Full text of Commercial and Financial Chronicle : August 1, 1946, Vol. 164, No. 4512, Section 1

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BUS. ADM.

LIBRARY

AUG 2

Flnaf Edition

ESTABLISHED 1839

1946

In 2 Sections-Section

Reg. U. S. Pat. Office

Number 164

New York, N. Y.,

Number 4512

Will New York Take

Wolcott Hails

sound

Holds that although present conditions, point to
loss of financial leadership by London, because of Britain's adverse
international balance and instability of sterling^. New; York is hot
in position to
takers place, largely because of absence of free mar¬
kets and restrictions on capital financing.
Praises Governor
Dewey's project to develop a World Trade Center in New York City
as step toward gaining future leadership in international finance;

WASHINGTON—-Askedforcom-

Roy L.
Thompson, Daniel W. Bell and
George H. Mead as members of the
-'V:-.''-:v::> Decontrol

Board

set

by the recent
price: v control

act, Represen¬
tative

Wolcott
k i

currency.

London has held the leadership

Jesse

Michigan!

■

Holland

and

this

cial

formulation of

stated

to the "Chronicle":

"This

not

that the
r new price law is
good for busi"ness, for in my opinion it cer-

It does not* eri-

tainly is not.

(Continued

say

624)

on page

detailed

For

contents

see

noone

many

for these

Dr. Ivan Wright

financial

leadership. The reasons are
legion- and
any- catalogue
of
them must necessarily be incom¬
plete. The money and investment
are

they

will

depend

companies'

delicate

naturally

I. "Public
Is there
when

self-adjustment

institutions

gravitate

to have been poor

seem

on page

whole

industry acquires a

INC.

;

can

situa¬

tion set

the

right
road.
Only by this

e r

u n-

mate¬

raw

rials

and

manufactured

which

goods,
are

neces¬

for feed¬

sary

ing the

coun¬

try
and
for
reorganizing
on a

;

HIRSCH,

Members

Successors to

'■

ULIENTHAL &

CO.

Established

Stock Exchange
Exchanges

the twin safe¬

guards of gov¬
ernment

2-0600

Chicago
.

ion?

London

Geneva (Representative)

Antonio Giordano:

the

nationalize

the basic part
of an-industry

acti¬

and

yet leave
large part
to
private
enterprise?.i
C. R.

Raphael

(Continued oh page 645)

State and
;

MgffilService.tn,::

Wholesale

1927

BOSTON

\
-

Troy

HUGH

Dallas

Pittsburgh
Springfield

Buffalo
Syracuse
Washington, D. C.

Scranton

Wilkes-Barre

New Haven

NEW YORK

LOS ANGELES

Acme Aluminum

MEMBERS NEW YORK STOCK EXCHANGE

Tele. NY 1-733

90c Conv.

INCORPORATED

Members

Security

Tel.

REctor

Philadelphia

2-3600

Telephone:

Dealers Ass'n.

New York 5
Teletype

CITY OF NEW

YOftK

Scranton Spring

Alloys, Inc.

Preferred

CANADIAN

-fcriv-: v'-A

■

Prospectus

Preferred

Brook Water Co.

SECURITIES
Common

;

■

request:

N. Y

Enterprise

1-676
floifi

Bell

REctor 2-86004

Teletype NY 1-635

WILLIAM ST.,
Bell

New York

v'
111

Toronto

Broadway

New

N. Y.X HAnover 2-0980

a'!

10 Post Office Sq.
Boston 9

;

York 6

Hancock 3750

REctor 2-3100 ?

Teletype NY 1-395

Montreal

Exchange
Exchanges

Members New York Stock
and other Principal

New York Security Dealers Assn.

Exchange

Broadway, New Yofk S, N. Y.
Telephone:

HART SMITH & CO.
ip:!::.:Members/

Reynolds & Co.

Members New York Stock
120

IRA HAUPT & CO.

■,

Kobbe", Gearhart & Co.
45 Nassau Street

OF THE

♦Solar Aircraft Company

MARKETS

14 WALL ST., NEW YORK 5, N. Y.

New York 4

Tel. Dlffby 4-7800

30 Broad St.

BULL, HOLDEN & C2

NATIONAL BANK

Members New York Curb Exchange

634 SO. SPRING ST.

♦Detroit Harvester Co. Com!

BROKERS

THE CHASE

Hardy & Co.
Members New York Stock Exchange

SECONDARY

Bond Department

and Dealers

INCORPORATED

48 WALL ST.

Woonsocket

FINANCE

•

BOND

Bands

DImibatort

Immm INCORPO

PHILADELPHIA

Albany

Baltimore

Brokerage

for Banks, Brokers

W/LONG and-GOMPANY

Conv.

can

Government

tries have been overcome.

sound basis.

CORPORATE

TELEPHONE-RECTOR 2-6300

in¬

Alterna¬

tively,

;

be exploited free

Bond

INVESTMENT SECURTTIEB

Teletype NY 1410

Cleveland

spection and
public
opin¬

Among the hindrances prevent¬
These are the crucial problems
ing the development of Italian
which face the British iron and
foreign trade, is the question of
steel industry today, and they are
the
monetary disequilibrium of
symbolic of the wider problems of
the country.
Under the present
rate of exchange, in spite of the carrying out the Labor Govern¬
ment's plan for mixing national¬
premiums on the dollar and the
ization and private enterprise in
pound granted by the government
a
constructive way. In steel, un¬
to Italian exporters, Italian prices
like coal, there is no immediate
are
much
higher than foreign
production problem. The ; indus¬
prices. This has prevented the de¬
try's output today is higher than
velopment of exports during the
| (Continuedjon. page 634)
present Italian soft fruits season,
for example, even to countries
like
Switzerland, -/ Austria, etc;;;
in whose case the transport diffi¬
culties existing with other coun¬

PROSPECTUS,ON REQUEST

64 Wall Street, New York 5

25 Broad St., New York 4, N. Y.
HAnovcr

under

plans

BOfifUND

request

R. H. Johnson & Co.

York

New

and other

own

' can

means

its

centralized

MANHATTAN

request

Hirsch & Co.
'

industry be

Municipal
U. S. AIRLINES,

Prospectus
'

•

public ownership
virtual monopoly in a country? Can such

eco¬

nomic

production

636)

Common Stock
on

co¬

Private Ownership?

Common Stock

Havana Litho. Co.*

1
:

workable alternative to» complete

Hilton Hotels Corp.*

Prospectus

and

buy foodstuffs,

(Continued

•

operation.

from interference by government, Italy's foreign trade can be
vated and her

Italy

reasons

Vacuum Concrete

success

MILAN, ITALY—If individual initiative

suc¬

cessions in

markets

valuable asset

reasons

management, extravagance, and
the making of money lending the
chief business instead of making
money the useful'tool of produc¬
tion and trade. No such complaints
can be made against the Dutch but
the English'took from the Dutch

607.

page

plan for detailed reorganization, i together with Government's formula for separating it into two sectors. Predicts nationalization's

foreign trade.:Budgetary situation is complicated
by governmental subsidizing of key industries as unemployment
preventive. Cites great need for imports of raw materials and
goods for industrialization. Terms intact shipping organization

There

reason

and

Raphael explain* how imminent partial nationalization! of
will provide crucial test case of
mixing private and public ownership. Surveys industry's own

restoration of

Holland

did not hold the position of world
banker very long. The obvious

index

Mr.

Asserts monetary reorganization is: prerequisite to

the places of greatest safety, con¬
venience and opportunity. Spain

INDEX

British iron and steel industry

By ANTONIO GIORDANO

•

interference.

ucceeded

men

i«

her domestic and international activities

leadership

Spain.

; "These are very

Italian economist holds his country's prosperity can be restored if
are freed from government

finan¬

and

legisla¬

interna¬

tional

the

good appointare hightype, sensible and sound. Con¬
gressional reaction will certainly
be favorable, since the appoint¬
ments are good for business,

~: 4

Head of Economic Section, British Information Service

banking

succeeded

leader

ments. All three

(

Italy's Economic Outlook

nomic advan¬

mittee

erate

tages. London

tion,

trusted to op¬

price

By C. R. RAPHAEL *

eco¬

Bank-'

ing

I'I*;

f H \

sound

and Cur-i
rency j,C o m -

House

Copy

mentally

member of the

Jesse P. Wolcott

in world

arid finance for
long-*-more than threevcenturies-r-that ,a. change must" have'some
very funda-#
•
... p.1—

publican

'i'"*

Dr. Wright traces movement of financial leadership in modern times
and ascribes London's ascendancy to adoption of free markets and

ment on the nomination of

By IVAN WRIGHT

Reported that members will retain
present positions and Board will
function through commissioners.

Coming Nationalization oi British
Steel Industry a Test Case

Bp
London's Financial Leadership?

Decontrol

Price 60 Cents

Thursday, August 1, 1946

Tele. NY 1-2708
'

■:

Direct

: ;

Private Wire to Boston

" j'

?. a

»/-i•
:X

-4 Hrurt'

:^k?

i»

THE COMMERCIAL & FINANCIAL CHRONICLE

Trading Market*

»;•

..-n

Thursday* August 1,1946 -J

N.Y.N. Hav. Pfd.&Com.

Rockwell

Chicago R.I. Old Pfds.'
Timely Clothes* .
'DoyleMfg.

Manufacturing Co.
hopeless outlook for * constructive peace—Paris

The really

.swith

Prospectus

•1

KING & KING
~

SECURITIES CORP.
Established 1920
Members N. Y. Security Dealers Assn.
Nat'l Ass'n of Securities Dealers, Ino.
40 Exchange PI.. N.Y. 5 HA 8-2773

achievement. Surely the prognosis of John Foster Dulles, our alternate delegate, to
UN,thatTthe Paris parley; isPpeRihl^Ob'theihasiaof^n^
the Big Four and which will satisfy rm one, will work much injustice, will perpetuate much uncertainty
and unrest; and will touch only the fringes,of problems," does not differ from the innermost1 thoughts
of the various participating representatives.
a
'f- - ■■■
444. Even if; air«
— ——-—?
>
- '■
m .

BELXa TELETYPE NY

1-423

s e m-

open

b 1 a n c e

Business

Common

their agree¬

by le0n Henderson*
f"

ments,
the
I basic rifts will
be

highlighted
;• the

by the repre¬
sentatives
o f
.

the

5 '
A. Wilfred Mgy

Beit'Teletype Ni Y. 1-122?

lesser

na¬

bureaucracy and fear of radical ideas.

and since the
UN's San Francisco charter-mak¬
V.

v'y■'PffE'*£.xS-*-i!.

4-'' Av.v^

VETO —in

;

Mississippi Shipping

Although,

rule.

majority

months.

and

ernment

whether

railroad

former

York 5
7-4070

SI Nassau Street, New

that

ent

A. S.
-

•

Home Title

Campbell
,

Punta Alegre; Sugar %
Capital

;

'•

■

most

•

«'4
^ ihiiltftdy; it¬
•

discussion recently
as

to why the war
of

noj brought forward

...

Telephone: WHitehall 3-1223

v.,. *,,

V"";

Members

■

•

leadef,

that

felt

somewhere

had not met

Mb^ertdersph^bei
fbTe Tbuhg Men's Board, of Tradej
talk by

New York

was

'introduced

Thomas B. Noble, President of the

REctor 2-7813

Young Men's Board of Trade* 4
1

Boston

& Maine R.R,

Stamped ^Preferred®

■

General

;

Builders Supply

CANADIAN INDUSTRIALS

.:m

Reeves Bros.

Telephone BArclay 7-0100

excess

Detroit fnt'l

That's

thinking in

strange

ours.

some

Again, there is the fear

pur

It's

Frank C.Masieison&Co.
Members New York Curb Exchange"
64 WALL ST.

' ;

All

of gov¬

fear

and

politics. It's con-»
sidered dirty business. As a mat
ter of fact, practically
every por¬
tion of your busy personal and

see

another

HAnover 2-0470

Issues

Chicago, Mil., St. Raul & Pac. '
5#/2Q00.

Minneapolis & St. Louis R. R.
4

.f;

AU.'issues.

444-

Chicago, Ind. & Louisville
t:'
40M;To#ttet).;3'<?*".'?rf^
'

Consolidated Film Ind.

Consolidation Coal

Gude, Winmill & Co.

distrust and

about

NEW YORK 6

Assoc. Gas & Elec. Corp.

area,

interniationalthink

distaste

Teletype NY 1-1140

which, to my mind, is
issues, not only
national thinking, but of

Another

Commodore Hotel, Inc.

of the central

our

Bridge

Avon Allied Prod.

ernment,
of

of fear

big issue ahead

Members Row York Stock Exchange

1 Wall

Bt.tNewYork 5, H* Y^ Teletype NYI-B5B

DIgby.4-7060

Eastern

Sugar Associates

of attaining and maintaining
balance ih the forces that bring

employment.

dis¬

anything, some of the stronges
driving forces that lead to imbaliance have been given a genera¬
dislocating, disturbing
of force;; And
po, one of the
new

central problems that faces busi¬

NEW YORK 6, N. Y.

Common Stock

kind

IIS BROADWAY

Central States Elec. (Va.)

feeling of need

which produce business cycles.

Membdri Ni

Hanover 2-4850

St., N. Y. S

Bell Teletypes—-JfY 1-1126 & 1127

is the fear and distrust of
plan¬
ning, whejreas there is no greater
sphere of action in. which there is
planning than in business.

tion of

Members N. Y. Security Dealers Assn.

quieting ^thought is that therf h^s
been no
change in the factors

Canadian Secnrttles Dep't.

37 Wall

Broadway WHitehnll 4-8120
Bell Syotem Teletype NY 1-1019

capacities,

would say that we should have no
fear of being radical. Then there

about, full

fci»ffl CANADIAN VINES fM""1

Sreetie^OTTvpawj

the^e is

radical

Request

things that has im¬
about business, as I've

security.

CANADIAN UTILITIES
Prospectus

;

one

CANADIAN BANKS

Oxford Paper

for

business life is bound to be af¬
fected by political policies.

in U. FUNDSfors
Market

■

New England Co. •
.Common & Preferred ;v;; :y ; |

Northern
/

Maintain
Active

Members New York Stock Exchange

radical when the great business
institutions of this country, most
of them,
are
the elongation of

City, July 18,1946. Mr;

Henderson

V20 BROADWAY, NEW YORK
TeL

dynamics

strange
thing,
that
business
people should fear to be tagged as

one

-V^'"'V:

ffew York Stock Exchange
Mew York Curb Exchange

1-1843

along the line

frfcpONNELL&fO.

New York 5

Bell TeHtype NY'

-V-1

;

We quickly got into explan¬
ation, but the sad thing was that

new

thing in this country of
Henderson

Leon

eompavable to. Haruch nf: the1 last

Bought—Sold—Quoted

H. G. BRUNS & CO.

requirements; that

an excess

for

war.

Stock.

20 Pine Street,

and

leader, an outstanding

itewmotbr4v"^x 4.VJ

•

■

it in many, many

is that

Washington

C^pepter;

Edward A. Purceil & Co.

and

One of the

seen

effort's enormous mobilization

Guaranty Co.

■

and

pressed

resources had

rvr

guidance and leadership.

^rength,"biit

self. We had

-Common '

the

test

release

complement of
anti-Soviet lineup in
young
men
Paris, as it did in his Caustic will in the
pe¬
scuffles with propayko in New riod a
he-ad,
York./
not only sus¬
v
^ (Cntinued on page 637)
tain its pres-

NY 1-1548 ;

Common

is;

the

into

Byrndun Corporation
'.•••

big

ply of courage
and* daring

socialistic, his championing of the
small* nation cause will throw him

i Members New York Curb Exchange

18.

t h

LirPl.

looking ahead to the larger fesponsibilities, tying with it the
larger opportunities, there was
necessity
for
organization
of
forces which would give play and

reservoir sup¬

worker, Dr. Evatt's domestic eco¬
nomic and social ideology is left-

Vanderhoef & Robinson

the

*<■

the

One

issues

member of Australia's labor gov¬

Common & Preferred

Bell Bystem Teletype

in the last

5&r
.

in 22 countries

spirit embodied in the many ram¬
ifications of
Big Power-versus-

Electric Ferries

Telephone COrtlandt

aspects;

technical

its

4*;;■■■■"-.■

that after
having
been.

importantly, against its

but more

■' -

Vacuum,Concrete.

a short (period. I'm to discuss some of the
industry today. I would put first the issue of

say

the

against

battle

the

fought

Common
;

leadership,' I

Minister for External Affairs has

Rogers Peet

•

I have a big topic for

vital issues facing

Australian

the

conference,

ing

branch offices

Textiles, Inc.

During

Evatt.

to our

regimentation

Herbert

Dr.

NY 1-1557

! •

La.-Birmingham, Ala.

Central Public Util.

Chief Economist, Research Institute of America

Exchange

Soya Corp.

;

of other lands and calls for wise fiscal and
monefary management
for maintaining full employment.
Decries

tions.
Most
voluble of

•"

•

York Stock

HAnover 2-0700

Direct wires

Stressing need of leadership to meet new issues, former "New Deal"
official decries fear complex pervading,business.
Says price control
is now a dead pigeon and price spiralling is in Bffing. Sees
problem
in maintaining American free enterprise
against collectivist economy

pr.oc.ee dings

Mitclell& Company
.

Request

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

Formerly Administrator, Office of Price Administration

during

Broadway,. N. Y. S
WOrth 2-4230 ;

Today

defense

! r.Members New,

Vital Issues Facing American

Four ministers

MILES SHOE

120

steineii,r6ii^b £ jcol
New Orleans,

placidity could
be
preserved
by.
the
Big

Active Market in—

Analysis

prospects for real

■

Bought—Sold—Quoted

Treaty—Another-0. S.."gravy train" for Russia—Worldwide stimulation to Nafionalism—Our'riftwith Moscow in the Atom now more portentous than ever. 1
•
Approached from reality, the Parid peace ^confeteHOT to^d. not'be opening. jvitfe. more.:t>opeless
With the Italian

Teletype NY,HT24;:

ness-

is bow. to obtain 'a reasonabie

v;4^:;C^nffnui^'Vh page"634)

Pnnta

Alegre Sugar
rV"r-:^

Quotations Upon Request

FARH & CO.
Members
New York

New

120

New
Curb

;

York Stock Exchange «
Excft. Assoc. Member i

York Coffee & Sugar

wall st;>

Exchangej

new:

ymucf

tel hanover 2,9612 '.

•

Keynote

•

;

jr.-'.;

Recordings, Inc.
Common Stock

•4-.\ y-'i

Phonograph Records

v--

;

...4

■*•»

Trading Market

4',••:■■■ ,i.

■

RocRwell Mfg.

Warner

Requeit

' ":

Simons; Linbmn & Co.
Members "New York Stock Exchange

HAnover 2-0600

York 4, N. Y,

Tele. NY 1-2008

;;

Troster, Currie & Summers
•"

4.:

Member: New

York

Swasey

Security

Dealer# Association

74 Trinity Place, New York :6,

Teiepbone HAnover 2-2400 i h
Private Wires to

J-G •White & Company
'*

Y..4.

Teletype .1-376-377-373

Bnffalo—Cleveland—Detroit—Pittsburgh—St. Louis

■

■; Y:;

■

INCORPORATED

37 WALL STREET

NEW YORK 5

' ; ESTABLISHED 1890

Tel. HAnover 2-9300

Stockl

Telegraph Co.
Pacific & Atlantic Telegraph Co.
Southern & Atlantic Tele. Co. r
Empire & Bay States Teleg. Co. y-

International Ocean

;

25 Broad St., Now

Western Union leased Line

Fed. Mach. & Welder

Bought <& Sold "

'Prospectus

Jefferson-Travis Corp.

Great Amer. Industries

Jfl5:':; *4'f

-'.iVr 'ilV

Finch Telecommunications

MAmifaGturer

;
;*

For .Ttanks, Brokers & Dealers

Tele. NY 1-1815

bought

•

sold

quoted ^

Arnhold and S. Bieichroeder
New York

30 Broad St.
wmtehflil 3-9200

Teletype NY

1-513

Number 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Kiimber 4512

More Statistical Miasma
Articles and News
Will

Page

;N.:jjn^:TaR^ XJ|>;^ E^nacm^ Fi^iiclal LeaaeHhlp--

AND COMPANY

;/;y^iviah Wright'—.";i;-r-^.;Tfe'oyer."
Coming Nationalization
»'

of BritishY

THAT'S HOW

Steel: fadti^iry;-; A;.iesi

OBSOLETESARE BORN!

t'4se—a fc-feaphael--.:.y.:---_J^^

;

;.b^ioiK~T-2uite

|
Vital
t

Just arrived

p4ctni American Business Today—Leon Hen-

Issues

60$

.V-----..-.--

dersori 1-

StatisticalvMiasm

___>

among

Canada. ..Some swell
being floated here-rr
them;, are a„ lot pf

future obsoletes that make

'' 601
607

M.^

Administrative Procedure (editorial)_____

but

stocks

mining

■

Obsolete Securities

A Business Man Looks at the National Economy—

drool!

Dept.

ISfkW

STREET;

99 WALL

YORK

Telephone: WHitehall 4-6551

^Hober^ B. ."VVasoh— 000
olf Stocks

:•!; Present Reaction

Robert Tanh'auser in-_n

indicatfoii bl Bear Market---

•

-----

Boole Cadillac

600.

Government Loans to

Business—Henry* T. Bodman-611
Challenges to the jEconomid Future—Alfred Schindler---— 613
Secret'Clauses in Loan Agreement?—Paul Einzig——
613

Financing Difficulties of Small Business—Theodore N.

k^ Beckman

United

Y The Washington Sideshow—Siegfried Frohlich
I y

(

Dye

Common

660

BoardT«-r?,—---—Dover

Wolcott Hails ■ Decontrol

Piece

Pfd.

Estate

Broadway

617

.y-_r—

•-

Real

Schulte

butlook for Railroad Equities—Harold F. Messner.__._6i4

The

„

Hotel Barbizoh

Price Uncertainties Hamper Business Planning

Mimben

608
609

Truman Dubious of New OPA Act—

New York

Security Dealer9 aim.

Broadway

Now York 6; N. Y.
HAaoyer 2-8970
Teletypa NY 1.1209

Full

Text.of New;OPA Bill—
—-——
609
.Wallace and Small Report on Expanding Trade——610
OPA Actions Under. New Law. —-~r> - - -----—- -——610
-

Grocery Manufacturers

Pledge Support of OPA...- 610

SEC, Alms Include Registration Of ^Counteiv'

tssuesp^^^----6ll

Member Firms of NYSE Discuss Pro's and

Con's of

■.;«•

CROWELL-COLUER

y/'Permissive Incorporation"
612
CIO-UAW Would Drop Pay-Rise Move———,:—— 615
Plan Hearing

Prospectus oin Requeet

.Union's Petition for Sole Bargaining

Rights in Wall Street:::.^..:...-———
Silver.Price Prospects-^.---—
—
Mead Sees Danger in Business Concentration..—......
Administrative procedure Act (Text of)
—
Economics in One Lesson (Henry Hazlitt)—Book Review-.
/ Holds Budget Deficit Now Inexcusable—
pood Outlook, Highly Favorable, Says Bullis
/ Considering Z\'i% Itate oti Foreign Loans......—________
y

—

615
617
617

j.r.
>

619

Keiuy ato.ibc.

ti> -'Wif J I*t jb'&nkwtiExchange PI., New York 5

ifefcSjgJK <tut W'Wt.JE*-

HAnover

619

648
648
660

2-^785

So. La Salle Stn Chicago 3

Randolph 8924 '
68

Tiyx ,CQ 616

•

Devonshire St^ Boston 0

RichmonA. 4'321
PrlvateYV^lres:

Regular Features
Bank and Insurance

•-

TWX NY 1-2733-4-S

Stocks.—..

—.

630

Boston^.
*

Broker-Dealer Personnel Itemsr--——
......
...
649
Businessman's Bookshelf yli—649
/Canadian Securities— -<-*-*
622

Cleveland ; $
Chicago
Los Angeles
k New York

—

Dealer-Broker Investment Recommendations——

616

Mutual Fundi

626

i.y—'—

TRAbiNG MARKETS

653

Security Issues Calendar--—

New

616

|nsta; Notes
Observations—A. Wilfred May..——

—

Thiokol

606

on,GQverriments__——i—————————— 624
Ouf Reporter's Report—
————
648
/ ProspectivevSecurity Offerings........
___656
* Public
ttiiitr Securities.Z-i
620
Railroad Securities
——' 628
t

Corp,

Our Reporter

Laclecle-Chrlsty Clay
Products

——

•Real Estate

Securities^.4„.yrT—

—

614

—

.ihm

•ft.;

Securities Now in Registration.
—
...
650
Securities Salesman's Corner'—————
632
Tomorrow's Markets (Walter' Whyte Saysli/--y_--l-;i--y- 649
-

iroaiwov
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Record

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Monthly,
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;

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apcount of.the fluctuations in

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Industrial

PREFERRED STOCKS

!l.JJS W ■)

Spencer Trask. & Con

drapers'. Gardens, London, E. C., England,
& Smith. YY/n fJ' \
i

c/o Edwards

Y'v ■

.vY-Y,
•a,

DUNNE&CO

•

Reentered as second-class matter Pebru-r

kry. 25(«1942,- at: the post office - at1 'Ne^f
York,', N, Y., under/the Act of March
'Y3, 1879.
< -;■ ^;-^;Y^':4.

Members New York Security Dealers Asw%.

Telephone
Wr VL,

HAnovfe^-^30®

y,;.

dfbletype^NY 1-5

Members New York Stock Exchan&a

■

—

(—

...

•••'

t. •

•>

'i'".

♦Parks Aircraft.

CERTIFICATES

Victor-Monaghan Company

|| etymon stock
Piedhiont MBmdf acturin#^[ii^diij)

Lawyers Mortgage Co*
^

Lawyers Title & Cuar. Co.
t.»'<•:&■";'Yj
•

•'?>• 0«• m^i,r9f

•*•

.y<r pK'

♦Miles

Public

Stock*-:

Incorporated

<&'&

Natibnal Bank f

* Prospectus upon request

Prudence Co.

NX 5

«tMembers New .York Stock,Exchange Ij
Belt

Trust Co.^

fiewburger, Loib&bo.
15 Broad

Shoes

National Radiator

N.T. Title &Mtge. Co.

I^'y" . •♦V"''1

•*

I^Bales & -Service^:. Iitft//.

:;o

.•'Y-^V:

4, N, Y.

»Y" Private Wire to Boston

TiTLE COMPANY

25 BroaA St., New York

WHitehail .3-0272—Teletypo j^fY1-950

TeieWpe

WHitehall 4-6330

l.2633 ;

:\,;Y?"r; ,'Yv WY'vYY '% '

74 Trinity
Telephone;

ESTABlCSHED 1914yY

. {

C. E. Unterberg & Co.
Members N. Y. Security Dealers

f Ifcee, New Ydrfe 6; Ni Y.
s.

Teletypes:

Ask'n

Broadway, New York 6, N. .Y.
Telephone BOwling Green 9-3566

61
,

■>

bow!iisg-cnreen9!,74tf0^^i^^ny^375.4& ny 1-2751

Teletype

NY 1-1666,

fi"ffc*V
L*4**
^v.iwwtfPWKSWW*3^ -VCPtv!

«vww

THE

X:OM^ERCIAliW PINANClAfi^kRQNiCtiE

Thursday, August 1,194G

A Business Man Looks At

The National

Economy

ACTUAL MARKETS

1 IN 250

ACTIVE ISSUES

;

Aero Chemical!

American Bantam Car

Amer. Window Glass*
Com. & Pfd.

...

Automatic Instrument
;! Barcalo Mfg.

Co.*

Cinecolor

Chicago R. I. & Pac.
Old Pfd.

Diebold Inc.
District Theatres'!

Douglas Shoe*
Elec. Refrac. & Alloys
Gt. Amer. Industries

Hartford-Empire Co.*
Jessop Steel
Lanova*.

Mastic Asphalt

Michigan Chemical
Missouri Pac.
Old Pfd.

Mohawk Rubber*

"Would You Suggest Something

Cheap That Only Goes Up?,v

Moxie

N.Y. New Hay. & Hart.
Old

Price Unceitainties

Pfd.

N. 0. Texas & Mexico
v;

Business

Purolator Prod.*

Hamper

Planning

Richardson Co.

Taylor-Wharton*
Tenn. Products:
-

Thomas Steelt

Upson Corp.*
U. S. Air Conditioning

*The FR Corporation

^District TTheatres

*Dumont Electric

*Hungerford Plastics

^Princess Vogue Shops

^Stratford Pen
■'

•

Prospectus Available

Vacuum Concrete
Alabama

FIRST COLONY CORPORATION

Mills*

Aspinook Corp.*

Members New York

Security Dealers Association

Wall Street

New York 5,

Tel. HAnover 2-8080

Teletype NY

N. Y.

Textron Wrnts. & Pfd.
American Gas & Pow.

Cent. States Elec., Com.

Bought

.dloS

EASTERN CORPORATION

Iowa Pub. Ser. Com.

MIDLAND REALIZATION CO.

New England P. S. Com.

MIDLAND UTILITIES COMPANY

Puget S'nd P. & L Com.

ELECTRIC BOAT CO. Cum. Conv. $2 Preferred

Southeastern Corp.

Central National

Southwest Natural Gas
Standard Gas Elec.

Corporation

ESTABLISHED 1927

22 East 40th

Street, New York 16, N. Y.

Telephone: LExington 2-7300

—

fProspectue Upon Request
*Bulletin

Circular

upon

requeat

♦Argo Oil Corp.

Aeronca Aircraft Com. 4b Pfd.

American Alliance

Standard Comm. Tobacco

general Crude Oil

Central Paper,...

Insurance

Osgood Co.

^iennessee Prod,

♦Wellman

Members N. V. Security Dealer; Assn.

♦Temple Coal Pfd.

Haile

Engineering

Textiles, Inc.

Mines

Security Insurance

Great American Industries

Direct Wires trvCh.aatfo on.l Ph.'Ta.
ENTERPRISE PHONES

Iiarlf'd 6] 11

Buff. 6021

'1?*

;

'"tVv-Ow''

Incorporated' ^

J.I£.Rice,Jr,&€a
if

Members New York Security Dealers Asportation

Bought—Sold—Quoted '

U. S. Finishing Com, & Pfd.

request

Seligman, Lubetkin & Co

Bos. 2100

Descriptive Circulars

i. i-£

Established 1908

Members N. J.

V]'

Security Dealers Ann,

REctor

B^oad^Str^^-'New^Yopt'd'^I^x^rHAnbr^'^lOCi;'

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

Members

and

Nero

other

WALL ST.
:

;

York Stock Exchange '< •

leading exchanges ] ^;.

•

NEW YORK 5

Telephone Dlgby 4-2525 fS

Number 164

Number 4512

THE COMMERCIAL & FINANCIAL CHRONICLE

609

d-T77

Jos. Brown Comptroller
President Dubious of New OPA Act Present Reaction of Stocks ■
to Congress
is
guarantee for avoiding
inflation, but admits it is improvement
vetoed bill. Hits placing
No Indication of Ben Market Of Courts & Company fJ
•

In message

says measure

oyer

ATLANTA,

divided responsibility in price control administration but does not

By ROBERT TANHAUSER

object to decontrol board. Warnspricecontrol is .only one means
of Combating inflation and hints at rigorous tax policy.
Says he'll
call special session of Congress if Act proves ineffective^:

Partner, Newburger & Hano

.Following his signing; Of the- new .OPA Extension Act, Presi~
dent

Harry

S. Truman

leased'

„

States:

he sent to
Congress ^ i n.'

3.71; amending

sage

which, he
iterated

re¬

•

text

■'

bear market, but- is only

-which-: occurs^

■frequently
■long
m

his

fol¬

Congress

quite

the

priests of the Dow

divided

faithful

into

wait

must

schisms
their

for

ate amount of

anxiety about

tion.

United

one

(Continued

was

market's

basic

forced

630)

on page

the

easily

R. S. Tanhouser

ceilings and

monetary and fiscal measures to
counteract
inflationary
tenden¬
cies, though without making any
definite proposals.
The Changes in the Law

The principal changes made in
present law, as contrasted
with the vetoed bill are (1) the
.

the

back

renews

by Senate.

under¬

stood. When

the

Taft

amend-

Bank; Daniel W. Bell, for¬
mer
Under - Secretary
of
the
Treasury, and now a Washington
banker, and George H. Mead,
Chairman of Mead Pulp & Paper
Co., former member of the War
Labor Board, who was at one time
Chairman of the Industrial Advi¬

the

the base period for considera¬
tion of producers and distributors

members.

the temporary in¬

appointment

members

ill-fated

the

for

cause

considerable

Even
dents

Dow

the

action, who

Theorists,

market's

of their

per

farm

tion

been

employed by Courts & Co.
October

in the armed forces.

...

classical,

The

upward.

fashioned bear market
of

financial

reaction.

and

was

Hew York;

sort

chain

First security prices go

down, then credit stringency ap¬
and then production and
employment diminishes, and then
security prices go down further
and the entire cycle spirals
to

pears,

lower

and

curities

levels

their

for

sell

until

Abitibi Pr. &

se¬

values and business activity sinks
to

was

Electrolux

purely sustenance level. That
the basic pattern of previous
markets

bear

but

(Continued

| doubt

some

on page

Noranda Mines

the

Chicago

■

page

Lake

Com.

Standard

Y. 5

CO;

HAnover 2-0980

BeQ Teletype NY 1-395

Montreal

Yoronto

Sllouls -• Kansas City

Los Angeles

*DU MONT LABORATORIES

Members New York Security Deaters Astfn
32 Broadway

Board of Trado Bldg.

NEW YORK 4

CHICAGO 4
Harrison

Digby 4-8640

Teletype

Teletype NY 1-832-834

**HIGGINS INC.

2075

*P0RTSM0UTH STEEL

129

White & Company

"'REGAL SHOE

Baum, Bernheimer Co.

ST. LOUIS

KANSAS CITY

Pledger & Company, Inc.

LOS ANGELES

Bo-ekt-Sold-jguoted
'

'Prospectus
**Circular

Solar

640)

J. F.

Manufacturing Corp.

on
on

Request
Request

S/S

Members New Orleans Stock Exchange

41 Broad St.

New Orleans 12, La.
'

Carondelet

TWX NY

BOUGHT

—

Bldg.

120

4321

Boston

Cleveland &

;

/ \

Chicago

New York

f/; j

—

QUOTED

New York Hanseatic
...

Devonshire St., Boston 9

Los Angeles

1975

SOLD

1-2733-4-5

St., Chicago 3
TWX CG 616

Private Wires:

Convertible 5% Income Debentures,

Due

PL, New York 8

Salle

Richmond

Waltham Watch Co.

& Pfd.

New York 4, N. Y.

So. La

& Pfd.

Fruit

Reilly & Co.; inc.

40 Exchange
HAnover 2-4785

Randolph 8924

Sulphur

T. J. FEIBLEMAN & CO.

Bo. 9-4432

WILLIAM ST., N.

Kerr York -

STRAUSS BROS.
-

Board, the OPA has

(Continued

Com.

Teletype NY 1-2630

r;,:

;

Direct Private Wire Service

Lane Cotton Mills Corp.

Telephone HAnover 2-9335

Sun/life Assurance

;

time

*621)

Ontario Paper Co.

Minnesota

whether it will be the pattern of
future bear markets for

Paper Com. & Pfd.

Brown Company Com. & Pfd.

salvage

BENDIX HOME APPLIANCES

Jonas & Naumburg

;

olda

economic

Pending the organiza¬

year.

••

!!■/■

the

COAST-TO-COAST

Kinney Coastal Oil

JAMES M.J00LAN & CO,

member

Piedmont Driving Club.

Galveston Houston

>4:67Wadb Streets New^Yorfc S-;:

Mr. Brown

Trustee of the Eta Trust As-

of the Decontrol Board

Jefferson

Utah Southern Oil

nity and also

with warrants

Equity Oil

30, 1929 (sic.) ex¬

cept for that time which he served

has

and

since

5% Sinking Fund Debentures, Due 1960

Expreso Aereo

laude

: cqm

HART SMITH &

of
all
three
compensation of

The

technical

certain
art, differ amongst them¬
selves.
One group holds that this
is
merely
a
normal > reaction,
Which may or may not prove to
be the first leg of the bear market.
The; second group holds that the
are

usually

stu¬

University of Georgia with

ket in determining the answer of
whether or not the trend is still

lower

the

AR /"degree

is fixed in the new law at $12,000

stead of permanent removal from
control of meat, dairy and other

products, and (3) the set¬
ting up of a three-man "Decontrol

On July 29, the Senate confirmed

mentfWhich would require 1941
as

under

Board

market

alarm.

Loan

sory

is in its fifth year—a ripe old age
for most bull markets—any set¬

25, President Harry S. Truman signed (as he stated)
OPA
extension
bill,' which was recently
passed by both Houses of Con-E¬
gress to replace the measure the Board," which
is to determine'
President had vetoed. After, sign¬ whether the exempted
food-prod
ing the bill (text appearsHbelow), ucts are not to be restored to
the President, sent to Congress price control after Aug. 20, and
a
special message (see above) which is also to have power to
in which he stated that if the order
price ' decontrols
on
all
new measure
proved unsatisfac¬ products, whenever, after study, it
such
tory he would call a special ses¬ decides
controls
are 1 no
sion of the Congress to revise it. longer necessary. It may also re¬
In his message, also, the Presi¬ store controls. The President has
dent urged the formulation of a nominated
to
this
"Decontrol
"rigorous tax policy as one of the Board," Roy L. Thomson, Presi¬
alternatives" to the ravages of in¬ dent of the New Orleans Federal
He also advocated sterner

direc¬

This

exchanges. :Mr, Brown, who is a
native of Atlanta, graduated from

sociation of the Chi Phi Frater*

disproportion¬

falls far
advised,
best bill

On July

(2)

While the high
are

forthwith.

market

There are, however, other tests
which we can apply to the mar¬

"reluctantly"^ the

markups;

bear

final conclusions.

control Board named and confirmed

February lows, we will

provoked

price controls on all
commodities except meats, dairy products, grains and certain other
food items. Three man Decontrol Board set up with
power to ex¬
tend decontrol on food products after Aug. 20. Members of De-

elimination

and

theory

actually

been

was the normal,
unless
prices " hold

moderate, has

Full Text oi New OPA Bill

flation.

decline

above the

has
.

however, that it is the
the Congress will now pass. It is
clear, moreover, that it is a bet¬

New Act; will restore tent

•

;■. ■>;: >

assure

normal reversal,

• ■

February decline

However, the
decline, which

bull

k ets.

ter bill than the

the

;

..'

•

free economy. This bill
short of that hope.
I am

The

message
lows:

beginnings ol

ally stable in these last few crit¬
ical months of the transition to a

the efficacy of
the present
measure.

not the

the people
.that prices would remain gener¬

also expressed
as

•

• Streeti nieihbers of - the New
York Stock Exchange and other

inclined to believe that the present stock market reaction

are

Joseph

Ctta

long period of price advances.
factors of self-generating and accelerating declines.

I had hoped-for a,bill under
which the government could with

full ^confidence

vetoed, and
doubts

Ft. J. Res. is

price

the

control
laws and extending them for an¬
other year.
I have signed this
measure with reluctance,

his;

objections
to
t h e previous
bill which he

Sees

;

."r'Uhave today signed

mes- *

—

trollefc: of "Courts &' Co.,- 11 Mari-*

Broker contends recent price declines may be
only normal reversal
and sure quite moderate,
considering

re¬

Brown has' been appointed Comp-

♦Air Products, Inc.

Corporation.

^Universal Winding Co. Com.

BROADWAY, NEW YORK S, N. Y.

Telephone:'BArclay 7-5660

Com. & "A"

Teletype: NY 1-583

"Raytheon Manufacturing Co.

••</'/: /1 :■■■-■:

Bell Tel.—NY-1-493

$2.40 Coav. Preferred
•Prospectus on request C:

Baker Raulang

DravoCorp.*

San Nap Pak

Curb and, Unlisted

Eastern Sugar Associates

Securities

Preferred

■

;

MICHAEL HEANEY,

Preferred

Common

York

Telephone:

REctor 2-8600

Bell Teletype:/NY 1-635

Common;;;:/

American Insulator

'Reynolds Stock Exchange
& Co.

Members New

/120 Broadway, New York 5, N. Y,
,

WALTER KANE, Asst*: Mgr,

Bought

American Beverage

——

Sold

'Prospectus

—

Quoted

on request

•

"Preferred-

Joseph McManus & Co.
v;-Members New

York Curb Exchange
Chicago Stock Exchange
^
-

39 Broadway

.Digby 4-3122

New York 6

Teletype NY 1-1610

FREDERIC H. HATCH 1 CO., INC.
PETER BARKEN
32

§ MEMBERS N.

Broadway, New York 4, N. Y.

Tel. WHitehall 4-6430

Tele. NY 1-2500

63 Wall

Established 1888

Y. SECURITY DEALERS ASSOCIATION

Street, New York 5, N.

Y.I I

B«U ^Teletype NY 1-697

Support the
RED CROSS!

'2m

f '' \

■■
A

■■2' "

• •«

1 '

T^r'

t *' '-r* V-

r "■

41 -y*

--i1?

(

'jV

j? „f\' '

'i, - * Vr

■r,-"fe'13.':-!,i:v-'t

"'"'

'■

•

■

OPA Actions

<;?■

$2 >.»* •«{

p®u! S. Willis, President gf Grocery Manufacturers

Association

>«t jroal ofTuU production at fair»
price controU may retult in scarcities.

^^'■\r r*v'■V*-:*'*

rnbmmmm&m:

During June the nation's econ- <8>omy continued to expand.
Em-

ployment, in¬

new

'•Hi

comd, and in¬
dustrial

o u

pally
'2* in

■

textiles and wearing apparel.

ture

regulations, as if the

were

fu¬

30.

course

the

es¬

greater

from

act

or
feed
in whole

stantial

sellers,

and

covered

;

matically Vubject to thbse iaioo

646)

special actions to coyer
in subsidies and other
factors relating to coffee, flour,
changes

cornmeal

and

-.■u*

wet

32%, Bank of Manhattan

underlying economics of the .money situa¬

continuing increase in the

metioned

items

dividends.

request

the

greater flow of

"If

OPA will speed the grant¬

regulations which otherwise stifle

production, the American food
manufacturer will be in

the.law

tion

sufficient

posi¬

the country with

supply

"foods

prices."

and

products whieh started to pick up

increase

of manufacturers

plants

market

Parkes Gets Marlin
v.
PHIl44DELPHiA,PA.''—"New-'

their

carrange

Hunter & Co.

have

risen

42%

Opens New

Branch in Saugerties
Hunter

Co.,

members

York Security Dealers
42

rates in food processing

period.

same

LOANS

New York 5, N. Y.

Telephone: WHitehall 3-2050

business,

mer¬

ing of such requests and correct

administers
pricing regulations accordingly.
"The production of many food
sound

manufacturer

from

consumer.

adopts
an entirely new and constructive
attitude towards industry, recog¬
nizes the proven economics of

and wage

GOVERNMENT SECURITIES

20 Broad Street

once-scarce

chandise

amount

BANK STOCKS

same

Incorporated

DEALERS

U. S.

will be accompanied* by the much

essen¬

in the products at a reasonable profit.
price of men's and boys' dress In the grocery field, the basic
shirts and boys' sport shirts in costs of
production have risen
specific low-cost categories, was considerably,
The farmer now
also announced. This was a move receives 65% more
money for his
(Continued on page 647)
raw materials than he did in 1941
about

Kugel, Stone 8c Co.
.<•.

sup¬

administration

the

small

very

|n^^..^wmte^dri|^

year's estimated operating net per share* We believe

Circular

sellers go back to
ceilings until noti¬

enactment

from

unless

fied of changes in their suppliers'
ceiliiigs.
- 4/
••

Capital Stock yield* 3.7% on the present $1.20 divi¬
dend rate, and is selling at about ten times this

OPA food reg¬

sult

during the 25 days in which the
food industry was enabled to act Sons, 1528 Walnut Street, while
without government controls is vacationing ' in
Maryland
last
now
in danger of falling off to
month*' snaggecfrinW
the point where housewives will
Increases in Textile and Food
again be faced
with the
un¬ %(jt
Products
f nd..
pleasant drudgery of searching
On July 29, the OPA announced
neighborhood stores for needed less odoriferous, he says, than'
retail
ceiling f prices
of men's foods," Mr. Willis said. "Further¬
those collected by his colleagues
shirts, shorts and pajamas would more, full production and full em¬
in t^e Traciipg' Department
be allowed to go up by 11%. '
during
ployment cannot become realities
In addition to the 11% on the
'
"
;
unless OPA ceiling prices allow his absence.'

BANK OF MANHATTAN

Bank of Manhattan's earnings and

milling

corn

"' •*"***

all

ulations,

that the

announce

their June 30

tion makes probable

but

amount—a penny or.two here and
there.
These small price rises

goods at reasonable prices.
sub¬ The pledges were contained in a
along statement by Paul S. Willis, pres¬

ceilings will
cle~

remaimphdk^

Under the major

;

ply

too-low

grocery ' producer!*
granted, prices will be in¬

creased

products tial

from

part

products.

vCi^aiot,- j

'(■

At current price around

sufficent

from

'\by,

Wheire

possible

produce
Paul S. Willis

exempts livestock, milk,

or
food
manufactured

efforts

relief

secure

made

make

prices hnd ^ it vi$ v td ;be
expected that applications will be

they

removed

„

Ceiling

ewives

would

at a loss.4
*]
"Congress ' has liberalized. the
by which manufacturers

can

nation's

o u s

that

are

eggs

O^A pric^ schedules, regulations
or
orders oh June '^Qr-^ir;.^oi^er'
t:V^ugpi^r^
^uio-

tion activity which increased by.

It is erroneous
all agricultural

cottonseed, soybeans, poultry and

made

buyers

the', further gain in construe-;

on page

the' Ad¬

Act

promised

Another feature of the. month

(Continued

t h

};

method

them,
necessary as a
with grains and livestock or poul¬ ident of the organization, issued
result
of the
on July 27.
n^w ac|kbr bpcatise of any hdjust- try feeds made from grains!
Mr.
Willis
warned,
however,
Until Sept. 1, Mr. porter em¬
n^ntsfn ^roqess^on ^unc 3(1* ^ ,< phasized, all agricultural com¬ that artificial shortages of many
All. industries and bqsinessjes,
essential food products will re¬
modities now under

during June than during May.
was

control,

that

assume

The

Paul Porter.,

spurts reflected further price1 ad¬
vances, the physical quantities of
goods produced also increased.'
Shipments of consumer-durable
were

and

father thap

Price

new

Control

price control until the Secretary
of Agriculture certifies on Sept.
1 items which are in short supply.

adjust¬

ments

the basis
Although
part of the May-to-June buying
on

preliminary report.

tinder

commodities

for

any

admin-

istrat ion

Foods

ministrator said.

new

basis

■'

remain'

Except

law

were

Porter

in his

Approximately 40% of all foods

specific¬
delay in
reestablishing ally makes
provi¬
OPA; but an upward trend seems other
assured regardless of the details sions, these re¬
of any act which1 would reimpose stored ceilings
will serve as
price controls, he added.
Retail sales for June

Price

Paul

•:

j'' L'L 'A!
these increases are justified and
alsb believe that the manufac-i
turer is justified in
seeking to
produce his goods ! at a profit

fhAcsa^' ' finwaai'eo-^

Administrator

June

where the

arises

from

iopds, in particular,

port to

the

go
back to
where they '

un-

i nty

prices

highs

their full suntheir fill 1 sup

.■■HMBHI

act had

new
become law on June 30.

that under the >

about the

new

today pledged1

!y'y yiyy>y

following approval by the Presi¬

statement issued on July 26,

Act all ceilings

Much
c e r

timated at

Control Extension Act, Price Administrator Paul A.
Wallace Porter. ^ stated- >;■;'y I--• ■""":

announced

^uc? about ?5%

Grocery Manufacturers of America, Inc., who
pro.of tte nation's packaged food and ferodery .proclucts

dent of the Price

July 25.

Henry A. Wallace

issue.?statement ?j...

regarding rents. New price ceilings announced,

Gives rulings

steadily up¬
wards, Se Cretary of Com¬
merce Henry
A.

Members of

p*»>A-

moved

put all

Broadway," New

nounce

the

New.

Association,
York,

opening of

an¬

branch^

office at 262 Main Street, Sauger¬

believe

ties, New York, under the man¬
agement of B. C. Hunter.

with banks

Richmond Cedar Works

Teletype: N. Y. 1-1822

Tennessee

Goverameiit Bonds

Products

*Benguet Consolidated
Mining

American Vitrified Proctucts

iv*%.
95%

Washington Properties

of par value

Laird & Co.

National Press Bldg.

Listed Securities

Flamingo Air Service, Inc.

Union Brewing Co.

N. Y. & Rich. Gas

iy2% to 2%%

Capital Stock

Common

,Nationai Shirt Shop

(50% to 70% Market Value)

*Viewtone Television

Montague Rod & Reel

Bought—Sold—Quoted

& Radio

We prefer loans

from $5,000

H0RRSSE$H^SIEIt
ESTABLISHED 1914

'■;

NY 1-375

"V•

•-

■%

Buy Dollars at

^!|

;

■

-1

••

St., St. Louis 2.

v.;

Members

Co.

Beach

Bought

MAHER & HULSEBOSCH;
Brokers
In

Investment

Dealers

; ^ r: r

—

Sold

—

Ass'n

York

:' Teletype NY 1-1525

Soya Corporation
of America
An interesting? speculation v
in the food industry.

Super-Cold Corp.

Price 5%

Quoted

Analysis

Request

R. G. ILSLEY & CO.

Securities

62 William St.

Tele. NY 1-2178

Harrisburg-Pittsburgh-Sjrracuse-Miami

;*,

Philadelphia Stock Exchange

52 WALL ST., NEIf YORK 5, N. Y.
HANOVER 2-7064

Established 1922

42 Broadway, New

Linn Coach & Truck

Can. Western Lumber Co., Ltd.

DIgby 1-3324

Cosmo Records

V.T.C.

request.

Members N. Y. Security Dealers

' *

Established 1926

Horn Silver

on Kearney and TrecJcer.:

Tel. Capitol 8950

Tele. BS 169

JOHN I. 0'KANE JR. & CO.

27 State St., Boston 9

4-1388'

Tele.NT l-8«

GA. 0408

history is immediately available to

dealers by requesting data'Cq

Wgby

Steep; Rock Iron Mines, Ltd.

?:■'

Discount

Blair F. Claybau^h

;
y

418 Olive

NY 1-2751

Tel.

Current market below net current asset value..

Up-to-date comment and tabulated
i

—

Dividends quarterly at rate of $1.50 per annum.
Net current asset value, per "share $30.95.
Earnings 1945 — $2.98 after $9.41 E.P.T.

H. D. KNOX & GO.

R. C. LONG & CO.

KEARNEY & TRECKER
v.

-i

|o $l,0p0,000
II Broadway, N. T. 4

Teletypes:

BOwling Green 9-7400

"Prospectus mailed

Moderate commission

Telephone:

I M

Trinity Place, New York 6, N. Y.

dividual

employment, individual in¬

Dept. head and Ciyilian Production Administrator announces
and industrial output ,moyed steadily upward in:June,
,
;,

Commerce
come

Expanding Trade

..on

Thursday, August 1, 1946

Vkt •f&\ v'.*> V>-i'V, 4*+$ • ■

!*?#/,

-.-i-. i'ew-rivvj'." -

a »»-;^ \.-:'i

IE
THE COMMERCIAL & FINANCIAL CHRONICLE
CHRON

New York 5, N. Y.
'"-Telephone"
'■**
Teletype
WHitehall 4-2422
NY 1-2613
:-:v,y
'
Branch Office "/
y 113 Hudson St., Jersey City, N. J.

Member of National Association

^ •

■

of Securities Dealers, Inc.
:

64 Wall Street/

New York 5

HAnover 2-1140 ^Teletype

NY i-2096

j
I

PETER MORGAN & CO.
31 Nassau

Street

Tel. BA 7-5161

New York 5, N. Y.

Tele. NY 1-2078

Number 164

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4512

Governxnexit Loans to Business

Syracuse Transit Corporation
Capitalization—-61,461 shs.
Five Years* Progress:

No Par Common

—

Redeemed entire funded debt—

Surplus $17.70 per share— -

Average Earnings—$3.45 per share
After Excess Profits Tax of

$6.32—

Approximate Yield—6V2 %
Memorandum

Dealers

Request,

J. V. Manganaro Co.
50 BROAD STREET, NEW YORK

Teletype—NY 1-2970

Telephone—HAnover 2-3878-9

TRADING MARKETS IN

Preferreds & Commons

„

Chi., Milw., St. Paul & Pac.

When the hunt is on—when you

information

necessary to

need that special

Rutland Railroad

Denver & Rid Grande West.

St.

Louis-San Francisco

Duluih, So. Shore & Atlantic

St. Louis Southwestern

Missouri Pacific

deal, sound the

hunting horn and we'll scout the quarry!
Our

Old Colony Railroad

Chi., Rock Island & Pacific

■

Seaboard Air Line

N. Y., New Haven $

fully staffed and experienced- organization is

N. Y^

Western Pacific"
Wisconsin Central

Hartford

Ontario & Western

constantly tracking down facts pertaining to markets
and market conditions—and we'll be

pass on

Of course,

efforts to build

offer in

Teletype NY 1-609

our

mutually profitable business. Just tele¬

type or phone us when we can

yourself

N. Y.

70 Pine Street, New York 5,
WHitehall 4-4970

this is only part of our comprehensive

service to dealers—a service which we
For Banks, Brokers and Dealers

G, A. Saxton & Co., Inc.

only too glad to

the facts you may need—with dispatch 1

or to your

be of help, either to

Fuller Houses, Inc

customers.

Capital Stock
Bought—Sold—Quoted

NEW YORK 5

Request

201 Devonshire

and
J

n 44

120

York* Stock Exchange ;i
"

New York Curb Exchange
, ,

v. * ^

■ .%

other Exchanges
V

-*\;

Broadway,
Telephone:

t' - -

<*y Jv

GOVERNMENT,

PUBLIC UTILITY,
AND

- V' \ • »-•.

MUNICIPAL,

Exchange

"■

New York 5

REctor 2-5000

HEMBCRi
.
,

MAN

Telephone:

Boston 9

LAlayette 4620

VpHK ITOCK

19 Congress St.

C U STQMERS
SAVINGS
TO THE COAST WILL BE AVAILABLE
UNTIL THIS TIME DAILY

DURING DAYLIGHT

OUR WIRE

BONDS

STOCKS

6{3Q P.M. E.D.S.T#

TO ACCdMM O DATE

RAILROAD,

INjbluSTRIAL

INVESTMENT

COAST EXCHANGES

REMAIN OPEN UNTIL

NY 1-375 & NY 1-2751

„

PACIFIC

Members TTew,

Teletype NY 1-993

Street; BOSTON 10

Members New York Stock

Telephone HAnover 2-1700

Street

•Descriptive circular and

ftew York 6, N. Y.

BOwling Green 9-7400
68 William

Trinity Place,

WW Telephone: T-"' Teletypes:&

Bought and Sold

Prospectus

Established 1914 /

TRANcisBD

NEW YORK

EXGH*NBE-NEW YORK CURB IXBHAN9B t^OHANOC'kOS ANOEI.*® STOCK BXBHAHBI*^

STOCK

SAN FRANCISCO

SEATTLE

SPOKANE

Member Firms of N. Y. Stock Exchange Discuss
Pro's and Con's of "Permissive Incorporation'7

Challenges to the Economic Future
>

By ALFRED SCHINDLER*

Under Secretary of Commerce

Commerce Department official lists

as stumbling blocks to postwar
prices; (2) industrial conflict; and (3)
economic isolationism.
Says profiteering is bad for business and
will ultimately reduce production and destroy good-will.
Reiterates
his plan of avoiding industrial conflicts by voluntary establishment
of impartial labor-management boards, with final authority to fix
wages and labor conditions.
Holds we must extend sound foreign
credits to avoid economic isolationism, and advocates aiding foreign

'prosperity (1)

;

Board of Governors of the Exchange will decide on Sept. 12 whether or not to put the question up to
a vote. Both sides confident they h ave a majority with 'them but the Stock
Exchange

the members for

runaway:

industrialization.

opinion is about evenly divided. Proponents say they will try again if they fail this time.
Antagonists, seeing danger in incorporation, say, "It shouldn't happen!" It is the tax angle that appears
to be dominating the thinking of a large number of firms on the question.
"Chronicle" Welcomes
communications from members of the Exchange on the subject.

terrible

war

greatly impoverished.

It is poorer in manpower by the number of the
;
"
natural re-<£

slain, poorer in

by the at any time in the history of the

sources

that

amount

world!

been

This opportunity and this re¬
sponsibility still are in the palm
troyed, poorer of our hand, waiting for us to act
in that almost on them
"quickly, fully and wisely
the
entire so that we can move
vigorously
world's
pro¬ and
courageously forward along

spent and de-

ductive
and

plant

manpow¬

has

spent

the difficult road toward

economic future.

road"

I say

there

because

a greater
''difficult

stum¬

are

permissive incorporation of their firms is the subject of lively; discussion
the members of the New York Stock Exch ange at the present time. The Board of Governors
of the Exchange will decide on Sept. 12 whether or not to put the matter up to the members for a vote
and, if it rules affirmatively, balloting will probably commence right away.
For the proposition to
carry, a majority vote of the ma¬
ness
on
the Exchange, the de¬
The men who see only pitfalls
jority of the membership within
two weeks (or four weeks if the mand for Exchange seats will be in incorporation, however, admit
heightened. The price of a seat the appeal which' the possible
majority of the membership has
not voted wtihin the two week will increase and the higher price prospect of enlarged business has
will induce some of the more in¬ for the floor trader but
period) is necessary.
they chal¬
Both the proponents and the active members to sell out. New lenge the possibility of any such
firms can thus enter the industry, increase
in
business from .this
antagonists of incorporation claim
majorities for their v sides.
The bringing with them their business source. For instance, they say, If
The question of the

among

The world has emerged from a

Stock

Exchange itself which has
for comment on the pro's
and con's of the issue says that
on the basis of the replies it has
received and verbal opinions it
asked

wearing years
in
producing
v

Schindler

has'

way-rstumbling

Alfred

bling blocks that lie along the
trip

contacts and sales staffs and new
business
will
develop.
In the
process

will

us up

blocks that can
hard and take the skin

off the knees of

our

national well-

being.

look..;:;.,,.
As the

Stumbling Blocks to Prosperity

arse¬

sentiment

heard

Even

about

rest of the world

left

was

'the war's end found

raggept,
with

ence

(1) Runaway prices.

exploit the Exchange for leads to

listed

There is

(2) Industrial conflict.

"smart"

understanding
aftnd better trained labor supply, of what these stumbling blocks
With, a large volume of accumu¬ are like and what they mean to all
lated domestic demand begging to ofrus is-imperative-if; we are not
$>e -satisfied-, with a greatly - in¬ to trip ourselves up.

creased ,flow

ners

sober
.

sumers

income

to-sustain

con¬

Let's

consider

the

first

one

—

this -^demand,

men

divided

Board

the

question,

Governors

pointed

seats

vote.

only

out,

the

MR. D. J. McMILLEN

part¬

MR. ARTHUR T. STRECKER
formerly Major, A.
'

can

runaway prices. On the one hand;
large accumulated savings too ihany things rare in short
sup¬
#diich ?could ^ serve as a stop^gap
ply. On the other hand, consum¬
4bver short - periods of difficulty*
ers are making more money, after
^nd, lastly, with a huge ioreigh
taxes, than ever before. Further^
^demand for our goods.
y> .
more, their accumulated savings
■'
In effect, at the * end of the war in liquid form available for spend¬
American" business had. in the ing are far large^^^
ever be¬
#alm Vof c its * hands the -greatest fore. For these and other reasons
firms.
•
•
^economic opportunity and respon¬ it is not too difficult to under¬
Those who favor incorporation
sibility: ever offered - any country. stand why we so often find con¬
base their position partly on the
sumers standing in line for some
of the many scarce articles they premise that such a move would
*An address by Mr. Schindler
want to buy.
But in the absence bring new business to the Ex¬
Jsefore the Commerce arid Indus¬ of most price
controls, their com¬ change. Their line of reasoning is
try Association of New York, New petitive bidding for
goods too somewhat as follows: By permit¬
.

actually cast ballots on
the proposition, many of whom,
it is feared, will probably be un¬
duly influenced by the argument
advanced by the proponents that
incorporation would increase the
volume of business handled by the
Exchange and ignore the contrary
opinion of other partners in their

$Vith

our

and the association of f

the

firms that hold

member

Director of

to the
After all, it

change should not put it
members for

•

.....

V. S.)

''"■

■*

Trading/Department

our

Forty Wall Street 12 i i
Belt

Telephone: WHitehall 3-5656

Teletype;4 NY-1-2892

lYork

City,^Jiily 25, 1946.

7 ;

(Continued

on -page

f>22)

ting incorporated firms to do busi-

tq aauotirfce

(he election of

MR. WILLIAM F. EDWARDS

Vice President of

take

pleasure

the

announcing

formation

MANHATTAN BOND FUND, INC.
NEW YORK

■

" v

and his admittance

American Securities
to

conduct

Corporation

general investment banking business

and distributors of
corporate

WALL

...

Temporary offices

STREET

underwriters

•

NEW

' v

.>-T-

General Partner of >

Incorporated

New York

August 1,1946

f
YORK

are

pleased to announce the opening
of

on or

48 Wall Street,

Permanent quarters will be located at 25 Broad Street, New York
4,
\

as a

HUGH W. LONG AND COMPANY

STOCKS, INC.

MANHATTAN RESiEARCH ASSOCIATES

and municipal securities.

-i..yy-■<>::

7-- 40

about September 1,1946.

BRANCH OFFICE at

ai262 MAIN STREET1

SAUGERTIES, NEW YORK
.

William; Rosenwald

7 Chairman of

the Board

Charles G. Terry
-

President

Frederick A. Terry

Emdon Fritz

Vice President & Treasurer

Vice President

;
i

under the

Elmer G. Diefenbach

Chairman, Executive Committee

management of

B. C. HUNTER

David Malzman

Secretary

HUNTER & CO.
July 30,1946 X

646)

Wholesale and Trading Departments

the Ex¬

business.

page

MR.' HOWARD E. PHILLIPS

the industry are

the appointment of

school of thought

one

over-the-counter

new

We take pleasure in announcing

the matter.

Big

(Continued

which believes that since even the

(3) Economic isolationism.
I: think

expanded and improved capacity
tEor production, with a more ample

the

Board.

campaigning by the enthu¬

board action

over-the-

securities which

some

become

nal of democracy, as the cornu¬
What
are
these
stumbling siasts on both sides looms as a
copia out of which flowed an ever blocks? As we in the Department possibility commencing about the
^greater stream of munitions, we of Commerce see them, there are first of next month. The immedi¬
.suffered only the wear of the war three major ones.
ate strategy seems to be to influ¬
-and little of the tear.. While the

dealt in over-the-counter

also,

are now

firm which does

counter business should get a seat
on the Exchange, it would tend to

evenly divided. The tempo of the
debate is likely to be stepped up
during the next few weeks as the
various firms try to make up their
minds on which position to take.

destroy, and
poorer in our
spiritual' out¬

itself feels

Members

New

42 Broadway

York

Security Dealers 4ssociation

York 5, N. -Y.

613
that its terms

Secret Clauses in Loan Agreement?

were

agreement. If,"

contrary to the

as now

seems

Phillips, McMillen &.

cer¬

tain the wheat deal should eventu¬

Sfrecker at Ohrslrom

ally be concluded on terms differ¬
originally arranged
nothing would ever make Con¬

By PAUL EINZIG

ent from those

Correspondent tells of suspicions in Great Britain of secret
Anglo-American Loan Agreement, based oh :(1); lack
of clear statement regarding settlement of blocked sterling bal¬
ances;
(2) uncertainty regarding requirement loan proceeds be
spent in U. S.; and«(3) absence of statement on right to with¬
draw gold instead of dollars. Objections of U. S. to Anglo-Cana¬
London

clauses in the

servative Members

•

believe

dian wheat deal also

change was not
the Government as a

expected to be

raised in Parliament, in so far it

ground for suspicion.

will

concluded in December,
certain amount of suspicion in British political cir-

wholesale

possible to do

the Summer

recess

before

which is likely

and

trading
departs
Phillips formerly was

Mr.

ments.

Vice-President;

and

York

New

Manager of George R. Cooley &
Co.

and

has

been

;•"'

identified

with

Wall Street for 25 years.
Before
the war for several years he con¬
ducted his own business here.
,

ish

far

higher degree
would

than

from

appear

the

terms

the

agreement.
Discrepancies

between Brit¬

ish and Amer¬
Paul

Elnzlg

are

Govern¬

ment to

official

ican :

interpre¬

them into gold

and hold the gold

Whitman

has

associated

become

with Lyons & Shafto,
Inc., 31
it, Milk
Street. He has recently been
this answer has come very near to
serving in the U. S. Army. Prior
ah admission of the existence of at
thereto he was with R. K. Webster
least one unpublished provision.
& Company in Boston and in the
Yet another secret clause is sus¬
past was: with Lyons & Co.
in the United States or export

pected as

result of the difficul¬

ties in the conclusion of the wheat
deal with Canada.

was

under¬

With Ross, Browne, Fleming

(Special to Tlx Financial chronicle)
post¬
poned at the request of the Wash¬
CHICAGO,
ILL. — Aldis
J.
ington
Administration, for the Browne, Jr. and Thomas J. Flem¬
sake of ensuring the passage of the
ing, Jr. are with Ross, Browne &
loan agreement by the House of

stood here that the deal

was

DeTreville

Co.,

Gwynne & Co.

and

Jenks,

Mr. McMillen

■

Hallgarten & Co., 44 Wall Street,
members of the New York Stock

' '

NOTE -—From time to time, in this
space,
there will

appear an advertisement which
we hope will be
of interest to our fellow
Americans. This is number 136 of a series.
SCHENLEY DISTILLERS CORP.

Optimism

Vv'vn

Benefit Plan. We didn't intend to

the impression that this

company stands alone among

American industrials in providing J
a comprehensive measure of secu-v

rity for workers. We did, however,
hint pridefully at the
Schenley:
Plan's liberality. It appears that
didn't say enough,

the

inquiries

life insurance and related hospitali¬

zation, medical carei surgical and
accident and sickness benefits. The
p

sus¬

the entire cost of,

the retirement

beyond

commitment

the

Parliament

are

the

Members

convinced

suming the major share,

' k

Approximately 8,500 employees of
affiliated Schenley companies are
covered by about'$42,000,000

form of secret commit¬

some

program,

that

Mr. Vinson would not have given
circumstantial details unless there
was

income

whjle the company and employee
share, the cost of other, benefits
under, the plan-~with
Schenley as*

this

terms

many

company pays

of the

agreement,

received.

'V'"'-

Mr. Dalton, British
Chancellor of the Exchequer, that

point

judging from

w^" have

adequate retirement income
supplement the employee's fed>
eyal old age benefits, in addition to :

statements of

long ago we wrote a piece
Schenley's Retirement and

repeated

be settled has increased this

there

'Y*

By MARK MERIT

ing

on May
concerning the terms on which
sterling balances are to

In spite

The Schenley Retirement and Bene¬
fit Plan, in briefs is aimed at provid-

blocked

picion.

was

SCHENLEY DISTILLERS CORPORATIOM

So V..

Mr. Vinson's statement
20

partment.

Hallgarlen & Co.

-i'-i'"';

Exchanges., Mr. Apponyi

convey

British

ment.^

the past with Banks, Huntley &
Co. in charge of the statistical de¬

Not

agreement" which
politically commits
Government, even in
absence of a legal commit¬

Chronicle)

New York and Los Angeles Stock

about

"gentlemen's
morally and
the

Financial

Coxon & Cross With

must be in accordance with some

the

The

are now
associated with Bogar¬
dus, Frost & Banning, 618 South
Spring Street, members of the

previously manager of the trading
department at Bittner & Co.'

ANGELES, CALIF.—Carl
E. Apponyi and Wells Morris, Jr.

was

Exchange, announces that Thomas
provisions are
T. Coxon will assume his duties
partly responsible for this sus¬
as a general partner, starting to*
picion. It is widely believed among
&19L North;_Michigan
Representatives* But now it ap¬ Fleming,
day, and Calviri Cross, formerly
Conservatives, and also by some
Mr. Browne has been with Mellon Securities
pears that Washington also ob* Avenue.
Corp., will
of the government's
supporters,
jected to the deal on the ground; serving * in the U. S. Navy.
become associated with the firm.
.that the American interpretation
tations of various

(Special

LOS

begin on August 2. The govern¬
ment is certain to be pressed dur¬
cles
that
in *
D. J.4 McMillen and Arthur T,
addition to the draw the proceeds of the loan in ing the autumn to disclose the full
Strecker
also
have
joined the
published gold instead of in dollars. Since extent of its commi.ments under firm's
trading department,
Mr.
no
clause in the loan the.loan agreement.
text there are there is
Strecker : having
just
returned
some
secrc*- agreement against withdrawal in
from four years' service overseas
clauses which gold, and since the general rule
Whitman With Lyons Co.
as a Major in the Army.
Before
bind the Brit¬ is that foreign governments hold¬
BOSTON, MASS. —George P. the war he was associated with
ing dollars
entitled to convert

there has been a
1 ;;

quoted

forced

of Parliament

the

loan agreement.
This matter is

L. Ohrstrom

Co., 40 Wall
Street, New York City, announce
the" appointment of Howard* E.
Phillips as director of the firm's

result of some secret clause of the

the Loan' Agreement was

Ever since

that

! ;G.

Apponyi and Morris With ;
Bogardus, Frost & Banning

ment. On the occasion of the brief

worth of life insurance under the

debate

Plan, for

the loan in the House of

Commons

July 19 the Finan¬
Secretary to the Treasury, Mr.
Glenvil Hall, denied once more
on

that

the

hands

British

were

an average of $4,953 in
protection per worker. The vast
majority are covered by perma¬

Mellon Securities

cial

nent life insurance of an unusual

Government's

Corporation

tied in respect of the

type. Unlike, the most

balances,

but

ried little

protection

conviction.

his

statement

car¬

announce

that

article

suspicion was in¬
in other directions. In an

published

by the

recently acted

Officer

the

of the

merger

Corporations has been

two

securities business of both

corporations will be

;

continued under the

name

cash value is less than the amount
>

the employee has contributed under
the Plan > the company will make
up

The First Boston Corporation
A Merger of

MELLON SECURITIES CORPORATION-THE FIRST BOSTON

self,
such

so
a

the

CORPORATION

are

agreement it¬
that the assumption that
it

exists—

in the employment of the proceeds
must be based on a secret under¬

standing does not seem to be

un¬

reasonable. Efforts of Members of
Parliament

whether

ascertain

there is in fact such a restriction
have failed so far to elicit

admission

other hand, Mr.

denial.

direct

the

Glenvil Hall ad¬

Board of Directors
.v„

•

.-LV,. ■'fy-

spending the

cheaper.

R. Parker Kuhn

Louis Gr. Mudgb

Albert B. Brushaber

Francis A. Cannon

Edward H. Ladd, III
James N. Land
v

James H. Oi^r

James Coggcshall, Jr.

Aubrey G. Lanston

William H.

Eugene I. Cowell

Duncan R. Linsley

Frank M. Stanton

Winthrop E. Sullivan

tp other American companies hay¬
ing similar plans, that such volun:
tarily inaugurated programs pro¬

Nevil Ford

John C. Montgomery

Allan M. Pope

James A. Lyles

Georqe J. Gillies

Hugh D. MacBaiN

Joseph W. Hambuechen

Adolphe H. Wenzell

S. Davidson Herron

the co§t.

Potter, Jr.

Arthur B. Van Bus kirk

John R. Macomber

temporary insurance is available in
an inexpensive
form, with the em¬
ployer and employee again sharing

George D. Woods

■

It is gratifying to us, as it must be

vide

workers

with

security
days, was

formula which, in other

BOSTON

NEW YORK

PITTSBURGH

CHICAGO

BUFFALO

CLEVELAND

HARTFORD

PHILADELPHIA

PROVIDENCE

RUTLAND

SAN FRANCISCO

SPRINGFIELD

WASHINGTON

completely absent in, the relation¬
ship between employees and em¬
ployers. Here, indeed, is a distinct
of

note

troubled

optimism

rather

and dislocated

day world.

present\;>!

sus¬

pected as a result of the negative
given by Mr. Daltoh to a
question by Colonel CrosthwaiteEyre, asking whether the British
Government is entitled to withanswer

years' service. After 6 months,

Charles F. Batchelder

pro¬

Yet another secret clause

provided for those with less than

two

X*\J

perma-

But protection also

Arthur B. Kenney

suggested that if prices rise too
high in the United States we need
not spend the proceeds of the loan.
He evidently did no, envisage the

possibility of

eligible for this unusual

Harry M. Addinsell

mitted it by implication when he

ceeds outside the United States if
non-American goods are found to

cir¬

get back less
than he contributed. All workem
with "two or more years of service
nent coverage.

loan

restriction—if

the difference in cash. In no

cumstance will he

many
statements implying this,
there is no trace of any such pro¬

that should

assures

'age when entering the Plan. If the

British

Treasury
Delegation in Washington, and was
the
spokesman I of
the
British
negotiators of the loan, stated on
March 15 that the proceeds of the
loans must be spent in the United
States. Even though during the
debate
in Congress there
were

vision

under the Plan

employee leave the company's
service he may obtain his full cash
Value or elect to receive an indx-.
vidua! policy based oh his original

completed. The underwriting, distributing and trading

"News-

the Press

in the event that

the

Chronicle," Mr. Paul Bareau, who
until

ceases

employment'ends,. thi» insurance
a

Meanwhile
creased

common

form of group coverage under which

terms of the settlement of blocked

FREE —Send

August 1,1946.

Dept.

postcard to MARE MERIT

SCHENLEY

18A,

350

DISTILLERS

Fifth

Avenue,

CORP.,

N. Y., and you will receive a 9d-paye book

containing
various

reprints

subjects.:.:

of
*

;;

earlier
vv

articles

:-U:

THE

n iil;;

614

•#• ««♦' . d f,

•tiSWl' •* "•"**

TAry

* ,1 -r, tfrt- , (C,-« K'

'1*

J .4 V

Thursday, August J, 1946

CHHONICLE'

COlStliEkClAL ^ FINANCIAL

Dr. Edwards Elected

Railroad

V.-P. of In. Co.
The

president of
Bond Fund, Inc. and

Manhattan

given last week to the New
York Majestic bonds by one of our leading Statistical Services drew
our attention to the.securities.
*. { *. \v ■,
•,
: We found that' the bonds carry ,with them stock representing
100% of the ownership of the property. At their current price of
40, a Value, of only $5,105,535, is >set for the property.
This is an
interesting comparison with the<^
gage and a bond issue of $7,original bond issue of $9,400,000
;
offered in 1930 as legal for Trust 576,338.
Apparently the current price of
Fund Investment and appraisals
Vfjjg "Above Average** market rating

of New
-

vice

York Stocks, Inc., 'hhd
,,,

ner

;

search
•

Man-

ment

may

consideration for selection, railroad equities
be said to be under-priced.
the extremely poor earnings of most bf thC Railroad?

view of

the year, it is only reasonable to .estimate that the!
earnings f o
1946
will be past, present andj future factors irt

in the first half of

research

organization,
is

announced

appreciably the rail situation for 1946 in the
preparation of the following table;

by Hugh W.
Bong, Presi¬
dent of the in-

below those of

ever.

panies. Dr. Ed*.ward s, well

"anyj

'. seen

Dr. Will. Edwards
writings and
there is'
riecture*4on
no doubt but that the apartments;
in this- -house would; command; economic and investment i subj ec te,
considerably higher. rents than, are j and for the last seven years a
now obtained.; Eyen va
i0% in¬ partner Jh "Naesg iihd Cummihg^
crease of present-lowrentewould investment counsel,: is & graduate
mean t% additioftai on ihe bonds. j of Brigham Young University, ana
Rooms are presently rented Phi received his doctorate from the
an average of $45? per annum per: New
York University Graduate
room.-.SiC'L;'.' '! School of Business. *

Were there ho 0* P. Ar

REAL ESTATE

SECURITIES

The property

SOLD

QUOTED

ries.

V',

believe

;

earnings

were, of course, distorted consid¬
the-year . will erably by the accelerated amor¬
tization charges.
'
I
a highly satisfactory rate.
.
By reason of these accelerated
have attempted id evaluate

j
.......

be at

ESTIMATED 1946
These

EARNINGS OF 40 LEADING RAILROADS

first six

•

Members

Bell Teletype

ACTIVE

Dlgbv 4-495Q

N .Y.

AO EXCHANGE PL.,

NT 1-953

EQUITABLE
OFFICE
BLDG.
m&

L_J
—

Ry. Co.—

& O.

B. & Q.

L_J

RR. Co.—

Budd Go. Debentures

Stobk Exchange "Notice

SIEGEL & CO.
N.t» I

31 Broadway,

Teletype

W(fcf 4-88T#

NT 1-1941

Chanin Bldg.

Qn! Argentine Bonds

*■

^"Carf Ml idbefe^* feboaides?'& ^ Cfc
Blyth Sc Co. Ine. announced
by the New York Stock Exchange July31 thff private "sal^of $30.000,000 Budd Co. 15*year 3%%
that1'"Effective immediately, trans¬ sinking fund debentures, due, July
actions in Province of M&idoza I£1961, JThe issues wad sold to
the Equitable Life Assurance So
(Argentine Republic) 4% Exter¬
nalTReddjustment-Sinkiug Fund. de^ro| .^e/Dhited State?.
Dolliar Bonds, due December 1,
1954, shall be in variations of
l/32hds,
and
Commissions are Cohu-Torrey Wire to
chargeable in
accordance with
Rule 483, notice having been re¬ P'Brian-Mitchell & Co.
Cohu
^aiiv,-Stre«et;ceived of a call forredemptlOn' oh
September 1, 1946, of ail the chit* New Yprk. ;City> ^menibers New
standing bonds at the principal York Stock Exchange, J announces
amoUnt thereof, plus accrued - in¬ the
installation of a direct private
terest to the redemption date. The wire connecting their New York
office with O'Brian, Mitchell &
l^cujrity will be suspended • from
dealings at the. bpen&g^of;tM Co., Liberty Bank Building, BufIt >

2/45

Chanln Bldg. 1/45
i -•

.v.

•

500 Fifth Ave.
51 East

4-6 J4/49

42nd St. 3/56

2 Park Ave. 3/40

LJ.GOLDWATER&CD.
York Security Dealers Assn.

39 Broadway
New
HAnover

7.24

5.29

3.92
1.98

•i.8o:
'4.50

3.57

was

announced on July 30

Vork 6, N.Y.
Teletype NY

2-8970

1-1203
:i :«

and

framing session on Sept. 3^1946
»fiHI lU Hi > i » II

firm Trading

Hotel

Real Estate Issues

Hotel

or
■

2-4, 1958

Governor Clinton

Hotel 2, 1952

'•'( 2.001

10.57

2.00 *

4.82

1.00

0.99

4.00;

fO.29
2.30

-tl.95
1.54

8.03

3.62

11.35

7:81'

Tele. SF 61 &

St., San

Co.

Fraficisco r*

EXbrook 8515

TeL BArclay

4; 1959 r

11.98

•7.58

...2.33

3.15

1.00;
5.00'
0X0.

V' 6.00
5.00"
•"

7.00

7.02

t6.25

■■tl.00*

7.95

9.37

0.64

7.49

10.00-

1.48

T o.oo'
3.50'

1.78

7.18

9.15
'

5.53

3.79

1.50i

15.00

17,54

7.00,

5.31

4.66

3.00,

4.92

.3.72

3.00

4.06

.2.13

0.00

5.20

4.14

s.oo

5.09

i.92

l,oo:

3.32

5.39

4.00

9.73

8.77

,14.84

10.24

O.OO

6.80

15.63

12.00*
15.00

8.00

13.07

2.68

•,2.12

17.70
5.17:

4.94

4.0Q
18.00

3.00

4-77

13.41

6.00

with resultant credits to. tax ac¬
charges many of the roatis will
cruals.
;v *
show larger net income fbr 1946
Net income reported ;idr TW5
than 1945; As will be iferiiemsuffered
from
the
accelerated
bered, many additions to jfailtoad
amortization charges, in some in¬
■

property during the few* years
stances very badly.
A case in
prior to 1946, notably equipment;
were
constructed as emergency point is thp Atchison .Topeka ■&
Santa Fe, which charged off its
facilities certified under

jSection.

Revenup Code; entire unamortized balarice (near-?
Such facilities were being) atnof^ ly $62,000,000) in the month of
tized on a 60-month basis when September. The road's tdtat opdri
124 of'.he Internal

proclaimed the
withVespect
Defense Projects as of Sept; 29.

President Truman

end of the emergency
to

ating
were

expense

charges fdr. 1945

increased by about $55,000,7

000 over what^^ they

would have

permitted beeri if^^ nbrmaP amortization"^^
crpais; bad^^continuedvv' Hbweveiv
the Amortization to be accelerated
1945.' The; proclamation

having tax savings approximated $46,000,Urtaiho'rfiZed balances charged the 000; including cutback of $18,000,|
000 for prior years. The net effect
entire amoudts to operating ex^
(Continued on page 643)

forthwith and the railroads

pensesv

beforf the end of

1945;

FOR

Stock Alone

Savoy Plaza 3,1956
.Shetneth Corp, 534,1956

^87<ki7ttt

me.tttyUSl'-5;

HELP WANTED:

•

POSITIONS WANTED

;

<>..

OTHER CLASSIFIED ADS
>j$.

SEE INSIDE BACK

-—^Incorponit«d
*
New York 7, N. Y.

7-4880

tO.OS

19.78

AMOTT, BAKER& .C O.
159 Broadway

2.94

0.00
'

•

tDeficit.

J. S. Strauss &

•

6.25 *

Eastern Ambassador Hotels Units

155 Montgomery

tl.00

3.99

13.31

The Madison 3,1957

Lexington Units

iNational Hotel of CuU

t0.33

,1 11 ,IH)

Bonds1

Beacon Hotel

16.00:
T2.0O5

0.83

1.70

16.08

532,869
408,283

4.50

16.04

2.02

311,030

4__i—

OFFERINGS WANTED

Markets r

California & New York

RR.-^Co.—_—

1.50

•

2.14

14 43

•

.8.00;

1,250,860

Maryland Ry.

•♦Preferred.

;

Members New

13,400,000
7,657,354
1,708,391

Co.—_i—f*
•'
Wester^ Pacific RR. Co
i—i-L—X

WaMdPrivai^

•Wabash
Western

6.71

141,792

Virgirxian Ry. Co.______

Teletype NY? 1-588

1946

$17.00

19.54

2,562,953

j——u

Canadian Pacific Ry. Co
C.

Estimated

1945

$9.56

1944

—

Bonds & Stocks

$19.91

MARKETS

tho

2.21

Aroostook RR. Co

B. & O. RR.

Actual

col*

Yorfc Stock Exchange "
New York Curb Exchonge

5.33

—

Atch., Top. and S. Fe Ry. Co
Atlantic Coast Line RR. Co
Bangor and

•;

Outstanding
2,427,060 823,427 N

Company—

Immediately at the building is
Chicago & Eastern Illinois RR. Co^—.
343,297
The Curb" Exchange played air¬
a SUbway Station, Crosstown Bus
,Chicago Great Western Ry. Co
•———
352,639
2,123,214
and ithe Eighth Avenue Bus lines. tight ball behind the 3-hit pitch* Chic., Mihv., St. Paul & Pac. RR. !co.'_—
!
Chicago and North Western Railway Co — •
816,303
Tlie building has entrances -on-j-ing^ ,of John- Bertuzzk its mound- COiOfado and Southern Ry. Co._J
:l—
310,000
three streets. ahd contains; over dee. Among the twelve hits
Delaware and Hudson Co
L--'
540,049
Delaware, Lackawanna and West.; RR. Co.
1,688,824
200 apartments, with 1,404 >reht£ lected by the Curb were home
Erie RR. Co—
——-L_,2,455,773
able! rooms.
The layout of the runs fey? W^lly Gardner. andTom- ■"Great Northern Rv. Co
1—:—
3,012,543
\ •
property is such that it can cater my Johnston. . H £: -<
GUlf, Mobile & Ohio RR. Co.
J— i-a,
590,421
L~—
1,357,995
The * Curb E xc h a n g e" team, Illinois Central RR. Co
to tenants desiring small or large
/International Rys. of Central America..—
500,000
apartments. The apartments range which ended-the regular season Kansas City Southern Ry. Co
—
509,599f
from one room to 10-room suites. in-4tfitst/^acii^-with'F^Y.'',Fos^ Lehigh Valley RR. Co
—L-Li—1,210,034?/
2,340,000 -/
There are many duplex and .ter¬ ter for the "Shorts" Division title Louisville and Nashville RR. Co._i— J_i—
Missouri-Kansas-Texas RR. Co—j_—i
808,964,
race; apartments.
A special type with 8 victories and 2 losses, cap¬ Nashville, Chattanooga & St. L. fty.l
' 256,000
construction permitted glass en¬ tured the divisidn pennant- and N. V, Central RR. Co.
J———" 6.447,413
closed sun porches in the corner earned the right to meet Hirsch & N. V., Chic. & St. Louis RR. Co._J„
.
337,467 ;
Northern Pacific Ry. Co
J—
2,479,826
Co.,
"Longs" Division pennant
apartments.
Pennsylvania RR. Co
j——*—- 13,167,754 .
Considering the inflation hedge winners, for the championship by Pere Marqette Ry. Co..:
J—i
450,448
« 863,650
offered by the equity feature of •defeating F. Y. Foster, in a hard- Pittsburgh & ;Lake Erie RR. Co.-j—i^_~
305,000 /
fought playoff game last week 7 Pittsburgh & W. Va. Ry.
these bonds, plus the hope for in¬
Reading Co.
1_
' 1.399,782
creased rents, they seem to offer to 5.
Southern Pacific Co.^i———.J—'*' *3(772,-763 y...
Southern Ry.. Co^—-—
4—41,298,200
a
reasonable speculation at cur¬
Texas and Pacific Ry. Co
i—387,550
rent: market prices.
Union Pacific RR. Co
i—L—L
2,222,910

Members Nmw

(

Earnings per Common Share

SHASKAN & CO.

and Reseafich CdfiJdration estimates bas?d upon
months' operations and its" views of the remainder of this year, but are
subject to change monthly with changing developments'.•>-

National. Securities

are

that "year and possible excess profits
in tax carrybacks. The 1945 earnings

the last half of

Harold F. Messner
.

League Scores

BOUGHT

be re- freighi rate increases that bacame
corded in the effective July .1,1-as well as allowjmonths ahead. ance for some further increase in
Moreover, we rates in the last quarter of thfe

Wall SI. Soft Ball

West from 71st Street "tO
72nd Street with a frontage of
204 feet on Central Park West
The New York Curb Exchange
and 177 feet oh 71st Street and
224 feet on 72nd
Street.
The softball team took the lead last
property, faces directly on Cen¬ night in the three-game series foi
championship - of the Wall
tral Park, commanding a vista of the
Street Softball League by defeat¬
trees, lawns, ponds and winding
bridle paths extending over an ing the Hirsch & Co. team 6 to C
in the opening contest of the se¬
area of many acres.

wages, materials and supplied
and the benefits, from the interirp

and tha
results

should
•V,

Bark

consideration increased costs, such

better

consists of. a 30-t

story apartment house, occupying
the entire block front of Central*

These estimates have taken into

been

have

1946 earnings

compared with actual 1945 and
1944 resul.s.
I \
i
-

are

the

that

which estimated

our

how¬

f worst earnings

known for his

It is

1945.

opinion,

i vestment com¬

that, with

cludes

generally

Asso-

ciates,' affili¬
ated
invest¬

time showing a

elected to fill the house at
reasonable rents obtainable.

Jtcsearch Corp., Investment Committee

te keldw those of 1945/ However, !946 share earnings of some
linei'Will be higher due td 1945 heavy amortization charges. Con¬

"^h at tan Re-

total value the bonds is low because *of small
for the land and completed build¬ yield afforded by current interest
payments (4% on - present mar¬
ing in excess of $14,000,000.
ket). Thi$ seems to be caused by |
Current financing consists of a
O* P.. A; pegging of low rentals$2,075,000 institutional first mort- made
When
the. Management;
at that

his

general part-r

Equities

MESSNEIt-:;

fnvestment analyst holds railroad earnings in second half year of
Will exceed^ the poor earning? of first six mouths, bur vvilt

•" admission as a

■

National Securities and

election of Dr. William F.

Edwards,
v.

By HAROLD-F.

COVER

THE COMMERCIAL & FINANCIAL
CHRONICLE

Number 164 ,v Number 4512

CIO-UAW Woald
To preserve purchasing power

of j dollar.

Move by Reuther to Speed

auto output. "

American Securifies

Dro^ Pay-Rbe Move

the

dollar

reported

other

the

With

members

Douglas and Lomason

the

Stearns Mfg. Co.

CIO council, 4t was believed that
ini automotive labor would adopt an

Workers

Automobile

Simplex Paper

the*>

part of the Congress of Industrial
Organizations in general and the)
United

CRAND RAPIDS

Corporation Formed

American Securities

Corporation; which" with an initial capital
$3,500,000 will conduct an investment banking business and act
dealer in corporate and municipal securities, has opened for busi¬
ness in temporary offices at 40 Wall
Street, New York City. Perma-

Abandondment af present of jany thought of new wage increases
in favor of an all-out effort to preserve the present purchasing power
of

615

particular, it was indicated fromj

watchful

attitude

waiting

the next few months to
whether the

the lid

On the

same

JV ,4 % '

'♦

i1.-

1T;,

determine1

■

national]
price and rent, controls cpuld hold
aown

,yJ;

set

new

Trading Markets

for

white, noble & co.

the cost of living.!
as the above1

date

Members

advices (July 27) another dispatch!
to the New .York "Times" from;

Detroit

GRAND

Stock

Exchange

RAPIDS

MICH. TRUST BLDG.
Phone

94336

Teletype GR 184

Detroit.ynade; known:that an in-l
had. been,

vitation

sent

Mr.i

LOUISVILLE

Reuther, UAW-CIO President, to
the

dustry

the

heads

automobile

to., join- leaders

in¬

William Rosenwald

the

Charles G.

Terry

American Air Filter

Elmer G. Diefenbach

United Automobile

Workers, CIO,,
nent offices at 25 Broad Street Stroock &
Stroock & Lavan will
in a conference on how to increase,
will be occupied about Sept. 1.
act as general counsel.
automobile
production.
Aug. 2'
Officers of the new organization
Mr-.' Rosenwald, active in civic
was suggested as the time, said
are:"
William Rosenwald, chair¬ .affairs
and .well
known
as
a
the dispatch, which further stated:!
man
of
the board;
Charles G. philanthropist, was born in Chi¬
Mr. Reuther said that all theTerry, president; Elmer G. Die¬ cago, the son of Julius Rosenwald
union's regional directors and its
fenbach, chairman-of the execu¬ who also was nationally known
four
top
international
officers| tive committee;, Frederick A. as a
philanthropist and who was
were ready to attend the confer¬
Terry, vice president and treasur¬ chairman of the board of Sears,
ence.
!
er; Emdon Fritz, vice president, Roebuck & Co. for
many years
"Together we can tackle and' and
David Malzman, secretary.
(Continued on page 648)
lick the problem of getting the in¬

American Turf Ass'n

Girdler Corporation
Merchants Distilling Co.

•

Walter P. Reuther

Detroit

Philip Murray

July 27 by Walter W.'
advices to the
New York "Times." In stating that

Ruch,
this

the

in .special

learned

was

the date

dispatch, Mr. Ruch went

say:

It may be stated on high author-:
ity that the UAW has decided, in-

with

the

that

CIO,

•that the increase of 18 *6 cents an
hour which was won last winter

through

the

General

strike

against

Motors

creases.

According to these

sources,

the

executive board of the CIO at a

"A survey of the

said,

"indicates

and
not

trend of labor unions in this

coun¬

try to seek wage increases ta con¬
solidate the gains won last win¬

rent low levels of auto

ter.

one

leader put
sure

it:-?

can

detail,

ate still 100 cents in
{

-This

will

matter

that there

way;

heads of the union

so that jointly!
.analyze the situation ini

want to be

production^

"We. believe the practical

to get the facts is to get the heads
of the iridustify together with fhet

they

be v;:on

We can make every effort to
them out of the way;.

the

ternational executive board of the

New England Lime Co.

•

Brager-Eisenberg
5%

Notes

•

:-v-*

New KnglandXime Co^ Com,

'.* \

75 Federal Street/ Boston 10
Private New York Telephone;

Members New York & Baltimore Stock

^ CALVERT ST.r BAWIMORE

REctor^2-5035

Bell Teletype BA 898
New York Telephone Reetor 2-3327

"BOSTON

"Whatever the

reasons

are,

-get

Retail New England

the,

'Utah-Idaho Sugar

Bank and Insurance. Stock*
X'A

DwightMfg,

Industrials—Utilities
••

•v

Inactive Securities

Co.

Amalgamated Sugar

•

.......

PUTNAM & CQ«

♦

|y^WkUl^;5trset/ Boston

Knitting

Harris, Upham
F. .E. wins

its

point, it is likely that a date will
be set for an election, among .the
employees of the firm to confirm
the union's contention that it does
represent a majority of them.
The U. F. E. which claims .that
it is definitely not affiliated with
either the CXO.

the A.F. of L

people may think but. is
independent says that it intends
to seek contracts, drawn
on a
as some:

Rhoades

Co.;

Carl

■~::r

.Fainer-Webber j
Jac-j

Thomson
McKinnon,!
and Merrill Lynch, Pierce, Fenner
& Beane.

strike to

re¬

organize

basis,

these

with

the

houses

inforce
their demands
but
nr'
strike vote has as yet been taken'

coincides

contract with the New York Stock

Telephone

Established 1898

W. H. CHILD, INC
'Wi

BqU Tele. DM 184

'■

.Vyyv:-'vi-

U. S.^Sugar Corp.

>■

tfqspectss iuTnishpi

Eastern UHBtiet Assoc. CotT<

M.J. Whittall Assoc. 2nd Pfd.

Report furnished

•

Co., the firms for the employee?
"of-which the union proposes to

bargaining- rights -this sum-

has with

Harris, Upham & Co.'; It

is the union's
plan eventually to

organize the banking and insur¬
ance

fields' aiso?^^ 5-*'-—-'

■

; -

Phone 5-617

WASH.

For Immediate Execution

of Orders

Quotes call TWX Sp-43

on Floor

Exchange from 10:45 to 11:30
A.M.i- Pae,;. Std. Time;: Sp-82at.
other hours.

Manufacturing Corp.
,

Building

City, Utah

SECURITIES

on request

Shelter

and

■

Salt Lake

NORTHWEST MINING

Electromaster, Inc.

widKEgs

;
J
Stock Exchange

1\'

"SPOKANE,

DETROIT

than just,

Teletype BUM

failure with thf t
the "street." Thu,:

other firms on
in union circles,

STOCKS

Light & Railways Co.

CAnal 6*8100

Boston Sand & Gravel

UTAH MINING

EQUITABLE BUILDING
DES MOINES
IQWA

the U.F.E. -. membership \
though one is reported contem¬
plated for next month.

for its success

;

for

'Preferred ""

Phone 4-7159

Teletype BS 424

Nu-Enamel

;

TRADING MARKETS

on request

STANDARD SFCUniTIES

these

in wages- •
v .•
"
In addition to Harris, Upham &

ceek

JN. X<

t809

Members Salt Lake Stock Exchange

BOSTON.t,WAMS.-.

among,

affiliated institu¬ ordinary interest centers around
negotiations, the the hearing next week and sub¬
union is seeking a 25% increase
sequent dealings which the U.F.F
In

BELL 6YSTEM TELETYPE 6U 404 "

Sioux City Gas & Electric Co.
f...
/Preferred and* Common^ >• *

larger

with its efforts to obtain another

Exchange

:A'A- "*

3i Milk, street'

HANcock 8200

'hi

BROKERS and DEALERS

Pont, Homsey Co.
■

+ V

ESTABLISHED

request

Preferreds

dii

INCORPORATED

United

•

Springfield

Iowa Power & Light Co.

The union leaders tall?

belligerently about

10, Mass.

2340^

WHEELOCK & CUMMINS

Inquiries invited

There is very little doubt in the
minds of the union leadership it¬
firms first and all the important self that the outcome of its
ap¬
firms - eventually
in
the
Wall proach to Harris, Upham & Co
Street district.
Its campaign tc might very well set the patterr

multiple

tions.

UtBerty:

Providence

Loeb

Jackson & Curtis; Carlisle &

que.lin;

-Tel.-

DES MOINES

summer

1 li d

Edward l. burton
8t COMPANY
160 s. Main street
Salt Lake City l, Utah

Descriptive 'Analysis

also: with five other firms on "Street" . *
hearingiwill be held by thd State Labor Board next Tuesday'
on the petition of the United Financial Employees for a. certificate'
as exclusive bargaining; agent for*

VPortland

Mills

n c

INd;

Members Boston Stock
Exchange'

independent—seeking exclusive bargaining rights foremployees of
Harris, Upbani & Co.-Cohfracts raising wages .25% to be sought

iX.,'kv.^
'

■

Utica

Utah Power & Light

♦

......

United Financial Employees—which claims it is definitely not affilfated with either ClOorAFLaf some people may tlimk Jbut is

mer.

'■ 'lfi-r

.Coverage ^

Secondary Distributions

Bargaining Rights in Wall Street Firm

.the employees of
& Co.
If the U.

>?.

SALT LAKE CITY

Plan Hearing on Union's Pietition for Sole, i

this

STWC CT

Bfenthera 8L Loula Stock Exchange

New England Markets

know what the obstacles are,

St.Louis1,Moo
b'-h'tAvK'-t'i'fi'.

«!

;ioa ?WVC:

Dayton Haigney £ Company

Exchanges and other leading exchanges

UAW, beginning Aug. 5 and it is UAW-CIO is just as eager as
man-J
expected to emerge as the estab¬ agement to get the industry into
lished policy of the' largest union maximum
production. No otte can}
in the world.
doubt that failure of the auto in-1
(
Inasmuch
as
Philip Murray, dustry to obtain full production is;
:
President1 Of the CIO; and Walter now having and will, continue to
P. Reuther, President of the UAW, have a very bad effect on the!
•' "* ■''
have had such a meeting of minds whole nation." • 1 ^k

;

14., '•' .:'1-

INVESTMENT SECURITIES

Union Twist Drill

STEIN BROS. & BOYCE

■

•

Noxzema Chemical

Stix&Go.

6—1966

••

get the facts, when

the dollar."

agenda'for* the meeting of the in¬

-.Vf'

■

"When

Common XT ti

parts!

auto suppliers' plants could'
possibly account for the cur-i

-meeting in Washington last week
voted unanimously to abandon the

auto

Bell Tele. LS 186

ST. LOUIS

Megowan-Educator Food Co.

the

LOUISVILLE ?, KENTUCKY

Lamson Hubbard r

Davis Coal &Coke

UAW-CIO," he1
that
the; fewj

strikes current in

Floor, Kentucky Home Life Bldg

Boston Real Estate Trust

Bayway Terminal

Emerson Drug

Boston Edison

by strikes in

suppliers' plants.

the

Corporation has
been wiped out through price in-;
.

the lag was caused

Incorporated '
1st

Long Distance 238-9

BALTIMORE

;

He expressed himself as deeplyi
to
make a fresh wage demand at this concerned that automobile output,
time
might set an inflationary was only 40 to 50% of the 1941.
spiral in motion. ^ At the same rate. He disputed the assertions in
time, the leaders of the UAW feel some quarters of the industry that1
concert

Hi BANKERS BOND
;

dustry into maximum production,":
he asserted in his letter of invita-!
tion.

Louisville Gas Pref.
Winn & Lbvett Grocery

RIercier; McDowell

General Stock & Bond Corp.
10 P;0.

& Dolphyn
Members

Square, Boston 9, Mass.

Telephone Liberty 8817

Teletype BS 373

Detroit

Stock

■«'; Brokers

Exchange

Buhl Bldg., Detroit 26

-Tel«. DE 507

;

Dealers

Underwriters

Peyton Building, Spokane
Branches at

CadlllM 5752

CORPORATION
Members Standard Stock Exchange

AAb'^A:iiA;. of Spokane

*
•;

Keller,j, Idaho and Yaktma, Wn^ j-

■7.w

■■'JWs
v:W/,UI,K

•<

a.'j.'X''
■

wot

fHE COMMERCIAL & FINANCIAL CHRONICLE
Midland
V

Jv*

%r' \

V'"'

;v 1 *-

Dealer-Broker Investment

Central Electric

Recommendations and Literature

;

XMiller

TeL

Tele. CG 271

Randolph 6960

appraisal—Stroud
& Co., Inc., 123 S. Broad - Street,

of Securities Dealers

Wholesale Distributors
'**!

Middle West

-•

•

.-<-1

For

UNDERWRITERS
MARKET

contain¬

Bird

ing brief analyses of Rhinelander
Paper
Co.;
Cleveland
Worsted

650$. Spring St.

dum

Son,

Inc.—Memoran¬

Buckley

—

Also

Engineering Co.; Plymouth

west

LA 255

Brothers,
1420
Walnut Street, Philadelphia 2, Pa.

Mills; Gishoit Machine Co.; North¬

Michigan 4181;

CG 99

review

of comment and

LOS ANGELES 14

135 La Salle St
State 6502

available

Gruen

memoranda

are

Watch

Company

and

La Plant-Choate
Mfg. Co.; Mohawk Rubber Co.;
Oneida, Ltd.; Nathan Straus-Du-

Haloid Company.

parquet; MacFadden Publications,
Inc.—Strauss

Consolidated Gas
Utilities Corp.
y

.Vx

-V

now

The Chicago
iv '

t-1

'1* 'V V

Fortnightly Investment Letter-

" ;Xx,.. ;n

Comment
60

Circular, on Request

HICKS & PRICE
Members Principal Stock Exchanges

New York

Tools

WaU St.

;

—

Study

6, N. Y.

Refolds & Co.—

Brdwri,

from Joseph Hughes, Blair
Co., Inc., 44 Wall Street, New
York 5, N. Y., or from Mr. Brown
at Reynolds & Co., 120 Broadway,
New York 5, N. Y.

Common

Request,
Market Trends—Current situa¬

?aal H.Davks & Co.
Established 1919

■"

*•

Exchanges
Chicago Board of Trade
•
|f

tion—J.

R. Williston & Co., 115
Broadway, New York 6, N. Y.

Indianapolis. Ind.-

•

Rockford, 111.

Cleveland, Ohio

York

City

Banks—Com¬

banks—Laird,
Bissell
&
Meeds, 120 Broadway, New York

Utica Knitting
1

Mills.}

Railroad

■

randum—Buckley

■

flans

Grinnell

Corporation — Memo¬

randum indicating interesting out¬
look—F. J. Young & Co., Inc..
52 Wall Street, New York
;'

;

v■-

Hammond
South

Instrument

Salle

Higgins, Inc.

Co.

—

Co.,

Street,

—

5,N.Y.

,X■

12C

Chicago

Analysis of the

situation and prospects for appre¬

N. Y.

brochure

indicating

possibilities

—

Kearney

Knee-

data CC

Telephone COrtlandt 7'5C60

Boston Chicago Philadelphia San Francisco
j»uuiiuiimiiiiiiiiiiiii.'ii[iuiniimiimi:iitiiiuumuiiiii»utiMi)})iiiiiinniuiiim»nn)itiintnu

American
Delaware

Peter

Insulator

—

Corp

Statistical

study

Trecker—Up-to-

tory available to dealers—Ask for

Guenther Law

Incorporated

date comment and tabulated his¬

Co., Board of Trade Build¬
ing, Chicago 4, 111.

131 Cedar Street ? New-York 6, N. Yi
■

AO Exchange Place, New York 5,

land &

*■

N. Y.

-;;i

Standard

Stoker

memorandum—G.

Co.—Current
A.

Saxton

Co., $0 Fine Street, New York 5,
N. Y.

St. Louis Public Service "A"

Detailed, memorandum
Securities

National Gas & Electric Corp.
--Late' memorandum on a stock

ago 3,
Also

offering combination of improving
utility income, together with ex¬
cellent
speculative
possibilities
from oil developments—Fred W.
Fairman & Co., 208 South La Salle
Street, Chicago 4, 111.

dum

National Terminals Corporation
memorandum for dealers

—Late

Company

134 South La

Salle

—

First

of Chicago,
Street, Chic¬

111.

available

memoran¬

Standard Milling Co.

Schenleydistillers Corporation
—Brochure of articles they have
been

running in the Chronicleto Mark Merit, in care of
Schenley Distillers Corporation,
350 Fifth Avenue, New York 1,
write

N. Y.

only—Adams & Co., 231 South La
Salle Street, Chicago 4, 111.

Shelter Manufacturing Corp.

—

Recent report—Mercier, McDowell

Northwest Leather—Analysis

—

Dolphyn,

Buhl

troit 26, Mich. '

Building, De¬

Syracuse Transit Corporation—
Study of situation and outlook—
J. V. Manganaro Co., 50 Broad
Street, New York 4, N. Y.

1420

Brothers,

Iowa Public Service—Analysis
—Josephthal & Co., 120 Broadway,
American Window Glass Co.— New York 5, N. Y.

Analytical
speculative

Branches

Prepared—Conference Invited

Albert Frank

Co.—

Walnut Street, Philadelphia 2, Pa.

pending reorganiza¬
Hickey, 49 Wall
Street, New York 5, N. Y.

tions—Vilas

ADVERTISING
:

Broadway, New York 5, N. Y.

Manufacturing

Analysis—Steiner, ? Rouse &, Co.,
25
Broad Street, New York
4,

ciation—J. P. Heilly & Co., Inc.,

Reorganizations—Sta¬

tus of several

FINANCIAL

Its

Tornga, Grand Rapids
Building, Grand

Bank

Rapids 2, Mich.

Empire District Electric—Memo

iuiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiifiiiiiiiiiiiiiiiiiiin

All

National

Rockwell

Montgomery Ward—Descriptive
circular—Josephthal & Co., 120

Raymond & Co., 148 State Street,

Company—Analy¬
on 66-year old
company
with interesting pros¬
pects—Moreland & Co., Penobscot

City?

5,N.Y^

analysis of Hydraulic Press Mfg.

Larson

Co.

Building, Detroit 26, Mich.

C. H. Dutton

parison arid analysis for second 3, 111."
quarter of 1946 ort 19 New York

Teletype CG 40S

detailed

New England Lime CompanyDescriptive
circular —D a y t o n
Haigney & Co., 75 Federal Street.
Boston 10, Mass.

Analysis—Caswell
New

10 So. La Salle St., Chicago 3
Tel. Franklin 6622

the N. Y. Stock Ex¬

Price, 231 South La Salle Street,
Chicago 4, 111.

Members Principal Stock
'r"

Longines-Wittnauer Watch Co.

listed

change, with special reference to

able

Corp., Com.

^Prospectus Available

sis for dealers only

Issued' by ' the Cashiersi Associa¬
tion of Wall Street. Copies avail¬

Cribben & Sexton Inc., Com.

available

Fred B. Prophet Company—^De¬
memorandum—De Young,

tailed

Dwight Manufacturing Co. —
Descriptive
analysis—du - Pont.
Market Operations Under 100%
Homsey Co., 31
Milk Street.
Margin Requirement Rules and Boston
9, Mass.
Regulations—Bulletin prepared by
Also available is an-analysis of

Wells-Gardner, A Co., Cent.

Snap-On

York

New

earnings outlook—
Haupt & Co., Ill Broadway,

Noel

and

favorable

Ira

Randolph 5686—CG972
1

Street,

Household Furnishings

231 So. LA SALLE ST., CHICAGO 4

rail

several

Beaver

N. Y.

New York Office

wholly

new

situations—H. Hentz & Co.,

power

Chfcago Board of Trade

Bros., 32 Broadway,
4, N. Y.

Chicago Corporation— A

the Oil and Gas Division—Hicks &

The-Muter-Co.

Also

Panama Coca Cola.—-Circular on

New York 6, N. Y.

dealers

Corp.

f"\v

•

Co.;

New York

is ^

* "

subsidiaries—for

Co.—.

only—Comstock & Co., 231 South
La Salle Street, Chicago 4, 111.

analysis of the company, which is

Cordage

and

Street, New York 5, N. Y.

Geared to the News—Brochure

DISTRIBUTION
CHICAGO 3

owned

company

Interesting
possibilities
Hoit*
Rose & Troster, 74 Trinity Place.

W. L. Douglas Shoe C04 Gen¬

Broad

SECONDARY

.9, Mass. Also available are
on Sterling Motors, Buda,

Pacific Coast

—

on..

Manufacturing

;■

Munising Paper Co.—-Detailed
eral Tin; Hartford Empire; Lanova
Mohawk
Rubber;
New study -of situation—Sills, Minton
Philadelphia, Pa.—Also a valua¬ Corp.;
& Co., 209 South La Salle
Street,
tion: and appraisal of Railroad Jersey Worsted; Oil Exploration;
/
Equipment Certificates and a com¬ arid Taylor Wharton Iron & Steel; Chicago 4, 111.,
pilation of Pennsylvania Legal Barcalo; Haloid, t
National By-Products Inc.—-An¬
Bonds—Stroud & Co., Inc.,
123
South Broad Street, Philadelphia,
Bank of Manhattanr-Circular—' alysis—Brailsford & Co., 208 South
La Salle Street, Chicago 4, 111.
Pa.
Kugel, Stone & Co:; Iric,; 20

Member, National Association

and

Valuation

CARTER H.C0RBREY&C0.

.- v

Inc., 41 Broad Street, New York 4,

comparative study of 38 N. Y.
Also available are circulars on
of
major
importance
throughout the country, showing Tennessee Products, Temple Coal,
and Wellman Engineering.
changes in asset composition, book
values, earnings, etc.—Blyth &
Co., Inc., 14 Wall Street, New V Aspinook Corporation—Circular
—Ward
& Co.,
York 5, N. Y.
120 Broadway,
New York 5, N. Y.
Also available are memoranda
City of Philadelphia Bonds-

CHICAGO 3

/Thursday, August 1,1946

banks

120 South La S alio Street

•

Boston

—

South Shore & South Bend.

annual

Established 1922

Circular

-—-

.Also available ar$ circulars on
Midland Realization and Chicago

Study

C. L Schmidt & Co.

Utilities

y,*

Banks and Bank Shares—Semi¬

111.

It Is understood that the firms mentioned will he pleased
to send interested parties the following literature:

& Gas Common

Doyle, O'Connor & Co., Inc., 135 analyses
South La Salle Street, Chicago 3, Poilak.

■

Trading Market

i-v^w-n

»< •wd.w/r

Kearney & Trecker—

NSTA ADVERTISING YEARBOOK
NOTES

With great pleasure,
a?e aver

ghitig to press^ We;will dohble last ■ year's': gross.
;
;;;;
^
We must recognize Hart Smith &
Company who have contracted
cover of our picture Year Book and this
represents the
largest premium space offered this year; also, may we remind you
that this firm has duplicated last
year's contract. Many thanks to
you Bill.
Our publisher, Mr. Herbert D.
Seibert, did not anticipate the film
shortage when this gigantic task of publishing the pictures of our en¬
tire membership was undertaken. However, in spite of this
hold-up,
much progress has been made and his
photographers have reported
marvelous cooperation from Petroit through Ray Bernardi, from Chi¬
cago through Paul Yarrow and through Don Summerell in Los An¬
geles. With the deadline fast approaching, we hope all the officers
for the back

and chairmen of both N.S.T.A. and the local affiliates will double
use their own initiative to assist the
publisher of the
"Chronicle" by having members t!hat have not already done so for¬
ward directly to Herbert D. Seibert, 25 Park Place, New York 8,

their efforts and

N. Y., a photograph or snapshot of themselves with their name and
firm connection on the reverse side. In other words, let us not delay
but help voluntarily.
:
We are pleased to report up to July 29th, the following affiliates
have shown increased advertising over last week:

Blair F. Claybaugh &

Co., 52 Wall
Street, New York 5, N. Y.

of
—

LoS Angeles
y,

Barken, 32 Broadway. New

York 4, N. Y.

Argo Oil Corp.—Descriptive cir¬
cular—Seligman, Lubetkin & Co.,

...»

San Francisco'

Lumber

Co.—New

brochure—Comstock

New

316.80

Orleans

—

.•••'

—

Boston

Co., 231" South^ La Salle Street,
Chicago 4, 111.

Detroit

New

I SINCE 19081

$160.80
;f 110.00

Chicago

Long-Bell
revised

your Advertising Committee reports that we
$31,000# fa advertising and it appears by * the time we are

60.00

170.00
———————

York.

263.60

1,963.60'

■

Cleveland—60.00
:

Fred. W. Fairman Co.

—

r:Members
r.

Chicago Stock Exchange

5Vz%

i"'

1952
'

i j*

•

H; M.
*

CHICAGO 4, ILLINOIS

''r'

.v,!

;

./'W, "

■- yy.z- ;< '

' -J

;;

/ '

KIM your

■

Incorporated

New York

Philadelphia; S (

HAROLD B. SMITH, Chairman

National Advertising Committee
Collin, Norton & Co., New York

«;

A. W. TRYDER, Vice Chairman
National Advertising Committee
r

W. H. Newbold's Son & Co., Phila.

NSTA NOMINATING COMMITTEE
' I

Teletype CG 273

Pittsburgh

258.40

picture Year Book for reference in the future.

».

135 So. La Salle Street, Chicago 3

218.40

—

—i—1

Philadelphia
Houston

Byllesby and Company

Telephone State 8711

New York

,«

Telephone Randolph 4068
Bell System CG 637

A discussion of this company.

208 SOUTH LA SALLE ST.

•*;

REEVES-ELY LABORATORIES Conv. Preference

Write for C 1,

DirsctPrivate Wire to

' •?.'*

CHICAGO SO. SHORE & SO. BEND RR. Common

Central Public Utility

X'/

Maintain Active Markets In—

DEEP BOCK OIL CORP. Common

Chicago Board of Trade'

'-f^

;

Minneapolis

•

;

The, following have been

appointed to the Nominating Committee
of the National Security Traders Association:
VrX-X
Chairman: Wm. Perry Brown, Newman, Brown & Co., 326 Hibernia Bank Bldg., New Orleans 12, La; Oliver Goshia, Goshia &
Company, Ohio Building, Toledo

4, Ohio; Joseph Gannon, May &

Number 164

Number 4512
'■

THE COMMERCIAL & FINANCIAL CHRONICLE

•■■■■'

>-■'

f?-A :'f vf

•

-f: v '

Gannon, 31 Milk St., Boston 9, Mass.; Howard Morton,'-McMaster,
Hutchinson and Company, 105 S. La Salle St., Chicago 3, 111.; Chester

deWillers, C./E. deWillers Co., 120 Broadway, New York 5, N. Y.
/
j This Committee was selected after full cooperation and sugges¬
tions from* the Executive
dents of Affiliates, etc.

Mead Sees

Business Concentration

Council,! National ;Conamittee-men presi¬
;

New York- Senator, Asserting that ; big concerns how hold inside
track in picking up peacetime operations of smaller competitors/
urges passage of bill to create a Federal Small Business Finance

Mr. Brown has ^requested all <-pjast Officers and Members of the
Executive Council to send in their j views and suggestions for- nomi¬
nations. He States that this group are in a better position than, anyone

else to offer

names for nominationsj as they are- qualified in knowing
the amount of work involved in accepting office as an official of the

N. S. T. A..

They likewise know the

men

in various sections of the.

cbuntry who will work arid just not1 take the nomination for publicity
purposes.

s':

1 3

only from the Presidents 'of all the affiliates of the; N; S. T. A." but

create

Committee

The

following Amendments

Constitution

the

sented for vote in Seattle in September:

*•

will be

pre¬

./'

Increase Executive Council members from

It is

demonstrative

Small

Security Traders Association of New
additional amendment.

York will sponsor an

Business

COMMITTEE

small

concerns

obtain

vived
nomic

REPORTS

which

that

taking place in this country
the years in the extension of

penings
of
a
world
conflict
through which we have just suc¬
cessfully briierged.
"Today we are swamped in a
rising tide of business concentra¬

in-

dustries until such time
Sen. James

concen-

M. Mead

concerns

the
Pi.tsburgh Security
Traders
Asso- 5
ciation, with a membership of over one hundred
and the Nashville Security Traders Association,
Witb a membership jof over tbirtyrfive have be-V
come newly affiliated with the National organi¬
zation.
Twenty-eight new individual members
have joined the .Association, this year. -. An objec-.
tive of fifty new individual members has been

qet by the Committee which ieels that their
rollment

en-

come but

of the Senate

Small Business Committee a doc¬

that

ument

under

the

title

'Economic

Concentration and World War

pick

11/

They

track
with

in
I

A/
t/

many

Finance

TRADING MARKETS

CUFFS CORP.
Common
■

j/,

'•

•

'■

•

•••

;>■

CLEVELANP-CLIFFS
Preferred

KITCHEN & CO.

especially
certain surplus

ways/

135 South La Salle Street
Chicago 3, III.
Tel. STAte 4950

Tele. CG. 28

word, by the statis¬

evidence

fears.

Reconstruction

the

Corporation. Prior thereto he was
a partner in Case, Bosch & Co.
y.:

competi¬
the inside

held

presented

its

pages, confirms our worst
The problem is more acute

understand, ban ever before in our history."
"The Senate"- Senator Mead also
but only
paints u tpicturei in terms of facts asserted, "would terminate the
and statistical information, that is
(Continued on page 645)
us

with

property disposal policies. The re¬
port of the Small Business Com¬
tical

iHb Fink.-cial Chronicle)

smaller

have

respect

mittee, in

offers

(Special

the big

scheme. This report, I

were

up
of their

ahead
tors.

in this-questiomof' the-retention of
small business in our economic

strengthen the NSTA in.ernally
and broaden its influence by increasing its repre¬

with

was

standing ready
peace-time operations

which has brought us face to face
with the dire possibilities involved

would

CHICAGO, Z ILL. U John
M. \
Sherly has become associated with.
G, J. Case & Co., 208 South La
Salle Street. He has recently been

had completed their war

contracts and

►''Recently/* said Senator Mead,

Security ! Traders Association, reports

past

larger corporations were enabled
during the war to hold back civil¬
ian production by the smaller in¬

National

as¬

withi Lester &

Shetly With G. J. Case

tion. It is impressed upon us that,
due to their favorable position,

eco¬

"there has

has

economic concentration, now aug¬
mented by the necessities and.hap¬

large corporations as a threat in
our present economic scheme.

R.' Jeremy Glas, Glas & Crane, New Orleans,
chairman of the membership committee of the

the

over

Fi¬

Corpor¬
ation, to assist

nance

t rat ion

NSTA MEMBERSHIP

been

seven

understood that the

Chhonicus)

Co., 621 /
South Spring- Street, members of«"
the Los Angeles Stock Exchange. /

20,

would

ter m edijate
and long-term
to nine. •
2. Have retiring ex-officio member of Executive Council, auto¬ capital, spoke
matically, each year, be Chairman of the Nominating Committee.
strongly
3. Increase number of Nominating Committee from five to nine. in favor of the
4. The eight appointed members of Nominating Committee shall measure
and
come: Two from the
East; two from the Middle West; two from the cited the trend
;oward re¬
South; two from the Far West.
;
1.

Financial

erick B. Callender has become

sociated

Banking and Currency Committee having under consideration Senate
which

is giving everyone every opportunity to be helpful in the final selec¬
tion of officers forthe coming year.

to Thk

ANGELES, CALIF.—Fred-

Senator James F. Mead (D.-N. Y.), appearing before the Senate

Mr. Brown further states that he has requested suggestions not
from every individual member and that the Nominating

(Special

1] LOS

Hogle & Co, and Pa vies & Co.

Bill

;

Frederick Callender With / f
Staff of Lester & Co.
/

Danger In

.panacea,

/ NATIONAL TERMINALS

CORPORATION

sentation geographically.

Silver Price

Prospects

recently enacted legislation, but has

ceilings

plans to change existing

;

College of Business Administration

71.11

cents

planning to lift it
bill

new

been

per

as soon as

moval of the

the

OPA has

becomes law.

considering

ounce,

both

the

re¬

ceiling entirely and

the

silver

were

sell surplus silver to indus¬
try and at which the bill also re¬

industry will not affect
its utility for coinage, the Secre
tary stated.: JHence reprocessing
will be unnecessary. Whether any
loss has/been sustained, as through
oxidation, the Treasury has not

quires the mints to accept newly-

yet determined.

alternatively, its advance to 90%
cents, which is the price at which
the

bill authorizes the Treas¬

new

ury to

mined

domestic

silver.

Skinner Now With

will increase the ceiling on silver
bullion to 90% cents, rather thar

Boston Management

remove
,

the

"Chronicle" learns that fabricators

of silver
crease

ucts,

plan

present

in¬

in the prices of their prod¬

notwithstanding

the

higher

cost of their raw material as a re¬

sult

recent

events.

Therefore,

for the present at least, OPA has
no plans to change
existing ceil¬
ings on silver products.
At
today's
press
conference,

of Boston Fund, open-end
investment company with total
ager

net assets of

000,000

that Ernest L.

announces

Skinner

with

approximately $25,-

has

them

become

associated

securities

analyst

and associate in field research.

Mr.

Skinner

graduate

Columbia University and for the

order

Treasury Secretary Snyder stated
that
approximately / 475,000,000
ounces of sliver used in war plants
is

commencing to return to

now

are

system.
be

not

small

preserved

and

with

Department ot

the Boston Mutual Life Insurance

Company.

pleased to

created

for

business

in
the

sufficient
necessary

favorable climate
its

capital and long-term credit.

can¬

existence

and

operation.

►

fore the

ticularly

for interim

and

war.

basic need

The

are

reasons

now

associated with

♦Hydraulic Press Mfg. Co.
Kropp Forge Co.
*Miller

short-term credit from
the ordinary commercial banking
institutions that may be needed to
necessary

operate their business.

^Statement of -Dr* Beckman be¬

fore

Senate

Banking

In the first

place the old forces
such capital have
A small businessman if

and

Cur¬

'* "

*Detailed

local capi¬
talist and get him interested in
his
venture
and
that capitalist
go to a

•

'-Yv ./'''.-t si'*

Analysis

4/*' >'.

Available

COMSTOCK & CO.

capitalist has a
different way of investing his surr
plu3 funds. He .buys stocks,/ahd
bonds in large corporations. ■ He
page

*"!

Upon .Request

Now this local

'f^<<'"■ Yjvf

Trailmobile Company

what he accumulated, married or

(Continued

Candy Company

Superior Tool & Die Co.

dried up.
he needed additional funds besides

inherited, could

«y

securing

would take a chance.

What it needs is this financial

•

Manufacturing Co.

Puget Sound Power
& Light Co.

term

needs.
Once proper equity
capital and long-term credit is
provided, this financial underpin¬
ning will be sufficient to enable
small business again to get all the

i '

Corp.

Howard Industries, Inc.

Old Capital Sources Dried Up

long-;

647)

CHICAGO 4
So. La Salle

231

St.

Dearborn 1501

.'Teletype;€G

j'JjY
■
.

>►*.//

111

■

=5F«

Macfadden Publications

Koehring Co.

National Tool Co.

Gisholt Machine »/

Weyenberg Shoe Mfg. Co.

Nekoosa-Edwards Paper Co.
Red Top Brewery Co.'

us.

Froedtert Grain & Malt. Co.

Paper Co.

Compo Shoe Mach. Co.

Lake Superior 'District Power Co/

All Wisconsin Issues

Northern Paper Mills Co.

Hamilton Mfg. Co//
James

Manufacturing Co.

DOYLE, O'CONNOR & CO.

HOLLEY, DAYTON &GERN0N
Member—Chicago Stock Exchange

■"

•/:.

INCORPORATED.

•

135 SOUTH LA SALLE

CHICAGO 3, ILLINOIS
Telephone:

Dearborn 6161'

S/«

STREET

/
'

So.

105

V-£;*

;

Teletype: CG 1200

Memoers

Chicago Stock Exchange

225 EAST MASON ST.
MILWAUKEE (2) Y
PHONES—-Daly 5392 / Chicago: State 0933 V
/ v/
Teletype MI 488

CG 262
.

La Salle St.,

Chicago 3, 111.
Central 0780

Offices In Wisconsin

J
f

fundamental.

Cons. Water Pwr. and

PHONE STATE 0101

.•

Nutrine

THE SECURITIES

(formerly captain U. S. Army, Signal Corps)

LA SALLE STREET

J J' ?"•' i Y -i/ 4
*
Aeronca Aircraft;

for such

CONTINUOUS INTEREST IN:

announce that

SOUTH

CHICAGO 4, ILLINOIS

The need for intermediate and

rency Committee, July 25, 1946.

PAUL Mv OHNEMUS

231

long-term capital is basic and in
my opinion it will be just as im¬
portant two years from now, and
ten years; from now, as it was be¬

such a climate is the adequate fi¬
nancing of such enterprises, par¬

has been manager

of the Investment

ADAMS & CO.

have such an economicsI have been equally con¬ underpinning in the form of equity

that

vinced

last six years

One of the basic conditions for

man¬

than 10 years I have been convinced that the preserva¬
tion of small business side, by side with big business is essential in
For

Research Co.,

agement and

TELETYPE CO 36!

for its successful

BOSTON, MASS.—-Boston Man¬

entirely.
headquarters

OPA

;

vitality unless

ceiling applies to all silver, in¬
cluding imported metal. However,
present indications are Jhat OPA

Ohio State University

;

preservation o? snaall business side by
big business is essential to our economic system. Points
out that old-time sources of capital of small business have dried up/
since local capitalists now bay stock .and bonds of large concerns.
Favors Mead Bill setting up a Federal small business financing
corporation,, and holds provision for $1 billion capital is adequate.

force

OPA's

Request

Prof. Beckman asserts that

aluminum

side with

plants. The small amounts of im
purities such as oil and sulphur
picked up by the silver while in
war use

Circular

|
|

By THEODORE N. BECKMAN*

—

recently passed Silver Bill by Saturday night, it becomes law auto¬
matically. It is reported that OPA,^
whose present ceiling on silver the Treasury. The principal users
bullion

♦

silver products. Treasury Secretary Snyder says 475
million nances lent to war industry is being returned. * "
WASHINGTON, July 30.—If President Truman does not sign the

■

and Common Stdcki:

Of Small Business

OPA expected to raise ceiling on silver bullion in accordance with
•

Preferred

Financing Difficulties

Eau Claire
*,'• ?'! w

Fond du Lac

Madison

La Crosse

Wausau.

:i:

(618

exchange of two issues of the plant, a subsidiary of Amer*
lead Sugar Refining Co., would •
July 15, paid an initial dividend shut down Aug. 8 ''due to the con- >
on its outstanding common of 15
tinuing and critical shortage of
Cents per share. Investment cir¬ raw sugar." The complete line of •
cles regard the distribution as ex¬ McCahan's Sunny Cane sugar will ,
tremely cohsefv&tive. 7: In 1945, be produced at the Franklin Re¬
well before the construction boom finery in Philadelphia and other
was
under way, Warner earned refineries of American Sugar Re?
$1.16 on its present capitalization. fining Co. and the McCahan sales
In May of this year, citizens of organization will be maintained.
Philadelphia approved appropria¬
tions of about $78,000,000 much of
Philadelphia Stock Exchange *
which is to be expended for civic has approved for listing $30,000,-

ment

Haloid

Utility Commission refused
Philadelphia, Transportation > Co.'s petition for an immediate tempo*
tary fare increase to act as a stopgap until Nov. 5, when the Com¬
mission will rule oh the company's application for a permanent
Last week the Pennsylvania Public

Standard Stoker Company
Memos

Request

BUCKLEY BROTHERS
Members New York,
Los

Angeles

Philadelphia and
Exchanges

Stock

P. T. C. Stopgap Fare Refused

Company

,1420 Walnut Street, Philadelphia 2
Los Angeles
Pittsburgh, Pa.
Hagerstown, Md.
N. Y. Telephone—WHitehaU 3-7253
Private Wire System' between
Philadelphia, New York and Los Angeles

New York S

fare increase.

Graff Miller, counsel for PUC, observed that the company's

petition' failed to Include any. pro-^*
posal • that«a rebate be I provided increased to 26.95% of resources,
any excess fares paid by par compared with 19.48% six months

lor

trons.
G. Coe Farrier, assistant ago. Common and preferred stock
Philadelphia city solicitor, also holdings declined to 44.03% from
objected to ihe petition. Hearings 47.62 % as of the year end. Total
before Commissioner Houck on resources on June 30 stood at $34,the request for a permanent in¬ 649,907, up from $26,911,309.
crease will be resumed Aug. 13,

000 Philadelphia Electric Power
of activities. first 2%s, 1975.Vva
It is reported that sales in June
were the largest of any month in
Sharon
Steel
Corp.,
Pitts¬

improvements falling within Warher

Company's

the

company's history.

W. D. George and Thomas
Obert, re¬
Fitzgerald, Trustees of Pittscently underwritten and distrib¬ i burgh
Railways |Do, have issued
uted by Newberger & Hano, Phil¬
a belated report; of 1945 opera¬
adelphia, has declared an initial
tions. It states: "Total operating
quarterly dividend of 12 % cents ?■ revenues of the; street
railway
per share. In announcing the dis¬
and feeder and Shuttle bus op¬
tribution, president Nathaniel F.
erations K»f or. the ' year ; 1945
Cooper stated this policy was con¬
amounted
to
$21,720,848, and
servative, earnings for the June
were $239,902, or 1.1%
greater
quarter being slightly over 48
than
in
1944.
Street railway

Stock

Bank & Insurance
Stocks
Philadelphia Transportation Co.
3-6s 2039, Pfd. & Common

cents

H.N.NASII&CO.
1421 Chestnut Street,
Locust

Philadelphia 2
New York Phone
HAnover 2-2280

Phila. Phone
1477

Teletype PH 257

Inland Gas
1st 6Jfcs 00%

Paid

Common

Midland Utilities
Common

CERSTLEY, SUNSTEIN & CO.
Stock Exch.

and Phila.

Members New York Curb Exch.

213 So, Broad

(Assoc.)

St., Philadelphia 7, Pa.
System Tel.

BeU

New York Phone

PHLA 591

WHitehaU 4-2300

share.

wait

would

He stated the board

until the

end

passenger revenue was

the

Common

San-Nap-Pak Mfg.

average

share. Other

Common

i,;n

Preferred

ways,

coat of $8.21 per

principal purchases

37,500

shares Eversharp,

Inc., 25,000 shares Tennessee Gas
& Transmission and

1,000 shares

Interchemical Corp.

LEWIS C. DICK CO.
1420 Walnut Street, Philadelphia 2

PEnnypacker 5-1787
Bell System

N.Y. Phone REctor 2-0037

ington
year

special

car

movements and other

miscellaneous

operating

rev¬

enues."
A

total

123

additional

new

Wellington Fund

of Well¬
"It must be

the system's outs anding securities
will be gratified to know that rev¬

states:

are

in the

Botany Worsted Mills pfd. & A
Empire Steel Corp.

per

for the full
first half of

In the

1945.

year

1946, 1,388,915 vehicles used the
Normally : greater traffic
is expected in the last half of

span.

the year.
of

total

vehicles

63,667

com.

between Camden and

1946

record

secutive

Philadelphia

set.ing

July 28,

Sunday,

for

new

third

the

con¬

Sunday and establishing
day's traffic "since

heaviest

the

National,

try following only Chase

Guaranty Trust and National City
of New York and the * Bank of
America in San Francisco. In ret'
the

will rank

bank

new

16th in the nation.

Henry S. Davis has been named

eastern division, Phil¬
adelphia Electric Co., with head¬
quarters in Jenkintown, to suc¬
ceed the late W. G. S.errett.
manager,

A. Lawler, controller of
Telephone Co., of Pennsyl¬

Bell

of vania, has been elected a member
Philadelphia- Control,
Con¬
Phila¬ of
delphia, announced last week that trollers Institute of America.
Paul

McCahan

Woehrle,

manager

Sugar Refinery,

Philadelphia Stock Exchange Oldest in America
Thirty

years

lutionary

and

shall

Commonalty

see

fit to

order and direct."

distinction

under General

returned to

ington,

Mayor
Hamilton's contribution
followed, somewhat erratic¬

was

ally, by succeeding mayors up to
1753 at which time the aggregate
the

fund" stood at

"exchange

pounds. Although the so-called
"Mayors' fund" was not put to use
immediately, the idea of establish¬
520

taken

exchange had

merchants'
firm

The

root.

April

II,

Bradford's Journal

1754, issue of

contained notice that:

com.

Valuation and

Appraisal

RAILROAD EQUIPMENT

"Subscribers to a public

CERTIFICATES

PHILADELPHIA OFFICE

Stock Exchange Bldg. Phila. 2
Phone Rittenhouse 3717

point of capital structure, the bank
will be fifth largest in the coun¬

John

Sugar Refinery

McCahan

So. Colorado Power Co.

be $60,Surplus of the bank will
be $90,000,000 and undivided prof¬
its not less than $10,000,000.
In
100,000.

Sept. 7, 1941.

ing

Available* Publications

common

S Company

merger of Mellon
and Union Trust

crossed the Delaware River Bridge

Penna. Engineering Co. com.

H.' .ML Byllesby

Bank

Pittsburgh, will

sources

the

from

National

Co.

house

are

coffee¬

invited,lo meet at the

Court House on

Friday, 19th in¬

stant, at three o'clock to
trustees, agreeable to the

Valuation and Appraisal

Tele. PH 73

CITY OF PHILADELPHIA BONDS

subscription.'^

choose
plan of

charge and the newer City Tavern

the

became

cen'er

Philadel¬

phia's trade and commerce.
The actual history of the pres¬

Stock

Philadelphia

ent

formed and Matthew
was

McConnell

elected first President. The

oldest known record of

security

quotations in this country is the
"Price Current of Stocks," which

printed
and is

was

paper

now

3 by t6-inch:

in the posses¬

sion of the Secretary of the Ex¬

change.

1792,

and

dated

signed

April

A total of 232

merchants

con¬

(Continued on page 639)

CORPORATE and MUNICIPAL
Copies

Request

Harshaw Chem. Co. Common

SECURITIES

Bought—Sold—Quoted
v,'V

■/

STROUD & COMPANY

v,vV;V'

E. H. Rollins & Sons
Incorporated

1528 Walnut St., Philadelphia 2
York

Boston
San Francisco

Chicago
.

Incorporated
■;

123

Pennypacker 0100

New

V.7

SO.

BROAD

.v.---

STREET

PHILADELPHIA, PENNA.
Allentown

Pittsburgh

:>.x\

ri'Vv-rt

Reading

120 BROADWAY

| NEW

YORK, N. Y.

Scranton

Williamsport

RAMBO, CLOSE & KERNER
INCORPORATED

*1518

Locust

Street, Philadelphia 2, Pa.

Private telephone wires to New

10»

,by> Samuel;

PENNSYLVANIA LEGAL BONDS

Rockwell Mfg. Co. Common

Ex¬

change began in 1790. That year,
an association
of ^ brokers was

Compilation of
Phila. Elec. Co.CommoB

:'?y

Wash¬

Philadelphia

of a
has been

Sterling Motor Truck
Warner Co.

ments, to $2.10

ing

enues

Vineo Corp.

require¬
share on the

preferred

after

Co.

fifth

vestment

Dealer Inquiries invited

Company reports net profit for
period of $144,834, equiva¬

the

lent,

Trust

Capital of the new Mellon Na¬
tional Bank and Trust Co., result¬

for the current year, are ap¬
That date, Oct. 7, 1746, marks
to find that his London Coffee
proximately 6% greater than last the first of a chain of events which
year.
It is reported that cash in has moved historically forward for Shop had lost its popularity to a
bull market and Welling¬
rival. In 1780 he retired from its
the hands of ihe Trustees is now two hundred years.

Fund

'salting away' in¬
approximately $22,800,000.
profits
,by
gradually
reducing stocks and other secur¬
Warner Company
ities
selected
for
appreciation."
During the period cash and gov¬
Following recapitalization last
ernment bonds held by the fund fall, which included the retire-

ton

traffic.

automobile

increased

Mellon National Bank and

response

The six months report

realized that

Teletype PH 205

before the Revo¬ tributed 348 pounds. As a result,
War, James Hamilton, William Bradford established the
then Mayor of Philadelphia, con¬ London Coffee House located at
Front and High Streets "for trade
spacing of seats and windows; arm tributed the sum of 150 pounds
in goods and commodities." The
rests;
forward - facing
seats "to be applied toward the build¬
London Coffee House flourished
throughout, and plastic fabric seat ing of an exchange in this city for
the like uses unto that of the as the nucleus of the city's busi¬
covering.
ness until well into the Revolution.
While
figures
given
in the Royal Exchange in London, or to
Following
\he
war,
William
Trustees' report are now some six the erecting of such other publick
months old, investors interested in edifice in this city as the Mayor Bradford, who had served with

included 41,666 shares Taca Air¬

Struthers Wells Corp.

upward

of 1945 and to $1.96

$244,055, represented reven¬
from advertising
in cars,

ues

which absorb 60% of heat rays of
the sun; standee windows; even

stock

own

sharply

This? corresponds to 64 cents
earned in the comparable period

was

received and
Baldwin Locomotive Works has
.placed in operation in 1945? The
announced receipt of foreign or¬
.remaining two cars of the latest
ders for 32 steam locomotives, 12
,order for 100 were delivered in
of which are for Chilean' State
January, 1946, bringing the total
Railways. Ten each are for the to 566 modern cars. Included
in
accounts of National Railway of
the fleet is an experimental post¬
Mexico aiid Finnish State Railway,
war
all-electric
car
embodying
Additional recent domestic orders
improved
braking
equipment,
for Diesel-electric locomotives in¬
smoother
power
control, speed
clude six for
Missouri-Kansasgoverning relays that limit maxi¬
Texas, four for Erie, two for West¬
mum speed, improved acceleration
ern Maryland and one for Amer¬
on
up-grades. Electric operation
ican Rolling Mill."
is provided for all equipment for¬
merly operated by air. From the
Pennroad Corp.
viewpoint of passenger comfort,
Among portfqlip changes in
the car has such features as greatthe first half .'year, Pennroad l^^lmprdved^Y^tUaiihg.^^sy^m;
Lustrecool glass in all windows
Corp. reveals the acquisition of
156,577 shares of its

in the firm's history.

year

Earnings for the first six months
of
the
current
year
moved

Alberenet Stone Corp.

best

$1,-

from

and shuttle bus routes

upon

dividend.

$20,415,-

period and net of $364,793, or 74
cents, in 1945 quarter.

061,170. The balance, amounting

March 31, 1947, before
the possibility of an
Company
has
taken preliminary steps toward
changing its name to Cooper
Brewing Co. and plans to list its
stock on the Philadelphia Stock
Exchange and the New York Curb.
acting

revenue

to or exceed 1941, which was the

combined Class A and common.

and

June

$275,-

50 cents on the common,
against loss of $343,339 in first

000,

results for 1946 may come close

feeder

623,

fiscal year,

extra

;

PCC type cars were

Iowa So. Utilities

Members N.

of Liebert

estimated

reports

burgh,

Tacony -Palmyra Bridge Co.
Present, indications^ are that

Liebert & Obert

Philadelphia

scope

quarter profit in excess of

Pittsburgh Railways Co.

preferred stock, Warner Company,

Pennsylvania Brevities

Empire District Electric

Thursday;; August *1,. 1946.

COMMERCIAL'& FINANCIAL CHRONICLE

THE

York1 and Baltimore

.THE COMMERCIAL' & FINANCIAL' CHRONICLE

Number' 164' Number "4512

First Bcsfon-Mefiion

Merger Effective Today;
Economics in
Meeting

New Officers Elected at Board

Merger of Mellon Securities Corporation with, and into The First
Boston Corporation was approved at special meetings of stockholders
of the two leading investment banking firms held in Boston and Pitts-

By Henry Hazlitt, Harper & Bros.,
York and London, pp. 222,
$2*00.
(Book Review) ;
' •
New

(QlilLesson

WESTERN PENNSYIVANIA

TRADING MARKETS

Intermittently for a good many years past the present reviewer
has been under the temptation fo; undertake a twentieth century
adaptation Of ^'Sophismes Economiuues^ or a mod*
v\Y
r
Y-; ^ H
ernized version of "Ce qu'on voit et ce qu'on ne
;

RETAIL DISTRIBUTION

voit pas," Now he can rest "tres content." Henry
Hazlitt has done the job—and, needless to add,
it far more effectively than this reviewer

C. S. McKEE & COMPANY

done

Members Pittsburgh Stock Exchange

could have hoped lo do it,
There is still room for further ! application of
the technique of Frederic Bastiat, but
only a

Union Tr. Bldg.—Pittsburgh 19, Pa.

Telephone

Teletype

Court 2380

;

master of gentle irony, of subtle humor and of
clever conversation could add to the work of Mr.
Hazlitt. And it is by no means certain ihat these

ornaments,

fhe pen of

Bastiat

delightfully
a

the effectiveness of

as they flowed from
century ago, would add to

effort to combat the

Hotel

eco¬

Harry M. Addinsell

Allan M. Pope

Philadelphian 5.8s 1960

Bellevue Stratford 5?4«

nomic taUacies so .common
snhance the enjoyment of

voday.They would
those who need no
convincing, but well might stand in the way of a
full hearing by those who need enlightenment.
Henry Hazlitt
rlwgh Iuly:20[,Thehi&gerwillbecome Effective prr Thursday* Aug4
But, however that may be,« Mr. Hazlitt has
and the business will be continued under the name of The First Bos¬ said simply, interestingly, and convincingly what so many Americans
ton Corporation. John B. Macomber will be Chairman of the Board (and others for that matter) peed so; much to read* or hear—and
of Directors, Allan M. Pope. Pres-*
believe* The book is in the best sense of terlh basic economics made
ident and a member of the Execu
Bain, A. B. Brushaber, George J. easy.
Y,,,.Yv-YqYY|>YYy:i
tive Committee and H. M. Ad¬ Gillies,
The author is convinced that to understand economics it is neces¬
S.
Davidson
Herron,
dinsell, Chairman of the Execu¬ James M. Land and Arthur B. sary to consider not merely, the immediate buttfheBlongerrteim
tive Committee.
VanBuskirk, who have been Vice effects of any act of policy, and to trace the consequences of that
Presidents of Mellon Securities act or policy not merely lor: one group but for all groups in the
Eight
new
directors
were
elected.
population. He believes that failure to recognize the; fallacies of much
They are F. A. Cannon Corporation.
and Edward H.
Other
directors of The First of what today passes for economics or sound economic statesmanship
Ladd, III, Vice
Boston Corporation are Harry M. flows from failure to do just this.
>
^
Mr. Hazlitt proceeds to take popular notions of the day, one by
Addinsell,^ Charles F. Batchelder,
James Coggeshall, Jr., Eugene I. one, and subject them to the tests thus suggested. He lists popular
Cowell, Nevil Ford, Joseph W. programs, and inquires not only what their immediate but their
John R. Macomber

pa*9fi

1935Y

Phila. Warwick 2s 1956
*

Phila. Transportation

Phila.

Pfd.

Transportation 3-6s 2039

Phfo Western Ry. 5s I960

Samuel K. Phillips SCe.
Members

Philadelphia Stock Exchange

% Packard BM&, Philadelphia 2
Teletype

•

PH r378 >.

N. Y^PHpne
COrtlandt 7-6814

Hambuechen, Arthur B. Kenney,

R, Parker Kuhn, Aubrey G. LanDuncan R. Linsley, James

ston,
A.

Lyles,

John

John R. Macomber,
Montgomery, Louis G.

Mudge, James H. Orr, Allan M.
Pope,
William
H.
Potter,
Jr.;
Frank

Stanton,

Winthrop

Sullivan, George D. Woods
Adolphe H. Wenzell.

and

ultimate effects are likely to be not only upon the groups for whom
these schemes are hatched but upon all the others which must come
under the influence of them.

He begins with

ends with the current assault

There is

saving.

broken window and

a
,

& Papcr.
Y

Common

American Wringer Co. Com.

So. Colorado Power Com.

the drive for exports, government price fixing, the
and

f||JYY New Officers Elected

little essay on the

mirage of inflation,
"parity" prices come in for careful analysis. The author wants to
know who is protected by tariffs, and if the unions really raise wages.
Tbere is good sound sense in bis analysis.of the fuhction of profits^

in 1;

interest

Cvrrent

Southern Advance Bag

blessings of destruction; a brief dis¬
quisition about disbanding troops and bureaucrats; and a short dis¬
course on \he fetish of full employment.
Spread-the-work notions,
a

haV0

tVa

and

u,Y- Y.s .Y-Y4 ■.Y Y^ Y':

t^e Workings of the price sys'.em.

? <

At the first: meeting of the en¬
In all there are some 22 current topics treated in this most de¬
Jas. Coggeshall, Jr.
George D. Woods
larged Board of Directors of The lightful and
enlightening way—current topics; about Which endless
First Boston Corporation held in
popular misunderstanding: exists throughout the world Aoday* It : is
Presidents of The First Boston New
York,
Tuesday, July
30, in the mdnner of
presenting inith that- the, authpr v excels.' rThe
(Continued on page 637)
Corporation, and Hugh D. Macdoctrines Ore the^ doctrines of sensible; people every where.A It is the
purpose of this book to bring them home to the great rank and file.
It Isl: the hope of this reviewer that it wiM^succeqd, If soo the
world will be eternally indebted to Mr. Hazlitt.
His contribution
would in that event be every whit as great as that of the masters who
long ago formulated the truths so long hidden from the victims of
Text of Legislation enacted by Congress to regulate and curb
the perennial demagogue.;:
i
,

BOENNING Sl CO.
1606 Walnut St.,

Philadelphia 3

fepnypacker .82004 5-YPH 30 Y
11- ':P/ivete.' Phone,.to. N. Y.C., ' ;.
CQrtlandt 7-1202
Li
-j.
.

•

Administrative Procedure Act

judicial powers of government agencies. Will affect proceedings of
ICCf SEC^ Federal Puwer Commission and federal Trade Conmission.
Provides for full right of judicial review unless precluded
by statute*
-Yx-Y-: ' --YYY -

•

New Issue

Established 18!)5

The "Administrative Procedure Act" (Public Law 404 — 79th
Congress) which was approved by President Truman on June 11, and

which

peculiar interest

curbs the procedure and judicial

of the

ment

agencies,

been

now

much

Territories,

Inas¬

and

Exchange

the

Federal

Trade

agencies composed of representat¬
tatives

below the full text of the Act:

parties

organizations

the

^2) qodrts^m^tial and

[Chapter 324—-2d Session]
'

•

■

•

....

YcY;": YY

[S. 7]
--v-.f

■

improve

';Y'Y''Yf

jr ■

/';'Y.' Y.-Y!

Common Stock

Trading Department Active in

Share of

Western Pennsylvania

■

Price $10.00 Per Unit

Direct Wire to Neu)

(Continued

Prospectus

may

CHAPLIN

be obtained from

N. Y. Stock Exch.

page

ALLAN N. YOUNG & CO., Inc.
52 Wall Street

Lewis Tower Bldg.,

Philadelphia 2

gress

Ootid

419 Wood Street

PITTSBURGH 22, PA.
Grant 3900

New York 5

Bell

».•.

•

the "Administrative Procedure
■

has beeome associated with

Salle! Street.

•

61 Broadway ;

NEW YORK, N. Y.
Bowling Green 9-3981

System Teletype—PQ 473

Definitions

Army

YYYYYY Enyart,. Van

was an

Camp

officer of

Co.,

AcW.Y: charge of the Tax. Warrant
(a) Agency.^uAgency" ; nieans Bond .Trading Departments. -

Bee. 2, As used in this
,

Municipal Boiids

new jersey

PMNSTOANIA

in
and
&:

A. Webster Dougherty &
Municipal Bonds
.

Co.

1421 CHESTNUT

STREET

PHILADELPHIA 2

Dolphin & Co. f
Building
PHILADELPHIA 9
Y

Fidelity Philadelphia Trust
"

Telephones»

■

Philadelphia—Pennypacker 4648
Teletype

PH 70

New York
BOwling- Green 9-8184
.

v> >

Pennsylvania
and New Jersey

Mr,; Ohnemiis

Captain, in " the Signal Corpsj.

Prior thereto he

Act".

•

MUNICIPAL BONDS

CHICAGO, ILL—Paul M. Oh-j
nemus

Section 1. This Act may be cited .formerly, served in the IL S.

•

Doyle, O'Connor & Co., 135 South

assembled,
TITLE

Pitts. Stock Exch.

638)

Boyle, O'Connor & Go.

of ' ReptesenUtipes: of'

United States of America; in

COMPANY

New York Curb Exch. (Assoc.)

Be it enacted by the Senate and

;

«N>>

Members-

Paul M. Ohnemus With

administeation ;bf

administrative procedure.

: HQUB'e'

York City

;i;

Yjustice vby * prescribing^fair^; ;
:

(-■.

military commissions, (3) military

Offered in Units Consisting of
One Share of Preferred Stock and One

represen¬

parties to .the disputes, determined

|pu|lie

(Par Value 10c Per Share)
'

from the operation; of fhia Act (1)

Commis¬

ives of the

2-4552

Y. Telephone HAnover

Bell System Teletype PH 220

section 3, there shall be excluded

the

sion, the ^Chronicle" is printing

provided by law.

to the requirements of

Exchange

Stock

30,000 Shares Common Stock

the District of Col¬

of authority as

Except

the Securities

Commission,

umbia. Nothing in this Act shall

Interstate Commerce Commission,
and

other

be construed to repeal delegations

business

over

(Par Value $5,00 Per Share)

affects^ the activities

authority

States

30,000 Shares 45c Cumulative Dividend Preferred Stock

than Congress, the courts, or the
governments of the possessions,

published.

and finance such

United

exercise

which

of several commissions which now
exercise

the

ment

wide and discretionary authority,

has

govern¬

numerous

Philadelphia

Stock Exchange Bldg., Phila. 2, Pa.

each

authority (whether or not
within or subject to review- by
another agency) of the Govern¬

%JittRdcr & ©a.

;®co.
Members

(A Delaware Corporation)

to*'

business in that it regulates and

powers

Janet's Apparel Shops, lnc

'
:

New York—HAnover 2-9369

Bell System Teletype—PH 290

•

wi>m>mfi mnnwwnl

THE COMMERCIAL & FINANCIAL CHRONICLE

^Hursday,; August

i94 6

Rockford Securities Dealers Fete Illinois Dealers Assoc. Officers

Public

Utility Securities

•v
"***■

PUBLIC UTILITY STOCKS
We maintain an active market in the stocks of
many

public utility companies and through

the facilities of our direct

system
trade
our

are

private wire

especially equipped to
those markets where

various

offices

are

located.

Paine, Webber, Jackson

Curtis

American Gas & Power 3-5/1953
Federal Water & Gas

New

England Public Service
6 & 7 Plain Pfds.

Gilbert J. Postley & Co
-

29 BROADWAY, NEW YORK 6. N. Y.
Direct Win to Chicago

m&i

'"'-w
'

S«

:
,
*,«

'''

V -l

THE COMMERCIAL' & FINANCIAL' CHRONICLE
ident, pointed to
with1 which
upon

the, frequency

theM bank* is

Jerome Keane Acquires

called

to represent the interests of

estates

trusts

in the

operaion
or liquidaion of business enter*
prises, and. indicated Mr. Ken*
hedy's business and investment
experience will supplement the
bank's facilities in that field.
ter service in World War I

Af¬
as

major of field artillery, Mr. Ken¬
nedy was associated for " twenty
years
with Wells-Dickey Com¬
pany,

■r') DETROIT, MICH.--Jerome E.
J.

Alfred V. Smith Partner
In

Thereafter he headed the Cedar

change.

Fuel

and

Company

year

T/us

under

when that business

was

sold,

any

formerly

was'

The firm

conducts;

as an

individual, and

was

partner in Frank C. Masterson

the Penobscot

Co.

name

as a

solicitation

Due July 1

Interest payable January 1 and July 1

Price

10134% and accrued

' J

interest

1,000,000 Shares Common Stock
($1 Par Value)

Copies oj the Prospectus may be obtained only jrom such < j the
undersigned
legally ojjer these Securities in compliance with the securities laws oj the

may

respective states.

Eastman,, Dillon
The First Boston
Membership

National

the

Kidder, Peabody

Corporation
&

Co.

Glbre, Forgan

man

Lehman Brothers

Association' of Securities Dealers,
Inc.,

total of
Septem¬
increase of 142

June 30 reached
the highest since

2,514,

ber^ 1942, arid an

rporation

for the first six months of 1946,

announcement by
executive di¬
the Association.
The

according

Wallace H., Fulton,

rector; of
number

"registered

represen¬

by NASD as of
June 30 was 23,374. The fact that
2,023 were registered since the
Association's by-law establishing
this classification became effec¬
tatives" reported

tive on January 15 is attributed
by NASD officials to the recent
increase in the number of firms

This announcement appears jor
purposes

oj record only. These Securities have been placed privately through the
undersigned,
are not now
being ojjered to the public*

and have not been and

$10,000,000

engaged in the securities business
and to an

expansion in employee

personnel.

'k"

Amendments

the

Associa¬

SUNRAY Oil Corporation

tion's by-laws providing for perr
sonal registration of proprietors,
partners,., officers,, salesmen, trad¬
ers or other qualifying principals
or

employees of members were

adopted

a year ago

the

membership.

for

registration

1%% Note
Payable in installments 1947

1956

by a vote of
An

applicant

agrees,

members, to abide by the by-laws
and rules of f??r

Asosciation
decisions
a

there

"registere

Is in the
ber in

sa*

resp^'

practice of the

regulations
nder.

r-^eseritativeV
-*?t'on

and

Therefore,
now

as a mem¬

' 5s "professional

duties and c' .'nations."

Eastman, Dillon

& Co

general

Building under the
Company.

Keane &

$20,000,000- Twenty i Year 2Y8% Debentures

Sum ay Oil Corporation

va¬

stock brokerage and
underwriting
business at their offices located in

an
offering of these Securitiesjor sate, or as an ojjer to buy, or
oj such Securities. The ojjer is made only by means oj the
Prospectus.

July 1, 1946

member

governor and as chairman of
rious important committees.

New Issues

Dated

Exchange for a number of
years, serving several terms as a

circumstances to be construed as

oj an ojjer to buy,

Mr. Smith in the past did

business
a

admitted

of the

bers of the New York Stock Ex¬

Ice

Keane

•

Alfred V. Smith has become

and Treasurer from 1931 to 1938.

Lake

been

just made by the Board of
Governors.

investment partner in Brady & Garvin, 115
itS Vice President Broadway, New York City, mem¬

President" and director until last

has

ment

Brady & Garvin

Minneapolis

firm, serving as

Keane

membership in the Detroit Stock
Exchange according to announce¬

•■'■--.
";."

'J! '''•'
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:
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,LCJHRONICLE
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v.;

■ri-xy
i^)J>W.. #TV+»** •.«•*■*»•• t

THE COMMERCIAL

"■;

r':"V

■"

V'4 4 ^ V
4.«*>4 .r^5; i^AiJ.',,.^ • J-;*sf'ti^(tA-*#*. i'w.-'f.ivi'.'A-;V*<*

•",

X-Xl...

,f-,

>-';•

••

!«■»'

.
'

—

•Thursday, August I, 1948

;

^a*48^hbu|
"dogfight" over the Hamil-1
Steel Company
,bf»America on.. Monday;b„etwee^
a union-chartered plane, dropping
leaflet's to non-striking workers
within the plant and a company
plane which attempted to. scare
the union plane off its objective;
Thousands of pickets, street speqr
was a

ton

By
"Industrial activity in

WILUtAM MCKAT
relatively stable

Canada has been holding

throughout most of this year and;recently his been.gi'adually fising, f
according to the August Bulletin- of LaSalle Extension University
at Chicago, 111. "It is still about 25% below the high wartime rate
bf

yea^hgd
It is around 50 % ihighe?

DeriOd.

of the best prewar years.

one

;

striking gains have
industry

hilherap.

ucts, Ltd., at Montreal struck oij

Substantial gainp

the company had
failed to put intd bff ^t tte recoiril

most

"The

the automobile

made in the output "of

have been

pulp and paper, of chemicals and
many miscellaneous items.- The
shutdowns of lumber mills have
lowered ' production
in
several
lines. Output has dropped some¬
what in the food, beverage, and
tobacco industries as well as in
meat

"The trend in commodity

prices

upward and the whole¬
sale price index is at the highest
point since May 1921. The rate of
increase has been speeding up in
recent months, with the greatest
rises in the' last' few weeks..

"Agricultural

II all classes of Canadian.

If external and internal
; J bonds.

executed

orders

(for dealers, banks and
institutions) on the Mau¬
treaT and Toronto Stock

;

rf:Exchanges,

net

New York Prices.

\f
;M>.

'.--'v.-.:

•

Direct Private Wires to Buffalo,
Toronto and Montreal
•'

i'.'V;

••

prospects

has

than

Montreal

Hew York S.N.Y.
-v

.•t

■

•

!♦

•

•:

r- 'iV: - -:
Bell System

of the

Teletype NY 1-702-3

Columbia

there has been a slight

the

due

frt>

iJt30V£RNMEMT-a
PROVINCIAL

Steel

•j

steel strike

now

boils down -pretty

much to being
a struggle
between insistence by
government arbitors on a tencents-an-hour wage hike as the
basis for settlement of the

CANADIAN STOCKS

and

dispute

somewhat toned-down

de¬

mand

by the CIO for a 15-cent
rise. Original union demands were
for

19% cent rise.

The govern¬

ment fears inflation if the increase

A. E. AMES & CO.
INCORPORATED

exceeds ten cents. Donald Gordon,
Chairman of the Wartime Prices
and

Trade

;

'•;• '

Dominion

falling off tistic, reporting
strike.

Demand
The Canadian

CORPORATION

Board, told -Commons

V.v

Bi*th Rate, Declining

The

woodworkers'

Worker^ Tone Down

MUNICtPAL

tptaled$22,058,594
this
and $17,286,543 last year.

(

Bureau

Sta¬

declining birth

rate in Canada, states that "ultir

Acute

CANADIAN BONDS

dends

where

shortages were noted ' in'
many lines in Quebec and avail¬
able supplies were said to be still
falling short of heavy demand in
Ontario.
There acre shortages "incertain
staple <' commodities in¬
cluding soap in the prairie'provInces-and there still are shortages
in many essential lines of building'
supplies in British Colurttbia.

mately

stationary or even de¬
population is to be ex¬
pected" in Canada.
Families of
a

clining
those

sional
much

managerial^ and profes¬

occupations are reported
smaller than the families

of unskilled laborers and farmers.
French' response* * ta
increa'sihg

NEW YORK 5, N. Y.

NY-1-1045

Dominion

COMPANY

WHitehaU
?

3-1874

Though Canadian

kets have very

stock -mar¬
quiet, stock prices

Canada

%■

,k";

■

[Government

Provincial

Municipal

Bought—'Sold—-Quoted

»•

rj.

•

■

Wood, Gundy & Co.

Corporate

•

Incorporated

accen¬

tuates the scarcity.

...> ■...

Full Production Urgent

What is most urgent at this time

i^ihiiLproductioh;J Thlsi

;

sponsibility before all of
the

immediate

task

and

us,

the

busi¬

and

another

sellers'

have ;now

dangerous development,

very

should

allowed

that

know

market of the kind

and

not

and

to get out

must

not

of hand. It is

the few careless and

the

businessmen
ill

consumer

short-sighted
gift

deadly

will.

throws

cloud of doubt and suspicion over
all

business

difficult

making it still more
complete quickly the

reconversion

peace

and

balanced

You

from

ultimate

can

•

war

return

peacetime
certain

econ¬

that

this

type of profiteering sellers will be
at

definite disadvantage in
will re¬
turn when supplies are plentiful
once again.
For consumers have
long memories—particularly when
they feel they've been taken, ad¬
vantage of unnecessarily at a time
When they needed help most,
j
a

nessman,

and

the

government.

to|;lw#te^the,-pjdce of those ho\y
being produced.

very

the keen competition that

Millions and millions of dollars
been spent to create and
good will.
Much of it I can
be lost in a moment of bad judg
ment!
Yes, a momentary itching
palm can
destroy what
ibany
years, much hard work, and manydollars Hhav.e built up;
>
j
j
:

only

from

those

producers, who
products within the

most consumers

range

can

afford

to pay.

Mass production can only
continue and grow if there is mass
distribution
tion.

and

mass

final

the

consump¬

analysis

establishes his

consumer

the
ceil¬

own

ing price.

,
Most consumers have
can be squeezed
just as much by the consumer's
inability to pay his price as he
can be squeezed by any govern¬

to! A businessman

mental control of his prices.

Businessmen have always been
one of the most progressive forces
in

our

country.; It is they who

created

• and
developed the free
enterprise system. It is they who
today must continue to make it
work.
It is their responsibility to

so, and they, have a perfect
right to demand that all who afe
a part of this system cooperate to
the fullest in seeing to it that it
works smoothly.

Avoiding Industrial Conflict v

and pains we
result of the fir£t
stumbling 'block
of' "runaway
prices", may not be of long dura¬
Whatever

suffer

may

aches

as a

Our recovery,

tion.

have

depend

hold

second

Here.again .we must remember
that greater production will come
price .their

businessman

one

if: Businessmen

their

have

inventories.

industrial conflict.
.

however, will

how well we avoid the
stumbling block—that of

•

This! stitihbim

unfortunate one because, it inters
feres with the production we ar<e
so

within

may1! be'

the^ better j part of wisdoih?
long

run

special

—

with

due

irtj the!

regard

and-exceptional

for |

circiim-

StbhCes^p^'^orten: \:spmeyYJPhi |
range commitments and to con¬
sider the advisability of cancel-)

Toronto

Montreal*

cut

substantially

because

the

reductions in, overtime, because

pit

down-gradihg,; and because * of
shifts from; high paying industries |
to low

paying industries.,

.^ f

s s.,

some or
_

proportion of orders d^i
ritely placed with them are tfic♦itteus and represent duplication
Later forced can^ellatinpc may be

what

than some

Businessmen, shouldimmedi¬
ately review the need for any Con¬
-

cat housmg situation.
M^coyer
they should defer a^y nunit?.! out¬
lays that can, for the time being,
be postponed* ■ ;
* >
•
'
<
\\
i. Businessmen should-again .take

in;

selling

•

govern ment

savings bohdS to the public.j This

'.'r '4 f,A';

[

air^^vho Remained ^hiployed^i%as j ■

I'm
not
going. to argue that
all of any duplicate!
r
_
.
orders that may have been placed
wages can-be adjusted without inProducers and distributors wbulc1 terfering with the profit positions
of industry % That would be like
be wise to attempt to deterMte*'

ling

the' lead

14 Wall Street, Ney? York 5
t)irect Private Wire*

withholding of goods

because

templated construction; at;" pi?
time! because; hf j the present cifiti^

CANADIAN
SECURITIES

their

still

more costly to all of
cancellations now;

All Issues
- -

market

;"'r 41•. ■

•

Bonds.

64 Wall Street, New York 5

nCeded;

Friday that if increases of more haveo shown a tendency -to re?than ten cents an hour are granted coyer somewhat from recent de¬
the steel workers, he will not at- clines, following very closely the
^tembt to "coiitinue price cotitfOls. trend in New "York.
Newsprint
C. H. Millard, Canadian director showed some strength and. golds
of the union, has said the union were slightly better. In New York,
would settle for "15 cents plus"
Canadian internal bonds weak¬
and a 44-hour week.
The' steel I ened about a point but external
companies are willing to grant a1 bonds remained unchanged.

TAYLOR, DEALE

help to assure consumer pur¬
chasing power in the days when
its
availability
will
be
most

"desperately seeking to achieve.
Moreover, by reducing supplies
is different from trie their
power to adopt policies to
and raising costs, industrial dis¬
is revealed.
Whereas sustain a
healthy prosperity, anc|
the British tend to decrease size
putes tend to force prices still
properly .serve iour people, our
of family with increasing pros¬
higher." Should * the price-wage
communities and our Nation. They
spiral get out of hand, the labofperity, the pattern with the French
must not demonstrate a momen¬
is just the reverse. Prime Minister
management strife
of recent
tary weakness and a short-sighted
months might appear as a mere
willingness to take a temporary
Ottawa^last Thursday that 4,000
game of tiddly-winks compared
joy-ride on someone else's costly to what
may lie ahead.'.
: •
:
single men, former? inembers "of
skyscraper
the Polish Army, will be brou ght
sighted ; are always inclined to
to Canada-to^o farm work^vThe
take the easiest way out and hope' pasj;
iBank of Toronto has opehed; a
piously that catastrophe will not
branch at Dawson Creek, British
to work out equitably and quickly
catch them.
&
Columbia and at Rocanville, Sas^
the adjustments in income made
Businessmen should give careful5
katchewani
'^ > >
thought to the amount and extent' necessary-by the.^ end nf thejwari
The income of the Nation's .work*Stocks Recover

RECTOR 2-7231

This will

also

prosperity
British, it

TWO WALL STREET

bus1-

omy.

Dividend payments

year

high level in all

British

lers'

on stocks
the Montreal Stock Ex¬

provinces .with the excep¬

tion

em¬

change and Curb in July were
$4,772,051 ■ larger
than for the
same month last year.
July divi¬

reports
that the wholesale: and. retail trade
a-

some

speculating in inVeni

are

tory, thus strengthening the ;seL

final

listed

continues

nessmen

ployment in manufacturing is 20%
below the wartime peak at May
1 it is 66% above the 1939 aver¬

ex¬

40 Exchange Place

monthly

though

that

reveals

review

Steady

The Bank.of

of this year.

May

Wholesale and Retail Trade

department

higher than

in June of 1945:but-8% lower than

age.

pansion later in the year."

Bank

Canadian

sales

quite

market

You know further that

ings for June compared With the
It leads to ever widen¬
corresponding month in 1945. The "business.
Dominion Bureau of Statistics has ing price gouging and unnecessary
reported that the dollar value of inventory speculation. It buys for
stores 'in June was 3 %-

jCti.adiieqiulii
supplies are available.

the worker, the farmer,
We must
|bbHhkt;Sdme cbhsunie^Aa^
work ;at -it/with utmost Speed and ^
ing- more than they momentarily unceasing "zeal.' The" way to linineed
and are
hoarding — Which prove* the atah^rdj of iivihgf-flor
constitutes not self defense but
everybody is to increase the proi
selfish defense * against scarcity^ duction of goods and
services—not

bad for business because it is bad

average.

The

Railway

Company Monday reported a de¬
crease of
$3,219,718 in net earn¬

are

Nova Scotia in its current

Pacific

Canadian

The

Off

prasMh

' You. know

yoUr own businesses.

you

wheat-growing

continue
with

Grpoeatiom

Steam¬

Earnings

Pacific

Canadian

general trend in most lines
of industry and agriculture is ex¬
to

Sarnia

isr

jprices5:' Up~^'nid-: T&stf--i;; Now, you do not need me to ex-^
plain \Vhy commodity prices are
rising, Caught between the pleas
of your customers for goods you
don't have, and the explanations
and alibis of your suppliers for raw
materials and merchandise they
don't have and can't deliver, you
are only too well aware of the
.mechanics of a sellers'market
from what happens every day in

ment."

ceed that of last year.

pected

Vessel

cancelled by

was

Misener

because of
"chaotic conditions prevailing at
this
time
between? law-defying
labor J unions
and the govern¬

especially

been

in ithe

favorable

•

Arthur

Port

Scott

Lakes

Great

modern

000
at

prairie provinces alnd the wheat
crop may come close to 400,000,000
bushels.
-Total fa-rrri output,, in¬
cluding that of livestock and live¬
stock products will probably ex¬

Dominion Securities

•CCvf '

by the* Quebec ; LabortRelationa ^Board., Mpanwhilp; als<h: art
order for construction of a $2,500,ago

conditions

current

higher

Weather

made several months

mendations

"The

.'•

22%

ai:e \

favorable

| Stock
]

and

favorable

the grounds that

ships, Ltd., primarily

packing.

is sharply

j MARKETS maintained in

the

plant; watched the fight.' Last
Thursday, too, ,800 employers o
the Canadian Tube & Steel Prod¬

•

products lines.

stocks

within

workers

aiid

tators

ahd in' uthe ^ toi^metallib; -

nbonds

works of the

than: the 4937 average-- which- wafc

been

Canadian Securities

how

Wacksmith

many;

nails the. horseshoe needs.

My im j
noorijp+e fear with regard to indus¬
trial disputes is thkt they will lose
for us the fulkproduction that is
absolutely ; essential at this
time—so absolutely essential, from
a price and profit standpoint, from
a
standpoint of supply of goods
badly needed, And most of all
from a: standpoint of continuous
and pfainful employment.If

increase
and

can
our

quickly and greatly
present- ; production %

keep it; rolling

interferences
boom

without

we;

without, any
havfe our

can

the bust. iTf. we

Will help drain surplus consumer jeopardize production in any way
purchasing power from the mar-. or^m'anrtCr^-.our5"promised pros-

•

Number 164

Ntimber 4512

ferity may be like a gravy train
that hit an epen.;switch.
^ "■
v;The Department of ~ Commerce

Commerce

would

see

didf

during their various five-year
industries put it 4into; prae*, plans^rahdlare willing .to assume

some

tice.

the

sacrifice

stride toward
future.

greater economic

the

first

instance

Floyd D, Cerf Offers
Segal Look Common

temporary lower may get a little more prosperity,
is charged 1 with,; iurthering' the
But no plan for industrial peace ttandard^of* living Iri
'order'1 to hut if Would be for a short time,
domestic and foreign commerce of will work; at this; time - or at - any. rapidly/accomplish this Ihdustri2d4
ahd in the end it might mean our
these United States. It is strictly tiihe if we do not /succeed id. pre^ ization;
^
4 ■••■
own ruin,
In -the second instance
ian advisory agency andservice ventingr Runaway prices. -^If/we- X.
^eylaye going to, industrialize? we have the basis lor sustained
'

•;

Proposed Stabilization Boards
In

role

our

advisory and

service agency we see the threat
t>f industrial conflict as a
real

to have labor peace we; must The choice before us is whether
have. price- tand/prOfit'{peace;"Mi- they do it with ;our:
cooperation^
we are to have price and ■profit and
are

increase
world

the prosperity of the

Whole, and

curtail¬
ment or elimination of the con¬
siderations that ultimately lead to

iwith'jiess-hardship on their
peace f6r labor, management and civilianpopulations
and 'with
the consumer we must have full, greater economic progress for all
of & us—or ^whether
uninterrupted production.
they do it
Let uSa resolve ; our differences through; theirounr resources and

and to distaster;

war

world must rest

danger.
It is for that reason that
in addressing a group of business* at the council table as free men other
countries, and with antagon¬
men
in Chicago recently I pro¬ and not on the
battlefields of hate? ism toward us. The decis'on restr
posed, for further discussion and blind greed, strife- and ultimate With .us. 1 It is for businessmen
thinking, a possible pathway to chaos." i:';*;::0& XX
] like yourselves to decide whether
Let. us remember that the foun¬ werhave the foresight, the .imag¬
peace in Industrial disputes.
It
Was a challenge to both; manage¬ dation for good industrial rela¬ ination,
upd the courage to under*
ment and labor, and has already tions lies in the.mutual interest take a
foreign trade and a foreign
nroused
some
in each other's problems and in lending policy consistent with the
interesting and

per share.

co¬

worthwhile reactions.
The

plan is

the

underlying principle of this
an industry-wide stabiliza¬

tion board headed by a

paid im¬

partial chairman, with equal rep¬
resentation by both management
and

labor.

hoards

These

would

stabilization

continuous

will

cooperate in
problems.

those

solving

aims

the

We
we

are

must act as a

purpose.

been. those

blocks.
avoid

for

that adequate funds
support of each board

the

should be furnished

contributions

through equal

from

management
and labor, and should be sufficient

be achieved without the bene¬

can

fit

shotgun

government

papa

shotgun.

whose

trade

chairman

make

them

the basis
two

for public subscription. The com$
mon stock is traded on the
New

York Curb Exchange.

in business could not

mis¬

country
ther.

could

see

advance

But those

with

how

our

fur¬

any

faith

know

that

the unique and' wonderful
feature of capitalism is
progress—
progress through increased indus¬

trialization, •
productivity,

through
through

increased

scientific
development and technical "know-

they how," and, through the reinvest¬
foreign loans ment of accumulated profits, tc

agreement,

■

and

both

number of new items in its ex-;;
pansion program and for possible

acquisitions. "■} Segal Lock owns
99%. of the common of SegalSafety Razor Corp. as well as the.
Norwalk Lock Go., founded irfc
1836 and believed to be the old-~
over

es| • hardware manufacturer

in the

country. The former is one of the
leading units' in the safety fazor
field and ranks sixth fa* * national

distribution. It contemplates in¬
through the production process. troducing a new-type of single-*
thinking is danger¬ Progress, above all, is the Ameri¬ edge razor blade sometime within
ous.
It is the kind of thinking can way of life, the way Of life about nine
months./
that breeds, international .hatreds that stands out as a
shining light
NorwallCLock Cd!is also plan-*and feeds wars.
It has been tried of hope in a confused world and ning a number of new
products^
too many times with disastrous bids free men every where eve?;
to among them a> new type- of ex¬
results, as history has so clearly strive onward and upward toward truded aluminum window frame
This

kind

management

and

labor

permit the impar¬
The
third stumbling
block
I
adequate staff
labeled:. "Economic
Isola¬
which can keep him supplied with have
current data covering the indus¬ tionism." I am referring especially
try and all its component parts. to the attitude taken, in,,some
With such data constantly avail¬ quarters to foreign trade and for¬
recorded.
able the impartial chairman would eign loans.
Y-;.4:
tial

Let

sense and

each

held.
The remaining 175,671 shares
rep*
resent the portion
being offered

have

there

blind

marriage with would have us use
holding
the as a political means of manipulat¬
ing both small and large countries.

Economic Isolationism

at all times to

cal

them.

good

for

to be

bodies, and would concern them¬
The most important asset of any
guided nationalism has narrowed
selves
only with management- country is men constantly at work their point of view on matters of
labor disputes arising in their in¬ cooperating with each other and
foreign trade and foreign loans.
dustries—disputes that cannot be making and exchanging goods and They would have the
Congress ana
settled
locally
or
individually services of real value.
the Administration attach an as¬
through collective bargaining and
For the sake of our country and sortment -of
hazardous political
negotiation.
the world as a whole, I hope this considerations on to
any recipro¬
<
I proposed

us use

stockholders
share

one

proceeds from the financing are
used! for retiring the out-;
There have been
many times standing preferred issues, for ex¬
debtors in the past when
people-with little pansion of the: company's plant
faith in capitalism and little faith
facilities, for - the introduction of

our

quarters

many

Let

stepping stones to a larger, fuller,
happier life for all of us.

nation, and

making it possible for
to pa.y us back.

....

long live unto itself.
are the stumbling

can

These, then,

financing, 51,4,411 shares
already been subscribed by-

present

creditor nation,

ing to those outside of it.
t
Business, after all, is just men
and women working to a common
.

no.pation

whole.

creditor

have

community can live unto itself!
Haven't we howj learned;
through
this the greatest of all
wars, that

Of the 690,082 shares included

in /the

•

progressive develop¬

ment of the world

No group can long keep its own
little circle safe if it gives noth-

operation as well as on political
cooperation.
•
'
4v
No man; can live unto
himself;
.

Hardware Co., Inc.; priced-at $4.50

A peaceful

economic

A nation-wide
group of invests
ment' bankers headed
by Floyd D.
Cerf Co.*. of
-Chicago, made a pub¬
lic offering July 31 of a new
issue
Of 690,082 shares of
$1 par com¬
mon
stock of the Segal Lock &

•

^gency-^not a regulatory one.

623

■

be able to examine
of

fully the facts
dispute and justly deter¬

any

also

proposed that the
*>f the impartial chairman should
be

used

making a continuous
study of the industry as a whole
and its many complex problems.
Such a continuing study is neces¬
sary if statistical data and hard
ifacts

not

are

their
board

The

use.

will

not

From

it.

perverted in

function
be

this

attempt to
^establish rules and regulations for
the conduct of the industry.
Its

wilVndt dnty foe

country^ but tc^all the;wbrW
well.

The

ward

populations

back¬

forcefully shock¬
ed into the" realization that .thby
needed what We so lorig have had.
areas were

They Cairne to. understand that the

on)y: wa# they; could held ithehi
heads up in this kind of a world;
the only way they , could at¬

and

tain

reasonable standard of liv¬

ing would be through increased
solely for the explicit
productivity. They are calling for
jpurpose of arbitrating disputes,
our
tools, our
machinery, our
v.; The collection of statistical data
products and our methods.
and facts
would
merely be a
This demand is in addition to
method of placing the impartial
the very real and extensive de¬
chairman in a position
work will be

to evaluate

pbint

whole

and

the

position

-the industry as a part of the total
economy..

I further stated that these stabil¬
ization
boards
should
not
be

hampered by delaying legal

cedures,

and

pro¬

each 4 party

that

.•should be free from those techni¬
calities which so frequently im¬

pede the submission of evidence

In ordinary courts

of law.

this should not be

interpreted

;the

basis

ments.
ment

for

Now
as

collusive

arrange¬
I believe that the Depart¬

Justice

should

con¬

stantly consulted when the boards
begin to work on ther legal pro¬
cedures.-

•;

enough
to put the annual payments with¬
in? e^ealisttb range of a country's
ability to pay.
'
; It is my belief that the prosperity
we -would gain through such for¬
eign
loan v arrangements — gain
through increased production in
oiur

highly productive high-

own

wage

industries—would

than, compensate

losses that

Though

-for

that the decision of the
chairman be binding on both
par¬
was

ties, ■ and that each party post
bond

that

would

forfeited

:5t refused to accept his decision^
bond would be returned if

'.This

either

company

the

Now, my reason for
mentioning
the plan again ; at this time is that
the need for

some

public protec¬

tion

against work stoppages is
Imperative. We must prepare our¬
selves

now

mand

required for the

reconstruc¬

The only way we can expect

war*

to gain

expanded foreign markets
is to help those countries build up

their

for industrial peace or

this? is not

must

also

promote

freer

one

that is needed

the

one

that

the

tradi¬

terms;- of {the

most

mean

duce.

crushing; him,

open,

our

hearts

take the

other fellow along with us as we

largest
manufacturers
of
builders hardware and first in the
sale of jimmy-proof locks and key:

duplicating machines.
The: companyis: also making
preparations for an anticipated

]

The difficulties and, Struggles of large

16e ah exciting an#* satisfying - fu- has a plant capacity at its Brook¬
so., :'
lyn and Norwalk, Conn, units ag-*

jture if we but will it

gregaiing

Lnckhursi & Go. Offers

than 25% greater

than before the

war.

This

announcement

Ccriley Frosted Slock
A

new

common

Dec. 31,1945, jafter all charges and
88,900 shares of provision for! taxes,! amounted to
stock"; of. the: Cortley $265,469 as against $192,234 ! for

issue of

| Frosted Foods* Ine.,

was offered 1944. Sales amounted

July 31 by Luckhurst & Co., Inc.
and Reich & Co.

The stock is of¬

fered at $3.25 per share. Proceeds
of this issue will be added to pres¬
ent

working capital to enable the

the expanding opportunities in
frozen food field.

the

Current

in 1945.
1945

amounted

which

assets

Dec.

31r

$2,019,751,

$627,651 Watf cash. Current

liabilities

/aihounted to $643,570^
has ho funded debtr

The company
bank

appears

for purposes of record only. These securities

through the undersigned, and have

not

been and

are not

were

being offered

other loans.

placed privately
the public.

Artificial mechanisms de¬

$30,000,000

The Budd

is no question but that
satisfy greatly increased
foreign trade demands.
We have
the productive capacity, we have
the technology, we have the raw
materials, we have the brains, and
wehaye the Energy with which; to
do

can

the

jofe.

' '

15'Year 3%%

Company

Sinking Fund Debentures
Due

:■■■- •.

;•

July 1, 1961

Must Extend Sound Credits-

However, in order to do the job
we must

extend sound credits that
would make it feasible for
foreign

countries

trade, with

progressive fashion rather; than
solely through the oppression of
their.- own civilian populations.
The urgency of industrialization is
so

population —-

the

Russians

Carl M.
•'•

■

...-'i.

Loeb, Rhoades & Co.

*•.

'■■

•

■

...

■

»•

<■'

'.>

••

•.

•«_;«•

-;•?'X-*

%:*■■

'f.-*"-

August I, J 946

••■

Jr. '

•;

Blyth & Co., Inc.

■■■! %
«•

.v.-,'-v-.""1 :.X'

j/;

■

$9,749,519

wake.
we

Net earnings for the year ended

fellows and ■corporation to take advantage of

or we can

five

volume of .foreign trader
today are but; the pricei'w® must
During the war it was heavily en-*pay for the accomplishments and
ivictories of tomorrow.
Ours can gaged/ in war production and nowr>

prosperity * of this

^^out;;^the- otherj

eyes

signed primarily to sustain one¬
way traffic in foreign trade in¬
variably fail and bring extremely
troublesome
problems
in
their

ian

We in the Department

nation.

greater economic future

determined and our minds alert*

today, and it's

will

pur

Its; products are now
sold through more than 30,000 re-?
tail Quiets, Nojrwalk is one of the

ex¬

the plan.

industries

with

tional' form of lending policy, it's

change of goods between nations,
for unless we buy what they pro¬
duce - they cannot continue ' in¬
definitely to buy what we pro¬

have already expressed interest in

Several

road to

and; sash.

own

strongly realized by many, for¬
eign countries that they are ready
to tighten the belts of their civil¬

•.suffer. later.

great .Nation.

production and increase
their incomes so that they will be
able to purchase- our goods-.
We

union

rsought legal redress through the
courts, and gained a reversal of
^he impartiaL chairman's decision.
•

loan

any

might develop;- -

There

>;ffVOne additional proposal that
made

the principles that

are

made

Businessmen have always
company case or issue not tion of
war-devastated areas. The proved themselves adaptable to
-only on the basis of the immedi¬
fulfillmentofboth-demandscould changing situations.
They must
ate contentions, but what the ef¬
friean an export trade, in
{dollar prove themselves adaptable once
fect -Of the dispute and its settleagaihr rEdr We have a choice: We
jment would mean to the industry terms, three to five times as great
can become prosperous by squeezas that which we had before the
as
«each

These

have

purely business stand-

sensible arrangement with These are the principles that will
keep us a great Nation.
Let us
an
unheard of expansion of our cpuhtries wanting and needing our
never lost sight of them.
assistance? Would
fee
long-term
foreign trade-^an expansion that
Let us work together along the
staff
loans at interest rates low

mine their worth.

■K I

The forces unleashed by the war
have given us an opportunity for

Tv'> vtji'r
sMft®/ S'^im,riiMti&: ^mmi^wmmw
•

;i,

:■

*>»-■- »«■*■.'.,•«• f.,

•

ANOTHER BANK ELIGIBLE NEARS

"Our

Reporter

the middle of September, the securities that can; be purchased

by the deposit.banks will be substaritiallyaugmented (unless changed
by government decree which is not looked for) and these institutions

Governments"

will, be, able to acquire another bond within the 10-year range. ; y,
The commercial banks cannot get the necessary income from certif¬

By JOHN T. CHIPPENDALE, JR.

icates and notes, .which are being kept at low rates because the
y Accordingly
v.•
The government bond market is still unsettled and nervous,* par¬ Treasury does not' want an increase fa debt service,
it is expected that the member banks will be interested in accumu¬
ticularly the restricted issues, not because of the pressure of liquida¬
tion, but because of the uncertainties that always accompany the talk lating the 2V4S of 1956/59, when this bond becomes eligible on Sept.
The latest available figures show that the commercial banks
of a hew issue.
There are those who believe that the longest re¬ 15.
.

stricted bond will sell at 101%, while

others

the level of about 102% is the lowest to be
conditions..

are of the opinion that own only about $255,000,000 of this obligation, and the largest amount
expected under present of these holdings is by the country banks. * . . The institutions in the

Why should reports of a hew long-term bond have so

much effect on the* government securities market? . . . It is ^evident
that what one fears most is something that is not thoroughly known

Central

Reserve

Cities of New York and Chicago have

This

market, be¬

to apply to the government securities

seems

issue is purely in the talking
far as it will go for

Thus far the so-called new

...

stages, and some believe this may be as
time to come,

some

...

UNCERTAINTY RULES

and uncertainty do not make possible

It is evident that confusion

long-term forecasts. . . . Accordingly, if the market can be upset by
rumors and hearsay, it is not likely that it will have a definite trend
in either direction.
It should be remembered that the monetary
...

authorities

much concerned with the government securities

are very

markets, and in their efforts to manage it within
element of doubt is a very important factor. ...

are

not in favor of new issues to non-bank investors unless
over member bank bond purchases are given to
Yet at the present time 'there are reports that the

powers

them.

Treasury near the end of 1946 may be
mercial banks.

which would reduce

deposits,

the inflation potential.

security holdings and deposits of the- commercial banks must4>e cut
down, yet Government Trust Funds are sellers of securities, largely
bank eligibles, which does not decrease bank deposits or bank hold¬
ings of government securities. . . . The reason for the sale of govern¬
ment obligations by the trust funds seems to be largely for market
control.

strong market.

3s and 3%s on June

indicated that the
near-term

With

care

institutions

eligible bonds.

longest

There is

have'sufficlent short-term obligations to take

of such needs....

Aside from the 2%

are

being made. *.

one-half the

there remain

now

only the 2%s due

On the other hand, in about

can

month and

2%s due 1956/59, will be eligible for purchase by the

commercial banks.

offering July 29 of

1,000,000

of $1

stock of Sunray Qil

common

Corp. The debentures

priced
at 101% and accrued
interest, to
yield 2.80% to maturity, and the
common stock at $10% per share.
Net

were

proceeds from the sale, of

the debentures and

common stock,
together with $10,000,000 to be re¬
ceived Yrdfa d' 10-year 1%% *se-,

rial bank loan, will be applied by

agreement of merger, pro¬
merger of Trans-

about $2,344,000,000.

deposit banks

considering

are

switch from the

1956/59, sometime after the middle of next month.

ineligible bonds, there

are

many

and divergent ideas as to

reference

rate, maturity and type of security.
the

new

...

new

long-term issue

It is believed in

the

coupon

quarters

some

bonds may be in registered form and non-negotiable

except for presentation to the Treasury for redemption.
hold

opinion that the much talked of issue

Some

extend for

may

longer period to call and maturity dates than the outstanding issues.
.

also reported that the proposed new issue may be

It is

new

offered

funds in Ihe hands of savings banks and

companies and not for the reinvestment of monies that have

been obtained from the sale of bank

eligible issues.

...

The old guessing game is on again in government bond circles,

actually
.

happened

when

the

offering

finally

came

maturity than the outstanding

issues.

...

issue of long-term

largely

7/10ths

2%s

and 2%s, the Treasury

It should also be remembered that if there is
restricted bonds later in the

stock

each

such

se¬

pre¬

capital

Transwestern;

to be

redeemed

retirement

255,006

with

purchased for

corporation

the

portion of the proceeds ob¬

tained from the present

effect

corporation will

the

loan;

270,000

cumulative

serial

of '

preferred

and

deben¬

new

$10,000,000

financing

outstanding capi¬

$20,000,000 funded debt

represented

ries

financing:

this

bank

4%%»

stock,

se¬

4,689,188

stock, $1 par value.,

common

Sunray Oil Corp. is engaged in

interest

ing
*

stock,

shares of such preferred stock are

the business of
.

of the A%%

for

it will depend

year

business conditions and the trend of commodity prices.

SELLING LONG-TERMS

ferred

tures;

offered obligations that were only six months longer than the Seventh

converted

preferred

talization of the

Despite opinions that the Victory Loan issues would be of much

War Loan

cumulative

will

ries A, of Sunray on the basis of

consist of

525,000

and the merger,

issue.... This is not dissimilar to what has happened in the past,
and most of the predictions at that time were far away from
what

into

Giving

without the slightest official utterance that there may be a new

along.

and

Transwestern
discussed

that

Sunray, was
adopted by the
stockholders of both companies at
meetings held on July 19 of this
year.
Upon
the
agreement
of
merger
becoming
effective
on
Aug. 2, 1946, the outstanding 750,000
shares of capital
stock of
approved

prospective

exploring, acquir¬

in
and

and

developing
oil

proven

and

Although the sizable liquidation of dealers' loans is attributed to

1956/58, and ihe 2%s due Sept. 15, 1967/72, in which purchases
be and

own

much

: ~

group

par

and

the

longer

question of being able to meet deposit withdrawals because

these

not suitable

It is indicated that the member banks* must still retain earn¬

public

tures

3%%

1%% notes into the longer-term obligations particularly

the 2V4S due

The last uptrend in the longer

ings and in order to do so they are being attracted to the
and long-term bank

made

$20,000,000 20-year 2%% deben¬

due

demption of these notes, and in order to protect their income it is

purchases by the large banks, and

of the trust fund obligations now for sale are

intermediate

Ah investment banking j girouti
headed by Eastman, Dillon & Co».

the company to the redemption of
its outstanding $12,350,000

Again these institutions will be the largest losers through the re¬

Now comes the question of what these
15.

Sunray Oil Securities

western Oil Co. into

available from the trust funds, which will be disposed of

for the smaller institutions because of the large premium involved

•

EasJman Dillon Offers

viding for the

prevent another upward move in bank eligible issues, offer¬

bank eligibles was due largely to
many

JJ-vrl

are

deposit institutions will do, since they have lost sizable amounts

of the

MfaWi

.'■■•'•I.../.

outstanding in the amount of $3,261,000,000 and the latest available

insurance

•

,'t1.

available to these
extension of maturities,

only in exchange for

same

' i,

the 214s of 1956/59, when they

maturities by the commercial banks fol¬
lowing the retirement of the 3%s on March 15 is well known. ... In

only in

■

The trend toward longer

are

/ '

If I.

15-year
sinking fund debentures;
1959, at 105%; to the payment
institutions.... While there would be an
of a;;$l,000,000
promissory note
it would not be as far out as if they were taking on the longest
due September, 1946 and to the
bank eligible issue. ...
;
;
redemption or purchase for retire¬
ment of 255,000 shares of ±V\%
POTENTIAL SWITCH
cumulative preferred stock, series
The next higher coupon obligation that can be retired by the
A, at $100 per share.
Treasury will be the 1%% notes due Dec, 15.
This security is
The

ings

1967/72, it is logical to assume that they will be interested in

picking

NOW WHAT?

order to

JUST GUESSING

It has been the consistent statement of the money managers that

large buyers of the 214s due 1956/58, and the 214s due Sept. 15,

This would decrease member banks' holdings of government se¬
curities ^nd

-.'.v. • J.U-;- /

A.;-

Since these Central Reserve City banks have been among ihe

in the market for new

•

...

which would be used to retire issues held by the com¬

money,

^x^nsibp pf posit

'.ijjj

Thursday, August 1; 1946

figures indicate that the commercial banks

certain limits, the

Recent statements of the Federal Reserve Board indicate that

they

f 001$ ;h?r

2%'s of 1956/59, among the large city banks.

there is nothing tangible in the situation that would indicate
whether there will be another issue of restricted bonds or not.

came

such small

amounts«of the 214s due 1956/59, that ■ they are not, worth mention*

fag#*'^;Thisleaves" Plenty

>fe

Siii

THE-COMMERCIAL,^FINANCIAL CHRONICLE

i/uXw-VHur.V^-

the

gas

disposal of certificates, it is indicated that there has been

and sale of crude oil and natural

stantial reduction in

holdings of long-term issues.

sub¬

Despite the fact

that the market at times has been on the professional side,

it is re¬

lands and in the production

gas

ported that dealers were able to lighten long-term positions at good

New

prices, through sales to institutions.

the

states

California,
Texas.

...

Arkansas;

Louisiana*

Kansas,

Mexico,

Oklahoma

and
'

:—

Oongressman WoleoH HiiI$Ipecdi|irol Bbard
NEW ISSUE

(Continued from first page)
courage

impede

99,500 Shares

campaign.

much' broader

Manufacturing Co., Inc.
>,

eral; People. are simply, rebelling. /For -example# perfectly
respectable dairy farmers are
saying that they simply will not
go back under controls. People
are tired of having their whole
*

"Ours is

fundamentally a Re¬
publican < form of government.
During the war. we were will¬
ing td endure regimentation, to
win the victory. But now I am
Z being asked: 'Did we fight the
war only to lose our liberties?' I
am impressed with the increas:ing appearance of the words
'freedom' and 'liberty' in! the
mail from my constituents."
Apparently, the members of the
>

LEWIS
80 BROAD

STOEHR, Inc.

•

Queried

by the "Chronicle," Mr. Bell dis¬
closed a similar intention. It/ is

get

caliber

the

wanted.

;

men

•'**

fp#

While it' may appear off hand;
that /the work-of;-the ^control

Board

will

be•, more

than

three

do# even working full
time, Mr. Wolcott points out the
possibility of the-Decontrol Board
functionfagthrough commissioners,
men

can

do district courts and the Court

of.Claims.

•

•>—

Redden & Company
M.
:

Adds

Woltjen to Staff

ST.LOUIS,MO—MissMathilde

Woltjen has joined the organiza¬
tion of Redden and Company, in¬
vestment securities dealers in the

'■

STREET, NEY? YORK 4, N. Y.

this.

the

is involved is government control and regimentation in gen¬

lives controlled.

Price: $3.00
per

matter is believed faat only with this un¬
simple derstanding was the President able

The
than

expressing

press as

the intention to

question of price control. What to
<

Common Stock

will ported in the

recovery.

"This is going to be a prominent issue in the coming elec¬
tion

Li Falco

production, and

Decontrol Board wiR carry on
their regular work as well as the

Chairman Thompson is re¬

Arcade building. Miss Woltjen is
Secretary of the Company, which
has been in the investment busi¬
ness since 1935. She formerly was
an Assistant Cashier with the Mu¬
tual Bank and Trust Co.

Number 164

Number 4512

THE COMMERCIAL' & FINANCIAL" CHRONICLE
■y-'-vft.'
ct *
"s
'Y A jf ***'*.1 & '"

'*■ *

■

V6D

r-ri

tistical' data;'

"Bias;- prejudice, or the data from which - they rare
political expediency should have made. But the increase of knowl¬
no part in it. Let us use statistics,
edge concerning the: causes and
fundamentally sound and properly
re- be gauged. But a
of compiled, but' let us also always consequences of price variations
depends much more upon inten¬
"averages" covering an endless
variety of goods, objects and serv- keep in mind their limitations and sive study^of^iiltimate data than
r
upon .the manipulation of aver¬
Ices,, which are continuously un- imperfections.
In this connection," it should be
aggregatesr Upon-the ex¬
dergolng changes -in character, noted that one* of theforemost ages or of
tension
low1 quality; - and- use," both in their'
knowledge in this field,
im-' nroduttioh and •consumption; can-: advocates of1 the use-of statistics depend • in turn large issues of

inb^T'VS

Miasma

ceUrng limits;

;

<2> the «se <>'an average rather
S
bvSS™ Retailers fully felt ;
heen haVe; for thaft actual prices In the index;
py .consumers.-

CreaS'^

-X3j tiie: disappearance.; of

-i™-morchandise

and

the

lasted.v

these
their

•

V'; "' "

statements, ■ with' all

official -and*

plications, pf
be

-7'

•

potential'

(4) higher living costs "arising
im- ir6m migrations.* "
." *'

propaganda; ^shouW
In'

^^S^ubhS
base. It is

are: used as a

^In the first place, the data are
highly questionable because of the
fictional character of the

prices. The

Rowley

and

Seere-

week

during'

preeaution

of the finished

back

necessarily meah that there have-

diarv -nroduet**

many

apparel

well

items,

the

black

market price was the rule rather
than the exception.
So the re-

puted price. rise of "25%- -starts
from-a-fictional baise." As' a false

•"

J?a wP!^

thnfri

published price-quotation^

A' go'pd example of

a fictional
stabilized price, is, that placed oni

false conclusion. :

bessemer

Another defect in using the
data;

indicating

•as

trend, is

highly inflationary,

the failure to take into
consideration the removal of sub-

sidy

payments

•••'•

...

*.■"

steel,, standard,

number of

items.

rails

.■••;••
.•;.

years

fixed at.-$.27

The price;
ton,' but- it;

ago.
per-

Vv-;.

is doubtful whether any steel rails I
during the last thirty years were;

;

The

payments.

public

in the form of

f that paid by individual taxpayers,
•The purpose of the
subsidy is to
relieve an individual
consumer,
suffer from

may

of certain

services,
thereof

bear

high costs

commodities

necessary

and
cost

and

transfer

the

others- who

can

through higher taxes. If
paid taxes of like
amount, subsidies would be meaningless. Subsidies mean nothing
all individuals

> more

than taxing the richer to
«benefit the poorer in our society,
11

The
use

Commerce

Department's

of the Bureau of Labor Statis-

tics computation of price
changes

basis for its continuation.

any

Several
made

the

official

compilation of price changes has
frequently questioned,
Hardly two years ago, the Bureau
of Labor Statistics was under the
been

attacks

representa-

spokesmen of organized

labor. In their efforts to break the
"Little Steel Formula," officials of

both AFL and the CIO denounced
the published figures as inaccurate
and unfair to the consumer. It
;v

brought
troversy,

.about
which

Roosevelt

heatedr conled
President

appoint a special
committee to investigate and re;

pdrt

upon the validity, and accuracy of the Bureau's compilations. The then Acting Commissioner

Labor
Statistics, Mr.
Hinrichs,
(who recently
resigned under pressure from the

A.
:

Administration),

vigorously

de-

fended
•

;

the

but

frank enough to acknowl-

was

work

his

j "The

had

Chronicle",

control, (see
April 13, 1944,

j p.; 1502),
IThe

difficulties

accurate

follows;;:

■

Jv'-V:• v

; <; »

•

;

.;:-($1.6aPar:-Value)^;:;'| iCy

;

items

tain

•

,...

are

the

Bureau

"*■

/•

•.

the

case

noted

number

articles,
quotations

unchanging

extending
over
several
particularly in such items
lime

•

4"-'

•

••

and

Co., &
Inc.

Mason Brothers

Incorporated

Burr &

salt,
heavy

other .standard

Ames, Emerich

Sills, Minton & Company

years,

chemicals, together with certain
building materials. Yet, it became
clear on inquiry from several pro-

July 26, 1946

Company, Inc.
'4'^' ^4-4 4.

ducers of these items, that prices
did fluctuate in the period under

study and individual transactions
frequently varied from those "officially quoted" in the price lists,

This advertisement is neither

an offer to sell, nor a solicitation of offers to buy, any of
The offering is made only by the Prospectus,

III

Assuming

that

character
without

difficulties
be

cannot

„

NEW

ISSUE

sys-

690,082 Shares*

tem

of price reporting on each
transaction, they must be recognized as fundamental problems in
every statistical analysis of price
fluctuations as well as changes in
wage rates. They are equally present in attempts at measurement
of
non-physical and heterogeneous phenomena, in which, in addition to the qualitative and other
factors, not measurable in quantity units, the character, quality,
and

form

almost

all

kinds

commodities and services

Segal Lock & Hardware Company, Inc.
(A New York Corporation)

Common Stock
(Par Value $1.00 Per Share)

Price $4.50 Per

are

also- in

state of flux. In the tabulation

"Subscription Warrants for these shares were initially issued by Segal Lock & Hardware
Company, Inc., to the holders of its Preferred and Common Stocks as set forth in the
Prospectus. 514,411 shares of Common Stock were subscribed through the exercise of
Such Subscription Warrants. •'
*/•
f
i

phenomena

relating to a time
series, such as
price changes,
there are, therefore, many factors
to be considered

are con-

stantly undergoing changes. Moreover,
use
and consumption
of
goods and services

tive

values

constantly

This

only to the 175,671 shares of Common Stock as were not
through the exercise of Subscription Warrants.

announcement relates

subscribed for

outside the bare

tation
a

can

common

these

changing.

factors

reduce their

these securities.

over¬

compulsory

are

Copies of the Prospectus

may

be obtained from the undersigned

compu-

effects

denominator. All pro-

FLOYD D, CERF COMPANY

gressive modern nations strive for

•

registered dealers in securities in this State.

Dempsey & Company

Labor's Wholesale Price Index. In
he

ago,
the writer
investigation
of
the

price
data;
as
sum- ity
of the
monetary unit, -the
Mr. Hinrichs were as adequacy of wages, the justice of
1.

■».

years
an

marized by

Common Stock

•

a satisfactory guide to changes! in
compiling price levels, by which the stabilv

;

Bureau, figures themselves, and the rela

edge the defects and shortcomings
arising
from ^ conditions
over

S1 which

month to month quotations of cer-

this

vehement

Copies of the Prospectus may he obtained from such of the undersigned only as

account of this technical situation.

come

tives and

'
.

It does not appear that the Bur-i
eau of Labor Statistics fully takes

^ The reliability

'■

Price $7.00 Per

i is not by any means a novel in¬
stance of distortion in the
appli¬
cation of price indexes.

by the Prospectus,

producers and

taxes., but, of course the amount
paid in the form of taxes by each
consumer may not be the same as

who

offering of the

any

several

pays the subsidies

•

The

such

as, an

offer to buy

;

out

Great Lakes Plating Co.

ever contracted at this price, .or,
important that many tons .Of standard bes-;
payments, necessarily semer rails were ever made.or
reduce prices below the actual purchased during the period. But
level that they would reach with- the quotation
persisted, without

•processors

he construed

115,000 Shares

was

caution of Dr. Mitchell.

hpW th*

period

taxes, and,the flow of credits' can

July 3t» t946i!-vii

Incorporated

two-

weeks, have not Heeded the wise

products to

solicitation of

or as a

Department of

not

premise, it necessarily leads to

price changes; covering 28

items,

the

and

flat

+H*ci Si^poh*

u»f

t'°PS-

•

Certainly,- the Bureau 'of LabOr

data of

they summarize. Most consumers
of statistics lack-the time to go

following securities for sale

n?ateau^or

P51

num¬

Commerce; which interpreted the

such securities. The offering is made only

meats;

index

Statistics

price variations, they are
competent rep¬
resentation of all the facts which

This advertisement is not, and is under no circumstances to

and

in
even year alter year, in the'listed
tne lisiea

and

<;'v

after

Ln?th ift^r mn^!th
1?^

foodstuffs, such

in making an

®!Jron ^ge-^and "similar
/r°n Age ana similar.

.™e

.would not deny that
they existed,
and, that in several important
items of

are

far from being: a

ta handling and interpreting sta-

to the need o£

AgricShurl AnSrJon

tary 5 of

;

published.

numbers

index-

use

ber."

tract of

prJquo^

to follow

"While

for

most4 convenient concentrated ex*

and proper analysis and judgment;

stating;

1915, by
'1

iueslwork
bUnd

the -Bureau of Labor 'Statistics: in

would-be without the crudest

instruments : to * direct, economic
and political, actions and al\scienw

Drices'

source.

tions. Black market
prices are not
even

use" of index numbers,"Dr.
iri full the actual ^prices of as :
Wesley C. Mitchell concludes his many/ -commodities, as possible,
monograph; "The Making and Use even though some; of the quota¬
of Indek Numbers," published by tions may not now be available,-

;

and intuition* But this should not

opera-

But

^ ^ "lSI^Sices
listed prices

so-called basic items were
solely
distorted by black market

recorded

prices!

thal PUbhsimdOT

oiF "postedSfcK&ta Snehasonly

most cases, not actual

officially

common

actual

ported

of the

iSuS^nri^at!
^nge.S5S

? general >riee level
;•

aw»Mij.

?Yet,'"it'1nnist be admitted, that

salt, before being accepted' a* an
actual; and-factual indication" of

•

judgment.

^thouf somacsystefli of statistical
Price! measurement,aloug'

M&-

*V*

economic investigations, .who public.;welfare* • Hence • it is imexponent portant' to ^collect and to, publish

also has been a*learned"

enumeration1 of defects is

taken; with-a ~ grain of salt

fact, thejr rheedv^ahy grains of

in
tunes

■

compilation

P>ge 60-^
( . U)'The fact that merchants
ISS- »he®e'. 11 "B"* .*• fmn from, reporting prices above
of

^420 South La Salle Stroet, Chicago

'.ftttj*'j':

vyy frtt}
,'^.'V; $; '$£ ^ 'ir''^V:

'%;*• Vi
*') '5.'^*^'"

"t}'!

tW.V'Vt

vf* u*» V »V1M* * «v *<?»$!■?

'#/

*>y.\ i^<i. j-ntt- ^rjjvi^.w^y a .«(,

*■+■•*

Pwfy'f* **?

Thursday, August 1> 1940
ing that period net assets of the
fund

increased by 41% to $117,038,152 and the number of share¬
holders by 29% to over 36,000.

Keystone Custodian Fund,

CHICAGO, ILL. — Newton : P.
Frye, President of Central Re-»
public Company, 209 South La
Salle Street, announced the pro¬
motion of three key members of
his organization,
two of whom
have been associated with
the

Series S-2

During the
May 31, 1946

The Long View

Keystone

six

months

total

"S-2"

net

ended
of

assets

from

rose

$29,reflecting

969,603 to $33,958,968,
for. the most part a rise in the net
asset value per share from
$17.45

firm and its predecessors

for the;

Y'
At the end of the -six-- past-20 years.
Curtis B. Woolfolk is appointed
month period, the market value of
securities owned exceeded their Manager of the Corporation Buy-r
to $19.36.

cost

ing

by $9,575,378.

Woolfolk' is

Department.

graduate of the Uiversity of Chi*
cago, and has been with Central
in;
Republic Company and its prede¬

Total assets of the ten Keystone
Funds as of May .31, 1946 were
of $186,000,000.

excess

% }

since 1926.

cessors

Edde K.

Hays, who is appointed
Sales Manager, has been in the
investment banking business since
1926. For the past 9 years Hays
has been Manager of the Trading
Department and, for 11 years pre¬
vious to that, was a member of
the Sales organization.

Allan N. Young & Co. Inc. of¬
fered to the public July 29 30,000
shares of 45-cent cumulative divi¬
dend

preferred

stock

and

30,000

Robert Boedeker, who becomes
Manager of the Trading Depart¬
Apparel Shops, Inc. The shares
ment,
joined
Central Republic
are being offered in units of one
Company in October 1945. He has
share of preferred stock and one
spent 20 years with the Trading
share of common
stock
at
$10 departments of several large in¬

shares of

stock of Janet's

common

unit.

per

vestment firms.

Proceeds

from

the

financing,
funds, will
be used by Janet's Apparel Shops,
Inc., to purchase all of the out¬
standing stock of Janet's Inc.,
which through subsidiaries
op¬
together

with

other

erates nine retail women's readyto-wear stores and one apparel

department

Southern

Cali¬

William

elected

T. Spence
Trustee of

Savings

has

been
Dime

the

Williamsburgh,
fornia.
Brooklyn, according to an v an¬
The preferred stock, beginning
nouncement made by C. C. Molin 1949, Will have the benefit of
lenhauer, President. Mr. Spence
a cumulative sinking fund equal
is associated with the investment
to
10% of the preceding fiscal
banking firm of Spencer Trask &
year's
net
earnings
remaining Co.
i
after taxes and preferred dividend
requirements.
The sinking fund
Bank

|P±^

rmZ//

will

•

Jr YOUR INVESTMENT
fcpistb.ibutors Group,

63 Wall Street 7#*"

DEALER OR

not
s'<

applied

exceeding $10

purchase

per

accrued dividends.

Incorporated

New Ydrk 5, N. Y.

DIVIDEND NOTICE

the

share plus

corporation, the preferred

part

at $10

ac¬

30,000

225,000

preferred shares

common

outstanding.
funded

pany,

The

and

company

has

debt.

INC.:

have

Stock of the Com¬
payable August 26, 1946, to stock¬

holders

record

the

Stock

.08

Electrical

;

.07

.05
.10

Series

.09

Equip. Series

Feed Series

,05

,—_

Series

Supply Series
Equip. Series

Business
Chemical

Government Bonds Series

.12

.11

Stock

Series

Machinery Series

.08

Merchandising Series
Metal
Oil

STOCK

REPUBLIC

American Business
Shares

SharesInc.
Priced at Market

Public

.06

.11

Utility

Series

.03

Series

.08

Railroad Equip. Series
Steel Series

.07

Series

Diversified

.10

Investment

Fund

.20*.

Diversified Speculative Shs.______

Prospectus

Prospectus upoti request from
your investment dealer. 6f

.04

Tobacco

FUND Inc.

.15 "

Series

Railroad

INVESTORS

•;

.08
.12

Insurance

LOW-PRICED

.14:

Series

Aviation.

bus¬

$.07

Dist. Series

Automobile

1946.

Agricultural Series

Bank

been

the Special

Building

will

distributions

following

Alcohol

Upon completion of the financ¬
ing,

The

declared

iness August 5,

plus

crued dividends.

of the

NEW YORK STOCKS,

At the option

stock will be redeemable in whole
or

One

redemption of preferred stock at

A PROSPECTUS ON
REQUEST FROM

.04

Founded 1932
upon

request

"Includes $.05 from Securities profits.

HUGH W. LONG and COMPANY

JATI0NAL SECURITIES &

Incorpor«tei/.^:*4«*C^t
Distributors
INCORPORATED

120 BROADWAY

New York 5. N. Y.

National Distributors

IESEARCH CORPORATION

New York

Chicago

—

48 Wall

Street

Los Angela*

IS William St., New York 5

New York 5,

■

Investors- j

SftECTIVE f MHO INC.

INVESTORS SELECTIVE

FUND, INC.
Prospectus

Prospectus
from

your

map

be obtained

local investment dealer or

Prospectus
your

of Boston

THE

may

PARKER

R. E,

Street, Bos ton 9, Mass,

CORPORATION

ONE COURT STREET. BOSTON 8, MASS.

Macgregor, President

Minneapolis, Minnesota
REPRESENTATIVES IN
Ah

£0 Congress

request from Principal Underwriter

INVESTORS SYNDICATE

be "obtained from

local investment dealer,

■>(£'-

THE

PRINCIPAL

CITIES

OF THE UNITED

Chicago' '

- -

Los Angeles

ey stone

N. Y#

STATES

Number 164

Number 4512

THE COMMERCIAL & FINANCIAL CHRONICLE
the

Price Uncertainties Hamper Business Planning
(Cbntlnued
from page 6Q8)
-Construction
somewhat higher than

t costs

are

months.' They
will
be
they were in 1920 and the. trend taken into i account by business¬
./ is still upward, // •/;0. • \'m' men who are planning for condi¬
*... Food prices have also risen close tions a
yea^ or more from now.
%to the. peak., The Dun & Brad- Then
competition/airiong - sellers
; street
index
of
the
wholesale may be
extremely keen as eaer
prices of thirty-one food commod¬ producer tries to sell the large
ities rose during the first
part of output pf his; factories. PrCpara?
/Tilly to $5.2Q or .27%: above the tions are now being mUde by aleri
; corresponding- period a year
ago; businessmen v tp; ;huild
up
their
;
.The peak figure for this index ai- sales " forces,
strengthen-their
1 ter World War I was $5.30 which marketing
programs, :• advertising;
;:wa? reached in July,, 1919.. A sim^ and sales promotion efforts in or¬
; ;ilar index bt thirty basic commodw der >to be: ready ifo^; the; jchange
,! "ities, many , of them other items from a sellers' market to a
buy¬
i. I than .foods, .show; about the
same
ers' prie. . Sales training programs
Itrend.
Aiter the.'.first.,upward are
being remodelled and ini/
f jspurt,
prices* pf: several import proved tOr Sell, the«largest quanti^
y tant commodities declined.
ties of goods. '00^
<
/' ;• '■ ;'V:
z
''
"■/:

much greater^ and the figures do
not show some of the most recent

increases that have been granted.
Thesd

figures'are, important be¬
thdy indicate the change ir
,

cause

-"'V

*fFtttjire'Trend

Uncertain •/;

I future .has been much

■

more puz-?

'SMb£;:triah"feal&
/
'

?JPant factors affecting prices

may
not be cleared up for some
time.

0 price controls by the Federal
'

gov-

'ernrtient would be
established had
hot been : decided.

Businessmen

Before the current upward
trend; is' reversed, howeyer^: the

Tnatorials .which

The

they

purchase

realized that even though
ft *someform' or price- control,' for
their products should be
restored,
they could .not ascertain what

standards

for'

establishing prices

0 would be specified in the

new

law

* nor
'

what might be decided by the
law.
Until
more is known about the
policies

0 administrator of the
•*

0' which will be carried

out in

con-

hection with these artificial con"trols, much business planning for

; •

0 future

production

must

pcsr-.

poned.

Many economic forces are push¬
ing prices .higher and they are
very strong/ Supplies of a large
«;
number- of products are still be-1
low ^demand, because production
in major industries
lagged during
J the first half of the year. Even ir
those lines where production haf
been large, the demand has beer

;
»

«ven

greater

as consumers wante-

goods and they had enough
purchasing power to buy all thai
lias-been available.& Large and

0 fcan be produced

the supply

and
'

|'0' Consumer
"much

rates;

A large ntimber of thesf

increases

labor

costs

could

met only

large

by higher prices because
though,"" profits had <" beer
they were not enough tc

cover

the

even

amounts--of

expenses.

additional

•

Highpr wage rates can be met
only by higher productivity or
larger volume. Profits per unit of
sale in most industries is too small
to provide for more than mod¬
erate increases in
wage rates, ever,
if all were taken. Not all profit*
be

paid out in costs for any
extended period because business

cannot
are;

operate unless ; pxpenaes
belpw receipts;< Tfee ^drastic

upward adjustments this year ac

companied by reduced volume due
to work stoppages have made
nee?
essary
many
price»- increases
These increases in turn -are f
add?
ing to. the cost of living* and ;thus
exerting pressure' for - additional
raises in wage-rates. ) •
•
^

have

to-do with future price
trends and these attitudes cann&<
be predicted with

'of accuracy.

may come

v.,;1920

suddendly
if

and

any high degree
A shift in attitudes

does

it did

this

year

'§■ | Would be followed by
/ price

rises,

and

sharp declines.

a halt ir
possibly
some

A number of mi¬

nor buyers' strikes have been

re-

0 ported and in many retail storei
| consumers are said to be more
discriminating in their purchas0 ing

but

far

total

retail

sale

0 have not

been greatly affected
currently running more
than 20% higher than a year ag;
4
and are providing a good marke
| for all goods that - can be por*

They

are

:f§ .duced. .■■■v-/- >.
£ ; Increased supplies will also hal
,;./£ rise in prices and ;as the. enor
mous • productive; capacity of ttv
-,

gets into full - operatior
^quantities of- goods - ; should; bf

••country

finished products, 'must be. re-

lCctedf

pushes

other.

similar

can

one

will last.

rise

the

tell how

could

While-prices,

are

.being pushed

can

'be

produced

for

ear

man hour of

work, the added vol¬
would go far in bring nf

ume

about

Production

satisfactory balance be¬
tween costs, prices, and^ volume.
Proper
leadership
by
govern¬
ment; industry, and labor can do

■ /

v';'(

Per

the

indications

point toward a continued
level of business activity..
J

the prewar years. An example is
chemical industry which has ;
been
producing, at more than
double, the average of the prewar
years, while the output of indus¬
trial chemicals has been 4 times

the

high

Cent Below'

greater. The" machinery industry
has also been? operating at more
than double the prewar, rate.

Last Year

The upward trend iri industrial
production which started after the
end

the strikes has

Significant Comparisons

continuec

and;: factory

output is moving
steadily toward a rate which wil
be. ?qual to that of ,a' year ago
The volume of civilian goods be^
ing turned • out. is much greate:

evaluating how much ha?
accomplished this year and
in ascertaining the current situ*
ation, we should make those conw
parisons that are most significant.
To state that production has not
In

been

than it

was last year, although )
is much below expectations. Tb»,
automobile industry, for example,

yet reached the wartime peak or
high level of a year ago when the
government was spending many
aillions m'ore for war-than it now
is does not mean that business is

produced less than one-third the
number of cars in. the first half of

the?

year/that;

were,

scheduled.

Many physical problems of

recon¬
poor this year.: It; can be below
on time,
last year and still be a best peace-r
labor-management difficulties time? year?' for thet production ©t
closed many plants for long; peri¬ goods as well as for services.
/

version

were

completed

but

Similar strikes in the plants
suppliers resulted in shortages
of
individual ; parts which fre¬
quently held up-the assembling of
ods.

Other "comparisons
are ' alsq
heeded to determine' the level of,
general/prosperity which we are;
having. One comparison is wi^
the five-year average from 193S
through 1939* That? is a relatively
low base as it "covers some year?

cars

and trucks which were other¬

wise; ready for

delivery/ Similar

situations uave prevailed in many
other lines and account for
siderable

con¬

bf^hbiiorhtiailylmA/pr^dctiom/A$|

the relatively compared with that base,- how¬
pbor showing ipade ^during /tile, ever,
frictory^output,;
*9
first part of the year.
the comprehensive index of the
•

part

Federal 'Reserve, Board lias avert

aged more than 50% higher. It
has been almost 40% higher than

ings of factory workers have hiJ
peak, weekly earnings have

a new

declined

due

shorter

hours

According to. the same survey bT
the U. S. Department of Labor
the

workers'

take-home

has

pay

declined 9% during the past year
while the general cost of -living
has

close to 5% and
the recent price rises have pushed
it even higher:
gone

The

upon

most

total

general

purchasing

measure

power

the

amount of the income payments tc
all individuals.So far this yeai

t^se iwmientshavePbeer* running
close to 5% lower than

they

were

^ye?ir pgo>» This?failing -off fha^
affected retail sales, be¬
cause savings have been much less
than they
during,:: the. wai
years.
Consumers are r spending
larger percentages of their cur¬
not

yet

the rate of operations for
such maj or; industries as steel, au¬

peacetime year in which spending
for war' had been little
influ¬
tomobiles, and coal. To evaluate enced. Production during the first;;
the achievement accuratelyr both half 'of this year has been about
favorable and unfavorable factors the same as the monthly average
need to be fully considered; The during 1941 when* spending for
variations among different indus¬ military
purposes had
already
tries have been much greater than reached' a
fairly; high - level. ;
1
,

normal

times and to

what has been

measure

By keeping iq-; mind'/dearly^aU,

accomplished, facts

these

used that are fairly
representative of the general level
of production. We need to guard
carefully against the mistake of
picking only those facts that seem
to support a preconceived opiniori
as. to conditions.
Unless that cau-

shoyld

this year have been

than

trends

into

recent

debt

If presen*
installment ac¬

years.

continue,

outstanding will reach a
new peak and all the wartime re¬
duction will be made up by the
end

of this year.

that

will, of course, be very low.
not be accurate, how¬
ever,
because those abnormally

sumers,

low

Business Volume

.V,.:/.:-

those industries
did not accurately indicate what
all industry was doing during that
figures

for

i j"

time.
A

misleading

conclusion

can

gradually

the

situation

will

just

far above

operating at

last year,

;

expanding,

espe¬

cially in the production of civil¬
ian goods, and even farther above

most

that

recent: weeks

probably

ahead again, partly due

(Continued

damental

for

on page

fun¬

88,900 Shares

high standard of

living is not the number of dol¬
lars each group can get for itself
often
at
the
expense
of/ oth^"
groups.
Prosperity
well-being depend
ume

are

goods

and

arid., -national
the vol¬
services tha

upon

beirig produced. Only

production

increases,

one^;l^ve
tive- of

can

TLEYF

FOODS, lac.
(A Delaware Corporation)

ask total
every¬

objec¬

Common Stock

all,

tho$e . directing any
phase ;>of the economic
turned out at close to wartime1
should be ; the, lairger prpduetipri
peaks. The rriany obstacles thu ' of •' these
goods and services.
*year have:'prevented them from
Unless we hold firmly to th?5
ireaching more than 75% of thai obj ective, andl striye: for the
right
level. Time is also required to get
kind of ybalencej tiie;
wagPr^itiig
jthe supplies of civilian goods intc spiral" will: continue
;until it rem#
ithe hands of retailers and/dealers.
a
^i^sti<^cQllapse|wbi^ might
These conditions partly account involve far more
serious

(Par Value 50(f Per Share)

■

reaf?
-justmehts than were necessary1' in
being the (ppst-\yar; depression; of 19?1
^correctcd;^ Supplies will be larger and 09220
Whateye^co^
v <each month and will soon ;be suf¬ is done to*
halt the too-rapid
ficient > to meet most, of 4he large rise will help provide the

]for the current shortages

Price: $3.25 Per Share

many

•lines but sthey are, gradually

demand which is the result Of past

^shortages^tiri^edditipn* to " current

[needs.
-*"0:
fit These considerations which tend
•

j to hold down price rises should be

highejsl

prosperity that cari be maintainec
at; a level

above ^ihat of *the ;prie-:
years/
Average hourly earnings pf faie/
tory workers have risen to a new

war

LUCKHURST.& COMPANY; INC.
40'Bxchange Place " "
New

Ycdk.5,N» Y.

REICH & COMPANY
! ' I

39 Broadway
New York

4,N.Y.

indicate

forging

to the rise

bring about that balance
mean a higher stand¬
livnig for all. We need to

keep in mind that the basic

the

Preliminary figures for

volume

much to

measuretl

which will
ard

by finahcial transactions has been,
holding, steady, slightly above at
year ago.

been

-.Last Year

volume of business

levels

have

Same as

While industrial production ha?

been

dustries

the

would

kets for those goods are

future

Output is

would jreach. it.

crease

large enough to provide enormous
able^^ rind ipre^ar^to; indrix^^ based
quantities of goods to go far int
on
weekly ouput of coal during
meeting the "demand when they
the coal strike or of steel during
arec. properly
distributed;'wherq
the steel strike. The resulting fig¬
they will be accessible, to con*

the

fundamental
relationships
supplies of goods and the mar¬
gradually
changing and at some time in the

They?

but the present trend is
^direction • and a few?
months at the present rate of in*

also be drawn if the opposite kind
of figures are selected. Many in¬

obstacles.

all

se«|

hew "peak

ure

going

spite

;

by industry
considerable

have' not been enough to make si

- taken,
one may . want to
consider the situation as unfavor¬

are

coin^risohSjf ^ne;; can

that the achievements

tion. is

the data for credit sales show thai

they

1939~which was the last

the year

cated by

rent income and at the same time

counts

end

quietly
with
moderation : in
wage
de¬
mands, in price increases, a"nd ir
increased productivity of labor. I
more

however,

it,: has
In

years.

higher, h^ri^i^/costs/ consumer'
In spite of these many difficulpurchasing. P p w e r for/iimijy tiesr ftiuch progress was made and
groups/is not' expanding at; the goods were turned out in much
same rate.
Although hourly earn¬ greater volume r than .was indi¬

.attitudes will

one

increases.'

■*

from. what

several

-The
country is -now: caught
temporarily at least, in a wage;
growing demand always operates
price spiral in which each rise r
to boost prices until more
goodf

even

during the next few weeks
hbtfyefkcompieteiF^aftfer the recent
possibly months. The,; large,
wave/- of;wage increases and;they
gbyerhment 'spending will /cmatihud/ta: f^ush/prices" to
in excess 6f, receipts contihues to
consumers.higher;. ;lv//
add newr force ito- tihe: already larg£v;-I °
consumCr V savings' v;and; current
Censumer purchasing Power •/
amounts of

can

macu

and

because of the many rises in wage
s

many

along- -the line and
[preissure wul^ '^bp ^ rhairi- make
rhecessary readjustriiehts in
tained and iadikeiy :to^be f^edpihi^
prices.;;; 7?hese .readjustments; are
inant

0 "could not estimate; 4what prices consumer
incpmes0Bu^iness ;cp^
Ynight be'established for the goods have
increased sharply;; this yeai
o,

'rurfe.-'.In"addition, costs.for
manufacturers

higher / because; of addec.
costs Vamong: suppliers who have
DeCn compelled to raise the prices
of/raw materials to meet their
own higher^ costs:
Increases ;imposed; at any point, in; the process
0 of
^productiori.^ from raw niaterials

upward

During most, of last month, the
"question as to whether or' not
any

Many Costs Have Risen

abor 'cost. which' coristitutes pne
major. iteiriS of expendi-

of ' the

have ' been

for

meantime,

the U. S. Department ofDaboi
during the past year straight time
lourly earnings -have increased
::ive end one half centskvln
many
factories;;the- increase has been

many

opposite

been

kept in "mind even though they high of $ 1.08. cents ah hour, ac¬
may; not be 'fully effective for cording to ^survey recently made

the previous peak.

627,

628)

charge of $36,555,000 in the period
through May, 1945.
Even, With

Southern Pacific is having a hard time adjusting its operations to
sharply declining rate of freight and passenger business. In par¬
ticular, it seems likely that the recent very precipitous drop in the
passenger business, a drop which got under way considerably later
than did that in freight business, is having a quite adverse influence

the

Total revenues were off 23.8% from a year

operating results.

earlier

months^
the

five

the

for

through May, with the decline
widening to 33% for the month
of May alone. Passenger revenues,

which accounted for 20% of gross
in the
1945
interval, were off

in passenger
is attributable largely to

rise

fall

or"

revenues

fluctuating load factor, and dur¬
ing the war virtually all railroads
a

(the decline was less sharp than
that recorded for gross revenues)

benefiting from unprecedentedly heavy loading of pas¬
senger cars,
It is no secret that
quite often the cars were filled

but

alone

from

There is obviously quite a differ¬

19.7%

for

the

five

full

months

the month of May
declined more than 43%

the like

Just
in

1945 month.

the

passenger

accompanied

increase

revenues

not

was

comparable

any

increase in passenger train miles

miles, so it is
impossible to cut the service ren¬
or

passenger

dered

car

sharply when

begin to contract.

well

revenues

In many cases

little

100%

over

the

ence in

war-time

were

revenue

difference

capacity.

received, but
the

expense

involved, between running

a pas¬

train half full and com¬
pletely occupied.
Falling pas¬

senger

business,

then, naturally
brings with it a rapid rise in the
passenger operating ratio.
senger

Pacific's

Southern

Although

down more than 23%
for the five months through May

gross

was

the operating expenses were vir¬

tually unchanged.
charges were cut

Alabama Mills

Arden Farms
Common & Preferred

Dictaphone Corpn.
Common*

Maintenance
by approxi¬

mately $5,000,000 to $75,634,000 or
about 6%.
This was merely an
accounting matter, however, re¬
flecting a net credit of some
$9,000 this year for amortization
of defense projects compared with
a
charge for amortization of over
$6,700,000 a year ago. The actual
maintenance expenditures were
heavier than they were in 1945.
Similarly,
transportation
costs
were
up from $78,747,000 to $81,351,000

the face
traction in business.
Southern Pacific

Riverside Cement
A & B

few

roads

which

the

con¬

one

the

apparently
taken full advantage of possible
tax

carrybacks.

months

credit

For

the

five

through May there was a
$13,508,000 for Federal

income

contrasted with

taxes,

from

For another thing,
anticipated lhat over the
reasonably near term the road
will begin to get at least some
it

July 1.

measure

control

over

its

ex¬

panses.
With this potentiality,
with the road in a particu¬

and

larly strong financial position^ the
general feeling among rail men is
that
the present dividend rate
may
be considered
safe
even
though the earnings for 1946 will
almost certainly be very modest.
Regardless of the earnings ex¬
perience of the present year many
rail men look upon the long term
prospects of the road as highly
favorable.
its

trend

Over

the

long

term

freight traffic and

gross revenues has been more
favorable than that of the indus¬

whole or other roads
in the same territory.
In large measure this has been
due to secular industrial and agri¬
cultural expansion of large parts
try

operating

the service

trial

This indus¬

area.

growth

expansion

and

population has been given added

stimulus
the

has

conditions.

war

time

same

the

accomplished

management

significant

re¬

duction in outstanding debt which

been

has

augmented

lower

refunding of outstanding

coupon

bonds.

All

potential

estimates

all,

norrrial

earning

power

peace-time conditions

run

MEMBERS

this

and

outlook

justifying

constructive attitude

the

towards

viewed

stock

regardless

indicated

what earnings may or may not be

in the single year 1946,

realized

1939.

The rise is

larger
the
checks being cashed, as well as
by the larger amounts of currency
in circulation.
The quantity of
money being used has increased
about 5% during the last twelve
much

the

amounts of bank clearings and

$28,000,000,000. •' The prewar figure
was less than $5,000,000,000. Prob¬
ably not all of it is being used,
but a substantial part of the in¬
crease
represents more buying
and selling than ever before.
The comparison between factory
output of goods and the .dollar
volume of business is significant.
These two items may diverge con¬
siderably during a period of ex¬
pansion and of rising prices but
they are likely to come closer to¬
gether again. At present they are
being brought together by the rise
in production, which means that
more goods are going to be avail¬
able. Part of business volume in¬

months

and

now

above

dicates spending by consumers for
services as well as for goods. Some

represent

may

speculative

buying and some building up of
inventories.
The
expansion
of
commercial, industrial, and agri¬
cultural loans may indicate the
extent to which bank credit is be¬
ing used for these purposes. Loans
of those kinds by
the member
banks of the Federal Reserve Sys¬
tem have increased 30%
during
the

last

been

The

year.

greater than

increase has
in any recent

year.

Trends

Leading Lines

Current trends in several lines

clearly the importance of
considering what is taking place
in each industry as well as the

show

changes in the general average of
all industries. While total produc¬

The

Railroad Bonds and Slocks

rise

building

construc¬

tion this year has been most sig¬
nificant.
Some
advances
were
made

So. LaSalle St., Chicago 4, 111.

last from the

low point in

early 1945, but the most rapid in¬
have been this year. The

c:-*3

creases

F. W.

tMv'

Dodge Corporation reports

award¬
ed in 37 states east of the Rocky
Mountains
during the first six
months of this year reached a

that construction contracts

Specialists in

PFLUGFELDER, BAMPTON & RUST

RAILROAD

Members New

SECURITIES

York

Stock Exchange

peak. The amount was $500,greater than the $3,347,000,000 during the first part of
1928 which was the previous peak

new

Broadway

New York 6

Telephone—DIgby 4-4933

000.000

Bell Teletype—NY 1-310

Selected Situations at all Times

hampered somewhat by ris¬
build¬
ings and residential ones.
The

also

ing costs, both of industrial
rise

The major part of this con¬
tract volume represented residen¬

last month

costs

greatest

during

any

the

was

similar pe¬

riod since 1940.

in .the

Activity

industry-

steel

continued

to expand and in
recent weeks has been operating
has

at just a little under 90% of capa¬
city. Weekly output has been lr500,000 tons which is only 6%
lower than it was a year ago, and
about

14%

peak.

the

all-time

Total

the

below

output of steel for
is far below last year

year

shortage of steel will hold
expansion in many indus¬
A shortage of steel scrap

and the

back
tries'

reduce operations during the

may

next month unless
can

material

be found.

The

petroleum
industry has
increasing its output and last
a new peak in the
production of crude oil. Average
daily output has been just under
5,000,000 barrels, slightly higher
than a year ago when the war
demands were heavy.
Increased
use of petroleum and its products
by the public have more than off¬
set the decline in military use.
The textile industry is also op¬
erating at a higher level than it
was
earlier this year, although
production has not yet caught up

been

month reached

with the enormous demand.

Cot¬

ton consumntion by mills has been
above

bales

800,000

monthly

compared with around 600,000 in
1939.
Consumption of wool has

lagging somewhat behind
but current indications
point to further expansion during
the last half.
Total output may

been

last

holding quite stable
or slowly rising, activity in some
fields may be increasng rapidly
or oossibly declining.

Broadway, New York 1, N. Y.

231

started

war

tion may be

New York Stock
Exchange and other
leading Security and Commodity Exchs.

120

(Continued from page 627)
in prices. The current rate is close
to three times the rate when the

from about $7.00 to $9.00 a share

ERNST&CO.
•

Pzice Unceitainties Hamper
Business Planning

earn¬

ings -available
for
the
stock
amounted to only $5,923,692 or a
little less than $1.60 a share. There
appears to be little question but
that from here on earnings will
begin to improve.
For one thing
there will be the rate increases,
even
though
meager,
accruing

under

has

credit

tax

substantial

the

Tiiursiday, August 1,1946

THE COMMERCIAL & FINANCIAL CHRONICLE

,628

year

560,000,000 yards of woolen
worsted products which will
considerably above the 375,000,000 made in 1939.

reach
and

durable

The output of consumer

goods is expanding steadily and in
some
lines quite, rapidly.
The

output of radios has already sur¬
passed the prewar monthly aver¬
age in number of sets, although
not in total sales volume. Most of

the
are

radios

being

produced

the smaller models.

More au¬

now

tomobile tires are being produced
than ever before and if present
schedules

the J

maintained

are

number will surpass the

high year by 30%. Production of
washing machines and vacuum
cleaners has surpassed the prewar
monthly average. Production of
refrigerators and electric ranges
is lagging but the trend is up¬
ward and prewar rates will be
within

reached

few weeks.

year.

tial

Seaboard Air Line
••

GUARANTEED RAILROAD STOCKS-BONDS

25 Broad Street

New York 4,

*-*s

•

-T

•

When issued

N. Y.

Telephone BOwllng Green 9-6400
Teletype NY 1-1063

When

;•

••

v '

•

;

Railway

losses

assumed

hous¬

Building is being held back by
shortages of labor and of materi¬
als.
Lumber is one of the most
important of these shortages but
other types of building materials

SUTRO BROS. & CO.

are

Members New York Stock Exchange,

TEXTILES, INC.

Telephone REctor 2-7340 ' *£

Agriculture has been making an.
even

better record than industry

this year and

the current outlook

is for crops that will be close to
an

all-time high.

Conditions may

change during the critical month
of August, but

unless they become

unfavorable the

corn

crop

will be needed be¬

all the

available to flieet
Construction is

demands.

the best

since 1942.

Mclaughlin, 'reuss & co.

Long Island Airlines, Inc.

request

Members New York Stock Exchange

Common Stock
BOND BROKERAGE SERVICE

Specializing in.Railroad Securities

Bought - Sold - Quoted

_____

Adams & Peck
63 Wall

ONE WALL STREET

Street, New York 5

BOwllng Green 0-8120

Tele. NY 1-724

L h. rothchild &
.

Boston

Philadelphia

Hartford

TEL. HANOVER 2-1355

co.

Member of National Association-'
0/ Securities Dealers, Inc.

•

52 wall street.

HAnover 2-9072

;

tt.

y. c*

Tele. NY 1-1293

ex¬

condition of all crops is

average

Common

Circulars

scarce.

fore enough is

KENDALL CO.

Are

Production of pected to establish a new record
items is being increased but of
3,341,646,000
bushels.
The

also,

many
several months

120 BROADWAY, NEW YORK 5, N. Y.

Agricultural Prospects
Promising

started, although it

ing units completed.
A much
larger percentage than usual is
being delayed because some items
are missing.

profits discounted

issued

building

does not indicate homes or

•

NEW YORK 5
TELETYPE NY 1-2155

Philadelphia Telephone — Lombard 9008

.I v»

jNutnbet.; 164 ^•Number^4512

?^PE^OMl^fiCiAL^FiN^NCiALiCHRbNiCl.E
1.

ANYONE

jfTL

who

takes

ever

train- trip

!...-i.'.i'luiimu ' jji-i.n.™*ni i

iwiiil

1 A

•

overnight

it to' himself: to

owes

read these facts:

77ie average age

:pi^:

cars now

of the 6,800 sleeping.1

in operation is

almost22 years.,

the first world

(Would

war*

comfortable ride in

you expect

automobile

built between 1910 and

TSb

Nearly t2S% of thefnpi^r^b^

1915?)

Compared to really modern sleepers,
these old

cars

are

button shoes!

out of date

high

And to ride in these jit¬

tering tenements

wheels, 25 to 35. years

of age, the traveler pays a premium fare.
Is

wonder

any

railroads

losing

are

business to the airways and the highways?
•

♦

■

What's the Reason?
We Will Wait No

Don't think this situation is due to the

It existed long before the war.

war.

900

sleeping

now

cars—a mere

has

Only
We cf the C&O lines will nobsit

13% of those
.

the rails—were built in the last

16 years,

and less than 9%

are

while

of modern

6,000

new

sleepers needed,

only 764 had been ordered
These

were

.(More than

with

sleeper

every

shine with

are

other-roads

with great reluctance. To

that

car on

sleeping equipment, it is
not

order!)

Not only does this piecemeal method of

that the

mean

new

cars

spare.

principal

four times
an

them

our own

necessary
our

to buy

reasons

far

automobile.

open

also

purchase to

can

see,

it is the only

independently

any

making modern sleeping

at reasonable cost. If

way

oper-,

equipment available to all railroads,

car

will do

us.

cars

•

We will

new

pool rthat will demonstrate

interest

modern sleeping car service. But,

operating

car

that it will fill these needs.

ated

secure

sleeping

gladly release all the

This is not the most economical way to

why they will cost

cars

offers little encouragement

company

routine

must

company

modern

economically. The past record of

America's only

pool of modern

upon,

operating

car

and will buy

can

competitively in quantity and service

provide for seasonal and other peaks.

much per pound to build as

models. It doesn't make

new

sleeping

which

ill-fitted for through service;:it is one of
the

The need is self-evident for an efficient,
new

independently,

supply

only enough, cars to meet

equipment to call

will be

still clutter

cars

airways and highways

sense!

lines,

our

substantial margin

requirements—but with

buying

We have taken this step,

own

operate sleeper service did not have a single

sleeping

travel] in

passengers

sleeping

the rails while the

ordered in small lots of varied

design by 25 big railroads for theiruse.

by idly

enough modern sleeping cars] to

replace

of June 1.

night

rolling tenements.

been greater than it is today.

never

Yet ancient

inviting bids from manufacturers

now
on

over

our

outdated

lightweight design.
With

The demand for travel accommodations

Longer!

the other roads

much, it should be easily

ISipcefM^'Sejiteihber^fthe ipf& O has.
tried in Tain to get dtterailroadsito agree
on-

^po^sible'fbattmhiHi^ objective*
•t-

The C & 0

sieepers of standardized ..designs and

Repents Its Offet!

' -xt:

t-.

-t

%•

-prd^
-

^roads

•'

What roads will co-operate in this

can

production,

gain the economies of
-

\ •

mass
•.

drive ta give the traveler better service
lower cost?

The present situationis plain bad business.

•:..

The
-

;

n#encpurr~

f the
the

Chesapeake attH*0hitf 4line$
-

railroads that,proyide,iti^veh,beft»p
war,

new

*,*»,
<

lightweight streamliners

„

,1.v

.'/^v;

•

w'«s

y'"

'.5f,

frig' iy

-t,

•

-v*"-

,4.'

TermifialToiver, Cleveland 1, Ohio

"•

-v- !v -.u..';

.•

CHESAPBAKE CAND (flOHIO

^.the^idyway^
1

sleepers is to rhave its own;built!\

^thOTtbld^fashion^d'pr^decessor^had^aw^
-r-

•

eled "half, empty;

PERB

MARQUETTE

RAILWAY

road

RAILWAY

:~m*
i

•

mnimifi>wwrif>'frr r,'»*»«■*«*>»

wMUAu^wwiawoiina'jirr^i"!'

630

ffHE COMMERCIAL: & FINANCIAL CHRONICLE

[Thursday, August 1,1946

Quite frequently it will be found

Bank

and
By

VAN

Stocks
InMra

DEOSEN:

It is profitable

occasionally to review the general characteristics
reasons for their enduring
popularity among investors.
'
?£*
/Undoubtedly the basic reason forV this popularity lies in the indispensability of insurance to modern economic life. Neither social
nor business life could function
without the protection against loss
of insurance stocks and to
inquire into the

with

company

ratio will have

ratio, and vice
has

dency

Insurance Stocks

—

ferred stocks and common stocks,
thus lending to the stock of ah
insurance company something of

There

This Week

curities,

that

pense

low ex¬

high loss

versa.

been

recent

healthy ten¬
years
for fire
a

insurance companies to broaden
their lines of risks, and no longer
to concentrate so heavily in fire.

Thus, whereas in
miums

the

1925

stock

fire

pre¬

the

pre¬

mium volume, in 1945 they repre¬

character

bonds,

pre¬

investment

trust, with the added feature of

each

individual J: manufacturer's
price, uniform prices

1941

own

could not have been maintained in
any
case
where prices in
1941
varied. The present bill cures this
defect.

The formula

works

from

underwriting profits which, as al¬ ';he average price for the
industry
ready mentioned, provide a source in the base
period, and this per¬
of equity growth for the stock¬
mits (he continuance of enforce¬

holder

companies

represented 75% of the total

comprising

over

the years.

Marketwise,
stocks

fire

insurance

are

generally less volatile
than are general industrial stocks,

able dollar-and-cent prices.
The Wherry Amendment would
have restored to wholesalers and

retailers «the

percentage markups
approximately only 54%, though they follow the usual bull
which prevailed on Jan.
1, 1946.
with 46% distributed over motor and bear
which the institution of insurance»
pattern of the stock In the months
v
i-tu:-r"'''
since that time OPA
vehicle, ocean marine, inland ma¬ market.
Over the long term the has
provides.5 ^There is no adequate states
in
which
not passed on to consumers all
they operate,
rine, tornado and hail, extended "quality" stocks exhibit a sound
substitute for insurance, thus in¬
the increases granted to manu¬
showing ^ assets, liabilities, -re¬
and
coverage, etc.
f
surance
permanent appreciation in
companies are not Sub¬ serves,
facturers. Instead, the distributors
income,
disbursements,
The
investment
portfolios
of market value, in
ject to the vicissitudes which have etc., and-theyfare
recognition of have been
subject at .in-,
required to absorb some
representative fire insurance com¬ long-term equity
harassed other types of business tervals to routine*and
growth, coupled of the increases. This was
special ex¬
a fair
panies are well diversified over with steady and
and industry, so often rendered aminations,
increasing earn¬ policy because the
by the insurance de¬
sented

obsolete

through

new

inventions

partments of these states. Finally,
the inherent nature of insurance

list

long

well

■

selected

se¬

ing

and

power

good dividends.

sales

was

volume

high that even with re¬
distributors were
the| contrary has as it has been scientifically de¬
generally faring far better than in
been the case with
^tnsuranc,e| for veloped is sqch that, through
any recent peacetime year.
The
technological changes * n£ve*?{ii" caf^ul spreading and diversifica¬
present bill gives to distributors
creased the need for insurance tion of
risks, through limiting the
the markups which prevailed on
(Continued from page 608)
andi opened up many new lines amount of
liability concentrated to veto on June 29. If that bill
March 31, 1946.
This change in
had or pay higher
of coverage which alert insurance in
ceiling prices for
any one risk, and through the become
dale means that, without
law, inflation would have them than they should. It is
hardships
companies have not been slow to device of re-insurance, the ele¬
par¬
to distributors, consumers are as¬
been inevitable.
While the pres¬
ticularly unfortunate that many
exploit. As a- result of this con¬ ment of chance is minimized and
sured of considerably lower
ent measure by no means
prices
guar¬ of these increases result from con¬
dition, companies engaged in the the law of averages permitted to
than would have been
antees that inflation can be avoid¬
required
cessions to special interest pres¬
business of insurance enjoy a far
operate.
under the Wherry Amendment.
ed, it offers a sufficient prospect sures, rather than from the
longer average life than do com¬
adop¬
The operation of an insurance of
success to warrant the
Thus, price increases will be far
making tion of principles designed
panies engaged
in almost any
to
company may be divided
into
of a wholehearted effort to
keep expand production within a stable fewer, and those that occur will
other type: of business enterprise, three
main categories, viz: secur¬ our
be far smaller, under the present
economy on an even keel un¬ price structure.
with the exception of
banking, ing the business,
bill than under the vetoed meas¬
underwriting the til a flood of goods makes further
Ndt only is their length of years
risks' and investing all available controls
ure.
The saving will be most sig¬
Present Bill an Improvement
unnecessary.
in business outstanding, but also
funds in income producing se¬
The present bill, despite its in¬ nificant in the basic industries,
their record of unbroken dividend
curities. Expenses generally com¬
Cites Recent Price Rises
like steel. Since price increases in
adequacies, is an improvement in
payments. Examples among some
prise the cost of securing busi¬
basic materials, mean price in¬
The behavior of prices and rents
of f the better known
many respects over the bill which
companies ness, the adjustment and payment in
creases in all the industries using
the last four weeks has
which have been in business for
given I vetoed. In my veto message, I
of losses, the cost of administer¬
those materials, an alarming up¬
the country a frightening foretaste
mbre: than a century are as fol¬
emphasized the disastrous conse¬
ing investments,
general
over¬ of what would
ward spiral of costs and prices on
happen to the cost quences which would flow from
lows:
■-./ head and taxes.
Net operating of
■Yv.; fe1
'
•'
living without price and rent the Taft Amendment and its com¬ a wide front seemed inescapable
Years of
$C ks^w^y;'.,:
profits comprise the sum of net control. Even
Continuous
'£**■¥ '#■■
" :
though many factors panion the Wherry Amendment. under the vetoed bill. Now there
Age
Dividends
Narqe—
underwriting ■ profits
or
is a sound basis for the hope that
losses, were operating to restrain prices These
127
provisions are fundamen¬
73
and net investment income.
105
during this period, prices have tally changed in the present bill. A such a spiral can be prevented.
72
Dividend payments, with most
129
88
nevertheless
risen
steadily and comparison of the two bills dem¬
Franklin Fire Ins.,
117
115
Urges Adequate Appropriation
companies, are predicated on net
ominously.
andtechnological progress.
matter of fact/

'<> As 'a

duced markups

136

North River
Providence Washington
Security Ins.

154

120

Ins.? Go. of N. Amer
New Brunswick
:

124

investment income alone and

107

147

are

usually comfortably within that
figure; the excess over dividends
as

122

profits

all

guarded in many statutory ways.
For 'example, the laws of
many

important

states ^ provide

sound

are

stock.

Operating
companies
relative

ratios

afford

insurance

clues

the

remembered,
figures.
The

pre-wholesale
of the in¬

are

impact

has not yet been fully felt

creases

underwriting

efficiency by consumers. Retailers have for
with which -different Companies
type and caliber
the most part held to their OPA
may
be managed, other things
which insurance companies may
prices so long as their old inven¬
being equal.
There
are
three tories la&ted.
invest the premiums which
they
significant ratios to watch, viz:
collect from
the
These increases have occurred
public; most
loss ratio, expense ratio and com¬
sta'tes,
in spite of the restraining influ¬
furthermore,
prescribe
The loss ratio is the
regulations regarding the setting bined ratio.
ences at work to keep prices down.

restriction^ swith

regard to the
of securities in

and
are

reserves

against liabilities

contingencies. The companies
compelled by law to file

ual

an-

statements with the various

percent which losses represent in

relation to earned premiums; the
expense ratio is the percent which
expenses

premiums

represent in relation to

written,

combined ratio is the

City Banks
Request

Laird, Bissell & Meeds
Members New York Stock
Exchange

120 BROADWAY, NEW YORK
5, N. Y.

Teletype—NY

held

while

law.

Businessmen

work¬

hesitated

increase

possible.

was

bill

will

creases

While

require

where

production
the present

some

there

price in¬

will

1-1248-49

(L. A. Glbbs, Manager Trading
Department)

expansion in produc¬
tion, it reduces materially both the
number and the

size of these in¬

creases.

It was mandatory under the Taft
Amendment to increase prices so
that all industries could earn the

profits

they

in the year
major item they
make. This was a year of abnor¬
mally high profits. The base for
measuring profits under the pres¬
1941

earned

were

1940, in which
nearly repre¬

sentative of normal peacetime op¬
erations.
At the same time, the

to build upr inventories at high
fers
prices and thus risk serious loss if

Office

1940

every

margins of profit of¬
incentive for full pro¬

duction because 1940

with

adequate

there

are

bound to be serious de¬

lays in
rice

would
in

companies

vary

Continuance

Effective

iNsurance & Bank Stqcks
Bought >—• Sold,^/Quoted?
ANAYLZED
REVIEWED
—
COMPARED
Special Bulletin and; Booklet Service to Dealers &
Brokers
—

Trading daily 7

a. m.

to 5 p. m. (P. C. T.)

Inquiries invited. Orders solicited.

BUTLER-HUFF
of

CO. &

California:

210 West 7th

adjustments

continuance of effective price con¬
a vital necessity to our
peo¬

—

Seattle

permits

than

there

are

consumers

some

veloped uniform dollar-and-cent
Clothing prices prices for many importai.v prod¬

(ESTABLISHED 1817)
Pald-Up Capital

without,.

£8,780,000

Reserve

Fund

Reserve

Liability of Prop.- 8,780,000

6,150,000
£23,710,000

Aggregate Assets
Sept., 1945

30th
£223,163,623

THOMAS BAKER HEFFER,
General

Manager

Head Office: George Street, SYDNEY
LONDON OFFICES:
29 Threadneedle

Street, E. C. 2

Berkeley Square, W. 1

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

NATIONAL BANK
of INDIA, LIMITED
Bankers to the Government in
Y

Taft -Amendment

were

based

Office:

26,

Bishopsgate,

London, E» C.

Branches in India,

Burma,

Colony and Aden ana;
Vv

.-Kenya Colony and .Uganda

Head

has

difficult to ucts. This is the most readily un¬
levels, and derstood and easily enforced ki
other things that of pricing. Since prices under the

will have to go

the

made for increases in volume that

in particular w ill b&
at
reasonable

hold

hasten

get along well enough for awhile, tion during the war.
but ultimately inflation exacts its
Another major objection to the
toll from all.
Taft Amendment was the damage
The present legislation makes it would have done to compliance
the task of staving off inflation and enforcement.
OPA has de¬
difficult

will

banTof

can be
reasonably anticipated to
ple. There are millions of fam¬ occur within three months. This
ilies for whom a sharp rise in liv¬ change will cut down substantially
ing costs means immediate suffer¬ the price increases on consumer
ing.
There are others who can goods which were out of produc¬

that

NEW SOUTH WALES

The present

delays

slow-downs

Australia and New Zealand

trol is

been in the past.

PRIVATE WIRES

prices.

bill

Vital

even

St.; Los Angeles

Chicago
—
San Francisco
TELETYPE I* A. 2J9 ^ L. a. 280

—

in exorbitant

These facts demonstrate that the

These

mean

production. And it is maximum

of current costs would result

use

turn

production

was a

Control

appropriation

the granting of required

adjustments.

any

individual

the

Price

Administration,
while still serious, is not impos¬
sible, as it was under the vetoed
measure.
Secondly, the danger of
widespread interruptions of pro¬
duction while industry is waiting
for price increases is materially
lessened.
Unless, however, the
Congress promptly provides OPA

every

ent bill is the year

use

the administrative burden

company

greatly from the aggregate figure.

New York M

substantial

price line
Congress con¬ profits

the

sidered the enactment of
able

where

f Telephone! BArclay 7-3500
Bell

of the

excess

109%

that

19 New York

sum

I had requested that the

prices to be increased for bill minimizes two other
dangers
already profitable industries even inherent in the vetoed bill.
First,

highly
prices were rolled back to the
year
indicates June 30 levels.
profitable year.
This risk
was
has not made a
heightened by the prompt passage
Reiterates Objections to
profit on its underwritings dur¬
in the House of Representatives of
Taft Amendment
ing that year. In only two years
a resolution which would restore
since 1929 has the
Another serious deficiency of
underwriting the June 30
prices and rents.
In
business of stock fire insurance
the Taft Amendment is corrected
addition, consumer resistance to
companies, in the aggregate, been
increased prices developed imme¬ by the present bill. It is obvious
unprofitable.
In 1930 the com¬
that costs go down as volume of
bined ratio of all stock fire in¬ diately.
up.
Yet
that
In view of the alarming rise productiongoes
surance
companies, as reported
in prices which took place under amendment would have compelled
by Alfred M. Best, was 100.0%
the Price Administrator to base
these conditions, it is not difficult
and in 1932, 102.5%.
In 1944 the
prices
on
current
costs
even
to predict what would
ratio- was 98.6%, and comprised
happen if
a
free
market
were
operating though it was perfectly clear that
57.3% loss ratio and 41.3% ex¬
in many industries volume would
without restraint.
pense ratio.
The ratios reported
be increasing so rapidly that the
of

and Analysis

2nd Quarter 1946

Circular

the

A combined ratio in

two.

Comparison

while

for OPA

Although its professed objective
Furthermore, by drastically re¬
was
to increase production, the
ducing the number and size of re¬
Taft Amendment would have re¬
quired price increases, the present
days quired

net underwriting
an increase of 24.8% in the 26
ploughed back into since June
28, 1946 as against an
the business, thus assuring, in the
109
74
increase of only 13.1% in the three
case of well
managed companies,
A record, such as this
years
and 42 days between the
inspires a steady
expansion o£ the stock¬
a
sense o£ permanency and /of
signing of the hold-the-line order
holders'. equity, yea*-after year.
on May 17,1943 and June
security in the minds of prudent This desirable
28,1946.
situation is usually
Of this increase, only about 2%
investors.
f
reflected, over the long term, in can
The security., of an investment
be attributed to the removal
a
higher market price for the of
in fire insufance Stocks is safe*
subsidies.
These, it must be
39

105

...

well

onstrates this fact.

The Bureau of Labor Statistics
index of 28 basic commodities in
the primary markets has shown

Ceylon,

Krnya

ZanzPxi.

Subscribed Capital— *_£4,000,c00

Paid-Up Capital—
£~,0C0,000
Reserve Fund———£2,200,000

The

conducts every deoC*lpttatt
banging and exchange bigness

Bank

Tmste tek!' • and E/.«ci
also undertake t
.

Number 164

day when price control
be abandoned.

Finally,
tained

THK COMMERCIAL & FINANCIAL CHRONICLE

Number 4512

can

con¬

clause which would have

House Approves

Senate,

bill

overhaul

the

State

destroyed wage stabilization by Department's foreign service
requiring the inclusion of unap¬ which its sponsors have said was
proved wage increases as costs in needed to put the United States
the price increase formula.
That foreign service on a level with
clause has been omitted from the

present bill. The invaluable work
of the Wage Stabilization Board
can therefore be continued.
I

those

vote

other

passed

chief powers was

by the House by

from Washington from

Service Revision
A

according

dispatch
the Asso¬
ciated Press, which said:

Foreign

bill

vetoed

the

safely
£

voice

July 20 and sent to the

One

the

chief

A major section of the reor¬
ganization bill would establish a

foreign service institute, making
possible a post-graduate training
school for foreign service officers

provisions is
all
workers, including a rise similar to that now attended by
from $17,500 to $25,000 yearly for Army and
Navy officers.
Ambassadors.
Another provision would call
The House also passed by voice for automatic retirement of offi¬
to

increase salaries of nearly

career

vote

ing
of

another
an

measure

establish¬

office of Under-Secretary

State for

economic

affairs.

cers
as

not

qualifying for promotion

often

specified in standards
The
other provisions

outlined.

would create an office of director
general of the foreign
service, and
set up a
foreign service board to
advise the Secretary of
State, and
require foreign service officers
to spend at least three of their
first 15 years of work in the
United States and to take home

leaves every two years they- are

abroad, to keep. them abreast of
affairs in the United States.

regret that the Congress did

comply with my request to
from compelling admin¬
changes that will make
task more difficult. Good gov¬

refrain

istrative
pur

ernment requires that a, law be
administered
consistently in all
the

fields where it is applicable.
Consistency of policy .is difficult
to achieve when, as in the pres¬
ent bill, the Congress has pro¬
vided for division of responsibil¬
ity. I am confident, however, that
the

Price

Administrator

the

and

Secretary of Agriculture will work
closely together to maintain uni¬
fied policies.
Will

Board

Decontrol

Appoint

I shall proceed

promptly to ap¬
point the Price Decontrol Board
provided for by this statute. We are
all anxious, on the one hand, not
to cling to these controls too long
and, on the other hand, not to re¬
lease them too

rM A

■
WMm.

The stand¬

soon.

ards

prescribed by the Congress
for removing and: restoring con¬
.

I said in my veto message, I have
not been opposed to the creation:
of

•1

trols are reasonable standards.: As

independent board to resolve!

these difficult questions of timing
the removal of controls; I propose
to

appoint

Board

men

members

whose

gpU'-'j

the

judgment

and fairness the Congress and the

have complete con-!

country will
fidence.

•

Price control
of

means

Under

but

one

combatting

the

best

of the

inflation.

circumstances

price control alone could not
serve

economic stability.

pre¬

Because

of the defects in the present legis¬
lation and because of the months

•

of delay in its enactment, it is all
the more apparent that more ex¬

tensive
cate

use

of the power to allo¬
materials may

scarce

■:

HII

re¬

quired and that sterner fiscal and
monetary

than

measures

would

otherwise be called for may prove
to be necessary.
i.ujn

Hints at Higher Taxes

In order tq. bring spendable in¬
come more

closely in balance with
supply of goods,
attention
be given to strong anti-in¬
flationary policies such as further
the

must

reduction of Federal expenditures.
If, despite such measures, inflation
still threatens, consideration must

Mind If We

then be given to the formulation
of a more rigorous tax
policy.

Explode

.Few Fallacies?

Such

a tax program would, I real¬
ize, be unpalatable at a time when
are
doing our utmost to in¬
crease production, but if it is the

only alternative to the ravages of
inflation,
we
would
have
no

you

think the New York Stock

money

than

choice.
I pledge

the administration to do
its full part in this struggle, but
it must not be forgotten that the
battle against inflation is not the

government's battle
the people's. battle

alone

—

well.

Con¬

sumers must

orbitant

vigorously resist ex¬
prices.
Black
markets

cannot be suppressed

solely by

forcement

Businessmen

measures.

en¬

must, as controls are progressively
removed, exercise
self-restraint
and

A recent

members of this

some

individual

Do you

transaction?

profit if
j;

you lose on a

you

iose

prices of

from the threat of economic dis¬

;

•

HARRY S. TBUMAN.

.The White House,

report,

necessary

com¬

place, It Agrees

regularly, facts
to

reasoned in¬

millions of investors—each judging in
the light of his own needs,

Prices

are

established

through

neither makes money if
transaction, nop loses

offers

open bids by buyers and open:
by sellers, then are promptly pub¬

lished for all the world to
■v

is:<" kf.

rely
•

ses.

'»*•

New York Stock Exchange

the

tips,

rumors,

impul¬

We urge that you make

facts your guide when using
the facilities

see.

•"

available

are

investor—there is no need to

knowledge

and opinion;

decision. These

facts

This also is a mistaken idea. Security
prices reflect the continuing appraisal of

enact, such fiscal and; monetary
legislation as we need to save us
aster*

When

lists its securities in

this market
to

possible,

every way

vestment

think the New York Stock

Exchange makes
q

principles of, informed

investment.

securities?

...

Do you

sets the selling

policy

encour¬

age,

think that the New York Stock

Exchange

Exchange to

the

from various fees

Exchange buy and sell

Exchange itself does not buy
or sell anything. It is merely a public
market place
where buying and sell¬
ing orders from all over the country meet.

Congress
back in special session to strength¬
en the price control laws and to

revenues

York Stock

This Exchange

legislation) I shall have

ternative but to call the

association of member brokers.

pany

securities for their own account, the New

al¬

ent

of this

charges, paid mainly by its
members and by the companies whose
securities are on this Exchange.

short-run

of the government and the people
will not be enough under the res¬

It is the established

profit on a transaction!
nothing more nor less

and service

forego

the opportunity for
gain from profiteering
In favor of the long-run
advantage
of stable prices and fair profits,;
If it appears that all the efforts

you

It derives its

poll of public opinion which we
conducted showed that a surprisingly
large minority does have this mistaken*
idea. The fact is—while

This institution is

Exchange buys and sells securities?

provide.

f?*

THE COMMERCIAL & FINANCIAL CHRONICLE

A Business Man Looks At The National Economy

SecuritiesSalesmci

.(Continued from page 608),S * lie, condoned their, violence, and
a sewing machine or tne ob¬
in; payment has received ' power

By JOHN DTJTTON

investors today ^who -refuse to liquidate their
when a sale^ appears justified)* They

many

holdings

(even

don't like to give up 25% of their profits to the'tax collector.

day

may

will iwish. they had sold
out, even

[their profits.

But the
they think) when they

(and possibly sooner than

come

if the tax collector did share in

Any investor who believes that the capital gains tax may some

|day be repealed
ie

gamble

can

[thereby
hd may

modified, may yet be mistaken. If he thinks that
lower capital gains tax rates in the future and

or
on

save a greater proportion of his accumulated ; paper profits,
up someday and find out that those profits had another

wake

of disappearing.

way

Besides,

that capital

entirely possible

gains taxes,niay be increased next year, instead of being lowered or

(abolished. The'ti^d has been (and still is) to lower tax rates
the

lower

under

income

heavy taxes.

where the
made

Remember it is good politics to lower tax rates

majority of votes
profits. As long

some

there is

%roups and keep those in the higher brackets
come

from, and soak the few who have

the Truman administration is in power

that the capital gains tax will not be raised in¬

no assurance

stead of lowered.

There is only one factor which should determine whether or not a

security should be held, sold, or switched into something else.

That

decision would be based entirely upon whether or not the future out¬
look for
a

investment justifies its sale or retention.

stock in

that today shows the holder

company

Jiundred per cent over acquisition cost.
tax

Take the

case

profit of several

True enough, if it is sold the

collector will exact, a maximum, of 25 % of the profit. But what if

the-company is vulnerable to competition,

product, and

or a new

stock?

Isn't it better to take a

the

professions and personal
together — supply about
one-quarter of all the jobs cre¬
ated in America. Another neigh¬
bor invests his savings in a stock
of groceries. He hires a clerk who
also delivers. The two jobs he has
created cost the grocer the total
services

investment

that

has

store

equipment,
in
groceries,
in a
truck, and in credits to his cus¬
tomers. The risks of not making
a

of it are his to take.

success

the jobs are secure
they support are
If he fails, his savings are

succeeds,

and the families
secure.

lost and two

look for work;

men

profit and
or

through

America.
Your friend buys a farm to in¬
his
security.
With the

years,

market

with

and

decline which may

There is another point to remember and that is,

profit

long

it is

profit is When

paper.

habit of getting away from you without very

they

can

disappear

make

Paper profits have

The only time

sell out and get the cash.

you

you,ever

much warning.

lot faster than you can make them.

spend years building up paper profits in securities and
out the window in

pot

thought, and it

rich

as you

few weeks time.

chine

profit is not

see

can

all happen

that

of-those paper profits

becomes- a

time, he

enough to forget.

Constant supervision of

none

are

hard to

manufacturer.

^With

off the loans, ex¬
business, widens?his
market, increases the number of
his employees and also his re¬
sponsibilities. This process of in¬
vesting and venturing is the his¬
tory of practically every corpora¬

safe

investment portfolio is

the only way to keep that which you have worked

no statute compelling
employer to bargain collec¬
tively, or providing for a closed
shop, or a check-off. It has no
an

ac¬

tion

cumulate—especially; in these uncertain times in which we live today.

pays

America,

lyzes

his

turer

ain,

The labor government represents
the people equally.
In America,'

■

government denies equality
with labor unions to all other;

has

When

ana¬

the

manufac¬
about $6,000

success,v

invested

■■■■-■

;

Manufacturers

,»;•••

request

■

•

;

Herrick,Waddell & Co., Inc.
55 LIBERTY STREET, NJEW YORK 5, N. YT

which? he

the law.

Production Is Inflation

increases granted la¬
without
equivalent
production of goods is inflation.
unions

The

determining

renewed
as

cated,
with
strikes
to
them, there must be an

spiral

prices,

there

••

wave

already

indi¬

enforce

Time

manufacturer is

was

amended

Arden Farms Co., Pfd. fit Com. /'

)r '

«•

A1"

«;C;

enter¬

production of goods. The NAM

ufactiirers

equal,

the

at a fair profit just won't get
made; .The Inflationary pressure
President. After eleven
*of &ttsatisfieft*WThSsirig power
of agitation at public ex¬

he recommended six more
Six months will

TRINITY 3761.

*•

Teletypes LA 68

?
'

UrnM QwrttHoM tod Itformttfoa on *11 OaRfoml* InpiWd

seX

stands

for

equal pay
work-—regardless
of

religion.

Labor Union's
i ;■;

a Super^
f ^Government,;;1;

higher^ rates to in¬

vestors are lower, and> a
a

their
*

stooge.' For

eleven

the Administration has

unions'

inauguration." Taking -ceilings off
of

wages

and

leaving them

messes

assaults

run

con¬

practiced by^hiselersiall byer
auspices of ft

the nation under the
renewed OPAr^
''

June 4, Chester Bowles, in
talk over the Columbia Broad^

casting <iSystehy|(reprhited; in thft
Congressional Record of June
said!

■

-•-*>-

10)
1f

if the Senate

Banking and

Currency
Committee
proposal^
become the law^ on July 1 •;
>
milk will

immediately go up frohl
and services in OPA was
the * concessions.
Until -two to four cents a .quarts
equality * between ownership and butter will- go up 20. cents morie: ft
goods

* ;; cheese will go up eight
-to- nine-cents /at^retaii a pound;

management bmone side and la-; pound

Congress,

economic

anarchy

and eggs

OPA Prevents Production

labor

*The'T)PA was devised to prevent production of civilian goods

of the withdrawal

sidy '.payments,?'?
These

.
as tk
of sub¬

increases

are

the

priced

that-he hid but which you werp?
fimo
That ic Avartlv what.' navinff all
thp .time, '.v
'*
'
time. That is exactly; what; paying all the .time.
_

wn»»

the welfare of the pub- - in war

arid^jmultry'Will quickly

jump to'higher-levels
result

years,

errands, apologized for
they made, forgiven their

be
■

to the

gouging'-that jwas- and will

sumer.

between; Lincoln's election and his

will increase in America.

ness—to put an end

runaway

bor unions on the other is restored

Washington

producers want a chance to price
the black marketeers out of busi*

the unrestrained -violation of the

people's rights by .bad union lead¬
ership^ assisted- by present laws.
As Xrespl.t of inequalities granted
labor aunions,' prices- Of goods to

In America; labor unions have
become a super-government. The
in

goods.

di i v e n- progressively upward;
and,
Whatthe^prpducersBh^the^couni
permit two^ more years of sellout;
try want is: a chance^to»turn, out
to labor at your expense.
the everyday supplies of*' goods
The-people are not against la¬
bor; they are not against unions.
and save Arherica.^ The legitimate
They are overwhelmingly against

Administration

Jlembert L09 Angela Stock Exchange

LOS ANGELES 14 \

government.

ihgth^vabsence- oi
The price./lihe^ will bfe

Will-' increase/

detour the November election

oner

€24 SO. SPRING ST.

By this
process, America has grown great

Durstifac

WagensellerS

labor

The National Association" of Man*

for

.J*■

is as fundamental to our economi^
freedom as the right to a job at
fair pay. Goods that can't be made

the

pense,

ismpposedtomcmoplies^-be'they

color;

Fullerton Oil Co., Com.

The right to sell at a fair profit

after

basis for
inflation has been pro¬
vided by the government.
ConcessioUs'to labor iehders have cre¬
ated economic anarchy in Amer¬
ica unequalled since the months

business,

Inc^CouieJ

sible.

time,-the Senate rejects efforts to
equalize labor union laws. When
the Case Bill

higher at the end of another yeaf
than if OPA had been kept dead
on its record.
The upward march
of prices will never stop under
OPA and cannot be stopped by
OPA;"
Under OP A,^ the market
never can be full of goods.
The
OPA attack on profits was and
will be impractical and irrespon¬

upward
whether or not

OPA.

judgment of NAM, witli
OPA -renewed,
prices, will be

price paid by the consumer,
depending on the product. Little
by little, the earnings of the na¬
tion are passed on to labor unions
in exchange for votes.
a

the people

In the

mate

demands,

spent to

can

Higher Prices With OPA

prices,

because wages make up from twothirds to four-fifths of the ulti¬

If there is

for. OPA

propagandize you
your Congress.

—:dt the expense of all the people.
The manufacturer is at the mercy

consumers are

Fruit Growers

vided

which wages enter is an obvious
sell-out to labor unions for votes

workers, low. prices to consumers;
and a fair return, to investors, out

American

untruth and provides that no part
of the millions of dollars pro¬

the OPA ceilings off of wages and
leave
them
on
the
goods* into

wages

OPA law takes notice of this

new

The government's decision to take

wage

rtruths.

Banking and Currency Committee
that the OPA spent no. moneyWhatever ^ for" propaganda, r The

All wage

plored-by the Congress.
ZenoS
Potter of v OPA told the Senate

Increased Wages Without More

bor

sponsored

These, facts were thoroughly ex¬

historic policy of high Wages vfor

Your, government

months of study.

priser.-His group in the economy
—manufacturing—supplies about
one-fourth of all. the-jobs created
inrAmerica; An<f it gets 100% of
the^ blame-for unemployment;" In
recent years;: you -have seen -the
freedom to build through such en¬
terprise reduced: by laws. r
The
National' Association of
Mahufacftirers is cojnmittecLtot an

•

Prospectus

Supply One-

Fourth of Jobs

Common Stock

arrival of

prosperity.

Lewis,
Whitney, Johnston, Peprinted pages for your eyes to
trillo, Reuther, Murray-^ell ckiim
read. In death the OPA fed fan*
they are within the law. If that
tastic
scares# to
the*; President
be so, Congress needs to change;

peace and

resists your
free; Its. propa«»
tors that control the'lives and re-; struggle
ganda
machines*, pour endless
strict the welfare of the people.;
fears; into
your
ears
and ont6

5% Cum. Conv. Pfd. Stock

the

from

detract

floor of the Senate, it was vetoed

penman Tire & Rubber Company
4

OPA

drenii They? postpone

Labor unions, free of
restraint by government,
developed economic dicta¬

legal

years

ated

victories of war. They undermine
the moral standards of your chjlf

the

ploys.
:

wages

requiring a workman to join
union, or lose his job. In Brit¬
labor takes
responsibility.

for each man and woman he em¬
f-J.--'.

the goods into which
enter, because it stopped
the production of goods when they
could be made only at losses. The
OPA made us a nation of law vio¬
lators. It is the father of all black
markets. The black markets cre¬

and left on

law

his

pands"

attitude toward iheir investments will have their gratitude and their

safe, and

profit,

work at all hours, and by hus¬
banding his growing resources* he

NOW WHILE YOU HAVE THEM.

No investment is absolutely

for char¬

record

in his community, he can
borrow money from the bank on
his shop or his note.
By hard

Any security salesman who assists his clients in developing this
future business.

fabricated

he has

acter

them go

you had better forget about the tax collector and his 25%, and freeze
some

can

and if

can

suddenly that

join hhm If he hqs orders

mento

Before you know it you are

can

shop in his neighborhood.
gets more work than he
handle, he asks other skilled

When he

In fact
You

The OPA

labor

Britain has

have

goods—supply
about
onefourth of all the jobs created in

people.

American

is, in and of itself, &
principal cause of inflation.
It
government was a failure the day the war
has not given labor the power that!
ended.
It was a failure the day
labor enjoys in America.
Great'
ceilings were taken off of wages
British

The

25% to the tax

pay

The costs are yet to be
paid for by all Americans, includ¬
ing labor.

Americans.

crease

loss of 50%

for votes.

He too is an enterpriser. His group
in the economy—the distributors

he increases his investment,
it, the welfare of his
take place because of these factors? And remem¬ family. The farmer also is; an
enterpriser.
His group
in the
ber if the stock is sold after a 50% decline from current levels the
economy — that of agriculture —
25% tax still must be paid on the smaller profit.
supplies about one-fourth of all
L Why not take the profit and pay the tax? Then reinvest the the jobs created in America. A
proceeds in another more promising situation; If the new investment tool-maker, wishing to sell his
services at higher
prices, quits his
Is wisely selected, further prof its can be obtained which will more
job. He invests his savings in a
than make up for the 23% tax which must be paid.
few tools and starts a little ma¬
,.

collector rather than risk

been

have

analysis clearly shows that there is grave risk in further retention of
such

it shouM

time*.

it does in peace

liquidated with the
ligation of a lease; a stock of gro¬ from labor union votes;- Labor .war. -The ,Waf Production;Board
ceries, or the truck that delivers unions have functioned as-legal¬ was liquidated, with benefit to the
them.
•
ized- monopolies. They have co» economy and without criticisiri
?
A boy in
your neighborhood erced the people, with government from any newspaper or radio sta¬
.1
goes to college. -He graduates as support. They have prevented full tion in America.
a
doctor with I an education for production' of goods. Government
Inflation
in
America results
which he is in debt $2,000.
He concessions granted to labor un¬ from increases, of money in the
rents
and
furnishes an
office. ions in exchange for votes are absence of equivalent goods and
When he has built a practice, he written into the laws of the land services.
When OPA asked for
and continue to be expressed-in
can hire a receptionist to answer
subsidies instead- pf, foy- restric-f
the administration of fhe laws.
his telephone.
At that point, it
tions on the expansion of debt;
has cost him
several thousand None of us regrets labor's gains, while it
prevented the productiori
but all of us are paying for con¬
dollars
to
create
jobs for two
of goods, it proclaimed "its igno-»
cessions sold to labor by a sub¬
people. The doctor is an enter¬
ranee of economic law and its dis¬
priser. His group in the economy servient government, in exchange interest in the welfare of the
ties,

long-term

1,1946

Thursday, August

Number 164

Number 4512

THE

Housewife;A Price Regulator*
Always in Am erica, until OP A,

;

passed can succeed in forcing an
mprovement firu the admlnistra-

ion of

the regulator of prices has been
the American housewife.;:; Always
she has spent the' funds of the

family, u Always:? in .' buying she
sought- the bargains and advan¬
tages that would help her hus¬
band, her home, and her children.

prices controls,

OPA from

pressure

curtail
it—then
American business will be able to

white-collar

groups.

invalidates

money with

Deficit
the

even

which the increases

paid.

are

uses its
production

encourage

of-

all

increases of labor by reduc¬
ing the purchasing power of the

top to bottom

wage

the efforts of Congress as
sincere attempts to lessen - the; ref
strictions on production—if- the

instead

financing
ac¬

cepts

powers

when they were top high in
price,

not

the OPA administration

lated o manufacturers
and
chants, by refusing to buy

goods

employees,

& FINANCIAL CHRONICLE

workers who function as servants
in all parts of the economybut

What OPA Should Do
If

American housewives have regu¬
mer¬

COMMERCIAL

Stop Adding to pfebt Now

^ j

4 We must stop adding to the debt

how; not five years hence. Na¬
or lacking in
quality or service. step up its output of goods to the tions,,like individuals, pay their
American public. If the OPA of¬
Always they, have bought the
debts only when they plan to do
ficers

goods that gave them greatest use
•and style and value.:
By their de¬

cisions^-manufacturers and

mer¬

chants, flourished ?• or failed. On
their collective judgments, before

OPA, hung the fate and failure

.every investment by every manu¬
facturer and merchant of consumu
ers'., goods.

In total,
ofv all the

cent

per

eighty-five
consumers'

goods * bought
in
America - are
.bought by women.
Instead
of
OPA, let us again have 40 million
housewives to control prices-in
America.

Price

control

the

American

housewife is the only
sort of price control that has ever

continue

try to t get
around
the
clear
principle of
"adequate prices," written by Con¬
gress; into the new OPA-*~if they
deal with prices as they didun-:
der the old OPA/ then
production
.

will

continue

black

from

markets

the other,

curtailed,

again

end

one

will

arise

the

country to
the economy will

and

nojt be able to turn out the goods
which

the American public has
the right to expect.
The government
constantly bor¬

rows

its bills for
you to pay later. This abundance
of money iii combination1 with
money

pay

Thereby your government raises
prices by constant increase in the

trol'prices during the free inter¬

supply of

•

val/between

OPA's.

The

wife

-The--chaos

of
runaway ? prices
threatened by the outgoing OPA

freely,

the

more,
with
market

demonstration

would

have been complete'that the na¬
tion did not need a new OPA.

we now

money,

ted in his message on

signing the

new

price control; bill "Price con¬
trol is -but one of the means of

combating, inflation. ;
In order
bring spendable income more
clpsely in balance with the supply
.

of. goods attention must be
given

ioastrong*ahtfc4nfl&tionafy^oH4
cies, such

further reduction of
Federal expenditures."
It is

encouraging to have such

anti-inflation statement from
the President,1 Last
January when
the President submitted his

One-Man Rule
When

and his advisors

one man

in Washington assume that their
knowledge of your needs is better

•than the knowledge of 40 million
housewives, he insults the intelli¬
denies

gence nand

the genius
in America.

every woman

*4 When
in

one man

budget

knowledge
Solomon
sessed

Solon and

by any

When

one

$40 billions.

profits

and
the his-

3,000,000

ventures, he speaks for

the> authoritarian

state

that

the

fought to destroy in Eu¬

rope and Asia, vLet

authoritarian

state

it speaks for itself.

can

prices

background

war was

quote the
peacetime

It is Ches-

•ter

Bowles testifying before the
Banking ; and J Currency
Committee
on, February
20th,
1946, as Stabilization Director:

House
!

"So what we-are plannng-^

J- do
;

now

to #vthe

which

is to establish? priorities
garment manufacturer
be- must manufacture.

based

on a certain
percentage of
his base-period volume. The re-

Suit

wflf be

that he will

them

must

produce

the mill

ctuest

certain types

priority/

take

and the mil

that cloth.," It is not

i.
'

just

ofj
rd-

an; op-

portunity, but it will be directed

•

to produce it."

opposing price controls on
manufactured goodsr NAM askec
for the restoration of free markets
for^a free people, not just an im¬

provements
reaucratic

The
is

new

or ;

reduction

regulations a of
.

price

bu¬

OPA

.control h law

attempt by Congress to force
improvement in OPA in order
that production will be less ham¬
pered than it has been in 15
an

months since

war

ended in

Europe

and 11 and one-half months since
war

-ended

policy

is that

The/ National

Manufacturers

Asia,:>
we

can

The

NAM

never

get

Association

will

cooperate

every way possible, but try as we
will, the fact remains that wheth¬
er

not

have inflation de¬

pends at this stage upon the Presi¬
dent,!

That

housewife.

The only reason for
its existence is the lies with which
the old OPA misled the American

people, Our people know that the
American enterprise system pro-

duced^ the goods to equip the
American, and other armies, in all
parts

of the world. The instinct
productiveness is so greaT in
America that our people will not
tolerate the present low-gear
op¬
eration of • our economy by any

Private Enterprise Produces More
Than Collectivism

stepped-up spending is the

real threat of inflation

country.
the

not

Ceilings
expenses

the

goods

which

the money.

something
terms
that

be put
government,
of

goods.

creates
purchasing
producing
the

alone

billions

the nation

owes

talked about in terms of
what is. owed
by the people who
pay
for this government.
The:
people can't pass the debt along.
;i

are-

Many

dance

But

war.

the- end* ofA the-line.;

are

good;

have

that is

and

pay

no reason

that

its

costs,

But

why the controls
in Europe
us by a la¬

union

ica.,

government

Authoritarian

Amer¬

controls

prices,, wages, profits—controls of
interest

ratesand

allocation

capital

funds—all

prevent

the

most

efficient application of hu¬
energies; to
nationals re¬
sources.;
The result has always
man

deluded by the abun¬

money caused by c the
the government debt

been poverty.

fihaheing! reduces:; the yalue

Never wealth.

goes & through

room

gerously

ruin,

the

financing

the value:of the

Never

was

the.

prospect: for

prosperity greater than on V-J
Day. Reconversion from war was
completed
many
months
ago.

There/arehugesavings^ihthO::!
lands of the ^people."

There -is a
backlog- of un-f
But industry has
been prevented from manufactur¬
ing* agriculture has heen prevent¬
ed^ from marketing, ?^by a govfern- g
ment selling, concessions to labor
unions in exchange for votes,
twelve

years*
bought goods.

Recovery has been prevented by

governmental disorganization of
would take ciga-;
wages, prices and profits in the §
rettes, but not marks in exchange;
name
of control.
More "than a
Too precious to smoke, the ciga4
hundred million man-days • were
rettes would barter for food that
wasted in: strikes since V-J Day* ?
inflated money can no longer buy.;
as^a^resuIt>ofi the; mistaken^ poli->
In memory you hear Hitler on
cies of GPA :andvFfederaLofficials, ^
the day before Pearl Harbor, pro-;
A survey just, completed by NAM t
claiming: "The power of theGer-*
shows the nation began the secman people is greater than all the
gold of the democracies." It was ptid half.of 1946 with basic:indus¬
tries from 21: to 73% behind their
;

1946
|

the

only resources he had not
spent to validate his controls. BbM
marck, too, in <his day strode along

;

^production schedules*
*":r*i'K~ Ti

■

•: •

*';'•»

-f'

Imperative Needs

:;■*'>.

Nd^grdupidf ^Americans" can tfe

was

he who;

neral

the

unions and that their super-gov¬
ernment be dissolved to improve

authoritarian

State;
Here- lived! the confidentvleaders
who took over the thinking for a
.

the * welfare

all

Americans.

There is imperative need that the
OPA be-decontrolled promptly* sp
persuaded; then compelled," the
that the? economy of the; nation
German citizens to accept authori-;
There" is imperative
tarian controls. The Germans in may live*
need that inflation be rolled: back.
two world wars never
nation of intelligent people;

who

learned un-i

til

too

was

late

that

the

eco¬

Because of failure to meet these

they surrendered needs,: this nation which ought to
be creating a better-diving for all,
were inseparable from their
per¬
is shaken by economic anarchy.
sonal liberties,
nomic

liberties

Freedom*
Equality Under Law «
Eleven

yegvs

labor

union

under

equitable

the

folding money

|$n America: have beerv kept :alive by any peopld
taught the people the necessity of through compromise^ ! Only 5 your4
equality under- the law./ They alertness>to fight for equality can
learned to appreciate equality as restore it to the people in .this
they lost it. The people seek to land. The fight to regain our lost
save& their .heritage
of freedom,; liberties is worthy of everything

government

while their

politicians^would fas-* yoti have

ten the controls of authoritarian
States upon them in peacetime.;
*

The

politicians never reveal the
"made in Germany"- label of OPA;
the "made in Moscow'1 label of

your

and everything you owe

children- and your; grand¬
*

children.? In this fight for equal¬

ity? undef ? the? law, each of you
must help.

salary controls and the National be

In this fight there can

bystanders,

ures on your coins,

life,' for

study the ruin

the

his

Hitler

controlled

ordering

You think of

OPA, made in Germany, installed

in America by a German who ad¬
ministered German price controls

financing in peacetime
Wolfish plan* to^ ertjo;y privi¬

in the First World War,
You think of the German banks
which are "busted" because 80%

the5 expense Of bur" chil-.
drenv and oiir- grand-children in

the future/ Deficit
financing is an

invasion of the purchasing

you

other people's lives.

leges andimm unities -in the pres¬
ent

after

economy
brought to a peaceful world. You
think of the folly of

deficit;
is
a

protections planned
worthless

agony

and

the fig-i

his

rcom

their

ernment

assets
bonds

consisted

of; gov¬
bought with de-,

posits of the German people. You
think of the German
money which

power

INVESTMENT

BANKERS,;

Members New Yorfc Sfocfc Excfiangs
Other

Leading Exchanges

ond.
'

UNDERWRITERS AND DISTRIBUTORS OF
INVESTMENT SECURITIES
BROKERS OF BONDS,

STOCKS/ COMMODITIES:

worthless, and the Army of
Occupation money which, because
^can/dQ hnder. this .renewed OPA-, prices,, Deficit financing| menaces it is greater in amount than avail-i
I
depends On whether the. act as ~the security; of v all Civl Service* able goods, causes prices to rise id
.

law,

which has been the inspiration of;
America in its growth/ has never:

I de¬

where

helpful in restoring balance
to our economy than yourselves.
invented social security and sold?
No group represents a better cross
it to /the? Germampebpl^lfl^ex-j
section
of
opinion-makers 4 iii»
change for their dependence on
Americas than
this
Chautauqua I
tiie German state: Our SeciaLSe-,
audience and/ institution; There is ?
curity, yet to be paid for, was also
imperative need ? that the peoplef
made?in?Germany;n Iri: Berlin/ fi-^
be : granted equality with labor
nally^ yon ^afch^fhe$endless^itti
the Wilhelmstrasse, It

Third German Reich you think of
the death and the

your; pocket while you hold oir to
it, without changing the numerals
on

I saw the

save

?! As

re-i

money

point

eventual triumph over free enter¬
prise.^5';- -'"MS
V?*

every savings bank deposit with¬
out changing the credits! in
your
bank book. Deficit

duces

bunker
himself.
In

killed

without opening the. box.; Deficit
financing reduces?/the; value of

steps into the

subterranean

safe-deposit

your

box and;reduces the values
in

by disrespectful feet.

scended" the seried

every; insurance ^poiicyi you . hold
by-reducing the purchasing power
of the money, i Deficit
financing

Bis*-

A few

made

all-out production under anu form of the poor. It reduces the amount
of groceries
the
housewife'"'can
of OPA. Just how good a job we i
j
' -/ii j
Z ' 1!' purchase by --increasing;^ their

controls

Chancellery on the Wilhelm¬ marck made the First World Wav
strasse. You think of the promises .nevitable. The authoritarian con¬
he made, to s the German people,; trols of Hitler
organized the Sec¬
the "f ullV employment" he
pro¬ ond
World War.
Authoritarian ;
vided-for them in a controlled! controls
imported from Europe :
economy. You think of the Amer¬
nave brought
our economy danicans who applauded his solution

overhangs your job, your chattels
days ago, in a cold rain,
and*,- whatever* savings t that: ;
in Berlin, I looked on the
you'
spot
have. The policy of deficit finance where they
say Hitler's body was
ing levies its costs against your burned. It was a morass of mud
:

livings and .kyourt future^ Deficit

its

powers

ler's

paper

fought to destroy
should be forced upon
we

bor

must be

They

is <

and

dollars
debt.-

Keynes's gospel taught us in the
late '30s that savings are
bad; that
money is a benefit to the nation,
It is true that we fought a war

This inflation is not
to talk about only in

the

group

individual or family within our
nation.
They no longer believe
or

validate

can

The American people are smart¬
than any collectivistic

debt

deficits
and

without

power

should
of

production

credit

money,

facing this

authoritarian

with

prosecutor,
America^ by preventing; produc¬ judg^ and jury; or the "made iu
tion of goods and permitting con-*
ignorance" label of their pseudotinued production of money;
economists which prevent frCe ex-*
Above ground you walk amid
change of goods and services. The ,'/

At this stage the new OPA is his admission that
the muscle and
political step-child, disowned by. sweat; of the German people wefe

both political parties and left on
the doorstep
of
the- American

Government Spending Real
Inflation Threat

Financing

earth.

Washington

losses based

or
•

business

pos¬

that his department

assumes

torical

never

man on

man

make "decisions*
;

attributed

never

OPA.

and his advisors

that their task is to set 8 million
•prices for goods bought to serve
140 million people,
they assume a

or ? v no

government temporarily in power.

Washington tell the House
Banking and Currency Committee
•

inflation—OPA

been raised

than

the stark and silent ruins of Hit¬

Relations Board

combined

The ^children

stopping

Labor

he estimated that in the current
fiscal year, ending next June
30th,
the government would
spend $35
billions. C' This estimate has now

officially to

as OPA
caused prices to rise in victorious

of the full employment
problem..;
The Congress has written intoi Now you see the
poverty and hun¬
the new price control act a direc¬
ger,
the dejection and despair
tion to tiie President to recom¬ that has overtaken
Hitler's peo¬
mend "further legislation to es¬
ple.? You see the failures of Hit-;
tablish monetary, fiscal and other ler's
power in the pinched faces
policies which are adequate to of underfed?
GermanChildren;/ of
supplement control of prices and idle men and homes
broken, never:
wages, so that controls may be to be repaired. You think of the?
terminated June 30, 1947 without misdirected
energies of the Ger¬
danger of inflation thereafter." If man people expressed in
valor,;
the President does not see to it and paid off in
glory.
that OPA is properly adminis¬
£:• On?: the Wilhelmstrasse little
tered, and if the President does children
offer you gold crosses
not start
cutting needless govern¬ and badges of
victory that Ger¬
ment spending now, we do not
mans bought with blood and life/
have even an outside chance of

have.

Even President Truman admit¬

house-

knew the capacity to produce
•goods existed in industry, and she
waited for the prices to be right.

did not appear.
Itt^a
few-* weeks

created the inflation

defeated Germany, just

so.

shortages of goods caused by OPA

really served the American pub¬
These women who rum our
homes gave a 25-day demonstra¬
tion of their own abilities to con¬

lic.

633.

Private Wires

Home Oflice:, Atlanta

Phone LD-159

634

THE COMMERCIAL & FINANCIAL

I think you

Vital Issues Facing American Business Today
of the 20's and there

(Continued from page 606)
balance

and

how

very

adjust our¬
selves to wide changes in overall
demand and supply. That is bound
t0 be

difficult

one

broad^xpansion. Balance is not
titS even with an the present
mayi ^ln* ^
time,

enormously
of produc-

probably the

billion in

excess of
available to the market,

-are
what

of pay-

means

OpASh0TUld say something about
opinion, regardless
£ actl°n by Congress is,
we
have known as

that

whi
which

that

price

control, is

now

dead

pi-

it™-: That thing which w°s a
whtt happens to OPA legislation,
factor> regardless of
what Hng
has disappeared from the Ameri-

ia!£rSCene' national be necessary
ater, on a ** ,?bay. basis, to

try

the recapture of certain kinds

?nd, the maintenance
Se<£some 6f them new
are left. But these will take that

f«

"ni<^ue forms, and' we will

eenncd after® SHtragic Brieflv
exPeri"
alter the last war.:
j

th*

has been overlooked, at

termination of -the last/war,

b^ere was sudden abandonment of
iwl
ahd in attempt made in
rthere was some nearly every area

to/eeap"

the ensuing year to
try

num¬

that

have

through such a period,
going to call for the high-

of leadership to meet the

There has

test.

when the great requirement is for

tion

are

leaders

new

and it

There

very

been

uSf! 5 security. This feeling of
iimi?e^ ? security is always a
limiting factor, a shrinking factor,

•

never

^pHdf°minated. by fear and

stimulated high level

few left.

ber

were

been

also

sig¬
nificant change in the law relat¬
ing to the administration of prices,
has

there

cant

been

another

signifi¬

^change in the fact that

hgve

now

trated

pent demand," concen¬
largely the consumer

durables and

housing,' which very
easily could take those segments
out of the picture. In addition, we
have the largest amount of free,
hot purchasing power that has
been available to those who

ever

would

produce and sell.
For a
long time, the American business
system has been genuinely con¬
cerned by the lack of full demand,

it, is fiscal and monetary
management. The big political is¬

things, very, very es¬
items, have been taken

sential

And it has not been the

of.

care

restrictive

and subsidies to

business system

which has created
particular set of favorable
factors. It has been a devastating,
consuming hunger ; of war, and
for

certain amount

ance,

of the bal¬

^governmental programming

the transition period is re¬
sponsible;: I would: say that "the
government's program for con¬
tract settlement on a speedy basis,
the reconversion help through fi¬
nancial guarantees, the tax revifor

special industries

that happen to have

political

con-.

do meet that challenge,
we

will have a
We

substitution of state direction.

will have

increase of what is

trol,then thereisno possibility of
ahd' bureaucracy; I I5kh0w' more
maintaining f,u III;: employment,

through free enterprise and a free' nasty things about both of them
democratic system; If we wisely than any of you in this, audience
will ever, know, and I; hate and
use.our tax policy, if we wisely use
the management of the debt, if fear,and distrust both.. I look for
a
greater freedom here rather
we Wisely
use ourr expenditures
and our loans, our social security than for a lesser freedom if we
jare to meet the challenge of other
system, our furtherance of the
vigor that lies in the potentials Of systems that are competing with

businessmen,

as young men,

.us.^I;r Vv;^

-l

""Above all, what I have to say
in closing is what I started with.

body with a radical idea, either a
business idea, political idea or an
economic
idea.
That it
is
not
afraid of

politics, that it tries to

understand
ment

can

which

that

obsolete ories^ have to be worked

before in its history. In every
branch—and particularly in fine

ever

steels-^the

industry, at its best,
qualities which
once
gave Britain such a com¬
manding position in world.-prostill

retains. the

ideas and the state direction over

the factors of production and
said

equipment if all production is to

brought- iip'^;to

the, level

man.

wards

are

great. The rewards are

earlier, the re¬

equal to the risks that

involved

are

arid they are not all in the
and

area

There
comes

your

of- monetary

the

field

rewards.

reward

great

that

from meeting .challenges to

full ambitions and energies

and ' the

Aiperifca

toiribrrdw,

that I see, is just full of them.

Test Case

would have to be rationalized.

Its

Areas, the best balance-between; throughout the whole industry to
a
competitive; level. 'Second, a
the suse oL;home and> imported
and the

policy

budget

vtes, tbo .financirigbfreequipmeiit

reorganization and; re-

state

point of view of the png history ha4/left a legacy of
national interest, taking into con/, much: outmoded equipment and
sideration full employment plan¬ heavy capital charges. Larger Units
backed by heavy financing were
ning, the rieeds of the Develop¬
essential to bring output per man
ment (formerly the ^Depressed")

leriis

•

govern¬

out from the

ductiou.v^etAno one-denies tbat
the- industry; faces .serious prob4
^ of

wise

avoid

will

Nationalization of British Steel Industry a
(Continued

make choices of

encouragement of exports.
The industry has,' indeed; been
developing ? central .plan n irig

tariff wnuld have to,

belntroduced$
to; give' the industry ; an - opportunity to re-equip/and to

preventv

uncontrolled Imports.'from,

highly

throughout /tlie/lOSO's^^and- inf & ^gariiz^aridprotectedindustri^
x.
'
Report to the Government which'
The) tariff /was introduced in
method/ If. the Industry is ;to he; was published in May, 1946, it set
given a free hand,; how can the out in detail a- 7 Vz -year plan 1932vurider the supervision of the
dangers of monopoly be;averted? which it claimed would continue Treasury'4' ;Impdrt; Duties • Ad/
If the-Government is to take over, strictly unified development, take1 visory; Cbriimittee^ which was to
achieved by

the best plants. E)is-

plant clearance, surplus dis¬
w) fome no .success at all. fac- posal and particularly a certain agreement.;;.,;emefgeSiC
part of balancing
ters, with

S10n»;

measure;

say; that the reat threat
from the passing of OPA and of

control
crease

is not the immediate in¬
of. say 15% to say 20%/to

tnink that
I^Mnk thn?0^ pricem5ght be*
the th^
level is

•

already
terms

too

high. ' Thinking

in
employ¬

sustained full

ment, I would imagine that tho
Price level would have to get back
something, like 100 in the

Britfh^1 e?* wholesale prices,
of nin f impulse and reaction
releasing control,
it
it

IW as it of living, is not
to the cost is, disturbing as
is

with the serious-

'■Mm?'
ling.

Te0^ri2- of Price spiral¬
I should say; to you to-

Tf
If

th^ y°U Sh0Uld noti d0

vit?at?i?g because, sunrise would
Vyfou w°uld abstain from

Snf

.we> as a nation, are

nLZh'StarnS from something
almost
the rise

which

of the

as sure as

sun

tomorrow.

There has

dftln n° Ch5nge in the basic con.febs snd factors which are
?

lead to
not

glve you distortion and

run-away situation. I am

predicting that that vvill hap-

J5?* ®ut i say that the most
rious threat
that possibility,
is

given the need for

cause,
ness

se¬

be¬

cer-

ai?°uat of security, of firm¬
about
cost

Planning,

order

we can

have

mQ-Vely -easily in which
thf beginning end of the
at the business, particularly

stability in .price iri

the early months after V-J Day,
have bfen responsible for main¬

taining^ this

extraordinary high

level of full employment and pro¬
duction. The ' challenge then is to

how can initiative and

enterprise,'

those
tnose

essential in such

victor

group,

whether it

was

£491

millions. As

countries,

it was like the interior of

Britain is in the hands of a small

and the

Balkans,

other country

has been free to choose

terprise system and
cratic system.

Europe

free

en¬

free demo¬

the

iron

There's

considerable part of
and steel industry of

of large, vertically-inte¬
grated concerns, a typical firm
owning coal and ore mines, coke

number

ovens,
naces

through

3,446 firms in iron and steel, 2,440

and roiling mills,

has to do with leadership

ThP helm of American busi¬
the hGri °r #0tAthe executives

nesses

have the capacity and un-

dffstendmg unique situationis
to meet what
relatively
American production.

This is the

J Sto£?ace:time peri°d since the
tfnn nfS ™?,en the,re was a situa-

which

wise

choice of methods.

ft tbat there is an area in employed less than 100 workers
>

there

will

many

countries state trading. There will
be large international
agreements

relating to commodities like rub¬
ber, tin, sugar and wheat.
How
American
its

business

can

maintain

free

enterprise vigor in this
competition is one of the big is¬
sues.
I say that it is possible, if
you take those factors that I've

each,,

while 24 employed more
2,500 each. Seven of these 24
firms employed1 10% of the in¬
dustry's manpower; and
since
than

1935
even

concentration

has

become

greater.

considering the postwar re¬
of iron and steel
is
no
disagreement
in
will be price making policy? What
Britain on the need to carry it out
will be the attitude towards the outlined of what American busi¬
through a unified plan for the
distribution of goods, the distribu- ness starts with, you can succeed
whole industry. It is not "only that
by increasing strength and vigor modern
developments offer vast
tion of the product, is something
to speculate about. I was going without
running towards the kind economies, particularly
in the
basic
of security, the special
part of the
industry, to
oyer a list of major industries the
benefits,
other

tl?.1} °f full employment.
,

What

day and looking at those who

were

still

the

helm

who

had

which have been characteristic of

something of a. full em- industry's demands In the past
ploym^nt, period in the late part« One- of the greatest problems, as

been in

Developments

the

Whatever

great island here, as I
say, and we shall need to know
a

n. Prewar

in most other

the neutral group, whether it was
of a group like China, or whether

Slh«Titmente 7,134

+°f ?e is-sues> and this

seethat^ctivereorganizatioritook

ceri

i gam

full account of the wider national

■

complicated interests, and at the same time placeraridxthat the tariff did' riot
allow for the complete retention itself impose an uneconomic bur¬
business leadership.- The rewards industry, -be maintained? An at-:
of private ownership. To this the den on the British economy. The
are great.
The "financial, rewards tempted solution—and a typically
Government have r, made. a two> tariff iwas used flexibly, enabling
British one—has now been put
for real managerial ability, dem¬
the. British' producers to
reach
onstration of capacity, are of ex¬ forward by the Government, and fold reply. They, have/ accepted,
it is worth examining in some de¬ in broad principle, the reconstruc¬ agreement with the countries in
traordinary height. They are
tion plans envisaged in the Report the International Steel Cartel to
tail both; for its immediate effects
larger
than
in
any
industrial
allow quota imports; of certain
country in the world. But there is and for its wider/application—if (estimated to cost $672 millions)
successful — to other industries. and have already approved some products from* these: countries at
something more than that. There's
One fact can be stated immedi¬ of the specific proposals (costing a
lowejc tariff, provided that
a special relationship to what we
asking for them Britain continued to receive cer¬
call freedom. Freedoms in busi¬ ately, since it has been widely $256 millions)
recognized as axiomatic: partial to be carried forward with all tain export: benefits. Internally
ness, freedoms of the individual
speed. The industry's plan — and the new central organization—the
which he prizes so highly.
This nationalization, (which is the plan
its relation to prewar
develop¬ British Iron and Steel Federation
contment.is the only great island proposed) can never be success¬
applied on ideological ments—must therefore be scrutin¬ —co-ordinated the policies of the
of free enterprise that is left, one, fully
ized with care, since it is the basis various trade associations in •. th&
too, in which individual liberties grounds/ ft mus,t. be good for the
for
the
technical measures by industry/ and a number,-of firrris,
have not
fceen abridged; After the industry,-or it will be a disaster. which the
industry will succeed partly with the help of the Bank
last war, nearly every large in¬
Iron arid steel and their con¬
of England, launched into large
or fail. At the same time, the Gov¬
dustrial
country
was
free
to necting industries rank high in
ernment have decided that these reconstruction
programs.
The
choose a relatively free enterprise
importance in the British econ¬
must * take place three most significant develop¬
system. It was free to chose an omy. According to tl\e 1935 Cen¬ developments
within the framework of partial ments were the
building of a
unmanaged economy. It was free sus, all factory trades had a gross
nationalization; and it is on this large completely integrated plant,
to chose
a^emocratic, representa¬ output of £2,773 millions of issue that there are sharp differ¬ using home
ores, in Northhamptive form of government. The sig¬
which iron and steel accounted
ences of opinion.
tonshire, a modern continuous
nificant
thing now is/ that no for £281 millions and engineer¬
strip mill (mainly for tinplafe) at
country, whether it was of the ing,
shipbuilding and vehicles
so

blast furnaces, steel fur¬
and ex¬
tending
its
interests
into
the
process
or
the first fabrication
smaller finishing trades and into
Set Wng shall need to know how
road. We ?b,°,ut the ru'es of the
engineering and shipbuilding. Yet
arfn?otand make reasonably longtamty able to plan with any
to sustain this great island of free there are also
many medium-size
means, enterprise, and in that I include and even small plants, particu¬
as it has
always meant in the past
Canada, which has made vigorous larly. ih the finishing trades, and
a reduction in
production and an strides and
gone
much further in the production of special steels.
increase m unemployment.
forward and in greater confidence The .Census showed that out of
everv

unpleasantly called regimentation

housing, then we can meet these
tests.
•'
:'T'

men's business

young

full free flow of thought, that it
does not join in denouncing some¬

unless

order

try to see that it maintains the

to maintain
then increasingly
practices, special grants
in

spent

are

association is concerned, it should

I were a

maintenance of purchasing power
billion dollar budget—the
for my custmers. I would be in¬
questions of who pays and the
terested in what this government
question of for what purposes
is likely to do because I know that
those billions are spent. If they

this

of the future reside within the

As far

businessman I would be in¬
terested in study of fiscal and
monetary ideas that lead to the
young

forty

by tbe lack of full employment,
by the lack of adequate purchas¬
ing power.
As we stand today,
these three

need to be interested
be radical

in what may seem to
economic doctrine.
If

see

sues

Thursday, August 1, 1946

CHRONICLE

final

dustry shows how necessary it

ting out foreign goods, continued
to import increasing quantities of
foreign ores and even of pig iron
and
semi-finished
steel
goods,

adapting itself to meet changing

developing more in
coastal areas where imported ores
could be used in conjunction with
conditions by

coal.

Britain's

local

There is
plans for
building new mills, extending the
existing modern ones and Closing
production.

fact

that

the

and

in 1940) at
Shotton in Cheshire. Despite these
and other developments
(which
were of great importance in rearmament and war production)
mariy complaints continued to be

(completed

heard that the

cost of steel was

tinued to rise, even

the

another

kept artificially high through the
flexible approach.
Federation's "monopoly" and that
In 1870, Britain, which led the
rationalization was not proceed¬
world's industrial revolution in
ing swiftly enough.*
this as in other industries, was
The comprehensive plan pre¬
still producing almost half the
world output of pig iron and steel, sented by/the1 steel industry^ in
though facing increasing export its Report to the Government pays
difficulties through the raising of particular attention to the present
high tariff walls in competing and future location of the indus¬
countries. Britain, far from shut¬ try.
The various steel producing
to maintain

there

also

ownership, the central plan for
running the industry will aim at
increased production per man and
a careful readjustment to
world
conditions. The history of the in¬

organization

large-scale

South Wales

Ebbw Vale in

form

output

con¬

though,

as a

proportion of world output, it fell
almost 50% in 1870 to 10%
in 1913. After the last war, how¬

from

with tariff barriers abroad
increasing still higher and with
new producing countries extend¬
ing their output, it became clear
that Britain would have to adopt
ever,

have-

areas

The

Minister

become/

of Supply gave

the following figures in
of Commons on May

the House
27, 1946i

Taking 1930 as a basis, steel prices
rose from 98.7 in 1934 to 139.1 in
1938; Pig

iron rose from £3.2.6 a
in 1938;

ton in Jan. 1934 to £5.9.0

ship

from
£8.16.3 - to
soft basic billets from

plates

£11.8.0;

£5.12.6 to

£7.17.6. Motor manu¬

complained
that' the
price of steel for their cars had

facturers

risen 25%.
2A
report on the production of
foundry irons and on the iron-

industry is included
the-British industry separately in^trie;Repori.ife^^^l;

radical policy to maintain her po¬ founding

sition. First,

gradually

Number 164

Number; 4512

(THE COMMERCIAL & FINANCIAL CHRONICLE

^clearly marked not only > in their expansion -of about 40% of the
of

use

foreign

home

ore

and

have

grown

question of raw ma¬
the Report envisages a

terials,

them. Before the: war, the
Northr
.East Coast was the largest

pro¬ duction, 55% could be scrap, only
ducer of pig iron and ingot steel, 250,000 tons to be imported.■> This
.with large
^markets close at hand Would leave about 8,000,000 tons

the

shipbuilding and heavy
industries
of
the
neighborhood.
The South

of pig iron needed annually by the
industry,: and it is thought that

^engineering

almost all of this should be manu¬

Wales and Monmouth area came
next in steel production, and had
a

factured in Britain, since the cost

galvanized

sheets.

Lanarkshire

and the West of
rine

cost
considerations
show ' some / advantage
to steel
based on home ores; on the other

engineering and light casting
came
third.
Together

industry,
more

hand,

one

these three

for

On the

Britain than that of ore.

Scotland, which
shipbuilding, ma¬

the local

areas were responsible
than half of the steel out*

hand,

technical

exacting

factors (e.g.
demands on

the
the

put of Britain, Northamptonshire

steel used in the continuous strip

and Lincolnshire, working home
ores, have large new plants, the for¬
mer: being the center for the tube

mill) make it necessary to envis¬

manufacture.

creasing

extenton

imported

ore.

age certain types of steel
tion being developed to

The Sheffield dis¬
trict specializes in fine
steels; and
West Midlands serves
engineering
and small metal-goods industries.
Lancashire
and
Cheshire
have

home

the

omies

the

produc¬
an in¬

continuous bar mill at New Jarrow

the richer
However efficient
plants are made a
the ensuing econ¬

ore

limit is set

very effective finishing works in
vsheet
and
wire. manufactures.
West Cumberland produces
high-

cost

carriage

for

ore

maintenance of

the

permanent

substantial steel

industry's

detailed plan
Government has rec¬
"a sound basis for re¬

the

ognized

construction", links the question
of future location to
capacity, raw
material
and
full
employment

questions.

capacity,

put

for

export demand is
3,000,000 tons. Allowing

500,000 tons a year, capac¬
ity should be set at nearly 16,000,000 tons, an increase of !
850,000 tons from present capacity,
and

(In million tons)

and

rounds

DELIVERIES
Estimate

Average
1935-8

1946*

are

closely integrated plan of this
—

years

to be carried out in

demands

seven

strong central
organization, and the assumption
of the Report is that the Federa¬

now

—

12.6
2.2

$672,000,000 including 30,000
rolling mill plant costing
$36,000,000 to be bought from the
U. S. A. The Government, how¬
ever, while welcoming the plan
generally, expressed doubts as to
of

whether

the

override

individual

the

extent

further

STEEL

could

interests

required;

questioned

OF FINISHED

Federation

they

and

whether

the

(incl. Alloy)

March

7.3

Heavy Rails and Sleepers

April

Iron ore—domestic

12.3

imported

■

12.6
■

4.7

6.6

scrap

16.4

4.9

8.3

7.5

steel

0.2

32.8

30.6

'
1

''50.8
*'50.8'

bars

Ferroconcrete

8.3

32.3

0.4

Plates—Alloy
Other Heavy Steel Products (inc. shell
steel)pr_
Light Rolled Products (excl. wire rods and alloy

11.3

32.4

10.4

9.9

Bars

4.1

Cold Rolled Strip

(excl. alloy)
Bright Steel Bars (excl. alloy)

3.8

4.0

(Thousands tons)

Blast Furnace Capacity
Coastal districts
Midland orefields
Other inland districts
.

550

7,320
8,410

—

Midland orefields

3,050
1,660
1,125

1,890
3,800

2.7

14,100

CASTINGS

Other

Steel
Steel

2.4

1.9

0.4

Forgings—Non-Alloy
Forgings—Alloy

0.3

Steel

Castings—Non-Alloy

3.1

2.6

Steel

Castings—Alloy

0.7

0.5

216.9

201.4

16.3

16.8

200.6

184.6

Less

(incl.

Intra-Industry Conversion

„

Alloy)

Add Deliveries of Imported Finished Steel

•

-v-

1.0

BY PROCESS AND DISTRICT IN
APRIL, 1946

2.5

1.1

(Weekly Average In thousand tons)
Total

--—..'i*

TOTAL—DELIVERIES OF FINISHED STEEL.

200.6

184.3

Ingots

Open Hearth
District

Leicestershire^ BaSlC Bessemer EIecfcric

1. Derbyshire,

Nottinghamshire, North
mm4'

(other than 10),
Denbighshire, Flintshire and
Cheshire —)■ 0.4
3. Yorkshire
(other
than
5
and

9.6

•

1.1

ings

EMPLOYMENT IN METAL INDUSTRIES

10.6

0.3

10.9

Thousands

0.3

18.3

0.7

24.7
•,

■

0.1

24.6

0.2

24.8

2.4

48.5

0.5

Scotland:-.iiii»i£^*i^^i^;.i5.9

0.3

50.7

32.4

1.0

51.7

0.4

0.5

38.1

1.1

11.6

6.3
9.2

0.4

0.8

194-3

12.5

0.2

53.8

0.3

54.1

0.6

32.3

1.3

33.6

0.1

2.5

;

■:

3.7

6.2

0.1

,2,290
•

of whcih: on exports work—
Pig iron, steel melting and iron
puddling, iron & st'l rolling, tic.

! 2,717

24.3

:199.8

—25.0

199.8

steel ingots totalled

8.3 thousand.1

3 17.6
,

18.9

;

7.7 ;
9.3:

2.7- 246.3
2.7

*249.4

5.8

255.7

tAjUoy. jsteel casting totalled l.Qi %vusanti."
_

4. Iron and steel tube,

252.1..

melting and wire

*•

"'v.

—

.5,General engineering, engineers1irori iand Sceel founding,
-C<-W-.-3

and

ore,

which

those

omitted

were

coke
from

nationalization

by firm, in conindustry, to
the exact boundary to

decide on
be drawn,

the

si 1

The same principle will

ap¬

plied to iron foundries manufac¬
turing iron castings. A large part
of this industry is closely asso¬
ciated
with
engineering,
and
should be left in private owner¬

ship, but spun pipe foundries, for
example, being invariably in asso¬
ciation with blast furnaces, would
under public

come

ownership.

While legislation is being pre¬

pared to carry out these proposals,
the Government are anxious that
should

schemes

modernization

proceed smoothly and rapidly, and
that

production

the

present

record rate should not be inter¬

rupted. Accordingly they are set¬
ting up a Control Board "to see
that the industry is carried on'*
and to take

over

the functions so

performed by the Iron and
Steel Control. Representatives of
management and labor will be in¬
vited to serve on the Board, which
will not plan nationalization but
deal for a limited period with
immediate problems. All expen¬
diture
on
re-equipment during
this interim period will receive
"proper allowance" in assessing
the final compensation to be paid
far

after nationalization..

2,375
.

794

3,169

3,828

■

impossible at this stage to
what proportion of the
iron and steel industry will be
nationalized, but the following
figures from the 1935 Census of
Production give some rough idea"

695

_170i.

-19L

191

705

5 The Report

estimates that half

^f the cost could be met from

and that
insuperable

£^4 12:::

own

culty in securing the
nance required."
'3?

resources,

"should

wire, wire

rope

coal

with

i 176
—

.March, 1946

2,578
1,250

427

3.,Tinplate

6.3

from

It is

—

Itv Total

separated

estimate

Females

(Basic)
4.3

Males

;

(Acid)

10. North-West Coast

?: *Alloy

11.7

0.6

19.4

—

v'■

0.5

4.4

42.7

9. Sheffield

Total

March

1945

vehicles, aircraft & shipbuilding:

39.2

wickshire

June

1939

19.0

1. Metals, metal goods, engineering,

8. South Wales and Monmouthshire

0.2

0.3

7. Staffordshire, Shropshire
Worcestershire
and
War-i
»

Cast¬

5. North East Coast

•

^'cast-

Other Ingots ings

June

18.0

4. Lincolnshire
6.

includes finished steel produced in the U. K. from
imported ingots
and semi-finished steel.
1
-

and

(Basic)

amptonshire and Essex
2. Lancashire

All

sultation

3.3

2.8

cannot

field will be reviewed section by

2.5

3.4

—

5,835

/^•PRODUCTION OF STEEL INGOTS AND

2.3

2.8

TOTAL—U. K. PRODUCTION*
Total

8.4

Drop Forgings—Alloy

Other

Other inland districts

0.1

—_

Alloy Bars, Sheets, Strip and Wire
Steel Tyres, Wheels and Axles
Steel Drop
Forgings—Non-Alloy J

4,750

0.1
9.6

Mild Steel Wire (excl. alloy)
Hard Steel Wire (excl. alloy)

Steel

;

Total

Steel Ingot Capacity
Coastal districts

2,750
1,450

13.5

—

Increase

4,700
1,820

to be built

9.6

15.2

W. I. and Steel Tubes, Pipes and Fittings—Non-Alloy
Steel Tubes, Pipes and Fittings—Alloy

New Capacity Percentage

1945

20.6

11.2

Net

Capacity

4.0

23.4

CAPACITY PLANS

the basic proces¬

section and firm

461

3.6

over

plan as
being associated with steel-works.
They will nationalize the manu¬
facture of pig iron and of steel,
ingots from pig iron and scrap.
With this they must Include the
primary or heavy rolling sections
of the industry, since steel smelt¬
ing and primary rolling are es¬
sentially one industry, operating
a continuous process. For further
finishing operations, the test will
be whether they are so closely
integrated with the actual iron
and steel making as to be vir¬
tually one process.
Where they
clearly are, the whole plant will
be nationalized. In other cases, the

The total cost of re-equipment is

3.5

—

Steel-making

the

1946

15.0

2.5

to take

ovens

set at

Product

Consumption:

ing

tion would have enough authority
over its members to
carry it out.

tons

the

them, leaving all separable finish¬
ing and dependent industries in
private ownership. Accordingly,
the Government propose to na¬
tionalize the mining and quarry¬

(Weekly Average in thousand tons)

1950-55

11.3

Iron castings.

kind

and all those further processes

which

Nationalization

U.K. Production (incl. material for further conversion)*

Ingot steel

ses

Average

Production:

;Pig iron

was

000.

will be the nucleus around which

INDUSTRY'S PRODUCTION PLANS

re-equipment is to cost $252,000,-

IV. Partial

industry and of .:
In deciding what to
nationalize, the guiding principle

blast

area,

fluctuations, and for imports

replacement

New

1939, out of a total ingot pro¬
of 2,860,000 tons in this
plates.
As part of a long-term
over two millions were re¬ plan to make the sheet and rerollquired for tinplate and sheets. The ing industries of Scotland self-con¬
existing modern plant at Ebbw tained, a new plant will be built
Vale, with a capacity to produce to include, in its initial stage, a
600,000 tons of hot rolled strip modern
continuous
billet
and
will
be
extended
and
supple¬ sheet bar mill and a 4-high plate
mented by a new plant at Port mill to roll all the
light plate pro¬
Talbot, total capacity to be 1,650,- duced in Scotland. This new plant

while

involving

tons.

duction

of about

and

2,300,000

blooms

interests

the public."

to be increased almost 60%. Total

manufactured, are to have their
furnaces completely rebuilt and
will then be the only producer of
the largest sizes of commercial

(a) South Wales:

con¬

sumption will have reached ap¬
proximately 13,000,000 ingot tons
year,

re-rolling both locally

elsewhere
in the
country.
Production from Midland ores is

pig iron. The Dalzell works, where
special quality steel and large sizes

supplement modern
supersede obsolete works, a

billets for

are to be built to make
Scotland independent of imported

esti¬

mates that by 1950-55 home

about

lightly, said Mr. Wilmot.
general principle was ac¬
cepted by the electorate, and the
detailed plan was arrived at "after
close and earnest study, in the
conviction that it was in the best

and

furnaces

further

The

The decision to hatiohalize was

very strong emphasis being laid
on
the increased production of

the

million tons of
home ore a year. With these prem¬
ises, the Report outlines a de¬
tailed program which includes the
following points:
yond

proposed
and

Capacity is to be increased from
pre-war
2,000,000 tons to

The Report concludes
that steel output on a home ore
basis should not be extended be¬

not taken

nage.

industry.

m. The Industry's Plan

The

developments

steel

plants to supply the required ton¬
A variety of other plans are

window section

new

Darlington.
Total
reequipment, including moderniza¬
tion of foreign ore
reception and
treatment, concentration of exist¬
ing plants into fewer but larger
ones, etc., will cost $140,000,000.

disproportionate; and in addition
a limit to the quantity of

suitable

and the

mill

there is

grade acid steel.

which

future

Scottish

Of imports from abroad will no
longer be economic.
■
The question of coal, as a loca¬
tion factor, is less complicated for

large proportion of the
finishing trade in tinplates and
very

serve

the

635

of the necessary finance could be raised.3
industry will be Above all, with steel such a vital
Newport.^ With: many planned. "Detailed plans fof * con¬
part of the economy, the Govern¬
other additions, the total
capacity struction of many other .types of ment
argued that complete con¬
of South Wales will become
3,~ plant, and in particular of large- trol sover: itlcould
not he left to
900,000 tons, of which 650,000 tons
capacity electric furnaces for Ad¬ a private-enterprise, body without
will gradually become
surplus.
miralty heavy armor, are under
monopoly dangers arising, and for
way. Total expenditures will be these reasons it was
necessary to
(b) North-East Coast:
ir
about $116,000,000.
;:
take at least part of the
industry
This area
has a
capacity at
into public ownership.
present of about 3,000,000 ingot (d) Midland
andl:
North - West
The difficulty was where to
..v
England: ^
tons, equivalent to about 22% of
draw the line, and opponents; of
the industry. The most striking
The capacity of the modern nationalization
argued that With
new project is for the erection of
continuous rolling mill at Shotton an industry of such complexity,
a
modern
universal beam
mill is to be extended to
any separation into some public
500,000 tons
(the first in Britain),* complete of sheet a year, with a
heavy pro¬ and some private.' ownership
with the necessary
steel-making portion of scrap being used in¬ would be artificial and unworka¬
furnaces and with a capacity of stead of the
present high propor¬ ble. Mr. John Wilmot (Minister of
375,000 tons.
The cost will be tion
of
pig iron made
from Supply), whose Ministry has gen¬
$32,000,000. A modern continuous domestic ore. To make Britain eral
responsibility for the metal
billet mill will also be installed
self-supporting in wire rods and and engineering industries, an¬
to provide the main bulk of the rod
billets, two continuous wire nounced the Government's pro¬
total billet requirements of this rod mills are to
be built in Lan¬ posals for solving this problem in
area, including the maintenance
cashire, and a continuous billet a House of Commons Debate on
at full capacity of the modern mill
will, be built in one of .these May 27-28,

Vale. and

the

much higher use of home scrap.
On a basis of 15,000,000 tons pror

around

a year. New cold reduc¬
tion plants will be built at Ebbw

industry.4

scrap, but in the relation of their
end
products to the industries

.which

000 tons

its

there
diffi- -i

further fi¬

l-jC'Cp

of the-size of the various

sections

dustry is to be i drastically reor¬

Of the industry.

ganized
APPENDIX—STATISTICS
-

April.

-v

4 1938

Iron Ores,

i♦Erodttctlon

4taiports

5Consumption

■

0.39

W i6.14

0.63

Imports

„

Steel:'

0.19

;'. 8.22:

7.94
40,61

;

■

Production of Ingots and : steel '

ci9.lt

13.6#

Trade#^?:^.?:? *: :v

■£

Imports
and

steel

manufactures

;

<■'. ■"■':•-:'"1
0.36(?)
0,60

1.34

Eports of - ditto
ferrous

4 *The

.Si

""*3

and

thereof
,

■

iron

-1
•:

^.for^icastingsi-lO^

tS9(?)

1.92

oontent'

home

'3.07
ore

About 30%.

these

three

sec¬

(£ 162,000,000), which will
taken into public ownership
together with
some
undefined
tions
be

part

the remaining

sections,

may be compared with a gross
output of £280.6 millions for the;
entire iron and steel industry, and

with

output of £491 mil¬
lions, for the engineering,- ship¬
building and vehicle industries. a

plan, they argue, needs more than
the

authority of a private Federa¬
realized quickly
not at the pace- dictated by

tion if it is to be
and

readily Ignore.
Thdeed ^the whole success of vthe

Government's

gross

London's Financial Leadeiship?
.

efficiency of production in differ¬
ent

It will

areas,

Committee

Executive

the British Iron and Steel Federa¬

tion and a member of Parliament

(he vwasformerly ^Minister of
Supply) made what is : generally
-Perhaps the most perplexing
agreed to have been the most
forceful speech against the Gov¬ problem presented by the Gov¬
ernment decision is the relation¬
ernment's proposals during
the
Debate in the House of Commons. ship between "non-basic" sections
left in private hands and similar
He said that since the

industry'^

before

needed

abroad

soon

time

sectiQn#haHohilizedbecause they

effect to its

which

legislation
decision, and-there is

compares

tons in 1939 and

1935.

with ">7,956,000
6,448,000 tons in

;

The

export
position is also
flourishing. Exports of "iron and
steel and manufactures thereof" in

of the 500 in the steel industry privately-owned sections of the est importer of iron and steel
from Britain was South
know "whether they are partly in, industry will not be "penalized." goods
The -Government has
promised Africa, followed in order by Den¬
fully
in
or
out
altogether."
them adequate capital at "little
mark, the Netherlands, India, Iran
Another point made-was that na¬
tional ownership could not in this abpye the. gilt-edged rate." Second, and Egypt.
the
Government
intends
that
case improve efficiency, which is
The outlook is very good, too,
when
the f boundary
lines are in the labor relations field. Apart
the only valid criterion, and would
indeed hamper it since the essence finally drawn, the criterion used -from-the /General -Strike Of 1926,
will be a stricpy utilitarian one".
of this intensely varied industry
there have been no serious dis¬
The field will be surveyed "sec¬
was
flexibility of management.
putes in the industry since 1905,
tion by section and firm by firm"
The, attempt to define the* bound¬
and this(long tradition Of peace¬
to make sure that the plan will
aries of public and private owner¬
ful relations is certain to be of
work; and the "Economist" con¬
ship, said the Federation of Brit¬
help/ The Government's plans will
cedes that, given the decision to
ish Industries in a ^public / state¬
have
to
take account
of the
nationalize, the limits already laid
ment, "is bound to result in flex¬
doWn
"are
not
unreasonable." special wage system that pre¬
ibility being replaced by rigidity,
vailed in the industry before the
the acknowledged enemy of all Third, it is not suggested that
truncated sections of the industry war, "where, wages, mostly pieceprogress."
leftdn private hands should strug¬ rates, depended on sliding-scales
lit .'i#also argued ;tlmt delays in
gle along as best they can in that .based on thei selling-pf^es^^^
urgently needed construction are
form. It is quite possible that
bound to' result from the Govern¬
products concerned. These sellingwhen the demarcation lines have
ment's decision, since the large
prices were worked out periodi¬
been drawn, the non-nationalized
vertical r organizations, who are
sections will themselves integrate cally (i.e. monthly, bi-m^t^y pr

certain

involved

least

partially in nationalization would
hesitate to embark in

new

expen¬

diture. The Government's promise
of fa proper allowance" for this

expenditure in assessing'

compen¬

sation is held to be too vague to
encourage the firms to go

ahead

With their plans.

that

been

the

„.

116.0

413.5

405.6

853.6

51.7

167.9

8.05.

270.8

330.3

4.71

376.0

258.9

10.99

5.01

215.8

205.0

Canada gw

7.12

0.52

192.4

Finland

1.46

6.11

.28.0

state-subsidized)

private>monop> Australia—14.24

tion tof

the i tariff

the

1930's

('.'higher -prices t and
highe r
profits") must prevent giving the
industry '$■ a- free hand now have
suggested that Government super¬
vision,
;

13.06

28.55

0.67..

19.26

S. Rhodesia

dangers of a
(and r therefore

©ly outweigh in -seriousness-any
delays or temporary uncertainty
that imay follow theipresenti^dr
mittedly
complicated i proposals.
Some who admit that the'history
of the industry since the introduc¬

even

"control"

(as dis-

Br. India

3.02

6.79

13.22

^—

N. Zealand

Norway J

freedom

found their way back

in the trading

Markets lost?

activity, the pound ster¬
ling has held its value the best of
any currency in the world for the
longest period of time. These con¬
ditions are the very ' essentials
of
confidence
,and j productive
trade. Many countries found
it advantageous to keep balances
in London and meet their obliga¬

nomic
the

any

The Sterling Area and

leader

haven

world

finance

are,

to say nothing
dred years ago. But

the safe?/

of one hun¬
with the ad-^

vent of the Atomic Bonib
any

other

for

the

bankers'

place-on

of
inter¬

storehouse-

world's

is there-

earth safer

balances

and

national claims? The pound

currency.

the modern

they were pvem a -dPcade

ago,

stated currency value or
Sterling became
international

some

The British Isles are hot

its. equivalent.
the

respects badly bent, but
the situation ia far* from hopeless.
in

ing instead of their own currency

thus

•

present time the eco-s
forces that made London

the

Sterl¬

tions to other countries in

SterI-3

has been devalued for. all
practical purposes to half its pre-

ing

Sterling bloc naturally grew out
of
these
united
advantages. It
was because of these working con¬
ditions of free markets and the

world.war^ value apdvthehKances
of it returning again to that old
and <weiLe$tablished value seem
most remote. The soundness of the

management that always made it

possible-to get funds that enabled British credit between the two
London with a small gold reserve Wars and the record for meeting
to handle so much- of the "world's long term indebtedness are not the
'■ • "S
commerced As a consequence trade best.
But in ^pite of all of these, un¬
and finance centered in London.
,

■

The

markets

for

raw

materials]

favorable- factors the world still

Belgium -—™^—.

277.5
839.4

world to London; In most

-6.10

15.2

274.5

414.3

hnd

—'
-

normal

don money

88.1

0.64
* 1.14

5
.

2.87
—1.42

:159.66

,4.46

3.53

4287
1141

138,2

li,09|

198.8

>21.8

•344.7

14.61

i>34.2
M52.61

113.1

1113.6
298.5

5;28

>37.6

177.7

887

-143,9

'4 297,4

the London

money

105.6

^1^9

strength. supporting

market.,.as., a center Tor.
world finmcial exchanges..^Eog*
great advantages because of,ihq
land has *never devalued / until
magnet rof London for • inter¬
national business transactions of compelled to do so. Interest is stilL
kll, kinds., It hroughjk a ^nstant p^id oh jDank'deposit# ingLoJ^Ott
floW Of funds from the rest of the but hot in iHeweYork/The^market?

J 31.0

1.12

AIL Countries.

33.0

194.5

•

recognized and widely acclaimed
that /London and England had

-#13013.25

France

—

copper,

-0.21

Poland
Netherlands

Portugal
Turkey
Egypt

silver,

the markets for (gold and

11.45

Argentina6,61

lead to the firmly executed

addition to this

24.72

the * need;

never

market

1.69

Brazil

but , the reply is made
to this that mere "control" could

London

Forces Holding

"1.21

Denmark——;—

tinct from ownership) would meet
.,

evidences that

state-protected

are

clings to Sterling as the .inter¬
lend and .zinc and a great national medium of exchange, and
Variety of continental and ipterr it is probably, true that twb:4thirds
national markets grew up with the of the international trade trans->
London money market, either in actions
jtp j this/ day dpne to
(London or in Liverpool readily Sterling^ Tfea growth pL the^ Sterl¬
accessable to London.
ing bloc. certainly proves ;-that
into larger
and more efficient quarterly)
by
accountants ap¬
small countries see a great ad¬
i
The securities of all countries
units. "It would be strange," says pointed by i)bth %ide#:of the^ in¬
found a ready market in London vantage „in. having .their curren¬
the "Manchester - Guardian", -"if
dustry, and wages adjusted ac- and the London exchanges became cies convertible into some cur¬
the international capital markets rency medium such as/ Sterling
MAIN REPORT OF IRON AND STEEL GOODS
Which isiwidely -acceptable. This
of the world. As these markets
■•Value (thou. £'s)
Quantity (thou. tons)
force and
this mechanism has
jgrew, funds flowedi into -London
demonstrated its usefullness and it
To
Month 1938
Month 1938
May 1946
May 1946
from all parts of the world. More
2678
Eire
116.0
"
is and will remain a bulwark of
4.64
"
7.31
than one hundred years ago it was

In support of the Government's Palestine
decision; the mainargument heard S. Africa

has

But there

introduce

plan had met with no serious
are part of a; closely integrated
May, 1946, totalled, 255,513 tons,
criticism, they should be allowed
to put it into effect. As it was, un¬ plant. It is too early to pass judg¬ compared with a monthly aver¬
certainty would be crippling. No ment, but a few suggestive points age of 159,656 tons in 1938. In the
have already been made. First,
first five months of 1946, the larg¬
more than half a dozen firms out

outlet. The investments

seem

ready adequate for conclusive answers.

considerable

the Government is

in the
London Leadership securities markets, and the inter-'
est and dividend incomes-More-'
For the most part the London
no reason to fear that during this
over
the - borrowing
countries
period production will not con¬ money market and - investment
maintained balances in London^
tinue at the present record rate. markets have always been r, free
and the jntertiationakdj^itrage be-5
Output of steel ingots and castings markets. Any country and any in¬
tween jLohdoir /arid ^oreigr^^thar-^
in May, 1946, was at an annual vestor could get: his money, sell
kets drew funds to London.?/
rate of 13,619,000 tons, which com¬ his securities, and use his funds
pares with a previous high record when and where he pleased. Per¬
couragement", a failure which of 13,208,000 tons in 1939, and haps the restrictions on sterling Has London Lost Leadership fat
International Finance? t
made nationalization in the inter¬ With
9,880,000 tons to T935. Big today are the most extreme wit¬
ests of efficiency much more ac¬ iron
Have these conditions changed?:
production in May was at a nessed by the London money mar¬
ceptable to the public.
rate
of
7,860,000 tons a year, kets in a century in peace time. What has England or the London,
.

the

Will New Yoik Take

plan ' will largely
whether the industry
will adjust itself to the proposals
i pfoachI. (at> least
on: paper)f-.not ahddielp to makeHh^n',workMIh
though opposition:; to na¬
everyone agrees that the decisions coal,
(Continued from first page)
outlined there on plant location tionalization was strong among
There are many other factor#
the-seappwer; and apparently >the
the owners, the leading experts
are ideal from the national point
growth and management of British which are not »easy> to appraised
haverallied to ^ihake the plan a
of view. Some maintain, for ex¬
commerce and finance from that
They iriclhdeithe safety and^profc-5
ample, 'that it might be better to success, and the same may be time on
gave them the leading taction -0| the British navy; the
true of iron and steel. It is natural
bring labor to new Midland plants
position in .the world of trade>and jlow^oceanvfreight^^ ahd/inimrahee
instead of extending plants: on that in the early "stages tmcer^
finance. Just What enabled Eng¬ eharges,;'and a professional ^busi-»
such a vast scale in the Develop¬ tainty should persist; but some of
land :fio! hold this i position - of ness attitude on the part of these
ment Areas. Others throw doubt the maj of*plans-r^for example* #he
leadership in international finance agencies^and the* banks. In addi-from
a
different angle on the new universal beam mill of Dortion
so long? And just what are thq
Epglish investors -were
ultimate efficiency of the regional man Long in the North-East—
causes
of this leadership being pioneers in foreign investments
grouping by product which is im¬ are already going forward,-and it
lost by London at *the. pretsent and ; willing to > take-j chance# • toi
plicit in 4he industry's ^)lan^ This is dhite" possible that delays in
time? Is New York prepared to build up the - capitals of other
is not to say that the Government buying some of the needed equip¬
take up this leadership of the countries. British foreign; invest¬
wiliNecessarily* take NetterMeci-; ment from the United States may
were : not 'necessarily ;:n
world's financial markets? None ments
sions; buLit is argued that the prove a more serious obstacle than
idrain oh the domestic capital mar>
Government will be free to take the present uncertainty in the of these questions can be answered
ikets. The> abundance of savings
minds of some of the owners.
spedfically \vith a few: sentences;
a more objective view of the true
depend

without being bound
in any way by existing interests.
Having taken
decisions, which
may involve movements of popu¬
V. Will It Work?
lation and other radical steps, the
The Government's decision-has
Government, it is said, will be
met with sharp opposition from a
more able to carry them out.
The
large section of the Press as well proponentsT©ftthis wiewipoint?ftp
as
fro m
industry itself.
Sir the failure of coal "amalgama-i
Andrew Duncan, who is Chairman
tions"
under Government
"en¬
of

industry iwill >not

tunities uthat

total

.' The

■

In this connection, a further
technieal^point ^arises^while^ dhe
>4/ ; industry's plan .has -been recog; nized as
reflecting a unified 'ap-

#;83

7.73

Scrap:
-

completely

-made

private/interests.

6.00

;

' 6.76

Production

-12,66

5.10

.Imports
-

-May
1948

"*i946

11.86<

and

efficient.,Even the industry's own

,lJ.K.; Iron »iid -Steel Industry sr Summary
(At annual rates, in million tons)

tftitirtdky^August'lfttMS'

j cordingly. There-5 has • been ^.nq ^ahsBritishlrdn ^and ^stee^:
'[ indication .yet 'of: what plan the WJiferi ^they = ar elfihMly/ deyelbped^'
Govofnnion^qw^d
ionk Will^^prOve lo vbdliased |6ri wbrkable^
would put fprward^for Wages jfbut practice,1 and . not: ♦ on-abstract
?■ the ^Gdverrim^ntf^
lead to new mergers and integra¬ it m ay>: be guessed that a / guar- ideology; Britain is gbing through
sy s t e m
will be a > great "shaking-up"; in many
tion in the section left in private anteed-wage
: haads^
"The^ery wide bod waned adopted^ as it has^Already'>in the -fields; arid though it* is somewhat
uncomfortable - while^ it lasts,>;the
i field left to private enterprise— engineering and some other in^
1 o n g - tradition
dustries.
of :^ democratic
: in product#swhere?Britiiir is still
!
Taking a long view, then; it can thinking and * industrial skill
rto a<tomwledgedTeade£iby Qual¬
ity and efficiency—offers oppor¬ be hoped that; the nationalization comfortihg^fdr-the

planning that is absolutely^essen¬
tiala if the basic /part of the in¬

^/(Continued from page 635)

•"'i *>;«$

JHECOMMERCIAL& FINANCIAL CHRONICLE

636

timesvit was desirable for-the Lon¬

market; to use ways
to expel gold - from
London rqther .than^attract gold
because excessive speculation^ and
rising prices resulting from excess
money "werev - adverse > factors*
Stable supply of liquid assets and
stable or declining-prices (slowly)
means

wereinpre faypmble^io,,^
ume ' and
confidence' fromi

other

.,25581
-ri,
/-v

•:

;'i.

vi'-v:

pill# ito
LD&oiri4#vffee and open.',Even.
fpr shorti term -bankers;'
gold and:

jdlver/aretodlAboughL

and.so^d.in.affee'naarket'^ih0LDn-»,
dohf, and, these ire' nbw .almost/as /
forgotten. as;;the; old. time arbi-/
triages
that England; owes some $15 billions inr Sterling io:the rest of the::
world - which

she. cannpt;:' pay pn s,

demand.;; But"".this " is; a
created:, problem

-and

no # doubt

will be handled by some

■K-y,-:

>warr

refund-

{Number 164

Number 4512

THE COMMERCIAL & FINANCIAL
CHRONICLE

ing and financial arrangements.
This problem is solvable..
The confidence in London as a

tyiU; not devalue the dollar unless

Trieste into the Soviet bloc. And the UN
is, or will be, troubled, be¬
extremes by; un- v cause Trieste's; internationalization and the
keeping' of the peace,
surmountable barriers? Can for¬ will be left to the aegis of the now unforeseeable UN
forced to .such

eign governments and traders get
small

Labor

return

their

balances

Government than by the
problems growing out of the nyar.

comparable with
London and lesser merkets? Is the

When the Bank pf England is no
longer a free agent, and there is

market for short term bills in New

talk

government taking
the coal and steel industries

the

reducing international trade

the

over

and
to

tions,
to

free

controlled

markets

exist.

These

petition from any other market
^

do;

ever

The

shipping trade and the inservices will probably re¬

surance

main the best and

world

and

these

cheapest in the
are
important

trading

the world

disclose

long

centers for

way

that New

York is

from having the quali¬

ties that made London the World's

international

many

financial capital.

While London is
losing many of the necessary es¬
sential qualities for the World's

products.
At present London is not the
free money
market, the free mar¬
ket for investment and

financial

speculative
trade center

capital, New York is not
making £r great - progress toward
supplying itself with these quali¬

only

ties. The skilled' personnel in for¬

capital, or the free
for commodities that it
a few
years back.

was

eign trade, foreign exchange and
other matters necessary to sup¬
plant London as a financial center

The financial gains from these
free and dependable markets
have
been countless billions. The losses
can

not be measured

New

York

are

World's

Out

Does New York have what Lon¬
as

qualifications for

Where

regulated

are

our

free

tariffs

t _y.'./•

Italy, in the practical extinction of her Navy, will be
peace of the world.
And it must be realized that
"fully equipped, and in operational condition," are
over to the UN, where they might have
been of

■

disastrous for the
the Italian ship3,

not to be handed
constructive

and

had

Tragically, this "best" Italian treaty looks like the firebrand of
*

One

way toward

trade

and

the

alarming results of recent
the Continent is the stimula¬

(Continued from page 606)

aging
per

observance

events.

All

these

unceasingly discour¬
which adds up to a 100

cent minus sign for

the future of UN. Per¬

The Atom Still

most

cntributions

War.
his

•

Added

personal

this

their

glandular

this

the

should

score

last week

American

the Russian

gripe

was

greatly diminished by the newest and
amazing display of Soviet irrational intransigeance.

The

control plan made substantial concessions to
demands, including our wholly gratuitous and purely un¬

selfish offer to give up exclusive possession of the most decisive mil¬

against keeping personally sub¬
merged and
without a
"good
scrap."
'
>;

itary
give

in history. For her part, the Russians being asked to
absolutely nothing. Nevertheless they are seeing fit to oppose

weapon

■

the creation of

Although the fiery Evatt will
no
doubt play the 1919 role of
Eleutherios

Venizelos

conference, he will by
perform it solo.

Other

at
no

this

means

highly

ex¬

plosive unreconstructed rebels
the present scene
Herbert Vere Evatt

Tsaldaris

are

Constantin

Greece, Edward
Yugoslavia, and of

Kardelj of
particular impor lance

{.
'
Romolo of the

James F. Byrnes

General

Philippines, who has demonstrated

and oratory so

Interna.ional Atomic Development

Authority; and
they are insisting more strongly than ever on their irrational and
arbitrary right to veto international action which may be ordered by
such Authority or by the Security Council, whether to punish unlaw¬
ful activities or even to investigate whether such activities are going
on. While professing gestures of international cooperation, the Rus¬
sians are insisting that there be no international control over them¬
selves—regarding an invaluable weapon, whose know-how they simul¬
taneously demand be donated to them forthwith. Surely a Wholly im¬
possible position in a civilized world! !
an

B. H. Griswold, Jr. Dies
Tuesday, by Mr. Byrnes, a two-thirds
Benjamin Howell Griswold, Jr.,
vote will be
required to upset a Big Four decision. Since the votes of senior partner in Alex. Brown &
the
Moscow
satellites—Poland, Yugoslavia, Czechoslovakia, the
Sons, Baltimore, Md., died at his
Ukraine, and White Russia-—will be
certain.

be most

difficult

urged

effect.

included, such

The

small

nations

can

reversal will
protest, argue,

get fillibuster-ish, and propose
amendments, to their hearts' content;
but in the end they will
merely be supporting one or another of the
Great Powers.
In some
cases, of course—for example where Great
Britain has been dissatisfied with the
existing tentative agreements—
such protests will be strongly welcomed on

home at the age of 72.
Mr. Gris¬
wold was a member of the board

of trustees of Johns Hopkins Uni¬

the receiving end.

versity from which he
ated
as

was

gradu¬

1894, and in 1940 served
general chairman of the war

National Association of Securities

Dealers, Inc.

from

•

The Italian Firebrand
The clearest support for pessimism
furnished by the fact that priority of

about Conference results is
consideration was awarded to

the Italian treaty on the ground of its
being the least controversial.
;~For apart from its demerits, the agreement
pleases no one. In the
case of its Trieste
"arrangement," the Yugoslavs are professing at

least

much, resentment as the abused Italians. The Western Powers

fundamentally dissatisfied with the compromise, because" of their
Visceral expectation, that there eventually will be
absorption of
are

activities

have

been

mainly

con¬

nected with the sales department.

Mr.

was
recently
of
the
Bond

Coggeshall

elected

Club

President

Mr. Woods

of New York.

originally became associated with
Harris, Forbes & Co. in 1918 and

later, the Chase Harris-Forbes
Corporation, joining The First
Boston Corporation in 1934.
His
duties have been primarily in the
buying department.
During- the
war

Mr, Woods served as Colonel

the Staff of the Commanding

General, Army Service Forces.

Lanston,

Aubrey

The

Vice

First

Boston

Corporation, and Hugh D. MacBain, up to now a Vice President
Securities

Corporation,
the

members

elected

directors

The

Tuesday.

Committee

Executive

in¬

now

Allan M. Pope, President
First Boston Corporation,

cludes
of

the

Jr.,

Coggeshall,
Nevil

Eugene

Co-

Duncan

Ford,

William , H. Potter, Jr.
and George D. Woods, in addition
Linsley,
to

the

members.

two new

Elected

The

Presidents

Vice

Hugh

Corporation

Boston

First

were

D. MacBain, A.
George J. Gillies,

S.
H. M. Jorgensen, all of whom have been
Vice
Presidents of Mellon See
Brushaber,

Davidson Herron, and

curities Corporation.
The offices of The First Boston

Buffalo, Chicago, Cleveland, Hart¬

Providence,

Philadelphia,

ford,

Rutland, Vermont; San Francisco,

Springfield, Mass., and Washing¬
ton, d. c.
; '
Both The First Boston Corpora¬
tion

Securities

Mellon

and

Cor¬

have been leaders for
years in the aggregate an¬

poration
many

nual

amount of

The

written.

securities under¬

First

Cor¬

Boston

poration's trading division is one
of the largest in the field.
The
merged corporation will maintain
complete
trading
facilities
in
United

Government

States

municioal

securities;

and

public util¬

ity, railroad and industrial bonds,
notes and;{preferred arid common
stocks; foreign bonds; bank and
insurance

stocks,

company

and

acceptances.

Pittsburgh offices of the
merged corporation will occupy
quarters formerly used by the
Mellon
Securities
Corporation.
Mellon
Securities
Corporation's
New

Transfer Ships to China
It

ize

advices

the; transfer .of

small naval ships

that

country

transfer,

271 surplus
to China to help

start

said

the

become

Corpora¬

of the code committee of the In-;

ditions

vestment Bankers Association un-^

President.

Conference,
Inc.
from
1936
through 1939 and chairman of the

but no

laid

The

New York Stock Exchange

Weekly Firm Changes
The New York Stock Exchange
has announced the following firm

changes:

Associated

Press, is to be made under
be

The

navy.

Maryland Committee of Economic
Development.
He was chairman

has

office

fund

war

York

part of The First Boston
tion's New York office.

stated

Washington
July 16 that
President Truman had signed a
bill passed by Congress to author¬
was

Press

relief

campaign of the Red
Maryland.
During the
was
chairman of the

through

1939

1942.

Cross

joined a pre¬
firm, as a securities
salesman, in Boston in 1919. His

The

less

Coggeshall

bankers

his independence

brilliantly in this country.
While the volume of verbiage from these minority personal¬
ities. is assured, thenet effect thereof
on Conference decisions is
*

Mr.

decessor

York

Despite all the fanfare about the Paris meeting, the rift over atom
should- v still: be; conridered of
primary importance rfc unfoiv
tunately.
"Unfortunately" because the chance for world salvation

respective

Corporation or its
predecessors since first entering
the investment banking business.

Corporation are in Boston, New
and Pittsburgh as well -as

Overshadowing

control

proportion

less enthusiasm for UN in

size

a partial explanation for Sec¬
retary General Lie's recent report that there is
Europe than here.

Trygve Lie

stooge; and in opposition to allocuting prestige to countries in
the

The

Boston

First

well,

mere

capital.

ma*n "gripes" will be against making a rubber stamp
Conference; against casting the small nations in the role of

They

with

associated

been

Harry M. Addinsell, Chairman;**
the Executive Committee, James

antagonism to detachment of the Ruhr; in Italy
because of the unfair deal she is getting; in China,
Poland, Bolivia, and Chile, by the racing inter¬
nal struggles and in all other countries by the

open

A?va^'s

of the

have

has raged unabated since V-E Day .15 months ago.
In France nationalism is stimulated by Russia's

Observations
J-

new

being given to intensified nationalism, and
isolationism—even
among
European
countries
This trend is being actively stimulated by the
seemingly hopeless struggle over Germany, which

haps this furnishes

Committee.

Executive

the

ing

most
on

the

Executive Committee at the meet¬

tion

becoming the world's

financial

political events

elected

were

of Mellon

Growing Nationalism

to the entire world New York has
the "raw materials" to
go a long

payable in dollars against
balances held in New York? Does

Woods

positions of Executive Vice Pres¬
idents of the corporation.
Both
men, whose headquarters are in
the New York office, 100 Broad¬
way, have served The First Bos¬
ton Corporation as vice presi¬
dents, directors and members of

were

insurance

pendable monetary practices

(Cntinued from page 619)
preparatory to the merger, James
Coggeshall, Jr. and George D.

President

World War Three!

reduce

anywhere

Merger Effective Today

use,

Governor

world, and with financial
leadership in restoring and de¬
veloping free markets in foreign
exchange, capital markets, securi¬
ties arbitrage, and sound and de¬

raw ma¬

that

the face of the ominous Yugoslav threat, the disarmament of

the

bills

prevail

chance?

provide the best and

cheapest shipping

mand the confidence of the
world
and do other countries
draw their

confidence

and

services

terials and commodities of
world
commerce? Does the dollar com¬

the

ship to end subsidies and

gov¬

markets

in the field of human rights and civil
liberties, which are
supposedly being "guaranteed" to her citizens:—who is coming to the
aid of the Italian people for these noble ends? The Soviet
Union, by

trade in the future as they have
in the past. With business leader¬

business?

Sold, silver and the many

Likewise

nancial markets will follow world

the investment of American
funds
abroad

rapidly becoming

taken

arrange and operate a
trading center" is a step
in the right direction. World fi¬

large, free markets in investment
and speculative securities
open to
the countries of the world?
Or is

ernment

steps

"world

question
unsettled at this time. Do we have

materials via subsidy.

the Italian agreements
ethics of the. situation,
by the weakening of a
for future aggression.
If such an aggressor should
happen to be France or Yugoslavia: who
is going to come to the rescue of Italy? Surely Russia, England, the
U. S., and UN, will be unable or unwilling to come to her rescue.

Front

raw

From the objective world viewpoint, also,
represent a sorry s]pectacle{ Apart from the
the world's hopes for peace must be sabotaged
major country, and its consequent invitation

Dewey to

debtor

which the Uniled States has furnished the

but to the Great Powers.

The

being the world's financial capi¬
tal? Whether the U. S. is
or creditor nation
is a

the Istrian Peninsula.

sup¬

Governor Dewey Again A Leader

Financial Market
don has lost

certainly not adequately

plied-in New York.

accurately.

the

world market for securi¬

will

factors in supporting London and

Liverpool

and

any hope of New York be¬

coming

are

more harm to the London
financial markets than any com¬

could

Commission

represented by Premier
He will move for a
plebeseite on Trieste. After Trieste, and the stripping-away of her
colonies, the greatest opposition of the Italian people is directed at
the changes in the Italo-French
frontier, and the tentative assign¬
ment of Briga and Tenda to France. Moreover
Signor de Gasperi,.
must follow his people in
making a fight against signing away io
Yuogslavia sovereignty over Pola, Rovigno, Parenzo, and other cities

Italy,

Gasperi, is going to raise plenty of Cain.

In
objectionability to America and Great Britain, second
only to Trieste is the appeasement of Russia on reparations. The
draft treaty's agreement that the Soviet is to
get $100 million worth
ties?
of reparations in a sevCn-year period can
only mean that Uncle Sam
Will American {ships, insurance
will be called upon to provide! another UNRRA-ish "gravy train."
and other services necessary for
From present indications, and the Byrnes-Molotov
discussions, the real
world trade be as available and as
burden of Italy's payment to our "Ally" will fall on us.
Judging by
reasonably priced in New York recent
Russian behavior, she is likely to remove plants necessary for
as in London?
J
Italy's indispensable export business, and Moscow's demands for de¬
Any
superficial
examination liveries from current
production will be goods for the production of

stall

doing-

Exchange

political control of the inter¬
capital movements fore¬

Gn the Italian treaty in
general,

national

ceased

conditions

free, open and broad? Do
regulations of the Securities

and

opera¬

have

York

New

York

the

government

First Boston-Mellon

police force.

place of free markets has probably
been shaken more by policies of

637

down

vessels

con¬

the
be

William

Wallace

member of the

limited
8c

partner

Lanahan,

Exchange, and a

in Alex. Brown

Baltimore, becomes a
der
National
Recovery Admin¬
sold, leased, traded or given out¬ general partner effective Aug.: 1.
istration in 1934 and 1935, chair-*
R. W. Courts, Jr., Courts & Co.,
man
of the Investment Bankers right to the Chinese Government,
may

large fighting ships are in¬

volved in the transaction.

Sons,

Atlanta,
Courts.

Ga.,

now
,

signs

R.
*

riers;

Acktiinistrative Procedure Act
(Continued from page 6i9) - >
authority exercised in the
field in; time of war or in; occupied
territory, or ; (4) functions which
by law "expire on the termination
tof present hostilities; within any
or

navai

the

secrecy

requiring

8 shall

in the public interest or

visions

United

States

matter relating solely to
internal management of an

(2)

any

the

agency—

(a) Rules.—Every agency shall
thereafter^ or before separately state and currently
*<3uly L J947^ ;and^:th^fuhctioh$ publish in the Federal Register
fixed period

conferred by the following stafi (1) descriptions of its central and
I utes: Selective Training and Serv¬ field organization including dele¬
ice Act of
;1940;| Contract
ment Act of
>,

Settle

1944; Surplus Prop>''

erty Act of
V.;' (b) .vpmon^ancl

gations by the agency of final au¬
thority 'and the established places
at

which, and methods whereby,

the public may secure information
or. make; submittals or requests;

son" includes

individuals, partner¬
ships,
corporations,' associations, (2); statements of the general
or public or private organizations
course and method .by /which ; its
of any character other than agen¬ functions are channeled and deter¬
cies. "Party" includes any person mined/including the nature and
;
or; agency/named' or "admitted: as requirements of aR formal? or hir
a party; or properly seeking:.and
formal
procedures available as
entitled"as of right^bqadmitted well as fonhtand< instructions as
as a partyj hrany agency proceed-: to the scope and contents of all
ing;>but nothing-hereiu shall ibe papers, reports, or examinations;
construed; to » prevent / an agency and (3) substantive rules adopted
from admitting any; person . or as authorized by law and state¬
agency as a part^ ifor limited pui^ ments of general policy or inter¬
poses.
pretations formulated and adopted
(c) Rule and Rule Making.—. by the agency* for thCgUidance/ef
"Rule" means the whole or - any thepublic/ hut not rules/addrbssed
part of any agency statement of to and served upon named- per¬
general or particular applicability sons Jnaccordance wit^la#; No
V and future pffect designed td^ih- person;; shall/in^anyf mminer; be
plemeht/ interpfet, ; or < preseribe •required to" fesort^to organization
»

;
or policy or to describe the nn^procedure nol so Published/
organization, procedure, or prac¬
(b) Opinions and Orders. —
tice requirements of any agency Every agency shall publish or, in
and includes the approval or pre¬ accordance with published rule,
scription for the future of rates, make available to public inspect
wages,
corporate
or
financial tion all final opinions or orders in
ystructiires of reorganizations1 the adjudication of cases (except
f thereof, prices* Jaeilities; ;appli^ those required for good cause to
) ances;^ services; or
allowances be held confidential and not cited
4 therefor or of valuations, costs, or as precedents) and all rules.
accounting, or practices bearing
(c) Public Records.—Save as
upon any of the foregoing. "Rule
otherwise
required
by
statute,
making"' means, agency process matters of official record shall in

law

gfof the/formulation, amendttient/
'

repeal of a rule,'
(d)

Order and Adjudication.—

"Order"

means

part

the

the whole

any

disposition

final

<whether affirmative, negative,
injunctive, or declatory in form)
of any agency in any matter other
than rule making but including

licensing.

•

"Adjudication"

means

^:agen^pr6c^ss^o|5"^th0 formulae

•••

tion of

(e)

order.

License

"License"

and

includes

Licensing
the

whole

'/exemption ©r/qthej form of per-.
mission.

-^Licensing

includes

agency
process
respecting
the
grant, renewal, denial, revocation,
suspension, lanhulment; withdraw¬
al, limitation; amendment, mo'difil

cation,

1
#

conditioning of

license.

(f) StiiuAian und Relief-^'Sane-

tion"

includes the whole

part

of any agency (1) prohibition, re¬

quirement,

limitation, or other
affecting the freedom
,r©f any'person; (2) withholdirig of
; relief; (3) imposition of any form
of penalty or fine; (4) destruc¬
tion, taking, seizure, or withholding of" property; (5) assessment of
condition

j4 damages, reimbursement, restitu''

tion, compensation, costs, charges,
'or'

fees| (6) requirement, revocabr

Suspfension: of

(7); taking

other

licenser or
compulsory

restrictive action, "Relief" ineludes the whole or part of
any
agency CI) grant of money, assisor

of this subsection.

otherwise

provided

(d) Petitions. — Every agency
shall accord any interested person
the right ? to petition; for the ;te

amendmenti/or repeal; of
Adjudication

Sec. 5. In every case of adjudi¬

cation required by statute to he
on
the record after

determined

opportunity for an agency hearing/

except to the extent thiptf there is
(1> iuii^|ihatterlsiti)jee|
to a subsequent trial of the law

Involved

and

the

facts

novo

any

court; (2) the selection^or tenure
of

officer

United States

employee of the

other

tham

exam^

iners

(a) Not'.ce.—Person entitled to
notice of

hearing shall
be
timely informed of (1) the
time, place, and nature thereof;
(2) the legal authority and juris¬
an

agency

under which the hearing
is to be held; and (3) the matters
of

fact and law asserted.

stances

In in¬

which

private persons
are
the
moving parties, other
parties to the proceeding shall
give prompt notice of issues con¬
troverted in fact or law; and in
Rule Making
other instances agencies may by
Sec. 4. Except to the extent that
rule require responsive pleading,
there is involved (1) any military,
im fixing the times and places for
naval, or foreign affairs function
heamgs^/due ^regard spaR/be Imd
of the Unted States; or (2) any
for the convenience and necessity
matter relating tq agency man¬ of the
parties or their, representa¬
^

loans,

grants,

tives.

benefits,

(b)

contracts—

Procedure.

—

The

•

agency

shall afford all interested parties
Notice.—General notice of opportunity for (1) the submis¬
proposed rule making shall be sion and consideration of facts,
published in the Federal Register arguments, offers of settlement,
(unless all persons subject thereto or proposals of adjustment where
are named and either personally
time, the nature of the proceeding,
served or„ otherwise have actual and the public interest permit, and

(a)

notice thereof in accordance with

(2) to the extent that the parties

law) and shall include (1) a state¬
ment of the time, place, and nature
of public rule making proceedings;
(2)
reference to the authority

are

unable

determine any

by consent, hearing,
and decision upon notice and in
controversy

conformity with sections 7 and 8.

under which the rule is proposed;
and (3) either the terms or sub¬
stance of the proposed rule or a

tice

controversy

uncer¬

remove

tainty.
Ancillary Matters
Sec. 6. Except as otherwise pro¬
vided in this Act—

hearing

required

statute, this subsection shall not

except

apply to interpretative rules, gen¬
eral

become

statements

of policy, rules
organization, procedure,
or practice, or in
any situation in
which the agency for good cause
finds (and incorporates the find¬
ing and a brief statement of the

agency.

therefor

the

rules

sued) that notice and public

is¬

pro¬

are

(b)

Procedures.—After

notice

exemption, or; exception; or (3)
taking bf any other action upon jreqmle^; by" thi# s&tionl the
agency- shall; afford
interested
the application or petition of, and

opportunity to partici¬
pate in. the. rule making through
persons an

initial

unavailable

Save

de¬

section
8
officers
to

the

tives. Nothing herein shall be con¬
strued either to grant or to deny
to any person

who is not

the

appear

right

others

resent

in "any

before

agency

lawyer

for

any

rep¬

agency

proceeding.

(b)„ Investigations.—No process,
requirement of a report, inspec¬
tion, or other investigative act or
demand shall be

issued, made, or
manner or for
any purposes except as authorized
by law. Every person compelled
enforced

to submit

any

data

be enti^tled to^

evidence shall

:rqtaihld#Tbh;;;pay-

ment of

lawfully prescribed, posts,
pr^up# h; copy or transcript
thereof, except that in a nonpub¬
lic investigatory proceeding the
witness

may

for

good

cause

limited to inspection of the

official
transcript of his testimony.
(c)

Subpenas
Agency subauthorized by law shall be

section 8 shall be conducted in an

Any such of¬

impartial manner.
ficer

time withdraw
himself disqualified;

may

any

if he deems

and, upon the filing in good faith
of a timely and sufficient affidavit
of personal bias or disqualification
of any such officer, the agency
determine

shall

of; the

in the

the

matter

decision

and

record
/

case.

this Act.

Evidence.—Except as stat¬
utes otherwise provide, the pro¬
ponent of a rule or order shall
have the burden of proof.
Any
oral or documentary evidence may
(c)

but every agency
matter of policy provide
of. irrelevant,

received,

shall

as a

the

for

exclusion

immaterial,

unduly repetitious

evidence and

sanction shall be

imposed or rule or order be is^
sued except upon consideration of
the whole record or such portions
thereof as may be cited by any

party and as supported by and in
accordance with the reliable, pro¬
bative, and substantial evidence.
Every party shall have the right
to present his case or defense by
oral or documentary evidence, to
submit rebuttal evidence, and to
conduct
as

cross-examinatloh

such

be required for a full and
disclosure of the facts.
In

may

true

determining claims
benefits or applica¬

rule making or

for money or

initial

for

tions

licenses

any

where the interest of
any party will not be prejudiced
issued to any party upon request
thereby, adopt procedures for the
and, as may be required by rules submission of all or part of the

penas

of procedure, upon a statement or

showing of general relevance and
reasonable scope of the evidence
sought. Upon contest the court
shall sustain any such subpena or
similar process or demand to the
extent that it is found to be in ac¬
cordance/with law and, in any

within

reasonable

penalty of
in

tempt

under

time

punishment for con¬
case
of contumacious

failure to comply.

(d)

Denials.
be given

agency may,

evidence in written form.

(d) Record.—'The transcript of
testimony and exhibits, together
with all papers and requests

filed

proceeding, shall constitute
the exclusive record for decision
in accordance with section 8 and,
in the

upon

payment

of lawfully pre¬
avail¬

scribed costs, shall be made
able

parties.

the

Where any

agency decision rests on official
notice of a material fact not ap¬

pearing

the

evidence

in the

record, any party shall on timely-

afforded an opportu¬

request be

nity to show the contrary.

—

proceeding. Except in af
a prior denial or where
;den5al is
self-explanatory,

Decisions
Sec. 8. In cases in which

hear¬

ing is required to be conducted in

conformity with section 7—

(a)

Action

Subordinates.—

agency

In cases in which the agency

firming

not, presided at the reception of
the evidence, the officer who pre¬

the

such notice shall be

accompanied

by a simple statement of proce¬
dural oj other grounds.
*

'/VHearings.-;;''^

(g) Agency Proceeding and Ac- submission of written data/ views*
r
tion.-*—"Agency proceeding" meaiis or arguments with or without op¬ agency .ia:Anyleas^bhaR^'inxtbat
>any ageneyT;process as. defined in portunity^ to present the same or a
factubily: ri^ateb i^e/ph#ici|
subsections, (e); <d)r and: (e) of orally in any manner; and, after
pate or advise in the decision, rec¬
t this
section.; "Agency action", in-, cqnsideratioixof allrelevant; mat-^ ommended decision, or agency ret
eludes the whole;oTv part of every ter presented, the agency shall view
pursuant to section S exqept
i
vagency rulei/ order/licehse^ sanc-ri incorporate in any rules adopted as witness or counsel? in publie
tion,' relief, or/the equivalent or a concise /general statement of proceedings. This, subsection shall
denial thereof, or failure to act.
their ; basis and purpose/ - Where not apply in determining applica¬
rules are • required by statute to tions for initial licenses or to pro¬
Public Information
be made on the record after op
ceedings involving the validity or
If Sec. 3. Except to the extent that portunity for an agency hearing, application of rates, facilities, or
there is involved (1) any function the requirements of sections 7 and
practices of public utilities or car¬

decisions

the extent re¬

opportunity for all parties to par¬
ticipate; nor shall such officer be
responsible to or subject to the
supervision or direction of ahy
officer,* employee? or!agent /en¬
gaged in the performance;: of Jog
vestigative or prosectitiiig^iuk^
j tiotis for any/ bgencyz i Net office#
employee/or agent engaged ia the
performance/ of; ihyestig^tivei or
prosecuting i functions ; for " any

participating
conformity witn

ficers and of officers

(b) Hearing Powers.—Officers
presiding at hearings shall have
authority/subject to the published
right Jo/ be ' accompanied/ i'rpprel
rules of the agency and within its
sented, and advised by counsel or,
powers, to (1) administer oaths
if; permitted by
vthe|agertcy;:;by and|&Etirmatioii#/(2); issue subr
other
qualified
representative.
penas authorized by law, (3) rule
Every party shall be'accorded the
right/ to appea#J#'pensbn ijonvfty, (
relevant Tevidence^ v(4) tah0' or.
or
with counsel or other
duly cause depositions to be taken
qualified representative in any
whenever the - ends of justice
agency proceeding.- So far as the
would be served thereby, (5) reg¬
orderly conduct of public busi¬
ulate the course ; of the. hearing,
ness permits, any interested per¬
(0) hold conferences for the set¬
son may appear before any agency
tlement or simplification of the
or its
responsible officers ior/em^'
issues by consent of; the parties,
ploye&i:fbJ^!the^
(7) dispose of procedural requests
justment, or determination of any or similar
matters, (8) make de¬
issue, request, or controversy in
cisions or recommend decisions in
any
proceeding
(interlocutor# conformity with section 8, and (9)
summary, or otherwise) or in con¬ take
any other action authorized
nection with any agency function.
by agency rule consistent with

Prompt notice
quired for the disposition of ex shall
of the denial in
parte matters as authorized by whole or in
part of any written
law, no such officer shall consult
application, petition, or other re
any person or party on any fact
quest of any interested person
in issue unless upon notice and
made
in
connection /with
any

of agency

reasons

decision

required
by
where such

The functions of all presiding

fore any agency or representative
thereof shall
bp accorded the

same

cision

specially: provided for by
/designated pursuant to statute^
of¬

officers
or

part

(c)

The

mended

tonce/license| authority; exempimpracticable,
\tion,' exception, privilege,
or unnecessary, or contrary to the
? remedy;
;;(2>p recognition of any public interest.
claim; right, immunity/ privilege;

Separation of Functions.— proceeding for enforcement, shall
officers who preside at issue an order
requiring the ap¬
the reception of evidence pursuant pearance of the witness or the
description of the subjects and is¬
to section 7 shall make the recom¬ production of the evidence or data
sues involved.
Except where no¬

cedure thereon

discretion, with like effect as in
the case of other orders, to issue
a
declaratory order to terminate

diction

and

property,

' !

(d) Declaratory Orders. — The
agency is authorized in its sound

appointed pursuant to: Sec-?
tion 11; (3) proceedings in which
decisions rest solely on inspections,
tests/ br elbctiohs; (4) thq eonduet
of military, naval, or foreign af¬ reasonable
dispatch, to conclude
fairs functions; (5) cases in which any matter presented to it except
that due regard shall be had for
an agency is acting as an-agent
for a court; and
(?! Ihb^^ifich^ the convenience and necessity of
tion of employee representatives— the parties or their representa¬

directly concerned ex¬
cept information held confidential
for good cause found.
erly

comprising the agency,

the

published with the rule.

suance,
a rule.

shall it be applicable in

(a) Appearance, — Any, person
good cause found and; compelled, to appear in person be¬

agency upon

accordance with published rule be
made available to persons prop¬

■

beneficial to, any person.

apply in place of the pro¬

(c) Effective Dates.—The re¬
quired publication or service of
any substantive rule (other than
one
granting or recognizing ex¬
emption or relieving restriction or
interpretative
rules and state¬
ments of ploicy) shall be made
not less than thirty days prior to
the effective date thereof except
as

nor

any manner to the agency or any
member or members of the body

agement or personnel or to public
or

part of ;any agency permit, cerJificate/
approval,
registration
charter, i membership^ /at^tutory

Thursday, August 1,1946

THE COMMERCIAL & FINANCIAL CHRONICLE

638

sided (ox, in cases not subject to
subsection (c) of; sectioh $|/hny!
other ofticer or officers

qualified
hearings pursuanl to

M preside at
;

hearings which section
5 requires to be conducted

Sec: 7. In

has

:2$ctioh

IshalU initially-decid^

the case or

the agency shall rej-

quire (in specific cases or by gen¬
eral rule) the entire record to be
pursuant to this section—
certified to it fqx initial declsioij
~|(a) Pr
Whenever such officers make thfe
shall preside at the taking of evir
dence (1), the agency, (2)'one or Initial Becisiqn and in the absence
Of ei her an appeal to. the agency
more members of the body which
comprises the agency, or (3) one or review upon motion of the
agency within time provided by
Or more examiners appointed as
or

provided in this Act; but nothing
in

this

Act

shall

deemed to

supersede the. conduct of specified
classes of proceedings in whole or
part; by or. before -boards or

other

rule, such decision shall without
further proceedings then become
the decision of the agency.

peal from

On ap¬

review of the initial

#$■<?
•

Number 164

decisions

Number 4512

such

officers

agency shall, except as it
limit the issues upon notice

rule, have all the

the
may

it would have in making the initial
decision.
Whenever the agency
makes the initial decision without
having presided at the reception
of the

evidence, such officers shall

first recommend

a decision except
that in rule making or
determining
applications for initial licenses (1)
in lieu thereof the
agency may
•issue a tentative decision or
any
"of its responsible officers

may

recommend
•such

decision

(2) any

procedure may be omitted
case in which the agency

•in any

finds
and

the

upon

that

record

due

timely execution of its func¬

tions

imperatively and

ably

unavoid¬

requires.:

to, each

recommended,

in¬

or tentative decision, or decision upon agency review of the
decision of subordinate officers

the

parties

•reasonable

shall

afforded

opportunity to submit

for the consideration of the offi¬
cers

participating in such decisions
; (1)
proposed findings and conclu•sions, or (2) exceptions to the de¬
cisions

recommended decisions

of subordinate officers

tive agency

to tenta¬

decisions, and (3)

sup¬

porting

reasons

such

excep-

tions

•

proposed findings

or con-

delusions.

The

for

record

shall show
the ruling upon each such
finding,

•

conclusion,
All

exception presented.

decisions

(including

initial,

recommended, or tentative de¬
cisions) shall become a part of
the record and include a state¬

ment of (1) findings and

conclu¬

sions, as well as the reasons or
.basis therefor,.upon all the ma¬
terial issues of fact,
law, or discre¬

tion presented
(2)

the record; and
appropriate rule, order,

the

"sanction/relief,

or denial thereof.

Sec.

■power

the

exercise

General.—No

any

sanction

cial

duties

the absence

of,

within
i

order
jurisdiction

the agency and

delegated to
authorized by

law.

•

(b) Licenses.—In any case in
/which application is made for a
license
agency,

required
with due

law

the

regard to the
; rights or privileges of all the in; terested parties or adversely af¬
fected persons and with reason-

•

able

dispatch, shall

set and

com-

1 plete any proceedings required to
be conducted pursuant to sections
; 7 and 8 of this Act or other proceedmgs
required by
law
and
,

shall make its

decision.

cases of willfulness

Except
those in

Reviewable Acts.

which public health, interest, or
safety
requires
otherwise,
no
withdrawal, suspension, revoca¬

inconsistent

with

their

and

aminers.

responsibilities as
Examiners shall be

any court shall

be subject to judicial review.

preliminary, procedural,
mediate
not

action

agency

Any
inter¬

or
or

re¬

from

sion

ruling

other

directly

section 7

the

with

and

agencies.

For

mission is authorized to make in¬

Except
expressly required
statute, agency action other¬

otherwise
final

shall

purposes

whether

this

final

for

has

the

been

declaratory order,
any form of reconsideration,
(unless the agency otherwise
requires by rule and provides thai
a

tional

Relief.—Pe riding

application for certiorari

court)

authorized

issue

all

agency action or to preserve
status or rights pending conclu¬
any

(e) Scope of review.—So far as
necessary to decision and where
presented

the
reviewing
court
shall decide all relevant questions

This

the

action.

meaning

three

examiners pursuant to

one

year

after such ap¬

^mpliance/ with aU-; lawful,

he/

'base

^.thev licensee/has, ' in- accordance

/With/

rules,- made timely
sufficient application for a

and
.

dence

in any case subject

.toy

to the

Pean Witter & Co.;

members of

sociated with the firm in the New

;haye been finally determined

whole

the agency.:

10.

Except

„

taken
as

(1)

error.

statutes preclude judicial reviesw

(2)

agency

action

shall
or

review

*such

the

portions

be cited by iany

may

party, and due- account shall* be

far

record

thereof

•

Judicial Review

Sec.

by law

committed to agency discretion—

(a) Right of Review.-—Any

per-

the

prejudicial

' Examiners ■'

Sec.

rule

"W-!

11.

Subject

inconsistent

affected

action,

adversely and for
aggrieved by Such^ac¬ qualified

within

the meaning of

any

ers ~as

each

Philadelphia

the

Mr^

investment

the

under his

Jackson
counsel

was

business

own.name.

with "

this

agency; as

many

be necessary for pro¬

one

1846—Permission given
of the

rooms

for

use

stalled.

•

• •

is associated with
Cruttenden & Co;, 209 South La/
Williams.

Salle Street,

principal stock

ex¬

He is a graduate of the
University of Illinois, a member
of the Tribe of Illini and of Phi

changes.

Epsilon" Kappa/ honorary athtotic
fraternity;
also
a
member of
Kappa Phi Kappa^ honorary edu¬
cation fraternity. S He played on

university baseball team that
Sept! 17, 1875—Use of small en/
visited Japan in 1928.
gine permitted for purpose of
Williams Ts alsci a member of
driving fans in two rooms.
the Furniture Club of America.
Jan. 7, 1882 — Heat by steam
the

boilers.

MeGnnicki Joiner Join

Holley, Dayton

CHICAGO, ILL.—T. E. Joiner,
JrM/ formerly a vheutenant in the
army air corps, and William G.
McCormick, II, also recently in
the army air- corps, have* joined
1411 Walnut Street.
Holley, Dayton & Gernon, invest¬
/
/
ment house, 105 SouthrLa Salle
Rich as< the Philadelphia Stock
Street,
it is. announced..
Mr.
Exchange is in historical lore and
Joiner was previously in the sectflegend, it is and Will necessarily
rities business in Houston, Texas
remain
somewhat
overshadowed
with J. R. Phillips & Co. He is
,

by its proximity to the larger
primary markets in New York;
nation's, financial
capital.
Nevertheless,
the
Philadelphia
Exchange remains alert and pro¬
gressive and has found its proper
the

the

son

of T. E. Joiner who for¬

merly headed Hill,

Joiner & Co.,

and T. E. Joiner & Company,

both

Salle ' Street
his 4Y2 years
service in the arnay,. Mr. McCor¬
function in the system of national
mick: was associated iWith
the
Coca Cola Company in Baltimore.
The Board of Governors of ihe
Wisconsin branches of the Com¬
Philadelphia Stock Exchange has pany. include/Madison, LaCrosse,
successfully adopted a policy of Eau Claire, Fond du Lac and;
well-known.
La
houses.
Prior to

supplementing
on

markets

the

and

New

for

Wausau

with

another

branch in

actively Roswell, New Mexico.

York

Stock

120

Arthur

now-

York;

Many of the is¬

New

York

are

is stabilized.

Dempsey & Co. Offers
Great Lakes Plating Stk

Eddie/Davis Takes
Duties Seriously
PHILADELPHIA, Pa.—Edmund
J. Davis, Rambo, Keen, Qlgse Sc
Kerner, venerable president of
Philadelphia Investment Traders
Association, is considerably tied
down by the care of his 6-monthsson.

Eddie

is afraid he will

not be able to head the Philadel¬

Co., Inc.,

phia

delegation

the

N.S.T.A.

that Walter R„ Barron

himself, however,
the seashore to his
front
lawn where
he playfully
squirts the garden hose on casual

New

associated

York

with

them

Trading Depart¬

made July 22 by Charles R. Dunn,
New York, fiscal agent for/the
banks. The financing consisted of

the

convention in Seattle next month.

their New York
ment.

New

City,

Broadway,

announces

Warner

Will "match

$32,730,000 1% consolidated de¬
Philadelphia Ex¬
bentures dated Aug. 1, 1946, and
change by registered
odd lot
dub' May 1, 1947. The issue was
dealers who. are committed to pro¬
vide odd lot executions at the placed at paj/ ^Df the proceeds
$26,165,000-was .Used to retire a
customary /differential based - oh
like amount of debentures matur.he succeeding New York sale.
Thus an odd lot order, placed in ing Aug. 1, 1946, and $6,565,000 is
new money. As of Aug.
1, .1946,
Philadelphia, will receive execur
the total amount of debentures
tion identical with New York and,
outstanding was $322,340,000.
again, possible market "pressure"

old

Warner Adds Barron
J.

ex¬

and competent examin¬

may

association

civil-

service and other laws to the
tent. not

governor

Stock Exchange, Prior to his new

'/./.-tJthe

suffering legal;wrong because Act, there shall; be appointed •
by

of any agency

tion

•

the New York and other leading

court

use

handled

new

the

stabilize prices;
sues
active
in

•

tions

approved/ Mr. Williams will
member of the Finance

Committee;

gas.

Jan.

sales, item for item. This tends to

requirements tdfvsectionsvT :ahd "8 stock exchanges, announce that E,
or otherwise reviewed on the ree-:
Sc^«y4@(! Jackson hasbecpme as¬

;^ire:^^^caticm^hail

was

serve as a

brokers

statute; or (6) unwarranted
York office, 14 Wail Street. Mr.
license, no li¬ by the. facts to the extent that
the, facts,are subject to/trial. !de Jfackson, formerly a member of
With reference1 to
any activ/
;novo! by the/:reviewin|;: eourt. In the New York Stock Exchange
; a
continuing nature shall
'making! the foregoing ,determina¬ from 1929 to 1937, is also a past

cense

son

(5);
evif

agency

renewal

substantial

/,../?/■■

FIG Banks Place Debs,

With Dean Witter Co.

Milton L. Williams

pany of Baltimore, the election pf
Milton L. Williams as a director

use

listed

f/Schuyler Jackson

unsupported

Sept. 27,1836—Permission given

the

tunity

George Washington. \

tive until

con¬

law;

hundredth anniversary of the

one

birth of

proval, and no procedural re¬ Exchange and New York Curb
quirement shall be mandatory as Exchange by dealing in these
same
issues
locally. There are
to any agency proceeding initiated
A successful offering of an is¬
about 350 such dual listings. In
prior to the effective date of such
sue1 of debentures for the Federal
m an y
instances,
Philadelphia*
requirement.
Intermediate Credit Banks was

procedure1 required/ by

a
building at Third
Walnut Streets. The corner¬
stone was laid Feb. 22,
1832,/the

and

securities

accorded oppor¬
to, demonstrate or achieve

formed to erect

traded

arbitrary,
tion, or annulment of any license capricious, an abuse of discretion,
br
; shall be lawful unless, prior to
otherwise-mot; in accordahc$:
Approved June 11, 1946.
the institution of ' agency procebd/ jwith law/(2)
ings .therefor, facts : or conduct tutional right* power,
privilege, or
which may warrant such
action immunity; (3) in/excess of statu/
shall "have been called to
the at¬ tory jurisdiction,*^ authority,
or
tention of. the;- licensee
by the .imitations*: or short of statutory
/agency in writing and the licensed tight; (4) without observance of
shall have been

Philadelphia Stock Ex¬
change. In May, 1831, at a meet¬
ing at Girard's Bank, the Philadel¬
phia Merchants Exchange Co. was

section 11 shall not become effec¬

unreasonably delayed; and
(B) hold unlawful and set aside

agency action, findings, and
clusions found to be (1)

effect

take

after its

proval, the requirement of the se¬
lection

(A)

compel
unlawfully with¬

action

agency
held or

applic-

of any agency

shall

approval except
that sections 7 and 8 shall take ef¬
fect six months after such ap¬

law, interpret constitutional
and
statutory provisions, and de¬
termine

shall

Act

months

ab'lity of the terms

"provision shall not be 'af¬
fected.
Every agency is granted
all authority necessary to comply
.with the requirements of this Act
through the issuance of rules or
otherwise.
No subsequent legis¬
lation shall be held to supersede
or modify the provisions
of this
Act except to the extent that such
legislation shall do so expressly.

necessary and appropriate process
to postpone the effective date of

sion of the review
proceedings.

the

repeal additional require¬

such

reviewing
to

rights of any person

is held invalid/the remainder of
this Act or other, applications of

may be taken on appeal from
to

now

ments

injury, every reviewing court (in¬
cluding every court to which a

writ

fulfilled the functions of what

Jan. 7, 1882—Use of passenger
imposed
by
statute
or elevators.
/;
otherwise recognized by law. Ex¬
In
October;» 1888, the
Ex-j
cept as otherwise required by law,
change moved to Drexel Build¬
all requirements or privileges re¬
ing, 6th and Chestnut Street,
lating" to evidence or procedure
and in December, 1902, to a new
shall apply equally to agencies
structure at Third and Walnut
and persons.
If any provision of
Streets. In 1912, the Exchange
this Act or the application thereof
moved to its present building,
limit

any agency

effective date of any action taken
it.
Upon such conditions as

other

for the United States

be held to diminish the constitu¬

requires, to postpone the

upon

later the Merchants' Coffee House

Com¬

Sec. 12. Nothing in this Act shall

su¬

case

the

Construction and Effect

is au¬
thorized, where it finds that jus¬
so

section,

courts.

the action meanwhile shall be
in¬

tice

this

established

.(d).
Interim
judicial review

tors of Maryland Casualty Com-

approximately 5Q years,
from 1780, the Cily Tavern, and

for

operative) for an appeal to
perior agency authority. -

CHICAGO, 111.—At a recent
meeting of the Board of Direc¬

104

require reports by the
magnetic telephone.
agencies, issue reports, including
Aug. 10, 1846—Sale of liquors
an annual report to the Congress,
and refreshments permitted.
promulgate rules, appoint such
Nov. 6, 1851—Furnace installed
advisory committees as may be
under southwest corner of build¬
deemed
necessary,
recommend
ing.
;; " "
h
legislation, subpena witnesses or
Nov. 16, 1864 — Restaurant
inr
records, and pay witness fees as

determined any ap¬

plication for

618)

vestigations,

subsection
there

not

presented

page

Broker,

For

consent

poses

wise

Stock
Chestnut Street.

the pur¬ to

of the final agency action.

(Continued from

Anderson,

of said

reviewable shall be
subject to review upon the review

Philadelphia Slock Ex.

On Dec. 8, 1875, the title "Board
Act, as
of Brokers," by which the mem¬
amended, and the provisions of
section 9 of said Act, as amended, bership was known, was changed
to "Philadelphia Slock Exchange."
shall not be applicable. Agencies
The
occasionally or temporarily insuf¬
intervening
years /were
ficiently staffed may utilize ex¬ high-lighted by the following duly
aminers selected by the Commis¬ recorded historical "permissions":

(b)

—

statute and every final
agency ac¬
tion for which there is no other

adequateremedyin

639

*■&$

Oldest iii America

ex¬

movable by the agency in which
they are employed only for good

Every
action made reviewable by

agency

prac¬

any

perform

applicable form of legal cause established and determined
(including actions for de¬ by the Civil Service Commission
claratory judgments or writs of (hereinafter called the Commis¬
prohibitory or mandatory injunc¬ sion) after opportunity for hear¬
tion or habeas corpus)
in any ing and upon the record thereof.
court of competent jurisdiction. Examiners shall receive
compen¬
Agency action shall be subject to sation prescribed by the Commis¬
judicial review in civil or crim¬ sion
independently
of
agency
inal proceedings for judicial en¬ recommendations or
ratings and
forcement except to the extent in accordance with the Classifica¬
that prior, adequate, and exclu¬ tion Act of
1923, as amended, ex¬
sive opportunity for such review
cept that the provisions of para¬
is provided by law.
graphs (2) and (3) of subsection

rule

far

shall

action

or substantive
be issued except

rotation
and

duties

inadequacy there¬

ticable

review/ shall be any special
statutory review proceeding rele¬
vant to the subject matter in any
court specified by statute
or, in

shall be imposed

]

7
who shall be assigned to

cases

be required and to the extent
necessary to prevent irreparable

authority-

fa)

ceedings pursuant to 1 sections
and

(b) Form and venue of action.—
The form of proceeding for judi¬

may

Sanctions and Powers

•;-'

COMMERCIAL & FINANCIAL CHRONICLE

judicial review theroi.

(c)

itial,
•

e««4j

relevant statute, shall be entitled

(b) Submittals and decisions
Prior

-/»*r.

THE

which

powers

%'rr'i

reconciles

bringing

\ Actors.

offering of i15,000 shares of
Co. common
stock was. made July 26 at $7.00
An

Great Lakes Plating

share by a group of Under¬
writers,
including Dempsey * &
Company, Ames, Emerich & Co.,
Inc. Sills, Minton & Co., Mason
Brothers and Burr & Co., Inc.
per

The company is principally en¬
gaged in plating articles furnished
to it by others such as automobile
accessories, radios and electrical
parts and household items. The:

company is one of the largest job
platers in the Middle West.

Thursday, August 1,1946

THE COMMERCIAL & FINANCIAL CHRONICLE

640
'■J ?

Full Text of New OPA Bill
;and

•

clothing^

609)
trol, and that, the general -control

~ ) '?

yp.",

prices and the use of subsidy
shall, subject to other
specif i(r pro visions*- of this; Act, - be
of

powers-

*/ ? Rent Ceilings Restored
< terminated as rapidly/ as possible
S Rent - ceilings in effect June 30 j consistent/with;- the" 'policies sttid

4946; and eviction'contjtols/were
Immediately ' 6 r d e r e d- restored
when' the hew OPA -Act beCame
effective.'1
'
<•' '
J *1
^ * "' |
?i The new Act thus will replace
'

and local rent

all State

forth in this section

purposes-set
in

and

30,

1947,

than June

on that date the
Price Administration

and

Office

1, 1946,

July

fl(c) Recommendations

President

the

soon

State
'

local government."

tary, /fiscal,

Following is the full text of the

hew Jaw*;//4

?{?.//vv |

(public Law 548—79th Congress)
(Chapter 671—2d Session)

v-'

which
ment

Agriculture may at any time with-; Under such Acts, the Board may
draw his approval of any action at
any subsequent time direct that
with respect to which his approval; such commodity shall be so regu¬
is required under this Act, and lated if it finds:
?/
upon the withdrawal of his ap¬
"(i) that the price of such
applicable with respect to any proval such action shall be re¬
commodity has risen unreason¬
agricultural
commodity
during scinded.
ably above a price equal to the
any calendar month which begins
"(6) No maximum price and no
lawful maximum price in effect
more than thirty days after
the regulation or order uncV)r this Act
on
June
30,
1946,-; plus the *
date of enactment of this section, or the Stabilization Act of 1942,
amount per unit of any subsidy
unless such commodity is certified as
amended, shall be applicable
payable with respect thereto as
to the Price Administrator under; with
respect to any agricultural
of June 29, 1946; and
this paragraph as being in short
commodity, or any service ren¬
"(ii) that such commodity is
supply.
dered with respect to any agricul¬
in short supply and that its reg¬
"2. (A) Whenever the Secretary tural commodity, unless a regula¬
ulation is practicable and en¬
of
Agriculture determines
that tion or order establishing a max¬
forceable; and
>
maximum prices applicable to any imum price with respect to such
"(iii) that the public interest
will be served by such regula¬
agricultural commodity which is commodity had been issued under
in short supply are impeding the
this Act prior to April 1, 1946.
tion.
necessary production of such com¬
"(7) No maximum price and no Thereafter, the provisions of such
modity, he may recommend to the regulation or order; under this Act Acts and.-: regulations and orders

become

short- supply

and- by

removing from such certification

wages

fiscal year

1947, and to insure that
of prices and

wages can be terminated by the
end of that fiscal year without

RESOLUTION

JOINT

policies

other

adequate
control of

control

general

|H. J. Res. 371)

and

supple¬
prices* and
during the balance of the
are

the

4 Extending the effective period

danger

inflation

thereafter.

Price Control,
"(2) On or before April 1, 1947,
?Act ol 1942, as.handed,Jand "the the President shall report to the
-Stabilization ; Act
of .1942,
as
Congress what, if any, commodi¬
of the

Emergency

".amended.

ties

: j

byk ihe

Resolved

Seiiate

and

of Representatives of- the
/ United States of America in ConHouse

classes of commodities, in¬

cluding housing accommodations,
are

in such

critically short supply

to. necessitate, in his judgment,
the- continuance of»the powers

assembled, That section 1
-«(b) ; Of the Emergency Price Con-

gresz

Price Administrator such
ments in such maximum

adjust-f

prices

Act

.or

the Stabilization Act of. 1942,

amended, shall: be/ applicable

•

preven¬

"(2) The
Administrator -shall
of
a
achievement
reasonable
provide for the prompt removal of
stability in the general level of maximum prices in the case of
prices and rents, cost of living any nonagricultural commodity
and costs of production, (includ¬
whenever the supply thereof ex¬
ing labor costs), for the pur¬ ceeds or is in
approximate balance
poses set forth in section 1, of
with the demand therefor (in¬
this Act and for the further pur¬

poses / of protecting / the real
value of benefits provided by

cluding appropriate inventory re¬

quirements).

"(3) Whenever, after a reason¬
test period, it appears that
supply of a nonagricultural
commodity which has been decon¬
trolled is no longer consistent with
.a. successful
transition ;to
a
the applicable decontrol standard,
peacetime economy of maxithe Administrator, with the ad¬
.i/r. jnum
employment, production,
vance
consent in writing of the
.and purchasing power under a
Price Decontrol Board established
j:'.* system of free enterprise j
under subsection
law for veterans

pendents, of keeping faith with
purchasers of United States War
Bonds, and of making possible

■-

:M
-

and their de¬

"(2) that unnecessary or unprolonged controls over
prices and rents and use of subd sidies- would
be
inconsistent

-kluly

with the' rOturn to such

peace-

/ 4ime

economy and would tend
to repress and prevent the at-

<xi

tainment of this and the other
goods herein declared; and
.

J,4 "(3) that adequate prices
Necessary

stimulants

are
the

able
the

(h),

establish

such

commodity, consistent with
applicable provisions of law, as
judgment-may be.necessary
to effectuate the purposes of this
Act The supply of a nonagricul
tural. commodity shali be deemed
inconsistent with the applicable
in his

decontrol standard in any case
where the prices of the commodity
have risen to and after a( reason¬

^/production thus desired and the

able

4 -expeditious attainment of said

reasonable and

goals.1
.

-.Jt
^

"(b) Declaration

'Policy.—Therefore,
declared

be the

of Decontrol
it is hereby
policy of the

shall re
prices

maximum

for the

test

period

remain

at un¬

inflationary levels.

"(4) .Nothing contained in this

Act

shall

authorize

impose

the

construed

to
maintain price controls

?; Congress that the Office of Price
7;' Administration, and other agen-

with

;•' cies of the Government, shall use
; r their
price, subsidy, and other
powers
to promote the earliest

manufactured

Administrator

respect
to
petroleum
petroleum products processed
in

whole

;

consistent

with

deter?

mine, when maximum prices are

ards have been established under

respect to any com¬
in paragraph (8)
(A), whether any subsidy or any
part thereof in effect .prior to June
30, 1946, shall be reestablished in
whole or in part; and the powers
of the Administrator, the Com¬

modity

modity
the

listed

Credit

■«

Corporation/and
Cor¬

Finance

Reconstruction

poration to pay subsidies in con¬
nection with such commodity shall
be
limited
in
accordance with
any

order of the Board.

"(10)

Whenever

maximum

prices are in, effect for any com¬
modity processed or manufactured
in whole or substantial part from
any

(8)

commodity listed In paragraph
(A) with respect to which
not in effect,
maximum price, and no mar¬

maximum prices are
no

•

applicable

pro¬

resentatives of affected industries

maximum

move

ur-yfcl'.

for

prices

any

commodity, or
present their non-agricultural
any agricultural commodity with
of the Secretary are necessary to views orally or in writing, shal
the approval of the Secretary of
effectuate
the purposes
of this have ppwer, to determine whether
Agriculture, at an earlier time
or
not any commodity listed in
Act.
than would be required by this
subparagraph (A) shall be regu"(4) For the purposes of this lated after August .20, 1946, under section, if hi; his judgment or in ;
the judgment of the Secretary of
section (except subparagraph (6)
this Act arid/the Stabilization Ac
of this subsection (d) )—
of 1942. as amended.. .Such Board Agriculture, as the case may be,
such action would be consistent
"(A) ; an agricultural com¬ shall direct that any such com¬
With the purposes of this section.
modity shall be deemed to be modity shall not be so regulatec
in short supply unless the sup¬ unless it finds:
"(g) Petitions for Decontrol.—-?
ply of such commodity equals
"(i) that the price of such (1) If in the judgment of the in¬
or exceeds the requirements for
dustry advisory committee ? ap¬
commodity has risen unreason
such commodity for the current
ably above a price equal to the pointed by the Administrator in
marketing season;
accordance with sections 2 (a) of
lawful maximum price in effec

visions of law, as

pursuant to. the provisions of para-

in effect with

;

in the judgment

and

"(B) the term -agricultural
commodity' shall be deemed to
mean any agricultural commod¬
ity and any food or feed prod-

uct processed
in

whole

from any

practicable balance.between pro-) maximum ..prices with respect
duction and the demand therefor thereto
may
be? reestablished
con—'

the United States Grain Standards gin, mark-up, or discount, shall be
maintained with respect to such
agricultural commodity with re¬ Act, as amended, or any livestock processed or manufactured com¬
or poultry feed processed or man¬
spect to which maximum prices
modity which does not return to
have been removed is in short ufactured in whole or substantia"
the processors, manufacturers, and
supply and that the reestablish- part therefrom.
distributors thereof (A) the raw
ment of maximum prices with re¬
"(B) The Price Decontrol Board material cost
(which must be
spect thereto is necessary to-effec¬ shall proceed forthwith to con¬ computed at least once every sixty
whether
the commodities
tuate the purposes of this Act, the sider
days at not less than the current
Secretary, with the written con¬ listed in subparagraph (A) shal
cost), (B) the conversion or dis¬
sent of the Price Decontrol Board, continue, after August 20, 1946, to
tribution cost, and (C) a reason¬
may recommend to the Adminis¬ be free from regulation under this able
profit.: /
;
trator, and the Administrator shall Act, and the Stabilization Act of /
"(f) paving Provision.—Noth¬
Such Board
establish, such maximum prices 1942, as amended.
ing in this section shall limit the
with respect to such commodity, after due notice of a public hear¬
Administrator's authority to re¬
ing and full opportunity for rep¬

sub¬

from petroleum, ex¬
cept that, after/August; 20,/1946,

also" ftatre/ power/to

shall

the '* Price
Administrator processed
or
manufactured 'in
Adjust or: temove such maxi¬ whole or substantial part from
mum
prices in accordance with cottonseed of soybeans; with re¬
such recommendations.
spect to grains for which stand¬

stantial part

recontroi

./ ; /;■ ~.
"(9) The Price Decontrol

shall

(3) Whenever the Secretary of
Agriculture determines that an

In the case*of milk; the
consider, {and deter¬

regional basis. ?

/. costs,

or? living costs'.

business costs

for? the

mine decontrol or:

and

"(D)

Board & may

inflation

■

•

respect to such commodity /
without .regard : to this paragraph /

objectives for the

with

tion

thereunder?/ .shallz be / applicable

gent

granted; by this Act as' to them the Secretary, -determines to be
With* ^espept/M^
1942, as amended, is afterJune 30,1947;-together;with necessary to attain/the^: necessary
or food .or feed products processed
amended by striking out ."June his recommendations as to establ¬
production of such commodity.
or manufactured in/whole or sujtH
: 30,; 1946"
and substituting "June ished departments or agencies of
sfantial part therefrom, or in the
"(B) The Secretary of Agricul
the Government (other than the
ture by December 31, 1946, shal
case
of leaf tobacco for tobacco
^
Sec. 2. Section 6. of the ,Stabili|- Office1 of Price Administration)
recommend to the Price Admins products: processed or manufac^
i zation Act of 1942r as amended, is which should be charged with the
istrator the removal of maximum tured in whole or substantial part
impended, by striking out "June administration of such powers.
priCeS; oh4aD agricultural com¬ therefrom/ except that, after Au¬
30,4946" and Substituting "June
"(d) Decontrol•. ojP Nonagrwui? modities, whether or not. in short
gust 20, 4946, maximum prices
30,4947." f;/?: v;?? ""• ;;;?,,/?? tural
Comrflodittes.^~( 1) On
or
supply, not important in relation with respect thereto may be re¬
>, Sec. 3. Title X of the Emergency
before December 31,1946, the Ad? to
business costs ot living costs, established pursuant to the pro¬
/Price Control -Act' of 1942, as ministrator shall decontrol all
and prior to that Ndate shall make visions of paragraph (3) of this
amended, is amended by inserting nonagricultural commodities not
such recommendations as rapidly subsection (e), but only under the
after section 1 thereof a new secimportant in relation to business
as, in his judgment, will be con¬ standards prescribed in paragraph
vj tion as follows:
costs or living-costs, and prior to
sistent with the avoidance of a
(8) (C) of this subsection (e).
that date shall proceed with such cumulative
and
dangerous un¬
? "Purposes and Policies in the
"(8) (A) No maximum price
decontrol as rapidjy .as,> in his
Transition Period
stabilizing effect.
and no regulation or order under
/?/
judgment, will be consistent with
? "Sec, 1A. (a) Objectives.—The
"(C) Within ten days after the this Act. or the Stabilization Act
the avoidance of a cumulative and
Congress hereby affirms—
receipt of any recommendation of 1942, as amended, shall be ap¬
dangerous unstabilizing effect. In
"(1) that because of abnor- no event shall maximum prices under this subsection for the ad¬ plicable prior to August 21, 1946,
with respect to livestock, milk, or
;:; inally excess spending power in be maintained after December 31, justment of maximum prices ap¬
food or feed products processed
relation to the presently avail- 1946,
for
any
nonagricultural plicable to any agricultural com¬
or manufactured in whole or sub¬
/ able supply
of commodities, commodity or class of commodi¬ modity, or for the removal of
maximum prices on agricultural stantial
part from livestock or
/ rapid attainment of production ties* unless the same has been ex¬
commodities not important in re¬ milk; with respect to cottonseed or
equal to the public demand is pressly found by the Administra¬
lation to business costs or living soybeans, or food or feed products
one
of the, necessary and ur¬ tor to be. important in relation to
trol

•

of any . commodity

to?housings accommodations in 15,/4947, the President shall such commodities which he
deter?
any (defense-rental
area,
such recommend to the Congress' such mines are no longer in short sup¬
housing accommodations shall hot further legislation as in his judg¬
ply.
No maximum price shall be
be subject to rent control by any ment is needed to establish mone¬

case

isted in

by the
Congress.—(1)
practicable after the
"while maximum rents are in ef¬ .enactment/ of this section and in
fect under this Act with respect any event on or before January

into effect since
The Act: provides

which have gone

tion-.i
f in the

be abolished.

shall

controls)

event later

will be served/by such regular

any

subparagraph (A) such
"(5) Notwithstanding any other Board' fails to direct, on or .before
■"(e) Agricultural Commodities.
—(1) On the first day of the first provision of this or any other4aw, August 20, 1946, that such com¬
calendar
month -which
begins; except as provided in- subsection modity shall npt be regulated un¬
mpre- than thirty days after - the; <h),- the Secretary of Agriculture, der this Act and the Stabilization'
date of enactment- of this section,: in exercising his' functions * underi Act/pf 1942, as amended, maxi¬
the Secretary of Agriculture.shall- this* Act, shall-not be subject
mum; prices-and regulations and
certify^to the Price Administrator, the ^direction^r- "Control -o^>anyt -prders/underrsuchAGts^sh^
other appointive officer or agency applicable: *wiih' /respect'to/s^
•each - agricultural
'
commodity,
which such Secretary determines im the executive branch of the commodity without regard to this
to be in short supply.
•?.
; .;
Government,^ and no such officer paragraph (8).
Thereafter,,
/
on, the first day of each succeed-; or agencjr shall undertake-to ';ex-|
-,«(c) If in the/case.of any .com?/ *' /
ing calendar month the* Secretary ercise^- any / direction or : control; modity listed in Subparagraph ( A)
shall-certify modifications of such over the "Secretary of ' Agriculture! siich: Board, oil/or before- August /
certification by adding other agri? with respect to the exercise of
20, 1946, does direct that such
The. Secretary of commodity shall not be regulated
cultural > commodities which have; such functions.

(Continued from page
ceiling prices: oh many
prices- on
products,: including 1 automobiles

.lifted

subsidy or purchase and
sale operations described in the
last paragraph of section 2 (e)
of this Act.
v
<

graph (3) of this subsection (d),
but
only under the standards
prescribed in paragraph (8) (C)
of subsection. (e)..
...

TV****

or manufactured
substantial
part

agricultural commod-

ity;
«

?; "-(G)ftheaterm/subsidy'

consumers

1946, plus the
unit of any "subsidy
payable with respect .thereto as
of June 29, 1946, and
/
' ; z
"(ii) that such commodity is
in
short supply and that its
regulation is practicable and en¬

June

30,

amount per

forceable, and

means?

this

Act

advise; and

consult

to a commodity, the
standards set forth in this section

with respect

require the removal of

maximum

;

prices for such commodity, it may
file a petition for the removal of
such maximum prices:. In the case |
of any

nonagricultural.commodity.

(iii) - that the pubHc;interest; such .petition;: shall/be; filed

..witbir.

•' -f
£•
A
-,V
W..„. •••;♦> ;>"»i»• U\, v.A.*/, -ft

1 A-W'\« '•«,«>-s/'v'-v:
cJ y.\ \»>*
,7;

'.*.■

^
-

hr* i, .1;
1

;;:

with

In. the

of agricultural

case

appointed -by
and with

filed

with

Agriculture

the

Secretary

by' of: an -order of the Board with 1947, which" involve subsidies" and
respect to the same commodity.
anticipated losses as follows:
than two
"(5) The members of the Board
(1) With respect to rubber

Of the Senate.

Not more
of the; Bioard shall
of

members

the

shall

and

request that he make

propriate

certification

mendation

istrator.

ically
*

the

an ap¬

recom¬

Price-Admin¬

The petition shall

state

with

the

specif¬

grounds

upon

which the committee believes such
action to be required and shall be

•accompanied

affidavits
or
; other written evidence in
support
thereof.^

"(2)

Within fifteen

jafter

receiving; a ^petition filed in
cordance

with

the

ae<-

provisions

this subsection, the Administrator
or

the

Secretary of Agriculture, as
be, shall either grant

the

case may

the

petition

inform

the

com¬

mittee in writing why in his judg¬
ment the standards for decontrol
stated in subsections (d) and (e)
have

not

been

satisfied

with

re¬

spect to the commodity involved.
If the petition is not granted in

the

quorum,

the membership
of the Board shall not impair the
power of the remaining members
to

vacancy in

exercise

bers

functions.

its

the

Board

compensation

$12,000

the

;

year.

Mem¬

shall

receive

rate

"(2) The

Board shall appoint
and fix the compensation of a
secretary for the Board and such
others officers and employes as

be necessary to enable it to

may

perform its functions;

The Bpdrd
make such expenditures as
be necessary for performing

may

its

functions.

with

the

The

Board

of the

consent

may,

head

the

department or agency con¬
cerned^ utilize' the facilities, serv¬
ices, and personnel of other agen¬
cies or departments of the Gov¬
The Board shall main¬

ernment.

tain

office

charge of its
full, the Administrator or the secretary in the District of Colum¬
.Secretary, as the case may be, bia, which shall be open on all
shall, within ten days after the business days for the receipt of
receipt of a request by the com¬ petitions for review and the trans¬
mittee
.of its

fore

for

further

consideration

petition, hold
himself

hearing be¬
a
deputy

before

•administrator

(or, in the case of
the Secretary, before such officer
as he may designate) at which the
committee may present its argu¬
ment

support of the petition.
Consumers Advisory Com¬

^The

mittee' and

the

to such

hearing, present in writing

•evidence relating thereto. Within
fifteen days after such hearing,
the Administrator or the Secrec

tary,

the

case

be,

may

shall

either grant the petition in full or
furnish
the
industry
advisory
committee

with

writing of his
ing it in whole
with

statement

reasons

for

deny-

in part together

statement of any economic

•data

other facts of which he has

taken

official

notice

connec¬

tion with such denial.

"(3) At any time within thirty
Vdays after the denial in whole or
*

action

part, following a hearing, of a
petition; filed under this subsectioh, the petitioning industry adr
vsory committee may petition the

Board.

the

Secretary

of Agriculture.
the Administrator or the Sec¬

retary,

the

case may be, fails to
petition within the
time prescribed by paragraph (2),
the industry advisory committee

act

upon

at any time within thirty
•days after the expiration of the
time so prescribed, petition the
may,

Price

Decontrol
of

removal

Board,

for

maximum

the

prices
commodity involved.

the

rshall

be construed

impair

this
to

section

take

away

right of any person
to protest, in accordance with the
provisions of sections 203 and 204
or

•of

this

nance

any

Act, the further mainte¬
of maximum prices' for a

•commodity

section

(e)
Act

Settlement
insofar

of
of

1944,

hibit any such

re¬

respect

particular matter which is
within the jurisdiction of the
"

with

the " Board

should

standards

set

forth

this

sec¬

"(h) Price Decontrol board.—
U) There is hereby established
an independent
agency in the
executive brahch of the Govern¬
ment a Price Decontrol" Board, to
be composed of three members

and/or processed and marketed

any time become so great as to
preVeht the Board from promptly

subsequently thereto; and that

(B) the premium price plan for
copper, lead, and zinc shall be

conducting hearings upon such
petitions, the Board shall appoint
such hearing commissioners as it
deems

in order to

necejisary

extended until June 30, 1947, on
terms not less favorable to the

producer

ex¬

(i)

pedite the transaction of its busi¬
The

ness,
one

Board

missioners

appointed

the

for

commissioner

shall

necessary in order to make in¬
dividual adjustments of income
to

date

ever

specific mines.

which resulted directly or 'indi¬
rectly in the lowering of ceiliiiig
prices below the maximum price

levels established by the Office of
Price Administration prior to' the

institution

of the subsidy
phy-,
purchases and sales at !st
the execution of the corf,

ments pr

loss;

or.

tracts

therefore, whichever

the earlier.

(d) Nothing in this section sfeit
be construed to affect the
'pro¬
visions of Public Laws 30,
88,T64„
and 328 of the
Seventyrhinth Con-

gress, or to prevent the^use pf the
sums authorized in
sucji • laws ton
fulfull obligations incurred prior
to July. 1, 1946, with respect to
operations prior to such dateu.

con¬

(e) Notwithstanding any of the
foregoing provisions of this sec¬
tion

and

such

concentrates

tin
it

ores

1946

and

operations

gram

shall issue

smelter.

tion

therewith.

will

and

provide

for

consistent

summary

with

sound

dis¬
de¬

cision, of petitions filed with the
Board.

the

petition

made

under

subsection

fically

(g)
(3) shall speci¬
state the grounds upon

which

the

petitioning industry
advisory committee believes that
maximum
prices on the com¬
modity involved should be re¬
moved.
A copy of such petition
shall forthwith be served
Administrator

the

Secretary,
as
the case may be, who shall
within such time as may be fixed
by the Board certify and file with
the Board a transcript of such
portions of theproceedings .4n
connection

with

the petition

un¬

der subsection (g) as are material.
Such transcript shall include
a

statement

writing of the Ad¬
ministrator's or Secretary's rea¬
sons for believing that maximum
prices on the commodity involved
should

not

with

data

removed, together

statement of any economic

other

facts

which

has taken official notice.
earliest

practicable
shall

Administrator

the

the
hearing

time

conduct

the petition,

At the

which

the

the Secretary, as

be, and the commit¬
tee shall be given an opportunity
to present their views and argu¬
ment orally
or
in writing.
If
application is made to the Board
by either party for leave to in¬
troduce additional evidence, the
Board may permit such evidence
case

may

to be introduced or filed with it if
it

deems

mines

that

material
such

and

evidence

deter¬

could

not

order in conformity
If the Board does not

Board
it

"(3) A

record

hearing

proper

upon

(4)

With respect to noncrop
1946 crop program
operations and the 1947 crop

the

upon

conduct

may

^program

new

the petition before

tic and

4. Section

Sec.

(a)

imported materials and
commodities, $869,000,000: Pro¬
vided, That the operations au¬
thorized
under || this
subpara¬
graph (4) shall be progessively
reduced, shall be terminated not
later than April 1, 1947,: and
shall not cost more than $629,000,000 during the last 6 months
of the calendar year 1946. Oper¬

the

Emergency Price Control Act of
1942, as amended, is amended by
adding at the end thereof the fol¬
lowing

sentence;

new

"In

ad¬

ministering the provisions of this
subsection relating to the estab¬
lishment
of
industry
advisory
committees,
the
Administrator,
upon the request of a substantial

ations

portion of the industry in any re¬
gion, shall promptly appoint a
regional industry advisory com¬
mittee for such region."
Sec.

Section

(b)

dential

maximum

modity

operation,

mechanical

details

tion between the
and

the

:
•

such operation shall be un¬
dertaken under authority of this

will
increase the rate of subsidy paid

and " apartment

under, this

shall

housing

make

and

issue

order

tourists

with

respect

which

Board

shall; not

subj ect to
by any
other department or agency or by
any court.
modification

review

"(4) No petition
with
any

the

may

Board with respect to

commodity within

three

be filed

months

after

period of

the

issuance

which

incurred
effect

accommodations in any
defense-rental area, such housing

maximum

which

the rate of loss incurred with

-that

the extent, if any, to
prices on the accommodations shall not be sub¬
commodity involved shall be re¬ ject to rent control by any State
moved.
The Board shall order of local government."
specifying

(4)

respect to any commodity above

"While maximum rents in effect

Act

tial

and

1942,

authority of this subparagraph
(4) with respect to any com¬
modity unless a subsidy or pur¬
chase and sale operation with
respect to such commodity was
/in effect on June 29, 1946; and

subparagraph

houses,

considered to be

hew»

shall
sub¬

sidy: Provided, That Commodity
Credit Corporation or any other
Government •; agency shall not
sorb any increase in
paid for Cuban sugar
cents per

pound,
being

the

price
3.6t5r

over

basis, f> x>. b*
paid for such
sugar, in Cuba, on June 30, ^946.
(f) Nothing inihis section

Cuba,

raw

erans'

Emergency Housing A^t of

1946; and nothing in this Act

prices

Act

tion shall be undertaken under

hotels, and
courts,
rooming
boarding houses.

program operation on sugar

in any other Act shall

hotels, and is directed to
classify' separately by regulation
(1) transient hotels, (2) residen¬
(3)

distrib¬

prohibit the

establishment of maximum £ales
■

maximum rents for hous¬

ing ; accommodations for which
petroleum hiaterjals or 'facilities are allo¬
produced from stripper wells cated, or priorities for delivery
shall be continued at not to ex¬ thereof issued, under said Vet¬
ceed the existing rates. No sub- erans' Emergency Housing Act of
V
sidy or purchase and sale opera¬ 1946.

ment

reasonably have been offered
in
the proceedings
under
subsection
(g).
At the
earliest practicable time after the
hearing on any petition, the Board
included

prices on such com¬
not in effect under

resi¬

apart¬

and

dies with respect to

expenses,
of opera¬

and

processed

are

amended: Provided, That subsi¬

'•

transient hotels

residential

respect

uted, and the cost of 1946 Crop,
program operations with • respefct
to sugar may be charged to'; the
funds authorized by Public- L&ws
30,
Seventy-ninth Congress,
amended by Public Law 328, 'Sev¬
enty-ninth Congress. For
pose of this section 6, no subsidy

Stabilization

apartment hotels, in¬
the
difference
in
the

investment,

with

be continued until " such

sugar,

the ' Emergency Price
Control
Act of 1942, as amended, or the

cluding
and

and

are

be¬

distinction

hotels

out

effect

respectfito

:maxirrfumt

ring after the date of the enact¬ be construed as a limitation upone
of this Act during which operations authorized by the Vet¬

is authorized to take into
transient

tween

carried

while

may,
prices are in
crops

1947 brop ipfro—

with

ment

the

which, this
paragraph takes effect, the . Ad¬
ministrator, 1 when
establishing
rent ceilings on hotels or when
passing upon applications for ad¬
justments
of
rent
ceilings
on
the

authority of this subpara¬
graph (4) ""with respect to any
commodity for any period occur¬

"After the date upon

consideration

shall not

under

Emergency Price Control Act. of
1942, as amended, is amended by
adding at the end thereof the fol¬
lowing new paragraphs:.

hotels,

operations relating to

sugar,- flour, petroleum, petro¬
leum products, and other domes¬

the Board."
,

programs,

issue such order

may

deems

recommendations,

deems

necessary

su|ch

approve

dafe^S

Corporation,

with

this subsection to the Board

of this Act, whichU
thej later. K Fo^ the
purposes of this paragraph,the
term "roll-back subsidies".,means
subsidy' payments,vor purchases:
upon passage

(3) With respect to purchases
by the Reconstruction Finance

make

consistent

depredation -and depletion,

and (iii) all classes of premiums
shall be noncancelable unless

authority

recommendations

and

quate allowances shall be made

con¬

of
the
Board with respect to 3uch hear¬
ing.
After a hearing conducted
before
a
hearing commissioner,
the

heretofore

exploration and
work,
(ii) ade¬

encourage

development

duct the hearing upon any peti¬
tion under this subsection and to
exercise

than

adjustments shall be made

authorize

may

of the hearing com¬

dumps or tailing piles before
July 1, 1947, though shipped

(6) If the number of petitions

filed

January

of the roll-back • subsidy or

ance

(2) With respect to- copper,
and sales of a commodity at :a' loss
lead; and zinc, in the form of
premiuni price payments, $100,- by the Government of the United
States
(including any
GoVefttf000,000: Provided, That. (A) pre¬
miums shall be paid on ores ment-owhed or controlled eoipdration),
or
contracts
mined or removed from mine
therefdV*

of any

Board.,

before

1946, $31,000,000.

except

member from

compensation

made

were

Contract

such sections may pro¬

ceiving

the

subsection

tion.

113 of the Criminal Code (18
S. C., sees. 198 and 203)
or

and

under the ' standards
(d) or- (e): Pro¬ the removal of such maximum
Sec. 6. (a) The last paragraph of
vided, That the filing of such a prices if and to the extent that section 2
(e) of the Emergency
protest or of a petition under in its
judgment the standards of Price Control Act of 1942, as
paragraph 3 of this subsection decontrol stated in subsection (d) amended
by the Stabilization Ex¬
shall not be grounds for staying
or
(e) have been satisfied, yrith tension Act of 1944, shall not ap¬
any proceeding brought pursuant
respect to the commodity in¬ ply with respect to operations foe
to section 205 of this Act or sec¬
volved.
The Administrator shall the fiscal year
ending June 30,
tion 37 of the Criminal Code, arid
remove
maximum
prices with 1947, of the Commodity. Credit
no
retroactive effect shall be
respect to the commodity in ques¬ Corporation and the Reconstruc¬
given to any judgment setting tion within such time and to such
tion Finance Corporation: Provide
aside a- provision of a regulation,
extent as shall be specified in the
order, or price schedule under the order of the Board. Orders of the ed, That with respect to such cor¬
of

produced in Latin America and
Africa for which; commitments

;

position, with the utmost expedi¬

"(4) Nothing

The Board shall prescribe

the

sugar,

Board

review

the

to insure continued
operation of the Texas City tin

upon

such without regard
provisions of sections 109

may serve as

cerning its action with respect to
the petition.
If the Board ap¬
proves such recommendations, it

under subsection

(h) for

business

procedures
for
the conduct of its business which

Price Decontrol Board established
of the action of the Administrator

other

regulations

Labor

Advisory
Committee appointed by the Administrator shall be given notice
of any such hearing and an op¬
portunity to present their views
with respect to the petition and
may, not later than five days prior

Such price increase shall become
either upon discontinu¬

effective

•

political

same

regulations prescribed by him and

accordance

641

President

party.
Two
members
Board shall constitute a

Of'd

the advice' and consent

commodities,, such petition shall members
be

the

iKBWWtowHtc.,

THE COMMERCIAL <& FINANCIAL CHRONICLE

Administrator \in accordance
regulations prescribed by

him.

tawm iratur.

SHIfe

Number 104^ "Number~4512'

the

r'-rilV'l'flllilfrltffiffyWlte'tf^WrV^iff'iiiiiVifa'Mw'.C

-i

been

would

paid or
if the operations
in
"June 29, 1946, had

continued

the

same

basis.

(b) When any direct or indirect
subsidy to an industry is reduced
or terminated, or upon reconttol
is not restored

is restored only

Sec.
7.
Section
2
(i) of'«the!
Emergency Price Control Act of
1942, as amended, is amended tor
read

Act

For

and

1942,
sea

follows:

"(i)

the

purposes

Stabilization

this

Act

amended, fish and other

food shall be deemed to be ag¬

ricultural

modities

commodities, and
processed

tured in whole

• com--

manufac¬
substantial part
or

from fish of other seg foods shalf
be deemed to be manufactured in?
whole

substantial part from ag¬

ricultural commodities :••• Provided*
That the provisions of section 3 of
the Stabilization Act of *1942,^^

amended, shall not be applicable
with respect to. fish and other seat
foods and commodities processed
or

manufactured in whole

sub¬

stantial

part therefrom, _but the
part, any maximum price ap¬
price established, for
plicable to the product affected any fish or sea food commodity or
shall
be
correspondingly
in¬ for any commodity processed or
creased, except in the case of manufactured in whole Or sub¬
transportation subsidies, differen¬ stantial part therefrom shall not
or

tial

maximum

subsidies ' to

high-cost pro¬ be below the average price there¬
and premium payments for in the year 1942."
;
-vunder authority of the Veterans'
Sec; 8.
Section 2
(j) of the
Emergency/Housing; Act of 1946; Emergency Price Control Act of
(c) Where* roll-back subsidies 1942, as amended, is amended by
ducers,

have previously been or presently inserting before the period at the
end thereof a semicolon and the
are in effect, and have been dismakxrig of subsidy payments and I continued, or shall hereafter be following: "or; (5) as authorizing*
biiyirfg for resale at a loss shall f discontinued, the industries which any regulation or order of the Ad¬

porations and such operations, the

be limited

follows:

Payments and purchases may be

J have received such subsidies shall
be.
permitted

increase

their

ceiling prices at least an amount
lr.' de with respect to
operations .equivalent to tie amount of the
for the fiscal year ending June 30, discontinued
back
subsidy.
..

ministrator

percentage of

fix

quantity

product which
any seller may sell to any buyer."
Sec. 9, Section 2
(k) of the
any

(Continued

on page

642) >

fiscal year, basis,
f'-■■ ■ .%*•„ year - •# M Irtb ' "i" ♦ f '
, ''*• »VT 1940;
iScal

Full Text of New OPA Bill
Price Control Act of

Emergency

ment0 ; after the words "seller of

goods at retail".
Section 2 of the Emer¬

10.

Sec.

Price Control Act of 1942,
as amended, is amended by add¬
ing at the end thereof the follow¬
ing new subsections;
'
"(o) No maximum price shall be
applicable to any item served in
any restaurant or other eating es¬
tablishment if such item consists
in whole or major part of a com¬ centage

gency

modity

which

maximum

price is applicable with respect to
sales to restaurants and other eat¬

establishments,
unless the
price of such item*
by such restaurant or

ing

maximum

When sold

other eating establishment* is de¬
termined,
under the applicable

price

maximum

regulation

order; by the addition of a cus¬
tomary margin to the acquisition
cost of such item.
"(p)

1946,

regulation

July

After

price

maximum

issued or continued
in effect requiring any seller to
limit his sales by any weighted
average price limitation based on
his previous sales.
order shall be

and.

the industry's
^ ** ■"**''t*4^ Vl" »•
.
,

„

The

prices,.

shati

: consider

Administrator
evidence

the

;

discount or mark-up as
on March 31, 1946.

pursuant to section 204, authorizes such person to sell any
relief; and such court shall commodity or commodities with
have jurisdiction by appropriate respect to which a regulation or
"(u) After the date upon which
order issued under section 2, or a
order to require the Administrator
this subsection takes effect, no
maximum price shall be estab¬ with this standard ij^such prices to make such adjustments or deny price schedule effective in accord¬
lished or maintained, under this on the average are equal to the such application within such time, ance with the provisions of sec¬
Act or under any other provision
average current total cost of the not to exceed thirty days, as may tion 206, is applicable; but no sus¬
of law, with respect to any new product plus the industry average be fixed by the court. If the Ad¬ pension shall be for a period of
commodity when the Administra¬ over-all profit margin on sales in ministrator fails to make such ad¬ more than twelve months, and if
tor upon application finds that its the base period.
justments or deny such applica¬ the defendant proves that the vio¬
"(c) For the purpose of deter¬ tion within the time so fixed, no lation in question was neither"
use, in the production, manufac¬
turing, or processing of any com¬ mining costs under this section, maximum price shall thereafter be willful nor the result of failure
modity or commodities, without currently or for the base period, applicable with respect to any i to take practicable precautions
of
such
product by
any against the occurrence of the vio¬
increasing the cost to the ultimate the Administrator shall ascertain sale
the costs of a reasonable number seller."
lation, then in that event no sus¬
user, either increases the life or
was

in effect

reduces

of production,
processing of the

cost

the

manufacture,

turers, or processors and

commodity or commodities pro¬
duced, manufactured or processed.
As used in this subsection the term
'new commodity* means; a com¬

created

ing, or processing the same accru¬
ing since the base period, but the
maximum
prices for a product
shall be deemed in
compliance

producers,

typical

low

for

manufac¬
shall fol¬

Sec. 12.

accepted methods of account¬

ing and such fair and reasonable
methods of calculation as he shall
establish by regulation,

adjustments

for

sales or the finished-woven-fabrics or
cost
to
period of finished-knitted-fabrics
six months shall have reached the, which a mark-up is to be applied
average annual retail unit sales based on the degree of integra¬
thereof for the calendar years 1939 tion of the seller.
modity before the retail unit

sions of

of such commodity for a

to1941, inclusive..

and

under

the

provi¬

sectioi|(C>: of this. Abb

costs

(s)

maximum. price: reg¬

require the
reduction of the established peace*
time discounts or mark-ups for
the sale of any manufactured or
processed commodity (treating as
a
single commodity for the pur¬
poses of this paragraph all com¬
modities in a line of related com¬
modities which, for the purpose of
establishing manufacturers': and

to prevent
importation or
curtailment of domestic trade."
Sec. 11. The Emergency Price
Control Act of 1942, as amended,
extent

the

such

necessary

reduction in

processors' maximum prices, have
been placed by the Office of Price

is amended by

Administration under a single reg¬

inserting after sec¬
the following new

section;

wholesale, or
selling
such commodity shows that the
commodity constituted approxi¬
mately one-half or more of the

tion

ulation) if the retail,
other

distributive

trade

5 thereof

"Sec;
of

this

shall
or

6. (a) For
section

in the

the
case

the

purposes
base period

calendar

year

industry

1940,
cus-

tomarily keeping its accounts on

and

after

the date of the

this

shall be unlawful to

charge or overcharges if the de¬
fendant proves that the violation
of the

willful

regulation, order, or price
question was neither
nor the result of failure

to
take
practicable precautions
against the occurrence of the vio¬

of the fol¬

"(1) The cotton or wool cost
(which must be computed at not
less than the parity price or the
current
cost,
whichever
is

schedule in

greater, of the grade and staple
? of cotton or wool used in such

gency

it^m. delivered at the mill);
"(2) A weighted average of
mill conversion costs; and
"(3)A reasonable profit(which

shall not be less than

(b) Section 205 (e) of the Emer¬

Price Control Act of 1942,
amended, is amended by adding
the end thereof the following

ulation or order shall

enactment

lowing:

inclusive;

1942, as amended,
adding at the end
thereof the following new para¬
graph:

made in

tion for
"The

institute

response

Administrator

shall

not

maintain any enforce*

ment action under this

subsection

manufacturefc. of ap*
pare! items where the Adminis¬

against any

weighted

both inclusive)."
Sec.

15. The Secretary of Agri¬

culture, through the Commodity
Credit Corporation or otherwise,
is

hereby

authorized

allocate

feed which he controls to feeders

in domes¬
determine
in an emergency shortage
condition with respect to animal
and poultry feed.

of livestock and poultry

tic

areas

which he

Sec.
ducers

16.

(a)

may

In the event pro¬
by

of wheat are required

issued pursuant to the
Second War Powers Act, 1942, as

order

amended, to sell all or any part
of wheat delivered to an elevator

prior to April 1, 1947, the Com*modity Credit Corporation shall
offer to purchase the wheat so re*
quired to be sold at a price deter¬
to an invita- mined as follows: The purchase

competitive bids.

profit for each unit of
such item equal to the weighted
average of the profit earned on
an equivalent unit of such item
during the period 1939 to 1941,
average

anc( to make possible the balanc¬
ing
of
"',^■'■1
supply
and
demand, yarn.
promptly" remove maximum pur¬
"(i) Nothing
in
this section
chase prices from imports of such shall be construed to require any
commodity and maximum prices adjustment in ; maximum, prices
j from products processed directly except pursuant to an application
therefrom, or lncrease the maxi- filed under this paragraph, or be
mum
prices of imports of such construed to" invalidate any maxi¬
commodity
and : of
products mum price unless there is a fail¬
processed' directly therefrom to ure to make adjustments,. iiL ac¬

Act

not less than the sum

annual wholesale unit sales
thereof for the calendar years 1939

di¬

is amended by

shall be the amount of the over¬

erage

Sec. 14. Section 3 of the Stabili¬

zation

the

shall require any; further ad¬ new paragraphs;
justment of such maximum prices ; "The Administrator may not in¬
(average price at which such for any period with respect to stitute any action under this sub¬
which it appears that a substan¬ section on behalf of the United
calendar years 1939 to 1941, in¬ commodityi could be. purchased
when landed duty paid at any tial expansion ih the production States, or, if such action has been
clusive, of sales of a commodity
United States, port of entry) ex¬ or use of the produpt. would not instituted, the Administrator shall
or commodities, the production or
maximum purchase be practicable or would, be prac-* withdraw the same—
wholesale s distribution y of; which ceeds-the
ticable only by reducing the pro¬
"(1) if the violation arose be¬
has been reduced for a period of price established by the Admin¬
duction of at least equally needed
cause
the
person
selling the
three years beginning on'or after istrator, and results in—
commodity acted upon and in
March 2; 1942, by: 75 per centum
"(1) an actual reduction of products.
accordance with the written ad¬
the importation of such com¬
"(g) As used in this section,
or more below such production or
vice and instructions of the Adwholesale distribution for; the cal¬
modity into the United States in 'product' shall mean any major
ministrator or any regional ad¬
an
amount substantial in rela¬ item, or any article different in
endar- years 1939 to 1941, inclu¬
ministrator or district director
tion to the total consumption of character from other*products of
sive, as the result of the operation
of the Office of Price Adminis¬
the commodity in the United the industry; but all the styles,
Of any governmental regulation or
; models, or other varieties of any
tration; or
States; or
restriction, the Administrator shall
1
"(2) if the violation arose out
not
in
establishing
maximum
"(2) the substantial curtail¬ such item or article shall ;be con¬
of the sale of a commodity to
sidered as one product.
ment or restriction of the do¬
prices under this section, reduce
mestic trade in such commodity
established wholesale trade; dis¬
any agency of the Government,
\ "(h) The provisions of this sec¬
or td any public housing author¬
or
counts or normal wholesale mark¬
products processed directly tion shall not apply with respect
ity whose operations are super¬
therefrom,
ups for any such commodity pre¬
f to any maximum; price applicable
vised or financed in whole or
vailing on March 2, 1942, bCfore the Administrator shall, in order to manufacturers or processors in
in part by any agency of the
the wholesale unit sales- of such to maintain and increase domes¬ the, case
of products made in
Government, and such sale was
commodity for a period of six tic production and . employment whole or major part1 from cotton
made pursuant to the lowest bid
months shall have reached the av¬
or cotton
yarn or wool or wool

"(r) In the case of any whole¬
industry, the principal sales
of
which consisted- during the
sale

ordered

vided, however, That such amount

"(fh If to- maximum.priceslof

reasonable profit, nothing here¬

determined

rected."

paragraph, it
establish, or
maintain, any maximum price ap¬
the amount of the overcharge, or
plicable to manufacturers or proc¬
the overcharges, upon which the
essors, for any major item in the
action is based as the court in its case of
products made in whole ot
discretion may determine or (2)
major part from cotton or cotton
an amount not less than $25 nor
yarn or wool or wool yarn, unless
more than $50, as the court in its
the maximum price for such major
discretion may determine:
Pro¬ item is fixed and maintained at

lation."

product on the average equal
its average current total cost plus
a

pension shall

court, plus whichever of the fol¬
lowing sums is greater: (1) Such
amount not more than three times

"(x): Whenever the world price
of a commodity essential to the
economy
of the United States

(e)

including subsection, the seller shall be lia¬
cost ble for reasonable attorney's fees

sonably anticipated to be elimi¬
1939 to 1941, inclusive;
nated within the three
months"(v) In the case of softwood
of sales of a commodity or com¬
following the Administrator's de¬
logs, and lumber, the maximum
modities the production or retail
termination, and adjustments for
distribution of which has been re¬ prices shall - be established at a increases in the volume of pro¬
level which will permit producers
duced; for a period of three years
duction which may be reasonably
of at least 90 per centum, of the
beginning on or after March 2,
anticipated
to
be
experienced
production of softwood' Iogs: and
1942, ' by 75 per centum or more
within such three-month period.
lumber to recover their current
below such. production or retail
"(d) Maximum
prices
estab¬
distribution < for
the
calendar costs of production.
lished hereunder shall not be held
"(W) In - establishing maximum
years 1939 to 4941, inclusive# as a
invalid on account of their failure
result of the operation of any gov¬ prices for sales of finished woven
to return his costs to any par¬
ernmental regulation;;:orrestrict or knittedfabrics madeprimarily
ticular member of any group in¬
tion, the Administrator shall not,- of cotton fiber or for the sales of volved.
in establishing maximum
prices apparel -made therefrom it shall
"(e) Nothing herein shall nul¬
under this section; reduce estab¬ be unlawful for the Administra
lished peacetime retail trade dis¬ tor to establish or maintain dif¬ lify the power of the Administra
tor to make reasonable adjust¬
counts or mark-ups or dealer han¬ ferentials in the method of deter¬
ments
and
exceptions ^ ihv.^hfe
dling charges for any such com¬ mining the basic grey-goods cost
cases

205

temporary

abnormalties which may be rea¬

dividual

(a) The second sentence

section

of the Emer¬
gency Price Control Act of 1942,
as amended, is amended to read as
follows: "In any action under this

endar years

of Appeals in
203 and

accordance with sections

"(q) In the case of any retail
modity which was not commer¬
industry, the principal sales of
cially
or
industrially available
which consisted during the cal¬
prior to January 30, 1942.

to 1941,

Court

Emergency

204•
"(b) In order that adequate presented and all evidence other¬
wise available to him and within ^Sdc!!;;j3^:The .third' sentence of
general price levels shall be estate
lished for all commodities to bring sixty .daysr- after the receipt of paragraph (2) of section 205 (f)
gross sales income of a majority about maximum production and such application, he rsfralL make of the Emergency Price Control
the
of the persons engaged in such
adjustments
in
maximum Act of
1942, as
amended,
is
employment, no maximum prices
trade in 1945 and that, in the first
amended to read as follows:
"If
shall be established, or maintained prices required by this section# or,
quarter of 1946;; the-deliveries /:of for any product, of a producing, if he finds that no such" adjust¬ any such court finds that such
such commodity to such distribu¬
manufacturing, or processing in¬ ments are required, he shall deny person has violated any of the
tive trade < were less than 100 per
dustry .(including any industry the application; If the Adminis¬ provisions of such license, regula¬
centum of the deliveries thereof furnishing * service or transpor ta- trator neither makes the adjust¬ tion, order, price schedule, or re¬
in the corresponding quarter of »ioh. the charges, for which are ments in the maximum prices for quirement after the receipt of the
1945, P#%, y: H
■,:;1 ■ subject to the Administrator's any product required by this sec¬ warning notice, such court shall
"(t) In establishing maximum control) which do not return; on tion,- iior denies, the application issue an order suspending the li¬
prices applicable to wholesale nr the average, to the. industry not for such adjustmenjs, within the cense to the extent that it author-*
retail -distributors, the Adminis¬ less ton the average dollar, price sixty-day period prescribed in this izes such person to sell the com-'
tration shall
allow the1 average of such product during the base paragraph, the industry advisory modity or commodities in connec¬
current cost of ^acquisition of any
period, plus the average increase committee concerned may petition tion with which the violation has
commodity, plus such average per¬ in cost of producing, manufactur¬ the Emergency. Court of Appeals, occurred, or to the extent that it:

(Continued from page 641)
1942, as amended, is amended by
inserting the words "or any op¬
erator of any
service establish¬

Thursday, August 1, 1946

& FINANCIAL CHRONICLE

THE COMMERCIAL

642

price paid for the wheat
the market price at the
delivery as of any date
ducer may elect between

shall be
point of
the pro-*
the date

of delivery and March 31,1947, in¬
clusive: Provided, however, That

determine (1) that only one electionmay be made for
on which such ; each lot of wheat; Awd provided:
cordance with the procedure pre¬ proceeding is based consisted of further, That the producer may
not elect ^vdate prior tq the; date
scribed in this paragraph, to such the manufacturer's selling such
on which he mails a written notice
extent as may be required to com¬ an item at his published March
1942 price list prices instead of to Commodity Credit Corporation
ply with to standards set fprth
of his election.? In the event the
in this section.
Any industry ad¬ his; March 1942 delivered prices,
and. (2) that the seller's custom¬ producer does not notify Coin-.*
visory committee .may apply to
; modity
Credit
Corporation to;
the Administrator for the adjust¬ ary pricing patterns for related
ment of the maximum prices ap¬ apparel items would be distorted writing by March 31, 1947, of his
election of a date for determining
by a requirement that his ceilings
plicable to any product in accord
be* .the
March
1942 delivered the market price, such date shall
ance with the standards set forth
1
be deemed to be March 31, 1947*
in this section, and shall present prices. The Administrator's deter¬
(b) Any > producer of wheat;
with the application comprehen- minations under this paragraph
who, prior to the date- of enact-*
sive evidence with respect to costs shall be subject to review by the
trator? shall
the

transactions

"r-

••♦■^fiw *'. -' ST"/-

v^*

'•**?•

•*"?»-

»-v*••?• t V**

•••

y -.v

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,t\s&vJ 4AJ i-t Yl* ;■ u jM^vW-WsJM.
IV-r.V *i ^"':Y'.

-^v

Sv/'>i- ^ v1^;v

.*T »>v'v'

*>>•'-

t" ftt'*'

J. &

V:
\y,

,<:V

* *

"**v*V: *

x,,* •• ■ >.;■> &!»?*«
Vf->?' >'v;

»
-

'Vi '<>£■'*•••

A^tyfcv.;#:;;•;•£.;?'

,:v

-I

•'

"■

•

./•'•■£
r'l*^wXopV,?^ ?!™ /'>/">;:{^i.-Vrt.•*$>,tif.'^i.-'-'i:^.^.!-W,'V-'k'-'H>;:J.AVtiv8.;rMT)^1''

A-V^^.5.^'j5^v/:ivfr^-;^;:^£V;-t-

}

•

■

£,

■

'V')' •''':.- '':X'i";jfv;

■:•■/..%'iXX'X.-

•'/» h'vt^V;"1.' :>v;

S\+

;

'vyjr.r.-V*..'''<,.■•*-,'

■

...

*(*•;»»

■>,.

it'/SV;'.■>:• .<:V.VoV:"''••>'':•

•rt.*V'i,:." /■'■

•;••' '

wheat*

;

hiehts

'••

has/Sbld /aftyj Emerg^cyi Price - Control * A6t -.of
pdrsdahtitd^'th^^eqUire-lf i942^:as^mhehde(i/pr^t^

•

iii

of paragraph

time

any

<ee)

within

thirty

his Act, pay to the Commodity

of
;

such
•

ing

"V^hiCh he sold

eat./; Any producer

pay-

a^y such sum to the Commod-

ity Cred-t;Coipbr&ticm
to

c eerr.ea

have

sold

shall

and

deliV4

rred
to
the Commodity "Credit
; Cbrpora'ion &s of the date he pays
such sum a quantity of wheat

•

| equal in 'grade'iiiid; quality/to the
}
quantity <sold by* hint pursuant f0
•

such

requirements~bnd tHq •; piir4

cha"£ p^-ice to be paid to him fot

such wheat shall be determined iii

the

same manner "as

in the case of

a sale of wheat to; the
Commodity
Credit Corporation pursuant to the
provisions of subsection (a) of this

:
•

the-same

section.

Sec.

This

"Prir»e

Act may be cited

this

18.

Act

(1)

shall

•

ahy V case

iii

amended X except sections ! 8

aiid

to the number of

this

Act,

days from July

both inclusive:

Pro¬

vided

tion«, orders, price schedules, and
reqmrements under the
Emer-^

the

deemed

violation

Emergency Price Control Act
of 1942, as amended, or the Stab¬
ilization Act of 1942, as amended*
or of any regulation, ofdeV, price
schedule, or requirement under

(e) thereof relating to meat, floup, either of such Acts: Provided fur¬
cof*ee). and the Stabilization ther, That insofar as the provisions

•

'Act

1942.

amended, which
in effect on June 30, 1946,
shall he ih effect In the Same man¬
and

ner

to the

same

extent

tMs Act had been enacted

which "*

Act require the Adminis¬
trator to make any change in any
maximum

shall

June

such

,?0. 1946, and (3) any proceeding,

pet'fon,

of this

application, or protest
pending' under the

was

paiHicipate;;por;shall si& nMce^ fae're$^

subject to thetsupervjsion.or direction of

any

hailroad Equities

officer,

iii public

1940, must be considered small in
relation : to ; prevailing i .markfei
prices for railroad equities. How¬

proceedings."

the

not

such

price,
be

change

deemed

thirtieth

provisions
require

made

before

following

day

date of enactment of

the

simple matter.

;

calendar

ever,

year

earnings

are

less ' significant marketwise than
the prospective annual ra.e at
any

particular time.

With present

ing to

indications point¬

an ahnual rate of

iearnin^s

of around $650,000,000 for Class X
roads. beginning in the latter pairt
of
this year and continuing in

same

would be

$46,-

this figure, while higher tlian ;that
of ahy calendar year from 1930 to'

decision, redommended decision, or agency
^vieW phistianf to sectiofa 8 excejpt as ivitneas Pr Pounsel

contribution of some

000,000 to net quick assets
; ,J. *
We es.imate that the net income
of all roads for 1946 will be in the
neighborhood of $385,000,000, and

advise in the
•

||?|

(Continued from page 614)
was; a

agency may still ^ exercise all these pbwers. ^ Dehipn|
Iy 1946, to the date Of enactment strating a violation of the statute caused
by inside wbrkings,

June 30, 1946, and (2) all regula-r

yency price Gantrdl Actrof 1942,
:as amended (except regulations
ct requirements
under section 2

The Outlook for

date of enactment of this Act shall

643:

••■■ ••■•

quirement under either of such
Acts; prescribes any, period ; of
Thiis it|wili be seen thht;the eyil of 'irtieidockin
iime within which anjr act; is ,r04
tioiis whicHhve have so
persistently decried is iii a measure
quired1-or permitted to be
done; removed.
and; such period had cbmmehcea
but had not, expired on June
We say "in a measure" because
30;
although, "supervision
1946, such period is hereby ex¬
or direction" is
tended' for h number of
apparently Snow removed by statute, the
days equal

take

effect

P)$brahy legulatioh^^der^ofcre^

The provisions of

Extension

cept sections 204 and 205 )i or the
Stabilization • Act! - hf 1942/

further, That no act or
transaction, or omission or failure
to
act, occurring subsequent to
June 30, 1946, and prior to the

Control

•Act of 1946."'
Sec.

That

■<

employee, or agent engaged in the performance of investi¬
gative or prosecuting functions for any agency. No officex
employee, or agent engaged iii the performance of investif
/ gatiye pr pipseciitlhg functions for any agency in any tas4
shall, in that or a factually, related case, participate of

June; Y30, ^ 1946;

whiqh the Emergency Price Con4
trpl^^;Act^qf^^1942/ as amended (ex^

17.

the

'as

Provided,

to or

the

this Act had

extent

same

and

manner

Ctedit" Corporationa.sum' equal heehv enacted'

*to thp amount fOif

parties to

ceeded with and shall be effective
in;

:'■

no such officer shall consult
any person or party on any
fact in issue unless upon notice and
opportunity for all

(1) of zation Act of 1942, as amended,
War Food Order Numbered' 144; oh June'30, 1946,; shall - be
;pro|

may,'

;•'•■■,

''<■'■." 'V Wi* /V'"'~"V

/</, .;•,
i

n,.'■

...

Vf.:

1947, current market quo ations of
carefully selected stocks iii ouq
Opinion are^very reasonable.*'
fv;

.;j

our

opinion it would have been much'better, and
more consonant
lyith pur system of jurisprudence, if ' the
separate function were exercised by independent agencies in
no
way responsible one to the other.
/
• t
Under

• ■

Y-

The Interim Freight Rate Decision
The interim freight rate decision
carries ; substantial • benefits: for
eastern roads in view of the sup¬

the

subpoena provisions, the issuance of such
plementary rate increases author/
process is made obligatory where a statement is furnished ized on all traffic
(except iron-ore;
showing the general relevance of the testimony and the rea¬ coal and coke)^ moving within
Official ^eiassixication" 1 territory
sonable scope of the evidence
sought.
^
!!
Sanctions, rules and orders must be supported by
liable, probative and substantial evidence."

(Which includes the territory) east
a line -from / Chicago : through!
Feorla to St. Liouis and the>Missis4
of

reI

•

sippl '^nd^nbrthsof > thel Ohio teqmd
All decisions must include
^findings and conclusions, Potomac Rivers). A number of
giving the reason and basis therefor, upon all the material these roads have. some; mileage
issues of fact, law or discretion
Out^ide^Of4^OffiCial;^^Classification
presented on the record.
Reviewable acts

territory^ but such mileage ismot

defined, the right of judicial review important. However; in view: of
considerably enlarged, and provision made for the granting the huge net losses incurred dur-:

this Act.

are

Approved July 25, 1946.

ing the first six months, most Of

of iterim relief.

the^ big "eastern trunk

This

lines

will

legislation further provides for the appointment of ui^OUbtediy haVe^ofhet resuha
examiners who are removable
only "for good cause" estab¬ for the year-1946. '
Roads in- the south and .west will
lished and determined by the Civil Service Commission, after
(Continued from page 607). J
JbehOfit less from thfe decision^; Aft
an
opportunity for a hearing and upon the record of such important reason is that rates on
Under the terms of this legislation every administrative!
hearing.
| agricultural products1 are raised
agency is obligated to separately state and currently publish
only 3%,- The /average, western,:
in the Federal
Aihong PtfaerS, the bill Was sponsored and approvedatoot^
Register-^the American Rar Association.
,4 *
~V
oi its revenue from traffic in these
"(1) descriptions of its central and field organization
TbPse WhP are engaged in the securities
industry/wRl^
including ;dete^ti0ri£ lather
naturally be concerned with the effect of this new law upon some i0%.
the established places at which, and methods
whereby, the
the activities yof the Securities and
Exchange Commission,
public may secure information cr make submittals or re^

Adim^

•

;

quests,* (2) statements of the general course and method by|
which its functions are channeled and determined, includ¬

That

and also of the National Association of Securities Dealers.

'Lond-Orant

:-a>

■

The1 WestPrpX' roads,
however,
Wijll be the chief "beneficiaries of
abolition of land-grant-rate ; de¬
ductions; The railrqads had esti^
mated ^.that this Would add $20,-*

the SEC will

now have to
comply with the re¬
quirements of the bill, there can be no doubt.. The provi¬
sions relating to publication in the Federal
Register,; the
v-^roee^Per&viri]^
io^thd'iscqpe^^^d^htoht$ of ■^alljpapersy reports,x>foxaniin-l giving of timely notice, the method of conducting hearings, 000,000 io ;$34,000,000 tOi revenues;!
the granting of subpoenas, the
!
separation of formerly inter¬ butthe TnWtstateUonimierce Com¬
ationsj aiid
stibktaritive
adqptodp^ ai^onz^^ fay
law and statements of general
locking powers, are all mandatory., /J;
vf! mission expressed confidence /that
policy or interpretations
•

ing^i|ie j^tu*p?andvtf0q^eineqfe

formulated arid

adopted by the agency for the guidance
of the public, but not rules addressed to and served
upon
named persons in accordance with law."

;

♦

!r^"

; *

A"r"

" \

Rule

procedure which has not been

Federal Rqgisteri; ihat

in the
is/ that .notiqe df the making of rules

inco»tei^latiohV«faallbespgiyenvunlessali:personsaf^^
thereby

named, and1 either personally served - or other-]
tvisefaavfe^^^^ctual ndtioe} thereof i
law.
H
..In addhSqi^^ thq
ageney i|iu^;^fqid tnierc
an vopportunity to
ip^ticip3ite/in fnle/iiiakihg
:the|
v^yWtteta datay vifews or arguments, and must;
further incorporate in ,any rules adopted a. concise general;
statement pf their basis^^and:purpose.7^
Notice of an
agency hearing must be timely.
;v>3.vjare

•

/Tfae; ^igriifieahcO;.qftthi$v:to

remember -the; short

and inadequate

npiice

those who

given fay

nature

A most

is made

organization of the nature of the gion a road is in, however/each
road ihust' be/dbnsidered individ-?
possible by the Maloney Amendment to the
uaily.

one
«

Securities Act of 1934.
The NASD is

Certain

Further
a

Maloney organization.

It is

"!'?'!/'" |

joining

up or

being deprived of

feel that such

livelihood.

/Since the new law makes specific provision for the con¬
tact of helifihgs/^^jhebi^tiheir in wiiich tbds slmll be dPhe;
What^^ptoperly constitutes part^Pf the tetotd^Pii Review, Prid
.

since/t^VieWr ftbm NASD determinations,• ip tfae first inj
stance, is to the SEC,

hiles Will have to
its sails to

Procedutp Act," SucH
be modified and: that the NASD must trim

navigate alon^ thfa lies dharted by this;law.

All in all,

We, and these who have been in

authorized by law,

increase ^would

an-

td be; both alert and sympathetic

to1

the problems of the railroads,

and to ^remove bureaucratic restraints.

will
;
X)

.Vi

Conclusion

offset all increased costs. The Irir
terstate
Commerce '. Comrhissidn
for4 jhanylyearsihas "shown itself

We hope it is the foreruiiner of even more liberal legis¬
"(c) Separation of Functions.—The same officers
^ho lation; which will stop the regimentation, of those
engaged
4
preside^ the ^ec^tjqn-dif evidence pursuant to section 7 in
the securities industry.
!
shall make thp recommended 'decision" Or initial decision
;
' It demostrates the,,need
j for a continuing militancy on
S|^qhire^..by^secfiP®^e^p|^^
uhayailafale'to the. agency,c/Save to the extent reouired for thepari of all of us, in an effort to keep our markets liquid

disposition" of =ex- parte matters"

Expected

and we are confident that it
believe, that insofar as any of prbve to be so again'this time.
V-'X'
with the prebj

the

Increases

belief that ah additional

monopolistic financial ^vantages which qnder
Malon^j^ Aef ic^h^^^fa
oniyby inem/

although this! bill Sbes hbt go "Whole! fapg/j
sympathy with our cam-?
entitled
paign, piight to be comforted by this partial innovation. 5
/

Rate

our

freight rate increase of 5% will be
granted effective; around ' Oct. ; ir;
Thisiwdhld mak^ the; overall;ihi j
bers of a Natiohail Securities
Organization, makes joining crease approximately 14%, and,
the NASD
mandatory for many.
To them it means either despite opinion, to the contrary, we

significant part of the bill is the

^Separation of Functions."

A national securities

itimely notice,

"
and
many -southern
roads ^ "are
urged from time to time that the voluntary
amdng the inost favorably situated
of the NASD is a
complete fiction.
of all Cl^iss 1 roads. Whatever,re-/
.

fthe] ^thfe rules pit^thp
the hearing bdldi
ticfa'Sqquir^dx^

Securities' andr/E^change^^^
•before ii dnvdlyihg the then proposed rule
fay the! NASD; tPi
Register ►saksn^^trader%'#e^;;4j|/y^
;,v Adequate /opposition may be totally Seieated fay un-i
,

Corisiderablyi ex-

We have

published.
making/ a b^dst important function, is also sufajeot NASD

^tp;

the savings will

the NASD is another proposi¬
ceed' Anything; Estimated; by; the
tion because it has been
urged that this body is a voluntary roadsi - V V v "
:
It is evident that some western
one.

The penalty for failure to make such publication is that
person XJaii be required^Jmahnet to pesort to organ/

!izaticn
;

The effect of the law

;■■■■

4:;

jarring; further labor troubles
and

tie-ups in other industries, we
railroad net

feel that the aggregate
income

for

Will

1946

around

about- 15% fless
than .in 1945J However, we believe
$385,000,000,
the

final

that

year

earnings will;be. running at

quar er

the

of $650,000,000, or
level as the highly

annual rate

the

same

prosperous year

of 1944, and that

this will continue in 1947.

Grant¬

ing that selection is always neces¬
sary, from our^ studies of them
railroad equi ies generally may be'
said to be under-priced,

the; commercial $ financial; chronicle

Government Loans to Business
(Continued from page 611)
affect

lives

our

and

busi¬

our

nesses.

;

Through the years, as our in¬
dustrial; economy: has \ become

highly developed, and par¬
ticularly with the advent of mass

people have become
specialized and,

production,
and

less arid less selfEvery one of us is
dependent upon the other
fellow.
On a broader scale, there'
has
developed
a
close inter¬
dependence
of
the
component
parts of our economic set-up, so

individually,
sufficient.

that difficulties which arise in any

segment
of,,
the
are
quickly communithroughout the whole sys¬
tem.
In this way the synchro¬
nized conduct of business tends
to become affected with a public
important
economy

■

cated

interest.

vestment is

large

■

in which there is

one

public

of such

measure

interest!

&:j.*

■

banking-and in-

field of

The

This is particularly so

individual borrowing and lend-

! ing have been replaced

by a high¬
ly.. organized
banking
system
equipped to handle financing for
,

production;

mass

•

Origin of RFC

Ifow far-reaching; this; interest
is can be realized if we look back
a

In/thelearly '30s; as

frnw years:

depression^ approach^dh its
worst, I'itr; ■be0aiinai^'plearr?'.'that''jthd
banking ^ system ^obaff^cted" every
aspect of our iecoriornicclifer as, to
make its condition of the greatest

public concern. Even those who,
matter of principle; felt most
strongly against Government in¬
tervention in business activities,
were convinced that the time had
come when little improvement in
the situation could be expected
as a

without

help; and the Gov¬
be the only

some

ernment appeared to
source
of assistance.

This

was

the situation iri 1932 when, after

.fa brief period in which' the Na¬
Credit :> Corporation
en¬
deavored to stem"the tide, a; law

tional

establishing the Re¬

passed

was

construction Finance Corporation.

This new Corporation, which
modeled
after
the
War

was

Finance Corporation,

created fol¬

lowing eWorld War I, was auth¬
orized to make loans to banks and
other financial institutions. These
loans were required to be fuRy
and adequately secured, which
meant in many cases that the
banksmost
not

When

;

ksrwedofhelp could

get it.

bank

the

holiday

was

the RFC's authority was in¬
creased to permit it to subscribe
for the preferred stock of banks,
or to purchase their capital notes
and. debentures to provide needed
capital at a time when it could
not be obtained elsewhere.
This
marked the end of the first phase
of the HFC's activity, and the
Government's entrance into the
private financial field;
;
In passing, it may be interest¬
ing to note that, altogether, the
over,

RFC

invested in

lion

dollars

stocks

and

excess

the

bil¬

preferred

capital notes of over

6,000 banks.
More than 82% of
this amount has been paid back.
The losses suffered so far .by the
RFC under this * program A have
totaled about $3,200,000. This loss
•

than % of 1% of the
invested, and is about
.1/70 of the income which RFC
has received from interest and
dividends on the money advanced
for this, purpose.
; 1
is.:: * less

amount

After

the

immediate

financial

created by the. bank clos¬
ings, the problem of next import¬
ance
became that of alleviating
the acute situation with respect
to unemployment.
It was thought
that the normal recovery of busi¬
ness
was
being delayed in part
crisis

account of the inability of the

banks, due to the ordeal they had
just been through, to provide suf¬
ficient credit for local business

""
:
Using the existing authority of

enterprises.

Thursday, August 1,194$

Kumber l64

j'X'i T1

THE COMMERCIAL" & FINANCIAL" CHRONICLE

Number4512

'4.

>;• ViV,-*'

■

645

■&$>?

Italy's Economic Outlook
tatorship has happily ceased and, leaders of the UNRRA in Italy
But a settlement of the Italian consequently, there are no longer have announced that, instead of
jmonetary problems cannot be ex¬ the factors which fed these in¬ helping the country, they are
pected until the Italian Govern¬ dustries independent of the ef¬ hereafter to aid Italians to rebuild
ment-underiak^^^
reconstruc¬ fective requirements of the home their own economy and enable

(Continued from first page)

tion of the

State finances.

position of such finances

market

The

from

and

the. reasonable them

prospects of Italian exports.

easily
be seen when it is considered
that,
according to the estimated budget
for the period July 1, 1946-June
30, 1947, the receipts have been
forecast
as
Lire
142,101,000,can

their

Thus,

help

the

with

country

own means.

during the first quarters of 1946
the

Italian

have

automobile

produced

350,875,600,000, for these industries to continue to
with a deficit of Lire
198,773,800,-; employ 100% of their workers
000.
This estimate does hot in-; while their output is averaging
elude an allowance of Lire
8,000,- only 40% of the prewar period,
000,000 for the payment of war: and there is no doubt that they
damages against about Lire 3,000,- have no alternative but to return
000,000,000 representing all the to production, on a competitive
damages caused in Italy by: the, basis,; followihgs especially" vthe
War,; among: which there "are technical improvements realized
M::
*400,000,000,000 to the Italian rail-; during the War.
Italian induslrialists are begin¬
Way system, 200,000,000,000 to the
Italian
mercantile
marine, and' ning to realize this necessity. Sig¬

unsatisfactory

and very serve System and the Federal Re¬
authority of the Federal serve; Banks will be utilized byReserve banks to make industrial the
corporation which in general
limited

loans. And. the Small Business Fi¬

would

nance

with

matter of

fact, the will for

known

Unione

zionale

Lire

(Continued from page 617)
present

Steps Toward Reconstruction

vehicles

against an average of 20,000 per reconstruction can be seen from
quarter during the 1939-1940 pe¬ the fact that there has been cre¬
€00, while the expenses have been riod. Evidently it is impossible ated also a financial organization
forecast

Business Concentration

industries

8,500

Mead Sees Danger In

finance

Bancaria

Na-

the

rebuilding
agriculture and industry; and
;hat the Banco de
Napoli, which
of

Corporation,

integral

as an

part oLthe Federal Reserve Sys¬
tem, could then extend financial
assistance to

decentralize

Federal

its

Reserve

activities

Banks act-

ng as its agents.
An annual re~.-.:
port to be included in the report
of the Board of Governors of the

commercial, indus¬

trial,

or mining business by mak¬ Federal- Reserve
System is reing loans, by acquiring obligations quired.
:
or preferred
stock, or by purchas¬
"This bill has been endorsed by
ing obligations or preferred stock members of the Board of Gov¬

from

{

financing institution on the ernors of the Federal Reserve
sav?
ings, has been authorized to fi¬ security of such obligations or'pre- System, by experts in the field of;
ferred stock, and; guarantee these finance, and by all who are anx¬
nance industrial
enterprises, The
;
ious to establish a permanent fi^
capital of the Unione Baricaria institutions against loss.*
controls

50%

Italian

Nazionale has been subscribed by
"The maturity of such loans or nancial foundation under the small
th|; Banca > Commerciale Ttaliaha, obligations would be from one to business structure of the country,;
the Credito Italiano, the Banco di 10 years which would fill the need and immediately to expedite the
Roma and the Banca Nazionale for long term funds.
To assure reconversion of small businesses
200,000,000,000 to the Italian ship-' nificant confirmation of this ten¬ del Lavoro as well as by leading that this aid would go to our and the establishment of new
smaller
dency fsrepfesented by the an¬ insurance companies.
building industry, etc.
corporations,
the
bill
•

nouncement

The Government and

and steel

that

the

Italian

iron

The chances, for cooperation be¬

industries, independent¬ tween

State Finances
ly of '.he repercussions which the
The position of the Italian Gov¬ Peace Treaty might have on their

the

Italian

and

foreign

economies outside of the Govern¬

ment's
interference
clearly ap¬
ernment in regard to the recon¬ structure, have decided to reduce pears when it is realized that the
struction of the Stete Finances Is the output
of Martin Siemens war has not grea'.ly affected the
Such steel production re¬
complicated by the fact that the steel.

government is compelled to finance certain * industries in order
>to .enable • them; fo: naaintairi) in
service all the workers employed

April 25,

-on

vent

;

1945, and thus

increase

the '

spates that the amount of funds

guarantees

outstanding

for

Concluding his remarks,

shall

than 50%

Corporation's

funds

America.

Great

unem¬

Britain,

Norway,

Egypt.

output
100%

total

amount

outstanding such

time is not to exceed

one

Italy the
000,000,000.
Previously, it
is exactly
amount
used to be in proposed that the

supporting the demands of the
workers, other parties, including

the

Chris.ian

what

and

the

quired?
Here arises the question
of the necessity of foreign help,
as only with such
help can Italy
But

recover.

evident

the Mediterranean,
render to

that

such

insist

upon

increases

are

the

tovpay fbjr'the Italian

purchases abroad.

view vate

The Italian of¬

fers in this connection particular¬
ly refer to the organization of the

not

leading
Italian
ports,
such
as
Genoa, Leghorn, Naples, Paler¬
mo,
Bari
and
Venice.
These
ports

can

serve as a

basis for the

expansion of American trade with
the Levant>

and

the Balkan countries

Central

vides

sound competitive basis.

nanced
and

Import

loan

of the

Bank.

Governors

serve

three

lines.

They

have

vessels

four

can

be of

owners

of the

from

use

"As

and

ship¬

York

the

figures

can

ask

you

of.-jthe operation of SWPC

inittee, which sponsored the Act
creating that corporation*
want to

Federal

I novr

bring national benefit to

small business through

mem¬

the

the opera*

Business

Small

Fi^;

Re-Chance Corporation Act.?>

LOANS AUTHORIZED IN TOE

Cumulative—June

STATE OP NEW YORK
CORPORATION - %
..

11, 1942, through Jan. 28, 1946

—EStiIH81t6u LOSS*^

Inquiries
Total

authorized

1,765

Loans

Total

SIZE

No.
810

estimated

LOAN

NEW YORK, CUMULATIVE
1946, BY SMALLER WAR PLANTS CORPORATION

AUTHORIZED,

28,

STATE

10,000

25,000
50,000
100,000
200,000

200,001 through

300,000

300,001 through
400,001 through

Amount

c 302,833

11.6

15.5

400,000

500,000
500,000 through 1,000,000

1,000,001 through 2,000,000

75
42
34
21
0
I9
20
810

Total

998,883

36.2

293

100,001 through

evi¬

THROUGH

5,624,118.

10.0

5,001 through

under.

25,001 through
50,001 through

$183,553..

No.
or

;;V93,753.®

$400,000

10,001 through

Production

•

earnings In interest payments...

94
125

5,000

•'

loss

Amount

$89,800;

Size—

A Return to Free Markets Desired

No.

Amount
$85,339,485

liquidation (12-31-46)

JAN.

desiring to develop their

liquidated and charged

Estimated

activity in this part of the world.

State,

SMALLER WAR PLANTS

left,

to American

of what

example

doiie for some business in

please take a look at the certified

tion

an -

was

New

Federal Re¬

among

^ "Employees of the

and experience that

name

terest. 7*

bers.

but, especially in the Levant, they
have

capital at a reasonable rate of in¬

System and elect their own

chairman

beset small business—•name¬

This bill pro¬ in New York State. As'a member
of five mem¬ of the Senate Small Business Com*

the Lloyd Triestino and

Adriatica

the

only

Export
is

board

of the long*

ly, inability to secure long-term

designated by the Board

revival of Italian steamship com¬

panies

ways

boarcUpf directors

Europe; and of the

The
development
of foreign
dent, however, that if such vessels
trade without government inter¬
In order to consider this
be
employed
by
or¬
prob¬ should
lem it should be recalled that ders of the Italian Government ference in Italy would be of great
Industrial .companies
like
the to transport goods destined to the advantage
also; because of the
Fiat, the Breda, the Caproni, etfcj feeding of the country at rates
scarcity of certain vital food¬
now
receiving help from the covering just the cost of operation,
stuffs.
The appearance of wellgovernment, have undergone dur¬ Italian shipowners will not be al¬
ing the 1922-4940 period an hrti- lowed to exploit their, spirit of being in this country from shops
ficial process of inflating produc¬ initiative to take advantage of full of some
items like
linen,
tion through the realization of un¬ favorable
fluctuations
of
the
and, clothing, shoes, and some
healthy programs of the Fascisti freight markets. Hence it is father
foods is misleading.
While there
dictatorship.
For example, Mus¬ doubtful whether any advantage
Fascist Inflation of

that

bers be

the

constitute

of the Corporation.

temporary sit¬

time, malignant ill which has al¬

Italy could Federal Reserve System shall not

foreign countries could

also be used

aid must be directed to assist pri¬

The purpose of this bill Is

curative of

uation but preventive

"The Board of Governors of the

The proceeds

of such services which

to the inflation-*
in the making of;

assertion, the basic prin-f

looked.

not

out¬

1940.

initiative, rather than the
jus¬ government as has been the case
tified; as the level of the cost of until now.- As a matter of fact,
living has not changed since sev¬ the UNRRA is extending consid¬
eral months and, therefore, an in¬ erable help to Italy, but what pro¬
crease of wages would lead
only portion of such help goes directly
to an increase of the cost of liv¬ to private trade and industry? A
ing and consequently, prevent an typical example is offered by the
Improvement of the
economic oil and petroleum products which
the UNRRA supplies to Italy, of
Situation of the country.
However, it is evident that in which only 30% goes to private
regard to the recbnstructioil of trade and industry and 70% to
the State Finances and to the con- government departments. The re¬
sequent settlement of the Italian sult is that if private truck op¬
monetary problems, it will not erators; in Italy desire to have
make
much
difference whether their trucks going they are forced
the State pays to the Fiat Lire to search for fuel on the black
1,000,000,000 or Lire 1,200,000,000 market, with dangerous repercus¬
monthly. What is necessary is to sions on the whole economic ma¬
avoid the existence of that brand chinery.
The
projected Italian
of burden in the State budget and purchase of Liberty ships in the
States
should
be
fi¬
to have the industries returning United
Socialists,

that

Democrats

business has no
such loans

now;

ciple of this bill would be over*

$1,was

electricity

that

aware

discussion of the bill at this time

If, in other economic ac¬ standing to one company at one
monthly from the government for manufactured goods to undertake tivities, Italy has lost
something time should not exceed $1,000,000,
such purpose,, not to speak of the .he construction of new plants, of
its
productive
organization, and that the total amount out¬
to which materials and <goods I
other concerns, as the
she
still
Breda, the
has
her
s hipIsotta Fraschini, the Alfa Borneo, have' referred in the beginning
standing at one time should not
building
and
shipping ^organ¬
article.
"But if Italians ization
-etc. Now there is the; danger that of the
$500,000,000., v ,T h e s e
intact, and it is exactly exceed
are
not
such burdenlupoh the State Budg¬
developing their
ex¬ such
organization "that. Italians changes indicate our desire and
et is to increase, as the workers ports,
how
can
they
expect would like to place at the disposal
intention to aid a large number of
are asking an increase of wages. to undertake these purchases for of those
desiring to develop mer¬
small and inedium size enterprises.
which
gold currencies are re¬ cantile and maritime;
♦However, an encouraging factor of
expansion ill

are

completely

outstanding

Northern

of
of

"The

Sweden,

Switzerland, Belgium, France and

Imports Needed

ployed and the consequent trou¬
Evidently, however, the carry¬
bles in the country; Fiat in Turin ing out of these projects requires
the import of raw materials and
alone received Lire
1,000,000,000

the situation is represented by the
fact that while the Communists

the first and immediate reaction to r

of the

may be: 'Small
productive capacity of the coun¬ at one time be invested in amounts need for loans
quires the import of coal, the cost try. Today the Italian cotton in¬
per
concern of from $50,000
of which in Italy- is 50% more
to would only add
dustry is working at full capacity,
than
in
the
United
States
of thanks
ary spiral.' But
to
orders
secured
from $250,000.

pre¬

Sena-i

tor Mead added;

any

business at any one time shall
not exceed $250,000, and in
no

one

case

3,138,091

9.3

6,940,750

5.2

6,164,993

4.2

'8,561,656

2.6

7,411,300

0.7

2,824,355

2.3

2.4

14,154,000
29,218,500

100.0

$85,339,485

1909, and is engaged in the. manu¬
of
infant's,
children's,

Lewis & Sfoehr Offers

facture

Li Falco

junior and ladies' knitted under¬
garments and sleeping garments.
The
company
sells to chain

Mfg. Stock

solini wanted from the Fiat the will come to the Italian economy is an abundance of bacon, butter,
Offering of 99,500 shares of stc*.es, wholesalers and depart*
speediest Diesel-engined train of from these additions to the mer¬ cheese, etc., on certain days, for
common stbek, par value $2 per
ment stores and has approximate-*
the world.... without taking into cantile
marine of this country,
example, the town of, Milan runs share, of Li Falco Manufacturing ly
three
hundr'ed accounts
consideration that the Italian rail¬ which has always been ah impor¬
the risk
of
remaining;, without Co., Inc., Little'Falls, N. Y., is throughout the United States. Its
way system could hot stand speeds tant factor in the balance of for¬
being made today by Lewis & products are sold under the reg¬
bread as there is a shortage of
exceeding a certain level. ; As a eign payments.. •
Stoehr, Inc. The stock is being istered trademark "Li Falco."
matter of fact, the mechanical in¬
Under these circumstances it is flour. : The importance of the re-* offered at
$3 a share.
dustries, which in 1921 aggregated evident that only .through direct turn to free trade in this conProceeds from the sale of this
\
541 stock companies with a cap¬ cooperation between the Italian
Carl Otto Sprague Dead
stock will be used to retire the
nection, is clearly illustrated by
ital of Lire 2,416,010,116, by 1938 and the
foreign business world is
Carl Otto M. Sprague, special
unpaid balance due on a secured
the fact that since the restrictions
increased to 1,738 stock companies it possible to
propose
for Italy
loan
to
Factors
Company
of partner in Wood, Walker &
with a capital of Lire 3,590,000,000. sufficient
on; coffee imports into Italy were America in the sum of $97,221, New York
help to enable her to un¬
City, died after a brief
The
number
of
workmen
em¬
dertake the reconstruction of her lifted the wholesale
price of cof^ and the balance will t>e used for illness at the age of 58. Until he
ployed in such industries increased agriculturalr and industrial pro¬ fee has dropped from Lire 1,000 general working capital.
became
a
special partner two
;■ Li
Falco
Manufacturing Co.,
from 400,000 in 1921 to 600,000 in duction. This is confirmed
by. the per kg. to Lire 500 per kg., and
years ago he had been a general
Inc. was formed in March 1946,
1938 and to something like 800,
fact that, in the course of an inter¬ the retail
Co.
price from Lire 3,000, to as successor to Little Falls Man¬ partner in Wood, Walker
000 in 1943. Now the Fascist dic¬ view; granted; to
the7press" the Lire
ufacturing established
in and its predecessors for 30 years.

■.

«'

''•••: ■;

•.

I..'

• -

1,500 "per kg.

7'. ..Vv

-v

v ••>•••'

•

j.lfe-V

JHE COMMERCIAL & FINANCIAL

64a

NYSE Films Dismiss "Permissive
(Continued from page 612)
Commissions or profits of overthe-counter firms necessarily are
higher because of the expense of
maintaining a sales force and such
firms would therefore steer inter*
est in listed stocks to over-theCounter securities whenever they

•

Incorporation

CHRONICLE

successful in maintaining
discipline over its membership* i\
very

The question

felt,

arises,
effectively

now

however,
just
how
various incorporated of incorporation hope to achieve could the
Exchange discipline a
positive results by threatening to
companies.
corporation. The fear exists that
continue the campaign indefinite¬
Was ft the handwriting on the
both the Exchange and the mem¬
wall that was seen last Friday ly, as it were, if the count in the ber firms would be
endlessly in¬
votes
is
unfavorable
to
their

made by the

when the Bureau of Internal Rev¬

announced at Washington it

enue

volved in legal action—to the en¬

cause.

richment of the lawyers—if incor¬

Incorporation is held by its ad¬
launching a drive to collect
poration* is allowed. Unscrupulous
vocates to be desirable because a
millions in income taxes
lawyers would undoubtedly seek
broader base of ownership may
could. Nor, say they, would in¬ from several top-ranking Holly¬
out points
of conflict and the
sometimes be not only helpful but
corporation increase the; demand wood movie producers, stars and
whole industry would eventually
very necessary. It is argued that,
for seats. If anything, incorpora¬ directors who, it claimed,
had
find itself all tangled up in a legal
tion would tend to drive several avoided payment of income taxes say in the event a majority part¬ mess, it is said.
>
small firms into one organization by setting up and taking stock in ner pulls out of a firm, the only
One thought that is current is
and so reduce the number of ac¬ corporations
to
produce single way the firm could continue in that incorporation' would
also
tive seats on the Exchange, they pictures, liquidating the compa¬ existence would be for the re¬
tend to lower the standards of the
nies and then collecting liquidat¬ maining partners, by incorporat¬
think.
industry with regard to the ques¬
Because of the very rules that ing dividends? Of course, perhaps ing, to obtain compensatory cap¬ tion of financial
liability. At pres¬
have been proposed by the advo¬ it might be argued that the tax ital from sources outside of the ent, each person in the business if
cates of incorporation to limit the authorities would have little basis business. To safeguard the brok¬
liable to the extent of all he own;
type of person who could be or] to declare brokerage companies erage business, however, by the for the financial transactions ir
become a stockholder, most of the J the "legal fictions" that the Hol¬ rules under which it is proposed
which he engages. Under incor¬
achieve
incorporation,
only
first class corporations in the so* lywood corporations were said tc to
poration, the liability would b<
purities
and
investment
field be. Proponents of incorporation 45% of the stockholders could be

would not he eligible to buy seats,
it is -felt, {Thus^ordy the smaller

corporations doing an investment
business could qualify, it is point¬
ed out. Firms like the First Bos¬
ton Corp. would not be eligible to
come in, it is said.
Of the hun¬
dreds of corporations that reput¬
edly are potential buyers of seats
on the Exchange, at least a third,
say the antagonists of incorpora¬
tion, could not meet the require¬
ments for membership, another
third haven't the funds; necessary,
and still another third could have

jj come in a long time ago if they
|J had wanted to do so.
It is the tax angle that appears
to be dominating the thinking of

'■

large number of firms on the
•/' question — both pro and con —
; however. Many of the junior part-

.it ja

I tiers in

the various firms

are un-

was

many

strongly inclined to
rosy view of things and

are

fake the
are

posi¬

tive that the tax authorities wil
not

question their motives because
continuity of their firms.

of the

Under
incorporaion —»■ even ii
penalties are attached to the with¬
holding
of
earnings from
the
stockholders—it is still possible

for the stockholders eventually to

tax
advantage,
it
is
A typical corporation-

gain
a
thought.
such

would

found

among

the Stock Exchange members un¬

incorporation —
would have to pay a 38% tax on
earnings.
The
penalty
would

der

permissive

amount to about 30%

remaining from earnings af¬

ance

ter

of the bal¬

the

38%

tax

allowed

for,

Thus, on every $100 of earnings,
$38 would go for the corporation
tax and about $19 for the penalty,

,j der the impression that incorpo¬ leaving a balance of $43. Eventu¬
ration, by permitting, the plowing ally, the $43 could be distributed
earnings back into the indus-r
i. try; would enable them to- huild
t up their equity in the business.
i of

There is

a great deal of confusion
this phase of the question. The
fact is that in many instances

there is little tax-wise which in-

corporaton could do that a part¬
nership does not already allow.
Partners can build up equity in
their firms now by leaving earn¬

ings in the business.

earning

ners

Junior part¬

to $50,000

a year

accumulate funds faster now
after taxes than they very likely
can

could under Incorporation because

;;

| their tax is figured at less than
the 38%

;

average corporate rate.

equally true that a firm
conceivably build up its cap¬
ital faster under incorporation
than under a partnership. What
proponents of incorporation some¬
may

times fail to

is that under in¬

see

corporation this capital would be*
long to the company, that is, to
all the

stockholders, and not to any
individual or individuals in par¬

ticular.

Without

agreement

formula for placing value on
the shares held in the company,

some

the

individual

can

lay

claim to

the value of his shares ■ but only

through an extended process in¬
volving a group decision of the
stockholders

and

possibly

even
t: the Stock Exchange since the Ex¬
change would have to approve of

buyer. The stocks would

any new

in such a

gotiable

case

and

not be

their

easily

true

ne¬

value

might always be in doubt. However, with an agreement,
these
problems do disappear.
Dividends, it is claimed, would
v
'give value-ta. the stocks. How¬
ever, the tendency would prob| .ably be not to declare-dividends.
i Thus,
one very ' effective
basis
upon which value can be meastired will often be lacking. It can
^ be taken for granted that the tax
,

authorities

panies
~;

this

way

will

permit the comaccumulate capital in

without penalty

'partnerships- they

;

followed

the

same

practice, according to Seid^

man

countants

firm

ac¬

the "Street." The tax

authorities, it is held,
to watch very

are

certain

closely the with¬

holding of dividends that could be

ship of all the 45% would have tc
be
approved by the Stock Ex¬
change.

corporation, too, it is point¬
the capital of a deceased
could remain in the firm. In the
In

ed out,

appreciation of this cap¬
the
withholding
oi
earnings during the lifetime oi
the deceased, no capital gains tax
would be levied against the estate
on the appreciated amount, either

instances than would be obtained

after

paying

income tax which
could amount to $85 of the orig¬
inal $100 in earnings.
There

are

tax consequences

the changes in profit-sharing
arrangements that can be made
between partners but there are

limited to the amount invested if
the firm.

Speculative firms migh
to be reckles;
with their customers' money, it i
thus

tempted

believed by some. Proponents of
incorporation, however, insist that
unlimited liability is not in line
with modern thinking and is an
obstacle to attracting new capital
to the industry.
The thoughts expressed in these
lines represent a limited cross-*
section of the ideas current in the

brokerage industry on the ques¬
tion of permissive incorporation
Since the "Chronicle" sees a needL
for a full and complete discussion
of this

the

ital

change

to make up
to the position they
should take—it offers to open it?
ested persons may wish to make.
The "Chronicle" will gladly print

any such communications as it re**
ceives.. The names of those subr*
mitting comments will be withrield when requested. Communic¬

ations should be addressed to the

Chronicle,

Opponents of incorporation ar¬
with equal zeal that any firm
which for any reason needs added
capital can obtain it by admitting
some new partner or partners intc
the business.
They feel that V.
there is any valid reason why r
firm should remain in business, it

liminary estimates place the value

gue

will do

so.

Such a con¬
they hold, might easily
create an intolerable situation anc
company, say some.

the corporation, torn apart

by dis¬

within, would
tend to disintegrate, bringing loss
elements

and ruin all

along the line.

The impersonal

month.

Pre¬

construction in June

new

million

$920

with

compared

$830 million in May.
Residential

building

continued

upward, but the rate of advance
was

than

greater

other

dition,

cordant

of total

types

that

made

construction,

"The whole picture,

wise,

Incorporating the member firms
Exchange might eventually
result in the incorporation of the
Exchange even, it is feared. Gov¬
of the

controls .and judicial decisions. It
is the fear of the many legal-—

production-

encouraging"

very

Mr. Small concluded.

creased from $313

happens

million in May

to $344 million in June.

Seasonal

advances may account for

gains during the

summer

should

further

volume

other

output

steel,

materials

basic

during

"If nothing

boat

the

tremendous

goods

lieved."

months, but the rate of .increase
The

rock

get

and fall

should slacken off shortly.

the

shortages are re¬

Mr. Small's report

listed the pro¬

duction of important items

coal

and

month of June

increased

during

follows:

Automobiles: 142,000 cars,

dowit

May

11,000 from May, largely as a re¬

production. The present high rate

sult of the coal and steel strikes.

sharply

June

over

of operations of these basic
tries will

support

indus¬

considerably

enlarged volume of finished gpods

Passenger
tires:

Steel

sharply

near-capacity

levels

coal

production, but June output

was

still

considerably below this

year's peak of 6%

from

Total pro¬

half of 1946

was

short

million

months

six

operations
near

tons,

compared

tons

last

of
were

in the
year

first

Small Also

Adminis¬

trator John IX Small on July 30
also released. ^
v,' \
an<

optimistic,

many,

s u m e r

implications that able,vg

con-

dur¬

Radios: 1,378.000, up

which

May,

pre-war

already

16% from.
was

above

levels.

Vacuum

....

cleaners:

177,000,

7% from May and 13% over pre¬
war.'

Sewing machines: 27,000, down
13%

from

of the

pre-war

about
/

46,000, nearly

Electric ranges;

anii almost at.prii-

volume.

war

only
level.

and

May

50% over May,

Peak

193,000, up

levels.

war

Reports Industry

Production

Civilian

under

output.

60%

peak levels.

32%

4% from May and 22% above pre¬

when

maintained

210,000,

still

but

Washing machines:

approximately 27

million

May

pre-war

million short

tons reached in March.

with 43

casings, off 600*-

Refrigerators:

rebounded

production

motorcycle

and

car

5,200,000

000, but still above pre-war levels.

production.

♦l

Gas

ranges:

average*'

- -

•

{;

•

commenting on the period of

free prices, sinqe June 30 Mh.
;Smail< stated: "Most; of the ^prhie
rise

since-June -30 has occurred

pric^bp^jn; products and: food¬
stuffs,''

He added thai no

indication has

beei^fouhdSdurihjg the first^two;
weeif^ ^ tp Jiiiy^ price interreg¬
num

large-scale buyer resis¬

tance vorspeculative:

buying aiyi

ds
cited department .store sales dur¬
J. P. Small
they have a majority with them. makes many members of the ExV and. building
ing the first two weeks of July
materials, The
Both sides are jockeying for an change say of incorporation that
25%
above
the
corresponding
CPQ head, however, warned that
advantageous position, naturally, "it shouldn't happen!"
a
and it may be that the advocates
The Stock Exchange has been <
serious manpower: shortage: is weeks 011945..
are

not

all

certain

now

that

and

political

—

141,D00, slightly
above May, and 11 % above the
:

1939

incorporation

looks

including public and private, in¬

offing which may prevent
gains in production of
many items.
4 ■
"Rising prices cannot be ex¬
pected to bring a flood of goods
into the market," the report stated.
"The economy is too close to full
production to allow a significant
over-all increase in output except
through increased man-hour pro¬
ductivity."

construction.

Non-farm residential

the

proponents

further

consecutive

corporate device ernmental A pressure might easily statement :o n \produc-*
can't be denied to the. brokerage compel -such a move, it is thought- the
field and pressure for permissive A possible drift toward incorpo¬ tion situation,
He attributed »
incorporation may be bound, in ration is seen by many, quite
the yery nature of things, to bob properly perhaps, as a drift to¬ the June rise
ward
up again even if approval is not
accelerating governmental in production
forthcoming at this time. Some of supervision of the whole brokers largely to
the more ardent advocates of per¬ age industry. As the corporation
greater output £
missive: incorporatibn»
in
fact, laws vary in each state, the firms of coal and $
promise that they will bring the on* the " Exchange would-'conse-f steelr ^and an
subject up again if they are de¬ quently be continually, torn be¬ all-time rec¬
feated in the present drive. Such tween
conflicting •: bureaucratic ord- in output
the

New

in the

fourth

duction of steel ingots in.the first

talk would seem to indicate that

Place,

customary 50-50 ratio to 70-30 or the firm's business activities con¬
some other ratio.
Such a change
ceivably through manipulation of
in a corporation, however, would
one sort or another could exert a
entail recognition by the tax au¬
tremendous
influence upon
the
thorities
of
capital
gains and firm. With the possibility that all
losses. The partnerships are thus
firms on the Exchange could thus
much freer to act on profit-shar¬
be owned 45% by interests out¬
ing matters than are the corpora¬ side the industry, the brokerage
tions. Again, by previous agree¬
business, including the Stock Ex¬
ment, this disadvantage to the
change itself possibly in time,
stockholders of a corporation can
could be exposed to povterful out¬
be overcome. These points should
side influences. k
certainly not be overlooked in

another, many' feeh

Financial

Park

(Continued from page 610)

approximately $100 million for the

instance, changing the distribu¬ The 45% of the stockholders whe
tion of earnings from, let us say, a
do not themselves participate ir

one

fork 8, N. Y.

following the resumption of soft

Perhaps

Commercial

Editor,

Report Trade Rise

the experts. The development of a type of man¬
law does not concern itself, it is
agement control which might not
said, with a decision that may be represent the best interests of the
reached between two partners, for
firm or of the industry, it is felt.

over

pages for such comments as inter¬

it is held.

say

any weighting of the advantages
of partnerships and corporations

trying

are
their minds

Wallace arid Small

from

relationship thai
very definite regulations applying usually exists between the stocksto changes in such relationships holders of a
corporation could
between the stockholders
of a also
provide fertile ground for the
corporation,

subject at this time—when,

various members of the Ex-

event of

A corporation which sought ad¬
but, if as a dividend, the amount ditional capital by admitting i
would be subject to the full in¬
new active member into the firm
come
tax. However, if the dis¬
as
a
majority stockholder, pos¬
tribution is made by reason of the
sibly to replace a previous major¬
liquidation of the company or
ity stockholders who has left the
through a transfer of the shares, firm
through retirement or death
the cost is a 25% capital gains
might find itself in the position
tax, or, about $11. This would
where the new majority stock¬
leave $32 in the hands of the
holder might be unacceptable t
stockholder.
This
figure,
of
some of
the other stockholders
course, is much larger in many
who are active members of the

Seidman,

individuals not directly connected
with the firms and the member¬

Thursd^

o o

Number

164

JfHE COMMERCIAL & FINANCIAL CHRONICLE

Number 4512

647

Appropriation for War Dept

Financing Difficulties oi Small Business
t

(Continued from jpage" 617)
buys Government securities.

I know for ten years, at
He

^buytf a lot 61 insurance^ and be
$ sees no reason why he should take
a

chance with

change

almost

least.

ative bank building and loan as¬

other financial orFavors Mead Bill
feahizationK; organized$imdef th®
laws of any state, territory, or the
That is the kind of an expres¬
sociation,

District of Columbia,

it is

here why I

ex-

setup in this country. What
call investment banking, stock

done

...

high time that it should be

investments,

now.

Bill

■

xftillion in capital before they pro¬
duced a single unit of their prodU
■I net.

Large issues

for

expansion

^purposes are being floated almost

dvery

day by big corporations
Without any difficulty so far; they
have been absorbing them because

have the institutional setup in

this country to take care of that.
This institutional setup is here
to stay. It is not something of a

transitory character. You cannot
reverse the trend, nor do we want
to do it; but the result is that
big
business will be getting
bigger, as
was pointed out in the
report on
3 economic concentration in World
War. II, Senate Document No.

206,

where the matter has been handied in considerable detail.
At

I the same time small business is
likely to get smaller in size and

I in number.
v.t«.

Small

appeared

Feb.

24,

predicted at that time, and that is
in the record, that by the end of
v 1843
we will have lost
approxi¬
mately 300,000 small business en¬
terprises in the form of failures,
r
A report issued the other
day,
and it is a reprint of an article
| which appeared in the May 1946
"

Issue

the

Survey of Current
S.
Department of

Business, U.
Commerce, shows that by the end
of 1943 actually there were 302,

BOO

fewer retailers than

In September of

shows
tion

•'■;' small

1941.

Now

prediction of

had

approximately
300^000
enterprises
Was

business

Very conservative. In retail alone
the reduction was a
little
bit

larger than that. I underestimated

the number of failures by approxamately 30,000 to 40,000 at that
time, and I remember it was con¬

•

sidered rather spectacular.

convinced

that

for the provision of

which
can

small

secure

need

sources

from

enterprises

capital, eq
f uity and credit is universally recV- ognized.
Not long ago Mr. James
necessary

C. Yocum of
ness

our

Bureau of Busi¬

Research at Ohio State Uni

versity, prepared a suggested program of research and education to
'aid small business

Ohio.

This

/was presented to the Ohio Small
-Business Commission which was

•

^appointed by our Legislature. And
the interesting thing was the fol
1 flowing statement. After he ana

(lyzes the situation of small busi¬
ness in Ohio, Dr. Yocum says:
; *t
'

"What, then,

are such measures
which the State of Ohio can un¬

dertake: First, that it must be ob¬
served that several positive meas¬
directed at specific problems
.of small business are already un¬
ures

derway, that there are other small
^business problems which by their
character

are

not

susceptible

treatment by state or local agen
;
'

Two, it makes
self-sustaining.

"Various

committees

'United

States Congress and the
•departments of the Federal Gov-,
ernment have had this problem
under study

for many years."

$49,836.67

are

nors

of five members by the Fed¬

eral

Reserve

that

Board.

object to

the ground, first, that the

corporation is going to have little
autonomy in that case; and, sec¬
ond, if the Federal Reserve Board
prove

gifts for

one

the

armed

bequests

Heretofore,

aiS

tificates of interest in said bonds
and

$414,500 principal amount of

the

Series

due Oct. 1,

A bonds,

1952, have been called for redemp¬
tion

alent

Oct. 1 next at prices equiv¬
100%

amounts.

The

principal

the

will

Redemption

principal office of

National

City Bank of New

York, fiscal agent.

;

Money Mart

Noting that Brazil

Treasury

dollar

of
and

rate

equal to 5.33 cents a

milreis, the New ^rk ^Sun*^ • of
July 24 said:
'

Republic

Revenues

General

Sinking

30-year

show

has i..been

the-' milreis

"Since

Haiti quoted at

around 5.00 the
an

appreciation

bers of the Federal Reserve Board.

THIS YEAR IN

I do

wish, however, that it were
possible for their guidance, if
out,
of the loan which cannot exceed nothing else, somewhere to ex¬
$250,000 to any one concern or in¬ press more fully the intent of the
dividual.
sponsors of this legislation that
the bill should be sympathetically
Another
important provision,
administered
and
that full use
very important in my opinion, is
should be made of the Advisory
that of the total outstandings by
Committees made up of local bus
the corporation, not less than 50%
inessmen
from
industry,
com
must be in loans of under $50,000
each, which insures that a large merce, banking, and other finane
s
number of loans will be made in iiig fields.
-

the lower brackets.

conclusion,

wish

the

PACIFIC

NORTHWEST
/r'-'

don't think that is too much,

enough to give it

chance to work.

There are still, however, a few
things, although relatively minor
in importance, that might be im¬

in about

this

bill,

and

and
truly basic need.
I sincerely hope that you may
now see your -way clear to report
that it will fill

into law.

Your Plans
Make

Under New Law

credit" should be substituted with

(Continued from page 610)

the word "intermediate."

to provide incentive for increased
Apparently there is no intention
production. It has been backed up
to
make
any
short-term loans.
That is the province of commer¬ by an offer to textile mills which
was accepted to increase all cotton
cial banks. Since the loans must

made

from

one-year

one

ten

years,

loan is not considered

short-term

loan, so, the word
"intermediate" might be substi¬
tuted for it, and I would recom¬
mend that change.
Subsection 2, line 8, page 5, gives
the corporation authority to de¬
fine a financing institution. I am
afraid that such authority may be
utilized in

Include the

NATIONAL

textile

items

16%.

TRADERS-

SECURITY

OPA Actions

them,

example, in the statement of
objectives the words "Short-term

ASSOCIATION

CONVENTION
In

Meanwhile

there has been

predicted a general
in
canned
.vegetables,
cereals, coffee, and bakery prod¬
increase
ucts.
No

Refunds of Interim Rent

important announcement of

Increases

the OPA

was

ruling that land¬

lords who continue to collect rents

ceiling

Sept. 17 to 19

in violation of
ticipation in this kind of business Federal law and subject to prose¬
only to commercial bankers. I am cution. HoweVer, those who col¬
a

convinced

credit

will be

that

of
so

manner

the

to limit par¬

the

type

demand

for

contemplated

tremendous that several

kinds

of
financial
institutions
should be given an opportunity to
make such credit available. That
would broaden the base and would

over

lected

are

than maximum rent'

required by

OPA to refund

excessive L amounts.

the

Moreover,

landlords who changed their rental
bases during the interim, such as
from

member institution of the Federal

Reserve System or any state bank,

the interim, that conflict with OPA

bill

financing

statement

which would define

institution

trust company,.

"Any

«-

for the interim period will not be

monthly to a weekly basis,
must, if they are contrary to rent
regulations, return to the rental
period in effect June 30, 1946,
This applies even in cases where
there has been a change in tenancy
during the interim.
•
3
Terms of leases signed during

in the

think

hour's

for

•

it out and to have it later enacted

work, or may¬
conference; some
of these corrections, or modifica¬

2$-

state

been suffering for some years,

be two hours in

■

ill from which small business has

but it is large

proved

that in my opinion Senate Bill
Finally,
the
thing
is
large
enough to give it a real oppor¬ 1320, if revised in some of these
minor respects, is a splendid meas¬
tunity,
since
the
outstandings
ure that will go far in curing an
could amount to as much as $1
billion.

BOND TRADERS' CLUB i

industriaLpr- com¬ controls

are

also to be held void.

ef^ctii
of

the

Fund Brazilian unit against the dollar.

Four, it utilizes the existing pri¬
vate banking and financial organi¬

July 23

to veterans have had and the Banco do Brasil quoted a

bers should come from the financ¬

ing field other than commercial
banking; and one of the members
might come from the commercial
or industrial field other than "big
zations.
Five, it utilizes the facilities of business" enterprises.
That is, we fully appreciate,
the Federal Reserve System and
its agencies.
gentlemen, that it is impossible to
Six, it provides a permanent put into a bill all the necessary
plan, not like the War Plant Cor¬ safeguards against possible sabo¬
poration, which was a temporary taging of the spirit of the law by
a non-sympathetic administration.
organization.
I am equally appreciative of the
Seven, it insures loans to small
business enterprises and that has generally high quality and un¬
been accomplished by two provi¬ questioned integrity of the mem¬

the

made

Haiti Bonds Called
Customs

cer¬

other abolished its official exchange rate

general fund.

Holders

Series

bonds, due Oct. 1, 1953, and

forces*

and

to be channeled into the

in the Bill External
of the five mem¬

specify

might

members

being notified

of the

Federal system.

I should like to see

the

that

A measure authorizing the Vet¬
I would
like to make pertains to the ap¬ erans Administration to
accept
pointment of a Board of Gover¬ gifts for the benefit of former Brazil in Free

that at least

Three, it does not create a new

cies."
'U -L.,
make for healthier competition.
4v
:r ■; t.•;' &
Some examples are givbn, and
the first one is financing. This i# Definition of Financial Institution

'What he said about financing:

; - ,,
fourth suggestion

legislation' signed by
President Truman, on July 16, ac¬
cording to Washington advices
rom the Associated Press, include;
$7,263,542,400 appropriation bill
financing the War Department's
first year of postwar Operation.
Approximately one-third as large
as the previous appropriation for
the Army, the measure includes
funds for continued operation of
the atomic bomb project and for
military relief and government
in occupied countries.
•
'

6% Gold Bonds

;

And a

operation

the

tions could be made. One of

the

business

fashion,

lation.

ple and workable plan.

that

reduc

other reasons

think we ought to have
definitions,
some
place,
either in the bill or in some other

Senator Mead pointed
it limits the maximum size

1943, to testify before the Senate
Committee on Small Business, I

some

unsympathetic to
The bill has the virtue of em¬ this venture, by the means of that
bodying the following important .authority to appoint a Board of
Governors it might pretty well
principles:
One, it provides for a very sim¬ nullify the purposes of this legis¬

And,

Businesses
When

are

should

ner.

sions.

Reduced Number of
•

There

some

of the opinion that Senate
big trust funds, all of these things
1320, introduced by Senator
Which are institutional develop- IMead, will go a long ways in rem¬
ments of relatively modern
origin, edying the t inequitable situation
■all favor large concerns. - : ;;
that has developed on the finan¬
It spent quite a lot of time cial front, which threatens the
t around Wall Street. I have some
very existence of small business
U clients there, and I am familiar enterprises, and through it the
with what is going on.
Look at very economic system which we
the Kaiser-Frazer situation, how are trying to preserve and keep
t easy it was for them to secure $15 functioning in an effective man¬

£ changes, ;■?; insurance:

sion you get back home. People
feel something should be done and

in th'is century,
particularly since
llHTorld War I, in the institutional
•

seems

ty that some
taken by Federal agencies."

mercial credit" corporation; incor¬

certain¬ porated loan, and finance corrtdefinite steps will be ative bank, building and loan as-

\ "And it

small business en¬

terprise.
..;i.
;
:.! Second, there has been

Recent

of Seattle
Host

Organisation

had

developed

markets."

the

seasoned

could take would be to

warranted. ; Brought

out

priced at 101H to yield 2.80%

underwriting

§>Thell investment

maturity and the ;; common
stock priced at 10% were dis-f
posed of within an hour and the
books closed.

fraternity is feeling much better
about the state of the new issue
the^ moment,

tnarket

But as far as new corporate
obligations are concerned, the
.

things

are

seems

going

very

that

nicely and

,that; in that direction there-is or no cause for concern.,. •

/'little,

with official and work¬

In fact

ing staffs pretty well decimated
by vacation schedules the. current

slacku is

accepted

wholesome,
respite.
Wall

crossed

but

for

time

fingers
huge

its

and

solidation of the old First Boston

Civil

ords

the

underwriting

one

"The

importance

The budgeted
figures
$8,000,000,000- for the
Army, $5,000,000,000 for the navy
and $3,000,000,000 for other war
purposes-^are
almost"one-tenth
of
the
national production
of
goods and services;

that

com*?

securities

"The present

Momentarily

there

was

on the part^
1' of some of the larger buyers,
; but after a day or two they were
in the market for sizable

mitments.

com¬

this

underwriting

firm will main¬

York

City

July

period is

the issue

re-

the sale at

com

petitive bidding of 275,000 shares
ot

preferred

new

Northern

States

Minnesota,

At the moment only

smattering

was

stock
Power

the

of
Co.

for bids yesterday.
was granted to Dillon.

The issue

Read & Co. Inc.

on a

large domestic

our

William

26.

Mr.

Bullis

bid of 102.75

mains unsold and it is reported

in old

and

the

abundant

lines, after

Unless economies

are

budget pre¬
sented by the-President last January for the fiscal year 1947 an

any

either in

"We

war

in peace.

going

are

forward

later, will pay all of us rich divi¬
dends," he continued.
"We are
learning
that ^cooperation,
not
sary to carry through the Governstrife, is the only way.
Our in¬
pient's administrative iprogram construction and public works dustrial problem can be solved
according to the August issue of projects will be studied and that
only by cooperation.
Until we
lousiness Comment" the monthly military and veterans' programs solve our own problem of balance
publication of The Northern Trust will be reviewed to. determine
where they can be reduced. These through cooperation, we cannot
Company, Chicago.
obtain the prosperity or security
[j Quoting a report by Mr. Steel- observations are encouraging."
we want* for every working indi¬
Commenting further on Gov¬
pan, Director of Reconversion,
vidual.
Ithat this revision may reach' 10 to ernment expenditures and re¬
Inflation Will Be Checked
|15%V the bulletin; goes on to say ceipts The Northern Trust Com|that "Mr. Steelman's report, how- panys says^ "Thq; January budget
"The United States has been in
lever, stressed the need for reduc- message estimated fiscal year 1947
the spiral of inflation.
One round
Jtions in Government spending in expenditures at $35,125,000,000 was completed as the several pat¬
and
receipts at $3i;513,000,000,
Jview °f present inflationary con*
terns/ofnational wage increase
Mitions. The President, in a state¬ leaving a deficit of $3,612,000,000."
were
put. into effect., A second
smen* on :thd Director A
report^ ;The expenditures' estimate madk i-ound must
be resisted, and it will
jjsaid the Government expenditure's some, but probably inadequate, be
successfully resisted. The pub¬
will be reduced.
for
The President allowances
rising costs of

Government.

The

tained

allowances

budget

con¬

for

expendi¬

with

interna¬

connected

tional

financial

and

loan

agree¬

ments, but these estimates may
prove too small.
Army and navy
expenditures have been rising
earlier

000,000,000
"Some

estimates

for

the

1947

■

Inc.; honorary president, National
Refugee Service; Inc.; and trustee
of Tuskegee Institute.
He is also
a

director

The Philharmonic,

confidence, in the sincere belief

tee of Colorado Fuel & Iron Com¬
pany;

that

code

revenue

extension

are

of income from
Section 22

rations

(B)

involved in the

time

for

gross

income

such

income

for

year

the

He was a vice pres¬
director of thatioom*

pany when he

of"this year.
Mr.
zer,

resigned the/first
.

•

Diefenbach, born in Ebene-

N. Y., was graduated in 1919

from New York University, after
which he served one year in the

Army during the first World War.
From 1918 to 1939 he; was in the
investment
banking.
business
where he was associated at dif¬
,

ferent times with Guaranty Trust

Company of m New -York; Bonbright & Company, G. E. Barrett
& Co. and Blair & Company. At
present Mr. Diefenbach is chair¬
of

man

the

executive

committee

Certain-teed Products Corpor¬

ation,

chairman of the board of

Marion
and

Power

Shovel

Company

director of Electric

Ferries,

Inc., Freeport Sulphur Company,
Panhandle
Eastern
Pipe
Line
Company and International Utili¬
ties Corporation.

(9) allows corpo¬

the
provided they consent to
other regulations relating to ad¬
justment of basis of property by
from

ident and

debt retirements.

exclude

their

exemption

tion in 1919.

amount excluded

from gross

income.

US, Britain Ratify
Taxation Agreement
Secretary of State
James F.
Byrnes and the British, Ambassa¬
dor, Lord Inverchapel, on July 25
exchanged instruments of ratifica¬

(B) (10) applies tc
corporations which have tion of the %o double taxation*^
income attributable to the dis¬
agreement between , Great, Britain
charge of indebtedness pursuant and theUnited "States/ iThd; Asso¬
"Section 22

railroad

$16,fiscal

.-.

the House Ways and Means Com¬

ref

the

Looking Ahead

"For the future, we must begin
to plan for maintaining high

General

tangible
the

inexcusable.

The

antiyinflationary

Federal

production and; employment.

Mills,

tunate in

have been for¬

performing services for

government the public which the people con-

during which claims may be

filed,

with

war

losses sustained in 1941 and

1941

number

now

conditions

year

mittee said: Tt is believed that r

officials

present inflationary environment.
A budget deficit under present

action

are: *
national ^ehairmah
the -I94C $100,000,000 United
Jewish
Appeal campaign;
vice
chairman, The American Jewish
Joint
Distribution / Committee,

an order of a court in a receiv¬
ciated Press reporting thislfrom
ership proceeding or in a proceed¬ Washington said:
ing under. Section 77 of the Bank¬
"The purpose of the pacts is' to
ruptcy Act.
\v
' i
avoid duplication of taxation on
"Neither. provision applies to
income
and property by either
lic has been roused to demand¬ taxable
years beginning after De¬
ing the necessary resistance^That cember 31, 1946,« The bill pa&sed country. The agreements also^provide .for exchange of information
same
public is demanding elim¬ by; the House extends the provi¬
between the two countries to pre¬
ination of wartime controls. In the sions for another year.
vent tax evasion
by any indi¬
United States; we will not have
"In recommending extension of
viduals."1 ;
v
'/'..V'"'; ;
rim-away inflation because (1) time for .the filing of claims foi
productivity will be. increased by credit or refund based upon over¬
both labor and management, and payments resulting from failure on December 31, 1946, the com¬
(2) consumers will go on a buyers' to take war losses as deductions, mittee decided to grant another

strike if prices get too high.

administration

recognize - the necessity
straining... expenditures

most Sj

Science.

tures

above

Social

chairman of the finance commit¬

with

knowledge learned lation. The same Washington ad¬
from
this
free-enterprise
and vices also stated:
free-labor arithmetic, sooner or
"Two sections of the internal

~; 1
1
stated further that all deferrable

and

Among the offices Mr. Rosen¬
wald holds mcharitableorganl-

Mr. Charles G,. Terry, born in
New York City, is a director and

industry, will far surpass
levels that we have ever had,

the

■ .'v""

Policy Association
the. American Academy of

director and member of the
only a business enterprise executive committee of the U. S.
which is expanding and progres¬ Vitamin Corporation; director and
large cereal t crops this year—
thanks to the American former's sive is doing its full share toward member of the executive commit¬
wonderful record of production- giving our nation the high level tee of Fidel Association of New
will be of immense help in pro¬ of employment and the economic York; a director of Marion Power
:
viding. the industry with grain, buoyancy:which;! will ;In$UreCthe Shovel* Company^ Aud * a^directdh
of Dazey Corporation, St. Louis.
the people of our country with continuance of our American sys¬
tem.
Only a free economy can ; From 1913 tn 1919 Mri^Terry 'was:
food, and particularly in alleviat¬
be a fully productive economy, Associated with:Ifofris'Forbes'
ing frmine eoiiditions;Overseas/
and only through high production Company
following
which
he
can we hope to have enough goods
joined
High Productivity the Answer
Schoellkdpf, Hutton &
"The chief set of difficulties from and. services to maintain and im¬ Pomeroy, Inc. upon its incorpora¬
drops .with which we have again
been blessed here at home. - Our

"But

made in various items of the

^upward revision will be neces-A — —-

Foreign

from the

Budget Deficit Is How luaxcusable

expenditures and points out that a substantial budget
surplus is most tangible anti-inflation action available.

;

Symphony Society of New York.

■

ernment

wartime restrictions are removed

Exempts From Tax Gain
In Debt Discharge

Holds A

1938

zations

(less compensation of $2.27 per
| closing out satisfactorily under sharey for a $3.60 series; ♦'
This undertaking is designed to which we must now extricate our¬ prove our standard of living."
I the impetus of "on order'- buy¬
ing.
provide the company with: funds selves are those of high prices and
for the retirement of an equal low
Sunray Oil Issues
productivity," said Mri BulliS.
well-intended
Proof of the receptive mood of number of shares of $5 preferred "The
wage
in¬
investors for issues which meet stock outstanding.
creases 4have been heavily nulli
fied by the unavoidable; price in¬
Before .any public
their requirements was presented
offering,
creases "redhired
in the marketing of Sunray Oil
to compensate
however, holders of the present
The House, on July 18, passed
for the excessive increases in pay
Corps's
preferred shares are being given
$20,000,000
of
20-year
and sent to the Senate a bill ex¬
scales.
Until the'iemphasis ; gets
an
2%%
debentures and * 1,000,000
opportunity
to
exchange
tending for another year beyond
shifted to productivity, we can¬
their shares for the new stock
Shares of common stock.
December 31, 1946, provisions un¬
not move vigorously ahead.
This undertaking was scheduled
on a pro rata basis plus a cash
We
der which corporations are not
took it too much for granted that
for last week, but bankers evi¬
adjustment for any difference
taxed for income attributable to
between the offering price of
dently decided to defer public
^industry ^alwayss finds a way.'
discharge of indebtedness. The bill
Without recognition of the fact
the new issue and $110 the call
offering of the securities in conse¬
also provides for extending for a
that only the achievement of high
quence of the unsettlement which
price set for the old shares;
year, Washington advices to the
productivity can make the uni¬ "Wall Street Journal" stated, the
versally desired high wage policy time for
filing refund or credit
possible in America, we have have claims
relating to war losses. The
allowed high money wages to in¬
Senate Finance Committee later
Northern Trust Company of Chicago condemns high rate of Gov¬
terfere with high real wages.
unanimously approved the legis¬
v

the

Political

volume of busi¬

new

Political

Rbsenwald-Capitai t En*n
He is also a director of
American Arbitration Asso¬

and

crops.

and

ciation and a life member of both

of uncertainty, but two prospective
encouraging for the food industry," said

our

1934

terprises/

one

confident that

From

director Tof Sears, Roebuck
& Co.and in 1936 he established

that they had in war."

ness

;

favorable factor

•

week

the

But

Economics

was

developments are very
Harry A. Bullis, President of Gen. ^
eral Mills, Inc., at his company's sider necessary. We are now aim¬
Annual Report Luncheon at the ing at higher levels of service,
We are
Hotel Waldorf-Astoria
in' New volume, and earnings.

| tendency to hold off

Science.

Highly Favorable, Says Bullis

famine, combined with

their port¬
Northern States Power of Minn.
folios there was a feeling that
considerable resistance might de¬
The only other sizable piece of
velop in that direction.
business on the new issue calendar

pany's

of
Technology ; anddid
post-graduate 'work at Harvard
University and the London School

Uninformed

security.

(

stitute

President of General Mills points to easing of European

continued:

national

ger

The

Rosenwald i waA

graduated„from Masscahusetts In-i

tially lower figures would endan¬

possible

Food Outlook

completely rounded out trad¬

younger:; Mr.;

pro¬

bonds.

(Continued from page 615)

prior to 1932 when he died,

cannot say that substan¬

persons

ing facilities for handling 0. S.
Telegraph Treasury, municipal and corporate
"One; Is the easing of famine
Company
new
financing
ap¬ bonds and stocks, along with bank abroad as Europe's second postwar
proached the offering stage. With and insurance company issues, crop is harvested - and our relief
most big institutions carrying sub¬ bankers
acceptances and foreign efforts are continued. The second
amounts

Corp. Formed

cur-

cannot have the free rein in peace

;

American Securities

in military items.

American Telephone &

stantial

cannot
be
minimized, yet it is obvious that

capital, and also of coverage, ixi
the business,
-

tain

exceed

ternational loan program is

departments

wherever

the

canhardly

billion dollars unless the in¬

few

!-miUtary^'!Should!Aimdw5--that' they

ment banking firms, in point of

new

penditures

economy

of the largest invest¬

In addition to its

can

total expenditures in the- budget,
they, are esimated at more; than
twice the 1939 level, the bulletin
points out, stating "Some of these
programs Are essential;'while t it
would appear that others are not,
at least under present conditions."
In conclusion the Bank says,

field

and in consolidation they
duce

cuts

and agencies
constiutte little more than 5 % of

Corp. and the Mellon Securities
Corp. is being launched officially
today.
As
separate
entities,
both
these firms set up. enviable rec¬

business the
had

Street

constituted

newly

greatly enlarged The First Boston
Corporation, representing a con¬

only as
welcome

not

The

even

though it admits that some of the
recent
new; equity
issues have
.been found a bit sticky.

-consensus

Bon Voyage

near-term savings in non-war ex¬

sub-?

lailed; ^Reallyr$ubstantial{cuts;
Although the spendings of the they are to come, must be found

ing the close of the market on
Monday both the debentures,
f

substantial

where

undertaking ' follow¬

r secondary-

run a.

sfantial
budget ^ surplus.^ ' The
problem is to - find the places

;

"/'New,; however, "it appearsthat
such concern was not especially

Thursday, August 1,1946

THE COMMERCIAL 8c FINANCIAL CHRONICLE

648

have

taxpayers

yet

failed

to claim de¬

ductions for these losses.'
"Since

the

time

for

claiming

credit for refund with respect to
war

losses

1942 will

sustained

1941

expire in the usual case

House
provides that in the case of such
claims relating to property de¬
stroyed or seized for a taxable
year beginning in 1941 or 1942 the
three-year - period of limitation
prescribed by law1 shall not expire
before December 31, 1947;' * ''
* ;
"The

bill passed, by the

J'Jaj

tl.i >-V

('A..

.TAnH4>mi £ vXMDssM£Ki:i;aii

4^.*:.«.•;£,,
wrtw#5*#

.r.*.f

f.wv

Jf*^T^ITiWOtffc*. it At

(fW'i»*Nfcw VI>*? W

r;; v;

*1*+

4/WK^tf

**tv

r'.">■'

i
•'

*« )y* J.M

Number *1 64- Number" 4512

649

TH5 Financial Chronicle)

(Special

LOS

The Financial

Black, Jr. has been added to the Peyser has become
staff of The Robinson-Humphrey
Qo*,. Rhodes Haverty Building. Be
,ha$ been serving in the U. S.

Kayy.
;

„T

•

.,,

•(Special to The " Financial Chronicle)

BOSTON, MASS.

George A.
Hoban is with Denton & Co.; 30
State Street.
In the past he was
with

—

Walter

associated with

The

Financtal

Chronicle)

LOS ANGELES, CALIF.—Elmer

South Spring Street.

In the past
with E, F. Hutton & Co.

was

Dullness not

in immediate future;
for individual moves
this

(Special to The Financial Chronicle)

195

land

Stone!
U

with

connected

(Special

Shea &

become

The Financial

(Special

Congress

•

The Financial

Chronicle)

PROVIDENCE; R. I.—George L.

\(Special to Tu fWurans.'. Chronicls)

BOSTON, MASS. — William J, Fales has become affiliated with
Xeary ha? become associated with McDowell, Dimond & Co., Hospi¬
X Arthur Warner & Co.^ 89 Devon¬ tal Trust Building.
shire Street.•
;;'!t
.

(Special to The Financial
«

ST.

FiNANcWCHRONICLe)

(Special to THS

BOSTON, MASS.—-William Van
N. Washburn is with White, Weed

..v.';:

(Special

Robert D.

—

Miller has become associated with

W. Thomas

La Salle Street. He

with

'"4~

135 South

Co.,

formerly

was

CHICAGO, ILL.—Irvin H. Ru¬
has joined the staff of
Welsh, Davis & Co., 135 South La
Salle Street. He was formerly in
the U. S. Army.

The Financial

Chronicle)

Reinholdt & Gardner, 400 Locust
Street.
(Special

Chronicle)

The Financial

STj LOUIS, MO.—John C. Bailey
is with Slayton & Co., Inc., 408

Olive Street.

has

Robert J.

—

added

been

the

staff of William II. Flentye & Co.,

Inc.,

First National Bank Build¬

Trial

$0-?.♦i
k

1150

Inc.,

(Special to

Griswold

Trial

St.

1944

—

Great
Maxi¬

George and Lawrence

Dennis—cloth—$5.00.

The Financial

Chronicle)

DETROIT,
MICH. —John
R.
Odell, Jr. has joined the staff of
First
of Michigan Corp., Buhl

;

(Special to The Financul Chronicle)

now

with Raffen-

Hughes & Co., Inc., Mer¬
chants Bank Bldg.

Physically Handicapped Worker
in Industry, The — Gilbert
Brigtion

MO —Lester R.

Lynch, Pierce, Fenner & Beane,
1003 Walnut Street.
'»'' (Special to The Financial Chronicle)
; a LOS

ANGELES, CALIF.—Luigi

Travostino has been added to the

staff of Barbour, Smith & Co., 210

California

Institute

&
?

because

agitation

}•■ i LOS ANGELES, CALIF.—Keith
with Holton, Hull & Co., 210 West Seventh
Street.
*
5
C. Farley is connected

•

publicly-aired

the alleged "abuses"

has led to voluntary self-correc¬
tion by the underwriting houses.
New Issue Information Mechanics
To Be Improved
The new Chairman revealed as
one of his cardinal
aims, "assur¬
ance

tion

that the pertinent informa¬

actually gets to the

new se¬

the

"red-herring" prospectus,

and

other pre-registration
media,
will be explored.

Mr, Caffrey cited the continua¬
tion of the

the

over

! (Special to The Financial Chronicle)

Thorwaldson is with G. Brashears

(Special

to The Financial

Chronicle)

;

LOS ANGELES, CALIF.—Edna
L. Shramek has become affiliated
with E. F. Hutton & Co., 623 South

Spring Street.
'■

:-w'

■

^*5,'

(Special to

LOS

Wheeler

;
*

\-;v: ]•

The Financial

ANGELES,
T.

Abbett,

'i-i"

Chronicle)

CALIF.—

John D. W.

Morrill and Frank G. Plaisted have

joined .the staff of Slay ton & Co.,
Inc., 629 South Spring Street.:

red.};

••••

y,"

■

can

4nakB

hard and fast rule in

profits today that
make three times
*

much to

theoretical goal.
*

articles I read
the

(on page one man is bad for another. You
; for in¬ know that old cliche, about

"Chronicle,"

stance) which cite chapter one man's meat etc.
Well, the
has to and verse as to
why the bull market is onq place where it

one

market is over, or

not.'

■

•

❖

In last week's column I said
the averages would "sort of
melt..
to around the 195 or

why it is applies every day.

•

flirting with the 194
Applying tHis state¬

s«c

One writer says,

Right now I think the mar¬
few ket is
through going down.
,

the

fronted

menace

the

SEC

which has

and" all

government regulation of

existing

bility

taxes.

The market

was

bad

lower prices;

and

indicated

these

the

Federal

approval

quality of investments.

of
r "*

.•'■:■(:'Y'•}.
International Bank; Securities

..:

:-^r:M'^^To. Be- Registered-

:
Questioned concerning the sub¬

being

writers!i?&4 WSh II If

;

If you are a follower of this

*..
ff'

>-i..

When

the

*a.

exchange fluctuat

break out but when it does it

market

of the current

jection of the prospective securi¬
ties of the International Bank to
the provisions of the Securities
Act, Mr. Caffrey replied that Con¬
gress has definitely laid down the
policy that these issues shall be

cycle

ifM^e^Bext;^drsday!

rfWalter Whyte

fii;

hit

the

210 figure the first time it
hap¬ gave signs then that the end
was over;

[The: views expressed in {this

article do not necessarily at any
time coincide with those of the
Chronicle. They are presented at

those of the author only.]

duly mentioned here

was

with specific advice to take
profits even though the pos¬
sibility of getting the top
eighth was very remote. As
I recall it the inflation theory
was" riding high and the senti¬
ment was all on the up-side.

LAMBORN & CO.
99 WALL STREET

NEW TORE 5. N.

SUGAR|j||

I didn't know whether labor
registered thereunder.
would demand more money
On public utility;
holding com¬
pany dissolution and utility inte¬ though I could see that with
gration the new Chairman con¬ prices going up, it probably
siders that Ihe, agency's progress

Exports—Imports—Future*
■:

the Act regarding the big com¬

panies will
"with

praising

soon

Established 1850

Securities

the Chairman feels that the Street
is over-conscious of its
doings in

H. Hentz & Co.
Orders Executed on

the

utility field vis-a-vis the pur¬
suance of its fundamental aim in

.Pacific Coast Exchanges

combating fraud..

■

Questioned

the Commis¬

sion's possible return to its birth¬
place of Washington from Phila¬
delphia because of imminent eas¬
ing of the office-space situation,
Mr.

Caffrey pointed out that even
housing be found, resi¬

office

dential^Quarters

still must^)e

vided for its staff of

•

em¬

i.':

New

,"1

^Members

rJHembert

York
\ York

C hieo

;

;;

StocY,? Exchange

York

Curb

Cotton

Commodity
New

York Stock Exchange

New

■■

Schwabacher & Co.

Exchange

Exchange,
Board

Inc.
Tradft

Cotton

Orleans

Exchange
And other Eichangee

New York Curb Exchange

(Associate)
Chicago Board of Trade ; |

14 Wall Street

Near York 5, N.Y.

OPvtiandt 7-4150

Teletype NY 1-928

Private Wires to Principal
San

900-1,000

>■

Francisco

Monterey

—

Santa

Oakland
■

ployees.

New
■

Remaining in Philadelphia

Pacific Coast

completed—

few

exceptions." In ap¬
his
agency's functions,

'v: v.

Dlgby 4-2727

has been highly
satisfactory. He
promises that this Will be "vigor¬
ously pursued," and that the work

finance,

informational practices implies
warrant

g n

possi¬ tions?) between 195 and 20Q.
corporate I don't know when it will

likliest

con¬

the impression being
unwittingly given to the public,
that government
supervision over

higher

r eI

recip¬ dispassionate judge Of every¬
will probably go in a direc¬
ients of any Upturn. At the
thing that goes into the make¬ tion
opposite to what you ex*
same time I warned holders
up of the price structure, fails
pec t. ^
of General Motors that its ac¬
to be as specific as either of

other

in his ointment is the

and

steels

and.th^

vincing;t^^bn^The;ohly?fJy

(Continued from page 611)

that reasonable business judg¬
ments can be formed. Wider Use

•

in the

of money and
pull out. But
taxes make such a dent in

SEC Aims Include Registration 'Counter' Issues

Co., 510 South Spring Street.

Chronicle)

stantly awed at the learned trading. What is good for one

This

tensively pursue all practical pos¬
sibilities of getting ;data into the
hands of purchasers in such a
way,
both as to content and
timing,

(Special to The Financial

LOS ANGELES, CALIF.—W. S.

(

are now

the shrewd trader

along

curity buyer before he puts up his
money." The Commission will in¬

West Seventh Street. 1

matter of fact I don't know

Technology, Pasadena 4, Calif.— space you know what
paper—$2.00
pened. The stocks specifically

and

KANSAS CITY,

time I have to and
I start to reach.

reasons

gives me a chance to stick out of any other
person who has more on the short run-ups in
my chest and say I told you less information on what will
indeterminate markets than
so. But Wall Street is not
the happen tomorrow than I. It
he can in bull cycles. There
place where you can' coast is for this reason that I'm con¬

house— Industrial Relations Sec¬

(Special to The Financial Chronicle)

Giegerich, William E. Maher and
James G. Watkins are with Merrill

come

happen to
Mdre than a month ago I
by future thought the bull trendj' was
following a developments, it is usually a over. But that doesn't
paean
blue print. Naturally such a
coincidence and not the result that
rallies, good ones too, are
performance is gratifying if of any inside information. As
a
thing of the past. In fact
for no other reason than it
to

INDIANAPOLIS, IND.—Ronald
B. Woodard is
sperger,

sta¬

use

be true, as shown

tion

■

Building, i i

milian

Trial, A —The

DETROIT, MICH. —Robert T.
Sedition
joined the staff of SlayCo.,

who

And if the reasons

motors

Chronicle)

Brice has
&

In fact every

give

hardly out of the typewriter

pointed

ton

begin¬

ment to; individual stocks

Navy.;-;\|^f'';":;':?;^"

Street*

last week

point.

ing; heWas^ recentlyin theJ IL &

(Special to The Financial

room

tistics and slide rules to

(Special to The Financial Chronicle)

Oswalt

the back

way

hundred well chosen words,
But that doesn't mean all
that labor is responsible for
stocks will go up what I look
the 193 level" before
the end of the bull cycle. An¬
turning
for is an extension of dullness
up. At the time this was writ¬ other one doesn't see the end
with the price range fluctu¬
ten averages were about 201. of
the bull market for-some
ating (D'ja ever hear that one
A few days later
they were time and cites equally con^
about the Chinaman
down

DANVILLE, ILL.

which

if it is
going higher^ or lower. The
"whys" are left to the boys in
own

for thinking so but con¬ up with answers
that are
fidentially the reasons I can hoped will satisfy customers
(written Monday) dream
up are not impressive. who bought in anticipation

achieve any

Chronicle)

dolph

■

barometer

tells in its

around

on past performances;
not unless
you make a load

ST. LOUIS, MO.—Hugh Murray
French Lewis is associated with

Halsey, Stuart & Co.

(Special to The Financial

R.
of

Herrick, Waddell & Co., Inc., 418

Chronicle)

(Special to The Financial

CHICAGO, ILL.

MO.—Marion
joined '* the staff

has

Locust Street.r

Co., Ill Devonshire Street.

Chronicle)

LOUIS,

Shreve

do I think that
any

when the market started
act as if it were

burn & Middlebrook, 465

Street.'Vv".

seen

sons

that the averages were

Chronicle)

thought the sensitive

low

193-195

No, the market through its;
ripples and its waves, is a

Thie statement made here

PORTLAND* MAINE—Haryard
is connected with Co- ning to feel for bottom, was

with

affiliated
Co., 31 State Street.

Watch

translux.

during rapid advance from here is
period. Trading between improbable, though not im¬
and 200 looked for
possible. I can give you rea¬

E. Jellison

BOSTON, MASS.—Ann H, Har¬
has

Street, New York.

Hay den,

& Co., 85 Water Street.

(Special to The Financial Chronicle)

per

HAVEN, CONN.—Eric C.
Gustaysohlis with R. H; Johnson
& Co., 64 Wall

activity expected

the

;

But just as I
would he

■

Lapham, Fahy & Co.

BOSTON, MASS.-r-John B. Row¬

cluster around

=By WALTER WHYTE-

S. Carlson has joined the staff of
Walston, Hoffman & Goodwin, 650

■

*.
to

NEW

.-}■

WTiyte

SaYs—

Co., Van Nuys Building.

(Special

•; *

Sutro

chroniai)

ANGELES, CALIF^-Alan

before you read this. So to¬ the
history of inflation that
day the averages are back to taxes; usually advance as
just under 200 and the opti¬ prices rise.
[|
♦
*
*
mists again are
;
beginning to

Markets
(Special

went

up 'while would and neither did I know
General Motors is courting a
anything about higher corpof
new
low, which it may make rate taxes. But it has been

Tomorrow's

ATLANTA, GA^—H. Grady

h'4'I.I. $*

:V'V.

■

mentioned?

;

'»•

THE COMMERCIAL '& FINANCIAL CHRONICLE

t'rtr^ "I**-*! tl>» .*#»• ,'

Fresno

—

Of/ices

Barbara

Sacramento

N. Y. Cotton Exchange Bldg.
NEW YORK 4, N. Y.
*

■■■yyT--* Jv'"

CHICAGO

DETROIT

GENEVA,

■

PITTSBURGH

SWITZERLAND

■

Vv;-':' A*' ?

-M*i&

i".V'

vV.'/::- y.-.i,

■

'V'/i ♦,v»Vh.

THE COMMERCIAL & FINANCIAL

650

»•»

v»/'-vv« &>j

Thursday, August 1,1946

CHRONICLE

Registration

Now

Securities

INDICATES ADDITIONS SINCE PREVIOUS

•

I:
■-«

v?-$;

wg:

ISSUE

ivi.
Abbott Laboratories,

<8/14)

North Chicago, III.

electrical

Proceeds—Refunding and general corporate

purposes,

I //.//

V.*

capital.

+'■''' t

"W5

'!■

•

'r>/S

■

ance

balance will be available for

purposes.^|;^n;,/^C

•-

for pur¬
jigs, dies

corporate

Washington/
C.
July 25 (letter of notification) company from time to
time within the next year proposes to offer 200. shares
of preferred stock ($100 par) and 200 shares (no par)
common to -oficers and emplyees; only, at $100 and $15
a share, respectively, without underwriting.
Proceeds—
For working capital.

. .

American Home Products Corp.f N. Y.

held.

The

remaining

American Woolen Co., New York

59,816 shares

(8/8)

V'.'.v

will offer the preference stock in exchange for its

pany

outstanding 7% cumulative, preferred stock at the rate
of IV2 shares of preference stock plus $8.50 cash for
each share of preferred. The new common is reserved
for conversion of preference stock on the basis of 2
shares of common for each preference share. '

for•

Anchor

Casualty Co., St. Paul, Minn.

.. ..

;

(letter of notification) 10,000 shares ($10 par)
common.
No underwriters.
Offering price to existing
shareholders and assigns, $25 a share.
Proceeds—For
additional working capital.

July 29

(8/17)

West.

Arkansas

short
land,

June 5

filed

Gas Co.,

33,639 shares of

Fayettevilie

stpek (par $5).

common

Underwriters—Rauscher, Pierce & Co. Inc., and E. H.
Rollins & Sons Inc.
Offering—Stock will be offered to

plants, machinery, etc.

the

(9/16)

New York

July 19 filed 525,000 shares (no par) $4 cumulative con
vertible prior preference stock and 1,050,000 shares (ho
par) common stock.
Underwriting—No underwriting.
Offering—Under terms of recapitalization plan, the com¬

1946 filed 116,926 shares of ($1 par) capital
stock. Underwriters—No underwriting/ Offering—The
shares are offered to stockholders of record July 31
in ratio of one new share for each 10 shares held. Rights

American Locomotive Co.,

selling stockholder. Business—Manufacture of spark¬
ling wines.

June 28,

expire Aug. 16. Proceeds—Liquidation of $6,000,000
term bank loans; balance to purchase additional

can¬

the

Co., of Pittsburgh

plant, pay accounts payable, purchase equipment,
building alterations and working capital.

the surrender for

will be re.ained by Golan,v Proceeds—Proceeds to go to

due Oct. 14, 1947, and about $2,800,000
radio station WXYZ at Detroit. Bal¬
Will be added to general funds,

ing—Price $6 per unit.
Proceeds—Net proceeds esti«s
mated at $1,179,000 will be used to pay A mortgage, on

for each

Price by
$4,000,000 to

use

upon

pany, including remaining shareholders of Cook's Impe¬
rial Wine Co., at $3.60 each and at the rate of 12 new v

July 8 filed 196,500 units comprising 196,500 shares of
voting common stock ($1 par) and 589,500 shares of non¬
voting common stock ($1 par), each unit consisting of
1 share of voting common and 3 shares of«non-voting
common.
Underwriters—None-»-the company intends to
distribute its common stock directly to the public. Offer¬

Aeronautical Services, Inc.,

•

Proceeds—Company will

notes of the company. -About*
60,184 shares will be/offered to stockholders of the com--

be offered publicly.

American Cladmetals

July 8 filed 150,000 shares ($1! par) common stock.
Underwriters—Dempsey &Co. Offering—Company will
offer this stock initially to its common stockholders at

and fixtures;

remainder will

Louis, Mo.

of ; $432,000' of

cellation

prepay 2% notes,
for acquisition of

Ltd., Toronto

$3 a share.
Proceeds—$75,000 is earmarked
chase of machinery and equipment, and tools,

filed 950,000

amendment.

■

"v i' fe

Admiral Corp., of Canada,

The

31.

Cuba,|N. Y. (8/13-16)
Jutfe: 26 filed 132,740 shares ($1 par) common stock.
Underwriters—Herrick, Waddell & Co., Inc., and First
Colony Corp.
Offering—To be offered publicly at $5
a share.
Proceeds—Company will receive proceeds from
the sale of 68,880 shares and four selling stockholders
the proceeds from the sale of 63;860 shares,
Company /
also will receive proceeds from the sale of 20,000 war¬
rants for common stock to underwriters at an aggregate
price <of $200, Of the net proceeds ($292,940) $50,000
will be used to pay current bank loans; about $20,000
will be used for machinery and equipment, and the re¬
Acme Electric Corp.,

mainder for working

acquired them last June -5

shares ($1 par) common stock.
Underwriier-rDillon, Read & Co., Ine., N^w York. Offer¬
ing—A maximum of 100,000 shares may be sold by com¬
pany to persons, firms, or corporations with whom the
corporation had network affiliation agreements on March

June

American WIne Co., St.

July 24 filed 120,000 shares ($1 par) comnion. Under-/
writers^r-None.; Off ering—Shares being registered ares (
held by Eouis Ei Golan/ President of company/^whO:>

Inc., N. Y.

American Broadcasting Co.,

shareholders of record July 29 rights to suu
scribe for these shares on the basis of one share for each
10 common shares held. Rights expireAug. 13. Price $60^
common

share.

Business—Manufacture of agricultural,
japd industrial machinery and equipment,

working capital.

July 9 filed 169,991 common shares (no par).
Under¬
writers—A. G. Becker & Co., Inc.; F. S. Moseley^ & Co.,
and Shields & Co.
Offering—Company is offering to

per

•

Proceeds—Fpr plant expansion and to increase

ment.

July 18 filed 100,000 glares each o£ $100 paii? prior pre¬
ferred stock and $100 par convertible second preferred

Price by amendment.

public.

by six stockholders. !
Armour and CoL,

are

being sold

Chicago

Stock. Undciwriting^Union- Securities Corp., <New ■{York,

July 12 filed 350,000 shares (no per) cumulative first
preference stock, Series A; 300,000 shares of convertible
second preference stock, Series A, and 1,355,240 shares
common stock
(par $5).\ Underwriter—Kuhn, Loeb &
Co., New York.
Offering—The 350,000 shares of first
preference stock-will be offered, in -exchange to holders
•
American Overseas Airlines, Inc., NewYork
of its 532,996 shares of $6 cumulative convertible prior
;<8/14) ;
/XAir Cargo Transport Corp., New York
July 26 filed 1,049,895 shares of capital stock ($1 par). i preferred' stock at the »rate. of 1.4: shares of first prefer¬
June 19 filed 435,000 shares ($1 par) common stock.
ence stock for each share ot $6 prior preferred^ / Shares
Uudei^iters—None./, Offering—Shares rare? being of¬
Underwriters—By amendment.
Price by amendment.
fered by the company to holders of its capital stock in, of first preference 1 not issued in exchange: wiU be, sold
Proceeds—Of the total, 35,000 shares are being sold by
to underwriters. The 300,000 shares of second preference
the ratio of 1^ shares for each share held by record.
stockholders and the remainder by the company.
The
stock will be offered publicly,
The 1,355,240 shares of
Price by amendment.
Proceeds—Will initially become
latter will use $60,000 of the proceeds to repay a bank
common
will be offered for subscription to common
part of general funds and available for general corporate loan, about $500,000 for new equipment and $250,000 for
stockholders of the company in the ratio of one-third
purposes, including payment of short-term bank loans
ground installations at various points inf the United
of a/ new^-shdre/for each ^mmon
outstanding in the amount of $10,000,000 and which were
States.
scribed shares of common will be purchased by the
obtained in March of this year in anticipation of this
underwriters.
Price—Public offering prices by amend¬
financing.! Business—Aerial transportation/ *
< ;
;
Air Express International
Inc., New
ment.
Proceeds—Net proceeds will be used to retire all
York (8/20) >
'■
unexchanged shares pf $6 prior stock and to redeem Its
American Research A Development Corp.,
July 22: filed ♦ 125,000 shares of ;50-cent par. common. 1
■'
outstanding
Boston -v :■
:/'•;,;/ /■./.■:g".
.....
prefe^recl. stocjk^Temporariyr postponed.
Underwriters—Newburger & Hano; Kobbe, Gearhart &
July 2, 1946 filed 200,000 shares <$X pair) common^ UnCo., and Burnham & Co., all of New York. Offerlng-r*r
Associated Spring.Cpqk; Bristol, ^Qim, ;
The shares will be offered publicly at $6 a share.
Pro- ' denvriters^-^stabrook & Cov and Harrimait Riplejr &
,(8/8'T)' •,
,.:/:i> /;:
> ',i ; * ///- f •
JCo.i Inc;.Offerings
To institutional - investors at a
eeeds—Estimated net proceeds of $656,250 will be added
minimum of 1,000 shares .each, and to others-at a mini- , July 16 filed 119,690. shares ($10 par) common stock.
■to general funds.
UuderwrttersrrLee, Higginson Corp.; New York. Offer¬
mum of 400 shares each. Price, $25' a share/ Proceeds-^ing—To^ the" public. ' Priee by- amendment- Proceeds-4^
•
For investment,.
Airline Foods Corp., of New York, N. Y. (8/14)
Company will receive proceeds from the sale of 54,690
July 26 filed $1,700,000 of 5% sinking fund debentures,
shares and six selling stockholders will receive proceeds
AmeriwnWahfVltorki^^
due 1962,. and 120,000 shares of; 5%%:cum. conv. prefrom the sale of 65,000 shares.
Company will use its
ferred stock ($25). " Underwriting—Herrick, Waddell &
March 30 filed 2,343,105 shares of common (par $5) plus> proceeds, together with other funds, to build a
$1,918,00Q
an additional number determinable enly after the re-'
/Co^ Inc. Price—Debentures 99, ipreferred ^stopk, $25 a
adpitiop to its Bristol plant.
...
share.
Proceeds—To purchase on or before Sept 17 ail
suits of competitive bidding are known. Underwriters—
issued and outstanding capital stocks of David G. Evans
To be filed by amendment.
Probable bidders include
Bates Manufacturing Co., Lewiston, Me.
/Coffee Co.; Empire Biscuit Co.; San Jose Packing Co.;
Dillon, Read & Co. Inc., White Weld & Co., and Shields
and James A/Harper. Supply Co.j and for working capiJuly 17 filed 45,000 shares ($100 par) cumulative pre¬
& Co. (jointly), and W. C. Langley & Co. and The
ferred stock.
Underwritersr-Coffin
Burr,, Inc^," Bos^
taL Business—Manufacturing and processing of various
First Boston Corp. (Jointly).
Offering—Price to public
//foods sold under own brand name by the company and
by amendment.
Purpose—The common stock, together U ton. Offering/-To be offered/initially^ fbr subscription:
to common stockholders at the rate of 0.11494 shares of
with $15,000,€00 10-year 3% collateral trust: bonds (to
.its subsidiaries.
Aerovox

♦

Corp., New Bedford, Mass.

Price

(letter of notification) 25,000 shares ($1 par)
common. Offering price, $11.50 a share.
Underwriter—
Ames, Emerich & Co., Inc., Chicago. Proceeds—For ad¬
ditional working capital..

July 23

by®amendment/

Proceeds^Net:/proceeds/with

used to redeem $20,000,000 of 7%
cumulative preferred stock at $115: a share plus accrued
dividends.
s> J
" ;
other funds, will be

Agency,

•

' ;

Allis-Chalmers

•

Wis.

i :

Manufacturing >Co« West Ailis,

(8/14)

be sold

two

July 26 filed $15j000,000 2%. debentures, due 1956, and
359,373 shares - ($100 " par) cumulative convertible pre-*.
erred stock.
Underwriters—Blyth & Co., Inc. Offering
/•^Preferred stock will be offered for subscription to
/common stockholders at the rate of one preferred share:
for each seven common shares held. ? Unsubscribed shares

^tnd debentures will be sold publicly/ price by/amend-

privately)

are

to be issued to acquire

assets of American Water Works & Electric,

subsidiaries,

certain

liquidate,

Community Water Service Co. and

Ohio Cities Water Corp., and provide cash working
tal.
Common stock is to be offered initially for

stockholders of parent and to

capi-

•

preferred for each share of common held. Unsubscribed
whl bel offered: publicly*/ Price by amendment.;
Proceeds^-Net proceeds, with other funds, will be used

to pay

off $4,600,000 bank loan.

cash <

public holders

common

preferred stocks of Community and Ohio in exchange
Stock not subscribed or issued under

for their shares.

exchange offers are to be sold for cash to underwriters.
For details see issue of April 4.

Belden Mfg.

Co:, Chicago

(letter of notification) 26,530 shares ($10 par),
common stock to be publicly offered at $10 a share.
No
underwriting. Offering will be .made to present share*

July 3

BF
—

Corporate and Public Financing

*
w

SPECIALISTS /N

—

Underwriters and Distributors

United States Government Securities
*

State and

Corporate and Municipal

Municipal Bond,

^Securities
T

The

FIRST BOSTON

C, J. DEVI NET CO.

SlSSs

INC.

CORPORATION

4$ WAU ST., NEW YORK 5, N. Y.

HAnover 2-27271

'if4

y'<'

'
-'"i 4

K',

"it-*

>" 'Vr

Kidder, Peab'ody 0- Go.
"

•

Founded 1865

v.'"'---

Members of the

- ...

/ '

•

'-"v "

'* './*••"

' • '

New York and Boston Stock Exchanges ]%

Boston

•

New-York

•

Pittsburgh

•

Chicago

Chicflijio:.* Boston

and other cities

☆

•

Cincinnati
v.,

vv,

Philadelphia
♦

St.lowij

•

Pittsburgh

San Francisco

Cleveland
/

NewYork

Boston

Philadelphia

Chicago

651

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 164vNumber 4512

v-. -y

holders.5-

Proceeds^Proeeeds initially go to general funds;
part of posts of construction of .
*

Ben-Hur

■

July M filed $1,000,000 of 5% sinking fund debentures
(With detachable common stock warrants attached), due
June 1, 1966. Underwriter—P. W. Brooks & Co>, of New
York. Offering—*Tq be initially offered in exchange for?
a like principal amount of 10jyear -5 % convertible de¬
bentures, ; dated as of ;Febi 1,1941. J?roceeds-~rTo redeem.
Old debentures and reduce bank loans.

Rejected—Standard Gas & Electric Co. rejected
purchase of the stock as Utt-»
satisfactory, r Blyth- & Co;, Ine., and First Boston Corp.
bid of $28.33 a share, arid Harriman Ripley: & Co) bid
of $24,031 a share; Stock will again be put up for sale

Byllesby and Co.
Offering—.Shares are issued and out*
Standing and were purchased from the company by the
at $96.50 a share for the' preferred / and,
$10.70 a shareiot trie commoh.: They will be offered tq
the public by'the underwriters. / Price, $100 a share for
the preferred and $12.50 a share for. the common. Busi¬
ness
Manufactures and sells bolted and welded steel

underwriters

-r-

...

v-7

.fv'"

wooden tanks

Candego Mines,

•

"**."

"V;

•

Corp.,

Sahatarium

Boulevard

' ' '

'YY

and

•

,/>

ore.

N. Y.

*■

York (8/8)

Ltd., Montreal, Canada

;

V'".

■'

$1).

Underwriters—Floyd D, Cerf
Co/, Inc., Chicago. Offering Y- Company initially will
offer 59,585% shares for subscription to present common
stockholders at $4,50 a share in - the ratio of one share of
preferred for each share; of common held. The offering
to common
stockholders excludes the two principal
stockholders who have waived their rights to subscribe.
The remaining 90,414% shares and any shares not sub¬
scribed to by common stockholders will be offered to the
public through^^underwriters/#Price--$5 a Share. Pro¬
ceeds—Approximately $55,000 for payment of Federal
taxes; $250,000 for payment of a loan; $50,000 as a loan
to, Palmer Brothers Engines Inc., a subsidiary, balance
working capital*
\
'
-

Carscor Porcupine
j; Ontario |7>WY;.-.;/

Commonwealth Aviation Corp*,

(Nr-Y*T: Unloit Gas Co.

underwriter by post-effective amendment/ Offerings—
To the public at $1 a share in Canadian funds, Proceeds
—For a variety of purposes in connection with exploration, sinking of shafts, diamond drilling' and working

■/ capital.

■</< '*

.••i!

;

Brown & Bigelow,

.■>+

s ,t

---

-,r

•

Central Electric & Gas Co., Sioux

May 29 filed 35,000 shares of $2

July 1$ filed $5,000 shares of 4%% ($100 par), cumulative
preferred stock and 427,558 shares ($1 par) common

Falls, S. D.

cumulative preferred

•

to,be-offered In

•

Chemical Process Co., San Franclsoo;

capital stock.
Offering—Stockholders will be offered
the right to subscribe for the stock at $1 a share in the
ratio of 0.84 of a share for each share held. Unsubscribed
shares will be .offered publicly at $1.20 a share.Under-

jwriters—Stone &'Youngberg, San Francisco, Proceeds—
wi^ cohstr'detioit • of hew/^manufacturing plant at Red*
wood City/ and for purchase of equipment arid for workr ing capital..
'
'/ &
I Y. .*/ S-J. *'r{

'"-V. .-'^v

•

^tttethe'presentiy-outstanding*6%r cumulative-preferred
stock,-modernizationf: of ^existing- units,, opening/of hew
^ units and additional working capital,
:
..
::E r
"
.

,
/

'r-

'ji»"/.Y/^

*Y * Y;

Gas & Electric Co.

(O.)

Cincinnati

July 25 filed 2,040,000 shares ($8.50 pur) common stock.
Underwriters—To be supplied by amendment. Probable
bidders include Blyth & Co., Inc., and Mellon Securities
Corp. (jointly); Morgan Stanley & Co., and W. E.
& CO.

Continental Moiors Corp., Muskegonr Mlch. :
:

July 8 filed 250,000 shares 4%% cumulative convertible
preferred stock, Series A ($50 par), Underwriters—Van
Alstyne) Noel dr Co.
Offering—Price; by; amendment*/
Proceeds—For rearrangement and expansion of the com¬
pany's manufacturing plants, acquisition of additional
tools and facilities, and for additional working capital

;reqUiremeiits»>v

Jdtff 10 Xletter^^ n^ifi^ation)/250,000 /shares :($l

iiledi 141,498/shares ($20 pat) capital stock.
Underwriters—Kidder, Peabody & Co. Offering—Shares
are c^red'for subscripticm/to- present capital stock¬
holders of record July 23 at rate of/One; share of new
stock for each six shares held at $42 per share. Rights

Unsub-

■

Chicago (8/8)

JurieKlJ
•

will be

offered; to

fcutlei*,lnc., Atlanta,Ga. (8/^)

common.

Container Corp. of America,

Alexandria, La.

officers^ /directors and employees.
I^eferred/$ld3.50 a share^romthoh^^ $26.50^^-sharer Pro- ? Any remainirig shares will be sold to underwriters. Price
nmendfhent.
Proceeds—For payment of a ^200,000
eeedsr^Ne.t proceeds to the/company Will be used to rej deem unexchanged shares of 6% preferred at 110% and / bank loan and forconstructioii purposes.- Business^-Publie Utility."'^'--ifor;iru;reasing>generaI:wporate^hds^ rr f
■ %v"y/
1 ^

July 8
stock ($25. par), with stock purchase warrants attached,
and 75,00(1 sh^res"I$i/par) OOinhiod^ocR'/Cbm^ny^iS
J offeEiring all of the preferred and 25,000 shares'of ccrm: mOn.
The remdihing 50,000 shares of common are being
;
sold, for the account of D. L» Slannj president) Benjamin
( A.* Pollofck, Vice-President, and Bernard Feldman, Secj Yfetary/and Treasurer,; - Underwriters—R; Sr Dickson
8t
Co., Inc.; Courts & Co.; Johnson, Lane, Space & Co., Inc.;
/ Clement A. Evans. & Co/, Inc., and Rauscher, Pierce & Co.
/ClffeHngf-^^Prices by ^ehdmehttv/Proceedbi^Procee
I from the sale by; the/dompany bf 30;00d^ shares of preferred and 25,000 shares -of common will be used to re-

capital. Y

for

equipment and fo,r operating

July^/24/:filed 20^500^^/sbaresi ($10^par), cpn^on ^peki- expire Aug. 7. Unsubscribed to public through under¬
writer at $42 per sharrifor at;;markef1inder certain conr
Underwriting—If underwriting agreement is made, names
will be "suppliedl by, amendment.
Offering—Tbe shares / dRiQUe^Proceeds-^ayment ^^ portiort of /the costs of
construction/ and improvement program.
will be offered for subscription to common stockholders

(

^exchange f^orjdutstanding ■ capital stock of Consolidated
Printing Ink C0.r Quality Park. Bok COW Inc., add John
Beisset €507,' Whiclr will become subsidiaries; Ih -addlE tiorn stockholders of the company- are*' selling 304,881
/ahareSK tcr the underwriters/for: public offering, - .priced

Central Louisiana Elec. Co., Inc.,

No underwriter at present, but one ex¬

stock.

I^cded»^

prices to be supplied by amendment.
Proceeds—To
pay off $3,000,000 loan from First National Bank Chicago and Harris Trust and Savings Bank, Chicago, bal¬
ance working capital.

common

at
■

Inc., East Orange,

pected. / Price, $50 for preferred and $3

Offering—The stocks will be offered to the public

cago.

Consolidated Ait* Transit:,
N. Ji (8/5)

July 29 (letter - of notification) $100,000 7% cumulatxye
(non-convertible) preferred stock and $100,000 class B

; stock. Underwriters—Reynolds & Co., New York.-Offefi ing—Preferred stock
will; be Offered to company's 6 %
'.preferred stock oh /a share for share/exchange basis.
jShate^ nbi issued Jh exchange will be sold: to underwriterS'fojf resale.to the public. Of the total commoh,
the company is selling 67,500 shares to underwriters for

•

stock, series A (no par), but with a stated value of $50 a
share, and 175,000 shares of common stock (par $1).
Underwriter—Paine, Webber; Jackson & Curtis, Chi¬

St. Paul (9/3*6)

^jpublfc offering and 55,177 shares are

$3,420,000 will be used for working capital.

/Y /'///)Yf

7-MS ■;>/ *r'..

New York

28, 1946 filed 150,000 shares ($10 par) 4%% cumu¬
lative convertible preferred stock and 300,000 shares
($1 par) common stock. Underwriters—To be supplied
by amendment. Price—$l2 a share o£ preferred and $7
a share of common. Proceeds—Estimated net proceeds of

June

o| commbn Stock, Under¬

June 24 filed 400,000 shares

•

working capital,

Gold Mines, Ltd., df Toronto,

writer—Registrant will supply name of an American
Brooklyn

key employees of
of options for purchase of

executives and

each share of preferred.

^rv

■

estimated cost of $150,000; balance

Proceeds—

/May $ filed td;W^shater
cumulative preferred sto<^
•.($100 par). " Underwriters-^Tb be filed' by amendment.
Bids Rejected—Company July 23 rejected two bids received for the stock.
Blyth & Co;, Inc., and F. S. Mose|Jey-Co/ and" associates;submitted "a bid op 100,06 for'a
/4.36%'/dividend;/Harrimahro^
T Securities Coip. bid 100.779 for a 4.40 % dividend; "
: :
-.j/,}■?:/,* J
;'/>.»•
V
'V»

June 26 filed 150,000 shares ($4 par) 30c cumulative?
convertible preferred stock, convertible into common
: stock in
the ratio initially of 1 Vz, shares of common for

N. Y] (underwriter for sale
Offering—Stock: will, be sold
ttd publie at 55 cents a share. Proceeds^$40,000 together
with $22,000 of treasury funds, for development work. If
suffkient we is found, company will erect k /fhlU at an

(letter of notification) 99,000 shares ($1 par)
common.
Underwriters—Strauss Bros, and Stubner &

; "

offered

N. J.

for beer kegS;

Frank ; K plant, Rochester,

;

company upon the, exercise
such stock. Price—Options

of-stock in United States),

July

;Co., New York. Offering price, $3 a share.
-Foradditional workingcapitalv;. 1

will

June S' filed 400,000 shares of cornmoh stock' ($f. par)
(Canadian funds). Underwriter — F/ R/ Marshall and

engineer's fees, equipment, etc.

Britishlndustries Corp., New

Cardiff FluorSte Mines Ltd/, Toronto, Can/

VJufe/{ietieri'.of?'ri<rtlfic$iot$ /$100,000/ 5% 15-year
jbonds.YTStotf ^underwritten.: /Price, ^par* Proceeds—For
purpose of) paying tbst of; uttering present: building,
architect's and

* V.'*.'

Underwriters—Sabiston'-Hughes, Ltd., Toronto. Offering-^-Shares will be offered to public at 75 cents a share/
Proceeds—Net proceeds/ estimated at $300,000, will be
used for mining operations.
Business—Exploring for

' "■■■'T-

I. City,

'< "

May ,8i filed/506,000 shares of common stock (pair

Business:".y* Liquor:wholesaler
jobber.,YV •VY Lj"'v.-r. /
,j

,"s V* 4. /

trays and laminated staves and heading

(Philip) & Co., Inc., Chicago (8/14)
. i
July*26 filed 150,000 sharps <$i par)) common stock.
Underwriters—F. S. Yantis & Co., Inc.; and H. M. Bylles¬
by and Co.,:. Inc. Price—$17 a share. Proceeds—Payment on bank loans'and botes and for working capital.
/

11 ,/'/ £

Blunt

•

Clfntoiv Industries, Inc., St. Louis
June 10 filed 60,000 shares of capital stock (par $1).
Underwriters—No underwriters.
Offering—The shares

already issued provide for
•
Camfield Mfg. Co., Grand Haven, Mich (8/19) ''
the purchase of the capital stock at $16.66% a share.
July 29 filed 220,000 shares ($1 par) common stock; Un¬
Proceeds—To be added to general funds.
,
derwriters—Kobbe, Gearhart 6c Co., Inc. Offering—rOf <p " / --Y. Y ^vYY Y Y- •
l•••'■;'
1
f '.Y ' ' ""
"
' 1
' r ' 1 . ' •'
f
the shares registered, 100,000 are issued and outstanding
*$!M 'uosipei/y '"OQ 3uun^oe|nue|/y ueoo
#
and will be sold to the underwriters by three stockhold¬
July 29 (letter of notification) 1,000 shares of 5% cum¬
ers at $4.50 a share for their own account.
The remain*
ulative ($100 par) preferred.
No underwriters. Offering 120,000 shares are being offered by the company.
King price, $100 a share. Proceeds—To retire $50,000 par
Price $4.50 a share. Proceeds—Company's share to pay
value of outstanding preferred and for working capital. //
renegotiation refund in amount of $180,000 to the U. S.
Clovernment, apd for additional working capital.; Bust-'
Columbia Aircraft Products Inc., Somerville,
ness—Manufacture and sale ofr formed plywood serving

July 20 filed 20,000 shares of 4.25% cumulative preferred
stock,. ($100 par) and 100,000 shares ($1 par) common
stock.
Underwriters—F. S. Yantis & Co., Inc., and H. M.

tanks, separators, heaters and treaters and
for the oil industry..
"
." •
,\t

Corp.,„which will receive proceeds. Columbia is
selling the; stock as part of an integration program to
comply with the Public Utility Holding Company" Act,
Business—Public Utility.
Electric

Bids

yrheh market conditions improve.

Gas 8c

being sold by Cincinnati's parent, Columbia

are

June 25 two bids for the •

i, Black, Sivalls i Bryson, Inc., Kansas City, MoYY-'y8/i9)

/subscription to common stockholders at the rate of one
share for each six held. Unsubscribed shares will be sold to
•underwriters.
Price by amendment.
Proceeds—Shares

writers—Names by amendment.
Probable bidders in*
elude Blyth & COi, Ipc.) The First Boston Corp.; Harfiman Ripley & Co.
Offering—Stock is being sold by
Standard Gas and Electric Co.,. parent, of California,

Ifiri., Los' Angeles

Products,

•

May 24 filed 312,000 shares of common stock (no/par)»
Stock will be sold through competitive bidding. : Under¬

and may be used to pay

additions^

3/'

^"/California Oregon Power Co,;/

Hutton

4.,4

»•

•

!•»

♦.

Filldley, 0.

($25par)'4%%'euttmi^ivex

July 17 filed 6(^000 shares
> convertible
preferred. Underwriters-r-Otis

& CO. and
Offering—To the public. Price-Y
$25 a share. ProceedSr—Estimated net proceeds of $1,356,200 will be used to redeeni iti outstanding 4% deben¬
tures, due 1967, to pay certain debts and for additional
equipment, manufacturing space and working .capital;
Inc*

^Prescott & CO.,

Corp., Boise, Idaho
notificatibn)' 286,000 common shares
($ J par)* arid 50,000 warrants, latter to be purchased for
investment only and not resale. No underwriters. Offer•:

Custer Copper

July 22 (letter of

(Continued on page 652)

(jointly). Offering—The shares will be offered for
4'

;

Cooper Tire & Rubber Co.,

.♦

Underwriters

r?.

The Marine Midland Trust

and

Company

OF NEW YORK

Industrial, Public Utility/ Railroad

-pf:'

Distributors

#
of

UNDERWRITERS—DlSTRIBUTORS-rDEALERS

Municipal Securities

Transfer Agent

Registrar

Municipal—Railroad
Public Utility—Industrial

Trustee

Dirtct contact with Market* in

Securities

principal financial centers.

Y- ON£ HUNDRED TWENTY BROADWAY
,,,,

Hemphill, Noyes ca, Co.

NEW YORK 15, N.

Ei H. JRbliins & Sons

Y.
-

Y ,f

^ Members

htzW YOkk

^HttAOELfHlA

;

New York Stock Exchahgo

ALSANY

„

*; PITTSBURGH

CMlCAOO

YftENTOM

■

•

iNOlAUAWUS'

RECTOR 2-2200

40 Wall

WASHlNOtON
V

;

•'

i >:;v. V 'v,;i r'
«'

'•

•

'V-/.Y

■'■■4::4) 4

,.\Y
*■'

4. :

Now York '

«>

Boston

Incorporated

Street, New York 5, N. Y.
•

Philidelphia

Chka|o

»• -

Sen Franciaco

THE COMMERCIAL & FINANCIAL, CHRONICLE

4552

»<•**•

(Continued from page 651)

#
.

Edison

(Thomas A.)

Inc., West Orange, N. J. ""

Thubday, August 1; 1945

Forest City Mfg. Co., St. Louis

(8/29)

•

V T:
/V,■/'
"June 17, filed 280,000 shares ($1. par) common:stock."
July 29 filed 100,000 shares of Class B common stock, : Underwriters—Peltason, Tenenbaum Co., St. Louis. Ofnon-voting (par $3.33%) all of which are issued and out-ferlng—Shares will be offered publicly at $11.25 a share.
proceeds—Net proceeds go to the selling stockholders.
standing. Underwriters—Riter & Co. Offering—Shares
offered are part of the holdings of Mrs. Mina M. Edison,
Frontier Refining Co., Denver, Colo. (8/8)
Charles Edison and Theodore M, Edison.
Price, by
■

ing—Price $1

a share, Proceeds-~For expansion of mill,
underground development, property payments and work-'
■

ing. capital/
Cyprus Mines/ Ltd., Montreal, Canada
May 31 filed 500,000 shares of common stock (par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto,
Offer¬
ing—Shares will be offered to the public at 75 cents a
share.
Proceeds—Net proceeds, estimated at $300,000,
will be used for mining operations. Business — Explor¬
ing for
•

amendment.;

June 27 filed $100,000 of 4%% first mortgage bonds,
due 1951; 3,500 shares ($100 par) 5% cumulative
pre¬
ferred stock and 15,000 shares ($1 par) common. Under¬
writers—Peters, Writer & Christensen, Inc., arid Sidlo/

Business—Manufacture and sale of elec¬

trical instruments.

Electric Auto-Lite Co.,

Toledo, Ohio

(8/5)

Simons, Roberts & Co., Denver.

June 26, filed/298,971 shares. ($5:par) common stock.
Underwriters—Lehman Bros., arid i|rnith, Barney & Co.,
Offering—Shares are offered for subscription to common
stockholders of record July 16 at the rate of one share

jjd common stock will be offered to the public,: but
preferred
the

for each four shares held at

ore.

Danly Machine
(8/14)

Specialties, lnc», Cicero, III.

initially will be offered for subscrip¬
tion to present stockholders at $11 a share at the rate

$55.50 per share. Rights ex¬
pire Aug. 2. Proceeds—Company will use $10,000,000 of
net proceeds toward the payment of its current bank

July 26 filed 60,000 shares ($25 par) 5% cumulative pre*
ferred stock, with warrants attached for purchase of

shares, and 130,000 shares of common
Underwriters—Paul H. Davis & Co., and
Shillinglaw, Bolger & Co., Chicago.
Offering—Of the
total common 60,000 shares are reserved for issuance
upon exercise of warrants, / Price by. amendment. prov
ceeds—Company will receive proceeds from the sale of
the preferred shares and from the sale of 30,000 shares
of the common.
Stockholders will receive proceeds from

banks.

The remainder will be used to replenish work¬

stock, of

ness-^Manuf^ctures heavy duty vibrators and power sup/>/:/. /' ///•
r'■ ■.
Engineers Waterworks Corp., Harrisburg, Pa.

Davis

Mfg., Inc., Wichita, Kans.

Stroud & Co., Inc., Philadelphia. Price, $101.; Proceeds
for purchase of additional water properties or their
securities and for other corporate purposes;

Family Finance Corp., of Wilmington, DeL
(8/1-2)

Derby Gas & Electric Corp., New York
June 19 filed 20,066 shares (no par) common stock. Un¬
derwriters—No underwriters were named and there was

indication that there would be any.
Offering—The
shares will be offered for subscription to-present com¬
no

•

mon' stockholders at the rate of one share

together with other funds, will be applied as loans to
the company's three Connecticut subsidiaries: Derby
Gas & Electric Co.j Wallingford Gas Light Co., and the
Banbury and Bethel;Gas and Electric Light Co.

(8/8)

Derby Oil Co., Withita, Kans.

July 19 filed 131,517.3 shares;r($8; par) common stock.
Underwriting—H. Mi Byllesby and C6>; Inc./ Chicago,
and Nelson Douglass
Co.,;Los Angeles;
Price by
amendment.
Proceeds—Part of the estimated net pro-

•

bank loan. The remainder,
funds/ will be used to expand, a drilling, and

/ ceeds will be used to pay a
.

with other

exploration program.
Diamond T

Motor

Car Co.,

III.

Chicago,

Mkrch 29 filed 60,000 shares of common- stock (par $2).
Shares are being sold by certain stockholders. Underwrit¬

ers—Hallgarten & Co. Offering—Price based on market.
For details see issue of April 4.
•

; July 25 filed 65,347 shares (no par) common stock. Undemriter—Merrill Lynch, Pierce, Fenner & Beane, New

.Offering—Stock will be offered at rate -of onehalf share for each share held.
Unsubscribed shares will
Price by amendment.. Proceeds

—To be added to general funds. Business—Production
of electronic and acoustic dictating machines and acces¬

;

•

July 25 (letter of notification) 50,000 shares
common.

;

The shares

are

to be delivered to

($1 par)
Benjamin

Hinerfeld, Passaic; N., J., and Isidor Josephson, Nutley,
N. J.,, as part payment of purchase price of all issued
and outstanding common stock of Purity Drug Co., Inc.,

Shares are valued
If stock is publicly offered, supplemental

share.

letter of notification will be filed.
•

; * •-</

Dyke Bros., Fort Smith, Ark.

July 22 (letter of notification) $290,000 4% sinking fund
/ debentures, due 1956.
Offering price, $1,000 ~a unit.
Underwriters—Edward D. Jones & Co. and Metropolitan
1 Sri Louis Co., both of St. Louis. Proceeds—For additional
"working,capital. -■
,
v
.
> i
v
.

Eastern

Electronics/Corp., New Haven,/Conn.

July 26 (letter of notification). 10,000 shares of Class B
capital' stock. No; underwriters.
Offering price $10 a
share. Proceeds to repay, outstanding loans and purchase
new equipment.
;
;

Business—Manufacturers of

junior miss wearing apparel.
'

•
Grand River Airpark Corp./ Grand Rapids/ Mich*
July 26 (letter of notification) 188,000. shares of com¬

(8/12)

stock, No underwriters.

Offering price $1

share.

Proceeds to be used to provide an airport, sea plane base,

hangars and machinery and equipment
public airport north of Grand Rapids. /'
'

;./?X

:;v-;

"',/

•*

for

operating

' V.'\'

4
/

Graupner (Robert H.), Inc., Harrisburg,^ PaJuly 8 filed $350,000 4%% sinking fund debentures,
33,000 shares 6% cumulative preferred stocks ($10 par)
and $68,000 shares (50c par) common stock. Underwriters
—E./H. Rollins & Sons, Inc., and Stroud & Co., Inc.
Offering Priced-Debentures $1,000 per unit The pre¬
ferred and common? will be/publicly sold bv units con¬
sisting of 1 share of preferred and 1% shares of com¬
mon at $12
per unit
Proceeds—To pay the balance^^ of^^

principal and/ accrued interest^the $673,009
by,Fidelity-Philadelphia Trust Co^ and' fees

note held
Films Inc., New York

and expenses connected

(8/13-16)

June

25, filed 100,000 shares ($5 par) class A stock and
100,000 shares (10 cent par) common stock.. Each share
of class A stock is

stock.

initially convertible into 2 shares of
nMa-rarI

miHl

niv

Inc., New York.
Offering—To be offered publicly.
At $8.10 a unit consisting of one share of class *A
stock and one share of common stock/ Proceeds-*-$201,000 for retirement of 2,010 shares ($100 par) preferred
stock at $100 a share; remaining proceeds, together with
other funds, will be used for- production of educational

- ^

■

Shillinglaw, Bolger & Co., Chicago,
Offering—Price/
$3.50 a share.
Proceeds—Net proceeds will be used
partly for working capital and to pay for production
equipment now being acquired by the company.
•

:,/• f

•
Finch Telecommunication, Inc., New York
July 24 (letter of notification) 2,000 shares ($1 par) capital stock fori benefit of William G. H. Finch.
Under¬

with the issue, ;

Greens Heady Built Homes Inc., Rockford, III*
(8/15-30)
July 2 filed 350,000 shares ($1; par) common stock.
Undemitc^R ' r Johnson & Co iNew ^rk and
unat rwriiers
n. xi. oonnson « v^u.,
xorK, dllu

Dndemriter$~Herr^

ATcxir

films.

of Passaic, purchased by the company.
/at

To selling: stockholders.

Fidelity Credit Co., Inc., Aberdeen, Md.

Tr,/.

Drug Products Co., Inc., New York

Industries

sold by eight selling stockholders.
Underwriters—Van
Alstyne Noel & Co. Price by amendment. Proceeds—

July 25 (letter pt notirieation) 1 j)00 shares ($100 par)
preferred stock. No underwriters. Offering price $100
a share.' Proceeds for working capital.

common

sories and electronic recording machines,

Glen

Inc., Milwaukee, Wis. (8/19)]
July 31 filed 50,000 shares of $1.25 cumulative converti-.
ble preferred stock series A ($20 par) and 150,000 shares
(10c par) common, all issued and outstanding and being!

July 24 filed 200,000 shares ($1 par) common stock.
Underwriter—Van Alstyne, Noel & Co. Offering—Offer¬
ing does not constitute new financing but is a sale of
currently outstanding shares owned by members of the
Meyers family, owner of all outstanding stock. After
giving effect to the sale and assuming exercise of certain
warrants and an option, the Meyers family will retain
ownership of approximately 58% of the common stock.

York.

be sold td'underwriters.

•

mon

Fashion Frocks, Inc.

Unsubscribed

115,000 shares of cumulative convertible

to pay off notes.

•

(8/13)

Dictaphone Corp., New York

July 8 filed 90,000 shares of 4%% cumulative preference
stock, Series A, (par $50)—convertible to and including
Aug. 1, 1956/ and 25,000 shares ($1 par) common stock.
Underwriters—E. H, Rollins- & Sons, Inc.
OfferingHolders of the company's outstanding $1^0 cumulative
preferred stock, Series B, (no par), are offered the
opportunity to exchange such shares for. 56,017 shares
of the 4%% preferred.
Unexchanged old shares will be
! called for/ redemption on Oct. I/;;- Offering—Prices by
amendment.
Proceeds—To« retire the presently out¬
standing 87,035% shares of $1.50 cumulative preferred
stock, Series A, and 25,000 shares of the same stock,
Series B, at $26.50 and $27.50 a share, respectively. The
balance will be added tb general funds.
r

for. each 10

Proceeds—Proceeds,

Price by amendment.

shares held.

held.

offered

due

;

Gentry, Incorporated, Los Angeles
;
July 15 filed 210,000 shares ($1 par) capital stock.
Underwriter—Lester & Co^^^ LoS Angelesi
Offering^/
Of the total, the company is selling 120,000 shares to tb^
underwriters and George E. Clausen, President, is sell¬
ing 90,000 shares of which 60,000 will be sold to under¬
writers and 30,000 to employees of the company. PricePublic offering price $6 a share and price to employees?
will be $4.25 a share. Proceedsr—Estimated net proceeds
of $600,000 will be used by the company to construct a
new plant at Oxnard, Calif., to purchase equipment and

June 24 (letter of notification) $275,000 4% debentures
1971. Underwriters—C. * C, Collings & Co., and

12 (letter of notification) 26,600 shares of $1 par
common stock. Offering—Price $11.25 a share.
Under1 writer—Nelson Douglass & Co.; Los Angeles/ Proceeds-rTo pay off loan and to provide, funds, for costs of addiItional manufacturing space, machinery and equipment
and for working capital.
; July

100

will

preferred stock; ($25 par). Underwriters—W. C. Langley
& Co, and Aronson, Hall & Co) / Price^by * amendment/,
Proceeds—To pay cost of acquisition, construction arid/
equipment of new plant, and for working capital.
;

each

Frosh Shoe Co., Inc., New York (8/5)

July 26 filed

Proceeds—From sale of company's 100,000 shares for pur¬
chase of inventory; payrolls/and working capital. Busi-

_.;v

presses.

for

common

July 29 (letter of notification) $300,000 12-year 3 % de-i
bentures, due July 1, 1958. Not underwritten. Price,
par. Proceeds-ZProceeds will be added to general funds,

/Electronic Laboratories, Inc./Indianapolis/ Ind.
common

■

•

Jul^29 filed 140,000 shares ($1 par)

ith&safe of 40,000 shares of common, .Company will, use
pts proceeds, together with a $1,000;000 bank loan, to
purchase machinery, buildings and equipment ^and to
retire bank indebtedness.
Business—Manufacture of die
sets* and die makers' supplies and mechanical stamping

publicly.
Price—
The bonds will be sold at $101; preferred at $100 a
share,
and unsubscribed shares of common at $11 a share.
Proceeds—Working capital.
<
r"

ing capital,
•

loan with Central Hanover Bank & Trust Co. and other

60,000 common
stock (par $2).

Offering—The bonds

stock

Grolier Society, Inc., New York

(8/19)

July 29 filed 18,500 shares at $4.25 cumulative preferred
stock ($100 par), with non-detachable common stock

purchase warrants entitling registered holders of shares
of the $4.25 preferred to purchase at any time 64,750
shares of common stock at $16 a share at the ratio of 3%
writer—Littlefield & Co., Providence, R. I.
Offering— ; common shares for each
preferred share held; and 120,Price at market, estimated at $13 a share,. proceeds—
;000 shares of $1 par common stock. Underwriters—H.
To seller.
M. Byllesby and Co., Inc.
Offering—Underwriters to.
purchase from the company 18,500 shares of preferred
•
Flint Frozen Food, Inc., Asbury Park (8/2)
and 20,000 shares of common;\and from Fred P. Murphy
July 26 (letter of notification) 2,700 shares of 6% pre¬
and J. C. Graham, Jr., 100,000/shares of issued and out¬
ferred stock ($100 par), 2,700 shares ($1 par) common standing common. Priced, preferred $100 a share; comand 2,700 non-transferable warrants.; .No. underwriters. ;
,mon $14 a share.
Proceeds—To retire $6 cumulative
Offered in units of one share of preferred and one share :/
preferred, pay notes, discharge n loan. Business—Pub¬
of common at $110 a Unit; Proceeds--To working
capital.?^ lication and sale of reference and other books.
.

•

Eastern Gas & Water

Co., Philadelphia (8/1)

July 23 (letter of notification) $254,000 of secured 4% t
bonds, due 1976. Offering price, $1,000 a unit. Underwriter-^Bioren & Co., Philadelphia. / Proceeds—For

quisition of properties*

ac¬

Economics Laboratory, Inc./ St.

share.

^Underwriting, Kalman 65 C0., Inc.) St. Paul.

Gubby Mines, Ltd., Montreal, Canada

common stock (par $1). Un« :
derwriters—J. F. Reilly & Co., Inc., and Courts & Co.

*0-00

r-/v

May 31 filed 500,000 shares of

common stock (par $1).
Underwriters—Sabiston-Hughes, Ltd., Toronto. Offer¬

Offering—Price to public $3.50 per share.
Proceeds— - ing—Shares will be offered to public at 75 cents a share.
Proceeds will be used for the purchase of six land
Proceeds—Net proceeds, estimated at $300,000, will be
planes, ten flying boats, reconditioning of flying boats
used for mining operations.
Business—Exploring for
and working capital. Business—Company was incorpo- f;
ore.
rated on March 9, 1946, to operate as a charter air /
Gulf Atlantic^Trahsport'n Co./^Jacksonville, Fla.
carrier,
<

Paul, Minn.'
•

July 17 (letter of notification) 10,000 shares of $20 par
4%% cumulative preferred stocky Offering—Price $20 a
.working capital.^

Flying Freight Jlnc., New York

May 6 filed 300,000 shares

Foreman Fabrics

Jan. 17 filed 270,000 shares of common stock (par $1).
Underwriters—Blair & Co. Offering—Stock is being of¬

Corp., New York (8/19)

fered to present shareholders at $3 per share.

For
*

Holders
July 29 filed 110,00 shares ($1 par) common stock, all J;
outstanding. Underwriters—Cohu & Torrey. Price by I of approximately 200,000 shares have agreed to waive
their preemptive rights, //-v:;.;;,/////- /
v->*:v ■
amendment.
Business—Textile converting.
;
i
" f*
,

*•%

??■¥?■

THECIOMMESClAL&FINAWbiALCHRONfCtE

:»:;;<;v:

;

tj ■".. >'.•••'

fc&'l

'■'''' .>' >

>•,

A «'i

■'&>"«

653

•

Hansy Copper & Gold Mines, Inc., Avery, Idaho
July 23 (letter of notification) 240,000 shares oftcommon capital stock tobe sold for the benefit of the issuer;
No underwriter. "Offering price 10 cents 0 share.
Proceeds todevelop; miping property, and purchase: ma¬
chinery and equipment.-

New Issue Calendar
(Showing probablo date

Seismograph Service Corp.—..——.^.Common
Sun Ray Drug Co
..——^.Debentures

( V

\ *v

Mich.

'TV

Trane Co.

Manufacturing Corp., Grand Rapids,

Butler, Inc
Preferred
Kellogg (Charles C.) & Sons Co
Street & Smith

Bonds

British

August 17, 1946

Common

—

Common

...

Container Corp. of America—^
Frontier

Common

Dehydrating

Milling Co

Fashion

Gr. Rapids, Mich.

Feb. 27 filed 215,000 shares of common stock
($2 par).
Shares are being sold by certain stockholders. ~ Stock
acquired by selling stockholders in exchange for 432,000
shares common stock (par $3) of American
Engineering

^'Undei^itei^To be immed by amendment. Offering
—Price to public by

by SEC. For details
Heller

amendment.

see

(Walter E.)

proceeds for general working funds.

-?Tf-

Herd Theatrical Cofp.fNew York;■!
July 26 (letter of notification) 2,500 shares v'o£ class A

'(par: 10c) and: 2,500 shares of class B stock

(par 10c)

and 2,400 shares of 3% cumulative preferred stock
($100

par).
No underwriting.
Offering prices, 10c
V't .for both class A and class B and $100 a share
ferred.
Proceeds—For working capital.

—Refunding.:

September 19, 1946

Jg to general funds.
Hudson Pttlp& Paper Corp., New York
(8/12)
July 23 filed $3,000,066 of sinking fund debentures due
1966.
Underwriters—Lee Higginson Corp., New York;
Price by amendment. Proceeds^Net proceeds with other
funds will be used to finance construction of a mill near
Palatka, Fla. —
«y; •;

(

Illinois Power Co., Decatur, III.
June it, filed 200,600 shares ($50 par) cumulative pre¬
ferred stock and 966,870 shares ;(no
par) common stocks
Underwriters—By* competitive bidding. Probable bid¬
ders ' include Blyth & Co., Inc. and Mellon Securities
Corp. (jointly) and Morgan Stanley & Co. and W. E.
Hutton & Co. (jointly). Proceeds—Net
proceeds from the
sale of preferred will - be used to reimburse ? the comV pany's treasury for construction
expenditures. Net pro¬
applied for-

re-

demption of 5 % cumulative convertible preferred stock
not

converted

date.

The

into

common

balance will

prior

added

the

redemption
treasury funds.

Industrial Brownhoist Corp., Bay
City, Mich.
28, filed 309,716 shares ($1 par) common stock.
-Underwriters
Gottron, Russell & Co., Cleveland, and
Goshia & Co.,
Toledo.g Offering—Of the total, 137,515
June

—

shares will be offered to the public and

172,201 shares

Will be offered for exchange to first preferred stockhold-

.Preferred

share.
Shares will be offered to following New Yorilt
houses afid sdkf to b^heiriibidd^MerifiU'' Dyhch, Piefcq,
Fenner & Beane; L: D. Sherman arid Co.j Greett &

Co.;
Batkin, Jacobs & Co.; Troster, Currie & Summers;, and
Edward A. Purcett & Co.
Proce0d$---TQ* seliihg stock^

Jensen

Manufacturing Co., Chicago, III. (8/12)
holder.
July 24 filed 148,176 shares ($1 par) common stock. Underwriter~-DoylO/ O'Connor
co.> Chicago.
^Price^f
$8.87%

a;_riiare,. Rroceedsi-^Shares 'are being: sold; by ;.
4wo stockholderia'iMid MIT^^faceive^ ^net pfocOeds/^ >'
M^:|.
•

Kellogg

(Charles C.)

(8/6)

Proceeds

filed

100,000 shares

($1

par)

a
..

share.

stock.

Montgomery, Ala.

;'*■

stock.

Underwritefs-~No underwriting.

common

and

Offering-i-Price,

fixtures, equipment and other corporate

filed

150,000

Co., Preque Isle,

Me.

Mathews Conveyor Co. of

July

purposes.

(letter of notification)

10 filed 40,000 shares

Underwriter—Singer,

Livingston Mines, Inc., of Seattle
July 3

Mines, Ltd., Toronto

share;

Proceeds—Proceeds will be used to pay
for its temporary quarters in New
York, for furniture
$10

Proceedsfor working

($10 par) capital stock.
Underwriters—To be determined through competitive
bidding.
Probable bidders include The First Boston
Corp.; Kidder, Peabody & Co., and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co. Proceeds—The shares
are being sold by Consolidated Electric and
Gas Co,
parent of Maine Public Service, in compliance with
geographic integration provisions of the Public Utility
Holding Company Act.
■"

*,<

Liquid Conditioning Corp. of New York
July 3 filed 70,600 shares ($10 par) class A

used

Maine Public Service
June

Proceeds—Working capital.
4"H

••

capital stock (par 40c)*
supplied by amendment.
Offering—Stock will be offered publicly in the U. S. at
40c a share (Canadian money).
Proceeds—Proceeds,
estimated at $75,000, will be used in operation of the
company.
Business—Exploring and developing gold
mining properties.
^ /

June 28; 1946 iiled 225,000 .shares (10 cent
par) common
stock.
Underwriters—Newbiirger and Hano, Philadelphia, and Kobbe Gearhart & Co., Inc:, New, York. 'Price

—$5.50

Co., Detroit.

will

company

filed 250,000 shares of
Underwriters — Names to be

Underwriter—Ames, Emerich & Co., Chicago. Offering
~To public at*$9 a share.
Proceeds—Acquisition, etc.
Lime Cola Co., Inc.,
(8/12-16) -f;

the

Mada Yellowknife Gold
June

(8/5-9)

common

capital.

plant.

Kungsholm Baking Co., Inc., Chicago

behalf of the company and 20,000 shares
behalf of Mackworth G. Rees, Presi¬
dent of the firm.
Offering price, $2.50 a share.
Under¬
common on

writer—Charles A. Parcells &

July 31 (letter of notification) $150,000 15-year sinking
fund first mortgage bonds.
Underwriter—Mohawk Val¬
ley Investing Co., Inc., Utica, N. Y. Price to public, par.

mortgage

9; Mackworth G. Rees, Inc., Detroit fKI p
Jiily^2$^ (letter^ Of^;idtificatibri) ->20,000 shares- •($!• patf

common on

($1 par)

& Sons Co., Utica, N. Y.

June

are

ceeds from the sale of common will be

...Common

Brown & Bigelow...—Pfd. and Com.

American Locomotive

Proceeds—To retire $137,000 10-year sinking fund first
and refunding mortgage bonds of 1947 and.
$26,400 first

Common

September. 3, 1946

•

Agency Inc

August 29, 1946
City Mfg. Co.——.....

..Common

selling the common shares.
PrIce-^$25 a share ;df preferred;. Price fop the common
by amendment. Proceeds—Net proceeds will be added

Forest

Capital Stock

(Henry) & Co., Inc., New York
June 28,1946 filed 20,000 shares of 4%% ($25
par) cumu¬
lative convertible preferred stock and
33,884 shares
($1 par) common stock. Undrewriters—Otis & Co., Cleve¬
land, Ohio. Offering—Company, is selling - the preferred

August 20, 1946
Air Express International

ers on a share for share basis.
Unsubscribed shares will
be offered to the public. Price by amendment. Proceeds

for pre¬

Holt

shares and stockholders

...Common

....

•"4

& Co., Chicago

ceeds

Corp.

—

San-Nap-Pak Mfg. Co., Inc
Velvet Freeze, Inc

issue of March 7.

from
70,0^ shar^ of cdmmori and the 10,000 shares
of. preferred.. .TWp StockhQlder$ will receive proceeds
from 10,000 shares of common.
Company will use its

Rowe

Riverside & Dan River Cotton Mills——.Preferred

Stop order hearing

July 12 filed 80,000 shares of ($2 par) common and
10,000 shades ($100 par) A% cumulative preferred. Un¬
derwriter—F.Eberstadt-gc Co., :Inc., New York. Price
by amendment: Proceeds—Company will ireceiVe pro¬

Frocks, Inc.—
—-Common
Pulp & Paper Corp.——Debentures
Jensen Manufacturing Co
Common
Lime Cola Co., Inc.
Common
Morrison-Knudsen Co., Inc.——Pref. and Common
Nugent's National Stores, Inc
Common
O'Okiep Copper Mining Co. Ltd..>American Shares
Orangei-Crush de Cuba.————Common
Pep Boys—Manny, Moe & Jack.
.Common
Reporter Publications; Inc.^.—:^.'___>^—_CommOn

Forming Corp..^'i^-~^4.^w------Comiiion
Republic Pictures Corp;^-^-j.i.^^^Pfd; and Cohut

Hudson

| Wash.

;■

Metal

August 12, 1946

Dunlop; Elmer
Edward Johnston; Hunter Creek Mining Co., Spokane,

Glen, InduStries;Inc,..^.^^^.i^i:iii^Pfd.4ind Com;
Grolier Society, Inc.—
..Pfd, and Com.

Preference and Common

ing—Price 21 %c.

Proceeds—To the five selling stock¬
holders viz: Waldorf Theadore
Anderson; Butte & Couer
D'Alene Development Co.; Cecil Oliver

Capital Stock

Refining Co.—Bonds, Pref. and Common

National Alfalfa

>tock. Underwriter—Waldorf Theadore Anderson. Offer¬

August 19, 1946
Black, Sivalls & Bryson Inc..^......Pfd, and Com.
Canfield Mfg. Co..—s...-i^...Common;
Edisoa (Thomas A;) Inc^^ii^Clas« B'Common
Electronic Laboratories, Inc
:
Common
Forman Fabrics Corp.....
Common

—Preferred

——

Industries Corp

^Common

American Home Products Corp;.—Capital Stock

Bonds

Derby Oil Co.—

Hayes Manufacturlng Corp.,

;

August 8, 1946
Co

Preferred

Common

August 7, 1946

American Woolen

Corp

August 15, 1946
Greens Ready Built Homes, Inc..

and Common

Publications, Inc

Danly Machine Specialties Inc,
Pref, & Common
General Bronze Corp..;—
...Preferred:;:
Haskelite Manufacturing Corp..^.
^^...Debentures
Plum (Philip) & Co., Inc.—Common
Schuster (Ed) ,& Co.; Inc.——i.wi...—i^Common
United States Plywood

Boulevard Sanatarium Corp
National Cellulose Corp

Hayden Hill Consolidated Mining Co.
July 22 (letter of notification) 400,000 shares of capital

August 6, 1946

plywood and other laminated'products for railroad passenger car equipment, aircraft, trucks, buses, etc.

—.Common :
Airline Foods Corp..
Debentures and Preferred
Allis-Chalmers Mfg. Co.—Debentures and Preferred
American Overseas Airlines, Inc...—Capital Stock:

—v._Common

—

(8/14)

July 26 filed $1,400,000 15-year 4J/2% sinking fund debentures due 1961, and warrants with each debenture for
purchase of a maximum of 30 shares of $5 par common.
Underwriters—Brailsford & Co., Chicago. Offering price,
100. ; Proceeds — Of the $1,285,562 estimated net proceeds, company will use $750,000 to purchase preferred
stock of Humboldt Plywood
Corp., an Oregon corpo¬
ration, and $75,000 to buy equipment. Any balance will
be added to working capital.
Business—Production of

Abbott Laboratories

Kungsholm Baking Co., Inc.—-—.-w——Common
Neville Island Glass Co., Inc
CI. A and. Common
Newmarket Manufacturing Co
1-Common
Oberman & Co.———Preferred and Common
Payne Cutlery Corp
Common.

.*•

August 14, 1946

Associated Spring Corp....Common

Consolidated Air Transit, Inc.----Pref, & Common
Electric Auto-Lite Co.——_.r—
-Common
Frosh Shoe C<h Inc.
.-.—Debentures

Johnston, Lemon & Co., Washington, D. C. Offering—
To be offered to the public at $8 a share.
Proceeds-*
Company is selling 60,000 shares and stockholders are
selling 40,000 shares. The company will use its proceeds
to pay the costs of opening additional stores and to ex¬
Haskelite

Equip. Trust Ctfs.

*
Common
Films Inc^ —^-Cl. A and Common
Pebble Springs Distilling Co.—
Common

August 5, 1946

Hartfield Stores, lnc., Los Angeles

pand merchandise in its existing stores.

Common

Chesapeake & Ohio Ry.,
12 noon (EST).
Dictaphone Corp,
J

Northern States Power Co.
Preferred
United States Spring & Bumper Co.—Pref. & Com.

June 27 filed 100,000 shares ($1 par) common stock.
Underwriters—Van Alstyne, Noel & Co., New York, and

August 2, 1946

being sold by the company. Price by amendment,
proceeds—To be added to working capital.

Common

Food, Inc
Preference and Common
Herd Theatrical Corp.^CI, A/ CI. B and Preference

are

Acme Electric Corp..—.—.

Flint Frozen

-Bonds

Family Finance Corp.——Preference and
Michigan Steel Casting

e, Offering—Metropolitan
Industries Co. owns 106,234%
of the shares which are issued and outstanding, and
it,will, receive entire proceeds from their sale.
The re^ f maining 25,000% shares are authorized but unissued and

August 13, 1946

Eastern Gas & Water Co

air

of offering)

August 1, 1946

Harbor Plywood Corp. of Hoquiam, Wash.
"f June 27 filed 131,235 shares of coinmori stock <no par).
Underwriters—First California Co. and 12 associates,

250,000 shares of

sold for

non¬

the

the entire

share.

—For mine acquisition and

Underwriters—Lobe and

stock offered

•

Offering—

being sold by certain stockholders who will receive

proceeds.

Price by amendment., Proceeds-

Offering price estimated at $3.25

Metal Forming Corp., Elkhart, Ind. -(8/19)

July 29 filed 60,000 shares ($1 par)

common

by and for the benefit of Leopold H. P,

Klotz, President.

Scribner.

30,000 shares for increasing plant capacity.

development.

5,OOOshares of

;
stock.

common

Company will use the proceeds from the sale of its

Proceeds

Luscombe Airplane Corp.; Dallas, Texas'

July5<letter of notification)

par)

company's account; balance of 10,000 shares

are

public at 20 cents

Ellwood City, Pa.

30,000 are authorized but unissued shares and will be

assessable common stock (par 5 cents) to; be offered to

Moore, Inc., and Alfred Lind, both of Seattle.

Deane

($1

*derwriter~First Colony Corp.

(Continued

common

stock.

Un-

^Offering—For the bene-

on page

654)

Thursday, August 1,1946
*

•

•••'..

„

(Continued from page 653)

/Ripley & Co.; The First feoston Corp.' Offering—Shares,

„

which

fi£

of 11 selling stockholders.

Price, $7,50 a share.
ness—Manufacturers of welded tubing and light
mouldings,

Busi*
♦

will be sold at competitive bidding.

Michigan Gas & Eiec. Co., Ashland, Wis.
!. *June 24 filed $3,500,000 of series A first mortgage bonds,
due 1976; 14,000 shares ($100 par) cumulative preferred
stock and 120,000 shares ($10 par) common stock.
Un:% derwriters—To ~ be determined by competitive bidding.
Probable bidders include Blylh & Co., Inc.; Kidder, Pea-

ceeds will go to

body & Co.; The First Boston Corp.; Harris, Hall
Co.
(Inc.); Merrill Lynch, Pierce, Fenner & Beane, and Ira
Haupt & Co. Offering—New preferred will be offered
on a share for share exchange
basis to holders of its
outstanding 7% prior lien, $6 no-par prior lien, 6%
preferred and $6 (no par) preferred. Of the common
stock being registered, company is selling 40,000 shares,
Middle West is selling 57,226 shares and Halsey, Stuart
& Co. Inc., New York, is selling 22,774 shares. ) Prpceeds
Michigan will use net proceeds from bonds to redeem
$3,500,000 3%% series A first mortgage bonds, due 1972,
at 106.75 and interest.
Net proceeds from sale of com*
mon and from shares of new preferred not issued in ex¬
change will be used to redeem $375,000 3%% serial de¬
bentures, due 1951, at 101.2 and interest. It also will
redeem at 105 and accrued dividends all unexchanged
shares of prior lien and preferred stocks.

City,

Mich.

writing.. For construction of generating
for reimbursement of treasury funds.

!
I

>*"M

chase additional facilities,

? V '/'J.\

■_

(G. C.)

Murphy

^-iv'

»' "",

fiew York.

Price—$4 a share. Prooceeds—Adchtional
equipment, construction of additional warehouse facilities and other corporate purposes. ^
Midwest Packaging

Materials Co., St. Louis
($10 par)

July 12 filed 15,000 shares

^ '
'

5% cumulative,

Convertible preferred stock and 85,000 shards ,($1 par)

„.

Price—Public offering price preferred $10 per
share; common $5 per share.
Proceeds—Net vprojaeeds
will be used to purchase all outstanding common stock

1; 1951.

of Midwest Wax

'Modern

luly

Paper Co. and to increase general funds.

Development,Co., New York

1,500 shares cumulative
Convertible preferred stock (par $100); 150,000 shares

8 (letter* of notification)

cent) and
30,000 shares of class B voting common stock (par. 1 cent);
Underwriters—Robert H. Malcolm, Earl M. Turner and
Frederick M. Harris, all of New York.
Offering—To be
offered in units of one share of preferred, 100 shares
class A

class A

non-voting

common

stock

(par

and 20 shares of class

B common at

$101.20 per unit. Proceeds—Proceeds will be used to ac¬
quire leases and options upon mining properties of
proven

worth in California, Arizona and Nevada.

Montgomery Construction Co., Hatboro,

Pa.

July 5 (letter, of notification) 100,000 shares of class A
stock (par $1).
Securities will be offered through reg¬

June

28,1946 filed 150,000 shares ($1 par)

Underwriters—Lehman

stock.
Offering—Price by

Brothers.

record

common

stockholders of

July 18, at the rate of one share for each four
shares held.
Rights expire Aug, 13. Price—$50 a share
Proceeds—Net proceeds, estimated at $64,876,228, will
be added to the company's general resources;
on

Morrison-Knudsen Co., Inc.,

Boise, Ida. (8/12)

♦fuly 22 filed 249,550 shares ($10 par)

common and 70,000
4^% cumulative convertible- pre*
Underwriter
Blyth & Co., Inc., New York,

Shares of ($50 par)
ferred.

—

Price by amendment. Proceeds—Selling stockholders are
offering 149,550 shares of the commom and will receive
proceeds from these shares.
The company's proceeds,
together with funds to be provided from the sale oi
$2,000,000 of 3^% debentures, due 1961, will be used to
retire its certificates of indebtedness, outstanding pre*
ferred stock and a portion of its bank loans, | It also will
;T."tiS6; the funds for investment in. preferred stocks of sub¬
sidiaries.
'

Mountain States Power Co.,
June

6 filed

140,614 shares of

Albany, Ore.
stock

(no par).
Underwriters—To be determined by competitive bidding.
Probable bidders include Blyth & Co., Inc.; Kuhn, Loeb
& Co. and Smith Barney & Co. (jointly);
Harriman,

common

were

■

by competitive bidding.
Probable
Halsey, Stuart & Co. Inc. (bonds); Har-

determined

rimaft Ripley & Co., Inc.; Lee Higginson Corp.;
Becker & Co., Inc., and Harris, Hall & Co. (Inc.).

ing—Securities

will

sold

competitive

A. G.
Offer¬

bidding.

Proceeds—Refunding.

DC-6 airplanes.

Nugent'* National Stores, Inc., N. Y. (8/12-16)
21 filed 85,000 shares ($1 par) common stock.
Underwriters—Newburger & Hano, and Kobbe, Gearhart

June

National

Alfalfa

Lamar, Colo.

Dehydrating & Milling CO.,
(8/8)

($100 par) and 212,200 shares of common stock
par).
Underwriters—Stone & Webster Securities
Corp., and Bosworth Chanute Loughridge & Co. Price
($1

Proceeds—Shares are outstanding and

by amendment.
are

being sold by stockholders.

be sold

will

the

basis

one

warrant for

each

purchased. Proceeds—Estimated net
proceeds of $1,020,000 will be used to pay off $61,000 of
loans, to purchase plant and equipment at an estimated
cost of $751,620 and the balance as additional working
capital.
Nekoosa-Edwards

one new

July

share for each four

held.

Unsubscribed shares willbe offered to the public;

Price

Proceeds—Net proceeds will be"
purchase additional inventory equipment and to
Increase working funds.
used to

Nevada Stewart Mining Co.,

Spokane, Wash.

July 22 (letter of notification) 50,000 shares of treasury
stock for benefit of issuer.
Price 25c

share.

No underwriters. Offering—

Proceeds—For further development

of mining claims.

Neville Island Glass Co., Inc.

(8/5-8)

June 3 filed 60,000 shares of

class A stock (par $1), and
stock (par 10c).) Underwriters

60,000 shares of common
—Amott, Baker & Co., Inc.; Herrick, Waddell & Co.,
and Buckley Brothers.
Offering—Stocks will be offered
to the public in units of one share of class A and one
share of

common at $10.10 a unit,
Proceeds~*Net pro¬
ceeds, together with $700,000 to be realized from the

sale of series A and B bonds, will

be used for construc¬
plant on Neville Island (near Pittsburgh) and
equipment. Any remaining proceeds will go into
working capital.
a

Cambridge, Mass.

Association,
V
,

July 11 filed $22,500,000 20-year collateral trust sinking
fund Series A bonds, and a maximum of 1,568,980 com¬
mon
shares ($5 par).
Underwriters—By amendment.
Bidders may include

Halsey, Stuart & Co. Inc. (bonds
only), Bear, Stearns & Co. (stock only), First Boston
Corp., White, Weld&Co.-Kidder, Peabody&Co. (jointly),
Offering—Bonds and common stock arc being offered in
connection with a
compromise recapitalization plan
approved by the SEC, on June 24, 1946, which among
other things provides for the elimination of all out¬
standing debentures and preferred and common stocks,
and for the issuance of $22,500,000 of bonds and 2,300,000
of new common shares.
Price by amendement. Proceeds
•—To retire outstanding securities, aggregating■? $34,998,*
500. Bidding—Expected week of Aug. 5.
>
Newmarket Manufacturing Co» Lowell,

Mass.

July 8 filed 85,000 shares ($2.50 par) common i stock. *
Underwriters—Lee Higginson Corp. Offering—Price by
amendment. Proceeds—Estimated net receipts of $1,165,000 will be applied to the prepayment in full of the
company's first mortgage note payable to Commercial
Factors Corp., balance will be added to general corpo•

North American Van

filed

106,329 American shares representing a

similar number of ordinary shares of the

par

value of

South African currency (U. S. $2,017). Un¬
derwriters—None. Offering—To be offered at $5 a share
10 shillings,

stockholders of Newmont Mining Corp.

of record

Sept. 5, 1946, on the basis of one ordinary share of
O'Okiep for each 10 shares of Newmont held as of record
date.
Primary purpose of the offering of 106,329 Amer¬
ican shares of O'Okiep is to effect such distribution of
these shares as may comply with the listing requirements
of the New York Curb Exchange as to distribution

O'Okiep has pending an application to list
Exchange;

Bus!nes$—Company organized in 1937 under South Afrif
can
laws at the instance of Newmont Mining Corp.,
American Metal Co.

Lines, Inc^ Cleveland, O.

July 26 (letter of notification) registered its no par value )
comon stock which was sold to 60 stockholders at $100 a

Ltd., and Rhodesian Anglo-Amer¬

Ltd., owners, respectively, of 72.03%, 21.60% and
5.47% of its shares. Business—Operates copper mines.
ican

by amendment.

•

Ltd. of the Union

the American shares on the New York Curb

July 16 filed 63,000 shares ($25 par) common stock. Un¬
derwriters—Loewi & Co., Milwaukee, Wis.
OfferingShares initially will be offered for subscription to com¬
stockholders at rate of

Copper Mining Co.
of South Africa (8/12)

O'Okiep

of shares.

Paper Co., Port Edwards,

Wis.

mon

corporate purposes.

(8/7)

common

Inc.

ceeds to the company,

•

May 31 filed 200,000 shares of common stock (par $1)
with warrants to purchase 20,000 shares of common.
Underwriters—Floyd D. Cerf Co., Inc. Offering—Stock
will be offered to public at $6 a share.
The warrants
shares of

Price, $6.75 a share. Proceeds—Net pro¬
estimated at $350,200, will be ap¬
plied as follows: About $111,300 for retirement of outr
standing preferred stock; $41,649 to purchase 100% of
the stock of two affiliates, and balance $197,000 for other
& Co.,

stock

New England Gas and Electric

24, filed 1,304,286 shares (no par) common stock.
Offering — The Stock

is offered for subscription to

common

Proceeds—Net proceeds, with other funds,

will be used to purchase new Douglas
Business—Air transportation.

■

Underwriters^No underwriters.

;

Obfefmati & Co., Jefferson City, Mo.

(8/5-6)

June 21 filed 80,000 shares ($10 par) 5 % ^riuiifidive
convertible preferred stdck and 75,000 'shares ($t 't>ar|
common stock.
Underwriters-r-Herrick, Waddell & Co.,

Inc., New York, principal underwriter. Offering—Tcr be
offered publicly.
Price, $10 a share for preferred and
$6 a share for common.
Proceeds—Of the $1,055,000
estimated net proceeds, the company will use approxi*
mately $189,000 to retire its 1,890 shares of $6 cumula*tive preferred stock and about $300,250 to retire mort^
gage notes. The balance will be used for general cor¬
porate purposes.
C

Orange-Crush de Cuba, S. A., Havana, Cuba
(8/12) r
July 22 filed 75,000 shares of $1.50 par common. Under¬
writer—Elder, Wheeler & Co. ^ Offering—Price $8 a
share.
Proceeds—Of the total company is selling 25,000
Shares and stockholders are selling 50,000 shares.
The
company

will use its proceeds for equipment.

Otter Tail Power Co.; Fergus

purchase of additional ground and

Montgomery Ward & Co., Inc., Chicago
June

Dillon, Read & Co., Inc.

—

(less compensation Of $2,27 per share) for a $3.60 series.
Offering—Holders of company's $5 series cumulative pre¬
ferred stock will be offered the'right to exchange their
shares for new preferred on a share for share basis plus 'a
cash adjustment. Shares of new preferred not issued in
exchange will be sold to underwriters. Exchange offer
expires Aug. 12. Proceeds—Net proceeds will be used to
redeem unexchanged shares of old preferred at $110 "a
share.
I

bidders include

for

preferred

tion of

§f

cumulative

•.

National Airlines, Inc., Miami, Fla*

sylvania, New Jersey and New York.
Price, $3 per
Share.
Proceeds—For construction equipment, building
materials and labor,

awarded the issue July 31 on bid of 102,75 per share

Proceeds—Redemption of outstanding 4%% pre¬
share plus dividends. Indefinitely

istered brokers arid dealers in States of Delaware, Penn¬

% working capital.

Underwriters

stock.

(8/2)

Co., Minneapolis

postponed.

bommon stock. Underwriter—Edward
Jones & Co.,
St. Louis. Offering—The 15,000 shares of preferred and
80,000 shares, of common will be offered publicly, and
the remaining shares of common are reserved for pur¬
chase under assignable warrants exercisable until Aug.

275,000

ferred stock at $109 a

K ment.

National Cellulose Corp., Syracuse

filed

Northwestern Public Service Co., Huron, S. P,
June 28 filed $5,275,000 first mortgage bonds, due 1976;
26,000 shares ($100 par) cumulative preferred stock,
and 110,000 shares of $3 par commoh/> Underwriters—

expansion, etc.

+
Mid-Valley Distilling Corp., Archbald, Pa.
July 24 (letter of notification) 50,000 shares ($1 par)
common and 25,000 shares ($1 par)) common for Dis¬
tillers Factors Corp. Underwriter—E. F. Gillespie & Co.,

This

Co., McKeesport, Pa.

jI June 13 filed 250,000 shares of common stock (par $1).
j Underwriter—Smith, Barney & Co; Price by amend-

Northern State Power

June

filed

June 28 filed 28,960 shares of 4V2% cumulative preferred

(8/1-6)
June 27 filed 100,000 shares ($1 par) common stock.
Underwriters—Cray, McFawn & Co., Detroit. Offering—
To be offered publicly at $8.25 a share. Proceeds—Pur¬

balance of 1,500 unissued shares at $100 a share.
filing merely precautionary.
V

pro¬

Iri the rehabilitation and expansion of a new chair plant
formerly used by its now dissolved subsidiary, Murphy
Box Co., and for machinery and equipment for the plant.
It will apply $35,000 for construction of a warehouse
arid the remaining proceeds as working capital.

facilities and

Michigan Steel Casting Co., Detroit

Proceeds—Net

Postponed indefinitely.

136,877 shares ($1 par) common stock.
Underwriters—The Bankers Bond Co., Inc., Louisville,
Ky., arid Cruttenden & Co., Chicago, heads underwriters.
Price, $5.25 a share. Proceeds—Of the net proceeds tp
the company, amounting to $147,711, it will use $65,000
to reimburse its treasury or make further expenditures

July 16 (letter of notification) 15,000 additional shares
of common.
Offering—Price $20 a share.
No under¬

Standard Gas.

Murphy Chair Co., Owensboro, Ky.
June

amendment.

Michigan Public Service Co., Traverse

its. headquarters to South Bend, Irid^ and erect ,a
home office building.
Present stockholders will take
move

56.39% of the company's outstanding common,

constitute

metal
-

"No /public offering contemplated,: Company^'to

share.

owned by Standard Gas & Electric Co. and

are

Falls, Minn.

cumulative preferred
stock, stated Value $100 a share,' and 51,216 shares f$l<f
par) common stock. Underwriters—Names by amend*

July 18 filed 60,000 shares (no par)

ment. Probable bidders

include Blyth & Co., Inc. Offer¬

ing—The preferred stock will be offered in

exchange,

share for share basis, for company's outstanding
$4.50 and $4.25 dividend preferred stocks. The exchange
offer will expire on Aug. 26.
Shares of new preferred
not issued in exchange will be sold to underwriters. The
common stock will be offered for subscription to com¬
mon stockholders at the rate of two additional share*
for each five held. ~ Unsubscribed shares will be sojd to
underwriters.
Price
by
amendment. Procecds-r-Net
pn

proceeds will bp used to pay expenses of the financing,
to pay cash adjustments to exchanging preferred share¬
holders pursuant to the exchange offer, to redeem unex¬
changed shares of old preferred eiid to retire $900,099

bank loans.

Go., Longview, Wash.
) ^
July 26 (letter of/hotificalipn) 105,943 riiares of capital
Stock ($1 par)*. NoJ underwriters.
Offering price $1 a
share. 1 Proceeds for working capital.
"
!
•

Pacific Psperboard

Pacific Power & Light Co.,

Portland, Ore.

July 10, filed 100,000 shares ($100 par) preferred stocfc
Underwriters—By amendment. Probable bidders include
Blyth & Co., Inc., White, Weld & Co. and Smith, Barney &
(jointly); The First Boston Corp., W. C. Langley & Co.;

Co.

Harriman Ripley & Co.

Offering—Company proposes td

:.V-

Number 164

',) '•'

tW'

& Co.

V V," - i'W*

'• -V

•••v"---

Inc., Nje# Y°rk

28,4946 |Ued; ^i>ia*)

capital stocks
CeV Inc.
Offering:—225,000 shares are outstanding and are/being sold by; 10
stockholders, and 2,500 shares are being sold by A. L.
MarRnan, to all salaried employees.
—

i'.?

Eberstadt

(1:'?>• i'fMh"

-•

' -!V <'V:

r>; f:'' '■>

-"V;

stock

(par 50c). Underwriter—Donald Young & Co., Inc.
Offering—To be offered public at $1,875 per Share. Pro¬
ceeds—Purchase of W. H. Compton Shear Co.

Pebble Springs Distilling Co., Peoria, III. (8/13)

Offering—Price $3.50

proceeds.

>sk.*'s

of $1.12^ cumulative con¬
vertible preferred stock, series A (par $20).
Under J
writers—Van Alstyne, Noel & Co.
Price by amendment.
Proceeds-Net proceeds will be applied for the redemp-

'■!>*:**

f: Repiiblfc pictures Corp., New YQrk (8/19)

of outstanding series A convertible preferred stocl?
ard pot
cpriyefted into common stock. Such pro-*
also *will be used for additional manufacturing

preferred ($10 p^r) aii'd 277,231 shares (50? par) com-*
mon stock.
Underwriters-r-Sterling Grace & Co. Offer¬
ing—To, be offered initially in units of one share of pre¬
ferred and 1% shares of common to holders of issuers
preferred Imd cbhimon S
in the ratio of one unit for
each 12 shares' or preferred and/Or ,cpn)mon held
record.
^icev'by;'amendment.
Proceeds—initially ;
become part of

filed 125,000 shares ($1 par) common slock.
Underwriters—Daniel F. Rice and Co., Chicago.
Price
by amendment.
Proceeds—To reduce bank loans, build

ceeds

facilities in the aihount of $600,000; for additional invent

tory
"

«•

any? corporate purpose.
Business-r-Production and
distribution of motion; pictures/
^

facilities

for

and

other

corporate

purposes.

Business—Engaged in distilled spirits business.
Pep

Boys—Manny, Moe &

Jack,

Philadelphia

(letter of notification) 99,900 shares of common
public at $3 a share. Under¬
writers—Clayton Securities Corp., Boston; Estes, Snyder^
Co.,*Inc., Topeka, Kans., and Sills, Minton & Co., Chi¬
cago.
Proceeds—To rehabilitate buildings reconverted
from war production, and for business expansion.

Reynolds Pen Co., Chicago

■

shares will be offered to company employees.
Prices—■'
The stock to be sold to the public will be offered at $7.50
a

share.

Proceeds

The price to employees will be $6.85 a share.
—
Proceeds go to two selling stockholders,.

.Maurice L. Strauss, President, and Emanuel Roserifeld,
Vice-President and Treasurer.
J

«•:

jff %

S-

.......

*•

Pettibone Mulliken Corp., Chicago

•

200,000 shares ($1 par) common stock.
Underwriters—Blyth & Co., Inc.
Offering—Company
will sell 130,000 shares to the public through the under¬
writers and 70,000 shares to Bethlehem Steel Co. PriceBy amendment. Proceeds—Working capital.

July 2 (letter of notification) 12,000 shares ($20 par)
capital stock.
To be offered to the public at $25 a
share.

No underwriters.

Proceeds—For

improvements*
buildings, machinery and fixtures and for additional

inventories.

Pittston

Co., Hoboken, N. J.

May 9 filed

$7,000,000 15-year 4% debentures due
April 1, 1961, and $1,242,300 20-year 5%% cumulative
income debentures due Jan. 1, 1964.
Underwriters^—
Blair & Co., Inc.
Offering—Price to public by amend¬
ment.Proceeds—Paypieni of promissory : notes aggre¬
gating $8,000,000. For details see issue of May 16.
a

Portland

(Ore.)

July 2, 1946 filed 50,000 shares of 4% % cumulative pre($100 par). Underwriters—Scott and Stringfellow, Rictoond;v Va. Offering -— New preferred is
offered in exchange for shares of the company's Out¬

State Street Exchange, Boston, Mass.

standing 6% preferred, on a share for share basis; Such
holders also will receive a $5 cash payment and accrued

July 1, .1946 filed $1,750,0Q0 second mortgage 4% nonfcumulative ihcpiho bonds, due 11961. * Underwriters—

dividends dm the old preferred. Exchange offer expires
5? p.m. EST^ Aug. 11* It is expected that unsubscribed
shares will be sold to underwriters for public offering.

•

Rowe

toger^W. Babson, Wellosley Hills, Mass., $756,000 of the
yeiv <>fforlftgc^£pmpany Will issuc' and Charles F»

bonds tP twb banks which hold two first; mortgages onr
all of the company's real estate and the remaining $1,-

Corp., New York (8/19)

July 29 filed 120,000 shares

000,000 t)f the bonds will be offered to;ihe company's

Underwriters
^Hayden, Stohe & Cq. * Offering—The selling stockhold¬
ers, who include Robert Z. Greene,: President, are offer¬
ing the sharek'to the* public through' the' uriderwfiferfe,
for their owdCddaudli
W ^hi^ndmedL Business

shafe and price to 'underwriters $26.50 a share, proceeds
—Company will pay $225,000 to the two banks holding

—^Automatic

and

its mortgages and the balance will be retained for neces¬

ma¬

sary Tepairs to its real estate.

common

merchandising

stock.

business,

operating

maintaining and servicing coin operated vending

stockholders

$1); also

additional 128,750

shares for

common

Ryerson & Haynes, Inc., Jackson, Mich.

July 2.6

(letter of notification) 15,000 shares ($1 par)
Company to issue the shares to J. L. Hoff¬
at $1.50 a share pursuant to an option he holds.
No
public offering.
Proceeds will be placed in the capital
and capital surplus accounts.

version of debentures. Underwriters—First California

tion Co.

and the properties

of the Interurban Railway

Division of Portland Electric Power Co., working capital,
etc. Offering price of debentures $105; price of common
to public, $8.25 per share.
•

Precision-Cut

Homes,

Inc.,

New Orelans, La.

July 22

(letter of notification) 2,000 shares
6%- cumulative preferred and 8,000 shares

($100 par)
of

par

Offering price, $100 a preferred share and
$1 a common share.
No underwriting.
Proceeds—For
enlargement of business.
common.

Precision

Parts

Co.

of Ann

slock.

July 5 filed 75,000 shares
preferred stock ($10 par).

cumulative

S and W Fine

•

convertible

Underwriters, Inc., Seattle
(letter of notification) 2,495 shares $100 par)

writers.

Offering—Price

par

common.

value

No under¬

shares.

Use

Radio-Keith-Orpheum Corp., New York
June 18 filed 670,000 shares of

common stock (par $1).
Underwriter—Lehman Brothers and
Goldman, Sachs
CoV Price—By amendment
Proceeds^-Atlas Corp.,

of 1,329,020 shares of

common

of RKO

(approxi¬

mately 35%) on May 31, is, selling 650,000 shares of the
offering and will receive proceeds from these
shares. The balance of 20,000 shares are to be purchased
from the company by underwriters through the acqui¬
sition and exercise of option rights granted two
company
officials. The company will receive $160,000 from the
pxercise of the option rights which will be added to

Business—Manufacture

facial

Sardik Food Products

Corp., N. Y.

ment and

Proceeds—Working capital, purchase equip¬
For details see issue of May 30.

plant, etc.

Schuster

(Ed.)

& Co., Inc.,

Milwaukee, Wis.

A Reporter Publications, Inc., N. Y.

(8/12-16|® f

July 12 filed 150,000 shares common stock (par 50c).
Underwriters—Newburger & Hano, and Kobbe, Gearhart

represents a
holders. '

25 filed 140,000 shares of common stock.

writer—Paul H. Davis & CP.; Chicago.

Price, $12

Under-?
a

shared

Proceeds—Company will receive proceeds from the sale
of 70,000 shares and selling stockholders will receive pro-?
ceeds from the remaining 70,000 shares. % Company will
use its proceeds for working capital and to reduce a bank
loan.
Business—To conduct seismograph surveys in
search of structure or structural conditions favorable to

•

share for the preferred
Prpcee^s—For working

(8/6)
stock.

common

Under-

Offering—The: offering

pari pf the bpldings of the present stock--

'•

Co., Philadelphia

(8/13)

of Baltimore, Md.
(letter of notification) 5,000 shares ($2 par)
common stock.
No underwriters.
Offering—Price $5 a
share.
Proceeds—For working capital.
<
• ,
Sussex Foods Corp.,

July 25

Taylor-Graves, Inc., Saybrook, Conn.

July 12 (letter of notification) 44,300 shares of ($5 par)
cumulative convertible preferred stock and 44,300 shares
common stock (par 50c).
Offering—Price $6 a share foif
preferred and 75 cents a share for common. Underwriter
£-Amos Treat &
Proc^eds-^For payment of notes,
mortgages and foy general corporate purposes.
^

Trane Co.,

Seismograph Service Corp., Tulsa, Okla. (8/13)

july

Sun Ray Drug

stores.
•

issue of April 4-

July 3 filed $2,000,000 of 15-year debentures.
Coupon
rate by amendment.
Underwriters—Eastman, Dillon &
Co.
Offering—Underwriters propose to offer the deben¬
tures in part directly to the public and the balance tp
certain dealers (including the underwriters) at the publie offering price. Price by amendment. Proceeds—To
pay outstanding indebtedness; for additional working
capital, and $358,000 to purchase the assets of Media
Drug Stores, Inc.," in Philadelphia, Norristown, Upper1
Darby, Lansdowne, Wayne, and Media, Pa.

(8/14)
July 26 filed 162,600 shares of common ($10 par). Under¬
writers—Goldman, Sachs & Co., New York.
Offering
price by amendment.
Proceeds—Company will receive
proceeds from 85,000 shares and selling stockholders will
receive proceeds from 77,600 shares.
Company's proceeds
will be added to general funds for general corporate
purposes. -Business — Operation
of three
department

see

Publications, Inc.

ly^ters—Qlore, Porgan & Co.

(8/5-9)

total

forking capital.

Street & Smith

and

May 29 filed-ITS,000 shares of capital stock (no par).
Underwriter—George F. Breen, New York. OfferingStock will be offered to public at $16 a share with un¬
derwriters receiving a commission of $2 a share. Of the
total being offered company is selling 155,000 shares and
the remaining 20,000 shares are being sold by two stock¬

July 17 filed 197,500 shares of

(8/12)

tissues

Offerings-Prices, $25

and $2 a share for the common.
capital.

sanitary napkins.

proceeds to be filed by amendment.

owner

Boston,

July 24 filed 80,000 shares ($1 par) common stock. Un¬
derwriters—Dunne & Co., New York.
Offering—Price
by amendment.
Proceeds—Nat E. Heit, President and

holders.
Preferred

July 23
preferred and 6,245 shares ($1 par)

Inc., New York

For details

Stevens-Arnold Co., Inc., South Boston, Mass.
July 25 (letter of notification) 3,400 shares of 5% con¬
vertible
non-cumulative preferred
stock
and 11,500
shares of common stock (no par), 3,000 shares of which
will be purchased by O'Connell & Co. for investment
£nd not distribution! /Undeiwriter^O'Cphnpll & Co.,

Foods, Inc., San Francisco

San-Nap-Pak Mfg. Co.

purposes.

July 11 filed 40,000 shares ($50 par) 4% cumulative pre¬
ferred stock, convertible series.
Underwriters—Blyth &
Co., Inc.
Offering—To be offered on a share for share
exchange basis for 10,400 shares of convertible 5% prefered stock. Shares not issued in exchange will be offered
publicly. Price by amendment.
Proceeds — For re¬
demption of unexchanged shares of 5% preferred at
$54.50 a share and for working capital.

holders.

Underwriter—Van Alstyne,
Noel & Co. and associates.
Price by amendment.
Pro¬
ceeds—Of the net proceeds, $250,000 will be used to
pay
3% notes held by National Bank of Detroit, $75,000 to
reimburse treasury for sums spent in acquisition of the
electrical division plant of the company, $30,000 for con¬
struction of space for executive offices in the
economy
baler plant, and the balance will be deposited with gen¬
eral funds.
•

corporate

director, and Harry Preston, board Chairman, Secretary
and Treasurer, will receive net proceeds as selling stock¬

Arbor, Mich.

bond for each unit of

March 27 filed 500,000 shares of capital stock (pair $1)*
Underwriters—Otis & Co. Offering—Price to public by
amendment.
Proceeds—Net proceeds will be added to
the general funds and will be available for general

con¬

Co.;
Scherck, Richter & Co.; Weeden & Co.; Allen & Co., and
Rauscher, Pierce & Co. Proceeds—To complete payment
of purchase price for the capital stock of Portland Trac¬

one

Steep Rock Iron Mines Ltd., Ontario, Can.
•

man

June 14 filed $1,250,000 4% convertible debentures due
June 1, 1966, and 200,000 shares of common stock (par

ip the ratio of

3,^ shares of stock held. Unsubscribed shares will be
hnderwriters.
Price to stockholders $27.50 a

sold to

chines.

common

Transit Co.

Mills, Inc.,

fered stock

Southwestern Public Service Co., Dallas^ Texas

July 24 filed $20,000,000 of first mortgage bonds, series
due 1976. Underwriters—To be supplied by amendment.
Probable bidders include Dillon, Read & Co. Inc.; Halsey,
Stuart & Co. Inc., and Hly.h & Co.; Inc. Price by amend-'
iqpnt. proceeds—Net proceeds, with other funds, will
be used to redeem $17,500,000 of V-k% first mortgage;
bonds, due 1974, at 106 Y& %, and to purchase the- electric;
Water and icq properties
West Texas'; Utilities Co.
located in the notthwestern portion of 'the Texas Pau-A
baiidle for $2,135,000. Business—Public utility.

Danville, Va. (8/12)

Price/ by amendment.

Southwestern Investment Co., Amerillo, Texas

Manufacturing Co., San Francisco, Calif.

River Cotton

July 17 (letter of notification) 12,500 shares of $20 par
5% convertible cumulative preferred stock.
OfferingPrice, $20 a share. Underwriting—Schneider, Bernet &
Hickman, Dallas, Tex. To furnish additional capital.'

June 26,1946 filed

Riverside and Dan

Inc., Wichita,

stock to be offered to the

May 4 filed 40d,000 shares of common stock (no par),
of which 100,000 shares are being sold by company and
300,000
by
stockholders.
Underwriters—Names
by
amendment.
Reported Allen & Co.; probable under^
writer.
Offering—Terms by amendment. ; Proceeds—
Net proceeds to the company will be added to working
capital.

—

Southwest Merchandise Mart,
Kans.

July 1

(8/12-16)

July 16 filed 200,000 shares ($1 par) common stock. Un¬
derwriters
Newburger & Hano, Philadelphia, and
Kobbe, Gearhart & Co., Inc., New York. Offering—Of the
total, 160,000 shares will be offered publicly and 40,000

ampunting to $400,000, and for additional working

i -K?

corporation's general funds and available

for

Rheem

Manufacturing Corp., New York

June 14 filed 80,000 shares

July 25

additional

655
Solar

Brpceeds—The
will receive

share.

July 31 filed. 184,821 shares of $1 cumulative convertible

'X'' W " *'

Payne Cutlery Corp., Brooklyn, N. Y. (8/5-9)
July 18 (letter of notification) 150,000 shares of common

4KS

stock is being sold by stockholders who

new preferred for the pur¬
of refinancing at a lower dividend rate* the.67,009;
outstanding preferred shares of Pacific; and the 47,806:
preferred shares of Northern Electric Co., in connection
with the proposed merger of Northwestern into Pacific.
In connection with the merger, the outstanding preferred
stocks of Pacific and Northwestern will be exchanged
share .for share, with cash adjustments, for the hew pre¬
ferred stock of Pacific, the surviving corporation. Offer¬
ing price—To. be supplied by amendment.

Underwriters

T'\

issue the 100,000 shares of

June

i\*' s-'Ki" .'.{.i

pose

.'■

v...i

•

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4512
'•'t

'•

•••>»

La Crosse, Wis.

(8/5)

June 20 filed 59,505 shares of common stock (par $2) of
shares filed 45,905 are being sold on behalf of company

13,600 oh behalf of three stockholders. Underwriter
& Co.
Proceeds—For plant additions,
improvements, etc., redemption of 6% preferred stock
and working papital.
>

and

~~Cruttenden

•
Treesweet Products Co., Santa Ana, Calif.
July 24 (letter of notification) 12,000 shares of preferred
stock, $1.25 series, for the benefit of the issueV. Under-

the accumulation of oil and gas.

(Continued on page 656)

■}*-r ft

*<>r. Y

•.

...

payment of a portion of the purchase price of the assets
to be acquired from the old company, about $100,000 for*
^/•'•* v', Organization expenses, and about* $1,100,000 for wbrking;
f*>.~'Z
capital.

a- share.
Underwriter—First of Michigan Corp., Detroit.
Proceeds^For enlargements and improvements of power

(Continued, from page 655)

writer—Mitchum, Tully & Co., Los* Angeles; Price^-$25 a £ plant facilities, > rirtx cf (• P->&X
lYgY'&y -A
Share. Proceeds to increase plant facilities an<i working
Capital.
j. Velvet Freeze, Inc.' (8/12) f
:
July 24 filed 203,500 shares of stock which are to be sold
'
Tyson Bearing Corp., Massillon, Ohio
for the account of certain stockholders.
Underwriters—
-

'''■

V V.

■

Thursday, August I> 1946

THE COMMERCIAL & FINANCIAL CHRONICLE

656

V-

■'

\y ':

V.'W

'•

•*

Wisconsin Power A Light Co., Madison, Wis*

July 16 (letter of notification) 30,000 shares of common*
Underwriters—Walston, Hoffman & Goodwin; Holt, Col¬
lins & Ede; Hopkins, Harbach & Co. Offering—Price $9
U, share. For general corporate purposes.
j,

■.

States Glass Co.,Glassport,

*Pa/y'

York (8/14)

United States Plywood Corp., New

July 11filed 60,000 shares of
A

Series

July 3 filed 90,000 shares of 5% cumulative convertible
preferred stock, ($10 par). Underwriters—Newburger
& Hano; Kobbe, Gearhart & Co., Inc., and D. Gleich Co.
Offering—Underwriters propose to offer the;; shares in

cumulative^prefetreCstocky

Underwriter—Eastman, Dillon & Co. Price by amend¬
Proceeds—To redeem 13,824 shares of cumula¬

ment.

Weetamoe Corp.,

preferred stock, Series A, and 9,412 shares of cumu¬
preferred stock, Series B, at redemption prices
$106 and $105.50 a share, respectively.
Balance to

be added to treasury cash.

United States Spring & Bumper

Co., Los

;gY Angeles (8/2-6)
Underwriters—Dean Witter & Co.

stock.

stockholders of North West Utilities Co., parent

of Wisconsin, who elect to sell such shares of Wisconsin
common which will be distributed to them
upon the
dissolution of North West Utilities Co. r\r .;, : ,

Wyandotte Hotel Co., Inc., Kansas City, Kan/
June 10 filed

$1,000,000 of 30-year Yi% income deben¬
tures;^ due 1976, and^ 10,000 shares common stock <no
par)/ Underwriters—No underwriting; The securities
offe'red to the public through a campaign di¬
by the Chamber of Commerce of Kansas City,
Kans.Offering—The securities will be offered to the
public in units consisting of one $200 debenture and
two shares of common at $210 a unit.
Proceeds—Pro¬
ceeds, together with a loan, will be used for purchasing
a
site and constructing, furnishing and equipping a
will be

rected

modern hotel of not less than 230 rooms.

It is estimated

the total cost will be $1,600,000.

ferred and convertible stocks will be offered in units of

June 24, filed 30,000 shares ($50 par) 4%% cumulative
convertible preferred stock and 80,000 shares ($1 par)
common

Nashua, N. H.

July 15 filed 200,000 shares ($25 par) $1.20 cumulative
pfd. stock, 100,000 shares of ($1 par) convertible stock
and 650,000 shares ($1 par) common stock. Underwriters
—Blair & Co., Inc., Reynolds & Co., New York and Max¬
well, Marshall & Co., Los Angeles. Offering—The pre¬

lative

Co.t and pillon, ;Rea d; Si Co.( : Proceeds—

Part of the shares are to be. sold by Middle West Corpy
top holding company of the System, and part by pref¬

- erence

part to the public and the; balance to; certain " dealers,*
among whom any underwriter may be included, at the
public offering price, less certain concessions. Price by
amendment.
Proceeds—It is presently anticipated that

tive

Pierce^ J,enner,; &: Beane;; 3Yhite,-: Weld
Co.;: Glore;v
Forgab:■>&;Coy;arid^HarrimmiiRipteyS& Goils(jointly)#;
The Wisconsin

$437,500 will be used to acquire the capital stock of Wil¬
liams, Stores, Inc., and Levitt Millinery Co. The. bal¬
ance
will be applied to general corporate purposes.
Issue temporarily postponed.

Dividend rate; by. auiendment.

($100 ;par).

Virginia Dare Stores Corp,, New-York

-•

July 29, E. E. Slick, C. W. Carlson; a J^ Halberg- and,
R. L. Warren, as voting trustees, registered .voting trust
certificates for 120,000 shares of common capital stock
($1 par), r Voting trust agreement is dated June 15, 1946,
and is for. maximum period of five years, J>uV may be
renewed by RFC Corporation's successor in interest, or
by board ofdirectors ofcorporation: YvYYX v4i.4:j
-,

certain employees at $7.50 ;a share,

willbe offered to

• ^United

Sherck, Richter & Co., and Straus & Blosser. S Offering—
Of thev total, -200,000;; shares v will be - sold through; the'
underwriting -• group; at- $8,50 a share>ipnd. 3,5,00 shares ;

May 21'filed 550,000 shares ($10 par) common stock to
be sold at,.competitive
biddingi :Undemritersh--By*
amendment.5:; Probable bidders include: Merrill Lynch,

one

Of¬

Price—By amendment.
Proceeds^Company will use $950,000 of net proceeds to
retire long term bank loans; $750,000 to retire short term
loans; about $400,000 for machinery and equipment; any
remaining to working capital.
Business—Manufacture
of automobile leaf springs, bumpers, and fender guards.

other

Upper Michigan Power & Light Co., Escanaba,

\gV444
5,500 shares of 4%% first

preferredstock series ;Bf($504psu,)g -QHeri^

changed to Nashua

Manufacturing Co, prior to

effective date of registration) was incorporated June 27,
1946 to acquire the operating properties and certain

fering—To be offered publicly.

YgyyMich. •••;..
July 18 (letter pf notification)

Yonkers Electric

share of preferred and one-half share of convertible.

•

assets

Nashua

Manufacturing Co. which was
incorporated in 1823. The new company was organized
at the instance of Textron, Inc., and is wholly-owned
subsidiary, Textron Mills,,Inc., which are promoters of
the new company. Net proceeds, together with $2,300,000
representing the proceeds from the sale of 50,000 shares
of convertible stock to the underwriters and 525,000
shares of convertible stock to Textron, Inc., at $4 a share,
will be used as follows:
approximately $13,000,000 for

Light & Power Co., Mt.

Vernon, N. Y.

Price by amendment. Proceeds—Weetamoe Corp. (Name

June 28, 1946 filed $9,000,000 of debentures, due 1976.
Underwriters—To be determined by competitive bid¬

ding. Probable bidders include Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; Lehman Bros., Harriman
Ripley & Co., and Union Securities Corp. (jointly); Blyth
& Co., Inc.; Shields & Co., and White, Weld & Co. (joint¬
ly); W. C. Langley & Co.; Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly). Proceeds
—Refunding. Bids invited—company will receive bids for
the purchase of the debentures at room 164.2, 4 Irving
Place, New York City up to 11 a.m. EDST, Aug. 6, the
coupon rate to be specified in the bids.

Prospective Security Offerings

fcSSKf

(NOT YET IN REGISTRATION)
jm#

•

Air Commuting, Inc.

July 16 possibility of
Civil

same

Aeronautical Board

•

financing seen; If the
approves recommendations
new

made by two of its examiners of company's plan to es¬
tablish an extensive airplane commuting service radiat¬

ing Over the New York City, metropolitan
chester County, New

INDICATES ADDITIONS SINCE PREVIOUS ISSUE

Jersey, Staten Island, Long Island

and Connecticut.

Co.

to be issuable in series.

April 10

(name to be changed to Minneapolis

company

Gas Co.), under modified plan approved by SEC, reserves

right to make public offering of not in

American Bosch Corp.

shares of

April 16 reported that Alien Property Custodian, may
shortly ask for bids on 535,000 shares (77.24%) of the
stork of the corporation. ^ Probable bidders include
Glore^^^ Pdi,gah;& Cdv^ahd^Iiehmah Brother^1 (jointly),
and Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner
& Beane (jointly).
*

Americatn Brake Shoe Co., New York

July 18

is planning to offer 199,101 additional
shares of common stock about Sept. 20.
Proceeds from
company

this issue

to be used

are

.pany's plant expansion
are

principally to finance the
program.

com-

per! share
four

held.

determination

The

proposed record

common

stockholders

date

entitled

for

the

re¬

ceive rights is

Sept 11 and they will have approximately

30 days from

Sept. 20 in which to exercise their sub¬

scription rights.

nance an

tSr build

{tm

$275,000 bond issue to fi¬

expansion" program at the Tiffin, O.,

a new one

and

Government,

State, Municipal

pl^nt

in Tyler, Tex.

United States

American Progressive

Health Insur. Co., N. Y.
July 10 (letter of notification) expected to be filed at
early date for 60,000 shares ^of convertible preferred
stock, with B. G. Cantor & Co. as underwriter.
Arkansas Power & Light Co., Little Rock, Ark.
30 reported company planned to issue 290,000
shares common stock (par $12.50) and $5,000,000 in
March

promissory notes, for

purpose

ton

and

position to fund bank loans, add to working capital

Probable

June 22 it was reported that one effect of the railroad
freight rate adjustment is expected to be a stimulation
of bond refundings. Among the roads whose refinancing
programs may then crystallize, the Baltimore & Ohio is
named as a leading prospect, now that all barriers to
the consummation of its $500,000,000 debt adjustment

plan have been eliminated. Other portions of the debt
now thought to be attractive possibilities for a refinanc¬
ing operation besides the $76,900,000 of first mortgage
4s and the $67,800,000 first mortgage 5s.
There are
$37,200,000 of Southwestern Division 5% bonds, $36,800,000 Pittsburgh, Lake Erie & Western 4s, and $10,000,000
Toledo-Cincinnati Division mortgage series A 4s.
Prob¬
able bidders, if refunding operations crystallize, are
Kuhn, Loeb & Co., and Halsey, Stuart & Co. Inc.

of paying current promis¬

notes and finance expansion program.
Probable
bidders include Dillon, Read & Co. Inc.; The First Bos¬

Corp., and Blyth & Co., Inc.

Atlantic City Electric Co.
July 9 the offering of 1,150,000 shares of common stock
(now owned by American Gas & Electric Co., parent)
seems probable in the
fall, in compliance with the Utility
Holding Company Act. Probable bidders include Mellon
Securities Corp.; The First Boston Corp.; Blyth & Co.,
Inc.; Harriman, Ripley & Co.

Atlantic Refining Co., Philadelphia

American Clay Forging Co.

July 14 stockholders voted

of 874,078

stock at $35

common

the basis of one additional share for each

excess

Probable bidders include

stock.

White, Weld & Co., W. C. Langley & Co., Otis & Co.

sory

Unless present plans

changed common stockholders will be entitled to

subscribe for additional shares of

new common

and to provide funds for capital expenditures.
underwriters include Smith, Barney & Co.
Baltimore & Ohio RR.

American Gas & Power Co.

of West¬

area

American Colortype

Sept. 9 stockholders will vote on authorizing new issue of
40,000 shares of cumulative preferred stock (par $100),

May 7 stockholders approved proposal .to Increase the
company's indebtedness from time to time by additional
amounts not in excess of $50,000,000 in aggregate. The
purpose of the plan, it was said, is to place the company

First California Company
INCORPORATED

Bangor & Aroostook RR., Bangor, Me.
April 16 stockholders authorized new mortgage.
Com¬
pany contemplates refinancing one-third of outstanding
funded debt (Dec. 31, 1945, $12,665,000) through sale of
equal amount of bonds under new mortgage, through
competitive bidding.
Probable bidders include Harri¬
man, Ripley & Co.,
Inc.; Lee Higginson Corp., and
Halsey, Stuart & Co. Inc.
Boston

Store,

Chicago

July 15 ownership of the Boston Store changed hands?
formally when a syndicate headed by Edgar L. Schnadig,
Chicago, purchased all of the capital stock of the operat¬
ing company, the Boston Store of Chicago, Inc., and cer¬
tain real estate rights for $14,000,000.
Funds for the
purchase, in addition to the syndicate's own money,
were furnished by a secured loan of $3,500,000 from
Penn Mutual Life Insurance Co,, a long term loan of $1,500,000 from the First National Bank, Chicago, and $5,000,000 in a short-term loan from the Union Securities
Co., New York. To retire the short term loan the com¬
pany, it is said will issue preferred and common shares
to be sold publicly through a syndicate headed by Paul
H. Davis & Co., Chicago and Stroud & Co., Philadelphia.

■

>><j:

Corporate Securities

Bridgeport (Conn.) Brass Co.

Underwriters and Distributors

Blair

Go.

Our Sixteen
Serve

NEW YORK
BOSTON

/BUFFALO

PHILADELPHIA

CHICAGO

PITTSBURGH

CLEVELAND
:

ST. LOUIS'

April 23 stockholders voted to issue an- additional 450,000
shares of common stock when and if new capital is
needed.

Offices

Probable

California and Nevada

-4/ IV f'l

Hincks Bro. & ; Co.;
& Weeks.

Carolina, Clinchfield & Ohlo Ry.
X ; ^
/
was reported that a refunding of the $21,400,000 first mortgage 4% series A bonds of 1965 is seen
as a possibility.
Probable bidders Include. Kidder, Peabody & Co.; Halsey,, Stuart & Co. Inc. .. v v
4*
June 26 it

Head Office: §ait Francisco

underwriters,

Stone & Webster Securities Corp.; Hornblower

•

hi-^£;i,:y'iii',i "h>

fi>.;ivw-K(.i»-a!••■»■«-«'< »■*,••.-:

Number' 4512

Number 1.64
4i

new

common

shares. Pres¬

ent

butstahding eapitah^corifeists; of 284,710 shares of $6
preferred stock and 260,343 common shares,; of which
Middle West

owns 38,564 preferred and 193,321 common
Shares. Central Illinois proposes to issue initially 150,000

preferred shares," which it will offer in exchange to
present public preferred stockholders; shale; for share
plus a cash, adjustment. If more than 150,000 old shares
are deposited the new Issue will be allocated. Price of
the new stock is to be set at competitive bidding. Prob¬
able bidders include Dillon, Read & Co* Inc.; Smith,
Barney & Co., White, Weld & Co.; Glore, Forgan & Co.
Any undeposited $6 shares will be paid off at the re¬
demption price of $110 a share and accrued dividends.;
For its holdings of 38,564 present preferred shares, Mid¬
dle West will be fdyeh in exchange 173,953 additional
common shares. Funds required to reduced the amount
of preferred will be obtained from sale of 195,299 com¬
mon shares to Halsey, Stuart & Co. Inc., and of 389,376
new

Middle

West

Corp. They now own
67,022 and 193,321 shares, respectively, of the $40 par
currently outstanding. Sale price of the addi¬
tional common is set at $24.39 a share.
common

common

Southwest Corp.

Pursuant to plan of Central & South West Utilities Co,
and American Public Service Co. approved by the SEC
a

sufficient number of shares

of Central &

Southwest

Corp., the new company, would be sold at competitive
bidding to provide funds, not otherwise supplied, to
retire
outstanding preferred stocks of Central "and
American.
Possible bidders:
Glore, Forgan & Co.;
Lehman Brothers-Lazard Freres & Co. (jointly); Smith,
Barney & Co.-Harriman, Ripley & Co. (jointly); Blyth
& Co., Inc.; Stone & Webster Securities Corp. and First
Boston Corp. (jointly).
Century Manufacturing & Instrument Co.
May 29 reported Estes, Snyder & Co., may underwrite
offering of common stock following merger of Century
and Continental Geophysical Service Co.

June 18 reported that probably one of the early devel¬
opments when and if the merger of Chesapeake & Ohio

Ry. and the Pere Marquetle Ry. is approved will be
refunding operation to take in the debt of both roads.
C. & O., it is expected, will take steps to refinance the
refunding and improvement 3V2S, due in 1996, of which
$37,500,000 series D and $27,600,000 series E were out¬
standing at the close of 1945. The Pere Marquette has
outstanding $59,749,000 first mortgage 3%s, series D,
due in 1980. At the ICC hearings in April on the merger
proposal, W. H. Wenneman stated that refinancing of
a

the Pere Marquette issue would be undertaken promptly

following consummation of the merger.

Chesapeake & Ohio Ry.

Company is advertising for bids to be considered 12
(EST) Aug. 13, at 3400 Terminal Tower, Cleveland
for $1,750,000 of new equipment trust certificated. The
certificates, dated Aug. 1, 1946, and maturing in equal
annual instalments from August 1, 1947, to Aug. 1, 1956,
will be secured by new equipment with an estimated cost
of $2,246,049. Probable bidders include Salomon Bros. &
Hutzler; Halsey, Stuart & Co. Inc.; Harris Hall & Co.
(Inc.).
noon

Chicago Milwaukee St. Paul & Pacific RR.
lower-coupon first
mortgage bonds, proceeds from the sale of which would
be used to redeem first mortgage 4%" bonds, 1994,
is expected to be postponed until late this year. Earlier
Issuance by the road of $58,900,000

plans

were

for

the

retirement

the

bonds

July 1.

the'merger equals the humber of Federal common shares
outstanding.. Public offering of stock expected. * Prob-r
able bidders include E. H. Rollins & Sons;
Rauscher,
Pierce & Co., Inc. Blyth & Co.* Inc.; The First Boston
Corp,; .Otis & Co., and Harriman Ripley & Co,

company

Feltman & Curme Shoe Stores, Inc.
V'S.
July 17, the merger of the Utah subsidiary of Feltman & Curme Shoe Stores, Inc., into the parent comT
pany has been, approved, by stockholders, at a special
meeting in Chicago. Holders also voted to replace .the
company's $7 cumulative preferred stock, of which 13,465
shares are outstanding, with a new 5% ($50 par) cumula¬

$90,000,000.

After issuing the first series the company
call its; $179,240,000 of callable mortgage
bonds and obtain discharge of mortgages covering $15,.869,000 of nonmailable bonds.
In another part of; the
plan the company proposes to refinance the outstanding

tive preferred issue.:

Preferred holders will receive one
share of the new stock plus five shares of common foT

2,188,890 shares of $5 cumulative preferred, stock. Probf
able bidders include Morgan Stanley & Co.; Halsey,
Stuart & Co. Inc. (bonds only), and Blyth & Co., Inc.

each

preferred share. All common stock of the sub¬
sidiary, wholly owned by thej parent firm, will be
canceled.
••.

Consumers Power Co., Jackson, Mich.
Jline 18 company requested the SEC to approve the
disposal of a sufficient number of common shares at

competition for any new offering, viz.: Kuhn, Loeb &
Co.; Mellon Securities Corp., and Halsey, Stuart & Co.,
•;
Cities

Service

Co.y

New

■

York

July 17 it is suggested that when and if the outstand¬
ing debt is retired through proceeds of its utility equities,
that preferred stockholders might be offered a new 4%
preferred in exchange for the old issues, in the amount
of call prices plus arrears (approximately $113,486,250).

July 24

is negotiating with investment bankers
relative to the sale of a new long-term first mortgage
bond issue, with which to retire $4,200,000 bank loan
Obtained to retire the 5%% bonds of 1948, called for re-

;

demption Sept. 1, 1946.'

■;
■

;

company

Columbia Gas & Electric Corp.

July 29 company asked the Securities and Exchange
Commission for permission to sell an issue, of debentures
at Competitive bidding and to use' the proceeds, plus
proceeds! from the proposed sale of its Cincinnati Gas &
Electric Co. common holdings, to redeem its bank notes
and preferred and preference stocks. The amount of
debentures to be sold will be determined when the
pro¬
ceeds from the Cincinnati sale are known,. The
corpora¬

tion told the Commission it plans, to complete the sale
of the debentures, in time to. issue on or-before Sept. 16,
the 60 days' notice for the redemption of preferred stocks

bii Nov. 15,1946.

Prbbable bidders for the. debentures inGlore; Forgan & Co.; W,:E. Hutton &~Cb. and
Halsey, Stuart & Co. Inc.

♦clude

„

•

?..

■

7-v*)'

•

I--#;'S4

y/•*:'•;• ••

stockholder pro rata at $40 per share,

,The U. S>.

Fidelit^( & Guaranty Cp. (parent) has "annbuhced that
it will /exercise

its right to subscribe to the stock to
which it is entitled and has agreed to purchase at $40

Consumers, a subsidiary of the Commonwealth &
Corp., also proposes to increase the common

Southern

per

from

2,000,000 to 6,000,000 shares and to issue 3,623,432
shares to its parent for the 1,811,716 now
held by
Commonwealth. Hearing before the SEC is
scheduled for Aug. 14."

share any new stock not subscribed for by stock¬

holders.

common

Foster & Kleiser

Continental Foundry & Machine Co., Chicago
20
stockholders
voted to
create
a
new
issue
of 5% convertible preferred stock which will be offered
in exchange on a share-for-share basis for 7% preferred

All the 7% stock which is not exchanged will be

redeemed

July 1 at $105.

Each share of

will be convertible into two and

stock

new

half shares

July 29 stockholders will vote on proposed changes in
the capital setup;
Plans are fornew class bf convert¬
ible preferred stock, an increase in common and retirer
ment of the* outstanding 38,580 shares of class A pre¬
ferred.
The Company would raise $2,500,000 by sale? of
100,000 new convertible preferred ($25 par) sharesiiln
be used in retiring the class A and for business oper¬

June

stock.

ations.

com¬

'":f| # U

;

mon.

Fresh Dry Foods I nc.,.

May 29 reported
000

1 it was reported that The First Boston Corp.
may underwrite the offering of preferred and common
shares in September.
.

Crown Drug Co.

shares of

common

is considering

General Telephone Corp., New York
April 17 stockholders approved amendment to certifi¬
cate of incorporation modifying restrictions against In¬
curring debt for capital purposes without specific stock¬
holders' approval.
Stockholders also approved amend¬
ment to authorize 175,000 additional preferred shares.
Probable bidders include Paine, Webber, Jackson &

plan to retire the 24,328
($25 par) preferred stock.

company

shares of 7%

Columbia, 8, C.

registration statement covering 650,stock (par $1). Expected tpibe
filed at an early date with Newkirk & Co., New York, hS
principal underwriters. Public offering price about $3
per share.

Crawford Clothes, Inc., New York

July

Detroit Edison Co., Detroit, Mich.
19 committee of directors formed

March

consider

refinancing of $65,000,000 3%s and 4s. Probable bidders
include: Mellon Securities Corp., First Boston Gorp.,
Dillon, Read & Co. Inc., Coffin & Burr, Halsey, Stuart
& Co., Inc., and Spencer Trask & Co.

Curtis.

:;;y

Goldring Merchandising Co.
•

Ekco

Sept. 6

Products Co.

stockholders

M$y 28 reported prospective financing; being discussed

will

consider

wRh Merrill Lynch, Pierce, Fenner & Be3ne, as under*-

plan to create a
issue of $7,500,000 preferred stock and to increase

new

authorized

common

writers.
•«...

stock from 750,000 to

1,500,000 shares
permit a two-for-one split of outstanding common
stock. It is proposed to offer publicly $6,000,000 of new
convertible preferred and 40,000 new common shares.
Union Securities Corp. is expected to head the under¬
writing group. Part of the proceeds from the financing
will be used to retire *tVz% preferred stock at $110 a
share, and the remainder will be added to general funds
to replace amounts spent for new plants and equipment.

•

Canada

Columbia

Mine

•

...

-yi

•

;

•

{|gl1

Grand Union Co.

May 23 reported directors giving careful consideration
to a splitup of common shares and issuance of additfsnal
new stock, but it is likely that no action will, be taken

Co.

before September.

The management, it is said, is

now

making an exhaustive budget study to determine what
additional capital will be needed to finance an expansion

program.

Gulf States Utilities Co.

sell the stock and of A. O.
as a

:•

Foods, Inc., Atlanta, Ga»v

July 29 reported company plans the sale of 20,000
shares of convertible preferred stock and' 100,000 shares
of common stock, with R. H. Johnson & Co. and Alien
& Co. as underwriters.

July 16 the Massachusetts Department of Public Utilities
took under advisement, following a hearing, the petition
of company which seeks permission to sell in Massa¬
chusetts 50,000 shares of capital stock at $1 a share.;; The
Department also took under advisement the company's
application for registration as a broker corporation to

dent, for registration

v Gordon

Alden, the company's Presi¬
salesman for the mining con¬

May 24 in connection with plan of dissolution of Engin¬
eers Public Service Co. part one of the plan calls for

cern.

reclassification

Empire District Electric Co., Joplin, Mo.
May 3 company filed application with the Arkansas P. S.
Commission for authority to issue $2,000,000 2% % first
mortgage bonds due in 1976. Proceeds would be used for
additions and improvements to the company's
properties
in Missouri, Arkansas, Kansas and Oklahoma. Probable

their

common

stocks of

two

subsidiaries,

Gulf States Utilities Co. and El Paso Electric Co., and for
The

{

/1 V'i •; -i'; f v"

;

.T: ■'

V" r •'

•

Expreso Aereo

Inter-Americano,

S. A.

company announced agreement to

acquire con¬
Stockholders will vote Aug.
increasing authorized common from 1,000,000 shares
to 2,000,000 shares (par $1). Probable
public offering of
over 300,000
shares with Hallgarten & Co. and G. H.
trol of two Cuban Airlines.

Walker & Co., as underwriters. :■$;

Engineers

common

stockholders.

Utilities stock would be distributed

(A.)

& Son, Inc., Newark, N. J.

Stockholders will vote sometime in August on

stock 2-for-l

common

and

authorizing

splitting
issue of

$1,500,000 convertible preferred stock. Probable under¬
writer, Merrill Lynch, Pierce, Fenner & Beane. 'y*
•

contemplates the issuance of 300,000 shares of common
stock, with Hemphill, Noyes &' Co. as underwriters.

July 27

States

Hollander

Engineering & Research Corp.

Gulf

through issuance of rights.

bidders include The First Boston Corp.;
Halsey, Stuart
& Co.. Inc.; Shields & Co. and Lehman Brothers.
-:

distribution

" I

;

Federal Light & Traction Co.

Illinois Power Co.,

Decatur, III.

July 2 company has filed a recapitalization plan with SEC
pursuant to Section (11) E of the Utility Holding Com¬
pany Act.
The plan differs in one essential from the
financing application filed with the Commission last
April. It calls for complete cancellation of the interest
held in the company by its statutory parents, North
American Co. and North American Light & Power Co^
These holdings

comprise stock, dividend arrears

certifi-j.

cates, Central Terminal Co. notes and warrants; to pur-;
chase an additional 300,000 Illinois Power common shares;*
The plan follows the financing application in providing
for issuance of $10,000,000 of new preferred stock to raise

An application proposing the
merger of four New Mex¬
ico subsidiaries of Federal has been filed with the SEC.
Under the plan, New- Mexico Power Co., Las Vegas

ferred

Light & Power Co. and Deming Ice & Electric Co., would

version into

-be .merged into Albuquerque Gas & Electric Co.
Albu¬
querque's name would be! changed to Public Service Co.
of New Mexico, The merged company; would have 524,

funds for

paying off the $11,596,680 of dividend arrears
certificates and in calling the existing $24,175,000 pre-«
stock for redemption in order to force its con¬
common

basis of two shares for one;

An underwriting will be arranged

for the conversion iii

order to sell the amount of. common stock needed to pay
off the preferred not tendered for conversion. Probable

903..shares, .($7 par), common stock, all held.by. Federal,

underwriters include

which

Beane; Otis & Co., and the First Boston Corp.
(Continued on page 658)

aries.

now

owns

all

the

The number of

common

stock of the subsidi¬

shares resulting from

■

Merrill Lynch,

■'#

Fidelity & Guaranty Fire Corp., Baltimore

competitive bidding to raise $20,000,000.
Probable bid¬
ders include Morgan Stanley & Co.; Lehman Brothers;
Shields & Co.; Harriman Ripley & Co., and Mellon Se¬
curities Corp.
*

June 14 reported company, manufacturer of air
coupes,

Citizens Utilities Co.

•

July 26 stockholders voted to increase the authorized
capital stock from 100,000 shares to 200,000 shares (pag
$10). The new stock will be offered for subscription

Three investment banking groups were set up to enter

inc.

hl%
657

would then

July 8

Chesapeake & Ohio Ry.

•

Vwap,^*

new

Central

SMaJjfe. *|fc»«•»oww

Co. of; NeW York,: Inc.#; >
formally, submitted to the New York
Public Service Commission its plan to issue $290,000,000
of new mortgage bonds as part of, a .plan to redeem
$304,240,000 of callable mortgage bonds' and debentures
tuid $15,869,000" of non-callable mortgage bonds i due in
1948 and 1949—a total of $320,109,000 of long-term debt.
The $290,000,000 of new mortgage bonds would- be sold
by bidding in three separate issues in rapid succession,
the first two to be $100,000,000 each and the third for

July 3

preferred

stock, and; split the existing, common on ;a; four .for "one
basis. Funds for'reducing' the preferred are" to be ob«
tained from sale of additional

«*•"-••

Consolidated Edison

July 30 company, (subsidiary of Middle West Corp.) filed
a recapitalization plan with the SEC, the chief purposes
of which are to scale down and refund- the

>•iV.w;.-*vi>VH•»<•

TH^jPQ^MERClA^;& FINAWQXAL ^HRO

IfVf,.

Central Illinois: Public Service Co.

.»•

Pierce, Fenner &

THE COMMERCIAL & FINANCIAL CHRONICLE

'658

(Continued from page 657):

Stuart & Co. Inc.

;-V '*■.

International Dress to.
v.;.^
rep6rtei tRa|c6mpany Is
w

June 26 It was

some

hew financing.

Oti^ 8c Co. reported a$ probable tinder*

writer.

(Del.),^.

Interstate Power Co.

••

May 21 pursdaht to ;ahifende%£ian;&
pany proposes to sell through competitive biddings $20,?
000,000. new first mortgage bonds and sUch number.pt
3,000,000 common shares as may. be .necessary to,-enable
the company to carry out the provisions of the amended
plan. Probable bidders include the First Boston Corp.; >
Halsey, Stuart& Co. Inc. (bonds only); Dillon, Read &
Co. Inc. (stock only),
Brothers

Johansen

•

f»hoe Co.r Inc.

Sept: 11 stockholders will Vpte.pn authprizing. issiiance
and sale of $350,000 3%% 10-year sinking fund deben?

proceeds to be ..used to. finance
capital stock of Valley Shoe Corp. of St.

tUres,

acquisition of
Louis,

Kansas

fcity

Power

Ligiifc

C6.

future

July 9 it was reported that company may in near
refund its outstanding $38,000,000 bonds and 40,000

with securities. carrying lower coupon
and dividend rates.
Probable bidders, include Halsey,
Stuart & Co, inc. (bonds only); The First Boston Corp:;
Mellon Securities Corp.; Harrimaii, Ripley & Co.
of preferred stock,

May, 31 reported company

pbpafeiy.Vill feplace out¬

bonds and pref erred stock with hew lower cost
Probable bidders if securities are sold^ in¬
Stuart & CO., Inc. (bonds only) ; The First
Corp.; Blyth-& Co., Inc.; Kidder Peabody & Co.;

standing

securities.

clude Halsey,

| Boston

posed transactions are steps m a general program 01
Traction Co., the parent company, to
comblibnce \frith the Holding :Company>Act's; proVisions, which will ultimately result irj the liquidation
of that coiPpariy aiid the distribution 6f ita assets.
,

y'-? lndianapolis(lnd.) Power & Ug^it,Co«v .
Af>ril 24
r^port^d that company. probably ..will
replace its $32,000,000 first 3%s due May 1; .1970, with
Pew lower-cost. Securities.
Probable underwriters in¬
clude Lehman- Brothers; Blyth & Co., Inc., and Halsey,

Harris Hall & Co. (Inc.).

American Light &

effect

Montreal, City.of

called for today <Aug. 1). Approval,Wiit:be s66ght
forta^by^dW-pmvid^
^108,000,000 Of the city's $202,000,006 debt. Oi me pevir
bonds, about $60,000,000 wiU be payable in Canadian
fimds.arid Only $48,000,000111,11- S. cunrency. >Probable
tmderwriterk of U:S^Curreric^ibohdsinclude .Harrinian
Ripley & Co., Inc.; The First Boston Corp., and Smith,
Barney & Co.
'
1

National Gas & Electric Corp., JNew IfnrR,
OTUne, 11 cbmpariy filed. With. SEC n Vbluritai^y, plan ,.pjf
simplification aria jrecapitaiimtioh calling for retirement
Of the company's entire funded indebtedness through a
Series of financing operations.
The plan provides, initi-

Ohio

Aug- 9 stockholders will consider an increase, in.cornmon
and the issuance of a, new preferred issue, the
latter .to corislst of 125,006 shares; to pe Subordinate to
the present, 4
v preferred,.. probable
uhderwrite^s,
.

ne\^r preferred issiied, Lehhian

if- any

Brothers, and The

^Wisconsin CO."

i§lff Koppi^-lllelciiieri,

Ind. '.
iixeppried company -Svtii'

July

128,697 common shares at,$l,/a share.
Stock¬
holders will have the right to purchase three share's for
^

Aug.

$2,100,000 secured bank loan, arid, thq repay¬
bank loari With furids to be rieceived by

Power

Co*

^mpariy^proposes,to >etir^;rimreht lurided debt ($11^
640j683) arid tb issue hp tb $10,OOQ,6o6 ribw^briftd^ bpi
originally to $6,000,000,, Probable, bidders In¬
clude

White, Weld & Co.; Blyth 8s Co.; Inc., and First

Savoy Oil Co., Tulsa,

;

July I stockholders increased authorized Commbri ft6t&
150,000. shares (par $5) to 300,000 shares (par 25c).
Shareholders will teceive rights tp subscribe to 100,066
shares at not less than $2.50 a share.
Remaining shares
will be

optioned to directors at
" '*•.

;•

price.

same

•

Southern Co., New York
•
The Southern Cd'.;-Xto~! h'i| :iu6^sipY
•

to vConimpriWeMlb

Southern

Corp.) proposes to sell for cash (when
Commonwealth's recapitalization plan becomes effec¬
tive) sufficient
be

common

stock to realize $10,000,000, to
Co.'s subsidiaries arid1 new

construction.

the refunding of the bonds
wholly-owned subsidiaries—National Utilities Co.
pf Michigan, and Industrial Gas Corp. of Ohio. The new
of its

preferred stocks
with

SEC

stockholders

&-J4ght Cbrp^

Electric

Power

Service Inc.

Brothers, Jnc.

ipxeconjmend to stockholders an increase iri the quthorized capital shares from 400,000, Of Which 206,000 are
now
outstanding, to 2,000,000, paving the way foif a
3-for-l split-up. The rest of the unissued common stock
lyould be used foi^
putpbsesL A |pecial; meeting

said, necessitate

stockholders will be held about Sept. 1.

Newburgh Steel Co..

.,,frt

Sun

long-term loan of $2,500,000.

Chelhical'pb.,

rrjM

June 18 reported that company plans early registration
of, $4,275,0,00 20-year sinking fund debentures and ,$1»,200,000 preferred stock, with Shield^ & Co. as under¬

}

Stetson (John B.) Co., Philadelphia 4a

July 5 company, was. reported negotiating for the pur¬
chase of Mallory Hat Co.
This transaction and other
phases of the company's .exparisiOn program .will,1 it is

JElecjtpic Rpwer

common

retirement

Light Corp., would be given rights to subscribe to United
Gas Corp. common stock and stock^pf the new holding
company Southern Electric System, Inc. The latter com¬
pany would be formed to, hold the stocks of Arkansas
Power & Light Co., Louisiana Power & Light Co* .Mis¬
sissippi Power & Light Co., and New Orleans Public

July 30, in addition to the declaration -Of, jan increased
dividend on the common stock, directors voted July 30

common

„

freisner

Southern

„

est through -an investment group consisting Of t Battles
& Co., Inc., Philadelphia; G. H, Walker & Co. of Providence, R. I., and Smith, Landeryou & Co.jr Omaha, Neb.
Under the plan, National Gas & Electric also would
dispose of its holdings in Northern Indiana Fuel &
Light Co.
.

invested

Southern Electric System, !nc#
•
May 10. pursuant to substitute plan for

£960,000 first mortgage, 3% bonds of the Michigan sub|idiary Would be

July 16 imported ^ pbriipany
30,000 shares of 6% preferred stock arid 30,000 shares
of common, with O'Connell & Janareli 6s probable un¬

writers.

derwriters.

August, 1 stbc^hbiders.tyiil voff oHappri^hg M )nc3|ase

Textron, Inc.

...

-f.

In the authorized common stock from

1Mm M

f,T0O,OO0 fo 4,600j-

pOO shares, splxt. the rcoipiribn bri a twp-fbr?one basis; .gnd
reduce the authorized convertible preferred stock

i
Probable bidders include Halsey, Stuart & Co. Inc.; and
Salomon Bros. & Hutzler.

company

has under consideration

29. "stockholder^

firbm

500,000 to the 200,000 Shares now 'outstanding. Directors
also would be empowered
^ seJI veriMripp stocl^lor^ca^t
services or property, at their discretiori. Probable un¬
derwriter, Blair & Coi
^
'

used.jo; help, pay for foipr diesel-c)ecjric,ireight
jQCoiriPtives: anp 23^;dieseJ-elecfric sw)tchingdqconiptives.

April 17 reported that

orized capital shares tP.

Electric

limited

Tol«do

Copper

Portland

Service Commission to simplify its financial structure,
hicluding reduction in interest and S.inkirig luftdi Chapgeg.

25 owned as of June 27.

every

IjyfiSu. J;

j.stti:,

^I'lfliagnia

owned

April 19:^ thdr feoihpariy petitioried ; the^^ M

wijl be

holders

(now

parent) may bet publicly offered Jaterjthi? year, in epmi
plianc.e with ;tpe Utility Holding Company Act. Prob¬
able bidders include Blyth ;&
Co.y Inc. v
" V i

the corporation as a result of

July li it'...v(rS's'' ktatedvfchat' t6t •
$50,000,600
bond issue to be floated by the Netherlands Government
in the American market byvh ^ypdicate ol,, investment
banking houses headed by Kuhn, Loeb & Pp. will carry
an interest .rate of 3
and will run, 25 years. Although
it was intended to file the issue with the SEC thp{ week
of July 19, the filing has been delayed due to Unsettled
market conditions*. -;'o.

•ktecfr.icJ;co^;; 1,
stateHithat -j the, 236,81$, "sliAr^s ^pf;^^:ComS^' •

ment of this

Kingdomi &f the Netherlands

(

aily, fojr redemptioit of thp presently butstahdirig, 5%
|irs| lien collateral trust bonds by, udng the, proceeds

$
Kimberly-Clark Corp.,. Neenah,

.r.

vr;

a new

sold competitively with Morgan
Stanley & Co.; Halsey,
Stuart & Co. Iric.| Blyth 3c Ca.v Ihc., as prbbable bidder^.

Boston Corp.''/v.'-v.;

Ha«onai

May 23 it was reported that company may refund its
outstanding $4,300,000,5^4debehture$ due, 1959;,late): this
year with new lower-cost securities.
Probable under¬
writers Van Alstyne, Noel & Co.

Bcb^«resware^tp ^ m

gpmmpri^strickhrildeis, prqj:ata;M:

Stock

The cityMMohtrbhi'spia^
its: 6Utstahdin|
Obligations .with new 16wer-cdst securities will come up
lor consideration ;at a special meeting ol the City Couiir

Thursday, August 1,1946

(OhI6)

Edisort Co. ;.

an early date for this company tp be
by sale at competitive bidding of th£-C6in:rrioii stock now held by Cities Service Power & Light Cd.

contemplated at
followed later

1,200,000 from 410,000, The addi¬

790,OOd shares; if adthPrlzem, will, be offered/later
ah<l.'ambihit$,.to;he detemined by, directors.
The^pUrpOsd of the;firiancirir istoFfovi<te
inent and. equipment of. the company's"' large low-grade
tional

Tucker

at prices

San Manuel copper ore

body; in Arizona..

,i'\ fftriftrii iSatt&lttfc jstfifc; tuitor.
jTifly 21 • stockholders fiave
shares

common

,Vo|6(i issuance of i50,tk)0

stock, on which rights have be£h

at $2
•

k share.

was

not made/public

Electric Co.

sells

holding of common stock

Union

(in

Pacific^

•

-A.

•

Corp.
•
j - ■June 7 directors autho.ri?edvtheimanagement.tq prepare
plans for refunding the corporation's 200,OQO shares (no-

add Mellon Securities Corp:

prir) curiiulktiye $.5 dividend preferred, Blyth & Co. will
probably be underwriters.

Milwaukee Gad Light Co.

PaciRc

July; 18 SEC will hold Hearing Oil. the pirOpbsal to change

Teleiphbne &.Telegraph

California: Railroad Colri$75,000,000.40-year deberitutes and to sell 328,125 shares (par $100) common stock,
the latter to' be bffered for subscription td preferred arid

July 25

company applied .to
iriission for authority to issue

from a par

value of $50 a share to $12 a share.and increase.the
number.of authorized common shajres from 260,000. to
>

Pacific

RR.
.

was

probable
Kuhri, Loeb & Co., and Halsey, Stuart

company decides to refund through new issue

ac¬

Lighting

reported officials arb considering thp ques¬
tion of meeting the $100,000,000 first mortgage railroad
and land grant 4's due July
1947. However it
felt
maturity date is too far away to determine now whether
issue will be paid off in cash or will be refunded. It
May 9 it

cordance

with SEC regulations):; to sell approximately
140,000 shares of new common stock, proceeds of which
will be used to reimburse treasury and retire bank loan
used in redeeming the 7% preferred stock.
Probable
bidders will include Merrill Lyrich, Pierce, Fenner &
Beane; The First Boston CPrp., and White, Weld & Co.

contemplates refunding its

outstanding $90,0.00,000 .3%$ rof,~197r with lower cost
obligations. ^.Possible bidders would include Dillon, Read
& Co. Inc., and Halsey, StiiPrt & Co., Inc.
r,

at'

its

Missouri

Union EleCtrid Co. of

It is rumored that company

;.i|ecfrjc.

Coi^ahy-epnte

cidie^iSe^ce

Thi?^is.prie^■Pl.the;;!^ew jt:emainijig jstePSi; prjk>li^TpPnif
plete divorcement of the Cities Service Co, from, the
utility field in compliance with the Public Utility Hold¬
ing Company Act..
>
«
*
t
,t
r)S» - *

bf the new; company,

The pro-.

house

completion of the refunding program of this, subsidiary.

Michigan-Wisconsin ftpe Line Cd.
May 3 it was reported that Michigan Consolidated Gas
Co., through the purchase of $17,000,000 in common
stock, would acquire full control of the Michigan-WisConsin Pipe Line Co:
Sale of the stock to Michigan
Consolidated would be a part Of the; initial- financing

1,150,600 shares, and incidental transactions.

The name of the iijiyestment
bqt it was stated an an¬
nouncement Pf |he Hnaricirig would be made public hi
'about eight weeks.'
4
v'
". *""
" v"f;*'*'\
rear-engine passenger car.

Rpwer & Lighl ^6# of its coriiriion Stock; hbidings of Ohio
Riiblic, Service Co..Avas prpbable. foUpwtrig. the..virtual

Xenn.

Its authorized and outstanding common stock

wy J8it was.

;

July 29 rumored the Sale pf some 100,000 shares Of cpmmori stock planned by certain stockholders, with Weil
& Co. arid Allen & Co. as probable underwriters.

which proposes to . build a $71,006,000 pipe line to bring natural gas from Texas s to
Midwest - States.
Michigan-Wisconsin's i proposal also
contemplates issuance of $6,000,000 in 2% 5-year serial
notes and of $34,000,000 in-3%% 20-year first mortgage
bonds to complete the "iriitiril financing.", The. plan has
yet to be presented to the SEC. Probable bidders of the
bonds ihcludp Dillon, Read & Co. Inc;; Glore, Forgan
White, W^ld & ^4 Ws^y, Stuart & Co. Inc:,

Chicago

,pleted; negritiatioris with, an; Investment house, id.un¬
derwrite an initial public issue p| about $20,000,000 to
finance -his venture, iritjO /the automobile filed.^wiw.ih

Ohio Public Service Co.

May HosieryMills, Nashville,

Peabody & Co.

shareholders, entitling them to buy
the rigw stock for. each_f.ive, shares Held
Proceeds for working Capital.

Corp.,

luly 11 the Securities and Exchange«Commission^ ap-

4%% bottds due 1975 knd the issuance of a new series,
of collateral trust bonds.
Prospective bidders", Morgan
Stanley & Co., Halsey, Stuart & Co. Inc;, and Kidder,

issqed to present
one,share of

PaciiFic

Ry1:, Si P^uh iMirnlff:
3^W|d^tepi6Hea''ApMv4Qfithat company hps- mjder |Jon»sideratiori the tefriridirig df $55;OOO,O00 collateral truist

N^rthdrn

bidders will be

& Co. Inc. -"
•

(Pa.)
V " ; f
has applied to', ICC for perriiission to

Union RR.

Company

"isstife

'$1,500,000 equipment certificates to .finance purchase of
500 hopper cars. Certificates would mature in-10 equal
; annual
instalments starting with Sept; 1, 1947. : prob¬
able' bidders include Halsey,' Stuart & Co. IhC,; Salomon
Bros. & Hutzler.
;•

•

• "•

;

sUmoh ..ftel|rbacL:( VSl j
-»
July 23 company, which operatCjs in Allegheny County,

■:

Pa., has asked; the Interstate Comirierce Co'mmi:sribrii frir

<'- tvf.;\ J /
> A
vlt'-l ;> !'•'•t-T'if'"
Ab^ifrr-vfa *...

•.

..„.

vVvr.0ta

Number^iM .Numb^r 45I2
■l"t~«jr-)J':,ii..':J\'X

I,l,;:-;vit'j': Z

■

X:'r',-'i

'■'

I^bable.

THE COMMERCIAL & FINANCIAL CHRONICLE

l<±:• ,vV;V>•■:• ' f-'3 *V-;* -•v'.:A*.?■

'«

■

$ Co."; Halsey, Stuart

bidders include Drexel
& Co. Inc.. <r,-;;v>,A '

tween New

Orleans;

•$• m

San Juan, Puerto Bicoand Sa%

type of securities to be used has not been definitely
determined, present indications are that it will be a com¬
bination Of stock and debentures;

Verriey Corp.» ptosbh; liAa$$j
Western Maryland Ry.
j
July ,3 the ma^geUieht
UMer edusid^rMion:-tfi&v May 22 reported
cpmpahy-workihg^
plans to refinance
simplification of the company's preferred stock and debt
$44,901,000 first mortgage 4s. Probable bidders include *
structure, ^ Nothing Melinite-.si&vtO'thetypesr<>fsecurities, Kuhn, Loeb & •
Co.» and Halsey, Stuart & Co. fnc;
that inay be issued has been reached as yet.
Under¬
•
Western Pacific RR.
writers may, include '. F. B. Mosley j & Co.; White,, Weld
& ^j ^dehburg; thaimanh Cprpi, and Lee Uigginsou •
April -11 ICC cbnditionaiiy authorized company to Issue
Corp;;;;, •' J'iClcyt^
.•* <' .'';' • •
*
■: $10,000,000 first mortgage bonds, series B, due Jan. 1, /
1 ^ Wabash
1981* proceeds to be used to refund a like amount ,01
Railway
?;■
first mortgage 4% bonds due Jan. 1, 1974, and held
May i ii was reported that company may possibly re¬
by
RFC.. :. Interest, rate to bp specified in bids.
The direct
fund its $47#oMq& ; first mortgage1 3$4s of 1974 with a.
tors rejected the conditions attached by the ICC but on
lower coupon issue.
Possible bidders include Halsey,

off a recent $80,000,000 bank loan and for addi¬
tions to working capital.
Probable underwriter, Kuhn,
Loeb & CO.
-■■■■"■'
;;'v
White Auto Stores, Inc.
June 24 reported an early registration of 75,000 shares
of convertible preferred stock and 50,000; shares of

refinancing program.

Announcement expected at,

Glore, Forgan & C*

early,

Waterman Airlines

;

•/;

■

;y.;

<:Cy

long-range financing.

Plans for

Ending UNRRA

Wisconsin Un. Opens

Wisconsin Public Service Co.* Milwaukee, Wis.

May 20 it

reported that Standard Gas & Electrid

was

this year its holdings of 1,099,970 shares of commPh stocfc ;
Probable bidders Include The Wisconsin Co.; The First
Boston. Corp,; Harriman Ripley & Co.

within

While the

basis with the

United Nations taJic-r

ing over such activities

DIVIDEND NOTICES

han¬

BUTLER BROTHERS

attendance, this Represents htt Mr vestments, banking practice,

Crease of 178% M the sttident body
over the first session in 1945. The

school

will

session

nomics,

eco¬

monetary -problems- and

agricultural credit.

two

First National Bank of Chicago.

freshman class this year has been

limited to 86 students.

"The

The entire

the

student body of 130 this year come
from 16 states. Advices from the

ence

"The school is designed to pro¬

vide bankers an opportunity for
advanced study and research in
.hanking* economic and monetary
problems. Requirements for ad-mission

that the student must

are

bank officer or have responsi¬

bilities equal"to those performed
by bank officers.

A limited num-

fber of students" from both State
and Federal

banking agencies are

| also eligible for admission.
| "A large measure of credit for
the

development

rapid

| the

| school is, due to the organization
?of the curriculum and the

ing

the. faculty

Prochnow, to the

f ship

recruit¬
Director

and the

cooperation

the Secretaries Of the Bankers AS!

the

diana,

following

Colorado,

Iowa,

Michigan,

states:

Illinois,

In¬

Kentucky,

Kansas,

Missouri,

Minnesota,

homa,

So.

homa

Dakota,

Wisconsin.

Gum, Secretary, Okla¬

Eugen P.

Bankers?

President

Association,

of the

Conference

is
this

"The administrative officers of
the

agreed to

school

Edwin

are:

Fred,

original plan to end the

Fayette

School
of

Elwell, " Dean,

Commerce,

University

Wisconsin; Director, Herbert V.

National

Bank

First

Chicago, and

retary, Wisconsin Bankers Asso¬

cision,

Associated Press Wash¬

ington advices point out, reaffirms
policies of the nations from which
UNRRA draws its
William L.

said

in food shortages

continent have made

every

tension of UNRRA

firm
some

connection

On the other

Washington
York

hand, according to

advices

Trading

institutional

Commercial

Dept.

Also

controls

business.

Financial

82,

Chronicle,

Box

New

"Times,"-organizations which

for,

continuation

the

American

organized

Jewish

American Veterans

Friends

National

Committee

Legislation,

Upion

„

Freedom

Women's

and

Trade

the'

Union

relief in Europe

League—

and Asia would

unable

either

feed

office

other responsibili.ies and preparation of business

literature.; Capable of handling

meritorious business proposition at its initial stage and de¬

veloping it steb by step to
underwrite

and

distribute.

address advertiser: Box
-

point 'where it is suitable 4td

Excellent

background..

Please*

L25; Commercial & Financial Chronicle; 25 Park $lace, New York 8, N.Y.
-

the

Company,

EiTh K IIAK UffiCTO RIN 61QM PA NY

pay-

Cleveland, Ohio

them¬

DIVIDEND

Harvey, Treasurer

of Eaton

Manufacturing
a dividend of
Seventy-five Cents (75c) per share on
the outstanding common stock of the
Company, payable August 24,1946,

Company has declared

THE ATLANTIC REFINING CO.
NUMBER

;Of business

for the food essenr*

pay

the close

1946

thirty-seven and one-half cents (37^c)
per share was declared on the Common
Stock of the Company, payable Septem¬
ber 16,1946, to stockholders of record
ait the close of business August 21,
1946, Checks will be mailed. ^

OTI S
EtE^ATOR]

RICHARD ROLLINS
July 29,194o.

H. C STUESSJ
Secretary & Treasurer

COMPANY

Secretary

.wi^r

Preferred

Dividend

No. 191
"Common Dividend No. H?,

quarterly dividend of $1.50

share
a

the Preferred Stock and

tht up

|«r

4av£Jbeen
DIVIDEND No. 146
•

•' \-4...

•?

vl l.\ '%'■:» *'l•

(50^)

fifty

business

cents

share has been declared

per

August 22, 1946,

Checks Will be mailed.th

the

yahie Upoimon Stock?
declared, payable'

September 20, 1946, to stock'
holders of record at the close of

'i ■:.?

—

An interim dividend of

per

dividend of 35# per ihare on'

capital ^tock of The Borden
Company, payable September 3,

C. A. "Sanford,"

.1946, to stockholders pf redprd' at
the dose of business August 12,1946.

New

TreasurerY

York, July 24,1946.

"Times"

July 30, 1946

Treasurer

that time.

by
•'

Tennesseb

! .1,

has also reported

among fo6<J

program,

-own

while

world

demand

long-term sched¬

large
is

section of

uncertain, end

the .new' requirements of the vari-»
nations is unknown,

leaders

are

industry

the

situation

and

BURLINGTON
MILLS

positive

Future relief

operations, the;Asf

sociated Press reported,

handled

*r-i

probably
national

:v-.

* <>

80 Bread; Street

3Vi% CUMULATIVE PREFERRED STOCK
87Vi cents

per

3Va% CONVERTIBLE SECOND
PREFERRED

97V»

this

.25 cents

per

1046.

this

BELL, Secretary.

cohi-okat1un

$3 CUMULATIVE PREFERENCE STOCK 'V
The Board of Directors of The United Cor¬

payable! 'September .Tj;
at

l/nl i'lso

""{.'v.

WILUAM S,

August 16, 1946.

1946, to Stockholders of record
close of business August 8, 1946.

v si;~

N. Y.,- July 29,

COMMON 5TOCK ($1 par value)
..

Directors

-Cfc
.

a his

*/l,
Each dividend Is

day

STOCK

cents per

Wew Yoork,

Company has
declared a dividend of Twenty (20)
Cents
per
share on 4he outstanding
capital
stocks, payable September 14, 1946 to share¬
holders
of
record
at
the -close
of
business
The Board

O^wVv.';;

Treasurer,

COMPANY
*'

•'

J.-McGEB V

THE BUCKEYE PIPE LINE

4% CUMULATIVE PREFERRED STOCK
$1 per share
,

V-'

/uly 23, 1946.

CORPORATION

dends:

are

policy.

Broadway

New York 6, N. Y.

The Board of Directors of this Corporation
has declared the following regular divi¬

provide a

A dividend of 25^ per share has beep
declared, payable September 25, 1946,
to stockholders of record
at the closelof
business September 5, 1946.
61

urging prompt clarifi¬

looking; rt<fc the: Departments of
State, Commerce and Agriculture

Corporation

VXNHCSMC CORPORATION

frade leaders;

learned yesterday. Unable tq

plan their

will

August 6,1946.

July 26,

At a meeting of the Board of Directors
held July 29, 1946. a dividend of

Dividend ^u'urts. "' Wy 29,

164

Notice

cation

shareholders of record

COMMON

tion of UNRRA this year is arous¬

ous

NO. 86

The Board of Directors

Jitly 30, 1946

ing considerable confusion and in-

ules

business

August 9, 1946. Checks will be mailed.
Edmund

the

September 3, 1946, to stock¬

July 27 that expected termina¬

was

producing letters and sales

record

E. L. NOETZEL
or

faniine relief export

officers of Securities firm of managing

Tobacco

National

regarding future operation of the'

able in cash

Stock

Common

League for Peace and

V. P|ace, New;;Ywk & N> V,:.^

lieving partners

and

Cents

upon

for

ternational

The

Advertiser is interested in securing position calling for re¬

Stock

American

holders

Seventy-five

Action, Women's in¬

....

INVESTMENT BANKING EXECUTIVE

The

dividend

share has been declared

Democratic

sv^y■"

per

Congress,

bf the recipient countries would

Experienced trader in listed stocks and
bonds. Forty-three years old with twenty
Fears' experience.
Capable ~of managing
Unlisted Department.
Box L 81, Com¬
mercial & Financial Chronicle, 25 Park

regular

(75£)

Committee, the

member

the

made the appeal to the President

TRADER

with

■

Secretary

ex¬

beyond early

Checks, will,

July S3, 1940

next year unnecessary.
*

of record at the close of

Edwin O. Wack

DIVIDEND
on

holders

Common Dividend

164th

the

nearly at

was

new

that

end, and that improved harvests

selves

V RomU^- Unlisted Securities "

1946, to

informally

believed

was

tia'l to their needs

Experienced Trader

husineas August 1, 1946.

support.

Clayton, Assistant Sec¬

of State

chief

continue through 1947 -since many

iWANTED

■

New York 3, N.Y.

^mailed.

the first quarter of 1947. The de¬ Common

Registrar, Wall G. Coapman, Sec¬ pointed out that the nee4 for ioo«d

SlTtJJmdNS

Desires

re¬

lief organization completely after

President* University of Wiscon¬ CIO, the
sin;

'NCORRORATEO

111 Fifth Avenue

through with

world relief viz: Americans United,

yfcar.

This! ciation,

sociations in these 16 states.

the

Nebraska, No. Dakota, Ohio, Okla¬

100%^ sponsor- Prochnow, ? Vice-President,

of' the tJentral States Con¬

ference,

comprises the Bankers Asso¬

Arkansas,

have

that

Confer^-

The

J^j£ue*<£iau>o4rdaeecr£^^

July 27 that this

under
the1 Central emergency relief problem involved

Conference.

ciations

from next

year

The Board of Directors has declared the

regular quarterly dividend of One Dollar and twelve and a half cents ($1.12 J^)
per share
on' Cumulative
Preferred
Stock, 4 H% Series, and a dividend of
Twenty five cents (25c)per share on Com¬
mon Stock, both payable
September 1,

country, Canada and Great Britain

retary

is operated

sponsorship

States

Illinois Bankers Association states:
!

school

another

made known

"Among the prominent business
Weeks, running through August men and bankers on the
faculty
10. Attendance at three Summer
are
John W. Barriger, President
Sessions is required for gradua¬ of the Monon Railroad; M. S.
tion.
The school has been ap¬
Szymczak, Member, Board of Gov¬
proved by the Veterans Adminis¬ ernors of the Federal Reserve Sys¬
tration as an educational facility
tem;
Cyril B. Upham, Deputy
for the training of bankers who
Comptroller of the Currency; Dr.
are veterans eligible under Public
Woodlief Thomas, Director, Divi¬
Law No. 346 as amended.
Last sion
-of ^Research and Statistics,
year 47 students from three states
Board of Governors, Federal Re^
comprised the first freshman class. serve
System, and Irvin L. Porter,
This year 44 of the original stuVice-President and Director, The

tie^t body will return and the

least

December, diplomatic informants'

Corp.?

■.;

Mid-Wetern bankers that a
In spite of the appeal to Pres¬
Summer school of banking could
dling of displaced persons in Eu¬
ident Truman by several national
be Created iii the Middle; West
rope* reconstruction in bankrupt
,||ie School Of RainMng bt the capable^p
organizations for United States areas and health
problems.
Uniyersitiy of WiscOhsih for the requirements and, to afford profes^ action to
assure the continuance
pentral Staites opened its second sional training by distinguished
of the United Nations Relief and
annual session at Madison, Wis.,
DIVIDEND NOTICESbankers* economists and attorneys
ott^ply'■%% iwithrl30: students In ih fields of commercial^^ creditr lii-- Rehabilitation Administration for
many

Colony

Co. expected to sell at competitive
bidding some time

June 27 reported corporation expects to
complete

sponsorship has made possible the
fulfillment of the prediction of

Sfliobt M Baiikin||l

share.

per

the next monthoir §q

First

Co., as underwriters.
Preferred represents new fi¬
nancing, common being sold by stockholders. Expected

Westinghouse Electric Corp., Pittsburgh

July ,17. reported company contemplates hew financing.
Company intends to conduct a-non-stop air cruise be¬

with

preferred will be offered at $20 and common at $10

Probable bidders include Blyth & Co., Inc.; Merrill
Lynch, Pierce, Penner & Beane; Shields & Co., and

tion

expected

re-hearing the ICC July 19 affirmed its original order.

Waitt & Bond; Inc., Newark, N. J.
June 12; it wasreputedTtompariy-

stock

common

Rauscher, Pierce & Co.; B. V. Christie & Co.; Courts

Stuart & Co., Inc., and Kuhn, Loeb & Co,

Proceeds will be used

to pay

659

•';

the

COULtER, Secrefary

poration has declared a dividend of $7.50 per
share, on account of arrears, upon the out¬
standing $3 Cumulative Preference Stock, pay¬
able August 14. 1040, to the holders of record
at the close of business August 5,
1946.
;;
THOMAS H. STACY, Secretary.
Wilmington, SMBwai* ■?
;.?VJuly 24, 1946

By SIEGFRIED
?.

numerous

attention to diffiicuItleO and red tape arising from
regulatory commissions in'Washington and urges ehm*na-

Many years ago, our forefathers,
our government by the people.

They

ceived

man

nature,

and to

abuses

person

the laws enacted

finds fault with

majority of our representa¬
But one canfeeling that the adminis¬
tration of these laws could be
materially simplified. Time and
money could, be saved to the tax
payers through the elimination of
overlapping agencies and the con¬
traction of political interference in
by the

t hey
brilliantly

power,

tives in the Congress.
rot help

sys¬

tem of checks

and balances

the

through

reasonable

Why?

mounting,,

laws is steadily

those

created

cost of obeying our

forms arid the

prevent

—

•

hu¬

nesses

WASHINGTON, July 29—The National Advisory Council is

recognized the • wea

division of

government
legisla-,
tive, adminis¬
in t o.

the normal processes

bf our econ¬

through reduction in the cost
of government and through rec¬
j u d i c i a 1
Siegfried Froblich
ognition of the fact that, the. pur¬
branches. Mr.
pose
of. representative govern¬
Xincolp, in his
ment is to govern for the benefit
famous Gettysburg address, fer¬
vently pleaded "that Government of all the people and not to cater
omy,

and

trative

If the framers' of

the Constitu- i
earth today,

facilitating

purpose

election.

;

re¬

America!:The Con¬

Wake up

they would hardly recognize the;
instrument > of government they gressional elections this fall
had so wisely created. They had the Presidential election in

ex¬

by the Bank's Vice-President

and ^Economic
Advisoty August
Maffry, and by its General Coun¬
sel, Hawthorne Arey.
,

Credits to Aid

Philippines

Finland, 4 Other Countries
§§ Dollar credit arrangements: to-»
taling $39,000,000 have been com¬
pleted with six countries to expe¬
dite

their

purchase

United

States surplus war property over¬

set the

Office of the Foreign,
Liquidation
Commissioner •; an*
nounced.

Countries to receive credit un¬
der the recently-concluded agree¬
ments are the Philippines, Turkey,

Finland,
Lebanon,
Iran,
and
Ethiopia. One of the major obsta¬
cles in overseas surplus disposal,
FLC pointed out, has been the
shortage of, dollars in foreign coun*^
tries, and these credit terms are
expected to help -overcome that
problem as well as foster sales to
aid

reconstruction

The

abroad.

advices from, the FLC

added:

with Mr. Wm.

and

McChesney Mattin, said

Chairman of Export-Import Banki
It therefore' seems assured that the

the

mission

which

Czechoslovakia sent to Russia for

the purchase. of arms on credit.
1948
3 Vz % rate will. be». accepted as This occurred at a time when large
functions in
provide you with- an opportunity NAC policy, for developmental quantities of arms, including many
the*: Congress. r Today
we find
to be heard; Go to thev polls with loans.
of Czecholovak manufacture, are
Agencies,1
Authorities/ r Boards/
The question is merely whether being destroyed in Germany, acCommissions/Administrators,^: Ex- a firm mind and a lotid voice; '
the Bank should be more or less cording to a Czechoslovak inform¬
peditors, etc., all vested with semiant.
conservative.
Its
officials
are
judicial powers. They were au¬
Export-Import Bank is also
anxious to avoid the risk of hav¬
thorized to make rules and regur
ing to come before Congress ad¬ working: oii credits to Brazil and
lations to enforce laws enacted by

"Under the provisions of these

agreements for U. S.fc surplus pur¬
chased prior to January 1,-1948/
the Philippine
Government has
been alloted

a credit of $10 niil-*
lion, Turkey and Finland $10 mil¬
lion each,> Lebanon :$5! millionv
Iran v$3 ; million and
Ethiopia;
$1 million.
''*•

vested the" legislative

the Congress,

and they did with a

ance

index

regula¬

vengeance. The maze of
tions is bewildering and

Bank has had

sitates special clerical staffs. Ac-;
countarits, tax attorneys and con¬
sultants

are

the layman

the

required

contents

see

page

losses to

some

Rails
Commons & Pfds.

Early in September, Chairman
Martin of the Export-Import Bank

date,

NEW ISSUES

FOREIGN SECURITIES

607.

rescue

floundering helplessly
swamp. Valuable

Trading Markets1 in

dismal

time is wasted to fill out

Old Reorganization

index

detailed

For

Chile,

mitting substantial losses on op¬
erations at any future time.
The

■

compli¬

with them frequently neces¬

miles of

M.S.Wien&Co.
1919

ESTABLISHED

Members N. Y. Security Dealers

Ceraseal Chemical Corp.

Exchange PI., N. Y. 5
Teletype

Teletype—-N;T. 1-971

HAnover 2-0050

Astn

HA. 2-8780

1-1397

WW'M

Consolidated Industries, Inc.
"

Firm Trading Markets

General Panel Corp.
Northwest Leather

FOREIGN SECURITIES

Higgins, Inc.

Recent

price IS

Sterling Motors

mabks & P.o. inc.
FOREIGN SECURITIES ' :

Recent price 14

<5PFCIBIT?T^

Robbe, Gearhart & Company

New York 4. N. Y.

50 Broad Street

Members

I
We

Thompson's Spa Inc,

Corporation

Securities with

New

Entebpbisb 6015

Zr;Vri4^,'''J C. y?V\

Pollak
Recent price 17

NEW YOBK: 1-576

:. v

A nalyses
^

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request

'f'• J 45 f ? /,' T.

148

ciallsts

W. Y.

tQ \

24 FEDERAL

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Established in 1922 tV

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Bank —* Insurance

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Telephone HAnover 2-7914

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Utility—Industrial—Real Estate
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Lumber & Timker
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Radiator, Pfd.

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W. I. BONN & CO.
Broadway

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Bell

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Amos Treat & Go.

New York 5
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Wall

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if' ,'1 £ j'

Common & Preferred

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Engineering Company!

Fleetwood-Airflow, Inc.

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New

York

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■:

by the people may not perish from to well organized minorities for
this earth/?,(X<.is$:
' •'\
the
tion could return to

pected to decide shortly on a new interest rate for Export-Import
Bank foreign loans for develop-®^
ment purposes. The Bank has been but not net losses an overall op¬
advocating VJz% on the theory erations. Of course, there is no
that such a rate is necessary if actuarial basis for establishing the
the Bank is to operate on a con¬ risk factor in its loans, officials
i
'
servative/ self-sustaining basis. In sfate.
A loan to Italy, which was dis¬
fact the Export-Import Bank all
along has advocated the 3^2% cussed extensively by the Na¬
tional
rate for all its loans, including re¬
Advisory
Council
some
construction loans, but was over¬ time ago, is at present marking
ruled on this point as a result of time, pending the results of the
the position taken by Mr. Harry Paris peace/conference. The; "Ex¬
D. White while Assistant Secre¬ port-Import Bank recently com¬
pleted negotiations with Czecho¬
tary of the Treasury.
In recent weeks the NAC work¬ slovakia for a $50,000,000 loan, but
the matter is still held open pending committee has had the matter
under consideration and has stud¬ ing B.mutjiiali, exchange of ,assur¬
ied
trends
in market
interest ances. on trade policy. Czecho¬
rates. Commerce Department and slovakia, which does not at this
Treasury staff members concluded time wish1 to negotiate a trade
that a 3 %^rate for development agreement with the United-States,
loans ; would be ; justified, j but desires assurance, of most -favored
other departmental staff members nation • treatment, arid the State
favored: the higher rate. Treasury Department In turn wants similar
staff members of the ^working guaranties-^rom Czechoslovakia in
committee were reversecLby Sec* view of the trend In-Eastern' Eur¬
retary of the Treasury John Snyf ope to orient trade toward Mos¬
der, after discussing the matter cow. A recent example of this is

government,
with uncanny foresight, con¬

of restoring representative

tion of many as means

He is to be accompan¬

countries.
ied

hangmg;fire//tggi!:!;;:;3^

ialls

Writer

National Advisory Council expected to decide shortly on rate set
by Export-Import Bank on accommodations to foreign countries
for development purposes. Italian and Czechoslovak credits still

Sherman & Co,

Research Department, L. D.

FROHUCH

visit various European *

plans to

Considering 3V2% Rate for Foreign Loans

Sideshow

The Washington

Thursday; Attgust ly 194$

FINANCIAL CHRONICLE

THE COMMERCIAL ^

ST., CHICAGO 4 • PHONE

WESTERN UNION TELEPRINTER "WUX"

•

INC.

RANDOLPH 3736

BELL SYSTEM

TELETYPE CG-98?

Hill, Thompson & Co., Inc.
Dealers
Markets and Situations

120

for

Broadway, New York 5 T

Tel. REctor 2-2020

Tele. NY 1-2660

Full text of Commercial and Financial Chronicle : August 1, 1946, Vol. 164, No. 4512, Section 1

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