Full text of Commercial and Financial Chronicle : August 26, 1943, Vol. 158, No. 4206, Section 1

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

AUG 28 1943
Final

Edition

ESTABLISHED

Reg. U.'. S.

Volume

158

Number 4206

In 2 Sections-Section

O
YEARS

Pat.

1

Office

Price

York, N. Y., Thursday, August 26, 1943

National Security Traders
Hold Their Tenth Annual

60 Cents

Copy

a

The Future Of Interest Rates
With Special Reference To The

Treasury's

Borrowing Policy
By BENJAMIN M. ANDERSON, Ph. D.

Reelect Wm. Perry Brown
President For 1943-44 <

23 Local

Groups Represented
In Chicago

(Dr. Anderson is Professor of Economics at the University of
California, Los Angeles. He was formerly Economist of The Chase
National Bank of the City of New York. He is Consulting Economist
of the Capital Research Company, Los Angeles, and is a member of
the Executive Committee of the Economists' National

Commitijee oil
1
?'■

Monetary Policy.—Editor.)
Members
annual

of

the

National Security Traders Association, Inc., at the closing session of their tenth
in Chicago, reelected Wm. Perry BroWn, Newman, Brown

meeting, held at the Palmer House

&

Co., Inc., of New Orleans, as President for the 1943-1944 term.
They also voted a second term for Edward H. Welch, Sincere and Company, Chicago, as Secretary.
Other new officers elected include B. Winthrop Pizzini, B. W. Pizzini &
Co., New York City,
First Vice-President; Jerome F.®
——-—• ■;■
.<3>
»,
■—• -..., ,—_

I think that it is not

either

as

to the time

or

possible to make

a

definite forecast

to the amount of

as

meeting, which
approximately

attended by
three
hundred
Carl H. Chatters, Exec¬

members.
utive

was

Director

of

the

the rates of interest.

Prevailing rates are absurdly low in the
light of all past experience. That the government should be
^borrowing many tens of bill¬
ions a year without raising the
rates is contrary to all past ex¬
perience. On the other hand,
jl
'

"Railroad Securities

Municipal

Meyer, First of Mich¬ Finance Officers Association of
igan Corporat¬ the United States and Canada, ad¬
ion,
Detroit, dressed a special municipal meettand Henry J. ing and his paper titled ?-Muiii£ijR i c h t e r
pal
Finance In The; Post-War
Scherck, Rich- World" is, given in full in these
columns.The address by Patrick
Co., St. Louis,
were
elected B. McGinnis op "Railroad Securif

Frank P.

•'

V •'

/

■

va '

VVV

#M

that the banks

In Post-War Era 7

should be able

With respect to what is going to happen in the post-war era as
railroads, Patrick B. McGinnis, in addressing the National Security
Traders' Association last week at its annual meeting in Chicago,
undertook to indicate that current prices, first, are not too high;
"second, that by the regulation of competition the deterioration in
the rate structure
will level out, and stop; third, that the reorgan¬
to the Execu¬ ties In The Post-War Era" is also
■■
A corporate forum was ization \ of .35v.. ' srSVy ,':.;;V;' >.,>■
tive
Council. given.
Class
i : car¬
Bampton & Rust, of New York,
also held underrthe direction of
Other
mem¬

to

lend

of

to

,

billions

of

bers

the

riers

Si Hanna. :

Phil
On

of this issue; of
Chronicle," which
is the official publication of .thfe
Thorn a si A.
Akin, ■ Akin- National Security Traders Associ¬
Lambert
Co., ation,, begins a special section de¬
the
Los
meeting
of
thk
Angeles, voted to
and Joseph W. NSTA. ;.•.. ,^%;v:
Council

t he

are

officers,

789

page

The "Financial

•

Sener, Macku-

bin,

Wm. Perry Brown

Co., Baltimore.

.

Representatives of 23 local security
traders
organizations

J throughout the

)

ated

country cooper/sponsoring the annual

in

OHIO SECURITIES section con¬

taining information and comment
pertinent

to

activities

dealer

on

y

786.

page

Special

government
is

on

and

per¬

LOAN
826.

page

■;

also

'-'.v.1

see

financial

I think it is

will
the
risk

b y

fixed

reducing
charges

over

40%

probably the hardest
subject to discuss, primarily be¬
cause it involves assumptions.
If
we
talk
about
anything in the
post-war era we have to make
certain assumptions, and of course

for

Class

railroads

I

&s

them."
said Mr. McGin¬
nis?
the past several
years that I have been talking
about railroad securities, I have
tried to avoid assumptions so that

year,"
"and for

the. increase,

efficiency

n

1 he

railroading

with

pared

Was

conclusions

drawn could, to
be proved.
v

as com¬

What it

of demand

•deposits and
money in circ

M. Anderson

Benj.

Patrick B. McGinnis

20

has been tremendous."
McGinnis,
of ' ^ Pflugfelder,

that
a

be

could

NEW YORK STOCKS,

example, three or four
said that the new se(Continued on page 797)

INC.

Bond

AUTOMOBILE SERIES

(Continued

THE

799)

CHASE

BANK

Broaden your customer

and Dealers

R. H. Johnson & Co.

-•

*

San Francisco

Established
,

:

"

INVESTMENT

J927

■

Prospectus on Request

'

SECURITIES

HUGH

64 Wall Street, New York 5
BOSTON

Troy

<

I....

■

.

Actual

,

-

Williamsport

;

■■■■

,

W.

LONG

and

COMPANY

service with Chase
^

correspondent
facilities

York Curb Exchange

Member Federal

15 EXCHANGE PLACE

634 SO. SPRING ST.

JERSEY CITY

LOS ANGELES

Dallas

Hardy & Co.
Members New York Stock Exchange

Members New

INCORPORATED

,

PHILADELPHIA
* Buffalo "" Syracuse
,

Albany

Pittsburgh

Light

page

NATIONAL

1

Power &

on

Brokerage

for Banks, Brokers

ENGINEERSand CONSTRUCTORS

NEW YORK

double

certain extent,
'

Service
WAR BONDS

Chicago

on

more

precipitat¬
ing a dangerous "flight from
the dollar," is a phenomenon

"For

FINANCING and VALUATIONS

;

t i

a

OF THE CITY OF NEW YORK

In connection with

52 WILLIAM STREET

1

since 1939 without

years ago we

MANAGEMENT PROBLEMS

-

u

should
than

"Last

a

whole,"' and
fourth,
"that
i

cannot prove

we

REPORTS

'

>■.

carriers,
remove

<

SURVEYS AND

30 Broad St.
Tel. Dl.by 4-8400

New York 4

Deposit

Insurance

Corporation

Tele. NY J-733

.il

-

Trading Markets, always

$6 Preferred-Common "wi"

by. expert staff in

Virginia

Stokely Bros. & Co.

«

'

Over -The - Counter

•

Securities

:

v.

.v

• •

5% PREFERRED

Basic

Hirsch, Lilienthal & Co.
Members New York Stock Exchange
and

r -li
i

--i,

other
.

,

Exchanges
•

',

•

.1,;»

;

[

*

'

INCORPORATED

.

:London
NEW YORK
.,

25 Broad

HAnover

-

Geneva

Rep.

v

St.

2-OfilW)

teletype NY 1-210

N.

CHICAGO 3, ILL.
135 So. LaSalle St.

State

8770

Teletype CG 1219




;

upqn

Y; Security

45 Nassau Street
Tel.

REctor

2-3800

'

Dealers Ass'n

New. York 5

Members New

120

York Stock

Exchange

Broadway, New York 5, It, Y
Telephone:

-

/ Enterprise 6013

6% & 7% Preferred

request

HART SMITH & CO.

Teletype N. Y. 1-576

Philadelphia Telephone:

Public Service Co.

REYNOLDS & CO.

"•, ) '■

-

Members

4, N Y.

Report

Kobbe, Gearhart & Co.

r

.

combination

828

page

omen o n

ties in the Post-War Era' because

Mr.

For index

il

purposely

of the solvent

years ago,

AND CONSTRUCTION

have

unprec-

And that the

today

material

SAVINGS

ASSOCIATIONS

"I

an

edentei^phe-w

labeled this talk 'Railroad Securi¬

of

editorial

taining to

QUICK ACTION ON DESIGN

i

that

a

the

debt reduction

the

In This Issue

&

Legg

stated

plus the

•

tens

to

year

...

•

increase in

an

-

Tegeler, Dempsey, Tegeler & Co.,
St. Louis, Second Vice-President;
and Russell M. Dotts, Bioren &
Co., Philadelphia, Treasurer.

i

,

-

Bell

REctor 2-7400

Teletype

NY

1-635

;

New

ira haupt & co.

Members

York Security Dealers Assn.

52 WILLIAM ST., N. Y. 5

Bell Teletype NY

New York

HAnover 2-W80

1-395

Montreal

Toronto

Members New

111

York Stock Exchange

Broadway

REctor 2-3100

Teletype NY 1-1920

,

782

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, August 26, 1943

:Trading Market» fnjzunz

Braniff

Airways

Bendix Home

Alabama Mills

7

Botany Pfd. & Common

Appl.

Common

,

American Cyanamid Pfd.

We Maintain Active Markets in U. S. FUNDS for

CANADIAN.. INDUSTRIALS

Central Public Utility

Birmingham Gas.

Remington Arms

Wyoming Vy. Pub. Serv.

Warren Bros. Class "B" & "C"

CANADIAN MINES

:

Goodbody & Co.

-;7

Mid-Continent Airlines

king & king
Established, 1920
Members

Security

York

New

;

Dealers Ass'n

40 Lxcbangfe Pi., N,Y. 5 HA

Walworth Pfd,

:

Members New York Stock Exchange
Members'

Telephone

120

Tel.

Maryland Drydock, Common
Ft. Dodge, Des
4's &

Moines & Sou.
Common

Pittsburgh Hotel 5's
1962

&

1967

Mitchell & Company
Baltimore

Members

120

Stock Exchange

Broadway, N. Y. 5, N. Y.
WOrth 2-4230

Bell

As

of

these

.

commissions

was

established

in

1853, and over

is

railroads

state

essentially inter¬
character which is not

in

true of

it

is
to

prior to 1900.

Interstate Power

W hi 1

1952

;

tions between generating systems

them

e

their

Rails end industrials

7'

tory

Preferred

of

Preferred

them

have

generated

ergy

With the admission of the

on

N. Y. Curb Exchange

Members New

York

Curb Exchange

New York 5

31 Na**au Street

'•

•

.

LISTINGS

IN "THE SHEETS"

C. E. de Wilfers & Co.
120 Broadway, N. Y. 5, N. Y.
REctor 2-7634

Teletype NY 1-2361

.

Deep Rock Oil Corp.
Interstate

for

.

Bakeries, PH.

TAinessee Prod.

C. F. Anderson With

crossed state lines in 1940,

v

_

Corp. Pfd.,

Spokane Int'I Ry. Esc. Recpts^
Scranton Spg. Brook W.S. Pfd;

O'Melveny Wagenseller

Ohio Match

.

,

Vanderhoef & Robinson
•

•

new

.

♦Traded

'""

OUR

■

public use
which
control over proportion is probably higher to¬
(SpiMJWi to TheFinancie-l Chronicle)
rates
and all day, practically all this power was
but a few can sold at "wholesale" by one utility
r: LOS
ANGELES,
CALIF. —
regulate new to another for resale to consumers, Clarence IF. Anderson has become
security is¬ Since it hardly can be compared associated with O'Melveny-Wag-.
sues, mergers, with the interstate shipment r of enseller & Durst, Inc., 626 Southetc. Less than freight, there is little parallel be¬
Spring Street, members of the Los
half of them, tween Federal
regulation of "in¬ Angeles Stock, Exchange. Mrhowever, have terstate* commerce" and Federal Anderson was formerly in charge
v authority
»t o regulation of electric power trans¬ of the " trading
department at
Owed Ely
regulate mu- mission.',
Searl-Merrick' Co.- and served in
"'7
The utilities acquired' an internicipal plants.
a
similar capacity with Banks,
While the Interstate Commerce State "flavor," however;: with' the
Huntley'& Co.1, Ih the past he was
Commission was formed in 1887,
(Continued on page 810)
manager of the corporate trading
practically all

United Cigar Whelan

'

^

SEE

partners/ the firm name of Cog¬
geshall & Hicks will be changed
to Coggeshall & Hicks, Marshall,
Campbell & Co.
^ ;

to interchange power ,at times of
regula¬ peak load and. other, shortages,
powers, some 20% of the total electric .en¬

: \

Actual Markets in

summarize

Taggart Corporation

branch offices

of

Aug. 31.

utilities, since practically

difficult

of

our

!

bell &. Co: which is dissolving on

all operating - companies do busi*
ness in only one state. , And while
it is true that, due to interconnec¬

half

6s

of

Direct wires to

DEALERSUU

Sept.;,!,; Coggeshall &
Hicks, 111 Broadway; New- York
By OWEN ELY
City, members of the New York
The public utilities of 'the United States, have been, effectively Stock and Curb. Exchanges, will
regulated by state commissions throughout most of their history.The admit Arthur A. Blaicher, Eu¬
District of Columbia !and every state except Delaware has a commit gene
S.7 Brooks,
and Albrecht
sion, department, board or administrator to regulate utility enter¬ Pagenstecher, 3rd to general part¬
prises, although those, of Florida,. Iowa, Minnesota,. Mississippi rand nership in their firm, and.'Leland
South Dakota have no jurisdiction over electric and gas companies,, H; -Ross, Jr., - a member of the
Stock Exchange, to limited part¬
Thus, it is estimated that utilities ^
serving 92% of our population are as the first Federal agency- to reg¬ nership. All were partners in the
ulate public services, the business Exchange firm of Marshall, Camp¬
subject to effective state control.
One

Teletype N. Y. 1-1227

..

To Admit Partners

a

u

Du Mont Labor., Common

Kearney fc Trecker, Common

REctor 2-7815

Coggeshall & Hicks

Utilities Need A War-Time

NY1-1557

HAnover 2-0700

i

\

St., New York 4, N. Y.

New Orleans, La.-Birmingham,Ala.

BROADWAY, NEW YORK

BELL TELETYPE NY 1-423

Axton-Fisher Tobacco* A & B

25 Broad

York Stock Exchange
New York Curb Exchange.

Teletype NY 1t672"

BArclay 7-0100

f

New

Exchanges

NEW YORK 6, N. Y..

115 BROADWAY

2-2772

Steiner, Rouse & Co

MC PONNELL & CO.

•

Members N. Y. Stock Exchange and Other Principal

1971

3-6.,

•

5Hs, 1952 '

Telephone COrtlandt 7-4070
Bell System Teletype NY 1-1548

Robert C.Mayer&Conine*
Established 1915

-

30 Fine

Street, New York 5,

Telephone Dlgby 4-7900
,

.

.

Bell System Teletype )VY 1-1790

.

;

"

Byrndun Corporation
Common

W.L.

Douglas Shoe

Common

Retail Properties
6s, io59

Strutters WaI's
Common

&

Preferred—5 Yz s,

Sees Peace Time
1949

H. fi. BROKS & CO.
20 Pine Street, New York 5

Telephone: WHitehall 3-1223
Bell

7

Teletype NY 1-1843

/.

a

7

Elastic Stop Nut

Time Inc.
United Cigar-Whelan

&reeTveanjfiompcmu
Members N. Y. Security Dealers Assn.

37 Wall Street, New York 5, N. Y.
Tel. HAnover 2-4850
,

Teletypes—NY 1-1126 St 1127

Lamb will become

done

while

Members New, York Stock Exchange

Members New York Curb Exchange

65 Broadway

;

WHitehall 4-812Q

Bell System Teletype

NY 1-1919

v

partner in the firm of Marshall,

Campbell & Co., which is dissolv¬

ing

>

of

.

Exchange firm of Ingalls! & Sny¬
der, 100 Broadway, New York
City, on Sept. 1. Mr. Lamb was a

witji

.

•

Edward A. Purcell & Co.

a

Stock

,

on

Aug. 31.
,

j

•

^

H, R, Kirk In v. Go.

Formed In Kansas
KANSAS

CITY,

.

Admit Charles Greeff
Charles

A.

Greeff, formerly a

partner in Marshall, Campbell &
Co., will be admitted to* partner¬
ship in Granbery, Marache & Lord,
65
Broadway, New York city,
R.
members of the New York Stock

City

(Special to The Financial Chronide) ,'

;

Granbery,MaracheTo;

...

in

v

MO.—H.

Treasury is would also have with us x massive Kirk:has formed
the H- N. Kirk
draining away the post-war earn¬ unemployment and 'made'?,post¬
ings needed for reconversion re¬ war works, to increase the money Investment Company/ with offices
serves, and while the' service de¬ seeking goods that are. not there in the Insurance Exchange Build¬
aggravating
the
inflation ing to engage in a general securi¬
partments of the armed forces arp and
taking away such funds in rene¬ threat.
7
" ties business.
^
gotiations?"
According to press
"There can never be sufficient
Associated With Mr, Kirk will
accounts from Seattle, Mr, Sykes jobs until fair wages, fair profits
went on to say:
!
and fair prices permit; the making joe William K, Archer, formerly
"Even now the Treasury is talk¬ of more goods and, services, still an investment, dealer in Kansas
ing of increasing the corporate
(Continued on page 827)
be

United Piece Dye Works

S.

partner in the: New York

Washington Mr; Sykes taxation instead of easing it. If
stated that "the way to mitigate that
continues,
our
otherwise
inflation, of course, if you have prompt return to peacetime: oper¬
turned loose too much money, is ations may be crippled. We would
to make as much goods as you can have
"wage and job freezing, mate¬
as soon as possible."
rials priorities, price ceilings ,and
ration books indefinitely. Apd we
"But," he added, "how can this

Sugar, Pfd.

ingalls & Snyder

Dana

regional post-war conference of the NAM in co-operation
Industries of theft'
^ <
' '■ ■ ■—7;■. "■

Federated

State

Eagle Lock

In

,

,

7% Pfd. J.

Citizens Utilities Common

it is doing," was made at Seattle Aug. 20 by Wilfred Sykes; President
of the Inland Steel Co. of Chicago, aiid Chairman of the." Post-war
Committee of the National Association of Manufacturers. : Address¬

ing

Bell

Operations Crippled In Event
Of Increased Taxes,
;
';j.

Electrolux

U. S. Finishing

Lamb To Be Partner

The assertion that "if the Government deliberately planned infla¬
tion for the post-war period, it could not do a more certain-job, than

the
Caribbean

:

Sykes, Head Gf Inland Steel, Declares

7,

j

FederaU Water Service

Governmeiii Policies Tend To Inflation,

1952

U

Portland EL Pr. Prior Pfd.

Co?'"'V

Indiana Limestone

Plain

6%-&' 7%'Pfd. ^ -y.w/

department for ■ William R. Staats

& Preferred

Inc. 6s,

New England P. S.

the

and Curb Exchanges, on Sept.

Position Marketst

.

„

,

.

,

City.

Carey Trust—All Issues
Oklahoma-Texas Trust
Columbia Baking, Pfd. & Com.
Galveston-Houston Co.

FASHION

Associated
•Gas

F

e

11

Tr

o w

a

d

e rs

Jefferson Lake

Nu-Enamel

Preferred

•

Salut at ions !

•

W. L. DOUGLAS SHOE CO.

II. S. Finishing, Pfds. & 5's 1844 :

Prior Preferred

U. S. Radiator, Pfd.

Bought-*—Sold—Quoted

G.A.Saxton&Co.,Inc.
II" ™e

sr*"




Sulphur, Pfd. & Com,

Liberty Baking, Pfd. & Com.

FASHION PARK, Inc.

Associated
Electric

PARK, Inc.

Common

Ward
Established 1928
.

Direct

Wires

&

Co.

120 Broadway, New York
Phone:

REctor

Bell Teletype NY .1-1288
Members New York Security Dealers Association

to BOSTON

—

HARTFORD

PHILADELPHIA

York Corrupting

SIMONS, UNBURN & CO.

2-8700

1

.

Members New York Stock Exchange

"

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

2-0600

*

Tele.

NY 1-210

T. J. FEIBLEMAN & CO.
Members

New Orleans

41 Broad Street

Stock Exchange

New York 4

BOwling Green 9-4433 :Tele. NY 1-493

Volume

Number

158

The

THE COMMERCIAL & FINANCIAL CHRONICLE

4206

COMMERCIAL and

FINANCIAL

CHRONICLE

We

Cons. Elec. & Gas

Reg. U, S. Patent Office
William B. Dana Company
Publishers
?

D.

Kentucky Util. |

Editor and Publisher

Thursday, August 26,
twice

Thursday (general news
vertising issue) with a statistical
issue

on

Kansas

Monday]

Copyright
Company, ;
Reentered

1943

by

William
r

•

B.

32

Dana

second-class matter Feb¬

as

Canada,

Central

Cuba,

$27.50 per year; South and
America,
Mexico
and
Spain,
$29.50 per year; Great Britain,

Continental Europe (except Spain),.Asia,
Australia and Africa, $31.00 per year.

NOTE—On account of the fluctuations
In the rate of exchange, remittances for

foreign

subscriptions

Our

Real

Estate

Securities

has

for the past

Mortgage

specialized

twelve

Security Dealers

Broadway

years

in:

Participations

'

get

peak

Securities Dept.

Wall

Street,

New

York

'

Telephone:

WHitehall

4-6551

Says Regimented Economy Of War Must Be Succeeded
By Peacetime Economy Of Freedom Under Law

friends.
will

gives the

129

out is of

ene¬

boot to

How the whole

come

of ALL COMPANIES and
REAL ESTATE SECURITIES

thing

course

any¬

body's guess. But if the manouverings—or rather the lack
of
manouverings — of the
State Department
and the
President remain

Federation of Labor

State

carried

into

peace."
Mr. Dewey further stated:
over

"The
which

have

and all

other

issues of

for

us

it is

saying right

quotations

wartime
trols

Vewburger, Loeb & Co
Members

40 Wall

New

York

Stock

St., N. Y. 5

Bell

Exchange

WHitehall 4-6330

Teletype

NY

1-2033

5

behind

markets do

reflect the
than
the

Tomorrow's Markets

the
not

these

stored
to

in the

"We

They merely give
warning and it is the pub¬

lic which acts when the

❖

*

make
that

becomes
mented

economy

ceeded

by

and

of

this

if

war,

as

than

National

our

have

we

our

a

we

the

and

learned

Prices

near

"buys" are
accompanied by "stops."

it

was

waiting for some clue,
just what, was a mystery. It
almost

was

certain, however,

that the clue would not
By WALTER WHYTE

from

come

probably many
reasons
why the market bog¬
ged down last week and then
instead of starting
up
fell

fighting
front.
already been too
many war developements that
the
market
disregarded to
make any nearby war news a

down

market factor.

are

oiyt's face again. Some

of the

reasons

will

any

There have

probably pended

on

It therefor de¬

either (1) domestic

be found in the results of the news, or, (2) the Quebec

Quebec conference; others in ference.
Alice

in

-

-

Wonderland

sfc

news
was

foreign policy.
#

collective bargaining.

we

superseded
taken

and,

suc¬

in

private

some

away

(Continued

economy

'

So far

nothing

con¬

domestic
there

held

was

happen¬

decided, according to
1

Wall

Street,

member

of

on

have
from

111

page

In

❖

$

R Ector 2-5288
Bell

the

Saratoga Racing Assn.
Queens Cty. Jockey Club

Georgia 6* Florida
Mtg. 6'*

Members N. Y. Security Dealers Ass'n
N. Y. 4




York

a

City,

cessation- of

may

be

war

to
a

activity at the
it is likely that
the
Italian-German part
of the
Axis will collapse first, thereby
allowing peace by stages.

time,

To

war

since

prevent riot and revolution

Forces

a

large part of our Armed
be kept under arms,

mitigating

troublesome
after

situation
'

4

.

i

otherwise

an

\

unemploy¬
the

Armis¬

/;

'

■

Civilian and corporate bank de¬

posits and government bondhold-

ings

825)

had

Memorandum
*

Federal Screw Works
common

to

them

the

were

currently materially exceed

Public National
Bank & Trust Co.

market

none

alone

for

Barfgis Brothers

of

cur¬

HtBlOG&CoM

the

1943

year

are

170 Broadway
Bell System

COrttandt 7-6190
Teletype NY 1-84

esti¬

mated at

$43,000,000,000 vs. a level
$10,000,000,000 an¬
nually in the years prior to 1941,
of

less

than

besides which the Department of
Commerce has hypothetically pro¬

jected

a first-year post-war busi¬
volume—provided certain re¬
quirements are fulfilled—of $165,-

Jacksonville Gas Corp.
5s, 1967 & New Common

Great American Industries

ness

000,000,000

the $97,000,000,000

vs.

volume for

1940).

.

alone
as

need

may

much

as

to

manufacture

20,000,000 to 25,000,000

passenger
cars
in
the
United
States before
the post-war
de-

(Continued

on

page

Greater New York Breweries
Harriman

.

Among tne various industries
accounting for an important part
of the backlog, the auto industry

Coca-Cola

165

Building 6s, 1951

Broadway 4V2S, 1958

Fiank C. Masterson & Co.
Members

New

York

Curb

Exchange

NEW YORK 5

64 WALL ST.

HAnover 2-9470

Teletype NY 1-1140

824)

The result

in the action of prices

Friday,

Saturday and Monpage 826)

Aldred

Bottling Co. of N. Y.

Coca-Cola Bot. of Los

Angeles

Panama Coca-Cola Bottling

Company

Investment Trust

Analysis

C. E.

upon

1, 1967

Bottlers, Inc.
Quoted

request

Unterberg & Co.

Members New York Security Dealers Assn,

61

Red Rock

4*4% Debentures
Due December

Bought—Sold

of

you saw

on

needs

observation, savings of individuals

National Radiator

number of things

(Continued

Miller Tool & Mfg.

Coca-Cola Bot. "A" of Cincinnati

This could have

good.

backlog

and rights

Stromberg-Carlson

—

—

the

business

Request

on

con¬

came over

blandly announced
pulling its Wash¬

meant any

which

and

rently is very substantial.
(In connection with the. latter

those of any pre-war year, coup¬

was

country.

with

may

thereby
ment

led

civilian

ington representative out of
the

Y. 1-2480

-

,

gradual conversion from

one

—

Stock

by W.
of the

peace-time activity, rather than

previous week-end when

that it

but

LUCKHURST&CO!
Tele. 1-1825

news we

Moscow

Cornell Dubilier

System Teletype, "N,

$

Well, the first piece of
crete

New

York

states that there

tice.

develop¬
ments are and acts
according¬ big news to have an immedi¬
ate bearing on the stock mar¬
ly. If its action is confusing
it is no more so than the ket price structure.

Blair 6* Co.

Assn,

even

bond

looking toward the future the

bulletin

cabinet officers would be the

in¬

the

v.;:'-v

culate what all these

own

Dealers

Broadway, New York, N. Y.

their

bulletin issued by McLaughlin, Baird & Reuss,

a

New

prepared
Reuss, partner

Wendell

firm.

possibly

60 Broad St.

Members

York- Security

New

They have

action with regard to presentlyinvestments may be calmly

railroad

Exchange,/and

ing in Canada between
Churchill, Roosevelt and their

The market in its

contemplated

or

It therefor abroad,

new.

meant that what

&

as

concerned

was

request

J.F.Reilly&Co.

management,

cases,

plants

on

A mul¬

Some Thoughts On Post-War Prospects Of RRs.

imitable fashion tries to cal¬

1st

Circular

we

-

critical levels. All

There

Water & Gas

State

dling through."
tto be

Federal

Gov¬

the
In view of the recent tide of United Nations' victories on farmarket
was
July lows written
Dept. steady but lacked any get up flung, fronts and the growing conviction that peace is so much nearer,
now is a propitious time to examine the
post-war prospects for the
Administration
"mud¬ and go.
It was obvious that railroads, so that a future course of

of

-

Gisholt Machine Co.

(Tuesday) when
previous column
was

Market decline to
reflection

Capital Gains Prospect

Last week

Says—Wy

Teletype NY 1-1203

every resource

moment.

every

is

war

never,

more

foreign to our
principles. In fighting

certain
regi¬

/

Broadway, New York 6, N. Y.

HAnover 2-8970

employment.
"In large measure these regula¬
tions supersede the functions of

be

the

peacetime

a

*

■

only

Gov. Thos. E. Dewey

can

tiplicity of federal regulations has
bee n
promulgated,
governing
hours, wages and conditions of

of

can

of

sure

news

knowledge..

total

freedom.

more

can

the

must mobilize

them

cause

by

most vital

re¬

have

yielded

we

consume

restraints

temporarily

or

We

ernment which are

intact

who

law.

part, Governor Dewey also
had the following to say:
"Under the pressure of war we
have all willingly submitted to

people

a

INC.
Members Neio York Security Dealers Assn,

In

they
be

under

Information

L. J. GOLDWATER & CO.

produce."

of

other

must

But

events

same

"it

QUOTED

-

it only in an economy of

For

nation,

Like

rights,

once.

Common

Whyte

as

freedom

p r4e s s.

going

anticipate

the market foresaw

Walter

'<

is that

scenes.

declared that

SOLD

-

Statistical

production and £ull employ¬

ment.

con¬

are

ifindamental
as

And what
now

it does not like what is
on

full

'

merely re¬
anticipates deci¬

and

sions and events.

the

local banks

Call

*

••

freedom

preserve

.

For the market
flects

Guaranty Trust Co.
+

•"

*

^

Trust Co.

.

Jjc

Aug. 23

on

39

of

rights of labor
been
abridged
by

speech and
freedom of the
ijc

Complete

<♦>

hard-won

stock market.

City Bank Farmers Trust Co.

Buffalo

understanding to make certain that the war¬
time change in the relations of government to organized labor is not

of

jjs

at

will take vigilance and

enigma,

an

BOUGHT

Referring to the restraints by the National Government incident
to the war, to which we have all willingly submitted, Gov. Thomas
E. Dewey of New York, addressing the annual convention of the

can't be said of the

same

CERTIFICATES

Harrison 2075

Teletype CG

when it makes deals with

and

TITLE Co.

CHICAGO 4

strange cartwheels which the
Administration
is
tossing

the

Bankers Trust Company
Central Hanover Bank &

our

99

is

obsolete

Dewey Declares Rights Of Labor
Abridged By War Must Be Restored

Board of Trade Bldg.

DIgby 4-8640
Teletype jnY 1-U32, 834

mies

Gov.

Ass'n

advertise¬

and

ments must be made in New York funds.

Department

York

New

NEW YORK 4

•

Subscriptions in United States and
Posessions, $26.00 per year; in Dominion

'

Obsolete

Members New York Stock Exchange

STRAUSS BROS.
Members

ruary 25, 1942, at the post office at New
York, N. Y., under the Act of March
8, 1879.

a

season

those

H.

Field

of

City P. S.

canning*

can

of

yours—and
prices through our

Teletype NY 1-5

-

the

peak,

stocks

25 Broad Street, New York

Telephone HAnover 2-4300

that

its

Offices:

Chicago—In charge of
Gray, Western Representative,
Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.

Fred

STOCKS
at

Trask & Co.

Sp<

So'east Gas&Water

[every
and ad¬

OBSOLETE
Now

•encer

1943

week

a

CAN THOSE

PREFERRED STOCKS

Seattle Gas

President

William D. Eiggs, Business Manager

Published

AND COMPANY

Public Utility and Industrial

Seibert,

William Dana Seibert,

licmtns'Tfii

-

offerings of

High Grade

BEekman 3-3341

Herbert

interested in

are

Southern Cit. Util.

25 Spruce Street, New York 7

Other

783

Broadway,, New York 6, N» Y,
Telephone BQwIing Green 9*3565
Teletype NY 1-1660

HoiiRsseSTrsster
-

-

*

Established

Members N.

74

Y.

1914

Security Dealers Assn.

Trinity Place, New York 6, N. Y.
Telephone:
Teletype:
BOwling Green 9-7400
NY 1-375

CRAIGMYLE, PINNEY & CO.
Members

ONE

New

York

Stock

WALL STREET,
Telephone

Exchange

NEW YORK 5

WHitehall

4-5290

& FINANCIAL CHRONICLE

THE COMMERCIAL

784

.

Thursday, August 26, 1943
NEWARK

UTILITY

PUBLIC

Insurance Co.

Firemen's

INDUSTRIAL

of Newark

RAILROAD

Ample benefits

American Insurance Co.

(Newark)

MUNICIPAL
■

i

BONDS

for moderate means

of N. Y.
""s

.

A.CjaLYNANDCOMEANY

J. S.

Rippel & Co.

INCORPORATED

Established

CHICAGO

If

fesl

you

New York

current income

your

not

you

need,

1891

18 Clinton St., Newark 2, N. J,

Milwaukee

Boston

MArket
New

will

■

.

Jersey Insurance Co.

York

3-3430

Phone—REctor

2-438S

permit the life insurance
PHILADELPHIA

plan

see our

h

i

pre¬

Pacific Qoaii

first five years.

miums eased for the

TRADING

■

SecubUieA

Pugel Sound Power & Light Co.
5%

Ask for

,

■'w,

our

Wyeth

&

Common
Memorandum

Walnut
Bell

Phila.

—

and

Sold

northwest

Frederic H. Hatch & Co.

Accompanying Boom In

J

purchase

a

to

according

Lago Petroleum

Industry," featured in the current
quarterly investment survey of
& Co., 44 Wall St., New
York City, members of the New

Mexican Petroleum

Shields

Safety Car Heating & Lighting
Wires

Private

to

Buffalo

-

Cleveland

Detroit

-

-

Pittsburgh

-

;

Exchange.

Stock

York

Louis

St.

numbered

"Once

represent the

These certificates

Pennsylvania RR.
Equipments Offered iy
Kalsey, Stuart & Go.
Halsey, Stuart & Co., Inc., and
on Aug. 24 offered an

associates

$5,790,000 of Pennsylvania
RR. 2y4% equipment trust certifi¬

issue of

dated March 1,
1943, and maturing in 15 annual
instalments, 1944 to 1958.
cates,

;

Series N,

Associated with Halsey,

&

of

aggregate issue of

an

$12,240,000 under the road's Series

Equipment Trust, a previous is¬

N

in

of

$6,450,000 having been sold
February this year.
:
*•

sue

Series

entire

The

certificates

is

be

to

N

issue

of

secured

by

the following new standard-gauge

rolling

stock,

and acquired:
ger

to be constructed
five electric passen¬

locomotives, 51 steam locomo¬

tives and tenders,

30 steam loco¬

motive tenders, six Diesel electric
Stuart switching locomotives, and 1,000

this offering are
Republic Co., Inc.; Laden-

Co., Inc., in

Central

balance

burg, Thalmann & Co.; Otis & Co.,
Inc.; E. H. Rollins & Sons, Inc.;
L. F. Rothschild & Co.; Hallgarten

Co.; Hornblower
& Weeks;
Hirsch, Lilienthal & Co.; R. L.
Day & Co.; Schwabacher & Co.;
Edward Lowber Stokes & Co.;
&

Co.;

Dempsey-Detmer

First Cleveland Corp.;
A. E. Masten & Co.; Heller, Bruce
& Co.; The
&

F.

Co.; Walter Stokes & Co.,
S. Yantis & Co., Inc.
The

and

1953 are non-callable

priced to yield from 0.65%
to 2.05%, according to maturity.
The
certificates maturing from

and

are

to 1958, which in the event
governmental restrictions inter¬
fering with the acquisition of the
1954

of

equipment are redeemable at the
option of the company in the
period March 1, 1944 to 1946, in¬
clusive, at the face amount and
accrued

interest,

prices ranging
The

offered

are

from

101

approximate yifeld on these to

the first call
ranges

date, March 1, 1944,

from 0.25%

to 2.25% and

thereafter to maturity 2.25%.




The

tional

current

situation

in

Na¬

whole, lost money, and its average
earnings on invested capital for
the period were a meagre 1.8%.
the

Of

City Bank offers attractive

this

for

reasons

many

showing, the two most important
were' relatively low rates of oper¬

increasingly keen com¬

ations and

petition.
"With

memories

these

wartime

still

investors
consider

to

prosperity of steel pro¬
something essentially
and to think of post¬

for the group in
experience during
At the same time, how¬

prospects
the

of

terms

the 1930s.

appraisal of many

market

ever,

been

tin

securities

industrial

other

/has

basis."

&

just issued

by Laird, Bissell

120 Broadway, New
City, members of the New
Exchange.
Copies of

Meeds,

York Stock

this

bulletin may be
from Laird, Bis¬

interesting

had upon request

sell & Meeds.

more

liberal

The survey

changes

points out that many
occurring in the steel

are

which

the

during

Industry

affect

will

war years
its
earning

after peace returns. Some
cf these changes are unfavorable,
some favorable. Careful weighing
power

of

St. Louis, San Francisco

much

a

on

the

pertinent factors suggests
for undue pessimism on
the industry's future
prospects,
the survey contends.

no reason

RR. Situation
An

interesting

Interesting
report"

on

the

reorganization plan for St. Louis,
San Francisco

Railroad has been

is

not

to

tion

or

the

of this
forecast of

purpose

attempt

a

post-war

steel

produc¬
that

of general business at

Copies of time, the two being more or less
this report and a special letter synonymous. If, however, there is
any truth in the frequently heard
discussing the outlook for rail re¬
St., Boston, Mass.

optimistic

organization

bonds

may

be

from the firm upon request.

150

on

An

In

Interesting Situation
a

Growth

Industry

York Corporation

boom in steel as

a

Bldg.
90.

ST. LOUIS

the Federal Reserve Board

index, without

D.

P.

PORTLAND, OREGON

well."

COMMON

the war's
effects will not apply equally to
all steel companies and outlines
the individual prospects for ten
leading companies in this group
The companies are American Roll¬
ing Mill, Bethlehem Steel, Cruci¬
ble Steel, Inland Steel, Jones &
Laughlin, National Steel, Repub¬
lic Steel, U. S. Steel, Wheeling
Steel and Youngstown Sheet &
The study states that

Analysis

on

Request

)eltason, Tenenbaum, Inc.
803

Landreth

Bldg.

ST. LOUIS 2; MO.
Teletype—SL 486

L. D. 240

Tube.

Lilvinoff

Replaced As
Soviet Envoy To U. S.
Government

Soviet

The

ST/K

an¬

Aug. 22 that Maxim
Litvinoff had been relieved of his
nounced

on

Russian

post

as

the

United

and

Co.

509 OUVE ST.

Ambassador to

States

St

SAINT LOUIS
Bell

been

System

Teletype—SL 80

replaced by Andrei A. Gromyko,
Counselor and Charge d'Affaires
of the Washington Embassy. The
brief Soviet communique broad¬
the Moscow radio gave no

cast by

Members St. Louis Stock Exchange

explanation for the move.
Mr. Litvinoff returned to Russia
for consultation last May but had

expected back at his post in
He had served as
Ambassador to the United States
been

Washington.
since

December, 1941.

Puget Sound Looks Good
Puget Sound Power & Light Co.
preferred w. i., and common

5%

i., offer an interesting situation
to a memorandum is¬
sued by Buckley Brothers, 1529
Walnut Street, Philadelphia, Pa.,

w.

"It

study

probable
State

Teletype

Securities

Porter

the

as

temporary,

<

Floor,

have

mind,

in

inclined

been

possibilities according to a bulle¬

at prepared by Raymond & Co., 148

to 100.

1930-1939, the industry as a

years

war

National City Interesting

considerable

the 1930s because of
fhe industry's drab performance
after
1929.
In five of the ten

ducers

$15,300,000,
making
the
equipment issue an 80% loan.

"steel

states,

survey

bonds and stocks lost

than

,

securi¬

caste during

firmly

York

certificates maturing from

1944 through

the

composite gondola cars of 70-ton
capacity. The total estimated cost
of this new equipment is not less

&

Bioren

ties,"

the

among

industrial

of

aristocracy

Investment

Tenth

materials, as well as for export
trade, • steel production will not
lag and
the chances are that
earnings of most companies should
be satisfactory. It is unreasonable
to anticipate a boom in general
business, as suggested by predic¬
tions that industrial production
after the war might be around

Steel

the

on

goods, of railroad equip¬

ment, oil field supplies, agricul¬
tural
equipment,
and
building

entitled

article

an

Effect

War's

"The

Teletype NY 1-897

Camp & Co., Inc.
durable

general business, With¬
boom in the steel industry-,

boom in

out

International Power Securities Units

Bell

unreasonable to anticipate

It is

securities

Incorporated
63 Wall Street
New York 5, N. Y.

General Business
a

PH 265

N. Y. DI 4-1527

portland

Shields Sees Sleel Rise

We wish to

—

RIT 4488

PORTLAND, ORE.

Bought

Association

Philadelphia 2, Pa.

Holding Corp.

NEWARK, N. J.

6—HA-2-2400—-Teletype NY 1-376-377

St.,

Teletype

Amerex

Qlnmpattg nf America

Members New York Security Dealers

i.

Request

Members Philadelphia Stock Exchange
Members New York Stock Exchange
1529

74 Trinity Place, N. Y.

w.

on

BUCKLEYMBROTHERS

Members Los Angeles Stock Exchange

Troster, Currie & Summers

i.

w.

LOS ANGELES

NEW YORK

Home Office,

Pfd.

Puget Sound Power & Light Co.

Co.

'Since 1893*

pamphlet

MARKETS

forecasts

on

post-war

had prospects for production of auto¬
mobiles

and

other

consumers'

Attractive

Possibilities

Federal Water & Gas Company

according

possibilities at
according to an in¬ members of the New York and
teresting circular issued by J. F. Philadelphia
Stock
Exchanges.
Reilly & Co.. Ill Broadway, New Copies of this memorandum may
York City. Copies of this circular
be had upon request from Buckley
may be had from the firm upon
offers

attractive

current levels,

request.

Brothers.

Volume

Number

158

THE COMMERCIAL & FINANCIAL CHRONICLE

4206

785

Defaulted Railroad Bonds

:

Bond Brokers

and

Railroad

Reorganization Securities

Abitibi Power &

Vilas & Hickey
Members

Stock

York

New

1

49 Wall Street

Aldred Investment Trust

Exchange

pflugfelder, bampt0n & rust

New York 5, N. Y,

v

Members

Telephone: HAnover 2-7900
'
•

'

/

■

Paper

5s, 1953—Bonds—c/ds

61

'Teletype: NY 1-911

New

York

Broadway

Stpck

41/2S, 1967

Exchange

Brown

Company

New York 6

1

Telephone—DIgby 4-4933

Bell

Teletype—NY

5s, 1959

1-310

Canadian Pacific

Railway

3%s—■—4s

Railroad Securities

The Securities Salesman's Corner
Bonus Compensation As

;

'/,

Added Incentive During

Sales Campaign

./'//•,>:!.•

,J\(»

./•;

;

Following its spectacular gyrations in July, the preferred stock
of New York, Chicago & St. Louis has recently returned to desultory
trading substantially below the years' high.
The speculative fever

;
,

/

that

is

something

about

that

race

a

invigorating..-•* The

is

^average salesman gets more than-money !out of his job, for one thing.

bored

That's

with:routine.:;

why

"'//

;

*

*

persisted despite the fact-e>—
the management has consis¬
tently discouraged such hopes by

good thing once in a
though the men in your sales organization may be
the most blase and sophisticated lot of securities salesmen in exist¬
ence, they will enjoy getting into a friendly little scuffle, among
see

who is the best

man

for

a

month

a

or

so, even

If you

same time it was appar¬
ently considered possible in many

if they

dend

do set

make

a

up

real

race

out of it and the

appreciate the fairness of such
v

v

.

knew

enjoy it's

men

clever

a

vacation trip, with expenses paid.

a

has

We

a

who

good job

on

an

&

move

Bell

HAnover 2-0980

Teletype NY 1-395
Toronto

Montreal

most

of

RAILWAY COMPANY
Specializing in

same

Underlying Mortgage

issues.

and
Leased Line Issues

LEROY A. STRASBUR6ER & GO.
1

action

recent

WALL

Van Tuyl & Abbe

STREET, NEW YORK 5

WHitehpll 8-3450

Teletype?

NT

I-2OB0

WALL STREET

of the

stock, then, reflects the dis¬
appointment that nothing has ma¬

time

that

on

sales

was

one

NEW

a large dividend
expectations of an

or on

offer

exchange

have

a

.

considerable

St. Louis, San Francisco

(in reorganization)
Minneapolis & St. Louis 6s 1932

meas¬

Minneapolis & St. Louis Ss

\

Railroad

1934

of

Minneapolis & St. Louis 4s 1949
appeal' in,, its own right, and
Minneapolis & St. Louis 5» 1962
basis of- the excellent fi¬
Iowa Central 5s 1938
nancial'
progress
made
by the
Iowa Central 4s 1951
We also heard of another sales manager who used "prize con¬ company in recent years!.
Des Moines & Fort Dodge 4s 1935
tests" very advantageously to create business and build salesmen/ -' Under the -debt 'program the
who always like to send his men to the finest tailors for their suits
management has evolved it is quite
He said he would take a man who never wore fine clothes in his possible that preferred stock hold¬
ers
might go through the entire
Incorporated
life and put him into a hundred and fifty dollar suit, and once he;
war
63 Wall Street
boom without any dividend
New York 5, N. Y.
Bell Teletype NY 1-897
(got the feel of wearing really good clothes, he acquired the urge to >
returnonly" to find / themselves
-continue to wear therm A "prize contest" that will lead the salesmen- emerging into the post-war with a
to think of greater production, larger incomes and the kind of "more
high grade; preferred on which pared with
close
to
$7,800,000
dividends could be earned and supported in the depression of the
abundant life" which comes from intelligent, constructive
work, is
paid even in periods of depres¬ early 30s.
Even if the war boom
always worth what, it costs.
/
:.
■
. ; •
.V-... ;•/'• '.-/ '•
sion.
This would be a far sounder in earnings is not to be prolonged
Now is the time to set up your plans for business after Labor Day. solution than would be arrived at for a further extended
period it
A "sales contest" can always work in with any other campaign you
by receiving dividends now but is expected that at least these ob¬
remaining uncertain as to the long ligatory requirements will be re¬
may have in mind. Try it.
///,/
>>
/
term credit of the property and duced to
$5,000,000 before a read¬
worried over the possible matur¬ justment
period
could
set
in.
ure

5

MINNEAPOLIS &
ST. LOUIS RAILROAD

into

Chesapeake
&; Ohio .common
appears
inad¬
visable to say the least, the stock
does

YORK

While purchase at this

hopes of

payment

once

LINE]

substantial concessions below

(Chesapeake & Ohio

The

-

SEABOARD AIR

Form

Inquiries Invited

common

rumors.

Registered

logic in

controlling interest in Nickel
now) to support the

a

Plate

manager who told us that he never saw a;
really successful who didn't get the urge to do
of these "prize contests" as soon as such a trip
.was announced;
He said, the fact that'he could go home and tell•
the Missus to pack her bags/ that the boss was paying.for,their trip:
;was enough in itself to make most salesmen get busy. --.</••
'
;

salesman

a

,

As to prizes, make, them worthwhile.; If there is anything

most

such

terialized.

arrangement.

an

WILLIAM St., N. Y. 5

New York

prevailing levels for coupon bonds

contemplate
exchange into
Ohio
common.

There would be sufficient

themselves will immediately

men

of

Chesapeake

a

at

would

arrears

offer

an

fair chance.

a

52

supply several lots of

can

In

quarters that the "something" to
be; done about clearing up divi¬

few bonuses for production, be sure every
Don't put the star salesman in the same spot
with the newer men, or those with the smaller production. Tie the
idea up with a new customer campaign.
Or grade a two months'
production against what the same salesman did during a prior two
month period.
Put each man against his past score and see who
shows the greatest percentage of improvement.
In this way'you
has

HART SMITH & CO

"to do something" about
over $70 a share.
These
—
1 ;
- —1—

RAILROAD BONDS

/ At the

won't outwardly admit it.

man

We

stressing the necessity for making
provision to meet the 1947 matur¬
ity of two underlying mortgages.

-while.'Even

themselves to

time had been based in large measure

that

1

competitive campaign is

a

a

rumors

rumors

-Then, again, sometimes it's the fact that he always .has to beat his
'own score in order;to keep ahead of his job that causes many a
man
to stick to selling as a career'.-' Good salesmen have a. keen
[competitive urge—they like. to 1 meet a challenge head on—they
.become

gripped the stock for

that the management was going
the dividend arrears which now amount to
on

There

Montreal Lt., Ht. & Power
3y2s, 1956/63/73

the

on

Report of Reorganization
Plan

sent

Request.

upon

•

Frederic H. Ifatch & Co.
148 State

St., Boston, Mass.

-

.

.

ity problems.
<

Philadelphia Transportation Company
Consolidated

'

-

due

3-6s

Since reorganization Jan. 1940

2039

has

company

reduced its funded debt outstanding by $8,276,191

including
$1,165,700 of these 3-6s. This reduction is equivalent to $264
for each 3-6 outstanding. After all taxes, rentals and fixed
charges, current income interest was covered 2.9 times for

/

circular

request

on

'

i.

Price at Market currently yields 8.95%

'

;

*

•'

<

INCORPORATED-

123 South Broad

.

V"; *

7

'

'

Street

management

first

in

the

•

charges.

While the fixed charges

themselves

had

been

never

bur¬

over

rr—:

All maturities

been

cleared

cated that the 1947 maturities are
now

below

secured

$20,000,000.
The un¬
6% notes (extended to

have

1950)

PH 296 and 297

...

•

v-

;

Broadway

"/NEW

-

,

been

program

has

the

YORK

«

un¬

sional due in 1950 but aside from

ser¬

the

there

is

more

While

con¬

accom¬

whole

no

near

shown

Nickel Plate

com-

to

0435

:

:

Teletype BS 359

N. Y. Telephone HAnover 2-7914

k

through

year-to-year gains even
The road

July.

in the high¬

was

est tax brackets last year

comparisons this
for

adverse

as

whole.

It is

year

the

so

that

not so

are

industry as

debt

that net for the full year

will top

At

earned in 1942.

it should not take long

before the maturities of the next
ten years are

reduced to negligible

proportions. With this background
there is obviously ample

basis for

attitude

towards

a

constructive

road's

the
year

preferred

earned $24.10

share.

a

last

which
-

'

maturing

earnings
a

fall off from

due to

as

recent

the

a

ten¬

•

1942

•

•

mian

heavy tax accruals,
continued to

report

Corporation
We maintain net markets in:

RAILROADS
Some

Seaboard
Thoughts
,

oft

Circular

Post-War Prospects
on

Collateral Trust Bends

air line

Consol. 6s/45 Bonds & Ctfs.

1st 4s/50 Bonds & Ctfs.

request

Ref. 4s/59 Bonds & Ctfs.

Mclaughlin, baird & REUss
Members New York Stock Exchange
ONE
TEL,

WALL STREET
HANOVER. 2-1355 ;




.

'/

NEW

TELETYPE

NY

1. h. rothchild &

'•

YORK 5
1-1310

*"

v " '

'

/

120

co.
63

specialists in rails

broadway

COrtlandt 7-0136

n.

y. c.

5

Tele. NY 1-1293

a

expected, therefore,

the $8,691,000

this rate

.

serial equipments

other

railroad

have

levels

dency

future

CAP.

than thirty years.

plished, - fixed charges have now
been reduced-to an indicated level

approximately $5,600,000

below

and, should

for

-As a measure of what

reduced

be elimi¬
through
operation of a strong sinking fund.
There is one other $6,500,000 divi¬
$3,000,000

nated in the

of

.

prior to 1947 have
up and it is indi¬

that and regular

structive

company

the

enough to threaten
iously the road's solvency,
company certainly had some
momerits

the

make

unsecured 6% notes. ''

•

-

120

rail¬

recognize the advis¬
ability
of
utilizing
prosperity
earnings to reduce its debt prob¬
lems and'the burden of fixed

should

virtually depression proof.

question, of debt maturities, not¬
ably the recurring problem of the

-

PHILADELPHIA
Teletype

of the

comfortable

STROUD & CO.
\

one

Plate

densome

the 12 months ended June 30/43.
Descriptive

was

This

Nickel

road group to

•'

*

(3V2 years) the

-

The

Tel.

Wall Street, New York 5

BOwling Gfeen 9-8120
Boston

Philadelphia

Tele. NY 1-724

Hartford

THE COMMERCIAL & FINANCIAL CHRONICLE

786

Thursday, August 26, 1943
*

Ohio Brevities
GimSr'JRUSSiLLcV
Members Cleveland Stock

Exchange

Union Commerce

1582

Cleveland

Congdon,

B.

Morgenthau, Jr. as a Vice-President of The National City Bank. :Mr.
Buffington will take over his new post on September 14.
In 1919
after serving as a Sergeant in France and later in the Army. of Oc¬

Bldg.,

O.

14,

Ohio Municipal Comment

President of The National City Bank of
Cleveland, has just announced the appointment of George Buffington,
former
Assistant Secretary to Secretary of the - Treasury Henry
Sidney

The

CV

& Summers
'

20

About

Co.

and

ler

Chicago.

he joined Hayden, Mil¬
of Cleveland later

years ago

500

Open Wire to Troster, Currte
New York City

in

Illinois

Distance

Long

565

and
92

Manager of their

becoming

Co¬
From this
Continental

lumbus, Ohio office.
position he went to

he
Depart¬

Appalachian

Coals,

Cuyahoga County in the amount
of $413,000 and Toledo city and
school district in the amount of

,

National City Bank
of Cleveland

Investment

the

entered

Dillon & Co.

of Eastman,

fij

partner

He then became a

the

in

served

Later

Bond Fi¬

War

nancing Division of the Treasury

took

and

Department

quest/

active

an

■

small- school

.

request

on

Commerce

ington.

Co.,

&

Bank

Building,

Cleveland

*•

Bell Teletype

Phone

CV 496-497

CHERRY 0260

E.

S.

The Weil, Roth &

of
Cleveland for the past 18 months,
has resigned for the Presidency
Bank

City

cular

on

largest bank in that dis¬
and
194th
largest in the

Road

and

Sold

—

1921

to

Quoted

the

of

dent

Cleveland

Mr.

2027

Union Commerce

Cherry 7445

'<

Teletype CV 348

W.

Richards

Field,

vestment banking
offered

Shares

O,

were

share,

per

group

shares

priced at $22.50

first

the

was

of Cleveland
M. A. Hanna Co.
Common

stock.
The company, a manufacturer
of

present
ferred

it

outstanding

them,

6%

the right
on

share basis, for new

ex¬

for

4V&%

pre-

ferred shares.

Investment Securities
Union Commerce

Tel.

Main 6800

Doesn't Choose to Run

Bldg.

CLEVELAND, OHIO

Teletype CV 67

William
dent

of

Heintz

Co.

fused to

land,1

S.

"Bill"

the

run

He

Jack,

fabulous

of

Presi¬

Jack

Cleveland, has

&
re¬

Ohio

-

Kentucky

-

West Va.

group

rejected

a

move

win first.

thing

WEIL ROTH & IRVING
COMPANY

I have

else,"

a

We have

BONDS
MUNICIPAL-CORPORATION
BUILDING

CINCINNATI

no

Jack

to

New

Mullen, formerly "pub¬
director
of
the
Chicago
Mercantile
Exchange
and
one¬

licity

South¬

.

Bank Deposits

Ohio State

Show Increase; Loans Drop
The

L. Hart, Su¬

report of W.

perintendent

of

were

779,701 on June 30, 1943, as com¬
pared with $2,226,897,900 on Dec;

31, 1942, and $1,959,786,521 as of
30, 1942. As of the same re¬
spective dates total holdings of
U. S. Government obligations, di¬
June

rect and

guaranteed, by the State

banks

ciation of America, is the new edu¬

$975,157,233 on Dec. 31, 1942, and
$697,798,400 on June • 30,
1942.
Finally, total loans as of ; such

in

Ohio

$1,375,241,944

on

amounted

June

30,

Members Cleveland Stock Exchange

Bldg.

CLEVELAND

not

need tax

who

j

New

York

Tele. NY 1-1541

Cincinnati
Tele. CI-574




$45,000

1%

Port Clinton

bonds.

$21,900 of bonds due 1944-53
DA's at 100.488 to the Port

as

National

Clinton

DA's.

for

by
who

selling

are

100.83

at

with six
$59,-

Bank,

Lorain sold

a

&

lV4's

DA's.

On

next

1945-48.

Monday

Shaker

C,X

„•

such

With

short

a

and

supply

help from institutional selling,

no

been

nevertheless
few

Banking

Heights School District will sell
$10,000 due 1945-46, and on Tues¬
day Toledo will sell $78,900 due

it

securities,,

Lorain

1.12% yield, and Halsey, Stuart
Co. the third bid of 100.54 for

with which to subscribe for gov¬

ernment

the

to

Co., a basis of 1.10% net with
Braun, Bosworth & Co. submitting
the second bid of 100.74 for iy4's,

exempt income,

therefore

is

that

wonder

no

has

there

reduction in the bidding

no

ideas for Ohios.

.

", >

there have been remarkably
Ohios included in
This

offering

Teachers

by

such

Geo. E. Chapin

State
be-

Joins

J. A. White & Go.
CINCINNATI,

V

and

its

Municipals
The recent report of W. L.

Hart,
Superintendent of Banks for Ohio,
shows - that
deposits
for
state
banks
only
in Ohio
increased

$364,881,801, or 16%, during the
first six months of 1943.
During
the

period, holdings of U, S.
by these
(Continued on page 787) \
>

same

Government /securities

Trading

han, Harris & Oatis and Stranahan, Harris & Co., until Decem¬
ber, 1940, representing them as
salesman in various parts of Ohio
from 1920 to 1940. More recently

Philip Carey

Suther¬
Co., in eastern Ohio.
Mr. Chapin
is the author of
various works dealing with the
municipal bond business. He is
the originator of the decimal sys¬
tem
of
interpolation
of
bond

Clair S. Hall & Co.
Union

'

Trust/Bldg.

CINCINNATI 2,

&

values.

Phone:

Main

&

O.—Gillis,

of

Municipals

'

5%

& 6%

Pfd.

Gruen Watch Co.

W. D. Gradison & Co.

anniversary

tenth

the

the founding

&

Rus¬

Co.,
Union
Commerce
Building, members of the Cleve¬
land Stock, Exchange, on Aug. 23
,

celebrated

156

Philip Carey Co.
Com.

CLEVELAND,

Tele. CI

Territorial Bonds

'

Ohio

sell

OHIO

1433

Land Trust Certificates

Celebrates Decade
;

Lithographing

Cincinnati Bank Stocks

he has represented Ryan,
land

in

U» S. Printing &

Strana-

successors,

Markets

•

Marathon Paper Mills

in the

was

Army "in " World War I, he was
continuously associated with this
firm

Banks In Ohio Are Buying

offerings.

Ohio

the

Retirement System,

MEMBERS

of their, firm.

New

,

York

Stock

•

■

Exchange

i' Cincinnati Stock Exchange
York Curb Associate

New

642

were

follows:.-$524,546,-

as

June 30,

on

on

Dec.

on

Jufie

■■■■,,

-

Dixie

1943, $565,364,466

31, 1942, and $618,522,274
30, 1942.
■ - < • ■

Terminal Building

CINCINNATI
Tel. Main 4884

Tele. CI 68 & 274

OHIO

OHIO

Ohio P. S. Pfds.

And

General Market

Municipals
For Our Own Account

Collin, Norton & Co.

,

MEMBERS
New York Stock Exchange
Cleveland Stock Exchange

(Associate)

Chicago Board of Trade
Associate Members New York Curb

Field, Richards & Co.

Katz & O'Brien

Toledo
Adams 6131

Tele. TO 190

New

York

BOwling Green
9-2432

Union Com.

Bldg.

CLEVELAND
Tele. CV 174

Union Cent. Bldg.
CINCINNATI
Tele. CI 150

J.A.White&Co.

Investment Securities
Carew

Teletype CV-255

sold

sold

to

SECURITIES

L. J. Schultz & Co.

do

1943,, dates

Hickok Oil

.

announced

been

have

funds throughout the country

$2,591,-

time assistant educational director
of the Investment Bankers Asso¬

York

Union Commerce

executives of the

State banks in Ohio

time for any¬

spite preparations by many funds
for subscription to the Third War
Loan next month. Although many

of 13 months when he

Ohio group,

Toledo Edison Pfds.

WIRE

•"/.•/'"v.-;'

all of Cincinnati,
are: B. J. Lazar, Federal Reserve
Bank,
Secretary;
Gordon Reis,.
Seasongood & Mayer, Treasurer;
W. Maxwell Fuller,
W. E., Hutton
&
Co., Recorder; Louis L.
Kaufman, Office and Supply Ad¬
ministrator;
Charlton
.Wallace,;
Publicity Chairman.
•
ern

•

■

in

Named to Capital Post

A. Hanna Co.

PRIVATE

H.

to

declared.

for this offering there
exceedingly few Ohio
bonds shown in the market, de¬
Except

,

have been

twentyr

Southern; Ohio.!

of

war

cational director of the Gray Iron
Founders'
Society of Cleveland

(Common)

Union

hand

a

.

and

Banks of Ohio,
reveals that total deposits of the

John P.

Member Cincinnati Stock Exchange

TERMINAL

will have to take

government.

THE

DIXIE

Republican
in Cleveland to draft him.

"My first thought now is pro¬
duction.
Maybe some day busi¬
ness

Municipals

County

Halsey, Stuart & Co., with eight

bids for

municipals to provide more money

for Mayor of Cleve¬

launched by a young

WANTED

OFFERINGS

Other

pre¬

to

share

a

embracing

to ; chairmen.

offering

was

holders

change

Merrill, Turben & Co.

cleaning equipment,

vacuum

announced

Very

Still

Limited

OHIO. —J.
A.
White & Company, Union Central
National' Bank
and
Trust
Co., Building, announce that George E.
Dayton; Raymond F. Fletcher, The Chapin is now associated with
Portsmouth "Times," and J. Harry their firm. Mr. Chapin started in
Veatch, Dayton, of the Mutual the municipal bond business in
Benefit
Life
Insurance ..Co., of 1914 with Sidney Spitzer & Co.,
Newark,
were
appointed vice- Toledo, Ohio, Except for a period

public offering of the company's

Nat'l City Bank

totaled

have

Muskingum

bids

,

,

Banker, C. J, Devine
& Co., Cincinnati; J. W. Bannon,
President of the Security Central
National Bank, Portsmouth; W; H.
J. Behm, President of the Winters

which

This

r

upon

/.

Third

Fifth

Area,

Howard

of Hoover Co. of North Canton,

Cleveland Trust Co.

the

counties

two

in¬

an

common

108,634

<;

Company, Cincinnati, has
appointed chairman for the

Third

Horn-

headed

Co.

&

4%

circular

of

been

and

Weeks

&

this

Trust

& Co.,

Smith, Barney
blower

of

dent

Makes First Public Offering

Bldg.

CLEVELAND

resigned and
private business.

enter

Ky.

CINCINNATI, OHIO.—Roy D.
Moore, Ohio State Chairman of
the War Finance Committee, an-j
nounces that John J. Rowe, Presi¬

plans

who

Enyart
to

C.

succeeded

Patterson

County,

Refunding

For War Loan Drive

Co.

Trust

Copies

Of Bonds

Supply

pals

for five years.

Member Cleveland Stock Exchange

.::

difficulty.

Building,

Ohio Committee Named

Before
becoming
associated with Na¬
tional City, he was a Vice-Presi¬

*Offering made only by prospectus

Cayne, Ralston & Co.

sale, but in view of

offerings of considerable munici¬

General Electric

join

Bridge

request.

and associated companies.

—

little

'

Irving Com¬

be had from the firm

may

than

14,000 banks compris¬
Reserve System.
Mr. Patterson, who is 48, came
to Cleveland from New York City

Bought

request,

on

Terminal

McCreary

Bonds.

ing the Federal

in

Dixie

pany,

Akron,

more

Common

report the suc¬

should

bonds

on

have prepared an interesting cir¬

First-Central Trust Co. of

the

of

trict

"Hoover Co.

August,
subdi¬
only $130,-

Ohio

bonds due 1944-48 as l's at 100.475

desirable maturities, the
all be placed with

the very

Cleveland,

Vice-President

Paterson,
National

the

of

1899

ESTABLISHED

Terminal Tower

by

880 of bonds due 1944-53 as

OTIS & CO.
(Incorporated)

Co. Common

Hoover

sold

issues

visions

to

of this

cess

Union

Ohio will send late information
Heads Largest Akron

So far in the month of
new

'

Ralston

Cayne,

and what help it is
to be of only a very
temporary nature.
promises

of

many

market. \

It is too early to

in directing Victory Loan
drives during his stay in Wash¬

this state,

in

that prac¬
into
the

" come

never

of the short maturities be¬

cause

ing sold/will be of little help in
alleviating the shortage of bonds

580, with $88,900 scheduled to be
sold next week. Early this month

districts,

which represent names

tically

various

of

blocks

smaller

the

part

Analysis

Ohio at

in

Otis
&
Co., Terminal Tower,
Cleveland, haye prepared an, in¬
teresting circular on National City
Bank
of
Cleveland/which they
will be pleased to send upon re¬

interest,
least, centered around
Considerable

$363,000.

Illinois Bank of Chicago where
ment.

and

aggregating $294,-

district

school

agency
,

.

were«>>

value, Cleveland city and
totaling $804,000,

000 par

largest

marketing

and oldest coal
in the country.

Inc.,

offering

of Akron city

district

school

Director t of

a

the

in

Included

various issues

J. K. Taggart was elected Viceand

This fund received bids Wednesday for $3,365,000 of Ohio
All of the bonds mature in the years between 1943
1948, with most of them due 1944-47. Altogether the list included
blocks ranging in size from $7,000 to $320,000 par value.

System;

•municipal bonds.

society.
President

event of the month in the Ohio Municipal
yesterday by the State Teachers Retirement

outstanding

market has been the sale

cupation, Mr. Buffington became ♦>associated with the Credit Depart¬ and will make his headquarters
ment of The Central Trust Co. of in the Washington office of the
Teletype

}

CINCINNATI
Tel. Main 0138

Union

Tele. CI 489

Central Bldg.

Cincinnati 2, Ohio

Tower

Teletype
CI

163

' '

;

Telephone
Parkway 7340

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

158

Ohio

Municipal News & Notes
Tax
for

relief

the

legislation

North

enacted

Comment

Carolina, North Dakota and
exempted all pay for
.

the1

various

cludes

this

states

substantial

a

service

in¬

year

in

forces^ with

Wire Bids

cm

VIRGINIA-WEST VIRGINIA
granted real

legislatures

NORTH and SOUTH

and personal property tax exemp¬
tions up to a certain amount or on
certain

CAROLINA

property; fre¬
quently deferred collection of all
taxes until after the war without
types-of

interest

penalty;

or

than

extended

<

owned

by

servicemen

families.

their

or

wives

than

more

armed

by

Federal Reserve System located

service.;

•'A'

were

Virginia

resident

among

the

or

least

usually
of the

end

eight

for

kota

and

Wisconsin—granted

extension

was

months

consin,

the

federation

granted

the

extension

at the same time

war,

from

servicemen

re¬

pen¬

the taxes.

on

In

relief-

the

to

this

of

veterans

homestead

war

protect

from

from

year

new

a

feited
tax

from

held

sale

taxes

after

the

war

feiture will be cancelled.
fault

can't

or

now

are

with

income

forces in
field

legislation
of

members

;

/

extending
armed

the

regard to the .income tax

has

likewise

been

of

members

the

Philadelphia

provided with

will

be

New

placed

be

notified

in

enacted'

enacted

were

in

the

to

however, was gen¬
Arkansas,
California; 'Indiana, New York,




Approximate
Yield to
First call date

1.95%
2.05

Yield
Thereafter

101%

0.25%

2.25%

100%

0.75

2.25

100%

1.25

2.25

1957

100%

1.75

2.25

1958

r

106

2.25

2.25

Issuance and sale of these Certificates ore subject to approval by the Interstate Commerce Commission. The Offering
Circular may be obtained in any State in which this announcement is circulatedfrom only such of the
undersigned and other dealers as may lawfully offer these securities in such State.

HALSEY, STUART & CO. INC.
CENTRAL REPUBLIC COMPANY
'•

■

LADENBURG, THALMANN & CO.
'

INCORPORATED

OTIS & CO.

E. H. ROLLINS & SONS

(incorporated)

!

■_

incorporated

HALLGARTEN & CO.

HIRSCH, LI LIENTHAL & CO.

L. F. ROTHSCHILD & CO.

HORNBLOWER & WEEKS

R. L. DAY &. CO.

EDWARD LOWBER STOKES &. CO.

Road and
bonds

of

SCHWABACHER &. CO.
BIOREN & CO.

THE FIRST CLEVELAND CORPORATION

dated Oct.

HELLER, BRUCE & CO.

Bridge Refunding 4%

McCreary County, I

1, 1942, offer
as

an

Ky.J

incorporated

a memoranr

issued by the Weil,

Roth &

quest;

from

the

firm

■

'■{'

may

upon: re¬

To be dated Match 1, 1941, Principal and semi-annual dividends (September 1 and March I) payable in Philadelphia and
New York City. Definitive Certificates in coupon form in the denomination of $1,000,
tegisterable as to principal. Certificates
due 1944-53 inclusive, not redeemable prior to maturity. Certificates due 1954-58 inclusive, in the circumstances set forth in
the Offering Circular, redeemable at the option of the Railroad Company in the inverse order of maturity, on any dividend date
not earlier than March 1, 1944and riot later than March 1, 1946, on not less than 40 days notice, at 100% and accrued dividends.

These,Certificates

are

offered for delivery when,

as

and if received

by

us.

It is expected that Certificates in temporary

or

definitive form Will be ready for delivery in New York City on or about September 7, 1943. The information contained herein

Exchange!

Copies of This memorandum
had

F. S. YANTIS & CO.

tax exempt se¬

of the Cincinnati Stock

be

A. E. MASTEN &, CO.

WALTER STOKES & COMPANY

inter¬

Building, Cincinnati, O., members

income taxes, a step taken by at
least a dozen states. Income from

exempted.

1952

1953

1.90

1956

'-v

other sources,

,1.80%

1955

com¬

Irving Company, Dixie Terminal

not

1951

they

servicemen's

erally

1.75

Ex¬

and allowances from personal

of

1950

1949

Situation Of Interest

dum

as

1—Exemption

pay

1.60%

1.45

1954

,

{

1948

1947

;

DEMPSEY-DETMER & CO.
*

curities, according to

'

1.25%

1.00

York

occur

time

most

frequently
follows:

inclusive.

complete list

a

esting situation

given

y

income

Stock

by the States, the Federation re¬
ports. The two types of measures
'

1,1944 to 1958,

1946

(Accrued dividends
to be added)

discharge of the service¬

to

..

will be recorded and the investor

property

Similar

each March

1945

Buckley

sources.

when, as, or if, changes

induction, and the contract will

relief

.

0.65%

of

hands of the investor; a copy will
be retained by the firm so that

de¬

from-./the.-service.;'^

'

NON-CALLABLE MATURITIES AND YIELDS

pile the quarterly reports to the
government. Further information
on this service
may be obtained
from Buckley Brothers.

men

•

estimates

on

estimates

accurate

other

therefrom

AIsor

by filing an
99 days after

on

Prices

will

after

memo¬

from Peltason, Tenenbaum, Inc.

1944

investments, an analysis of tM
quarterly
income
expectations

remain in force until six months

\

Copies of this

*

rf

installments
land they are

within

-

re¬

tain

affidavit

Louis, Mo.

randum may be had upon request

;

buying from the state may re¬
the

memoran¬

are to

changes, are offering a new serv¬
investors, whereby if they

pay

tax-forfeited

on

was

a

baum, Inc., Landreth Building, St.

payment

aggregate

to

by Peltason, Tenen-

as to principal and dividends by endorsement
by The Pennsylvania Railroad Company

ice to

for¬

Minnesota servicemen who

include

and

with¬

the

in

according
issued

iV
^ ••
be issued under an Agreement dated March 1,1943 which provides
for the issuance of an aggregate of $12,240,000 par amount of Certificates to be secured
by new standard-gauge rolling stock, estimated to cost not less than $15,300,000.

income, with the risk
penalties for inaccurate esti¬

York

delinquent

of

the

tax

dum

i

Certificates

annual

from

conveyance;

or

payment

,

•%

Brothers, 1529 Walnut St;, Phila¬
delphia, and 63 Wall St., New

normally would be for-.
to the istate because of

upon

redemptions

ation,

Authorized Issue of $12,240,000)

annually $386,000

T

T'
These

if

most of the

investment

after the

will be

an

Service To Taxpayers

ors

Minnesota law,

delinquency

a

was

To be guaranteed unconditionally

mates, it is essential that invest¬

property owned by servicemen
which

deferred

was

interest per year.

of

war.

Under

""C;:
.7

the taxpayer's ability to pay is
"impaired"
or v "materially
af¬
fected" by the service. i

of

delin¬

for

sale

one

and

terly payments based

tax

ample, exempted property owned
by servicemen at the time of their
until

'

quires all investors to make quar¬

proceeding
against
their property.
Arizona, for ex¬

quency

This

$138,243,000.

Red

including
Vermont, collection

,1 Since the new tax law

delinquency

induction

poration offers an interesting situ¬

"f CALLABLE MATURITIES AND PRICES

;

servicemen

be due

noted,
to

states,

-

income taxes

;

Several states took further steps

to

redemptions

(PHILADELPHIA PLAN)

:

in 1941 and 1942.

York Corp. Attractive
Common stock of the York Cor¬

Wis¬

states, interest
forgiven on
delayed
income ,tax: payments,
though Arizona will charge 6%

granted
veterans of World War I, a step
taken by other states this year and
exemptions

Wisconsin.

and penalties will be

residence on land
receiving such exemptions.- In
-this
connection,
Michigan * ex¬
tended

of

For

forces

armed

equivalent to

.

several

Montana

protect servicemen's prop¬
erties
receiving homestead, ex¬
emptions several states, including
Louisiana and
Oklahoma, made
To

with

York office.

2U% Equipment Trust Certificates

traveling abroad.

effect gave servicemen the same

service

in

of

John F. Clark retired from part¬
nership in Newburger & Hano on
Aug. 19.
Mr. Clark made his
headquarters at the firm's New

•V.'iV'' JV,

Cross and government officials

;

Illinois and Iowa legislation in

<

it is

program,

approximately $141,000,000.

Maryland, however, and for

alties and interest

•

in

for three months

the

>.

<

such six-months extensions. The

12

leasing

as

Anglim retired from
partnership in W. E. Hutton & Co.,
New York City, on Aug. 16.

Pennsylvania Railroad
Equipment Trust, Series N

war.

states—Arizona,

taxes

property

Sons,

J.

a

California, Idaho, Indiana, Min¬

the states deferring

of

John

,790,000

for

in

collection

&

pay *

owed by servicemen until after

„

of the

(Balance of

nesota, New Mexico, North Da¬

.

Kentucky

and

allowances,

charge
At

Michigan, North Dakota, Ohio,
Texas,

Edwards

•

period of six months after dis¬

;

•

member banks

for fil¬

ing of income tax returns
income other than service

!

•

a

j.

2—Extension of time

v

and

-

G.

tax all amounts received as

pension, annuity or other allow¬
ances • for
personal injuries or
sickness resulting, from military

Maine exmpted the estates
veterans from all property
taxes;
Massachusetts
exempted
temporarily certain types of real
to

A.

Aug. 13.

a

war

belonging

weekly firm changes:
Joseph
Witterman
withdrew
partnership in the firm of

exempted from her gross in¬

else;

servicemen and their wives.

Exchange
following

the

satisfaction

bond

that

$3,000 respectively to income-tax
exemptions for service pay. Mary¬

however,

of

property

withholding tax

reported

month, when

even though the
rented to someone

were -

the

ported] by

services,

homes

pay-as-

announced

from

the first full month of

attached limitations of $2,000 and

the

in

In. July,

quarterly

worth

men

has

with bond sales.

under

$5,000.

owned

expressed

slightly

Mississippi made tax exempt the
homes

have

to

June,

property provided the

new

taxes have not interfered
with purchases of war bonds and
you-go

Bureau of Agricultural Economics.
This report is based upon data re¬

Minnesota and Oregon

come

taxable property was not

The New York Stock

states, in

.

North Dakota also exempting pay

land

their

quite

to have said that the

totaled

New Hampshire in 1941 granted
on

belt

corn

report of the
trend of demand deposits of coun¬
try banks recently released by the

servicemen exemptions of $1,000

;

during

Anent bank deposits, it is

Telephone 3-9137

of those in the merchant marine.

widows.

or

volume

the latter half of 1942.

interesting to note

of
$1,000 were granted servicemen
this year by Connecticut, Idaho
and Nevada, while New Hamp¬
shire allowed exemptions of $3r
000
for
totally disabled vet¬
their

in, greater

their losses of such bonds
,

exemptions

tax

Apparently,

System Teletypes MI 83 & 84

V.

-

Property

erans,

RICHMOND, VIRGINIA
Bell

million dollars less

this
year,; but yet not enough to offset

CRAIGIE&CO.

to

a

year earlier.

nicipals

and granted special
tax-forfeited land

protection

almost

a

the banks have been buying mu¬

,p. w

exemptions, in .many
relaxing the residence re¬

quirement;

the seven

Exchange

Weekly Firm Changes

which Ohio is included, had risen
to 309%
of what such deposits

41%.

were

MUNICIPAL BONDS

homestead
cases

in

(Continued from page 786)

$400,084,711, averaged in the years 1924-29. A
Holdings of municipal year earlier such deposits were
bonds increased only $2,542,624, or 203% of this base.
3%. It is interesting to note that
during the last half of 1942, hold¬
Bond Sales Unaffected
ings of municipals by state banks
in
Ohio
declined $3,471,248, so
By Pay-Go Taxes
that total holdings of such bonds
Secretary of the Treasury Morby these banks on June 30, 1943
genthau was reported on Aug. 19
or

covering

10.

State

N. Y. Stock

state banks increased

of

number

the property
tax field, the Federation of Tax
Administrators
reported August
measures

armed

the

places of less than 15,000 popula¬
tion. The repefrt shows that these
deposits in country banks

Municipal

demand

Wisconsin

benefit of servicemen by

787

;
.,

baa been carefully compiled from
'v'., .?i

* August 24, 1943.

considered reliable, and while not guaranteed
we believe it to be correct as of this date*

sources

as

to completeness or accuracy,

THE COMMERCIAL & FINANCIAL CHRONICLE

.Thursday, August 26, 1943

jXwij

Industry is lielping win the war;,;

industry must help build
...

■

'-.V-

"'.:V

After'the war is

decisively

"wort:j-■ t^^-rlrv

what kind of world is essential

This

must




min

is needed

be

town; a

every man s

for

a

just and durable peace?

question is being asked today everywhere in the world. •; Yr.

No expert
It

peacetime" world

a

"V;:j. j>

a

to
as

world

tell

peaceful;and neighborly

the

answer.

1

•

\

:

^

as your own

and farms

are

How can;

is

be

a

•

busy world where factories

working and where there

such

are

1

j
•

jobs for all.

world be brought into being? The surest
jv

a

,.

think and talk about it. Full and complete dis¬

to

cussions

must

j
|

world in which decent people can bring up their

children'decently. It

way

you

on

the

porches of this

country, over

its fences, in

churches, schools, clubs, and always at meals—that is how

|
1.

the terms of A JUST AND DURABLE PEACE
.

.

formulated.
In your

'

discussions keep in mind this fact;

peace must
/>

4

•"•.

of

good will

THE

must

can

be provision in

be just. Only

INTERNATIONAL

a

just

your terms

your

of

can agree

plans for

peace can

NICKEL

be
V '

be such that the people of other lands

with them. There

can

sus-

endure

COMPANY,

INC

Subsidiary of The International Nickel Company of Canada, Limited
;•

New York, N. Y.

;

y Awarded, td

-

••■■■?

Huntington Works
•X»Xy:

•vwX

mm

mm

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

789

National Security Traders Association
OFFICERS
■:r'U

Secretary

Edward

H.

B.

Welch

President

Winthrop Pizzini

2nd Vice-President

Treasurer

Wm. Perry Brown

1st Vice-President

Jerome F. Tegeler

Russell M. Dotts

EXECUTIVE
The
•

Thomas A. Akin

Prank P.

Executive

COUNCIL

Council is composed of

the officers and the

following members

Meyer

COMMITTEE

-

Joseph W. Sener

Henry J. Richter

ON

ARRANGEMENTS

Chairman

Richard

W.

Simmons

Leo J. Doyle




Henri P. Pulver

Edward H. Welch

Ralph G. Randall

T. M. Wakeley

Thursday, August 26, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

790

Greetings Froifi N S T A Officials Past and
JOSEPH W.
much

A

SENER'

brighter

It

atmosphere

at the annual meeting
of the National Security Traders
Association than was prevalent in

prevailed

Not only have our boys

3942.

•'at the front" may be

WILLIS M. SUMMERS

.

is

pleasant privilege as

a

a

National Se¬

Past President of the

them

to

in present

testimonial

the

to

current

Congratulations

B.

con¬

It

WINTIIROP

due

pleasure
selection

and

erated

those

to

carried

since

on

so

are

who

well.

have

I

ex-

with

was

them for the spirit that they gen¬

Association, to be
to commend the
history of the National Security
Officers for the work Traders Association stands as a

publicly

the

attended

vention.

of us who remain confined
quarters.
/o-''In
my
opinion, the ten-year

many

curity Traders
able

assured of
of the

and; support

interest

the

Present

active in its affairs and many of

that
as

deal

learned

of

officer

I
an

NSTA for the

riZZINI

great

of

a

coming

an

the

Our

year.

Association has become

of
my

impor-

organization's

virility and usefulness of purpose.
on
sound .basic prin¬

X^ounded

by able

and administered

ciples

whose

officers

integrity

was

al¬

above question,^the NSTA
progressively
enlarged/ its

ways

has

and influence. Perhaps the
outstanding and r continuing
contribution which the NSTA has

scope
one

made

of

betterment

the

to

the

ceaseless campaign

business is its

educating crack-pot pro-,

Toward

posals into oblivion, yWell-armed
with factual knowledge and forti¬
fied with

Willis

Joseph W. Sener

the armed forces turned the

tide

victory and
the continuance of our system

but confidence in final
in

private Enterprise has had its
effect in higher and more active

of

securities markets.
We all hope

before

we

it will not be long
our
"Victory

hold

Meeting" when we will welcome

,

Summers

M.

r

done, and
felicitate their successors elected
at the annual meeting.
I have
had
a
deep interest in NSTA
since its inception in 1934, and it
is very gratifying to observe how
the dual activities of social con¬
tacts and serious business have
which

both been

cessful

'

J. ARNOLD

can

helping in any way we
in the "Third War Loan Cam¬
by

paign" next month.

to the

ful

Joseph W. Sener

next

this

.

In

are

the

Middlewest

prosperous,

railroads

are

are

operating

at

to

with

the

efforts

the

fort

in

firm

in

the

United

States,

officers of

the

Organi¬
zation this past year, has been one
cf the greatest pleasures I have

past

Henry J.

which

has

have

officers

of

your

given

un-

their time and ef¬
service.
It is my

sincere wish to be able to live up
to

the

splendid example
have so ably set.

they

B.»

which

Pizzini.

Winthrop

JEROME F. TEGELER
I thank the members of the Na¬

ex¬

Working with Perry Brown and

pleasant
city, and industry is running night
knowledge and experience, I am
and
day.
Money is
easy
and certain that what' the Chicago
plentiful.
own

are

would have members from every

capa¬
my

which

pended for the good of the In¬
dustry, I feel confident that we

J. GENTRY DAGGY
From

the

throughout our

located

stintingly

not only for its members, but
whole.
If more of us were acquainted

the other

good,

;

security busi¬

the

country.

ing

Willis M. Summers

conditions

crops

continue

appreciate

to

in

representing as it does the
combined thoughts of its many

ness,

for the Industry as a

confident that

I feel

for

has given me" an

work which the Association is do¬

benefit of the trading fraternity.

EDWARD D. JONES

year,

opportunity

factor

.' Your

SCANLAN

Traders Association

past

tant

members

the

of

will

administration.

Security

accomplished in a suc¬

year,

officers for a success¬

EARL M.

trading,

work

new

Being Treasurer of the National

v

and under the
W. Perry Brown,
and his official family selected for
counter

B. Winthrop Pizzini

Walter W. Cruttenden

manner.

leadership

members

our

gratifying to all of us to
that, in spite of adversity

back our members who are serv¬
With
a
minimum of fanfare,
ing their country in all parts of NSTA has
been
active in all
the world.
We can support them matters which
affect over-the-

best

•

good wishes to
and my best wishes

tend my sincerest

It is
note

W. Cruttenden

W.

,

HENRY

have

they

high sense of /respon¬

a

sibility, we stand ready td accept
the challenge of Whatever
j the rfu^i
ture brings.
•'
!. v x.rr.:
J. Gentry Daggy

tional

Security Traders

Associa¬

for the privilege and honor
serving them as Second Vice
President for the ensuing year.
tion

of

A

been

great amount of work has
accomplished
by ' Perry
associate

Brown

and

his

during

the

past

officers

The re-

year.

Arnold

plagued

our

industry

since the National Security Trad¬

conceived,
staunch-hearted member¬

Association

ers

that

our

was

ship has overcome numerous ob¬

and

stacles,

today

for

institution

stands

which

it

as

was

an

de¬

signed: the public good. /.We can
all
be
proud that through co¬

membership has
contribution- to
•
;
'.•! ■ ■'^

operation

our

fostered

major

our

a

industry.

,.

It is natural to assume that this

spirit will be furthered under the
incoming administration and that
can

we

look forward to continued

progress
to

our

J.

Edward

D.

meeting

Jones

The security business has been

and

appears

the

immediate

future

promising.
Edward D. Jones

in

with

constant effort
high standards of

our

/

profession.

" 'v'»

Henry J. Arnold

Gentry Daggy

lacked

contrasted

,

a

regular

had.

numbers,

pre

Earl

as

WALTER

W.

war

convention

years
was

It

was

Jerome

M. Scanlan

CRUTTENDEN

my

the first group of

30 YEARS

I want to take this oppor¬

nomination

the NSTA, and I am sure that the

coming year.
Earl M. Scanlan

wisely

made

■

Request

INCORPORATED




for

(Continued

Daily and Monthly

NEW YORK

for

the

National Quotation Bureau
CHICAGO

Brown

in my opinion is a selection most

Quotation Services

on

Tegeler

Perry

President during the coming year

Security Dealers

Descriptive Booklet Sent

of

tunity of welcoming the new of¬
ficers and wishing them, along
with our Organization, the very
best of success and good luck for

Specialists In Quotation Services-For

Publishers of National

F.

.

privilege to address
Traders at their
held was fully compensated for by organization meeting in Chicago
the enthusiasm and sincerity of *n 1934.
The majority of this
those attending.
Moreover, those original group of NSTA are still
when

good

in

maitain the

SAN FRANCISCO

on

the

benefit

page

794)

of

Volume

158

Number 4206

THE COMMERCIAL

& FINANCIAL CHRONICLE

791

>

'

"

'

'

•

»

.

,

The
•:-In

behalf

ficers and

I

may

Presidential

of

our

the

National

Of¬

membership,

express

grateful .thanks to all

<

in

making

JNpSYT. A.

Greetings

proves

adver¬

this

of

the,; most successful

published; since

the

in

the

back

in 11938..

Vv

are

This

with

represent

us

To

issues

our

fellow

half of

our

local

untiring and

un¬

the National

and

financial

our

industry.

Seibert, his solicitors and the
tire

in

affiliates and the

the

cooperation

member, Herbert

staff

of the

Financial

over

for

in various and

broadening angles of

<

represented

ciation
limited

committees

necessary

tend in behalf of

been

your

advertising

mittee

has

than

more

demonstration

the possibilities for greater

givirtg the

who

number

news

•

pThe National Advertising Com¬

Wm. Perry

,

support to your National Officers

inauguration

of the convention and

obtained

national

con¬

Commercial and Financial Chron¬

icle.

f

cooperation

special

edition

news

results

gratifying.

most

a

our

tisers and boosters for their

tribution

■

.

Advertising Committee Thanhs You

entire

sincerely

•

Chronicle,;;
our

I.

may

ex¬

membership

expression of sincere

our

en¬

Commercial and

appre-

Patriotically the Tenth Annual Convention of the Na¬
tional

Security Traders Association

the Annual Business

cancelled-and only

was

Meetings and election of Officers

were

before the NSTA in 1943-44 and with the assistance of the

Membership the Association will

go forward to an even more
Harold B. Smith
Mem¬ important place than it holds at the
present time in repre¬ Advertising Committee received
bers in attendance, in the
spirit of cooperation in the trans¬ senting; the securities
this year.
industry.
J portation problems of today, combined other business
May the post-war era bring
:.YY;;:YY;YY'--: Y-Yr YY-rYY-YY YY' Y
jnatters by making their travel to Chicago serve a multir
back our Convention Year-Book.
Wm. Perry Brawny President*
held at the Palmer

House, Chicago,

August 20-21.

on

-

•

...

,

-

,

.

tude of purposes.

I

p,.

National

Association, Inc.?

office

of

President upon

previous term of office.
official

;

I

came

before

family of excellent co-workers who

their part, aided

me

most fortunate in

was

did

during

my

having

an

than

more

by Chairmen and Committeemen with fore¬

sight and energy. Again, I

truly

can

say

that I have with

We have

an

active interest in the

folloiving securities:

me

for the

coming term a group of Officers and Members of the
Executive Council which can measure
up

tion

successfully to

the Association.
and to say

that

I

carry on

the business administration of

your

securities

all matters

on

p

pleased to speak for these gentlemen
confidence will be upheld and that the

Arkansas Missouri Power

am

Members of the NSTA will receive the best

resentation

American Furniture Mart Preferred

to every qualifica¬

possible

Coca Cola Bottling Co- of Chicago

i

p

p Deep Rock Oil

rep¬

affecting the membership and the

Federal Water & Gas

industry.

Iowa Public Service
As

long

as

this

Security Traders

100% support in the

Association

war

have

National Terminals

will be

Peoples Li^ht & Power $3 Preferred

devoting the major part of their time to doing their

served.

Many of

our

our

members

are

job unstintingly to give

success so

Bobbins & Myers Preferred & Common

justly de¬

in the armed forces and

our

United Public Utilities $2.75

all towards ultimate

victory and to have awaiting for these
our

their

effort.; In the forthcoming Treas¬

part in bringing about the sure-to-come
it is

pledged

Department'drive the members of the NSTA

found

Interstate Bakeries Preferred & Common

.

tional

ury

continues the members of the Na¬

war

men

armed forces the America of freedom

and

we

women

likewise

unity of

tion is most

more

important today than

cherish.

ever

Doyle, O'Connor & Co.

before,

INCORPORATED

and the fullest possible coopera¬
necessary between the various Associations of
purpose

the securities business.

Much

& $3.00 Preferred

of

Loyalty to the National Security Traders Association
by its members is

important business will

135 So. La Salle Street

Chicago 3, Illinois

come

REMEMBER...
''

^:YY;Y:YY-'-YL;t'Y i
WITH

Y-J; ,,r
nation-wide dealer contacts and
private wire connections with
brokers and dealers, and with no retail sales

department of

OUR

number

a

of the larger New York

.

our own

up-to-the minute trading facilities, serviceand markets are
entirely at the disposal of
-broker, dealer and institutional contacts, national and local, in

our

valued

P

OVER
•

*

'•:<

•

i

P
/•-.?;

•.Y.Y.-v-

Y

,

-

THE

-

COUNTER SECURITIES

•
in

•

■

,

•,

.

.

•••'."•

'

'

1

■

'■

-,'C-

Y.P;■

i..

,

-

•

;V

;

INCORPORATED

Members 'New York Security Dealers

I
TELEPHONE:




45 NASSAU STREET
RECTOR 2-3600

Association

NEW YORK 5

PHILADELPHIA TELEPHONE: ENTERPRISE 6015

I"

Y-:*'YY

PPv-pppf^i-i-^Kohb^iSearhart & Company
j

Smith,
'

Advertising Chairman.

being elected for' another term,

problems which

B.

1942-1943 NSTA

fully understand the responsibilities of the

can more

because of the

Harold

Security Traders

BELL TELETYPE: NEW YORK 1-576

-

THE COMMERCIAL & FINANCIAL CHRONICLE

792

^ !YY'Y/

Thursday, August 26, 1943

Municipal Finance lit The Post-War World
;;By
:71

:-•

':v'''■

Executive

V V;'—YYYY

Director

.-'YV'' '''"-Y:'-

"CARtr:HC. -chatters,

Municipal

Finance- Officers Association of the
...United States and CanadaYY'YY'-'

all large cities may levy revenues

^''Y-YY^YYY/

trend of municipal finance.
The
vast social and economic changes

that most of the expenditures
Municipal finance in the immediate post-war period is likely
were in the form of payroll.
influenced by a tremendous rush to. get on the public responsive to local community in¬
.
A hodge-podge of governmental
payrolls which will be felt most in Federal and State Governments come instead of revenues based in our .country have' been the
: Y Y principal factors in amending the
but considerably in local governments, Carl H. Chatters, Executive primarily on capital values.
activity and governmental reve¬
"Some
American
cities, are nature and scope of local govern¬ nue sources: has developed be¬
Director, Municipal Finance Officers Association of the United States
financial
and Canada, told members of the National Security Traders Associa¬ beaded for trouble if there is any ment
problems — and tween the federal, state and local
substantial
decline in
business. these social and economic move¬
levels with little relationship be¬
tion, Inc., at the opening of their "»~
"No longer can owners feel that These cities have been refunding ments may have even more influ¬
annual meeting last week in the
tween the unit of government as¬
increasing property values justify instead of paying off debts and ence in the future than they have signed to carry out an activity,
Palmer House, Chicago. Y''Y, Reviewing the background of them in carrying investment real they may have peak maturities had in the past. Let me name just and its ability to raise revenue to
estate at a loss." ;/:■ \:( V(!'y YY> YYy of bonds coming at unfortunate three
things to illustrate. The do so. Whether it is appropriate
municipal fi•
\

to be greatly

nance

may
as

a

the

He added' that in the
greatest menace to pub¬ limes."
and private property post-war period he expects to see
values of large cities lies - in the a further development .of revenue
utter decay of their central areas bonds and that there also may be
accompanied by falling property a tendency to make municipal
values
and
the
movement " of bonds payable from all municipal
But the

it

a s

lic

be taken
guide for

future,

.

Chatters

•Mr.

declared
the

that

war

remained sub¬

stantially un¬
changed since
earliest
days
although
it
was
designed

some

Was

Y' »■%.'';> Y/( Y-L
address V in

full

-

crease as

of public em¬
would • necessarily
in¬
would commodity prices.

I.

The amount left for debt service
would
from

be
1930

too
to

small—as
1933—and

it

was

there

Introduction

:You have asked

the crystal

it
in

would

"The property tax is resented
more and more by owners of real
;

Government creates

it

a

did

market

as

expenditures

government

me

as

protends for municipal finance
the years immediately follow¬

ing the war.
But the ball which
seemed crystal
becomes cloudy
when you inspect it too closely. So
let us look away from the ball to
the clear plate glass windows of
the past and the slightly befogged
windows of the present. • Perhaps
this view of the past and present

the country and to the finances of
other governmental agencies, Fed¬

through PWA and RFC."
estate because the tax does hot He said he personally hopes to eral, State, and local. But you can¬
reflect the ability to pay," he see a change in the revenue sys¬ not look at financial data alone
tem so that industrial cities and when you want to forecast; the
Said. '
■"■•
■'

are

-

much education

the

local

for

the

invention

of

as

the

possible, to

spect to

care

a

do

a

given unit of government to
job or collect or receive a
certain type of revenue is seldom
considered on a rational basis.

automobile .Formerly each activity .was rather

and. to the' modern.;ideas ^ith: re^

definitely Assigned to one level of

for the ill, the ..hun¬

government, While' at the present
many
broad functions of
government are carried on by all
expenditures has taken place be¬ levels of government and many
cause of this one physical contriv¬ revenue sources
formerly collected

gry, the unemployed and the aged.
What a transformation of local

these two social ideas!

*

time,

,

Now look out, the plate glass
window at the past. :
.V,;:Y-;Y
"y*.
:

to gaze into

ball and tell you what

of

due to

phi¬
losophy. that eveyone must, have

.

r

'

be
defaults and
delays.
Further, the Federal debt would
When most wealth was in the be hard to pay if levels of wages,
form of real estate and other tan¬ prices and taxation were lowered.
We should not be naive enough
gibles.
There is a growing resentment to think that public works alone
all over the country,
will
solve
the
he said,
unemployment
against the local property tax, the problem in the post-war era." will sharpen our eyesight for; a
increasing volume of tax-exempt
Mr. Chatters told the security glimpse at the future.!
;
) •
property, including that publicly traders he doesn't expect a flood
Municipal finances may now be
owned, and the decay of the cen¬ of municipal bond issues compar¬ studied intelligently [ only when
ters of our large cities.
able to pre-war levels "unless the related to the entire economy of
Carl H. Chatters

economy

greatest

ance and

t

financial difficulties because

ployees

ily for an ag-

valorem taxes.
in: favor of the

and

salaries and wages

-

ricultural

said he

"If

has

m a r

He

price inflation follows the change. YpY
Mr.
Chatters'
our
present local tax
text follows:
structure remains, there may be

and local gov¬

i

instep of being pay*

able solely from ad

•

system us e d
by municipal

p r

revenues.,

people to suburbs, he pointed out.
Turning to post-war possibil¬
ities, Mr. Chatters continued:

revenue

ernments

finance

,

r.

""\

.*v""i""

n.

•

The

*

' --■**•> r■

yT

* -Y''-T

V.;~

■''Y Y

' y

v"^;/

.

•

:

*

.

Background of-the

Past

by only one type of government
are now .collected by several.
; ;
The .revenue.system used by. the

municipal- and local governments
today has continued substantially
unchanged although it was de¬
signed for an agricultural econ¬
omy and for an economy where
wealth was in the form of tangible

Fifteen years of growing federal
relationships to municipal finan¬
cial affairs, vastly increased state
revenues,
and superficially im¬ property; real estate
proved local finances, are just be¬ other goods.: „•
>
hind us.
V V Y,
In
-fact
,

that

expenditures

priations from April 8, 1935, to
June

30,

1942,

amounted

to

$15,000,000,000, of which $1,000,000,000

was

spent in Illinois and

$1,750,000,000

in

New

York.

Think of the tremendous effect
on

local government of such ex¬

penditures when it is realized




WIRE

Inquiries and orders invited
T<),,

as

immediate * past*

of-improved

seen a

tax

at least

as

vulnerable to economic

change

as

they

To
over

were

illustrate.

50,000

In

in 1929.
150

,

cities

population median

year-end tax

CON NE C TIO N S

FAST AND EFFICIENT WIRE SERVICE MAINTAINED BETWEEN THESE CITIES

:

well

dec¬
collections,
decreasing state and local debts,
but there has always been a feel¬
ing that a crisis is just at hand.
Most cities have -improved their
financial position since 1932 but
there are many others which are

from" ade

federal emergency relief appro¬

more

municipal finance has

I
DIRE CT

the

r

'The above is illustrated by the

as

delinquency

was

Volume 158

Number 4206

THE COMMERCIAL & FINANCIAL CHRONICLE

26.35% in 1933 but was reduced
to 6.0% in 1942. Accumulated

.

:

tax

delinquency ; (median)

128

cities

48.4%
1935

to

debt

the

has

stant

25,5%
ten

fairly

con¬

between

years

$16,300,000,000 and $16,800,000,000,

but

State

*

'<

has

debt

s

declining.

been

has

be-

fluctuated

tween $2,900,000,000 and $3,200,-

000,000 and is

now

decreasing.

New York City alone had a net

debt

of

$2,385,111,000

30, 1943, which

on

more

was

June
than

double the national debt in 1902.
•

The

increase

j

and local

of state

expenditures .between

is related to the

tary * system,

debt,

areas,
accompanied , by
falling
property values and the movement

mone¬

world vor

in

34

of

these

while

the

•'

.

represented by over-;

creases were

head

schools,1
libraries, recreation and welfare.
costs,

The

protection;

decreases

tures

for

in

expendi-l

health, and
the most signifi*;

highways,

sanitation.
cant

were

<

But

increase

was

in

the amount

of

*

state expenditures, which in1932, exclusive of debt retirement,;
amounted to $2,495,000,000 and by|
1941 had increased to $5,375,000,-:
000.
Practically all expenditures
for state purposes increased but
the
greatest
proportionate
in-;
creases were for protection, wel¬
fare, schools, and fiscal aid.
;
Rapid extension of local retire¬
ment
or
pension
systems
has
taken place in the last five years
stimulated by the Federal Social
Security Act in which public em¬
ployes do not participate.
Nor
must we overlook; the entry of
public employes into the ranks
of

union>workers.

here: into three groups: those that
just seem to be true and are

foretell

city

decreased

■

fact, local expenditures, exclu-i
s}ve of debt retirement, Increased
from
$6,319,000,000 in
1932 tof
$6,783,000,000 in 1941/t The in-i

the- desire
and

of

people

for

in

' the'-

surrounding

creased.

leisure

better place to live.

a

social

In

two

140

areas

cases

both

need

the

creased
issues
1943

as

the

has

greatly

:

know. Sales of

you

in

first

about

were

issues of

new

billion "dollars

six
a

new;

a

ten-year average of more
that amount for the

twice

and original issues.
current financial

The

: *'•

' •

had

declined

to

obligations
record

following the war.

in the years

A generation of continuing tech-;
mical improvements lies behind us.

J

havebeen

There

beneficial

ditions have been created in

some

when

war

public

necessarily
commodity

employes

increase,

as

You also may

continuing high levels of
and taxation.

wages

control

of

Gov¬

business

will

continue, not because you nor I
want it, but because such controls
be

may

flash

be

forces

have

will

of

cost

local

government

Some

Perhaps there will be

no

is a decided trend
away
from centralization of revenues in
the Federal and
State govern¬

ments,

and

unless

there will be

local

govern¬

be

prevent

Certainly there will be

in

the

that

local

the

the

revenue

industrial

system

cities

of

owners

tax

BOND

increasing

cities, may levy rev¬
responsive to local commu¬
nity income instead of revenues

pay

,

if

prices and taxa¬
lowered. Nor should we

This
as

primarily
may

capital values.
taxes such

on

mean

wage

Philadelphia has; it may re¬
regional sales taxes; or it

quire
may

mean

taxation of tenants

occupants.

;

Some troubles

777-•■■ /.•;7':■

pear

public

will be

are

more

Will

bound to ap¬

in the post-war

bring
bond

post-war
flood of

works

municipal
issues?t; Yes, some, but'the
a

new

era.

,

volume

will

not

meet

pre-war

lation;
boom

cities

will

find

themselves

with great masses of

unemployed.
Perhaps both will happen. What
unless the Government creates a will
the
people
do who have
market as it did through PWA and xlocked
to Norfolk,
San Diego,
the RFC. The volume of new is¬
Portland, and Detroit? That will
sues will be restricted by the use
be determined partly by individ¬
of reserves that have been cre¬ ual whims and
partly by plans of
ated and by
the more general industry for conversion. War in¬
adoption of pay-as-you-go poli¬ dustry cities may be more sound
cies of financing. There will of
(Continued on page 794)
J
levels

or

pre-depression

or

levels

S

STOCKS
PUBLIC

UTILITY

PROVINCIAL

AND

MUNICIPAL

INDUSTRIAL

and

reflect

the ability to pay. No longer can
feel that increasing prop¬

'Markets maintained in all classes of Canadian external

:

owners

erty values justify them in carry¬
ing investment real estate at a
loss.

•■

-

and iniernal bond issues.

•

.

Tax

:

exempt property has in¬
creased in volume by federal pur¬

carefully at the record of fifteen chase of land, local acquisitions
twenty years ago.
i v' -1 ; ^ by tax foreclosure, and liberal in¬
..
Where has this record of change terpretation of exemptions for re¬

A-Slock orders executed

on

the Montreal and Toronto Stock

■or

brought us?

purposes.
i

in. Present

Conditions

That

Determine The Future

;

What

.

are

the important

*

factors

the

and

in looking back.

were
■

v

ele¬
affect municipal securities.

Several

ments

«;

general economic

federal debt and
the extension of federal income
faxes must necessarily exert some
The

volume

of

local debt and on the
ability of the individual to meet
pressure on




To illustrate,

:

or

net New York markets

V1' ^ .V:V; \'V/i' .*':>•

;•/

the state

' tax

present economic,- social
governmental structure that
tend
to
influence
municipal
finance in future years? Here we
•must be- mote specific-than -we
,in

Exchanges,

•

ligious, charitable and educational

.

commissioner of New Jersey,
when directed by the Legislature

DIRECT

PRIVATE

WIRES

•

:•'•V.';. \

77;.

CONNECT

cR-v-*;" 7/"'

'yy,

..

OUR

quoted

'/>'■ .'t'1t".';

NEW

on

request.

v*7'. !'*•' '7:- v''

YORK,

BUFFALO,

TORONTO

' •*

•*

AND

MONTREAL OFFICES

to

investigate in 1938, found ex¬
empt property in that state alone

valued

at

The

000.
sened

by

more

than

problem

the

$1,000,000,is

fact

that

.

perform

1

But the greatest menace to the

public finance and private prop¬
erty values of Jarge cities lies in
the

.

utter

,

v

r

BELL SYSTEM TELETYPE N Y 1-702

'*

/7".

7'77"vv' .*

'

7,

7/•

7.;'.'' '7

V

*7

'

.7

'

-•!'

*'

'*

'•*/*."/xh.

7 /'

.»•

:•!.

'V-v^ •'

Doxbiion Securities Grporatioh

many serv¬

ices required by state and federal

properties.

7'->

three-

fourths of this property is pub¬
licly owned for the local govern¬
ments have to

*

les¬

not

decay of their central

There

great reshifting of popu¬
either that or the war

a

estate

not

or

\

■

GOVERNMENT

property,

real

does

all

large

all centering around real
property,
present
the
greatest
questions at the local level. The

the

so

and

ments,

by

re¬

companying this, there should be,
hope there may be, a change

areas

including that publicly owned, and
the deteriorating of the centers of
our large cities—these
three ele¬

because

a

„

Growing resentment against the

more

ex¬

and I

based

to

naive

,

nor

_7 ;■(7

enues

hard

era.

;

■

alignment of activities or func¬
tions between the different levels
and types
of government.
Ac¬

a

of wages,

were

revenues

!':V

;

activities,

problems for the
for they will

no

greatly expanded in
population, private payroll, and
public services. Other communi¬
ties, many rural and semi-indus¬
trial, have remained unchanged.

property tax is resented

prob¬

municipal finance. Unless

there

been

local property tax, the
volume of tax exempt

the

on

remaining taxable property.
A
sound policy for
housing finance

industry and the armed

demobilize.

de¬

exempt basis, would throw a fur¬
ther disproportionate share of the

employment problem in the post¬

•

conditions

finance

the policies with respect
to subsidies.
Very great expan¬
sion of public
housing, on a tax

by depres¬
the Federal

followed

Furthermore,
would

levels
tion

to

necessary

boom

sion.
debt

$144,000,000,000.

post-war

local

on

on

prices.'; The penditures.

small, as it was from 1930
1933, and there would be some

ernment

will either remain about

pending

effect

pend

neither

prices,

that will be difficult to meet

.changes in financial planning and

procedures,: in accounting stand¬
ards and practices/ in municipal
•debt: administration.
Municipal
financial reports, while leaving
much to be desired, are: vastly
Letter than they1, were, from the
standpoint of content, reliability;
'and appearance. Budgeting meth¬
ods
have
been
developed and
manuals of procedure are becom¬
ing comVion.
Perhaps the most
■significant and apparent improve-;
-ment has been the higher level;
of ability and knowledge of the1
.individual municipal finance of¬
ficer. If this picture of improve¬
ments seems too rosy* just look

:

.

war

areas

scale housing proj¬
ects, both public and private. The

governments

expect

was

*.

tremendous expan¬

have

of

wages

defaults and delays.

,

municipal

..fa- *.

collections

-

a

of large

local

,

standing

:

be too

•

will have at least as good a

/

plain conclusions.

are some

enough to think that
public works alone will solve the

uations

extends

ments retain their vital

to

are good, and operat¬
constant or continue downward.
ing budgets are balanced. If this
penditures. I ;
"
f
Bear this in mind when consider¬
As a tribute to local govern¬ condition continues, municipalities
ing the property tax as the chief
ments: They have a record of pay¬ will Renter the
post-war period;
source of municipal revenue.
.
the
ment of their debts which cannot stronger than they entered
be equalled or approached by any depression period following 1929.
IV. Municipal Finahce^Post-war
About twenty states? now have
general class of security except
War or no war,, many condi¬
the
obligations
of ; the United laws permitting municipalities to
States Government.
In spite of set up reserves for post-war uses. tions have been accruing which
The effect of war employment inevitably would have changed
a few refundings and scalings of
and war expenditures has been; municipal finance* Some of these
.debt, and in spite of some delays
in paying principal or interest, decidedly' "spotty'' insofar as mu¬ .conditiohs have just been enumer¬
The im¬
the municipal bondholders in the nicipal finance is concerned. Con¬ ated, others will follow.

aggregate suffered negligible
And there is every reason
to believe that the present, out¬

What should cities do

municipalities
is
generally, Even
now, two years later, there
strong. That is to say, short term
are indications that assessed val¬
borrowings are unusually low, tax

.Without, in¬

bound to be
sion

amount left for debt service would

$163,000,000,000, but in 1941 this

position

'

government

aid, directly or indirect¬
ly, through such agencies as the
RFC, PWA, or HOLC.
Following the
war
there
is
or

lems of

would

period.
But
taking
the "Bond
Buyer's" figures for June, 1943,]
nificant at a time when prices
alone, total issues of $58,000,000
and wages are going up. The as¬
included $50,000,000 of refunding
sessed valuation of property in
bonds, leaving a mere handful of
new

credit

and

during the period of recovery. As
matter of factj the downward
trend has continued.. This is sig¬

in 1932

the

national

should be determined now.

would

'a

States

becomes
administrative

v

remains, there may be some finan¬
cial difficulties because- salaries

in areas representing
population.
•
f

the [United

and

Here

The assessed-valuation of prop¬
erties
has
not
been increasing

than
same

our

municipalities, the

If price inflation follows the
war,
and our present local tax structure

owners

half of

a

with

compared

erty

of

of

are

financing

after the war?

mu-l present the major problem for the
de¬ municipal authorities and prop¬

months

quarter

our

greater

tasks

form of streets and
sewers, air
transport and welfare. Again much
depends on whether or not the

ment now?

.

The volume of

with

new

course, be a repetition of the old
pressures
for over-expansion of
facilities and expenditures in the

machinery more complex. What
is the job of a municipal
govern¬

area

philosophy

nicipal ( bonds

future

For when

for

greater

central- city and-the surrounding
declined in population. In 88

If the;

the

accuracy.
added to

population
area
in¬

and economic' more cases; the area outside the
consequences of these desires come! central
city or- cities grew faster
about, the finances of all levels than the central
city. When indi¬
of government will be changed.
I viduals and industries desert the
Directly in the field of munici-i .center of a city it. looks
pretty
pal finance there are several im-i bare.
;Values^ fall,; rents decline,
portant factors including the de-j buildings
deteriorate; and slums
velopment of public "authorities"! develop. The
remedy requires the
and
the more extended use of utmost in
public and private co¬
revenue bonds.
Care must be ex-!
operation in planning and financ¬
ercised to prevent abuses of
either.] ing. At the' moment this seems to

of

tending for a moment to criti¬
cize, it is correct to say it will
have a bearing on municipal ex¬

losses.

which, in my judgment,
about,
are
divided

come

-

.

is significant.

of

793

like private debt. -;
Thomas A. Byrne,, tax commis¬ labeled neither
desirable or un¬
Recurring efforts to tax the in-; sioner, assessed values of prop-,
desirable; those that are undesir¬
come
from
municipal securities erty, from 1930 to 1942, declined
able; and finally those that ap¬
periodically upsets the market 16% or $141,574,110.
Of this loss pear desirable socially or in the
and is a conscious factor in large
58.4% or $82,171,010, was in the interest of better
municipal fi¬
scale
municipal financing.
The downtown area alone. Milwaukee nance. Before
drawing the post¬
desire of some federal agencies or is no worse off
than scores of war
picture,/ may I suggest that
individual; employes
to control other cities.
There are, in the
the
problems of municipal fi¬
municipal borrowing is at least United States, 140 metropolitan
nance, as stated by Dr. C. E. Merannoying. Prevailing low interest areas, each having-one or more
riam,
hinge
quite
generally
rates are giving states and
munici-; cities of 50,000 population or over. around the
simple question, "What
polities the opportunity to refund These cities contain more than
are urban functions
under mod¬
existing debt at lower rates and half the people in
^continental ern conditions?" If we were free
also permit trust, sinking and in¬ United States.
Between 1930 and to answer that
question we could
vestment funds to take a substan¬ 1940 the
population in the central
more

and
tial profit on holdings of munici¬
Thinking cas-j
/{
ually we might have assumed that pal securities.; ^ *• .-,v
The future expenditures of mu¬
there would have been a decrease
during this period. As a matter' nicipalities will be influenced by

•1941

1932

events
may

of

national,!
people to the suburbs., In the
municipal debt is; city; of - Milwaukee, according to

while state and
t

1942V Local :

in

remained

for

>

in

levy

current

of course,

for
from

reduced

was

of

his local taxes.. The federal

Buffalo

.

40

EXCHANGE

PLACE, NEW YORK 5

Philadelphia
London, Eng.
Halifax

'

Toronto

Montreal

Telephone

WHitehall 4-8161

Winnipeg
Vancouver

'

THE COMMERCIAL & FINANCIAL

794

development cuts the amount of
munici-:
palities.' Likewise orderly devel¬

the capital investment by

Municipal Finance In

cuts -operating

opment

The Post-

it would

cause

to

scattered

serve

costs be¬

be necessary,

not

miss developments require unnec¬

(Continued from page 793)

essary capital outlays and exag¬
to point out
gerated operating costs. Why per¬
expenditures may
mit them?
be greatiy increased by the pres¬
V
The war may be the
opportuj
Some cities will be in trouble sure for employment. If the pres¬
nity to make highly ".'desirable
,if there is any substantial decline sure is too great, will the in¬
changes that could ;n6t'vbeyply
,in business.
These cities: have creased cost be financed by bor¬
tained in normal
times/or;;it may
.been refunding instead of paying rowing or from current revenues?
be
used
as
the V excuse ^for
off debt and they may have peak Anyway, you watch it.
After the war I would expect "sloppy" work. All of us with;an
/maturities of bonds coming at un¬
interest
in
municipal ^'finance
fortunate times.
The number of to see a further development of
should use the war as the'; means
[such cities is not great but it in¬ ihe use of revenue bonds. There
of getting better laws, eliminating
cludes some rather large
and may also be a tendency, and I
practices, .cutting., out.
think there should be, to make harmful
.substantial communities.

.after the

may

I

sures.

than they were be¬

war

fore, or they
.unemployed.

be deluged by

am

fellow

trying

that municipal

.

While

municipal bonds payable from all
municipal revenues instead of be¬
that the largest cities— ing payable solely from ad val¬
do not mean to imply

I

jthat they will be in trouble, it
does seem

more
vulnerable than
smaller places in the period

;be

the war, particularly
sition period.
This

taxes.

orem

.maybe our 50 or 75 largest—will

Presently outstanding munici¬
the
after pal debts will be paid iii the post¬

in the tran¬

war

as

era

well

they have been

as

will be due :n the depression era, probably
to the accumulated decay in the better,
because there are less
larger cities and to greater haz¬ bonds outstanding of the types
ards
of
unemployment in the that caused the earlier defaults.
larger cities.

:
'S Unless revenue bonds are abused
Municipal finance in the post¬ there should be no large scale de¬
years will be greatly affect¬ faults
by particular classes of
ed by. the tremendous pressure bonds comparable to special as¬
for employment on public pay¬ sessments in 1930 and the years
rolls, The pressure will be greater following.
at the Federal and State levels
The Federal Government may

war

but

local level.

-plentiful at the

has

Government

Federal

The

be successful

municipal

.hundreds of thousands of civilian
workers "for the duration and six

would

back home?

they willingly go
Thousands of veter¬

can

ans will return to the public posi¬
tions which the£y left to enter the
Will

forces.

armed
who

the

veterans

will

as

an

eral
turn

considered

you

would

and

be

would
First,

policies

finance.

policies

State, and local
that the acts of

fi¬

may

(The

return

There

will

be

govern¬

professors

college
to their

Officials Post-Present

promote and uphold the standards

teaching!)

actual

need, for

large numbers of employes to do
the .public construction and main¬
tenance that has been delayed by
war.
Reconversion subsidies may
help.

And

finally,

the

of industry for

scheme

ployment

may

whole

full

em¬

be developed far

•enough to relieve all these pres¬

to

ment

create

employment

nances

so,

local
their fi¬
policy—if

of work by State and

government.

Perhaps

dictated

such

a

then financing of post-war im¬
deserves considera¬

provements
tion

What

will

administration

continued

be

very

desirable

policy

EDWARD II. WELCH

by the new,officers.
....
k: I ycfcft sincerely appreciate this <l Entering its tenth year the Na¬
opportunity,and
at this '- time tional, Security. Traders Associa¬
tion with the rest of the nation is
pledge my.:whole-hearted support
Sot my ' fellow * officers ' and the facing the vicissitudes of war and is
,

nsta;^": rr;

,

$ v.;-';/:-;:.-; y
F. Tegeler.y

r*

jf Jerome

RUSSELL M. DOTTS

..

Ir it is, indeed,

a privilege as well
pleasure to be able to serve

as,; a
an

.organization which has

itself

over

a

period of

ah "integral part of

proven

united with

their

efforts'to aiding in the

and

time

and in govern-

loan drives

.war

on

us

f

.

Just two ideas

are

termines what
to do

they will be able

will be compelled to

or

in the

enough.
de¬

now

post-war

do

Municipali¬

era.

ties which weaken their financial
structures

must

now

inevitably

spend the post-war period "bury¬
ing dead horses" and trying to get
out of the hole.
A

That is inevitable.-

municipality which makes

conscious
nances

just

as

plans,

drift

but

into

lets

Edward

difficulty,: has

certainly made

ment

its plans

future that is dark.

a

no

its £ fi¬

But

a

v'v

•

Russell

M.

Since

Dotts

municipality that takes construc¬
tive steps now will

tion to

be in

a

posi¬

out whatever plans

carry

era

requires.So I

way

to plan for the

with and
called

do

and

the

things that

constructive

are

sound

financially.

In

At NSTA
Among
Armed

the

Forces

Welch

H.

the war

bring

to

possible.

so,

with our
in the re¬
continu¬

not to pledge

were

the

continuation

of

of

the

duties

myself to

its

>ociation has done much to main¬

tain the high standards

the

my

the

general welfare of the busi¬

the

ness.

We shall continue to realize our

and

responsibilities and to pledge our¬
selves

coming

year.

good.

•

-

"

m

Edward II. Welch

Cotter Heads Division

the deepest sense of

and Mrs. Owens and Major Herb;

to

Of Third War Loan

responsibility that I will endeavor

Blizzard of the Air Force.

.

together for the

work

to

common

whole hearted support during

It is with

Kenny Owens of Camp Grant, 111.

markets

worked consistently for

has

and

of trading

over-the-counter

the

in

splendid

economy

progressiveness, such as we have
experienced r under the capable
leadership
of
William
Perry

Colonel

in 1934

organization

the National Security Traders As-

Brown, to whom I promise to give

visitors-from
Lt.

country when

I would be remiss in my

if I

Maj. Blizzard

were.

do

ally urging the purchase of Gov¬
ernment
securities.

administration

Meeting "

our

to

cent bond drives and in

that way they cannot lose.

Lt. Owens &

serve

upon

whole hearted support

post-war era is for municipalities
to

agencies

to the earliest conclusion

the

Orderly

those of

armed forces and

the home front are devoting

also; Have had ! an opportunity
prove our ability to cooperate

; We

would be to exercise control over

development of land.

ability.

Many of our members are in the

industry;

our

country in aiding

our

to the fullest extent of our

to be

years

now.

Another

Dotts.

M.

policies and work of the previous

to

municipalities do

the best

public

/

Russell

Finally, may I mentionVpostf;
planning for municipal-fi¬

nance.

say

works were just
about neutralized by the curtail¬

through

you

of the NSTA.

(Continued from page 790)

war

will not nulli¬

one

order.'

much- if

do

so.

post-war

the efforts of the Federal Govern¬
ment

wish to do

house vin

can

the

ty the acts of the others. We were
Some Fed¬
not that wise from 1930 on and
properly re¬

and local

State

to

ments.

can

group

of the Federal,
governments, so

entering wedge.

employes

municipal

our

Your

for

for it now?

prepare

important

nancial

for
laws

civiT service

under

found for the

there must be non-conflicting

.public jobs with "veterans' pref¬
erence"

Have

market

municipal

help

persons

press

you

Two

did their work be released?

Other

this

what

be

to

have

markets

New

bonds.

securities.

Will

months."

in its efforts to tax

wood, and generally putting

trust

they have placed in me; and will
do everything within my ability to

,

dead

the

for

members

Greetings From NSTA

Hit-and-

areas.

Thursday, August 26, 1943

CHRONICLE

-

show

my

gratification to my

William

the

E.

Cotter, counsel for

named Director

Corp., has been

Division

it

Third War Loan,

of the

announced

was

W.

and- Industry

Commerce

the

of

Carbon

and

Carbide

Union

Aug. 14 by

on

Chairman

Randolph Burgess,

of the War Finance Committee for

The aim of this

New York State.

Canadians?

division, Mr. Cotter explained, is
"to

bring the rank and file per*in

sonnel

business

and

houses

manufacturing plants face to face
with

Yes—Canadians!

to

need

vital

the

'Back the Attack'

overseas—money

groups

boys

which is merely
and

repaid with interest.

We will seek to
ous

money

our

Government

the

to

loaned

which will be

of
of

impress the vari¬

with the necessity of

investing in war bonds, not only
to

help

effort, but to help

our war

themselves,"

The program
and Industry
War

Loan

Cotter

at

leaders

Incorporated

man

outlined

the

Union

the

and

Wall

Street

New

York

man

Mr.

League

on

of the

Industry Division

1943 Red Cross drive, and

for two years was

14

by

luncheon of business

of the chemical group

Commerce
in

Division of the Third

Mr. Cotter was Chair¬

Aug. 16.

Wood, Gundy & Company

of the Commerce

was

a

at

said.

he

of

the

General Chair¬

Greater

New

York

Fund, in addition to his various
directorships

on

and charitable
war

hospital

agencies.

boards
Another

activity is the Chairmanship

of the Selective Service Board at
New



^

y.

"W- it

Rochelle.

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

79?

NSTA MEN IN THE SERVICE

Baltimore Security Traders
Association

William

William A.

Fred

Brown

Robert P. Chambers
Jack C.

.

.

"

Bernard E. Eberwein

Lloyd R. Freeman
Theodore

Paul W. Glenn

- •

r •

■

Jensen

F.

/

i

Kratzer, David C.
Benjamin C. Mitchell, Jr.
Joseph T. Netter, 2nd

Thomas D.

^

Wallace

J.

Dana

S. Burnham Yates

M.

Kansas-City (Mo.)
Don D.

Randall

Russell G.

K.

Francis

John J.

Doherty
Joseph F. Donadio

Swann

Harry Welsh

Wardley

John

Frank L. Elliott

Wurts

Gordon R. Foote

Howie Young
*

.

'

William

-

Jack

Harry T. Gallaher

Municipal Bond Club
of Memphis

Sparks
Strandberg

Collins

Alexander Forsyth

W. E.

Gray B. Gray
Gray

Jack Wheeler v

John L.

Joe

Claude

Denham

McDonald

Jackson F. King

Wm. B. Pessell

Channing F. Lilly, Jr.

A1

♦.

...

Gustave L.

New Orleans Security
Traders Association

Raymond W. Maxwell

Bond Traders Club of

W. F. Nicholson

Colin A.
Donald

Jack

F. Bosworth

Campbell

A.

F.

Weber

Dallas Bond Club
Thomas

Boston Securities Traders

Beckett

W.

H.

Bernard,

N.

Charles
Frank

Bond Traders Association

C.

Jr.

C. Brittain

Paul J. Goldschmidt

Max

Robert

Hall

E. Parkman Hardcastle

|

Nicholas

Carl

A.

.

.

Russell

Walter
James

Cooney
E.

T.

Ackman

Sughrue

Morrison

Arthur

Sterling

John

Wheeler.

Chester

H.

:

Gareth

Cook

Security Traders Club
of Saint Louis
Thomas Ayers
Victor Battefeld
Charles Baucom

Glass, Jr.
Graham, Jr.
Kellam

Petersen, Jr.

John Bunn

Clyde Clarke
Earl Essert

Edw. E.

Haverstick, Jr.

Edw. J. Holstein

Frank E.

;,;

Association of Philadelphia

;

Wm. Appleton
Ed Atkins

E, Voysey

Len.

Young

Bill

Bailey.

-

,V1

Bond Club, Inc.

E.
*

Jacobs

Oscar W. Rexford

George Ryan
Elliot

Wm.

H.

Stein

H.

Taussig
Theiling
Vincent Zerega
Kenneth

Blizzard

Boston

Bob

n

Security Traders

Brinton

Feree

Brooks

Association of Detroit

•

George Burgess
Carlos

Carl Gearhardt

Nick

Eddie Christian

Walter

Bob

Richard

JHarry. A.f FUder, Jr.

John

and Michigan, Inc.

Cardeza

Richard C. Crisler

'

Donald

Bradley

Redden

Boenning, Jr.

Maulsby Forrest
J. H. Fyfe

,

Holbrook

Batton

J. Smith Ferrebec

J. Dahner

Security Traders
Association of Connecticut

Pelton, Jr.

Tarleton

The Investment Traders

The Cincinnati Stock &




Dolan, Jr.

Egan

Donald

Sam

Goodman

r
,

Wickham Moore

Wifkins

Jack Danner

H.

Bond

Hodge Davidson

Herbert

.

Francisco

E. K. Whitaker

•

.

Whiting

Graham Walker

Traders Association

S.

Charles H.

_

Edward A.

Lloyd E. Legg

Thomas

Skinner, Jr.
J. Perry Smith, Jr.

Czarnecki

Oliver J. Troster
John Voorhis

Bollinger

Pierre Kosterman

R.

Herbert W.

Cooley

i

John Hess

Hen

J. Callan

Richard

C. Kirk

T.

R.

Frank H. Buller
James

Stonebridge
Titus, Jr.
James Torpie
Belmont Towbin

(Ore.)

Harry Wilson

Walter T. Swift

Beall

Miller

T.

N.

S.

Bond Club of Portland

Huguenin ;

R.

Potter

Charles W. Stevens

Kenneth

.

William A.

Paul D. Sheeline

Frank

•

O. R. Stoll

A.

Joseph M. Rinaldi
Joseph F. Robbins
E. J. Ryall
John L. Shea, Jr.
Wm.

?

Charles N.

\

H.

Parmenter

Paul

George Fabrian Brewer
William G. Budinger

Weil, Jr.

San

R.

Richard J. Aldworth

o

F. Houston

Florida Bond Traders Club

Madary

Joseph G. Ballisch
Bax

Sidney A. Siegel

"•

Levine

Robert

Baum

Walter

Fritz Stewart

John J. McAuliffe

$

R.

Halsey Settle

Jar vis

Timm D. Spillane

.v ■;

Joseph Schrank

Lamont

Kenneth H. Thompson

The Bond Traders Club

David Saltzman

Roswell J. Weil

Joe B. Warren

William Lundy

J.

Palmer Smith

Herlihy
Ingalls

G.

Harold

J.

Edwards

Harson

Elmer E. Meyers

B.

Wm. N.

♦
'

*

U.

Samuel

Jardine, Jr.

L.

William Miller

Paul

Peyton A. Randolph

Will Miller

H. Goddard

Frederick

Garrett

of Chicago

McGilverey Powell

Rudolph Schjott

Jack G. Moss

David A. Haley

Foss

Edward

■;

Rakenius J. Possiel
J.

\

O. V. Cecil

Frank

David

James

•

Newman

M. W. Moore

Milton

;

Stanley Pelz
Walter B. Pierce

John G. Preller

A. B.

Cogghill

Russell Dean

Charles B. Boothe

Link

Jr.

Manion

John P. Hall

Clarke

A. Fitzgerald
J. L. R. French

Frank

Leon

W.

Minetree

B.

Baker

Alvin A. Dykes

of Los Angeles

Earl

P.

Morris W. Newman

Gilbert, Jr.
M. A. Hagberg

Edward A. Amazeen
Albert

J.

Carroll

Charles
Jos.

Howard C. Parsons
Howard Patterson

R.

Hopkin
Charles C. King

R.

Wesley Gleason

Landon A. Freear

Association

Howard

Pierce

Montanye

Frederick A. Pakas

Ford Hardy
A. M. Leary,

James S.

Bond Club of Louisville

Richard B.

James F. Musson

F.

Meyer ■;

Rhode

Julien

Milton S. Meyer
C. Benjamin Mitchell

Walter D. Dunbar

<

Don L. Patterson

Ray E. Sargeant
George S. Writer

James J. McLean

Ladd Dinkins

Seattle

Canton O'Donnell

C.

Levy

Frank V. McKenna

Robert L. Mitton

Donald

-

Joseph D. Krasowich

Wolfgang

J. Kenneth Malo

W.

*

.

Charles E. Kimball

Sinclair

Leon Macart

Arthur

Gurley
Harry J. Hardy

Allan Kadell
Jr.

Saunders,

Hugh

Goodman

Irving H. Isaac

Early Mitchell
A.

H.

H. Fraser

Clinton G. Hough

Jack Galbreath

M.

Richard

Willard S. Gourse

Edward Horn

Frank Frederic

Bilheimer, Jr.

King Baker

Hadley

Frankel

James G. Fraser

Russell

Brown

Paul H.

Edward L. Chapman
James D. Cleland

Phillips

Jack

'

Rowley

Henry W. Byrne
Joseph C. Cabbie

y

Smith

Joe

G. Kulleck

Ross

F.

James Brewer, 3rd
George Brooks

Oiler

Henry Patton

Hoyt Purcell

Brown

Donald

McFarland

Ned

,

Walter V. Bradley
Victor J. Brady

.

Lester D. Fedderman

G.

'

Carl Pattison

0

Robert E. Weaver
R.

tion of New York

Massey

Laurence B. Carroll

Barwise

Boettcher, II

Alfred

Belcher

John C. Bragg

Bond Club of Denver
C.

Hardony

Francis J. Patrick
Art

j

Security Traders Associa*

Lowry

Steve

Newt Parks

"
J." Long
Frank W. Morrow

Bond Traders Club of

Ben

Dick

C. Richard D. Palmer

Norville E. White

f
.

Haller

Jim

Baxter

Martin

Thompson, Jr.

Charles

C.

.

Haas

A1 McBride

Howard J. Eble

Gifford H. Teeple f

Norman

F.

"

Wright

Arthur J. Zuber

John Millburn

Association

-

Joseph E. Bainer

Walsh

Albert

J. West

.

J

-

Charlie Halcomb

Cleveland Security Traders

Raymond C. Wauchop
Chapin Wright

William C. Roberts, Jr.
N. Salters

Frank
Carl

George R. Torrey
Richard

Gerstley

Harry Harper V
Gene Hemphill
George Kemon

Nathan M. Silberman

Charles A. O'Connor

Hood

Gordon Reis

Sacco

David G. Mcintosh

John C.

-\

Schollenberger, Jr.

David D. Williams

Freeman Grant

Ohnemus

Arthur

Malcolm G. Keech

C.

Kenneth H. Owens

Herbert J.

Bill

Muller

R.

Paul M.

Gould

Paul

Derrickson

Cornie Dorsey
Fant

Jack

,

Johnson

Donald

John

George T. Grady
Joseph R. Work
George. Eustis
George H. Kountz

1

Hugh Kearns
Clyde H. Keith :
Walter W. Leahy
Ed Leining

Creech, Jr.

Alan F. Daneker

Grigsby

Charles J. Hofer

Henry
William H. Boggs

A.

Joseph F. Hammel

Carter

Daffron

Darby

Harry B.

Buckle

Thomas S. Clayton
H.

S.

Fred

Gseenawalt
O.

Twin City Bond
Traders Club

Guider

William
William

Howard

T.

Arthur H.

Rand, Jr.

E.

Ritt

THE COMMERCIAL & FINANCIAL

796

CHRONICLE

: Thursday, August 26, 1943

>

Period

The Securities Business In The Post-War
By W. W. TOWNSEND
Townsend-Skinner

Company, New York

&

Range"

Author of "Bond Salesmanship" and "Wall Street at Close
Lecturer

on

"Bond Values" in Columbia University

School of Extension

>

racy

the war per¬
This discussion should be prefaced by a disclaimer, quite in the
sists, the securities business will
spirit of the times. It is not a prohpecy. It does not purport to be
continue to be an indispensable
a
post-war "plan."
It is merely the expression of some opinions
luxury to some of those in high
which have crystallized into sincere convictions and which have as
places and an absolutely necessary
their background nearly thirty years of active participation in the
adjunct to the activities of. others,
securities business, with practical and factual research an avocation
notably the Federal Reserve Bank¬
which since has become a mosH>——
—
ing System which, is now the
enjoyable v o c a t i o n—as often that the securities business will be
greatest syndicate manager in all
there.
proves to be the case. It is based
history with every one of the
The reason it will be there will
not on theory but on the observa¬
typical syndicate manager's prob¬
tion
and aphigh-brow reason such

not be any

lems,

praisalof as its valuable contributions to
things
which America's previous prosperity nor
have

already

happened.
To

will

there
a

after

business
t h

w a r.

e

seems

be

It

strange

reason

that, but there

ness

are

plenty

have

W. W.

those

doubts

Townsend

biased

value—and

no

on

very

from

perhaps

credit of such organizations as the
Dealers that

own

may

million
doubt

a

some

tion.

time

for

our

sion.

It will not be

regarding

the

as

occa¬

Currently,

awe-inspir¬

future with

main

the securities business to the win¬

need

the

com¬

for

ment financing

plete confidence, it can be stated

111

because

contribution of

the

we

decided to

have

the

*

-v.

/

'

^

•;

; . v\

.

>

.

y /

is

out

come

crop

:

no

which

small degree to

market break in such securi¬

right after World War I. That
part of the policing job and
it could very well be started now.

of

a

Number Four

Job

is

the

most

interesting job of all. It involves
financing the reconstruction pe¬

of

is

alone

only

can

to

said

sure

that

the

to rise.

Some of this will

be done

by Government, some of
it will be done by the banks, but
a large part of it will be done by

private enterprise, private capital
and the good offices of the securi¬
ties business in

bringing them to¬
gether—very much as in days of
yore and yet, in all
probability
with some "additions, extensions,
betterments, and improvements."

Of that it needs

finish.

be

We

earlier

have

been

(Continued

monetizing

on

page

our

811)

markets

vV

j

.

: r" j

!

v

'y;

v"' V* ^ V

•,

Bottling Co. of St. Louis j

Coca Cola Bottling

holders

Capitalist in the Red Riding Hood

Co. of New York
j
Bottling Co. of Los Angeles

Coca Cola

Bond

"tradeouts"

fable

re¬

Coca Cola Bottling
Coca Cola

be¬
and

riod, the promotional period and
the pioneering period all of which
are as sure to develop as the sun

If
Govern¬ has something to conserve.
persists, which may global strategy and ethnic democ¬

";j

forth
small

ties

difference between them and the

extensive

t r a d i n g

'-V

the

contriubted in

capitalistic

a

make

to

they once believed so imcountry but pilictly in is the difference be¬
tween the upper and lower case
ing as in the mauve decade, as
simply because we have become
ning of the war is one of those
"C" but that actually will be about
careless as in the early 1900s, as
a nation of capitalists.
Wall Street
phenomena which will be ade¬
the only difference. And that job
will be too busy carrying out the
glamorous as in the post-World
of education is Job Number One
quately appreciated by the his¬
orders of these capitalists to have
War I period, as completely cock¬
for the securities business in the
torians, as will the contribution
much time for politics.
It is
eyed as in the late 1920s, as dis¬ of industrial management.
post-war period.
The other day one of the weekly
credited as in the 1930s nor as going on before our eyes but is
Job Number Two is the "polic¬
News letters produced a gem of
getting
almost no
credit—cur¬
chastened as in recent years. But,
ing" job which the business should
rently. It is being properly ap¬ oversimplification by stating that
have started itself but which it
as nearly as anything can be stated
praised, however, and as long as a conservative is somebody who
every

of

without succumbing to temptation

anyone

new

Government

large

capitalists to realize that the only

plishing its nefarious purpose, not
because
the
Republicans r have
"thrown the rascals out," not even

have
convic¬

will

we

and

back

millions

the

tween

this War with many times several
million investors?
It may take

it, too, will be "there"—not because
Wall Street succeeds in accom¬

It

that

"wash"

the

several

Does

investors.

.

Job Number Three is to handle

:7:v':;tv

with

of-it

they have recognized
doing an excel¬
job of house cleaning on their
responsibility.
;f

that fact and are
lent

half million investors.

a

it must , be

National Association of Securities

current

;'Jy';

.

forward

done—and it is to the everlasting

a

it

order—and

matter how the

no

made and how it is be¬

admitted that something had to be

liberal thinker

result

We. came-out

Riding Hood fable concocted by
other "ism" ever started, but

hence
no

in

well

But

was

carried

ing

We went into the last war with

every

carry

is

cation

keep

will; also be a part
American way Of
life. It, too;, may look a little dif¬
ferent from the capitalism which
has been the wolf in every Red

>

and

observer

to

alive—and

Capitalism

No, the

Suppose we take that apart.
could
be the observation
of

ex¬

is

a

start

change. However, if oversimplifi¬

period and all
far

when

was

merely broad-minded,

finger on both

problem and its solution when
coined
the
phrase "lunatic

fringe."

lib¬
eral spender limited himself to his
own
money and the only change
the radical wanted was a political

of the post-war

and will continue to be, an
industry.

Time
was

America.

why

essential

about

doubts

^

so

he

we

liberal

,

the securities busi¬
will persist is because it is

now,

some

it and who
press

of

who

those

all ready.

were

answers

to have to say

ever

and

invented

been

have

ities

s e c u r

industry

middleman

est

a

barely alive—until- the Govern¬ overcomplication—certainly a cap¬
ment no longer needs to have it italist would be somebody who has
around. Well, the answer to that some
capital.
Therein lies the
answer td capitalism in post-war
is even simpler.

to
should
not be destroyed.
All those rea¬
sons
were
well known to those
who really would have liked to
abolish "Wall Street"—and the

begin,

therefore,

done

the securities business

part, is the great¬

of which it is a

have

we

the

touch of cosmic conscious¬

might be able to classify
as somebody who wants
to help the conservative conserve
that "something"- and a radical as
somebody who merely wants it.
ness

started out to talk

we

about the post-war

industry,

the fact that the .finance

But

a

Roosevelt put his

had not given all of us more

than

well be longer than

,

-

v

|

.

Co. of Chicago

Coca Cola Bottling
Great

"A" of Cincinnati ■!
Lakes Coca Cola Bottling Company

Panama Coca Cola

Bottling Company

White Rock Mineral

7

;

-

Springs; Company 1st Pfd.
Springs Company 2nd Pfd.

White Rock Mineral

Welch Grapejuice -y

t"''-y-yfy "'

Mission Dry

v''|;
• y;.:--yy'.C
>yyyyy-v.: Red Rock Bottlers, Anc,yy;;y;:^
,

h01 t,

troster

&

rose

'

ESTABLISHED: 1914.yy

j^

Members New York

74 Trinity Place
^

:

BOwlini Green 9-7400




.

'

'

'

t

'

: "

.

y

;

I;

jyyiy.:.y:';
Association

*; ;

:

New York 6, N.

:
y

•

Telephone

Security Dealers

I

-

^

o

; • y

;

*

!
i

.y

|

,

;

.

v

!

.

Teletype
]\Y 1-373

\

Volume 158

Number 4206

•

THE COMMERCIAL & FINANCIAL CHRONICLE

•

.

797

"Railroad Securities In Post-War Era"
(Continued from first page)
created by the reorgan¬

curities

ization

of

the

various

companies
junior se-

governments, what I have to say
of academic in¬

pose you

will probably be

wanted to buy

dustrial stocks. Which

some

ones

in¬

would

terest.

$4,100,000,000.

However,

the

amount saved by the railroads

were

earning, then I would

with

in

the

public

that

agree

perhaps

Therefore, I am trying to you buy, and why?"
1937 was 17.8%, or $744,000,000. there should be a
danger of hav¬
were
better than the
"So I went back through the The automobile
point out in the beginning that weindustry, in the ing discounted war earnings. But
curities of the unreorganized com- should stop isolating railroads;
•
years 1927 to .1934, and I ignored
meantime, saved 10%, or $280,- I do think the fear the public has
"You would think, the way peo¬ all fixed
panies," for obvious
and easily
charges both in the rail-, 000,000.
of railroads is false, because as I
:
provable reasons.i
' :
"in 1934 with a gross of
;: ■ ple talk, that the railroads have road industry and in these other
$3,200,- will show you in a few minutes, in
;
the only problems after
"However, today thevpublic is
the-warA industries,.; I ask, "How does the 000,000, the railroads saved $666,- my opinion there is no danger of
judging railroad securities—the and the-industrial stocks and utiU railroad industry as a business 000,000, or 20%. The automobile bankruptcy for
any Class I rail¬
good ones, (he so-called border- ities will have none. I don't think risk- compare with the other im
producers, with a gross business road not now in bankruptcy, over
f
line ones, the reorganized ones— that is true.
So I make this sug¬ dustries?" ■ C
'
of
$1,300,000,000, saved $111,000,- the next five, six or seven years.
as war babies, and at is with this
gestion at the beginning. Look at
Take fpr example all the steel
"And if that is so, then the pres¬
000, or 9%.
in
1934
psychology that we now have to railroad securities comparatively manufacturers
these
"The steel industry in 1934 did ent prices of railroads are
overly
compete as dealers and as invest-- with other securities, and when I figure^ are from the SEC compre¬ a gross business of
$1,200,000,000. discounting not war earnings, but
; ors in railroad securities,
/.'f lYC talk, to you I assume you own hensive .reports on listed secur¬ The railroads had a
a future which in
gross business
my opinion they
it has been built up, I think, some kind of corporate securities. ities—saved 1 cent out of each dol¬ of
$3,200,000,000.
The r railroads will not have.
'• <'
.' more from the historical past in
"Another thing is that any pre¬ lar.
1934 was not a good year for saved
"Railroad credit has had a bad
$666,000,000, or 20%, and
'. railroad
securities than from the dictions I make are limited to the railroads; it wasn't the worst
year, the steel industry saved $12,000,- history as I have said.
Up to
fact that the war has naturally in- foreseeable V future.
How1 long but it was hot a good
year, and 000, or 1%.'-V"". ';yv- 1931 railroads, generally speaking,
creased the earnings of railroads!, that, is I don't know,
and it is yet in 1934 the railroads saved 20
"In 1937 the steel
producers did were subject to buying by most
t You
see, railroad securities for the pretty hard to say definitely. But cents out of each dollar.
The au¬ a gross business of
$2,800,000,000 of your fiduciaries, banks and
last thirteen years, let's say the we have found in the last ten tomobile -j manufacturers
in
that against the railroads'
$4,100,000,- insurance
companies.
For
75
i
last ten years prior to 1941, were years that there is no such thing, year saved .7
000.
In
cents; the motion
that
year
they saved years that was the only market
subject to the fear of bankruptcy. with the exception of government picture industry saved about 7 $229,000,000, or
8%, and the rail¬ for railroad securities, because the
That thing was not the cause, but bonds, as a permanent investment. cents; the sugar
refining industry roads $745,000,000, or 17.8%.
investment houses could not be
that was the thing that gave rail- So I am not going to predict what saved about 6
"I repeat, then, that in
cents; mail order
my opin¬ bothered calling up individuals to
road securities a bad name.
And is going to happen to railroads houses saved 5
cents; agricultural ion the railroads, by comparison
buy railroad bonds when they
that reputation still continues.twenty years from now, because machinery,: 10 cents; department with other
■
corporate
securities, knew that the institutions would
"They- say - railroad/ securities to me and to -you I think it is stores, 3 cents.-;The only industry are good business risks
provided buy them.
•
;
"
somewhat academic,
are war babies, yet in order to be
But 15 am in that group of about
forty major the financial risk has been re¬
"Then, all of a sudden, over
/ war
babies they must have dis¬ going Jo try to predict the future industries which
competed with moved.
;
••'
'v:
the last ten years, that only
buyer
counted the effects of war.
A over the foreseeable outlook for
the railroads in the amount saved
"Subsequently I tried to de¬ was prohibited from
buying and
;
"I claim they have not, for rea- railroads.
t- was the chemical industry,
velop the fact that this peculiar he became a seller.
As a result
i sons that I shall develop in a few
"Another thing; I find through¬
"That percentage follows right fear of
bankruptcy which was in you had prices, and still have
; minutes. But in any event, I think
out the country that almost all of along in
1935, 1936 and 1937.
So the railroads and not in the steel
prices, at extremely low levels for
the primary reason for that so- those interested in rails take a I repeat what I have said
many
producers, the automobile pro¬ the very simple reason that
you
called reputation has been the his¬ negative position.
We are always times before, that as a business
ducers, and so forth, is the psy¬ have more sellers than
you have
torical record of ten years, from trying to defend the rails.
I have risk, even in the worst years of
chology that makes them now war buyers.
■■
;:;v ■
V'".
1930 to 1939, when 35 Class I rail- tried in various ways to change the
depression, there was nothing babies.
To use the stock of a
that to a more aggressive
broads entered bankruptcy.
"However, that fact alone creates
spirit, wrong with the railroads any company which was not
■

•

"

•

'

■

—

"

•

•

•

•

■

.

•

■

•

•

,

.

and I hope this afternoon to add a
that I am talking little fuel to the story and perhaps
to you about railroad securities, cut down this terrific sales resis¬
but I am also assuming that you tance against rails generally.
and your customers are going to
"Another fundamental to start
own some corporate securities. By
off with is that if you people real¬

"Another thing I want to say

:

•

v

at

that

I

mean

utilities

or

industrial

stocks

or

or

'

utilities.
"If

you

vested

in

;

.

■

•

have clients 100%
cash

or

municipals




than

industries.

licked

was

them,

tremendous

The thing

of

course,

amount

:

with

wrong

charges.

was

of

some

fixed

fear that after the

of those statis¬

in¬
or

ize that if you compare the rail¬
roads with your various other in¬

producers in 1937 did

way:

ness

you

railroads

bankruptcy

tics which I just gave you a little
more

me put it this
Last week I said, "Suppose
owned industrial stocks; sup¬

BOND

alive,
of

and

all

about
did

your

a gross

a

you

have

on

The
gross business of

a

your

yV-TfVV

"Now, if Southern Pacific

busi¬

STOCK

war

possibility

hands.

automobile

$2,700,000,000.

position

were

selling at ten times earnings, at
$250 a share, if the directors were
paying $13 out of the $26 that they

bonds

income

"So

you

BROKERS

Publishers of

to

Railroad Reorganization Securities"

Special Analytical Service for Out-of-Town
Dealers in Railroad Securities

PFLUGFELDER, BAMPTON & RUST
New York Stock Exchange
Members

61 BROADWAY

Telephone DIgby 4-4933

/

^ :

'• ::

:

Bell

recreate

(Continued

Railroad Securities and Reorganization Securities

"Guide

of the

reorganized

companies.

Specializing in

'

.

those

did in the Wabash and the
Erie,
these old-time buyers once
again
come back in the market
and buy
the first mortgage bonds and the

'

t

where

can

v

"To make

that

who
ized, like Southern Pacific, how
can do
something about it should,
it sell a $25
share, earn $25, because as
the situation
and pay only
changes
$2, and be called a from
bankruptcy to solvency, as it
war baby?
There must be some

the

that
the

dustries—well, let

bonds

industrial

reorgan¬

more

other

the beginning is

NEW YORK 6, N. Y.

System Teletype NY 1-310

on

the
page

situation

798)

& FINANCIAL CHRONICLE

:THE COMMERCIAL

798

>

Thursday, August 26, 1943

.

a

Mi

Railroad Securities In Post-War Era

they are now selling in
The low in the Dowsellers, and during that spread Jones averages on rails in 1932
was 36.
In 1932 the railroads did
between securities in bankruptcy
and securities reorganized into a not earn their fixed charges, and
(Continued from page 797) /1(,

where you have more buyers than

m

now,

the low 30's.

at

sold,

Dow-Jones

the

1938

In

with

34,

bonds

averages

Island,

Rock

in¬

for

.

on

the
possibility of bankruptcy, and in

gross.

"Take

concerned, selling

are

9% basis, they are discounting

$3,000,000,000

opinion there is none.

my.

•

.

new, company on.a

solvent basis,

have that tremendous appre¬
ciation in price which I have re¬
ferred to many times as mechan¬

you

ical
.

profit.
'
building up this story of
what is going to happen in the
.

"On

'

going to

post-war era, first I am

obviously
ing

as a

stock.

on

over

40% for the Class I railroads

as

whole.

a

/

.

,,

"Now; are the Dow-Jones stock

ranged

and 1919
and 93 high.
1913

years
low

"Second
Jones

Dowselling

The high in 1937 was

Are they

98.

now

are

averages,

around 60.

discounting the war

earnings, selling 30 points below,
bonds selling at 60, yielding

1929

the high in

the Dow109.
In

Jones

in

they did $8,000,000,000
business.
Today the stock
market averages for rails are sel-

a

great many other industries.

averages

in some cases were

organize buses and

not allowed to

the

trucks,, and also unfortunately, for
the first fifteen years of their ex¬

(before the end of the year)
$88,000,000. Last year they earned istence these competitive forces
j
$36,000,000, this - year probably were virtually unregulated. ; '•
$40,000,000.
r■ V: 4' "As a result there came :<■' this
terrific deterioration in the aver¬
"Are they discounting war earnr
ings? No! Let's say you pay $100,- age1'rate that ythe> railroads re*
It
000,000 for Rock Island.:.*. If you ceived for * carrying traffic.
to

.

about, of course, because the
stuff,
the ore and the coal and the steel,

$5,000,000 or 5% on your in¬
capital you would be doing
better than the railroad industry

came

vested

railroads retained the heavy

was

year

gross

and

long time, with the

has done in a

tion of
Island

that you ever

heard of, not only in

of bankruptcy, and you can
buy an income bond to yield 8 or

y

ger

or a

fluctuate. necessarily the rate decline.

Telephone doesn't stay

tremendous

"The

difference in

cline

western

this

as

had,

much time as I am

and

yi'

two

"Take
and
ness

going to take on this particular
subject, but I repeat again: I think
current prices are discounting the
most dismal future the railroads
ever

as

the

in

dustry.

pictures.

"This is

for
railroad in¬

the primary reason

was

change

year

periods,

and passenger-

ured in ton-miles

Yet
the gross in 1928 was $6,000,000,solvent 000, and for the 12 months end-

far as

miles, around $528,000,000,000.

.

;

•'

.

V

V.

'

"

•'".*<

.

•' '

V.

1941,

the

for

12

months

ending with September, 1941, the
net railway operating income was

Management
ab¬
$100,000,000.
"How did they do it?
In hun¬

$990,000,000.

sorbed all but

"They

expenses

of 1,660,000 men; in 1941, for
period, they em¬

age

that comparable

ployed 1,140,000 men.
In other
words, they did the same busi¬
ness with the use of 520,000
less
men.

.•

"I

know

going to ask:
'How about the compensation?'
The
compensation in 1928 was

half
^

are

you

billion dollars.

a

"When

about
not only

been

true

ones

but

they

come

the

out and say railroads
handi¬

additional

the

under

are

these figures
(and it has
of the good
questionable ones)
see

you

talk

analysts

of not being able to control
wages like industry generally.
cap

"Don't you
in

are

believe it! Railroads
position, in my

better

a

and

I

it

prove '

can

in

v

135 BROADWAY,

cline.

For

railroads?

the

all

NEWY0RK TEL.REctor 2-1737

therefore,

managements,

to absorb this rate de¬
Well, why didn't it saVe

helped

reasons

that I will tell you about.

[OldestHouse in America Specializing inft

ODD LOT MUNICIPAL BONDSJ

"In this country there are about
BONDS
IMODDLOTS

Class

137

Cable Address "LEBENBOND"

In III

Corporation

but if you

I railroads,

heard

have

LtfelHTHALtCO-

'

Member Federal Deposit Insurance

in

and

"The

FACILITIES

HANOVER SQUARE, NEW YORK 5, N. Y.
"

railway/operating in¬

;; "The net

come^ in 1928 was $1,100,000,000

forum later, if
you want to hear it, than indus¬
try generally.
|

Security Clearance Department

.

the

stand; their gross was.off a billion
dollars for;' those two comparable
periods.
..."4 V■ y 1' \

detail at the open

LEBENTHALfc' CO.

'•

lose

opinion,

Brokers and Dealers

■

1928

1941, when the railroad busi¬
was about the same, meas¬

security transactions for out-of-town

jor details to

■{[.)

proportions.' V \

despite the fact that they
a..billion dollars doing
same:' business, : you
under¬

did

price: It ranges 40

give ypu the same com¬
parisons in the Frisco and New
Haven and St. Paul and North¬

.

Write

tremendous

y: "But

ori50 railroading generally overlooked, $2,800,000,000; in 1941. for that pe¬
riod, it was $2,300,000,000, a de¬
points in the course of a year for I1 think, is brought out when I
crease
in total compensation of
a million different reasons.
;
attempt to prove that the rate de¬
one

"I could

CLEARANCE

charges, but they would
have hadan operating deficit of

$413,000,000 less.
"In 1928 they employed an aver¬

now

sion costs, reduced the railroads
a
$6,000,000,000
average
bond of a solvent com¬ from
pany which was not reorganized business in the '20s to a $4,000,on an 8 or 9% basis, you have vir¬
000,000 average business in the
tually no risk if there is no dan¬ '30s.
But, strangely enough, the
ger of bankruptcy.
:
; •; • thing that ruined railroad credit
was- the bankruptcies.
It was not
"Sure, they will fluctuate; but

at

prepared to reduce handling costs of

.

their fixed

have the nor¬

mal forms of

will everything else

investment, all through. They
not have covered

competition. ; ;
".This rate decline, plus depres¬

petition:- We

American

dollars

reduced transportation
alone by $413,000,000.
Understand, now, they are doing
the same business, and yet the cost
of
carrying that business
was

recognized that

they should be regulated, but it
was not really until 1939 that we
had any real regulation of com¬

If there is no dan¬

so

OF NEW YORK

great deal of the

ICC and Congress

defaulted bonds but in your bor¬
derline bonds.

doing close to $8,000,000,000 gross.

GRACE NATIONAL BANK

a

billion

a

,

that these prices are
not
discounting
war
earnings.
They are discountingthe / most
dismal future for the railroads

ing at 33 or 34 while the roads are

COMPLETE

down

of
ways,
but, 1 generally
pick and choose and make their dreds
own rates, and so forth.
V speaking, of course, by these'in¬
"It was not until 1935 that the creased efficiencies.

$6,000,000 out of the Rock
management, v * f - r!' •v - vI say

"So

they lost

high-class merchandise to trucks
who in their early existence could

exception of these war years. Yet
that would only mean the produc¬

question of what price

is

Unfortunately

forth.

the railroads

And yet the cash which
trustee has is or will be equal

these railroad securities are

"On the
range

that

rail

so

000,000.

9%,

9 and 10%.

"In

lines, and

made

bonds,

grade

74

road

problem after the war is
relatively no greater, and I think
actually less, than that involved

went

net

they would have been actually, as
not only would

amortization of equipment or

de¬

through more ef¬
ficient, methods, obviously if their
gross

an

-

said

in

tomobiles and pipelines and barge

that the Increase in 8, 9 and 10%? What are they dis¬
efficiency of railroading today as counting? They are discounting a
compared with what it was 20 possibility of bankruptcy. There is
years ago has been tremendous. no question about it.
j
Perhaps this competition and the
"And I claim there is no danger
poor period Of the railroads finan¬ of bankruptcy, because they let
cially during the years from 1930 the income bonds of the reorgan¬
to 1940 was a blessing in disguise ized
companies, like Erie incomes,
in
introducing
efficiency ..into where there is definitely no dan¬
railroading never before known.
ger of bankruptcy, sell to yield 8,
last, but not least, as I
in the beginning, the rail¬

not able to absorb that

cline

form of trucks and buses and au¬

charges

5%

"And

were,

before Federal income taxes over ^account, anyhow.
"Rock Island securities,; a par
three times, and they earned, on
value of $321,000,000 are selling in
.the average, about $10 per share
the open market today for $88,of stock.
/■
;'<

their fixed

"Fourth,

.

course,

Competition came in in the

earned

.

will level out and stop;
third, that the reorganization of
35 Class I carriers, plus the debt
reduction program of the solvent
carriers, will remove the financial
risk by reducing fixed
charges

are' ex¬

cash

roads

point out to you a few reflections prices discounting .war earnings?
-and try to indicate that current In my opinion, no.
In the last
r.-prices, first are not too high; sec¬ war, with the Government run¬
ond, that" by- the regulation, of ning the railroads;, with all kinds
competition- the deterioriation in of rate " and wage uncertainties,
the rate* structure, which started the Dow-Jones averages in the
years ago,

^^Tt is true, of

that the
jrailroad position has Changed from
group earned noth¬ cluding equipment, because equip¬
one of monoply to one of competi¬
ments are usually paid off through
Last year the rail¬
tion.'
these figures

All

stance:

ing September, in 1941, it was
$5,000,000,000.
.v
"Now, if railroad managements

before

talk

me

you

that 10 rail¬
roads do about 50% of the busi¬
ness
and 56 railroads do about
heard

have

me

say

So, in dis¬

of the business.

95%

cussing the cure of the financial
disease

the

of

railroads,

these 56 railroads.
"Of

these

>

•

•

;l

I"

'
-

.

use
.

>

56

railroads, 18 of
them are doing about 38% of the
business.
They retain their credit.
They came through the depres¬

FREEMAN & COMPANY

It is true in some cases that

sion.

their prices went down, but

RAILRQADS

61 BROADWAY, NEW YORK 6, N. Y.

they
through the depression and

came

retained their credit..

"Railroads such
&

Norfolk

Railroad

:

•

■

•

t

"

'•

•N

-

Atchison,
Reading,

of

Twelve

them

doing about 27% of the
illus¬
trated by the New York Central,
business became borderline,,

PROSPECTS

ON POSUWAR
■i

the

Union Pacific and others.

SOME THOUGHTS

Mortgage and Terminal Bonds

Equipment Trust Securities

as

Western,

'.

*

"*

''

.11 '

'.
;

•

'*

♦

•

*

> '

,

f

-

•

.*'■

:-'a

»

Illinois

f

'

.

-4

■

Class

Underlying Public Utility Bonds

Central, Northern Pacific,
Pacific.
Twenty-six

Southern

•

Circular on request

•

,

railroads

I

entered

bank¬

ruptcy.- They were all subject to
this

tremendous

rate

deteriora¬

tion, and they were also subject
to
increased efficiency in man¬
NEW YORK TELEPHONE

PHILADELPHIA TELEPHONE
'

WHitehall 4-3344

'

Mclaughlin, baird & reuss

Rfttenhouse 6161

Members New York'

Stock Exchange

agement.
18

ONE




TEL.

WALL STREET
HANOVER 2-1355

<

-

NEW YORK 5
TELETYPE NY 1-1310

,,,

,

•;<

:

retain their

become

JBell System Teletype—NY 1-2288-89

r

"."All right. Why, then, did these

go

credit, 12 of them
borderline, and 26 of them

bankrupt?

ment

was

cline in the
was

the

saved

•

" Because

able to
rate

absorb

manage¬

the de¬

structure.

of

That

that
the.18,- but there must have
reason,

course,

'Volume 158
been

THE

Number 4206

stocks?

These

sound

ratio—about

and 45%

stocks;

had

74%

debt and the bal¬

and

the

debt and
1;:' >''•

stocks.

bankrupts

the
-

■

balance

';.r

T S As

•

"So there, right off the bat, was
feature
of these
railroads

one

which were bankrupt or border¬
-line, which the good railroads did
not have—an unbalanced and un¬

sound financial structure.

.

"Next, how about their dividend
policy when they were in a pros¬
time? Take the period from

perous

1924 to 1929.

The

good railroads,
they took in,
paid 35 cents out in fixed charges,
of. each

cents

dollar

in

dividends, and saved

the

rest.

pay

out 45 cents of each dollar for

The

With

call

bonds
:. V:

borderlines

had to

/

,;

Rates

Special Reference To The Treasury's Borrowing Policy

:>

(Continued from first page)
which few would have anticipated.
;

had about 67%
ance

we

55%

The borderlines

stocks.

The Future Of Inter est

retained

railroads

their credit and had what

45

799

other

reasons,
and there
'y•'V'•;
;>V
"So, examine the financial struc¬
ture:
How many
bonds versus

out

CHRONICLE

V

were.

a

COMMERCIAL & FINANCIAL

.

•

of

savers.

They have talked about the gold reserves of
England, the inflow and outflow of gold, the
I believe that sooner or later rates of interest must rise.
prospects of changes in the discount rate of the Bank of
If the rapidly moving expansion of bank credit
precipitates England, or the Bank of
England's operations in "selling
acute "inflationary": phenomena, rates of interest will rise
to the market."
The money; market writers in New York
radically. If to forestall this, policy is changed and the Fed¬ studied the weekly figures of the New York
Clearing House,
eral Reserve authorities tighten the money markets, and the the relation
of reserves to
deposits, the relation of loans to
Treasury pays rates of interest on its borrowing which will deposits, the prospects of the autumn demands for
money
really attract investors' money in adequate amount,; the in¬ for crop moving, the inflow and outflow of
gold, and, after
crease will be substantial but more moderate.
The question the
coming of the Federal Reserve system, they discussed
of the amount in the increase of interest rates is
primarily; the discount and the open-market policy of the Federal
the question as to whether the Federal Reserve authorities Reserve
banks.
The money-market students. have had no
and the Treasury pull up in time, or whether
they pursue doubt that the abundance or scarcity of bank reserves in
existing policies until their hands are forced and control of relation to deposits would affect not merely the short-term
the situation becomes difficult.
v
rates of interest but also the
j
:•
j
yield on long-term bonds.
<

the Bank of

(

.

,

,

fixed

There is

fundamental theoretical issue here of first

a

charges, yet they still paid

importance. I shall make the' discussion as non-technical as
retained 26 cents. The ones that possible.
The question is asj to the; relation between the
are now
bankrupt had to pay out capital market and the money market, and the extent to
53% of every cent they took in which the
multiplication of dollars; in bank deposits and
for fixed charges, yet on top of
that paid 35 cents in dividends money in circulation can serye as a substitute for the real
and saved 10 cents for surplus.
savings which economists in the past have always looked
"So you have two indictments
upon as the primary source of capital, and as the governing
of certain railroads, number one,
influence on the supply side in the determination of the rate
a top-heavy bond structure; num¬
of interest.
•
ber two, a poor financial structure.
30

cents

in

out

dividends,

and

,

,

.

The great masters

There have been two main

reasons

why the theoretical

economists in the

past have neglected the money factor and
have concentrated their study on the
psychological attitudes
of the

saver

and

on

the

use

of

capital in industrial

The first is that down to 1914

we

had had

a

processes.
minimum of

market manipulation by central banks and govern¬
deliberately designed to control rates of interest.
London had some of it.
The Bank of
England would occa¬

money
ments

sionally raise its rate for the purpose of stopping an unsound
speculative movement, and it would occasionally sell Con¬

in the field of the theory of interest, sols or Indian Council bills for the
purpose of taking up
have concerned the
floating supply of money., These operations were
a result,
therefore, of this themselves
very little with money market phenomena.
In¬ microscopic indeed in
deterioration in the rate structure,
comparison with open-market opera¬
terest is a phenomenon
running far beyond loan transac¬ tions in the period
despite the efficiency of manage¬
following 1921. I have found one case
tions. It is implicit in the whole fabric of economic values.
ment, those railroads with poor
where the sale oM,100,000 pounds of Indian Council bills
financial
structures
went
into If the rate of interest is
high, a piece "of land may sell for was sufficient to "make Bank Rate effective."
Operations
bankruptcy, and those with finan¬ ten times its annual net
product. If the rate of interest is of £5,000,000 were
cial structures not quite so bad
large operations in pre-war London.
cut in half, the same
piece of land may sell for twenty times The volume of excess
became borderline.
' ;
money rarely grew so large in pre¬
1
"What is happening to correct its annual net product.
The rate of interest binds together war
days as to attract the attention of academic economists
it? A The fixed charges on these present and future.
It governs the allocation of capital or the
general public.
18
■■-/A : A
good
railroads
amount
to
among different productive activities.
If capital. is very
around $188,000,000 at the peak.
There was a period from 1897 to 1903 when the
great
abundant and interest rates are low, activities
may be un¬ influx of
Prior to" 1942 this had gradually
gold which came to the United States clearly
been
reduced
to
around $166,- dertaken which could not; be undertaken if capital were
pulled down the long-time rates of interest. The average
000,000. The borderlines, too, had scarcer and interest rates higher. The interest
rate, like all
yield of 10 railroad bonds dropped from 4.38% in 1897 to
reduced
from
fixed
charges of other prices, has work to do in
guiding and directing the 3.77% in 1902. But the downward movement in
$177,000,000 to $157,000,000, the utilization
yield was
of our economic
resources, and in holding our
12 borderlines I am referring to.
gradual and, though it was not unnoticed by economists,
So you had a slight debt reduc¬ economic life in equilibrium.
it made no change in the
prevailing theories of interest, f
tion even prior to the large debt
The explanation of the rate of interest in the
history of
The second reason
reduction in 1942.
;y ' ■.
economic thought has
why economists disregarded the
developed interesting rival or com¬
"In 1942 the solvent railroads
plementary theories which we may not do more than men¬ money factor was the widespread prevalence of the quan¬
bought in the open market, in¬
tity Theory of money.
tion here. ' For John "Bates Clark the rate of
For this theory the quantity of
interest is
cluding equipments, about half a
"Those

they

are

things can be cured, and
being cured.

as

"As

Boehm-Bawerk and John Bates Clark,

.

.

.

.

'

governed by the marginal product of capital.. The greater
capital in relation to the supply of labor, the
duce it by another billion dollars.
lower the margin will
go and the lower the rate of interest
"What does all this mean?
It

(Continued

billion dollars worth of their

and this

debt,
I think they will re¬

year

on

page

802)

the volume of

'

means

that by the end

of 1944 the
have

will

railroads

■solvent

duced their fixed charges

re¬

almost

sA
■
' 1 ;
happened
to the
bankrupt carriers? These 26 bank¬
rupt carriers had fixed charges
amounting to $222,000,000. That
has now been reduced,
or will

30%.

■

"What

has

at the termi^
reorganizations, to
reduction of 60%

have been reduced
nation of these

$88,000,000—a

the average.

on

:;

don't

"I

these

whether

care

plans are changed by the various
groups or not—I am speaking now
of fixed charges.
I don't think
any
plan will change the new
fixed, charges,
either
decrease
them
of

has

In none

increase them.

or

the

various

there

changes

ever

been

a

proposed
proposal

increase fixed

charges, so this
reduction will stand regardless of
to

any

the old aggregates of
these 56 railroads, doing practi¬
cally all the business, the old ag¬
gregate fixed charges were $587,000,000 through these various fea¬
tures:
This will be reduced, in
opinion, by the

end of 1944

by 45%, which means that even in
the worst years, if we ever go
back to them, if we ever go back

$3,000,000,000 gross (which I
think we will) it will still
cover
the
fixed
charges twice,

to

a

For Boehm-Bawerk the factor of time

preference

is of

primary importance. < Interest must be paid to induce
men to forego present
consumption. Unless the utilization
of existing income in
producing bridges and machinery
creates

than

a

greater future product of hats and shoes and food

could be

had

by using the present income for con¬
sumption today, men will not wait,. The future is far off
and looks small in relation to the

There is

-

an

Specialists in Railroad Securities
•

Guaranteed Railroad Stocks

•

Lease Line Railroad Securities

•

Underlying Mtge. Railroad Bonds

•

Minority Railway Stocks

®

Reorganization Railway Bonds

present.*

immense literature

on the
theory of inter¬
running in terms like these, with almost nothing said
about the quantity of
money as a factor in determining the

est

rate of interest.

Side by side, however, with the development of the
theory of the rate of interest, we have had the develop¬
ment of a very useful and
very able body of money market
discussion.
The money market writers in London and New
York, trying to forecast rates of interest, including the
yield of long-term bonds, have had very little to say about
the marginal productivity of
capital or the time preference

GUARANTEED

RAILROAD

STOCKS-BONDS

gp-gj

55

Broadway

New York

; ; ;

pure

-

possible changes in plans.

"Now,

my

will be.

*The
circular

computed
believe
it

time

preference

reasoning,
as

a

theorists

the

since

percentage

that this criticism

is

of

itself

the

regard

capital

very

in

the

productivity

value

part

on

which

determined

by

theorists
the

the

as

marginal
rate

of

involved-

in

product -is
interest.. I

VILAS

&HICKEY

Members New York Stock Exchange

productivity theorists is correct, but I do not discuss

here.

SEABOARD AIR LINE RAILWAY

BOND BROKERS

Specializing in the underlying, divisional
-

and leased line issues

don't

which

is

good

as

as

the

utility

industry did or is doing today.
"Do

means?

realize

you

The

what

railroads

are

about

that
now

$10,000,000,000,
excluding equipments; it means a
reduction of close to $4,500,000,-

bonded

for

(Continued

on

page

800)




Van Tuyl & Abbe
72

WALL

49 WALL STREET,
TELEPHONE:

NEW YORK 5, N. Y.

HANOVER

STREET

Teletype: NY 1-911
NEW YORK

N. Y.

5

2-7900

800

-

FINANCIAL CHRONICLE

THE COMMERCIAL &

,,.

-

Thursday, August 26, 1943

Association

National Security Traders
•

OFFICERS 1942-1943

1st

Secretary

C.

2nd

President

Vice-President

John

Edward H. Welch

.

Wm. Perry

Hecht

Brown

Treasurer

Vice-President

Benj. H. Van Keegan

Earl M. Scanlan

"Railroad Securities In Posi-War Era"
(Continued from page 799)
| want to
000—a tremendous amount. In my |I safety.

is

opinion,

it

financial

cure for the
How much fur¬

the

risks.

want to
think than the next two, three,
four or five years?
ther

ahead does anyone

have

"I
that

to

tried

prove

so

far

prices were not too high. As
of fact, the prices are

matter

a

discounting the worst periods of
railroad history by their prices,
and they are

also discounting pos¬
I think I can

sible bankruptcy.

prove that there is no
and that the public is

possibility

wrong in
sell to yield
«, 9 and 10%, because those dire
things are not possible.
letting railroad bonds

"I have also

tried to show you

that the efficiency
has

of management

the

roads

up,

to

has

a

cured by open-

been

market purchases
ization.

and by reorgan¬

•'V*V;f/;;

/V,

■

"So much for

railroad credit.

of
the more specific thoughts: As I
said before, prices are controlled
"Now, getting down to some

by buyers and sellers. From now
on this will be mostly on. railroad

reorganizations, wjiich is my field,
and purposely so, because if all
the things I have just said are so
—and I think they are—I would
still

prefer to buy the

ized company or
is being
is

"There

is

greater leverage be¬

despite

cause,

the

fact

that the

reorgan¬

the company that

reorganized, because there

greater

leverage, and




will

beginning—selling by those who
must think dire things face the
rails

after

the

they

bring

until

up,

the

but I prefer to leave
forum. I say,

open

sell

to

solvent

sell at tremen¬

so,

the

reorganized
companies.

bonds of these

new

bonds

1

"So I wrote to the National In¬

dustrial

Conference

also the United

and

Board

States Bureau of

Labor

Statistics, and I asked, 'Do
"These railroad reorganizations
ycu have any statistics showing
which have delayed their consum¬
the productivity oi labor?'
And
mation because of various litiga¬
they said, 'Yes.'
tions, and so on, have had the
"Now I have it for railroads. I
effect of dampening the market
have the ton miles per man hour,
over the last two or three months,
the index from 1929 to 1942. Let's
because

we

have had what I call

practically no good news. Litiga¬
tion has dragged out several of
the

skip 1942 and take 1941:

.

j

•

"Using 100 as the railroad index
and the manufacturing index, the

plans,
either
rightly
or
productivity of labor on the rail¬
wrongly so, and we haven't had
roads in 1941 was.154, an increase
a piece of good news, let's call it,
of
54 %;
manufacturing showed
on
railroad reorganization, in a
•
long time. And, of course, they 142, or an increase of 42%.
have

been

if youl selling,

as

are

air

,

ment. They claim they will have
glider trains, but we are not going
to have any ships like that, and

that
out

120
Teletype: NY 1-1693

value, and

out.

.

we
\

leaving you high and dry. I be¬
lieve, rightly or wrongly, in stick¬
ing my neck out and recommend¬
ing something, as I did last year.
.

"I have been

I

up,

have

seen
are
three, whereas
if you live on the Pennsyl¬
vania, you will see a lone loco¬
motive taking 130 cars without
any
difficulty.
In other words,

now,

there

is

no

limit

to

the

capacity

of the American railroads.

"What should be the

that?
the

they
a

The

war

can

answer

has

answer

because I will be wrong some
day. .My answer to that is that
when I reach that point I will be

the

'

first

to

tell

an

audience like

this,

or any other audience, be¬
cause I try to base my recommen¬
on

possible.

should be—and

reduce rates and make

reduce

-

dations

to

demonstrated—that

tremendous

and

.

as

few assumptions as

v\'..

"Public psychology may
some people say
I say if it does- (and I

me;

defeat

it will, but
don't admit

of money, it will), it will only do it tempo¬
again, because rarily. If railroad securities de¬

amount

rates

they

are the volume business of cline in anything like the manner
transportation in the United States. after we have licked Germany and

Co.
Chicago Board of Trade

Cocoa Exchange, Inc.

Commodity Exchange, Inc.

Chicago Mercantile Exchange

BROADWAY, NEW YORK 5
Telephone: REctor 2-2300

that

to talk about railroads and end up

New

N. Y. Coffee & Sugar Exchange, Inc.
N. Y.
New York Produce Exchange

found

the maximum trailers and trucks

&

York Stock Exchange
N. Y. Cotton Exchange

also

.-"Now, getting down to some¬
thing more specific, let us say, as
I told you last year, I don't like

MEMBERS

Exchange

have

would be of much

UNLISTED TRADING DEPARTMENT

York Curb

we

what

have found

BANK and INSURANCE STOCKS

,

that

people prefer to
term a 'stand-by plant' in 1938
became our greatest national asset
during the war. It is the greatest
single asset this country has, be¬
cause
without
it
nothing
else

INDUSTRIAL, RAILROAD, PUBLIC UTILITY, AND FOREIGN SECURITIES

Wertheim

is

that

told, perhaps fa¬
cetiously, that it is time to shut

"I have a lot of statistics on air
subject to this peace
I have outlined in the freight, which I am sure somebody

New

recognized by all, they

were

the cheapest way to ship, be¬

cause

the war,

come

senior bonds and the

If it

they have the volume and
freight, this and that after the capacity,
"Perhaps - we will learn from
that we have learned one
thing about railroading, and I this war a great many things about
think we only learn it during a railroading that we never knew
war:
There is virtually no limit before. Perhaps the shippers will
also learn that.
The corollary to
to the capacity of the American

generally speaking, that in answer

war.

when

"And

it

yielding 9 and 10%, or in¬
bonds yielding the same,
dous
discounts of 40 and 50%,
the others sell at even lower in they must think there is danger
of
bankruptcy, : because - they
proportion to what they are en¬
fluctuate.: .Sure,
income bonds
titled to. Then, too, as I said be¬
may go up or down a few points.
railroads, virtually no limit to the
fore, you have a lot more sellers
Everything will fluctuate. But.if business they can handle, which I
of a bankrupt road, that is, de¬
would say will be demonstrated
faulted bonds, than you have buy¬ you have no danger of bankruptcy
it is ridiculous to thipk that rail¬ out in the western territory over
ers, and that changes as the road
road securities are high, yielding the next few months. They think
emerges from reorganization.
they are doing; business on the
anywhere from 8 to 10%.
"I think the most encouraging
"Referring again for a moment western railroads now—but wait
thing (and this is digressing a bit) to
labor, because I just happened until twelve months from now!
over the last two months has been
to run across it in these notes, I And they can do it, because they
what I consider weak: selling and
get a little tired of listening to all have been doing it all over the
good buying.
We have probably
these
analyses
of
industrials, country.
had more institutional buying of
where they generalize and say in¬
"Now, when you build a ship
railroad bonds in the '/last two
dustrial stocks do not have the or a truck or a
cargo plane, the
months than we have had in the
wage problem in anywhere near minute you pay for it and use
last year, possibly in the last two
the same proportion as railroads. it that is the limit of that
equip¬
or
three years.
They are once

solvent securities

considerable
decline, that
rates are regulated and that
financial problem of the rail¬ again buying, and properly
made

extent, for the rate
the

put it differently, greater

Cables: Wertma New York

Volume 158-

Number 4206




THE COMMERCIAL & FINANCIAL CHRONICLE

'

but

it

is

difficult

to

see

where

sitting.
"Likewise, they would have to

you

are

lose over 57% of their present
business to endanger the interest
on the income bonds.

"Remember

,

bonds:

come

but two
tive

if

one

thing about in¬

All

of them, with
exceptions, are cumula¬

not

earned

up

to

13.5%.

Some of

them, like the Denvers,
are cumulative up to 18%.
Study
the record of any road in bank¬
ruptcy, and you can go back over
the last ten years, from 1940 back,
and during that period you will
have all your income bond in¬
terest.
True, you might have
skipped some of it in 1932, 1933
or 1938, but you would have got¬
ten it back in the first decent year.

"Now,' the thing that breaks
railroads, from a quick standpoint,
is
lack
of
coverage
of fixed
charges.
V';

"Fixed charges on the Wabash,

their
down

business, would have to go
almost

63.5%

before

their

fixed

charges would be involved.
"In these figures here I have
left out the capital fund because
under present bookkeeping meth¬
ods, which were not in effect when
these plans were drawn, the cap¬
ital fund

in

most

cases

will

be substituted, or,

now

rather, will get
a credit from depreciation of plant
and structures, so that there will
be in effect no capital fund. True,
it will be a charge against gross,
but that charge all of the railroads
will have also.

(Continued

L

MARKET PLACE

RICHTER

nSflW

on page

802)

802

s

THE COMMERCIAL &

FINANCIAL CHRONICLE

1

Thursday, August 26, 1943

"Railroad Securities

The Future Of Interest Rates

In Post-War Era"
(Continued from page 801)
"(Chart) This next chart shows

(Continued from page 799)
will buy a railroad bond or lend on
mortgage, or for the
not the rate of interest, but the level of expansion of the individual's business, or the
starting of
should explain that
commodity prices.
The following passage, typical of this an independent business enterprise. It was this source of
.income bonds,, that is now with old
view, is taken from Taussig's Principles of Economics, capital which vthe older economists
chiefly stressed. It i§
the reorganization over with, the
1920 edition, Vol. II, page 5:
; )%
*•;'
'
very important. » To the extent that the saver refrains from
securities that are listed here—the
:
"We may brush aside, not only the notion that
income bdnds, the first mortgage
X immediate consumption, less hats and shoes and ice cream
bonds and the preferreds—are the
interest arises from the use of money, but that the rate 4 are produced.
To the extent that he invests in any of the
.amounts
exchanged
under
the
of interest depends on the quantity of money.'. More
forms indicated, more
machinery, more railroad terminals,
plan.
r
;
more
money makes higher prices, not lower interest.
The
houses; more goods on shelves,: more things which
"Likewise in the Erie. In this
the

Erie

Railroad.

money

Perhaps
I
the Wabash

governs,

.

,,

.

,

«.

case,

^

and
new

connection which does exist between the rate of bank

taken out of my book,

since that was

fixed

charges

published the
on
most of

these have been reduced again.

of its

"The Erie; could lose 60%

.

,

and still cover
the preferred; they could lose 65%

present, ^business
of

their business

and

still

■

will give forth their services in the future

discount and the

also,' the fixed charges that

use are

His

quantity of money held by banks has > ;
been sufficiently explained; this bank rate oscillates^
above and below what may be called the true rate of
interest—the return on steady investments.
In the ex- f
position which follows, this essential rate of interest;

decisions to

will be had in mind.".

tend

are

decisions, to the extent of - his economic

produced.

power,

turn

the activities of the

community toward producing for the
present or toward producing for the future.
There is k
back-and-forth play between the rate of interest and his
.

save.

downward.

.When
When

cover

savings
rates

are

of

large, rates of interest
are
high, more

interest

The present writer, who has never accepted the quan¬ saving is induced.
y-p:The second great source of
tity theory of money, became convinced many years ago
capital, the importance of
would have to lose close to 80%
that this dogma of the quantity theory of money was un¬ which we were just beginning to recognize in 1920, is busi¬
of their business before involving
sound.
In my Value of Money, first published in 1917, I ness savings and, above all, corporate savings.
David Friday
the interest on their first mort¬
held that an increase in the quantity of money would lower in his Profit, Wages and Prices, published in 1920, was the
gage bonds.
"(Chart)
This is the St. Paul interest rates, first short-term money rates and then, if pioneer in emphasizing its importance and in undertaking
chart. ' The
securities
are
not these
continued low for a considerable period: of time, to measure it for the United States.
The turning back of
available in the form of new se¬
finally long-term rates. I rejected the notion that bank corporate earnings to surplus has been a major source of
curities
because
of
litigation.
rates merely oscillate above and below the long-time rate capital in our history and a major source of our economic
There is no trading on the whenissued securities.
If my idea is of interest, finding a clear tendency for short-term rates growth.
Public policy which restricts this, such as the
; right, there will be trading in a
to be lower than long-term rates and for the call
rate, undistributed profits tax, or corporation taxes so high as
relatively short time. They can be
despite its occasional flights to high levels, to be lower than to prevent the accumulation of adequate surpluses and re¬
invested in now through the me¬
all time rates.
I placed heavy emphasis upon the liquidity serves, does the country incredible harm.
.
'
dium of the St. Paul generals, and
The third source of
while I am speaking of that, there factor, emphasizing that the more liquid loans,
capital is direct capitalization, par¬
and the
.are only two junior bonds whose
more
readily marketable bonds, would command lower rates ticularly important in agriculture, though important also in
purchase I would recommend at than less
liquid loans and less marketable bonds of equal small shops and factories and in homes. It comes when the
the present time: One is the junior
safety. I concluded that it was a mistake to look for the farmer, or the home owner uses his spare time in painting
bond of the St. Paul, the so-called
St. Paul adjustments, which sell pure long-time rate of interest in the yield on gilt-edged, his buildings, in building fences and barns, in putting in
at around 13 or 13%, and the other
readily marketable bonds, because the liquidity factor sub-soil drainage. It is the product of labor rather than of
is the junior bond on the North
It involves no moneyv intermediation.
pulled down the rate on these bonds, and I was disposed saving.
It comes
Western which sells at about the
when the farmer lets his flocks and herds increase instead
to find the pure long-time rate in the rate on safe
same price, the convertible 4%s.
mortgages
I recognized, too, that of selling off the whole of the annual increase.
One able
"Getting back to this chart, the and other safe fixed investments.
St. Paul could lose 46% of its busi¬ the notion of one
pure rate of interest was a myth, but Italian authority expressed the opinion to me in 1937 that
ness and still cover the new pre¬
regarded it as a useful theoretical concept which concen¬ the capital created by the Italian peasant, as he cleared his
ferred, and 65% of its present
trated attention on a highly important set of causes affect¬ land of rocks and fertilized his land and terraced
it, in¬
business and still cover the new
creased the number of his
incomes.' I did not project this ing'actual interest rates.f
goats, etc., was practically off¬
I recognized, too,
line out, but it would be 75% of
contrary to the traditional view,' that setting the damage Mussolini was doing that year to the
its present business without in¬
new bank credit could be a real source of
capital'without capital of the country by his fiscal deficit.
volving the new fixed charges.
A fourth source of
preliminary abstinence or waiting on the part of savers.J
capital is governmental thrift, tax¬
"(Chart)
This is the Missouri
In 1920, in an address before the Indiana Bankers As¬ ation for capital
Pacific on the ICC plan of re¬
purposes—formerly very important in the
organization. As far as the over¬ sociation, the writer offered the
following doctrine; with United States. When the State taxes inheritances at high
all charges are concerned, it does
rates and uses the proceeds for current
respect to the nature and sources of capitals.§
expenses, it is dis¬
not differ much from the proposed
Capital consists of the produced means of production. sipating .capital.
But when the State taxes incomes and
Allegheny
compromise;
so
the
It consists of railroads and
figures, while they will always be
bridges, of factories and machin¬ uses the proceeds in paying down public debt, it is creating
a little different, draw these gen¬
ery, of stocks of raw materials, of flocks and herds; of new capital.
The retirement of Government bonds puts
eral conclusions:
orchards, of sub-soil drainage, of fences and barns, of stock into the hands of the bondholder funds which he will re¬
"In this case they could lose
of goods on the merchant's shelves.
Capital grows as men invest in industrial or railroad bonds or in other capital
55% of their present business and
consume less than
uses, and increases the supply of funds in the capital market
they currently produce.
yet cover charges including pre¬
1 *
ferreds. They could lose 65% and
There are five main sources of
capital.
The first is in the same way that the savings of the individual con¬
still cover their income bonds.
I consumer's
thrift.
A man has an income of $5,000.
Our Federal Government had a
He and sumer do.
magnificent
did not project this line out, but
his family spend $4,000 a
It had increased pub¬
year in current consumption, and record in this respect down to 1933.
over
75% could be lost and still
the remaining $1,000 is available for the
they could cover their first mort¬
purchase of a rail¬ lic debt down to that date only for war or for temporary
road bond, or for a loan on
gage bonds.
mortgage, or for the building emergencies, and had always promptly set about reducing
"(Chart)
Understand, when I of a home, or for deposit in a savings bank which in turn the debt when the emergency was over.
The one exception
talk almost exclusively in a spe¬
was
the borrowing for the Panama Canal.
tSee Value of Money, New
For that we
York, Macmillan, 1917.
New edition, New York, Rich¬
cific part of my talk about rail¬
ard R. Smith, 1936.
Page references in index under "Interest," and "Money Rates."
planned to borrow something like $300,000,000, but we did
roads being reorganized or those
tlbid., pages 484, n.; 484-89; ch. XXIV.
in fact borrow only $135,000,000, because fiscal
^Published in The Chase, the house
that have been reorganized, I do
organ of the Chase National Bank of the
surpluses
City' of New York, November, 1920.
See also "Bank Money and the Capital Supply,"
not mean to infer that there are
provided the rest. All of our river and harbor improvements^
The Chase
Economic Bulletin,
November, 1926, and "Eating the Seed Corn," The
(Continued on page 803)
Chase Economic Bulletin, May, 1936.
all of our Federal public
buildings, our Federal contributhe income

this

line

bonds.

out

this

I

didn't carry

far,

they

but

j.

.

,




*

...

-^v
.

_•

'•

<•'

-V

..I-

•

•

*♦.

:

-

•

/■•

.•

•

s

_

;_T

._

v,

''

;■

Compliments

Bonner

&

Gregory

,

Volume

Number 4206

158

THE COMMERCIAL & FINANCIAL CHRONICLE

803

OFFICERS 1941-1942

President

President

•Herbert H. Blizzard

Joseph W. Sener

Secretary

B.

F.

Ludington

tions to

l$t

highways, our navy, our army posts—all were paid
NY
rather than out of borrowing. Since 1932
the trend has been overwhelmingly the other way, and the
Federal Government has been dissipating capital.
Primarily- as a result of the
The fifth source of, capital <is new bank money.
To heavy increase in new savings de¬
many
of the older economists this doctrine{ would- be posits during the first six months
anathema. ' How, it would be asked, can the mere inter¬ of 1943 the Savings Banks of New

Vice-President

Wm. Perry Brown

Chester M. Glass, Jr.

"Railroad Securities
Savings Banks
In Post-War Era"
Report Gain In Govts,

for out of taxes,

•

'York

State

(Continued from page 802) V
not other purchases in the solvent
field that are good. But I say, if
Southern

Pacific

added

is

good—and

I

arid still

the first mortgage

cover

payments.

;<-■

/"(Chart)
The
St.
Louis-San
Francisco, another very drastic re¬

organization,

could

lose

and

preferred,

53%, and still

the
and

over

still

of

45%

their business

the

cover

cover

income bonds, and over 63%
still cover the fixed charges..

$368,000,000 to think it is—and if Southern Rail¬
change of two liabilities create capital? A borrower gives
"(Chart) This historical record
their holdings of Government se¬
liability, and in exchange the bank curities. Total United States Gov¬ road is good, and if Illinois Cen¬ does not reflect the changes, the
tral is good, in other words, if the
efficient methods, and so on, that
gives the borrower its liability, a deposit credit. How does ernments held by the Savings
danger of bankruptcy has been have been introduced in
the rail-,
this create capital? And yet for the borrower it is enough. Banks on July 1st were $2,707,removed, and in all those cases
roading business in the last few
Armed with the new deposit credit, he can go into the 000,000 or approximately 46.5% I think it has, I still think I would
years.
of their deposit liability on the rather have
the income bonds of
market and divert labor and existing resources from the
"The Denver could lose 35% of
'same date said the Savings Banks
this, that and the other railroad its present business and still cover
production of hats and shoes to the production of a machine. Association of the State of New
that have already reduced their the
preferred dividend, 42% and
He may, in the course of this, shorten the supply of con¬ York on Aug.
18, its announce¬ fixed charges 70%, than I would still
cover the income
charges, and,
ment adding:
sumer
^/
the junior bonds of the border¬
goods and force an involuntary abstinence on the
pver 75% and still cover the first,
"The
additional
purchases of lines which are doing a good job mortgage interest.
part of the consumer, but a machine is created which would
but which still have a long way
"All those I have mentioned,'
not have otherwise been created.
If he gets the: loan at a Governments during this period
were
made possible largely as a to go to catch up with these, be¬
with the exception of the Erie and'
time when business is slack, he may even have the new
jresult of the gain of over $242,- cause obviously the leverage is in the Wabash, have to be
purchased
machine without forcing any abstinence upon the con¬
000,000 in deposits and, to a lesser the ones that have been reor¬ through the medium of the old
sumer.
It must be recognized that, held within limits, this extent, by -transfers from other ganized and are being reorganized. securities, because the new securi¬
types
of investments
is a real source of additional capital, and that
"This chart is the New Haven. ties are not being traded as yet.
including
properly •those made
available from
the The New Haven could lose al¬
"In this case, however, the new
handled is a safe source of capital.
7
/
^
" 7
amortization of mortgages. <./■ most 65% of its business and still securities are
being traded, as and
This would have seemed .very strange; and weird to
i
"Another record gain in de¬ cover the preferred; over 70% of if issued.
I think the income se¬
Adam Smith, who held, and properly in the circumstances
its business and still cover the curities sell
around 50, and the
posits is reported for the month of
of his day, that a bank could safely lend only-for short- July when there was an increase income bonds; and probably over preferred around 40 or 41.
term purposes, could lend to the merchant or manufacturer pi 23,649 in savings accounts and 80% of its present business and
"(Chartj";In this case the
$53,608,882
in
deposits. / This still cover the first mortgage in¬ Northwestern ; could lose 38% of
only those funds which would be quickly returned by the breaks the all-time record estab¬ terests.
:7A'V.:,
their business, and still cover the
sale of moveable goods, and must lend no part of the funds
lished in June.
War Bond sales
"(Chart) /The
Rock
Island, preferred, over 70% of their busi¬
needed for the forge or the smelting house.
were
up, too, the total for July which is one of the most drastic
Only the in¬
ness
and still cover the income
dividual capitalist who could wait many years for his
'
reorganizations—and, understand, bonds, and probably 85 or 90%
money being $20,993,361. A these figures are actual and do not of their business and still cover
was
justified in doing that. '
<
" • 1 1 ;>■ "The combined total of net gain
in deposits and War Bond sales reflect
changes in management; the first mortgage bonds.
But when the forge and the
smelting house are rep¬ for the last three months is over they do not reflect the fact that
"Now I think this concludes the
resented by shares of stock or by bonds in thousand-dollar
they were in bankruptcy, prob¬ formal
$208,201,000 and the gain in sav¬
part of this meeting.
I
ably spending more than solvent want to
denomination, and when a broad and active stock market ings accounts is 65,037.
express my appreciation

the bank his note, his

;

-

•;

roads

spending for mainte¬
or the bonds
may be readily sold, \
"The record for*the first seven
nance—they could lose 47% of
1
against these as collateral may quickly months of 1943 is as follows:
their business and still cover the
Net
get his money backhand the forge and the smelting house Net gain in dollar deposits—. $292,252,000 preferred, over 50% and still cover
gain in new accounts-^
125,069
the income interest, and over 65%
Total War Bonds sold
may come to the money market and get bank money. :
$149,363,000
One of the great essentials for economic
progress;is j; "Dollar deposits and number of
that capital should grow more
rapidly than debt.
When accounts are at an all-time high with people saving more, the

exists in which the shares

were

the banker who lends

—

we

examine the five

sources

of

clear that the first four increase
:

>

*

(Continued




on

capital listed above, it is .with $5,866,607,299
capital much more rapidly 6,127,253 accounts.

page

804)

"With

more

on

deposit and

people saving, and

September
should
volume

of

number of

Paine, Webber; Jackson

-

War

break

&

all

Loanrecords

Drive
both

in

bonds

bought and the
people buying them."

Curtis

to

the

officers

of this organiza¬
repeat visit oh my
part, and I understand that is un¬

tion.

This, is

usual.

I

a

appreciate

it,

and

also

the many friends I have out¬
of the securities business, I
thank you for coming this after¬
to

side

noon.",

Now,
will

7J.

■

with

answer

"

your

what

might have, if I

-

'

permission, I
questions you

can.

THE COMMERCIAL & FINANCIAL CHRONICLE

804

Thursday, August 26, 1943

OFFICERS 1940-194!

Secretary

1st

Ed. E.

Edward H. Welch

interesting de¬
velopments in the departure of
Stock Exchange member houses

Chester E.

(Continued from page 803)
than

;

St., New York City.
Plans," according to H.
Carpenter, manager of the new
department, "are the concrete ex¬
pression of an investment school
of thought which has been devel¬
"Formula

O.

oping gradually and quietly dur¬
ing the past
10 or 12 years.
This school," says Mr. Carpenter,
"believes that' without assuming
the hazards of forecasting, advan¬
be
though

tage may
even

Investor's

Letters

to

(1935—-Simon & Schus¬
ter) and "The Letters of an Investr
His Son"

Counsel

to

Mr.

Mrs.

and

John Smith" (1939—-Harper).

thrift will increase debt if the saver

buys bonds

or

lends

on

or to buy corporate shares, he is not; increasing debt.
Cor¬
porate thrift increases capital without any increase in debt
at all.
Public thrift, taxation for capital purposes, including

the

paying down of public debt,

with

a

reduction in debt.

means a growth of capital
Direct capitalization involves no

The first four

of

capital are absolutely sound
and wholesome.
No country has ever overdone any of
them.
The doctrine of "over-saving" rests op a misinter¬
pretation of phenomena growing out of excessive bank ex¬
pansion. We have many times had too much bank expan¬
sion.
We have never had any excess of capital created
from the first four sources.If '
r
sources

His
new book, "Investment Timing by
Formula Plans," will be released
Credit and debt are identical.
There is no creditor
by
the
publishers, Harper & without a
debtor, and no debtor without a creditor. Expan¬
Brothers, on Sept. 8.
sion of bank deposits is the creation of debt, the debts of the
banks to the

H. H. Blizzard & Go.

|

Admits Scott, Gurney
PHILADELPHIA,
nouncement

is

PA. — An¬
by Major

made

Herbert H. Blizzard, A. C., of the
i nvestment

brokerage
firm
of
Blizzard & Co., 123
South Broad St., that Elizabeth K.
Scott and Henry B. Gurney, Jr.,

Herbert

who

H,

have

been

his firm since its
been admitted to

associated

with

inception, have
general partner¬

people or their government in exchange for the
people or the government. The ability of
the banks to repay their debts depends upon the quality apd
liquidity of the debts which the banks take in exchange. An
immense expansion of bank credit almost inevitably
mqans
a deterioration in the
quality and liquidity of the assets of
the banks, namely, the debts against which they have ex¬
panded their own debts.
liabilities of the

::

This is true

,

is

expanding

when bank credit is expanding against
productive purposes. When bank credit

even

debts created for

as a

substitute for the savings of the people in

U"Eating the Seed Corn," Chase Economic Bulletin, May, 1936, pages 30—37.

ship.

'4»>

'

nV

The Office of Defense Transpor¬
tation has found it possible to pro¬
vide for the construction of an

Governments

additional
in

Provincials

1943

5,801
of

out

new freight cars
steel allocated to

the railroad industry for the third

Railroads

quarter, it
11.

Utilities

was

announced

cars

to

the

upwards
cars

Ernst & Company

ODT

MEMBERS
YORK STOCK EXCHANGE

CHICAGO STOCK EXCHANGE

on

Aug.

The addition of the 5,801 new

approximately 26,000

already authorized will

will

mean

that

of

32,000

be

produced this year,

new

freight

officials declared.

The breakdown of the 5,801 cars

NEW YORK CURB EXCHANGE

according to type

CHICAGO BOARD OP TRADE

COMMODITY EXCHANGE,

INC.

/

Box, 2,724;

is

as

follows:

gondola, 262; hopper,

2,150; refrigerator, 300; flat, 365.
120

Glas

war

banks rest

primarily

231 So. La Salle St.

Broadway

New York 5
Direct private

Chicago 4
wires to Chicago, 111., and Los Angeles, Cal,




Many

of

builders and

will

the
some

principal

car

railroad shops

participate in the construc¬

tion of the new equipment, it was

pointed .out.

public debt
banks.
the

|

was placed with the people rather than with the
This expansion of bank credit was adequate to win

■"
^
In the period from June 30, 1922 to mid-April, 1928,

war.f

without any need

for it, but as the result of cheap money
the part of the Federal Reserve system and efm-flowing gold, we expanded commercial bank credit in the
United States by 13 Mj billion dollars in deposits and by 14Yz
policies

on

billion dollars in loans and investments.

The effect of this

to mask the

underlying shortage of real capital from the
four normal sources of capital in a world which had spent
four years in war and four more years in waste and dis¬
organization after the war. The world ought to have had
high rates of interest (a) to compel economy in the use of
such capital as was available, and (b) to encourage additional
saving. But on a vast scale, we substituted bank expansion
for savings, pulling down interest rates. We created a great
deal of physical capital in the world, but we created also
an
unmanageable debt, which first / generated the high in¬
terest rates of late 1928 ana 1929, and subsequently brought
was

about the demoralization of 1931 and 1932,

We

expanding bank credit against government
episode look
very modest, and we are maintaining absurdly low interest
rates while we do this. How far can we go?
I have heard the view expressed that we now have new
techniques which make this safe, I see very little in the way ;
of new techniques.
I see rather an altogether exaggerated
employment of old techniques. In the matter of open market :
operations by the Federal Reserve banks, for example, in
the last war we used them for a few days at a time to facili¬
tate the flotation of each of the four great Liberty loans. In
connection with each of the first three Liberty loans the
Federal Reserve banks bought some tens of millions of gov¬
ernment securities and held them for a few days to grease
the wheels while the great loan transactions were put
through, adding for a few days to the reserves of the mem-i
ber banks to prevent an undue tension in the money market.
In connection with the fourth Liberty loan of 7 billion doi-;
lars, the transactions were larger, exceeding 200 millions
of dollars, but again only for a few days. The Federal Re¬
are now

securities

___

5,801 Additional New
Freight Gars Authorized

Dealers In

NEW

Jeremy

^

predicted."
Carpenter is known in fi¬
nancial circles for his books, "A
Mr.

ment

R.

creation of debt.
On the other hand, capital created by
expanding bank credit means a dollar-for-dollar increase in servative financial policy in the last war. The money market
debt with the growth of capital.
From this point of view, was firm. Every effort was made to hold down bank ex¬
if from no other, it is obviously the source of capital to
pansion.
The government made interest rates on bonds
taken of fluctuations
which attracted the people's money,
their direction or ex¬ be used most cautiously.
The great bulk of the

tent cannot be

Successful

de Willers

and destruction, and when the assets of the
on the future taxing power of the gov¬
ernment, caution is obviously indicated.
Excess here has
been the typical breeder of "inflation" through all modern
history. Usually it has been bank notes of central banks of
issue. But deposits are also demand liabilities, and are also
susceptible to abuse.
Perspective on this is given by some comparative figures.
In the last war, between
mid-April, 1917, and December 31,
1918, we expanded commercial bank credit in the United
States by 5 billion 800 million dollars in deposits and 7
billions in loans and investments. We pursued a
very con¬

financing

Capital accumulated by individual

they increase debt.

mortgage or puts his money into a savings bank. But
"Formula
if he uses his savings as proprietor's funds in an enterprise,
74-year-old W. E. Burnet & Co.,
or to build a home, or to reduce debt already contracted,
11
Wall
conventional
is
the
Plans" department of

the

from

Vice-President

The Future Of Interest Rates

Opens
Formula Plans Dept.
many

2nd

Thomas A. Akin

Parsons, Jr.

W. E, Burnet
Among the

Treasurer

President

Vice-President

serve

on

banks

a

scale which makes the 1922-28

were

not continuous holders of government se¬

curities at any stage of the last war.
In 1924 and 1927 the Federal Reserve banks

bought'

several hundreds of millions of government securities and
held them for many months, generating an altogether start¬

ling increase in the volume of bank credit.
In the
present period^ the Federal Reserve; banks have.

Volume 158

bought government securities in terms, not of tens of securities, the effect of which
millions

■'

or

of hundreds of millions, but of billions,

replenish¬

ing the Reserves of member banks and permitting them to
expand credit at low rates of interest against government se¬
curities.
Between February of 1942 and April of 1943 the
Federal Reserve banks bought over 4 billions of govern¬
ment securities, the monthly average figure for February,
1942, being 2,billions 249 millions; and the monthly average
for April of 1943 being 6 billions 372 millions.
This is no
new
technique,- ;but -the vast scale of its use makes one
ponder.v
.
...
In the last

war

Federal Reserve rediscount, rates were

the much

805

CHRONICLE

THE COMMERCIAL & FINANCIAL

Number 4206

may

"have but little reaction

important long-term rates of interest."
On pages 205 and 206 he suggests that the monetary author¬
ity be prepared to deal in debts of all maturities and even in
debts of varying degrees of risk.
He concludes, "Perhaps
a
complex offer by the central bank to buy and sell at stated
prices gilt edged bonds of all maturities, in place of the single
bank rate for short-term bills, is the most important prac¬
tical improvement which can be made in the technique of
monetary
management."**
This,
I
submit
to
the
Keynesians, is a complete abandonment of the theory
that
the
supply of money in relation to liquidity
demands
can
govern both long and short term rates

on

more

HART SMITH A CO
52 William Street
'

Bell Teletype NY 1-395

,

financing, but they
the war went on. The New York of interest.. And I would call their attention further to
Federal Reserve Bank placed its rediscount rate at 3% in Keynes' warning on page 207 as to what happens to the rate
of interest when a flight from the currency comes.
%
1917, moved:it hp to 3H% at the end of.the year and to 4%
I think that there are two objections prominent in the
early in 1918; .still holding it, however, below market rates.
At the present time the Federal Reserve: rediscount rate is minds of men who hesitate, When the suggestion is made
one-half of 1 % for advances secured by government obliga- that the Treasury ought to make rates of interest that will
tions maturing or callable in one year Or less.
Here again attract investor's funds, and that the Federal Reserve sys¬
there is no new technique, but merely an extreme applica¬ tem ought to tighten the money market to limit bank ex¬
tion of an old one.
pansion. The first is concern as to what would then happen
The Federal Reserve authorities now have power to re¬ to the banks which now hold long-dated governments.
On
duce the reserve requirements of the member banks and this point, I would say that this problem becomes greater
they have already done this so far as New York and Chicago and less easily manageable the longer we defer it.
The
banks are concerned. But in the last war we reduced mem¬ solution which I have offered for it is that the banks hold¬

held below the market to facilitate war

New York 5

HAnover 2-0980

;

followed the market up as

:

"-nv

N
A

Act of Congress in 1917. There is no ing long-dated governments be allowed to subscribe for the
technique here, though the power to go very much fur¬ new higher yield issues with their old bonds, on terms some¬
ther in this connection is in the hands of the Federal Reserve what less favorable than those given to cash subscribers, say
ber bank reserves by

D

new

of Federal Reserve
anticipating that it
fully used. I believe that there is no validity at all in

system, and those who see no reversal
policy with respect to money rates are
will be

the contention that new

techniques have made the abuse of

bank credit safe.
I have

seen

\

calculations which would indicate that the

capacity of bank credit to expand and to take government
bonds is very great, if no question is raised as to the credit
of the government and if there are no currency disorders.
By pushing the capacity of the Federal Reserve banks to
expand to the legal limit, which would pull down their re¬
serves to 40% against notes and 35% against deposits, great
additions can be made to the reserves of the member banks.

that this leeway is being used
The ratio of total reserves of the Federal Re¬

It is to be observed, however,
up

rapidly.

serve

banks to note and deposit liabilities combined stood

at

98% of par.

case

we

There

should have

be better solutions, but in
ready.

may

one

a.

I

The second

objection relates to the interest charge on
the public debt in post-war years. If the Treasury were using
the existing easy money to place long-dated bonds with in¬
vestors, the point would have merit. But when the Treasury
is financing itself so largely, so far as investors are con¬
cerned, with war savings bonds which are in effect demand
deposits after a short time, and when, looking at the whole
picture, it is clear that the Treasury must refund a great deal
of its debt in a comparatively few years, the point seems to
have no validity.; We had better face the realities of the fu¬
ture interest burden now.
Facing its realities would give
immense impetus to the move for economy in spending even
in the midst of war, and in particular might make the
Treasury a strong advocate of doing away with the forty-

90.4% in April of 1942 and at 75.8% in April of 1943. hour week for the duration of the war, arid of 50 % overtime
Moreover, excess reserves, which stood at nearly 7 billions payments beginning at forty hours in work on government
in early 1941, dropped below l1/^ billions on June 23, 1943. contracts as well as elsewhere.
'
We are using up ammunition very fast.
It is technically
I think that the Treasury can get a great deal of
money
possible to go a great deal further, however.
' '
from the people at interest rates below those at which we
Further reduction of the reserve requirements of the sold
Liberty bonds in the last war. Those rates, beginning
member banks can make further expansion possible, par¬
'3V£t% on a fully tax free bond in the first Liberty loan,
ticularly since the reduction of the reserve requirements in- Went up to 4x/4% on a partially tax exempt bond in the
creases the multiple of expansion against excess reserves.
fourth Liberty loan.
The immense bank expansion which
But it can hardly be contemplated that we will push the has
already taken place has created vast sums of idle money
Federal Reserve ratios to the legal limits, or member bank owned
by the people, which the government can now get at
reserve requirements to the lowest legal limits, when we
moderate rates of interest.
Patriotism by itself won't take

A
N

at

.

probable withdrawals of refugee gold in the post¬ bonds with present low coupons in adequate quantity, but
period, and the need for flexible bank credit in the post¬ patriotism, plus vigorous bond selling by alert local com¬
war readjustment.
mittees, plus coupon rates intermediate between those on the
There are indeterminate elements in these calculations. Liberty bonds and those now prevailing would get a
great
One must forecast the extent to which money in circulation deal of investor's money. The rates might have to rise pro¬
will increase as the process goes on, which would pull down gressively, but could still be kept moderate, if we have a
the magnitude of the expansion, and one must make assump¬ prompt facing of financial realities. I think that the Treas¬
tions regarding the volume of private loans that the banks ury should move promptly to fund its debt into
long time
will be called upon to make if a great rise in prices comes bonds in the hands- of the people while unused bank de¬
and the industries are obliged to turn to the banks to in¬ posits are so great, and while moderate coupon rates are still
crease their working capital funds.
At the moment such possible. I think, too, that such a return to financial ortho¬
loans are going down, because the government is financing doxy would greatly strengthen the fabric of confidence in
Government finance, in the future of the
so much of the industrial expansion.
currency, and in
•
/%•%%■■ There.are advocates of cheap money policy who would the whole economic picture.
face the

S
E
C

war

rest their

position

on

the doctrine of J. M, Keynes, who re¬

jects entirely the so-called "classical theory" of interest, who
rules out time preference and compensation for waiting in
the explanation of interest, and makes the whole determina¬
tion of the rate of interest rest on liquidity preference as

against the supply of money. If only money can be made
plentiful enough to glut, sufficiently the desire for hoarding
on the part of those who wish to remain liquid, interest can
be held at any desired low figure, according to the Keynesian
doctrine.
I regard this doctrine as an absurd exaggeration
of one factor in thet theory of capital and interest which I
have given above. But to those who believe in the Keynesian
theory, I would point out that Keynes has himself abandoned
it. In his book, The General Theory of Employment, Interest
and Money, page 167, he states the theory, and indicates ex¬
plicitly in a footnote that the theory applies not merely to
short-term rates, but also to the complex of various rates of
interest for different periods of time.
But by page 197 of
this same book, he complains that the open market operations
of the Federal Reserve banks in the United States in 1933
and 1934

were

limited to the purchase of very short-dated




^Something like this may now be part of Federal Reserve policy.
Bulletin, July, 1943, page 590.
;
I
'
l'
^

Reserve

v

The CHRONICLE invites comments

See

U
R

I
T

Federal

•

the views expressed by
phases of the subject
under discussion. Comments should be addressed to
Editor, Com-,
Dr. Anderson in this

article,

•mercial and Financial

on

I

or on any related

Chronicle, 25 Spruce St., New York (8), N. Y.

E
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806

THE COMMERCIAL & FINANCIAL CHRONICLE

National Security Traders Association
1942-43 Committees

«■

P. MEYER, Chairman
of Michigan Corp., Detroit, Mich

GEORGE V.

HENRY

L.TACKUS&

J.

-

■

Mackubin, Legg & Co., Baltimore, Md.

RICHTER

.

FIRMAN

STRADER

A.

Scott, Horner & Mason, Lynchb'rg, Va.

WALTER

HAROLD B. SMITH, Chairman
Collin, Norton & Co., New York City
Dayton Haigney & Co;, Boston, Mass.
JORDON

Harris, Upham & Co.,
Minneapolis, Minn.

WOLLEY

GAWNE

HARRY

KING

A.

■'Maynard, Murch & Co., Cleveland, 0.
PHILLIP

CLARK

J,

Co., Denver, Colo.

Sudler &

C.

Amos

RICHARD

V.

Wyeth

Mich.

•

.

"
,

..

Edward

Freeman

P.

Savtley &

Lockwood, Peck & Co.

RALPH

Brooke, Stokes & Co.
E. Clinton

Trust Co.,

Minn.

Baumgartner & Co., Inc.

SUMMERELL

.

and

E.

KERMIT

Allman, Moreland & Co.
McDonald-Moore
Treasurer: C. J.

E. H. Rollins &

Glas

IRWIN

Company,
Minn.

&

JOHN

&

HARRY

Co.,

York

New

City

CASPER

RALPH

MRS.

York City

11.

OLIVER

Greenwood

T.

E.

&

Co., Phila., Pa.

J.

&

Bioren

DOTTS,

A.

WARREN,

EDWARD

Chairman

Company, Philadelphia,

Sincere

Pa.

Vice-Chairman

LEO

Co.,

Toledo,

THOMAS

Lee

SIMMONS

Special Executive

RALPH

Co.,

James

Chicago,

Robert H.

Secretary and Treasurer:

C.

Orleans, La.

Security Traders

Inc. 1
'

Co., Inc.

Putnam

Morgan
Kuhn, Morgan & Co., Tampa

A. M. Morrison
A. B. Morrison &

Co.

&

Vice-President:

McCormick, Jr.

Frank J.

N.

Murray

Corpora¬
tion, Jacksonville

&

Company

and

Ballard

Co., Inc.

Sec. and Treas.: John E. Graham

Bond Club of Houston

Brainard, Judd & Co.

Winslow, Jr.

Texas .yy

Perrin, West & Winslow, Inc.
We maintain active
in

President: Edward Rotan

Trading Departments
our

■

^

Dallas Bond Club
The Bond Traders Club

Directors:

.

President;

Maryland and Kentucky Municipals

Lee

Richard W. Simmons

J.

Bond Traders Club of

Rauscher, Pierce & Co.

&

Bernet

Hickman, Inc.

the

Vice-President: Edward L. Meyer

Harris, Upham & Co.

-

William R. Newsom, Jr.
Sanders & Newsom

Secretary: Eldridge Robinson

Treasurer: F. Girard Schoettler

Secretary: Harry N. McConnell

Treasurer: Arthur I. Webster

.

Crummer

Wayne Hummer & Co.

&

Baum, Bernheimer Co.
E. W. Price & Co.

Co., Inc.

Exchange
Established 185G

SteinBros.&Boyce

H.

IIENTZ

&

CO.

Established 1853
New York Cotton Exchange Bldg.
6 S. CALVERT

STM BALTIMORE 2, MD.

HANOVER

SQUARE,

N.

\

Y.

Telephone: PLaza 8400
STARKS BLDG. ARCADE, LOUISVILLE 2, KY.

COMMODITIES

BONDS

STOCKS

Telephone: LD 180
Members

PHILADELPHIA

York, Pa.

Hagerstown, Md.

NEW YORK 4

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New York Stock Exchange

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New York Cotton Exchange

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and other leading exchanges

MEMBERS OF NEW YORK STOCK EXCHANGE
Branches

and other



■,

*fr>.

leading exchanges

<

Whaler, White & Co.

Wesley Hickman,

Glore, Forgan & Co. '

'

on

Kansas City (Mo.)
President: Leonard A. White

Co., Inc.

Schneider

Secretary: Loren A. Cochran

Mortgages

Commission orders executed

/

Garrett &

Cruttenden & Co.

all local securities

'

Canavan

P. B. (Jack) Garrett

Higginson Corporation

Vice-Pres.: James H. Murphy

Surety Guaranteed Mortgage 8onds and

"

John L.

of Chicago

Baltimore Stock

,

G. V. Rotan & Co.

BALTIMORE and LOUISVILLE OFFICES

F. H. A. Insured

Co., Miami

Clyde C. Pierce
Clyde C. Pierce

Second Vice-Pres.: R. W. Wilde

Conning
Carver &

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Beach

President: Andrew L. Tackus

William S. Prescott

A.

v

Keith H.

Association of Connecticut

Chandler Hovey & Co.

Allyn & Co., Chicago, III.

*

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Carlberg & Cook, Inc., Palm

THOMAS WAKLEY
A.

;

Robson, Link & Co., Miami

Day> Stoddard & Williams, Inc.

Co., Chicago, III.

'

Cook, Inc., Miami

Emerson C. Cook

r

Co.,

Governors: The officers and

■>

Galvin

&

Geo. U. Robson

III.
James F.

Cook

Vice-President: Robert H. Cook

Thomas A.

S.

William F. May

RANDALL

M.

West Palm Beach

Melody
First Boston Corporation

May & Gannon

Co.,

&

J.

F. L. Putnam &

HIGGINS

Mason, Moran &

BROWN

Coffin & Burr,

PULVER

Goodbody

New

Thomas

,i1

Harry W. Crockett

Higginson & Co., Chicago, III.

HENRI

Co., Chicago, 111.

Governors:

Hulburd, Warren & Chandler,
Chicago, III.

JOHN M. FAUST

PERRY

WELCH, Chairman
Co., Chicago, III.

H.

&

DOYLE

LAWRENCE

KINGSBURY

Kingsbury & Alvis, New Orleans, La.

Newman, Brown &

Treasurer:

Pressprich & Co.

Corresponding Sec.: William
Thompson
Ralph F. Carr & Co.

,

/■-. Thomas Kemp & Co., Los Angeles,

&

H.

RICHARD

KEMP

WALLACE

Co.

Secretary: Everett A. King
Maynard H. Murch & Co.

Ohio

Doyle O'Connor & Co., Chicago, III.

Baker, Watts & Co., Baltimore, Md.

WM.

&

&

President: E, W. Jackson

Arrangements

'

M.
&

ROBERT

Blair

R. W.

Dempsey-Tegeler & Co., St. Louis, Mo.

Sons,

Municipal

J.

Jordan

Louisville, Kg.

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Harry Gawne

Merrill-Turben

Recording Secretary: G. Carleton

GOSHIA

Francisco, Calif.

RUSSELL

F.

&

TEGELER

F.

Vice-President:

Baldwin & Co.

FERGUSON

V.

President: J. N. Russell

Gillis, Russell & Co.

Howard S. Harris

Treasurer:

Tenn.

M.

Collin, Norton

.

PRICE

W.

Rollins

H.

San

ORA

Beane,

York City

TRYDER

THOMAS

Goldman, Sachs & Co.

Merrill Lynch, Pierce, Fenner

Edw. A. Purcell & Co., New

Vice-President: Fred. W. Rice, Jr.

■

Union Bank,

Commerce

Nashville,

Brown, New

Chairman

MacPHERSON

FREDERICK

PAUL

DIMPLE

T.

HECHT,

PERRY

SMITH

Stryker &

H.

Cleveland Security Traders
Association

Walker, Austin & Wagner, Dallas, Tex.

John J. O'Kane & Co.. New York City
ELBRIDGE

C.

Butler-Huff & Co., Los Angeles, Calif.
W.

Sons, Inc.

Roney

Wm. C. Roney & Co.
Charles C. Bechtel

,

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First Boston Corporation

Membership

Orleans, La.

Crane, New

HUNTER

Hunter

Association

HARRIS, Chairman

President:

Kingsbury & Alvis, New Orleans, La.
DUKE

AL

R.

Scherck, Richter Co., St. Louis, Mo.

W. KINGSBURY

J.

Boston Securities Traders

GLAS

JERRY

Co.

Ray E. Davis
John K.

SORUM

Minneapolis,

&

Boigegrain

Directors:

Chairman

Public

v

Secretary: Don W. Miller

Butler-Huff & Co., Los Angeles, Calif.

Allison-Williams

Michigan, Inc.

Vice-President: Paul I. Moreland

Merrill

Lynch, Pierce, Fenner &
Beane, Los Angeles, Calif.

'

President: H. Russell Hastingsv

Weiss

C.

Security Traders

.

J. S. Todd & Co.

HECHT,

C.

,

Association of Detroit

Stranahan, Harris & Co.

Willard

Corporate
JOHN

•'

Chas. H. Snyder
J. E. Bennett & Co.

Detroit, Mich.

Co.,

ROBINSON

*v •

James E. Madigan
W. E. Fox & Co.

Bamberger

RANDALL

G.

''<•

Joseph
John E. Joseph & Co.

PLUMLEY

First National Bank &

-

Dryden & Co.

John

Louis P. Gundlach

Los Angeles, Calif.

Co.,

;

;
-

.

,

Oscar W. Hirschfeld

,,

:

Treasurer: Phillip J. Clark
Amos C. Sudler & Co.

^

■:

J. Allison Dryden
,

Mason, Moran & Co., Chicago, 111.

Baum, Bernheimer Co., Kan. City, Mo.
DON

Governors:

Alex. Brown & Sons

SCOTT

&

ALBERT

BECHTEL

ELDRIDGE

IJ;

■.

John T. Baldwin

JR.

ABBE

F.

Minneapolis,

McDonald-Moore & Co., Detroit,

H.

Soiis>-yy

Hall,
Clair S. Hall & Co.

Tuyl & Abbe, New York City

Van

OLIVER B.

DON W. MILLER

CHARLES

y. J

'

.

Co., Inc.

Edw. Brockhaus & Co.

•

Merrill, Turben & Co., Cleveland, Ohio
EDWARD

•

Vice-Pres.: Elmer G; Longwell
Boettcher & Co.
V-

Secretary: Bernard F. Kennedy
•
Bosworth, Chanute, .LoughF. O'Connor
ridge 5c Co.

Treasurer: Clair S:

y:

SAUNDERS, Chairman
Dominion Securities Corp,,
"
New York City

Cincinnati, 0.

Edward Brockhaus & Co.,

.

Publicity

Pohl &

,

.'/■C Governors:.

Sidlo, Simons, Roberts & Co.

'

Secretary: Jack ,C. Siegman,

Co., Cleveland,

Ohio

WALTER F.

SIEGMAN

C.

Robert Garrett &

JR.

Second Vice-Pres.: E.
s -

■

>

v

Fist Vice-Pres.: George H. Phillips
W. ?D. Gardison & .Cp.f'S^kkt

Harry J. Niemeyer

:

.

'

'

^

& Burr, Boston, Mass.

^;

Baker, Watts & Co.
Treasurer:

.

PARSONS

J. Mericka &

Wm.

Pressprich & Co., Boston, Mass.

Coffin
J.

EDWARD' E.

V

••

Secretary: John G. Chenoweth

GEO. V. JACKISH

HAIGNEY

SUMNER

Mead, Irvine & Co. ;':;y y-y

CONNOLLY

J.

Connolly & Co.,
Boston, Mass,

•

W.

Co., St. Louis, Mo-

:

President: Malcolm F. Roberts

Arch. F. Montague

W. E. Hutton & Co.

Vice-President: Preston A. Taylor

JR.

&

Walter J.

Advertising

R.

FUSZ

D

Fusz-Schmelzle

Bond Club of Denver

Bond Club, Inc.
President:

::

& Co, Chicago, 111.

Mason, -Moren

.

The Cincinnati Stock &

Harry M. Sheely & Co.

RANDALL, Chairman

RALPH G.

.

LTJDWELL

CARL

President: Harry M. Sheely

Nominating

-

Co., Hartford, Conn.

Scherck, Richter Co., St, Louis, Mo.

DAYTON

Baltimore Security Traders
Association

SENER

W.

JOSEPH

JACKISH

Harris, Upham & Co., Minn., Minn.
Putnam

Constituent Associations

WINTHROP PIZZINI
B. W. Pizzini & Co., New York City

War Bond

ANDREW

^

B.

FRANK
First

Thursday, August 26, 1943

DETROIT

CHICAGO

PITTSBURGH

GENEVA, Switzerland

•

*

Volume

Number 4206

158

-n.

THE COMMERCIAL & FINANCIAL CHRONICLE

,

807

:

1939-1940
>[v''

..

.

l".

■

'

"r

',o

!

Secretary
if.

' *• p'" '«

'*

"V'., ;'y

/•

■,

^

James J.

Lynch

Welch

H.

Laird, Bissell &

Meeds

J.Denyven

W.

Association of Philadelphia

Torrens

Bond Club of Louisville

Bond

Francisco

San

V;

Traders Association

James

President: T. W. Price

C.

President:

C. Ruth

Otto

Willson & Co.

Sumrrierell,

Donald E.

Pierce, Fenner

Merrill Lynch,
& Beane

Secretary: Russell Ebinger
Vice-President:

Smart & Wagner

E. H. Rollins & Sons, Inc,

Vice-President: F. A. Baker, Jr.

C.

Albert

Treasurer:

H. Helfman
National Bank of St.

Brocar

William

merman,

Jr.,

Zim¬

J.

.

-

Bond Traders Club of

Portland (Oregon)

Thomas

Directors:

■
.

•'

■

.

,

*'

Fenner

''

v

.
'

'

J

'

\

.

r

.

' 1'

r

••

,

y-

1'

r^

!

Peter Finnegan.

t

of Saint Louis

Sullivan

Jack

J. Richter
•

;r£:.\"> /**? ;.v- V*

8 8-:- £i\ '(k» >1..
mm*

CINCINNATI

TT W T

B. W. Pizzini &

mb

mm

mm

wm

mm

www

William K.

wm

www

mm

mm

Enterprise 8800

F r TT R I T1 F ^

TQTFn

Uhderwriters-Distributors-Dealers
Net markets to institutions and dealers

RAILROAD BONDS

\

<.

MARION

•

CO. Pfd.

STEAM SHOVEL

REORGANIZATION
NORTH

Richard F.

'

ST. LOUIS

WZ 10808

mm*

Primary Markets in Bank & Insurance Stocks

Hemphill, Noyes & Co.
'

PITTSBURGH

Enterprise 6089

if-kf'-ykt'-kr. .'•>*•/<^

Co.

Vice-President:

Second Vice-President:

DETROIT

Enterprise 4000

1

Enterprise 6170

^

President: B. Winthrop Pizzini !

.

ROCHESTER

Enterprise 6170

^

M,i^;

\

'•

Security Traders Association of New York
■

Porter,

SYRACUSE

BUFFALO

Enterprise 6109

WIRES:

Bankamerica Co. .;

•>.vi . V;

:

N. Y.

NY 1-423

Markets in Active Over-the-Counter Securities

Actual Trading
ENTERPRISE

Hannaford &? Talbot

Scherck, Richter Co.
V1

Bell Teletype:

2-2772

HAnover

Charles Davis

s

Security Traders Club

James

NEW YOIIK 5,

PLACE

EXCHANGE

Telephone:

F. M. Brown & Co.

President: Henry

'

40

Blyth & Co., Inc.
'

•

.v"";

f:Vl'■ :)'■ /.

Security Dealers Association

Earl Parker
:

VicerPresident: Joseph Minetree

I

Established 1920

New York

Foreign Exchange Brokers Association of N. Y.

E. M. Adams & Co.

Kingsbury & Alvis

Secretary and Treasurer:
Roddy
Scharff & Jones, Inc.

.«.

Members

Vice-Fresident: Geo. F. Patten, Jr.

President: J. Wallace Kingsbury

Merrill Lynch, Pierce,
& Beane

KING & KING

Fargo Bank and Union

Trust Company

Ferris & Hardgrove

Traders Association

Earl

Treasurer:

,

Wells

Homer Bateman

President:

New Orleans Security

and

Secretary

•

!

AMER.

CEMENT CORP.

BRISTOL BRASS

-

on

UTILITY BONDS

SECURITIES

(all issues)

BRITISH and OTHER FOREIGNS

VINCO CORP.

-

Tuyl & Abbe

Secretary: John S.
A. C. Allyn

French

& Co.

-

Frank C. Masterson

Directors:

,

-

j

,

,

>

Bought

—

Sold

—

& Co.

.

ESTABLISHED

Harry F. Reed

.

Hill, Thompson & Co., Inc.
Walter F. Saunders

Securities

Corp.

Willis M. Summers

Troster, Currie &

Summers

Inquiries Invited




Rutland
Cable

Roggenburg & Company
Co.

Other Exchanges

and

Private

L

telephone to:

Montreal

Detroit
Address:

AMKO

New

NEW

YORK

25 Broad

4,

N.

CHICAGO 3, ILL.

Y.

St.

135 South La Salle St.

Hanover 2-0600

Bridgeport

TELETYPE

York

N.

Y.

■

.

State 8770

TELETYPE CG 1219

1-210

Direct

Conning & Company and Ballard, Hartford, Conn.

Telemeter wire to Buckley Brothers, Los Angeles, Cal.

GENEVA REPRESENTATIVE

LONDON

Telephone Digby 4-2525

1 Wall Street, New York 5

P. Fred Fox

&

Members New York Stock Exchange

;,'v.

N. Y. Curb Exchange (Assoc.)
N. Y. Coffee & Sugar Exchange
Canadian Commodity Exch., Inc.
Montreal Curb Market
New York Security1 Dealers Assn.
Commodity Exchange, Inc.
New York Produce Exchange
New York Cocoa Exch., Inc..
Winnipeg Grain Exchange
Chicago Mercantile Exchange

Burlington

Fox

';••'■

Stock Exchange
Chicago Board of Trade
New York Cotton Exchange

Stanley Roggenburg

F.

—

Hirsch, Lilienthal & Co.

1865

Members

New York

.

Dominion

Quotations Furnished

Quoted

Leone

Treasurer: George

:

Bingham, Walter & Hurry v

J. J. B. Hilliard & Son

Dean Witter & Co.

Paul

P.

of Los Angeles

W. L. Lyons & Co.

Vice-President:

^

Treasurer: Adolph

Van

Bond Traders Association

President: H. Allan Watts

Secretary: Frederick S. Fischer
Hendricks & Eastwood

Woodard-Elwoofi Co., Minne¬
apolis

Shipley

Quincey Cass Associates

Inc.

& Co., Inc.

Thayer, Baker ,& Co.

Secretary: Walter Space

Forest W.

Harper & Son & Co.,

/

Harriman Ripley

3TCo., Minneapolis

Lawrence S. Pulliam

Stifel, Nicolaus & Co.

Treasurer: John M. Hudson

Vice-President: Maynard W. Rue

Douglass & Co.

Hugh Schlicting

Wm. P.

Second Vice-President: Robert A.

V;

Nelson

& Co.

Janney

Harris, Upham & Co., Minne¬

;V

Clifford L. Hey

Treasurer: Fred S. Kelly

J.

Muller

President: George V. Jackish

and

Weeden & Co.
Treasurer:

Newhard, Cook & Co.

George

Vice-President:

First

Bond Traders
Club Minneapolis-St. Paul

8;

Hartley Rogers & Co.

Secretary: Richard H. Walsh

Williams

President: George H.

Green

Governors: The officers

Secretary: Jack E. Jones

Goldman, Sachs & Co.

Sam

Pledger & Co., Inc.

Conrad, Bruce & Co.

Godbold, Jr.

The Investment/Traders

Easter

& Co.

Vice-President: Sidney J. Sanders

Earl

:

Fewel, Marache & Co.

.

Vice-President:

Thitd

Twin City

Abbe

.

Secretary: George H. Earnest

Treasurer:
Edward K.

F. K. Easter

Denyven & Co,

Kennedy & Co..

;"

%

Seattle

Raymond

Second Vice-President:

Freeman & Co.

•

First

. i.

Phillip J. Clark

Bond Traders Club of

President:

Joseph Nye

treasurer: Gordon Meeks.
Gordon Meeks & Co.

J. M. Dain

J.

Brennan, Kinsella & Co.

Leftwich

phis

apolis

Emmet

H. Hentz & Co.

Secretary: Joe H. Davis
First National Bank of Mem¬

,

*

Treasurer

Brennan

Allen F. Moore

Co.

M. A. Saunders &

Vice-President: W. G.
Leftwich & Ross

/.••

/

Jones

D.

Vice-President:

First

L. A. Gibbs

President: M. A. Saunders

.Hfy

■

.

.

.

J. Earle Jardine Jr.

Edward

Municipal Bond Club
of Memphis

First

•

:

Edward

.

.

,

Vice-President

2nd

President

Vice-President

1st

! .*'« i'1 '" •' '

"

.

Wire to New

York

808

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, August 26, 1943

OFFICERS 1938-1939

Vice-President

1st

Secretary

Corwin L. Liston

Thomas

Willis M. Summers

Akin

A.

not

were

Extension Of Credit

listed

curities

to

were

1934 there does

to have been any statutory restriction covering the types

should

brokers.

and

constitute

not

particular stocks

is

It

yardstick whereby the

a

bonds

or

generally recognized that listing alone

as

lawful

for

member of

any

With the enactment of the Se¬

tional

a

na¬

securi¬

ties

curity Act of 1934 it became "un¬

or

exchange
any broker

or

dealer who

transacts
business

a
s e

curities

through

REORGANIZATION

member"
extend
or

in

secur¬

Many

authorities
of the

that
almost

the

-

counter

resulted

on

called

over

Owen V. Van
Camp

for

credit
-

ities.

SCRIP

credit

are

opinion

this

law

immediately

in

the curtailment of transactions in
such

high-grade securities

as

the

stocks of the better-known banks

OQQ

and
V;

Brokers

and

dealers

in

insurance

country

"7:'-

general

corporations
were

unlisted
t

i

c u

1

securities

a

r

and

in

specializing

ORGANIZATION

par-

in

and

companies

certain

of

whose

market

but

over-

debtor

such

being

were

and

no

which

could

and

This is

obtaining bid

quotations

securities

be

unlisted

on

authorita¬

were

upon.

case

the

as

National Association of Securities

Dealers, Inc., has taken over the
control, through an appropriate
Committee, of the giving out of
quotations to the press.
reason

that

was

stocks

and

the

bonds

Another

trading of
exchanges

on

governed by very strict rules
and over-the-counter transactions
was

were

not

controlled.

so

Act,

which

of

has

of control

established

no

that

seem

Maloney

Harry Arnold

Knight

Paine, Webber, Jackson

houses,

that

it

argument

longer has merit and the reten¬

tion of the prohibition in the Se¬
curities Act of 1934 tends to work

& Abbe

& Curtis

r

New York

.

Los

j

'

.

Angeles

New

r

;

r

York-

Henry J. Arnold

Clair

Don E. Arries

D. E. Arries & Co.

C. H.

Tampa £/

Piper, Jaffray & Hopwood

Minneapolis

Babcock

Harold Barclay

S. Hall &

Co.

Cincinnati,

Caswell & Co.

Chicago

Elmer F. Barkau

Taussig,

Tom Barry

Leason &

M. N. Basing

Gardner F. Dalton Co.

Ray P. Bernardi
John M. Beyer
James P. Blaney

Day

&

Co.

St.

Company

:

J. P.

Milwaukee
Detroit

Davenport
Chicago, 111.

Blaney & Co.

Major Herbert H,

Shaw Field,

Blizzard

Sumpter, S. C.

Ralph M. Bloom
Edw. J. Bourbeau

Mitchell Hutchins & Co.
Straus Sec. Corp.

Herbert H. Bowker

Harris Hall

J. W. Brady

J. W.

Wm. Perry Brown
Frank G. Burch

Newman Brown & Co;
Kneeland & Co.

Harold J. Burke

-V

& Co.

Chicago
Chicago

(Inc.)

Cohu & Torrey

St.

St.

Blodget, Inc.- ' •
Haupt & Co.

York, N. Y.

Dallas

Chicago

;

New York

'

'

v

:

Doyle, O'Connor & Co.
' Chicago
Doyle, O'Connor & Co.
<
Chicago
Pflugfelder, Bampton & Rust New York

Casserly

W. Caswell
A. J.

„

"

' " '

'

,

Ira

Casey

Thomas D.

.

r

*•

Louis /

New

Carrington, Jr.

s-

■

New York

Rauscher Pierce & Co.

Wm. G.

:,

Chicago

•'•7;

Stone & Webster and

%

Louis

New Orleans

*

Dempsey, Tegeler & Co.

Robert A. Canon

-

Chicago, 111.

Brady & Co.

Thomas G. Campbell
John L. Canavan

Fred J.

Louis

Chicago, 111. '';77

Cray McFawn & Co.
Quail & Co.

a

and supervision

over-the-counter

would

Van Tyle

Akin-Lambert Co.,

R. Emmet Byrne

-

With the passage of the
means

Richard F. Abbe
Thomas A. Akin

,

relied

longer the

no

that there

was

for

means

asked

advanced for

reasons

drastic action

Cavanaugh

William A. Fuller & Co.

the brokers

C. H. Chatters

specializing

Thomas J. Cline

Kneeland & Co.

in over-the-counter securities but

Fred O. Cloyes

Huff, Geyer & Hecht, Inc.

Chicago
Chicago
Chicago
Chicago

also

Harry L. Coleman

H. O. Peet & Co.

Kansas

Cecil 0. Condit

Brailsford & Co.

Ray V. Condon

B. J. Van Ingen & Co.
Hornblower & Weeks
Walter J. Connolly & Co.

Chicago
Chicago
Chicago

a

hardship not only

and

dealers

on

who

on

are

Exchange members who

undoubtedly could increase their
volume

of

business

permitted
curities

to

ume

if

collateral

as

credit

they

were

accept unlisted
and

to

against them.

should result in

which

Edward J.

Attendance At The Convention

instances

many

the

One of the
this

tend

securities

actively traded in the

the-counter

the

well-known

and

obliged to dispose of them to his
disadvantage.

o

extension

of
so

CALLED SECURITIES

t

arrange

the

&

of

such

any

RIGHTS

the

medium

SECURITIES

in

them

in

tive

may

<£>-

y

be measured.

desirability of ahy

security for the extension of credit

to margin
obliged under the

eliminate

eliminations

of securities which could be carried in margin accounts
by security
dealers

collateral

as

resulted

Prior to the enactment of the Securities Act of

Richter

national

any

Exchange members and others
formerly accepted such se¬

law

Vice-President Enyart, Van Camp & Co., Inc., Chicago, Illinois

J.

Treasurer

who

accounts

By OWEN V. VAN CAMP

not appear

on

Vice-President

Henry

securities exchange.

On Unlisted Securities

:

2nd

President

an

se¬
ex¬

This

increased vol¬

of such business and provide

(Continued

on

page

809)

Peter J. Conlan

Walter J. Connolly
Fred Cook
J. F.

Crum

Boston

Vercoe & Co.

!
: ;

.

-J

Columbus

Cruttenden

: '

W. W. Cruttenden

Chicago
Chicago

-•

' \4

City

Clement Curtis & Co.
A, C. Allyn & Co.

D. C. Cronin

v -

Chicago

& Co.

V

/

RE-

ISSUES.

U. S. Government

Josephthal & Co.

Municipal
Railroad

MEMBERS

New

York

New

York

Chicago

Public Utility
Industrial

Stock Exchange
Curb

Board

Exchange
of

Securities

Trade

'

120

New

^

B o

Broadway-

York 5,

CANADIAN

"
'

Commodity Exchange, Inc.,

Direct Private Wire Nashville

to

^

n d s

"

,

i '

l''vV

1

"',/>

'

''

>r

1

,

7

P--"wr oid'kSS*'

New York

N. Y.

REctor 2-5000
Bell

19

System

Teletype NY 1-319

Congress St.
Tel.

EQUITABLE

Boston, Mass.

Lafayette 4620

Bell System Teletype BS 360

Securities Corporation
NASHVILLE
322

Direct
Boston

Telephone
and

Private

Correspondents

in

New
Wire

York

System

Principal




to

HARTFORD

MEMPHIS

40 WALL ST.

6-7171

TEL.

NEW ORLEANS

GREENSBORO

'

DlGBY

ATLANTA

BIRMINGHAM

4-3934

KNOXVILLE

CHATTANOOGA

E. AMES

&

INCORPORATED

CO.
-

1

-

TWO WALL STREET; NEW YORK

NEW YORK

UNION ST.

TEL.

to

Cities

A.

77M777/77,/:
TORONTO

MONTREAL

-

c;■ 7/';/■?'•

-

,77<7777,:'M77'v:iy7' 777:777;Vi

LONDON, ENG.

WINNIPEG

VANCOUVER

VICTORIA

158.. Number

Volume

4206

B. Cunningham

George E. Dahlin

J. P. Blaney

Bear, Stearns &

.

Kneeland &

Stifel, Nicolaus &

H. L. Davidson

Zippin & Co.

St.

Co., Inc.

Carl M. Loeb,

A.

G. Davis

First Natl. Bank

Raymond J. Denyven

Fusz Schmelzle

Chester E. DeWillers

C. E. DeWillers &

De Young,

Bosworth, Chanute, Loughridge & Co.

Denver

Stein Bros. & Boyce

Baltimore

Martin I. King

King & King
Kingsbury Alvis

New

Fred W.

C. M. Kolkoski

Schouten, White & Co.

J. C. Lancaster

Union Planters Natl. Bk. & Tr.

St. Louis

& Co.

York

New

Co.

Grand

Larson & Tornga

Hickey & Co.

Lawlor, Jr.

Cleveland

Martin

Bioren & Co.

Philadelphia

A.

George L. Douglas

Hicks & Price

Chicago, 111.

G.-E. Lestrange

Leo J. Doyle
Oscar B. Drinkard

Doyle, O'Connor & Co.
Scott Horner & Mason

John B. DUnbar

Cruttenden & Co.

Carl H. Doerge

j*

E.

Chicago

Shillinglaw Crowder & Co.

Newmie Dunne

The Wisconsin Co.

Milwaukee

Russell Ebinger :

Wagner
Barrett Herrick & Co.

Louisville

P.

Finley

Dunne

Walter C. Engman
Chas. E.
A.

E. Farrell

Blair

*

Merrill Lynch,

Mrs. Ora M. Ferguson
,

' Fenner

v

New

Commerce Union Bank

Leonard Friedman

Boettcher & Co.

Mercier, McDowell & Dolphyn Detroit
Pflugfelder Bampton & Rust
New York
J. S. Bache & Co.
Chicago

William A. Fuller & Co.

Wallace Fulton

National Assn. Sec. Dealers

Philadelphia

Firmin D. Fusz Jr.

Fusz

having

New

York

which

P.C.Matthews

Thomas Gill

Bear, Stearns & Co.

Chicago, 111.

C. Edwin Mercier

Strauss Bros.

New York

Frank

Glas & Crane

New

Glas

Oliver Goshia

Orleans

J. P. Grimes

Kidder, Peabody & Co.
Straus Securities Co.
First Natl. Bank of Mpls.
Ray T. Haas & Assoc.
Clair S. Hall & Co.

Clair S.

Hall, Jr.

ficient merit to warrant their be¬

Courts

C. Morris

Security National Bank

Minneapolis
Chicago f
Cincinnati

;

v

Chicago

r;;:v

Mackubin Legg

Cy Murphy
J. H. Murphy

Cruttenden

Woman's Benefit

/

City
Sheboygan, Wis.
.New York •

Co.

Chicago, 111.
Chicago '

Lowell Niebuhr & Co.

C. Nongaarp

A. A. Bennett & Co.

Stifel, Nicolaus & Co.

Irwin R. Harris

Scherck, Richter Co.

St. Louis

R. C.

Brailsford & Co.

Chicago

L. F. North

H. Russell Hastings

H. Russell Hastings

James J. O'Connor

Doyle, O'Connor & Co.

White Hattier & Sanford

New Orleans

W. O. Olsen

Kneeland & Co.

Gilbert Hattier, Jr.
Harold Hawes

First National Bank

Chicago, 111.

Lt. Col. Kenneth Owens

John C. Hecht

Butler Huff & Co.

Los

Armour & Co.

Chicago, 111.

Woody & Heimer¬

Walter

Frank G. Herman

First National Bank

Mathew J. Hickey,

Chicago, 111.

Jr. Hickey & Co.

Ernst Co.

St.

J. K. Hosher

Adams

Duke Hunter

Hunter & Co.

Baum, Bernheimer Co.
Straus Securities Co.

Kansas

Jim Jacques

Dallas Rupe & Son

Dallas

J. H. Jaffe

A. A. Bennett & Co.

J.

Hunter

Isaacs

.

'

v

~

New York
/v

City

Chicago

•

Chicago, 111.

St. Louis
Edward D. Jones & Co.
New York
Adolph Lewisohn & Sons
Co.New York
CarLM. Loeb, Rhoades &

Edward D. Jones
John Kalb
Ed. Kelly

all of his

In other instances,

client

prefers to have

loans in

place and

one

does not want to arrange

part

of

his

with

his

broker

The
of

and every

and the

the

reasons

„

agraph

Louis

-

;

St.

V;

Equitable Sec. Corp.

of

"C"

an

(;;.

for

favoring

>

Nashville

of Section

7

tion with the

extension of credit

New York
Nashville

on

they apply to members of the Na¬

Pflugfelder

Pilcher, III
Winthrop Pizzini

B. W. Pizzini & Co.

New York

Kebbon McCormick & Co.

Chicago

Baker

Simonds &

C. T. Williams & Co.

Baker, Walsh & Co.

Chicago, 111,

Norman J. Powers

Kneeland

Wm.

Henri P. Pulver

Prugh, Combest & Land Inc.
Goodbody & Co.

James

Paine, Webber, Jackson

S. Porter

B.

Prugh

Quigg

&

Co.

(Continued

originally
nancial

,

on

Co.

;

page

Note

—

appeared

This

>

STOCKS

New York 5

Boston 9

Chicago 3

67 Wall Street

10 Post Office Square

135 S. La Salle Street

HUBbard

WHitehall 3-0782
•

NY

CG-105

ST.

WIRE

SYSTEM

LOUIS,

LOS

CONNECTING:

ANGELES,

NEW

HARTFORD,

Enterprise

6011

PROVIDENCE,

BOSTON,

YORK,

SAN FRANCISCO

TELEPHONES

Broadway, New York 5




FRanklin 7535

0650

1-2875

PRIVATE

article

in the

"Fi¬

Reporter" of October 17,

by request.)

810)

INSURANCE

re¬

1940, and is reprinted at this time

Chicago, 111.

-

be

modified.

(Editor's

Kansas City
Chicago

might

exchanges
or

Chicago

J. P. Blaney &

Edward Quinn

curity
moved

Chicago

& Curtis

Securities

Dealers, Inc., and members of se¬

Baltimore

C. G. Powell

of

Association

tional

Detroit

Co.

unlisted securities in so far as

Huff, Geyer & Hecht, Inc.

Tele. NY 1-2660

1934,

Pflugfelder, Bampton & Rust
Gray Shillinglaw & Co.

H.

.

Tel. Rector 2-2020

of the

whereby the resrictions in connec¬

Buy U. S. War Bonds

120

the

amendment to Par¬

Exchange Act of

Securities

Durham

Eckhardt-Petersen & Co.

month

Markets and Situations for Dealers

balance

foregoing are,only a few

for September

HILL, THOMPSON & CO., INC.

carry

'

PRIMARY MARKETS IN

Our Recommendation

to

obligations

secured

with his bank.

passage

Chicago, 111.

'

Joseph G. Petersen
Herbert Pettey 4;

Corp.

to

...

Corp. Nashville

First

Alex

Chicago

.

Securities

;

Claude G. Porter

New York

Pete

Cumberland Securities

Robert A. Podesta

Louis

Stifel, Nicolaus & Co., Inc.
Wm. J. Mericka & Co.*

M.

Welsh, Davis & Co.

-Carr Payne

go

B.

T. G. Horsfield

& Co.

broker's

a

to

want

not

M. B.

Chicago
Chicago

Boettcher & Co.

Hobbs, Jr.

Ray Hofer
Bert H. Horning

Parson, Jr.
John F. Partridge

Wm.

Hulburd Warren & Chandler Chicago

Larry A. Higgins
Wm. G.

Chicago

does

Cleveland

Wm. J. Mericka & Co.

E. E.

to

bank for such credit acr

commodations.

•

Milwaukee, Wis.
Chicago
Chicago
,•
V
Camp Grant

J. Lee Peeler

Cincinnati

dinger

-

Chicago, 111.
Chicago

Wisconsin Co.

Detroit

Dudley Heer

own

Cincinnati, Ohio

Carl A. Hartwig

J. G. Heimerdinger

and

his

Chicago, 111.

Lowell Niebuhr

Angeles

tial

Chicago

Fenner & Beane

Nongard

prefers

keep such a transaction confident

Merrill

Chris. N. Newpart

Association Chicago, 111.

securities

such

of

Kansas

Co.

&

security in margin

as

Very often the prospective buy¬
er

Nelson, Browning & Co.

•

suf¬

have

accounts.

Bear, Stearns & Co.
Lynch, Pierce,

.CCv

Roy C. Nelson
Wm. Nelson

securities

their

ing accepted

Milwaukee, Wis.

Co.

&

Bros.

if

Atlanta

Co.

&

C. M. Moynihan

Chicago

Charles Harrington -

and

coun¬

ter

Chicago

A. A. Harmet & Co.

the

over

Detroit

Stern

Denver

Harmet

by improved

better market

a

Cincinnati, Ohio

R. V. Mosley

Newark

Alfred A.

benefit

also

war¬

corporations

Allman Moreland & Co.

Manuel R, Mouber

McCabe Hanifen & Co.

Such

wider distribution

Morris M. Moss

Adams & Co.

pre¬

they

or

sufficiently large to

listing.

facilities for

Chicago, 111;
Chicago

E. J. Hansen

not

issues

held

publicly

fer not to list such issues

McMaster, Hutchinson & Co. Chicago
Stroud & Co.
Philadelphia
Friedman Brokaw & Samish.'1 St. Louis

Ed. Ilanifen

corporations

bond

or

McDonald Moore Co.

The Milwaukee Co.

J. B. Hanauer & Co.

Jack B. Hanauer

the

sell,

W. E. Hutton & Co.

Jack

:

for

Detroit

Fred G. Morton

yfy; Chicago

Chronicle

Haas

should

Howard C. Morton

First National Bank

T.

Memphis

St. Louis

Morris Greeley

R.

rant

Louisville

Fred H, Gray

Alphonse J. Grun

are

Atlanta

& Co.

wider

a

market

Arch F. Montague

Commercial & Financial

A. S. Grossman

Chicago

Mercier, McDowell & DolphynDetroit
Detroit
First of Michigan Corp.

P. Meyer

stocks
are

Chicago, 111.
Chicago

Gordon Meeks

-

modification

a

afford

Don W. Miller

\

Toledo

Bankers Bond Co.

Co.

as

dealer who

or

Paul I. Moreland

Memphis

„

Thomas Graham

^

Mayer

Gordon Meeks

.

G. H. Walker & Co.

Graf "

Rudolph J.

A.

J. W. Means

Chicago

Bullington-Schas & Co.
Collin, Norton & Co.

^

E.

Masterson

the

securities

instances

some

Kneeland & Co.
,

New York

C.

[n

Welsh, Davis & Co.
Holley, Dayton & Gernon
Trust Company of Georgia

Henry T. Mathews

St. Louis

Schmelzle & Co.

City, Okla.

Frank

un¬

benefit

client who desires to buy or

Minneapolis

Co.

will

stable

more

Chicago

New York V

Edward F. Goldsmith

and

Milwaukee

such

follow

act,

Okla.

Kobbe Gearhart Co.

R. Jeremy

the

Traders National Bank

Masterson

will

on

The increase in vol-

should

out
of

Denver

William A. Fuller & Co.

Huff, Geyer & Hecht Inc.
Smith Burris & Co.

Frank Ginberg

Weil, Roth & Irving Co.

C. D. Mahoney &

C.

permit

to

credit

which it has' been pointed

ume,

Paine, Webber, Jackson

Frank

indi¬

same

act

the broker

as

sells them.

Cincinnati

Earl M. Scanlan & Co.

George Geyer
Abraham G. Ghysels
_

well

C. L. Martin

W. A. Fuller

the
extend

to

purchaser. of

Jerry Marquardt

Chicago

,

are

that

on-

applies to the broker.

securities

C. D. Mahoney

William A. Fuller & Co.

Gearhart, Jr.

listed

Denver

Co.

The

Se¬

Detroit

& Curtis

Chicago
Chicago

Fred D.

Louisville

McCabe Hanifen &

W. M. Macrury

: Allentown
Nashville

brokers

Davenport, Iowa

Stanley McKie

se¬

stocks and bonds when banks

Changing

Watling, Lerchen & Co.
Vieth, Duncan & Wood

Robert D. Mannix

Chicago

exists

of

permitted to extend credit

York, N. Y.

George A. McDowell

Louisville

Association

type of security to the

W. E. McCabe

Pierce

& Beane

National

vidual who

A. M. Maclaughlin

Patrick B. McGinnis

which

Dealers, Inc., are placed
at a definite disadvantage when
they are not permitted to extend
credit
on
high-grade
unlisted

Chicago

Seligman, Lubetkin & Co.
Stein Bros. & Boyce

that

Therefore, all brokers,

present.

curities

Cleveland

,

Investment Bankers Assoc.

■

,

Bert F. Ludington

Chicago

Paul O, Frederick

Fuller

A

Chester A. Lucas

New Orleans

Paul C. Fredericks Jr

Jos. T.

the

Rap., Mich.
Memphis
Chicago
Chicago
Chicago
Chicago
Pittsburgh
Chicago

Prescott & Co,

L. E. Lubetkin

Chicago

Fisher;; vf;' Nat. Quotation Bureau, Inc.
Warren W.York & Co.

Charles F.

curities exchanges or members of

Paine, Webber, Jackson

L. Liston

Alden H. Little

Chicago

Co.

T. J. Feibleman &

T. -J. Feibleman

Co.

Moore Leonard & Lynch

v

Linder

Corwil

St. Louis

..

Co.

&

L.

&

Goldman, Sachs & Co.

whether members of national

John A. McGreevy

:

-'V.'V. Enyart, Van Camp Co.
V j «, H. M. Byllesby & Co.

Enyart

J. N. Faust

&

Smart

Brailsford

Lazar

D. Lee

& Curtis

Lynchburg
Chicago
Chicago

.

& Co.

Kneeland

W. J.

Cleveland

Russell M. Dotts

Fairman Co.

J. Patrick Lannan

Rapids

McDonald-Coolidge & Co.
Wm. J. Mericka & Co.

than

at

Gr'd

Blyth & Co.

Co.

securities

Chicago

Edw. J.

Tom S. Koehler

Knight

808)

page

much wider market for unlisted

a

Chicago

Otis

&

(Continued from

York

Chicago

W. T. Kitchen

W. Kingsbury

On Unlisted Securities

New Orleans

J.

Chicago
Memphis

Investment Bankers Assoc.

Joe H. Davis

•

Detroit

Charles A. Parcells Co.

C. Newton Kidd

Louis

Extension of Credit

Chicago, 111.

Kemp
B. F. Kennedy

Chicago

Davis

Robert D. Diehl

Pierce,

New York

Rhoades & Co.

A1

Neil De Young

Frank H.

Chicago, 111.
Chicago

Co.

Glen A. Darfler

Merrill Lynch,'

-V-

Kelly, x

Fenner & Beane

Chicago, 111.

& Co.

E. Wm. Darnstatter

E.J.

Tucson

Co.
Dahlberg, Durand & Co.
Langill & Co.

James C. Daly

Chicago
Chicago, 111.

Hicks & Price

P. J. Cummings

Henry Dahlberg

809

CHRONICLE

THE COMMERCIAL & FINANCIAL
.

CHICAGO,

AND SEATTLE

TO

PORTLAND,
Enterprise 7008

Enterprise

7008

1

810

THE COMMERCIAL

R. G. Randall

809)

page

Mason Moran & Co.

Chicago
Chicago, 111.

John R. Ratcliffe

Miami

Glenn Ravenscroft

Ravenscroft & Co.

E. P. Renier

Adams & Co.

Chicago

Carl H. Reusch

Fox, Reusch & Co.

Cincinnati

Utilities Need A War-Time

of

J. D. Rocamore

Wertheim & Co.

New York

J. C. Rogers

Hickey & Co.

Chicago, 111.

panies

Paul H. Davis & Co.

Chicago

Irving J. Rice
Henry J. Richter

Irving J. Rice & Co.,

St. Paul

Scherck Richter Co.

St. Louis

New York

would

Detroit

complaint.

Chicago, 111.

StanleyL.Roggenburg Roggenburg & Co.
Wm. C. Roney & Co.
Northern Trust Co.
Marvin Ruggles

John K. Roney

the

Cleveland

J. B. Hanauer & Co.

Newark

Joseph L. Ryons

Pacific Co. of Calif.

Los

Sam Sachnoff

First Natl. Bank of

Chicago

Angeles
Chicago

M. A.

M. A. Saunders

Co.

Memphis

i

Saunders

Earl M. Scanlan

Charles G. Scheuer

Julius A.

W. J.
Glenn

Jack C.

mained

aroused

Chicago

Carter H. Harrison & Co.

Chicago

times current

condition,

and

security

promoters

was

holders
of

these

economically
unjustified superholding companies.
Accordingly,
to

was

converted in¬

political issue, and when the
present Administration came into
a

of

its

early achieve¬
ments was adoption of the com¬
prehensive Public Utility Holding
power

30 to 40
earnings for stocks

like A & P and Woolworth.

the

the whole affair

count the future and pay

Chicago

sound

among

against

was

Baltimore

in

considerable resentment

businesses.

immediately exploited. Since
chain stores were a growth indus¬
try, the public was induced to dis¬

com¬

panies into bankruptcy, although
legitimate holding companies re¬

This idea of accelerating growth

Newark

•

1932 put some of these new

as

own

dizzy heights.

'The stock market crash of 1929-

the attractiveness of

stocks

profits in their

A lit-,

one

tie later, utility holding company
stocks had a similar play, as stat¬

Company Act of 1935.
Although
this Act, created primarily for the
protection of the public as con¬

Washington,D.C,

isticians pointed out the wonder¬
ful growth record of the industry.

many

Taking

create

Edward Brockhaus & Co.

Siegman

Cincinnati

R. W. Simmons

Lee

Alfred

Natl.

New

:

Chicago

Collins Norton & Co.

D. Smith

H. B. Smith

Chicago

Higginson Corp.
Quotation Bureau Inc.

E. W. Smoot

York

r

Kermit B. Sorum

Allison-Williams Co.

Minneapolis

Wm. Spanier

A. A. Bennett & Co.

Chicago, 111.

George Spaulding

Northern Trust Co.

Chicago, 111.

C. Springer

Merrill

Lynch, Pierce,

Fenner & Beane

Wm. P.

ed to

suddenly

was

Stifel Nicolaus & Co.

Shales

D. B. Sherwood

for

cause

su¬

public.
Thus, what were origi¬
nally true values were pyramid¬

But in the hectic 1920s

investing public

common

-New York

Rippel, Inc.
Mackubin, Legg & Co.
Clement, Curtis & Co.

Sennott, Jr.

little

five tiers of

or

Chicago, 111.
Chicago

Carl Marks & Co.

Springer

L. R. Staib

Geo. Eustis & Co.

Cincinnati

J. R. Stamp

Commerce Union Bank

Nashville, Tenn.

L. Montifore Stein

Bear, Stearns & Co.

Chicago, 111.

J. F.

Stephens

Barrett Herrick & Co.

Kansas

L. J.

Stirling

Hirsch Lilienthal & Co.

Chicago
Lynchburg
Chicago

Lud Strader

Scott Horner & Mason

Fred Straus

Straus Sec. Corp.

Robert

Strauss Bros.

Strauss

W. R. Stuart

City

Chicago
Chicago

A. A. Sullivan

Mason, Moran & Co.
Equitable Securities

New

John E.

F. L. Putnam & Co.

Boston, Mass.

William Sullivan

Sullivan Inv. Co.

Willis M. Summers

Troster, Currie & Summers

Sullivan, Jr.

York

advantage of this public
attitude, promoters like Insull,
Ilopson, Foshay and lesser lights
exploited the public crave for util¬
ity stocks by forming new holding

and investors, contained
praiseworthy provisions to
a higher«standard for util¬
financing and accounting, it

sumers

ity
also

set

out

confused

a

for dissolving

large part of the
holding companies of the country.
a

Invest. Dealers Digest

Fred Ungeher

W. M. Uphaus

Rogers & Tracy, Inc.
Bear, Stearns & Co.

Owen V. Van

Grand

Rapids'

utility stocks shows their value to
be lower than at any time

index

C. W. Weathers
Arthur Webster

E. W. Price Co.

J. H. Weil

Weil

1923-1940, except for 1935, when
Holding Company Act was be7
Congress, and for 1938, when
the year's low price about equalled
the present level.
Obviously, the
forced liquidation of holding com¬
pany portfolios under these mar¬
ket conditions offers the

of

substantial

holding

Indianapolis
City

not advised

L. A. Wingader
Lee Wolf
:

1

.*

*

.

John Nuveen & Co.

;V

Chicago,'111.

.

A. G. Becker & Co.

Chicago
Chicago

•

.

*

St. Louis

Warren W. York & Co.

Allentown

New York

M. Woolfolk

Zeigler
Israel Zippin

>

Zippin & Company

New Orleans
,

The utilities

as

to how the Act was

and

few

a

smaller

systems, were
disregarded.
In
some
cases, the companies. were
left entirely in the dark for a con*
siderable
period of time as to
discarded

or

whether the Commission approved
of any part of the plan submitted,
whether

or

its silence

interpreted

to

was

complete

as

be

disap¬

The

SEC's timetable, further¬
has been highly unstable in

the past. Plans submitted by some

holding

OVER-THE-COUNTER SECURITIES

companies: have evoked
affirmative action by the Com¬

mission

over, long periods of time,
witness the long-pending plan
of United Gas Corporation, while
as

others have been handled
fair

degree of dispatch.

until

I '

Mitchell & Company
.
.

..

.

•i-

: / *;«.

;•

Members

♦

.

.

,

the

120 BROADWAY
Tel. WOrth 2-4230

•
•

;

■

^

of

a

loomed

war

Atlantic

with

And not

did

the

SEC

begin 'really to "press" for a "rapid
compliance" with the "death sen¬

;•

-

Baltimore Stock Exchange

threat

the

across

Teletype NY 1-609

of the

of the Com¬

interpreted, all these plans,
with the exception of those sub¬
mitted by American Water Works

Chicago '

1

;

Counter firm, take pride in the part we
play .in
developing marketability—especially for inac¬

WHitehall 4-4970

Section 11

powers

proval.
-

MARKETS

Street, New York 5, N. Y.

of

securities.

be

no

70 Pine

prospect

owners

were asked, is
it true, to submit
voluntary * plans for compliance
with the Act, but since they were

to

Warren W. York

Co., Inc.

to

0

H.

G. A. Saxton &

loss

company

Kansas

Chicago, 111.
Chicago, 111.

^

com¬

fore

New Orleans

*

& Arnold

Woolfolk, Huggins & Shober
Dempsey, Tegeler & Co.

_

holding

the

St. LouisNew York

J. F. Tegeler

issues.

16

New York

F. C. Masterson & Co.

listed

of

stocks is currently below the

pany

more,

tive

value

average

lowest levels of the entire period

Dempsey, Tegeler & Co.
Hoit, Rose & Troster
City Securities Corp.

Chicago

trading markets in more than
200 issues, many of which are listed on the lead¬
ing Stock Exchanges, we, as an Over-The-

in the

.

1926-1931, while the

years

Robert A. Walsh

Carroll Ward

Robert

Maintaining

levels, Standard
of 8 operating

mission thereunder.

New York

MAKING

V

-.

Even at present
and Poor's index

Act, and the

Kneeland & Co.

<

the order of $5,000,000,-

on

000.

terpretation of

Enyart, Van Camp & Co.

Camp
B. H. Van Keegan

still be

Chicago, 111.

F. C. Woolard

'

time,
been some recovery in
values, but that loss would

has

market

Natl. Quotation Bureau Inc.

Nashville

R. Trigger

Young, Larson & Tornga

"death sentence." Since that
there

Louis E. Walker

Philadelphia

York

Section
11
of
the Holding
Company Act, which contains the

Chicago

:

Jack M. Bass & Co.

Louis, Mo.

only

Emporia

^

Kennedy & Co.

St.

confi-

not

der

Continental Casualty Co.

Buford G. Wilson

New

the

in

holding company but operating
utility securities. According to an
estimate of the writer, published
in Public Utilities Fortnightly of
March 4, 1943, investors had lost
some $6,000,000,000 as of Dec.
31,
1942, through SEC activities un¬

Donald F. Wales

New

Dempsey-Tegeler & Co.

undermined
investors

Kenneth Van Sickle Inc.

Chicago
Chicago

De

yet

A. C. Allyn & Co.

Wakeley

W ichita

Greene & Co.

not

T. M.

Sincere & Co.

J. Fv Tegeler

has

liquidation

Kenneth Van Sickle

Investment Bankers Assoc.

Wm. F. Thompson

SEC

actual

Four or five years' time has been
wasted, moreover, by the SEC in
"shadow boxing" with the hold¬
ing companies over the proper in¬

E. H. Welch

Herman Tornga

of

program

Jay N. Whipple
George H. Williams

York

have

ence

as

per-holding companies in one sys¬
tem, and each with its own bonds
and preferred stocks held
by the

there

Denver

Ernst & Co.

Joseph W. Sener

been

type

tion

with

sometimes

four

many as

long-term in¬
vestments, on the theory that in¬
vestment in good companies grew
more
or
less automatically at a
compounded rate, because these
companies reinvested part of their

,

New York

Valiquet & Co.

P. A. Schroeder
Alexander Seidler

1

this

Chicago

&

Dominion Sec. Corp.
Earl M. Scanlan & Co.

Walter F. Saunders

have

of

converted to

Gillis Russell & Co.

John J. Ryr.n

James N. Russell

been

companies,

the

the

of
holding company portfolios
through
"barrel-head" sales
of
operating subsidiary equities, the
recurring threats of such liquida¬

(Continued from page 782)
organization

holding
com¬
panies. The first of these, United
Gas
Improvement, organized in
1882, controlled properties located
largely in Pennsylvania and Con¬
necticut, and had all holding com¬

T. Leo Reynolds

forced

Moratorium On "Death Sentence"

Cedar Rapids

Corp.

Thursday, August 26, 1943
While

Attendance At The Convention
(Continued from

& FINANCIAL CHRONICLE

«

tence"

Bell Teletype NY 1-1227

provisions of the Act.

Since

NEW YORK 5, N. Y.

Pearl

Harbor,

when utilities have been
every

i

however,
straining

effort to meet war-expanded

demands

for service, they have
begun to feel the full brunt of the

SEC's authority under Section
of the Act.

tric utilities called upon to supply
close to 70% more power than in

Dealers In

the pre-war

period, but they

forced to do the job with

THROUGH WIRE SERVICE

-•

New
'

York—Chicago—St. Louis—Kansas City

*

*

reduced

Servicing

Over-The-Counter

SPECIALIZED SERVICE

Complete Trading and Statistical Facilities

Securities
from

services

STRAUSS

CHICAGO

i

u

4

Harrison 2075

war

industries.

In its

Share

report, Electric Bond
Company stated that
system employees in
States had joined the
And Elec¬

Nation's armed forces.

BLAIR F. CLAYBAUGH & CO.
Member Philadelphia Stock Exchange
Member New YoYk Security Dealers Ass'n

72

WALL STREET, NEW YORK 5, N. Y.

Tel WHitehall 3-0550

Syracuse

Tele. NY, 1-2173

Harrisburg

Pittsburgh

Own

Private

Wire

trical World estimates the electric

light and power industry had only
245,000 employees in 1942, com¬
pared with 270,000 a year earlier,
or a

decrease of 9%.

System

.

Yet, careful investigation in the
industry reveals that some 90%
of the work required to carry out

the

SEC's

still

Miami Beach

Teletype: CG 129

Correspondent in London
i

or

the United

to

BROS.

Board of Trade Bldg.

DIgby 4-8640
Teletype: NY 1-832 & 834

the

their

about 15% of

York Security Dealers Assn.

NEW YORK 4




&

Coast

coast

Broadway

left

of

close

latest annual

Over-the-Counter Securities

Members New

the

preceding year
employ, most of
them to enter the country's armed

in

32

of

of 1942, Consolidated Edison
reported that one of every six ac¬
tive employees on the payroll at
had

Dealers

a

As

man-power.

are

sharply

end

the

Offering to all Dealers

11

Not only are our elec¬

remains

electric

and

the fact

th^t

integration
ahead
gas

an

of

program

registered

utilities, despite
estimated 1,725,-

Volume

THE COMMERCIAL & FINANCIAL CHRONICLE

-Number 4206

158

811

OFFICERS 1937-1938

Treasurer

Arthur E. Farrell

Joseph Gannon

Laurence B. Carroll

Wm. Perry Brown

Ernest E. Blum

The pressure of war time activ¬
leaving the door open
plan.-,.The huge Electric ity - has forced' moratoriums on
Bond
and: Share
system,
with many of our normal peace-time
properties
scattered
throughout programs. Both the Commission
the
Uniteds States
and
South and the companies are greatly
America, has numerous issues be¬ handicapped at this time in deal¬
fore the Commission which have ing properly with the manifold
(Continued from page 796)
time devoted to the integration not yet been settled, since only problems involved in the enforce¬ national wealth at a furious rate
one
of its subholding companies, ment of Section 11 of the Holding
in order to win this war. We will
program
by utility employees
Moreover, war come out of it with more debt and
since the Holding Company Act National Power ,& Light, has made Company^ Act.
time conditions make it particu¬
real progress toward dissolution.
was approved would be on the or¬
more money than any other na¬
larly difficult for utilities to effect tion in
der of 5,000,000 man-hours, which
Furthermore, Cities Service, the
history. We cannot cancel
sweeping changes necessary to one
leaves somewhere around 45,000,- hybrid
oil and utility system,
against the other because the
carry out the "death sentence" or¬
000 man-hours of work still to be which would gladly get rid of its
debt is owed by all of us and the
ders. In many cases, sales of oper¬
done.
In other words, the work utility , properties if possible, re¬
money is owned by each of us.
ating subsidiaries could be made
still to be done under the "death cently received its "death
sen-Therefore, unless and until we can
only to municipalities .or other
sentence" activities of the SEC tence" order and doubtless will
reverse the process by which the
tax-free power districts or "au¬
would require the fulltime efforts present new proposals* to the SEC,
money was created, a great deal
thorities," but the burden of war of
of 22,000 utility employees for one its proposal of two years ago havt
it is going to seek—and findfinancing, and the pre-occupation
year, to say nothing of the time ing been ignored by the Commis¬
employment and a great deal of
of voters, make even such sales
Middle West is in the midst
of utility executives and commis¬ sion.
it will be in the hands of those
difficult.
sion personnel.
who will need intelligent and hon¬
And when it is of a comprehensive dissolution
While
the
present
improved est assistance in the search for
recognized that the war-depleted program, but important issues re¬
staffs of utilities, in addition to in¬ garding
"subordination" remain market for utility stocks might such employment. This will be
Columbia Gas & permit a few offerings of common the real; test for the securities
tegration^ work, niust devote even to be settled.
much more time to original cost Electric ;■ still awaits the commis¬ stock ^issues (the public sale of business.. If it takes proper ad¬
activities instituted by the Fed¬ sion's decision regarding separa¬ Idaho Power's common stock by vantage of this opportunity it can
eral Power Commission, the while tion of its gas and electric properr Electric Power & Light is ex¬ quickly regain lost caste as well
rendering
efficient and unim¬ ties. Standard Gas & Electric and pected shortly), only a few of the as cash. If it takes improper ad¬
paired service to our war indus¬ Commonwealth & Southern in re¬ great number of potential offer¬ vantage of the opportunity it may
tries, the magnitude of the triple cent months presented elaborate ings could be successfully mar¬ —and perhaps it should—be all
under present conditions, but legislated out of existence.
burden imposed upon them begins integration plans to the SEC, on keted
much
better
prices could
which hearings are under way. and
Job Number Five is a bit com¬
to take shape.
/
'
And in addition, there are a host doubtless be realized /in the post¬ plicated and probably will be un¬

400 man-hours of work on

the pro¬

has been expended by utility
employees' in the" first 20 months
following declaration of war by
this country, following Pearl Har¬
bor.
Based on this figure, a con^
servative
estimate of the total

gram

but

plan,
for

a new

.

.

•

,

This

burden,

moreover,

is not

by holding

borne

company perr
sonnel alone. Operating company
executives and department heads
also must contribute

the

long hours to

preparation of questionnaires,

of smaller plans

and problems de¬
manding attention.
result, there has been con¬
siderable delay on the part of the
Commission in considering pro¬
<

As

a

testimony.

tions, for the repurchase of securi¬
ties and similar matters, and in
some
cases ■; these
delays
have

exhibits,

briefs,;;and

adelphia and attend SEC investi¬
gations and hearings, whenever
the Commission sends for them.
Only recently, at the suggestion oj:
one of its examiners, the SEC de¬

permit "canned testi?
mony" to be submitted in lieu of
long oral presentation Of prepared
statements. This will save valu¬
able time, and is a step in the
right direction, but the load on
both the SEC and the utilities still
cided

.

to

will be tremendous,
s

Many dissolution plans are ap¬

proaching a critical point, and
many important decisions must be
made in the coming year.
North
American Company, for example,

proved costly to the companies in¬
volved, duetto subsequent .ad¬
vances
in the security markets.
Thus,

March 11, Electric Bond

on

for

$15,000,000

of

its

Regardless of the merits of Sec¬
tion

11, the enforcement of that
the

have

time and

more

devote to this

commercial

banker

over

in

every

America

will be
go

willing, if not anxious, to
out of the bond business and

back

into the banking business.
simply cannot do this unless
he either (1) collapses his deposits
and earning assets simultaneously
by selling the earning assets to
the depositors or (2) puts more
"margin" in his account. One or

He

war,

all

concentrated

should be

production
not be

should

hearings
the

over

the

those securities

Sounds simple

depositors.

to the point of

simple-mindedness1,
Well, it isn't, and it is
both
a
problem and an oppor¬
tunity for the securities business^
We

either

machinery.

of visible facts there is every rea¬

war.

A large part

had

is taking place in
the commercial banks. By the time

is

There

more

story and many
be

added

son

as

to

more

time goes on.

believe that the securities

to

business

faces

in which the

a post-war period
potential possibilities

ends

for constructive and profitable ac¬

their

tivity are

they will have in¬
deposits and their
earning. assets to such an extent
war

it

ever

greater than

anything

has experienced.

negotiations

and

of

higher than when operating utilities to
ships.

•

'

''

It

dissipated in end¬

transfer

efficiently

new owner¬

Canadian Securities

■

has

Bought

CLOSE MARKETS

wise, hearings began on Aug. 23
on the plan of the Associated Gas
& Electric's Trustees to merge the

in

top companies, recapitalize
them and similar proposals, as

UNLISTED

two

well

as

on

the Stix alternate

And Niagara

The

SEC lee'

handed down
and

-

opinion, Vv
appendices a
United,- Corr

Traders

—

Sold

Underwriters

Quoted

—

Distributors

m'-tV:/:: -:,:P
Direct Private Wire to New York

SECURITIES

—

Montreal

plan.

Hudson Power Cor¬

poration has proposed a sweeping
merger and recapitalization pro¬
gram
which; the: SEC doubtless
will take up after hearings-before
the
New Yo-k
Public Service
Commission have been completed.

s

in addition, just
52-page findings

which numerous
tiched, rejecting
; m's dissolution,




DIRECT
CvT

WIRE

FROM COAST TO COAST

LUCKHURST
y. /'

:

,

&

Tele. 1-1825

-

MILNER, ROSS 6- CO.
Members

CO.

Members New York Security Dealers Ass'n

60 Broad St.

New York 4, N. Y.

the

business.

securities

mone¬

we

of this process

creased

and

real job for

great rate in

wealth at

order to win the

a

a

just said that
our

stand

now

means

the present
chapters will
Noth¬
ing can be asserted categorically,
flatly and finally. But on the basis

doesn't it?

tized

matters

as

smooth functioning of the

the

less

energy

its

purely domestic the

During

energies

to

permission was sought,

post-war

sions, the courts and Congress, all

war

just submitted a voluntary
plan for creating a number of subholding companies and revamping
its
capitalization,
hearings on
which are to begin Aug. 31. Like¬

In

period, the utilities, the commis¬

this relatively simple

13%

postponed "for

be

duration."

the

question, the third in a series of
similar requests, was not forth¬
coming until July 2, by which
or

should

section

decision

69V2,

is

war

to

preferred problem.

advanced

the

war-time period?

on

had

..

When

of them

But the Commission's

stock

earn¬

commercial banks' earnings assets

around 61.

the

their

by forcing these sales during the

At that
time the 6 % preferred was selling

time

are

ing assets, the margin is their cap¬
ital, surplus, and undivided profits
and the debit-side of the ledger
is represented by their liabilities
to depositors.
'
;
-.
;
\

both of these will have to be done

stock in the open market.

on

ties in the account

dealers who specialize in Institu¬
tional business.
It is selling the

to

spend

the additional banking
business, in the shape of commer¬
cial loans, which will normally
develop out of the reconstruction
period.
Commercial
banks,
as
everyone
should know by this
time, are running the equivalent
of a margin account. The securi¬

dertaken only by

mission

to

to handle

period when some tax relief
be obtainable.
Is it fair to
penalize utility security holders

and Share asked the SEC for per¬

repurchase

they can sell more
stock—which is another

possible job for the securities busi¬
ness—they simply will not be able

war

will

the;

unless

capital

may

posals made for refunding opera¬

They are "on call" and must drop
their regular duties to go to Phil¬

that

330

Bay Street

Toronto Stock Exchange

Toronto, Canada

Phone: Waverley 1701

y

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, August 26,1943

officers 1936-1937

President.

President

Secretary

J.

Joseph W. Sener

G.

1st

Arthur E. Farrell

Daggy

.Treasurer

Vice-President

W. T. Patten, Jr.

Wm. Wardell Lewis

ADVERTISEMENT

National Security

Leon E. Day, Jr.

COMPANY

30 Federal St.

BS 566

Cyril M. Murphy

75 Federal St.

Howard S. Harris

'

Lester G. Bruggemann

v

(10)

.

Liberty 6190

CARR

10 Post Office Square

Peter Pielsticker

Chicago, 111.

.

R. Emmet Bradley

BS 259

CONNOLLY

&

24 Federal St.

William T. Childs

BS 553

(10)

Hubbard 3790

BS 128

LeRoy A. Wilbur

31 State St.

BEAR, STEARNS & CO.

ALLYN

Lafayette 4480

Robert List

(CHAS. A.) & CO., INC.
Sears Bldg. (8)
Lafayette 0695

David Kratzer (In service)

Wilfred N. Day

(A. C.) AND COMPANY,

100 W. Monroe St.
CG 940

(3)

Franklin 8400

CG 193

'

John N. Faust
BRAILSFORD & CO.

Dominic C. Cronin

Liberty Bank Bldg. (2)
46
Washington 4970

(3)

State 6706

Edward V. Vallely

CO.
BU

(3)

State 0933

BLAIR & CO., INC.
135 S. La Salle St.

Thompson M. Wakeley

DOOLITTLE, SCHOELLKOPF &

1279

Patrick J. Cummings

INC.

DAY

Edgar R. Smith

135 S, La Salle St.

CG

(9)

Buffalo, N. Y.

William E. Horan

Howard W. Cornelius

Jefferson K. Hosher

James J. Lynch

John M. O'Neill

'

Wm. D. Kerr

State 0101

Erling J. Hansen

Walter J. Connolly

E. E. McClure

135 S. La Salle St. (3) '.
State 3100

Robert B. Krell

Capitol 0425

SHEA & COMPANY

^VcociNC^t^

M

Plaza 8400

(WALTER J.)

'

.

CG 1194

(4)

Edward P. Renier

Malcolm L, Saunders

STEIN BROS. & BOYCE

(2)

S. La Salle Street

CG 361

148 State St. (9)

Ralph F. Carr
William S. Thompson

(3)

,

BACON, WHIPPLE & CO.

ADAMS & CO.

RAYMOND & CO.

(9)

COM¬

&

John A. Anderson

231

Hubbard 6442

BS 328

39 S. La Salle St.

•

.

& CO.

(RALPH F.)

'

Franklin 8467.,

P. Warren Donovan

Milton Van Riper

BA 393

BS 596

Madison 1400

& CO.

Dayton P. Haigney

'

M. David Jones

6 S. Calvert St.

(DAYTON)

ANDERSON, PLOTZ
PANY, INC.

Bldg. (2)

BU 104

;

HAIGNEY

Hubbard 5330

Light St. (3)
BA 288
Lexington 3400

M. & T.

Richard Copeland

(10)

22

TRUBEE, COLLINS & CO.

William M. Ferris, Jr.

BALDWIN & COMPANY

MACKUBIN, LEGG &

Joseph W. Sener

Traders Association BOOSTERS

Boston, Mass.

Baltimore, Md.

;

John French (N. Y.

208 S. La Salle Street

C.)

CG 95

(4)

State 9868

Edward M. Burke
Carl Hartwig

Cecil O. Condit
Martin Lazar

In

our

39-bh Year

BYLLESBY (IL 1VI.)' & CO.
135 S. La Salle Street (3)
CG

SPECIALIZING
I

RALPH F. CARR & CO.
BOSTON 9, MASS.
Boston

Hubbard

-

New

-

Bell Teletype

—

8711

120 S. La Salle Street (3)
Central 5690

CG 1122
1c

-

Harold Barclay

BONDS AND STOCKS

HAnover 2-7913

6442

State

CASWELL & CO.

INACTIVE AND UNLISTED

York

273

Arthur E. Farrell

'

Elmer W. Hammell

CENTRAL REPUBLIC

Boston 328

Particularly of

-v-

COMPANY

-v"-

209 S. La Salle St.

NEW

ENGLAND

CORPORATIONS

CG 43

(90)

Franklin 5610

-

Edde K. Hays

NEW ENGLAND

iiiit

Inquiries Invited from Dealers and Financial Institutions
Maintaining

e x

a

Retail

with Distribution

in New

CLEMENT, CURTIS & CO.
•134 S. La Salle Street

Department

CG

England

Paul

AND

SECURITIES

(3)
Randolph 6800

Yarrow

William J. Sennott, Jr.
Frederick J. Cook

R

LOCAL

214

i INCORPORATED

Sears

Building

CRUTTENDEN & CO.

Boston 8

209 S. La Salle St.

WALTER J. CONNOLLY & CO.

CG 35

INCORPORATED 1923

24 FEDERAL STREET. BOSTON. MASS.
TELEPHONE

HUBBARD

8790

TELETYPE

BS

128

We have Trading: Markets in

Mackubin, Legg & Company
ESTABLISHED 1899

if

,

,

BOSTON EDISON

NEW ENGLAND LIME CO.
SUBMARINE SIGNAL

INSURANCE

NEW YORK STOCK EXCHANGE

75 FEDERAL STREET, BOSTON
Private New York Telephone—Rector 2-5035




STOCKS

MEMBERS

DAYTON HAIGNEY & COMPANY

NEW YORK CURB

A;V':;V:4:-J

BALTIMORE STOCK EXCHANGE

EXCHANGE (ASSOC.)

(4)

Dearborn 0500

^

-

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

813

National Security Traders Association BOOSTERS
11 S. La Salle St.

Central

John D. Dunbar

CG 660

James H. Murphy

William

E.

(3)

FULLER

Bernard R. Keegan

S. Barnhart

Street

231

Jerome

Audran

DEMPSEY-DETMER & CO.

J.

Cavanaugh

(3)
Randolph 2100

CG 1166

GIBSON

DOYLE, O'CONNOR & CO., INC.
135 S. La Salle St. (3)
Dearborn 9600

3

(4)

FORGAN

&

S. La Salle Street

135

Thomas D.

CG

Loren A. Cochran

(3) ;

100 W. Monroe Street

(3)

CG 965 -Andover 2424

;

-

J. Thorsen

CG

:

:

„

J.

";Vv;

CG

321

Central

CG 982

1700

Central

Elmer

Lannan

(3)

8900

>

OTIS

GREENEBAUM INVESTMENT

CO.

&

Powers

W.

Thomas J. Cline

(3)

W.

Scott

TROXELL

&

MINTON,

INC.

State 0400

209 S. La Salle Street

4

CG

Giesen

864

Arthur

Dearborn
W.

SINCERE

CO.

Edwin
'

(4)

1421

Parker
COMPANY

S. La Salle Street

State 2400
II.

Edward

T. Kitchen

,

AND

CG 252

Field Bldg. (3) '
CG 417 Central 7400

Glen A. Darfler

J.

SILLS,

(4)

231

Mathews

Norman

&

St.

Walter Aim

Burch

INC.

4421

Mortimer

John Arthur

Frank G.

WYANDT,

Andover

7744

A.)

Salle

J.

;

Owen II. Wyandt

(DAVID

CG 730

Wabash 8686

640

Patrick

&

135 S. La Salle Street

Salle St.

208 S. La

Bldg. (4)

.

Vincent T. Kane
SCOTT

Lowell Niebuhr

CO., INC.

& CO., INC.

(3)
Randolph 6960

CG 878

•

NOYES

&

Henry T.

(3)

Henri P. Pulver

ERNST & CO.

Franklin 7667

(3)

Edward L. Kent

Jean A. Horacek

.-W;

(LOWELL) & CO.,

120 S. La

Francis C. Woolard

105 W. Adams Street

(4)

CO.

&

,

GOODBODY & CO.

Charles E. Enyart

231 S. La Salle Street

NIEBUHR

1251; Andover

Board of Trade

Milton R. Blohm

>

' J

(C. L.)

120 S. La Salle St.

Ralph M. Bloom

,

(WAYNE)

KNEELAND

Harold C. Nelson
L.

SCHMIDT
•

F. Girard Schoettler

Thomas R. Montgomery

INC.

9760

W. Adams Street

105

CO.

CG 115 Andover 3000

ENYART, VAN CAMP & CO.,

(4)

INC.

James J. O'Connor

Casserly, Jr.

State

HUMMER

Leo J. Doyle

Fred J. Casey

709

Star C. Koerner

Salle Street

,

Edward Roob

(4)

State 1700

(4)

Central 9020

Harry M. Brown

MITCHELL, HUTCHINS & CO.

Larry A. Higgins

Edgar A. Peck

GLORE,

S. La

CG

State 1790

,

CG 1200

208

(W. C.) & CO.

231 S. La Salle Street

Jack R. Dempsey

CG 840

Cunningham

CG 1094

(3)

1520

(DISCOUNT HOUSE OF)

CHANDLER

135 S. La Salle St.

Andover

231 S. La Salle Street

Larry McFarlane

WARREN &

IIULBURD,

La Salle Street

1399

SALOMON BROS. & HUTZLER

Gilbert Egbert

231 S. La Salle St.

Joseph T. Fuller

|

Donald B. Stephens

Howard C. Morton

Forrest Laidley

Marquardt

F.

J.

State 0577

Herbert A. Hutchinson

St.

(4)
Randolph 5686

Bernard

CG

(3)

Robert F. McMaster

Salle

Thomas E. King

Wallace T. Combiths

CG 405 ;; Franklin 8622

S. La

CG 972

William A. Fuller

(3)

T. Leo Reynolds

v:

CG 414

HICKS & PRICE

Dearborn 9200

CG 146

DAVIS (PAUL II.) & CO.
10 S. La Salle

(WILLIAM A.) & CO.

209 S. La Salle Street (4)

Murray C. Mathews

105 S.

105 S. La Salle St.

=

RYAN-NICHOLS & CO.

& CO.

John C. Rogers

4424

ADVERTISEMENT

McMASTER HUTCHINSON

Hickey, Jr.
William J. Lawlor, Jr.

Hitchcock

John W. Eustice

.

ADVERTISEMENT

Matthew J.

FIRST LA SALLE CO.

Fred R. Tuerk

James

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

Walter W. Cruttenden

P.

(4)
-

Welch

O'Brien

/

Albert Leritz

n

CO.

Ray Hofer
FAIRMAN

.

,

39 S. La Salle Street

(FRED W.)

208 S. La Salle St.

CG 537 Randolph

& CO.

•;

(4)

CG 1368

(3)

Randolph 5360

Herbert

H.

La

Salle

Street

State

HARMET

(A. A.)

& CO.

(Not

CG 1247

CORPORATION

208 S. La Salle Street

(4)

(4)

231 S. La Salle St.

(4)

Central 9744

CG 175

Alfred A. Harmet

Richard W. Simmons

George W. Smith

John J. Colnitis

FIELD

BLDG.

HICKEY & CO.,

135 S. La Salle St.

Randolph 3941

v

(CARL)

208 S. La Salle

•'

*-

;

'

i

,

&

COMPANY, INC.
105 W. Adams St.

CG 697

(3)

State 5770

.A

;

t.

4151

BROS.

STRAUSS

Paul J. Skepnek, Jr.
Fred E. Ungeher

State 6693

Board of Trade

Robert

CG 129

William C. Kegley

;

THE
y

(3)

1200

STIFEL, NICOLAUS

Andrew R. Williams

William P. Springer

>

State

Andover

Ralph S. Longstaff

(4)

CG 1124

(3)
Randolph 8800

917

878

Donald B. Sherwood

& CO., INC.

135 S. La Salle St.

,,

CG

S.

Elmer W. Erzberger

State 0860

Linder

Herbert J. Burke

MARKS

CG 1234

(3)

:

INC.

Franklin 4500

CO.

&

La Salle Street

120

CG

(90)

ROGERS & TRACY, INC.
120 S. La Salle Street (3)

Paul W. Spink
v

SMITH, BURRIS

&

LEE HIGGINSON

INC.)

Andover 1430

JACKSON

209 S. La Salle Street

Evar L.

FAROLL BROTHERS

CG 156

WEBBER,

CURTIS

(3)

6001

Harvey G. Leason

Kant

Thomas S. Koehler

208 S. La Salle St.

39

CG 993

James J. Blake

4068;; ;

PAINE,

LEASON & CO., INC.

FIELD
v \

C

i

,

Bldg. (4)

Harrison 2075
Strauss

(Continued

on page

814)

BUILDING'

* 1

^

1

\

1

V 1•

•

•

'

.,k

An

address

'

.

of

£ '*

,

'

i

•;

,

prestige is

here have found that

!

•

'

-

'*'** *

.

The firms listed

sound investment.

a

'i.

v";

headquarters in the Field Building, located

in the heart of the financial

district, pay dividends in convenience,

goodwill, and distinction.
«

'

'

'

••

1

*

'

; -*
,

•

•

t;

i v

'

•

1' y

-

\- \

»

'

1

,'

'

'

■

•<

.

FINANCIAL HOUSES IN THE FIELD BUILDING
Bache, J. S. & Co.

Fiscal

Bacon, Whipple & Co,

Glore, Forgan & Co.

National

Bear, Stearns & Co.

Gofeni& Glossberg

Nuveen, John & Co.

Blair,

Harriman Ripley &

Bonner & Co.

Service

Corp.

Mullaney, Ross & Co.

Otis

Co., Inc.

Triangle

Harris, Upham & Co. i

Ranson-Davidson

Blyth & Company, Inc.

Hickey & Co.

Rollins, E. H.

Byllesby, H. M. & Co.

.

Carlton, F. A. & Co,
Cavanee,

_

&

Financial

Dempsey-Detmer

Devine,

Shields

Speer,
Stein

La

Corp.

Corporation, The

Commercial

Scott

Ladd, Henry

•Central-Illinois Securities

Chicago

)

Clark M.

Hirsch, Lilienthal & Co.

Johnson, Joseph M. & Co.

•

■%

:

Jacoby, Louis

Kidder, Peabody & Co.

r

.

Brown Brothers, Harriman & Co.

&

Co.

i

.

Chronicle

LA

NATIONAL

•

.

Lazard Freres

&

C. J. & Co.

Dickson, R. S. & Co.

,

&

Company, The

& Sons

Wyandt, Inc.
&

Co.

H. C.

& Sons Co.

& Roe

Swift, Henke & Co.

•

Lillig, George J.

'•

Lizars, Rawson & Co.

Thomas, E. W. & Co.

Timm, Robert F.
Utility &

Martin, Burns & Corbett, Inc.

Industrial Corp.

Mabbett, R. H. & Co.

Doyle,

O'Connor & Co.

Eastman, Dillon & Co.

Mason, Moran & Co.

Fahnestock &

Valiquet

Van Ingen

Milwaukee Co., The

Co.

.

v

>

&

,

Co.
& Co., Inc.

.

Weeden &

Co.

Fiduciary Counsel, Inc.

Molloy, Edward P.

Welsh, Davis & Co.

First

Moseley, F. S. & Co.

Woodruff, Hayes & Co.

ol

For

Michigan Corp.

Complete Information9 Address ROBERT CARPENTER, Manager

135 So. La Salle Street




AND

OPERATED

"

Teter, Lucius

Lewis, Benjamin & Co.

Dovenmuehle, Inc.;

OWNED

■

Straus Securities Co.

BANK

Co.

['
i

-

Inc.

\

Stranahan, Harris & Co.

Forge,''John G. & Co.
SALLE

,

Co.

&

Blair Securities Corp.

Boettcher & Co.

Securities,

BY'THE

ESTATE

OF

Chicago

MARSHALL

FIELD

t1

814

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, August 26, 1943

National Security Traders Association BOOSTERS
'

ADVERTISEMENT

ADVERTISEMENT

(Continued from page 813)
THOMAS

(E. W.)

1st Nat'l Bank

& CO.

135 S. La Salle Street

CI

(3)

CG 1795 Franklin 2434

CG 1660

Earl

C.

UNION

Power

EUSTIS

(4)

(GEO.)

Glosser

.

.

CI 366

FIELD, RICHARDS & CO.

Randolph 2977

Union Central
CI 150

Green

Chester

VALIQUET & CO.

T.

(W. E.)

Dixie

Terrell

Charles G.

James E. Madigan

Scheuer

Main 1627

V-

1268

Andover

Dixie Terminal

0. D. Landis

CI 68
ZIPPIN & COMPANY, INC.
208 S. La Salle St.-(4)

O'Connor

L.

Pohl

& CO.

Bldg. (2)

W.

Cleveland, O.
BALL, COONS

HALL

Union
385

(CLAIR S.)

S.

(W. E.)

Jack

CI 586

Siegman

Oilier

& CO.

Bank

Bldg.

(2)

Main 2560

James M. Hutton, Jr.
Arch F. Montague

Clifford H. Grischy

Ray J. Iloran

George C. Riley

Thomas J.

C. Kenneth Smith

Hughes

Hawkins

Union Commerce Bldg.
CV 383
Cherry 3800

Bldg.

(14)
<

,

William A. Williams

(14)

PRESCOTT

&

CO.

Guardian Bldg. (14)
CV 97
Prospect 6300
Cor win L. Liston

Lloyd

O.

Birchard

QUINN

(W. P.) & COMPANY
Union Commerce Bldg.
(14)

(15)

*

Cherry 6000
George E. Jaffe

George R. Williams
ROBBINS, GUNN & CO.

Bldg. (14)
Cherry 7445
V j

McDONALD-COOLIDGE

&

CO.

Union Commerce

Union Commerce Bldg. (14)
CV 490
Main 6400

Morton A. Cayne

B.

J.

William T. Bobbins

McPolin

R. II.

CURTISS, HOUSE & CO.
Union Commerce Bldg. (14)
Main 7071

Clemens E. Gunn

Diehl

Walter J. Carey

MERICKA

(WM. J.)

SCIIULTZ (L. J.) & CO.
Union Commerce Bldg.

& CO., INC.

Union Commerce Bldg.
CV 594
Main 8500

Geggus

Bldg. (14)

Cherry 4978

George B. Ralston

Edward B.

M.

Cherry 7563

COMPANY

Union Commerce
CV 348

IIUTTON

S

PRATT & WILLIAMS

CO., INC.

CAYNE, RALSTON & CO.

'':/w

A. Kruse

Daniel

Erb

Hanna Bldg.

Bowden

CO.
i?

-1'

CO.

&

John

LIVINGSTON, WILLIAMS &

(14)

&

Terminal Tower (13)
CV 496
Cherry 0260

Prospect 7800

George F. Oswald

First Nat'l

C.

Paul

Henry J. Arnold

(2)

Union Commerce Bldg.
CV 584
Cherry 6025

p.

E. A. King

OTIS

Frank J. Schulte, Jr.

S. Hall, Jr.

Edward Brockhaus
C. H.

& COMPANY

Union Trust Bldg. (2)
CI 156
Main 1433
Clair

Trust Bldg.
Main 1300

CV 83

§

CO.

&

II.)

(14)
Cherry 1920

,

George F. Opdyke

Loth Newburgh

Howard L. Davidson

(MAYNARD

Citizens

Thornburgh

■

Green

Robert L.

>

,

925 Euclid Ave.

*

LEDOGAR-IIORNER

Wesley C. Thornburgh

Herbert M. Oettinger

(EDWARD)

MURCH

(14)

William A. Koeth

M.

& CO.

,

Bldg. (14)

Main 6800

Harry Gawne

Norman V. Cole

Randolph 4696

CI

Albert B.

(2),,
Parkway 6820

CI 260

K.

Main 4884

Israel

BROCKHAUS

CV 67

GREEN, WOLFE & CO., INC.
N. B. C. Bldg. (14)
;
Cherry 6035, -

Herbert A. Jones

Cincinnati, O.

^

Russell

George H. Phillips

Zippen

Union Commerce

■

Charles S. Nadeau

F.

18 East 4th St.

(W. D.)

4070

Richard A. Gottron

(2)

6515

THORNBURGH (THE W. C.) CO.

Edward W. Back

1811

Main

;
-

MERRILL, TURBEN & CO.

Bldg. (14)

Roderick A. Gillis

Terminal Bldg.

381

Main

James N.

;

Thomas G. Horsfield

(II. L.) & CO., INC.

264

Mericka

Edward E. Parsons, Jr.

?

,

(4)
GRADISON

1

Union Commerce Bldg.
CV 565
Cherry 5050

Robert A. Jameson

Leo J. Nussloch

WEBBER-SIMPSON & CO.

7060

GILLIS, RUSSELL & CO.

Sten^er

William

(2)

CI 494

208 S. La Salle St.

CV

J.

Carl II. Doerge

(13)

(2)

Edward

Albert J. Valiquet

Main

Union Commerce

POHL & COMPANY, INC.

:

& CO., INC.

18 E. 4th St.

Central 4402

Albert J.

CI

FOX

(3)

588

EMERSON

Cherry 6422

Bldg. (2)

Main 3776

Tower

Roy E. Bock

NELSON, BROWNING & CO.?
Carew Tower

Arthur A.

CG

CV

Main 0138

Roy C. Nelson

(3)

135 S. La Salle Street

Terminal

;

Arthur V. Katz

CO.

Frederic F. Latscha

Salle Street

V

: -

William

*

Lee R. Staib

SECURITY CO.

CG 81

&

489

(2)

ADVERTISEMENT

DODGE SECURITIES CORP.

Harry C. O'Brien

(2)
r,
Cherry 4070 '

CI 560

CI

ADVERTISEMENT

O'BRIEN

Carew Tower

Clancey

18 E. 4th St.

Central 5775

29 S. La

Bldg. (2)
Parkway 2300 >

284

W.

THOMSON & McKINNON
231 S. La Salle Street

ADVERTISEMENT

KATZ AND

CLANCEY (W. P.) & CO.

(14)

CV 255

(14)

Main 6865

Leo J. Schultz

*

/

George Placky
WITT (JOHN P.)

& CO. /"'•
Union Commerce Bldg.
(14)

Main 7834

B ON D S

John

P. Witt

<;

13

Denver, Colo.
Public

Utility

COUGHLIN AND

Security Bldg.

Industrial

HID KEY

Railroad

135

SOUTH

&

LASALLE

DN 296

C □

|

Tabor 4154

.

Walter

J.

Edward

STREET

Coughlin

B.

Arthur J.

IIOGLE

CHICAGO

Municipal

COMPANY

(2)

Coughlin

O'Connell

(J. A.)

& CO.

Equitable Bldg. (2)

Teiephone-^-Randolph

8800

Main 3161

Teletypes—CG 1234.1238

:

C. Emmett Wilson
William P. Sargeant

Karl

A.CALLYN^COMPANY

;

Incorporated

L. Mayer

*

Carl E. Stitt

McCABE, HANIFEN

AND

COMPANY

CHICAGO

Security Bldg. (2)
Cherry 4509

DN 360
NEW YORK

BOSTON

MILWAUKEE

-

DES MOINES

Edward A. Hanifen, Jr.
William E. McCabe
OTIS

CO.

&

1st Nat'l Bank Bldg.
DN 280
Main 0251

(2)

,

John T. Webb

We Would Like

Fifty'Three Years

Whether it's

to

Hear It

.

.

PETERS, WRITER &

.

CHRISTEN SEN,
an

odd lot

Whether it's listed

or

or

a

block

817—17th St.
DN 290

over-the-counter

INC.

(2)

Main 6281

Gerald P. Peters

1

of

Harold

Because

.

.

.

Emii

Our Trading Department has many dealer outlets

INVESTMENT BANKING

looking

for

municipals,

industrials,

rails,

utilities,

foreigns,

real estates and bank and insurance

stocks.

Western

an

important factor in the

market.

for

is always looking

executed

on

the

Stock

Ryan

(EARL M.) & CO.
Colorado Nat'l Bank Bldg. (2)
Main

90

Earl M.

SIDLO,

Scanlan

New

York

and

Chicago

Cruttenden & Co.
;

ST. LOUIS




•

,

Members
and

CHICAGO

r

First National Bank Bldg. (2)
DN 63
Tabor 6271
F.

Roberts

Chicago 4, Illinois Dearborn 0500

U. S.

DN
*

Matlock

STONE, MOORE & COMPANY !

New
York
Stock
Exchange
Chicago Stock Exchange

209 South la Salle St.,

<

...

Woodford A.

INCORPORATED

v

Exchanges

Malcolm

Stifel, Nicolaus & Company

!

V

3211

SIMONS, ROBERTS

& CO.

interesting situations.
Orders

B.

Robert D. Mannix

Our Underwriting Department

®1943
«0981

Gerald

Writer

Christensen

SCANLAN

DN

Our retail distribution is
Middle

D.

W.

CG 35

Nat'l

580

James

Bank Bldg. (2)
Keystone 2395

C. Moore

Ernest E. Stone

William J. May

,

•

!ta>«

v.*~~JUL

<.•«<*•

[r

,i

„

'•'•'■

Volume 158

■/'..

Number 4206

'

X.

""

THE COMMERCIAL & FINANCIAL CHRONICLE

815

:

OFFICERS 1935-1936

Herbert H. Blizzard

Thomas Graham

National

ADVERTISEMENT

First Nat'l Bank Bldg.
DN 490

(2)

William

:;-

Amos C. Sudler

Security

Bldg.

Frank H. Kemp

Murel J.

Security Bldg.

Penobscot Bldg.

Ray

C. Edwin Mercier

(2)

H.

KENOWER

Penobscot

DE 475

5368

&

CO.

Jerry C. Vasconcells

Bldg. (26)

r,

Penobscot Bldg.
DE 75

Snowday

Sancrant

SMITH, HAGUE
Penobscot
DE

427

WATLING, LERCIIEN & CO.
Ford

& CO.

Bldg.

Bldg.

DE 105

(26)

Cherry 5535

(26)

Randolph 5525

Bert F. Ludington

Hal II. Smith, Jr.

L.

(Chuck) Meier

J.

(Continued

Norman Humphries

:

Gareau
on. page

816)

& CO.

Bldg. (26)
Cherry 6700

John K. Roney

Harold G. Montgomery

Melvin G. Kingstrom

(26)

Warren T.

6101

Olson

Wynn F. Wakeman

Ji JL

LOT of ivater has flowed over the dam

Robert Wallace

Verral

since

,

was

weeks

ten

founded

on

before Pearl Harbor when our firm
the premise that the concepts of our

3670

Cadillac

Rather

Simonds
Pierce A. Hastings
W.

the

COLORADO

Porter

Claude G.

Everham

A.

Edward

•

Welch

L.

association with the members of
Traders

Association

we

have

The high

of ethical business conduct and the helpful

assistance rendered by our

contemporaries have been

inspiring.

Waller

Herbert

our

Security

further strengthened in our beliefs.

standard

SECURITIES

Richard W. Pender

through

National

become

George A. Reuter
Edwin

occurred to dim that faith.

the times nothing has yet

(26)

Bldg.

Despite the turbulence of

forefathers shall prevail.

EARL M. SCANLAN & CO.

SIMONDS & CO.

189

Ralph

(26)

Cherry 2540

Sattley

Moreland

Paul I.

DE

Clifford

V.

Roland

Davis

Terry

Hale

Randolph 3855

BAKER,
Buhl

(26)

Randolph

& CO.

Penobscot Bldg.
DE 431

William C. Roney

VERRAL, INC.

Penobscot Bldg.

Detroit, Mich.
ALLMAN, MORELAND

&

(26)

DE

DE 167

Reginald MacArthur
NORDMAN

E.

Buhl

Randolph 3262

Jones B. Shannon

.

& SONS

Cadillac 4262

RONEY (WM. C.)

John B. Kenower

Walter E. Olin

(E. H.)

DE 145

George J. Elder

MILLER,

Leppel

INCORPORATED

5752

George A. McDowell

Paul E. Youmans

Main

(26)

(26)

Randolph 5625

ROLLINS

(2)

VASCONCELLS, HICKS & CO.

(A. II.) & CO.

Charles C. Bechtel

Bertrand

Cadillac

Sullivan

75

Bldg. (26)
Cherry 6363

141

DE 206

Buhl Bldg.

Tabor 4264

ADVERTISEMENT

VOGEL

(II. V.) & CO., INC.

Hammond

CO.

DOLPIIYN

Clark

DN 586

DN

SATTLEY

Penobscot Bldg.

mercier, Mcdowell &

SULLIVAN & COMPANY

John J.

&

Joseph F. Gatz

Don F. Doolittle

Phillip J.

Moore

(CHARLES A.)

Don W. Miller

Paul Hardey

John C. Wright

ADVERTISEMENT

ADVERTISEMENT

PARCELLS

Gilbert S. Currie

Keystone 0101

Treasurer

Vice-President

Clarence H. Staples

Henry J. Arnold

Harry A. McDonald

(AMOS C.) & CO.

2nd

Security Traders Association BOOSTERS

ADVERTISEMENT

SUDLER

President

Vice-President

1st

Secretary

Wynne Wakeman

DENVER

Stanko

Marion J.

;

Thomas F. Paddock

Ralph Rotsted

CLAIR S. HALL & COMPANY

CAMPBELL, McCARTY & CO.,

.

CINCINNATI, OHIO

UNION TRUST BUILDING

"

Main 1433

-

CI 156

INC.

Buhl

Bldg. (26)
Randolph 8400

DE 366

William
<

Philip

McCarty

A.

1 1

:

Watson

CRAY, McFAWN & CO.
Ford Bldg.
DE

(26)

Cherry 6828

540

WemUri of Chicago Stoch

-

Cray

Cloud L.

SJ LA

209

Joseph J. McFawn

SALLE

STREET

Cxchangs

Brokers and Dealers in

;

CHICAGO

•

nr^i

George C. Marxer
Henry

Over the Counter Securities

VanderVoort

Ray P. Bernardi

MICHIGAN

OF

FIRST

CORPORATION
Buhl

.

Since1924

.

(26)
Randolph 2055

Bldg.

DE 292
Frank

P.

Douglas
Clarence

Meyer

ADAMS & CO.

Campbell

H.
A.

Horn

;

'

231

& Tract

Rogers

So. La Salle Street

inc.

CHICAGO

HASTINGS, H. RUSSELL
National Bank

120 South La Salle

Bldg. (26)

Cadillac 2815
MANLEY

92

(26)
Randolph

.

■

■,

Street, Chicago

Telephone State 4151
Specialists In

(M. A.) & CO.

OVER-THE-COUNTER

Buhl Bldg.
DE

,

4

SECURITIES

Direct

1890

wires

to

our

Correspondents

•

Milton

A. Manley

TELEPHONE

McDONALD-MOORE & CO.
Penobscot
DE 478

Bldg.

(26)

Cherry 9565




STATE

0101

'

BELL TELETYPE
CG 361

—

CG 362

EASTMAN,
Members New

DILLON & CO.

York Stock

Exchange

BAKER, SIMONDS & CO.
Members Detroit Stock Exchange

THE COMMERCIAL & FINANCIAL CHRONICLE

Thursday, August 26, 1943

National Security Traders Association BOOSTERS
|
1

•'

(Continued from page 815)

Grand Rapids,
TORNGA

(2)

Circle Tower

98261

JK 181

(4)

Lincoln 5535

IP 489

*

(5-3680)

KEMP

,

7th

St.

(14)

647 S. Spring St. (14)

Vandike 2377

LA 201

William P. Bunyan

(THOMAS) & COMPANY

210 W. 7th St.

(14)
Trinity 8481

LA 48

Thomas S. Pierce

<

1

Louisville, Ky.

F. Thomas Kemp

are

with

pleased to announce the association
us

in

our

:

Kansas City, Mo.
COMMERCE TRUST

Trading Department of

621 S. Spring St.
Trinity 1694

(Bond Dept.)

FENNER

CHARLES A. PARCELLS & CO.

^

916 Baltimore Ave.

LA 796

PENOBSCOT

639

DETROIT,

BLDG.

626 S.

LA

Randolph S626

Teletype DE 206

PRICE (E.

W.) & CO., INC.

1004 Baltimore Ave.
KC 375

(6)

*

*

1

;

| Frank J, Edmonston

Michigan Unlisted Stocks and Bonds

.

■

WAHLER, WHITE & COMPANY
Victor 1421

Robert'

Keif

Leonard

A.

.CALIFORNIA:

.

X

X

Member Detroit Stock

1051 PENOBSCOT

Exchange

ME 283T-

AKIN-LAMBERT CO.

Lansing

5-3637
>

i

Gordon Crossett

Joe E, Denham
^

;
;

-

■

.

;

<

(In service)

|

Miami, Fla

Mutual 5231

CORRIGAN & COMPANY

639 S.

MM 80

Madison 2266

|

;

j

,

"

George M. Corrigan
Edward L. English -

Clifford E. Poindexter

Thomas

V

3-2137

t

Spring St. (14)

LA 35

}

Security Bldg.. (32)

TURNER-POINDEXTER & CO.

639 S. Spring St. (14)
LA 23
Vandike 1071

BLDG., DETROIT 26, MICH.

Battle Creek

Angeles, Calif.

;

^

Joe II. Davis

Sam Green

Los

"

Memphis, Tenn.

Joseph L. Ryons
Joe Gallegos
'

LA 382

ALLMAN, MORELAND & CO.

I

J

FIRST (THE) NATIONAL BANK
Madison at Second (1)

PLEDGER & COMPANY, INC.
639 S. Spring St. (14)

White

v 4

J. Hugh Miller

Dwight Bldg. (6)'
TRADING DEPT.

X/'■'}

Trinity 5761

William H. Jack

:

i

:

Albert C. Brocar, Jr.
John M. BurgeX

623 S. Hope St. (14)
LA 17
Michigan 6611

I. Webster

Jackson 0181'

Andrew P. Gies
Marion H. Cardwell

&

PACIFIC COMPANY OF
.

;

(J. J. B.) & SON
Jefferson St. (2)

W.

LS 284
:'

-

Miles A. Sharkey
,

Price

Earl W.

PRIMARY MARKETS

419

Spring St. (14)

68

;

MILLIARD

(14)

Mutual 4331

Victor 2195

William J. Dyer
Arthur

X-

DURST, INC.

J. Roger Coolidge

MICH.

.

O'MEL V£N Y-WAGENSELLER

'

Jackson 0226

Wood Hannah

PIERCE,

BEANE:

Donald E. Summerell

(6)

186

Thomas Graham

Frank J. Ward

SNIDER

Victor 3143

KC 262

Members of Detroit Stock Exchange

&

523 W. 6th St.

Miss Emma M. Hall

PRESCOTT, WRIGHT,

Kentucky Home Life Bldg. (2)
LS

MERRILL LYNCH,

10th & Walnut Sts. (6)
Victor 7500

FRANK HL KEMP

(14)

William J. Dunn

COMPANY

^5

BANKERS (THE) BOND CO.,
;X INC.■
:X,

LONGAN, DUNN & PHILLEO

We

Trinity 4911

Oliver B. Scott

,

II. George Carrison (On leave)

Cecil W. Weathers

West

Joseph G. La Puma

Bldg. (1)

Clyde C. Pierce
•

Neil Be Young
Herman Tornga

210

LA 500

(CLYDE C.)

Barnett Nat'l Bank

ADVERTISEMENT

BARBOUR, SMITH & COMPANY WYETII & CO.

CORPORATION*

CORPORATION

G. R. Nat'l Bank Bldg.
84

PIERCE

SECURITIES

CITY

ADVERTISEMENT

Jacksonville, Fla.

Indianapolis, Ind.

Mich.

BE YOUNG, LARSON &

GR

X ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

,

j

•

Stephen C.- Turner

A. Akin

,

^

<

Herbert N. Crowder

,

Milwaukee, Wis.
loewi & co.

(2)
Daly 5392

WISCONSIN

-

••

(TIIE) COMPANY

110 East Wisconsin Ave.

MI 291-

Members Cleveland Stock

■;

:

i

: " \ :

J

.....

5

••

.

ALLISON-WILLIAMS-' .'V
Northwestern Bank

and

•

COMPANY

Offering

Underwriters

(1)

"

Minneapolis, Minn.

Exchange

Established 1899

,

Daly 0525

".XXX XX/

V-.v;

OTIS & CO.

1

;

225 E. Mason St.
MI 488

Distributors

of

Government, Municipal and Corporate

service

an

in

experienced trading and distributing

Ohio

Corporation and General

MP 163

Oscar

Market

Bldg. (2)

Atlantic 3475

M.

•'

*

Bergman-

?

Kermit B. Sorum

Municipal Bonds; Stocks arid Land Trust Certificates

'

BIGELOW-WEBB, INC.
First Nat'l Soo Line

Securities

MP

124

Bldg. (2)
Bridgeport 5161

William J. Lau
Union Commerce

Terminal Tower

.

Building
I

29 Broadway

CLEVELAND 14
^

Telephone CHerry 0260

York

Chicago

Cincinnati

Denver

-

First Nat'l-Soo Line
MP

Teletype CV 496 & CV 497'

,

BANK OF

MINNEAPOLIS

WHitehall 4-3640

Direct Private Wire
New

FIRST NATIONAL

NEW YORK 6

Telephone MAin 8500

CLEVELAND 13

to New York

•

Toledo

178

Bldg. (2)

Main-7111

Alphonse J. Grun

■

,

.

Alfred N. Plumley
KALMAN &

COMPANY, INC.
McKnight Bldg, (2) X X X

MP 120

Atlantic 5313

Joseph R. Miller

PIPER; J AFFRAY & HOPWOOD

Michigan

115 S. Seventh St.

and General Market

Municipals
DOUGLAS H. CAMPBELL

•

MP

INVESTMENT

177

(2) ■ XX
Bridgeport 4141

Carroll H. Babcock, Jr.
:
Grant A. Feldman
^

>

Coldevin

FRANK P. MEYER

rice

SECURITIES

C. Rudd

'

(R. m.) & co.

-

•

; ;
-

;

i
:

•

Roanoke

Bldg. (2)
Bridgeport 1262

Jf

r

Robert M. Rice

Corporate Bonds

and Bank Stocks

Rand Tower' (2)-V •'
MP 52 ' Bridgeport 3283

CLARENCE A. HORN

.

JlRST OF JVflCHIGATfCJOSPORATIOD
,■

Member Detroit Stock Exchange

DETROIT

1500 Buhl Bldg.

Randolph 2055




i

WOODARD-ELWOOD & CO.

asrew
65

New

McDonald-Coolidge & Co,
Members Cleveland Stock Exchange

yorx

1001 UNION COMMERCE BUILDING

Broadway

DIgtoy 4-8101

Walter P.

CLEVELAND 14, OHIO

D'ANTONI

Space/

Orleans, La.
(B. S.)

& CO.

American Bank Bldg. .(12)
NO 165
Raymond 9977

Stanley 's. Carothers

*

KINGSBURY & ALVIS

Hibernia Bldg. (12)
NO 382
Canal 1655

"'

1

-

,

v :

^["Yin'l

k.

Volume 158

THE

Number 4206

frlfflftill»Vl|r*f'»H "-y^-^

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COMMERCIAL & FINANCIAL CHRONICLE

817

OFFICERS 1934-1935

Secretary

President

Vice-President

Treasurer

.

Ludlow F. North

National

'

_

::vA. Lester Alvis
J. Wallace

~-r

;r

•.::/ ••" ■v;

Kingsbury

'NO 189
m;

52 William St.

BONN

.

BURNET

(W. T.)

V:';

ADVERTISEMENT

;

,

11

Wall

& CO.

Broadway (5)

72 Wall St.

(5)

Hanover 2-9400

Bonn

William T. Erickson

ESTABLISHED

v

•

Whitehall 3-0550

•':

2-5872

ANGELES

Bell System

on page

818)

14,

■'^3:;::

INDIANAPOLIS 4.

:

We

:

specialize in all types of
Indiana Securities

s

417

639 So. Spring Street

LOS

(Continued

,1

1921

Pacific Coast Securities

'•

1-2178

City Securities Corporation

New York City

Circle

Lincoln

Tower

5535

CALIFORNIA

Teletypes—LA 23 and LA 24

J. J. B. HILLIARD & SON

AIGELTINGER & CO.

William St.

(5)

,

Gleason, Jr.

ACKER (JAMES H.) & CO.
25 Broad St.
(4)

76

72 Wall St.

NY

^

AKIN-LAMBERT CO.

All Investment Trust Issues

Hanover

(5)
Hanover 2-2280

1-106

Stephen R. McDonald

Cortlandt 7-0744

Whitney Bldg. (12)
NO 383
Raymond 9931

(In service)

(5)

Pounded

Bowling Green 9-3530

Members

Frank W. Aigeltinger

New

York

1872

Stock

Exchange

Members Chicago Stock Exchange >
Members New York Curb Exchange

Associate

ALBERTS

(C. A.) & CO.

70 Wall Street
NY

Southern

(5)

Hanover 2-7025

1-2310

California

419 W.
Bell

ALL LOCAL SECURITIES
KENTUCKY MUNICIPALS

St. (4)
/ a
Hanover 2-2600

Herbert Allen

Private

Frank H. Blair

r

Turner

Irving Koerner
A.

Lawrence

AMES

William S. Ridley

FLORIDA BONDS

Cusack

ASSOCIATION

Wall St.

DISTRICTS
Statement available

on

request

ALL ISSUES

(5)

Charles W. Goodeve

.

Firm Bids

—

Firm Offerings

—

Quotations

BANKERS BOND coT

the

Edwin F. Peet

(J. S.) & CO.

Incorporated

Inquiries Invited On Local Securities

36 Wall Street

NY 1-167

(5)
Digby 4-3600

Kentucky Home Life Bldg., Louisville 2, Ky.

Alfred B. Averell
Arthur E. Schwartz

BENDEX, LUITWEILER & CO.
52

STOCK

Rector 2-1545

NY 1-69

BACHE

>

us

Bought and Sold
COUNTY

MUNICIPAL

Miller

ASHPLANT (F. B.) & CO.
2

Write

or

AMERICAN TURF

(5),
Rect8r 2-7231

AMOTT, BAKER & CO., INC.
150 Broadway (7)
NY 1-588
Barclay 7-2360
John

Telegraph

Wren

(A. E.) & CO., INC.

John T.

Wood, Walker & Co., N. Y.

Poindexter & Co.

Two Wall St.

NY 1-1045

to

LOS ANGELES, CALIF.

Harry A. Michels
v.

-

wire

Telephone,

"

C. Merritt Coleman

&

BRIDGE REVENUE BONDS

1-1017

F. William Harder

Long Distance 197 & Postal Phone

Active Markets In

Stocks—Bonds

ALLEN & CO.
30 Broad

Louisville, Ky.

Hilliard Bldg.

Jefferson St.

System Teletype—LS 284

Chester A, Alberts

NY

St.

Wall

NY 1-501

(5)

INVESTMENT

Clyde C. Pierce Corporation
Long Distance 47; 5-3680

•

Bell Teletype JK 181

Hanover 2-8820

Stanley, C. Eaton

THOMAS
WILLARD
H.

E.

W.

C.

P.

McNAIR

BOHNERT

LEWIS

JACKSONVILLE

INVESTMENT

DEPT.

GRAHAM, Mgr.

WOOD

DEPT.

HANNAH, Asst. Mgr.
KING

•CHARLES C.
♦P.
J.

M.

D.

CONWAY

PAISON

HOWARD LOUDEN

*On Leave—V. S. Armed Forces

Joseph Hecht
Cornelius Lipsky
Frank McGivney

Edward

Flotkin




>

CLAYBAUGH (BLAIR F.) & CO.

David A. Pincus

NY 1-886

WHEELER & WOOLFOLK, INC.

F. Wesley

■

ADVERTISEMENT

CLARK (CHARLES) & CO.

Capt. Morris. W^ Newman
•; (On war duty)

M. B. Wheeler

ii

NY

St.

NY 1-690

ADVERTISEMENT

.,

(W. E.) & CO.

(5)

Whitehall 3-3414

Wesley T.

•'r:'t:#|v

Wm.' Perry Brown
;■■ £/
Jack Kerrigan
f
•;•*.'
J. Charles Breaud, Jr.

.

BOLAND, SAFFIN & CO.

120

Magnolia 7211

i

'

ADVERTISEMENT

NY 1-535

NEWMAN, BROWN & CO,, INC.
326 Hibernia Bank Bldg. (12) -

.

J. Earle May

Henry J. Arnold

Security Traders Association BOOSTERS

J.

ADVERTISEMENT •»;/ "■

,,

W. W. Cruttenden

v

I..

Branch Office:

ST. PETERSBURG

JA 0226-7-8

L. D. 238-9

{
'

THE COMMERCIAL

& FINANCIAL CHRONICLE

Thursday, August 26, 1943

ADVERTISEMENT

(Continued from page 817)
Edwin

Jacobs

David R. Mitchell

George Dedrick
William G. Carey
Richard Shipman
CLELAND

D.)

(JAMES

COMPANY
65

NY

(6)

Broadway

Whitehall 3-9895

1-115

James D. Cleland

Walter C. Kruge

CO.

COLLIN, NORTON &
30

Pine

St.

NY 1-865

(5)

Bowling Green 9-2432

Howard E. St. John
Harold

B.

Smith

Dealers in

LOUISIANA, MISSISSIPPI and
OTHER SOUTHERN MUNICIPALS

NEWMAN, BROWN & CO.
INC.

326 Hibernia Bank Building

V

NEW

ORLEANS, 12

Long Distance 101

Teletypes NO 189 & NO 190

B. S. D'ANTONI & CO.
Investment

Securities

AMERICAN BANK BLDG.

NEW ORLEANS 12, LA.
Telephones RAymon4 9977
Teletype NO 165

Members
New

Orleans Stock

'

Exchange

:

■

Specialists in State of Louisiana
and City of New Orleans

*

JEFFERSON
STANDARD

FRUIT
and

NEW

other

S.

D'Antoni

local

S.

securities.,

BANK

Sold

Stanley

COMPANY

CORPORATION

SS

&

ORLEANS
Bought

Blaise

Municipals

Trading markets in
LAKE
SULPHUR

•

<•

STOCKS

Quoted

Carothers

Erwin

R.

Schweickhardt

MUNICIPALS
WHEN YOU THINK OF

Tennessee, Mississippi & Arkansas
FIRM BIDS

—

FIRM OFFERINGS

Detailed information

BOND

on

—

QUOTATIONS

LOUISIANA & MISSISSIPPI

request

THINK OF US

DEPARTMENT

THE FIRST NATIONAL BANK

KINGSBURY & ALVIS
Telephone LD 311

—

New

Teletype ME 283-4

Quotations and Active Markets

Orleans,

La.

Jackson, Miss.

on

FLORIDA

WISCONSIN

SECURITIES

MUNICIPAL BONDS

Participating Distributor^ and Dealers in

THE WISCONSIN COMPANY
110

EAST

"WISCONSIN

AVENUE

General Market and Local Unlisted Securities
Milwaukee 1

Corrigan

&

Company

(Formerly Corrigan, Miller & Company)

Security Building

MIAMI 32, FLORIDA
Bell Teletype

MM-80




Telephone 3-2137 & L. D. 52

Branch

MADISON

Offices

OSHKOSH

WAUSAU

Volume

i'

*•

-v

.

..

.

,

.

•

.

.

.

_•••

.

;

,.t,

,

-

'

..

t

.

;

,

•

..

MITCHELL

NY

1-1227

32

NY

Worth 2-4230

120 Broadway

(4)
Digby 4-8640

Broadway
1-832

Robert

(In service)

TROSTER, CURRIE & SUMMERS

Strauss

74 Trinity

(WILLIAM F.) & CO.
Hector St. (6)
-YYvV

MOORE
2

-

4-0238

Whitehall

F.

William

STRYftER

St.

Broad

NY 1-1582

Moore

Elbridge

QUOTATION

NATIONAL

50

•,

Willis M. Summers

(4)

(5)

Hanover 2-7900

Maracjhe

duty)

Thomas Greenberg

WERTIIEIM & CO.
120

(5)

Broadway

NY

VAN TUYL & ABBE

NY 1-1499

1-911

1-1693

John

Hanover 2-6622

(5)

Rector 2-2300

Rocamora

D.

James Currie, Jr.

Hanover 2-3970
Smith

II.

St.

J. Ilarold

72 Wall St.

& BROWN

Wall

49

Place (6)
Hanover 2-2400

NY 1-376

HICKEY

&

NY

Lt. Belmont Toubin (on war

William V. Frankel (In Service)

VILAS

CO.

&

Clarence S. Unterberg

John Ilcck

Joseph F. Donadio

Mitchell, Jr.

(C. E.)

Broadway (6)
NY 1-1666
Bowling Gr'n 9-3565

Arthur J. Burian

Alfred I. Abelow

UNTERBERG
61

(5)

Cortlandt 7-1364

Abraham Strauss

Irving L. Feltman
Cornelius B. Sheridan
C. Benjamin

TOWNSEND, GRAFF & CO.

STRAUSS BROS.

Broadway (5)

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

COMPANY

&

120

^ '

;•

Association BOOSTERS

National Security Traders
ADVERTISEMENT

810

i

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

158

•

E.

Milton Pinkus

Richard

James I. Brennan

:

Everett
F.

Van

Stanley M. Waldron

Tuyl

(Continued

Abbe, Jr.

on

820)

page

BUREAU INCORPORATED
'

St.

46 Front

Whitehall 3-8330

NY 1-1900

Louis

Walker

E.

;

-?V

,•

y/YV j;\Y

Lt. Graham Walker

NEWBURGER, LOEB & CO.
40 Wall

NY

T. J. Feibleman & Co.

'

St.;(5):
Whitehall 4-6300

1-2033

David Goldstein

v.fbyi

,

CARONDELET BUILDING

,

NEW ORLEANS

A Harold F. Rees

PAINE, WEBBER, JACKSON &
Broad St.

NY

(4)
Hanover 2-5540

1*4600

Established

Lewis

David J.

V

•«

'J4*'

Harry L. Arnold

'

•

'

'!

'

••

Bell Teletype

Raymond 3329

Co.

&

NO 95

1922
" "*/

'

\ '

t'P {'V1'

-

41

'

Street, New York 4

30 Broad

Ernest A. Dahlgren

1

Ernest N. Robb

STREET

BROAD

NEW YORK 4, N. Y.

\'jf

;V- ".y!

:•

.-V-'

Telephone
PLUGFELDER, BAMPTON &
61

r-Y.

'

.

NY 1-493

Broadway (6)

NY

Digby 4-4933

1-310

/

.

UNLISTED

William II. Pflugfelder

(W. C.) & CO., INC.

PITFIELD

30 Broad St.

Industrials

INACTIVE

-

Oils

*

Utilities

*

..

Grace

Irving P.

& CO.

(B. W.)

PIZZINI

:

(4)
Hanover 2-8770

1-1979

NY

55

•'

Bell Teletype

BOwling Green 9-4433

RUST

-

12, LA.

Telephone

qALLEN

CURTIS
25

Orleans Stock Exchange

Members New
;

Broadway (6)

NY 1-1063

BowlingGreen 9-6400

Winthrop Pizzini
W. Gurden Ilalsey
B.

it

Wilfred G. Conary, Jr.

■

McWilliam

B.

Culver

•V».C

QUINCEY (CIIAS. E.) & CO.
25 Broad St. (4)
Pa vis

A.

JOSEPH McMANUS & CO.

& CO.

RANDOLPH
2 Rector St.

NY 1-158

Digby 4-2960

Armistead Randolph

Members

& CO.

(J. K.)

Chicago

Broadway (5)/
1-714
Rector 2-4500

120

Oliver A.

Corporation Bonds

.

New York Curb

NY

Stock

Exchange

Exchange

Kimberly
39 BROADWAY

ROGGENBURG & CO.

NEW YORK 6

Telephone

NY

Digby 4-2290

Stanley L. Roggenburg

||§i||||

V. Loeliger

(J. F.)

Rector 2-1545

Two Wall Street

1-1610

Harry F. Roggenburg
Fred

F. B. Ashplant & Co.

Teletype

Broadway (6)
NY 1-1928
Whitehall 3-3840
29

SAMMON

Municipal and

Government,

(6)

Lt. Peyton

RICE, JR.

—

2-4410

Hanover
Frank

"■CANADIAN

5,IN.

NEW "YORK

Bell System

& CO.

Y.

Teletype—NY 1-69

(6)

2 Rector St.

NY 1-1388 Bowling

Green 9-3575

John F. Sammon
N. J. O'Connell

SAXTON
70

Pine St.

1-609

NY

(5)

Whitehall 4-4970

Stolle

Carl

/

(G. A.) & CO., INC.

CANADIAN SECURITIES

•

Arthur Bertsch
Frank Warner

WTalter Johnson
William

,

.

■

We solicit inquiries in all unlisted

!

SCIIWABACHER & CO.

(5)

Utility

stocks

of

bonds

the

and

preferred

utility operating companies.

Industrial

Municipal

DIRECT PRIVATE WIRES TO

(L. D.) & CO.

(5)
Whitehall 4-7970

Pine St.

NY 1-2218
Lee D.

Public

Government

John D. Hines

30

in

particularly

Cortlandt 7-4150

NY 1-928

SHERMAN

securities

STOCKS

BONDS

C. Orton, Jr.

14 Wall St.

Unlisted Securities-

Nelson Douglass & Co., Los

Mining

Corporation

Rogers and Tracy, Chicago

Angeles

Robert C. Buell and Co.,

Scherck, Richter Company, St. Louis

Hartford

Sherman

Hugh Devlin

Traded in American Funds

Irving Stein
SMITH
52

NY

(HART)

William St.
1-395

Eastman, Dillon & Co.

& CO.

(5)

Hanover

W. C. Pitfield &

2-0980

Wm. Hart Smith

William Eiger

Joseph

P. Simmons

STEINER, ROUSE & CO.
25 Broad St. (4)
NY 1-804
Hanover 2-0700
Edward S. Ladin




30 Broad Street

Phone:
HAnover 2-8770

Montreal
St. John

Co., Inc.
Teletype:

NEW YORK 4

NY 1-1979

Toronto

Vancouver

Ottawa

Halifax

Kingston, Jamaica

Members

N.

Y. Stock

Exchange

Philadelphia

15 Broad Street, New York 5,

BRANCHES

Philadelphia

•

Chicago

*

Reading

h

N. Y.

Bell System TeL NY 1-752

Tel. BOwling- Green 9-3100

Moncton

London, England

N. Y. Curb Exchange

.

Stock Exchange

a

i

4

'

Easton

,

•

Paterson

,

,

•

Hartford

THE COMMERCIAL & FINANCIAL CHRONICLE

820

Thursday, August 26, 1943

National Security Traders Association BOOSTERS
WYETII & CO.

(Continued from page 819)
WITKOWSKI
25 Broad

NY

(JOHN)

St.

40 Wall St.

&* CO.

NY

(4)
Hanover 2-4994

1-1211

ADVERTISEMENT

ADVERTISEMENT

ADVERTISEMENT

1-481

¥

ADVERTISEMENT

(5)

Florida Bank

OR 10

Wilbur Wittich

5161

PH

14 Wall St.
NY
-

(5)

Philadelphia, Pa.

RIPPEL (JULIUS A.), INC.
744 Broad St.

NK 294

Allison W* Marsland

BARNES

(2)

PH 347

CROUTER, BODINE & GILL
Packard
Locust

(2)

1606 Walnut St. (3)

Fidelity-Phila; Tr.
PH

V

Pennypacker 8200

COMPANY, INC.

Harold F.

¥1528 Walnut St. (2)

„ALL
Omporlanl

.<
w

184

Pennypacker 9500

(W. H.)

•

BUCKLEY BROTHERS

^STOCKTON

• SAN JOSE

\
>

V

■■

f

*

BIDDLE

MARKETS

^AKERSFIELD

X\&&
:

.

I

...

■"

•;

BUTCHER & SHERRERD

300

v

GERSTLEY, SUNSTEIN

(2)

213

Pennypacker 2700

Pennypacker 9400

:

e,j

F

Montgomery Street

Bernard H. Tobias

Ill

SAN

^

SUTTER

5t

CO.

FRANCISCO

Rittenhouse 9555

Alfred W. Tryder

225 S.

4

15th St.

PH 428

Associate
SAN

Our

FRANCISCO

Distributors of

Bernard V. Tattersall

Rittenhouse 6200

EXCHANGE

M. Wm. Goodman

Trading Department Maintains Markets in

HENDRICKS & EASTWOOD'

Securities of the Pacific Coast
TELEPHONE

GARFIELD

4460

BELL

(2)

Pennypacker 5360

HARPER & TURNER, INC.
1411 Walnut St. (2)

Members

STOCK

'

HALL, TATTERSALL & CO.

STREET

Corporation and Municipal Securities

Municipals

CO.

(7)
Pennypacker 0534

PH 188

Underwriters and

New Jersey

&

St.

William J. Nichols

ELWORTHY

650 S.Spring Street

Offices in Principal California Cities

Broad

PH 591

James J. McAtee

(2)

S.

(2)

Rittenhouse 0172

GREENWOOD (II. T.) & CO.
123 S. Broad St. (9)

LOS ANGELES

SAN FRANCISCO

•

■

Commercial Trust Bldg.
PH 426

LOS ANGELES STOCK EXCHANGE

BEACHV®

LONG

(2)

FOGARTY, FRANK J.

SAN FRANCISCO STOCK EXCHANGE

BEVERLY HILLS# #PASADENA
LOSANOeTes®
# riverside

A

& CO., INC.

Pennypacker 8700

Walter D. Fixter

6300

Members

SANTA BARBARA

M.)

Francis M. Roberts, Jr.

John F. Weller

PH 4

1508 Walnut St.
PH 574

(E

Robert McCook

CO.

BIOREN & CO.

Ban kamerica Company

-

S. E. Cor. 15th & Locust Sts.

Rittenhouse 4488

1500 Walnut St.

V

J

&

Carl Necker

X

# FRESNO

(MONCURE)

Charles A. Schaufler

>

(2)

Rittenhouse 2580

v

1520 Locust St. (2)
PH 586
Pennypacker

"1

SECURITY

-

\

?
J

PH 265

FITCH

(2)

Almon L. Hutchinson

INVESTMENT

SAN„ PRANCISCO
► OAKLAND

1529 Walnut St.

R. C. Fernon

-

'

&

Ellwood S. Robinson

Edward J. Caughlin

SACRAMENTO

70

George H. A. Andress

1500 Walnut St. (2)
PH 16
Pennypacker 8328

CALIFORNIA

PH

-

,v\;yr *¥•:-:•

(A. WEBSTER)

1421 Chestnut St.

Pennypacker 8300

Benjamin A. Brooks
# RENO

DOUGHERTY

:•

¥

-

Walter II. Schumann

Scattergood

0: N. E. Cor. 15th & Locust Sts. (2)

& CO., INC.

Bldg. (9)
Pennypacker 4646 ¥¥

299

Leo M. Dolphin

BROOKE, STOKES & CO.

E. Arnold Service

■■■'£

v

PH 30

Rittenhouse 0730

BATTLES &

BELL

Bldg. (2)

6770

Joseph O. Barnes

Richard W. Reward

| COVERING '

¥

.

DOLPHIN & CO.

BOENNING & CO.

A. M. Barnes

PH

Rittenhouse 3717

& LOFLAND

1420 Chestnut St.

Market 3-5331

Exchange Bldg. (2) -.¥

73

Alfred J. Willis

Pennypacker 6161

II. II. Blizzard (on war duty)
Henry B. Gurney, Jr.
*
Thomas J. Joyce

Newark, N. J.

Cortlandt 7-6080

1-920

160

|

(II. M.) AND CO.

J. Gentry Daggy

BLIZZARD (HERBERT H.) & CO.
123 S. Broad St. (9)

F. Monroe Alleman

WQOD, GUNDY & CO., INC.

Stock
PH

Whitley

Bldg.

Loomis C. Leedy

John Witkowski

BYLLESBY

Thomas B. Krug
Frank L.

LEEDY, WHEELER & CO.

Whitehall 4-0650

ADVERTISEMENT-

-

Russell M. Dotts

Orlando, Fla.

TELETYPE

INC.
SF

Packard

488

PH

262

Bldg. (2)

¥¥:•/

*

Rittenhouse

1332

Frederick S. Fischer, Jr.

HORNBLOWER & WEEKS
•

1429 Walnut St.

(2)

Locust 6800

WE LIKE

Joseph A. Mc Namee
Robert M. Iloldsworth

Great American Industries

JANNEY& CO.
1529

Julius A.

Rippel, Inc.

DON'T YOU?

-

*

Walnut St.

PH 80

-

(2) ¥' ¥¥¥¥. '

Rittenhouse 7700

George J. Muller ¥.¥¥'¥
KENNEDY AND CO.

Circular and

Newark

Land Title

Earnings Statement Available

PH 380

Bldg. (10)

Rittenhouse 3940

¥

Geo. II. Williams
744 Broad Street

New

MArket
York

Phone

REctor

3-5331

L. D. SHERMAN & CO.
Members N. Y.

2-5344

Teletype

—

Chestnut St.

(2)

Locust 6226

30 PINE STREET

NK 294

1431

Security Dealers Ass'n
NEW YORK 5, N. Y.

Tel. WH 4-7970

Bell

]

LAIRD, BISSELL & MEEDS

Teletype NY 1-2218

Norman A. Lafferty

Cornelius Kelley

MACKEY, DUNN & CO., INC.
123 S. Broad St. (9)
PH

588

Pennypacker 2600

•

Harry Shevlin
MARVIN & CO.

DEALERS

UNDERWRITERS

v

BUSINESS

ESTABLISHED

Lincoln-Liberty Bldg. (7)

1924

¥ PH 233

Rittenhouse 1310

Edward F. J.

¥
Clarke¥:*¥*¥.'¥''¥

George. W. Dart

State and

Municipal

MILLER

FLORIDA

,¥

,

MUNICIPAL

BONDS

1

.

(9)': '

Pennypacker 1570 ; ¥
1 ¥.' ¥¥¥,-

R. Conover Miller

BONDS

¥;

i

(E. W. & R. C.) & CO.

123 S. Broad St.

PH 84

'

•;

George S. Compton
v■

V"••

••

■; ■

'¥•

■;

•

.

■

..y.v.,..

.

MONTGOMERY, SCOTT & CO.
123 S. Broad St. (9)
Pennypacker 7400

;

Harry S. Maneely
Russell A. Harris

MORRISSEY

UIABLES CLARK & CO.
Members New York Stock Exchange

Florida Bank

72 Wall Street

123

NEW YORK 5




Broad

9

Telephone Kingsley 2400

Teletype NY 1-106

PH 279

Building

Wm.

ORLANDO,
Bell

Teletype—OR

10

J. McCulIen

FLA.
*

v

¥

Rittenhouse 8500 '

Frank J. Morrissey

Street

PHILADELPHIA

Telephone HAnover 2-2289
Bell System

South

(F. J.) & CO.

1510 Chestnut St. (2)

LEEDY, WHEELER & CO.
Bong

Distance

27

NASH
1421

PH

(H. N.)

..-.¥;

& CO.

Chestnut St. ¥2)
257

Locust

Harold N.Nash

1477

I
¥

4

«V JtfiWw-

twyWto^y*U-U*J^A

,

ust&i'ya*

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

National
ADVERTISEMENT

!

Security Traders Association BOOSTERS
ADVERTISEMENT

■

RAMBO, KEEN, CLOSE &;
KEENER, INC.' -:

ADVERTISEMENT

FUSZ-SCHMELZLE & CO.

Pittsburgh, Pa.

Boatmen's Bank Bldg.

r

1518 Locust St.. (2)
:> ' '
.PH 63
Penny-packer 2800

YOUNG & CO., INC.

7..L'

,

:

Edmund J. Davis

:

;

Russell W. Schaffer

SL 591

!

Peoples Bank Bldg. (22)
PG .488
Court 3100

t.

ROLLINS

'

Ralph R. Smith

(2)
; ;
Pennypacker 0100

i

407 North 8th St. (1)

j

SL 144 ■' Garfield 0727 '

[

Broad St.

123 S.

PH 538

|

(9)

Kingsley ,0650

!

:

•'

>

R. Emmet Byrne

SL 593

Ralph Deppe

Y

.

SECURITIES

Edward D. Jones

Central 7600
Y

,

(Continued

j Herman J. Zinger

E. Coit Williamson

Railroad, Public Utility and Industrial

'.

(!)

V

|

•

Robert A. Walsh

i

"

■

705 Olive.St

Jerome F. Tegeler

schmidt, poole & co.

,

(EDWARD D.) & CO.

JONES

DEMPSEY-TEGELER & CO.

1528 Walnut St.

.

William J. Blake

St. Louis, Mo.

INCORPORATED

PH 268

UNLISTED

■

& SONS

(E. II.)

(2)

Central 2614

Firmin D. Fusz, Jr.

rY

: / -

821

We

-

are

interested

in

block

securities either for

on page

our

through

822)

of

offerings
account

own

listed

and

unlisted

for distribution

or

organization.

our

sheridan, bogan co.
1616 Walnut St.

(3)

"

•

,

"

Kingsley 4400

ESTABLISHED 1914

.

<'"J

.

i

William Ward, 3rd
smith

(e. w.) cov
Lewis Tower (2)

MEMBERS

'*
Pennypacker 8383

PH 25

Boenning & Co.

major herbert ii. blizzard, a. €.

■

,

,

PLEASURE IN

TAKES

MEMBERS

ANNOUNCING THAT

PHILADELPHIA

NEW

YORK

PH 220

miss elizabeth k. scott

& CO.

(GEO. E.)

Stock Exchange

■

EXCHANGE

PHILADELPHIA

.

3, PA.

r

FENnypacker 8200

Bldg.:; (2)

Rittenhouse 0308 >Vv,;

Race

.

Bell

New York Telephones:

System Teletype

3266

30

PH

mr. henry b. olrney, jr.

Thomas J. Love
;

'

••'v

i •

' * «.;•

-

.

Y

O

V'Y

,:V-'.4. '*

•>

COrtlandt 7-1202

*
.

.r

(ASSOCIATE)

1606 Walnut Street

Joseph Markman
SNYDER

STOCK

CURB EXCHANGE

'

WHitehall 4-6770

■

.,

STROUD & COMPANY,C

-YYYY.^v."

Y

INCORPORATED

<

: 123 S. Broad
PH 296

TO

John

i

.

K. Ruckdeschel,

-Thomas F.
-

HAVE BEEN ADMITTED

.•

Herbert II. Blizzard

-

v

investment

.;-.Y;-;.>,;;Y*
^.-Y.?; rrj/.;

J Allen B. Foard

;
'

Wister Randolph

-

V
>.-"

.

Edgar L. Hunter
Robert J. Campbell

•

123 South Broad

:

&

Co.

brokers

j: Greetings
Y

Street, Philadelphia, Pa.

1500 Walnut St.

A.) & CO.

(2) /

TRADING DEPARTMENT PERSONNEL

Kingsley 1716

WOOD, JR.
'

•

511

(A. C.)

Chestnut St.

R. Victor Mosley, vice president

& CO.

(6)

KENNEDY

Lombard 7600

Marguerite A. Campbell

Established

PH 197

Equipment Trust Certificates

1923

PHILADELPHIA 10,

Pennypacker 8916

123 S. Broad St.
PH 224

■

Edgar L. Hunter
Frank J. Laird

L. Wister Randolph

PA.

/"
Thomas F. O'Rourke
John K.

'
'

(9)

American Investment Securities

-Y'

Public Utility Bonds & Stocks

William Congreve

common

Edward

-

-

)

Ruckdeschel)

Michael J.

Pennypacker 7275

Alexander Bryson

Railroad Bonds

Allen B. Foard, jr.

Walter B. McLear

WRIGHT, WOOD & CO.
r

CO.

and

Land Title Building

WOODCOCK, McLEAR & CO.
.1518 Walnut St. (2)
'

•

from
Philadelphia

r

Charles A. Taggart

.

arid Best Wishes

;

William P. Congreve

TAGGART (CHARLES
.

1

; :

^Michael J. Rudolph

-

,

IN THE FIRM

,/,:'Y:-

v-

OTtourke

Frank J. Laird

; L.

PARTNERSHIP

Pennypacker 7330

R. Victor Mosley
<

.

GENERAL

Municipal Bonds

Rudolph

F. Hirsch

.

Statistical Department

-

William Prescott Watts.

YARNALL & CO.

Bought

—

Sold

—

Quoted

Bell System Teletype

1528 Walnut St.
,

PH 22

(2)
Pennypacker 0300

New York Wires

MEMBERS

Russell M. Ergood

PHILADELPHIA

STOCK

:

Ph

296-297

Stroud & Company
Tel. Rittenhouse 3940

(WARREN W.)

>J. PH 556

-

REc. 2-6528-29

EXCHANGE

Harry B. Snyder

j Land Title Bldg.

.

*> '

Samuel M. Kennedy

YORK

Railroad Bond Consultant

Race 6866

& CO.

<10) V-V-.Y/v

Ritenhouse 9393

Paul C. Fredericks, Jr.-:

Bell System Teletype
PH 380

INCORPORATED

123 S. BROAD STREET

.

v.

PHILADELPHIA 9. PA.

-

:r/;

Joseph E. Morley

YY

:

•

i

'

'.vi

BUCKLE Y

members new york stock exchange

i

!•'

!

Members Philadelphia stock exchange

!'

-v

B rot HERS

i

-v-.i
j

>
,

'

"v-

,

j-y'"

'»

1529 WALNUT STREET

Bell System

■

•'

Teletype PH 265

-Y I

NEW YORK




PHILADELPHIA 2

'

r'

LOS

ANGELES

PITTSBURGH

HAGERSTOWN,

MD.

THE COMMERCIAL &

822

Thursday, August 26, 1943

FINANCIAL CHRONICLE

bonds.

National Security Traders
Association BOOSTERS

NSTA Municipal

718 Locust St.

Elmer L. Weir

(2)

Ill Sutter St.

Gordon Scherck

Elizabeth

Ilenry J. Richter
Charles W. Hahn

V

SEDDON, MORFIT &

IIANNAFORD

(2)

B.

Klein

113

ROLLINS

Russ Bldg.

Central 0838

Joseph F. Hahn

SF 46

being presented in

the Confer¬
De¬

Treasury

the

Revenue"

Internal

of

the

as

"White

case,

as

Bridge

Triborough
known

the

as

case," involving the tax¬
interest

the

of

ation

Waverley 1701

on

their

MARKETS

LOUIS

ST.
Our

(4)

Department Is Active In All

Trading

Local

Listed And Unlisted Securities

We Specialize-

& CO.

(DEAN)

St.

Francisco, CaL

(4)

Central

Collins L. Macrae, Jr.

& CO.

Bldg. (4)
SF 196
Douglas 4282

Direct

7600

Private

Associate
'

,

Bell Teletype SL 593

.

Wire Connections

Co. and

with James E. Bennett &
"

;

Seattle, Wash.

1551

7; -';-

Josef

C.

letters were sent to

presidents of our affiliates, urging
OUR TRADING

them to have their members con¬

DEPARTMENT

municipal officers

tact their local

Elliott 2600

SE 187

organ¬

10 and subse¬

On June

municipal representatives and

all

(14)

Exchange Bldg.

John F. Sullivan

the various municiual

for

quent dates

EHRLICHMAN

COMPANY

COMPANY

Montgomery St. (20)

David

Wood, of Thomson, Wood & Hoff¬
man, who assumed the leadership
izations.

DRUMHELLER,

>

,.

.

v

Clifton W. Morrill

any

to New York to consult Mr.

Saint Louis, Mo.

7

V

Josephthal & Co.

Russ

Exchange"

Chicago Mercantile Exchange,
Exchange, Associate
>

York Curb

705 Olive Street

prevent the> SEC from
jurisdiction over taxsecurities, which, in his
opinion, was never the inteht of
Congress.
Your Chairman went
to

exempt
Stock

Chicago

Exchange

Stock
New

Garfield 8900

SF 593

Louis

is

having

New York Stock Exchange

Chicago Board oj Trade

WULFF, HANSEN & CO.
Russ Bldg.

bill

JONES & CO.

MEMBERS

Exbrook 7211

Russell M. Dotts

(

In Orders For Banks and Dealers

EDWARD D.

Montgomery St. (6)

Fred A. Baker, Jr.

E. Kenneth Ilagemann

Yukon

bill

a

Austin Tobin, Sec¬

event

Authority

[

Rudolph J. Graf

SF 431

in¬

.

St.

Exbrook 7900

WITTER
45

300

have

us

Early in June our attention was
called to

,

Clarence J. Maender

BANKAMERICA

330 Bay

Thomas W. Price

Broadway & Locust (1)

(H. R.)

keeping

assistance,, if needed, in the
of "Shamberg vs. Commis¬

trial

well

& SONS

(E. H.)

SF 370

WALKER (G. H.) & CO.

BAKER

above.

and

Municipal Bonds; also to give

any

sioner

INCORPORATED
'

Herbert II. Frahm

San

in

helpful

been

the

to

received

Leonard De Martini

(1)

Elmer F. Barkau

SL 84

St. (4)
Douglas 2220

405 Montgomery

SF

Garfield 1721

SL 62

YOUNG, WEIR &
LIMITED

MILNER, ROSS & CO.

TAUSSIG, DAY & CO., INC.
506 Olive St.

tax

John F. Finnegan

MITCHUM, TULLY & CO.

pertinent

were

partment would again attempt to

Elgin 0161

Central 8116

your

cooperation with

ence'in

Metropolitan Bldg.

Garfield 8000

SF 234

.

These

retary. of the Conference on States
Defense and offered our services

Oliver Goshia

McLEOD,

Committee,

consulted Mr.

(4)

Adams 6131

190

formation of
Chairman

Shortly after the

COMPANY,

(4)

Defense

Congress by Representative Lyle
H. Boren of Oklahoma, known as
the "Boren Bill" (HR 1502), which

Chicago.

the

Toronto, Ont., Canada

& TALBOT

519 California St.

HARVEY,

INC.

Elmer

Achard

re¬

formed.

in
...

Louis J. Spuller, Jr.

Irwin R. Harris

SL 67

TO

(4)

Garfield 4460

SF 488

320 N. Fourth St.

the National

508 Madison Ave.

ELWORTHY & CO.

Garfield 0225

SL 456

of

COLLIN, NORTON & CO.

COMPANY

SCHERCK, RICHTER

any

T r,a d e r s Association
made the following report to the
Association at its anndal meeting

Toledo, o.

Ernest E. Blum

John B. McIIugh

Landreth Bldg.

Committee

Montgomery St. (4)
SF 70
Garfield 4511

Central 8250

SL 499

Reports

Security

&

the Municipal

of

Chairman

Bond

of Bioren

Dotts,

1

(1)

Committee

our

leases by the Conference on State

in

Co.,

BRUSH, SLOCUMB & CO.

METROPOLITAN ST. LOUIS CO.

M.

Russell

ADVERTISEMENT

of

tives

Bond Committee

(Continued from page 821)
ADVERTISEMENT

Again Mr. Tobin. offered
representa¬

to send to each of the

SOLICITS

Phillips

and

INQUIRIES

YOUR

their

urging

Congressmen,

of this bill when it is
presented before the Interstate
and Foreign Commerce Commit¬
tee for hearings.
We supplied our
support

ON

ALL

ST.

LOUIS

ISSUES

JERRY TEGELER

BOB WALSH

EMMET BYRNE

HERMIE

Fast and Accurate Markets in all

ZINZER

representative with a copy of a
letter written by' Mr. Wood to a
of one of the States as
letter written by one of

governor

dempsey-tegeler 6- co.

ST. LOUIS SECURITIES

Members:
New

St.

SL

York

Louis

Stock
Stock

.

Exchange

Exchange
Ga.

144

0727

specializing in

well
our

as

a

affiliates to its members, sug¬

gesting they use this type of ap¬
proach.
A great deal of good
work has been done and there still
is

plenty more to be done before,
can be assured of its passage.

we

The

BANK 6- INSURANCE STOCKS

our

secured

the

of

vice
ESTABLISHED

G. H. Walker

g-

Co.

St.

York

Stock

New

York

Curb

Washington Municipals

Exchange

&

(Associate)

ST.

LOCUST

Telephone: Central 0833

LOUIS

1,

—

Western Canadians

ser¬

and

send

or

representatives

the
Mr.

to

MO.

York and Providence Offices

Wood,has

the

when

last-minute check

a

so

has

There

been

practically

no

the committee during
the year.
However, we have had
the pleasure of adding the Munici¬
in

change

7

187-188

learns

be made.

can

Exchange Bldg., Seattle, Washington
Teletype—-SE

he

(HR 1502) is to come up for

hearings,

Washington Industrials
501

promised to. advise us

moment

bill

Northwest Utilities

Bell System Teletype SL 84

Direct Private Wire to New

of

the

Lumber, Pulp, Timber Issues
Pacific

BROADWAY

the

mayors

promise

governors,

high ranking municipal of¬
ficials to either personally appear
hearings when they are held.

Chicago Stock Exchange
Commodity Exchange, Inc.

Exchange

Louis Stock Exchange

ef¬

the

affiliated groups has

other

PACIFIC NORTHWEST SECURITIES

Members
New

1921

through

committee,

forts of

pal Bond Club of Memphis with
its 26 members as well as the Dal¬
las

collin, norton & co.
ESTABLISHED

1920

the

McLeod,Young,Weir & Company
LIMITED

Members

New York Stock Exchange

Chicago Board of Trade

oj
New York Curb

;*'v

(Assoc.)

Club

Bond
to

bers

our

which I

year,

further

and

,.

ACTIVE DEALERS

,

the

;v

mem¬

during

am

will

sure

The

N.S.T.A.

.representatives

been selected by

Cleveland Stock Exchange (Assoc.)

76

strengthen the municipal

representation, of
various

its

membership

having

the presidents or

affiliates «themselves,

have

given their chairman their fullest

cooperation.
endeavored

LISTED and UNLISTED

CANADIAN SECURITIES

£7-7' 7 •

the

with

Council

Private Wire Connections to New York and Montreal

Telephone: Adams 6131
Long Distance: LD 71
Bell Teletype : TO 190




30 Pine Street

New

them

keep

York

Green

9-2432
:

NY 1-865

I

of

fully

help

in-

activity.

our

would

like

to

thanking

member of our, committee,
representative and the of¬

ficers of N.S.T.A. for the

TORONTO

and. cooperation

splendid

given

me

this, year; and to assure the new

Bowling

Telephone:
Bell Teletype

every

Elgin 0161

5, N. Y.

time

fully,

and' Executive

the opportunity of

every

Metropolitan Building
4, Ohio

to

this

At
take

Toledo

cooperate

officers

formed at all times

SECURITIES

508-12 Madison Ave.

The committee has
.to

MONTREAL

OTTAWA

HAMILTON

LONDON

NEW YORK

chairman that he can expect and
will receive the same enthusiastic

cooperation for the ensuing year.

Volume 158

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

DIVIDEND NOTICES

DIVIDEND NOTICES

OFFICE

OF

POWER

COMPANY

Chicago

American

The

(WISCONSIN)

-

board

of

of

Northern

held

(Wisconsin),
at
August .17, 1943,, declared

on

of " one

and

one-quarter

share on.the

Company
s

.

cent

per

Preferred Stock

of

Common Dividend No* 134

Active Trading Markets in

General Gas & Electric $5 Prior Preferred

States

Lt. Col. Kenneth H.

.meeting
a .dividend
(1
) pel"
a

Company,
1943, to stock¬

Owens, for¬

Massachusetts Utilities Associates 5% Preferred

Detroit broker, has received

mer

the

rapid, advancements during

many

payable by check September 1,
holders of record as of the close of business
August 20, 1943, for the quarter ending August
31, 1943.'
N. H. BDCKSTAFF, Treasurer.

Preferred Dividend No. 150

t

LI. Col. K, H. Owens

Illinois

,

directors

Power. Company

Bank Note

Rapid Advancement for

STATES

NORTHERN

823

his

in the

career

Public Service Co. of Indiana 5% Preferred

Army, both in

World War I and the present con¬
flict.

V

Peoples Light & Power $3 Preferred

He

A

quarterly dividend of 75$ per share

(lrA%)

l

the Preferred -Slock'for the

on

dividend of 15$ per share

on

SOUTHERN PACIFIC COMPANY

and

(IHarder ending September 30,1943,
;a

the Com-

dends

are

A

The stock

<

t

'.

■

'

■

New

At

Dollar'

One

31,

1943.
be
closed

will not
dividend.

Secretary

t

of

($1.00)

-

\

The
for

SIMPSON, Treasurer.
August 19, 1943. 1

become

which he

each One Pound of Ordinary Stock
free of tax. Coupon No. 192 must

AN D

London
will

31st

on

before

or

be In

for

time

CARBON

order

August
payment

of dividend to transferees.

BRITISH-AMERICAN
TOBACCO COMPANY, LIMITED
August 17, 1943

transferred

'

BBS

medical

the

to

re¬

; ;

placement training center in Au¬
A cash dividend of Seventy-five cents gust, 1941, as Assistant Adjutant
General of the assignment center.,
(750) per share on the outstanding
He was appointed personnel offi¬
capital stock of this Corporation has
cer in charge of military and civ¬
been declared, payable October 1,1943,
ilian personnel at the camp on
to stockholders of record at the close
November 1, 1941. On April 15,
of business September 3, 1943.
1942, he was promoted to Major
and

ROBERT W. WHITE, Vice-President

in

April,

vanced to his

l i. du Pont de Nemours,

1943, he was
present rank. *
,

& Company

E. Felix Shaskan Dies

Wilmington^ .Delaware :• August ;16, : 1943,
The Board of Directors has declared this day a

$i .12 Yi

dividend of

share on the outstanding
Pfeferriid Stock; pay able ^October
19,43,'to;
stockholders of record at the close of business

Felix

E.

Shaskan,

a

Oh October 8, 1943; also $1.00 a share, as the
third "interim" dividend for 1943, on the .out¬

standing Common Stock, payable September
14, 1943, to stockholders of record at the close
of business on August 23, 1943. •
:
;
W. F. RASKOB, Secretary

Shaskan

&

'

Co.;

<

City, members

of the New York Stock Exchange,
died at his home of
An art

a

heart attack.

connoisseur, Mr. Shaskan

tion of paintings.

Johns-Manville

....

«,i •;

Corporation

DIVIDEND

.

a

.

The Board of Directors declared

regular

a

;

He is survived by two sons, Paiil
N.

;

and

and

Quarterly dividend of $1.75 per share on the
kimulative 7%'Preferred Stock payable

George Lincoln Shaskan;

sister,

Mrs.

two.

Jennie

brothers,

Aaronson,

George

and

-Vs V-V

Alexander Shaskan.

October 1, 1943, to'holders of record on
September 17, 1943. and a dividend of 50c
the Common Stock payable
September 24, 1943, to holders of record on

share oh

per

September 10, 1943.

FINANCIAL NOTICE

,

f

Southern Natural Gas

COMPANY
'

Directors

The

of

International

declared
a
quarterly dividend of.
fifty cents (50c) per share oh the common
i stock
payable October 15, 1943, to all holders
of record at the close: of
business on Sep¬
tember 20, 1943.
.i
SANFORD B. WHITE, Secretary,„■<
,

INTERNATIONAL

,

r

tbeen

declared on
payable

the

Company,

capital

this

of

stock

stock¬
holders of record at the close of business on
.September. 15, 1943.
The stock transfer books
of the Company will not be closed.
:
October

1943,

1,

to

„

HEEVEY

,

J.

COMPANY
Dividend No. 67
Kansas City, Missouri
August 18, 1943
Tno regiuar, quarterly dividend of $1.50 per
share
on
the
First
Preferred;
Series; "B",
t'iTY POWER &
First Preferred, Series B

,

of the

Stock

,

Secretary.

OSBORN,

jKANSAS

NOTICE IS HEREBY GIVEN to. holders
of the above Bonds that, .pursuant to provi¬
sions of Indenture dated as of April 1, 1941
«o Central Hanover Bank and Trust Company
and T. T. Harrigan, as Trustees, and of said

LIGHT

$108,000 principal amount of said
Bonds, at the Sinking Fund Redemption Price
in effect on that date,, i.e., 102%% of the
principal amount thereof.
...
'
The Bonds so called for redemption, have
been drawn by lot by Central Hanover-Bank
and Trust/Company, as Trustee, and their'
.

1364

DAVIS,

•"

'

130

1943."

"

3778

5696
5747

7062
7107 '

8933

.'•••.

A,

s.

8984

5765

7144

9408

11591

117

1591

4100

5844

7154

9677

11672

4421

5851

411

2067

2156

609

2192

Secretary,

.

INC.

COMMON DIVIDEND

7224

9711

11694

7330
7529

9962

11737-

9979

12285

4590 ' 6390

7711

10688

4654

6427

7836

10300

6640

8015. 10930

6753

8016

,4511'. 6153

.

4754

6389

.

799

2251 ,5018
860 ' 2360 / 5033

;

-

12472

12507

,12551'

10931

12671

12694

6927

8097

10986

1148

2515

5122

6962

8142

10990"'

1296

3271

5434

7039

8338

11078

-

>

Fully Registered Bonds Bearing the

(
i

!•

share

JUlLQk

on

Stock

the Common

been de¬

has

clared, payable Sept. 15, to stock¬
holders

business

of

record

be. mailed.

the

close

of

Checks will

.

Newark, ,N. J.
Aug. 23

at

Sept.' 4.

on

Albert J. Feldman

Secretary




not

127

184

613

614

615

On October 1, 1943 there will become and
be due and payable on each Bond so to be re¬

deemed, at the principal office of Central Han¬
Bank arid Trust Company, 70 Broadway,
Borough of Manhattan, City of New York,
102%% of the priricipal amount thereof, with
interest accrued upon such principal amount
to said date. Payment will be made upon pres¬
entation and surrender of such Bonds accom¬
appurtenant interest coupons maturing on or
after that date. From and after October 1,
1943, interest on said Bonds so called for re¬
demption will cease to accrue and interest
coupons

maturing after that date will be void.
Bonds and Coupon-Bonds

Fully Registered

registered. as to principal should be accom¬
panied by duly executed assignments.or traris■fer powers in blank.
Southern Natural Gas Company,
By H. GORDON CALDER,
Dated: August 26,

1943.

■

offer

interesting

an

of

the

portfolio

re¬

The company has not
dispose of additional
utility
holdings, at
prevailing,
prices because this would result
in heavy book losses.
report.

Grande Western

& Rio

1936

section

mained practically unchanged up
to the date of the company's last
wished

to

United

necessarily

into

an

transform

investment

com¬

pany."
The commission presumably

has

the legal right to order a recap¬

italization prior to disposition of

controlling interest in the four

a

subsidiaries,

■

But

its

argument

that

"United, even with less than
10% of voting stock, would easily
remain by far the largest single
stockholder in each subsidiary,"
loses weight in view of United's
willingness to give up any remain¬
ing voting rights. The contention

that United has attached too marly
to this offer seems

reservations

beside the point.
The Utility Act
specifically fixes 10% as the di¬

viding line
non-control.

between

control

and

While it is true that

additionalpowers to, de¬
are given to the
Commission, the language of the
Act seems to indicate that these
some

termine control

are

intended

only for exceptional

cases.

Assuming that United Corp. proa recapitalization plan,
the next step to conform to
SEC ideas, the question arises as
to the assignment of new common
as

stock to the
mon

preferred and

stockholders.

There

com¬

are

out-7

standing1 2,488,712 shares of $3
preference stock and 14,529,491
Dividend pay¬

shares of

common.

ments

the preferred have been

on

irregular since 1937 though present
amount to only $2 ($1 was
Refunding and Improvement Mortgage
| but no formal decision was an¬ paid in February, $3 last year).
0.85% Bonds, Series G-3
Share earnings, which amounted
nounced. More recently, under its
due February I, 1944
William Hickey, to $4.30 in 1937, dropped to $1.43
NOTICE
IS
HEREBY
GIVEN
that
The new1 President,
Chesapeake and Ohio Railway Company has the company proposed a policy of last year and in the first half of
elected to-exercise its reserved right to redeem
reducing stock holdings in its four 1943 to 70c. The decline has been
and pay off on September 20, 1943, all of the
"subsidiaries" to less than 10%. largely due to the lower dividends
above-mentioned' bonds
then
outstanding
at
100.20% of their principal amount, together Thus it would
relinquish control, paid by Public Service of New
with accrued interest on such principal amount
and escape regulation by the SEC Jersey, following the heavy in¬
to said date, in accordance with the terms of
Article; Five of
the Refunding and Improve-:
under the Utility Act (though re¬ roads made by Federal taxes into
ment Mortgage, dated April 1, 1928, from The
that company's earnings (earnings
Chesapeake and
Ohio Railway Company to maining under its jurisdiction as
investment
Guaranty Trust Company of. New York and an
trust).
It also were on a "parent company" basis
Herbert. Fitzpatrick, Trustees, and PaTt IV of
agreed to consult the commission and on a consolidated "system"
Supplement thereto, dated May

tteventh

1,"

1936, and Part II of the Tenth Supplement
thereto, dated February 1, 1941, and mat all
of
said
bonds
are
called for redemption on
said

date.

and

payable

,23' Wall

September

on

P.

therefore

will

There

J.

of

office

&

Morgan

become

arrears

Street,

arid
will

with

after

due

The
tion

ment
owner

panied

amount

interest

date

should

be

bonds

presented for redemp¬

with

the

coupons

1944, attached.
In
registered as to principal,
1,

to, anyone
is
desired,
by

said

on

and all coupons maturing

proper

other
the

than

bonds

the

of

where pay¬
the registered
be accom¬
of assignment

must

-instruments

CHESAPEAKE

AND

OHIO

RAILWAY

COMPANY

Treasurer.
By H.

Cleveland, Ohio,

F. LOHMEYER,

dated

August 20,

♦

payable
case

transfer,

THE

UTILITY PREFERREDS

shall be null and void,

1944,

aforesaid

as

bonds

and

said

1,

bonds

February

York

premium

a

to accrue,

cease

February

New

principal

the

together

(Continued on page 827)

before voting its remaining stbek

20, 1943, at the
Oo,, Incorporated;

8, N. Y., Paying
of said bonds;
of 0.20% of such
principal
amount,
and accrued
interest op
such principal
amount, to said date.
From

Agent,

Secretary,
1943.

-

ceeds with

,

the

Prefix Letter R

panied, in the case of coupon bonds, by all:
A dividend of 25c per

program. . . , The
reduction to less than 10%

will

•

over

A. HOLLANDER & SON,

mere

United Corp. has made several
moves to conform to the Utility

'

11462

4061

Assistant Secretary.:

CHEROUNY,

the reduction

'

11230

4004

4554

'

11229

1572
1636

City

constitutes ''control." Thus, United Corp, became the holding
company
Gas, Niagara Hudson, Public Service and United Gas

for Columbia

•

.'
8904

1477

1748

Broadway, New York

'

1494

1705

,'V August 20, 1943.:
A ',. cash
distribution . Of . twenty-five
cents
(25c) a sharij and a special cash distribution
•of'fifty cents (50e) a share have today been
, declared
by. Kennecott Copper Corporation, pay¬
able on September'30. 1943, to stockholders of
j record
at the close of 'business on August 30,

'/

99

195

.

the Morgan-Drexel interests in 1929, is construed to be a
holding
company
under
the
Utility Act,
which
states
that
ownership of 10% or more of voting stock of any utility company

situation, according to a circular
just issued by Pflugfelder, Bampton & Rust, 61 Broadway, New
The company accordingly pro¬
York City, members of the New'
posed, pending completion of the
York Stock Exchange.
Copies of program for diversifying its port¬
this circular may be obtained upon! folio, that it would refrain from
voting as a stockholder in the
request from Pflugfelder, Bamputility companies which it con¬
ton & Rust.
C,}-. ':.j. trolled, However, this plan did
not
appeal to the commission,
which instituted an inquiry into
FINANCIAL NOTICE
the corporate structure, distribu¬
tion of voting power, advisability
NOTICE OF REDEMPTION
;
'.'VI
V' To the Holders of
! of continued existence, etc. Hear¬
THE
CHESAPEAKE AND OHIO RAILWAY
COMPANY
! ings were held in October, 1942,
.

54

345

4

theiPrcfix

83

235

KENNECOTT COPPER CORPORATION
*

follows:

7061

3671v 5524

492

c.

as

Letter M

38

/ '

14, 1943, such stock to the. persons
entitled, to receive the dividends,
H.

are

Coupon Bonds Bearing

who.

tember

.

,

distinctive numbers

Kansas

City Power & Light Comhas been declared
payable October 1,
1943, to stockholders of record at the close of
business September 14, 1943.
All
persons
holding stock of the company
'are requested to transfer oh' or before Sep•

,

ber 1, 1943,

pany

/are

:

and does
has

of

4s
;

Y

Bonds, the undersigned has elected to redeem
hereby call for redemption on Octo¬

SALT COMPANY

475 Filth Avenue, New York, N. Y.'
of FIFTY CENTS a share

dividend

A

.

Denver

.

Sinking; Fund Bonds
.SVt'lo Series Due 1056

Harvester

Company

.

Company Interesting Situation

First Mortgage PipeXine

com¬

pany by

This

Denv. & Rio Grande Offers

of Bonds for Sinking Fund

Recapitalize

to

United Corporation, organized primarily as an investment

(through Ebasco) with the excep¬

Notice of Partial Redemption

HARVESTER

Utility Securities

Corporation Ordered

tion of American Gas & Electric.

ROGER HACKNEY, Treasurer

INTERNATIONAL

United

Randolph P. Compton has re¬ Act, but thus far the SEC has
signed as Vice-President of Union remained critical of these efforts.
Securities Corp. to engage in war In
November, 1941, a plan was
industrial work.
After taking a
filed with the commission to ex¬
retraining course at the Harvard pend $2,500,000 for purchase of its
School of Business Administration,
preference stock in the open mar¬
Mr. Compton has just become as¬
ket, and a hearing was held in
sociated with the Republic Avia¬
December, but no decision had
tion Corp. at Farmingdale, L. I. been rendered in the intervening
Prior to joining Union Securities
year and nine months. In 1939 the
Corp. in July, 1941, Mr. Compton; company undertook to broaden its
had been in
charg^ of municipal portfolio, probably with the idea
bond activities at Lazard Freres & of attaining investment t r us t
Co. since 1934.
He*was formerly
status, and $4,478,651
(out of
Vice-President of the William Hi
$8,000,000 authorized by the SEC)
Compton Co., specialists in munic-l was expended in the purchase of
ipal bonds.
25 "blue ribbon" industrial stocks.

had acquired an extensive collec¬

.If,J

Public

Teletype N.Y. 1-344

Improvement, although in no case<v
—
did it hold much more than one- holdings of 10% or less in these
quarter of the voting stock. While companies.
the company does not publish a
The
commission
recently re¬
"consolidated" balance sheet, the jected this plan and ordered the
"system" size is estimated at about company to recapitalize. The SEC
$3,000,000,000
or
approximately stated: "United's plan offers noth¬
ad¬ equal to that of the Electric Bond & ing which will assure the expedi¬
Share system. The latter company, tious disposition of its
holdings in *
however, has actively managed its the subsidiaries. The plan merely
subsidiary h old i n g companies recites an intention to carry out

Republic Aviation

Exchange

40

Place, New York

R, P. Compton Joins

in

partner

Street, New York 5, New York

Telephone HAnover 2-9500

re¬

He was assigned to
reception center at
Camp Grant in command of a
medical
detachment.
Appointed
Adjutant in May, 1941, he was

COIIPOUATIO N

be used for Dividend.

at

active until his

was

uary, 1941.
the i recruit

UNION CARBIDE

in

49 Wall

doctor and entered the

a

Co.

&

Members New York Stock Exchange

call to duty in the Army in Jan¬

decided to pay on September 30th
Interim Dividend of Ten Pence for

received

Laurence M. Marks

at

and

investment business in Detroit in

-

meeting of. Directors held
.August 17, 1943 in London it was

transfers

student

Chicago,

and nine days,
After
his
discharge from the
Army, he abandoned his plans to

a

All

of

tain in only a year

stock transfer books
the payment of
this

J. ;A.

-

N. Y.,

York,

medical

a

University

entered the medical enlisted corps.
He rose to the command of cap¬

per

Office, No. 165, Broadway, New York, N. Y.,
on Friday,
September 24, 1943, to stockholders
of record at three o'clock P. M., on Tuesday,
August

J. P. Tread\vell, Jr.
July 28, 1943

F

DIVIDEND

,

while

the

share on the Common Stock of this Company
has been declared payable at the Treasurer's

payable October 1, 1943, to
1943.
transfer books will remain open,

holders of record September 13,

(.r,

unit

DIVIDEND NO. 103

,

mon-Stock have'been declared. Both dm-,

}...

began his military career in
1917 when he organized a college

Paine, Webber, Jackson & Curtis
ESTABLISHED 1879

,

THE COMMERCIAL & FINANCIAL CHRONICLE

824

INSURANCE &

Royal Bank of Scotland

National

Attractive New York

BANK STOCKS
Bought

Sold

-

Analyzed

Reviewed

-

Bulletin and

Special

to

Dealers

City Bank

Service

Bulletin

City Hotel Bonds
Complete reports sent

&
Co.

Laird, Bissell & Meeds

CALIFORNIA

Chicago

-

San Francisco

-

120

BROADWAY, NEW YORK 5, N, Y

279

Burlington Gardens, W. J

Incorporated
Members New

Teletype—NY 1-1248-49
Gibbs, Manager Trading Department;

York Security Dealers

Smithfield, E. C.l

64 New Bond Street, W. I

Association

Bell
L. A.

L, A. 280

-

Bishopsgalt, E. C. 2

49 Charing Cross, S.W.1

*

Telephone: BArclay 7-3500

-

Seattle

TELETYPE L. A.

3

Seligman, Lu bet kin & Co.

Exchange

York Stock

New

Members

PRIVATE WIRES
York

upon request

8 West

210 West 7th St., Los Angeles
New

Branches throughout Scotland

LONDON OFFICES:

Trading daily 7 a. m. to 5 p. m. (P. C. T.)
Inquiries invited.
Orders solicited.

OF

OFFICE—Edinburgh

Request

on

Brokers.

Butler-Huff

>•

.

HEAD

Compared

-

Booklet

Ss

Incorporated by Royal Charter 1727
,

Quoted

-

Thursday, August 26, 1943

4} Broad Street, New York 4

HAnover 2-2100

/

TOTAL ASSETS

£108,171,956

Bank and Insurance Slocks
This Week

ited/Eblafe^Seciui^

Bank Stocks

—

Bank stocks, since the lows of 1932, have for a number bf reasons,
lagged sadly, behind the general market. It is of interest to compare
the market record of high grade bank stocks, as represented by
Standard and Poor's weekly index of 19 New York City bank stocks,
with that of high grade industrials, as represented by the Dow Jones
Industrial Average.,
■
;
-•

Six Months Ended June 30, 1943 Is $57,716.38 More
Than Amount Available In Previous Six Months

■

-

■

41.22, while at trial stock appreciation. Obvious¬
•the recent July 1943 high, they ly bank stocks did comparatively
jwere .145.82, or 253.8% higher. better betweep 1932 and 1937
Standard and Poor's hank stock in relation to industrial stocks,
Industrials

were

,

at the

andex was 60.3

than they have since 1937.

1932 low,

Currently, both bank stocks and
industrials are moderately below

and 95.5 at the July 1943 high, or

only 58.4% higher. This is a truly
difference,
for
the their highs of July 1943, as fol¬
V •••'■■ ".. V
ihank stock appreciation is only lows:

^astounding
of

23%

the

appreciation

of the

-

Stocks

dustrials

from

moved

.

371.6%,

or

41.22

while

stocks moved from 60.3 to

156.2%.

or

r

Industrials

95.5
94.6

145.82
138.45

July 1943 High—-—
18> 1.943

Measuring again from the 1932
;low, but this time to the high of
the market in the, first quarter of
1937, we find that the D. J. in¬
i.

194.40,

D. J.

Bank

Dow Jones industrial average.
Aug.

If

we

stocks

industrial

likeiy, during the

to

both

that

assume

and

bank

stocks

are

of the

course

market, again to reach
highs of 1937, a not un¬

present

bank

their

154.5,

reasonable

In this case bank stock

that

assumption,
stocks

bank

favorable position, as

-appreciation was 42.2% of indus-

find

we

in

are

a

very

follows:
c/o Apprec.

Aug. 18,
Standard & Poor's Bank Stock Index-

94.6

138.45

•

;

-

,

f

.

.

,

■

1937

high

The current yield of

■

T

Potential

,

^

Appreciation:

;

,

•

•

--Asked Price

■jv-

'

8/18/43

12/31/42

.

.

C/c

'■

%'."/

;
"

Bank

Manhattan.^

of

Bank

of

New

•Bankers

Brooklyn

.

Central

17

Yorka,,

63%

National

4.4

42.7

99

30.7

55.1

4.0

28.8

72.4

3.7

47%

20.1

80.1

3.8

28.4

12.0

3.7

35.2

24.7

4.4

217

13%
37%

-

18%

i

■

64.4

5.1

80

72.0

133.5

3.8

1145

1495

30.6

81.3

238

Guaranty
Irving

306

24.5

47

.

46%

\

11%

Manufacturers

City

30%

'

28.6

28.8

21.3

45.6

4.2

27.0

51.1

4.3

"Public National

35%

38.2

72.0

2.8

91%

22.8

79.2

3.8

35

21.7

74.3

4.3

1240

18.1

73.4

5.5

29.7

York Trust

64.6

4.1

74%

.

28%

^

Trust

—

Lexington

1050

It will be noted that from Dec.

31, 1942 to Aug; 18, 1943 the
age appreciation
stocks has been

1

'

of the

19

aver¬

bank

29.7%, and that

in order again to reach the 1937
highs their average appreciation
must be 64.6 %.
There are, however, marked differences between
the
individual stocks.
Empire

Trust, for example, shows an ap¬
preciation of 72.0% during the
.current year, while United.States
Trust shows only 18.1%, To reach
the 1937 high, Empire Trust shows
a

potential appreciation of 133.5%,

while Commercial National shows

only 12%

.

Between these two

tremes lies

a

containing

dends

The period up to June,
1942, produced income sufficient,
however, to1 defray the above
costs and to pay in full all 4%
cumulative interest on.the funded

pleted.

clean slate and

a

declared

:

re1'

ex¬

great assortment of

percentages, comparatively few of
which are very close to the aver¬

ally equivalent to 186 7/a on a par
of $50.00, thus, the present stock
will have to appreciate approxi¬
mately 133.5% to reach its equiva¬
lent 1937 high.
V
As has been pointed out in this
column before, the banks are en¬
joying a period of great activity
occasioned by the Nation's stu¬
pendous war effort; furthermore,
this activity is being translated
into the most favorable .earning
situation which they have experi¬
enced in many years.
Deposits,
earning assets, book values, and

decline from

a high of 37% in 1937
in 1940, at which time the
par value was changed from $10.00

to 8V2

to

$50.00

the
The
par

new

SIR ALFRED

demand

The Bank of New South Wales Is the oldest'

and

London,

and

efficient

traders

and

countries.

per share, since when
stock has climbed to 80.

1937

All
to

writer

that

a

seems

diversified

to

offer

the

conservative

offers the

.'.,•/

.

Members New York Stock

Members New York Curb
AO EXCHANGE PL.,N.Y.
Bell

1940)

fairly

The yield
substantial

after the war, would be in order;

V

;

Berkeley Square, W. 1
S. A.

NATIONAL BANK
the /Government In. '
Kenya Colony-and Uganda

Bankers- to

Head. Office :26,Bishopsgate,

*

r

'

'

•

.

London, E; C.

;

Branches in

India, * Burma, Ceylon, Kenya
Colony and Aden ana Zanzibar • ■

Subscribed Capitals..

£4,000,000

Paid-Up Capitals.
..£2,000,000
ReserveFund—^—__..£2,200,000
The
,

conducts every description
banking and. exchange business

Bank
-

•

,

Trusteeships

Exchange
Exchange

and

Executorships
-

.

NATIONAL BANK

Dlgby 4-4950

Teletype NY 1-953

of EGYPT

would leave
available

an

for

Office

Cairo

Register No.

I

.

Cairo

adjustments,

other

plus

estimated balance

fixed

charges andv
Federal taxes of around $980,000,000, contrasted with estimated
New Fixed Charge requirements

compromise reorganization plans,
well as allowing for possible:
1943 debt retirement of $750,000,000 and 1944 possible debt reduc¬
tion of $400,000,000),
Net current assets at the close
of 1943 may reach $1,700,000,000
vs.
$1,200,000,000 at1 the close of;
1942,i $816,000,000 at the close: of
1941, $598,000,000 at the close of
1940, $178,000,000 at the close^ of
1938, and $407,000,000 at the close

FULLY PAID CAPITAL
RESERVE

FUND

LONDON

6

and 7

.

.

.

.

£3,000,000
£3,000,000

AGENCY

King William Street, E.
Branches in

C.

all the

'

principal Towns in
EGYPT and

the

SUDAN

'

as

,

,

regular-interest-bearing,
appear

realistic investor.

/.V-

v'

E. C.

SHASKAN & CO.

of 4,587,000 cars per year.

attractive,

;

these

OFFICES;

also undertaken'

Examination of the past

is

In

•

throughout the U.

markets in

mand is satisfied which, with pro¬
of
$481,000,000 annually (after
duction allocated at the 1929 rate,:
giving effect to known ICC or
would indicate theoretically five

and

complete

investors,l-

to

Agency arrangements with Banks

.

Thoughts On
Postwar Rail Prospects

(vs. 68.5% for 1941 and 71.9% for

most

interested

Threadneedle Street,
47

SECURITIES

Some

list of high grade New York City market appreciation seems prob¬
bank stocks at current levels has able, and some dividend increases,

high of 37% was on a
of $10,00, and'is- mathematic¬ much




things considered, it

this

it

banking service
travellers

LONDON
29

ifrwlffl

.

spec¬

With over

870 branches in all States of Australia, In
New Zealand, Fiji, Papua and New Guinea,

Commercial

rate

.

fcnd largest bank in Australasia.

Head

revenues

Manager

of INDIA, LIMITED

at, only 40%. of the 1942
(thereby allowing for the re-,
turn of the passenger car, bus and
airplane), plus $100,000,000 of mail
revenues
(leaving
the
express
of 1929.
business entirely to the air trans¬
Post-war rail earnings effects
industry)
would
indicate
all the other tokens of bank pros¬ port
will be widely divergent, with the
gross railroad revenues of $5,000,perity, have been growing and are
best
results
probably favoring
continuing to grow. The post-war 000,000 (such revenues would ap¬ carriers serving the Texas-South¬
proximate midway between the
era,
too, seems to hold great
west and the Pacific Coast.
1941-1940 level).
promise for commercial banking,
Thereupon, the writer proceeds
Application
to
a
potential
and on a sounder basis than was
to list in the Bulletin the particu¬
possible under a system which, in $5,000,000,000 annual gross reve¬
nue base of a 70% operating ratio
lar bond
issues, defaulted and
the 1929 era, tolerated the

ulative activities of "security af¬
filiates."

DAVIDSON, K.BJL,

General

Head Office: George Street, SYDNEY

_

accommodations, the
property has reduced funded debt
to $3,445,800 as of Aug. 31, 1943,
with approximately $62,000 still
unexpended in the sinking funds.
An interesting part of this re¬
organization is the 67% of the
equity stock issued in the unit.
This stock holds promise of divi¬
dends and increased value, due to

record
of freight revenues in terms of
U. S. passenger car production,
discloses a figure of $1,000 per car
results which, applied to possible
post-war output, plus passenger

8,780,000
£23,710,000

:

,

■

r

.

age.
In the case of Empire Trust, the
stock suffered an unusually severe

6,150,000.

Aggregate
Assets" '30th
Sept., 1941
150,939,354

REAL ESTATE

hotel

years

£8,780,000

Liability, of Prop,
v

«

/trading

1817).

the'

on

;

Reserve

kiMytMk.

$3,900,000 and to leave a
balance of about $16,000 available
as
a sinking
fund, sufficient to
feduce funded debt to $3,867,500.'
Starting, however, in July, 1942,
a

be

'•;.-

-

Reserve'Fund

'

debt of

for

may

capital stock.

(Continued from page 783)
Average-,

....

(ESTABLISHED

Paid-Up Capital

3.9

14%
47

•

Hotel

BANK OF

•

NEW SOUTH WALES

5.4

■

First National

S.

73.6

91
38

169

,Cont. B. & TCorn Exchange .i--—LEmpire ■"

U.

2.8

39%

Commercial

National

3.6

70.4

75%

:

Chemical

New

4.2

40.3

29%

Hanover

Chase

'

.50%

95.3

33.6

392
v

38

Trust

25.0
35.6

21%

289

Trust

28-story

/ f:

::

approximately 750
rooms and located on the southeast corner of Lexington Avenue and
48th Street, New York City, was reorganized in 1935.
Securities,
issued in the reorganization consisted of a unit comprising an $800
Mortgage Income Bond, a $200 Income Debenture Note and 15 shares,
of Capital Stock for each old $1,000 bond.
The stock so issued repre¬
sents about 67 % of the equity in€>
the property. Under the terms of the fact that when outstanding
the indentures the sinking funds mortgage bonds are reduced to,
purchase the bonds and notes, the $2,400,000
(originally $3,120,000
stock being retained by those who and now reduced to $2,758,160)
tender bonds
and notes to the the amount of the sinking fund
then applicable is limited to 1%
sinking funds.
The reorganization record of the of the amount outstanding at the
property is impressive in spite of end of; each six-month period, or
the fact that it was handicapped $20,000,
whichever ,shall
be
at the start with reorganization greater. When this point has been
expanses 0* about $144,000 and reached it is evident that the top
cost' of>alterations and improve¬ sinking fund could be no more
ment^of "about $165,000, of which than $24,000 for a six-month1
$127,000/was<the cost of the "Re¬ period. At the present earning1
vere
Room," whiph has been a rate, reduction to $2,400,000 is not
good source of income since com¬ too far away. At that time divi¬

with
Yield

to 1937 H.

elation

4

The

Current

8/18/43

Apprey

,

neces¬

for each stock to reach its

each stock is also shown.

;

■.<

.

to

1942

ciation from this latter date

therefore,0 shows the market ap¬
preciation of each stock froin De:

31,

sary

;

•'

•

\40.4%

.

August 18,
1943, and also the potential appre¬

prise the Standard and Poor's in¬
dex.
Thefc following tabulation,

■

63.3%

194.40

v

cember

ex¬

amine the performance of the in¬
dividual bank stocks which com¬

«

to Reach
1937 High

154.5

.

'

worthwhile to

now seems

High

__

Dow Jones Industrial Average-—_

It

1937

1943

Australia ancl New Zealand

Sinking Fund Of $330,26L04 For 12 Months'
Period Equal To Nearly 10% Of Funded Debt
!
Presently Outstanding

,

beacon's Bank; Ltd.

Clyn Mills A Co.

A Total

low of 1932 Dow Jones^

•At the

Associated Banks:

Williams

Hotel Lexington Cash Sinking Fund Of $193,988.71 For,

fey E. A. VAN DEUSEN

.

>

in

view

of

the

general

Copies of this intefesting
may

w

hi

c

to have the best prospects

be

outlook.

bulletin,1

had upon request from

McLaughlin, Baird & Reuss.

'';

Guffey * Coal Act Expires
The Guffey
enacted

Goal Act, which

in .1937

soft-coal

to

was

stabilize -the

industry through; estab¬

lishment of minimum-

prices; ex¬
Aug; 23, thus ending
Government regulation of the in¬
dustry./ ' - •
:
;
A, request for extension of the
law until two years after the war
was refused by Congress before it
recessed for the: summer.
Pre¬
pired

on'

viously,

Congress

had extended

the" law for 90 days from its ex¬

piration in the spring.
The act

was

allowed to die de¬

spite efforts by President Roose¬
velt and Secretary of the Interior
Ickes, the Solid Fuels Adminis¬
trator, to have.it continued; this
was reported in our issue of
July
8, page 104.It is believed attempts to renew
the act will be made when Con¬
gress reconvenes.

^

i

"••■

-

Volume-158

«■.»*

•»*«».»»«"»

MniwWffdW'n

*.

J >*''%■ at,-MViw«.).»i,-iui*iMi" <IW'-UWM*.~~... *1

<"WHK

'*%

j#'f?ii

■

v,\wqwbitytymwtawme*e

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4206

Gov.

Dewey Says Labor
Rights Must Be Restor'd

Dominion of Canada

/

825

\

BOND

INCOME

SERIES

SERIES

(Continued from page 783)
owners

when

without

All Issues

"In

Bought

—

Sold

time

the

owners

were

Wood, Gundy & Co.

total

such

war

totalitarian conditions cannot

Street, New York 5
Teletype NY 1-920

INTERNATIONAL

STOCK SERIES

SERIES

FIRST MUTUAL TRUST FUND
Prospectuses upon

ex¬

control

the

over

request

NATIONAL SECURITIES & RESEARCH CORPORATION
120

not, the peacetime effect of gov¬
ernment

SERIES

LOW-PRICED COMMON

ist in time of peace.
"For whether we recognize it or

Bell System

STOCK

an

Incorporated
14 Wall

PREFERRED

BOND SERIES

of

abridgement of our rights is prob¬
ably inescapable. But it is a con¬
dition which can only be justified
by the sacrifices of war. We are
fighting to make sure that such

Quoted

—

LOW-PRICED

fault.

210 W. 7 St., Los Angeles

terms

10 Post Office Square, Boston

_

Ar,

Broadway, New York 5
208 So. La Salle St, Chicago

and conditions of labor would in¬

Canadian Securities

evitably be to regulate out of

By BRUCE WILLIAMS

,

f

;

,

has been aroused by
the numerous currency plans recently announced, it might be well
to consider them from the point of view of Canada. The revised plan
just made public by Mr. Morgenthau appears to lean more towards
the wealth of discussion that

of

In view

the Canadian version than the

oasis of

participation or the Mor-^
longest term Ontarios established

genthau-White idea which places
emphasis on the status of gold,
Canada

,

only

large

a

well-

new

the

angle of the volume
trade, Canada
stands third among the nations of
international

world, but based on popula¬
tion, Canada is the leading coun¬
try in foreign trade and currently
exports approximately
80% of
her
total
production.
On the
the

83 and

North

West is

oped,

there

try

or

ip the post-war world, practical

beginning to be fearful that the
world's economy is going to be

conceived

Canadian

the

been

has

to

of

Canadian dollar,

the

that

seems

must

we

lowing factors.

;

global

these

would

of

the world

the

an

on

give

until

such

plan could
Furthermore, we

not

the

Turning to the Canadian securi¬
ties

market,

quiet

with

been

Dominion
issues
The

past

the

Eastern

continued

little
and

guaranteed
steady but inactive.

direct

were

has
activity.

week

in

consequence,

holders

fear of losing the
premium, to

on

dollar

Municipal

Corporation Securities

process.

it had not been possible for
holders-to find buyers

vance,

Canadian

here

.

to

considerable extent.
Therefore, the market now is ex¬
periencing the effect of the Cana¬
dian supply which there is little
any

doubt will continue

to

reason

attractive.

:

F.

Claybaugh
New

Street,

members of the

72

Co.,

&

York

City,

Philadelphia Stock

circulars on

ing

of

&

Ft. Dodge,

Southern

and

1991

Mohawk

common),

Valley

Des

Railway

Utica

Railway

&

(4V2S

(common), which the firm

ties

at

these
NY 1-2675




both

free

and

strong

if

current

levels.

circulars may be

Copies of

had

upon

request from Blair F. Claybaugh
& Co.

duly

now—and we'd like to devote most
to

discussion of the future.

a

So, with your indulgence, we'll simply list the companies together
with their reported net assets as of June 30, 1943.
Affiliated Fund,
$24,018,549 before deducting $10,-^
000,000 of debentures; American
Business Shares, $4,715,646;'Bos¬
ton Fund (July 31), $10,917,565;

$1,690,547; Group Securities,
$15,533,676; Keystone Custodian
Fund,
Series
"Bl,"
$3,012,278;
Keystone Custodian Fund, Series
pany,

"K2,"

$1,161,395;

England

New

win the peace

indispensable
will be

the

after the

tween labor and

An

war.

of that

peace

in all

relations

be¬

management, be¬

tween both and government.

New

York

to

progress

part

continued

relations—the

our

and

war

State

The

have set up in

we

not

must

temporary arrangement.

be

a

It must

be

something that will last—that
will enable us to live together
and to work together, more keen¬
ly

alive

truth

mate
one

than

the

to

ever

what

that

ulti¬

benefits

deben¬
Shares,
Trusteed
Wellington

"America

Ameri¬
cans look forward to the sharing
of an ever greater future."
The Governor in commending
labor in this State for having kept
its "no-strike pledge" said:
"We

calling,

take

all

can

we

particularly

great pride in the fact that there
have
of

been

in

moment

any

been

industrial

no

the

strikes

State

There have not

of

even

industrial controversies
are
worthy of the

any

which

eration

of

Labor

can

point with

similar

pride to its record of hav¬
ing authorized no strikes in the
industrial shops-where it repre¬
the

Labor

worker.

has

state

kept

its

in

this

'no-strike

pledge.'"

Bank of Cleve.

current

situation

tional City Bank

inc.,; discusses the threat under
heading, "Post-War Inflation

—What

by

a

in

Na¬

of Cleveland of¬

Otis

possibilities accord¬
circular being distribued
& Co., Terminal Tower,

Cleveland,
interesting
from

the

Ohio.
Copies of the
circular may be had

firm

upon

Post War Rail

To

request.

Prospects

McLaughlin, Baird & Reuss, 1
Wall Street, New York City, mem¬

Prepare For."

Hugh
is distributing the

W. Long & Co.
material

The

dealers.

affiliated

to

service

(after searching
analysis) arrives at the following
conclusions:
1. Wholesale
war,

prices after the

the average will prob¬

on

ably rise at least 100% and may
2. At

the war's end inflation

will start quickly and
to

a

will rise

climax within two

three

or

excerpls from the

Significant

devalued

tration

adminis¬

Roosevelt

the

gold

ten

years

and withdrew it from circu¬

lation, all money in this country
consists of pieces of paper or of

"This plain fact,

though known

has implications not
recognized.
In practice,

always
it

restrictions

all

removes

on

monetary expansion except those

imposed by law or set up as poli¬
by government—operating in
this country through the Federal
Reserve Banks. Laws and policies
cies

be changed overnight.

barriers

weak

are

.

"When
be

.

and

"
volume

the

pf

expanded without
.

Sometimes

too cautious
to step out and take their cues. In
that case, the show does not go
on.
This is a reasonably accurate
summary
of
monetary
history
from

they

1933

to

"Nearly

are

all

change

have just issued an in¬
circular entitled "Rail¬
roads—Some Thoughts on Post¬

expected
surge

war

businessmen, disturbed by gov¬

upon

Copies of this
had from the firm

request.

"What

is

an

inflationary

come

up¬

The reason it

of prices.

was

that- most

extend
Year
after

ernment policies, did not
their

more

important, the

velocity, or turnover rate, of de¬
mand deposits declined
steadily
until 1942.
Thus, although de¬
posits more than doubled, the in¬
crease was largely neutralized by
their sluggishness.
»
.
/
* ;
,

"During
British
went

Napoleonic Wars
German prices each

the

and

American

about 75%;
prices, close to 100%.
up

"During the Civil War prices in
rose 150%.

the North

"During and after World War I
in

were:

vances

223%;

in

France,

Britain

Great

145%; in.
Germany,

the USA,
500%;
in

Thereafter French prices

climbed another 250 and German

"So par

in the present war,

operations.

ex¬

tending into the Spring months of

1943, advances in wholesale prices
based

1939 have been:

on

United

Nations

35%

32%

ji: 58%

Britain

Axis Nations

9%
29%

Germany

"'Japan

♦Up to Dec. 1942
;

(Continued

on

page

827)

'

Keystone
Custodian Funds
Certificates of Participation in
Trust Funds

investing their capital as follows:
Series

B-l, 2, 3 and 4 in bonds
Series

economists, both

deal and conservative, fully

not

remained al¬

K-l, 2 in Preferred Stocks

1940.

teresting

did

loans

most stationary.

money
any

new

Prospects."

bank

year

easy-

political

vis¬
ible limit, the stage is set for in¬
flation. But nothing happens until
the actors start to play their parts.
can

YORK

They

against

movements

juggling.

Incorporated

63 wall STREET—NEW

everyone,

bers of the New York Stock Ex¬

circular may be

GROUP,

ledger
accounts.
Practically,
USA
though not in form, it is all 'fiat
Canada
money.' •'
■'''i
to

Request

prices soared to the sky.

article follow:

"Since

on

DISTRIBUTORS

1600%.

years.

ago

Prospectus

through 1920 wholesale price ad¬

great deal higher.

a

money

fers attractive

ing to

remove

the

can

Nat'l City

(issue of July 31)
any doubt.
This

service, published by Tradeways,

The New York State Fed¬

name.

sents

should

back.

turns

never

our

nomic Future"

go

will benefit all.

group

a Class of Group Securities, Inc.

$1,465,000
of
Quarterly Income

deducting
tures;

.

win

SHARES

Fund, $3,161,219; North American
Investment Corp., $4,360,494 before

.,

to

RAILROAD

Investment Com¬

Commonwealth

for labor and enter¬
$18,930,919;
Union
dignity and unfettered Funds,
$2,491,894;
strength which only free men can Fund, $9,743,684.
;
:
enjoy.
'■'■■■ v"'V
And now to the piece de re"We are all fighting
for the sistence. It's about that old bogey
same thing, total victory.
Work¬ man—inflation. A growing num¬
ers and employers are equally in¬
ber of people are beginning to
terested in that goal.
They are suspect that maybe he has teeth.
all gladly making every possible A careful
reading of "The Eco¬

sacrifice

which, by all precedent,
But they are history
of the available space this week

summarized in this column.

recover

(4s

1941), and Consolidated Dear¬

St., New York 5, N. Y.
Tele.

at
be

can

should be

final batch of June 30 reports

a

prise the

The

believes offer attractive possibili¬

49 Wall

them

We

Situation of Interest

Attractive Situations

born

WHitehall 3-4784

restore
war.

to

continue to be

if prices

operate

of

H. E. SCOTT CO.

be

can

here

normal

to

of the

In the
case of the lower grade bonds, until
the
recent
general market ad¬

the

lay

Moines
-

labor

nor strong in a peace¬
regimented economy.
We

time

have

Exchange, have prepared interest¬

Government

free

no

neither free

been

now

extent that the Canadian

an

Wall

CANADIAN

be

can

New York.

provinces, however,
demand
and the

specialize in

have

some

S.

Blair

We

today

an

supply is now severely curtailed.
Scarcity value, therefore, can de¬

econ-

...'

omy.

U.

such

made the servant

the master of

readily

10%

Unquestionably, when one con¬
siders the present vested interests
of this country, the British Com¬
monwealth and Russia, gold will
continue as the monetary basis,
and

many

Canadian

and

sold

perience of the British after the
last war when the pound was
rushed back to full gold parity.

it must be

there

except in

Whatever

normal

a

here

must not forget the disastrous ex¬

but

anticipated in
obvious

as

reaction would
but in
the
case
:of the higher grade
bonds over a long period there
has always been a ready demand

universal

be worked out,

fol¬

The whole mar¬
long sustained

columns,

Ordinarily,

be

post-war period,
time as a carefully

considered

a

in¬

the

to

made.

immediate

-

had

adjustments

keel in

even

has

advance, and,

scheme, it
surely be possible for us,
together with the British Com¬
monwealth, and, if willing, Rus¬
sia, to keep the main currencies
ambitious

attention

creasing

embarking hurriedly on

Before

And

teamwork that

Reverting to the market for
bonds in general,
it

ket

!any

this
de¬

external

abortive

another

be

prove

stock

relatively little

(

"League of Nations."

on

cidedly attractive.

[ might be interpreted and enforced by what might very well
'■

still

are

section of the market appears

Further¬

the rules that determine
future
business
dealings

>i

con¬

affected and the continuing firm¬

more,

i our

is

fighting.* * Collective bargaining is
a
right of free labor which can
only be exercised by free labor.

we

issues

and

demand

that

market

ness

by hastily

in

mind

foreign exchange observers are

!•

arbitrary regulations.

offered at 78.

internal

drop in the stock market
here
and were
still quoted
at
15/16%'
discount.
Bearing
in

another might be affected

}' dictated

the recent high of

recent

by whatever system is in force
f.

106y2

Alberta 5s

bid.

mained under the influence of the

.However favorably one coun-

;

■r

against

whole nation

our

struggle

the
basis of the money rate.
Corporates, On the other hand,
re¬

the world's supply.
,

which

economies

•

end

were

that coming down from Canada

doubt

furnish the bulk of

will

Canada

little

Fascist

the

from

were

tinued

fully devel¬

more

is

in
a
regi¬
mented economy.
We have seen
that strikingly
demonstrated in
I the

We have

bargaining

the

107

Dominion

Canadian

the

after

declined

'

when

lective

of¬

1960

Manitoba 4V2S of 1956 were
offered

hand, if gold is to be the
paramount basis, Canadian pro¬
duction at present is placed sec¬
but

91V2

fered at

That Bogey Man Has Teeth

; "It is a fundamental truth that
no place for genuine col¬

after being 93 bid.

katchewan 4V2S of

other

ond,

of British Co-

block

Investment Trusts

there is

enterprise economy
lumbias traded but the market re¬ conducted by free men.
mains firm with the long term is¬
"So that we shall truly regain
sues
on
a
3.40%
basis.
Other and keep the vital freedoms for
Western provincial. issues, how¬ which we fight today, I invite you
ever,
tended to weaken.
Sas¬ to join with all your vigor in

:

From

high level and now yield
slightly above 3%. A fur¬

ther

equally

appears

placed.
of

take

we

predominant

plan which stresses foreign trade as the

British

the

Whether

original proposal.

ex¬

istence the whole purpose of labor
unions.

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 eyes

3 (7/
JO

of the general financial

public their similarities and their
common basis of procedure.
The

Yield

kinship, the practical parent and
child relationship between the two

On All Kinds

institutions, is there however and
should be more thoroughly un¬

of TRUST and

here

largest insti¬

in London, the
Abbey Road Building Society (of

which Sir Josiah Stamp,

WE DO THE REST—

nent

President

was

time of his death in

recently

was

a

Savings And Loan Institutions
Are Penetrating To All Nations
By

EDWARD

C. BALTZ

of

and

an

the

at

air raid)

this

in

country on
He
Societies and

mission for his government.

said of the Building
their

"An investment in

safety:

building society has proved to

a

be

of the

one

well

ties."
of

the ravages of

Government

as

should

There

deal

securities.

best

has stood up to
as

Union
Building Societies and Savings and Loan Associations

Vice President for United States of America, International

the emi¬

industrialist

British

economist

To $5000

All Accounts Insured

C. E. Bagley, Pres.

of the'

tution of this type

—JUST MAIL CHECK

|

director

A

2V4 Million Institution

HAMMOND, INDIANA

possibilities of

savings and loan institutions may
be more adequately judged.

by this

5272 HOHMAN AVE.

the

order

in

circles

in financial

that

derstood

INVESTMENT ACCOUNTS

promise in

It
war

great

a

that kind

of

investment to the countries which

good name and fame of this type of institution. Actually institutions
of this type have already penetrated into 17 countries in every Grand
IDivision of the world.
It wasS>estimated at the last International Balkan countries have kept right
Congress of Building Societies and on with their interest and their

ment

request for material on savings and

recent

and

•Savings
held in

S

Associations,

hope for the future.

Zurich,

i t

w

Loan

e

z

Thus

r-

tions

and loan institu¬
world force belong to

savings
a

as

struggling back to life and
curity after the war.

are

The

savings
in

the

record of
all

loan

and

United

Tomorrow's Markets

did any

Walter

ing

se¬

invest¬

States has

Whyte

Savs—
-

safety which is beyond
by those who are

At

concessions.

1938,

the future.

total

financial

resources
a

11

o

f

stitutions

i

But to the average

volume.

holder of stocks such
is poor

sence

is

an

A loss

comfort.

smaller because it is

no

ab¬

ac¬

complished omsmalDvolume.

markets)

States has the

professional
point it might
emphasized that profes¬

be

were

sional traders have

*

•'.<

them.

Uni¬

Kingdom,

where institu¬

this

of

tions

Edward

type first took
rise 162

C.

Baltz

their

•;

Savings & Loan Assns.
Return $100 Million
To Government
Since
and

are

Associations

have

*

is relatively new in the

ness

and less

methodically

more

tur-

bulently in the British Common¬
wealth

Nations

of

than

in

the

Continental

European
countries
before the war. On the Con¬

even

tinent

had
not
by
1938
place of prominence or

they

reached

a

of much influence in the financial

world and the past four years
actual

war

years

between

was

the safety

99.73%

and

of

the

Federal

of

have not bettered their

The
dream remains,
of making the system
among them, and the men
who were engaged in it in Switz¬
erland, Austria and some of the

position.
however,
work

English-speak¬

be pushed and
expanded.
They
hold
sound
promise for the fostering of in¬
dividual self-reliance by provid¬
nations

ing

can

easily understandable se¬

an

curity, with good earnings and a
safety record which deserves some

a

reinforcement

liance

of

be

may

the

known

the

of the

one

rebuilding

of

steadily

less

and

such traits from almost

the end of the last

as

which

problems in
which has

world

a

self-re¬

individual

re¬

Home Loan Bank

System, announced.
By Aug. 15,
more than $202,000,000 had been

as

less

of

far back

British

well

are

the

given

was

Building Societies
in

known

of

cause

be¬

which
'30's to
building

prominence

in the middle
home

Britain's

Great

America

boom, and because these societies
the

were

backbone

cing for that great

achievement.

advance

investments.

being re-paid to

are

Government

at

rate far

a

being written the

close

majority of
occur from
present levels. If

rally must

a

to

stocks don't hold
the

ings

This retirement

indicates

the
healthy
growth of these institutions and is

Advances To Illinois
And Wisconsin

Savings

Assns. At New Peak
The Federal

Home

Loan

Bank

of

Chicago advanced more money
in July to Illinois and Wisconsin

certainly

:

'!«

'

;

ume has dried
up even more
than it has of late. This may

or
may not be
Yet if the rally

materialize

it

a good sign.
I expect is to

materia-*

must

lize without the market
down

more

than

two

downside.

the

on

these

going
points

Within

two

points the stocks
recommended
for
purchase
will

in.

come

■

./

❖

*

of

the agreed schedule,
steady increase in sav¬
invested by the public in

professional

almost

(Tuesday's) mar-i
of July are being:
recognized in a sort of left
handed manner.
They have
stopped going down and vol-?

in

out of the

program

of the finan¬

It is not any too well known that

the

the

on

Now, they

these institutions.

war.

emphasis.
The

dividends

*

to hold in the

nearly $100,000,000 to the

as

know it in the

ing

.

,

*

As this is

1943, Savings stocks

January 1,

Loan

turned

V;',.

'

averages are down to about
the lows of July. If these lows

have the key to 99.85%, of the total assets of the
financial institu¬ system. In 1941, it was 99.988%. retired out of a cumulative total
of $273,156,710 so invested by Fed¬
their heed to reserves, to
So if a sound system of thrift
eral agencies.
Mr. Twohy added:
continually building up the mem¬ and home
financing institutions
"These
government
invest¬
bership of the institution to re¬ can become much more
nearly
place a generation going out of universal after the war, if its be¬ ments, made largely in the 1935date, and by a determination to ginnings on the continent and in 1937 period, were intended to in¬
adapt their methods to new ways South Ameriqan countries and in crease the supply of funds avail¬
of
doing things;
They , should the younger Rations of the British able for home financing through¬
out the nation.
hold much promise for the re¬
They serve this
Commonwealth can be expanded,
construction of Europe, for the there will
exist a safe place for public purpose effectively, besides
rebuilding of Europe's homes after the individual to build his own paying to the Government ap¬
the war, if the sound system as economic
proximately 52 million dollars in
security.
It will act as
we

second. The busi¬
other
countries, and it was functioning
ago, runs

years

depression

record

interest

'

most of the
Government, retiring Federal in¬
lows
after year, the records of the Sec¬ vestments in their capital made their
traders will
post-depression
years.
retary-Treasurer of the United during
States Savings and Loan League Those thrift and home-financing
step out. : have
show the safety record of the sav¬ .•institutions
repurchased
*
ings and loan system in this coun¬ $98,780,000 of Government invest¬
>
In today's
try.
The lowest that record ever ments in their shares already this
got was
in 1933 when it was year, although only $10,300,000 ket the lows
was due, James Twohy, Governor
99.37% of total assets.
In the
other

no

in

long term rigamarole. They
-'V','
buy them because they expect
Yet underneath this sinking
to $ell out at a profit in the
decline there were evidences
.mmediate future. Long term
of better than just good sup¬
possibilities while of academic
port.
At no time, however,
importance
don't
interest
*

❖

-

$6,250,000,000,
ted

operational

at

were

At this

traders.

unfamiliar with the business. Year

They

permanence

United

the

each

for

time

^

tions by

largest slice of
those assets,
and

to

red

period.

wbre $10,000,000,000.
The

the

of

world

the

genius of paying
gpod-management,
coming out in the black instead

to

n

in¬

the

heed

first

in¬

loan

and

they

institutions,

corporate

savings

Although cooperative

no

Stock after stock sold there
any signs of active bid¬
down and in doing so broke
ding. Some of the buyers
previous low points. The only were investment trusts but
by
balm in this Gilead was the
far the largest buyers (if you'
absence
of
any
important can call them that in such
day.

'

in
the

land,
that

always

but

taken;

were

(Continued from page 783)

a

realization

of this buying show¬

any aggressiveness. When
stocks were offered the stocks

securi¬

be

loan associations
United States Savings and Loan League to Asuncion,
Paraguay, in the keeping of one who goes as a good neighbor rep¬
resentative of the. State Department, emphasizes the international
A

to be sent by the

Thursday, August 26, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

826

•

.

)

v

•

*

For the record these

are

as

follows:

Borg-Warner
(in¬
advertently I said this one got
down to 32.

It did not; so the
buy point remains the same)
buy at 32 with a stop at 31.:
Canada Dry, buy at 20%, stop
"By authorization of Congress at 19. Distiller-Seagram, buy
in 1933 and 1934, the Treasury
at 271/2,
stop at 26. Shell
invested
$49,300,000
and
the
Union Oil was bought at 26
HOLC
placed
$223,856,710
in

helpful to the government in its
war
financing and in holding the
line against inflation.

about
Of

1400

these

applicant associations;

when

it

sold down

25%.

to

$227,615,700
went to Federal savings and loan
amounts,

Stop it at 25.
Sinclair was
they are the counterpart of our
Savings, Building and Loan Asso¬
bought at 11 when it went to
associations—a new type of thrift
savings and loan institutions in ciations than in
any previous July
10%.
Stop it at 93/4.
Buy
this country.
institution authorized in 1933
They are truly the since it
began operations, $2,919,and $45,541,010 to state-chartered United Airlines at 26%, stop
mother system of thrift and home
610, A. R. Gardner, President, re¬
at 25%. Buy White Motors at,
financing institutions from which ported on Aug. 16 to the Federal associations.
our
own
sprang
directly.
Be¬ Home Loan Bank Administration
"At one time, government funds
19, stop at 17 and Yellow
cause some of the British building
?n
Washington.
Loan
volume in Federal associations amounted Truck at 17 with a
stop at 15.
societies
have
attained
greater
to more than one-fourth of their
—

After the

BARBED-WIRE

size than

Is Gone

is

it

our

largest, and because
a single institu¬

possible for

tion

of

over

a

small

this kind to operate all
country of such relatively

dimensions

as

u

England

or

Scotland, it should not perhaps be
surprising that the differences be¬
tween their activities and those of

the
:'n

savings and loan associations
this country should obscure to

COtf-V -

nOO-00

ranked third for any month so far
in 1943, and served largely to off¬
set

repayments

reached

Fluctuation

in this

0e£>inlS

Insured Investment
Legal for Trust Funds
in most States

TANDARD

Assets Over

$3,000,000

the

closed

bank

156 member

ing,
of

AND LOAN ASSOCIATION
*3$
.

16$

Sfrvih

Oliv»

Angel**

>

Street

MI-2331




FEDERAL SAVINGS AND
LOAN ASSOCIATION
WICHITA, KANSAS
Financial

and operative statements
sent

on

request

the

month

with

associations borrow¬

gain of three

a

the

previous

over

capital,"
said
Mr.
Twohy.
"Today that proportion
is no more than 2.3%.
A large
proportion

of

institutions

these

have retired the Government's in¬
vestments in full."

Bank's

today, it

"Up to

was

now

credit

facili¬

the major portion
advanced

by
the Bank was to supplement home
lending funds
in the
Savings,

Building and Loan Associations'
own
communities," said President
"With the advent of the

economy

the

Bank advances to
pose

has

been

demand

serve

views
do

Established

1858

expressed

t

in

not necessarily

coincide

those

Thursday.

with

They

those

are

this

at

any

of

the

presented

of the author only.]

H. Hentz & Co.

recalled,

signed from the start to

Members
New

York

Stock

Exchange

New

York

Curb

Exchange

Cotton

LAMBORN & CO.

Exchange

New

York

Commodity
Chicago
New

Orleans

Inc.

Exchange,

Board
Cotton

of

99 WALL STREET
NEW YORK

5, N. Y.

Trade

Exchange

And other Exchanges

,

SUGAR

this pur¬

diminishing.

The

were
serve

the

N. Y. Cotton

NEW

Exchange Bldg.

YORK

Exports—Imports—Futures

4, N. Y.

de¬

varying credit needs of the local
borne

[The

Chronicle.

for

Federal Home Loan Banks, how¬
ever, it must be

*

pointed out.

of the loan volume

Gardner.

v

—Walter Whyte

^1

time

month,

reserve

More next

article

.

loans

ties

*

share

the close

although
outstanding
went
down.
Aproximately a third of
the member institutions are using
total

war

MID KANSAS

which

It is also indicated that

the

No Market

loans

on

$3,167,912 last month, it

is stated.

*

total

financing institutions."

CHICAGO

DETROIT

GENEVA,

PITTSBURGH

SWITZERLAND

DIgby 4-2727

as

/■.,•****•'

WBWffWUKItMtfWHHifW

Volume

Following is a list of issues whose registration state¬
ments were filed less than twenty days ago.
These issues

grouped according to the dates on which the registra¬
become effective, that

tion statements will in normal course

"

ing:

A

as

radio

recent

government does not permit us to
deliver it
with its
war

theh move in on

can

dinner

us

party is being given

responsibility for the idle
and
war
plant

Investment Trusts

workers.

"Only recently the Chief Execu¬
15,000 mines when the

Business—Engaged in
sale of high speed

drills.

Iowa-Nebraska
and

$1,000,000

Co.,

for

Underwriting—Wyeth

Angeles.'

Los

S-l. (5-12-43).

;

„

York

New

other

pied

EWT

100

and
to

Bids

ac¬

received

Service

the net proceeds, the com*

Proceeds—Of

ferred

and

stock,

capital.

balance

the

•

■

,

(8-11-43),

•

rate

^

TUESDAY, AUG, 31
AIRWAYS,

BRANIFF
Braniff

Airways,

statement

tration

stock,

common

par

INC.

;■

Texas...

of

applications

to
the .-public> will be
amendment.
Underwriting—F. Eberstadt, New York,
heads the group of underwriters.
Others
will be named by amendment.
/
<
Proceeds—Company intends to add the
net proceeds from the sale of the slock to
its
general funds as additional working
capital.
Proceeds subject to foregoing may
be applied to replacement of flight equip¬
ment requisitioned by the government; to
purchase p|, additional equipment necessary
to
meet "passenger and cargo traffic
re¬
quirements
on.
present ,, and., proposed
domestic
routes;
to
purchase of planes
incident. to operation
of proposed tradearea feeder system and purchase of planes
and
other-'' equipment
for
initiation
of
operations of proposed foreign routes.-,v-i:
Registration Statement No. 2-5198. Form
Offering—Price

(8-12-43).

■

WEDNESDAY, SEPT. 8

j

TOWERS, INC. :
Cohrs,
John P.

DRAKE

Hooker, E. A.
Tittle, John T. Wheeler and F. Hampden
Winston as trustees have filed a registra¬
tion statement for voting trust certificates
for 28,209
shares of common stock, pay
$1 per share, of Drake Towers, Inc.
Address—Principal office Room 1730, 23
South Clark Street, Chicago.
,,
Business—Apartment building located
171-179 Lake Shore Drive, Chicago
L.

W.

,

...

Underwriting—None.
Offering—As

practicable after
effective.
presently

soon

registration statement becomes
Purpose—The
securities are

subject to a stock trust agreement which
expires Oct. 1,
1943..It is proposed to
extend
the
agreement,
as
amended,
to
1953.

1,

Oct.

•

.

Registration Statement No. 2-5204. Form
(8-20-431.

F-l.

f
present below a list cf Issues
registration statements were filed
twenty days or more ago, but whose
offering dates have not been deter¬

IOWA POWER
Power

Iowa

unknown

are

or

to

dividend

stock,: will

rate

be

',>v:>')

the bonds and

Electric

Co.,

list

:

-

■

*

"

•

tremendous

en¬

largement of buying power acti¬
vated by strong buying motives,

v
" '

———.

higher they will go is not calcul¬
able when so many factors, in¬

"It would be indeed

Secirs. Commissioners

and there is no apparent rea¬

Cincinnati at the Nether-

Tuesday afternoon, Aug. 31,
there will be an address by Hon.

Claxton,

K.

C.,

P«,

M.

M., parliamentary assistant
to the Prime Minister, Dominion
of Canada. On Wednesday during
D.

C.

sessions will be adr
Mr.
Emil Schrarri,

various
dresses
by

In other countries, under

flation has reached much greater

Utility Securities

accord¬

the

that

suggested

post-war

an attrac¬
according to a cir¬
cular being distributed by A, A.
Bennett & Co., 105 South La Salle

Chicago offers

St., Chicago, 111. Copies of this
interesting circular may be ob¬
tained upon request from A. A.
Bennett & Co.

,

Interesting Situation
fers

an

attractive situation at the

present time according to
cular

Sherman

interesting
tained

Co., 30 Pine Street,

&

York

stage will be set well in

of this

Copies

City.

circular may be

ob¬

firm

re¬

the

from

upon

quest.

Stokely Interesting
Stokely
ferred

the

actors will be

flation

is

almost

ready, for in¬

universally ex¬

pected; and the big show will
promptly.
have

a

Bros.

offers

5%

Co.

&

start

If so, it is not likely to

long run—perhaps two or

judging by previous

experiences, before it reaches

share in 1937 to the

a

present
.

Broadway,

120

New

Stock

interesting

basic

Exchange.

An

report upon the situation may be
from

Reynolds

&

Co. upon

years,

culmination,

and

a

request.

new

Situations of Interest
National

Public
Co.

Radiator

National

offer

according

in

The

Company

and

situations

current

The

Bank and

attractive

to

If the commission

follows past

in the Federal Water
and United Light & Power cases,
the new common stock might be
precedent

filed

p

service in the City of Des Moines and
and in two municipalities in ad¬

at

sale

of

to be> offered
competitive bidding under the

the

are

Names

Commission.

underwriters will be supplied by
tive

supplied

post effec¬

to

the

public

will

a

of

tinental Gas & Electric Co.
&

part

interdependent transactions
include
the
acquisition by, Con¬

series

which

be

by amendment.

Proceeds—Bonds are to be issued as
of

the

of

amendment.

Offering—Price

of Iowa Power

Light Co, and Des Moines Electric Light
from Illinois Iowa Power Co.
Proceeds

Co.

from
a

the

sale of

portion

bank

of

the bonds,

funds

to

be

together with
received

loans

from

aggregating $2,500,000, will be
used to redeem on Sept. 1,
1943, a total
of
$11,232,000 face amount of the com¬
pany's first mortgage bonds; to redeem on
Oct. 1, 1943, 10,133 shares par $100 of the




being

distributed by C. E. Unterberg

Co., 61 Broadway, New York

&

City.

its Copies of these interesting memo¬
randa may be had from the firm

kind of

upon

show begins."

request.

assigned

the

in

ratio

of

95%

to

Bricker, Governor of Ohio. On

Thursday^ morning, the president
of the Association of Securities

S

Joseph
Schneider, Chief of the Division

S
X

Commissioners,

Mr.

The management will prooaoiy

good will among the various su¬

contend that the common stock is

environs,

rules

Trust

possibilities,

memoranda

X

Still

Enough to Go 'Round My... |
3
$

Moderation
in

3

X

v

V

V

V

V

X

V

...

for

City,

York

members of the New York

America,
and
at the banquet
Wednesday evening, by Hon. John
W.

preferred and 5% to common. On of Securities of the State of Ken¬
mortgage bonds, 3 V* % series due June X,
inis
basis, and
estimating the tucky, will make an address, and
1973.
■ '
1 '
'
liquidating value at approximately during the day there will be re¬
Address—312 Sixth Avenue, Des Moines,
Iowa.
$110,000,000. the
equity for the ports of committees and discus¬
Business—Is a public utility engaged in
sions by those attending.
preferred would be $42 a share
the business of furnishing electric service
The; Association takes consid¬
cuia lor ihe common 38c a Bnare.
in Polk County, outside the City of Des
Moines and environs, and in 12 contiguous
These figures compare with the erable pride in promoting mutual
counties in Central Iowa, and furnishing
understanding,
cooperation and
present quotations of 29 % and 1.
joining counties.
Underwriting—Bonds

pre¬

attractive possibili¬

ties, according to Reynolds & Co.,

The

advance;

Exchange; Mr. Robert R. O'Brien,
Commissioner Securities and Ex¬

registration statement for $17,000,000 first

gas

cir¬

a

ditsributed by L. D.

being

New

of¬

American Industries

Great

inflationary
rapidly.

will develop

three

change Commission; Mr. Jay N.
(Continued from page 823)
would be higher). Earnings (Whipple, President of the Invest¬
United common receded from ment Bankers Association of

of

-

already

have

"We

President of the New York Stock

Public

levels

current

at
a

tive situation,

had

heights.

boom

,

On

Brooke >

why they should stop at that

broadly similar circumstances, in¬

Sept. 1 and 2,1943,
the National Association of Se¬
curities Commissioners will hold
its twenty-sixth annual • conven¬
On Aug. 31,

land Plaza.

son

point.

To Hold Convention

tion in

Co.

surprising,

not at least doubled on the aver¬
age;

,

Co. offer

known.

however, if wholesale prices were

Association Of

thq

this -week)

incomplete

is

the

of

view

in

stock

1943.

(This

,

level, will be 27% below 1920
and 19% above 1929.
Obviously,
ent

cluding human reactions, are un¬

.'

6s and com¬
& Tin
interesting possi¬

stock of Empire Sheet

.

employment, were it not for cer¬
bottlenecks under
govern¬

necessary

30,

Aug.

.

end, after allowing for an
assumed 10% rise from the pres¬

tain

.

Co.

&

Ins. Stock Looks Good

war's

-

ment control.

Warner

North American Life Insurance

price index, at

wholesale

"The

post-

is coming but only

prices cannot conceivably stay put
on the war's-end level. How much

affiliated' com¬

proceeds from the sale of
will be applied to the
to redeem indebtedness
and preferred stock of the
merged com¬
panies as follows: To redemption on Oct.
1; 1943, of all of the outstanding first
mortgage gold bonds, 5% series due 1978,
of Keystone Public Service Co., including
sstimated interest, $4,175J)00, and to the
redemption on or about Sept. *1, 1943, of
all of the then outstanding 5% non-voting
preferred stock;' $100 par,' of Erie County
Electric
Co.
$3,500,000,
total $7,675,000.
Balance of proceeds, if any, will be added
to general funds of -the company.
•
Registration Statement No. 2-5195, Form
S-l. (8-5-43).r
Registration
statement. \ effective
5:30
p.m. EWT on Aug. 21, 1943.
''
Bids for the purchase of the bonds and
preferred stock will be received by the
company ■ at
Room
2624 .61 Broadway,
New York
City up to 12 noon EWT on

may

that the country might
count on getting out of the war
into
full
peacetime
operations
without any abrupt or large un¬

Proceeds—Net

and

goes

we

not whether

is

inflation

how much and when.

saying

mission.

extent

consider

was

are

Ponds

inflationary force

solution of the
problem now in the making or in
prospect.
The practical question

The normal domestic
prise free.
powers of Government are police
powers."
.'
'
Mr. Sykes is also reported as

Applications for all such acquisi¬
now
pending before the Com¬

panies.
tions

Prior

the pres¬
surface,

add, there is no

ernment immediately to set enter¬

to the issuance of
the • securities
registered- company
will
acquire common stock, assets and fran¬
chises. of Erie County Electric Co.
Com¬
pany also proposes to acquire assets
and
franchises of Keystone Public Service Co,
Bradford

enter¬

the pro¬

the

gathering strength. .
"As a matter of fact,

to

duty of

dominate

Beneath

level.

however,

And after the national
emergency, it is the duty of Gov¬

supplied by amend¬

the sale of

for

stock.

to

Arthur

J.

ing to

on

plan?

it is not the

may

request.

bilities

should not

than 10% above

more

ent

prise except in a national emer^

Offering—As soon as practicable after
registration-,, statement becomes effective
will ask for bids under competi¬
tive rule of the Securities and Exchange

md

be

is

there

Johns¬

company

preferred

planning

each

of

Government

gency.

is

this

"We hold

t

Commission

all

from

this interesting
be obtained

of

"est of the war and that the over¬

fundamental test: what is the

intention

by

'•

business

"In

Copies

mon

*

*

all index at war's end

said:

one

City.

memorandum

memorandum being dis¬
tributed by Hill, Thompson & Co.,
"A reasonable expectation is that
Inc., 120 Broadway, New York
wholesale price
controls, which City. Copies of this memorandum
are relatively easy to enforce, will
may be had from the. firm upon
be well maintained through the request.

prise."

on

supplied

be

deficit.

us.

& LIGHT CO.
& Light Co.
has

and

bonds

Co.

electricity.,

22c

We

whose

mined

the

preferred

on

UNDETERMINED

;

^

memoran¬

a

basis

OF OFFERING

DATES

Electric

Underwriters—To

supplied by

S-l.

,

ment.

pending
extensions of its. domestic route$. ,•
,
has

It

CO.

duction, transmission, distribution and sale

J

Business—Company is fifth largest com¬
in the country in passenger
flown.

ELECTRIC

town, Pa.
Business—Principal

mercial airline

miles

will

St.,

amendment, y, v" '•
Address—222
Levergood Street,

f ('

value $2.50.
Dallas,

p.m.

on

the

Inc., has filed a regis¬
for 400,000 shares of

Field,

Address—Love

:

;

Adams

W.

has filed a
registration statement for $4,000,000 first
mortgage bonds series due Sept. 1, 1973
and
35,000
shares
cumulative preferred
stock Series B $100 par value.
Interest

•

for the

ends

troops, it will begin for free enter¬

according to

dum issued by J. Arthur Warner
& Co., 120 Broadway, New York

97%

*

Incident to President Roosevelt's

bonds

the

of

Chicago,,
CWT.on Aug. 20, 1943.
■

Pennsylvania

Registration Statement No. 2-5197, Form
A-l.

is evidence that

struggle

planning a post-war world and the
expectation
that Congress will
also act in the matter, Mr. Sykes

sale

105

PENNSYLVANIA

to working
v'
!

there

the

be

the

,Co.,

up.to .2

will apply $100,000 to retire its out¬
bank loan, $125,000 toward the
retirement rof outstanding convertible pre¬
pany

standing

"I think

when

occu¬

headquarters.

union

the

three

stocks,

71%

Sweden

Television

Inc., and Loft Candy are
attractively situated peace

ances,

Plate

Switzerland

troops,

have

at office of United Light & Power

for

date

•

1943 as of 5:30 p.m.

July 17, 1943.

<•. :•

1,

Aug.

.V-

1943,

public

to

from

of delivery.

•

EWT on Aug. 19,

p.m.

'

Offering—Price
interest

Co.1,

&

....

,

should

President

the

for

offices with

management

Light

Registration Statement No. 2-5138. Form
'•••;'
•• ••:
\
•
Registration
statement
effective,, 5:30

carbon

: <•'•,..r,

•

crued

manufacture
twist

the
and

and

for

partial

of

Power

sup¬

&

Attractive Possibilities

Neutrals

ply of coal for our wartime indus¬
tries. 1 Instead of occupying the

corporate purposes.

cago.

-

to

properties

Iowa

&

payment

$4,750,000;

Co.,

,

interrupted the

ernment and

of

Co.

Republic Drill & Tool Co. has registered
$1,250,000 5% convertible debentures, due
Aug. 1, 1953, and 296,875 shares of com¬
mon stock, par $1, to be issued upon con¬
versions! debentures, ;
r' ' «
.
>•
Address—322 South Green Street,,. Chi-,

and

miners struck and defied the Gov¬

purchase from Illinois Iowa Power
$1,750,000 face amount of general
refunding mortgage bonds, Series A, due
1955," and $3,000,000 of open account in¬
debtedness of
Des Moines Electric Light,
the

to

TOOL CO.

DRILL &

cumulative preferred stock;

company's 7%

MONDAY, AUG. 30

Radio

Corporation, Bendix Home Appli¬

The first mortgage

(Continued from page 825)

tive seized

REPUBLIC

Attractive Peace Stocks
Majestic

upon

veterans

,

will pre¬

atmosphere which

Tuesday evening under the spon¬
sorship of .Ohio and Kentucky
dealers, to which all those at¬
tending the convention are cor¬
dially invited.

the job-giver in his
promises to future
veterans he put us on the spot.
If

industry

to

-

vail.

and still more.

"When the President nominated

made before the day follow¬
":V.
/.'V'v; ;•

Offerings will rarely be

v

Inflationary Imal

(Continued from page 782)

of 4:30

unless otherwise specified, are as
P.M. Eastern War Time as per rule 930 (b).
These dates,

commissioners

exchange
comments and ideas in the infor-,

Seen
more

convention affords a
opportunity for dealers

splendid
and

which normally become

foreign public authorities
effective in seven days.

827

the

tures,

Government Policies

is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
certain

t",TWW^ WjVvmjwaiiWiteiM JI

u

Flotations

Calendar of New Security

are,

„,. JM

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4206

158

,^'"'lt.^.>,

pervisory bodies and the security

entitled to

a

"better break."

The

principal basis of such a conten¬
tion would be future

recovery

of

earning power when the wartime
of heavy taxes is lifted,

burden

of this
feeling of mutual understanding,
securities dealers are cordially in¬
In furtherance

industry.

vited to attend the convention.
addition

the

to

educational

fea-

dividends.

larger
fact

subsidiaries

other

cash

that

take

arrears
common

Moreover,

remains

pay

the

ample to

the small preferred

point in favor of the
stock.
Preferred stock¬

is

a

afford to be gen¬
if this would expedite a set¬

holders
erous

of

care

to

could

tlement, since it might eventually

place their own stock on a more
regular and assured dividend basis

X

X
*

a
a

a
a

In

permitting Public Service of N. J.
and

X

a

SCHENLEY

a

ROYAL RESERVE

a

a
a

a

a
a

a
a

a
a

the present

a

between market and liquidat¬
ing values—which seems consid

a

erably wider than for the average

£

a

and probably narrow
gap

high-grade investment trust such
as

&

Lehman

Share,

Corp., National Bond
etc.

£

a

86 proof. 60% grain neutral
Schenley Distillers Corp., N. Y. C.

BLENDED WHISKEY

spirits.

a
a

*>»»»»»»»»»»»»»»»*««««««««<<««««««<*

4

For Dealers

Teletype—N. Y. 1-971

HAnovcr 2-0050
Firm Trading

D wight Mfg. Co.

...

Active

Markets

Trading Markets in

Bendix Home

SALVADOR 1% AND 8%

x

'

Merrimac Mfg. Co.

Appliances, Inc.

Class A
Bonds

Thursday, August 26, 1943

FINANCIAL CHRONICLE

THE COMMERCIAL &

828

Common & Pfd.

and Common

Nashua Mfg. Co.

C.O.D.,

—

Majestic Radio & Television Corp.

r.O. INC.

r ARL MARKS &

;

'

Preferred

-

Common & Pfd.

Common

and

f

"

FOREIGN SECURITIES

Allen B. DuMont

SPECIALISTS
Class A

'

"Our Reporter

association of the savings
banks has just recommended sale of all tax-exempt bonds held by
these institutions and maturing before 1951 and reinvestment of the
funds in the new 2% bonds, to be issued in September. . . ; For these
banks, such advice definitely makes sense. . .
In fact, what's sur¬
prising is that it has to be given at this late stage. ... Any instituions which don't need tax-exemption and are favored under the law
certainly may benefit themselves by buying taxables, increasing their
yields and freezing the high profits in the exempts. . , . Insurance
companies have been liquidating their exempts for months, are now
about finished with the program, according to best reports. ... The
larger, more alert savings banks also have been on a selling program
for months, are today pretty nearly done with the job. . . . So the
advice to other savings banks to liquidate the shorter-terms and buy
the more profitable 2s may be considered as directed at smaller,
out-of-town institutions.
'
'
And the pressure on the exempts due up to 1951 may be traced
to this source.
That pressure has been noticeable, incidently. . . .
Particularly on such issues as the 31/4S of 1946-44, the 4s of 1954-44,
the 2%s of 1947-45, the 3%s of 1956-46, the 3s of 1948-46 and the
4Vis of 1952-47.
All high-premium bonds, all with short maturity
dates and near-term call dates.
And on a yield basis, a savings
bank may look with envy at the return to be received on the when.

,

,

.

issued 2s of 1953-51.
But the most

.

.

.

-

gives to commercial banks and other

institutions and individuals

Security

Dealers

STREET,

N.

HAnover 2-8780
Y.

1-1397

Association

YORK

NEW

BelL

telephone

philadelphia

TELEPHONE

Enterprise 6015

2-3600

R. Hoe &

5

Co., Com.

new

Teletype
yorx

Copper Canyon Mining

1-576

Great Amer. Industries

General Aviation Equipt.
Cent. Pub. Util. 5%'52

1/32 or so for the assistance, but they
"sitting,'
awaiting the conclusion of non-bank subscriptions in order to place
a price on the new obligations. ...
It was all rather confusing, un¬
.

paid

Maybe they

.

.

up

rounded out their portfolios while the actual market was

necessarily so.

..

L. D. Sherman & Co.

.

'

non-bank subscriptions will be finished with before
the banks come in.
Then after all books are closed, trading will
This time,

30

begin.
exist

\

.

Bell

And people who bought on the non-banking drive will
10 days or two weeks what premiums are going to

.

on

the various issues..

the new 2s

.

•

.

bonds

2%

Those

probably will

and

excellent for trading

be

quick profit purposes. ... Judging from the way the outstanding 2s
are remaining firm and from the general stability of issues in the
1943-51 range.

Street, New York 5

System Teletype NY 1-2218

buy war bonds

within

know

Pine

Telephone WHitehall 4-7970

..

.

.

For instance:

.

•The 2s of 1955-51 are bid at 100.14, offered at

100.16;

*Ft. Dodge, Des Moines &
Southern Ry.4/91 and Common

,,

1952-50 are at 100.18, 100.20;
100.25-100.27;

The 2s of September,

1

The 2s of March, 1952-50 are at

1951-49, due in June, September and December are
selling between 101.1 and 101.12.
.
These new 2s will be 1953-51 bonds, which puts them right in

*Utica & Mohawk

Valley Ry

of

The 2s

intriguing point of this report is the chance itv

York

New

NASSAU

RECTOR

.

.

request

on

Air Communications

...

.

Members

.

45

,

Y% Security Dealers Ass'n

Teletype

INCORPORATED

'

•,

story around that the main

...

Information

<

Kobbe, Gearhart & Company

On Governments"

By S. F. PORTER

.

Members N.

25 Broad St., N.Y.
<:

a

Common

New York 4, N. Y.

50 Broad Street

There's

M.S.W1EN&C0.

Laboratories, Inc.

tax-exempts while the market is quiet and under
there, snugly fitting between the 1955 issue and the 1952 loan. .. .
-.?■
some disadvantage..
Buying short-term exempts isn't so smart
Another highly significant indication is the high quotation
The need for constant roll-over is too geat, the nuisance of
on the maturing
of 1945-43, to be paid off through an ex- ,
holding a bond you know you'll have to get rid of in the near
change offer also shortly after the close of the third war loan
future seems too overwhelming..
In addition, the premiums are
drive (What a month for Government financing!) . , .
on the heavy
side.
But buying long-term exempts during
The 314s today are selling at 100.16-100.18, equivalent to
this period of dullness is something else again. . . . While the -*
a minus
yield of 4/32.
;
In short, the holders of these are
market is absorbing the liquidation of the short-term exempts,
wagering right now on at least a H point premium on the new :
the longs may not get anywhere. . .. They've this pressure and
2s.
And that's a sufficiently high premium guess for this
the general "sidelines psychology" to battle beween now and
early date in August.
;
September and the fact that they're holding up so well is sur¬
inside the market
; ■ v.
prising indication of their inherent strength. . . . But buying
for a quick profit and a long turn are two different things. ...
Chances for any important action in the market between now
to pick up some

—v-:,"' 4V2-41
"Consolidated Dearborn Com.

..

...

Southern Traction 5/50

:

'

■4

.

.

,

...

.

.

.

exempts still carry the same advantages to
bothered with tax problems as they did three months

institutions

bullish and praising the exempts was the
'

ago, when everybody was
order of the day. < . .
the

omit mention of the sub¬
scription goal for banks when he issued the last circular describing
the September "basket."
Good idea to leave this subject of bank
tctals strictly alone until both the Secretary and the market can tell
how the fall campaign is going. ... Then Morgenthau can boost or
cut the subscription goal, depending on the amount of billions he
.

.

slight.
.
■' i
Savings banks to some extent are liquidating the short-term exr
empts.
Commercial banks also are getting ready for the drive
au4 are not going to enter the lists and use up their cash now to pick
up securities.
Individuals following the same course and dealers
just sitting along and waiting too. . , ... So "waiting market" is not
only logical but also unavoidable. ...
One dealer says he expects a "fluttery" market until September
15 or so.
Good descriptive term. .4
Intermediates and shorts may go off, if slight reaction does con¬
and mid-September are

.

.

.

.

.

.

,

.

.

tinue, more than

"In

Another

keeping with this objective (sale of bonds to non-banking in¬

vestors), the official circulars governing the 2% bonds and the cer¬
tificates of indebtedness contain an express request that commercial

purchase and that subscribers not trade in these securities
(the 2s and c.is) until ten days after the close of the drive, or until
after the books close on an offering of the same or similar securities
for the exclusive subscription of commercial banks for their own
account shortly after the conclusion of the
drive, whichever is
banks not

^ongs.

.

.

No major selling pressure on long-term

.

showing

up

in shorter classifications.

.

.

.

earlier."

'

To get
.

.

.

the meaning of this, think back to the December financing.
campaign, the banks received their privilege of

During that

subscribing first.
Their books were closed and then for three
weeks thereafter, non-bank subscribers purchased their allotments.
The market was "caught" as a result of that procedure.
.
For
bankers who didn't receive what they wanted of the December issues
.

„

.

.

.

.

.

.

Member

Philadelphia

Stock, Exchange
Tele.

Whitehall 3-0550

NY 1-2178

New York
Syracuse,

Harrisburg,
Miami

Pittsburgh

-

Beach

■»

We Maintain

Trading Markets In

Consolidated
Electric & Gas
6s, 1962 "A"

past
But

thinking of Armistice Day three months from now,
offering circular that the issue would mature in
92 rather than 91 days.
Apparently, many out-of-town banks
didn't notice that difference and placed their bids for the bills
on the 91-day basis.
.
Result was the New York banks, which
did—and do—watch these things closely nosed out the out-oftown institutions by bidding properly... .
Treasury,

wrote into the

Southern Cities

..,

.

Results.

...

.

$654,000,000 out of the
A terrific amount for, one region. . . .
The Federal Reserve Bank of New York

And second result.

.

.

...

.

unquestionably will be called upon to pick up a larger-than-usual
of the bills under the long-standing repurchase agree¬

amount

ments.-.

/

.

.

5s, 1958 "A"

New York district was alloted

week's billion-dollar total.

.

.

"the 2%s of

expert wagers

Amusing thing happened on the discount hill issue this
Issue was $1,000,000,000 total, as usual. . . .

Week.
.

request

.

market while there is some

...

on

Blair F. Claybaugh & Co.

.

1965-60 will start rising
As for his comment on non-trading in the 2s until after, the during the September drive." .... . That's the key issue of the longbanks buy their bonds, that's also excellent common sense. . . The term tax-exempts, which still is holding the 112 level and is acting
way the circular reads is this:
beautifully during this consolidation period. . ....
gets from non-banking sources.

available

.

.

;,*vv".

drive

Secretary Morgenthau was smart to

*Circular

.

...

And the long-term

Rochester Transit Common

.

4

.

•'';

J. Arthur Warner & Co.
120 Broadway, New
COrtlandt 7-9400

•

York 5, N. Y.

Teletype NY 1-1950

subscription simply turned to non-banking friends and ordered
additional amounts they wanted through these mediums.

on

whatever

INDEX

i

Page

Triumph

Bank and Insurance Stocks.........

824

Calendar of New Security Flotations 827

Explosives

Canadian

Securities..-.

825
825

Municipal News and Notes.......... 787

Bought

—

Sold

—

Quoted

Our

828

Reporter on Governments.

Public

823

Utility Securities

Railroad

785

Securities

Members New York Stock Exchange

71

Broadway N. Y. BOwling Green 9-7027
Bell Teletype

HV 1-61




Securities Salesman's Corner...
Tomorrow's

Says

F.

member

offering of $14,875,000 0.80%
debentures
of
the
Federal
Intermediate -Credit
consolidated

of

Exchange firm of Kohler,
Co., 63 Wall Street, New
City, on Sept. 1.
On the
of

debentures will be used to pay off

be

$14,875,000

become

a

Stock

Exchange,
in the

partner

Fish &
York
same

—

.

date

the

firm

name

Kohler,
Fish
&
Co.
will
changed to Kohler & Co.

Banks

was

the

of
the
$31,215,000
maturing Sept. 1,1943,
balance of $16,340,000 being

met

from

debentures

On

785

Corkle,

change, will retire from partner¬

close of business Sept. 1, 1943, the
banks will have a total of $280,-

783

ship in the, firm. \

810,000 debentures outstanding.

Markets—Walter Whyte

,......,..................

Empire Sheet &

made Aug.

17, at par,
by Charles R. Dunn, New York,
fiscal agents for the banks.
The
debentures are dated Sept. 1, 1943
and mature June 1, 1944.
Th^
proceeds from the sale of the

York

New

Stock

Forgie,

An

824

Real Estate Securities

HAY, FALES & CO.

David

the
will

Investment Trusts ..;...

FIC Banks Place Debs.

Forgie To Be Partner
In Kohler, Fish Go.

Aug.
a

31,

Robert

member

of

C.
the

MacEx¬

cash

on

hand.

At

the

Tin Plate Co.
f

'

■

1st Mortgage 6s

.

Common Stock

Memorandum

on

Request

Hill, Thompson & Co., Inc.
Markets and Situations

120

for Dealers
.

Broadway, New York 5

Tel. REctor 2-2020

Tele. NY 1-2660