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Bus.
AUG i 3 1843
Final
A
Edition
In 2 Sections-Section
ESTABLISHED OVER 100 YEARS
t r >
i
\at and
ommetcial
r
r
I
■
Reg. U.
Volume 158
Number 4202
New York, N. Y.,
C. G. Stoll 40 Years
Bank
the
week
ended
7,
1943, Clarence G. Stoll, President
of the Western Electric Company,
reached his 40th anniversary with
that organiza¬
Mr.
West¬
student
a
apprentice
its
in
Clinton
Street
Shop in
Chicago, after
graduat¬
from
ing
State
College
1903.
in
After
Succession
a
f
o
promotions in
the
manufac¬
turing depart¬
he
ment,
j
Clarence. G.
system
banking
elected
was
interest
material
with
whole
credit
as¬
they
cash
for
The
them.;
will
rise further
of
dealer
in this
'•'•••
,/i
appear
"
Illinois, page 594; Wis., page 596,
of course, receives
the
Austin
J.
White
cash but
soon
;
pays it out to
Tom, Dick and Harry. Then Tom,
Dick * and
Harry
deposit
the
in the'banks, or spend it
money
at
The
and
deposits
it.
system then debits
deposits.
This
banking
cash
which
store
some
credits
cash offsets the credit to
debit to
credit to
ally
are
deposits.* Banks gener¬
now paying for their pur¬
chases of Governments, not with
also
'
After the war, we
war
as
countries
will
amounts
the
from
the
proportion
check
this; process
in
there
directly
a
transaction
write-up
of in-
new
again the process is
debit
to
simply
and
investments
credit to deposits,
a
without any use
of-cafch.In normal circumstances,
' ;
,
r
.
a
tion,
in
ber
countries, to
say
of
in the international accounts
ef¬
fect others. If Great Britain has to
resort to
a
major reduction of food
consumption and its production at
cannot
buy more bonds.. This is
check of the economic sys¬
continuous
the
spend¬
deficit
Government,
at
or
deficits by bor¬
(Continued
on page
the
for
however,
Fortunately,
imports,, Elimination of one or
several major buyers on the world
market is bound to have adverse
consequences
tries.
rowing from the banks.
599)
In
uncer¬
Under the. forthcoming
critical circumstances, it would be
very hazardous, to say the least,
to rely Upon the "solidarity of the
money markets" and the automat¬
tainty,
ism of interest rates.
tutional
be
Some insti¬
organization is likely to
while to fill
by a possible
for
necessary
the
a
created
gap
breakdown
of the
normal finan¬
mechanism, This is what the
following plan should accomplish;
cial
But
its
purpose
ital
•
•
is not tp elimi¬
"natural"
nate the
flow,
course
for all trading coun¬
run,
world
the vlong
er4
602)
CHASE
THE
might adjust itself to the
situation, painful as are such
of cap¬
to substitute an
or
;;v (Continued on page
economy
new
ful-;
relieving their
able at times of crisis and
other
nothing of
the Axis nations. The lack of bal¬
ance
credits
distress. But
previous to the era of World
and
managed economies,^
foreign capital was scarcely avail-,
addi-
of each individual country will
international
even
tlon to a num-
Dr.MelchiorP.Iyi
Allied
and
situa¬
home, Canada, and Argentina, Hol¬
land and Denmark, will lose a
substantial portion of their out¬
lets and will in turn reduce their
as the cash for reserves ap¬
proaches, the minimum, banks are
unable to increase their deposits
further in this manner and thus
NATIONAL BANK
"ji
C
BOND
WAR BONDS
FINANCING and VALUATIONS
Bond
MANHATTAN
'V "»■
)
FUND
PROSPECTu/oN
R. H. Johnson & Co.
ENGINEERS and CONSTRUCTORS
£2 WILLIAM STREET
'
■
'
■/..
.
,
San Francisco
64 Wall
SECURITIES
:
~
HUGH
W/LONG and-GOMPANY
Pittsburgh
INCORPORATED
"
634 SO. SPRING ST.
15 EXCHANGE PL.
and Dealers
*
LOS ANGELES
.
•
»
•
,
.
•
7 •
..
-
...
'•
J
service with Chase
correspondent
Hardy&Co.
facilities
Members New York Stock Exchange
Members New York Curb Exchange
30 Broad St.
.
New York 4
,
JERSEY CITY
'l **.
"
iwrnnpo
PHILADELPHIA
Buffalo , Syracuse
Wiiliamsport
Dallas
Albany
Banks, Brokers
le/Disfributors
Wholesale*
Street, New York 5
BOSTON
Troy
REQUEST
Established 1927
.
INVESTMENT
Brokerage
Broaden your customer
or
Sanderson&Porter
N EW YORK
is
likely to be in
such
of
fills the function of shifting cap-;
ital to the countries in difficulty-
OF THE CITY OF NEW YORK
•'
•
Great
Britain
theri,
least to financing
the
no
for,
a
Government,
makes
is
put into the banking system,
to
course,
But
cash
by
of
Even
of
spiral
cash is needed for reserves.
ing
This,
this
to
up
flow
Wars
situations.
deficits and deposits.
Against these increasing deposits
the banks must carry reserves in
cash. - As deposits increase, more
piling
in
adapting their
exports to new
compet i t i v e
de¬
In normal times there is an au¬
tomatic
diffi-
culties
posits will rise further.
tem
j
it does,
the
*,
■
In connection with
Chicago
be
and
and in
banks,
that
cash, but merely by crediting the
MANAGEMENT PROBLEMS
•
not
to realize that as long
REPORTS
SURVEYS AND
;
as
War-Loan Deposit account of the
more
:
long
Introduction
the Government borrows huge
as
AND CONSTRUCTION
•
come
one
simply;
QUICK ACTION ON DESIGN
have
Government,
made;when the.bonds were
purchased; so; that the net result
i§, a. debit:.to investments and a
and items
■
cash,
cash
reference to
Wisconsin
entry
suming
com¬
activities in the States of Illinois
issue.
a
pay
In This Issue
Special
as
for
He was in charge of the
and
while the war lasts, but what will happen to them after
Practically every banker realizes now that the deposits of
war.
a
for the Allied Nations.
1
the
Stoll
pany's factory at Antwerp, Bel¬
gium, in the World War year of
1914.
Today, after more than 25
years of executive responsibility
in
operating in peacetime the
world's largest telephone equip¬
ment business, he is once again
directing in wartime a great es¬
tablishment committed to the job
of furnishing more than a third
of America's production of mili¬
tary communications equipment
|
PALYI, CHICAGO
By DR. MELCHIOR
to deposits
Presidency in 1940.
|
Monetary Stabilization Plan
Cincinnati, Ohio
,
be-
President in 1926 and
to the
A Tentative International
question in the minds of: bankers is not what will happen
Vice
came
Copy
a
,
Pennsyl¬
vania
Cents
60
shall be faced with the fact that a number of
able either to provide themselves with the
necessities for consumption or the raw materials to produce for?
export.
This emergency may last several years.
The distress will;
deposits
experienced in recent 3>
——
—
arise from the fact that the countries in question will have neither
years, and expected during the vestments and a write-up of de¬
remainder of the war, it may be posits.
i
•
•
**
gold nor other internationally marketable reserves to take care of a
This procedure is not born of deficit in the respective balances^—
well
to
illustrate
the
reason
—
—■
simply
and the war, for the banking system of payments. These balances will adjustments. The trouble is that
concisely. was thus writing up investments be in disequilibrium due to the the distressed countries are not
When
the and deposits throughout the eight depletion of inventories, the ac- likely to submit to such an ad¬
banks
.r
cumulation of justment process, which might
buy years before the war when the
bonds
from Federal budget was out of balance *
^
•
short - term entail the liquidation of their re¬
debts, the de- maining marketable assets, a pro¬
the
Govern- and the Government was borrow¬
struction of found reduction of living stand-,
ment, :the ing from the banks. After we en¬
productive fa¬ ards, etc. They rather will try to*
tered
the
war,
however,
the
banking
sys¬
cilities,
the hedge by protective policies, in;
tem as a whole write-ups jumped considerably as
loss
of
ex¬
turn tending to perpetuate the* in¬
makes a debit the Government borrowed huge
ternal sources ternational disequilibrium.
>
By
entry for in¬ amounts to finance the war.
In a capitalistic world, the free
of
reve n u e
vestments and the same token bankers generally
Electric
ern
Price
Thursday, August 12, 1943
financing continues.
While most people now recognize the reason for the growth in
Stoll
joined
Office
By J. AUSTIN WHITE
J. A. White & Co.,
the
tion.
as
/
Aug.
The
Pat.
Deposits After The War
WithWestera Electric
With
S.
Tel. DIgby 4-8400
[timber federal Deposit Insurance
Corporation
Tele. NY 1-733
Paget Sound
Power & Li
Actual Trading
$6 Preferred-Common "wP
Markets, always
Federal Machine and
in active and inactive
Over'The - Counter
Purolator
Securities
and
other
Exchange
Exchanges
„
London
-
Geneva
4, N.Y.
25 Broad St.
HAnover
2-0600
135 So. LaSalle St.
State
8770
HART SMITH & CO.
Kobbe, Gearhart & Co*
Members
REYNOLDS & CO.
Rep.
CHICAGO 3, ILL.
Members
N.
Y.
Security
45 Nassau Street
Tel. REctor 2-3600
Dealers
Ass'n
New York 5
Members New
120
York Stock Exchange
Broadway, New York 5, N. Y.
Telephone:
Teletype N. Y. 1-576
Teletype CG 1219
Philadelphia
I
Telephone:
Enterprise 6015
Bell
New
York Security Dealers Assn.
52 WILLIAM ST., N.
Bell
REctor 2-7400
-
Teletype NY 1-210
6% Preferred
Analysis upon Request
Basis Reports upon request
INCORPORATED
NEW YORK
England
Power Association '.
Products, Inc.
!
Hirsch, Lilienthal & Co.
Members New York Stock
New
Welder Co.
Teletype NY 1-635
New York
Y. 5
ira haupt &co.
Members New
York Stock Exchange
HAnover 2-0980
Teletype NY 1-395
Montreal
Toronto
111 Broadway
REctor 2-3100
Teletype NY 1-1920
THE COMMERCIAL & FINANCIAL CHRONICLE
590
-Trading Markets in:7
■
1
Markets in U. S. FUNDS for
We Maintain Active
Dumont Lab.
American
CANADIAN INDUSTRIALS
Common & Bonds
$ :
5'As, 1952
KING
&
Established 1920
Members
York
New
1
°
Dealers Ass'n
Security
115 BROADWAY
Exohang-o PL, N.Y. 5 HA 2-2772
40
(i CANADIAN BANKS
Telephone BArclay
..
Ill
NE.W YORK 6, N. Y.
.
7-0100
Members New York Stock Exchange
';7V-:A:::a: 7
I'
' New
Members
i■ v._.■.;..
York Stock Exchange
New
-
120
Teletype NY 1-672
-
Steiner,Rouse&Co.
McDonnell &fo.
Principal Exchanges
Members N. Y. Stock Exchange and Other
1971
3-6$,
Walworth Pfd.
Goodbody & Go.
■
Wyoming Vy. Pub. Serv.
Warren Bros. Class "B" & "C"
CANADIAN RAILS
Central Public Utility
Birmingham Gas.
Remington Arms
CANADIAN MINES
Mid-Continent Airlines
Alabama Mills
Cyanamid Pfd.
Botany Pfd. & Common
CANADIAN UTILITIES
Braniff Airways
KING
Thursday, August 12, 1943
■
.
-
Tel.
REctor
NY 1-1557
HAnover 2-0700
York Curb Exchange
New Orleans,
BROADWAY, NEW YORK
.
St.* New York 4, N. Y.
25 Broad
La.-Birmingham, Ala.
Direct wires to
2-7815
our
branch offices
BELL TELETYPE WY 1-423
Axtoxs Fislier Tobacco,
Bohack
Du Mont
Com.
Mitchell & Company
ing
Stock Exchange
Teletype N. Y. 1-1227
8,
Behind," appeared in our issue of
As
;
have
comments
numerous
conclusions
been
\
the views and
Wright
Some of these
pressions
"Interstate Power
given in previous
issues
were
of
Taggart Corporation
President,
Bank
United Cigar Whelan
ticles
N. Y. Curb Exchange
Vanderhoef & Robinson
31
15'
Yovk
Curb
Exchange
New York 5
Nassau Street;
Telephone COrtlandt 7-4070
System Teletype NX 1-1548
Texas
are
in
which
,
I
The
an
fiscal
appreciate
Bynrtdun Corporation
helpful
drifting
has
&
opinion, there is nothing that
conservative management can do
Preferred
except keep their business in an
Indiana Limestone
Inc.
Retail
■
tion
D
tive
of
Cannot
Preferred—-5
bidding
worries
and
dertaking.
patriotic
banker
any¬
1
is
war
debt
i
b
s
that
i
e
n
g
upon
coiintry. ( H
Shorts
.
pected, to entail somewhat more
in the way of selling effort than
might have been the case had the
issue been priced to yield 3% or
slightly better.
"
"
'-''"7.
The current offering affords a
yield <■ of approximately
2.98%.
Accordingly some insurance firms
Telephone: WHitehall 3-1223
to
going to be about
597) \ t
page
on
have
international bank.
war
Teletype NY 1-1843
There
s
no
Elastic Stop Nut
currency
There
Eagle Lock
Long Bell Lumber
many
Fashion Park
United Piece Dye
give
*
Federal Screw
a
post¬
doubt in my mind that any
^
will then be difficult for Congress
abroad.
different
not
our
to
have, however, been
proposals
so
made
the
to
of the United States
and yet some roundabout method
1 they yield
-
SvemeuCompanu
I Much water has passed
over
dam since the last time
a
bidders
Members
37
Wall
N.
Bell
Y. Security Dealers Assn.
Street, New York 5, N. Y.
Tel.
HAnover
Teletypes—NY
2-4«50
as
shown
in
the auction
ity's $14,281,000 general and re¬
funding 2%%s this week.
Presumably
wide varia¬
the
is
well
that
Dr,
Spahr has
Congress
clear
will
its
make
before
position
international
any
ent, reflects the uncertain traf¬
fic
outlook
area
In
particularly in the
which
the
Authority's
projects operate. Lifting of the
pleasure-driving ban and eas¬
ing
of
gasoline
restrictions
1-1126
&
1127
commitments
and
definitely made by members of
naturally would alter
look considerably,
the government who are not the
But with four groups
very
probable
mind
in
some
faced
that
legal
elected
Washington will devise
on
this
point
people.
such
means
with
a
some
and
fait
we
representatives
EMIL
New York,
It
of
are
the
,
will be
accompli.
the
cial
spoken out and let us hope that
,
LINHART.
N. Y., Aug. 2, 1943.
„
I,
.
Portland El. Pr. 6s, 1950
New Eng. P. S. Plain
6
&
%c/o' Pfd.
,y
fSi
Southern Cities Utilities
r
';?ddddf:Wdy-:- 5s, 1958
Edward A. Purcell & Co.
65 Broadway
muni¬
of the Port of New York Author¬
end
ft is
Loft Candy
South Shore Oil
Exchange
WHitehall 4-8120
NY 1-1919
Bell System Teletype
cipal,
or
revenue,
bond issue
brought such a wide spread among
gard to such issues at the mom¬
It
NY 1-1790
Members New York Curb Exchange
tion in ideas of bankers with re¬
disturbance.
5;
Telephone DIgby 4-7900
Bell System Teletype
Bids Wide
Authority
found to accomplish the same
tent of the law of the land,
will
that-■ die-hards
was
thus circumvent the in¬
:
Cons, Elec. & Gas 6s, 1962
barely shades the 3% level it is
Vexpected
1915
direct
do anything about it without
causing some international finan¬
which
years
strictly, conform
constitution
Happiness Candy Stores
definite value to
during the last ten
did
Works
a
Established
30 Pine Street, New York
Members New York.Stock
such organization in which the United States would participate would
first have to be approved by the Congress, in view of the fact that it
would
since
||
Robert C. Mayer & Co., Inc.
from the underwriters.
Port
commit the United States to
seems
lots
gradually capitulate.
appeared in Thursday's "Commer¬
giving Dr. Spahr's viewpoint as to
can
down
taken
Brook W.S. Pfd.
Ohio Match
in
is
I have read the article which
whether or not the President
Scranton Spg.
New York, New England and
Philadelphia are reported a trifle
reluctant although others are said
twice
much as would have been nec¬
essary; 'The present administra¬
tion
seems
to have started out
debt
a§
Pfd.
Spokane Int'l Ry. Esc. Recpts.
.
R.fPeVerj*
e
that this
feels
Interstate Bakeries,
un¬
;
■
than
else
corporate
a
■■
' - ly,:,r,y
v-; 4
Inquiry among dealers indicated
'hat the undertaking might be ex¬
today
Deep Rock Oil Corp.
to
necessary
1
-
handle the sale of
May Subvert Constitution
Chronicle"
the out¬
bidding the
and
2.03 points, the
Wittich On Trip To Coast
Wilbur R.
Wittich, Manager qf
the New York office of Wyeth &
Co., at 40 Wall St., is leaving on>
Friday, Aug. 13, for a trip to the
Pacific Coast where he will make
his
at
the
firm's
office,
647
South
headquarters
Los
Angeles
Spring St,
•
,
<
.
•
Position Markets:
Carey Trust—All Issues
spread' between the highest
lowest offers was
winning bid calling for payment
(Continued on page 600)
Oklahoma-Texas Trust
Columbia Baking, Pfd. & Com.
Galveston-Houston Co.
Trading Markets in
Insurance Stocks
and
All Air Line Stocks
A. E, Staley
MISSOURI
Connecticut Light A Power
Bendix Home Appliance
Jefferson Lake Sulphur
Loft Candy
DuMont Laboratories
York Corporation
Remington Arms
Majestic Radio
Crowell Publishing
Mokan
PACIFIC
ISSUES
FASHION
.
-
Ww XMW » f.Aw.
AMI &
WW
Established 1920
Direct
Wires
PHon*s
I
-r
HARTFORD
PHILADELPHIA
New
England Industries
Nu-Enamel
W. L. DOUGLAS SHOE CO.
Prior Preferred
Bought—Sold—Quoted
2-57oo
m T9lelype Ny unm
Members New York Security Dealers Association
to BOSTON
PARK, Inc.
■
120 Broadway, New York
^
Jefferson Lake Sulphur, Pfd. & Com.
Liberty Baking, Pid. & Com.
Common
Preferred
Firm Trading Markets-On The Wire
YEYET
(3. A. Saxton & Co., Inc.
FASHION PARK, Inc.
Mohawk Rubber
Pipe Line
$
Securities
offering
syndicate
con¬
sisting of some ninety firms, most¬
ly of New York and Chicago, was
likewise one of: the biggest or¬
ganized
in
recent
months
to
connec¬
cial
Financial
Teletype NY 1-2361
REctor 2-7634
naturally
was
the
The
tion, the thing
20 Pine
and
5, N. Y.'
120 Broadway, N, Y.
pur¬
'
Editor, The Commercial & Financial Chronicle:
Street, New York 5
it
that
the public.
Be
On Post-War International Bank
1949
were
C. L de Willers S Co.
through with the offering to
go
Behind."
H. G. BRUNS & CO.
Bell
bonds
grant the clearance
;
Comes,
f 1 ation
e
(Continued
Fears Administration
.>v
Service
chased by the group in competi¬
also
opportunity
the
However,
6s, 1959
&
I
Public
price of 102%.
a
expected
entirely liquid condition.
6s, 1952
Properties
Struthers Wells
Common
very
IN "THE SHEETS"
and Exchange Commission would
an¬
no
my
Douglas Shoe
Common
plan
the
and
Since
y
thirty-year first
of > the
Indiana
Company at
Infla¬
policy—therefore, placed
to
-
it
the outlandish
course,
LISTINGS
SEE OUR
a
3!/s% d bonds
.
reading
thing
far
In view of all of this, in
ahead.
Common
_
W. L.
individual
of
out
$45,000,000
"When
it is difficult for any business man
or
ideas
almost
government
nounced
good
more
can
u
who are
uncharted
many
on
the .market today with
Northern
inflation and got some
on
that
certain
down
on
the competent
ar¬
well written
laid
concur,
to: • the
article
;/\V
former
Wright's
Dr.
read
Naturally, in
Wright's
due
mortgage
Mich.
Saginaw,
Co.,
I
.
this
These articles should be
along
Bell
has
fundamentals
readily
Ivan
inflation
on
;
Far
National
Alamo
San Antonio,
of Dr.
he
and
The
of
Both
Preferred
New
given herewith:
are
WALTER P. NAPIER
Preferred
Members
be accommodated
can
in this issue
ex¬
and
"Chronicle"
the
others that
6s 1952
?
drawn by Dr.
in his articles.
The
second
largest
public
utility bond issue of the year was
fer
SHORTS, President
Second National Bank & Trust
to be expected,
was
PERRY
R.
and
received regarding
on
Rails and Industrials
large banking group slated to of¬
v in
our issue - of'4
the second, bearing
the
caption,
"When
Inflation
Comes, Deflation Cannot Be Far
published
was
July 22.
WOrth 2-4230
♦Traded
REPORT
by
Business for Stockholders Through the Vicissitudes of Inflation,"
a
.
Broadway, N. Y. 5, N. Y.
Bell
Actual Markets in
author
July
Baltimore
written
Wright, Professor of Econiomics, Brooklyn College, in which
suggested to management and investors a program cal¬
culated to offer the best possible protection against the effects of
inflation and deflation.
The first ;of these studies, entitled "Manag¬
the
Washington Prop. 7's, 1952 & Com.
120
articles,
two
REPORTER'S
Dr. Ivan
Maryland Drydock, Com.
Members
published
"Chronicle", recently
The
Labor., Com.
Emerson Drug,
Articles On Inflation and Deflation
t
A & B
Realty, Pfd.
HEALERS!!!*
OUR
Additional Comments Anent Dr. Wright's
J
SIMONS, UNBURN & CO.
Members New York Stock Exchange
25 Broad St., New York
Hoover
2*0606
-
-
-
Tele.
4, N. Y.
NY 1^210
U. S. Finishing,
Pfd. & 5's 1944
U. S. Radiator, Pfd.
T. j. FEIBLEMAN
Members
New
41 Broad
Street
BOwling Green
& CO.
Orleans Stock Exchange
9-4430
New York 4
Teje. NY 1 -493
f
Volume
COMMERCIAL and
The
Patent Office
Reg. U. S.
i;:'
•
,25 Spruce Street, New York 7
>Q-
>
' '
,
-
*
D.
Editor and Publisher V.
;'
P. R.
Thursday, August 12, ,1943
•Published
twice
week
a
'«•
.
.
100%
Mallory
WITH SAFETY!
We
,
.1 25Broad Street, New
,..
\
Telephone HAnover 2-4300
those
v
York
on
bonds
are
99 WALL
•'* 1 Teletype NY 1-5
■
say,with
of
quote
Spencer Trask & Go.
|
Wefjcb Grape JtiicO
Monday]
can
10C%
fi)
Chicago—In charge of
Pred H. Gray, Western Representative*
Field Building (Telephone State 0613).'
London—Edwards & Smith, 1 Drapers'
■
AND COMPANY
■
Common & Rights
.
,
Stromberg-Carlson
[every
(general news and ad¬
vertising issue) with a; statistical
on
,
Arden Farms Pfd.
'
-Thursday
issue
.
H. H. Robertson
William D. Rlgge, Business Manager
i.
active trading interest in
;
William Dana Seibert, President
v
an
i/'l'.■:V-v..I/' ; C
'
i
Seibert,
We have
Long-Bell Lumber
i
BEekman 3-3341
Herbert
Kellogg Company
.
William B. Dana Company
Publishers
lichmskii
B. S.
CHRONICLE
FINANCIAL
.
591
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4202
158
safety
who
ask
obsolete
that
stocks
pleased with
to
us
and
bids.
our
STREET, »BW YOBS
Telephone:
WHitehall
4-6551
Other Offices:
1
Copyright
Company. •
•L Reentered
1943
William
by
B.
iliiIiWarvAnd Th® Stock Market
STRAUSS BROS.
Members
New
Gardens,- London, J3.C.,
32
Dana
Ybrk Security Dealers
Brdadway ;
Board of Tirade BIdg.
<
striking developments:.
jI
ij
^ ^1'.* The fall'of Mussolini under conditions which
Harrison 2075
DIgby 4-8640
two
TITLE Co.
indicate that Italy
CERTIFICATES
The brief period since our; last jInvestment Survey has seen
?
;
^1: ?: CHICAGO 4 v
NEW YORK 4
second-class matter Feb¬
Ass'n
1
ii
•
Teletype NY 1-832, 834*
ruary 25, 1942, at the post office at New;
2. A break in stock prices under a heavy volume of selling
York, N. Y., under the Act of March
which has already Tasted for three'days and is still in progress as
3, 1879.
this is being written. T
'
\; <&■——I
.—...
■ r - ... v.
I
Subscriptions in United States land
since
Posessions, $26.00 :per year; in Dominion
^ Because the two have! coincided the highest point reached
iof Canada, $27.50 per year;-South and)
the invasion of France in 1948. *
so exactly-, there is
a temptation
Central
America,
Spain,
Mexico
and;
\ 2. The market made little dis¬
to
Cuba, $29.50 per year; Great Britain,
generalize about the whole
tinction
between
"War"
and
Continental Europe (except Spain), Asia,
The National Security Traders matter as a "peace bre&k" and! to
Australia and Africa, $31.00 per year. -;
"Peace" stocks.
The following
Association announces that Carl base our own reactions on that
I NOTE—On account of the fluctuations
list of percentage declines will il¬
H. Chatters will be the speaker at generalization. > It seems to hie
as
will
Teletype CG; 129
be out of the war.
soon
■
NSTA: Municipal
Fofirii
To Hear Cart Chatters
•
:ln the rate of exchange, remittances for
foreign
subscriptions
and
advertise¬
ments must be made in New York funds;
,
Municipal Meeting to be held
the
in
Chicago on Aug. 20, during the
annual meeting in
Association's
Real
Our
Estate
for the past
*
twelve
that city.
Lawyers Mortgage
Company Certificates
arid Mortgage Company
Certificates
,
v
Call us for
-
quotations
WHitehall 4-6330
St, N.Y. 5
Teletype
NY
point:
dangerous
a
reasoning, from which to
1-2033
of the Federal Emergency
L. J. GOLDWATER & CO.
INC.
Members New York Security Dealers
39
President Confers
With Postwar Planners
di¬
rector of the Municipal Advisory
Council of Michigan, and served
as
City Auditor and Director of
Finance for the City of Flint. - Mr,
a
on
has
Chatters
been
the University
a
10%
"
" * ■•5%
"
6%
"
9%
"
8%
Federal
Water & Gas
Circular
request
on
J.F. Reilly & Co.
Members
York
New
NASD To Take SEG Unlisted
Decisions To
Ill Broadway,
Requests
The Executive
Bell
Dealers
Security
Assn.
New York, N. Y.
2-52H8
REctor
Court; Association Opposes New
at
lecturer
of Chicago and in
Teletype NY 1-1202
6%.
voted to appeal to the
the New York Curb Exchange
unlisted trading privileges for two public utility bond issues-, > The
collaboration with A. M. Hillhouse
Executive Committee has also decided to oppose new SEC applica¬
'Aug. 10 with his State1 Depart¬ and Irving Tenner.
ment advisers.
He
is
Editor
of
"Muninical tions of the New York CurbTo extend such privileges to six corporate
i.. Heading the group was Secre¬ Finance Magazine" and "Munici¬ common-stock issues, all of which are now traded actively in the
over-the counter market. The de-<^
tary of State Cordell Hull, while pal Finance News Letter."
i I;
X ■ President
Roosevelt held
postwar planning conference
Assn.'
Broadway, New York, N. Y.
Admin¬
istration of Public Works; was
QUOTED
Informations
Dow-Jones
the
which
-
Statistical
7%
Indus¬ Kennecott Copper
6%
"
declined 5%, the Skelly Oil
States and Canada, and is Secre¬ trial Average
"•: 10%
8%
Index
of
British
In-; Southern Pacific;
"
tary of the National Committee on Reuters
2%
Since
the Amer. Tel. & Tel.
"
Municipal Accounting.' ' He" was dustrials- ~ rose :: 2 %.
4%
Reuters Index usually fluctuates Consolidated Edison
consultant to the TVA on its rela¬
"
tions with the municipalities and about half as rapidly as the DowIn all of this list, no stocks show
cooperatives to which it was sell¬ Jones Index, it is fair to say that
from
British Stocks rose about as ag¬ any definite disadvantage
ing power; has served as consult¬
their status as "war stocks" and
ant
to
several
cities
on' their gressively as American Stocks de¬
none, except the Public Utilities,
financial problems; was a member clined.' Incidentally, the Reuters
(Continued on page 601)
i ,
Average on July 28, 1943 was at; ;♦
in
SOLD
-
CompUte
HAnover 2-8970
Anaconda Copper >_.i>.Off
Bethlehem Steel
"
of the Technical Board of Review
U" Members New York Stock Exchange
Bell
lustrate my
BOUGHT
,
—_
Newburger, Loeb & Co.
40 Wall
getting- at the genuine na¬
market deeline and is,
ture of this
therefore,
-
Officers Association of the United
Title
York
New
r.,
}
Chatters is well known in
Mr.
in:
years
from
interpretation is far
an
basis ! of Deere & Co.
operate. Standard Oil of N. J—
the field of municipal finance and My feeling is bolstered by several Toyo'? Cn
i
i • Atchison, ,Top. & S. Fe_at present is serving as executive actual facts:
1. During the three day period, General Motors
director of the Municipal Finance
J—_
Securities
has specialized
Department
such
that
of ALL COMPANIES and
REAL ESTATE SECURITIES
Systenfc Teletype, N. Y. 1-2488
Committee of the NASD has
of the SEC granting
courts decisions
Gisholt Machine Co.
Memorandum
on
Request
.
Executive Commit¬
in line with the policy of
the others attending were Under¬
cisions of .the
State
Sumner
Welles; Norman Davis, Chairman
,
tee
secretary
of
;
of
(
the, American Red
Isaiah Bowman, of
Johns Hopkins
planning.
;
fj.-
.
—b—
■
^
~
Anderson Opens In, L. A.
CSpecial to The' Financial Chronicle)
opened of¬
at 559 South Figueroa St. to
Withi
Witherspoon Bci
(Special to The Financial Chronicle)
LOS
H.
tor
ANGELES,
Troendle
CALIF.—Vic¬
has
become
general securities bus{iness. Associated with Mr. Ander¬
son will be Bruce Card, formerly
with Franklin Wulff & Co., Inc.,
and Morrison Bond Co., Ltd.
as¬
sociated with Witherspoon & Co.,
Inc., 215
Troendle
West Seventh St. .?• Mr.
formerly an officer
was
■
years.
many
.
H.J. Met! Joins
Adems-Fastnow Go.
(Special to The Financial Chronicle)
Attractive Possibilities
jf
vestors.
the contem¬
So far as is known,
plated appeal of'the SEC decisions
to the United States Circuit Court
| LOS ANGELES, CAL.
Moffett
J.
has
become
—
;r
Harry
affiliated
unlisted
offers
•
trading
them necessary or
Increase
(Continued on page 600)
in
Appliance
Est 1926
Est 1926
n
JTv
-
rioa,
niRIOD&LO.m
COrtlandt 7-6190
170 Broadway
,
Bell System Teletype NY 1-84
I
Johnstown Traction 4s, 1SS2
Colonial Utilities Common
Great American Industries
Greater New York Breweries
Berkeley-Carteret SV2S, 1951
Savoy Plaza 3-5s, 1956, W.S.
Frank C.Masteison & Co.
New
York
Curb
Exchange
NEW YORK 5
64 WALL. ST.
Teletype NY 1-1140
HAnover 2-0470
Users."
—Prentiss Brown.
Skenandoah Rayon
Company
Analysis
Chicago 6* Southern Airlines
LUCKHURST & CO.
Securily Dealers Ass'n
Tele. 1-1825
Coca
National Radiator
II
upon
61
N. Y. 4
t
Coca
'
Co.
Eastern Corporation
Bonds
Common
Preferred
Warrants
Cinchmati-"A".
:
Hoit.R§se§Trqster
Security Dealers Assn.
Teletype NY 1-1666-
t
New York.
Chicago.
St. Louis.
Los Angeles.
Bought
—
Sold — Quoted
Bought, Sold and Quoted.
Broadway, New York 6, N. Y.
Telephone BOwling Green 9-3565
"»'i>
Rock Bottlers, Inc.
Red
request
C. E. Unterberg &
Members New York
Cola Bottling Corp.
Coca
'
Master Tire & Rubber
of
of
Cola Bottling Corp. of
Cola Bottling Corp. ol
Cola Bottling Corp. of
Cola Bottling Corp.
Coca
Bank & Trust Co.
General Machinery Corp*
60 Broad St.
Bartgis Brothers
Jft
Sugar Rationing for Commercial
Coca
Public National
Bendix Home
Members N. Y.
Stromberg-Carlson
Members
,
,
and rights
aviation securities.
'request.,
.
privileges
to
appropriate in
.
Federal Water & Gas Company
attractive possibilities at with; Adams-Fastnow Company,
current levels according to an in¬ 215 West Seventh St., members of
Glv
teresting circular issued by J. F. the Los Angeles Stock Exchange. cation, also opposed by NASD, to i
Reilly & Co., Ill Broadway, New Mr. Moffett was previously with
sYork City.
Copies of this circular
Fairman &
Co., specializing in
may be had from the firm upon
;
common
Miller Tool & Mfg.
public trading activity in the se¬
curities to render the extension of
Appeals is the first such court
the public interest or for the pro¬
test to be made of such decisions.
tection of investors. The Curb has
The issues which are the basis for
not, in my opinion, made such a
the action are Central Power and'
showing in this case by a fair pre¬
Light 3%'s of 1969 and Kentucky
Utilities 4s of 1970.
Early last ponderance of the evidence, and
therefore I feel constrained to dis¬
month, the SEC, over the opposi¬
sent from the grant of the applition
of
NASD, authorized the
cations."'
:
Curb to extend unlisted trading
The latest applications, which
privileges to these issues. At the
NASD will oppose, seek to secure
same time, it denied a Curb appli¬
of
engage' in a
f
adopted
in dissenting from the majority in
under which all applica-.
the SEC decisions affecting Cen¬
tions of exchanges to extend un¬
tral Power and Light and Ken¬
listed trading, privileges to overtucky Utilities 4's, expressed the
the-counter issues are to be op¬
following opinion:
posed when the granting of such
:.i"I think it clear that the appli¬
privileges would, in the opinion of
cant Exchange (N. Y. Curb) has
NASD,.,be contrary to public in¬
the duty of proving that' there
terest and to the protection of in-,
exists
in
its vicinity sufficient
of G. Brashears & Co. with which
sell M. Anderson has
fices
Governors,
Board of
to
last year,
LOS ANGELES, CALIF.—Rus¬ he had been associated for
j;
the
Cross; Dr.
.University; and^Dr. Leo Pasvolsky, Special Assistant Secretary
of State in
charge of postwar
v.£<■
Victor Troendle 1$
are
Federal Screw Works
privileges
Kentucky Utilities 4V2's of 1955.
Commissioner Robert E. Healy,
extend unlisted trading
?
•
--
-
.
..
Established 1914
Members New York Security
.74 Trinity
Ptace
;
J.-.
.
Dealers Association
...
New York 6, N. Y.
CRAIGMYLE, PINNEY&C0.
Members
ONE
•«
-
New
York Stock Exchange
WALL STREET, NEW
Televhcne
YORK 5
WHitehall -4-5290
• -
V
"■
592
Thursday, August 12, 1943
I::
I tNEWARK
Firemen's Insurance Co.
Troster, Currie & Summers
74
of Newark
JUSli The Road
Association
Members New York Security Dealers
to
American Insurance Co.
I
(Newark) 1
Trinity Place, N. Y. 6—HA-2-2400—Teletype NY 1-376-377
Post-War Reconstruction
Federal Water & Gas
'"
Jacksonville Gas
I! Jersey Insurance Co.
Guide
for the Investor
V-of N. Y.
Northern Natural Gas
The market will
Republic Natural Gas
Wires
Private
Buffalo
to
»•
Cleveland
Detroit
-
-
Pittsburgh
ties
St. Louis
-
not
reflect the
to
The Government and
/tives arb planning
for
now
investors who
with
r.
pleased
are
in
us
:• N r..--r,
•
our
•'./ ••.
This booklet
aid
an
peacetime
a
Copies
and
consumer
,||:r
2-4383
TRADING MARKETS
,
Peoples Light & Power Pfd.
period
Puget Sound Power 4 Light Com. w.i.
United
Light & Railway Com.
w.
i.
capital goods.
BUCKLEY BROTHERS
request—Investment inquiries invited
on
V'"
3-3430
Phone—REctor
PHILADELPHIA
different
world demand for
York
to
industries, and lists leading com¬
panies that will be called upon to supply the
F. HUMMEL
MArket
New
economy.
estimates the conversion
%
'
POST-WAR
as
•;\
of
GEORGE
|
post-war world.
a
<■'Established 1891
18 Clinton St., Newark 2, N. J.
execu-•
thinking ahead and readjust¬
are
ing their portfolios to
Trading Department of
.'•••.>,'•5" i-
V
•
the association
to announce
|
to peace, i
far-seeing business
| Our study,; THE ROAD TO
RECONSTRUCTION was written
We
J. S. Rippel & Co.
wait for the end of hostili¬
country's transition
Members
Philadelphia Stock Exchange
Members New York Stock Exchange
«
J. S. Bache & Co.
RYAN-NlCHOLS|& ;CO;t|g|
NEW
LEADING
Underwriters and Distributors of Investment Securities
YORK STOCK EXCHANGE AND OTHER
STOCK
AND
j
COMMODITY
Walnut
>v-
Chicago
Bell
St.,Philadelphia 2, Pa.
Teletype
Phila. RIT 4488
'
—
PH 265
N. Y. DI
X
4-1527
EXCHANGES
36 Wall St., New York City
.
105 South La Salle Street,
1529
.
MEMBERS
PORTLAND, ORE.
Branch Offices in Principal Cities
Andover 1520
.
PORTLAND
and
;
BACK THE ATTACK-BUY WAR BONDS
NORTHWEST
NSTA
Pacific GoaU
It is indeed most
Secwutici>
'>>V-
;
/
";\y'
,
Inc.
Wyeth
i'lA
and sincere
HODSON& COMPANY,
i'?■
NEW YORK.
phia, to the list of members anxious to improve the financial status
of your Association by cooperating with the
Advertising Committee.
Al has in the past been one of the
outstanding producers for our
-und&ibtedly put the Philadelphia
class among the three
i'l"-!;
'Since 1893'
a
pleasing to add again this year our good friend
worker, A1 Tryder of H. T. Greenwood & Co., Philadel¬
yearbook and will
Co.
&
sofar
Broadway, New York
of
Financial
The
Commercial
Chronicle
is
con¬
Also Thomas W. Price of E. II.
Rollins
The
Board
Security
Holding Corp.
Bought
.*•
'-■['a
Sold
—
I'':'!-'I-J
|
-
Incorporated
63 Wall
Street
Bell
New York
5, N. Y.
Teletype NY 1-897
of
Directors
of
LOS
&
Hemphill,
Company;
Frank
McCandless has become
associated with Sutro
&
Co., Van
Nuys Building.
Mr. McCandless
was
formerly manager of the
trading department of Searl-Merrick Co., was with B. B. Robinson
& Co. and in the past was a part¬
in McCandless, Troyer & Co.
following
Retiring Directors: Fred Fox, P.
F.
Fox
&
Three
the
a
total
a
experience
Reed,
Inc.;
Hill,
Thompson
Summers,
in
are
Trading and
interested
Sales
well-established
Exchange
firm,
out-of-town
fice.
over
45
or
firm
in
in
opening
Department
Dealer
or
Stock
representing
a
New
for
York
assured.
address
5C,
For
Post
full
Office
Trinity Station, New York City.
26
man),
to many
is
Elmer
&
Co.;
of
Gratuity
Lally,; Hay den,
E.
K.
Robinson Miller &
Sheppard,
Co.
the
resenting
cooperating
Traders
It
Twin
Club.
;
as
well
as
a
Pres¬
ident, First Vice President, Sec¬
ond Vice
City
Bond
is
gratifying to report
production this year has hit a
all-time high, but many of
National's
nates
Committee, three Alter¬
and
two
Trustees
of
Gratuity
the
The
Fund.
lic
meeting.
as
All
to its first
are.,
pub¬
urged
make their wishes known.
Chronicle
to
York Corporation
special
Commercial
and
be
There is still time left to
'
COMMON
issued
secure
affiliates
have
.
to
forms
as
will
Analysis
Request
on
not
Aug. 23.
unity with ad¬
vertising representing membership
of; all of the' affiliates of the
Let's prove our
NSTA...-:
'eltason, Tenenbaum, Inc.
803
Harold B. Smith, Chairman
NSTA Advertising Committee
our
:'
Landreth
Bldg.
ST. LOUIS 2, MO.
Teletype—SL 486
Collin, Norton & Co.
new
up
contracts
L.
>
D. 240
30 Pine Street
the
to |
New York, N. Y.
NSTA Offers Ail-Out Aid
meeting in Chicago
20-21, when other matters
pertaining to the investment deal¬
In 3rd War Loan Drive
ers' important role in
Aug.
war
On behalf of the 2,000 members
of the National Security Traders
Association,
Frank
P.
Meyer,
Chairman of the War Bond Com¬
announces having gone on
record with the Treasury offering
the
ties
association's
and
full
complete facili¬
cooperation in the
Third
War
Loan
drive.
Continuing the policy fol¬
lowed
in
the
First
and
Second
War Loan
drives, when the NSTA
unhesitatingly
volunteered
its
paigns,
Mr.
Meyer
that there will be
association's program
full
be
winning the
thoroughly dis¬
mittee
in
addition
to
in
Affiliate
the
The
Executive
Of
NSTA
Council
National Security Traders
tion's
tion
organizations
throughout the country will be
given complete details of the pro¬
to
be
followed
with
the
tion Of the
Dallas
be
finally
the
Associ-
Dallas
Bond
Club
for
membership in the National Or¬
respective states, will
and announced at the
of
pleasure in announc¬
ing the acceptance of the applica¬
ganization.
up
System
Members St.
Teletype—SL 80
Louis Stock Exchange
S. Duncan Returns To N. Y.
V.
Duncan,
Vice-President
&
of
R.
Assistant
S.
Dickson
Co., Inc., who has been located
at
Charlotte
for
the
past
six
months, has returned to the New
York office, 30 Broad St., where
he will
resume
his former duties.
takes
War Finance Committees in their
drawn
509 OLIVE ST.
Bell
Sidney
Dallas Bond Club New
Co.
&
SAINT LOUIS
Chairman
Meyer, who is connected with the
First
of
Michigan Corporation,
Detroit, are Andrew L. Tackus,
Putman
&
Company, Hartford;
George V. Jackish, Harris Upham
&
Co., Minneapolis; Henry J.
Richter, Scherck, Richter & Co.,
St. Louis, and Ludwell A. Strader,
Scott Horner and Mason, Lynch¬
burg, Va.
September financing.
Plans now
under way, whereby the associa¬
affiliated
x5r/x
Members of the War Bond Com¬
to give the
support
also
cam¬
emphasized
let up in the
no
will
cussed.
success¬
ful culmination of those two
Nominating Committee will cedure
advise members
in the
ad
NSTA annual
President, Treasurer and Treasury
Secretary; four Delegates to the
National
an
The
Financial
.
services 100% toward the
It will be necessary to nominate
i
as
with the National Committee rep¬
forthcoming
Retiring Directors
particu¬
Box
Co.,
an
Of¬
Established clientele and Dealer
Contacts
lars
of
all
&
Troster,
Currie & Summers,
i
of
Aug. 26.tU'*-;'.
as
Corp.; Harry mittee,
Willis
three Directors
phases
of
Securities business, and presently
employed,
a
with
men
Co.; Walter Saunders,
Dominion Securities
Stone
years
Willi
vacancies
at the end of the fiscal year:
Fund:
Available
Mellin,
Murphy & Company.
The
occur
William
Beane;
Walter
ner
TRADING UNIT
tiger
(known
Blair, Allen & Company; Eugene
&
ST. LOUIS
close until
Noyes & Company; Philip Ackert,
Freeman
by placing
issue
of
the
Porter,
acting
190
your time to
ask someone you may be friendly
with to assist you and your
group
more
Minneapolis
ANGELES, CALIF.—Wil¬
liam W.
heimer Co., Kansas City,
s.
of
moments
B. Sorum of Allison-Williams Co.,
Stark, Merrill Lynch, Pierce, Fen-
is With Sntro & Co.
is
assisting on the
Eldridge Robinson of Baum, Bern-
Nominating
Committee,
which they feel is outstanding and
truly representative of their mem¬
bership:
K.
Association,
Coast with
few
Chairman of his local club. Kermit
lowing
ner
W. W. McCandless Now
Sons, President of the
a
the
Association
Traders
&
San Francisco Traders
New York has chosen the follow-
William
Frederic H. Hatch & Co.
done nothing. May I
again to all to reach for
phone and give your NSTA just
appeal
issue
cerned.
Amerex
Teletype P. D.
a
.'
-
Floor, Porteif Bldg.
PORTLAND, OREGON
a
and
Nominating Committee
Appointed By STANY
in
Tnvestment Securities
Tenth
the present
tising orders for the forthcoming
Members Los Angeles Stock Exchange
affiliate
Camp & Co., Inc.
highest in-^
the production of adver¬
as
NSTA
LOS ANGELES
165
'
SECURITIES
Advertising Notes
John
Bond
L.
The Directors of the
Club
are:
Canavan,
Rauscher,
Pierce and Co.; Jack
rett and Co.; J.
Schneider,
Garrett, Gar¬
Wesley Hickman,
Bernet
&
Hickman;
William R.
and
Newsom, Jr., Sanders
Newsom; Henry N. McCon-
nell, Crummer and Company, Di¬
and Secretary.
rector
psftfjw Wh^cuvMwuiuii m
iw.
Volume 158
WKWMWMS
«■
^u»juy|4fAimif»tii4»«un M
and.
XXXAILS^vXl
593
Defaulted Railroad Bonds
..
REORGANIZATION
4M
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4202 •*
Mltw
Railroad
'
;v •: -
-
.
Reorganization Securities
Aldred Investment Trust
41/2*, 1967
Inquiries Invited
British Columbia Power
r:
I:
MEMBERS
New York
New
York
Curb
Exchange
61
New York
Stock Exchange
New York
'
-
Baltimore Stock Exchange
Boston Stock Exchange 8 8
Sugar Exch.
Exchange
York
Produce
Exchange.
New
Salt -Lake
Winnipeg Grain Exchange
Chicago Board of Trade
Chicago Mercantile Exchange'
Commodity Exchange,
Railroad Securities
Inc.
30 BROAD ST.. NEW YORK
/•
4
,
Tele. NY 1-2972
There is no greater: stimulant to a sales organization than to have
ample supply of fresh, new, leads upon which they can work.
are encouraged to make calls on new prospects they
•
Unless salesmen
the lines of least resistance and continue in the
pathways until one bright day they wake up and find
out that the old prospects and customers are no longer productive.
When this happens it's usually too late to do some constructive clien¬
tele building. The time to build a clientele is when business is good
—not when it slumps.
7 •
It seems to us that present conditions offer an' excellent oppor¬
naturally
follow
Same well worn
price declines have been accentuated by, very thin markets on
! .he bid: side" rather than" by any «—
«
——
great selling pressure. • It is dificult to see how this new specu¬
will
attitude
lative
;
r
be
/ We
changed
the near term.
Nevertheless, -past history gives
ample evidence that specific de¬
velopments in individual reor¬
ganization proceedings can result
n substantial
price gains in the
generally
over
I
.
this
in
to security
Francisco issues with interest.
buyers.
view,
many
how to invest for income, an¬
alysis of portfolios^:and such subjects as "how to uncover security
bargains."
' *
x
,'"'"
," ' x*X '
These brochures should be printed in neat type and well pre¬
„
They should look important enough to create a good im¬
pression upon the recipient so that when he has finished reading hc_
is left with a favorable viewpoint of both the subject matter anc
pared.
the firm that wrote it.
in
the
month
or
so.
the
most
return card
a
or
newspaper
!
Situations Of Interest
Interesting Possibilities
Wells
tive
Corporation offers attrac¬
possibilities according to an
interesting memorandum prepared
Federal Machine
offer 'attractive'
cording
to
possibilities,
ac¬
& Co.,' 120
Reynolds
209 South Broadway, New York City, mem¬
bers of the New York Stock Ex¬
La Salle St., Chicago, 111., mem¬
Interesting basic reports
bers of the. New York and Chi¬ change.
cago Stock Exchanges.
Copies of upon the companies may be had
by "Cruttenden &' Co.,
this
circular
from
be had
may
Cruttenden & Co. upon
request.
from
Reynolds
Co.
&
upon
quest. XX'7.X4^: 7//7/7/x; ^ 7/xx//
,P
Guaranteed and
'£
Special Rails
Southern
Alabama Great
Beech Creek Railroad'
Railroad.
STROUD & CO.
INCORPORATED
123
120
Broadway
NEW
Des
Central 4s
1951
Moines
•
1935
& Fort Dodge 4s
year
terest
Recent
gain in cash
has
rise
$11,000,-
Tel.
.on,
-X
;
able
to" distribute
at
much cash this year as it
1942;'* The-
Scott &
City,
Kansas
Memphis bonds are
in the strongest
of the
YORK
Mclaughlin, baird & reuss
bonds.
7' Based on /the earnings segrega¬
formula devised some years
ago
and used in arriving at alloca¬
new securities under
tions of the
reorganization plan, the
Lien mortgage, including
IOC
the
titled to
:
Mass.
Teletype BS 259
needed
would
more
position and liqui¬
entire accumulated
for
A revised
more
original
was
only
than1 the
a
Commission plan which
rejected by the District Court
more
than
year ago.
a
The Dis¬
bonds. ~ The extent of
preference was put at $7,081.*000 new 1st Mortgage 4s and in
total
in interest and for re¬
In
trict
the
Court
rejected
the
grounds
Mortgage
the
revision this inequity will un¬
questionably be corrected.
Also, $6,506,170 of divisional
Prior Lien bonds would be enti¬ have been paid since the. original
tled to
approximately one and plan was formulated, and the atti-:
one-half years interest,; On the tude >of ;t,he Commission, in the
basis of the pledge of Fort Scott 1 '
(Continued from "page "593) X
and Prior Lien bonds, the Consoli¬
dated Mortgage 4V2S would be en¬
titled to receive approximately $65
any
tirement of underlying bonds.
per
a
distribution the individual
bond,
" ',7
x
the Final Report of the Special
submitted to the Court in
plan should provide for
treatment than the
liberal
cash
The
these
be
last year,
jT
distributions
about $1,250,000
cash distributed
aggregate distribution
an
$11,305,000.
of
;
•
.
/" ■ 7 -
.
draft
:
plan on
that the RFC and
RCC received preferential treat¬
ment at the expense of holders of
the Prior Lien and Consolidated
In addition to this near term
generally expected. > As
of Oct. 1, 1943 the total of unpaid prospect for substantial interest
interest will amount to $211 per payments,
it is expected that
bond.
Payment would involve an formulation of a new reorganiza¬
outlay of $10,025,243, including in- tion plan may not be far distant.
Stock Exchange
0425
CAP.
pledged behind
bonds
tion
such
background, most ob¬
believe that the company
in
request
148 State St., Boston,
New York 5, N. Y.
Teletype NY 1-897
the Consolidated Mortgage
more
or more.
did
on
Incorporated
bell
,
ago.
ing capital has increased
ihoilld"be
Special letter
Frederic H. Hatch & Co.
63 Wall Street
;
year-to-year
Now that
Members New York
Iowa
pronounced by
now.
Tax liabilities are also nat¬
urally heavier than they-were
twelve months ago but even at
that it is indicated that net work¬
Fort
'
5
YORK
far this year have
a
even
as
X
WALL STREET
Reorganization Bonds
interest, is
PHILADELPHIA
PH 296 and 297
the
east
72
1933
over-$13,500,000 compared with Prior
the like 1942 date and it is likely pledged bonds, would then be en¬
dation
South Broad Street
Teletype
so
'
Central 5s
Iowa
made interest payments
was
servers
V
& St. Louis 5s 1934
of
been
Van Tuyl & Abbe
1-2050
Minneapolis & St. Louis 4s 1949
Minneapolis & St. Louis 5» 1962
adversely
that
Leased Line Issues
(in reorganization)
of $6,500,000 face value of
it
1
and
& St. Louis 6s 1932
balance sheets show a
1
North Pennsylvania
/
-
NY
Minneapolis
With this
Railroad
Catawissa
Teletype:
Minneapolis
affect operations
during the balance of 1943. Finan¬
cial v position is much stronger
000
Pittsburgh, Bessemer & Lake Erie
Pittsburgh & Lake Erie - •; - ';x" •
i
re¬
STREET, NEW YORK 5
3-3450
will al¬
ahead of a year ago and cer¬
than
■
MINNEAPOLIS &
tainly even a quick end to hostili¬
ties in the European theatre could
not
.
This request may come
time in August and
Earnings
run
Products,..Inc., and
and Welder Co.
Struther$ XPurolator
Common stock of the
issues.
ST. LOUIS RAILROAD
underlying bonds at par, making
total cash distributions of roundly
;!
same
groups
roundly
$13,500,000
in addition paid off the prin¬
cipal
Specializing in
NEW
aggregating
and
Toronto
Earlier in the year
$20,000,000. X
.
1 WALL
certainly not be delayed be¬
September.
Last year the
yond
of
WHitehall
(last year there were early sum¬
mer
and early winter disbursenents.)
1-395
Montreal
Underlying Mortgage
/
agreed that only one interest re¬
quest would be made for 1943
:ome
Teletype NY
New York
of the next
course
bondholders'
various
:ompany
advertising can
be used effectively to secure replies.
The salesman should deliver
the message in person. He should also be ready to discuss the subject
covered in the brochure in an intelligent manner.
Of course, this is
only his introduction to the prospect and from here on it's up to him.
with
mail
ments
HAnover 2-0980
St., N. Y. 5
Bell
RAILWAY COMPANY
LEROY A. STRASBUR6ER & CO.
In
there is the pros¬
substantial interest pay¬
of
-,s
Descriptive circular available on request
che first place,
pect
values, peacetime portfolios, taxation,
WILLIAM
52
SEABOARD AIR LINE
Form
substantial concessions below
f'/x":
rail
men have recently been contem¬
plating the various St. Louis-San
If you have a good writer in your organization who knows
background material and can write about technical subjects in ar
interesting manner put him to work.
Some subjects that have been found to bring in a. ready response
of investor inquiries are: Inflation, new products and inventions, the
effect of contract termination and post-war adjustments on security
HART SMITH & CC
prevailing levels for coupon bonds
eral market trend.
With
In Registered
at
1957
supply several lots of
can
RAILROAD BONDS
8;
affected issues counter to the gen¬
his
Direct
5 Vis*
and
informative
tunity to create leads through the use of well prepared
bulletins upon timely " investment subjects of interest
Steep Rock Iron Mines Ltd.
rapidly developing peace psychology, aggravated most re¬
cently by the general withdrawal of Axis forces on the'Russian
-front and reports that the military leaders have taken over actual
.control, in .Germany, ;has induced a : highly nervous tone in the de¬
faulted rail market.
This nervousness has been characterized by,
The
„
'Leads Are The Basis For Increased Sales 7;:Xxx
an
Canadian Internat'l Paper
6s, 1949
|
'
Bell Teletype—NY 1-310
Montreal Lt., Ht. & Power
31/28, 1956/63/73
The Securities Salesman's Corner
*;
;;v'7 X'"'■ 7//
X;
:/
HAnover 2-6540
;
New York Mercantile Exchange
Chicago Stock Exchange
Philadelphia Stock Exchange Pittsburgh Stock Exchange
X
St. Bonis Stock Exch. (Assoc.)
City Stock Exchange
Exchange
New York 6
X
reZep/ione-i—DIgby 4-4933
Coffee 8s
Stock
York
Broadway
Cocoa Exchange
New York Cotton
X"
New
Members
/
41/4s, 1960
pflugfelder, bampton & rust
NEWBORG 6• CO.
Master has been
form practically identical to
.
New York,
Lackawanna &
Western Ry.
his
77/7
report, we feel that our study of the
STOCK
SEABOARD AIR LINE
BOND
BROKERAGE; SERVICE
Specializing in Railroad Securities
is
more
request.
;
NEW YORK 5
ONE WALL STREET
TEL.
TELETYPE NY
HANOVER 2-1355
1-1310
;X
timely than
ever.
Copies
gladly furnished upon
' _Vx-x//
1. h. rothchild & co.
X
/7X//.'X"x
'
/ /
; 1
■
specialists in rails 1
120 broadway
x
COrtlandt 7-0136
:
\
.
n. y. c. 5
~
Tele. NY 1-1293
Adams &. Peck
63 Wall Street,
BOwling Green 9-8120
Boston
New York 5
Tele. NY 1-724
Hartford
Philadelphia
■pXrr XX ■
{
J
>
c
) '
.
t
I
X
\:
8
X
THE COMMERCIAL & FINANCIAL
594
CHRONICLE;
'Thursday, August 12, 1943*
MIDDLEWESTERN
PUBLIC UTILITY
CHICAGO
INDUSTRIAL
Molded Products
;
BONDS
ACJULYN«®COMPANY
•INCORPORATED
New York
209 S. La Salle Street •
Pfd. &Com.
National Terminals
Tederal Water & Gas
j /■
1399
S. La Salle Street
CG 1200
9600
financing operation by Cook County, em¬
bracing the City of Chicago, which may amount to anywhere from
$8,000,000 to $10,000,000 and a possible refunding of the governmental
unit's entire existing bonded indebtedness were topics of interest in
local financial quarters last week.
v- Yy ■ ■/Yy 7y v:^v'YYy-y-^YY
The new financing operation is for the purpose of funding' into a
bond issue all unpaid bills and :*w
judgments of the county incurred* ernmental unit's new financing
prior to Dec. 1, 1942. The county - venture.^ The financing'.would be
judgments
unpaid bills, and
issuance of
in¬
the bonds then will be drafted for j curred prior to .Dec. 1, 1942, and
submission to the board of com¬ is designed to alleviate a rather
Circular
AIRCRAFT CORP'N
said
bond
HOWARD
issue.
The
COMMON STOCK
CO.
231 South "La Salle Street
Chicago 4, Illinois
Phone State 0101
Teletype CG 361
last
i
■
.
Y/
i-
1
.
,
'
^
v
• •„
"? -
;
j■ •;/;,Y.: -:YY
john j. o'brien
&C0.
■
.
y'--.--/
-■
•
Members o/
V
-
CHICAGO 4
Toronto
Phone
Andover
1430
Tele.
CG
156
j
& Co., 231 South La
jStr eet/; will send' latest available
[information on Howard Aircraft
Adams
Corporation Common Stock.
!
#
*
* YYYYYy'Y
Brailsford & Co., 208
;
South La
months traffic
seven
than 6%' to
from
was up more
100,905,468.passengers'
•
94,898,969
•months of 1942.
first
in
seven
'
y
Aplication has been: made to
open officially the Chicago Sub¬
Salle Street, have
available a re- way on October 1: This subway
comprehensive analysis of will be operated in* conjunction
Chicago, North Shore & Mil- with and by The Chicago Rapid
Scent
Transit Co.
It has been estimated
on
Liberty Baking Corporation $4.00
Stock
Preferred
[Cumulative
*
/
jSalle Street, have recent data
John
J.
*
v/
* Y Y
O'Brien
&
Y/vY;Y^i/:;/
Co.,
231
South La Salle Street, reports that.
*
.
.
.Yy..
.
-
.■
refunding of the entire ex¬
isting bonded indebtedness of the
county, reportedly being consid¬
ered by fiscal officials, would be
accomplished under terms of an
exchange offer, which would be
made to existing security holders.
This refunding operation would
follow the pattern of refinancing
now being undertaken by the City
of Philadelphia. The latter is of¬
fering to holders pi its bonds bear¬
ing interest rat^s ranging from
4%
to 5% an optional 1944-53
s
securities due 1958-75.
[data on Struthers Wells Corporaand these figures will be
target for many and severe criti¬ jtion
cisms..
Green in
Governor
per¬
mitting the funding bill to become
law charged the government unit
with "flagrant mismanagement."
"Cook
County is authorized by
to issue bonds to dis¬
charge certain indebtedness in¬
curred prior to Dec, 1, 1942,"- the
Governor said, .and addech .that
debts "have accumulated despite
repeated warnings to the Cook
County government that, it has
livdd beyond its income for many
yeats."''Y yY • ; /;v:y' Y// .v:^;Y( ///.. ■
this
-
'
Indianapolis
:
Salle St.
;
Iwhich they will send on request. Consoiidated Railway of Cuba,
county fiscal of- • desperate financial condition.
The county has had definite
week that the
Preferred/ listed on the New York:
financial
problems
in / recent
Stock Exchange, has
governmental unit might be pre¬
interesting
| Cruttenden & Co., 209 South La
pared within two or three weeks years* so far as current operations I Salle • Street, have compiled late possibilities, outlined in a recent
are concerned, and has been the
to issue a call for bids on a new
memorandum which is available
ficial
6-
So. La
A
missioners.
on
ADAMS
•Stock Exchanges
,
Chicago Recommendations
: An impending new
resolution authorizing
Send for
all principal exchanges ;
New, York
Chicago Brevities
;
FAROLt BROTHERS
•Member New York and principal
Exchange *
231 South LaSalle Street
j
CG
Stock
208
3
;■ Y
and
York
.
Incorporated
135
1520
New
Stock
currently is making a tabulation! accomplished under .terms of a |waukee R, R. CoM showing history
j of earriirigs and a future projec¬ that a 20% step up in passenger
of all unpaid bills and, when this ; bill recently passed by the Illinois
based on recent figures, revenue should result from the
list is finished, it is to be sub-: Legislature which Gov. Dwight H. tion
j Copies will be sent upon request. Subway - Elevated
combination1;
mitted to a firm of bond attor¬ Green permitted to become law !/.■;//■ " •' *'
*
VY/
YY'
which should materially increase
IV:,
//'i
■
; f;
neys,
which is to pass dm the without his signature. Tt; gives the
net operating profits.
• \
Caswell
Co., 120 South La
legality of the various claims. A county the authority to; fund all j
Doyle; OXonnor & Co.
Dearborn
Andover
Stock
Standard Silica
>
invited.
are
Distilling
Common
a
.
any
,
Members
Salle St.
CHICAGO
Tele. CG 146
Tel. Dearborn 9209
South La
company
on
Merchants
is
THOMSON & McKINNON
Y.
,
105
or
Inquiries
Income Notes 6s-50
v
and
Common
#yy&G oyy/I
Chicago 4
service.
industry
Milwaukee
Boston
Robbins & Myers,
•
\ Members of Chicago Stock Exchange
'
,
::v CHICAGO
;
greatly, expanded
complete
Ryan-Nichols
William A. Fuller & Co.
been
equipped to furnish investors with
DISTRIBUTING
COMMON STOCK
Y
■'
,YY;'
Y Y
!
has
UNDERWRITING
Corporation
Consolidated Cement
Research Department
TRADING
RAILROAD
MUNICIPAL i
Our
SECURITIES
■
bill
.
In the
sent
request.
on
Daniel
| latest data and quotations on
Chicago
and
Suburban
Bank
! Stocks.";':/;
j
/Y/Y.Y. i|;
!j:
■''>■/ : '
/
1;! Fred
South
Fairman
W.
:
,
Enyart, Van Camp & Co., 100
iWest Monroe Street, will furnish
1
y
request.
on
Co.,
&
208
Jackson
request
Oak
F. Rice & Co., 141 Wj
Boulevard, will send oh
descriptive circular on
Park,
*
Hi.;
Sewer
Revenue
Bonds and-
on general
obligation
East St. Louis, HI. and
Highland, Indiana.
Y /
Y/v -;/;/^/
^
* Y/YAY/Y Y YJ
bonds
of
Salle* Street will send
La
C. L. Schmidt & Co* 120 South
request late analysis of Inter- La Salle St„ has prepared recent
Aircraft and Engineering analyses of Central Electric &
i Corporation. This literature shows Telephone Co^ Common & Pre-/
i that the post-war possibilities of
ferred, and Reliance Steel Co.
: on
! state
On Dec. 1, 1942, the county had
Common & Preferred.
Copies are
Philadelphia set-up, the new obli¬ $4,899,483 : in -unpaid bills and i this pre-war Engineering organiWith its available on request.
v
/■'/>
gations' bear the same interest $3,463,497 of judgments, accord¬ | zBtion are outstanding.
*
*
*
Y^/
; present engineering staff number- I/"//■../
rates as the old up to the first call ing to the Civic
Federation, which
ling approximately 300, "no task in
Straus Securities Co., 135 South
date of the latter. Thereafter, the is regarded as the "watchdog"- of
i its war effort is unnecessarily deLa Salle Street, have compiled
new
securities bear '3%'"%.
•
local
governmental units. - The
This
judgments represent charges made ; layed and production is being very late information on United
proposed
refinancing
maintained 24 hours a day, 7 days Stock Yardis
Corpn, 70 cent Pre4
by the City of Chicago, against
by the county is likely to en¬
a week;
The Company is plan¬ ierred Stock and
the county for the - cost of operat¬
C. G. Conn, Ltd.,
counter stiff opposition, how¬
ning carefully for the post-war Common ' Stock. > These reports
ing the municipal court up to the
ever,
and
the
question
of
period and has in various stages will be sent on request.
end of
1938. - These
whether any such operation can
judgments
; y :41J ';
*
*
#
///v/..:,/Y'.-;;.;
development" a
number of
have been sold to insurance com¬ of
be
accomplished is open to
Vy
/.>■;'- :
' V-''.Y;
'
times, any one of which can show
doubt.
The
In addition, the city's
county has out-1 panies.
In view of developments during
an excellent return on the small
charges against the county for
-standing roundly $24,000,000 of
the
past
fortnight,
investors
municipal court costs ; have been stock capitalization of only 128,- everywhere are
bonds, of; which more
than
scrutinizing their
000 shares common stock.
Two
piling up at the rate of anywhere
$13,000,000 become callable by
holdings. In line with this trend*
from $350,000 to $400,000 annually items which appear to have un¬
Jan. 1, 1946.
In view of this
Thomson & McKinnon, in their
for years subsequent to 1938. The usual possibilities are a oar-cobfact, most financial men believe
"Review of the Week" have at¬
latter charges have not been re¬ ler which can be retailed at a
it would not be advantageous
tempted to appraise the inter¬
popular; price and a three piece
for * the county to
attempt a - duced to judgments. ;
- i
mediate market performance in
major refunding.
They
feel
Y
The total of all of the claims
portable washing machine to be the light of current
events, with
marketed under $50 through a
that it would be more judicious
outstanding against the county
an analysis of railroad
operations,:
to exercise options on as many
large chain store organization.
-thus aggregated" around
$10,inasmuch „as this
industry has
This machine is of light ipetal and
of the bonds as is possible each
900,000 as of. DecM.
Of the
been
considered
a
conspicuous*
plastic construction, is comprised
year and perhaps avoid entirely
f $4,899,483 of bills Unpaid as of
of
the
war-time'
of
an
elect r i c driven rotor, beneficiary
any refunding within the next
that date," the 1 cotfiity earlier
period.
"few years. The majority of the
wringer and top. The unit is de¬
?
([;
/this year
remitted >
200,000
Their "Weekly Bond Review",
mountable
and
can
county's bonds actually mature
easily be
from the proceeds of a block of
in 1951 and 1956.
handled by the housewife.. Fitting points out that, in.July, the Newj.
>1943 tax anticipation warrants.
new
•
Chicago Stock Exchange
Chicago Board of Trade
New York Curb
Exchange (Associate)
Street
231* So. La Salle
Y/y
Chicago 4
•
1
•
'
"
'
•
Tel.
Central
5775
Undencrllen-Broker*
Tele. CG 1660
Orer-tke-lounler Securities
-
-
"
.
'
„
>
^
-
'
-
•
•
C«W*UiM Wl»
Straus Securities Company
13S South La Salle
Telephone-AN Do* er 5700
Tetctype*OCO 650-651
Financing Authorized
While
this
refunding
move
under consideration faces stiff op¬
position,
,
no apparent major hur¬
dle stands in the way of the gov-
would
tion to
Liberty Baking Corp'n
$4.00 Cumulative Pfd.
Reliance Steel
COMMON
A
Pre-War
STOCK
Engineering
tien—Now at
Organize-
War
General Box Com.
FRED W. FAIRMAN & CO.
CASWELL
CO.
120 South La Salle Street
CHICAGO 3
Teletype CG 1122
Phone Central 5690
treasury,
208 SOUTH LA SALLE STREET
CHICAGO 4, ILLINOIS
Members
Chicago
Stock
Exchange
Chicago Board of Trade
Tel. RAfdolph 4068
Bell
Sys. Tele. CC 537
was
Marketed
chain store organization it should
amount
issue
pass
on
of
will
until
draft
to
the
do
the
not
so.
county's
be
ascer-j
attorneys
who.
resolution
•
bond
the various claims.
Opposition to Funding
The county for
some
greatest activity in bonds for that
month since 1936.
The;
permitted
York Stock Exchange enjoyed the
ing/ and / can compare favorably
With the
higher priced units.
-
-
time has
sought to fund the judgments rep¬
resenting the cost of operating the
muncipal court and has had the
support of civic organizations in
Com.
an
will
Engineering Corporation
SECURITIES
its
standard basement tub,
efficient job of wash¬
any
it does,
this
funding/; opera-
reimburse
will
Interstate Aircraft &
the
include
>
be
tainable
Analysis Qn Request
in
to
but it is not likely that it
bond
Late
like
amount
exact
REAL ESTATE
over
It is understood that the county
y
<
St.. Chicago, . Ill,
this regard.
It is felt that charg¬
ing the county with the costs of
the court is unwarranted, and that
costs were imposed< on the
these
county in 1931 without its knowl¬
edge. The question of giving the
<Continued on page 595)
in
volume
through
a
bond
The
July rail
average, 4J1.38, on July 24/
the highest since April 1937
and closed the month at 78.52.
A
produce a volume sufficient to section of their "Bond Review" is
use the capacity of the El Segunda devoted to European bonds
which/
in the light of peace
plant. :
prospects,
*
take on increasing significance.
,
i Leason & €0., 39 South La Salle
Street, have prepared a compre¬
hensive Brochure covering The
Chicago
Rapid
Mortgage
and
Transit Co.
First
Refunding
First
Bonds/ which is available
on re¬
Thomson & McKinnon will send
copy of either or both of the
reviews free upon request.
Ad¬
dress Thomson .& McKinnon, Sta¬
a
tistical
Salle
Library,
*
quest.
Chicago: Rapid Transit Co.
ported
that
passengers
it
carried
in July, 10.63% more
than the 12,715,813 carried by the
Elevated
System
in
ponding 1942 period.
the
corres¬
For the first
*
South
La
*
Zippin
re¬
14,670,000
231
Street, Chicago.
Salle
& Co./ 208 South La"
Street, again wishes to warn
holders
of
Mexican
Securities that
Government
August 31, 1943, is
the last date to register bonds
to
non-enemy ownership.
ther information on
request,
as
Fur¬
Voiume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4202
595
J
Howard Aircraft Co.
Trading Interest in:
Markets, in all
Central Electric &
Common
Struthers Wells Corporation
Telephone
Common Stock.'
"
issues
&
Preferred
Analysis
on
request
Consolidated Dearborn
,
CRUTTENDEN & CO.
C. L. Schmidt & Co.
Members New -York' Stock Exchange
'
•'
,,
39 So. La Salle St.
Established 1922
1
i\:"
<
Telephone
Dearborn 0500
120 South La Salle Street !'
i
CHICAGO 3
Teletype CG 993
Tel. Randolph 6960
CHICAGO 3:
■'
,
Ivneei.and & Co
;
biitct Private
<
Wires
209 South La Salle Street
Teletype.
Chicago 35
Tele. CG 878
,
'and Chicago Stock Exchange
,
141 W,
'
Cast and
Chicago 4,! Illinois
Reid W. Taylor Joins
Ryan-Nichols & Go. Mitchell Hntckins Go.
f CHICAGO,
JACKSON
ILL. — George F.
Hummel,, formerly with Hicks &
Price, now is a member of the
-trading department of Ryan-Nich¬
ols &. Co., 105 South La Salle St.
entered the
Hummel
ties
business in
securi¬
1928 with A. C.
:
-
1v
(Continued from
page
594)
-
;
.
Tele. CG 646, 641 & 642
:
Members
Chicago Stock Exchange
New York Curb Exchange (Assoc.)
.
The Road To Post-War
Reconslruction-Shidy
:
That
,
the
investment
commun¬
ity would' do well to turn its at-r
tention
now
to the conditions af¬
fecting securities by reason of the
of the war is
trend
a
conclusion
bffered by the firm of J. £>. Bache
& Co., 36 Wall Street, New York
City, members of the New York
Stock Exchange and other leading
national exchanges, in a
study
announced today under the title,
'The
Road
to
Post-War
Recon¬
struction."
According to the firm,
recognize the
forces that will be necessary for
World reconstruction and should
investors
take
should
into account greatly altered
circumstances that will follow the
Wah:'vI;::.,
■y,While supporting the Adminis¬
tration's warning against
com¬
placency resulting from the vic¬
tories of the Allies, the broker¬
age firm says "it is recognized
that • planning for " the post-war
period must go y forward vigor¬
ously."
y.yyy'
t "The Government itself,", says
the
study, "has been well aware
need, and has made avail¬
of this
able the studies of the Department
of Commerce and other Govern¬
ment
agencies. Trade associations
and private reseaTch institutes are
spending much of their energy
in drawing up schedules for the
post-war ■ world.
.y ^:yy y;> y ;y.f
*■
"The investor must also think in
terms
of
the
changed conditions
that will accompany the return to
peacetime activities. In his busi-
attitude
in
connection
with
his
none
too
It is
investments.
own
begin, planning invest¬
ment portfolios that take into ac¬
early
to
count the
return of the world
peaceful' political,
economic
trade conditions."
Consumer
and
y:
..
well
to
capital
goods will be needed to place the
as
liberated countries
a
of
as
Europe on
sound moral and business
which
would
basis,
indicate. that
the
general level of industrial output
in the United States should
con¬
MIDDLE WESTERN
SECURITIES
firm.■
=
v,V
print" is offered the in¬ parently the lesser of two evils.
consisting of; suggestions
y ■. r
Chicago Unit Defaults
for investment programs covering
The default by the Chicago
the*^objectives of fihe different
Board' bf Education on the cou¬
classes of security holders.,; •
;
pon due Aug. 1 on its outstand¬
The study ends with a number
ing issue- of $900,000 of refundof tables showing companies in
,
.
,
called
upon
demand
be
ing;"4|4:%. bonds, dated Feb. 1,
supply the huge
•1935, *and due Feb. I, 1955, was
to
after
the't
that
will
for
war
different
industries
r
is
estimated.
Copies of the study may be had
from J. S. Bache & Co. upon re¬
'Ai-V ^-'"y?
quest.
:■
;yyi-<
York Corp. Attractive
,
y
interesting situ¬
ation, according to a memoran¬
dum issued by Peltason, Tenenbaum, Inc., Landreth Building, St.
Louis, Mo. Copies of this memo¬
randum may be had upon request
an
ness^activities, the investor cannot
sit by, but must continue to give
■j from Peltason, Tenenbaum, Inc.
{
*
S
•
CG 972
the situation
1931, when the
of
to
Stocks
$2,300,-
the principal and interest
pay
y'/T''
.
Corporate Bonds
000-of educational fund bonds to
Municipal Bonds
on
1928 educational purposes tax an¬
off other 1928 and
Commodities
Listed & Unlisted
DANIEL F. RICE & CO.
do loiRd \irrlv... |
Moderation
1
S
S
S
S
S
some
.•/
Stock Exchange
York
Members New
and Chicago Board of
1929 tax
Trade
Jackson Blvd., Chicago
141 ,W.
CG, 1276
Teletype
anticipation warrants.
Of this
bond
issue, $2,713,000 was re¬
deemed, and the other $500,000
was refinanced in 1934 as a part
of
$5,500,000 refunding issue of
a
the board.
4%%
The latter issue bears
interest and matures Sept.
l, 1954.
y
r
,y,.,;;y''
.
Judge Jarecki ruled that
one-
eleventh of this $5,500,000 issue is
Public.
Utility
Industrial
Railroad
•
Municipal Issues
-
We Maintain Active Trading Markets
invalid, and the board is expected
a?
financial
did not
occur
inability
to
quarters
as
pay
the result of
interest,
the
whicl^-amounted to $21,375, but
ratherf.4 to ay decision handed
down by the Cook County court
! illegal.^;:-•
y y v :yy yi yy y
The issue was sold back in 1935
to refund obligations which orig¬
inally had been issued to redeem
1928 tax, anticipation warrants of
the board. Judge Edmund K. Jarecki ruled, in a taxpayer's suit
that .tax
deemed
>warrants could be re¬
only from the proceeds
years
issued.
for
His
followed the principle
handed, down by the Illinois Su¬
preme) Court in 1935' in the socalled Herman case.
The State
court ruled that bonds could not
decision'
|y i-'imin-
back
Board of Education issued
last
local
which .warrants were
Still Emgk to
dates
history
week! .This default, however,
1
of-taxes levied for the
$
S
V
Randolph 5686
History of Case
The
to default
be, issued to pay tax
warrants;
'V
y.
anticipation
Hoard of Education has an¬
nounced its intention to • appeal
,
Jarecki's
Sons
Incorporated
>
135
,
South La Salle Street,
CHICAGO 3
Traders Meeting
Patrick
,
B.
:
McGinnis,
CG 530
of
Direct
ing; of
Bampton
National
the
be
held .in
in
Chicago
the
on
McGinnis
Wires
Principal
;
To
Our
Offices
In
Cities Throughout
Country
the
.
will
Palmer. House
Aug. 20 and 21.
the
addressed
previous annual meeting of the
association, held in Chicago last
year, on the subject of the rail
security problem and how to
handle
Central 7549
(
security
Traders Association, which
Mr.
-
&. Rust,
address the annual meet¬
Pflugfelder,
will
-
*
yv-';r-yy'yv;
Chicago North Shore
& Milwaukee R. R. Co.
.
Comprehensive analysis
available on request,
Now Asself Kreimer & Co.
(Special to The Financial Cfhronicle)
CINCINNATI,
K.
the
O.
—
Fuller,- the firm
Coincident
of
Brailsford & Co.
Douglas
name
of Assel,
retirement
S.
208
-
La
Salle
Street
CHICAGO
Kreimer
Fuller, Provident
decision to the
Court. In the Bank Building, has been changed
meantime; bondholders plan to to Assel, Kreimer & Co.
J udge
Leading Over-Counter Securities
E. H. Rollins
these bonds, which
is payable Sept. 1.
with
The
in the
one-eleventh of the
on
next coupon on
holding that the bond issue was
Common stock of the York Cor¬
poration offers
;anOth%: subject of yinterest in
con¬
and
capital goods.
The
length of the conversion period of
sumer
231 S. La Salle St.
'
A "blue
industries
Listed and Unlisted
cation, notwithstanding these decisions, met the coupons on the
The feeling at this time,
however, is that the question of
the validity of the issue should
be adjudicated.
yr
issue.
ticipation warrants. Of. this issue,
prices for commodities at a cost
$1,400,000 became due and were
to the county and its taxpayers
paid in 1933 and l934. The bal¬
of about $600,000 a year.
This ance of $900,000 was replaced by
saving .in commodity purchases, the 4%% issue of 1955.
y
I
plus a saving in interest and the
Moreover,; the
board
issued
fact that this debt would probably
have to be funded sooner or later, $3,213,000 of a second series of
borids, dated Dec, 15, 1931> to pay
render enactment of this bill ap¬
vestor,
different
The Board of Edu-
~
tinue fairly high right through to
the end of the war in Europe, says
the
"This debt, or a large part of
it, also will be reduced to judg¬
ment, bearing, like the judgment
(for municipal court costs) al¬
ready outstanding, 5% interest.
Bonds can be • sold on! approxi¬
mately a 2% basis.
Moreover,
the bad credit position of the
county results in paying'excessive
,
Chicago Board of Trade
.
1955 invalid.
r
New Yorlt Stock Exchange
,
He is a. member of formerly for. many years with through excessive appropriations'
over: a period
of • years that iV
Hulburd, Warren & Chandler. '
the Chicago Bond Traders Club.
probably could not liquidate this
his every effort to producing as debt within nine or ten years,
much for the war as he is capable; even by the greatest economy and
at the same time, he must be the additional' financing and re¬
certain not to adopt a complacent lief which have been given it.
4
HICKS <r PRICE
-
Allyn & Co.
BLVD./CHICAGO
Tel. WAB. 8686 and Postal Telephone
West Coasts
county authority to fund its un- take some action of their own and
CHICAGO, ILL.—Reid. WJ Tay¬ paid bills, however, has met with probably will file, a; suit in one of
lor has become associated with definite resistance. On this point, the local courts to reduce the de¬
the Civic Federation recently had faulted coupon to a judgment.
Mitchell, Hutchins & ... Co., 231
this to/say:
b.y'
In previous years, Judge JaSouth La Salle .St., members of
"The funding of floating debt recki has• handed down similar
the New York!and.Chicago Stock
Exchanges and other leading na¬ is bad in principle. However, the decision^ in taxpayer cases hold¬
tional Exchanges.
Mr. Taylor was county is, jn such a predicament ing ;the $900,000 issue - of 4%s of
(Special to The Financial Chronicle)
INCORPORATED
;
,
BOARD OF TRADE BUILDING
to—
^
Mr.
Corp'n
"brochure
Leason 6- Co. Inc.
Phone Stale 6001
Interstate Co.
Securities Acceptance Corp'n
Common
Write /or our. late
Corp*n, Com.
Kansas City Public Service Co.
'
Reliance Steel Co., Com.
Rapid Transit Co.
:':V
Globe American
Preferred
&
CG 95
Tel. State 9868
Illinois' Supreme
*
1*.;
SERVING INVESTMENT DEALERS
i ^
i ^
FOREIGN
■
A
Z
SECURITIES
iS
BANK STOCKS
CHICAGO—SUBURBAN
ILLINOIS
We
specialize exclusively in under¬
writing and distribution of securi¬
ties, providing investment dealers
with
attractive issues
for their
clients.
£
Maintaining
partment
Bought
—
Sold
—>
Quoted
in
Bought
*
Sold
*
Quoted
^
no
them
of
BLENDED WHISKEY
i*
A
i
86
proof. 60% grain neutral spirits.
Schenley Distillers Corp., N. Y. C.
£>»»»»»»»»»»»»»»»*««««««««<<««««««<*
208
So.yLa. .Salle Street
Enyart, Van Camp 4 Co., Inc.
100
CHICAGO
RANDOLPH 4696
West Monroe Street-
2424
■
•
FLOYD ». CERF CO.
Exclusively
Wholesalers
and
Underwriters
120 South La Salle Street
CHICAGO
ANDover
retail de¬
way with dealers, but serve
exclusively. Correspondence
invited.
ZIPPIN & COMPANY
no
our own, we compete
Chicago
CG 965
r
THE COMMERCIAL, & FINANCIAL CHRONICLE
Koehring Co.
Johnson Service
.
,,
National Tool V
/Hamilton Mfg., Class A & Com.
^ -• r
225 EAST MASON ST.!
PHONES—Daly 5392.
!
" MILWAUKEE 2
State 0933
Chicago:
,
tion.
Teletype MI 488
.
.
<
;
Fuller Manufacturing, Com.
;
Expect
(
ing
an
^ment, foresight is one of the best signs of good management.
Not
once, not twice, but three times in recent years has the management
of Wisconsin Electric Power Co. presented its stockholders with
simists
,
///''//:•
.
..
One, a 35,000-kilo.equipment.
watt turbo-generator, was placed
in service at our Commerce Street
•j)lant on Dec. 31, 1941. The other,
Jan 80,000-kilowatt unit, is sched¬
uled for operation at
ington
j!
this
year.
jime when
cutting
In 1930—at
a
most corporations were
down
every
on
kind of
pxpense—the company was pro¬
Report
Strong Position
dition
of
in
.
assets
>12.6
was
with
4.25
year.
-Profits
cents
a
foiany factories
to
build
for
the
in
Milwaukee district. \ *
to
1
to
—
.
.
stocks
Dec.
31,
1942,
standing in smaller
on
Dec.
out¬
were
amounts than
31, 1938.
in
1, compared
the
share.
India
preceding
equal
were
to
v
■
:;/;':/.//:?//
The
-
J
and "
;
Wisconsin
Wis., have prepared
securities
,
case
indicates that the
originally
divisionals
allocated
ment. 'v.'.
\ In; the
representing
quick
information
investors
like
reference.
to
which
20%
of
debt
the
some
Commission.
revised
a
fixed mortgage
by the
Cash payments and
originally
more
liberal
allocation
of new 1st
Mortgage bonds would
to warrant higher prices
the Frisco bonds even in a
appear
for
generally unfavorable speculative
"ail'market.
7/,\
:,
them in
use
value
earnings in
;
figures
not¬
any
such
as
one
obtained
from
entire business.;;
Govern¬
York
The
Company.
f'/
attitudeVwith a
pointed declaration that Prime
monopoly/
*
on
w"/*
has
to
been
treated
freedom
like
•An
extra
share
to the leaders of
say
United Nations:
/
-
'May I ask at this point if
freedom
for
:
payable
•/
.1
people
fighting for
May
that
the
98.5%
fices
September
or
correct
98.5%
not
are
open
ques¬
added.
Co.
nights
war
a
the
Chicago
common
they feel offers
Stock
an
inr
Inter¬
on
an
stock,
thin air.
stocks
.
dissipated
Be that
it
as
I
mentioned
-
c
ertairi
Some of these got
down to. their
support levels,
recognized them by
-
jumping
others
are
still
some
points away. Now ! give
you
a
list
of
stocks
[/nore than
which show
support.: I therefor
32 with a.
stop at 31;-Canada
reasons right away i wTr
,
OA1/
*
/
-the word inflation is used
asr-,
a
Distillers Seagram 271/2 at 19;
the cause. If the truth
Rpanram 97IA with
wifh
vaguest of
,
20^ with stop
were'D,st,,lprs
known
more
bought
stocks have been
in
months
as
the
past
inflation
an
^ few
hedge
than for
any other reason.
That wouldn't have been so
bad if the stocks were not
which
are
a
stop at 26.
like
fast
Pepsi-Cola
of
it's
For those who
movers
at 46.
wide
.
is hard to
I
suggest
But because
swings it's stop
figure.. A specula¬
tive stop would be
44; Shell;
already reflecting this infla¬ .Union. Oil at
tion belief.
But because few 25; Sinclair
26 with
a
stop at
Oil at 11 with
Railroad Bonds
scarce or hard to
buy, more with a stop at 17% and Yel¬
people bought common stocks low Truck
16%. to 17 with a
at the recent
highs than at the
stop at 15./:/' • ■;
lows that preceded the
:
^ ad¬
vance.
''
More next
,
•
All
this,' however,
is
so
Copies
available
Established
dealers upon request.
Trading Markets in Wisconsin Securities!
!
;.
Thursday.
—Walter
::
.
Whyte
fThe views
expressed in this
article do not
necessarily at any
time coincide with
those of the
Chronicle. They are presented
those of the author
only.]
1856
Members
/'
New
Preferred
Wisconsin
.
Industrial Securities
Common Stocks
/Lake Superior District Power Co.
Wisconsin Electric Power Co.
Wisconsin Gas & Electric Co.
UNDERLYING
First Wisconsin
MILWAUKEE
Tel. Daly 3237
SECURITIES
Nat'I Bank
-
WISCONSIN
2,
*
Building
'
J
Tele. MI 592
Exchange
•
Kearney & Trecker Corp.
New
KoehringCo.
\
Chicago
Company
<* * •
.
Bell
1, W1SC.
Exchange,
Board
of
Cotton
other
/
Inc.
Trade
99
WALL
STREET
NEW YORK 5, N. Y.
Exchange
Exchanges
-
SUGAR
N.
Y. Cotton
Exchange Bldg.
NEW YORK 4,
THE WISCONSIN COMPANY
MILWAUKEE
Orleans
And
Wisconsin Bankshares
'
Cotton
\
Le Roi
-
Exchange
LAMBORN & CO.
Exchange
Curb
York
Commodity
Wisconsin Power & Light Co.
Telephone D*Iy 0525
Stock
York
New
Chain Belt Co.
Wisconsin Michigan Power Co.
GIVAN COMPANY
York
New
Stocks
Teletype MI 291 "•/
1
a
interested in a stop at 9%; United Airlines
at 26
with a
product (stock of a company
stop at 251^;
of shoes) until it becomes White Motors at
18% to 19
are
H. Hentz & Co.
Active
a
which :should
meet "support >at
figures.
*
may
attractive sit¬
of this memorandum
to
208
St., Chicago, 111.,
uation at the present time.
A;
to have
seems
into
Aircraft & Engineering Cor¬
poration
that
^
Co.,
Exchange, have prepared
state
keeping their of-,
evenings.
Salle
of
&
teresting memorandum
work¬
report is
Fairman
South La
revealed
more
W.
members
reported
tion,
"st:,* V'/
week
of
A few days of sharp
away,
breaks and the fear of infla¬
people1;
Interstate Aircraft
Situation Of Interest
"Fred
of them keeping their of¬
one
"Oh, what embarrassing
;
/';•/
we
questionnaire
ers., .The
fices
1; / to
Hugh W. Long, &
open
inquire if the. Atlantic Charter
extends to the people of Asia?'
/ tions," the Congresswoman
4c,'per
Aug. 16, 1943.
In last week's issue
dealer
of
Correction /
;
;
you
my
when you say you are
the freedom of all mankind?
V
>. V
Shares, Inc.
dividend
stock of record
•
a
itself because
I
•'
cerned.
so
con¬
Last
list
*
>
mean
-
the stock market is
as
)■
it's probably- a good suggest
buying them with the
thing alL around. The word proviso,
however, that stops
^ight,-for "inflation" has been
used to be
whose liberty?" she asked.
placed accordingly. Here
"No sophistry can conceal from explain so many things that
they are:
).-v •
the civilized world that in.
the it's application to stock mar¬
midst of a so-called world war for
ket practise today - is com¬
:
freedom, the most civilized,- proBethlehem Steel at 57 with
pletely without meaning. If
Western man of our
times, Pandit
a
stop at 56; Borg-Warner at
a stock
Nehru, has been clapped into
goes up today on the
*;
,
dividend of 5c per share declared
few weeks
/;/.;■•/ •;/ .•/;//:7 v/
"Let me ask you quite
flatly, for
freedom do we
the
Dividends
more
theoretical
whose
he dared to
j/''/':'// ''•'■■"/
a
pletely forgotten; at least
far
>
Minister Churchill regarded
politi¬
cal freedom as the "white man's
If you're interested in
well.
ago seems to have been com¬
"Journal-
<
.
than
look and act
*
following only
j;v\y.., .//
New
President's
the
597)
page
v/eek for the benefit of
be
Wisconsin
may
i
Affiliated Fund, Inc.—An extra
and
year.
Copies of this brochure
from
wholesome effect
a
American Business
of years, although there
may be
no
direct
connection
between
book
(Continued
payable Oct.-15, 1943.
ing changes in surplus trends or
growth in net worth over a period
.
British
She coupled her denunciation of
the
traitor
Investment Trusts
for
Company, because
investors
average
American
His real interest lies
London market.
ing
jfor almost
total
allowed
are
have
Included
turnings, dividends, market prices,
net
working capital, and book
value figures worked out on a
per
share basis.These book value
figures are given, according to
The Wisconsin
President
silence,/
American", of Aug. 10, the follow¬
was reported: Y
' V. 1/
to
be reallo¬
now
accounted
most attrac¬
a
tive brochure entitled "Financial
Briefs of Wisconsin
Corporations,"
most
censured
.
little
means
arguments
in the action of
say U. S. Steel
forget-scholarly market dis¬
on the New York Stock Ex¬
cussions and inflation.
The
change not in the movement stocks to buy at all times are
of British securities on -the the ones
which
Policy On India
patriots 'by. the
(Continued ompage 596) .,,/;
New Haven
have
Company, 110
Wisconsin Ave., Milwaukee,
East
trader.
market
Mrs. Luce spoke at a Town Hall
,# *
meeting in New York City com¬ •'
The word inflation which
memorating the first anniversary
of
the "imprisonment
of. Indian acquired such an enthusiastic
7
•
•
Railroad Securities
1
;"
'• :•
•
Wisconsin Corporations
I
to ' the
jail.
Financial Briefs Of
now
so
Roosevelt for his
75
"He
«
stories which cir¬
same
?
^
sumption of 10,596 BTU per kilo¬
watt hour of station output.
In
spite of recent improvements, com¬
pany's funded- debt and preferred
nothing?::; Or will it
stage an impressive ral¬
can
pull all analysis if you don't have the
examples out of the right stocks you might as well
limit your market activities
air to prove his point
just as
the case ; hardened bear can to
trading on paper. You
Representative
Clare
Boothe
Luce (Rep., Conn.) on
Aug. 9 de¬
nounced
British
policy, toward
reporting on the progress in cated, to the remaining bondholdgenerating facilities,
lacmues,
the
me
cumcomr®* U1®pptentialitiesareobvious
pany's 1942 annual report states when one. considers that the two
v
J
r
ltfms r»f
that its Port Washington Power items of the nreferentials plus the
preferential nlus
.
Will it turn dull
do
in the wool bull
Mrs. Luce Denounces
In
Station again bettered its previous
world record for economy of op¬
eration with an average coal con¬
and
sorts of
*
London
lia¬
current
to
the divisionals will,
i
'
nothing but
*
.
employment to
^equipment
and
men
see
the
current
bilities
not completed
jUntil November, 1935, and pro¬
imany
our
from here?
.
The annual report just issued
by Mosinee Paper Mills Company
shows the strongest financial con¬
was
vided continuous
that
course
market will also go
widely a few weeks juggle figures to demonstrate won't make any money, you
won't lose
ago when everybody was so his
any money, but
argument. But in the final
cheerful are again
going the analysis what happens in the you'll have a lot of fun.,.:
Annual
ceeding with the first unit of its
Port
Washington Power Plant.
jThis first unit
inferring of
own,
like
*
The
company's history.
Working capital increased $197,Port Wash¬ 561, and long-term indebtedness
./;/..
./
was reduced
$72,505.
The ratio
This Commerce Street addition
'Was begun in 1939.
our
theory that noth- j
who
culated
Reveals
the London market and
ween
i.
prices ahead.
■....
"examples of this kind of preparation for the future. The 1942 annual
Long before "Pearl Harbor" or-?
Jclers were placed for two import ' Mosinee
tant additions to our generating
in
r
•
succeeds
lower
:
report contained the following:
.
success' up to new
highs. Whether or ly? You can take any of these
the recent market break has
not the analogy is a good one questions and get plenty of
investbrought in a host of new pes¬ is beside the
point. The dyed arguments. But i,n the final
Utility
If management is one of the best safeguards behind
,
ancient
!
.
new upsurge
selected issues.
Under the
Three Examples Of
much
reasons
Says
Compo Shoe Mchy., Com. & Pfd. Northern Paper Mills, Com.
-
only difference
is that the stories of then have
,
■.*"/.'
Nekoosa-Edwards Paper, Com. I Central Elec. & Tel., Pfd..
Old Line Life
The
•
history,
The/'
why people buy of
been given- what show1 busi¬ sell stocks are
mysterious and
ness "calls
the "switcheroo."
many. Basically, of course, it
A few weeks ago they were is the desire to
make money
all bullish.
Today they are which brings people into the
all bearish.
But the subject market. But now we are faced
• /;. By WALTER WHYTE
matter, earnings, taxes, post¬ no longer with a
dangerous
Bearishness now
dominant. war outlook, is the same.
market but one which has al¬
Inflation
hedges forgotten.
ready undergone a severe de¬
Stocks here and there begin
Some attempts , have been cline and is now at the cross¬
to indicate potential good ac¬
made to draw analogies bet¬ roads. Will it go down further
CONTINUOUS INTEREST IN:
Froedtert Malting, Com. & Pfd. i Consol. Water Power & Paper
•
rounds.
Tomorrow's Markets
v
Thursday, August 12, 1943
NCmCAQO.
....
DETROIT
>-
N. Y.
Exports—Imports—Futures
PITTSBURGH
pENEYA, .SWITZERLAND
' / ' '.
/ / ; // /DIgby 4-2727/.. //
,
as
Volume 158
-Number' 4202
THE COMMERCIAL
& FINANCIAL
CHRONICLE
5?7
^llllllMllllllllIllllllllllIlllllllllllllllll^
Additional Comments Anenl Dr, Wright's
Articles On Inflation And Deflation
(Continued from page 590)
with a concept,of a 200 billion
dollar
an
cost and
war
this
LOW-PRICED
United
States
dollar
hour wages for
an
jners' wages,, in
From
New
as
LOW-PRICED COMMON
England
six hundred dollars for skilled
or
workers—all
of
,
doubles-the
which
about
.
ernment
on
of
purchases for
war
Prospectuses
request
120
INVESTORS
pur¬
TRUST
Avhole picture appears like an in¬
flated balloon—twice its normal
anchor until it
or
into
solid
a
bursts like
of
/,
=
Josiah
It is
"
"
Bailey
=
E.
of
objective business poli¬
rather than in the usual
manner,
•
;
E
BOSTON, MASS.
company, and almost every bank
in the country has a large invest¬
A.
Oklahoma
City,
Wright
has
Okla.;
appreciable
;
stated
would
;
ported into
are,
continue
as
basis
Nation
a
that
our
Atlantic
seaport has been built
of this high tariff,
and it is going to be a
desperate
fight to get it reduced or abol¬
by
up
country has
existed for 167 years we must
pay
ished.
But
.'
it
to
seems
clude
and
even
50
us
John
*
L.
ColIyer-y-'V
'
you
run
"f: honorably
do
this,
a
we
con¬
If
\
will receive widespread
penalty for the sale
their goods in our country.
<
Then,
just debts
our
like to
driven to the point of
we are
commendation from business men,
putting out fiat money or print¬
ing press money, then the wreck
generally;
of
'.•
/:.• ■' •
.;•
•,;/ ></.
j
ROBERT
?
WHITTAKER
great
Philadelphia
|;1
flation
Be
Comes, Deflation
Far
Behind"
is
If
Cannot
to
undoubtedly
wealth
and the
this
the
bonds
inflation
point
that
not
are
'
should
minor
that any correction at this time
I will
•
:
.
would
take
j
utterly
am
index
those who advocate inflation
way out of our troubles.
fare
to
as
a
The wel¬
depends
society
of
on
inflation.
citizenry
faced with
will
In
probably
a
this
on
debt
and
will
try
;to prevail upon the people to elim¬
inate
it
by unsound economic
principles,
do,
so
t
They
before."
This debt
have
tried
England
which
Cash
from
.rose
now
br
moted
failed
fully
other
>
•
which
the
terest
for
;
brokers
r
and
customers
accounts
firm
has
;•
■''/'•',<■:•,)
1
in-
and
)
A very interesting, presentation
of the subject:-and has been read
V..,.
.,,.
term
been
the
____
for
'
current
.
assets-
assets—--j—
.
Exchange memberships at
■i.
ket value
preciation
Prepaid
charges
1
__;
—
Liabilities
and
——_
Net
{. lateral
Payable .to
dealers
• -
'
87,221
23,120
to
open
loaned
receive .items
,
_____
war
and
600,000
4,990,195
cords
Note—Contingent
open
terms
mitments
trades
of
and
1,801,897
.
make
above
statement
no
market, values,
dividends.
oh
the
May 31,
on
account
cleared
because
issued
material
1943.
com¬
contracts
change
basis
own
sor
can
commis¬
underwriting
when
would
"
part
presentation.
taxes,
com¬
sundry
accounts
yet
re¬
funds,
a
associates. This broad "dissemina¬
tion
'>
•'
of
truth"
(Continued
cannot
on
help
page
but
596)
:
were
all,
there
is
constructive sales-
"Picking dates" has been
his
and
liabilities
not
delivery,
various
In de¬
as
unbiased,
performance
the
of
growing number of sponsors are
making it a practice to send re¬
prints of the Quarterly Invest¬
ment Trust Guage to their dealer
After
very
portant
$27,563,846
tAccrued
expenses,
the dealer interest in
as
comparing losses. But
an
extended
period
of
rising
prices invariably creates interest
in performance comparisons.
income
unclaimed
"Averages."
3
Custodian Funds
wise about
-
and
market
In
will.find little mention made
nothing
$21,973,650
Interest
investment
the years preceding
turning point of April, 1942,
literature.
■;
stamps,
by
managements general¬
performance, comparative or
otherwise, in mutual fund
liabili-
partners'
achieved
ance
authoritative
taxes and the
such
at
recognition of theservice
performed by "Barron's" as well
Speaking of the market brings
another currently spotlighted
subject among the mutual funds—
markets,
Of
of1
yet
liabilities
performance.
least equal service to the field,
standard
.'■' ;V':-
comparative performance.
has
it has proven that the perform¬
r
up
you
10.304
sold
not
current
receivable.
of
or-
failed
yet
_____________________
of
$8,790,000
accounts,
and
by
it
authoritative
-
pacing the Dow-Jones and other
to the market at prices still de¬
New Deal.
all
ly is of high quality, far out¬
affiliated
their
funds,
an
a
of
to the question of com¬
parative
company
It would give them a
perhaps final opportunity to get
the rapidly growing number of
inflation-conscious investors in¬
pressed
mutual
company
and
include
witnessed in
370,603
90,462
for
payable,
Worth—-
brokers
not
securities
;
"Revenue
sions
$27,563,846
against col..i—
other
on
securities
of
worth
Total
,
Money '• borrowed
investment
sponsors
the
.
deferred
—
sold
accounts
current
taxes
Net
94,174
receivables
;
account,
interest—______
firm
Reserve
193,037
____'______1— '
Unsecured
securities
an
Total
mar-
fixtures, less deand
alert
of
answer
extending
Quarterly |
Gauge
has'
to
representation
types
investment company field.
clining
270,331
$27,166,293
-J—•.
expenses
1,481,271
ac¬
1,752,577
52,532
————
Furniture and
cur-
1
joint
(■Miscellaneous
ac¬
—
current
to
Trust
expanded
provided
index
period of several months.
a
long-term performance
leading funds.. ' <
"Barron's"
broad
point, it would
correction
a
to¬
sales
of the
Since
And yet just such a develop¬
could well prove a boon
se-
purchased
I
held
partners'
and
commodity
Market value
;
,
with
has
•
Total
Total
*
,
S.
purchased in which the firm
;
345,728
"■Miscellaneous
_
President, Standard Oil Company
with much interest, i /.
U.
of
transactions—;
in
f
secured
missions
ofCalifornia
over
9,158,779
fully
on
"
.18,114,326
_____
firm
Fully
!
.
cash
counts,—
.
■
as
balances—
accounts
Equities
2)171,704
on
and
all
rent
j
ner.
;
longer
in¬
small extent
Investment
"short-term" character.
a
Should 'the
indicate
customers:
balances
cured
!
:
to
credit
Credit
$4,729,423
value of securities
counts
■
H. D. COLLIER
Captain in the
'
funds.'/),,
deliver -items.i.s-___
from
secured
Market
In order to take care of our debt
-
to
Payable
banks,
opbn accounts,
on
..
;
to be
i
<S>
Free
in
borrowed,
to
Condition
current cash transactions—
Fully secured joint accounts in
only
there will be many privations but
■in the end society will be the win¬
/
our
Army. >''
'
and
from
dealers
Receivable
tremendous
not
records
Claybaugh, of Blair F. This would
hardly be welcome to
Claybaugh & Co., has been pro¬ many people either in or out of
May 31, 1943
V '
commodity
clearing funds
securities
;
129
in
manufacture, but also in agricul¬
power,
three
or
within
no
parative,
bullish
dealers.
.
We have
two
of
sponsors
problems and
by the ex¬
cellent work being done by "Bar¬
ron's"
and by Arthur
Wiesenf
berger & Co. in publishing "com¬
clined to the view that the
longer
term index will not turn down
and that the shake-out will
prove
without
attitude
company
their
also to
uncomfortably close to the
However, our friend is in¬
"■'';
Financial
,
Receivable
potential debt of $300 billion is
ture.
of
hand
on
and
■«.
sterling in 1775 to about
£48 million sterling in 1817, Dur¬
ing the Napoleonic wars
1,100
million sterling was levied in the
United Kingdom.
\
Compared to those times, our
productive
index
mature
more
ward
recently from a
tion/we found that the short-term
remains
being brought about by
vestment
Returning
fortnight's vaca¬
Blair F.
worth
segregated
large but
seem
million
small.
"Statement
V
may
the
herewith
the
term
May 31,
1943, of Paine, Webber, Jackson & Curtis (established 1879), mem¬
bers of the New York Stock
Exchange and other principal stock and
commodity exchanges, with offices in Boston, New
York, Chicago and
other large cities in the United States:
- r
As at
contrast it with the public debt of
in¬
but is
Financial Statement Of Paine, Webber, Jackson
Assets-—
"
This is
have
this
developments.
still
yorh
■/.;
ment
•
to
report
we
who
interest in
Incorporated
the
■
line.
governments
Request
63 wall street—new
country should be
our
We give below the statement of financial condition
be
to/ those
an
turn bearish at this
Government
'under
gone
fairness
latest
the longer term
nor
V'Vv//:•.
dicator,
GROUP,
good general gov¬
one
on
DISTRIBUTORS
this
seems
the
debt of $300 billion.
{Politicians will take care to capir
italize
It
Prospectus
2rar
Incidentally,
Price Trend In-
refer¬
with
After
this war, as Dr. Wright maintains,
the
done
Claybaugh Now Captain
on
some
v
of
'elimination
far.
as yet neither the
has
evidenced
.
•
go
and
unsympathetic
go
dicator,' mentioned before in
.
.
I
not
;our own fStock
line.'",.
of
Government. Enough said.
par, then it
imagination to
foresee what might happen to the
sum-j
Every large insurance
maries of inflation and deflation.; country.
farsighted and. instructive.
|; Everyone
should pause,
mentally digest his historical
that
me
enough,
prosperity
have had in the past.'-
we
Dr. Wright's article "When In¬
|
Nation will be greater than
our
be
ernment in
has occurred to any other
nation,
because of our past history and
Robert L. Whittaker & Co.,
L.
to
A Claes of Group Securities, Inc.
belief
passing shot, I would index gave a down signal on July
gently suggest that some¬ 20.
At this writing the longer
to the Labor Union.
ence
the
support
as a
thing must
■
does
short-term
such
large
Government
our^
and pay
to make other countries
pay
in money of equal value.
The articles have done much to
stimulate our thinking, and I am
sure
to
take
to
years
would be better off if
we
:
more
or
tinued
;
though it should
pre¬
intermediate reaction.
an
SBut it
much
the
SHARES
r
"This, of course, does not
:{of late, but
that
me
STEEL
fol¬
as
column, has been rather wobbly
reason
great debt in money, worth as if we are to have a free
world, we
as the money was worth at
must have free trade, and that we
time the debt was incurred,; cannot
possibly have an excuse
our
ket up and then concluded
lows:
:
we are
composite parts of the World. The
the
on
country. If
our
to have a free
world, then we
must have free trade between the
going to run into
a
catastrophe.
I fully agree with
Dr; Wright, that if we are
going
to
)
some
We are now in a position in this
country when something must be
same
amount,
result.
soon
what
;
or. we
,
Our last mention of this indica¬
tor appeared in the issue of June
bonds, and 24,1943. Under the
heading, "Rea¬
down any sons For
Optimism," we listed the
than chaos forces that were
putting the mar¬
^ ~
'
remedy. '.■
done
Government
Another thing that we must do
serious thinking about is our
"tariff, which we have been in the
as.to what is habit of
levying on goods im¬
tersely
inflation and
causes
"the
'•!
*.
Some of our friends think this
column is no place for stock
market prognostication.
Others, have encouraged us in mentioning
time to time as they occur the
"signals" of our pet Stock
Price Trend
Indicator, a mechanical device not infallible but of
unique interest on the important count that its
owner has
made
money consistently in the stock market
during the years we have
known him. )
<♦>
—
—
—__—
if these bonds should go
After all, the cause of inflation
not difficult to v see and Dr.
is
in
ment
WALKER, President
The Tradesmens National Bank,
■
,
,
'
:
1
^ 1111111111111111111111111111111111111111111
■
helpful to have a sub¬
such as this ^ interpreted in
cies,
208 So. La Salle St., Chicago
E here from
DEVONSHIRE STREET
excellent and wise dis¬
an
cussion, and I am glad to have it.
Wright now,define "Sound
Currency."
\v:'
It is very
theoretical
W.
111
Let Dr.
The B. F. Goodrich Company
terms
A. W. SMITH & CO, Inc.
=
JOHN L. COLLYER, President
ject
E
DISTRIBUTORS:-
,
'•
10 Post Office Square, Boston
More About The Market
=
■
,
.
Broadway, New York 5
Investment Trusts
/
day bumps
reality and
bubble.
In the mean time, we are all
sawing wood to help win the war
and get it over as quickly as pos¬
sible.
210 W. 7 St, Los Angeles
request
on
request
•;
rudder
any
some
rock
a
Prospectus
upon
NATIONAL SECURITIES & RESEARCH CORPORATION
GENERAL
poses — and incidentally doubles
'the tax burden on the public. The
size—drifting without
SERIES
FIRST MUTUAL TRUST FUND
Prospectus
everything
the civilian population buys and
also doubles the price of every gun
and tank and
ship that the Gov¬
price
"INTERNATIONAL
STOCK SERIES
Fund
SERIES
Sbeur.iti^Ser{:
BOND SERIES
begin-
plants and
high as four
war
'monthly earnings
Senator
North Carolina
exaggerated concept calls for
INCOME
NATIONAL
HON. JOSIAH W. BAILEY
of
kind
BOND
SERIES
of
in
the
quoted
«
of
dates, almost
prove
of
pick
to
any
spon¬
that his particular
fund has outperformed almost any
other
fund. * In
the
past these
"date-picked"
resulted
fusion
in
and
comparisons
have
great deal of con¬
unproductive .effort..
a
Fortunately, this
era
is coming to^an end.
of popularity
,
investing their capital
,
.
as
follows:
CCDIf C
im¬
type
this
Permitted
an
Certificates of Participation in
Trust Funds
B-l, 2, 3 and 4 in bonds
Series
K-l, 2 in Preferred Stocks
Series
*
;'
-
S-l, 2,3, 4 in Common Stocks
,
Prospectus may be obtained from
local investment dealer or
.
your
The Keystone Corp. of Boston
50 CONGRESS
STREET,
BOSTON, MASS.
THE COMMERCIAL & FINANCIAL CHRONICLE
598
Municipal News & Notes
Firemen's Ins.
Manufacturers
Newark
Down 17% In 1942
American automobile Users con-
sumed
Bulletin
United States
Bequest
on
decrease of 17%
New
Members
York
Stock
Exchange
L20 BROADWAY,
leading exchangee
1 WALL ST.
DIgby
NEW YORK 5, N. Y.
Telephone:-BArclay 7-8500
Teletype—NY 1-1248-49
(L. A. Gibbs, Manager Trading Department)
4-2526
,
HEAD
Bank and Insurance Stocks
Total
State
Branched
—
recorder
stations
3
rural; roads
on
49
collec¬
State motor-vehicle receipts
Louis D. Brandeis, in addition to being a great
He had a keen comprehension of
lawyer, was also
figures and fully
A classical quotation he
sometimes used was; "Remember, O Stranger, Arithmetic is the first
of the sciences and the mother of safety."
At a time when the in¬
mathematician.
a
understood their significance and import.
,y■ Burlington Gardens, IV,. I [
64 New Bond Street, IV, I
•
TOTAL ASSETS
£108,171,956
of
less rules of humble
\
INSURANCE &
compared with
Taxes
over
arithmetic."
the
past
Bought
Analyzed
000
to Dealers
1934, which
after the
all
was
for
value
share,
common
per
adjustment
New York
preferred
Bank 1 of
Manhattan-——t
Bank
New
of
York——
if any.
Brooklyn
Trust
—
Chemical
B.
;
Exchange
Trust
Title
U.
S.
'Par
175.10
I
172.35
87.12
91.53
95.87
31.99
33.19
37.31
38.95
40.23
224.96
235.42
21.23
21.39
22.37
47.14
48.18
48.69
"86.46
90.20
92.20
1,182,08
1,197.21
1,220.44
301.88
307.72
313.94
317.17
22.35
20.74
38.79
36.89
22.26
25.84
29.50
33.14
67.72
80.60
81,03
84.06
-
stock
Results
39.87
43.86
46.50
The
47.26
36.32
22.53
15.08
13.47
12.89
1,485.24
1,538.04
1,543.04
1,504.78
1,507.30
changed from $10 to $50.
of the above figures re¬
veals that, with the exceptions of
Trying Trust and Title Guarantee
and Trust, the book value of each
bank stock has risen substantially
during the past eight years.
In
the main, this increase has been
achieved through the crediting of
/
tlncludes City Bank Farmers Trust.
1943,
was
occasioned
by
20%
a
increase in the number of shares
sound
hibit
expansion, the
would
be
above
difficult
to
>->
and
ex¬
beat.
second
eral
Works
together with capital and surplus,
comprise book value, or capital
funds, and belong to the stock¬
holders.
However, there have
been a few exceptions in certain
years.
For example, in the year
this year are
to
be
conservatively stated
Bank earnings
excellent, probably
in most instances.
better
even
than
the
statements
reveal, for the banks, as a whole,
believed to be charging off,
out of
earnings, to the fullest
are
practicable extent.
In 1938 Irving Trust
are
selling at a moderate pre¬
to book-value, and eleven
mium
transferred
stocks
at
a
discount
from
book
$0.67 from surplus to reserves, and value.
Standard and Poor's weekly in¬
charged $1.11 against surplus for
the reduction of the book value of dex of New York City bank stocks
its bank building.
Consequently, is currently at 94.6, compared
the
book
value of
its stock with the July 1934 average of
dropped from $22.35 in 1937 to 96.0. Meanwhile, the average in¬
$20.59 in 1938.
In the case of crease in book values of the nine¬
transfer of
1942 from undivided
a mortgage valuation
reserve, serves to explain a sim¬
ilar decline in book value.
The
United States Trust, a
teen
$41.40 in
profits to
Guarantee), from Dec. 31, 1934 to
June 30,1943, is 22.5%.
Title
drop in book value per share of
New
York
Guarantee's
clined
(exclusive
book
value
of
Title
has
de¬
65.0%, but its stock is not
included in
Trust, as of June 30; index.
stocks
Standard
and
,
v
'
K.B.E.,
;
.
a
2
Poor's
London, it offers the
29
special summary
East.
of
that
a
tion
of $14,538,000
period,, he: said,
The
bonded
June
11,
O'Conor
net
in
a
1939,
first
the
average
Weekday, 'debt
wheras before the ban it was con¬
investors,
'
these
'
.
i
OFFICES:
Berkeley Square, W. 1
throughout the t. 8.
>/
;
A.
NATIONAL BANK
of INDIA. LIMITED
Bankers
the
to
Kenya
Government
in
•
.
>
Colony and Uganda
Head Office: 26, Bishopsgate,
'London, E. C.
V
Branches in India, Burma. Ceylon, Kenya
Colony and Aden ana Zanzibar
7
Subscribe J Capital-..>£4,000,000
Paid-Up Capital______£2,000,000
Reserve
The
\'i
Bank
Fund^
£2,200,000
conducts
description of
banking and exchange business > ^
every
Trusteeships
and Executorships
b;f':also'undertaken'
' v/i'V;
NATIONAL BANK
reduc¬
of EGYPT
5-year;
Head
when
complete
to
THreadneedle Street, E. C.
47
such
indebtedness
most
interested in
Agency, arrangements with Banks
,
was
With over
Australia, in
service
travellers
LONDON
an¬
This
banking
and
countries;.-.
those from dealers' licenses,
nounced.
all States of
Fiji, Papua and New Guinea,
efficient
traders
on1
Office
Cairo
Commercial Register No.
;
Cairo
l
Governor,
took
office:
FULLY PAID CAPITAL
May 20 is that Sunday amounted to
$48,157,000.
Underdeclined well below
tjie State's Constitution no State
RESERVE FUND
t
.
.
,
£3,000,000
£3,000,000'
'
may
be
created
for
more'
y-'
-•
tjhan fifteen years and must be re-'
siderably higher, the Roads Ad¬ Hred in that period..
r
f
ministration said.
The first ban,
:
The total bonds Issued during
enforced from January 7 to March
the past four and a half years
3, produced the same result.
;
6
and
LONDON AGENCY
7
■
King William Street, E. C.
:
.
The
Public Roads
Memorial Day
1937, noticeable in
receipts,
in
and
has
ban
Currently, the above twenty
thus in¬ bank stocks are selling on aver¬
creasing book value, as follows: age at approximately 92% of June
Bank of New York, $28.83; Chase, 30th book value.
The high stock
$6.80; Manufacturer's Trust, $6.07 is First National, with a radio of
and New York Trust, $10.00. These 1.22 times book
value, and the low
transfers ' explain the Unusually stock is Title Guarantee & Trust
at 0.40 of book value. Nine stocks
large jump in book values be¬
to surplus,
tween 1934 and
Manager
and
Maryland's Bonded DebtM.1
Cut $14,538,000
j
non-essen¬
The most conspicuous effect of
the non-essential driving ban ef¬
1936 four banks transferred funds
the tabulation.
on
of traffic records in the
from
reserves
ban
Administra¬
;; tion summary of traffic under the
\
'
certificates, of title,
fines and penalties, totaled $52,832,000 in 1942, compared With
$73,130,000 In 1941, and $65,407,
;;
Agency said Aug.
announcing
fective
consid¬
branches
870
Pleasure
Of
Roads Administration of the Fed¬
traffic
ered
30th
—£150,939,354
and largest bank in Australasia.
-
values of these banks
undistributed profits to the "un¬
divided profits" account, which,
•
George Street, SYDNEY
Office:
New Zealand,
driving, like the first, has
Bonded
indebtedness
of
the!
proved highly effective in elimi¬
•State of Maryland was reduced:
nating
the
unnecessary' travel to
$33,619,000 at the close'of the
that had not already vanished un¬
der gasoline rationing, the Public gate's fiscal . year on June 30,
Governor
O' Co n o r
has
Furthermore, the published book
are
8,780,000
£23,710,000 •1
The Bank of New South Wales is the oldest
and
Miscellaneous
as
tial
in
from 500,000 to 600,000.
As
a
picture of steady
General
Head
;■
6,150,000
SIR ALFRED DAVIDSON,
permits,
Driving Ban
y,
83.50
Trust
more.
40.48
33.83
&
or
Tax Refunds in 1942 were made
21.07
20.98
39.39
'
34.71
..
3 942
other states in this area
1,230.28
26.25
Liability of Prop.
Aggregate
Assets
Sept./ 1941
in
;
,
.
239.48
20.40
21.56
occurred
Fund
v;?; yy •• y g-v:
•
40.64
216.49
:
Reserva
1,651,000,000 gallons for the
Nation as a whole, compared with
000 in 1940.
1,405,800,000 gallons the preceding
;
^
year.
Tax exemptions increased
State motor-carrier tax receipts
in 1942 to 2,273,700,000 gallons,
amounted to $21,896,000 in 1942,!
compared with 1,276,500,000 in Compared with
$20,576,000 in 1941,1
1941.
;yy: .-v.,, and
$17,913,000 in
;j
33.84
!
declines
;:
£8,780,000
Reserve
1938 and in the three years 193133.
Receipts did not surpass the
on„
96.42
31.31
:
■
1
Trust
value of
174.45
169.15
296.99
i-——.
City
Trust..
A study
49.01
992.18
L——
Guarantee
46.07
44.07
National
Public
353.60
21.28
—
York
$24.54
348.55
18.07
Irving Trust —.—
Manufacturers trust
tNational
$24.28
335.80
41.50
Guaranty Trust; -i—
New
$23.44
34.05
-—w-——;
National
$22.93
322.88
43.37
Paid-Up Capital
trailer, and motorcycle
registrations produced the only
increases in receipts in 1942. For
17 to
declines of
had reductions of 18%
6-30-1943
12-31-1942
,
Previous
'"I,-x
^ESTABLISHED 1817) '
„
consecutive
494,000.
there Were smaller decreases.
12-31-1940
;
$400,000,000
four
1941, respectively, they
In the area rationed begin- ; were:- Busses
$5,915,000 and $4,ning December 31, 1942, Mis-5 232,000, ; trailers $15,282,000 and
souri, Montana, New Mexico,
$14,989,000, and motorcycles $559,Oklahoma/ and Wyoming also j 000 and $479,000.
:>
In the
19.02
T.—
&
Manufacturer's
SHARE
40.77
for
Bus,
31% for the year.
The only bank in the list
is
BM&OF
years, as follows:
1942, $448,968,000; 1941, $490,666,000; 1940,
$439,178,000; and 1939, $412,-
where
States
seaboard
1942, reported
L. A. 280
209.21
T.——
&
B.
-
78.58
*
Commercial, National
Continental
»
22.85
——
National
PER
34.81
U
Hanover
San Francisco
-
"j
than
more
annually
j
per
'' 1 '
Eastern
12-31-1937
v
;
gasoline rationing began May 15,
Trust Company.
164.92
Bankers Trust
Central
Chicago
-
outstanding
after
271.64
,
taled
;
i
ex-
New Zealand
NEW SOUTH WALES1
greatest decrease in gaso¬ 1930 total
until 1936, however.
consumption,
based
on
Receipts * passed the $200,000,amount taxed, was reported by
000 figure in 1924 the $300,000,000
New Hampshire, with 31% fewer
mark in 1927, and $400,000,000 in
gallons in 1942 than in 1941. 1939.
•
today has preferred stock
which
is
$22.72
-
tax
gasoline
average
■,/V
/■;.
t
line
Orders solioited.
TELETYPE L. A. 279
stock
12-31-1934
1941, are
receipts.
after completing
Australia and
compilation of State'
Receipts consist largely of' 1
registration fees and have to¬
The
C. T.)
to 5 p. m. (P.
Seattle
BOOK VALUE
First
Brokers.
&
m.
the first full year
book
The
total
from
-.-
hank; Ltd.
Deacon's
Glyn Mills A Co,
■I
use
amounting to $63,264,000 in 1942
and $57,214,000 in
lon.
Service
210 West 7th St.. Xos Angeles
PRIVATE WIRES
bank moratorium.
the
cases
stated
Empire
Compared
-
CALIFORNIA
OF
The accompany¬
1933
non-highway
for
ranged from 2 to 7 cents per gal¬
Butler-Huff & Co.
ing tabulation starts with the year
Corn
a.
invited.
Inquiries
Furthermore, it will assist him in
problem of selection
and
Chase
Reviewed
-
Trading daily 7
eight
the
diversification.
included, but
1941—are
in
1942, the same as for the pre- j
vious year.
Rates of State taxes:
Quoted
-
Special Bulletin and Booklet
courage him and much that will
aid
his
sense
of
perspective.
In
Sold
-
Associated Banks:.
.
.
Williams
announced
annual
reports.
in
he will find much to en¬
years,
i ts
line—$948,000 in 1942 and $701,-
y
BANK STOCKS
If the investor in bank stocks
apply the "Brandeis method"
to a study of the book values of
stocks
has
aviation gaso¬
on
gallon for all states was 3.99 cents
will
bank
dealer's
$845,803,000
for
1942,
$958,013,000 in
gated
1941.
eluded
ignored the "relent¬
about;
than in any other previous
year,
the Public Roads Administration
through an astute analysis of their
published figures and the discern¬
ment of the trend revealed there¬
never
were
9% less than in 1941 but greater
refunds
He
1942
license
vesting public and Wall Street were not as statistics conscious as
they are today, he prophesied the»>
failure
of
companies
merely
in.
$448,968,000 in
fees, fines and penalties aggre¬
By E. A. VAN DEUSEN
Smithfield, E. C. l
Charing Ctoss,S; W: I
,
gas-tax
fees,
spection
'
Bishopsgate, E. C. 2
8 West
in 11 northeastern States, 16% on
tions, plus receipts such as. in¬
Bank Stocks
throughout Scotland
LONDON OFFICES:
.
This Week
OFFICE—Edinburgh
1
Saturdays, and 8% on weekdays.
Fifty-One percent decline on
The 1942 total on which gaso¬
Sundays: at 17 toll facilities in the
line taxes were levied was four
Northeast, 22% on Saturdays, and
billion gallons less than in the
11% on weekdays.
^
preceding year, according to. re¬
State Motor Vehicle Revenues
ports of State agencies to the
Roads Administration; ^;
Lower; In 1942 /
"
Agency showed.
Ben
NEW YORK 5
Telephone
under 1941, gas¬
piled by the Public Roads Admin¬
istration of the N Federal Works
Exchange
Stock
York
Incorporated by Royal Charter 1727
.Forty-two percent decline on
Sundays at 105 automatic traffic-
oline tax collections records com¬
Laird, Bissell & Meeds
New
hibited.
gallons of gasoline during 1942, a
Guarantee Co.
and other
billion
20
nearly
Royal Bank of Scotland
driving ban during the last 11
days of May, compared with the
first 20 days of the month when
non-essential driving was not pro¬
Gasoline Consumption
Trust Co.
Federal Ins.
Members
Thursday, August 12, 1943
shows
these
results
on
the
-
same
period, the
From 1935
in
all
principal Towns
,:
EGYPT
j amounted to $6,596,000, against
| total bonds redeemed of $21,'a 134,000 in the
Branches
and
the
the
.
in
.
SUDAN
Situation Of Interest
;
'
The 5% Cumulative Preferred
to 1938 a debt of $19,109,000 was ! Stock of Illinois Iowa Power Com¬
Eighty-two percent less traffic
created. From 1931 to 1934, $14,pany offers interesting possibilir
was recorded at 78 points on rural
1382,000 worth Of State bonds i ties at the present time according
roads in 11
Governor explained.
holiday in 1943:
I
-
northeastern
States, * were soldto a memorandum on the situation
Day
contained in the current issue of
1941.
Governor O'Conor has promised
Traffic during the 1942
"The Preferred Stock Guide" is¬
holiday was 57% under that in to liquidate the State's bonded in-'
sued, by G. A. Saxton h Co., Inc'.,
1941.
;
;'V
debtedness to a point where real 70 Pine Street, New York City,
Traffic on the Fleetwood Via¬
estate taxes, which are pledged Copies of the "Guide*" which also
contains comparative figures an
duct, Westchester County, N. Y.,
on the debt, can be eliminated en¬
toll facility which is restricted
both preferred and common pub¬
tirely.'-,.
V. lic utility stocks may be had from
to passenger ears, was
94% be- ;
compared
with
Memorial
low that of Memorial Day 1941.
The 1942 volume was
68% less
than that in 1941.
For
the, Merritt Parkway
in
Connecticut, which also is re¬
stricted to passenger cars, traf¬
on
Memorial Day in 1943
fic
and 1942
was
93% and 71%, re¬
spectively, below that
Traffic
response
showed
to
the
G. A; Saxton & Co. on
•
In 1941,
Gisholt Co.
Gisholt Machine
attractive
offers
an
prepared by Her-
& Co., 170 Broadway/ New
The
Coca-Cola Bottling
tained
& Co.
Co. of
New York, Inc., is the subject of
interesting study prepared by
Hoit/ Rose & Troster, 74 Trinity
Place, New York City. Copies of
upon request from Herzog this study may be had from the
York City,
following
;
Coca-Cola Bottling Of N.
Situation Of Interest
Copies of this inter¬
ah
esting memorandum may be ob¬
non-essential
the
Co.
situation, according to
a memorandum
zog
request^
Interesting
firm upon request.
Volume 158
Number
THE COMMERCIAL & FINANCIAL CHRONICLE
4202
Bank Deposits After The War
ment
debt.
required against
growing deposits. It is interesting
A.
reserves
member banks of the Federal Re¬
wdr
the
000
reserves
despite a reduction in percentage
requirements during this period.
Moreover, • the
Federal
a
Reserve
total of
from $200,000,000,to $300,000,000,000.
It seems
range
;
.
ment of the
effect
their
holdings during the
and a half years. / It is
Government
debt
to
reduction in bank depos¬
a
expected that the Federal Reserve
its,,; such payment must be in.
sound, hard money rather than in
Banks
fiat
will
further
make
chases in the open market
pur¬
Should
money.;..
mis¬
some
guided :"Pfogressive" succeed
essary to provide the cash needed
in
persuading ' the
as nec¬
to
Government
for; reserves
against the deposits revalue the; gold stock of, the
which will grow still further as Treasury upward and pay off the
the Government continues to bor¬
from banks.
row
With'these comments
with
debt
written
!
f
•
*
the
on
"profit"; thereby
•
the
-
books
of
the
Treasury, there would be no re¬
ground, let us now consider what duction in bank deposits. In fact,
is likely to happen to deposits to the extent that securities held
when
the
is
war
as a
back¬
the' by the
In
over.
place,
non-bank public
thus
are
meet
part
of the debt is owned by corpora¬
and
business firms which
surplus
funds
not
a
needed.
It is quite possible that
of these firms will have a
many
need for such funds after the
and will
want to
convert the
curities into cash.
Thus, it
in
se¬
not
be
transferring
share of the Government debt to
the
deposits
by
firm of
Van
Cleef, " Jordan' & 'Treasury payment of its debt, such
Wood, in a recent address to the payment • • must; be • made from
Virginia Bankers Association, as taxes collected from Tom, Dick
reported in these columns in June. and Harry. ; As Tom, Dick and
Mr.
Wood
estimates
that
Harry;
by the
Treasury,*
have borrowed
debits
an
additional $46,-
their
pay
end of 1945 the Government will
the
deposits
000,000,000 from the banks and
that banklrig deposits will' there¬
fore increase* from the level of
As
approximately $88,000,000,000
the
beginning of this; year
at
vestments.
to
the
the
credits
and
cash.
Treasury pays." off
maturing securities,
bank's
banks
to the
system
taxes
banking
debit
cash
investment
the
and credit
this
By
the
both
process
account
in¬
and
the
inflated deposits are written down?
about 50%. This would appear to p. It would seem reasonable, how-;
be a conservative assumption, in ever, pot to expect that sufficient
$134,000,000,000,
increase
an
of
;
view of the fact that bank hold¬ ;
taxes can -be collected .from Tom,
ings of Government securities in¬ Dick and Harry to effect any ma¬
creased by $15,000,000,000 in the terial reduction in the Treasury
fast half of 1942 and total deposits j debt soon after the war is over—
increased
by 416,600,000,000 v in especially if, as seems quite pos^
the same six month period, before sible, Tom, or Dick, or Harry, or
all three, -be without a job and
the Government was borrowing
without an income.
on the scale it is
today. '• ;
.
,
(
Another possible means of writ¬
But whatever the level of bank
deposits will be at the end of the
ing down
inflated bank
the level is generally expect¬
ed to be considerably higher than
would
for
war,
i>
The question on which there
now.
is not such
or
a
general agreement—
conclusion, as: yet—is
will
happen to
deposits
even
what
when the
To
is
war
study
'
over.
this
question, one
must first realize that, since these
deposits arise principally from the
increase in the holdings of Gov¬
ernment .securities,
the deposits
will not'decline materially until
the banks decrease their holdings
of Governments. The familiar
try
of debit to
credit
to
versed.
•
deposits
and
in
those
written
be
must
There must be
deposits
ments,
investments
a
and
re¬
debit to
credit to
a
order
en¬
invest¬
bring down
that have been
to
deposits
up through purchases of
be
the
deposits
banks
to
sell
their Government securities to in¬
vestors
tem.
the
outside
for
But
it
war
that
there
the
banking
several
does
not
seem
sys¬
after
years
likely
be any bona fide
will
purchasers outside the system for
any material amount of securities
owned
by the banks.
fact, it
to be quite possible that
appears
the banks may
be called
aidditional
buy
In
bonds
upon
from
to
the
Treasury in order to permit it to
pay securities held by the public.
In the first place,,
every effort
is quite properly being made
now,
and will continue to be
made
for
the
duration of the war, to have
the non-bank public buy as
many
government securities
Thus
at
public
the
will
end
own
possible.
as
of
the
as
much of
Government securities.
Government
The question, then, is when and
how
will
the
banks
decrease
efforts could have it
the conflict is
their
have
a
this
the
the
chase
war
holdings
of
Governments?
The first thought may be that the
debt
reasonable
as
over
own.
any
When
effort to
non-bank public pur¬
larger share of this debt
will not
meet
with
greater
Treasury will pay off maturing
success
than that accompanying
obligations. . But obviously, there
can
be no net reduction in the such efforts while the country is
debt
of
the
Treasury before the
budget is balanced. When such a
time will
cult
to
remote
is
talk
come
is
not only diffi¬
predict, but it is even a
thought at this time. There
from
some
quarters
of
practically feeding and rehabili¬
tating the world when the
war
is
at
war.
any
In the second
place, many
individuals, and quite
possibly
others, have bought War Bonds
with
the thought of using
the
money after the war for some¬
thing which cannot or should not
be
bought
this
'
debt
now.
is
a
A great part of
demand
obligation
the Treasury and the 'Govern¬
Co.
Members New York Stock
Exchange
their
49 Wall
public, but in fact, the banks
be buying more Government
Street, New York 5, New York
may
securities
to
provide
necessary to pay
the
Telephone HAnover
funds
2-9500
Teletype N.Y. 1-344
bonds owned by
the public.
One
other
thought
is
worth
siderable talk
sible
slump
with
the
It does
in
that
of
of
a
pos¬
peacetime
be
so
activity
demands
urgent
the
as
that could justify
war,
three shifts and 24 hour produc¬
tion
such
on
see
vast
a
scale
as
we
throughout the country,
now
that could permit such fat pay en¬
velopes
distributed now, or
as are
that could
shortage
cause
such
a
manpower
exists today.
as
to
loans
in
and
the
usual
credit
to
debit
deposits.
Thus deposits were swollen. When
the need for funds to finance
high
inventories
Utility Securities
North American's
and
Break-Up Plan Introduces
"New Wrinkle"
hostilities.
difficult to visualize
seem
could
needs
business
cessation
possible
any
Con¬
war.
heard of
is
Public
course
propor¬
bank
Laurence M. Marks
seems
that not only will the banks prob¬
ably
.loans resulted
inflated
Public Service Co. of Indiana 5% Preferred
war
!
Wood, of the investment counsel
Massachusetts Utilities Associates 5% Preferred
now
In the past,, depressions
have
visually been accompanied by de¬
that the end of the war will find tionate rise in deposits.
The net
clining bank deposits. During the
bank
deposits at a materially result of such a payment to banks
.period of prosperity or activity
higher level than that existing at would simply be a debit to cash
preceding the depression, deposits
present.
The extent of this fur-l and a credit to investments. The
were swollen, not by loans to the
ther rise depends upon the extent Government
account
would
be
Government, but by loans to bus¬
of further Government borrowing written down, but the deposit ac¬
iness. In previous days of activity
from the banks, and this in turn count would not be touched. The
business firms found it advisable
depends upon the financial cost cash that would thus be pumped to borrow funds
from the banks
of the war. What appears to be into the banking system would be
;in order to finance their increased
a
reasonable and logical predic¬ •tremendous,
; V
inventories and activities.
Such
To effect - an actual reduction
tion was hazarded by Mr. J. H.
tyrst place, it is generally agreed paid, there would be
General Gas & Electric $5 Prior Preferred
tions
have
599
We maintain active trading markets in
.
upon.
large
a
note, to realize that, for any pay¬ !of
deposits after the
$5,-
ties
past one
third
Moreover, it is quite worthy of considering in
judging the
702,000,000 of Government securi¬
to
the
that, with
such al tremendous debt, there will
not be enough of it paid pff to
reduce the amount held by banks
materially for several years.
$6,896,000,000 on Jan. 15, 1941, to
$1,020,000,000 : on July 28, ...1943,
Banks have added
what
the
reasonable to conclude
System have declined from
serve
of
debt,will be at the conclusion of
of the
note that excess
to
Predictions
In
be
prepared to
obligations as called
such
(Continued from fir^t page)
present war emergency, we have over—at the expense of the U. S.
the Federal Reserve Banks, which Treasury.
have authority to buy Government
But, assume that the budget is
securities in the open market'and balanced within a year or two
pay for them by issuing Federal after the war.
It is a far more
Reserve notes.
This procedure, hazardous
assumption
that the
of course, adds the cash to the Treasury
could
soon
begin
to
banking system necessary to pro¬ make a material reduction in its
vide the
must
The major problem in
applying the "death sentence" against
utility holding companies is that practically all of them have
bonds
and/or preferred stock
outstanding. These senior issues must either
be retired before
remaining assets can be distributed to thb common
stock, or a plan for dividing assets between the various
groups of
security holders must be approved by the SEC and enforced
by a
court of jurisdiction.
<3»—
.
The most recent
ter type is United
case
lem of "absolute
the
vs.
future
on
down of par value of senior
earn¬
curities by
ings.
In certain important cases
of recent years the
Supreme Court
has enforced the dqctrine of "ab¬
in
full
Unfortunately,
in
plans for retiring senior
holders of junior issues could ob¬
North
American
tain any interest in
its
sets.
mitted to the
lead in his SEC
minority opinion
Light & Power case.
in the United
The
ers,
majority of the commission¬
however, decided that holding
dissolutions differ
company
what
from
some¬
bankruptcy
cases.
se¬
curities.
before
remaining as¬
Judge Healy followed this
the
SEC hasn't always been willing
to "play ball" with the utilities
priority"—that senior se¬
curity holders should have their
satisfied
se¬
distribution of cash
assets.
or
solute
claims
Public
method
basic prob¬
priority"
claim
a
a
Engineers
as
Service wishes to do; and (5) a
not yet tried although
the SEC favors it, the marking
Light & Power.
Here the SEC faced
right to
securities,
of the lat¬
recent
"new
of
Company,
dissolution
plan
in
sub¬
SEC, has evolved
wrinkle"—a
sixth
a
method
retiring securities.
It is only
however, by the
very high credit standing which
it enjoys.
An agreement subject
enabled to do so,
to
SEC approval was reached by
activity
had
passed, with the coming of a de¬
pression, these firms found it ad¬
While the present value of the
may be insufficient to cover
fully the senior securities, never¬
banks for
visable
theless if there is reasonable pros¬
pect for future enhancement of
to
earnings and values, the
common
holding companies would be set
stockholder
given
to
off their loans at
pay
the bank.
Then the entry was re¬
versed and the banks debited de¬
posits
credited
and
loans.
Thus
,
Today,
however, the loans of
banking system are at the
the
lowest
-level
for
seen
several
the
sets
small
deposits declined.
as¬
should
stake
in
be
this
potential
covery.
the
commission
continue
to
a
retire
the present 3%% and
debentures.
Four regional
3 J/£%
a
together
up,
re¬
with
*a
company to be owned
the
four
companies.
,r;\ \,
"While
doubtless
with
a
group
of
five-year 2% loan of
company
$34,881,500, which would be used
liquidating
jointly by
One
re¬
gional company would hold stock
in Union Electric, another that of
will
consider
These loans have been de¬ each case on its merits, the deci¬ Cleveland Electric Illuminating, a
in
three
clining instead of rising, and they sions
cases—Federal third would take over the interest
continue to decline.
Thus, the Water,- Community Power and in Wisconsin Electric Power and
swollen deposits of today are not United
Light—seem to indicate part of the Pacific Gas & Electric,
the
duetto--loans made to business 5% as the approximate percent¬ while
fourth
would
hold
firms who will repay when busi¬ age which can be granted to com¬ Washington Railway & Electric
years.
.
ness
activity slumps. Rather these
deposits are today due to
swollen
stockholders.
mon
idea
of
.
giving
Thus
far
the
stock¬
common
and
the remaining Pacific Gas;
liquidating company would
the
Government. holders warrants apparently has take over the miscellaneous port¬
already stated, not appealed to the commission— folio items.
these loans will probably not be possibly
because
the
warrant
The
management
estimated
repaid for some years, and- it game was so overplayed in 1929.
that, based on May 29th market <
seems likely that less will be re¬
Where a holding company has
prices, the assets behind each
marketable assets worth more
paid during a depression
than
share of North American com¬
loans
For
made
the
to
the
reasons
;
■
during
prosperous
Finally,
than the senior securities, obvi¬
times.
should business
ity slump after the
probably find that
activ¬
shall
war, we
money
culation will decline.
in cir¬
At present
ously there is
any
division formula, but there
remains
as
need to apply
no
to
the
how
practical
best
to
this money in circulation is at an
all time high,
eral
methods—(1)
problem
retire
senior securities. There
are
to sell
the
sev¬
some
the rise being due
largely to the requirements of fi¬
properties
nancing
cash to redeem bonds by lot un¬
and
easy
business activity,
general state of very
record
the
to
The
money.
total
funds outside the banks
of
such
$17,1943.
If
was
800,000,000 on July 28,
activity should decline
materially after the war, there
business
will be
to
a
need for
no
carry
much cash
so
reduced activity, and
on
considerable portion of it should
der call
or
securities and
use
against
the
open
Bond
its
and
market,
as
Share
doing with
preferred
is
Electric
stocks;
(4)
to
tender securities which it holds,
in
exchange- for its
own
senior
the
to
$30.83,
bank
loan
preferred
stocks
would
amount
to $11.67, leaving an
equity of $19.16 for the common
stock.
(This
common
been
compares
of
valuation
stock
tive—other
amount, with
a maximum price
(3) to buy securities in
amount
which
and
have
provisions; (2) to ask for
tenders of bonds up to a certain
of par;
stock
mon
seems
recent
around
on
the
conserva¬
estimates
23,
which
with the present price
16i/2.)
For
a period of 60 days follow¬
approval of the plan each
ing
holder of
mon
North American
com¬
could obtain his share of the
underlying stocks of North Amer¬
ican's subsidiaries by surrendercontinued on, page 600)
find its way
back into banks, thus
increasing bank deposits by that
amount.
An
amount
of
find
indication
way
is
its
given
the
past
such
funds
of
that
the
may
into bank deposits,
that during
by the fact
year
money
tion has risen by
$5,150,000,000.
It is true, of course, that even
though deposits as a whole remain
swollen
for
several
General
in circula¬
Telephone
~
$2.50 Preferred
(Cum.)
after
years
the war, there will be some shift¬
of funds around the country,
as there always is.
To anticipate
these shifts is the problem of the
Bought
—
Sold
—
Quoted
v
.
ing
individual banker.
years
it
seems
But for
that
one
loss will be another's gain.
some
bank's
.
Paine, Webber, Jackson & Curtis
ESTABLISHED 1870
THE COMMERCIAL & FINANCIAL CHRONICLE
600
WLB Declares
Our
(Continued from page 599)
ing- his common stock' and paving
in his proportionate share of the
!
(Continued from page 590)'of 101.33 for the issue while the cash necessary to retire the bank
debt and preferred stock (approx¬
lowest was 99.30.
The two in¬
termediate bids were relatively imately $11.67). ; After termina¬
tion of the 60-day "take-down"
close being 100.83 and 100.61 re¬
period,
the
remaining
assets
spectively.
would be divided among the four
United Gas Corp.
new companies, which would re¬
Report
1
Is
determination
stock, since North America would
continue as the "liquidating com¬
Davis' majority
does not mean
has failed/
with
companies,' it would be
necessary to replace the preferred
gional
&.X
the balance in debentures.
Another
If
things go along
bankers should
for
■?,"
Utility On The Fire
submission
of
schedule,
on
receive
soon
for
bids
a
preferred stock at
debentures to mature in
10
or
15
;;;
company has registered
with the Securities and Exchange
The
j
|
debt
Possibly
it
!
part of
as
is
i
y
the
The amended plan calls for
enact
wartime
The
Laclede Electric for
of
600,000,
which
would receive
on
the
a
price of $8,-
Laclede
$2,000,000.
it
were
Gas
ies,
perhaps
with
ers
or
August 19 next.
their
Dominion
ticularly
feature
to
issues
a
better
the
a
to wage earn¬
that food costs would be strict¬
0//.XXX
an
w
circumstances
offer
to
)f
buy,
to
or as a
be construed
solicitation of
The offer is made
as
an
an
only by
that
the
The board ordered
and
of
the
a
overlooking
and
ties
New
York
good
a
sympa¬
stock
re¬
structure
year totals
$9,741,115 as compared with $10,531,957 in the same month a year
For
-'
to believe
reason
means
any
of such Common Shares.
cess
profits tax
in
now
in taxes
earning
more
Canadian
With
on
a
cor¬
100%
ex¬
in effect, any
NEW ISSUE
108,634
HOOVER
Common Shares
■
;?r:.
(Par Value $5.00 per share)
brand
in
total from last year
turn,
the
This represents a de¬
in the eight
than their pre-war
of
liberalism
which
below '
corresponding 1941 period. j.-'v-
These figures
retlection of
are a
fort
out of
this
current revenues.
country
where
Government
and
tics"
we
about
we
still
are
38%
of
Int
in
economy
higher
taxes
"bad
as
poli¬
only paying for
our
effort
war
as
; T
along.
go
has
In last week's Ontario
liberal
*
seats
Decisions To Court
were
(Continued from
this
country. '
American
It
appears
that
for
the
Curb
interesting facts.
listed
Corp.;
;
&
.
Lukens Steel
Merck &
outstanding amount to approxi¬
mately 680,000,000. Current mar¬
ket value of these shares is rough¬
ly $4.6 billion.
vX
a
in
turnover
the
L
Company;
m
Co., Inc.;
Northern Natural Gas Co.;
Public Service
The Warner
NASD
Securities
the Exchange now total
546 issues whose combined shares
on
trading
/.-.C/--'"
Farnsworth Television & Radio
be¬
and
this prospect, more than favorable
war
developments, would seem to
have been an underlying cause of
the
present
decline
in
stock
prices.
•
•
;
ing
591)
page
unlisted
privileges in:
corporations are
for higher taxes
in
first
seven
months of the year, although still
far below the 1937 level, involved
share
which;:
$12.8 million
was
dominated Canadian politics since
1934 has now become decidedly
Trading
Price $22.50
per
of
of $4.4 million
diana, Inc.;
COMPANY
months
$170,473,100
as
$174,847,449 in the like
1942 period.
cline
The July report of the Toronto
Stock Exchange gives the follow¬
THE
eight
companies not have been shunned
standard
latedly
of the Prospectus.
first
higher despite further irregularity the increased tax
rates which are:
in domestic stock prices. For one
enabling Canada to pay for ap¬
thing there is scant likelihood of
proximately 52% of her war ef¬
a
job classifications in the ship¬ emphatic.
v;
elections,
or as
the
1943 Canadian dividend
payments
will
aggregate
markets, months
that Canadian security prices will
hold at present levels or even go
building industry.
-
the
the Canadian
between
further boost
general
wage-rate
yield
might do more harm
program than
good.:; Moreover, the swing
away
from the "Santa Claus"
over-all
has failed.
view
gone
the
August payments this
against
Not
thetic
stabilization pol¬ increase
offering of these Common Shares for sale,
offer to buy,
last
market:
ago.
clear that poration taxes.
icy," but argued that this did not
mean
have
basis,
domestic bonds is still too great.
justified because the Gov¬
was
issues
3%
spread between them and prime
1
dissented, said the board
assurance
higher-
On the other hand, we are faced
with a different tax situation in
no
bond
highs,
in
temporarily
beginning a fortnight ago, ap¬
early in the week.; However, some'
whittled down from 63 to 14.
This is under
Canadian
closing
Although all the
grade
below
general in¬
the
among <
priced issues.
The AFL
>
with the. general
own
~
continued
near their recent
Canadian stock markets the uptrend in
prices which was
halted by the break in U. S. stocks
a
such costs "have gotten out of line
this
dissolution problems.
•
ly controlled.
two
find
one
:
with
compensate
to
'X Mr. Davis said it
doubtful
would
exceptions,
;
week
decision, from which labor
ated the
of
method adaptable to
Hearing
'
ernment, in a sense, had repudi¬
on
feature
is
general
Firmness
there is
ac¬
whether other holding compan¬
plan has been set by the
SEC for
and
:
could not agree that the increases
Company
and
Laclede the Utility Act.
f ;
\
Power & Light Co., subsidiaries
North America's plan is very
of Ogden Corp., to Uhion Electric
ingenious, but the
SEC
may
Corporation, the latter part of
the North American System, and
consider it "needlessly compli¬
cate d,"
in
:
merely for
1
members
Power
of electric properties operated by
other
proves
rising living costs.
crease.
also
moratorium
sentence"
"death
the
j sale of Phoenix Light, Heat &
a
X
J
By BRUCE WILLIAMS
;
-
increase, plus 5.83% of
had asked
a
ing before the Commission,
all
living,
has
year's wages
one
voluntary tion to reduce the number of jus¬
plan of reorganization now pend¬ tices
constituting a quorum, or
new
policy
success."
wage
for
the SEC dissolu¬
for that amount of hoped that Congress will take
| Commission
i
order.
a
9%
appeal from the Circuit Court de¬
tion
BcW System Teletype NY 1-920
stabilization
The CIO union had demanded
is
submitted
cision affirming
14 Wall Street, New York 5
-
only "for the record,"
000,000
first
mortgage
bonds, since North American is
still
20-year maturity, of the Laclede
Gas Light Co., carrying a 3%% hopeful that the Supreme Court'
coupon, and
$3,000,000 of serial may obtain a quorum to hear its
I years from date of issue.
;V
,,
par
entire plan
P'
Washington ad¬ peared to have been resumed
vices of Aug. 9, the following was selling came in during the latter part of the week and prices
gave
ground, though only moderately. $reported:;
vv:" ■'
/
same period last
The board's decision, dated July
Recent
year. In the first
developments giver
seven-months-of 1937, by com¬
31, denied general wage increases
strong indication of a continued
to
shipyard
parison, the turnover was 204"
employees- of • 188
gradual upward price curve for
million shares.
yards on the Pacific and Atlantic
\
:
DominionGovernment
and
coasts, the Great Lakes and the
The downward trend in month¬
Gulf of Mexico.
They are repreguaranteed
obligations.
The
cented by the CIO's International
ly dividend payments which, ex¬
same
holds true for Canadian
Union of Marine and Shipworkers
cept for May and June, has been
provincial bonds, allowing for
and the AFL'S Metal Trades De¬
uninterrupted this year, continued
for
selectivity of performance par¬
August.
The
schedule
partment.
of
v;
; .k:
call price, which
the
Admittedly
.\
,
In United Press
has already raised objections.
call
$19,-
retire
to
I;
X
the
to
contrary^ this
of
control
the
been
Moreover, it is proposed
rather than the
that
On the
the
that
that ~ a new- SEC should apply to a Federal
registration
court
for
enforcement
powers,
may be in order soon proposing
since a few stockholders might
that the financing
be under¬
refuse to make the exchange vol¬
taken
on
the basis of
about
untarily.
.
opinion said, "this
items of the cost of
the
$40,000,000 mortgage bonds and
,
single exception, when contrasted
and
to
Quoted
—
While conceding that food costs
"have gotten
out, of line," Mr.
a
program
adhere
to
general stabilization policy.;
by
an
equal
aggregate
purchase agreement stocks
amount, of similar preferred
•
stocks of the regional companies.
Current reports suggest that
Some hitch might occur in this
the company is now contem¬
part of the program unless the
plating a revision of the origin¬
al
Sold
Incorporated
cessful" and reiterated the Board's
Which expired on Feb. 15 last.
amendment
—
",(•
....
Wood, Gundy & Co.
gram* with the exception of food
prices, has been "remarkably suc¬
,:v,'vi■ ;■/
- y■,
delaying amendments pany") .-v.
v In addition to
dividing the re¬
were filed while hearings were in
progress on the matter, the last maining bank debt' among the re¬
of
Bought
Board, said on Aug. 9
that the over-all stabilization pro¬
Several
tension
;;
,)■
War Labor
gossip indicates that spectively assume the obligations
United Gas Corporation is con¬ under the bank loan agreement,
sidering revival of its refinanc¬ and also issue their own shares of
ing program first launched in the preferred and common stock in
Spring of 1941. At that time the proportionate amounts to North
stockholders
(who
company
filed registration data American
Covering a projected new issue of would also retain their original
revealing that the company had
been unable to negotiate an ex¬
AH Issues
?
formal
opinion denying a
general wage increase to 1,000,000
shipyard
workers,
William
H.
Davis, Chairman of the National
a
..
....
Dominion of Canada
Working
In
Current
$75,000,000
of
first
mortgage
3Y4% bonds due in 1958.
:
.v..
Stabilization Plan
.
'«■
Thursday, August-12, 1943
ing
■
& Swasey Co.
successful in oppos¬
was
earlier application of the
an
Curb
Company of In¬
extend
to
privileges
5%
Electric
unlisted
Pacific
to
trading
and
Gas
Cumulative
.
First
Preferred Stock.
In that case,
Commission,
July
that
on
Curb
the
12,
the.
found
failed
had
to
demonstrate that there existed in
of 71.6 million shares,
against 21.7 million shares in the
the vicinity
of the exchange suf¬
ficiently widespread public trad¬
activity in this utility issue
ing
Copies of the Prospectus
be obtained from only such of the undersigned as
may
legally offer these Shares in compliance with the securities laws of the respective States.
We
may
specialize in
make
to
CANADIAN
it
Government
the
-
Municipal
and
ities
Corporation Securities
H. E. SCOTT CO.
August 12; 1943.-
49 Wall
St.* New-York 5, N. Y.
WHitehall
3-4784;
of
and
Central
j
-Ml'
<
4
y
Power
Util¬
Kentucky
States
island,
vicinity of the New York
Exchange
of
comprises -the
Massachusetts,'
Rhode
Connecticut, New .York,'
New;. Jersey,
Pennsylvania, and
Tele. NY 1-2675
'•
■V
the
of these decisions, concluded
Curb
FIELD, RICHARDS & CO.
*
for
4's, the Commission, for pur¬
poses
t
case
Light
that the
HORNBLOWER & WEEKS
appropriate
the Curb.
on
In
SMITH, BARNEY & CO.
it
SEC to permit unlisted trading in
J
(
w
t
s
t ■:
; [i .! (
v)
i- >
"•? KfW*
.Volume 158
""^V" w
tf S
■
DIVIDEND NOTICES
*L
-
■
'
■
'
DIVIDEND NOTICES
!
:•:[
:
Company
;:
'■/—
■:.
Dividend
on
New York, N. Y.
First Preferred Stock
with
The following dividends have been declared:
:
•;, i
;:,
The Directors have
Preferrc({ Capital Stock
■
One
and
three-quarters
cent
per
1943,
j
-•
*"
of
business-
September,-24,
1943}
j
"
Gammon
Capital Stock
September 24, -1943.
q
*
;
of
„
•
record
the
at
close; of business
j
?3
•be
•
"4
;
?
/:./•/?
■
l
September' 10, 1943. ///:/). :•'•/
GEORGE S. DE SOUSA
fi
New
/•' •■'•./.
York, N. Y., August 6, 1943*
•
f
■
Southern Natural Gas
11
152
Company
Common Stock Dividend Number 18
quarterly dividend of 25 cents per share has
the Common Stock of Southern
on
payable September 30,
the,close of
•
;
'.. < 1
Natural Gas Company,
business
on
September 16, 1943.
; v
,
At
meeting of the Board of Di¬
held July 26, 1943, a div¬
idend
of
twenty-five cents ' per
.
H. GORDON CALDER,
,
Vice-President and Treasurer.
.
a
mon
able
dividend of $0.50 per share has
on the stock,
payable September
stockholders of record as of the
close of business August 21, 1943.
:
of
record
the
at
close
business August 20, 1943.
will be mailed.
v
'
^
of
quarterly
declared
1943,
THE
1943
to
JAMES
:
W. M. O'CONNOR
26,
A
10,
Checks
~
Secretary
A
UNITED
quarterly
L,
of
$1.75
CO.
share
per
will
this Company.
Preference stock of
CAMERON,
an
WAR
PRODUCTS
DIVIDEND
ON
COMMON STOCK
{■■■'■
..."
■
■».
The directors of Chrysler Corporation
,
have declared a dividend of seventyfive cents ($.75) per share on the out¬
(S
standing
common
stock,
payable
September 14, 1943, to stockholders
of the
cause
of
,'"shorts"
neither
nor
have
been
the
case
few
a
decline
ment
forecast
in
the
Invest¬
Survey of March 4, 1943.)
has
market
only
the
opinion of
The judgment of
bulletin just issued by
Laird, Bissell & Meeds, 120
Broadway, New
York City, members of the New
Stock
Exchange. Copies of
interesting bulletin may be
Laird, Bis-
On
these
grounds,
ask
is perti¬
it
basic questions.
some
Peace
Really
Unfavorable
Before
we
Be
An
speculate
whether
on
has been brought appreci¬
ably nearer, it is well to appraise
again the
effect which
actual
•
peace
will
have
security
upon
For months
record
the
at
close
of
.
Interesting
the bal¬
ance
of
published
in
opinion
America has been that peace will
release constructive, rather than
Leroy A. Strasburger & Co., One
Street, New York City, have
prepared an interesting descrip¬
forces in our eco¬
nomic life.
According to stock
price movements, the British still
tive
of
feel that way.
business
August 20, 1943.
Rail
Situations
B. E. HUTCHINSON
Chairman, Finance Committee
Wall
circular
several
on
lots
of
railroad bonds in registered form
which offer attractive
possibilities,
COLUMBIAN
the firm believes.
circular
A.
CARBON COMPANY
Eighty-Seventh Consecutive
Quarterly Dividend
,
The Directors of Columbian
Company have declared
Carbon
a regular
quarterly dividend of $1.00
per
share,
payable September 10, 1943, to stock¬
holders of record August 20, 1943, at
>. 3 p.m.
GEORGE L. BUBB
Treasurer
Magma Gopper Company
may
Copies of this
be had from Leroy
& Co. upon re¬
Strasburger
quest.
Seaboard Reorganization
Possibilities Interesting
L.
H.
Rothchild
a
now,
destructive,
offers
So far
our
market
study of Seaboard Air
Line, which they believe is es¬
pecially timely in view of the
final report of the Special Mas¬
ter's plan for reorganization of
Seaboard. Copies of this interest¬
ing study may be had upon re¬
quest from L. H. Rothchild & Co.
84
September 15, 1943, to stockholders of record
at the close of business August 27, 1943.
H. E. DODGE, Treasurer.
,
.
JSewmont Mining
Corporation
Dividend No. 60
.
1943, a dividend of 37^ cents
declared on the capital stock of
Newmont Mining Corporation, payable Sep¬
tember 15, 1943 to stockholders of record at
Impact Of Events On
Investment
as
;
directly oposed opinion
developed in the preceding
a
material
of
which
both
property;
Brothers, 32 Broadway, New York
City.
Copies of this interesting
Bulletin with a list of suggestions
may
be obtained upon request
impoverishing
are
/
.
On August 9,
per
share
was
the close of business August 27,
1943.
H. E. DODGE, Treasurer.
Nat'l Radiator Attractive
2. The
first
effect
struction
will
be
the
of
call
to
tive
until the
the surface
on
a
National
Public
(Special
LONG
O.
to The
Radiator
The
Company
and
National
Bank
and
Trust
Financial Chronicle)
BEACH, CALIF.—George
become affiliated
Thomas has
with Pacific Company of Califor¬
Co.
attractive
offer
possibilities,
memoranda
being
according
to
distributed
by C. E. Unterberg &
Building.
Mr.
previously
with
Franklin Wulff & Co., Inc. and
was local manager for Bankamer-
memoranda may be had from the
ica
firm upon
nia,
Security
Thomas
Co.,
61
Broadway,
New
York
was
Company.
City.
Copies of these interesting
request.
of
use
good
for •several
release
at
the
close
indentures
surplus funds
will
will require
the
use
able
for
funded
money
high level.
Most
of
the
/"moral"
./.''••/ ;/./
appear.
The
most
re¬
will dis¬
/■.
a
over
'/Jk
important point of
opinion that, even
period of
be
one
regarded
rather than
a
year,
as
a
peace
"bull,"
"bear" point on se¬
curities.
Is
Peace
Of course,
Really
Nearer?
•
:
,,
•
debt
re¬
tirement, increasing the value of
in
securities in
many
all
carry
the market and
where
cases
of
part
or
the
the
TRADING
V'
bonds
equity
SHASKAN & CO.
purchase of Hotel Bonds
in
funded
.room.
1600
the
property and
capitalization
debt
Obviously
rooms
with
Membtri N«w York Slock Exchange
/Members New York Curb
40 EXCHANGE
Bell
i
the
PL..N.Y.
Exchange
Dlgby 4-4950
Teletype NY 1-953
per
property with
a
small
a
IN
SECURITIES
line with present day
realty val¬
ues and
creating a true value of
the stock.
'/:
'"/' ::
rooms
MARKETS
REAL ESTATE
stock reduce funded debt more in
capitali¬
Active Markets
zation per room
can benefit from
the present high
occupancy level
more than a smaller
The "/comparison
property with
capitalization.
given below of
five
hotel
a
larger
.
per
New
York
illustrates
fLY.1Me.Mtge. I
room
this
point.
properties
.
Prudence Collaterals
.
Of course, other factors should
also be
considered, such as current
10%
,
Park
Central
7% % 'r Hotel
St.
5Vz%
Hotel
George_.._
Lexington —
5%
Hotel
Gov.
5Vi%
Sherry Netherlands
Series
A-I8
and alt other
TITLE CO. CERTIFICATES & MTGS.
SIEGEL
&
39 Broadway, N. Y. 6
Bell
System
CO.
Dlgby 4-2370
Teletype
1-1942
;
Funded Debt
Number
Capitalization
of Rooms
Funded Debt
1,600
Hotel
$5,225,000
8,375,000
3,677,000
5,560,000
6,000,000
2,050
x;
750
Clinton—1,100
375
at
peace
earlier
an
might have
been
date
than
reasonably
it
Per
Roomi
$3,284 !
4,070
•
•
,
,
■
4,900
5,050
;
;
:
16,000 !
j
It seems to
in
that
the
true
have not
dis¬
The 6% Cumulative Preferred
Stock of New England Power As¬
sociation offers considerable at¬
military
traction at present levels accord¬
affirmative.
Italian
forces
tinguished themselves
naval
or
factors
be
a
in
It
as
answer
the war,
but
Peace with them
would
definite
saving of time, of
and of lives.
Still
equipment,
more
certainly,
the Italian col¬
lapse will influence other German
satellites
morale
and
of
will
the
depress
Germans
see
that anything which
happened justifies me in plac¬
ing my earliest possible date for
European peace any earlier than
Fall
of
this
have used before.
to
circular
being distrib¬
Haupt & Co., Ill
Broadway, New York City, mem¬
uted
a
by
Ira
bers of the New York
Stock Ex¬
change and other leading national
Exchanges. Copies of this inter¬
esting circular may be had upon
request from Ira Haupt & Co.
the
has
the
ing
them¬
selves.
I do not
)
is
that the
me
England Power Ass'n
Situation Of Interest
pected before that happening.
is
New
ex¬
year, which I
That possibility
the mere passage of assumed
some
such,
then un¬
inevitably brings peace near¬
known,
favorable
"breaks"
as
er.
Similarly, every step in our this.
The development is a de¬
invasion gives a clearer picture of
finite cause for hope that the more
Allied
victory.
The^ question optimistic forecasts may be
really to be considered is whether
the
collapse of Italian Fascism right— Ray Vance, A. W. Smith
makes
it
reasonable
to
expect & Co., Boston.
time
of
speculative
of consider¬
Forces.
period.
4. Private savings will be at a
5.
worthy
are
the
in¬
over
the reconstruction
straints against inflation
by
sinking fund operations
they have occupied the time and
used up the material of Allied
new
and
investigation
providing
only be of long pull benefit
but will accentuate the activity of
:
underpriced
investor.
terest for
re¬
placement period is finished.
3. Technological progress dur¬
ing this war has been tremendous
its
on
de¬
for
period of active replacement; the
depressing factors are not effec¬
should
in
situations
current
for
1
this leter is the
The
-
(
Mortgage
:
world.
*
/
War, when the hotel
i was
years.
of
the
not
The impact of events on invest¬
ment policy is discussed in the
current Bulletin issued by Strauss
from Strauss Brothers.
World
business
the destruction of human life and
and
Policy
last
yield, rate per room, prospect for
appreciation above present level
section, I doubt whether such an
due
to
business
outlook,
and
interpretation of our market ac¬
amounts
available
for
sinking
tion is justified.
fund operations. Generally
speak¬
There is not space to repeat
here all of the reasons given over ing most hotel securities in view
the past year as to why peace will of present
earnings and prospects
be a constructive factor, but a
Aprrox. Yield
/\;x ///////./•/,,'
quick resume follows:
on Bond
1. Peace will bring to a close
but,
•
Dividend No.
On August 9, 1943, a dividend of Twenty-five
Cents per share was declared on the capital
stock of Magma Copper Company, payable
earning fixed charges
It is believed that high levels will be main¬
tained, this belief, being based<fcphrtly on the experience after the are, in our
opinion, considerably
■
&
Co., 120
Broadway, New York City, have
prepared
,
the lower occupancy.
consideration should be given
by
the
investor to the number of
Factor?
peace
prices.
.
Occupancy of New York City Hotels continuing around the 90%
level will naturally increase net income
considerably above the fig¬
ures shown when
average occupancy ranged from the 65% to 90%
level. This factor, of course, has had a favorable market
effect upon
the hotel securities on properties which
were
In the
Will
Strong In Real Estate Security Market
Funded Debt Per Room Imporant Factor To Consider
the
far
so
sober investors will become
nent to
Hotel "Bonds
years
but this should not be taken
as indicating a long continued re¬
action.
(This point was discussed
at length and such sharpness of
ago,
apparent later.
Interesting
The current situation in Manu¬
facturers Trust Co. offers attrac¬
tive possibilities according to a
this
//• /./"/
decline./
volatile traders.
had upon request from
sell & Meeds.
was
professional traders, it has fallen
more
precipitously than would
more
York
revolution
rather than the basic
excuse,
registered
DESOTO
MAKING
-U//:'
B. The / Italian
D. The
PLYMOUTH
NOW
facts, I reach four
tive reaction,
Treasurer.
York, August 11, 1943.
Mfrs. Trust
•.
Treasurer
LEATHER
STATES
dividend
C.
New
DODGE
WICKSTEAD,
be paid October 1, 1943, to all holders of record
at the close of business September 10, 1943, of
Prior
CHRYSJ.ER
these
support
been
Real Estate Securities
/•".
v
.
Stock of the Company, pay¬
September 15, 1943, to stock¬
the
on
HAnover 2-2100
cor¬
C. Because the market has the
^
Spencer Rettogg & &ons(, Sue.
declared
was
holders
July
Dated: August 12, 1943.
Com¬
share
definite
is really based on an over-bought
speculative position, which has
been
building
up
for
fifteen
months without any real correc¬
■
rectors
a
ing in the past three months and
1943 to stockholders of record'at
Association
Broad Street, New York 4
41
the "war"
on
1'/"//;/•
been declared
DIVIDEND
covered, also shows
From
A
NUMBER
not based
was
'
Members New York Security Dealers
;
"peace" status of the industries
conclusions: /./
• ././■;/:';"
A. The current market decline
THE ATLANTIC REFINING CO.
COMMON
Incorporated
declines, which shows that the de-i
cline
upon request
Seligman, Lubetkin & Co.
of individual
list
same
current decline.
Charles J. Hardy,-President
Howard C. Wick, Secretary j
August "4, 1943
3. This
Complete reports sent
,//;././
relation between speculative buy¬
Vice-President and Treasurer
-
•
Trust• Company of
l
Average, it
noted that the "Aver¬
age" is so weighted as to make its
percentage fluctuation less than
that of the individual stocks^of
which it is composed.)
or
/
:i
^T,0(jtbe closed; Checks will
City Hotel Bonds
Dow-Jones
<
onei
orCS*
the
should be
Stock,
j
t-V
of record at the close of business
i
•
Preferred
First
payable October 1, 1943 to holders
'
Two dollars (32.00) per share pay"•>:M:>: able October 4,--194-3-* to the, holders
"//'
the outstanding $3.50
on
Cumulative
•{
-*.
-
quarterly dividend of 87V2^
a
share
per
■:
declared, for the
period July 1, 1943 to September 30,
j
-payable; .October 1, 1943,--to the holders of record at -the close
'
Attractive New York
(Continued from page 591)
show any definite advantage from
their status as "peace stocks." (In
comparing individual fluctuations
OF AMERICA
m
\\
30 Church Street ;,:--/ ./...■•'
Market
RADIO CORPORATION
Foundry
and
601
'
•
'
ac€
American Car
r«s-i'lV-wW A,J
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4202._-
.
IW "ptMT'r
Liberty Baking Corp.
Situation Interesting
Caswell
Salle
pared
the
&
Co.,
120
South
St., Chicago, 111., have
an
$4
interesting circular
cumulative
La
pre¬
on
convertible
preferred stock (non-callable) of
Liberty,Baking Corp., which the fJv
firm
believes
possibilities
offers
at the
interesting
present
Copies of this circular
may
time.
be had
upon request from the firm.
THE COMMERCIAL & FINANCIAL CHRONICLE
600
'
Our
PubHc
Reporter's
Utility Securities WLB Declares
(Continued from page 599)
ing his common stock and paving
in his proportionate share of the
;
(Continued from page 590)
cash necessary to retire the bank
of 101.33 tor the issue while the
debt and preferred stock (approx¬
lowest was 99.30.
The two in¬
After termina¬
termediate bids were relatively imately $11.67).
tion of the 60-day "take-down"
close being 100.83 and 100.61 reperiod,
the
remaining
assets
pectively.
would be divided among the four
.
"jf
Report
United
Stabilization Plan
Is
Dominion of Canada
Working
In
All Issues
formal
opinion denying a
general wage increase to 1,000,000
shipyard
workers,
William
H.
Davis, Chairman of the National
War Labor Board, said on Aug. 9
a
Gas Corp.
new companies, which would re¬
that the over-all stabilization pro¬
gossip indicates that spectively assume the obligations gram* with the exception of food
under the bank loan agreement,
.United Gas. Corporation is con¬
prices, has been "remarkably suc¬
sidering revival of its refinanc¬ and also issue their own shares of cessful" and reiterated the Board's
ing program first launched in the preferred and common, stock in determination to adhere to the
Spring of 1941. At that time the proportionate amounts to North general stabilization policy.
V
stockholders
(who
.company
filed registration data American
While conceding that food costs
would also retain their original
'covering a projected new issue of
|uhave gotten out of line," Mr.
$75,000,000,7 of /first
mortgage stock, since North America would Davis' majority opinion said, "this
continue as the "liquidating com¬
3Y4% bonds due in 1958.
t
does not mean that stabilization
■
Several
delaying amendments pany"). "
has failed/ On the contrary/ this
In addition to dividing the re¬
were filed while hearings were in
single exception, when contrasted
progress on the matter, the last maining bank debt among the re¬ with
the
control
of
all
other
revealing that the company' had gional companies,- it would be items of the cost of living, proves
been unable to negotiate an ex¬ necessary to replace the preferred that the
policy has in general
by
an
equal aggregate been a success." tension of a purchase agreement stocks
amount
of
similar
preferred
which expired on Feb. 15 last. >
In United Press Washington ad¬
stocks of the regional companies.
vices of Aug. 9, the following Was
Current reports suggest that
Some hitch might occur in this
the company is now contem-;
reported:*
•
•
:
'
part of the program unless the
The board's decision, dated July
plating a revision of the origin¬
SEC should apply to a Federal 31, denied general wage increases
al
program
and that a new
amendment to the registration
shipyard
employees
of* 188
court
for
enforcement
powers, to
may be in order soon proposing
since a few stockholders might yards on the Pacific and Atlantic
that
the financing be under¬
coasts, the Great Lakes and the
refuse to make the exchange vol¬
Gulf of Mexico.
taken on the basis of about
They are repreuntarily. Moreover, it is proposed cented by the CIO's International
$40,000,000 mortgage bonds and
Union of Marine and Shipworkers
the balance in debentures.
to retire preferred stock at par
<7
On The Fire
Another Utility
\
If
things go along
i bankers should
of
schedule,
on
receive
soon
submission
for
bids
for
a
rather than the
has already
$19,-
submitted
debentures to mature in 10 or 15
! years from date of issue,
only "for the record,"
The
registered
has
company
appeal from the Circuit Court de¬
cision affirming
| with the Securities and Exchange
tion
order.
the SEC dissolu¬
Possibly
it
../'v,.-:''7-.
also
is
!
Commission for that" amount of hoped that Congress Will take
j
new
ac¬
debt as part of a voluntary tion to reduce the number of jus¬
plan of reorganization now pend¬ tices-constituting a quorum, or
ing before the Commission.
9%
year's wages
one
|
The amended plan calls for the
j rale of Phoenix Light, Heat &
a
sentence"
"death
the
moratorium
wartime
on
of
feature
Laclede the Utility Act.
Power & Light Co., subsidiaries
/ North America's plan is very
of Ogden Corp., to Union Electric
ingenious, but the SEC may
Corporation, the latter part of
consider it "needlessly compli¬
the North American System, and
Power
Company
and
of electric properties
;Laclede Electric for
600,000,
of
which
;would receive
on
the
Laclede
ies,
Gas
or
dissolution problems.
19 next.
"v
•
continued
a
gradual upward price
Dominion
the Canadian bond market
provincial
true
bonds,
for
allowing
selectivity of performance par¬
ticularly
among i the
higherpriced issues.
a
Although all the
issues
for
a
have
gone
the
parison,
domestic bonds is still too great.
decision, from which labor
an
offer to buy,
to
or as a
be construed
solicitation of
as an
an
could not agree
overlooking
that the increases
justified because the Gov¬
and
ernment, in
ated the
a
ers
hold at present levels or even go
higher despite further irregularity
;
;
a
of line
general stabilization pol¬
over-all
program
and
of
the
general
re¬
wage-rate structure
job classifications in the ship¬
building industry.
"
;77
prices.
;
further boost in
poration taxes.
For
one
Canadian
With
profits tax
cor¬
100%
a
ex¬
in effect, any
increase in taxes on companies not
earning more than their pre-war
standard
might do more harm
cess
than
now
good. 7 Moreover, the swing
from the "Santa Claus"
away
,
The board ordered a
view
in domestic stock
thing there is scant likelihood of
7'7./;■,..■/■
the
markets,
to believe
reason
that Canadian security prices will
had repudi¬
that food costs would be strict¬
that
Canadian
to wage earn¬
sense,
assurance
ly controlled.
good
sympa¬
the
stock
York
New
a
the
between
ties
there is
were
offering of these Common Shares for sale,
offer to buy,
The offer is made only by means of
any
brand
liberalism
of
which
or as
204
: :
• •
/
the Prospectus.
a
this
hand,
we are
$9,741,115 as compared with $10,531,957 in the same month a year
ago.
• '
For
*.-J
'7;/7 /7:.
tax
faced
situation
in
It
appears
that
corporations are be¬
in for higher taxes and
latedly
this prospect, more
/■
*
•
seem
cause
v.--..
$174,847,449
in the like
This represents a de¬
$4.4 million in the eight
These figures
are a
reflection of
are
enabling
ap¬
Canada
to
proximately 52%
fort
of her
country
where
Government
and
we
about
we
still
are
38%
of
In
in
taxes
"bad poli-
economy
higher
have been shunned
tics",
ef<
war
of current revenues.
out
this
for
pay
as
only paying for
our
effort
war
as
along.
go
NASD To Take SEC
Decisions To Court
for
the
Curb
591)
page
unlisted
trading
privileges in:
*
Farnsworth Television & Radio
Corp./
.
'V /"7;7v
.
Lukens Steel
Merck
&
Company;
7
Co., Inc.;
1
7
Northern Natural Gas Co.;
Public Service Company of In-'
■
diana, Inc.;
The Warner &
NASD
ing-interesting facts.
Securities
listed on the Exchange now total
ing
Curb
amount
to
approxi¬
Current mar¬
rough¬
mately 680,000,000.
ly $4.6 billion.
7
a
in
earlier application of the-
an
to
Electric
unlisted
extend
privileges
•;
Pacific
to
5%
trading
and
Gas
First
Cumulative
.
Preferred Stock.
the
turnover of 71.6
Swasey Co.
successful in oppos¬
was
In that case,
Commission,
July
.
first
seven
months of the year, although still
far below the 1937 level, involved
Trading
share
.
of
the increased tax rates which
to
of
ket value of these shares is
(Par Value $5.00 per share)
months
months total from last year which,;
turn, was $12.8 million below
the corresponding 1941 period.
The July report of the Toronto
Stock Exchange gives the follow¬
outstanding
Common Shares
,
in
546 issues whose combined shares
COMPANY
eight
1942 period.
cline of
than favorable
*
*
first
1943 Canadian dividend payments
will
aggregate
$170,473,100
as
present
decline
in
stock
prices.
.7>*7V- /7/7::':'v7;-v .7-'
.
the
(Continued from
country.
different
^
ly dividend payments which,' ex¬
cept for May and June, has been
uninterrupted this year, continued
for
August.The
schedule
of
August payments this year totals
the
Price $22.50
per
;
./; /
American
of such Common Shares.
NEW ISSUE
HOOVER
•
^
com-,
was
The downward trend in month¬
In last week's Ontario
liberal "seats
were
emphatic.
elections,
developments, would
have been an underlying
THE
turnover*
has
dominated Canadian politics since
1934 has now become decidedly
war
108,634
by
1937,
shares.
against
Not
dissented, said the board thetic
members
with
circumstances
In the first
year.
of
the
million
yield
basis,
spread between them and prime
general in¬
crease.
The
3%
On the other
no
months
seven r
The
Canadian
for
period last
same
whittled down from 63 to 14.
This is under
last
and
obligations.
holds
for
curve
Government
guaranteed
same
give
developments
below
has failed.
•
Recent
strong indication of
The AFL
rising living costs.
mean
this
feature
to
issues
closing near, their recent highs,
tn
Canadian stock markets the uptrend in prices which was
temporarily
halted by the break in U. S, stocks beginning a fortnight ago,
ap¬
peared to have been resumed early in the week. ' However, some
selling came in during the latter part of the week and prices gave
ground, though only moderately. <^-
grade
icy," but argued that this did not
two
find
one
would
Dominion
..
for
had asked merely
with the
method adaptable to their own
plan has been set by the
SEC for August
perhaps
with
exceptions,
Hearing
:
Street, New York 5
Bell System Teletype NY 1-920
;
continued
better
such costs "have gotten out
whether other holding compan¬
with
week
a
Mr. Davis said it was clear that
doubtful
is
cated,"
price of $8,-
$2,000,000.
and
it
operated by
a
.
By BRUCE WILLIAMS
Firmness
/
.
of
1
enact
1
compensate
to
Incorporated
\
14 Wall
;;
increase, plus 5.83%
wage
Quoted
—
Wood, Gundy & Co.
De¬
■
The CIO union had demanded
is
entire plan
the
and the AFL'S Metal Trades
partment.
raised objections.
Admittedly
call
call price, which
000,000
first
mortgage
bonds, since
North
American
is
still
20-year maturity, of the Laclede
Gas Light Co., carrying a 3%%' hopeful that the Supreme Court
coupon, and $3,000,000 of serial may obtain a quorum to hear its
j.
Bought 4— Sold
Current
,
I
Thursday, August 12, 1943
that
on
Curb
the
had
12,
the
found
failed
to
demonstrate that there existed in
million shares,
against 21.7 million shares in the
the vicinity of the exchange suf¬
ficiently widespread public trad¬
Copies of the Prospectus
be obtained from only such of the undersigned as may
legally offer these Shares in compliance with the securities laws of the respective States.
specialize in
may
to
make
CANADIAN
it
-
Municipal
the
and
ities
Corporation Securities
issue
for
the
E. SCOTT CO.
49 Wall
St., New York 5, N. Y.
WHitehaU 3-4784
Tele. NY 1-2675
in
Central
of
Power
Util¬
Kentucky
and
4's, the Commission, for pur¬
of these decisions, concluded
poses
Curb
FIELD, RICHARDS & CO.
H
case
Light
that the vicinity of
•
August 12;: 1943.
appropriate
the Curb.
on
In
HORNBLOWER & WEEKS
it
SEC to permit unlisted trading
Government
SMITH, BARNEY & CO.
this utility
activity in
ing
We
Exchange
States
of
.
the New York
comprises
Massachusetts,"
the
Rhode
Island,. Connecticut, "New '.York,
New
.
Jersey,
Pennsylvania, and
'
li
.yGlume 158 v. Number
4202
THE COMMERCIAL
'/■
& FINANCIAL CHRONICLE
601
*
DIVIDEND NOTICES
DIVIDEND NOTICES
War And The Slock
acc
American Car
;i
Company
30
m
Church Street
New
:
Yqrk, N. Y.
as "peace stocks." (In
comparing individual fluctuations
on
First Preferred Stock
The following dividends have been
■
Preferred Capital Stock
v"
:
One
and
V■;(
three-quarters
of
business
•
cent
per
payable, .October
to the holders of
"
»
M
1-1943'j
record at the close
^
,
September24, ; 1943;V j
1
'
/./.,?•
Common Capital Stock
:'
.
'
Two dollars
($2.00)
>■'.}, "<
••
share payable October a, -l'943"j to thefc holders
'
of
record at
September 24^£43.
//
j
»
business
J
The Directors have declared, for the
period July 1, 1943 to September 30,
1943,
Trust
Company of
-
etjpnnHK;;''-
record
close
the
at
of
business
^ *"t
;•
August '4, 1943
DE SOUSA
New York, N. Y., August 6,
NUMBER
132 "
idend
of
share
was
twenty-five
declared
Stock of
mon
1943,
the
div¬
a
centsper
the Com¬
on
Company,
pay¬
able September 15, 1943, to stock¬
holders of record at the close of
business August 20, 1943.
7'
1943
Southern Natural Gas
July
26,
Company
share has
per
on
Company, payable September 30,
the Common Stock of Southern
1943 to stockholders of record at
business
on
September 16,1943.
•/."
A
quarterly
been
10,
dividend of $0.50 per share has
on
the stock, payable September
stockholders of record as of the
business August 21, 1943.
declared
1943,
close of
to
JAMES
A
UNITED
quarterly
L.
WICKSTEAD,
STATES
dividend
of
Treasure:
LEATHER
$1.75
CO.
share
per
will
be paid October 1, 1943, to all holders of record
at the close of business September 10,
1943, of
Preference stock
this
of
facts, I reach four
current
MAKING
WAR
PRODUCTS
Company.
CAMERON,
months
without
DIVIDEND
York, August 11, 1943.
The directors of
have declared
five cents
Mfrs. Trust
of the decline.
cause
C. Because the market has the
of neither "shorts" nor
professional traders, it has fallen
more
precipitously than would
according
to
have
City, members of the New
Stock
per
share
the out¬
on
stock,
payable
close
of
this
Exchange. Copies of
interesting bulletin may be
had upon request from
sell & Meeds.
Laird, Bis-
the
been
Rail
Situations
Interesting
B. E. HUTCHINSON
decline
ment
Hotel
Bonds
Strong In Real Estate Security Market
Funded Debt Per Room Imporant Factor To Consider
Occupancy of New York City Hotels continuing around the 90%
level will naturally increase net income
considerably above the fig¬
ures shown when
average occupancy ranged from the 65% to 90%
level.
This factor, of course, has had a favorable
market effect upon
the hotel securities on properties which were
forecast
in
the
Invest¬
has
market
the
only
tained, this belief, being basedf
—■
partly on the experience after the ' are, in our
opinion, considerably
last World War, when the hotel
underpriced and are Worthy of
business
was
good for. several investigation by the speculative
years.'.
/./ /;//;'< / / ;■'■:/ :/:///V:/,: investor.
-v,
/:•:/-
opinion
On
these
nent to
of
The judgment of
grounds,
ask
Peace
is perti¬
it
Really
Unfavorable
Be
An
lots
of
of
part
or
market
the
the
TRADING
>
and
bonds
creating
SECURITIES
true value of
a
the stock.
SHASKAN & CO.
the
will
effect
which
have
actual
-
security
upon
For months now, the bal¬
ance
of
published
opinion
in
America has been that peace will
release
constructive, rather than
should be
to
investor
forces
destructive,
life.
in
our
eco¬
According to
stock
in
rooms
funded
room.
1600
IN
equity
more in
line with present day
realty val¬
and
MARKETS
REAL ESTATE
stock reduce funded debt
the
the
property and
capitalization
debt
Obviously
with
rooms
/Members New York Curb
40 EXCHANGE
of
Bell
the
PL.,N.Y.
Exchange
Dlgby 4-4950
Teletype NY 1-953
per
property with
a
a
Alembtri New Yorit Stock Exchange
given by
number
small capitali¬
Active Markets
zation per room
can benefit from
the present high
occupancy level
more than a smaller
a
larger
per
comparison
given
five
New
hotel
York
illustrates
price movements, the British still
Of
this
below
NJ.IitleJtge.
of
C2
Fl
properties
point.
Prudence Collaterals a.?/
other factors should
course,
So far our market
directly oposed opinion
SK
property with
capitalization.
room
The
feel that way.
several
on
the
where
consideration
Before we speculate on whether
has been brought appreci¬
ably nearer, it is well to appraise
nomic
circular
all
carry
in
cases
the
Factor?
peace
peace
securities
many
In the purchase of Hotel Bonds
Will
again
in
ues
basic questions.
some
tirement, increasing the value of
the
far
so
sober investors will become
Leroy A. Strasburger & Co., One
Street, New York City, have
prepared an interesting descripWall
earning fixed charges on
It is believed that high levels will be main¬
the lower occupancy.
few
a
Survey of March 4, 1943.)
live
Chairman, Finance Committee
,
case
prices.
business
August 20, 1943.
Real Estate Securities
years
Mortgage indentures providing
but this should not be taken for use of surplus funds over in¬
as indicating a long continued re¬
terest for sinking fund operations
action.
(This point was discussed will require the use of consider¬
at length and such sharpness of
able money for funded debt re¬
a
Laird, BisBroadway, New
York
the
at
possibilities
HAnover 2-2100
ago,
attrac¬
bulletin just issued by
sell & Meeds, 120
September 14, 1943, to stockholders
record
Co. offers
York
common
was
basic
apparent later, /:/;-»/u
Interesting
dividend of seventy-
($.75)
standing
revolution
rather than the
excuse,
registered
Chrysler Corporation
a
correc¬
V."
B. The ,'Italian
an
more
tive
ON
decline
real
any
tive reaction.
D. The
Treasurer.
The current situation in Manu¬
COMMON STOCK
market
over-bought
position, which has
building
up
for
fifteen
volatile traders.
efcjm
Association
Broad Street, New York 4
41
^
support
facturers Trust
of
these
.
fepentet &eUogs & Soni# She.
New
DODGE
Incorporated
Members New York Security Dealers
cor¬
is really based on an
CALDER,
Vice-President and Treasurer.
C.
NOW
the,close of
>\j,
\ V/
Dated: August 12, 1943//'v/-"/v//
Prior
CHRYSJ.ER
definite
a
speculative
Natural Gas
THE
Secretary
Seligman, Lubetkin & Co.
the "war"
on
upon request
"peace" status of the industries
been
quarterly dividend of 25 cents
Checks
1943
not based
was
current decline.
;
Common Stock Dividend Number 18
will be mailed.
W. M. O'CONNOR
cline
A. The
meeting of the Board of Di¬
held July 26,
of
declines, which shows that the de¬
From
H. GORDON
a
stocks
J relation between speculative buy¬
ing, in the past three months and
been declared
rectors
individual
covered, also shows
GEORGE'S.
A
At
the
Vice-President and Treasurer
«
THE ATLANTIC REFINING CO.
DIVIDEND
of
conclusions:
\
COMMON
that
Complete reports sent
.
;Howard C. Wick, Secretary
:
Average, it
noted that the "Aver¬
age" is so weighted as to make its
percentage fluctuation less than
or
September 10,1943.
Chari.es J. Hardy ^President
.
-
Dow-Jones
be
the outstanding $3.50, which it is composed.)
First Preferred Stock,
3. This same list of individual
payable October 1, 1943 to holders
of
the
should
on
Cumulative
closed. Checks will
be
quarterly dividend of S7Vz4
a
share
per
/;i
•••'•.
Tra
n
J
per
the close of
with
declared:
New York
City Hotel Bonds
their status
Dividend
w
v
1
.!*
Attractive
(Continued from page 591)
show any definite advantage from
OF AMERICA
*
./
Market
RADIO CORPORATION
Foundry
and
-
also be considered, such as current
and all other
offers a
yield, rate per room, prospect for
possibilities, but, as developed in the preceding
TITLE CO. CERTIFICATES & MTGS.
appreciation above present level
the firm believes. Copies of this
•'
section, I doubt whether such an due
\V''0y
to
business
outlook,
and
circular may be had from
Leroy interpretation of our market ac¬
amounts
available
for
sinking
A. Strasburger & Co. upon re¬ tion is justified.
SIEGEL & CO.
fund operations. Generally speak¬
quest.
•
There is not space to repeat
- .. •
39 Broadway, N. Y. 6
Dlgby 4-2370
here all of the reasons given over ing most hotel securities in view
Bell System Teletype 1-1942
;
the past year as to why peace will of present
earnings and prospects
Seaboard Reorganization
be a constructive factor, but a
Funded Debt
Aprrox. Yield
Possibilities Interesting
Number
quick resume follows:
Capitalization
on Bond
/of Rooms
Funded Debt
Per Roorai
1. Peace will bring to a close
•L.
H.
10%
Park Central Hotel
Rothchild
&
1,600
Co., 120 the destruction of human life and
$5,225,000
$3,284/
7%%
Hotel
St.
George
2,050
8,375,000
4,070
Broadway, New York City, have
5V2%
Hotel Lexington
of
material/ property;
both of
;
750
3,677,000
4,900 j
/
prepared a study of Seaboard Air
5%
Hotel
Gov.
Clinton
1,100
which
are
5,560,000
5,050 ,
impoverishing
the
Line, which they believe is es¬
5%%
Sherry Netherlands
375
6,000,000
16,000 '
world.
pecially timely in view of the
railroad bonds in registered form
which offer attractive
COLUMBIAN
CARBON COMPANY
Eighty-Seventh Consecutive
Quarterly Dividend
The Directors of Columbian
,
Carbon
,
,
,
,
<
Company have declared a regular
•
quarterly dividend of $1.00
per
share,
.
payable September 10, 1943, to stock¬
holders of record
August 20, 1943, at
3 P.M.
GEORGE L. BUBB
..
final
Treasurer
ter's
report of the Special Mas¬
plan for reorganization of
Seaboard.
Copies of this interest¬
ing study
Magma Copper Company
Dividend No.
84
On August
9, 1943, a dividend of Twenty-five
Cents per share was declared on the capital
stock of Magma Copper Company, payable
September 15, 1943, to stockholders of record
at the close of business August 27, 1943.
H. E. DODGE, Treasurer.
Corporation
a
15,
1943 to stockholders of record at
the close of business August 27, 1943.
H. E. DODGE,
LONG
O.
National
Radiator
BEACH, CALIF.—George
become
with Pacific Company
affiliated
of Califor¬
Co.
National
offer
in
The
Company and
Bank
according
attractive
to
and
Trust
possibilities,
memoranda
being
distributed by C. E. Unterberg &
Building.
Mr. Co., 61 Broadway, New York
previously
with
City.
Copies of these interesting
Franklin Wulff & Co., Inc. and
memoranda may be had from the
was local manager for Bankamernia,
Security
Thomas
ica
was
Company.
firm upon
request.
a
this
its
has been tremendous
war
at
release
close
the
will
only be of long pull benefit
but will accentuate the activity of
the reconstruction
4. Private
period.
5. Most
straints
of
•
the
"moral"
re¬
against inflation will dis¬
over
a
most
point of
opinion that, even
important
period of
be
rather than
one
Peace
date
than it
in
the
that
that the
me
affirmative.
Italian
It
is
true
not
forces have
tinguished themselves
answer
dis¬
military
naval factors in the
war, but
they have occupied the time and
as
or
used
be
the
up
material
Peace
with
of
Allied
them would
definite
a
saving of time, of
and of lives.
Still
equipment,
certainly, the Italian col¬
lapse will influence other German
more
morale
and
of
will
the
depress
Germans
I do not
traction at present levels accord¬
ing
to
bers
of the New York Stock Ex¬
request from Ira Haupt & Co.
Liberty Baking Corp.
Situation Interesting
ing my earliest possible date for
European peace any earlier than
Salle
the
pared
Really Nearer?
Of course, the mere passage
of
inevitably brings peace near¬
er.
Similarly, every step in our
invasion gives a clearer picture of
Allied
victory.
The
question
really to be considered is whether
the collapse
of Italian Fascism
makes
it
reasonable to
expect
time
_
Fall
of
this
have used before.
assumed
some
year,
which I
That possibility
such,
then
un¬
"breaks"
as
this.
The development is a de¬
finite cause for hope that the more
known, ifavorable
optimistic
forecasts
right.—Ray
Vance, A.
&
Co., Boston.
Ira
change and other leading national
Exchanges. Copies of this inter¬
esting circular may be had upon
has happened justifies me in plac¬
a
a
by
"bull,"
as
circular
being distrib¬
Haupt & Co., Ill
Broadway, New York City, mem¬
uted
the
that anything which
see
The 6% Cumulative Preferred
Stock of New England Power As¬
sociation offers considerable at¬
them¬
selves.
peace
New England Power Ass'n
Situation Of Interest
"bear" point on se¬
regarded
a
year,
curities.
Is
It seems to
Is
satellites
appear.
earlier
an
might have been reasonably ex¬
pected before that happening.
Forces.
savings will be at a
high level.
new
-•
at
peace
surface until the re¬
the
on
placement period is finished.
3. Technological progress dur¬
should
situations
to The Financial Chronicle)
Thomas has
tive
The
Nat'l Radiator Attractive
current
de¬
for
period of active replacement; the
depressing factors are not effec¬
this leter is the
The
the
call
to
not
The impact of events on invest¬
ment policy is discussed in the
current Bulletin issued by Strauss
Public
(Special
Policy
.
Treasurer,
be
of
effect
will
and
dividend of 37^ cents
Ser share was declared on the capital stock of
lewmont Mining Corporation, payable Sep¬
tember
Investment
first
ing
from Strauss Brothers.
Dividend No. 60
9, 1943,
Impact Of Events On
Brothers, 32 Broadway, New York
City.
Copies of this interesting
Bulletin with a list of suggestions
may
be obtained upon request
Newmont Mining
On August
may be had upon re¬
quest from L. H. Rothchild & Co.
2. The
struction
may
be
W. Smith
Caswell
the
&
Co.,
120
South
St., Chicago, 111., have
an
$4
interesting circular
cumulative
La
pre¬
on
convertible
preferred stock (non-callable)
of
Liberty Baking Corp., which the/a.
firm
believes
offers
interesting
possibilities at the present time.
Copies of this circular
upon request
may
be had
from the firm.
THE COMMERCIAL
602
Tentative Intl. Monetary
objective is to
actual
of the country or countries
those
re¬
store, in a preliminary fashion, the
facilities which will permit the
concerned;
forces of
consist of
the means of payment
a country's currency not
involved in the transaction, or of
(c)
capitalistic expansion to
their operations on an in¬
resume
If
balances located in
bank
ternational scale.
not involved
try
The Plan
a
own
potential borrowing rate
or
if the amount lent is in
of
excess
the borrower's permanent deposit.
Short-term loans may be re¬
more
than two
con¬
secutive calendar years.
coun¬
I. R. B. intermediate credits, for
.
International
Bank (I. R. B.) is to fos¬
Reserve
ter the flow of
commodities, serv¬
rep¬
"permanent deposit" will become
and payable.
For this pur¬
afid capital between nations,
ices,
due
and restore the international credit
of
To
75% of I. R. B.'s net earn¬
to be paid over to the
members, each member to receive
an
amount proportioned to
the
financially distressed countries.
accomplish these aims, the
pose,
ings
Bank shall:
(a) Establish, along the lines of
banking principles, inter¬
member.
otherwise
are
surplus.
a
■
used to build up
The I. R. B. may
impending
acquire
monetary
funds of the I. R. B.
(c): Serve as an agency in man¬
aging, so far as necessary, the
markets in foreign exchanges;
sum
(d)
clearing
Provide
central
and
banks
between
eliminate
un¬
necessary gold movements.
si:
:Js
sj:
1/35
Gold Dollar
the
be
(G$l—
ship
more
take out member¬
but no country shall have
than one membership. Each
member
may
make
must
a
minimum
"permanent deposit" of G$5,000,000 and agree to the following:
(a) To forgo an interest return
on its "permanent deposit" in the
I. R. B.
three
months
ma¬
turity;
/-r'-:(b) "Borrowing" on the credit
markets of members (with their
through
consent)
of
issuance
R.
I.
B.
the
short-term
of 3 to 12 months matur¬
paper
(c)
Any central bank or similar in¬
stitution
than
ity;.-/
of gold)-
ounce
Accepting time deposits of
individual
The monetary unit of the I. R. B.
shall
plus the total
deposits":
of "permanent
less
not
"'■////.
Issuing
term bonds
I.
R.
medium-
B.
(5 to 15 years matur¬
fully guaranteed by one or
governments of member
countries; ,• :.
/•;.
(d) Guaranteeing medium-term
obligations of members, or of in¬
stitutions within the jurisdiction
ity)
several
of the
In
.
well,
ization
of
governments represented.
case
of liquidation of the
is
is
to; function, in
the
on
a
organ¬
principle
allocating managerial power in
with
amount
the
risk capital invested.
determined by the I. R. B. Board
Its
fashion.
based
accordance
service
a
Bank
business-like
amount of which 'as
charge is to be
the
as
The
bility of supporting the credit by
The Plan limits
minimum
"clearing bal¬
ances," none of which may be less
than G$500,000, are withdrawable
on 60 days'
notice; "clearing bal¬
ances" beyond the minimum are
sight liabilities of the I. R. B. Ac¬
of
It may also
50%
of the
and 80%
minimum
of those in
that
amount
may
obligates it for the same reason
to maintain a reasonable liquidity
reserve
//.://■.■,/•.■
(in gold).
Further-limitations against over-
bal¬
expansion are offered by the pro¬
visions of quantitative and. quali¬
tative
control
over
the; bank's
excess
gold;
the rest in internationally mar¬
ketable short-term paper with at
The
lending ; operations.
amount
total
of
least two
signatures (one of them
of a recognized bank) drawn in
the currency of a gold standard
country. /
X i. v.
insistence of the plan upon
All assets of the I. R. B. Clear¬
collateral, pledges, guar¬
etc.; the policies such as. ing Fund are to be used solely in
the balancing of the national bud¬ connection with clearing transac¬
tions
and
for
pledged
not
-are
other
any
'
whatsoever.
used
be
to
busi¬
ness-like terms of each credit con¬
special
adopt to regulate his
the
borrow, to avoid
the danger of over-expansion, and
the. bank
cordingly, the fund is to keep at
least
ances
repayment prospects without re¬
newed borrowing from the I. R. B.;
***
panics;
■
util¬
or
times of
(a)
a
ance,"
The
"clearing bal-
on
participant is to de¬
minimum "clearing bal¬
of the minimum balances in
("borrowed") funds,
get, regulation of currency*. and
international by the following methods; such, the like, which the borrower may
an
as
posit
paid
Each
"/:•/////;•/'/./ antees,
.
ize additional
rediscount institution in
or
to be
obligations
current
abroad;
(b) Serve
actual
are
capable of fulfill-
not
their
ing
,
countries which
The rest of the net earn¬
ings
mediary credit (working capital)
for
resented, to advise about the pur¬
and desirability of the credit;
its availability from other sources;
pose
the legal status of a creditor in
"permanent deposit" made by said .the borrowing country; the possi¬
sound
facilities
are
ances."
■
the I. R. B. in
tioa, such country's consent to theW mprp than w yeavs< pre'up_
agreement must be obtained.
pose a thorough investigation by
Unless a membership is renewed £
a
Committee
of the Board, JL
on
at the end of twenty years the
which the "borrower" is not
The purpose of the
is not to be
Thursday, August 12, 1943
newed, but members are not ex¬ in proportion to the activity of the attract "preferred" capital (with¬
1
pected to be short-term debtors of account.
r'-: '///■■■'i out voting power) by borrowing.
the transac-)
in
above the I. R. B.'s
least 1%
(Continued from first page)
credit two-thirds of all votes other than
Its
FINANCIAL CHRONICLE
riod; the lending rate must be at
Stabilization Flan
satz system of international
relations.
&
The
tract.
underlying idea is to
direct the bank's credit policy so
or
as
purpose
to put pressure on
ers
v..';:///"/ ;.;Ky/
and to
the borrow¬
give them an induce¬
debts at
opportunity.
:
After the war, relief and lendis served, in par¬
are
lease cannot continue indefintely; ticular, by the provisions of the
month in advance of the grant¬ financial' aid to
countries with a plan about interest and amortiza¬
ing of the credit, so as to pro¬ ."distressed" halance of payments tion, rates charged to the bank's
vide opportunity for public dis¬ will have to be
organized to en¬ borrowers, and about those they
cussion.
/;
;■/;// ''//:/.),,■', able and induce them to bring in turn charge to their clients.
The credit may be granted in their houses in order. ; But this The purpose is not only to put a
the form of a direct loan, or of a can be
accomplished only if the premium on early debt-repayr
guarantee of the borrower's bonds "rich" are willing to make rea¬ ment, at the same time. securing
by the I. R. B. alone or in con¬ sonable sacrifices for the benefit the liquidation of the bank's own
junction with the guarantee pro-, of restoring international equi¬ obligations, but also to create an
vided by one or several member- librium. With these two
thoughts interest-rate-differential, which is
governments.
The terms of the in mind, the U. S. might con¬ imperative if the free flow of prir
credit may require the deposit by tribute
something like $2,000,000,- vate capital from countries with
the
borrower
of specified
col¬ 000 as an interest-free, long-term a surplus in the balance of pay¬
lateral, or the pledging of speci¬ "deposit."
It is likely that short ments to those with an unfavorr
fied sources of revenue. ;/ of
unexpected
occurrences
the able balance should be resumed.
of the loan. ; ■
of the Committee
to be published at least one
economy; terms
.*
*
•
•
/v
Commentary
ment tp liquidatevtheir
the earliest
'/f-y-.-
The findings
•
This objective
*
-
* :
• >
.
I.
'
intermdeiate
B.
R.
*
may serve:.
■
higher rate of interr
moderately higher
one is suggested—is likely to have
ance of payments (or with- surplus
gold reserves), will be able to 'the effect of inducing greater
keep long-term balances with the i economy in the public household
U.S.
well
as
as
credits countries with
.
'
,
number of other
Moreover, a
"favorable" bal¬
a
a
est—and only a
(a) To liquidate debts owed by
(b) To renounce all claims upon I. R. B., its liabilities by "bor¬ the borrower to other
members;
its
"permanent deposit" in the rowing" (including those incurred
(b) To finance specified inter¬ I. R. B. A number of members
I. R. B. in the event it withdraws by its own guarantee) shall be a
national transactions, such as the
may shift back and forth between
from the I. R. B. before the term prior lien upon all assets of the
purchase or sale of inventories in the creditor and debtor position.
I. R. B., excepting the assets of
of its membership has expired.
foreign countries;
At any rate,-the entrance of the
(b-1) However, should!the I. R. the Clearing Fund.
(c) To stabilize the gold or for¬ U. S. into the Bank, and the pres¬
The I. R. B. is to maintain at ;
B. be liquidated the above provi¬
eign exchange value of the bor¬ sure exerted by the provision that
all times a gold reserve of at least
sion will not apply.
rower's currency.
■*<
no
discriminatory monetary pol¬
of its liabilities maturing
(c) To refrain—except with the 10%
In so far as the loan serves the icies are
permissible among mem¬
consent of two-thirds of all votes within a year. Other outstanding
last purpose (exchange stabiliza¬ bers
(but permissible against nonentitled to be cast—from chang¬ obligations, direct and guaranteed,
tion), the funds lent by the I. R. B. members);,* should induce every
ing, or permitting to be changed, maturing in more than a year's remain under its direct
control, toi important country to participate.
the
gold value of its currency time are to be serviced by an
and to strengthen
iits export position by a moderate
! "deflationary"
impact on costs, r
iof the borrower,
|
The same aims are
served by
that the borrowers
■the condition
,
of amortization fund, that shall con¬
fluctuations
within
the
gold sist of gold, the amount of gold
points).
; v being proportioned to the num¬
(d) To refrain in dealing with ber of years of the obligations'
other members, from direct or in- maturity.. ' a
///Z^/:;///
•, . :
direct exchange-manipulations
The I. R. B. may only lend to
such as foreign exchange "con¬
trols," multiple currency systems, members, and with their consent
capital export or import prohi¬ to financial institutions within
bitions
Each
(except
embargoes
on their respective countries.
(beyond the
customary range
.
foreign securities), inter¬ lending' operation shall require
national clearings of the German the affirmative vote of two-thirds
type, and commodity import quotas of all votes, excluding those of
the "borrowing" party. If the pur¬
of the French type.
The management of the I. R. B. pose of the lending is to finance
listing
is to be vested in
posed of
a
com¬
transactions between several coun¬
or rep¬
tries, each of them to be regarded
as a "borrower," a borrower shall
Board
representative
a
resentatives of the members.
Each
such representative or representa¬
tives shall have one vote for every
not
G$5,000,000 deposited in the I.R.B.
by the principal of such represen¬
party.
tative
or
otherwise
representatives.
specified,
Unless
all decisions
to be made by majority vote.
At least 50 % of each member's
are
be
times
entitled
when
he
to
is
vote
an
at
those
interested
a;■„/'/'.; —'—'-i.\}••; V.'.-:■
■■
own
least
lending rate at all times at
1%
over
and above the rate
under
its
man¬
own
agement such as by the purchase
and sale of, currencies and inter¬
nationally
credit
marketable
in¬
struments, including dealings in
exchange "futures."
The intermediate "borrower" is
in
the following obligations
to
addition
mentioned
those
above:
(1)
forego the
any other
To
credit for
the
which
for
one
use
of the
purpose
it
has
but
been
specifically provided.
(2) To limit the combined vol¬
ume of outstanding legal currency
and
central
bank credit
(other
than currency) in
the "borrowing"
country to the amount outstand¬
ing at the time of the granting of
/
the credit.
.■•/■■■ 6.^/
(3) To eliminate the deficit, if
which
it
borrows
from
else
national budget, or
the
in
to
finance it by the sale
of
long-term bonds, which are not to
the
4
not located within the
jurisdiction of the country of the
to rediscount credits to members.
If the amount borrowed is in
ex¬
member, However, the privilege cess of the member's. permanent
of paying up to 50% of the "per¬ deposit, collateral has to be de¬
manent deposit" in a form other posited preferably in the form of
than gold is to be subject to the foreign securities or foreign prop¬
erties held by the borrowing mem¬
following provisions:
(a) The member offering the ber. The interest charge on such
operations
up
to
the
deposit guarantees the '/face lending
value" in gold of such legal tender amount of the borrowers perma¬
or bank balances;
nent deposit must be at least one(b) The "face value" of such half of 1% higher than the rate
means of payment is determined
at which the I. R. B. itself actually
by agreement .between individual
members and the Board of the borrows or presumably would be
I.R.B,
The
decision
will
require
Indeed,
not
much to
so
currencies,
-
/
-
by the prohibition against its is¬
suing more legal tender and cen¬
rescue
the borrowers'
is
But the plan foresees
individual
rather
but
As to balancing
budgets, it should
be brought about as a matter of
ultimate financial reconstruction.
tral bank money.
.
objective
main
the
to
construction
bring
bilization, at least so far as the
important trading nations are con¬
1920s
helped
to
create
?
that this re¬
a fairly
take
reduce
which
cerned.: Credits pe* se could not
accomplish this
obj ective.
We
should avoid the repetition of the
international credit policies which
the
may
long time, and suggests in the
meantime that it may. suffice to
the deficit to proportions
about and maintain all-round sta¬
in
stop inflation in the
country, as indicated
are
absorbed by
genuine
savings. The provision that
borrower's budgetary deficit
the
has
to be limited to the equivalent of
the proceeds of "non-bankable"
a
long-term
loans
(volutary, or
prosperity" and led to a
forced), should fulfill this con¬
general breakdown. It is with this1
dition, namely, to avoid further
objective in mind that the mem¬
inflation, • without putting undu.e
bers are asked to accept the obli¬
"false
deflationary pressure on
the bor-
gation of restoring stable mone¬
rower. ■
.;'/&•"h / ;•/■:-/ ■ »■: i- >;/.
conditions, eliminating dis¬
'/p'/
* /.v* v/i
criminatory monetary policies di¬
One of the most urgent' post¬
rected against one another. With¬
war financial' problems is that of
out some such provision of sta¬
the so-called abnormal balances
bility, all international credit ac¬
owed to foreigners. • London, in
tion may prove futile, because its
effects on restoring the distressed particular, is burdened with short
term liabilities of such, magnitude
countries'
balance
of payments
that the withdrawal would many
may soon be offset by discrimi¬
times exhaust the British gold re¬
natory manipulations on the part
serve.,
The plan proposes two
'
any,
be eligible to banking institutions
of the borrowing country either
"permanent deposit" is to be paid I. R. B. or makes use of the latfor investment or to collateralize
in gold. The balance may be paid ter's guarantee.
//■//:
in currency which is recognized
The I. R. B, cannot lend to any loans/v-';\/-:'>://:.////.;:/:;,:/// /././/
Intermediate credits of the I. R.
as
full legal tender, within the single country in excess of 20%
B. are to carry an interest charge
jurisdiction
of the
country
in of I. R. B.'s capital plus "per¬
which is at least 1% higher than
which the member is located or manent deposits."
the last ten years' average rate
in the jurisdiction of some other
on
long-term government bonds
member.
The balance may also
Short-term
lending,
for
not
of the borrowing country. But in
be a deposit in a recognized bank more than one year, is restricted
no
evfent shall the interest rate
whether or
at
merely to
borrowing
ship in the International Bank be
as
comprehensive as possible to
avoid monetary warfare and its
disastrous consequences to pros¬
perity and peace.
(to raise interest
irates) is intended to cause violent
deflations.. The prime purpose is
It is most desirable that member¬
;
to accept
The
borrowing member or in¬
stitution is obligated to keep its
utilized
be
their national .budgets ip
Neither this obligation nor
bring
order.
ithe. previous one
be
less
3%, plus an annual
than
amortization rate rising from year
that in the year before
matures, the balance of
to year, so
the loan
the loan shall amount to not more
than 50%
of the original amount
of the loan.
.
❖
International
*
*
Clearings
by
the
tary
.
of other
On the other
countries.
are
to be
to all members of the I. R.
able to borrow for a similar pe- to
B., and
financial institutions. Interest
and ultimately
,
country may
mobilize its "frozen!'
punishment
privilege.
It claims against the debtor country
leaves to each member country by using them as part of its own
the choice of the tariff system,
regarded
were
rather
and
of
asks" its
than
tariff
as
as
a
a
rates,
consent
to
and
merely
refrain from
organized sep¬
the
arbitrary
use
of practices
arately in a "Clearing Fund," but
which were frowned upon until
managed by the I. R. B. Board.
recently by the civilized nations
Participation in the fund is open of the Occident as detrimental to
I. R. B.
to mobilize
ways
provision does/ not
liquidate such "frozen" liabilities.)
more interference with the;
The debtor country may borrow
freedom of action of each country
from the I. R. B. to repay part
than was customary previous to
or all of its overhanging foreign
1931, when such methods as the
devaluation of one's own currency obligations. Or (and) the creditor
this
hand,
imply
the
perpetrators
others.
and
unfair
to
permanent deposit at the I. R. B.
the creditor re¬
In the latter case
ceives
stalments,
sibly
,
payment in 20 annual in¬
without
interest, pos¬
at a reduction in the gold
value of the claim.
is chosen
Which method
and how much discount
3W«WW«
vwmmM
Volume 158
Number
deducted
from
the
original
(par) value of the claim, will de¬
pend on circumstances such as the
total of short-term foreign liabil¬
ities burdening the debtor coun¬
try, and the urgency of the cred¬
itor's claim for repayment.
is
it
as
to
func¬
the
tioning of the plan that it should
operate
in
a
"self-liquidating"
fashion, no provision is made to
enforce
the
repayment
of the
loans
extended
obvious
by the bank—for
But
reasons.
•
HOOVER
statement
safeguards
to be erected, so far as pos¬
sible, to avoid its breakdown. In
for
20,206
is
of
i
cleaners.
:
Underwriters
Co.
manufacture
At
present
doing an extensive business in
is
Hornblower
<&
the
in
vacuum
products,
war
>:■' -1
•
the
of
group
addition
to
limiting the bank's
expansion,
as
discussed
above, the following safeguards
against an unsound utilization of
its credit are offered by the plan:
; (l-> In no credit given by the
bankVshould the member con¬
cerned: have a say, other than in
an informative capacity.
The ac¬
ceptance of a
country's claims
against another country in lieu
of gold is, of course, tantamount
to a credit extended to both, and
eliminates the voting power of
>
both
far
so
that transaction is
as
,\
concerned.;;
1
;;
j (2) The bank is entitled to de¬
.
mand specific collateral from bor¬
rowing members, or the pledging
of specific revenue sources to ser¬
vice the debt.
likely
be
to
debtors if
Such conditions
more
are
acceptable
the creditor is
a
to
"neu¬
in
named
exchange
change
offer
fourth
day
to
expires
.
purchase
stock not
publicly
ment.
of
any
ice
of
from
holders
the
on
the
of'
the
becomes
have
agreed
preferred
new
stock
who
be
to
filed
be
also
4'/2%
new
by
amend¬
purchase
may
preferred
shares
them
received
change for their 6%
a
the
to
bankers
some
large
p.m.
date
the
underwriters
pi
a
The
mon
1
at
exchanged which may be offered
at
in
preferred.
The com¬
from certain
will be offered at
also
price to be filed by amendment.
of
any
the
holders
of
stock to
the
will
company
proceeds
from
the
and
underwriters
which
sale
ceeds
the underwriters will
together with other funds
plied,
by,
to
preferred
price
of
pro¬
the
the
be
management than if one
eral
individual
or
sev¬
creditor-countries
of
shares,
at
per
share
$100
the
redemption
plus
accrued
.(7-23-43),;
would impose them.
associates
NORTHERN
bilize the value of the borrower's
000
(3)
should
currency
be
left
in
the
hands of the bank, a specially ap¬
Exchange
pointed
Management
Committee of which should be in
'
'•••7.'.:', ♦
•
s!s
*
-'v/:
',)p'
ing success
or.
failure
of
an
attempt to establish a "prelimi¬
nary" equilibrium in the interna¬
tional accounts of distressed coun¬
tries is the willingness
of the
first
1,
Aug.
rate
at
$22.50
share.
per
INDIANA
PUBLIC
SERVICE
....
bonds,
Series
dated
C
Aug. 1, 1973.
Interest
supplied by amendment.
pv
Hohman
Ind.,,
Ham¬
Avenue,
'
»
Business—Public
engaged
utility
principally
manufacture,
t
,
operating com¬
in the produc¬
purchase,
supply,
transmission, distribution and sale of elec¬
trical
enerev.
gas
and
water.
Underwriting—Company
bonds
for
sale
on
Co.,
the bonds to
under
-
the
-
will
4
and
12
by
-
!
..
Halsey,
associates
Stuart
1027/8 and
at
WEDNESDAY, AUG. 18
FEDERATED
Federated
ac¬
Department
STORES,
Stores,
registered 224,470 shares of
interest.
list of issues whose registration state¬
than twenty days ago.
These issues
grouped according to the dates on which the registra¬
become
course
DEPARTMENT
INC.
&
a
tion statements will in normal
•
.
offer,, the
competitive bid¬
share—50.000
effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain foreign public authorities which normally become
effective in
seven days.
dates, unless otherwise specified, are as of 4:30
P.M. Eastern War Time as per rule 930 (b).
Offerings will rarely be made before the day follow¬
ing.
These
bearer
scrip
ously
with
shares
for
exercise
proposed
of
Wilmington,
are
to
THURSDAY, AUG. 12
KANSAS-NEBRASKA
INC.
GAS
dwight
CO.,
-'.-V
has filed
Gas
Co., Inc.,
registration statement for 12,-
a
shares
stock,
Natural
of
cumulative
$5
without
Trust
Del.
*
department
and
specialty stores.
Underwriting—There
no
underwrit¬
the
prospectus
are
ers.
Offering—According
of
the
of
common
securities
of
exchange
to
registered
Federated
for
123,161
common
share
per
plus
.7 7
$1,2 75,000,
pany's
the
net
the
to
writers.
the
Boston.
demption
cotton
goods.
There
are
two more considera¬
tions which make it
extend
Noyes
&
underwriters.
Co.
Other
&
shares
to
Junius
under
the
the
registered
of
are
by
Sturgis
Henry
Spencer
will
10,000
73,-
underwriters
Inc.,
Co.,
Morgan,
John
to
as
Pierpont
be
sold
in¬
by Henry Sturgis Morgan to
Noyes & Co., one of the under¬
will
go
to
the
selling
shares,
of
price
>7
.
announcement u not an
~
"
financial
Federated.
offered,
Fed¬
shares
of
15G.730
Federated
is
&
to
to
receive
Straus
unit of 0.5
The
•
offer to sell, or
of
3,905 shares of Lazarus
unit of
per
Also,
of
shares
of
share
one
the
k*
f,
*
Federated
at
common
of
securities
Lazarus
Industrial
registered, 300,000
fund
fund,
Fund.
issued
the
common
are
or
proposed
are
purchase
stock
of
of
or
to
be
/•
1
and other dealers
as
may
to
into
certain
by
would
only appear
as
so
far
as
Federated
net
from
proceeds
the
inc.
Inc.
Underwriters—None.
the
to
has
shares.
(7-30-43).
(This
list
is
incomplete this week-)
a
solicitation of an offer to buy these securities.
)
1
Company
*
*
V * V
i.
JV,
«•
V
r
"
7 J'
Due August 1,1973
•■■■■'!
lawfully offer these securities in such State,
disposal of the bank
from
they intend
A. C. ALLYN AND COMPANY
Some
necessary
A. G. BECKER & CO,
INCORPORATED
to bor¬
provision might be
to restrict the right of
which
row.
INCORPORATED
BLAIR & CO., INC,
countries to borrow from the I. R.
B. unless they were
members from
CENTRAL REPUBLIC COMPANY
the outset, or else have been mem¬
bers for a waiting period of, say,
years.
Perhaps, this will be
accomplished by the mere fact
that most countries in a favor¬
two
able
GOLDMAN, SACHS & CO.
HALLGARTEN & CO.
(INCORPORATED)
HARRIS, HALL & COMPANY
LADENBURG, THALMANN & CO.
W, C. LANGLEY & CO,
(INCORPORATED)
gold position at present are
OTIS & CO*
creditors with balances which are
might become, frozen. The pos¬
sibility of liquidating these bal¬
ances through "depositing" them
WHITE, WELD & CO.
F. S. MOSELEY & CO.
or
in
the
I.
R.
B.
may
prove
HEMPHILL, NOYES & CO.
suf¬
inducement for countries
whiqh might be otherwise inclined
to the fallacious policy of finan¬
cial self-sufficiency.
ficient
August, IZ, 1943
of
Registration Statement No. 2-5190. Form
A-2.
'
their surplus
funds at the
are
sale
company.
HALSEY, STUART &, CO. Inc.
they need funds,
for
com¬
execu¬
registered, they will be added
general working
capital- of
the
they need credit. No indus¬
trial banking eould operate if cor¬
and would never put
is¬
be
warrant plan.
when
customers when
to
issued
conversion
Federated
Theprospectusway be phiained in. any State inwhich this announcement is circulatedfrom only such of the undersigned
;
price
101,309
tives of subsidiaries of Federated under the
Address—650 Seventeenth Street, Denver.
Business—Diversified investment fund.
Price 1027/s% and accrued interest
.
a
common.
registered
practically
One has been
before: that
S.
sued upon the exorcise of 51,309 warrants
outstanding, and
50,000
warrants
now
being registered.
The warrants have been
received
offering is made only by the Prospectus.
fl
*•> 'l
at
A.-&
22,742
Mortgage Bonds, Series C, 3^
.,(•'*/:
16,911
common,
snares
shares, Federated is
to receive 37,904 shares of Bloomingdale
common,
at a price per unit of
1.66%
shares of Bloomingdale common,
and as
to 3,905
shares, Federated is to receive
as
company's
industrial
Financial
Dated August 1, 1943
the membership of the I.
porations
Wm.
securities
77
.
of
be
to
receive
Abraham
per
common;
mon
MONDAY, AUG. 16
re¬
Statement No. 2-5186. Form
(7-24-43).
shares
to
Proceeds—In
Sept,
Registration
imperative to
all over the
pointed out
comprehensive mem¬
bership in an organization oper¬
ating on the principles outlined in
the foregoing plan is vitally im¬
portant to avoid the repetition of
monetary warfare. Secondly, it is
important that countries should
not become members only if and
B.
R.
world.
of
common, at a price per unit of
shares of Filene's common; as to 33.-
2.5
a
S-2.:(7-27-43).
15, 1943.
Balance of
net proceeds,
estimated at $243,000, will
be added to the company's working capital.
on
subsidiaries
Co.,
is
shares
Registration Statement No. 2-5187. Form
com¬
&
62,692
outstanding
preferred stock has been called for
S-l.
the
Proceeds
9,824
shares
of
$6
cumulative
preferred
stock
at
$105
per
share will require $1,031,520.
All of the
$6
Street,
stockholders.
proceeds, estimated
of
of
sold
while
dividually
dividends.
retirement
and
Morgan,
$105
be
Morgan
Hemphill,
public
to
As
822
group
to
are
P.
executors
,77
price
accrued
Proceeds—of
at
1,500;
Kan.,
Dallas, 625 and
Minneapolis,
625
Co.,
,
,
the
Morgan
Abilene,
Inc.,
registered are now issued
Franklin
Proceeds—Of
J.
,
shares
share.
per
will be supplied by amendment.
Offering—Offering price to public will
supplied by amendment.
514
Offering—Offering
a
names
Underwriting — Underwriters
are
First
Co. of Lincoln, Neb., 5,625 shares;
Cole & Co., Topeka, Kan.^ 2,250;
Harold E. Wood & Co,, St. Paul, 1,875;
shares.
filed
outstanding.
heads
.
&
Lazarus
has
$12.50
Underwriting—Hemphill,
Beecraft,
Co.,
co.
Co.
Business—Manufactures
utility
be
Pierce
value
par
Address—89
Nebraska.-
Trust
of the
and
in its transmission and wholesale and
retail distribution in, the States of Kansas
First
,
offered
stocks
Filene's
All
preferred
and
'
ingly American enterprise.
j 1
shares
be
to
are
Co., Abraham & Straus, Inc.,
Bros.,
Inc.,
and F.
&
R.
Bloomingdale
capital stock,
ly, of natural gas in the State of Kansas,
Rauscher,
Manufacturing
Filene's Sons
15
erated
company engaged in the purchase, primari¬
'
institution, but will also prevent
it from becoming an overwhelm¬
,
Co.,
holding
company
owning
directly or indirectly securities of corpora¬
tion engaged generally in the operation of
registration statement for 83,514 shares of
value.
par
Address—Phillipsburg, Kan.
Business—Is an operating public
AUG.
manufacturing
Dwight
Kansas-Nebraska
500
NATURAL
SUNDAY,
Northern Indiana Public Service
t'"l^,l",
a.
filed.
Corporation
$45,000,000
s
upon
Business—A
in
This
.
»"„»
issue^
and
,
Argentina, South Africa and Bra¬
zil, etc,, should be mobilized pro
only strengthen
the resources of the international
total
deregistered in
amendment
Address—c/o
plan
subsidiaries
warrants
post-effective
$10
10,000
the
by
a
stocks
of
and
Of
123,161 and 51,309 previ¬
the company in con¬
registered
nection
has
stock
value
warrants
certificates.
shares registered
Inc.,
common
value—assigned
par
peo¬
ple of the United States to co¬
operate by risking a substantial
amount of gold. But the coopera¬
tion of other countries, which may
not be in any need of immediate
support by foreign funds, is also
essential; the surplus liquid re¬
sources
(gold and foreign ; bal¬
ances) of countries like India and
rata. This will not
1943.
p.m.
..
.
Aug. 9 to Halsey, Stuart
3VaS at a price of 101.719.
as
Aug.
Inc.,
crued
effective
1943.
Approximate data
offering Aug.. 17,
investment.
Registration Statement No. 2-5188. Form
S-5.
(7-28-43).
awarded
Co., Inc.
Offered
of
Interest
statement
July 27,
Bonds
&
proposed, public
Proceeds—For
Registration
EWT
bonds,
10674%
at
on
Following is
are
,1943r due
Address—5265
mond,
redemption
Bigelow-Webb,
mortgage
will be
1969,
$47,812,500.
Offering—At market.
of
of
per
?
registration statement for $45,000,-
a
tion,
■
prime factor in determin¬
The
i
'•
CO, '
1,
or
com¬
funds
Statement No. 2-5178. Form
(7-8-1943).
8-1.
Trust
12 by Smith, Barney & Co.
Northern Indiana Public Service Co. has
filed
pany
Charge of the borrowed funds,
f.
date of
United
Whenever feasible the loan
is not paid out at once to the bor¬
rower.
In particular, loans to sta¬
I
due
amount
the
other
without
and
Offered Aug.
and
A,
face
the
to
the
Registration Statement No. 2-5185. Form
s-i.
Aug.
the
ap¬
dividends.
tral" instifution with international
Series
of
Registration
for the redemption
company,
face amount of 3%%
to
go
company, to the redemption on a date not
later than Oct. 1, 1943, of all unexchanged
6%
the
of $45,000,000
common
will
stockholders.
Net cash
received
by the company for
preferred stock to be sold by
company
post-
of
expenses
out
..
selling
4Va %
by
;,
amendment.
funds of
not receive
preferred
4J/2%
the
ex¬
purchased
stockholders
Proceeds—The
supplied
plus
be, paid
will
company.
ments were filed less
amendment.
registration
after
The
be
redeemed,
pany
the
now
following
prospectus
effective.
by
like number of. its 6%
outstanding.
Ex¬
for a
shares
preferred
be
of
Proceeds—Proceeds from sale of Series C
underwriters.
Offering—Company is offering 20,206 of
its 4'/2 % preferred shares, share for share,
be
Names
bonds, exclusive of accrued interest, will be
applied,
together
with
other
necessary
Weeks
head
Commission.
.*
Others
will
effective
Smith,
Barney
&
Co.,
and Field, Richards
—
&
the
of
Offering—Price to
value
common
and
Business—Engaged
company
4%%
of
par
110,000
The com¬
outstanding.
Canton, Ohio.
issued
Address—North
sale
shares
new
and
value $5 per share.
par
stock
and
registration
a
cumulative,
share,;
per
shares,
has filed
stock,
preferred
rule
underwriters will be supplied by post-effec¬
tive amendment,
COMPANY
Hoover Company
mon
ding
OFFERINGS
are
credit
WMWltoVrv
Calendar of New Security Flotations;
$100
Essential
i'tti*. -n Hjswwrf^^
THE COMMERCIAL & FINANCIAL CHRONICLE
4202
is
;
M«Wf«tt5rA*^tt^ '.v 9M«tfe
L.
F.
ROTHSCHILD & CO.
THE COMMERCIAL & FINANCIAL CHRONICLE
604
For Dealers
Teletype—N. Y. 1-971
IIAnover 2-0050
Firm Trading Markets
.
j
.
N. Y. & Harlem R. R.
Common
Trading Markets in
Bendix Home
SECURITIES
FOREIGN
.
Active
Thursday, August 12, 1943
Class A
Appliances, Inc.
and
N. V. & Harlem R. R.
Common
all issues
4s, 2043
Majestic Radio & Television Corp.
f!ARL MARKS & PP. INC.
-
\
4
.
Preferred
FOREIGN SECURITIES
and
Allen B. DuMont
Common
M. S. WlEN & Co.
Laboratories, Inc.
SPECIALISTS
Class A Common
,
Members N
New York 4, N. Y.
50 Broad Street
On Governments"
'*•.
,•••■'
Members
,
Teletype
INCORPORATED
.
New
York
Security
By S. F. PORTER
NASSAU
4 5
talk about the tax-exempts. . . : The
people worrying about the Subject and spreading rumors which they
fear may come true are bringing about - exactly what they want
least.
And that is conversation about removing the exemp¬
request
on
Dealers
STREET,
NEW
Air Communications
philadelphia
telephone
5
YORK
2-3G00
REctob
Enterprise 6015
•
new
-Copper Canyon Mining
Teletype
Bell
telephone
Great Amer. Industries
1-576
york
,
.
General Aviation Equipt.
Cent. Pub. Util. 5% '52
.
.
knowledge of the situation. . . . And that
Attractive Situations
Interesting Speculation
on the matter because the conversa¬
Blair F. Claybaugh & Co., 72
Adjustment Mortgage 5% In¬
tion is going on and because the public is aware of the favoritism
shown to banks who happen to hold the exempts. . . . This is straight come Bonds due 1960 of the Third Wall
Street,
New
York
City,
and definitely accurate talk.
Without disclosing the source of Avenue Transit Corporation ap¬ members of the Philadelphia Stock
these comments it may be said that they are completely represent¬ pear to enjoy a unique "straddle" Exchange, have prepared interest¬
ative of the opinion holders of exempts are most interested in position in the market, offering ing circulars on Ft. Dodge, Des
interesting possibilities for specu¬ Moines & Southern Railway (4s
knowing.
' \
/•""
-/v '■r-V'
lative investment, according to a of 1991 and common), Utica &
;
To put it flatly and once and for all:
;
detailed
circular
prepared
by Mohawk Valley Railway
(4%s
(1) Stop worrying about the possibility that the exemption
&
Hardy
Company, 30
Broad of 1941), and Consolidated Dear¬
on
certain Government bonds may be eliminated by Congresborn
St., New York City, members of
(common), which the firm
sional action or Treasury policy;
>
the-New York Stock Exchange. believes offer attractive possibil¬
(2) Stop talking about the subject altogether;
I!
ities at current levels. Copies of
Copies of this interesting circular
;
(3) Ignore the unauthoritative and unwarranted gossip you
these circulars may be had upon
may be had upon request from
may hear or read about a near-term change in the status of
request from Blair F. Claybaugh
tion.
.
.
And that is public
.
is possible
Congressional action
.
.
L. D. Sherman & Co.
Pine
30
.
Bell
Hardy & Co.
*
Co. :
&
v.:
■
;
This is "official".
.
.
know the pattern, you can go on with your own
policy from there.
Of course, the commercial banks can't play
with these, so this is directed just at non-bank buyers.
;
/
most discouraging thought even to have for an
instant—these few paragraphs may be accepted as "straight from on
high".
"
■
■'
"•
'
The key issue of the exempt list—namely, the 2%s of 12/15/65/60
—has now stabilized around 112 and slightly above.
The issue
anybody
.
any more—a
,
.
.
"Consolidated Dearborn Com.
/'''-S''-'' V
CURVE
Presented just for consideration.
What about high-grades when peace comes?
:
.
MONEY
Valley Ry
4'/2-41
.
.
THE
Ft. Dodge, Des Moines &
you
.
And unless there's no basis for believing
.
once
Teletype NY 1-2218
*Utica & Mohawk
-
(4)
And
System
BUY WAR BONDS
.
Don't let your judgment on purchase or holding of the
exempt bonds be influenced by the gossip you hear now or by
stories you may hear in the coming months when the "boys"
have nothing else to talk or write about. .... .:
Street, New York 5
Telephone WHitehall 4-7970
...
exempts;
Dealers Ass'n
HAnover 2-8780
L> 1-1397
Loft Candy
Association
funny thing, this
a
N.
Kobbe, Gearhart & Company
;
"Our Reporler
Y.. Security
25 Broad St., N.Y.
Information
r
It's
When Issued
Southern Traction 5/50
•.
.
What about the
.
...
.
.
.
jumping all over the place, falling from 112.30 to 112.0,
then rising back to 112.14 and declining to 112 again and now it's
back to 112.3.
Indicating that 112 is the bottom, temporarily at
has
been
.
least.
bond
.
.
*
And indicating
.
that unless the 112 bottom is broken, the
while to any
level buyers
push it. . . .
....
* •
:
"If the bond does break 112" says one dealer whose opinions
have been remarkably accurate lately, "then it may sink down to the
.
finally reaches
to taper off?
.
.
<,-•! •'••
.
-i
•
of course, has been under severe pressure as a
have suffered
Rochester Transit Common,
peak and the need for rigid'artificial control begins
a
We've been hearing a lot about this lately..
.
likely to rally along with the market for a
is
curve, the long, long era of record-low interest rates? . ,
And what about Government bonds when the war financing period
money
:
..
The stock market
result and stock prices
;
of their worst declines in two years.. . .. High-grade
bonds have been affected slightly, but not to anywhere near the same
.
one
But the
rumors.
.
..
Those
rumors
one
!
bit.
a
come.
.
.
'.v.';/'
\
V
generally, that too seems to have settled down
Prices are holding near their lows on this move. . . .
.
Trading has dwindled to a definite minimum;
$5,000,000,000.
.
.
,
down to
And the 2X/2S are
point premium which is low enough at this date. . . .
The 2% issues are doing nicely too.
.
.
a
.
.
.
loan
drive.
It doesn't take any inside information to know that
there'll be another multi-billion dollar issue of 21/£s out within
another four weeks.... So the longest issue of 21/£s—due 1969/64
—is now coming into some good competition from the next bond,
slated for sale at par...
Thus the reaction in these from a high
of 100.22 to the present price of 100.8...
Which is about as low
■i. 1
i
Of
course
the 2%s are depressed by the pending war
•
the bond
can go
for
a
while.
.
,
premium
or even
But this
And surely,
,
down to a fraction over par.
Meaning?
year
That's
rally.
.
.
.
And
control
.
.
:
«
.
.
i
the
over
Think it
make
and
Bank
Insurance
and
Stocks
Calendar of New Security
Canadian
Explosives
Securities
Quoted
Our
...........
HAY, FALES & CO.
York Stock Exchange
71, Broadway N. Y. BOwling Green 9-7027
BaU T.iatro*
mr i-ei
' I
Real
on
Reporter's
Utility
Railroad
i.
600
597
Trusts
Reporter
Public
.
Pittsburgh
Beach
any
Secretary of the Treasury Mor¬
.
give details about Allied military
once
currency.
"It
later.
Securities
Governments.:.,. 604
Report
Securities
Securities.
Salesman's
Tomorrow's
590
599
593
Securities
Estate
598
Comer
601
bonds will start descending.
after hostilities cease.
.
v.
Treasury
Federal
and
rates will remain
will
keep
strong
the market.
over.
.
.
The
.
equally
<
At this point, it seems silly to come to a one-
flat statements.
ment
.
593
.
.
.
Chances
are
596
com¬
by Walter
S.
University and Secre¬
tary of the
Committee
said
He
Spahr's
Economists' National
on
he
Monetary
had
not
questions,
Treasury's
all
but
recent
Policy.
seen
Dr<
that
the
announcement
details
disclosable
present.
at
•
Dr. Spahr's queries
on
the in¬
vasion money appeared in our is¬
sue
of Aug. 5, page 516.
,
doing
any
Tin Plate Co.
selling of bonds recently.
been necessary.
.
.
,
6% Bonds
<
Certificates of
Deposit
.
war
loan may come in
December if third
not given much credence among finan¬
third will go well—will be
forced over the
top—and Morgenthau probably will hold off on drive
Markets—Walter Whyte
*
Says
.
questions
Empire Sheet &
doesn't go exceedingly well is
.
on
But the problem deserves mention
.
.
The rise having
;
Last of the Treasury's 91-day bills maturing on Wednesdays ma¬
tured a few days ago.
.From now on, discount bill issues mature
on Thursdays, so that purchasers may have an extra day in which
to make payment and congestion in market may be ended. ...
Report that fourth
conference for
press
unquestionably would be impertinent to
This type of control hasn't
been broken temporarily. .. .
.
good!
Secretary had been asked
his
at
covered
.
Reserve
in
.
According to this group we may have some
.
.
.
.
explained
Spahr, Professor of Economics at
/
...
just thinking about it now is worthwhile.
ciers.
be
New York
Federal Reserve hasn't been
.
will
time," Mr. Morgenthau said.
.
Well, according to the group that holds this
.
Aug. 5 thet "for
on
.
INSIDE THE MARKET
.
Investment
Our
Members New
598
Flotations 603
Municipal News and Notes
—
1-2178
Morgenthau Silent
'
On'Invasion Money'
Page
Triumph
Sold
..
of Government bonds will he kept under
strong control. ...
/ - > ■>
. .
INDEX
—
competition
And prices
.
It's all in accordance with a pattern.
.
tightening of short-term rates but long-term
stable at these low levels for years to come. .
;..r
.
.
.
two-three conclusion and it
Bought
Exchange
military reasons" he is unable to
story.
Meaning?
*
.
suggests that the smart trader can turn a few pretty pennies
.
one
for many years
playing the orthodox moves. . . . The bonds go down before a war
Rally after the, absorption process is completed.
Then sink when another war loan drive is on the way.
.
Then
.
Harrlsburg,
genthau said
•,
rowing a continuing one and certainly, the need for refunding ex¬
tremely significant. , . . And so the artificial control will continue
in
loan drive.
Stock
Tele. NY
Miami
may
r
Another holds that the Government will find the need for bar-
.
.
.
\"
/
~
viewpoint is true, the long-term downtrend of money rates then will
be reversed.
Short-term interest rates will harden first, long-
Incidentally, knowing what the 2V2S have been doing in the last
;
Syracuse,
investors will begin to look at other sections of the
market outside of the U. S. Government list.
-
to a %
is to be expected and is exactly as it should be.
Y!
; :
again from private industry for investment funds
And the prices of Government
.When the war loan drive ac¬
tually gets under way, it may be that the 2x/4s will sink
;
.
term interest rates will follow
.
as
/
.
...
1
/
.
.
.
.
/
And the association hints that the amount
.
Surely, the Government will find it has
.
level.
.
Surely, corporations will return to the market for new funds
and for some refunding.
v <
According ,to the
.
.
.
exceed that figure.
even
specialists, the market hasn't had any orders of size for some days.
Both buying and selling is on a small scale. ...
But the 1V2S are holding
well around the 100.20 to 100.22
..
Whitehall 3-0550
...
instance, forecasts that post-war demands for capital through the
medium of the securities marts may reach, the ^staggering total; of
...
.
Claybaugh & Co.
Philadelphia
.
for
.
Member
.
As for the market
for
Blair F.
.
A DULL MARKET
,
request
on
New York
of trouble to
.
obligation.
available
degree....
Here's
.
.
.
.
story.
>
'
"If it doesn't
When peace comes and the realization that we may return to
break, I'm buying them for a recovery if the market has any rallying
something like a normal eeonomy hits the public, we may anticipate
power left in it at all".
.
•
\ -"■
/*va reopening of the capital markets on a broad scale.
v
/
i
•: j That's presented just for whatever it may be worth to you*, as¬
The Investment Bankers Association's committee on financing,
suming you've been bothered by the gyrations of this particular
point because the holders will be scared out".
111
*Circular
.
the Christmas gift season.
.
....
*
until after
I
Common Stock
f
t;
Hill, Thompson & Co., Inc.
Markets and Situations for Dealers
120
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
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