
lished lists many securities in
or¬
already.4 been
areas:
of
shown;
investment
;
the
for
large
British
BOSTON,
Swain
&
*
-
-
,
.
„
into two categories of which
they
are composed: direct
investments,
and : portfolio ? or
government
bonds. For ;th^<retdhis from these
two
classifications
In Peru, for
ences
were
widely,
vary
instance, the differ¬
glaring;
U. S. di¬
on
gories of direct investments, and
Government
or
foreign dollar
bonds, the result shows clearly
<r.
„y
i
*,
>
-
t
■
'
,<
y
1
Thisvadveitisement is neither
that
the preponderance ♦ of funds
from both countries was placed in
direct investments, as seen iii Ta¬
"«'*
4
-
_.
offer to sell
an
securities. The
r
f
-,
nor a
♦-*' J
•;
solicitation of
an
*,yi>
offer to buy any
,
"
.V '
"
..
o
.
of these
offering is made only by Prospectus.
:
; -
ble IV.
j
IV.-—Direct and Portfolio Holdings
NEW ISSUE
.
($000,000)
$750,000
United States—1940-1941
% of
Amount
.Direct:ff
1.~ Public
-if .f;
raiis___wl__
15
14
4.
Agriculture
5.
Manufacturing.
Other
;____
10
0.
6
.
Total
4?A% Fifteen Year Convertible
4
Direct
Subordinated Debentures
75
Portfolio
Total
Standard Factors Corporation1
26
.
Mining and
6.
fi
0000 ff '$■
-
utilities and
2.. Petroleum
3.
Total
25
U.
S.
Due December 31, 1960
100
■
Great Britain-
and
% of
% of
■
Amount
Total
Amount
1,304
43
1,803
1,165
26
982
Direct:
2.' Miscellaneous
3;
Banks* and
Total
0001
...
shipping
•Total,
73
1,026
27
3,850
100
hold¬
government
ings account for only about 25%
U.
S.
and
also
of
British
in¬
vestments, the remaining 75% be¬
ing invested in industrial securi¬
ties.
The
decline
in
government
holdings occurred because several
Latin American
governments are
edeeming their obligations, while
thers have
defaulted, and still
thers have made adjustments of
original terms.
Does this deline mean that the time is now
he
ipe
y
r
for
the
new
Latin
will
the
.oncentrate
government
American
investing
irect investments?
The
irect
industries
investments
laced are
countries
r
into
issues
nations?
increasingly
on
:
their
;. 1.
which
have
the
been
reported in greater de-
ail for the U. S.
But
even
after
llowing for the fact that British
nvestments
road
are
industrial
shown
for
groupings,
only
the
Common Stock
l
2,824
4,411
Britain
or
25
L27S
Lf
Portfolio
:
3,133
..
Great
47
39
Direct
Government
of
';::22,500 Shares
Total
.
1.Railways
»
preponderance of British funds in
railways is striking—nearly 50%
of British funds
in 1944
were
(Par Value $1 Per Share)
.
lo¬
The yield
railways to British holders was
low
—
1%
iri
1940
and
1.1%
in
on
the Debenture included in the Unit from December 31, 1945 to the date of
delivery)
(Each Unit consists of
cated in this j category.
on
amount of
:t
\
,
: iV
for
U.
S.
in general
the
same:
ties
and
are
direct
our
1:
;
I
Copies of the Prospectus
L
on
railways
26%
,f >,
-
r.r'
I'
\x
i
\
os ar&
y
«■,'
>
-
.
may
'
yx
'
"
j
'
•
J.
.
'
1
in
paratively
tries.
than
was
was
for
lower
other
A. g. edwards
the
,
*
>•.
v.:;-;::.yyyy
•.
;->•>:;
-;v-.-.
bROWELL; weedon
j
& Sons
:
'*
Brailsford & Co.
"
"
*
v;
'
.
-
included
(both
in
the
r„
butcher & sherrerd
*
Buckley Brothers
chace, whiteside
&
incorporated
com¬
indus¬
categories
British
& Co.
.
ac¬
warren
were
miscel-
' '.v'
•
*,
R. H. Johnson & Co.
Irving J. rice
Mining and smelting, and
petroleum
-
_
of U. S. invest¬
1940)
'»«
'/
& Company
■
ments
i
*"
vS i
be obtained from such of the undersigned
public utili¬
(which
-k J '
-•
'
!<
registered dealers in this State.
Sills, minton
not available
experience
»-•
'
investments, but
return
counted for
r
:
tMMMZz $
group yielded 2.7% in 1940 and
4.5% in 1944; banks and shipping
yielded 4.5% in 1940 and this re¬
turn increased to 6% in
1944, with
Similar details
.
M
However, the yields on the
other two large categories were
much higher: the miscellaneous
issues in default.
one Debenture in the
principal
$1,000 and 30 shares of Commor\
Stocjk)
,S
!''t t,v.t^
M
1944.
no
^
Price: $1,050 per Unit*
•{PIu« accrued interest
April 1,1946.
•
.
Morgan Stanley & Co. and as¬
sociates reoffered the bonds at 100
un¬
likewise for those
South American countries where
foreign money can build domestic
\
to
of similar maturity.
sue
dertaken will promote
prosperity
not only for the U. S. and Great
Britain,
low record for
new
results
cooperatively
The less than
cost
ley & Co. bid is believed to set
;
by the fact that, generally enterprise.
Capital placed in Latin Amerspeaking, more important focal
ca by friendly interests will
points are those countries where'
lay
When
interest
the basis of the Morgan Stan¬
on
scured
total
similar coupon.
a
even
from
garnered f directly;
companies'^ reports.v Since,
during the war, the London* Stock,
Exchange removed :from its pub¬
country.
Wyy
Bonds
Morgan Stanley & Co. and asso¬
ciates won the award April 2 of
Great Northern Ry. Co.'s offering
of
$25,000,000 in new general
mortgage bonds, series R, matur¬
ing Jan. 1, 1961. Their bid named
a price of 99.279 for a 2y4% cou¬
pon, a net interest cost of less
than 2.31%.
Halsey, Stuart & Co.,
Inc., and associates bid 99.209 for
•
•
mediately ahead. But it is gener¬
though the amount
ally recognized that gains can
was not
sufficiently large to bring
emanate only from a consciousness
Peru into the tables of the first
of mutuality of interests.
Hence
five; countries
of
investment.
is
:.^r
individual
of
invested
area,
making
these
detailed
comparisons between U. S. and
vestment totaling at least
$254,000,000 in Peru has an important
bearing on the economy of that
country, and therefor on the in¬
y,
,*
f
'
v
is
British investments
-1940
*
After
holdings,
proximately equal.
;
,
quent U.. S. intervention in their
internal
portfolio
1823
same; the total amounts held by
British and U. S. investors are
ap¬
•
.
also
the- Caribr
known
for agricultural products and
raw
region than in
For
-
area
&
:
'':hyy-yy.
;.y'.
company
s;i|
1
THE
1824
Who Will Head
ant
last
to
is
who his client was.
all the greater when he speaks
If the Administration does, as
with the authority of the votes of
newspapers have reported,, back
the American Government in his
Lewis Douglas for the World Bank
It is not surprising that,
post, it is considered doubtful that pocket.
with such authority, and with the
Mr.
Morgenthau
can
eliminate
such
(Continued from page 1787)
\
that.:at
as
Savannah
chosen fot that post,
British
the $17,000-after-
to
pointments
posts have been from among
taxes
regime, he may still be indirectly
influenced in his policy decisions.
•Yet
there
is no
evidence that
Harry White is Vinson's choice for
the top job.
•
joining the Treasury staff
in 1934,Harry
White has demonstrated repeatedly
Since
the Americans and
with the Viner group
mist, as
a
of
course
other
Government econo¬
a
To
Secretary
ported by Judge Vinson, who
been
sold on the idea that
Morgenthau he proved himself in¬
Administra¬
policy before Con¬
gressional committees. Similarly,
been
ish
nomists
ponent of the Treasury or White
position
in
interdepartmental
meetings, as well as intergovern¬
mental experts' conferences. In the
latter he can be very effective. His
ability to argue any viewpoint is
the envy of many another Wash¬
ington economist. Thus, during the
Anglo-American loan negotiations
last year at one point White, re.
were
share;
that it
meetings; that if they
admitted, the bargains be¬
tween delegates WQUld be struck
fellow there is
always
a
In
an
directors and
imply for eco¬
statisticians smaller
high salaries
dents of large
It
elsewhere.
committee
there
their
stories
ter' balanced.'
no
from
been bet¬
would have
Savannah
' -
r
Fund
is
It
true
for
cessities
was
Fund
of
to pay
in the role of
in other coun¬
Since most mem¬
and Bank are
debtors or prospec¬
tive borrowers, it may
be assumed
V;.-'
wells
Province
the
in
of
Vera
Cruz, Mexcio.
Gulf Sulphur Co. was
Mexican
formed
under
a
Jan.
on
of
22
Delaware
this
year
laws, to provide
corporate entity to own all of
the
Mexican
corpora¬
formed. The
company
of
stock
tion to be
into
entered
has
a
agreement
an
the American
Sulphur Co.;
S. A., to assign to the Mexican
corporation a one-half interest in
development contracts relating to
certain concessions granted by the
with
Mexican Government for the ex¬
ploration of these concessions and
the extraction of sulphur there¬
from.
press
,
,
work of
the conference with
the press,
-
Siaff Pooling Bein^ Discussed
While
■
been
has
decision
no
reached, there has been consider¬
able discussion of pooling at least
District Theatres Corp.
On Market
i- First Colony Corp. and associ*
ates publicly offered April 1 for
($1 par) com¬
stock of the District Thea¬
Corp., a Delaware enterprise
140,000 shares
ers
mon
tres
the top research and legal person¬
nel of the Fund and Bank.
Those
formerly
advocating such pooling point out
at
"country" specialist in the
department
needs
to
know
both the long and short
term' outlook, while in legal mat¬
ters, provision after provision of
the Fund Agreement was incor¬
that
$7.25
a
Lichtman
known ; as
•
stock
The
Theatres.
priced
was
H
share.
a
research
stockhold*
the account of certain
f
l
•'
'■
'
■
*«■
V.-'-v/'-V-
-
.
May 1 Peace Parley Date >■>
Unchanged State Dept. Says
It is still expected
that the
bodily into / the Bank Peace Conference to decide terms
This suggestion of for Hungary, Rumania, Italy, Bul¬
their ablest available 'men in any Agreement.
pooling personnel seems to lend garia and Finland will: meet in
case.
The competition is too keen
support to the argument heard at Paris on May 1, the State Depart¬
to permit of any other course.
the
time
the
Bretton. Woods ment announced on March 25, it
Agreements were being publicly is learned from Washington ad¬
debated
that
two ?• institutions vices on that date to the New
would involve unnecessary du¬ York "Times," which added;
plication. However, according to
It is expected that the Foreign
of an offer to buy
ope of the present advocates of Ministers of the "Big Five" will
by the prospectus. r
the above described pooling, there meet ahead of that time to review
that they would be sure to
import¬
it
such salaries to at¬
the Fund
of
been* the ne¬
the United States,
tract good men.
bers
Obviously,
financing
for
Eugene
L.
Norton,5 formerly
conferences would be President and Chairman of the
held by Mr. Vinson. This decision,
board of Freeport Sulphur Co., is
Vinson
emphasized, was one of President of Mexican. Gulf Sub*
the whole board of governors in
phur Co.
;
,'
r
' ;
joint session.
In addition, Mr. Vinson asked
all delegates to avoid discussing
selected him
job.
not necessary
tries
that the twin inter¬
are
the
whatever may have
paid to vice-presi¬
Wall Street banks.
v
levied in
executive
of the Reserve
of India who
Bank
directors.
International conference, ■■ national /institutions
India's
than the Governor
salaries competitive with private
enterprise, they will not get good
meif.
good place
and has to pay much
v::'
this
from
used
exploit concessions from American
Sulphur Co., S. A., and for
the acquisition of equipment and
employment of personnel for the
drilling of at. least three test
is
sessions,
be
the - acquisition
of one-half interest in the right to
But had the report¬
permitted
to
attend
that
doubt
will
or
;
been ;i
ers
rooms
,
maintained that, unless the
and
Bank X pay attractive
was
In Washington.
:■')
hotel
smoke-filled
in
,
'
Proceeds
it is said. Some of the
director of the Fund will earn delegates took this more seriously
f
''
considerably ; more
after: taxes than others.
In de¬
fense of this scale, the Americans
at Savannah also pointed to the
For such a
$6 billions.
not reasonable to ex¬
was
pect the press to be admitted to
the
would
executive
nate
the
member
with all allowances, only
gross
country.
this
executive
and
Fund,
the
cabinet
paid
heavier taxes than those
that offered by U. S.
Government^Departments in
Washington,
the
United States
delegation insisted upon and got
$17,000-after-taxes for directors
and $ll,500-after-taxes for alter¬
ferring to the proper size of the
loan, observed that he
could produce equally good argu¬
ments for any figure from $2 bil¬
to
draws,
had $5,600
than
pay
British
lions
for
alternates
capable ex¬
most
a
highest
the
Czechoslovak execu¬
director:: of
tive
by the Brit¬
scale of pay proposed
tion monetary
has
Mr. Mladek,
on
British parted company with
the American delegation. * Sup¬
valuable in defending
he
was
the
pleader for a selected
action.
the British at
salaries for
Fund and Bank officials that
It
Savannah.
&
committee
-
,
Able Advocate
Market
on
Newkirk
Co.,
Inc.
today
(April 4) is offering 99,300 shares
(10-cent par) common stock of
Mexican Gulf Sulphur Co. to the
public as a speculation at $3 pet,
cial
his skill as
Stock
Up
(Continued from page 1787)
correspondents there.. Others felt
.
Government econom¬
but—since their governments ex¬
One difficulty with the press
ists.
One may wonder what ef¬
pect to apply for dollar loans—
coverage of a meeting such as the
forts the Administration made to
Savannah Conference arises from
they did not dare to raise their
canvass the field for "good men"
voice against the American pro¬
the
rivalry j between competing
before it made its selections right
posals.
The
British,
however,
press associations and individual
in the Treasury and State - De¬
said their say quite clearly, as is
papers.
Too often reporters feel
•
.' '
shown in Lord Keynes' remarks partments.
under the necessity of presenting
The "good men" argument cer¬ their readers with a scoop, and
republished in last week's "Chron¬
icle."
Those were his remarks in tainly does not go very far out¬ they therefore work under im¬
the plenary session.
Earlier, in side the United States. Whereas aginary pressures, filing their
committee, Keynes had been more in this country a married man stories sometimes without com¬
outspoken in objecting to the high with two dependents needs a be- plete verification.
fore-taxes income of at least $25,salaries proposed.
1
Still another "gripe" of some
000 if he is to have left $17,000correspondents at Savannah was
The Case for High Salaries
after-taxes, in Britain such a man the decision of Judge Vinson to
Concerning a high scale of pay would need a before-taxes earned center in himself contacts with
for the general manager of the
Early in the confer¬
income of aboirt $80,000 so as to the press.
Fund and the President of the
ence it; wai decided that all offi¬
net $17,000, - In the company of
Bank, there was no issue between
speaks his own mind on
this, as well as other matters, so
far as he can.
Naturally, since
his staff and advisors have been
inherited
from the Morgenthau
an
One does not hear the
Government arguing that its af¬
fairs are now being managed by
incompetents.
While the salaries
have been set high in the Fund
and Bank, the first American ap¬
the subject of
the British view,
shared
in the Fund
larger sums than
And Fund Set
the ranks of
Vinson
White
even
discussed
salaries
these
and Bank.c
the
whom
with
delegates
eign
writer
Corporation.
domestic agencies the
American people have at stake
Various for¬
objections.
-
.
construction Finance
In
support of Judge Vinson, White's
views as to the salary scale for
Fund
and : Bank prevailed over
should
it is
doubtful that it would go to Mr.
White. At Bretton Woods White
was indifferent to the Bank, and
actually afraid that it might cause
Congressional
rejection of the
BW program. Others, particularly
State
Department officials, put
the Bank across. Moreover, while
Morgenthau was in the Treasury
he spoke, on matters related to the
-Bretton Woods program, the mind
of Harry White.
But Secretary
Even if Mr. Douglas
him.
enough to warrant-manage¬
good men. So, too, is the
United States Treasury or the Re¬
■
not be
•
ment by
month, White's assets are used
the full.
And his effectiveness
wait, Mr. Feltus did not announce
Thursday, April 4, 1946J
COMMERCIAL & FINANCIAL CHRONICLE
send porated
.
This
is
announcement
offer to sell
not an
nor a
solicitation
only
the securities mentioned'herein, The offering is made
>"f'
r
^
,
rti: r }
<
-
*',
... .
District Theatres
v.
- ■
,
;
Corporation
(A Delaware Corporation)
if any, that their
made in London,
but no date for such a meeting
tions.
Only one man, M. Camille has been set as yet, ; -.
r
Gutt of Belgium, has been elected
TJnder date of March 17 it was
to both Fund and Bank executive
stated that strict secrecy will pre¬
directorship, and this may prove
vail at the European Peace Con¬
to be temporary, should M. Gutt
ference in May, with newsmen
the
General
become
140,000 Shares Fv,y-,-; if f
,
•
?
'r.-xv
COMMON
—
f.
'
' '
Whether
(Par Value $1 Per Share)
-
v
\
of
the
of
Fund and
the
be
President
Ac¬
freedom.
tually, the executive directors are
Per Share
expected to make the decision.
hjMtf &
Keynes Gets $50 Per
A copy of
the prospectus
may
be obtained from the
undersigned
setting of
American
abroad
some
First
Colony Corporation
Co.
Courts »&. Co.
Johnston, Lemon & Co.
Irving J. Rice &. Company
are
&. Co.
traveling
has
eyebrow lifting in
caused
Washing¬
there
to believe,
embarrassed by
the
have
good
been
reason
figure selected
to the
Coburn & Middlebrook
officials
allowed,
honorarium.
Ira Haupt
per
Some of the governors,
ton.
is
Simons, Linburn
Diem
diem for the
Fund and Bank Governors at $50,
or
more
than seven times what
The
comes
$50
high
was
the
at#Savannah is due
insistence of Lord Keynes,
argued
who
That
that
whenever
to Washington
he
it costs him,
newest
and
swankiest hotel, $40 a day
for a
at
the
Capital's
suite for himself and
public^sessions at the
opening and close of the delibera¬
tions, French officials said. In pari
these advices also said: j;'
Russian
drawing
up the preliminary Peace Treat}
drafts
prior to the
conference
agreed • upon such ^ a policy, » £
American,
delegates
French
British and
Lady Keynes.
with
charged
source
said.
^
provide for con¬
and radio broad¬
Present plans
'
"
progress,
deputies have
scheduled
shall
Those officers may
Bank.
the
permitted to attend only the two
.
staffs
considerable
have
Price: $7.25
•
pooled is a decision which, ac¬
cording to the agreements, may
be made either by the executive
directors or by the General Man¬
STOCK
of the
^
Manager
-
**
ager
.
sug¬
no
of combining the execu¬
tive directors of the twin institu¬
gestion
Fund.
.
today
Washington
is .in
.
fining newsmen
casters to the Hall of Lost Steps
which
ence
those
in
confer¬
the main
adjoins
room
in Luxembourg Palace
charge
of
preparation*
said.
The Paris conference, to
be at¬
21 nations, will play ar
advisory role. Before it convenes
tended by
will al¬
preliminary
by Russk
and
Britain; for Italy
by th<
United States, Russia, Britain anc
France, and for the Balkans b
Russia, Britain and the Unitec
four of the major powers
ready
have
treaties
—
for
drafted
Finland
States.
The smaller powers
mitted to make
will be ner
recommendations
after which the major powers
conclude the facts.
..
wil
[Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL CHRONICLE
(Continued from page 1788)
(Continued from page 1788)
Urgent construction projects piled
up by the war has been satisfied."
Concerning the interest charge
National
the
On
.Vinson stated:
"The
peace1 have
left
^Secretary
the
already
Tax
the
was
to
war
been
pleted in the tax field.
com¬
The first
Adjustment Act
of
1945, approved July 31, 1945. This
timely legislation was principally
designed to put business in a bet¬
ter position to cope with the fi¬
nancial problems of reconversion.
$
has
war
Debt
"The
transition from
economic
United
States with a large heritage of
4ebt. The public debt, including
guaranteed
obligations, of -the
United States on Dec. 31, 1945, by
bank
does
lands
business
no
institutions other than cen¬
tral banks or similar governmen¬
tal
bodies.
Its
shareholders
mostly central banks, but
those cases where shares
are
even
were
in
is¬
sued
to the public (France, Bel¬
gium, United States) the voting
rights are not held by the share¬
holders, but in the case of France
and Belgium by the central banks
It did so, not by reducing ultimate
tax liabilities (except for increas¬
of those countries.
been
ing the excess profits exemption
from $10,000 to $25,000), but by
the United States the shares
billion. 83% of this debt had been
incurred since June 30,1940, when
speeding the return to businesses
issued to the public, but the vot¬
the
were
received, amounted to $278
large-scale
rearmament
"The^interest-bearing debt
Dec. 31 bore interest at
an
on
aver¬
rate of 1.96%, resisting in a
computed annual interest charge
age
of
about
$5.4 billion..
Both the
.computed interest charge and the
average rate include the interest
of
bilities ' for
1946
tax
ings
bonds,
and
other
sav¬
before
securities
maturity,
The
will
be
somewhat
estimate for
actual
have
prompt and generous,
that the prob¬
economic
is
the
question of the ability of the
expenditure
taxation.
the
managed will be one of the most
of
the
important determinants
character of that period.
•
"The debt must
serve as a
con¬
stant reminder of how
greatly our
problems will be complicated if
we allow our national product to
fall substantially below our ability
to produce.
The existence of a
large debt is another reason, com¬
pounded on top of all other rea¬
sons, why the United States must
maintain a policy of full produc¬
tion in the; postwar period.
"It is my hope that it will be
possible to reduce the debt sub¬
stantially in the years ahead. This
will be both possible and advisa¬
ble if the economy operates at a
high level, and especially advisa¬
ble as long as inflationary pres¬
sures continue. One of the
prime
objectives of postwar economic
policy should be to attain a. high
level of prosperity, and a maxi¬
mum
with
reduction of debt consistent
the
maintenance j of
full
production."
In commenting on a reconver¬
sion tax policy Secretary Vinson
had this to say:
"The transition and postwar pe¬
riods confront us with a new set
<of circumstances bearing on tax
#
policy. Most immediately,
the
need for smooth
reconversion,
and
and, tax
face
speedy
action
to
penditures several times as high
s the prewar level, and taxes will
to
remain
correspondingly
igh.
Finally, we face the need
of achieving full and stable proluction and a vigorous economy
n
the postwar period, a need
which calls for
ur
a
modernization of
tax structure.
"Two
major steps
for
Substantial> further
occurring «while in¬
flationary pressures are strong
would increase the danger of in¬
flation,
up.
tax reduction
"Although Federal expenditures
declining rapidly as war activ¬
are
ities
the
banks
of
Great
and it has been attended regularly
almost without exception. Through
the
instrument
and other
of
the
Agent in 1931 (Hoover Morator¬
ium).
It; continued to act as a
center for the central banks who
were
its shareholders.
pean
central banks with the
All
Euro¬
ex¬
ception of Portugal, Spain, Latvia,
Turkey and the USSR are share¬
holders.
central
high officials, recruited
sured.
There
has
never
land,
ber
of
directors
of
The
each for other
two
seats
central banks
Sweden
and
of
Switzer¬
the
Nether¬
a
center
war no
This is under
sale,
no
a year at
meeting. During the
board meetings took place
the
and
annual'
"The
cellent
are completed and liquidat¬
ed, they cannot be expected to re¬
to prewar levels.
To dis¬
charge our obligations to return¬
ing veterans, to service the debt,
and to maintain our military de¬
fenses will involve necessarily
heavy burdens,;
Public works
projects and programs to aid agri¬
culture, the unemployed, and the
aged will also require large out¬
lays.
Clearly, the aftermath of
since
Dr.
BIS
1930
P.
has
countries like
for
the
United
for
the
central
Europe the BIS worked
well as it possibly could, even
under the most unfavorable
cir¬
cumstances which prevailed after
ain). (Both at the BIS since 1930.)
Under the guidance of the Presi¬
dent, the BIS collects material
from
all
the
over
personal contacts
ices
call
upon
their
Government
of
inestimable
central
bank
to make
covering
risks
was
Share
plus accrued dividend from March 15, 1946
obtained from the undersigned only, in such
Company
Common Stock
Price $3:00 Per Share
Irish
Free
State
(Saorstat Eireann) external loan
sinking fund 5% gold bonds, due
Nov. 1, 1960, are being notified
that $15,000 principal amount of
bonds
outstanding
have
been drawn by lot for redemption
through the sinking fund on May
1, 1946, at par plus accrued inter¬
Payment will be made at the
est.
office
of
the
National
City
Bank of New York, American fis¬
agent.
York,
on
55
Wall
May 1.
Street,
New
Newkirk & Company, Inc.
70 Pine Street
New York 5, N. Y.,
Telephone WHitehall 4-8144
•
.
Redeem Irish Free
of
States
offer these securities in compliance
with the securities laws thereof.
stability of our nation than
before; its modernization is
the very foundation of our pro¬
gram to achieve full production:"
Noting that tax modernization
does not necessarily mean tax re¬
duction,
the
Secretary of * the
Treasury concluded that "the pro¬
gressive
personal
income
tax
head
where
forward
impossible because
proved valuable and simple
ever
Holders
gold
as
to operate."
and
State Bonds
a
central
to
(Without Par Value)
per
as
central
of exchange restrictions. This sys¬
tem
a far big¬
factor in the economic health
our
this
bank,
intermediary,
possible the covering of
exchange
"Consequently, the Federal tax
these
active
was
between
through the BIS
structure is bound to be
should be the cornerstone of
in
banks,
thus avoiding unnecessary trans¬
port of gold. Before the war it
operated a system of loans from
to
peacetime revenue system."
value
/
"The Bank
trader
provide will hold Federal expend¬
itures far above prewar levels..,
ger
its
The
the offi¬
among
connection.
$2.25 Convertible Preferred Stock:
&
for
cials of the various central banks
|w;Ibliss IcompanII
c4llen
world
wpll known annual report.
100,000 Shares
where the undersigned may legally
ex¬
(Sweden), as¬
Conolly (Great Brit¬
NEW ISSUE
Copies pf the. Prospectus may be
but
department,
the direction of
as an
offering of these Securities for
offer to buy, or as a solicitation of an offer to buy, any of such •
Securities. The offer is made only by means
of the Prospectus.
$50
small
a
under
circumstances to be construed
Price
were
Jacobsson
sisted by Mr.
and the broad array of serv¬
which the American people
war
meetings
economic
or as an
e.
shareholding
held by proxy.
was
banks of
as
*
once
annual
num¬
States have beeh left' unoccupied
since May, 1935.);
;
"As
the
any
Sweden, Switzerland, Netherlands.
The
All
a
country
is fixed by the statutes
(Great
Britain, 2; France, 3; Belgium, 2;
Italy, 2; Japan, 2; Germany, 3, and
one
the
.
Outside" Europe only the
of
Japan was a
(Japan was a rep¬
arations creditor.) The governors
the
been
possibility of domination by any
shareholding
central
bank,
as
practically all power is in the
bank
shareholder.
of
managers
from many countries, regular con¬
tact during the month was as¬
hands of the directors.
"The BIS started work in 1930,
but lost its task as Reparations
Britain,
France, Belgium^ Netherlands,
Sweden, Switzerland, Italy, Ger¬
many and the representatives of
the bank of Japan was
assured,
assistants.
central banks met
turn
cal
to ease
Reserve
participate in the
goods,
we
that end has already been taken,
lore
permanently,
we
face a
ostwar level of Government ex¬
ave
demands
catching
:
Federal
Chi¬
monthly, excepting during July
August. Thereby a monthly
meeting
(lasting
two
to
four
days) of the governors of the cen¬
,
chasing power, exert continued
inflationary pressures, especially
in the period when production is
of the most
one
The
not
of
be either aggra¬
by the course of
-
"Pent-up
:v
the
country.Even ^in years ? with a
lower product than the present,
this percentage will still be rela¬
tively small. Nevertheless, a debt
of $275 billion is not a burden to
be taken lightly. The existence of
important facts of the postwar
period; and the way in which it is
eased
or
combined with accumulated .pur¬
present gross product of
this debt will be
of
are
process—especially
deflation—may
fiscal year
1947 amounts to less than 3% of
did
Bank
York,
Basle
at
currents of inflation and
cross
United States to bear the debt, as
the estimated $5.0 billion interest
the
Boston.
Banks
New
met
and
tral
during the 1930's, was greatly en¬
by
the
monthly Basle
meetings of governors and their
hanced
Directors
difficulties which beset
transition
vated
First
of
,,
"The
The atmosphere of
coopera¬
tion between central banks, which
eased difficulties as far as possible
assume
further concern to tax policy.
Quite the contrary. The peculiar
the
for
year
no
year
the Secretary remarks that "there
no
been
lems of economic transition
"Regarding this interest burden,
*
fiscal
reduce
collections
cannot
we
interest
in the fiscal
.1947 is $5.0 billion.
{
It is to be noted that
will
"Although the tax adjustments
already made to aid reconversion
both
smaller.
^expenditures
years
1947..
'the average rate and the Computed
annual
interest
charge on the
debt
calendar
by nearly $6 billion
by less than
$1 billion, most of its effect not
being felt until the fiscal year
which pay their full rate only if
held for their complete term, are
redeemed
the
1946 and 1947
maturity.
series E
First
National
law
that
by the
cago and the First. National Bank
this
extent
held
the
annually.
To the
are
Bank
only
bonds held to
ing rights
were
National
series E savings bonds at the
full rate of 2.9%, which is paid
on
on
they
the
granting of limited tax reductions
at those points in the tax structure
where, they would be most effec¬
tive in maintaining high levels of
employment and production in the
transition
period.
Going some¬
what beyond my suggested pro¬
gram of $5 billion of tax reduc¬
tion, the Revenue Act of 1945, ap¬
proved Nov. 8, reduced tax lia¬
as
indicated in the President's Budg¬
et Message of January, 1946.
1
,
which
to
of
V "The second major step was the
fiscal year, the debt will decrease
approximately $275 billion,
funds
tax
that
entitled under provisions of
wartime revenue laws. *
pro¬
gram was just beginning. During
theremainder;-: of
the
present
to
the
of
is
A special case
United States.
In
elected directors of the
are
bis.
with
which time
substantially all of the
proceeds of the Victory Loan had
1933.
The Bank for Internationa! Settlements
Vinson Defends Low Interest Rates
;
"
''■:
'hy-yP-yy■
<•'
tf'&xiil
Air
Inc., Chattanooga,
Products,
PREVIOUS ISSUE
INDICATES ADDITIONS SINCE
!•
■
of the common stock, and toward
that end the underwriters have entered into an agree¬
ment with Mr. Reynolds whereby,, as Mr.
Reynolds'
_
they will
agent,
by them
Mr. Reynolds' agent, up to
the company plus, as
from
Manufacturing Co., subsidiaries of Barium Steele Each
such exchange will be made upon the basis of assigned
12,000 shares of additional common which Mr. Reynolds
agrees to acquire through exercise of his subscription
rights. The price to public is $20.60 per share. Under¬
writers—Blyth & Co., Inc.
price of $1 per share.
The remaining 40,000 shares
are being offered by the company directly
to certain officers and employees at $1 per share and
are
not being underwritten.
Proceeds—Company ex¬
values to the shares.
•V.
'•
•
Barium Steel
ties Corp.
details
• :
PaM together with $70,000 for cost of conversion and
moving.-'- Balance of proceeds (estimated $913,500) will
be used for general working capital purposes.
Business
—Manufacture and operation of equipment to reduce
filed
a
R. I.
are
being
;;
Underwriters—
Offering—Price to public
stock
by
covered
the
on
10-year 3% collateral trust bonds, which
privately, are to be issued for the purpose
of acquiring certain assets- of American ; Water Works
& Electric, liquidating
two subsidiaries, •; Community
Water
Service
Co.
and
Ohio
Cities Water Corp.,
"
shares of
offered initially for cash to thC common stockholders
of the parent, American Water Works concern and to
to be sold for cash to underwriters.
of
4%
registration statement for 400,000 shares
preferred non-voting shares.
For
issue of Oct. 11.
Offering—Price to the pub¬
a
cumulative
details
see
is
$5.50 per share.
Underwriters—Shares will be
sold through the "efforts of the directors and employees;
of the corporation.
•
lic
Stein Bros. & Boyce.
New York,
....
s
:^
Aro
of cumulative preferred stopk
(par $100). Dividend rate by amendment.
Underwrit¬
ers—Lehman Brothers and Union Securities Corp. Offer¬
ing—Price to public by amendment. Proceeds—Company
has developed a new product known as the "AMF Auto¬
matic Pinspotter."
Presently contemplated cash expen¬
ditures for the introduction, production and distribution
March 28 filed 80,000 shares
the
new
pinspotter for the
with the
shares of
March 14
y
product. Additional funds required may
through sale of remaining 20,000 authorized
new
filed
American Mail Line Ltd.
'
V'Y-1'
Atlas
on
a
held.
stockholder,
ft. J. Reynolds of Miami Beach, Fla., desire to secure
Company
and
principal
' 1
' •;&" i'
V'l
'
'
'
\
•
' y
>
.
f
,
- *
1
1
i»
••
t
Imperial Diesel Engine Co.
Feb. 28 filed a registration statement
for 30,000 shares
stock ($50-par). Divi¬
dend rate will be filed by amendment.
For details see
issue of March 7.
Underwriters—Blyth & Co.; Inc.,
of series A cumulative preferred
on
registration statement for 49,602 shares
of common stock
(no par).
For details .see issue of
March 21.
Offering—Company is offering to common
stockholders the right to subscribe for an aggregate of--
common
4
Offering postponed indefinitely.
other-
49,602 shares of additional common stock at $20.50 per
share on basis of 48/100 of a share for each share of
I ' N
a
Avon Allied Products,
March 11 filed
*'
the public will be filed by amendment. UnderwritersCentral Republic Co., Inc., and Reynolds & Co.
current year and first
preferred stock, through borrowing, or
V" A
-
March 26 filed 37,220 shares of 4%
ferred stock (par
cumulative pre¬
par) of which company is selling 20,200 shares
are
of pre¬
selling 17,020 shares
preferred and.100,000 shares of common. Underwrit¬
ers—Group is headed by Hemphill, Noyes & Co., F. S.
Moseley & Co. and H. F. Boynton'& Co., Inc. Offerng—
Prices to public will be filed by amendment. For details
see issue of March 28.
.
of
.
.,
—
r
Municipal Bonds
inc.
4 8 WALL
Chicago
Chicago and other cities
*
■
■
ST., NEW YORK 5, N. Y.
Boston
*
Cincinnati
☆
\
1***1 L
s
V\'
^
'V //
*"
"
v
"
f
\
*ft? P-C;
,
-
preferred
March 28 filed 200,000 shares of cumulative
Offering—Offering price to pub¬
Proceeds—To provide in whole or
in part for modernization, expansion, etc., of manufac¬
turing facilities and plants, which should provide op¬
portunity for lower costs, increase capacity for produc-f
tion of existing products, and provide facilities tot
manufacture of new products.
No allocation made for
particular purposes.
Business—Manufacture of auto¬
motive parts.
:
Union Securities Corp.
lic
by amendment.
'
w,
•
-
-
-
;
n .
•.
%,a" ^
-
[ ,«v eA '*/' *•
'/ ; ,u0'
^
~t *•
,
Bowser, Inc., Fort Wayne^ Ind.
on
200,000
March 25 filed a registration statement for
cumulative preferred stock (par $25),
with common stock purchase warrants attached.
Un¬
derwriters—Blair & Co., Inc., New York. Offering—Price
to public ..by amendment.
For ; details- see , issue * of
shares
of
$1.20
March 28.
v
yy
r
v;-.;: Buffalo; Forge Co,
.■
'
t
-
by
two stockholders.
For details see * issue of
Offering—Price to the public will be filed
by
Underwriters—Hornblower & Weeks
amendment.
head the underwriting group..
H
on
^
;
»
.
.
(F.) Burkart Manufacturing Co.
Feb. 28 filed a registration statement for .10,000
shares
(par $1).
Shares are being sold by
certain stockholders. For details see issue of March t.
of
common
stock
Offering—Price to the public $50 per share.
—G. H. Walker &
Underwriters
Co., St. Louis, principal underwriter.
Philadelphia
•
St. Louis
•
•
»
Securities
of
\
yfTr
•
Kidder, PeabodyS'Co.
Founded 1865
HAnover 2-2727
Pittsburgh
Underwriters and Distributors
Jfiifd-yiiy:.
.
,
....
March 14 filed a registration statement for. 60,000
shares of common stock (par $1).
The shares are being
on
Corporate and Municipal
C. J. DEVINE & CO.
CORPORATION
/v'
y
United States Government Securities
FIRST BOSTON
•
V
Borg-Warner Corp., Chicago, III.
.
/f
SPECIALISTS IN—
State and
Boston
N
'
•
☆1
.
The
sold privately
March 21.
$50) and 100,000 shares of common (no
ferred and certain stockholders
Corporate and Public Financing
•
/'
sold
Inc., New York, N. Y.
☆
NewYork
at the cost price to Allen & Coi
Allen was $2.10 per share. - Offering—
The offering price will' be. supplied by amendment.
Underwriters—Allen & Co. is named jtfincipal, under^
shares of cumulative
$11,-$
Net proceeds from the sale will be added to
capital and used to provide funds in connection
be obtained
: I'1'
c
.
Equipment Corp.
registration statement for 30,000
preferred stock, 4J/2% series (par
$50) and 20,000 shares of common (pat $2.50).
Fot
details see issue of March 21.
Offering—The prices to
on
quarter of 1947 aggregate between $9,000,000 and
000,000.
working
;
V
registration statement for 702,302
stock (par $100). Dividend rate by amendment; Under¬
writers—Paul H. Davis & Co., Glore, Forgan & Co. and
Ampal-American Palestine Trading Corp.
*
of
f
of preferred stocks of Community and
exchange for their shares.
All common stock
not subscribed or issued under the exchange offers are
Oct. 3 filed
a
Purchase price to
in
On
March 15 filed
were
the public holders
public by amendment.
y-ft*y.%5
capital stock value (par 1 peso, equivalent in
cents per share). The shares are part
of a total of 852,302 shares purchased by Allen & Co.;
from five stockholders.
Of the 852,302 shares, 150,000
stock of the company are to be
common
-
U. S. currency to 50
providing ,cash /working capital of; the company*
The
*r
••
shares of
,
and
for each 10 shares
new common
y ysy./ruK*•
together with
prospectus,
share of
Benguet Consolidated Mining; Co.
to be sold
are
one
a
.March: 28, •/
be segregated
pursuant to plan filed with the SEC. The shares of com¬
mon
Offering—Company is offering;
of record March 30, right to
machine.
price to be filed by amendment.
Issue is not
being underwritten', but holders of common of record
on
March 30, 1946, in addition to their pro rata sub¬
scription rights, will; also be given an opportunity to
purchase any shares which have pot been purchased
through subscription warrants. For details see/issue ot
by amendment, after results of competitive bidding are
known. Purpose—Company is the holding company into
which the water works subsidiaries of American Water
Works & Electric Co., Inc.* (parent) are to
a
stockholders
subscribe to
competitive bidding are known.
To be filed by amendment.
of common stock (par $5).
Machine & Foundry Co.,
of Vincent Bendix,
stock (par
common
common
held at
determinable only after the re¬
additional number
sults of
filed
21
matic washing
to
Inc., New York, N. Y.
2,343,105 shares of common (par $5) plus
March 30 filed
American Air Filter Co., Inc.
13 filed a registration statement for 101,086
shares of common stock (par $1).
Shares are being
sold by certain stockholders.
For details see issue of
March 21.
Offering—Price to the public is $13.75 per
share. ' Underwriters—Underwriters
include Almstedt
Bros.,. Equitable Securities Corp., Bankers /.Bond Co.,
American
soldi in
be
estate
issue jot Feb. 20. .Offering—<
the over-the-counter market.
see
registration statement for 104,301
331/3 cents per share.) Busi¬
ness—Manufacture of Bendix Home Laundry, an auto¬
shares of
American Water Works Co.,
•
bn March
•
For details
will
>
statement for. 507,400
(par 50c).
Shares are being
stock
common
March
on
'
provements/^;-■
Ohio
//r-.;N. Y.
Inc.
registration
a
Appliances, Inc., South Bend, Ind,
plant formerly belonging to the Defense Plant::
a
$1,750,000, purchase of additional machinery
and equipment for such plant and for other! plant im-
and shall? have the right to purchase the; remaining
141,000 shares. Underwriters—Emanuel & Co. and Leh¬
W. E. Hutton & Co., and
..'A
.
Proceeds—Proceeds will:be
for the account! of the
sold
Corp. for
sold by Aviation Corp. which owns
Brothers. Offering—Price to
of-
shares
filed
13
„
262,538 (20.3%) of 1,290,567 outstanding shares. Aviation
Corp. has entered into an agreement with underwriters
whereby latter have agreed to purchase 70,000 shares
man
V. '
•/
with
Bendix Helicopter,
Feb.
on
$15,000,000
Shares
'
,
Screw Co., Providence,
filed 21,550 shares of 4*£% cumulative eon- <
preferred stock (par $50) Underwriters—G. H.¬
& Co.
Offering—Common stockholders are of¬
chase of
registration statement for 97,350
March 28 filed 211,000 shares
connection
in
Shares
an
Inc., New York, N« Y.
"•
$52 per share. Unsubscribed shares will be purchased
Underwriters—Kobbe, Gearhart & Co., Inc., is named
by underwriter for offering to public.6;Proceed^—Pro- //
principal underwriter*
1
"
- " • r
""»
ceeds from sale of preferred, with a term loan of $1,250,-V.
000 and current funds will be used to finance the purBendix Home
stock (par $5). For details see issue of
March 7.
Offering—Company is offering to issue 97,350
shares of its common stock to all stockholders of MidContinent Airlines, Inc., in exchange for. common stock
of Mid-Continent in ratio of one share of common stock
of American for each four shares of common stock of
Mid-Continent (par $1).
Underwriting—None named.
American Airlines,
"
.
'
payments to and advances to
subsidiaries for working capital, for purchase of equip¬
at
shares of common
•;
-
•
Corp., S. E. Canton, O.
public by amendment.
used
right to subscribe to new preferred at rate of one v;
deceased.
share of preferred for each four shares of common held
American Airlines, Inc.
4
•
■'
Offering—Price to public by amendment. For ; / ment, repayment of loans, development, etc. Businessissue of March *28.
Diversified lines of steel and othef metal produces.;
;
American
Walker
writers are Hayden,
March
to
,,
fered
/
'
on March
19 filed a registration statement for 12,000
shares of $2.50 convertible preferred stock (par $50)
and 25,000 shares of common (par $1).
Common, shares
are being sold by certain stockholders.
For details see
issue of March 21.
Offering—Prices to the public will
on
(par
stock
.
Allianceware, Inc.
</v
common
March 29
constituent atmospheric gases, such as oxygen §
the premises of the ultimate consumer.
amendment. Underwriters—Principal under¬
Miller & Co., Hawley, Shepard &
Co. and Maynard H. Murch & Co,
.
.
see
vertible
and nitrogen, on
be filed by
shares of
150,000
$1).
Shares are being sold by certain stockholders.
Underwriters—Hornblower & Weeks and Union Securi¬
pects to apply approximately $60,000 to the purchase of
additional machinery and equipment heretofore rented
from the Defense Plant Corp.
An additional $81,500
will be applied to the purchase of the plant at Emmaus,
air into its
filed
22
;
-
30 filed 350,000 shares common stock (par $1).
Underwriters—Laird, Bissell & Meeds.
Offering—Ppce
York, N. Y.
American Molasses Co., New
March
.; -
,
March
a
of common
(par $1)j
Offering^—Company is offering to exchange its common
stock for the outstanding shares of stock of Republic
Industries, Inc.
Geometric Stamping Co. and Kermath
y
purchased
stock
Corp., S. E. Canton, O.
March 30 filed 258,160 shares of common stock
designated by him /
offer to ? persons
unsubscribed
of
shares
all
100,000 shares of common are offered in units
of one share of class A stock and one share of common
stock at $11 per unit.
The remaining 150,000 shares
of common will be offered at the discretion of the under¬
writer to the purchasers of such units or to others at
stock and
Barium Steel
•
distribution
wider
Tenn, .
/;;v:
April 2 filed 100,000 shares class A stock (par $1) and
290,000 shares common stock (par $1). Underwriters— ?
Reynolds & Co.
Offering—100,000 shares of class A
•
Registration
in
Now
Securities
Thursday, April 4,1946
FINANCIAL CHRONICLE
THE COMMERCIAL &
1826
Members of the
Cleveland
New York
San Francisco
*
.
New York and Boston Stock Exchanges
/ Boston
Philadelphia
Chicago
Volume
163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
1827
•
Burlington Mills
Corp.,'Greensboro, N. C.
Cribben & Sexton Co.
A
on Feb. 28 filed a
registration statement for 40,00(5 shares
4V2% cumulative convertible* preferred stock
(par $25)
■
March 30 filed
100,000 shares of convertible second pre¬
(par $100).
Dividend rate by amendment.
ferred stock
Underwriters—Kidder, Peabody & Co.
...
Offering—Pre-
Rights
appertaining to 55,106 shares of
waived by directors and officers so
the
ratio
of
each share
three-fiftieths
of
The
common.
be sold to underwriters.
by amendment.
of
to
common
•
have
been
shares
.
Proceeds—Net
proceeds
purposes, which are expected to include
for
A
expenditures of A
and 1947 pursuant to
additions and betterments to plants and
February, 1946, the corporation received
$4,920,000 from the sale of 50,000 shares of
% pre¬
ferred stock and the proceeds were added to its
general
funds.
'•
•
In
J
•
Bush
i
Manufacturing Co., West Hartford, Conn.
March 29 filed 20,000 shares
41/2%
ible prior preferred
mon
cumulative convert¬
Chas.
W. Scranton & Co. Offering—Price to
public is A
$25 "per share for preferred and $10 per share for comg
prion.
Proceeds—Proceeds from sale of stocks, together
with approximately
$298,000 from sale of 4% sinking
fund debentures,
together aggregating $844,500, will be
used
to
to cost
finance construction
of
new
plant, estimated V;
$650,000, including moving
refrigeration; air conditioning and related fields.
Capitol
100,000.shares common stock (nonpar). A
being sold by certain stockholders.
Under¬
amendment.
Tennessee
28
purchased by underwriters from
shares of preferred and 37,500
Hershey Trust Co., trustee of
Price
to
public
by: amendment.
....
-
April 10, 1946
Industrial School of Hershey, Pa.
Shares to
purchased from" trustee are part of 40,000 shares of
preferred and 137,500 shares of common to be issued
by
company to the trustee as part of the consideration for
certain assets to be acquired
by Cuban Atlantic. Under¬
writers—Group is headed by Wertheim & Co., and Ladenburg, Thalmann & Co. Offering—Prices to public by
be
For details
Feb. 21 filed
of
capital
Feb.
Central Maine Power Co.
.
on
March
shares
will
18
of
be
March
filed
filed
1
see
issue of March 28.
American Molasses
Co
Common
Drackett Co. ———A——.....———
Preferred
Fruehauf Trailer Co.————
...—Preferred
Linn Coach & Truck
Corp..
..........Common
United Biscuit Co. of America....
—.Debentures
April 12, 1946
Piper Aircraft Corp———
t
April
For
details
see
issue
at
of
21.
\
'j
A\st5' J vA'."A,>; •"*uA1*"r.•
Chain Store Investment
on
Feb, 8 filed
'
A!
"v'
Av-
A
•
-
>
will
be
at
Corp.
offered
to
-
Republic Indemnity Co. of America...!
Common
Shell Union Oil Corp.——..-.————
Debentures
Sonotone Corp.
..Preferred
Steep Rock Iron Mines, Ltd..—.————.Common
Underwriters
'
/
-
April 16, 1946
American
?'riV A/-ANA.v
.
*
<•
-!t^.'Ay A'" ■-*■*/-1
«*'"
A
%4
A
(Allen1 B.)
•
Peninsular Telephone Go.—.Preferred and Common
Queen Anne Candy Co.——
Common
DuMont
April 17, 1946
American Screw
Laboratories, Inc., Passaic,
Bush
by underwriters.
A....A.—.Common
Hytron Radio & Electronics Corp.——Common
Watch Co. Inc.—...—.Common
Lynch Corp.
.Common
Longines-Wittnauer
———————.
Scranton Electric Co....A
Super-Cola
of
record
March 26
at
rate
of
one
share
new
shares at $54 per share.
(Havana
March
18
filed
a
De La Habana S. A.
registration
on
statement
March
4
filed
a
for
(par
of
$25)
6%
cumulative
and
197,000
convertible
shares
of
from
certain
statement
for
ing 35,000 shares of
common
remain¬
being purchased from
issue of March 21.
Offer¬
on
of
Baltimore
Electric
A,'
Light & Power Co.
A/A; ■! A
arch 29 filed $44,660,000 series R first
age bonds due
ent.
refunding mort¬
Feb.
25
Offering—Price to public is $100 per
share for preferred and
$10 per share for the common.
/ Company
and
will
be
sold
its subsidiaries.
to
In the
event of
a
public offering,
a post-effective amendment.
Under¬
writers—Sale of stock will be made
through company's
own officers and
employees.
■
gen-
as
.
_
.
—
.Debentures
Common
•
i:
•
Firth
1946
—Class A
—
Stock
—...
Common
...
....Common
anticipates
that, all of the preferred and
employees and officers of the
/ company, and employees and officers of Curtiss
Candy
common
Inc
Roberts & Mander Corp
Sharon Steel Corp.
—A
issue of Feb. 27.
ng—Bonds will be offered for sale at
competitive bid¬
ing, and the price to the public filed by amendment;
roceeds—Net proceeds, together with
money from
required, will be applied to redemption of
?Q.844,000 series N 3%% bonds and $23,816,000 series 0
%% bonds at 105Vz and 107, respectively.
Air Products
see
April 1, 1981.
Interest rate by amend/ company will file
Underwriters—To be filed by amendment. Offer-
ral funds
April 21,
filed
28,159
,
Gas
.—.
Selected Industries Inc....—
Taca Airways S. A.__
a
registration statement for 13,877
shares 4% cumulative series 2
preferred (par $100) and
shares of common
(par $10).
For details
Un¬
derwriters—Hirsch & Co., New
York, is principal under A
/riter.
,, •'
«. 'AAA."
\
:
Consolidated
Common
Equipment Finance Corp.
are
the company.
For details see
ing.—Prices to public will be filed
by amendment.
Preferred
Mading Drug Stores Co.___.Debs., Pfd. and Common
National Skyway Freight
Corp..
Common
Ohio Public Service Co...Bonds, Notes and
Pref. Stk.
Segal Lock & Hardware Co., Inc...
..Common
200,000
preferred
The
..Common
Steel Corp...'
..—.Common
Burlington Mills..—————-—-—2nd Preferred
Curtis Companies,
..—.Common
Inc.—A.AHoffman Radio Corp. A A
A .A—„ .Common
-
registration
....Common
Barium
■:
common
stockholders.
Missouri.—........Preferred
American Wafer Works Co. Inc.—.—
each
.
underwriters
Pwr. Co..—.—..Common
April 18, 1946
19,419
shares of common stock
(par $1).
For details see issue
stock
of March ,7.
Offering—Price to the public is $4,375
•
(par 10c}/
per share.
Underwriters—S. R. Livingstone & Co. and
All of the 19,419 shares of
preferred and 162,000 shares
Mercier, McDowell & Dolphyn, Detroit,
of the
Ar,\ A
A,
197,000 common are being purchased by the
shares
&
of
Walworth Co..——A——Debentures and
Etectromaster, Inc.
Lithographing; Cd.>
.
^Commoii
Utility Appliance Corp.——Preferred and Common
Rights, expire
April 13.
Cqmpavtia Litgrof ica
for
.
Preferred and Common
United Cigar-Whelan Stores
Corp
United Transit Co
—........A
Manufacturing Co.
common
* .....—.
—-.A..———Common-
EI. Lt.
Union Electric Co.
March 7 filed 178,364 shares of common
prospectus* is" "At the market"-A>n the New ' York,
stock (par $4).
Stock Exchange or other
YfcJnderW^
exchanges on which the stock
Pierce, Fenner & Beane.
is listed. Underwriters—Thefe is no
/For details see issue of March 14.
underwriting agree¬
Offering—Cbmpany
ment.
is offering the new stock to holders of
Stock will be sold from time to time at the
its cofhmon stock
four,
Corp.
Tucson Gas &
tele¬
the
prices then current
.
Rockrfdge Gold 'Mines' Ltd...
trans¬
or
.
New Haven Clock & Watch Co
A.A.-Preferred
Paulsboro Mfg. Co
.Preferred and Common
Public Service Co. of New
Hampshire.—.Common
financing, is
proposed to be used for expansion principally of com¬
pany's facilities'for television broadcasting
An^-ittanuA
facture and sale of television receiving sets and
Eaton
and Common
Diamond T Motor Car
Co..——.A—..Common
(Allan B.) Du Mont Laboratories Inc.—CI. A. Common
Firth Carpet Co
Underwriters—Van Alstyne,
Business—Cathode-ray tube,
Manufacturing Co.....Preferred
Consol. Gas El.
Noel' & Co. and
Kobbe^ Gearhart & Co., Inc. Offering—
Price to public by
amendment,
Proceeds—To expand
television broadcasting and
manufacturing facilities and
operations in the low-frequency fields.
Because of ex¬
tensive expansion program now
mitting equipment.
vision, etc.
>v;
Co.—.A.AA.A—A——Preferred
Lt, & Pwr. Co. of Bait
./...Bonds
Crowell-Collier Publishing Co...———A--Common
planned, the unexpended
on
the New York Stock Exchange
other stock
exchanges on which the stock is listed.
..Common
& Die Corp...............Common
Jessop Steel Co.—A—......A.
——...Preferred
Kgnsas City Fire & Marine Ins. Co....—Common
Keyes Fibre Co.Aw——_—A--—
....Bonds
portion of moneys raised by the sale of
225,000 shares
6f class A common in 1944
isnotsufficient.
Such bal¬
ance, together with the proceeds of this
A':
Preferred
.......
March 29 filed 65Q,000 shares of class A common
stock
(par 10 cents)/of which 525,000 shares are
being offered
for sale
1 A
-A.-;
Inc.————A...Common
Borg-Warner Corp.
Capital Records, Inc.——.———A——
Drackett Co., Cincinnati, Ohio
.
;
Colorado Fuel & Iron Corp.
on March 14 filed a
registration statement for 275,000
shares.of common stock <no
par). Shares are issued and
are being sold
-by certain stockholders, For details see"
issue of. March 21,
Offerlng-r-Price to public according to
on
Airlines
American Machine & Foundry Co.——.Preferred
March 22 filed 108,000 shares of 4 % cumulative
con¬
vertible preferred stock,series A ( par $25),
Under-'
writers—Van Alstyne, Noel & Co.
Offering—Price to
N. J.
public
common,; First Colony Corp;
;*
,
National Automotive Fibres Inc.———Common
Diamond T Motor Car
Co., Chicago, III.
March 29 filed 60,000 shares of
common stock (par
$2).
Shares are being sold by certain
stockholders. Underwrit-"
ers—Hallgarten & Co. Offering—Price to public by
amendment. Business—Motor Trucks.
•
writers—As to the preferred,
Childs, Jeffries & Thorndike, Inc., and H. C. Wainwright $ Co., and as to the
,-ft"
......
of
a
price to be filed by amendment. / Under¬
a
share.
.......Preferred
...
/ public $25 per share. Business—Chemical
manufactur¬
ing. For details see issue of March 28,
A-rAy* »/*
by underwriters at a
price to be /iled.by amendment., The 100,000 shares
of common stock are
initially Being offered by the cor¬
poration for subscription -to common stockholders At a
price to be filed by amendment, but 50 cents per share
under public offering price.
The unsubscribed balance
of common, vftll be offered to the
public by under¬
writers
per
-
A'
Greenfield Tap
registration statement for 15,000 shares
of V/z%: cumulative convertible
preferred stock (par
$50) and 100,000 shares of common (par 10c). / For
details see issue of Feb. 14.A Off eririg~-The
preferred
stock
or^private sale at $20
/
Kingston - Products Corp......
Common
(F. H.) McGraw '& Co._—
Preferred and Common
right to sell any unsubscribed stock
.
Underwriters—Names of underwriters .will be filed
by
amendment,
* .■ A''i
public
AAA; /
Manufacturing Co.——
.......Common
Gerity-Michigan Die Casting Co..——..—.Common
Globe-Union, Inc.———.——Common
Joy Manufacturing Co..
—....Common
• ;
demption on July 1, 1946.
The balance of new pre A
ferred stock will be sold to
underwriters, to be selected
by competitive bidding, for resale to the public. Offer¬
ing* price, to the public will be filed by amendment.
j'*
reserves
—None named.
the right to exchange such stock on the basis of one
share of new preferred for each
$100 par value'of old
preferred plus a cash adjustment. All outstanding snares
of old preferred not exchanged will be called for re¬
A:>A
holders
.Common
1946
Eaton
registration statement for 25,000 shares
(par $10).
For details see issue of
Offering—Company has granted
Company
Offering—Company will offer to holders of
7% preferred, $6 preferred and 5%
$50 preferred stock
«■
Bowser, Inc
capital stock rights to subscribe at
$20 per share to new
at rate of one share of new
for each share held A
stock
by amendment.
27,
15,
Avon Allied Products Inc...Preferred and
Common
stock
registration statement for 220,000
($100 par).
Dividend rate
a
preferred
a
stock
t
.Preferred
.....
from
common
Hershey
on
Business—Recording
phonograph records.
Mfg. Corp........Common
Co.,
& Transmission
Cuban Atlantic Sugar Co.—Preferred and Common
Frailey Industries Inc
Class A Stock
Hearn Department Stores, Inc
Common
National Distillers Products Corp....
Common
Shares
and distribution of
Preferred
—...
April 9, 1946
Curtis Companies
lnc., Clinton, Iowa
March 30 filed 46,050 shares common stock
filed
Gas
Common
—
Bonds, Preferred and Common
($2; pax;).*
Shares are being sold
95,000 shares of common stock (par
by certain stockholders.
Under¬
are being sold
by stockholders, BlythA writers—Cruttenden & Co.
Offering—Price to public
& Co., Inc., and Union Securities
Corp. which are selling
$12.25 per share. Business—Mill work manufacturer.
47,500 shares each A Underwriters—To be selected by
Dallas Title &
Blyth & Co., Inc., and Union Securities Corp. Offering—"
Guaranty, Co.'
Ivfarch
35 cents).
Co..
///YY'A'.'v
;
•
Records, Inc., Hollywood, Calif.
Car
Stromberg-Carlson Co.
Tex-O-Kan Flour Mills Co
10,000
Common
Inc.————————.Common
United States Television
Offering—Price to public by
Business—Magazine publishers.
and
Common
—
Co.,
Pressed Steel
filed
expenses.
Balance of
Business—Parts for com- A amendment.
proceeds for working capital.
mercial
•
a
are
company;
shares, of
(par $25) and 10,000 shares com¬
Underwriters—Lee Higginson Corp. and
(par $5).
29
and
Lithographing Co.—Preferred and Common
(C. J.) Hendry Co
———.Preferred
Cuban Atlantic Sugar Co., New
York, N. Y.
March 21 filed 30,000 shares 5%
cumulative preferred
stock (par $100) and
175,000 shares of common (par $5).
Of the total 20,000 shares of
preferred and 137,500 shares
of common are to be
■
...
March
offering)
Havana
National
Shares
of
1946
Allianceware Inc.-.———Preferred
Flintkote Co.
Crowell-Collier Publishing Co., New
York, N. Y.
writers—Wertheim & Co.
program for
equipment.
April 8,
Co., Chicago, is named principal underwriter.
•
,
approximately $8,000,000 in 1946
a
:
,
will
corporate
(Showing probable date
and 39,305 shares of common by certain stock¬
holders.
For details see issue of March 7.
OfferingPrice of preferred to public is
$25 per share and of
common $13.50
per share.
Underwriters—Paul H. Davis
&
Subscription and offering prices
NEW ISSUE CALENDAR
45,000 shares of common (par $5). - The preferred
5,695 shares of common are being offered by com-
and
pany
subscribe
as
unsubscribed
t
:
to make possible
share of preferred for
a
and
,
ferred stock will be
initially offered to common stockholders in ratio of three-fiftieths of a share
of preferred
for each share of common held
A
Carpet Co., New York, N. Y,
March 29 filed 125,000 shares
common stock
(no par)
of which 33,436 shares are
being sold by company 61150
by Harold & Wadely,
President, and 30,414 by Graham
Hunter, Vice-President, Treasurer and Secretary.
Un¬
derwriters—Reynolds & Co. Offering—Price to public
by amendment.
Proceeds—To finance
counts
inventories, ac/
receivable, general working capital.
v
>
•
Fleming-Hall Tobacco Co., Inc., New York, N. Yv
April
1
common
(letter
stock
of
notification)
(par $1).
Underwriter—Floyd D.
public, $5 per share, v
filed 20,000 shares of
Sale for benefit of S. C. Korn^
Cerf Co.
Offerings—Price to
"
(Continued
on page
1828)
=
;
THE COMMERCIAL
1828
1827)
(Continued from page
■
■
Co., New York,
Flintkote
March 19 filed
stock (no par),:
150,000 shares of common
For details see issue;
Offering—Price to public by amendment* :
Underwriters—Lehman Brothers.,
of March 28.
X-
i
SINCE PREVIOUS ISSUE
INDICATES ADDITIONS
•
Registration
in
Now
Securities
Thursday, April 4, 1946
& FINANCIAL CHRONICLE
130,000 shares of common
demption, on or about May 1, 1946, of 9,000 shares of
$6 preferred stock at 105.
Business—Gages and pre¬
cision metal-cutting tools. / jV:;j ...£,• -
reserved
are
share.
per
!;
Transportation Co.
Gulf Atlantic
on
•
shares of common stock
17 registered 270,000
Jan.
t
for
(par 25c).
Common shares
conversion
issue of March
see
7.
of preferred.
For details
Offering—Price to public is $25
Underwriters—Richard J. Buck & Co.
Jessop Steel Co., Washington,
Ipii.-;""
March 28 filed
60,000 shares of cumulative convertible
For details see issue of Jan. 24. Offering—
preferred stock (par $25).
Dividend rate by amend¬
Fruehauf Trailer Co., Detroit, Mich.
1 i Price to the public will be filed by amendment. The
ment.
Underwriters—Paul H/Davis & Co.
Offeringsecurities are being offered initially for a period of
March 22 filed 125,000 shares of cumulative stock (par;;
Price to public b,y amendment.
Proceeds—Approxi¬
15 days to present shareholders under preemptive rights
$100).
Dividend rate by amendment. .Underwriters—
at a price to be filed by amendment.
Holders of ap-, mately $825,000 of net proceeds to retire regulation VLehman Brothers and .Watting, Lerchen & Co.
For
Loan outstanding in amount of $1,435,432 as Of March 25,
proximately 200,000 shares have agreed to waive their
details see issue of March 28.
Offering—Price to public
1946.
Balance for additions to plant and equipment,
preemptive rights. The underwriter will receive 50,000
by amendment.
/.
■
•
Business—High-grade specialty steels.
five-year warrants to purchase common stock at a price
to be filed by amendment.
For these warrants the
•
•
Gerity-Michigan Die Casting Co., Detroit, Mich.
Joy Manufacturing Co., Pittsburgh
underwriter will pay the company 10 cehts each or a
March 27 filed 450,000 shares of common stock (par $1),
March 27 filed 51,400 shares common stock (par $1)1
total of $5,000.
Underwriters—Principal underwriter is
of which 300,000 shares are being sold by company and/
Shares being sold by Adams Express Co. (35,600) and
'■Allen & Co.''
1•':■/< ■/:>//"; ;:
•_
American International Corp, (15,800).
150,000 shares by certain stockholders. ( Underwriters--;
Underwriters—
•
Hamilton Trust Shares, Denver, Colo.;^/:fy/;:'/:^:i
Buckley Brothers, Mercier, McDowell & Dolphyn, Ames,.;
Hallgarten & Co. and R. W. Pressprich & Co.
Offering
Emerich & Co., Inc.; and Dempsey & Co.
March 29 filed for fully-paid type certificates.
General < •--Price to public by amendment,
Offering—
Business—Mining
Price to public by amendment.
Proceeds—Company. Distributor—Hamilton' Depositors Corp. Offering—At ^ machinery and equipment.
will apply proceeds to pay a note to Associates Discount #
market.
Proceeds—For investment.
Business—Invest¬
•
Kansas City (Mo.) Fire & Marine Insurance
Corp.; $200,000 to retire 1,967 shares of cumulative 6% j, ment company,
,
1
Co^
preferred stock ($100 par), including accrued dividends,V;
March 28 filed 50,000 shares of common stock (par $10).
Harrisburg (Pa.) Gas Co.
balance to finance increased inventories and payrolls.^
Underwriters—First Boston Corp.
Offering—Shares are
Business—Manufacture of raw die castings, principally
March 19 filed $2,200,000 first mortgage bonds due May /
being offered to common stockholders of record May 11
for the automotive industry, also automobile hardware
1, 1971. Bonds will be offered for sale at competitive
at rate of one share of new stock for each share of com/
and plumbing hardware and bathroom accessories.
bidding and interest rate filed by amendment. Undermon held.
Price by amendment. : Subscription rights
writers—To be filed by amendment.
For details see
expire May 24.
Unsubscribed shares will be sold to
Giant Yellowknife Gold Mines, Ltd.
issue of March 28.
Offering—Price to public by amendunderwriters who will offer/them to the public.
Pro/
on Feb. 21 filed a registration statement for 81,249 com¬
ceeds—Purpose of financing is to increase capital and
mon shares
($1 par, Canadian).
Shares are being of¬
surplus so as to assist company in writing an increased
Hayes Manufacturing Corp.
fered to residents of United States and Canada by
volume of fire and related lines of insurance and enter/
on Feb.
27 filed a registration statement for 215,000
Toronto Mines Finance Ltd.
These shares are part of
ing to a limited extent the casualty insurance field.
shares of common stock ($2 par).
Shares are being sold
a
recent offering of an aggregate of 525,000 shares
Kerr-McGee Oil Industries, Inc.
offered by the company in Canada to its own share- r
by certain stockholders. For details see issue of March 7..
Offering—Price to the public will be filed by amendholders at $5 (Canadian) per share.
on Feb. 28 filed a, registration statement for 60,000 shares
For details see
issue of Feb. 27.
Offering—The offering price is $5.10,| ment. Underwriters—Laird, Bissell & Meeds have with¬
of $1,20 cumulative convertible preferred stock ($22.50
drawn as underwriters.
'
j
^. 1
'
s,tf**'* par). For details see issue of March 7. / Offering—Price'
(Canadian) per share, or the United States equivalent.;;
.
(par $1).
,
,
,
,,
,
,
to offer 44,195 of
to public is $25 per share.
Underwriters—Straus &
Hearn Department Stores, Inc., New York, N. Y.
such shares in blocks of not less than five shares to
Blosser, Chicago. '
. «
«,
March 21 filed 100,000 shares of common stock ($5 par). /
shareholders of Frobisher Exploration Co., Ltd., of rec¬
Shares are being sold by Endicott Co., Inc., a Stockholder,
,
e
ord Dec. 15, 1945, as resident in the United States in
Keyes Fibre Co., Portland, Me.
>
:•
i
Underwriters—E. W. Clucas & Co., and H. M. Byllesby
the approximate ratio of one share for every 15 shares
March 28 filed $2,800,000 first mortgage bonds due ApriJ
& Co., Inc.
For details see issue of March 28, Offering jj
of Frobisher then owned by them, and to shareholders
1, 1966.
Interest rate by amendment.
Underwriters—Price to public by amendment.
of Ventures, Ltd., of record Dec. 15, 1945, as resident
Coffin & Burr, Inc.; Paine, Webber, Jackson & Curtis,
in the United States, in the approximate ratio of one j
C. J. Hendry Co., San Francisco, Calif.
\
Estabrook & Co., E. H. Rollins & Sons, Inc., and H. M.
share for every 20 shares of Ventures then owned by
March 20 filed 24,000 shares of preferred stock, 5J/2%
Payson & Co. Offering—Price to public by amendment.
them.
The balance will be offered in Canada and the
Proceeds—To redeem $1,800,000 4
cumulative (par $25).
Underwriters—First California
% first mortgage'
United States to such persons as Toronto Mines Finance,
Co. Offering—Price to public $25 per share.
For details
sinking fund bonds not later than May 31, 1946, and bal¬
Ltd., may determine, who may include officers and
see issue of March 28.
^
ance, with additional company funds, will • be used -to
employees of the company.
Underwriters—Toronto
defray the cost of construction and equipment of the
'• ' Hoffman Radio Corp., Los Angeles, Calif.
Mines Finance, Ltd., 25 King Street, West Toronto, is
1:
Hammond plant. Business—Molded pulp products. / '
named underwriter.
It is wholly owned and controlled
March 30 filed 120,000 shares common stock (par $1).
Mines Finance Ltd. intends
Toronto
,
-
Ventures, Ltd. 1
'
■/';
Kingston Products Corp., Kokomo, Ind.
Offering—Price to pub¬
Proceeds—Company intends to use S March 25 filed 148,448 shares of common stock (par $1).
•
Globe-Union Inc., Milwaukee/ Wis.
Shares are being sold by certain stockholders. Under¬
$97,125 for redeeming ,its preferred stock and approxiMarch 27 filed 120,000 shares of common stock (par $5)
Offering—Price to
mately $400,000 to retire short-term bank borrowings, h writers—Alison & Co., Detroit. * :
of which 39,000 shares are being sold by company and § Any balance will be used for working capital. Business :! public by amendment. For details see issue of March 28/
SV&■''V-V..' -W..V
'•
•' w./.• Xh-K
-v
\V\
*'
81,000 by certain stockholders.
Underwriters—Gold-' —Radio receivers, phonograph radio combinations, etc.,
Linn Coach & Truck Corp.
and special electronic equipment.
man, Sachs & Co.
Offering—Price to public by amend-;
'
,
!
v
!.
ment.
Proceeds—Will be added to general funds of the
(Formerly Oneonta Linn Corp.)
V
!'
•
company.
Business—Storage batteries, various elec¬
Hytron Radio & Electronics Corp., Salem, Mass.
on
Feb. 28 filed a registration statement for 250,000
tronic devices and parts for radio, television, radar, spark
March 29 filed 125,000 shares common stock (par $1).
shares of common (par 10c).
For details see issue of
plugs, roller skates, etc.
. fj '
"
March 7.
Offering—Price to public is $3 per share.
Underwriters—Herrick, Wad dell & Co., Inc., Offering—
Price to public by amendment.
Underwriters—Bond & Goodwin, Inc.
Proceeds—To provide
• ;
by its parent company,
' /'
Underwriters—Cohu & Torrey.
lic
$6
per
share.
>
<
.
•
•
•
*
,
.
,
■
Adolf Gobel, Inc.
,
.
~
expanding operations, also
Company intends to
subsidiary
recently acquired, $500,000 to equip new plants and for
working capital.: Business—Radio tubes.
!
adequate working capital for
registration statement for 412,899
(par $1).
Shares are being
sold on behalf of the Adolf Gobel, Inc., syndicate.
For
details see issue of Jan. 17.
Offering—Common stock
Jan.
on
shares
filed
10
of
a
common
regular market channels over the
Exchange at best price obtainable in
will be sold through
New York
small lots
Curb
so
as
not to unduly depress the
market.
The
proposed stock offering constitutes 63.9% of the com¬
pany's outstanding common stock. There are 12 mem¬
bers in the syndicate.
Underwriters—No underwriting
discounts and commissions are being paid.
'
Gold City Porcupine Mines,
Ltd.
registration statement for 600,000 shares
of common stock (par $1) Canadian currency.
For de¬
tails see issue of Jan. 10.
Offering—Company is offer¬
on
Jan. 4 filed
proceeds to be raised is $300,000 U. S. currency maxi¬
mum, and $195,000 U. S. currency minimum, if all shares
are sold, and assuming in any event that all the shares
sold.
advance
>'
^
1
>
1
Underwriters—No underwriters named.
v
^
„
£'
(
?
/
r
i
Feb. 21 filed
Indianapolis
March
on
9
Power & Light Co.
offered
to
the
Underwriters—Allen & Co., New York.
Greenfield Tap & Die Corp., Greenfield, Mass.
Underwriters—Tucker, Anthony & Co. Offering—Price
public by amendment.
Proceeds—Company will ap¬
ply net proceeds, with additional treasury funds, to re-
statement for 120,000
Underwriters—Lehman
and The First Boston
'
Indianapolis Power & Light
Davis &
Co., A. C. Allyn & Co., Inc.,
and Emanuel & Co. Offering—Price to
ment.
public by amend¬
Business—Watches and other timepieces.,
%
•
Lynch Corporation, Anderson,
March 29 filed 75,000 shares
Ind.
of common stock (par $2).
Underwriters—Offering not underwritten.
OfferingCompany is offering the shares to holders of common
stock of record April 22, at the rate of one share for
each five shares held at $15 per share.
Management
expects to offer at $15 per share to key personnel, other
than the President, such shares of present offering as
March
each
8 filed
common
five
shares
a
stock (no
held.
Underwriters—Underwriting
Goldman, Sachs
group is headed by Lehman Brothers,
& Co. and The First Boston Corp.
v
,-
Jefferson-Travis Corp.
on
of
a registration statement for 30,000 shares
$1.25 cumulative convertible preferred (no par) and
Feb. 27 filed
par) and 100,000 shares of common (par 10 cents). Un¬
derwriters—Granbery,
Marache
& Lord and Bear,
Stearns & Co.
Offering—Prices to public by amend¬
ment.
Co.
registration statement for 142,967
par). For details see issue
of March 14.
Offering;--Company is offering the stock
to holders of common stock at a price to be filed by
amendment at rate of one share of new common for
on
March!28 filed 51,591 shares of common stock (no par).
to
public.
Brothers, Goldman, Sachs & Co.
shares of
by amendment.
N. Y.
March 29 filed 125,000 shares of common stock (par $1)*
Shares are being sold by Ira-Guilden, research, develop¬
ment and manufacturing consultant Of company.
Under¬
preferred stock (par $100). For
details see issue of March 14.
Offering—Company is ? are not subscribed for. Proceeds—Proceeds will be used
offering to holders of 140,591 shares of
cumula¬ to pay bank loans $581,000; to reimburse treasury for
tive preferred stock the opportunity to,exchange their
addition to Toledo plant $125,000; to discharge other
shares for the 120,000 shares of 4% preferred, and in ■ indebtedness
$150,000 and for working capital $244,000.
the event of over-subscription the 120,000 shares of new
Business—Manufacturing glass-forming machines.
preferred will be allocated on a pro rata basis, the .
F. H. McGraw & Co./Hartford, Conn.
exchange carrying a cash adjustment. Any unexchanged
balance of new preferred will be sold to underwriters
March 25 filed 36,000 shares of $1.50 preferred stock (no
shares of 4% cumulative
and 25,000 shares of common, which shares
may be issued to Allen & Co., New York, pursuant to
a
proposed standby agreement. * For details see issue
of Feb. 27.
Offering—Price to the public will be filed
bentures,
Longines-Wittnauer Watch Co., Inc., New York,
writers—Paul H.
filed a registration
Corporation.
a
x
'
registration statement for $45,000,000
first mortgage bonds due 1976 and $9,000,000 sinking
fund debentures due 1966.
Securities will be offered
for sale at competitive bidding with price and interest
rates to be named by the successful bidder.
For details
see issue of March 7.
Underwriters—Names will be filed
by amendment.
\
t
~
registration statement for $12,000,000
4% secured convertible debentures due March 1, 1956,
and an indeterminate number of common shares to be
reserved for issuance upon the conversion of the de¬
•
1
■
;
Feb. 27 filed a
and
Graham-Paige Motors Corp.
on
''
r
-
Illinois Power Co.
on
•
bank borrowing.*
King Products Co., Inc., a
Air
to
a
ing common stock to public at 50 cents U. S. currency
per share.
If company accepts offers from dealers to
purchase the stock, company will sell to such dealers,
if any, at 32.5 cents U. S. currency per share for resale
at 50 cents U. S. currency per share.
The estimated
are
to retire present
stock
•
For details
Ma ding
March
30
see
issue of March 28.
Drug Stores Co., Houston, Tex.
filed
$500,000 5%
sinking fund debentures;
50,000 shares of 55-cent cumulative preferred stock ($5
par) and 40,000 shares of common ($1 par). Underwrit¬
ers—Alex Brown & Sons, Rauscher, Pierce & Co., Inc.,
and G. H. Walker & Co.
Offering—Price of debentures
public is 100 and accrued interest from April 15, 1946.
Offering prices of preferred and common stocks by
amendment.
Proceeds—Of the net proceeds, $887,546
to
subject to change on basis of final audit in connection
property is to be applied to the pur-
with acquisition of
[Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
chase of
3,587 shares of the common stock of Mading's
Drug Stores, Inc.
Balance of proceeds will be applied
bonds
'
to
general corporate purpose, including the opening and
acquisition of additional stores.
Business—Company-
incorporated March 13, 1946, for the purpose of
acquiring all the outstanding capital stock of Mading's
Drug Stores, Inc., a corporation which has operated a
chain of drug stores in
'
and
notes
known.
Underwriters—To
Feb.
on
26
filed
are
common
a
holders.:
interest
statement
dividends.
and
15
filed
of
March
21.
jmon
stock
each
four
of
April
Rights will expire 3
filed by amendment,
will
held
p.m.,
:
of
on
Underwriters—Smith, Barney &
par
March 25
net
stock
use
.
1
filed
K.
Tire
exclusively to
Servicing
owners
Business—A
Feb.
28
filed
:
-
-
'
.
"
March 20 filed 200,000 shares of
common stock (par $1), "
is selling 50,000 shares and certain
stockholders
150,000 shares.
Underwriters—Bond &
Goodwin, Inc.
Offering—Price to public $6 per share. ■,
company
see
,
i
'
J
'
issue of March 28.
)
'
'
...
Public Service Co. of New
on
March
1
filed
a
.'5
Hampshire
*
registration statement for 102,000
($100 par).
Stock is to be of-
1
shares of preferred stock
fered at competitive
trust.
bidding, with dividend rate supplied
by amendment.
For details see issue of March 7.
Offering—Stock will first be offered to holders of com-
/
-i
,
.
pany's $6 and $5 dividend preferred stock on a share for
share basis, with cash adjustment.
Unexchanged shares*
of new preferred are to be sold to underwriters for resale to public.
All shares of old preferred not exchanged
of stock held
:
will be called for redemption at
$107.50 for the
-
Dec.
28
registered 20,000
Underwriters—Names
by amendment. Offering—Comwill sell at compettiive bidding, for an aggregate
price of $5,000,000, of not exceeding 500,000 shares of
pany
shares
of
common
stock
($100 par).
For details see issue of Jan. 3.
Offering—
Offering price to public $100 per share. Underwriting—
No underwriting.
'
•
*
,
•
Paulsboro
March
29
common
9,886 shares 6% cumulative preferred
(par $100); 31,000 common stock purchase warrants and
31,000 shares of common, issuable upon the exercise of
bidder.
each
new
Contemporaneously with issuance of
common
company will issue 102,000 shares of pre¬
ferred stock either under an exchange offer or for cash
Manufacturing Co., Paulsboro, N. J..
filed
stock, the number of shares to be determined,
by
,
as
*
0£fer i?',c°^^one^.
?.n Purchase of remaining 8,000
shares of 6% cumulative preferred and of the 31,000
c°^m°n stock purchase warrants by underwriter. Proc®e(is—Proceeds will be used for the purchase or con-:
struction of a plant and necessary machinery and equip*
Proceeds—New
stock
are
preferred
the warrants.' Underwriters—Butcher &
Sherrerd, Phil-;
adelphia.
Offering—1,886 shares of 6% cumulative preferred are offered in exchange (one new share for 10
old shares) for shares of 4%
preference stock ($10 par),
together with all dividends accrued thereon. Exchange
previously provided for in filings with the Commis¬
sion.
common
being issued
and
serial
of $2,000,000 on Dec.
stock and
retire
to
new. preferred
117,404 shares of old
notes
outstanding in the amount
31, 1945, and to provide funds for
construction and extension of the company's
plant,
erty and facilities.:-
v
:
.
prop¬
Queen Anne Candy'Co., Hammond, Ind.
•
:
,
March 28 filed 108,000 shares of common stock
(par $1).
Shares are being sold by certain stockholders.
Under;
writers—Link; Gorman & Co., Inc., Brailsford & Co.,
Shillinglaw, Bolger & Co., Kalman & Co., Inc., Straus
^1
;
& Blosser, Herrick, Waddell &
yM
/; ment to enable the manufacture of a new hard surface
Co., Sills, Minton & Co.,
National Distillers Products Corp.
O. H. Wibbing &
floor and wall covering developed by the company, but
Co., Mercier, McDowell & Dolphyn,
on Feb. 4 filed a registration statement for
'§Berwyn T. Moore & Co., Inc., and Irving J. Rice & Co.
379,894 shares ® not ^et manufactured on a commercial basis. Business
of common stock (no par).
Offering—Price to public $5,125 per shares
For details see issue of ft Hard surface floor and wall coverings.
Feb. 7.
Offering—Stock is being offered by the com- f
Peerless Casualty Co.
Red Top Brewing Co.,
pany for subscription to the holders of its common stock
Cincinnati, Ohio
' '
§ on March 8 filed a
of record March 20
registration statement for 50,000
pro fata, at the rate of one-sixth U
March 26 filed 150,000 shares of class A common stook
shares of common' stock (par $5).
of one share for each share held at
For details: see ;
$62 per share. Rights fj
(par $1).
Shares are being sold by certain stockholders.
issue of March 14.
Offering—Company is offering the
expire at 3 p,m. April 8. ■ Unsubscribed shares will be
Underwriters—Group is headed by Westheimer & Co.,
50,000 shares of common to common stockholders in
offered to the public by underwriters.
Underwriters—&
: Cruttenden &
Co.,tA. G. Edwards & Sons, Loewi & Co.,
ratio of 5 additional shares for each 11 shares
held,
Glore, Forgan & Co. and Harriman Ripley & Co., Inc.
Stein Bros. & Boyce, the Ohio
Company, and Piper,
at $14 per share.
Unsubscribed shares will .be
sojd to
Jaffray & Hopwood. Offering—Offering price to public
underwriters and sold to public at $14 per share." Un¬
National Skyway Freight
Corp., Los Angeles,
is $10.50 per share. For details see issue of March 28.
;
Calif.
derwriters—Herrick, Waddell & Co., Inc., New York,'
|
heads the underwriting group.
.March 30 filed a registration statement for
•
500,000 comRepublic Indemnity Co. of America, Tuscon, Ariz.
[mon shares (par $1). Underwriters—Bond & Goodwin,
Pennsylvania Electric Co., Johnstown, Pa.
March 27 filed 10,000 shares common stock
(par $10).
ilnc.
Offering—Price to public $5 per share. Proceeds—
March 21 filed $23,500,000 first
Underwriters—Not underwritten.
Shares are being ofmortgage bonds, due
Money will be added to working "capital to be used for
1976, and 101,000 shares of cumulative preferred stock,
iered by the company., Offering—Company is offering
general purposes, principally to finance
acquisition of
Series C, par $100.
Securities will be sold at competitive j 'new common to holders of common stock at rate of one
new planes.
It is estimated $1,275,659 will be used for
share for each two shares of common held at
bidding, and interest and dividend rates will be filed
$15 per
the purchase, of a fleet ? of new
planes better adapted
share.
by amendment. ; Underwriters—To be filed by amendr
Proceeds—To increase the capital and surplus
to cargo carriage as soon as
■I
they are available.
Manument.; Offering—Prices to public by amendment.
from $300,000 to $450,000, thereby
For
enabling company to
facturers of proposed new planes have set no
prices for
details see issue of March 28.
transact its casualty and insurance business in various
them, but it is estimated new planes will cost between
:: States which require the
foregoing amounts of capital
$125,000 and $250,000 each.
The corporation plans to
Peninsular Telephone Co.
and surplus.
Business—Company was incorporated on
|acquire between 10 and 20 such new planes,,. Business
on March
14 filed a registration statement for
Sept. 11, 1945, to engage in the casualty and indemnity
80,000
-Contract air carrier of cargoes and
shares of $1 cumulative preferred stock
passengers.
insurance business.
'
(par $25) and
26,799 shares of common stock (no par).
1•
For details:
Nation-Wide Securities Co., Inc., New
York, N. Y.
see issue of March 21,
•
Roberts & Mander Corp., Hatboro, Pa.
"Offering—Holders of outstanding
March 30 filed 300,000 shares of
capital stock (par $1).
100,000 shares of $1.40 cumulative preferred class A
April 2 filed 283,790 shares of common stock (par $1).
Distributor—Calvin Bullock. Offering—At market.
(par $25) of record April 3 are offered the privilege
Pro-;
Company is offering 175,000 shares and Stroud & Co.
|ceeds—For investment. Business—Investment
to exchange 80% of their holdings for the
company.
$1 cumulative
Inc. is offering 108,790 shares which it owns.
Underpreferred stock on a share for share basis, plug a pay¬ / writers—Stroud &
!•
New Haven (Conn.) Clock &
Co., Inc.
Offering—Price to public
Watch Co.
ment by the exchanging stockholder of an amount
^
per
[arch 29 filed 62,500 shares of
by amendment:
Proceeds—Company plans to use its
4%% cumulative con¬
.share to be filed by amendment.
The exchange privil¬
share of the proceeds for the payment of
vertible preferred stock (par $20).. Underwriters—Rey¬
$600,000 bank
ege will commence April 5 and will expire April 15.
nolds & Co.
loans; balance for working funds.
Business—Company
Offering—Price to public by amendment,
Holders of common stock will be
given the right to
was organized March 11, 1946, to take over the business
'roceeds—To repay a $481,360 bank loan
incurred by
subscribe to additional common shares on basis of one
of Roberts & Mander Stove Co. extensive line of ranges.
jredecessor, New Haven Clock Co., to redeem
additional share for each five shares of common held
4,376
shares of 6cumulative
preferred stock; balance for
of record April 3, 1946, at price to be filed
•
by amend¬
ourchase of new
Rockridge Gold Mines Ltd., Toronto, Can. ;k*
machinery, increased inventory rement.
Underwriters—Morgan Stanley & Co., Coggeshall
iuirements and working capital.
March 27 filed 300,000 shares of common stock
($1 par).
:
& Hicks, G. H. Walker &
Co., White, Weld & Co. :
Underwriters—Not underwritten. Company has granted
Norwalk (Conn.) Tire & Rubber
Co.
'
an
exclusive option dated Feb.
Perfex Corp., Milwaukee, Wis.
20, 1946, to Morgan U.
arch 21 filed
Kemerer of Toronto to purchase
$1,444,500 convertible debentures due
500,000 treasury shares
March 20 filed 7,500 shares 4J/2% cumulative
preferred
pnl 15, 1956.
Interest rate by amendment.
at 30 cents per share and 500,000
treasury shares at 40 cents
Under¬
stock (par $100) and 26,164 shares of common stock
writers—Carl M. Loeb, Rhoades &
per share, payable in Canadian exchange.
Co.
Offering—ComMr. Kemerer
($4 par).
Underwriters—Wisconsin Co. Offering—Com¬
any is offering to common
has assigned, to Mark Daniels, 371 Bay
stockholders right to submon stock is
Street, Toronto,
being offered to common stockholders on
cribe for new debentures at rate
in consideration of $1, the former's
of one $500 debenture
right and option to
basis of one share of new common for each five
shares
for every 70 shares of common stock held. Price by
purchase 300,000 of the 500,000 shares optioned to Mr.
held.
Price
by amendment.
Unsubscribed common
"
,1
j
Any of the 150,000 shares
issued under exchange offer will be sold for cash to
details
Palestine Economic Corp.
on
■
National Automotive Fibres, Inc., Detroit, Mich.
March 27 filed 178,000 shares common stock
(par $1),
of which 150,000 shares
being sold by company and
28,000 shares by California Cotton Mills Co., a stock¬
holder.
Underwriters—Reynolds & Co. Offering—Price ;*•
to public by amendment.
Proceeds—Repayment of bank
loans, $1,000,000; new plant in northern Ohio, $670,000;
balance for machinery and equipment at other
plants. ;
Business—Textile specialty business.
^
issue of March 28.
I
cash adjustment.
and
business
each share
;
f
underwriters and proceeds applied with
treasury funds to
redemption of unexchanged old preferred shares.
For
Corp.
share for
Yi
.
to issue the 150,000 shares of
of
basis with
a
one
>
Y
by amendment.
purpose
"
operators
Proceeds—It is con¬
common-law
150,000 shares of cumulative preferred
Dividend rate by' amendment. Under-
Names
.
•
see
;
,
,
supplied by amendment.
For details
/
Ind., Inc., Indianapolis
proposes
from Cities
Light Co. for the sale to the latter
value common stock.
2,000
restricted
—
of
$6 and
v
at price to be filed by amendment.
Union Oil Co. of
$105 for the $5 preferred, plus accrued dividends.
Un¬
owner of 212,234 shares
derwriters—To be filed by amendment. Y
(42.45%)
/Y; Y'Y-y
of capital stock of
Pacific, has agreed to purchase at
subscription p^ice all shares of capital stock offered and
•
Public Service Co. of New
Hampshire, Manches- -Y'.;
not subscribed.
Union Oil will acquire shares for invest- '/
ter, N. Hi/.-■■■■[,• :YyY:;/'':;vYYv;v.'' ■ V; Yy YYy
ment only.
Underwriters—None mentioned.
March 29 filed 500,000 shares of common stock
(par $10).
J
.
;
^
4
issue of March 28,
| California, beneficial
For details see issue of Feb. 7,
Offering—Price to the
public will be filed by amendment.
Underwriters—To
Co., Inc., Maiden, Mass.
see
Offering — Company
new preferred tor
refinancing at a lower dividend rate the
148,186 outstanding shares of old preferred 5% cumulative series A.
Exchange will be on a share for share
of
part
filed
(par $100).
writers
not
three-tenths of
on preferred will
be filed by amendment.
The statement covers 200,000
additional shares of common reserved against warrants.
of which
will
that
sufficient
registration statement for 150,000
shares of capital stock (par $1),
For details see issue
of March 7.
Offering—Company offers to stockholders
the right to subscribe for 150,000 shares on basis
of
(10c par). -Dividend rate
National
&
Pacific Airmotive
record
Jan. 29 filed a registration statement for
4100,000
shares of preferred stock, series A, with common stock
purchase warrants attached (par $1) and 150,000 shares
.
company
not
Ko-Op Rubber Welding System, Littleton,
receivables.,'
i
on
foe
extent
are
Stores.
templated that the proceeds shall be used for
operating
capital, to maintain stocks and inventories and to handle
April 8.
April 24, 1946.: Price to be
Morris Plan Corp. of America
common
the
Colo.
be
O.
of
Co. heads the underwriting group.
of
To
securities
participating member shares. Un¬
be sold without
underwriting.
Offering—Price is $1,000 per member share.
The sale
share of preference for
one
common
stock (par $1).
Offering—Price to
common
For details
amendment.
Public Service Co.
derwriters—Shares will
316,967 shares of new
being offered to holders of com-'
the basis of
on
O. K.
■"
a
are
shares
Power
$5,000,000
•
Offering—The
preference stock
Co., Inc., Pittsburgh, Pa.
Underwriters—Kuhn, Loeb & Co.
public by
see
registration statement for 316,967
shares of cumulative preference
stock, series A (no par)
convertible into common before June
1, 1956. Dividend
rate will be filed by amendment. For details see issue
of
new
retirement purposes,
Service
Monsanto Chemical Company
March
Pressed Steel Car
March 20 filed 100,000 shares of
amendment.
the $5,000,000 in cash which it is to receive
issue of March 7.
Offering—
Price to public will be $8.25 per share.
UnderwritersLester & Co., Los Angeles, Calif,
y :
Vv;Y;. y-. vyrY;ry /• ',
on
the
lor
stock (par $5).
For details
oy
Offering—Prices to public by amendment.
Proceeds—
proceeds will be applied to redemption and pay-
crued
,
registration
filed
of bonds, notes and preferred stock
aggregating
$58,327,406, including premiums, but exclusive of ac¬
for 133,000,
Of total 102,150 shares1
being sold b,y company and 30,850 by certain stock¬
shares of
oe
1829
on
_
ment
Houston, Texas, since 1927.
Appliance Corp.
rate
Net
proceeds from sale of
Mission
dividend
the preferred
stock by amendment after results of
competitive bidding
are
was
and
-
-
.
;
y,
r
1;
.
''
..
:
/
.
■
.
v
,
.
.
>
mendment.
>y
Unsubscribed debentures will be
purchased
underwriters who will offer, them
publicly. For de-
ails
see
issue of March 28.
Ohio
•larch
30
Public Service Co.,
filed
"
Cleveland, O.
$32,000,000 first mortgage bonds, due
976; $5,500,000 serial notes and 156,300 shares of
cum¬
ulative preferred stock
(par $100).
Interest rate on the
shares and
preferred stock will be publicly offered
by
underwriters. For details see issue of March 28.
.
•
:
Feb.
shares of
18
filed
common
a
registration statement for
stock
150,000
(par $1).
For details see issue
Offering—Price to the public will be filed
by amendment. Underwriters—Hay
den, Stone & Co.
of
Feb. 20.
at
30
cents
per
share.
Mr. Daniels plans to
market the shares optioned to him through the medium
of
Piper Aircraft Corp.
on
Kemerer
a
registered broker
or
brokers in the Unted
Offering—Price to public is 40 cents
funds.
ment
Proceeds—Proceeds will be
per
States.
share, U.
work, etc.
(Continued
oil page
S.
applied to develop¬
1830)
>
/V-.-:-'
■'
.
,
.
'txf-f:
v
\
/
COMMERCIAL & FINANCIAL
THE
1830
Now
Securities
(Continued from page 1829)
St.
1, 1976.
•
additional
projects.
-
.
chemical plants
'
,
ISSUE
Tennessee
and other related
' |
• ;
Texas
$3,750,000 first mortgage
competitive bidding with
Bonds will be sold at
Underwriters—
by amendment.
Offering—Price to public by
amendment.
For details see issue of March 28.
successful bidder
naming interest rate.
.
Dec.
26
filed
bonds
first mortgage pipe line
100,000 shares 4.10% cumulative preferred,|
($100 par) and 484,444 shares of common stofck
stock
a registration statement- for ;150,000
stock (no par). Shares are being sold
by H. F. Sinclair.
For details see issue of Jan. 3. Offering—Price to the public will be based on market
estimated at $18 per share.
Underwriters—Kuhn, Loeb
on
•
,
Names
Houston;
■
1966;
due
00;* Sinclair Oil Corp.
bonds due April
& Transmission Co.,
Gas
March 19 filed $35,000,000
(Mo.) Light & Power Co.
Joseph
March 22 filed
of
Registration
in
ADDITIONS SINCE PREVIOUS
INDICATES
tion
Thursday, April 4, 1946
CHRONICLE
Oi the common stock, 350,000 shares are to j|
purchased by underwriters from company, and 134,444
are
being purchased from certain stockholders:
■Underwriters—Stone & Webster Securities Corp, and
($5 par).
shares of common
be
shares
White, Weld & Co. Offering—Prices to public by amend¬
& Co.
0:;,0 • ;
.
•■■^0
ment. For details see issue of March 28.
.
* > ••
800,000 shares
Sonotone Corp., Elmsford, N. Y.
in overriding royalty in oil, gas and surplus.
Under¬
•
Tennessee Gas & Transmission Co.
■ * 'j\
writers—Cohu & Torrey, New York, and Yarnall & Co.,
March 25 filed 60,000 shares $1.25 cumulative convertible
March 30, the thrift plan of Tennessee Gas & Trans¬
Philadelphia.
Offering—Company is offering the cer¬
mission Co. filed registration statement covering cohpreferred stock, series A (par $20). Underwriters—Van
tificates of interest to stockholders on basis of one share
Alstyne, Noel & Co/' Offering—^Price to public is $25
tributions to be made by the employees of the company
interest represented thereby for each share of common
to
trustees amounting
to $250,000 in the aggregate.
per share. For details see issue of March 28.;
stock held at 58-cents per share.
Proceeds—Company4 Purpose—The thrift plan was established by the comwill use net proceeds in exploring and developing the
•
Steep Rock Iron Mines Ltd.' (Ontario, Canada) % pany in July, 1945, in order to provide a. program
24 tracts and in acquisition of equipment and materials
whereby eligible employees of the company might fur¬
March 27 filed 500,000 shares of capital stock (par $1).
and to pay obligations incurred in- drilling for test wells, ther their own financial independence.
The plan whs
Underwriters—Otis & Co. Offering—Price to public by
designed to provide a means whereby the contributions
amendment.
Proceeds—Net proceeds will be-added to
Samson United Corporation
of the participating employees of the company and the
on March
15 filed a registration statement for 125,000 V the general funds and will be available for general 1 contributions of the company might be invested rXbr
corporate purposes, including the acquisition of plant
shares of cumulative convertible preferred stock (par
the benefit of such employees.
, $
and equipment at an estimated cost of $642,000, additional
$8) and 166,666 shares of common stock (par $1). Divi¬
dend rate on preferred will be filed by amendment. ;■ exploration and development work and for general work¬
Tex-0-Kai»FlourlV!illsCo.*Dallas,Texasj '
ing capital purposes. The statement said the cost of bringThe 166,666 shares of common which constitute 51.4%
March 19 filed 40,000 shares of cumulative preferred
I. ing the B Zone into production was substantially greater
of the outstanding common are being sold by Clarkstock (par $100).
Dividend rate by amendment. Under¬
than had been originally estimated.
The diversion of
Babbitt Industries, Inc.
For details see issue of March 21.
the Seine River cost approximately $3,599,000 as against J writers—Kidder, Peabody & Co. and Rauscher, Pierce
Offering—Prices of preferred and common to public will
0
Offering—Company is offering to holders
an
original estimated cost of $1,249,475 and approxi-l & Co., Inc.
be filed by amendment.
Underwriters—Burr & Co.,'
of 26,710 shares of 7% preferred stock an opportunity
v mately
$892,000 was expended in the dewatering of
Inc., heads the underwriting group.
-•••
"
to exchange such stock for new preferred on a -sh^re
Steep Rock Lake as against an original estimated cost
of $513,300.
•
The increase in actual costs over original : for share basis, with an adjustment of dividends. Under¬
Scranton Electric Co., Scranton, Pa.
writers will purchase any unexchanged new preferred
estimates was occasioned by a number of factors in¬
March 29 filed 58,500 shares of cumulative preferred
shares plus 13,290 additional shares of new preferred
cluding, among others, an acceleration of the develop¬
stock and 1,214,000 shares common stock (par $5). Com¬
which will be offered to public at a price to be filed;
ment program due to war demands; unforeseeable phys¬
mon stock is being sold by American Gas & Electric Co..
ical difficulties encountered; increased labor costs; in¬
b,y amendment. ;• Business—Flour milling, terminal grain j
(parent).
Underwriters—To be filed b.y amendment.
elevator operations, feed milling and bag manufacturing. |
creased costs of materials, ; supplies, machinery and
Offering—Price by amendment following sale of securi¬
For details see issue of March 28.
r
equipment; inability to procure an adequate supply of
ties at competitive bidding.
Proceeds—Net proceeds to
skilled workmen; high rental costs, and other factors
be received from sale of cumulative preferred, together
Textron, Inc.
with treasury funds will be used to redeem 53,248 shares § due to abnormal wartime conditions.existing -during the
on Dec. 28 filed a registration
statement for 300,0001
of $6 preferred at $110 per share.
Common shares are: preproduction period. Business;—Production of iron ore
shares of .5% convertible preferred stock, (par $25). For
by open-pit mining operations.
.
* » * • ri,
being sold by American Gas & Electric in compliance
details see issue of Jan. 3. Offering—Price to public will
with a divestment order of the SEC, and proceeds of
Corp., Houston, Tex.
Salt Dome Oil
•
March 28 filed
.
certificates of interest for
:
'
.
r
♦
sale will be received by
American Gas.
,
|
■■■
Scranton-Spring Brook Water Co.
; ;
registration statement for $23,500,000
March
19 filed
b'e filed by
amendment.
'Underwriting—To be filed byl
March 27 to withdraw regis-]
amendment. Request filed
>
registration statement for 67,731 :
shares of convertible preferred stock (par $50).
Dividend rate will be filed by amendment. ;■*- For details see
issue of March 21.
Offering—Company is offering to
holders of common stock pro rata rights to subscribe
to new preferred on basis of one share of preferred
for each four shares of common held of record April 8,
at price to be filed by amendment.
Price to the public
will be filed by amendment.
Underwriter—First Boston
Corp. is named principal underwriter.
on
I-;.-?.
?
Stromberg-Carlsoit Company
;v;
a
tration statement.
♦
-
^
\
f
'
(Ariz.)' Gas, Electric Light & Power Co.l
first mortgage bonds, due March 15, 1976, and 100,000
March 29 filed 147,000 shares common stock (no' par).
shares of cumulative preferred stock (par-$100).
In¬
Underwriters—To be filed by amendment.
Stock conterest and dividend rates will be filed by amendment.
.stitutes all of the outstanding common stock of Tliscon
For details see issue of Feb. 14.
Offering—Bonds and
and is owned by Federal Light & Traction Co., Latter]
preferred stock will be sold at competitive bidding. Un¬
is selling the stock to comply with the requirements of
derwriters—Names of underwriters will be filed by
Section 11 (b)(1) of the Public Utility Holding Com¬
amendment.
f
(
pany. Act and the orders of the SEC-directing the-dis-F
position by Federal of its interests in various companies,]
•.
Segal Lock & Hardware Co., Inc., New York, N. Y.
•
Sun Oil Co., Philadelphia, Pa.
.
including Tuscon. After the sale Tuscon will have ceasedl
March 30 filed 738,950 shares of common (par $1). Un¬
to be either a subsidiary or an affiliate, of Federal, or]
March 29 filed 15,000 memberships in the stock pur¬
derwriters—Floyd D. Cerf & Co. Offering^Compan;/
its parent, Cities Service Power & Light Co., or latter's]
chase plan for the employees of Sun Oil Co. and its
is offering to the holders of common stock, 7% pre--,
:
parent, Cities Service Co... Offering—Federal will off<h|
subsidiaries and 100,000 shares of common stock (no
ferred stock and $2.50 cumulative preferred stock, rights
the stock for sale at competitive bidding and price to]
par).
Offering—Every employee of the Sun Oil Co.
to
subscribe
for } 738,950
shares
of : new common
and such subsidiaries as company designates who has
-public will.be filed.by .amendment " ~
»
at rate of one share of common for each two shares of
been in their employ for a period of one year-or more
any such stock held.
Price by amendment.
All un-jJ
•
Union Electric Co, of Missouri, St. Louis, Mo.
is eligible to become a member of the plan.
Under the
subscribed shares will be sold to underwriters who will
March 29 filed 130,000 shares of preferred stock (ncl
provisions of the plan, each employee may contribute
offer them to the public.
Proceeds—Net proceeds will
par).
Dividend rate by amendment;. Underwriters^]
to a plan up to but not exceeding 10% of his yearly
be added to working capital and used for purchase of
Names of underwriters by amendment. - Offering—New]
compensation, which contributions are paid into each
additional machinery and equipment for modernization
preferred will be issued in connection with an exchange]
of present facilities, for the addition of new departments, % plan during the first year, although each plan continues
: offer! and company will ask for competitive; bids: withf
for a period of five years, when it is then liquidated.
etc., and possible acquisition of new businesses.
The
The plans are administered by trustees,
The contribu¬ respect to exchange plan and purchase of the new stock
company may apply, if deemed advisable, approximately
Company offers to exchange new preferred stock forf
tions made to the plan will be used to purchase com¬
$650,000 to the redemption of both classes of the pre¬
130,000 shares of $5 preferred, on a share for share basis]
pany's common stock principally on the* open market
ferred stock outstanding.
Business—Builders' hardware,
with a cash adjustment.
Unexchanged shares will be
at not exceeding market price, although company will,
security % hardware, key duplicating machines, safety
purchased by underwriters at competitive bidding, anc
if the trustees are unable to purchase stock on the open
razors and razor blades, etc.
offered at a price to be filed by amendment.
Furppsemarket, sell common stock to the trustees. Tt is stated
«To refinance old preferred stock at a lower dividend
•
it is not anticipated that the trustees will purchase more
Selected Industries, Inc.,, New York, N. Y.
rate.
Company proposes .to redeem, on or about Jurnl
March 30 filed $6,900,000 debentures due April 1, 1961. j than 50,000 shares of common for the members of the
1945 plan or 50,000 shares of common for the members il7, 1946, all shares of old preferred not exchanged ay
Interest rate by amendment. Underwriters—Union Se¬
J
'
, «
' '
of the 1946 plan.
'
'
0 .$110 per share. A ,
curities Corp. Offering—Price to public by amendment.;.
Proceeds—Net proceeds,, together with other funds of
IJ'-; Union Wire Rope Corp.f;;;W>:^;x:»:^V-v; •
Super-Cold Corp., Los Angeles, Calif. ,
company, will be used to pay $6,900,000 bank loans which
on Feb. 4 filed a registration statement for 42,000 shard
bear interest at the rate of 2% per annum and mature
March 29 filed 200,000 shares common stock (par $1).
capital stock, (no par). For details see igsue of Feb. 7]
March 1, 1947.
Business—Investment company.
Underwriters—Sutro & Co. and Van Alstyne, Noel & Co.
Offering—Company will offer the 42,000 shares for *|
Offering—Price to public $6 per share.
Proceeds— .'period of two weeks after the effective date of registrar
•
Sharon Steel Corp., Sharon, Pa.
tion for sale to stockholders at $15.50 per share.
Sharer
Approximately $575,000 will be applied in payment of
April 2 filed 150,000 shares common (no par).
Under¬
not purchased by th r stockholders will be offered bj
existing current liabilities, including bank loans; $200,000
writers—Mellon Securities Corp.
Offering — Price to
for purchase of machinery and equipment, and remain¬
.underwriter at $15.50 per share. Underwriters—P.
public by amendment.
Proceeds—Net proceeds with
Brooks & Co'., Inc., New York.
der
for working capital.
Business—Manufacture and
on
Feb. 8 filed a
Tuscon
•
,
'
,
,
>
-
,
.
cash from present funds will be
of
all
outstanding
convertible
applied to redemption
$5 preferred stock at
$105 per share and accrued dividends which, exclusive
of accrued dividends from April 1, 1946, will require
the
sum
of
carbon strip
•
Shell
$6,270,600.
Business—Hot and cold rolled
steel and stainless and alloy.
Union
Oil Corp.,
New York, N. Y.
v
$125,000,000 25-year debentures due April
1, 1971.
Interest rate by amendment. Underwriters—
Morgan Stanley & Co.
Offering—Price to public by
amendment.
Proceeds—To pay $5,835,000 serial notes,
due Jan. 15, 1947-53; $66,155,000 2%% debentures, due
July 1, 1954, and $13,071,000 2%% sinking fund deben¬
tures, due Jan. 15, 1961.
Remainder for corporate pur¬
poses.
Company plans expanding operations of sub¬
sidiaries and affiliates, comprising, among other things,
March 27 filed
replacement of and additions to crud'e oil reserves, ex¬
tension and improvement of refining facilities, installa¬
sale of
•
refrigeration units.
Taca Airways,
March 30 filed
;
S. A., New
'
.
'
United Biscuit Co.
York, N. Y.
500,000 shares common (par $5).
& Co. and G. H. Walker
writers—Hallgarten
'
of America, Chicago,
III.
March 22 filed $10,000,000 debentures due April
1966.
Interest rate by amendment. Underwriters—Gold]
v;
Under¬
& Co.
man,
Sachs & Co.
Offering—Price to the public
b|
amendment. For details see issue of March 28.
amendment. Proceeds—
No specification of the net proceeds has been made.
•
United Cigar-Whelan Stores Corp., New Yorl
Such portion of the net proceeds as is not applied to:
;00:. N. Y.
Vvv
the repayment of bank loans will be placed in the
March 29 filed 50,000 shares of common stock
(pa|
general funds of Taca and used by it, or by subsidiaries
30 cents).
Underwriters—No underwriting agreement
or
associated companies, together with other general
exist.
Offering—Under an agreement dated Feb.
funds for the repayment of bank loans, for capital ex¬
1946, Arthur S. Lavine and Sam S. Lavine of Miaih]
penditures, including the purchase of flight and ground
Fla., have agreed to sell to Whelan Drug Co., a whollj
equipment, for additional working capital, additional
investments in subsidiaries, etc.
Business—Holds ill- : owned subsidiary of United, the retail drug and liquo]
store business heretofore conducted by them in Miam|
vestments in subsidiaries which principally are engaged
Miami Beach and Coral Gables, Fla., under the namt
in aif transportation of passengers, property and mill
of Dade Pharmacies and Dade Cut-Rate Liquor Store!
in
Offering—Price to public' by
CQuntries in Latin America.
Volume 163
Number 4478
THE COMMERCIAL &
FINANCIAL CHRONICLE
1831
Agreement provides that $425,000 of agreed cash con¬
siderations to be paid to Lavine, at the option of
Whelan,
may be paid in shares of
stock of United
common
Whelan at a stated price per share
Whelan. • Messrs. Lavine have made
to
be
1, 1976.
Bonds will be sold at
competitive bidding with
interest rate to be filed
hy amendment. UnderwritersNames to be filed
by, amendment.
Offering—Price to
the public will be
filed by amendment. For details see
•issue of March 28.
'/'/ viv-V-.i- /•• ;/;/ "•
/"' / ■■
Cigar-
fixed
by
arrangements
for the sale of this stock to the
public.; Purpose—T<u
cquire business.
Business—Sale of cigars, cigarettes
nd related
and
•
no
'
$1 dividend convertible
shares common stock
United Funds Inc., Kansas
City, Mo.
;■
Utility Appliance Corp., Los Angeles, Calif.
March 29 filed 80,000 shares
cumulative preferred stock,
series
($15 par), and
•
*
,
80,000
($1 par).
Underwriters—Bate' /'J/f,
V
man, Eichler & Co., Los Angeles.
Offering—Price to
United Income Fund shares,//
public is $16,625 a share for
preferred and $5.25 a share
nderwriters—-Herrick, Waddell & Co., Inc., New York
for the common.
nd Kansas
Proceeds—Company plans to apply
City/ Mo. Offering—At market.
Proceeds
$1,100,000 of the proceeds to the purchase of the busi¬
-For investment, j
larch
filed
27
320,000
Business-—Diversified
.
riVestment company,
United States
New
,
,
management J:
'
.
ide
Television Manufacturing Corp.,
Y.
York, N.
roceeds—Purchase; of
additional
test
$3
and
-huipment, working capital.'
United Transit
.larch
29
filed
an
Co.,
per
^
,
-
.
number
of
12
shares
of
March
•
14.
filed
stock.
Offering—Price
For
to
details
public
issue
see
is
common
per
Bay
Virginia Red Lake Mines, Ltd.
24 filed a registration statement
for 220,000
shares of capital
Underwriters—Harriman Ripley & Co.,
stock, par $1 (Canadian).
For details
nc.
Offering—Price to public by amendment.
Busi-;- see issue of Aug. 2.
Offering—Offering price to public
28 cents United States
ess—Through eight subsidiaries company operates local
funds.
Underwriters—Willis E.
ransportation systems.
Burnside & Co., New York.
Universal-Cyclops Steel Corp.
Yank Yellowknife Gold
eb. 13' filed 3,500 shares of common; stock (letter of
ptification).
Shares are for account of certain stock\
k
Feb.
on
13
filed
a
shares of common
stock, par $1.
of Feb. 20.
/
Light Co., Salt Lake City
arch 20 filed $32,000,000 first
mortgage bonds due May'
cents per;
J. J.
share, United
States
Business—Valves and
•
Weeden &
28
Co.,
filed
($50
—
and
capital.
pipe fitting made of steel, iron,
shares
1,501.6
None
warehouses
working
4%
shares
named.
Calif.
convertible
preferred
(no par).
common
Offering
—
Price
of
pre¬
stock
common
Young Radiator Co..
.
for
100,000
is also
Company
of
common
exercise of warrants.
upon
of Feb. 7.
for issu¬
reserved
For
details
issue
see
Offering—Price to public is $8.25
per share.
to purchase common stock at
$8.25 per
share prior to Feb.
1, 1951, 20,000 were issued to stock¬
holders on recapitalization and
20,000 are being sold to
Of
issue
is 30
Underwriters—
Carrick, Ltd., Toronto, Canada.
finishing
two
to
Jan. 29 filed a registration statement
shares of common stock
(par $1).
1,000,000
see
added
San Francisco,
10,000
par)
be
registering 40,000 shares
price to public
funds.
will
bronze and brass.
ance
For details
Offering—Offering
Utah Power &
balance
on
Mines, Ltd.
registration statement for
N. Y.
convertible
$40 per share. .Proceeds—Entire proceeds will become
part of the general funds and used in the
company's oper¬
ations.
Business—The company is mainly engaged in
the buying and
selling of municipal and corporate bonds,
and preferred and common
stocks.
The company deals
primarily with dealers, banks, insurance companies and
other financial institutions.
June
on
$4,500,000
ferred stock is $50
per share and of the
ashville, Tenn.
Underwriter—A, G. Becker & Co.
the
Underwriters
of
50-cents
share.
Underwriters—Mark Daniels &
Co., 371
Street, Toronto, Canada, is named underwriter.
J
hares (par $1): The common shares
being offered areutstanding. and are owned> by Equitable Securities
orp., A. C. Allyn & Co., Inc., and Paul M. Davis of
olders.
and
stock
registration statement for 250,000
a
common
filed
equipment; $220,000 for acquisition of
equip¬
March
on
Richmond, Va.
intermediate
&
Verity Porcupine Gold Mines, Ltd.
share.,
.-
Gaffers
29
March
production /
,/
of
ment.
stock (par 50 cents).
Underwriter—Willis E. Burn& Co. /, Offering—Price to
public,
assets
Sattler and Occidental'
Stove Co.; $200,000 for
plant additions and tooling and
the balance of
approximately $230,073 for additional
working capital.
Business—Air
conditioning
"
~arch26 (letter of notification) filed
99,000 shares of comon
and
ness
Walworth Co., New
York,
debentures due
May 1, 1976, and 20,000 shares of cumulative
convertible
preferred stock (no par).
Interest and dividend rates
by amendment.
Underwriters—Paine, Webber, Jackson
& Curtis and E. H. Rollins
& Sons, Inc.
Offering—
Price to public
by amendment.
Proceeds—Of the pro¬
ceeds company will
apply $4,590,000 to redeem $4,500,000
20-year first mortgage 4% bonds due
April 1, 1955, at
par plus accrued
interest; $619,120 to restore working
capital expended for redemption of entire issue of
6%
preferred; $800,000 for improved foundry and
,
•
products, drugs, liquors and related products
merchandise.
•
March
40,000 warrants
underwriters at
*1
10
cents
per
share.
warrant
Under¬
writers—Van Alsyne, Noel & Co.
?
Prospective Security Offerings
(NOT YET IN
REGISTRATION)
".iV-
AlderVs, Inc., Chicago, III.
14 stockholders will vote
ay
on
approving
an issue of
First series of new
,000 preferred shares (par $100),
eferred
t
to
will
consist
exceed
ehman
and
American Airlines, Inc.,
be
through sale of
rred stock; (2) for
'eferred stock (par
90,568 outstanding
19
include:
on
authorization of 600,000
$100); (3) for 5 for 1 split-up of
common shares.
vote
of common stock
also will be acted -upon,
which will be used to retire
working, capital.
*;v k-
..
°
^
\
o
underwriter;
Central Ohio
Light & Power Col/ Findlay, Ohio ^
subsidiary of Crescent Public Service Co., is
uesting bids up to 12 noon (EST)
April - 9 for the
•';.
1
International Minerals & Chemicals
Corp^
Chicago, III.
.
mpanyy a
834
unissued
filed with SEC in March provides
be merged with American Public Service
into corporation known
as
Central & South .West
rp,
Sufficient number of shares of new
J :
„
.
to purchase additional shares on
share for each five common shares
held.
';v. /
-
...
..
;•
^
International Paper < Co.,
,
,
«•;
..
:
M
«
•
,
r
I
-
,(,
it
New York, N. Y.
; pany expects to
:& ferred.
offer share for share for
existing
pre¬
be sold at competitive
bidding to provide funds,'
/.
"
.*.
?
u,
'
otherwise supplied, to retire
vr*
outstanding preferred
Jersey Central Power & Light Coi, Asbury
American. Possible bidders: Glore, <;
Park,
gan & Co.; Lehman
Brothers-Lazard Freres & Co.
Jan. 19 company filed with New
int); Smith Barney &
Jersey Board of Public
Co.-Harriman, Ripley & Co.;/
int);- Blyth & Co., Inc., Stone & Webster
Utility Commissioners plan to refund existing $21,861,500
Securities
5M>% and 7% preferred, first by reduction to
^p. and First Boston
Corp. (Joint). "
$12,500,000
which will be replaced with lower dividend
shares.
New
Columbus & Southern Ohio
stock will be sold at
Electric Co., Colum¬
competitive bidding.
bus, Ohio
<
,^
1
••
'
*
t
>
>
1
r.*
cks of Central and
.
istration of 744.000
shares of
t week as
&
Act.
stock expected
Sale will be-by public,
bidding.
;
Consolidated Edison Co. of New
York, Inc.
May
Kansas City Southern
Ry., Kansas City, Mo. 5
14 stockholders will vote on proposal to issue
$14,000,000 additional first mtge. bonds
;
to
refund
$14,000,000
Mtge. 5s.
1
'■
,f,'
:
Louisiana
&
as
part of program
Arkansas
Ry.
1st
•
//v'
rch 18
stockholders granted
management's request to
system's properties said to be
forerunner to
:nd $304,240,000 callable
debentures. Contemplated
/
bonds; to be sold at competitive
tgage
ially, it is said, involve $100,000,000.
Michigan Gas & Electric Co., Three Rivers,
Mich/:;//
bidding,- would
.
/
■
t
ferred shares
filed with
oh to
sell
"y
'
'
■
■
Michigan P. U. Commission applicompetitive bidding 876,568 common
at
■*:-/
// I
■
;
//."
:
! •/'
/ ■"
/' /
-
/ -L-i.
-
\
//'
;t
.r
/';
April 1 filed with SEC application to sell (a)
$3,500,000
first-mortgage bonds due April 1, 1976, (b) 14,000
pre¬
Consumers Power Co.,
Jackson, Mich.
ch 14
was
Telegraph Co., /
:
reported
that
company
is preparing
$30,000,000 new debentures. Morgan Stanley &
Halsey, Stuart & Co., Inc. are probable bidders.*
>•
'
"
\
:
bridge^ Mass.
%':*< v.41
1
-
V.'w
-
S '-
Association, Cam-
"
.
*
<
"
March 27 filed
amended-recapitalization plan with SEC
providing for sale at competitive bidding of
(a) 22,- /
500,000 20-year sinking fund collateral trust
bonds, plus
(b) sufficient
shares of new common stock out of the
original issue of 2,300,000 shares to
supply $11,500,000.
Proceeds will be used to retire at
par and interest out¬
standing debentures. Bidders may include
Halsey, Stuart
& Co., Inc. (for bonds
only), Bear, Stearns & Co. (for
stock only), First Boston
Corp., White, Weld & Co.-/
Kidder, Peabody & Co. (Joint).
'1■
'
;i'!
New
York, Chicago & St. Louis RR., Cleveland,
Company has issued invitations on April 16 for the sale
$41,500,000 40-year bonds. Halsey, Stuart & Co., Inc.
Kuhn, Loeb & Co. probable bidders.
of
and
Northern Pacific Ry./St. Paul, Minn.
It
was
reported March 29 that company has under con- Z
the - refunding of
$55,000,000 collateral trust
sideration
4V2% bonds due 1975 and the issuance of
a
Prospective bidder, Morgan Stanley & Co,
Ohio Edison Co.,
new
series. "
,
Toledo, Ohio
March 21 filed with Ohio P. U.
Commission application
to\sell through competitive bidding 204,153
shares
of
stock.
Proceeds for expansion,
bidders include First Boston
Corp.; Glore,
common
etc. Probable
Forgan & Co.;
White, Weld & Co.-Shield & Co. (Joint); Morgan Stan¬
ley & Co.
•'/;
■•
common
a
preliminary to divestment by Continental
Electric Co., parent
pursuant to Utility Holding
npany
it
,.;p/fj)•/ /: \;4 '
'
V
; * *.
./•;
> v.i '■ ■!:>J.\
New England Gas & Electric
approving sale of 145,is proposed to
give
Stockholders will be asked May 8 to authorize
an issue
of 400,000 shares of a new class
of preferred, which com¬
.
Co. and
It
rights
one new
,
shares.
f
t company
company
<-./
will vote on
common
stockholders
basis of
,
ird amended
plan
30,
,
Telephone &
^
May 20 stockholders
to
Central & Southwest Utilities
Co., Wilmington,
/; Del.
///*' /
:'
Denver, Colo.
■
to issue
w
-
held, requiring approximately 228,000 shares. Proceeds
for working
capital.
W. E. Hutton & Co. will be
/';
States
,
I
voted to offer Stockholders
rights to
subscribe for one additional share for
each seven shares
-
stock
'/
the proceeds
Hudson Motor Car Co.,
Detroit, Mich.
authorizing new
rtgage.
Company -contemplates
refinancing / oneird of
outstanding funded debt (Dec. 31, 1945, $12,665,0) through sale of equal amount of bonds under
new
rtgage* through competitive bidding.
1
Mountain
March
outstanding preferred
April 1 directors
on
uld
increasing authorized
changing the par of 200,000 authorized preferred
$10 par to $5 par. The sale of 104,138 shares
of
Bangor & Aroostook RR., Bangor, Me.
12,000 shares of hew preferred
iace existing. $6
preferred.
-
also
on
standing preferred issues, viz.: 4% series B at
105; 4%%
series C at 107 % and 4% series D at
108, through a new
issue of convertible
preference stock.; Registration state¬
ment expected to be filed
shortly giving old preferred
stockholders right to exchange their stock on
share, for
share basis with cash
adjustment. Union Securities Corp.
probable underwriter,
'
v
>
stock from
and for
rchase; of
.
250,000 shares (par $10) to 450,000 shares
(par $5) and issuing one additional share for each of
the
97,931 shares now outstanding.
Stockholders will
Middletown, Ohio
vote
vote on
common from
*t\ 'j-i-V
will
consider;
Co., Toledo, Ohio
April 15 stockholders will
g are concluded.
stockholders
to
Probable bidders
■
is contemplating redemption of 450,000 ]
eferred shares in near future
provided certain negotions now being carried on with
respect to the financ-
16
formed
and 4s.
Mellon
De Vilbiss
ril 2
company
ril
directors
this
pre-;
shares of
American Rolling Mill
Co.,
of
Securities Corp., First Boston
Corp.,
Dillon, Read & Co/Inc., Coffin &
Burr, Halsey, Stuart
& Co., Inc., and
Spencer Trask & Co.
?
^
i
recapitalization plan
for raising of $80,000,000
debentures and convertible
;
March 26 stockholders voted
plan to refund three out¬
Co./Detroit, Mich.
committee
refinancing of $65,000,000 3y2S
/
(1)
ar
March
underwriters.-
New York, N. Y.
pril 17 stockholders will vote
nich will provide:
Detroit Edison
40,000 shares, (dividend rate
Proceeds for working capital,
associates will
Minneapolis-Honeywell Regulator Co., Minneapolis, Minn.
of
4V4%).
Brothers
shares, after capital adjustment. Proceeds for
extensions/
.etc. •••••-:•;.:
(par $10).
;
.>
•-
bidding. ;
.
(par $100) and (c) $400,000 common stock
All issues would be sold through
competitive
// '
U.
•../. ./
:...-.
/,
Panhandle Eastern Pipe Line
Co., Chicago,
March
18
directors authorized
III.
filing with SEC of
$50,000,000 serial debentures; proceeds for refunding, etc.
Public offering expected at end
of April by syndicate
under joint
management of Kidder, Peabody & Co., Mer¬
rill Lynch, Pierce, Fenner &
Beane, Glore, Forgan & Co.
and Halsey, Stuart &
Co., Inc.
'
,
.
...
Pennsylvania Company, Philadelphia
Bids will be received
April 9
of $30,000,000 secured notes.
fied in bid.. Probable bidders:
(Noon EST) for purchase
Interest rate to be speci¬
Kuhn, Loeb & Co., Halsey,
Stuart & Co., Inc. and
Kidder, Peabody & Co.
.
i
/ (Continued
on
;
the
page 1832)
.
THE COMMERCIAL &
1832
Thursday, April 4,194<3
FINANCIAL CHRONICLE
.'
Security Offerings
Prospective
'■''i '
'
1
■'
33 If
(NOT YET IN REGISTRATION)
-
v
(Continued from page 1831)
.
,
issue (a)
and
applied to the SEC for permission to
$23,500,000 first mortgage bonds series of 1976,
•
Standard Gas & Electric Co.,
(b) 101,000 shares of series C cumulative preferred
with
stock,
issues
dividend
a
to be sold
are
rate not
through
to
p3'
stockholders will vote
13
Philadelphia,
from
stock
shares
125,000
to take care of future
increasing
on
Gas
&
*'
,
(N. Y.)
Electric Light & Power Co.
*; *
Consolidated Edison Co. o$ J
New York, Inc. applied to New York P, S. Commission j
for authority to issue $9,000,000 30-year debs., int. rate
not to exceed 2%%, to be guaranteed by parent.
Issue!
to be sold through competitive bidding.
Possible bidders
include Halsey, Stuart & Co., Inc.; Morgan Stanley &
Co.; Lehman Bros., Harriman Ripley & Co. and Union
Securities Corp. (Joint); Blyth & Co., Inc.; Shields &
Co. and White, Weld & Co. (Joint); W. C. Langley &
Co.; Merrill, Lynch, Pierce, Fenner & Beane and Kidder,|
Peabody & Co. (Joint).
t
,
,
.
,
-
Jan. 21 company and parent
has requested permis¬
Electric
-
common 3
(25c par) to .500,000 shares, >
financing.
Yonkers
Chicago, III.
either through private
United States Rubber Co.,
May
.
sale or in the
shares of common stock of
Co. Sale is preliminary to
liquidation of the Power & Light as ordered by the SEC,
Standard
A
Light Corp.
&
other
at an early
debentures
1,160,000
markets
public
-V
Power
sion of SEC to sell,
competitive^ bidding.
Philadelphia Dairy Products Co.,
•
Standard
Both
4%.
exceed
property, creation of additional working capital and
corporate purposes.
No immediate: issuance of
additional stock contemplated.3/.3'/'3
i
,
Company it is understood expects to. register
date for public offering an issue of 15-year
and additional income debentures.
Pennsylvania Edison Co,, Altoona, Pa.
,
March 28 company
Hoboken, N. J.
Pittston Co.,
y
New York, N. Y.
April 16 stockholders will vote to increase authorized
common from 1,918,412 shares to 2,500,000 shares, so as
to have available shares for the purchase of additional
,
basis4-sooner or later theyl
form their internal economic |
in contact with each other on a power
The War of Nerves Subsides
British Business
Men's Dilemma
in
(Continued from first page)
September last telling his audi¬
not to subscribe to Govern¬
ence
loans, he
ment
sharply criti¬
was
cized in the City.
Meanwhile
,
The
He then
,
*
-
.
"If the representative of the Soviet Union would be willing:
33 3
the condition
of unforeseen1 circumstances which
;|he has attached to the evacuation of Iran, and if his Govern¬
the Government and the business
ment
gives
the
to
Council
an
that
assurance
the
withdrawal
of the whole
ably.
The aggressive haste with
which the Government is v pro¬
effected by May 6 at the latest, then I would say that Iran
ceeding with its nationalization
scheme, and the hostile references
made
various Socialist Min¬
seeking gratuitous popu¬
isters,
brought the period of "benevolent neutrality" to a close.
ors,
-
The Government's
&
'
14
V
:
/
'
icy
original pol¬
to secure the collabora¬
was
tion of businessmen
far
as
as pos¬
sible, and to that end it was pre¬
pared to fix fair, and even gener¬
ous, terms of compensation to the
of nationalized:, in¬
tA-'
stockholders
It
dustries.
the
enlist
was
also
anxious
of
assistance
to
promi¬
nent. businessmen in the manage¬
of the nationalized indus¬
ment
Businessmen
tries.
called
upon
drive for
■:
■
333>'
an
also
were
to collaborate in the
increased
that has been
going
on
production
during re¬
cent weeks.
Jn face of the
by
and
rank
the
hostility displayed
Ministers, and even more
some
of the
file
Parlia¬
Soviet forces from Iran, unconditionally, is
*
'
*
'
.
*
*
#
Accomplishments of Mr. Byrnes
crisis encountered!
afforded^ For this thel
peace-hungry world have Mr. Byrnes to thank.
Hisl
chance for settlement of the immediate
by the Council in the Iran controversy is now
UNO and the
of leadership, judgment, and shrewdness, coupled with overall!
statesmanship, have given us this breathing-spellj His technique hagl
provided all parties to the controversies with a way to withdraw!
from the "limbs" on which they had over-extended themselves. Par¬
sense
opportunity for (belatedly)!
living up to their obligations under Teheran without losing face.
1
He
has immeasurably elevated the United
States positioi
from its Teaderless
status at London, and from that of men
would
further at this, time the consideration
be willing not to press
3of the matter which it has brought to the attention of the Secur-
.
3
intermediary
ity Council, provided, of course, that these matters remain on 3:
the agenda of the Council for consideration at any time."
33
by
larity, to industrialists and invest¬
a
"
ticularly, he has given the Russians the
*
world have deteriorated consider¬
of the
But
.
»
request for his suggestion for further .Cojuncil procedure.
said;
systems may be,.
College
(Continued from first page)
.
to; withdraw
relations 3 between
•
*
; /
,
At Hunter
33;,'
bound to clash no matter in what
are
the
between
Soviet
and. ; Great
which
Britain
it
33." Thus the; first step has been taken in paving the way to an
to the entire Iranian problem, and toward the
as a respected functioning;body.
But it is only a modest first step! 3 Primarily, it must be realized
amicable solution
world-wide validation of the UNO
that
dealing only
still
are
\ye
With
question of the
the procedural
requested postponement of the airing of substantive discussion of
the controversy.
Then, too, the Soviet troops must actually be
evacuated by the first week in May; duress in connection with oil
concessions must not be used before or after that event; military
installations must not be
lqft; Soviet political agitation must not be
practiced in Azerbaijan or otherwise through the
party.
If the Soviet does not conform thus, the
sitting indefinitely with "the Iran situation';
*
3 /
as
satellite Tudeh
Council will be
an,
headache.
ever-continuing
j
Tn any
event, the Soviet presumably is still on the minority side
on
basic questions involving the whole future of the Organiza¬
tion.
Mr. Gromyko did. not take his walk - merely because he
-
enjoys a game of hide-and-seek. .The Russian leaders have showed,
time and again, from Dumbarton Oaks through Yalta to Hunter,
that they are wedded to the principle that their country has the
right to sit in judgment on itself—and that supposedly, the world's
business can stop just because one country refuses to/play'unless
it
can
make its
own
f
rules and decisions.
mentary Labor Party, many busi¬
have
nessmen
to
come
the
that
clusion
any
collaboration
present Government is
out of question.
When the Prime
Minister appealed for support in
the production drive, he was re¬
minded by Mr. Oliver Stanley, a
■i
Conservative
Minister,
his appeal was inconsistent
former
'
3;333':;3
that
with
v.1 a :1,,:
at
the
.......
time
same
on
busi¬
by members of his Gov¬
nessmen
[ i PfyXfri
the torrent of abuse show¬
ered
■
ernment and of his
party.
When
Minister of Fuel
Mr.
'f
Shinwell,
Power,3 looked
and
A
businessmen
1,131
tional
Coal
number
of
to
for
around
serve
Board
on
he
the Na¬
met
a
refusals.
Rightly or
wrongly, several coal mine own¬
ers
he approached felt that it
would be most inappropriate for
'if'
Is Acutely
the
with
If',
The Fundamental Issue of International
con¬
them
collaborate
to
in
the
na¬
Cooperation
,/
Involved
present issue is not'confinetfto the immediate Soviet-Iran
controversy, but much more importantly goes to the root of world
organization, to world Government in its various currently suggested
forms, and to the fundamental obstructing factor of national sov¬
ereignty. The Soviet's adamant insistence on the veto since Dum¬
barton Oaks—followed more temperately by the United Statesr-has
For the
been
the manifestation of the difficult stumbling-block imposed by
3. Secretary oj State Byrnes delivering his
proposal. At the right is Col. Hodgson, the
Delegate;
v
forsake sovereignty. While it is true that the
Senate would not have ratified the Charter "Without
the unwillingness to
United
States
the protection of sovereignty, the only, veto power we ever Wanted
was that over involvement in-armed conflict, i The Russians, on the
other hand, from
over
all
doings
Yalta op have wanted to possess the right of veto
of the Council—involving discussion as well as
At San Francisco this Russian demand was strenuously op¬
action.
posed by Messrs. Eden, Stassen, and Evatt. Although Stalin "compro¬
San Francisco by agreeing to forsake
the vetoing of discussion, the Soviet powers-that-be. have. directly
back-tracked on this at London, and again now, so dramatically, here
mised" the major deadlock at
at Hunter. 3
!
3a-v3
33.3;.; 3:.'.3'3.33 ' 3\'/ ''33':'3303'
,
V 33v3
historic compromise
aggressive Australian
*
,
Comprised at both San Francisco and London. Now the Unite
States is functioning on all cylinders with a non-appeasiru
but
of
fair,! policy ■ of its own; and on behalf of the ; very lift
One of the cardinal dangers which the Organization
the UNO.
being used as a tool by either of
must avoid, is that of
the parties ill
The Soviet would have done this
secured the quashing of the hearing of Iran's
the present controversy,
if
it had
indirectljl
complainl
for "taking over" Azerbaijan anl
under duress had been a fait accompli*Therf
until after its aggressive maneuver
Iran
northern
oil
continuing disagreement concerning; the has also been a danger of Iran unfairly using the Security Council
propriety of vetoing discussion reflects the basic differences be¬ as a purely political instrument in improving the oil deal which
shj
businessmen who have accepted tween the Anglo-Saxon and ; the Russian ideologies—between the
may fully have intended to make. '
.1
positions on the Coal Board or democratic concept of the general right of discussion, and the authori¬
;
;
An outstanding coup of Mr. Byrnes was his restraint on Husseif
other
governmental
bodies are tarian principle holding that opinion and discussion are to be con¬
now subject to sharp criticism on
trolled
by central authorities (the Big Powers in the Security Ala, the Iranian representative, whom he himself had been
the part of those opposed to col¬
Council)."
...\;v.3/3',; ■ 3:3,'
-33
-3 instrumental in getting before the Council. When at his first'
laboration.
They are even de¬
The net result of the veto technique now.in force as decided.in ments of testifying Ala wandered from the field of opposing postj
scribed as "quislings" and are ac¬
the San Francisco Charter", was that tjie Security Council affirma¬
ponement- to that of substantive matters, the Secretary of State lot
cused of having
turned traitors
tively can: (a) discuss disputes without veto obstruction; (b) inves¬
to
their class.
A campaign is
not a moment in interrupting him.
,3
3-
tionalization of their property.
Those coal owners and other
And
"
this
critical
and
,
highlj
moj
.
.
I
It
.
against
waged
makes
the
them,
and this
Government's task of
enlisting the collaboration of busi¬
nessmen
even more
difficult.
In¬
tigate, which
The principal danger in this liberal veto-power, as
own
paralyzing the Organization, as its giving sanctification
by the Organization while wrongdoing is being done—thus mak¬
ing a tool of the Organization. In this way, and if the vital im- ;
portance of the sovereignty-veto problem be not fully realized, J
owners
on
the
Coal
Board. Left-wing Socialists would
see the industry run en¬
tirely by politically "dependable"
elements.
The Government re¬
prefer to
fused
to vield to
(Continued
these criticisms.
on page
1833)
UNO
may
lull the people
of the
optimism.
„
;
;
world
into
.
ajfalse
sense
.
And in a larger sense: as long
powers, tnere are in
■3
the wond
"recess"
in
historical
his
get Mr. Gromyko
back to the
of
the fundamental
the previous
as, in addition to the Big
otner sovereignty-conscious states1 needs.''
:3
1
3•3-''
v
principles for which he had battled so
sessions.
At the previous session he had won
33'
"
"*3"3'
■
■'
.
proceedings without/sacrificing ai
hard i|
his poirl
of insisting that the Iranian representative be admitted. .Then Mj
Byrnes' formula dextrously offered a way for Mr3 Stalin to g<]
off his'"Limb;" and at the same time a compromise for the Counc
of i
in- dealing with a member against whom it hasn't the power to takl
punitive action, and whose continuing cooperation it wants anj
Five
San Francisco, lies not so
much in
supporters for appointing
mine
coal
*
by this writer time and again from
reiterated
statement which brought about ti
Friday, Mr. Byrnes acted in the only way discernible tl
Again
a
,
at the same time the
Government is also attacked by
■.
be vetoed by any one of the Big Five powers pro¬
party to the dispute; and (c) take punitive action
against aggressors, which can be vetoed whether the' veto-er is a
party to the dispute or not.
1
.33/ 3 :
'
cidentally,
its
can
vided it is not
v.-a
:
r-:»
'K
;;
■'>
Volume 163
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
"
The
main point of*
rificed in 'compromise,
troops in Iran
was
not being used to
are
X'$
;;• ••
!■": 'fii;■;:>•
:':
which Mr, Byrnes in no way sac¬
the^Tequest for assurance that] Soviet:
'■
coerce
the smaller country.
*•* " -Xi> *
„
:
nations, and
troops from the whole of Iran will be completed within
six weeks.
"Y;
•
Iranian
representative
'■"■V'y '/Y'
has
stated
that
the
dispute
with
■
.
the Soviet Union arises from the continued
presence of Soviet troops
in Iran beyond the date stipulated for their withdrawal in the Tri¬
the Iranian Government.
;
.
.
,
Britain
Should be governed by
during such a critical1
period of her existence, business¬
men are not
politicians, and have
Socialists
to make the best of
afford to stand aside, and in
any
high taxation reduces their
salaries to a negligible addition to
,
their incomes.
The diehards
by
possibility of the presence of Soviet troops in Iran being
or coerce the Government of Iran in ncgotia-
regarding the
Government
and
status
the
of
Iranian
Council
the
might
be
the
representatives of the two Governments'] and
report whether or not the reported withdrawal of troops is condi¬
tional upon the conclusion of agreements between the two GoverntMAnfe
am
ofViAt*
cnhippf?
'v'-
•
,
"
t
,
' 1*
1
*
Yy/Y'
\ / :•
•'
•'
One
of
the
most
■r'r"- ;v"]("v v .!//<*'v.-
*
\.V
much better
a
i
to his fellow-diplomats.
This overzealousness here brought about the
rize boner of Thursday last, when the afternoon
apers carried streamers announcing Gromyko's
ttendance at the closed Council meeting—only to
ed-facedly learn later that the gentleman had enaged in nothing more cosmic than an automobile
It
that the trouble was caused by the
elief (or wishful
thinking) of the eager reportrs butside the Russian
Consulate that the
o
between East- and West. Ambassador
of France< standing between Mr. Gromyko of Russia, Sit Alexander. Cadogan of Great
Britain, and
U. S. Delegate Stettinius.
gap
Henri Bonnet, Delegate
M. Bonnet
good-naturedly waved acknowledgment of his
but after further wrangling the
procrastinators
won
a
until
error—
' Mil *1'
«
economic
that
re¬
how
situation
Indeed, it is widely
if
there
should
be
change; of Government before
a
the next general election in
1950,
it
be
would
.change
* a
for
the
worse; the moderate Government
of, Mr. Attlee would have to give
way to a
Bevan,
the
Minister "of
present
are
in.
,
All businessmen
such
,be
Lange Pinch-Hits
#
*
Left-wing Government,
headed* probably by Mr. Aneurin
;■
a
Home Run for Gromyko
with
agree that
Government I there could
a
possible collaboration.
no
the
moderate
elements
But
in'
the
Even though the
■
-
.
/y
§p
?§Jif |||^
|® r §Y/Jy
BliMh
>
Security Council has "sold ex-Gromyko" after last business world and in the Con¬
Wednesday's walkout, the Soviet has at all times been
fully, though servative Party fear that uncom¬
unofficially represented—in the person of the Polish
delegate, Dr. promising attitude towards the
Oscar Lange.
This former faculty-member of American Universi¬
Attlee Government might assist in
ties—Chicago and Stanford—who recently reacquired Polish citizenbringing to power an extremist
Government.
British
•
m M
men
an
gMy
are
business?
certainly confronted by
unenviable dilemma.
*
'
4
.
BBirt
jf?' it
Rf JW
Offered si $59 per Shr.
If:f JBaB
J JB9
Allen &
1
to the
|
Co.
public
Andrei Gromyko
V' /
/
April 3 offered
on
a new
i'v/'YY!.
is'sue of 100,r
$50
safety,'
'
Henri
*
•
say
hotel attendants).
„Y
The Mediator From France
Bonnet, French Ambassador
and Delegate to the Council,
than any of the other participants, is
full-fledgedly playing the
ole of mediator. It was he who was the
liaison with Dr. Lange of
>oland; who tried to stave off a vote on the Soviet's doomed postacre
>onement
motion; who made
deadlock' thru
a
an eleventh-hour
attempt to break the
three-man mediating committee chairmaned
by
imself; and who argued strongly to extend this week's intermission.
convertible
priced at
sbare." Each share of
a
new
preferred stock is convertible in¬
to 1 6/10 shares of
*
refusal
•
$2.25
Bliss Co; The stock'wa^
...
to answer any questions.
Z
•
At the Plaza Hotel, where the Ambassador is
staying, city detecives are in constant attendance at the
street entrances, in the lobbies,
md in the 15th floor
hallway outside his apartment. His own phone
learly always has "cut-off" service when he is at
home, and the
lotel operators furnish additional
service by cutting off the phone
n the room of his
9-year old daughter during sleeping hours. Most
>f the time the Bortsch and balance .of
the family's meals are pre>ared by them in their own rooms
('for
of
preferred stock (no par) of E. W.
Gromyko's passing nod of the head was a "yes" to their query as
attendance, which query had been shouted at him. But even
.
shares
000
day the august "Times" thought the ride important enough
on a city street
map,
The same dignified "Times" on
Sunday devoted a major portion
)f its front-page
story, and a full inside account, built on Gromyko's
1
matter
no
Health.
chart in full
ran
the
believed
ever,
his
nere
office
would become.
compromise
April the third anyway—so all present got nearly
everything
that they wanted.
*
Coincidenatlly M. Bonnet's careless error may possibly stimulate
interest in the new global times system which has
just been suggested
to UNO by Count
Coudenhove-Kalergi. Whether this would solve
he next
0
the Government could
seems
emerg-
ng
sure
in
grave
France bridging the
remarkable phenomena connected with ; this
faithfully duplicating the performance of their
colleagues at San Francisco, where M. Molotov's
every discernible trip to the washroom was the
signal for a mad scuffle by the curious. Possibly
Mr. Gromyko has taken on added
glamor here,
because of his silence, in contrast to Molotov's
nning to the press, and divulging his side of
controversies (as in the Argentina situation) to
ide.
so
overwhelm¬
main
being able to figure out which day they
;
Gromyko. The enterprising newshawks are completely hypnotized—or imagine their public is—
by the supposedly overwhelming glamor of the
Soviet's
mysterious
♦'Orientalism." - They
are
so
not
are
With its
it
as
Govern¬
mons,
conference is the way the press is "going all out" for-and-after Mr.
hem before he did
the
ing majority in the House of Com¬
the troubles of M. Bonnet and the
many other perplexed people, how¬
is still questionable because, as the "Herald Tribune" comment
indicates, comprehension of it depends on the citizens of one world
'
9
Wayward
Yvy
Others
disguise,
,
'
•
I;-v
"With this information, the Council will then be in
position to decide what should be the next step."
,
down
about this.
Secretary-General to ascertain at once from the Soviet Government
fcnd the Iranian Government through their representatives and report
from
in
bring
ments,
President of the Council request the
tQ the Council at its meeting on Tuesday, April 2, the existing status
of negotiations between the1 Iwo Governments, and particularly/to
complete.breakdown
blessing
a
would
up by the Council should there be any developments which threat¬
ened to retard the withdrawal of troops.■'
ascertain
them
conver¬
industry and of indus¬
be
purposes unconditional. "In that event, there might be no
peed for the Council to go into the substantive issues, provided it
reserved the right to both parties to have the case immediately4aken
"I would suggest that the
of
a
trial production in general would
practical
"
Some
of the coal
;
able to satisfy itself that the assurances of the Soviet Government
as to the prompt withdrawal of troops from Iran are in fact for all
'
such.
as
sation that
adequate and exact informa¬
negotiations between the Soviet
Government,
impressed
They feel
frankly admit in private
more
the
not
arguments.
ought to be
treated
tions with the Soviet Government.
"If the Council could obtain
such
are
that the Government is the
enemy
of industrialists and
them.^
used fto influence
tion
;
now
"But the members of the Council must be solicitous to avoid
any
break¬
a
industry through
case
proceed to consider the sub¬
dispute between the Soviet Union and
Iran and to recommend the withdrawal of Soviet troops as requested
by Iran, Soviet troops could not be withdrawn from Iran in a sub¬
stantially shorter period of time than that within which the Soviet
i
thoroughly
a
In their opinion
have accepted office under'
the Labor Government could well
stantive issues involved in the
Government has declared it to be its intention to withdraw
Government's
who
still proceeding between the Soviet Government
Government, and the Council is not informed as to
the exact status of these negotiations.
k
>
s
Council should
the
of
have agreed to serve on the Coal
Board as patriots who place coun¬
try before class and party.
In
some
instances the businessmen
are
"Even if the
views
uncompromising opponents. They
feel that, unfortunate as it is that
mismanagement, would be a major
national disaster, and they
regard,
therefore, the businessmen who
and the Iranian
•
the
.
down of the coal
"The assurances given to the Council by the Soviet representative
have not been completely unqualified but are subject to change in
event of 'unforeseen
circumstances.'
Apparently negotiations on
certain matters
of the banking and busi¬
community does not share
bad job.
Government, but the existence of such understanding has
Pot been confirmed by
section
ness
■
partite Treaty of Jan. 29, 1942, and has requested the Council to
recommend their prompt and unconditional withdrawal.
y
"The Soviet representative has stated that the withdrawals of
troops were being made in accordance with an understanding with
the Iranian
provide convenient scape¬
if things should go wrong.
A by no means inconsiderable
goats
a gross public "boner" in
Calculating American and
European time. He pleaded for an extra
day against Mr. Byrnes'
suggestion that 96 hours was ample time to wait on Mr.
Stalin, be¬
cause European time is ahead of
American time.
Mr. Byrnes imme¬
diately showed his ability as a "scientist" as well as a
diplomat,- by
giving M. Bonnet the following simple lesson:
"My good friend from
France says that while it is the
29th here
today,, in Eastern Europe
it is the 30th.
Well, ninety-six hours from
now, on the 2d of April,
it will be the third in
Moscow,
So my good friend gets what he
wants."
:
■
'
from Iran; that it is;the intention of the Soviet Gov¬
ernment to proceed with the withdrawal of its troops as
rapidly as"
possible and that, barring 'unforeseen circumstances,' the withdrawal
"
would
.
draw its troops
or
intelligent,
reply, lead him to
•;.
"Assurances have been given to the Council by the Soviet repr¬
esentative that the Soviet Union has already commenced to with¬
"The
page 1832)
thing, the presence of
businessmen
in
key
positions
For'one
the stabilizing '.'bridge" be¬
This is altogether
for in attaining a balance of
power presumably lies France's main
hope for reestablishing herself as a real factor in the
postwar world.
M. Bonnet's zealousness to
amplify the time for the Soviet's
•
;
five
as
tween Russia and the Western Powers.
Y'-*
Mr.;Byrnes* ProposalV;: Y Yv/;
'
of all Soviet
(Continued from,
de: Gaulle
'.
Following is the full text of the Byrnes statement:
"Mr. President; I should like to make a' statement.
-
This conduct is in line with the
policy embraced by both General
and President Gouin in
working to establish France afe
the leader of the small
concern,
Net
common
from
proceeds
stock.
the
sale
will be used to the-extent of $l>r-
Delegate %Oscar Lange of Poland and Ambassador Hassein Ala,
representative (extreme right), exchanging jibes over
895,381 to redeem the 42,109 shares
-Iranian
/
"vodka and caviar parties."
/ „•
v]
Y; V
■
of 6% convertible preferred stock
•'
ship, although strongly resenting implications that he or his country
"satelliting" or "stooging", for Russia, holds Gromyko's end up
most alertly, when necessary.
And his good sense of public relations
is extended even to the social sphere, in his giving of the
only party
for the press—cum Park Central caviar.
Although
Dr.; Lange's technique has annoyed his antiSoviet hearers, all admitted that he got in a telling
blow—eliciting
the best laugh—against Hassein Ala, after the Iranian had
explained
that his country's constitution forbids its entry into
negotiations with
a foreign power while the latter's
troops are still on its soil./ Dr.
Lange was quick to "riposte" with the rhetorical inquiry as to
whether, then, if not negotiating, the Prime Minister had been galare
lavantin? and vodka-izing around Moscow.
/Dr. Lange:
"I
am
not clear
(Continued
on
one
on page
•
point which
1834)
was
mentioned
and
30,096 shares of 5% conver¬
tible
preferred
outstanding,
sum
presently
stock
plus
.
an
.
additional
equal to accrued dividends to
redemption
date,
and
$l;500,000
will be applied toward the reduc¬
tion
of
outstanding
unsecured
notes. Of the balance of the pro¬
ceeds,
approximately
$1,270,000
will be used to complete the com¬
pany's
expansion
cluding
'plant construction,
in¬
program,
machinery and equipment.
new
,
,
;..
v\.
:
• •
N. Y,
Dividend No;
board
of directors
. ,..
.1791
t.
. . , . ,
.1788
>,.,
Says
Ala., Chairman ;E. J. McAuley, President of the First Na¬
tional Bank, Mobile, Vice-Chair¬
man; J. B.
Haslam, Vice-Presi¬
dent of the Birmingham Trust &
Savings Company, Birmingham,
Secretary. Members of the Credit
Committee representing each of
gomery,
.1835
Pennsylvania Securities Section
on pages 1792 and 1793.
in
under "Securities Now
*See
; ■_
1946
27,
^
(W a 11 e r Kennedy, Executive
Vice-President,
as
alternate);
in
fl
,•
nounced
TIRES, TUBES & SUNDRIES
Conshohocken, Pa.
The Board
M. Hanes,
of
ly
dividend
on
the outstanding
of the
50c
bama with
Treasurer
'
v
$10y2 million to sup¬
the
brings
This
State.
that
funds represented in
;
C
first source of credit will
always be the individual bahk,"
Mr. Hanes said.. "The second is
the combination x>f the .local bank
and its larger city correspondent
working together. :Now we have
DIVIDEND NOTICES
-
and MALTING
COMPANY, INC. t
"Largest Commercial Maltsters
the World"
in
,
•
of
Froedtert Grain and Malting
Company, Inc., today declared
regular quarterly dividends of
twenty-five cents (2 5 f) per share
H.
Capital Stock
Company and fifty-five
DINKINS,
H.
handle." Blanketing
FE
TOPEKA AND
RAILWAY COMPANY
both payable April 30,
April 15, 1946. The dividend
York,
of
to
•
^
of twenty-five cents (25ff) a share
on the. Common Stock of the
May 3, 1946.''
'
Dividend checks
Company will be paid before
Y.,
N.
"U-..
iv'-v
suitable
split two for one
15,1946.
of
Common
■>,
-
-
will be mailed to holders
Capital
Stock
who have filed
orders therefor at this
office.
WILSON,
Assistant Treasurer,
120 Broadway, New York 5, N. Y.
D.
as
C.
.
cannot
' ;
of record April
the country
part
credit groups is
these
with
March 28, 1946.
;
Th6 Board of Directors has
this day de¬
clared
a
dividend of One Dollar and Fifty
Cents
($1.50) per share, being Dividend No.
133, on the Common Capital Stock of this
Company,
payable June 1,
1946, to holders
of said Common Capital Stock registered
on
the books of the Company at close of business
New
1946, to stockholders of record
the Stock is
the line¬
ferred that the other two
JR., Secretary.
ATCHISON,
TIIE
SANTA
(55iO per share on the
Preferred Stock of the Com¬
pany,
the
,
cents
vyy-.;-
third organization in
up, the regional bank credit group
to which loan applications are re¬
regular
on
the Common
of the
a
quarterly dividends of $1.05 per
Prelerred Stock and $0.87Ys
per share
on the $5 preferred Stock of the
Company
(such, stocks having been modified
as
to dividend rates and otherwise as of No¬
vember 23, 1945 in connection with a $30 per
share capital distribution)have been, declared
for payment May 1, 1946, to the stockholders
of record at the close of business April 6, 1946.
The
share
The Board of Directors
on
Preferred Stock Dividends
U
of going to Moscow was, for instance, merely to
"vodka party."
,
Ala Returns
a
Winning Blow
This gave, the ultra-suave Iranian a chance to come
ironical and righteously indignant defense of his Prime
an
will remind the honorable Representative of Poland that
th
journey of the Prime Minister of Iran td Moscow was in • pursuant
of > the resolution- of the 30th oi Januarys irt^theufirst Council i
London,
"
was given to him, but he remained firm on th
basis of independence of his country and the essential rights of Ira
and he didvnot yield one point and maintained his attitude and th
becaus
td agre
the request of the Iranian Prime Minister, < th
negotiatiorw~as I explained the other day came to nought
Instead of coming forward and trying
there Was a stalemate.
the conditions, to
Government came
to
forward with" other requests, Tequestin
Soviet
troops should remain- in certain regions of Iran/requestin
that a question of oil concessions be discussedr requesting that th
autonomous Government of Iran be recognized.
That was what i
that their
UNO starts
Negotiations for Transfer of
League of Nations Assets
Secretary General of the United Nations, Mr. Trygve Li
the committee appointed by the Genera
Assembly of the United, Nations to negotiate the transfer of Leagu
The
has advised the Chairman of
of Nations assets,
the delegate of
Vi-UvL..*
Poland, Wlodzimierz Modero, that
the assistant Secretary General for
Conferences and General Services,
Mr.
the
to represent
Adrian" Pelt, is
the As¬
Secretary General at
sembly of the League of Nations
and also to act as his representa¬
tive with the Committee..
.
.
.
DECLARED
DIVIDENDS
Bond and Share Company
Electric
Alabama
of n the
# "The
the 48
JTROEDTERT *
GRAIN
a
.
of the commercial banks
sources
in
an
it is pointed out brings to
completion a network of regional
credit groups across the country
planned as a third source of cred¬
it (to which small business can
have access, and as a back-stop,
so to speak, to banks in making
such loans as they might find for
one reason or another difficult to
make,.
'
plement the regular lending re¬
A. S. POUCHOT
to
Formation
has
group
attend
group
organized by banks in Ala¬
been
April 15,
48th
that; the
stated
1946. Books will not be closed.
March 27,1946
Mr,
N. C.,
at Winston-Salem,
pany
Corporation payable May 1,
the close of business
bank is en¬
alternate but they
have not all been named as yet. S
participating
Each
Wachovia Bank and Trust Com¬
capital stock
1946, to stockholders of record
at
Association.
the
-
titled
who is President, of the
Hanes,
share
per
Vice
Chairman of the Post¬
of
mission
day declared the regular quarter¬
(H. A. Pharr, Executive
President, f as
alternate).
Mobile
Small Business Credit Com¬
war
of Directors has this
March; 28 by Robert
on
and I want to find out whether he broke the law or did
Vice-President plenty of caviar also
Mobile, and E. J. McAuley, Presi¬
dent of tlie First National Bank,"
credit to small business, was an¬
LEE TIRE & RUBBER CO. of N.Y
term, conversations, while Soviet troops still were on Iranian soil
negotiate or
the
whether his purpose
*
Merchants National Bank,
of the
Association
ers
v.*
(r.
'
ham; T. A. Horst,
of the American Bank¬
to assure ample
program
4*
Youngstown, Ohio
,;?i
formed as an addi¬
under the
groups
that the Prime Minister of Iran was in Moscow, carried On
some-^-I don't know—negotiations—what it was if we shall not use
fact,
& - Savings
Meanwhile came the 2d of March—it came hnd passed, and:
Company, Birmingham; J. Glenn tri^e-hadYfot been ^accompli$hed;aiid he(protested verbally and 4
Hall, Executive Vice-President of writing. Naturally there is no doubt that he was very lavishly "enter
the First National Bank, Birming¬ tained.
He was wined and dined and plenty of vodka and'probabl
Trust
Birmingham
tional source of credit
PRODUCTS
INDUSTRIAL RUBBER
-V.
such
RUBBER
REPUBLIC
>
rff
Coleman, President of the
John S.
Organization of a new Bank
Credit
Group,—representing the
48th in the nationwide network of
CORPORATION C
'y.':
by the Delegate of Egypt and touched upon the reply of the Delegate
of Iran, namely, the point concerning the powers of the Prime Minis¬
negotiations while foreign troops are on Iranian soil.
"Now I read in the newspapers, and I think it is an established
ter to carry on
Montgomery,
Bank,
National
LEE RUBBER & TIRE
■K;i'ST-.v(d(Continued from., page 1833)'Jv
back wi
Minister'
loyalty, and ■; immunity ? to bribes, even ' though k they - embrace
the participating banks are: W. C.
1, V l* 1
'Bowman, President of the First ordinarily-rationed caviar; Said'Hassein Ala^ .* -
Registration," starting on p. 1826.
E. E. DuVALL, Secretary
{
March
First
the
Markets—Walter Whyte
.
Officers of the group
W. C. Bowman, President of
National Bank, Mont¬
gomery.-,
are:r,
1814
...
Corner....... 1818
Salesman's
Tomorrow's
.
Securities.............. 1794
Estate
Real
Checks will be mailed.
•
: Report...
Utility Securities.
Securities
Regular semi-annual cash divi¬
dend of 50i
per share; and
Extra cash dividend of 50tf per
share.
•
Railroad Securities
declared the fol¬
lowing dividends on the capital
stock of the Company, payable
on
May 15,
1946, to stock¬
holders of record at the close of
business April 15, 1946:
this day
has
Reporter's
Our
5
Public
T»
| he
They are the
cities of the State;
............
|
The War of Nerves Subsides
*
Birmingham Trust and Savings
Canadian Securities
'..,..1816
Company and the First National
Dealer-Broker
Investment
Recom- :
Bank in Birmingham, the First
mendations and Literature.,.... .1790
National Bank and the Merchants
Mutual Funds > ;'•
• •
«•...... .1804
Natonal Bank in Mobile, and the
Our Reporter on Governments..... 1819
First
National Bank in Mont¬
Plaza
Rockefeller
Stocks..> .1799
Calendar of New Security Flotations
NATURAL GAS
30
Page
Bookshelf...........1617
Business Man's
CONSOLIDATED
New York 20,
serving the
$671,827,675
The Alabama group was formed
by five banks in the three major
groups,
entire country, up to
"
.■■
Insurance
and
Bank
COMPANY
*•
credit
bank
INDEX
DIVIDEND NOTICES
Thursday, April 4, 1946
CHRONICLE
THE COMMERCIAL & FINANCIAL
'1834
larger program for lending
small business begun a year
a
and
half ago,"
a
Mr. Hanes said.
added, "bank¬
ing leaders foresaw that when the
war would end business generally
and small
business particularly
would suddenly find itself in need
of credit to finance its return to
"At that time," he
Association
Bankers
American
the
Hence,
activity.
peacetime
organized its Postwar Small Busi¬
ness
Credit Commission to put
effect
into
a
which
program
committee appointed
The
by
Assembly will also
the Swiss Federal
Authorities the relations between
General
the
discuss
with
the Swiss Federal
Government and
regard to
the United Nations with
League of Nations assets as well
the immunities, and privileges
as
organization, of the repre¬
sentatives ,of its Members and its
own officials in Switzerland,* upon,
the
transfer
of the assets and,
of the
which
functions
be
may
agreed.
iff. * '' v
will be re-ceived in Berne by- the Federal
in charge of the Swiss
upon.
+;
y
"
'/ ,;
The -Committee
Federal
.
.
.
Secretary General Trygve U
(right) with Mr. Stettinius." ;
Political Department, Mr.
-
-
"
'
^
MHwctukee,
^
'
'
f
'■*"
1
'
•
^
r,'.
NATIONAL DISTILLERS
Wis,^fde Tr?<SSer
March 19, 1946
make
would
ALVIN R. CORD ;.
<: •.. v*
PRODUCTS
has declared
a quar¬
terly dividend of 75# per share on the out¬
standing Common Stock, payable on May 1,
S ;;
.J
1946, to stockholders of record on April
The transfer books will not close.
15,
1946.
Lehigh Valley Coal
•
;
THOS. A. CLARK
treasurer
:
March 28, 1946.
Corporation
Plan of Recapitalization
•
JOHN MORRELL & CO.
,:v
DIVIDEND NO. 67
Transfer books
A
for Certificate of Deposit
Close permanently April
To Holders of
Certificates of Deposit.
'
was declared and became
March 30, 1946. You are
Corporation,
ef«*
re-
on
share
stock
will be paid April 30,
1946, to stockholders of record April
13, 1946, as shown on the books of
'
the
Company.
V
George A. Morrell, Vice Pres. &
'
Ottumwa, Iowa.
Treas.
the
transfer books of the Corporation
for the transfer of Certificates of
Deposit will be closed permanent¬
ly at the close of business on
April 12,1946.
LEHIGH VALLEY COAL
the
nation's
and ready to supply
business with credit needed
banks eager
small
of reconverting
production to peacetime
production," Mr. Hanes declared.
"Reconversion is well on the way
toward completion," he continued.
"Small business must now have
the means to prosper and grow.
The bank machinery which was
in
the
from
process
war
helpful in financing the rer
conversion process is now serv?
ing
the
long-term
peacetime
needs of small business."
:
t
BUTLER BROTHERS
4s****
■!
declared the
regular quarterly dividend of One Dol¬
lar and twelve and a half cents ($1.12)^)
§er share on Cumulativedividend of
took, M/%% Series, and a
Preferred
(20c) per share on Com¬
mon Stock both payable June 1, 1946,
to holders of record ftt the
close of
business on May 1,
1946. Checks
will be mailed,
Twenty cents
,
CORPORATION
Edwin 0. Wack
March £8,1946
Secretary
the part of the Swiss Federal Governme
delegation headed by Mr. Paul Ruegger, Swi.
Minister to Great Britain^ and includes among others Mr. F. Perrear
President of the Council of State of'Geneva;'>y-^(^4
(
The Committee appointed by the General Assembly of the Unite
Nations at, its London meeting, is composed of representatives of t
following Member,States:—- r : (
-» ,r(,
*
•
• «/
•
Chile, China, France, Poland, Union pf South Africa, Union
^oviet Socialist Republics,. United Kingdom and the United States.
"V\ The problem of the transfer of the assets of the League of Natioi
to the United Nations was first studied by a special committee (Co
mittee 9) of the executive committee of the Preparatory Commissi
The
..
negotiations
by
will be conducted
on
a
.
of the United Nations in
London, ;
tfte full, Preparatory Commission met to consider :the repo
its 14-nation" executive committee, the -Commission,, on rDec. 1
When
so
of
1945, appointed a'special 8-member committee
sions with the League of Nations Supervisory
.
purpose
to enter-into .discu
Commission for t"
of "Working out a common; plan for theproposed transfe
of representatives from the following eig
The committee consisted
LaGuardiatoHeadUNRRA
Mayor of New York
FiorellaLaGuardia,was nominated
by the Central Committee of the
United Nations Relief and Reha-r
The Board of Directors has
;
By W. J. BURTON, Secretary
April 1,1946.
found
needs."
Former
,
Notice is hereby given that
end
of
assured
_
quested to present your Certificates of
Deposit promptly for exchange for the :
stock certificates and cash, which are
now
ready for deliver)', at the office of
either the New York Depositary (J. P.
■
Morgan & Co. Incorporated) or the Phila¬
delphia Depositary (Drexel & Co.).
'■ [
new
Fifty
of John Morrell & Co.,
1945, of Lehigh Valley Coal
fective
of
Cents ($0.50) per
on
the
capital
j
12,1946.1
The Plan of Recapitalization, dated De¬
cember 31,
dividend
be
small
that
ample bank credit for its
"War's
The Board of Directors
NOTICE
certain
would
business
CORPORATION
"
FINANCIAL
;
be the
new
director-general of the or¬
ganization. Although'no vote will
be taken on Mr. LaGuardia's name
until
the
end
of the UNRRA
meeting now being held at Atlan¬
tic
City, - N. J., the Associated
Press, in its dispatch from there
of
March
21, pointed out that
bilitation Administration to
nomination
mittee
was
to election.
by
the
central
com¬
considered tantamount
nations:
Chile, China, France, Poland,
South Africa, the Union
the United Kingdom, and the United Stat
'■>
,';
"■ ( '■ .'vr.: •
Feb; 11,1946, published a report, recommen
Soviet Socialist Republics,
of America.
'■
v; ■v■
K■ ■':rs.
This committee, on
Ing that the United Nations"
-
take over all the material assets own
by the League in Geneva, including
Secretariat Building and' all fixtures
the Assembly Hall, Librar
and furniture.
The sum
48,000,000 Swiss francs was to be paid to the League by the Unit
Nations, to be distributed to the members id the form of credit
the books-of the United Nations.
There was to be no actual payme
in cash.
■ *
*'•
.
r
:
•
,
report was adopted by the General Assembly on Feb, 12.
the same day, the Assembly also formed an 8-member Negotiatii
Committee, composed of the same nations as the former group,
assist the Secretary-General in negotiating the necessary agreeme
The
for the
then
The Secretary-General, Mr. Trygve
informed the chairman of the committee,
proposed transfer.
(on March 28)
L
Volume
163
-:5
Number 4478
THE COMMERCIAL & FINANCIAL
CHRONICLE
*
1835
Wlodzimierz
Modero
of
Poland,
that
Mr.' Adrian
Pelt, Assistant
General Services, would rep¬
Secretary-General for Conferences and
resent him with the Committee in the
planned
things. The break of last Feb¬
negotiations.
to
League assets located in Switzerland, and the
privileges of the United Nations and its staff..
■■vy.-
.
The
Swiss
Government will
Walter
1
represented in the negotiations
by a delegation headed by Mr;.,.Paul Ruegger, Swiss Minister to the
United KingdomThe delegation includes, among others, Mr. F.
Perreard, President of the Council of State of Geneva.
rangements
as
be made
may
behalf
on
present negotiations.
The
s>
of the League
'
,
'7./,.- 1
'
Security Council's Query to the Soviet and Iran
Governments and Their Replies
*
r
"I
have
the
honor
to
advise
you
week
but managed to recover
most of their losses before the
that at its meeting on 29
by Mr. Byrnes that the President of the Council request the Secretary-General to ascertain at once from the Soviet Govern-
week ended.
j Governments
and report whether
or not
.
you ascertain the above information from
communicate it to
j| cil
tf
t;
ii
'
-
'
V
'
"
'
'•
:i ''
*'
Vv
!
'
,
•"
'.
^
1
„
,
5,
,
*
,
f
/
'
"Sir;
"In reply to
-
in which
letter of March 29th,
particularly, whether
Iran
between
two
Governments
on
other
was renewed on March 24,
1946, and which will be completed
during the period of one and one half months.
I officially informed the Security Council about this at its meeting on 26
March, 1946. Thus, the question concerning the evacuation of the
Soviet troops raised before the Security Council by the Iranian:;
Government
on" Mar^h
18.
was
solved
by
the
understanding
...leached between the Soviet and the Iranian Governments.
'•'*
"As' 1o 7©ther question*,- iney. are not connected with
question of the withdrawal of the Soviet troops,
~
as
-;
the
r
it is known \
'the question concerning an oil concession or a
joint stock com¬
raised in 1944, independently of the question of the
pany was
•
v
the" soft
•
"Sir:
(Received 9:15 A.M., April 3)
*
.
t
April s, 1946.
"As stated in my letter of acknowledgment to? you of March
30, 1946,1 did not fail to cable to my Government, the evening of
March
29th, the complete text"
-
.
,,
\
of your: Communication of the
date,
same
and
I
for
day, April 3rd, the following
Vg, Markets
affairs
of
gotiation
Iran,
has
the
the
profits to back his belief with
cash.
That
that
means
buying has to
at
good buying manages to crop
up. But by and large most of
now
the present and recent
Rubber
rails
•:
ne¬
a
It
82,
buying
But I
cannot
came
believe
as
a
there
those
its
with
tive results, and Soviet
agents,
official*, and armed forces are
was
back
ap¬
final
sen¬
i misprint. Instead
knowledge.
.
come
as
strikes seldom
surprise to man¬
a
the
suggest
/'■.-
,
ican Car and
American
is to be found in the
answer
I
following
:■„
Air Reduction at
agement.-: I think the better
,,,.
7
,
,
54; Amer¬
Foundry at 62;
Steel
Founders
at
42; Bethlehem at 97; Electric
belief that rails have
their best
seen
stay above 63 but would
have to
an
aggressive
the stocks
cases
the 68-69 range
cross
as
manner.
well
ket
as
but
are
not
acting
the rest of the
extra
mar¬
leeway is
re-
could enter into a stalemate. the profits
you took when you
Purpose of this would be to sold the original half, should
nibble
at
the
stock
about (203-206).
this in
the
present
take
a
obstacle;
care
of that.
It would do
:
More next Thursday.
—Walter
[The
views
Whyte
in this
necessarily at any
those of the
Chronicle. They are presented as
those of the author only.]
article
time
Any" of these
would be bullish
That could
peculiarity the market
the habit of fore¬
events
do
expressed
not
coincide
with
before
they
the
tipper
down
it
as we see
meaning for the
now
there is
action,
and
range,
99 WALL
j
turn
STREET
NEW YORK 5, N. Y.
....
Of the two the
again.
indications
LAMBORN & CO.
but not through
go up,
seem
the latter.
is.no
This
to
point to
kind of
some
SUGAR
that
means
a
Exports—Imports—Futures
re¬
which may be more
near¬
DIgby 4-2727
,■
,
"(2) Your second question is whether
or not the reported
withdrawal of troops is conditioned
upon the conclusion of agree¬
ments between the two
Governments on other subjects. The best
way to answer that is to give you a
simple and exact account of
the conversations that have taken
place in Tehran since the aron
page
1836)
•-
But the bull¬
longer
one
of
Pacific Coast
Established
wild-eyed things replete
-
rumors
of
H. Hentz & Co.
on
Members
Pacific Coast
Exchanges
York
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Schwabacher & Co.
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Securities
wonderful
SITUATION WANTED
v:7;;'77:.;
continuing to interfere in the internal affairs of Iran.
They are
still preventing the
Government of Iran from
exercising any
authority in the Province of Azerbaijan.
Regarding the with¬
drawal of Soviet
troops from Iran, there has been, and there can
be, no negotiation.
f.:}v.
■,Av'^v-.■; .7.7 a-.;
about 84 and U. S.^
at
stops:
| In fact
prise.
Orders Executed
Hussein Ala, representing Iran,
delivering his country's reply to
the Council's note of inquiry.
30,
posi¬
(Continued
me
which
the
was
is still bullish.
resolution of January
1946, have achieved no
.
about 31; U. S. Steel at
now
So
sur¬
couple of hot market
days or it; could go through a
barometer for market action period of f weeks
or
even
is! now advised." Obviously months, before it ^overcame
ishness
on March
27, 1946.
negotiations pursuant to
the
44; Beth¬
about 103;
now
by future^ Basically the trend
re¬
at
99,
were
fault.
in
statement
a
and its
subject
Council
about
now
at
Electric Auto-Lite at 71, now
about 73; Superheater at
30,
of this
some
42,
good lehem
in.
come
Here and there
.
But to get back to market
meeting
The
it will be
go up for only one
performance
taken
gotiations, I submitted
to
objec¬
by such a penetration, Reduction at
52, now (Mon¬
enough to say that
day) about 57; American Car
somebody somewhere is cer¬ and
Foundry at 60, now about
tain
enough
of
continued
65; American Steel Founders
proven
to
a
occur.
place
pursuant to the resolution of
the Security Council on Janu¬
ary 30, 1946,-?As to.these ne¬
port
the
that
tence in the column and read:
"At least using the news as a
Gov-:
dispute,
one
The ; industrials
reason—profits and the hope
are
also
squired for a final conclusion.
for profits. Remove that fea¬ backing and
filling.,11 By ^heEven if these stops are. broken
ture, or becloud it in any way, time they pass 200 (which
and.the market will eventual¬ they have already done) they and you have to take a loss,
casting
ernments, With respect to the
interference in the ' internal
matter of the first
and
are
fool's paradise.
possesses;
"(1) You first ask us as to
the existing status of
negotia¬
two
strike
hesitancy, is living in
is the
reply to the two questions.
the
better
a
v
ket
has become
commu¬
nication to the Security Coun¬
cil at its meeting of Wednes¬
between
But until
For news,
know it, and when we
by Secretary of State bryn£s
tions
in it.
have read, "hot."
and endorsed by the Security
Council. I am now instructed
you
though it car¬
danger with¬
is offered J.
suggest it not be
discarded. You still hold half
even
though
they would require the pa¬
a& we
tience of a Job to sit through.
know it, has been evaluated There is still, however, an¬
by the market long before it other possibility. The market
requested
to the two questions suggested
to
best one, even
ries elements of
be
already Auto-Lite at 69; Superheater
earnings and at 29; U. S. Rubber at 67 and
that a new appraisal of their
all of these had
U. S. Steel at 79.
You will
something to
securities is in the wind,
do with it. But
f To note that in some cases the
anybody who
believes that these were, or change that opinion the rail stops are under
your original
are, the basic reasons for mar¬ average would not only have purchase
levels.
In those
coal
of the word " now" it should
that an early answer be sent
to convey
perform¬
peared in my last week's col¬
Reply From? Iran to Council's Query
*
out
-
The chances
umn.
•
and
few days" has
explained away by at¬
tributing it to.the UNO crisis,
to
Yours respectfully,
ANDREI A. GROMYKO.'-
,
-
ly react. This brings
evacuation of the Soviet troops.
account
nothing else is positions in the
following: Air
that the strike
in
OP A.
subjects.
I have the
honor oh behalf of my Government to inform you about the fol¬
lowing:
....;
"These negotiations have already led to the understanding
regarding the withdrawal of the Soviet troops from Iran which
.
the recovery was
case
of the past
ance
not the withdrawal of the Soviet troops J
conditioned upon the conclusion of agreements
is
the
a
their
been
or
one's
not
performing not be good business, or even
snapped back well. It's easy enough to say good trading, to permit all
minor reaction, but in that the soft coal strike is at these
profits to be dissipated.
The
accordance with the instructions of the President of the Security
from
from
in
you,
protect
the
also
labored.
♦-Council, requested information concerning the existing status of
negotiations between the Soviet and Iranian Governments;"and
-
can
any
aware
'
your
in
one,
65 V2f now about
trying to point the way to is not the sort that breeds 70.
Practically all of these
higher prices, the rails were confidence. A few paragraphs show you some profits, some
performing poorly. It's true back I started to say that the larger than others. It would
that the carriers like the in¬
*
^
r
re¬
little too obvious for comfort,
ii While the industrials were
dustrials
(Received April 3, 9:10 A.M.)
:
1"
'
The Soviet Reply to the Council's Query
r
I
yourfGovernment and
prior to the meeting of the Security Counon Wfednesday^ April < 3, 1946."
me
bode
I'm also
ages penetrate certain
tives.
For if
covery
the reported withdrawal &
*of troops is conditioned
upon the conclusion of agreements beUween the two Governments on other subjects. <• - **; • '
\ : "Accordingly, I am instructed by the President to request-that
'
In fact the
itself had elements of
strengths but these were a
;ment and the Iranian Government through their representatives
-J and report to the Council at its meeting on Wednesday, April 3,
-the existing status of negotiations between the two Governments,
rand particularly to ascertain from the
representatives of the two
To
changed
overnight if the familiar aver¬
=By WALTER WHYTE;
The industrials had a minor
shakeout in the middle of last
March, 1946, the Security Council endorsed the suggestion made
"*
don't
upsurge.
that all these
present in only minute doses.
Communique from Secretary-General Lie:
minor
a
against all possibilities is ob¬
do with
margins. I can go on
viously impossible. The meth¬
and on
describing undercur¬ od of
"stops" still remains the
rents which
Approach of averages to old
highs increases possibility of
sharp sell off.: Good buying
during the
:■);
a
new
•
The final session of the League of Nations will
open in Geneva
April 8, and will at that time consider confirmation of such ar¬
on
To¬
great deal more
caution, and it has nothing lo
Whyte
be
cards.
day there is
Markets
regard
immunities and
than
ruary took care of that.
Tomorrow's
Aside from its main task, the Committee has also been
instructed
to discus? with the Swiss
Federal authorities the relations between
the Swiss Federal Government and the United Nations with
Orleans
And
York
Stock Exchange
Exchange (Associate)
*Chicago Board of Trade
Cotton
Exchange
Exchange,
Board
of
Inc.
Trade
Cotton
other
Exchange
Exchanges
New York Curb
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New York 5, N. Y.
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CHICAGO
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CHRONICLE
THE COMMERCIAL & FINANCIAL
putes to the Council, the Iranian Government is animated by no
feeling of hostility for the Soviet Union. It is our hope that the
Council will find a just solution which will promote friendly
relations in the future.; ' ■'.ff- »•'; -■; y-.f.^ '■
The Wai oi Nerves Subsides
New
Rhodesian Selection
<
College 1111J
At Hunter
(Continued from page 1835)
rival of the
new
m;.
opening of the Security Council, the Soviet Ambassador
called on the Prime Minister of Iran and handed him three mem-'
an
government.
a form of autonomous
"Within a few hours after
(signed by)
memoranda,
called oil the Prime Minister and,
had received from Moscow, orally
confirmed the promise to evacuate Iran, but on the condition that ^
no
unforeseen circumstances should occur.
When the Iranian;*
Prime Minister objected to this proviso and asked, for explana-.k,
tions, the Soviet Ambassador did not give a convincing reply,
g?;
the Soviet Ambassador again
on the. basis of a telegram he
her
as
to this
If suspicions of Russia
If she would only state
baseless she has but herself to blame.
frankly and pu,t aside dubious expedients and cease
case
would be infinitely
to act
Int'I Resist.
& Pfd.
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Only if
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For Banks & Brokers
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Amalgamated Sugar
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Lowenstein, (M.) Y
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Trading Markets in
pro¬
of oil and Azerbaijan. To this, the Soviet
if agreement could be reached on these other two subjects, there would be no further cause for
anxiety and no unforeseen circumstances would take place. This
statement has not been further clarified.
'
.
"With respect to the other two memoranda, the Prime Min¬
ister has outlined his views to the Soviet Ambassador. His posi¬
tion is: (a) that as the status of the Province of Azerbaijan likef^
-that of all the other provinces in Iran is regulated by the Iranian y
•constitution and the law on provincial councils, it is an internal
matter with which the Iranian Government will deal; (b) that the
■formation of a stock company with joint participation by Iran
and the Soviet Union is a matter to be submitted for approval
to the next Parliament, after the Soviet troops have been with- •{§
drawn from Iran, and elections can be held lawfully for the, ;
organization of the thirteenth Legislature.
"This is the present state of the discussion on the subject
'of oil and the future status of Azerbaijan.
"According to the latest information from my Government
dispatched to me on April 1st, no understanding has been arrived
at and no agreement had been made. >. The Prime Minister of
Iran emphatically states that he has not accepted, and cannot
accept, any conditions whatsoever being attached to the com¬
plete withdrawal of the Red Army from the whole of Iran. These
forces should have been unconditionally removed from Iran on
or before March 2 last.
It is our position as explained by me at
the meeting of the Security Council on Friday last that the evacu- v
ation of (the whole of Iran by Soviet forces cannot properly be
made dependent upon any conditions, foreseen or unforeseen.
r
"In closing, permit me to repeat that in referring these dis-
:0.
prospects
though she were afflicted by a persecution mania, the
referred
must
"Three days later the Iranian Prime Minister again
proviso and said the evacuation of the Soviet troops
be unconditional, and that he could not agree to the Soviet
&C
U. S. Finishing
Mail" of London says: "Russia's dubious maneu-
As the "Daily
are
delivering the three
HAnover 2-0050
Scophony, Ltd.
Y, Antagonism Created by Russia's Behavior
verings will reflect adversely on her motives.
Y,
Gaumont-British "A"
:
difficult even for her best
friends. The blame fastened on the Soviet by the other powers is not
so much because
of its dealings with Iran,.as because of its nonacceptance of the1-decisions of the Organization that it helped to
create, and that Marshall Stalin insists he is sponsoring.
And her
"Oriental psychology" is getting more difficult to explain.
Red Army
gested
;
The Soviet case has been gettingever more
announcement that the evacuation of the
from Iran would- begin March 24, and last five to six
weeks. In this memorandum there was no mention of any condi¬
tion being attached to the withdrawal of the troops.
"The second memorandum related to the formation of a joint
Iranian-Soviet Corporation for the extraction of oil.
"The third memorandum dealt with Azerbaijan and sug¬
One was
"~
/
* -
1
w
for the
oranda.
'"Y
~
*
,■
■
On March 24, the day be-
Soviet Ambassador.
'• -l ' r 'T*.
"AMBASSADOR HUSSEIN ALA."
have the honor to be,
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