The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
~
kB*s
'" ^
•
.
«$>
T*>
Final
Edition
THURSDAY
("Reg. V. 6,
Number 4102
156
New York, N. Y.,
[ P. Johnston 25 Years
j
With Chemical Bank
Mr.
of
man
ical
Percy H. Johnston,
the
Bank
Board
Trust
&
celebrating
of
his
reports have been circulating among financiers
impending and ^approved" rise in the short-term
Every decline in excess reserves, particularly of
New York City and Chicago banks, has brought renewed stories to
John¬
began
his
banking
career
inj his
that
.
,
effect..
Every announcement of the award of discount
.
Lebanon,
Kentucky, as
.
age
,
timidity carried to
seems
devices
four
bank
Either
list)
examiners at
large. He held this
position until he became a Vice-
or
at
doesn't.
.
To
.
believes (1) in the ability and
the
New
to
came
President
and
•
Chemical
in
In
as
Under those
Vice-
a
Director
of
and
Bank
President
39.
York
1920
1931,
the
at
he
was
Chairman
both
as
until
Presidency,
Chairman
and
Officer
of
tion he
now
In
.
and
permitted
President
right off.
.Chief
tesimal
Executive
Bank's
ficult
and
And
is reflected in a
statement
the
ties.
.
these
leadership
an
impending rise of
rumors
to
appears
.
*
;
.
31, 1942, which em¬
phasizes the tremendous strides
(Continued on page 711)
in
But
.
.
infini¬
an
highly sensitive" rates just doesn't seem
■:'
5 What we—and that "we"
.
the
.
.
of institutional investors
.
in
Govern¬
the major
is
in
trend of
Not intermediate changes.
.
most
comfortable
borrowing
war
activi¬
the
.
Federal Reserve's program is
two big
stages.
.
.
.
ease
reserve
ease
the market "easily,"
move
brought the require¬
To
...
to
.
.
The first
and most pressed cities from 26 to 24%.
.
.
.
Under the amendment to the Federal Reserve
ten other Federal Reserve
QUICK ACTION ON DESIGN
Act, passed July 7, the
In the
cities, the requirement level is at 20%.
Board may bring these rates down to 20%.
Reserve
In the cities
legal opinion as to the
its action and main¬
a
of
that
justifies the inference that
"its
absence from
the
unfavorable to the Govern¬
was
body
...
.
.
.
characterized at the next lower level, the requirement
AND CONSTRUCTION
1
of
the
1
of
By-Laws of the
v
(Continued
page
on
720)
/_
1
portunity
to
read
the
statement
made by Robert W. Baird and the
exhibits introduced into the rec
ord by'the NASD.
that: both
the
exhibits
It
and
bonds
in
anteed
guar¬
Head
Office
Commercial
prior to maturity)
t
-
C
FULLY
R. H. Johnson & Co.
ENGINEERSandCONSTRUCTORS
;
conspicuous
is any opinion of
its absence
the legality of the As¬
on
sociation's action.
Baird
said
that
INVESTMENT
San Francisco
64 Wat!
only
inference
its
that
absence
it
Board's
was
Wilkes
1856
H. Hentz & 'Co.
I
1
Members
v-v
...
Actual Trading
'•
,
New
York
Stock
York
Curb
Exchange
Cotton
record
in
as
the
truth
it
Am I not correct
believing that
my
inference is
much stronger than the "red her¬
that
one
Mr.
Baird
drew
this
vitally important as¬
pect of the proceedings?
j
'j
Mr. Baird concedes that wealth
(Continued
on
page
711)
t
was
cer¬
Page
Bond
Insurance Stocks....
tainly
model
a
generality.
let
mean,
said
of vagueness and
Selector
710
706
(The)
To
me
illustrate
point
what
what
out
I
he
regarding- the legality of the
Association's
action
in
the amendment:
adopting
Calendar of New Security Flotations
718
Investment
711
Trusts
Municipal News and Notes.
Our Reporter on Governments......
705
Personnel
708
V.
Items
Railroad Securities
.
"With respect to the question of
712
.............
Securities Salesman's Corner
power,
the Board of Governors
this
matter
naturally surveyed
Tomorrow's
carefully and thoroughly, and its
own
conclusions
obviously
are
suggested by its action in promul¬
Uptown After 3
gating the rule,"
That
sentence
signed to
711
Walter
Whyte
Says
carefully
de¬
709
THE
little, but, neverthe¬
lead your body to infer
to
—
716
.."
' V
V
is
Market
709
say
CHASE
BANK
First
Bought—Sold—Quoted
?
;
FUND
7
<
Street,
all
E.
Towns
31
Milk
N.
in
......
Barre
Street
facilities '
N
Boston
Y. Phone CAnal 6-2610
Boston
SUDAN--
the
C.
the
in
and
MAY & CANNON
AGENCY
principal
EGYPT
correspondent
£3,000,000
.
Branches
Williamsport
Buffalo
service with Chase
£3,000,000
.
.
William
King
Broaden your customer
Corp.
Cairo
Phone—Hubbard
8360
Member
Federal
Deposit Insurance
Corporation
,
Teletype BS 568-569
I
-
Exchange
NATIONAL BANK
Underlying Mortgage
of INDIA. LIMITED
Markets, always
Railroad Bonds
Exchange
New
and
6
PHILADELPHIA
Pittsburgh
draw
can
the
unfavorable to
position,
must have been.
in
I
from
my argu¬
statement
Boston
1
No.
CAPITAL
LONDON
SECURITIES
Albany
Troy
Board
.
Baird's
Cairo
Register
i•" '
PAID
(RESERVE
Street, New York
BOSTON
the
"surveyed this matter carefully
and thoroughly."
Surely then it
must have had a legal opinion and
Bank and
Mr.
less,
Established 1927
52 WILLIAM STREET
NEW YORK
world
the
but
em¬
ment.
of EGYPT
against depreciation
in value
Sanderson & Porter
the
securi¬
on
the
considerable
phasis to what I said in
NATIONAL BANK
(Series E and F are the only
FINANCING and VALUATIONS
solicit
to
State
seems to me
statement
add
subject,
counsel
across
op¬
various
administrators
OF THE CITY OF NEW YORK:
BUY UNITED STATES
MANAGEMENT PROBLEMS
Established
general
by
Association's
employed
of
laws
Dealers, Inc., I have had
WAR SAVINGS BONDS
Chicago
ties
the
to
NATIONAL
REPORTS
In connection with
ir: / " ;
opinions
ring"
an
sug¬
reveals that considerable
was
from
also
AND
SURVEYS
exhibits
is
Article
"obviously
are
Reference
the
'
:
to the amendment to
that
gested."
Mr.
appearing
before
your
August 13 in opposition
on
a
permitted in the shortest-term list, there
what is to happen to interest rates.
over
colorful words.
more
ments of the
support
.
are
requirements by gradual
that of Mar.
in promulgating the rule.
Association, he asserted, must
The
Section
.
States—are interested
changes
Apparently,
31, 1917, with
action
Since
of
rumors
As long as the long-term market is held at current rates
argument
no
seems
not say so, nor
effort
Commission, Philadelphia, Pa.
rise in short-term rates will be
some
of thousands
United
and only minor
growth
legally
Baird does
can
But Mr.
sions"
the
.
Gentlemen:
sign we've seen indicates the Treasury and Federal Re¬
.
adopted.
failed
to
support "by
argument, citation or statutory
reference," the vital question as
to the legality of the Association's
informed
.
another minor degree.
up
permitting
.
be
question
\
also
Securities and Exchange
System have full intentions of maintaining the major trend in
direction
history.
comparison of its
Mar.
of
,
go
tens
the
every
serve
country's
political
Johnston's
Mr.
under
varied and dif¬
remarkable
bank's
The
as
any' in
as
economic
financing
war
.
Government market.
the
cov¬
the
in
lieves the amendment
Commission that the statement in
Dunne
Mr. Dunne's letter is reproduced
herewith:
-}:J
;.
;
Already, there has been
The statistics at your disposal will prove that
Commercial paper rates and the discount rate may
.
advance; in
includes
ments
118
by Mr. Johnston's tenure of
office has been
.
important enough to talk about.
bank, which posi¬
holds.
" '
T
!
pre¬
ing Board's position."
.
(2) in the magnificence
essential, pivotal part of
as an
the coming months.
«
.
statement
does he in any way
by argument, citation or
statutory reference, the "conclu¬
Mr.
it
short, this writer
unjustified weakness in financial analysis.
V
allowed to
be
as
,
the
to
of the NASD.
urer
National Association of Securities
over
advance;
an
the
of existence, the period
years
ered
continuing
■
Chemical
the
,
It's entirely possible that
1935 when he relinquished
the
discussion
circumstances, first the
this writer to be
Chairman of the Boatd and acted
reference
pared by Robert W. Baird, Treas¬
record
more cuts
age of
elected
and declared that both
merely emphasized the
by him in op-<3>
Mr. Dunne had that the Board of Governors be-
tained
...
(long- and short-term
important proportions and then the ending of the
the
made
posing the plan.
validity
elected
was
arguments
have had
willingness;
(3) in this market
financing pattern.
war
.
this
cut
of control and
27, 1917, Mr. Johnston
doesn't.
or one
part of the entire pattern of
as
.
President of the Citizens National
On Aug.
one
(1) the ability and (2) the willing¬
this Government market
sees
whole and
as a
Either
.
.
one
one
.
.
been controlled and of the power of the supporting
the disposal of the authorities or one isn't.
;
Bank, Louisville, Kentucky, at the
age of 32.
extreme.
an
is convinced of the magnificent manner in which this
one
market has
made
of
,
,
to maintain interest rates at these levels
Either
national
one
Johnston
.
old
was
ness
was
years
he
H.
he
30
a
.
believes the Government has
and
;
,
when
/-
This
exam-
n e r
permitting
one
...
national
bank
rule "a model of vagueness and
generality,"
the statement and the Association's exhibits
.
.
.
of
26, he became
Percy
.
$340,000,000 addition to
surplus funds here and a $70,000,000 addition to surplus funds in
Chicago;
And suddenly, presto! W
Fears of hardening of,
short-term rates for more than temporary periods, have disap¬
peared.
Bank.
the
letter sent to the Securities and
Exchange Commission under
Aug. 18, Frank Dunne, President of the New York Security
Dealers Association, characterized the:statement made
by the NASD
spokesman before the SEC hearing Aug. 13 on the minimum capital
.
insignificant change but
an
Na¬
tional
.
requirements of New York City; and Chicago banks has been made
effective.
The requirements have been cut from 26 to 24%—
in the
Marion
Approve Legality Of Minimum Capital Plan
a
.
bills—at admittedly advancing rates—has intensified rumors that the
Treasury and Federal Reserve System cannot hold the rate even if
they wanted to.
Now, though, a minor revision in reserve
native town of
i
To
For weeks now,
concerning-an
interest rates.
clerk
Copy
a
date of
ston
a
//
Chem¬
Mr.
Price 60 Gents
In
with the bank
At
Thursday, August 27, 1942
SEC Told Thai NASD Gould Not Gel Counsel
tday.
a
Office)
\\
Company, ris
anniversary
25th
Pat.
Chair¬
the
Section I
-
V.-':.V—> V
.
Volume
In 2 Sections
York
New
Chicago
Board
Orleans
And
Inc.
Exchange,
Commodity
New
of
Cotton
other
in
manifold grades of
Bankers
Over-The - Counter
Kenya
Trade
Head
Exchange
NEW YORK
Kobbe, Gearhart & Co.
Members
BOSTON
CHICAGO
Security
Tel. REctor 2-3600
Philadelphia
SWITZERLAND
Y.
45 Nassau Street
DETROIT
PITTSBURGH
GENEVA,
N,
Boston
<
!
V
A"
I
»
Ass'n
New York
Teletype N. Y. 1-576
Telephone:
Telephone:
Dealers
and
Burma,
Aden
Subscribed
Reorganization Bonds
Bishopsgate,
E. C.
Ceylon, Kenya
and
Enterprise
6015
Enterprise
1250
Inquiries
Zanzibar
Paid-Up
INCORPORATED
^
26,
in
Uganda
and
Colony
in India,
Colony
Cotton Exchange Bldg.
Government
London,
Branches
N. Y.
the
Office:
Securities
Exchanges
to
Capital.
.£4,000,000
Capital ..,,.£2,000,000
Reserve
Fund....... .£2,200,000
The
Bank
banking
..
conducts
and
Trusteeships
also
every
exchange
and
description
Members
New
of
52
Executorships
York
WILLIAM
business
undertaken
invited
HART SMITH & CO.
Bell
Security Dealers Assn.
ST., N.
Y.
Teletype NY
HAnover 2-0980
GUARANTEED
BO.
New
York
RAILROAD
STOCKS-BONDS
1-395
Montreal
Toronto
Gr.
9-6400
Telephone
NEW YORK
52
Broadway
N.Y.
1-1063
Teletype
THE COMMERCIAL &
706
*Phila. Reading Coal &
We extend
Iron Co*
members
"
C/Ds—6s/1949
5s/l«13
/
Denver & Rio Grande Western
of
4s
*!Ve
have
every
Circular
Request
on
.
Accord.
in
Traders Assil
Westchester
Bank Stocks
Mortgage Certificates and
our
,
Board of Trade
Nunn,
Building
firm
MArble
2-7634
Bell
Teletype
STRAUSS BROS.
S.
20
NEW YORK, N.Y.
REctor
Shwab
NY
7-8500
York Security
Members' New
1-2361
32
NEW
Direct
Specialists
CHICAGO
4-8640
Harrison
1-832,
NY
834
Teletype
general
2075
CG
with
Members New York Stock Exchange
which
associated
Maritime Bldg. Brown-Marx Bldg.
for
In the past he
New
!,/''
&
129
manager
Co; ' and
in
past
American
KEIPER and ZIMM
REPUBLIC OF CUBA
4l/2s, 1977
30 Broad Street
Recent Weakness in This Issue
New York
Telephone:
Bell Teletype:
WHitehall 4-4SSO
NY 1-636
tion of Warren Brothers
Result of Confirma¬
as a
Reorganization Offers
Opportunity of Price Appreciation and
,
Good Yield
^
.!
said
*
>
plan of Warren Brothers Company, an important part of which
consisted of settlement by the Republic of Cuba of tne company's
claims for construction work completed in 1931.
Under the terms
of the settlement, the Cuban Government paid tot Warren Brothers
$8,702,000 in Cuban bonds—$4,323,300 principal amount of External
4M>s, 1977, and $4,379,600 of Ex- *
:
—
—
CENTRAL &
SOUTH AMERICAN
ternal
4V2S, 1955. Under the reorf-
ganization plan, Warren Brothers
pledged $4,150,300 of each issue
SECURITIES
oehind
its
she company
within three months
Tel. WHi. 3-3840
Teletype; NY
amount
1-1928
mation of
which
plan all its Cuban bond?
not
are
pledged.
In
con¬
of the imminence of ap'r
proval of the reorganization, and
sequence
R. i. Schmidt Elected
che expectation of sizable
Schmidt has
amount^
4Vis, 1977, coming into the
market, this Cuban issue has been
of the
Blyth Go., Vice-Pres,
Reginald M,
extremely. weak, ;;;
Aside
been
from
,
,
/ :.!•,/•'V":.
! 1.■ )■
technical, as-!
this
elected Vice President of Blyth &
pect of the market for the Cuban
Co.,
Inc.,
4Vis,
past
governor
14
Wall Street, New
York City.
He joined the firm in
1932 and is in charge of
municipal
;■ operations in New York.
He is a
(
Bond
of
the
Municipal
Club of New York.
1977, there is nothing in
the picture to justify the
bonds,
selling in the lew 70s and yield¬
ing
around
6.50%.
In
fact,
current levels the bonds
lieved
to
be
are
extremely
at!
be-!
attrac¬
chances of profit market wise.
The
overall
I
Cuban
situation,
which looked none too appealing
stock of the National City Bank
eight or nine months ago, has im7
of New York is very
interesting proved considerably and now
and offers considerable possibili- looks extremely favorable,
The
j ties, according to a study just is¬ most important item in the eco¬
sued
by Butler-Huff & Co. of nomic position of Cuba at
present
California,
210
West
Seventh is the fact that the 1942
sugar
Street, Los Angeles, Calif. Copies crop
has
been
bought
by ■ the
of the circular
discussing the sit¬ United States. Whether or not the
uation in detail may be had from United
States is so fortunate as
The
present
outlook
for
the
t
the firm upon request.
to be
it
V
Cement Stock Attractive
According to a circular just isj sued by Hartley Rogers & Com-
able to
makes
insofar
ments
are
charge,
of the
,
Ce-
ment, Inc. offers attractive possi¬
bilities
in
view
of
the
current
gains in cement production. Copies
of the circular containing interest¬
ing details may be had from the
i firm upon request.
concerned.
United States is
to
up
the
southern
California territory,
Un/ler
a re¬
with
out
The transfer of Mr.
Now
Municipal
Department, will con¬
department with
headquarters in the New York of¬
fice.
in
Hiram
become
tional
in
that
H.
the
a
the
and
city
sugar
crop is no
problem, interest centers
coming crop. A mis¬
the
from
went
to Cuba
this
country
recently
of
Employees
1981
.A,Saxton&Co.,Inc.
N.
Y.
WHitehall 4-4970
W
1-RrtO
f
-
;;
1477
Philadelphia
New
■
York Phont
2-2280
HAnover
v
Teletype
PH
257
•'
Form Heath & Co. In
■
*
Elgin
'i
The. Financial Chronicle, >
to
! ELGIN, ILL.
ties business.
'
}
level
expenditures
of about
firm
to
—
Officers of the
David
are
nected.
peace
a
rence
load
tax
a
of
about
'
>
Harley
$10,000,000,000 and
new
L.
E.
.
.
.
;
1
.
Nehring and Law¬
Ricketts, both previously
A.
with the local office of Alexander
the Chief Execu¬
tive -believes
the
debt
the
& Company;'are now: associated
be with Heath & Company, Inc.
can
for
war
a
Chicago and Harold A. Talbert
be in charge of sales outside
Chicago. ;
of
Mr.
Royce is well known
Pacific Coast,
investment
number
amortization,, however, would
In Enlarged Quarters
.
:
to his recent conferees.
of years
"The
President's
plan
there
away
war
of
"The enlargement
Building.
our
quarters,'/ Mr. Brand de¬
/;/.% clared, "has been made
the
has
a run¬
post-war inflation and
ing off the
Bank
debt.
pay¬
i
,
by
the
clientele
and
necessary
number
increased
the
of
promise
out*
of
a
bright future for* the investor in
conservative
securities."
the
on
having been in the
business
re¬
main basically the same, according
department dual purpose of preventing
sales
for
a
Maintaining Wholesale And Retail!
before associat¬
.
.
j
Markets For Over-ibe-Gounter Securities
ing himself with Blyth & Co.; Inc.
in Chicago.
/r;
By WHITMAN C. HAFF
Rail Outlook
There
road
can
be
earnings,
no
Promising
which
/- -V!'
proposed new rule of the Securities & Exchange Commission
compelling over-the-counter dealers to quote markets to their cus¬
tomers at the time of a transaction brings to the fore the question of
strictly maintaining wholesale and retail markets for over-th4-
;
doubt that rail¬
for
aggregated
the duration
of the
war,
the
transportation,
threat
of
:■
air
the
study
states
that; many .years„» of experiment
and organization will be necessary
for
the
for
peace-time
ooeration
of
air
V
The
counter securities.
'It is
a
ing such markets.not
does
ethical
tion.
;;'""l',' l
well known fact that
seem
;
to
no
Vr/,';--1"/.'I'.''
rule has been enforced
govern¬
In fact, there <•>
be
even
In the over-the-counter market
an
rule
regarding the ques¬
Yet buying and selling se¬
it
seems
tween
be "dog
to
the
dealer
eat dog" be¬
goes into
who
the wholesale market and buys
dealers' mar¬ plus a commission, and the dealer
who tries to make a living by buy¬
ket, plus the regular Stock Ex¬
change commission is not only un¬ ing and selling wholesale and re¬
fair to the dealers who buy whole¬
tailing to his customers on a net
sale and sell retail at a net price, basis.■'
Most
over-the-counter
but
loses
dealers
many
customers
for
them.
to
considerable
expense
in
Why should an investor be go
able to buy and sell at the same maintaining
expensive
research
departments, salesmen and clerical
price as a dealer?
There should be a wholesale and help and it is only fair to such
dealers that such organizations as
a retail market such as other in¬
curities
in
the
over-the-counter
wholesale market, or
,
purpose
.
T.l.tnn.
ments
institu¬
,
Securities Co.
PINE ST.,
Phone
Locust
freight." Air transportation cannot
conducting preliminary negotia¬ effectively compete with rails or
tions for acquisition of the entire even ships where time and dis¬
1943 output. The mission returned tance do not sufficiently
compen¬
without signing a
contract, which sate for mass transportation.
has left the matter
"It is not improbable that we
up in the air,
but Cuban sugar interests are
the National Association of Securi¬
glad are
dustries enjoy.
placing too much emphasis on
that no price tag has been
placed
On the Stock Exchange there is ties Dealers should supervise and
the word 'competition' itself," the
on
the sugar while
production
only one market, as every one see to it that such markets are
costs are
bulletin continues.
rising.
"Carrying knows, and that is a retail market, strictly maintained.
The Cuban Sugar Institute has the brunt of
If such regulations should be
our war-time trans¬
unless one can call selling large
put
4*/2S & 5s
70
the
of
will
as
1942
Chestnut Street,
1421
Phila.
Heath, Presi¬
dent A and
Treasurer;
Alice
J.
this fiscal year are/;expected tb
Heath, Vice-President,1 and Bar¬
reach
Mr.
$77,000,000,000,
and
the bara J; Wechter, Secretary.
Heath was previously Vice-Presi¬
President foresees a public debt of
dent of Alexander & Company in
.about $175,000,000,000 by the end
charge;of the Elgin office, with
of the war.
By cutting governr which Miss Wechter was also con¬
Belding, Jr. will
head
Regarding
that
'i/.ff
Wiltberger, heretofore in number of years, of course, would
SHEBOYGAN, WIS.—Walter J.
charge of wholesaling activities, put? the public; debt higher than Brand & Company, Inc., announces
will succeed Royce as manager of,
the $175,000,000,000 foreseen now its removal to new and enlarged
the office, and T. Henry
Boyd,
who
has
been
manager
of the by Mr. Roosevelt; His ideas about quarters* in the Security National
"Promising Outlook for Rails." /
Cuban
j
H.N.NASH&CO
S.-
sustained
$150,000,000 and
-
2039, Pfd. & Common
3-6s
.
Heath & Com¬
believes
heavy pany, Inc., has been formed with
offices in the Elgin Tower. Build¬
continued
long
ing, to engage in a general securi¬
off the billions
Royce to Los Angeles 'occasions
amortized.'
/.//;'!
changes affecting other personnel
Prolongation of
the Chicago organization.: A1-;
fred
i
Transportation Co.
in post¬
war
r
of
$200,000,000
industry.
the
be
Lives etc J
"Total government expenditures
.
to
should
taxes
enough .to. pay
being spent now.
$20,000,000,000,
Sixth Street,
Phila.
a
h-/'Mr. Roosevelt, it was reported
continuing
headquarters in
Angeles office* 215 West
Corporation, the
$289,000,000 in the first six months
advancing, free 61
of 1942, will be both large and
90%';'of the value
soon
•;
authoritatively^
on
Philadelphia National Bank
vSpecial
'
the
Los
Penna. Co. for Ins.
.
"The President's plan for amort-
and will make his
arrange¬
1942 sugar crop as
sion
6s,
appointed to supervise
production for the. firm in
according to the current,bul¬
letin of Strauss Bros,, 32 Broad¬
way,
New York
City,
entitled
around
Utilities
been
sales
the sugar is placed in warehouses
on the island.
This involves pay¬
ment of between
longer
Associated Electric
and manager of its Chicago
office, 135 South La Salle Street,
Cuba
to
the .financial
agreement worked
Defense Supplies
| stock of ; Superior
Portland
difference
no
as
here,
sugar
cent
j pany, 1411 Fourth Avenue Building, Seattle, Wash., the class "B"
'
ship this
Blyth L. A. Dice
Inc.
has
which in
outlined by him re¬
cently in talks with national lead¬
7
CHICAGO, ILL.—Donald Royce;
Vice.-President of Blyth &; Co.,
tinue
tive both for income and for the
Bank Stock Interesting
To
of
consumi-
of
Royce Transferred
issued.
were
indenture,
is obligated to sell
Roggenburg & Co.
Bell
bonds which
Under the terms of the
Members N. Y. Security Dealers Assn.
;
equivalent
an
own
D.
>.
war years was
■
j;
{
can
the United Press
ers.
Fidelity-Phila. Trust Co.
ends
izating the cost of the
Readers of this column will recall the details of the reorganiza¬
in all
debt
war
war
'
Exchange Nat'l Bk. & Tr. Co.
Girard Trust Co.
Washington account said in part:
4
-
tion
We Maintain Active Markets
Broadway, N.Y.
%
be paid off
by continuing
heavy; war-time taxes and cutting
government expenditures to the
bone, it was learned on Aug. 12,
after the
/
Central-Penn National Bank
President Roosevelt believes the
,
><
v
with
was
Heavy Post-War Taxes
§T« Pay Oft War Debt
BONDS
:
of J. C. Bradford
the
Corn
LATIN AMERICAN
198
NY 1-1557
Elder & Co,
private wire New York to Chicago
BH
25 Broad St.
New York, N. Y.
/
in
29
Orleans, La. Birmingham, Ala.
Direct Wire
was
Gray; Shillinglaw & Co. and
•was manager of the municipal de¬
partment of the American Na¬
tional
Company.
Mr, Kidd is
Dealers Ass'n
YORK
DIgbv
Teletype
Co.
been
years.
Co!
Steiner, Rouse &
with
Board of Trade Bldg.
Broadway
&
he, has
many
BROADWAY
lONKERS,
N.Y.
BROADWAY
Debardelaben 4s, 1957;
partnership in
Co.; 418 Union
&
Stock Exchange. Mr. Ledyard has
been president and treasurer of
?
"v
INC.
120
Bradford
Street, members of the New York
'/
•;
Schoonover, deWillers & Co.
C.
!
Birmingham El. 7% PfdL
NASHVILLE, TENN.-Quitman
Ledyard and .William E. Kidd
J.
CHICAGO OFFICE
Mortgages,
County
R.
"
in the
All
Alabama Mills
J. Bradford Partners
attending the National Meeting of the
avail themselves of the facilities of
to
reorganiza¬
this
Ledyard & Kidd To Be
fellow-
our
Thursday, August 27, 1942
will be admitted to
to anticipate ah
of
All Committees
tion.
cordial invitation to
National Security
1036
reason
consummation
ea;Iy
a
FINANCIAL CHRONICLE
[I
warned producers
against overoptimism regarding the amount of
sugar which might be taken over
by the United States next year.
(Continued
on
page
720)
portation,
it
.
would
.
appear
railroads will long remain
sential bulwark in
tem."
'•>
'
our
■'•!'•
that
blocks
a
an
es¬
carrier sys¬
1
of stocks less a concession
wholesale market.
who split his
commission with his customer on
become of the dealer
such
a
in
effect the
dealers
.
!.
loss of customers to
who
retail
would
be
entire
industry would
on a more
deal?
)
i«
What would
much
securities
reduced, and the
be
placed
fair and equitable basis.
Volume. 156
Number 4102
COMMERCIAL and
<
THE COMMERCIAL & FINANCIAL CHRONICLE
Y
:
To Enforce Utili
FINANCIAL CHRONICLE
U.
Reg.
William
S.
Patent
B. Dana
*
25
;:
Company
3-3341
sentence"
,,'
;
lic
Editor and Publisher
William D.
provisions
of the
Pub¬
Y
Commission will be insisted upon/
it was asserted on Aug. 24 by Rob¬
Riggs, Business Manager
ert E.
offerings of
High Grade
AND COMPANY
One
Y
PREFERRED STOCKS
Thursday, August 27, 1942 .<■'/*
4;
with
statistical
a
issue
Gray,
Building
Western
1942
by
William
B.
'
section
have
been
war
...
effort.
NOTE—On
account
of
"Herald
y
r
fluctuations
the
according;; to
the New
to
"c/'f
that
sound
practices must con¬
an
objective of the
tinue
States
CERTIFICATES
HOME
TITLE
LAWYERS
LAWYERS
INSURANCE
N. Y. TITLE &
STATE
TITLE
TITLE
&
&
other
CO.
"Present
CO.
ticular
CO.
TRUST
&
Members
New
York
Stock
St., N.Y.
Bell
NY
its
has
war
:
:■
-
evils
in
significance
takes
crease
pressure
company
Exchange
for
the
enforce¬
view
into
managements to
shape to finance
requirements
Finance
Committee
of the
Committee
nance
of
Chamber
the
of
as
on
come
to
new
will
as
to'
Y-t
con¬
permit
post-war
fy^YYVYyY;
many
circumstances,, that
undoubtedly involve taking
steps in; compliance
the provisions of Section 11.
will
substantial
with
Fi¬
Commission
The
States
states
that
it
is
C.
Osgood, ■ Vice-President
of
the ments in straightening out the fiT
First National Bank of Chicago, nancial
structure ' of
their
sys¬
testified on Aug. 12 on the estate tems."
1,
1 '
and gift tax aspects of the Reve¬
Bill
nue
members
of
of
Commerce,
One
1942.
the
Roy
of
Chamber
four
mittee to present statements to
the
Senate group that day Mr. Osgood
analyzed the pending measure by
discussing phases of the bill as
f
Paine, Webber Firm
(Snecial
to
The
Financial
DETROIT,
MICH.—George Al¬
Nicholson, Jr. has become as-r
bert
.
.
in the United States already close¬
prior thereto
approximate those of Great
.Britain and Canada, Mr, Osgood
ly
was
in the statistical
department of Whitlock, Smith &
Co.
-
.
;said:':''/v
House
Ways
and
Means
of
rejection
Pratt & Williams Add
increase the present
high estate and gift tax rates. We
trust this committee will make the
same
1
•
decision."
^
•' rj';
Mr. Osgood urged continuation
for
to
fe- Hark Price To Staff
,
provision of tax-free reserves
payment of estate taxes, pro¬
insurance or
vided by earmarked
other liquid assets.
to
the
(Special to The Financial Chronicle)
.
..
1
incalculable
for
•
successfully
disputed.
many
the
proposal, most
letters
analysis of the
of. the
We
have
is
'YY
V:
r
estate
belief,
an
"for
attention of the Senate Committee
the
He also discussed
various technical and administra¬
tive amendments to the estate tax
law
provided
in
the
House
Mr. Osgood in
why such
on
wholly
a
a
sent
to
reproduce
custom,
the
by
us
erroneous
the
sixth
inequality
time
in
among
years
individual
of capital
contribution of different
citizens
depend
fortuitious
entirely
upon
circumstances
and
letters
more
dealers and
and
dealer
of
source
^Y,-'/
<
in
im¬
which
groups.
the
As
In
Co.
Title
Co.
Ctfa.
Co.
Ctfa.
all
Title
Co.*a
other
Trust
Ctfa.
Participations
L.J.GOLDWATER & CO:
INC.
Membert New York Security Dealert Assn.
39
Broadway,
HAnover
New
2-8970
Rail
York,
Teletype
N.
NY
Y.
1-1203
Study Available
Shields & Co., 44 Wall St., New
York City, members of the New
-
York
Stock
pared
and
Exchange, have pre¬
a
comprehensive analysis
comparison
of
New
York
Central
and
Southern
Railway Companies.
be
had
from
quest.
the
>
Pacific-
Copies
firm
may
upon
re¬
-
communi¬
Interesting Speculation
'
-If the SEC is successful in promulgating and enforcing the
:
visions of Proposed Rule
Invited
Complete Statistical Information
prefers to remain anonymous:
DEALER NO. 20
pro¬
Common stock of the Deep Rock
Oil Corporation offers an interest-1
ing speculation* according to cir¬
cular just issued by Doyle, O'Con-;
nor
&
washed up, ;Y"
Co., 135 South La Salle
-'y"YY
;Y:& ;Y:V v '
-.vY
:.
As this rule would mean the death of the
Copies of the;
investment business, Street, Chicago, 111.
circular discussing the favorable
we are strongly of the
opinion that the National Association of Se¬
curities Dealers should adopt an
unyielding, and unalterable stand 'aspects of the situation may be
the
investment
X-15C1-10, it is
business
of.
the
U.
and fight it to conclusive victory or
considered opinion that
our
S.
is
completely
and
evident
to
all
economic life
our
investment
to
men
too
are
into
go
only interpret this proposed rule
as
tempt to concentrate all economic
power
and
crats
eliminate
their entire lives in
from
|had
numerous
in
being
minute
the
and
detail.
invest¬
life
We
have spent
servicing the needs of their investment clientele,
A substantial portion
of the investment business of the
country
is handled by firms who deal both in over-the-counter securities and
members
ships
stock
exchanges.
The
exchange member¬
maintained, at
are
such
counter
of regional
least at present, largely for the prestige
membership gives the member firm, but the over-the-
business
is the
main
source
of
revenue
which supports the
firm and its employees.
,
involves
many
does not have.
obligations, services and
The broker executes
an
and the
man
investor
which the broker
expenses
order and
no obliga¬
except for the delivery of the security purchased or for the pay¬
ment of the security sold. The majority of customers of the invest¬
ment house place the responsibility on the shoulders of their invest¬
to
man
continuing obligation to keep the investor adequately in¬
developments within the company whose stock
and
also
to
keep him informed of government rules'and
regulations which Avithin a short space of time may change the tyhole
outlook of the industry in which his funds are invested.
For this
service, which tiiay extend
In
the
receives
final
no
over
a
long period of time,
the
invest¬
Co., Toledo, Ohio,
a
died;
heart attack at his
analysis,
the
success
or
failure
of
any
investment
the customer feels that his af¬
are
'
(Continued
•/'-
on
page
714)
' '
municipal bond specialist, served Y
municipal secretary for the In¬
as
Bankers
numbqy of
become
Association
years, ago,
associated
with
Braun,
Bos worth & Co.
Service Man
Customers
Man
record
of
locate
with
20
with
years
firm
of
*
.
;
stock
.
age
Banks
^
:
successful
wishes
desirous
to
of
having their clients handled ef¬
ficiently and kept well informed.
Havs proven ability to'promote
Seek
position only on basis of
rendering
service
to
firm's
clients.
Box CM-20, Financial
Chronicle, 25 Spruce St., New
York, N. Y.
:
f
"Y;
-
45, 22 years' experience in bond and
brokerage business, wishes position with In¬
Company or Bank or Trust Company in this
To Open
-
surance
city where
a
thorough knowledge of all classes of
investment securities is desired.
Box
A Trading
Department In A
Small
Highest reference.
INS-7, Financial Chronicle, 25 Spruce St., New
York, N.Y.
;
Over-the-Counter
Investment House.
Box
G 25,
25
Financial
a
resigning to
Insurance Companies
Executive,
'
Mr. Magee, a well-known-
home.
business.
compensation whatever.
better handled and that he is receiving as good service from
the person or firm with whom he deals than he can secure else¬
where. All investors know that no firm can exist without
making a
fairs
&
suddenly of
purchase for them the type of security that best suits
of internal
holds
/
buying department of Braun, Bosworth
their needs—taking into consideration their individual
circumstances,
age, objectives, etc., and from the moment the sale is consummated,
a
v
Japies Magee Dies
assumes
tion
ment
Doyle,'
y
James D. Magee, manager of the:
vestment
The relationship between the investment
.
■
can
who
men
'
too self-
deliberately vicious at¬
a
from
upon
request
O'Connor & Co,
*
in the hands of the bureau¬
economic
our
finally
complete defeat.
The reasons this rule would completely eliminate
:
ment dealer from
that
emphasize
ten
evident
conception of the char¬
Y.
;.Y-Y/
some
do not reveal the
we
writer
too
dealers. regarding
-
In
Mtge.
&
Bank
seriously
is unrealistic
program
individual
all
from
-
cannot be
thoroughly dispassionate
a
herewith
and
economy
made
to
"Y.yYY;/ Y'Y.
cited -his
points
elastic tax system and any
giving his reasons death."
taxes,
other
taxpayers by making the amount
the
measure.
gift
among
increase in rates would
dying from causes attributable to
military service, were called to the
by Mr. Osgood.
and
adopted
exemptions from estate taxes
,to members of the armed forces
which constituted
reasons
estate and gift taxes are not suited
to
acts
been
received
glad
usual
our
has
have
public
financial
over-the-counter markets.
cation yvhen
opposing further increases in
cial
revenue
of
we
investing
vast
are
been
the
nation's
This fact
which
practical and based
acter
to
the
4-6551
.
Provisions of
during
and immediately
after the first
World War, which accorded spe¬
the
damage
vital part of
a
of
Mtge.
over-the-
In suggesting the rule, the Commission apparently believed that
such: a program was necessary in order to further
safeguard the
public interest.; That it will fail of that purpose and indeed will
firm is based entirely upon whether
Corporation.
Bond
Y
endanger
and
sick
Specialists
Lawyers
*.■■
Sept.■ 15.■>Y; v'Y'YY'Y'1-
with Pratt
Cleveland
the
These groups were asked to make known their
views
ment house
First
of
Are
Inquiries
29 and thereupon forwarded copies of
organizations within the industry for their
CLEVELAND, OHIO—Mark M.
Price, Jr. has become associated
and
regulation
Commission
cause
BUY
stocks
are
WHitehall
Lawyers
July
on
various
have
list—
STREET, NEW YORK
We
Commission, it will be recalled,
further
by Aug. 12.
The Commission later announced
that the date for the submission of comments had been
extended to
he
Williams, Citizens
of the present $40,000 general ex¬
Building. : Mr. Price was formerly
emption and $40,000 specie ex¬ manager of the sales department
emption for insurance anq,rejec¬ for M. A. Cayne & Co. Prior there¬
tion 6f the House bill proposal of to he was with Allan
& Co., First
one overall exemption of $60,000
National Securities
Co, and the
and
markets
The
for
our
REAL ESTATE SECURITIES
made
rule
you
Y* Telephone:
industry
new
consideration.
formed
the:Treasury
proposal to
the
measure
there is
Committee is to be congratulated
its
the
which
Chronicle)
with
posals advanced by the Treasury sociated
Paine,
Webber,
Department
before
the
House Jackson ?; & ' Curtis, *: Penobscot
Ways
and v, Means
Committee. Building. : Mr.
Nicholson
was
'Pointing out that the House com¬ formerly vice-president of Ameri¬
mittee recognized that death taxes can Industries
Corporation and
on
counter
are
passed by the House of Represen¬
tatives as compared with the pro¬
"The
suggested
v
G. A. Nicholson With
com¬
securities
making the proposal effective.
not
only willing but deems it its
duty to assist far-sighted manage¬
that
93 WALL
\
perfectly evident that, practically the
is unequivocally opposed to the proposed
SEC bid and asked disclosure rule (X 15-C
1-10) and is prepared
to employ every possible means to prevent the Commission from
promptly
"In !{-
i
Senate
Federal
United
means
adjustment
conditions.-
member
a
such
flexible
Estate & gift Taxes
the
that
the holding
upon
has already been
the
grips with the. serious problems of
the operating companies
Opposes Increased
before
'}■■■-
putting
1-2033
Teletype NY 1-5
Exchange
Industry To i Wage litter Fight
Should SEC Insist On Bid & Asked Bute
It
;
war-time exigencies may well in¬
by
Appearing
^
~
normal
have 'par¬
struction
v.■
em¬
for - attaining
conditions
Commission
•
WHitehall 4-6300
Teletype
the
ment of Section 11 of the act. The
CO.
companies
Newburger, Loeb & Co
40 Wall
if
less by the nation at this time.
CO.
GUAR.
MORTGAGE
local
that
and
times, the luxury of unsound util¬
ity financing can be afforded even
CO.
MORTGAGE CO.
GUARANTEE
All
."
.
-''*
GUAR.
MORTGAGE
TITLE
into
"Whatever
by
MORTGAGE
be
phasized the need
this objective.
MORTGAGE
&
administration
anything, the entry, of th^ United
MARKETS FOR
BOND
to
Act's
issued
financial
structures and
ments must be made in New York f unda.
•>.;..
York
Tribune":
position
exchange, remittances for
subscriptions
and
advertise¬
■
*
"The Commission has- taken the
In the rate of
foreign
said,
advices
"worthless"
Securities
entire
on
Obsolete Securities Dept
i
i
Cr
-
C'.-y
further
He
Detroit
America, Spain,
Mexico
and
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia
and
Africa, $31.00 per year.
'
j
certainly
ducks
holding.
accentuated
missioner.
Central
25 Broad Street, New York
y
,
Members New York Stock
t
In United States and
Possessions $26.00 per year; in Dominion
of Canada, $27.50 per
year; South and
r
Telephone HAnover 2-4300
Mr.
Subscriptions
;
^ +
second-class matter Feb¬
as
those
bands
Association
where they come
we
..folks who actually want to
&
encer
meeting
law
Bar
Healy,, who heads the Bar
1942,tat the post'office at Association's section, Stressed .the
N. Y.f under the Act of Mar. fact that he Was speaking as a re¬
.'./V
•'•'
; >',V- porter rather than as a SEC com¬
ruary 25,
New York,
1879.
national
1
Reentered
8,
utility
conditions resulting from-the
by
Dana*
Company.
Act
pany
.
Copyright
American
Detroit, Mr. Healy said that
problems which the SEC faces in
administering; the Holding Com¬
offices:
H.
Field
public
the
a
hut
queer
Victory!
DUCKS!
don't know
from,
at
Chicago—in charge ol
Representative,
(Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.
fred
the
of
Monday]r
on
before
of
Published twice a week tevery Thurs¬
day (general news and advertising issue)
Other
address
Nearer
QUEER
We
Healy, member of the SEC.
an
Week
some
•
;.In
liCHTfiwfin
"
Public Utility and Industrial
>
Utility Holding Company Act
the Securities and Exchange
by
-
William Dana Seibert, President
;
"•
Strict enforcement of the "death
Herbert D. Seibert,
,
interested in
are
"Death Sentence"
Spruce Street, New York
BEekman
We
•
Oittce
Publishers
'■
707
Chronicle
Spruce St., New York
...
\
THE COMMERCIAL & FINANCIAL CHRONICLE
708
stock
mon
■1
1i
BONDS
Detroit
Alexander
Milwaukee
Philadelphia
II.
&
Company,
Flentye
Graham
MUNICIPAL
Wil¬
Co.,
Inc.,
PUBLIC UTILITY
ILL.
—.
Max
F.
Corporation,
Quoted
Pepper
for
Thompson Ross
Incorporated
Republic Insurance
CHICAGO, ILL.
Great Southern Life Ins. Co.
Toebelman is
Southwestern Life Ins. Co.
Norris
& Ter. 6% 1951
&
—
Edmund J.
South
209
Mr. Toebelman
(Special
La
was
to
PEORIA, ILL.
associated
now
Chronicle)
Financial
The
Ben Hershe is
—
with Brailsford &
previously with Goodbody & Co. Co., whose main office is located
and
prior
thereto
with S.
B. at 208 South La Salle Street, Chi¬
Chapin & Cq.
i' cago, 111.
MIAMI, FLA.
-
Ball
has
added to
been
Securities
United
of
Hobert Elmer
—
the
staff
Corporation,
LISTED AND UNLISTED
&
has
Kenney
nected
with
become
Rambo,
con¬
Charles A. Parcells 6* Co.
Members
of
Stock
Detroit
Exchange
BUILDING.
'
the
DETROIT,
MICH.
;v
.\yT:;T
i "
industries
devastated
abroad will be eager
Our
f ^ Insurance Stocks
|
side,
power
•:a-'.>;'-,
New
Jersey Municipal Bonds
f
1891
MArket
New
York
3-3430
Phone—REctor
new instal¬
ready to fi¬
billions of purchases.
credit will
be
will invest large
in conversion of plants and
sums
the
for
2-4383
for
will
countries
built up billions
of dollars in bal¬
materials
raw
ment
and
other
will
spend large
relief
and
great
will
be
available,
war.,
L-0,.
509 OUVE ST.
System
restrictions
war-time
at
Stock
Exchange
CHICAGO, ILL.—Stifel, Nicolaus
&
Co.,
105
West
that
announce
Adams
Donald
Street,
B.
Sher¬
wood has become associated with
them in their
Mr.
trading department.
Sherwood
Bond &
Chicago
was
recently with
Goodwin, Incorporated in
and
connected
prior
with
thereto
Doyle,
was
O'Connor
& Co.
far
—
from
If
we
were
re¬
permit the
in.prices to get into
a real inflationary spiral, that will
make the danger of an excessive
post-war boom all the'greater."
Most
under
Market
Leaders
favorably situated group
existing and prospective
conditions
we
is the rail group and
continue to expect a broaden¬
ing and eventually more aggres¬
sive demand not only for selected
rail bonds but stocks as well.
Continuation
of
record
volume
of freight and traffic are in pros¬
pect
for
time
to
all
of which should provide further
some
come,
the
would
insisting
upon
stock,
;-the
After
preferred
new
about
the
for
the
new
$8
per
common
Firsts
new
15
and
the
Com¬
new
5, then the Rock Island Gen¬
4s,
which
due 1988,
(1) $83.51
in
new
would
First
represent
ultra
an
into consideration prospective in¬
terest 'disbursements
to
present
bondholders
that
invested t capital.
would
On
reduce
the
same
basis, the Refunding 4s, due 1934,
which would receive
St. Paul Adjustment 5s,
(2V2).
would
is
due 2000
we
base,
can
,\
10
shares
of
see
.-
new
common
(actually 9.78 shares). The
Adjustment 5s, due 2000, are sell¬
ing for about $25 per $1,000 bond,
indicating that the cost of the new
share.
would be about
Purchase
of
$2.50
$100,000
the
12
months
ended
receive
4.3
Common, do not
near
as
shares
comments
theoretically
Co., 39 Broadway, New
City, has taken leave of ab¬
from
sence
the
firm
in
commission
accept
a
tenant
in
the
U.
Force,
order
as
S.
to
Lieu¬
a
Army
Air
of
the
'
George
F.
founders
Ryan,
and
one
Vice-President
of
Ryan-Nichols & Co. in charge of
Miami
at
leave
and
of
Beach, Fla.
He is
from
absence
his
on
firm,
owing to the fact that three
other
members
the
of
St.
Louis
organization
have
joined
the
armed forces, that office will be
discontinued for the duration. The
main
La
office, located at 105 South
Street, Chicago, has re¬
Salle
cently taken
new
fourth
floor
where
better
quarters on the
in
that
building,
business
facilities
obtained.
National
Building, Birmingham,
Ala., has been commissioned a
Captain in the Fiscal Division of
S. O. S. in Washington and is now
on duty.
Henry M. Smith, Vice-
Walter
of
Weil
II.
&
Building
Weil,
Jr., Treasurer
Company, Inc., .Union
Arcade,
Orleans,
New
La., entered the armed forces on
Aug.
Weil
Mr.
14.
stationed
at
Camp
is
presently
Beauregard,
La., where he is attending the vol¬
unteer
bfficers'
candidate
aviation
assigned to the
school,
corps.
\y 11
John C. Wright, manager of the
at 2Yz
own
we
St.
is
paying
equivalent of
Rock
Island
we are
saying
new
Common). All that
here is that
the forego¬
U. S. Navy.
Mr. Wright has been
in the investment business in De¬
troit
for
many
years;
he
was
a
partner in Wright, Martin & Co.
(one
the
about 6 for the
charges
new
anywhere
cheap as St.
5s, due 2000.
ing
Adjustment
to
of
appear
is obvious from
com¬
worth
statistically
This
charges, elimination of unprofit-
new
J.
&
we
par
June
Aubrey Nash of Richard
Buck
York
<■
would
fer
the
129
E. Market St., Indianapolis,
Ind., will discontinue business as
of September 1st, Mr. Huncilman
already being on duty as Major of
Infantry
in
the
United
States
Army.
Bond
Department of Keane &
might point
Co., Penobscot Building, Detroit,
out in passing that Rock Island
has
been
appointed
a
Convertible 4 fas, due 1960 (2%), Mich.,
in
the
which in the reorganization plan Lieutenant - Commander
Incidentally,
30, 1942, net available for fixed
charges amounted to about $32,000,000.
To
pay
all
proposed
of
and is stationed in
about 20.
•
opportunities for strengthening of
finances, reduction of debt and
ahead
theoretically
Paul
Adjustment 5s,
2000, would cost about $2,500.
For
be
per
amount of St. Paul
due
First 4s;
eral
any¬
stock
common
new
the
In the ICC reorganization
plan
(rejected by the court) each $1,000
bond would be exchangeable for
about
Boston,
Second
a
conservative
-
such valuation does not take
over,
permitted to
tax
Co.,
as
the
S.
U.
Army
Corps, Procurement Division,
Miami, Fla.v
Air
"at the; market'! valuation. More¬
where
old
in
bonds; (2) $454.14 in
Mortgage Income 4%s; President of the
firm, has been
(3)
$445.98
in.nnew
Preferred commissioned a First Lieutenant'
stock, and (4) 3.36 shares of new in the Army Air
Corps and is now
Common, would be worth about on duty at Miami Beach, Fla.
35. This, in our judgment, would
General
issue
,
McAuliffe, formerly of
would
cheapest
^.their
are
J.
Lieutenant
were
(1) $58.65 .in
(2) $232.72 in Gen¬
Mortgage Income 4^s; (3)
$209.62 in new Preferred,
and
(4) 5.25 shares of new Common,
If the railroads
retain
John
Smith, Barney &
Mass., is serving
George
II.
Stubbs, Jr., Vicepresent day value of President and Treasurer of Stubbs,
Incomes 45, the new Smith &
Lombardo, Inc., First
a
new
receive
re¬
consisting of one-half
plus market value
of new equities. Favorable1 settle-'
ment of this important tax ques¬
tion through Congressional actibn
could bring about. large percent¬
age price appreciation for softie
things.
Looking Down
twice.
Mortgage
with
much
a
Norfolk, Va.
are
equal to
that
eral
debt
new
for
Preferred
re¬
duced base
of
charges.
common
than
more
command
straining
factor
in
many
'in¬
stances, particularly in the case
of the low priced issues, has been
still
the U. S. Navy and is
stationed at
Assuming for sake of illustra¬
tion
-
75, the
question,
fixed
about $1.70 per share.
mon
tax
mander in
their St. Louis office, has been
^ considered commissioned a
Captain in Army
^py the ICC. On The Transport Command •. of
Army
th^terms of, the ICC re¬
Aviation, and is now in training
be
price appreciation.
uncertain
times fixed
which
and
wise offer many desirable oppor¬
tunities for income and further
the
(old)
present
present.
of
share
like¬
Principal
1.6
balance
a
the old tax base and the Treasury
a
war-time rise
The
Stifel, Nicolaus Go.
once.
-
bonds
about
covered
permit reorganized roads to retain
Rather than
the danger
may even be of too great an im¬
mediate boom if price control and
Teletype—SL 80
St. Louis
months
•
,
30,
$22,000,000
deducting for tax reserves, etc.,
50%
of the remaining net, the
seems
reflecting financial dif¬
-
June
ended
about
June 30, 1942, were covered about
11 times, new fixed and contin¬
and A current <" and
defaulted
for
plan,
new
fixed
charges for the 12 months ended
discrepancy between
Selected
months
basis of
As for many of the
ficulty.'
1988 (27),
due 1934
undervalued and
organization
.
stocks there still exists
of
Herman A. Feldmann, manager
the wholesale department of
of
worthless
prospective earnings event to the
extent
more
gent charges and sinking fund re¬
were
theoretically
im-: quirements
power
several years instead.
an
immediate crash,
moved
Members
20
.
prices
of the
some
situations
re¬
Goods
buying
both on
November, 1918, to July, 1920—
might conceivably this time run
SAINT LDUtS
;
ran
near
place and which still
stock
at
reported
bqth
the Senate apparently disposed to
scale
last,time
anywhere
12
op
extraordinary
which
has
already
prospect.
see
picture
balance was equal to about
$16 per share on the present $7
preferred stock and to about $6.75
war-time* ceiling
for
than after the last
The post-war boom, which
greater
Co.
govern¬
sums
reconstruction.
will be needed and
Bell
sent
war,
ments
&
have
and will be eager to
spend them for all the things they
are short on today.
Our Govern¬
us
Stik
in
replenishing their stocks. South
American
ances
ST. LOUIS
provement
taken
fantastic
in
18 Clinton St., Newark, N. J.
the
largely paid off, and
"Businessmen
Rippei & Co.
flecting
':^v
■
.
The
appeal of- such is¬
distinctly limited. On the
ether hand, any number of second
grade and speculative issues still
offer high current yields and have
come
can
charges of about $13,500,000, equal
to
and the
failed to
nothing we
the default
in
being
as
1942,
is
sues
common
.
nance
Established
people will have
our
levels
large war-time savings ready to
use.. ;, Consumer
credits will be
ment
J. S.
in
Latin
Real Estate Securities f
•
friends
China,
America, Oceania, and else¬
where, will be in great need of
industrial equipment to expand
their own production and stand¬
ards
of
living.
On the buying
goods.
NEWARK
v;
homes
and
for food and
Street,
in the
now
prevailing
available
.
.
to
is
armed forces.
F.
clothes, houses, and<8>
:
—household
equipment
will
be able lines and generally for the
worn out or sadly depleted.
Our preparation of the post-war ad¬
businessmen will need to rebuild justment.
\
„■
factories
and
replenish
their
Railroad bonds of perhaps bet¬
stocks of goods iii process or in ter medium grade are
probably
close
special
Claybaugh &
Second
about
In
the first place,
we
might
point out that the Rock Island in
tires,
fairly
Co., 600 North
Harrisburg, Pa.,
"behind the market."
following excerpt bearing on the post-war period is taken
a speech delivered Aug. 2, 1942 by Mordecai
Ezekiel,
Economic Adviser to the Secretary of Agriculture.
v
"The immediate post-war period will be characterized by great
deficits in goods to be made up, and by great reserves of buying
power available to fill those deficits.
On the demand side, our
Starved peoples and war-
Claybaugh,
1933-42
(15),
Weekly Stock Market Comments
stores.
-
and
of
Island General 4s, due
and the Refunding 4s,
,
PENOBSCOT
of
pricewise,
might direct attention to Rock
we
department.
The
autos,
is
respectable
from the text of
SECURITIES
$73,000,000
Looking
Close
Keen,
Kerner, Inc., 1518 Locust Street,
in their investment
Biscayne Building.
DETROIT
Paul
indi¬
F.
partner in Blair F.
Preston J. McNurlen has been
market prices.
price range has been commissioned a Lieutenant in the
United States Naval Reserve and
dbout 1 low, 32 high.
expects to be called to active duty
Glancing Upward
shortly.
McNurlen & Huncilman,
The
PHILADELPHIA, PA.—Edward
(Special to The Financial Chronicle)
TEXAS
DALLAS,
new
assets
current
liabilities
times
RAUSCHER, PIERCE & CO.
Ft. Worth-Houston-San Antonio
it
cheap as the St.
Paul Adjustment 5s, due 2000, for
percentage price appreciation.
Risks, in our opinion, are rela¬
tively insignificant as compared
with the potential
enhancement
of capital.
In 1937 St: Paul Ad¬
justments sold at 13, or about five
Chronicle*
connected with
now
Kenly,
Salle Street.
Preferred Stock*
Southwestern Securitiet
on
Financial
The
reporting for
Aug. 28th.
on
potentially
as
-'
O
CHICAGO
to
(Special
years,
the
receive
total
anywhere
Securities Co.
bank counselor.
New Mexico Gas Co. Com. & Pfd.
could
There
the
past five years has been
with Moody's Investor Service as
few
is
and
private
a
Blair
-
a
as
Bank
total cur¬ Mackubin, Legg & Company, 22
$26,000,- Light Street, Baltimore, Md., has
000; cash amounted to $45,400,000. been appointed a Lieutenant Com¬
rent
231
for
power
had
about
Stevens has become affiliated with
Higginson
i
duty
purchase price in dividends
alone. As of May 31, last, the St.
SECURITIES
South La Salle Street. Mr. Stevens
us
Vice-President
Dittmar
Texas
of
common
continuation of present
a
South
cated
INDUSTRIAL
AND
O,
new
common
Paul
Lee
Check
common
is conceivable that holders of
RAILROAD
&
the
earning
Inc.,
Building
C H I C A G
Dallas Ry.
for
Given
Omaha
DALLAS
—
new
around 2"■ v.-/-
with
associated
become
liam
CHICAGO
Boston
for
has
INCORPORATED
New York
All Texas Utility
Bond,
Mahan,
candidate
of
surtaxes, etc., the net would
share
compared with indicated prices
(Special to The Financial Chronicle)
AURORA, ILL. —Fred Douglas
Schwanz, formerly local manager
A,CJUXYN«roCOMPANY
Dr.
of
be reduced to about $3 per
If you contemplate making additions to your personnel, please
send in particulars to the Editor of the Financial Chronicle for pub¬
lication in this column.
MUNICIPAL
Sold
In The Armed Forces
Jack 'H.
and
shares
stock, or nearly $6 per share. As¬
suming a 50% reserve for normal
RAILROAD
—
require. about
& Company,
Building, San
Antonio, Tex., has enlisted in the
U. S. Army as a volunteer officer
million
INDUSTRIAL
Bought
would
$20,000,000, leaving roughly $12,000,000 available for about 2.1
UTILITY
PUBLIC
Thursday, August 27, 1942
would much pre¬
Paul
Adjustments
than Rock Island Convert-
ible
4V2s, due 1960, at 2*4—all of
which goes for many other com¬
parably priced situations.
—
G. Y.
B1LLARD, J.
R. WILL1STON &
CO.
■
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4102
Volume 156
709
Moratorium On U. S.-Held
Debts Of
nounced
on
This moratorium
"Pursuant
market
to
go
through July tops not good.
depressing factor.
Look for decline ,or dullness.
By WALTER WHYTE
V
The. first
J
of the Com¬
news
mando raid against Dieppe
'caught this column as it went
to press.
According to early
;dispatches the raid, a gigantic
one, appeared as the opening
,drive in the much talked
of
second front.
I have long felt
inauguration of such a
the
front would immedi¬
second
& North
does not
Wextern Railway Securities
Circular
6s, 1944
^Montreal Light, Heat
& Power
314s, 56-63-73
to. General
Ruling
No. 1Q-A, issued under the Presi¬
dential freezing orders, no Philip¬
pine company may make any pay¬
ment in this country on its obli¬
gations and no person may en¬
the
in
force
United
States
PFLUGFELDER, BAMPTON & RUST
Members New York Stock Exchange
j
ately be reflected in the stock
I watched the
so
tape
closely to
see what the market
do.
Well, you know
would
what it did.
':
61
Broadway
New York
\
Telephone—DIgby 4-4933
REORGANIZATION
SECURITIES
action
it
make
the
United
companies
that the
ties
intended
was
that
clear
the
States
could
be
Prices rallied back to about
the
July tops (appx. 108 D. J.
•industrials) then backed off.
Later
it
learned
was
that
though the attacking party
was
large, it even carried
tanks, it
was
the
original
line
plan along
International-Great
providing
the par¬
Northern bonds
Great
fully and
raid, what
a
a recon¬
naissance
and
force,
•
not
beginning of the second
front
as some
of the headlines
So much for that.
claimed.
It
in
was
fairly with the respective Great Northern bonds, which for
rights of stockholders, bondhold¬ a long period had been one of the
ers
and
otMer ; creditors.
Under most disappointing spots in the
bond
this ruling the situation {will be reorganization
list,
have
frozen until it is possible to as¬ been among the brightest spots in
the market upturn, of the last
certain the facts.
: !
•/*
"It was pointed out by Treasury week or so.,
realistic and in accord¬
ance
the
with
subsequent
facts than the wishful think¬
representatives th a t Philippine
Companies would hot be permit¬
ted to use today's ruling to avoid;
paying their obligations in any
case where funds were available
and such payments could be made
on
an
equitable basis!r In such
cases
the Treasury Will license
Improving phenominally
the abysmal levels of a few
NEW YORK
Reorganization
by the higher courts.
If, and
when, the tax status of the reor¬
ganization ' rails is settled it is
felt that the plan will probably
be finally confirmed by the Dis¬
trict Court and that the I.-G. N.
(Securities
(When
.
A
Issued),
bonds should then sell closer to an
arbitrage parity with the, Missouri
5s and the New Orleans,
Bear, Stearns & Co.
Members
York
New
Stock
Pacific
Texas & Mexico bonds.
Exchange
Under
when
ago
for
three
■
New
York
-v.
•
V-■■
Chicago
the
although they did manage to
make a new high last week of
,;
In
other
words
mov# for
We
maintain
net
.
trading markets
.*
*
;
,
v"\
,
;
'
particularly obligations of
a
yejars ;(1938-1940) operating costs
were
not even covered, it nbw
seems possible that 1942 will be
the best) year in the company's
history. Last year the old fixed
charges were only 82% earned but
this year they should be earned
almost twice.
For the first six
months of 1942 there was a gain
of roundly 39% in gross revenues
with about >37%
of the increment
<
the
•
outlook
over
the
balance
of
the year, including continued
rail shipments of oil to meet
advances
of close to
June
30,
a
million dollars from
1941.
In addition, mis¬
should
*
*
technical
1 ,-i
ments
;
for; transportation services!
cline or at best a period of!
'dullness usually of at {(least
viewpoint ten days duration. Last week
for three
days.
technical
due
frpm the Government
While
International-Great;' Northern 1st
studies mark et s, the
According to
have
brought prices through
second
b'1
this
Lackawanna
Mortgage bonds would involve
a
•
;zone.
-
-
According
may
This
•
sk
i
questionable;
have been good, changes.
was
the
the clusive of dividends on the new
The recent preferred, total income accruals
case
r
/
generally able to
bonds
of
these
are
tered
offer regis¬
roads
at
mately
bonds.
LEROY A. STRASBURGER & CO.
WALL
NEW YORK
STREET,
WHitehall 3-8450
*
to
precedence strength was touched off by
or indicate the successful Solomon occu-
markets, to prove
continuance of trend, should
(Continued
on
page 716)
on
bonds allocated to the I.-G. N.
1st
Mortgage bonds will presum¬
excess- of $75 per bond
by the end of 1942.
ably be in
,
Af the time of
securities, based on
new
bid
I
Teletype: NY 1-2050
for
33
.
.
'
old
the
the
belief in
some
Market transactions in Govern¬
quarters that International-Great
might
be
possibly
ex¬
cluded from the consolidated sys¬
tem and reorganized on its own,
its bonds
sold at
have, over a long period,
considerably wider dis¬
a
the
from
count
value
of
the
issued"
"when
securities
they
allocated than have the other
are,
major
that
new
bonds.
system
the : Commission
It is true
plan does
provide that the reorganization
be
consummated
without
may
,
holders of the I.-G.
gage
some
in
four months ago,
sidered
the
N. lstr Mort¬
balloting concluded
the
a
plan
remote
as
a
this is
con¬
contingency if
whole is confirmed
(
For July
Market Transactions
I
.
Northern
N.
I.-G.
• •
In Govts.
Reflecting
is
prices,
equivalent to a price: of approxi¬
substantial concessions from cur¬
rent
coupon
bond market.
1
of
shares
the, aggregate value
issued"
"when
Southern Pacific# etc.
securities for Treasury
ment
vestment
and
other
in¬
accounts
in
July, 1942, resulted in net sales of
$2,295,000, Secretary Morgenthau
announced
on
Aug. 15. This com;
with net sales of $250,000 in
pares
June.
7
•!
The
following tabulation shows
the
Treasury's
transactions
in
Government securities for the last
;
two
>'
years:
/
..A;;.-:',
.
1940—-
No sales or purchases
August
November
$300,000 sold
4,400,000 sold
284,000 sold
December
1,139,000 sold
September
October
r
1941^15*; --'■
f
January
$2,785;D00 purchased
February
i
11,950,000 purchased
March
No sales, or purchases
April
—$743,350 sold
May
200.000 sold
June'
447,000 purchased
July
No sales or purchases
August
(No sales or purchases
September
$2,500 sold
|
October
200,000 sold
*
November
No sales or purchases
December —$60,004,000 purchased
—
by the District Court and upheld
As brokers we invite
on
inquiries
blocks or odd lots of *
V„
1942—
,
HIGHEST GRADE RAILS
We also maintain bet markets in
Seaboard All Florida
6s/35 Bonds & Ctfs.
January
February
purchased
300.000
April
May>
$520,700 ^old
29.980.000
8,814,450 purchased
March
purchased
16,625 purchased
..
—
250,000 sold
June
2,295,000 sold
July
Georgia & Alabama
1st
5s/45 Bonds & Ctfs.
Seatccrd Fcceivers Ctfs.
1st
3^8/45.
Defaulted RR Bond Index
The defaulted railroad bond in¬
.
dex
in
*
last few4 weeks.
L-G.'N. bonds since that date. Ex¬
common.
writing
of these
We
2.01
,
Lehigh Valley
..bob
$251
4s, $148 in new
preferred and 3.51 shares
of new
Illinois Central
j
cash
outlay of only $805,000. In
important
zone
from
ready to-move begin■ acting! which an important move support of expectations of an in¬
terest payment this fall or early
just that way. Yet the three; could begin. It failed.
winter, it is also being pointed
;day advance without penetra¬
out that the proposed effective
tion of previous resistance
It is frequently the case date of the Missouri Pacific reor¬
ganization plan is Jan. 1,1940, and
levels is not enough. It places that the news, which
up to
that income has, been accruing On
•the market in what must be the time of the market failure
new
securities
allocated to the
as. a
of $390
.
two
the market is still in a/move, the market advanced fdr three
amounts, due
;recognized
average
preferred,
prior
New Ybrk Central
•
■tJ
payment for such services is nor¬
mally delayed about 90 days, the
may obviously be
position, the. current, dull set-; days running and managed to considered the equivalent of cash.
back
notwithstanding. Last- vjust get! into the July top area. Payment of one semi-annual cou¬
pon
on
all of the ' outstanding
week the industrials rallied One more
day's rally would
From
an
Series "A" Inc. 4V2S,
in Series "B" Inc.
in most
.
,
1st
of the medium-priced Rail Bonds,
days, cellaneous accounts receivable had consolidation of ; InternationalGreat Northern under specific cir¬
four days, etc.
In case they more than doubled and, according:
to the latest balance sheet, stood cumstances, including failure of
27.11.
But as we don't hold don't,
past indications; are at
$1,448,000; " It is believed that bond holders to accept the terms
any rails, their market action, usually: cancelled
and the to; a eppsi^abie degree the largp of the plan. However, consider¬
though interesting, is purely market either' goes into a de¬ apepunts tepe^y?ible, represent pay,-! ing the support given the plan by
"
reorganisation plan
Mortgage bonds
N.
to receive
new
000 to $1,417,000, and considering
information will be dealt with ap¬
propriately by the Treasury.
in
years
carried through to net. Net oper¬
ability to pay their obliga¬
tions. Any failure to furnish such ating income was up from $485,-
4, 6, etc.
of drawn back into their shell
'
I.-G.
are
successive
■
.academic."
the
'
from
alling headline writers of some
the
•of our local newspapers,
In Armed Forces * :
shortage on the East Coast, the
,;.!-*
* v-'v:-':;/"
gain in the second half should be
R. W. Pressprich, Jr., has been
i!
All this brings the market commissioned a Captain in the practically as wide..j
With the sharp expansion in
back to about where it was at U. S. Army Air Force and is on
leave of absence from his firm, earnings, net working capital as
the
beginning of August. K. W.
Pressprich & Co,, 68 Wil¬ of the end of June was more than
'Even the rails, purely domes¬ liam
three times that of a year earlier.
St., New York City.
tic affairs where their opera¬
Cash
items
alone
amounted
to
more than $2,000,000, an increase
tions are concerned, have sort move in units of 2 or
*
Van Tuyl & Abbe
72 WALL STREET
and
deal
,i
■
VW 1945
sent on request
Railroad
could
important that while
payments upon appropriate appli¬
'interpretations of the Dieppe cation by interested parties. More¬
foray
were
plentiful,
the over, the Treasury expected Phil¬
market, in its cold calculating ippine companies to furnish their
".fashion was not caught nap- creditors upon demand with in¬
formation concerning; their pres¬
/ping. v Its interpretation was ent
.more
3
which
since no I.-G. N. itself than on the im¬
know, the proved chances of effecting the
present conditions or value of propbsed reorganization and con-,
property in the Philippines, it is, solidation. Reflecting this grow-:
at the present time, impossible to ing confidence,, the Internationalor
COMPANY,
Receivers' Certificates.
for (inclusion of
Northern in the new system. Also many quarters are now
looking
forward to a possible interest disbursement on the International-
-
still
military experts call
the
RAILWAY
mate consummation of the Missouri Pacific reorganization
companies had assets in the Phil¬ as the Missouri Pacific 1st Re¬
ippines worth many millions Of funding 5s and the New Orleans,
&
Mexico
1st
dollars before the war and only a Texas
Mortgage
relatively small amount of funded series.- The hopes for a possible
indebtedness.
The companies do interest payment are based more
not
have assets in the
United on the wide earnings rise and
States at this time to meet ma¬ strengthened financial position of
obligations
Toronto
-SEABOARD AIR LINE
have been neglected in recent years
properly protected. It was pointed When payments have been made#-——
—■' ,./ ■ ■, , f
out that some of these Philippine! on other system obligations such
knows
1-398
mm
The market has begun to display greater confidence in the ulti¬
in
of
interests of all
involved
IIAnover 2-0980
NY
Montreal
Special Circular
RAILROAD SECURITIES
to
assets
Philippine
fully frozen so
were
Teletype
any
"Treasury / officials stated that
today's
one
"
Bell
New York
-
.
Y.
53 WILLIAM ST., N.
Bell Teletype—1SY 1-310
RAILROAD
claim
or
obligation against
a
Philippine company. Such pay¬
ments capo be made and such
claims can be enforced only if a
foreign funds (control license is
first obtained..
i't
turing
■
HART SMITH & CO.
'
'
-
market
International Hydro Electric
request
on
ment stated:j
of
a
Opportunities
apply
to the obligations of the Philip¬
pine Government. The announce¬
Says—
'News still
;
an¬
Aug. 12 a moratorium
obligations of Philippine com¬
on
panies held in the United States.
Walter Whyte
Failure
Philippine Cos.
The1 Treasury " Department
Tomorrow's Markets
1. h. roihehild &
co.
specialists in rails
11 wall street
HAnover 2-9175
n.Y«c.
Tele. NY 1-1293
of
Pflugfelder,
Bampton &
61 Brcadwav, New York
City, shows the following range
for Jan. 1, 1939, to date: high—
46%; .low—14%; Aug. 26, price-f38V4.
Rust,
THE COMMERCIAL & FINANCIAL CHRONICLE
7io
if
not
their
compelled
assets.
outbreak
of
an
of
era
strengthen
probably the
marks
war
Regulation
to
Quite
of
bank
and
the
dividend
and
sion
astronomical in dimen-<fr—.
our
necessity
be
the
undertaken.
banks
are
—
.
Already
Aetna Fire
National Fire
without
Bought
—
Sold ——Quoted
affiliate
For
example,
last
week
ntmoere
the
.
Reserve Board in Wash-
} ington announced that
tfew
It
uric
gxmange
and other leading exchanges
1 WALL ST.
reserve re¬
Stock
Telephone
64 New Bond
NEW YORK
4-2525
Which
founded
was
Williams
,
Deacon's
;
"
•
,
Bank, Ltd.
AM ERIC AN ./v':"
•<
CAN
banFof
will
new south wales
be mailed.
obsolete
as
tion
the
£8,780,000
6,150,000
-
Reserve
Fund
Reserve
SEG
Reorganizes Units
For More Efficiency i,
longer operative. On the other:
hand, the demand side has been
Therefore, even though this may
Ganson Purcell,
"steadily expanding and Will doubt¬ turn out to be a "2 lk % war" and
Chairman of
less
gather momentum rapidly whether or not the official rate is the Securities and Exchange; Coirr
from this point.
pegged at that level* the banking mission, announced on Aug; 19 a
Already, the increased loans to. industry is beginning to obtain a reorganization of the internal sef-l
industry plus loans to the Govern-; higher average return on its loans' up of the Commission: designed
mo
,
•
..
:
•
<
jment
e. purchases of Govern¬
securities), have caused a
sufficient rise in bank deposits: as
ito deplete materially the existing
(i.
ment
reserves.
Another factor has been
the steep
and
investments
than
has
■to
gener¬
Liability of Prop.
.»
Allied themical &
61
8,780,000
"Aggregate'
:
Assets
1941
Sept.,
-
ALFRED
£150,939,354
..
DAVIDSON, K.B.E.,
Manager$
/;/
Office: George Street, SYDNEY
>
The Bank of New South Wales is the oldest
•
and largest bank in Australasia.
*
870
With
oyer
branches
rNew
in all States of Australia, in
Zealand, Fiji, Papua and New Guinea,
; and
land
efficient
•
j; traders
banking
service
travellers
and
CALUMET
.
j
London, it offers the most complete
case
in recent years.:
interested
in
these
dividend
A
come.
ijr& LONDON OFFICES;
Threadneedle Street, E. C. fv#;/
Berkeley Square, W. 1
29
-
,
'
.
47
-
Old
•
v
throughout
•
the
tl.
S.
"
A.
Inasmuch
as
banks
have increased
New
Boston,
per
Mass.
Secretary.J
NICHOLAS,
1942.
and
interpifetative staff of
legal division will be assigned to
the
counsel's
office
of
the
v
,
f//':
■
'
,
■
■
E. I. du Pont de Nemours
& Company
new
division, and.the remainder will
Wilmington, Delaware: August 17, 1942 '
be /assigned to the newly created
dffice of solicitor and to the new
The Board of Directors has declared this day a '
dividend of $1.1:2a share oh the outstanding'
Preferred
Stock, payable October 24,
opinion! writing office, which. in
stockholders of record
the
on
future
will
be
directly
sponsible to the Commission.
re¬
"Baldwin.B. Bane, present Di¬
;
rector of the
Registration Division,
has been named head of the pew
Corporation.:
Finance
with
Andrew
ciate
director.
as
Counsel
Heller
and
will be
the
the
MjP:;
Emmett
has
Mc-
business
Checks
"
divisions
Utilities
been
left
ALBERT
Division,
close
holders
„
of
PELDMAN,
J.
.>-=>
Sec.
/
Vv^'/S
,
COMPANY
SALT
declared
Company,
record
has
the
capital stock of
this
October 1, 1942, to stock¬
on
payable
of
fry-.
/;
;:■#[$ Fifth -Avenue, -New York,.-;N. .Y.i;
dividend of FIFTY CENTS a shard:
A
b3en
and
15., 1942,
the
at
3
INTERNATIONAL
unchanged;
section
record
24,;.1942.:;,''//;!/r/!/;:iv/;//
August
sion, to which has been added the
advisers'
of
September /S,;, 1942,
will be mailed.
on
Newark, N,
are
the Trading and Exchange Divi¬
investment
payable September
declared,
stockholders
to
i4:.
'Common Dividend /•
dividend of
25c per share
the
Common
Stock
has'
A
on
been
reorganization the
public
which
a;
the out-'
on
A. HOLLANDER & SON, INC.
ftrngsr
iWk
^'assistant directors
"Under
.
the
as
'
this
Crann
•
1942,
<
business
share,
a
standing Common .Stock) payable September 14,
:
1942, to stockholders of record at (lie close of;.
business on August 24, 1942.
'
;:";S yj>
\X. F. RASKOB, Secretary
Cashion,
Harry
three main operation
1942, to
the close of
asso¬
for
division will be Edward
"
at
1942; also $1.00
Division,
.
Jackson
of the'division.
October 9,
third "interim" dividend for
at
the
close
of
business
on
September 16, 1942., The stock transfer books
of the Company will not be closed,
; HSRVEY
J. OSBORN.
Secretary..
dividenFnotices
cents
(50c) per share on the common stock :;
payable October 15, 1942 to all holders cf record ;
their
tax
NEW
YORK
'
"/•!
si
/• A
dividend
share
26
Stock '<$5.00
COMPANY
York
"Herald
Tribune"
at the close of business
'.V'-
Broadway '' '•/■'-/./
New York, August 20, 1942.
of-Thirty
declared
(30)
to
modify
The recent tendency
this
feature
of
isv
1942
-Manville
stockholders
to
close of business Septem¬
>
C o rpor at
\
:
J. R. FAST. Secretary.
do
The
Commission's
general coun¬
T.. Lane, resigned
to. join the/ De¬
partment of Justice.
v;
"A portion of the investigative
and, in other ways, be encouraged
sel,
some
Chester
time
CQ33
;
Seventy-five cents
the outstanding
capital stock of this Corporation has'
b^en declared, payable October 1,
1942, to' stockholders of record at the '
close of business September 4, 1942!, 1
(75^)
per
share
.
,
,
f
>
r
declared,
a
■
AMERICAN
A cash JiviJend of
ion
n
reiJular /
quarterly dividend of $U5 per share on the*.;,
Cumulative 7%i Preferred Stock, payable , |
October 1, 1942, to holders of record on :
September 17.1942, and a dividend of 50c per '•
share on the Common Stock, payable Septem¬
ber 24,1942 to holders of record on September , !
10,1942.
lV■./->/■;. •>
J, L.P1 GHETTO, Assistant Treasurer'
CARBIDE
ROBERT W. WHITE, Vice-Pres. & Treas.
Two
i
POWER
STOCK
A dividend of $.75
($6) and
Stock
on
LIGHT
&
Rector-1 Street, 'New
PREFERRED
on
,
ago
DIVIDEND
The Board of Directors
AND.' C ARBON
being„
1942.
:
ftJCORP
the investment advisers;:,section—
the
19,
Cents per
Capital
value) : of this Company,
par
UNION
-
S3otember
on
SANPORD B. WHITE, Secnetary./
/
the
on
: from
Philadelphia said: ; ■
L,
"The., remaining portion of the
Investment Cpmpany Division-?;
burden
1
1
been
has
TRANSIT
„
several-fold.
everything to keep - the banks
.Government securities which,they healthy and strong.
They : will
will be expected to-take. A rate doubtless be permitted to set up
.of 1%. has been, in effect at the. generous
contingency
reserves
of
($0.25)
■■
■
.
Bank
D.
Augu-t
.
combined
with 'the
Trading and Exchange Division.
^
idly and safely, can
to
follow.
"The office of .General .Counsel
Presumably, reserve
requirements will be lowered even : In view of the vital part which has been abolished, to be replaced
further. It is also considered like- the banking
industry must" play in by the office of solicitor, to which
Jy that- rediscount rates may be our war effort, it is reasonable to John F. Davis, now Assistant Gen¬
-selectively reduced in order to expect that the Government will eral Counsel, has. been appointed.
Reserve
Trust Company,
A.
y0
promote
re •;
assuring to the bank stock market.
Federal
vK//' ;■
.
twenty-five' cents
Colony
'
be expected pending tax bill has been mbst
-help the banks absorb readily the
:vt&:
i '
;
.
41
will be paid on September 12; 19;2, (o
holders of the outstanding Capital Stock of the
Calumet and Hecla Consolidated Copper Com¬
pany of record at the close of business Sep- ■yi'-y.e
i-mber 1,
1042. > Checks will be mailed froih
the
Arency arrangements with Banks
organizationDivisions,theinvest-, of record at the
ment company section of the In¬ ber* 25, 1942.
V- '
vestment Company Division.
"
have,
Advices Aiig. 19 io the New
reserve requirements
been relatively immune both to
"drop in the bucket" and
excess
profits taxes and normal
cannot - do
more
than alleviate
.conditions temporarily. Therefore, taxes, a heavy surtax rate would
to enable the
No.
;share
that of the Registration and Re-; payable October 15,
is only a
measures
of
CONSOLIDATED,
COMPANY
~
acute weakness in bank
banking system to manufacture a
far greater volume of credit, rap¬
IIECLA
Dividend
and
stocks last
aggravated by the fact that much
more money
is being raised in spring was due> m large part, to
•this area than is being spent here, proposals of a 3i% surtax which
would be applicable to all net in¬
It is fairly obvious that the 2%
•
AND
COPPER
.
investors
to
What is
;
.additional
;
W. C. KING, Secretary
,
efficiency,/economy,
■rX
the newly formed Corporation Fi¬
flexibility of operations in
even more
nance Division."
'
INTERNATIONAL HARVESTER
important, of line with changed conditions." ;:
course, is. that total earnings as¬
Under the reorganization the
'J*
!; COWIPANY/:^
sets
will
continue
to
grow
Tire
by present six divisions will be re¬
Directors
of
International
Harvester
Company declared a quarterly dividend of fifty
leaps and . bounds and that gross duced to three and 93 positions
ally been the
jump in circulating cur¬
income will be
correspondingly now vacant on the' staff /..will': betotals .nearly 13
increased.
As to net earnings, it abolished.
One new section, Cor-,
billion dollars, and against which
is largely a question of the form
; reserves must be maintained dot-;
porate Finance Division, is estab¬
and extent of the new tax levies:
,lar for dollar. The reserve situa¬
lished, effecting a merger of sev¬
For example, the eral
tion in New York has been further; ahead of us.
abolished
units,
including
reduction in
Broadway, New York
Allied Chemical & Dye Corporation
has declared quarterly dividend No. 86
of One Dollar and Fifty Cents ($1.50)
per share on the Common Stock of the
Company, payable September 21, 1942»
to tommon stockholders of record at
the close of business September.4,1942,
'; 30th
General
;•/ Head
...
"
--
SIR
*
y
Dye Corporation
August 25, 1942
"
rency, which now
r
Secretary[
A> BURGER>
£23,710,000
,
er's market for money.
R
•'
Paid-Up Capital
.
'
,
easier, many authorities ber. Central Delivery, and Settlement;
lieve that
both
short-term
and
.issue of'isolationism. •'.
Departments by the use® white:
v
In 1940, the excess reserves in long-term rates are bound to stif¬ charge
tickets accompanied .by*
bur < banking system had reached fen from this point, JShort-term white collective delivery or credit
course,
have already actual lists on which is listed only;
the unprecedented — and unheal- rates, of
firmed materially and will prob¬
the money value of each delivery:
.thyr—figure of 6.9 billion dollars.
Due to devaluation of the Ameri¬ ably continue to do so because covered thereby and, in general,
banks can now find employment in accordance with
can
dollar in 1934 and, subse¬
the provisions;
for most of their available funds
of Rule 40.
quently, the influx of refugee
on a medium or
long-term basis..
money from war-threatened Eur¬
"Since this method is largely
It is no longer necessary to accept;
ope, our gold stock rose in seven
experimental, : continue
to
use
merely "token" interest "as has
•years from about 4 billion dollars
present form of exchange ticket to
been the case so often in
\to nearly 23 billion dollars.
recentj make comparison through Dis?
Dur-;
ing the past year, the picture has years. > Frequently/ also, the banks- tributing Department." ;.., ....
!:
were practically
forced to issues;
changed completely. Gold imports'
long-term credits at what was;
"have
practically
ceased, which
means
that the principal supply tantamount to a "riskless rate" of
return. In short, it is how a sell-'
/source for additional reserves is
as
■
(ESTABUSHED 1817)
.
become
STOCK
July 28t,h, 1942, a quarterly dividend qf ! (1
one
and three-quarters per cent was declared
on the Preferred Stock of this
Company, pay*
able October 1st, 1942, to Stockholders of rec- ;
ord at the close of business September * 17th,
1942; Transfer Books will remain open/ Check's
Australia and New Zealand
.
-have
COMPANY
PREFERRED
.
On
New
widespread discussion followed as in the rediscount rate would be of 'cleared securities' effective for
to the advisability of legislating J the signal for a decline in money transactions of Friday, Aug, 28,
even stiffer requirements.
It was1 rates but, such is, the immediate 1942, and Saturday, Aug. 29, 194^,
-seriously proposed, in some quar¬ demand for credit, that no such: to be settled Tuesday, Sept. i,
ters, to raise the permissible ceil¬ development is to be expected. On 1942.
ing on reserves to 30%, 40% or the contrary, and perhaps regard¬
"Contracts in all stocks on and
;even as high as 50%.
Since our less of what further measures are subsequent to above dates will be
.entry into the war, all such ideas adopted to make the credit situa¬ delivered
and
settled
through
Secretly
,
;
in
•
Checks will
W. M. O'CONNOR
Glyn Mills & Co.
Stock
position, particularly . lost in oblivion. Both the changeconsiderably
in
recent
York, had become in- lessness of the rate, which is years to about 10% of its former
It is estimated that the
creasingly tight in recent months;1 meticulously reported each day, volume.
in fa ct, by early July, excess re- j; ahd the cobwebs which have ac- elimination; will
save ! member
firms about $100,000 a year, in
serves had practically reached the ■cumulated, over the lending ,winvanishing point. A number of fac-Cows^ at the Reserve have been clearing charges. V
-.,
tors were responsible for this sit-: food.for numerous wise-cracks in
The announcement, issued/ by
"nation; In the first place, reserve the financial district.
Thus the John Dassau, First Vice-President
requirements since Nov, 1, 1941, .war seems destined to destroy an- of the Stock Clearing Corp., fol¬
have stood at the maximum legal other legendary segmept of the lows:
Vv;/;'://
"Notice
is
level of 26%. They were raised at Status Quo m Wall Street.
hereby
given
to
rthat time, from 22%%, ostensibly j
Ordinarily a lowering of re- Clearing Members that all 'cleared
to act as a brake on inflation, and
[serve requirements or a,reduction stocks' are -removed from the list,
in
be mailed.
August 24,1942
£98,263,226
' Associated Banks:
■</
clined
reserve
stockholders of record at the close of
business October 5, 1942.
quirements on demand deposits
'would be reduced from 26% to
York for the past five years but
anced off, it was noted in the New•24%
in the two largest money
its significance has long since been York "Herald Tribune" has de¬
'centers, New York and Chicago.
The
panv,
Street, W. I
TOTAL ASSETS
1892, was
said to be decided upon since the
number of stocks that can be baly
DIgby
of the Coml
payable November 2, 1942, to
Convertible 4% Series A
Corporation,
York
!
Cumulative Preferred Stock
the
on
Charing Cross, S. W. I
Burlington Gardens, W. I
Exchange, announced on Aug. 24
that its "night branch" will be dis¬
continued experimentally on Sept.
1.
Abolition of the corporation,
■
!
■49
;
New
26
a meeting of the Board of Directors
held August 24, 1942, a dividend of
one dollar ($1) per "share was declared
8 West Smilhfield, E. C. I
\
j
of the
NUMBER
DIV.'DEND
Bisbopsgate, E. C\ 2
a
The Stock Clearing
PREFERRED
throughout Scotland
At
3
Clearing Corp,/1
To End Night Branch
limit.
Steps are now being taken toward
'that end.
i
'Federal
.■■■>"■
<
LONDON OFFICES:
Stock
Phoenix Fire
operating virtually "at
almost
stocks.,
OFFICE—Edinburgh
Branches
but,
on; the
whole, dividend rates should be
more consistently maintained than
for the general run of common
Hartford Fire
the
HEAD
.
ultra-conservative
gran¬
same
[capacity" but, for this particular
j industry, capacity can be in¬
creased
•'
:;
borrowings must of
on
diose scale. The Banking Indus¬
try, after idling along in low
speed for the better part of "a
decade, is now being called upon
: to
handle the biggest job it has
ever
■
THE ATLANTIC REFINING CO.
Incorporated by Royal Charter 1727
will
strict, which is as -j it
should be. If, in the present, boom
This Week — Bank Stocks
period, banks can be prevented
from acquiring a top-heavy posi¬
Money makes the wheels go 'round—and the wheels, are begin¬ tion in real estate and
speculative
ning to revolve at a rate never before witnessed in this country. "Wars loans, neither the bankers them¬
are expensive, in fact the most expensive luxury of the human-race
selves nor their stockholders will
and they always leave the world poorer if not wiser. No war of any
have
any
cause
for complaint.
size can be financed on a pay-as-you-go basis and that means bor¬
Obviously, under present condi-,
rowing. Our present armament program calls for appropriations tions, dividend policies will be
are
notices
Royal Bank of Scotland
end
persecution!
supervision
continue
which
Thursday, August 27, 1942
a
per
share
dividend
CO.
York, N. Y,
,
DIVIDENDS
of
on
,
/
the Preferred
$.62^
per
-
share
the $5 Preferred Stock of American Pc\ver &
;
Light
Company were declared on August ,2$,
1942. for payment October 1, 1942, to stockhold¬
ers of record ' at the Close of
'business September 8, 1942.
quarterly
the
on
;'•
These, amounts
dividend
Preferred
the
$5
rates
Stock
Preferred
($6)
are one-had of
of $1.50 per
and, $1.25
share
per
the
,
i
.,,
on '1
share
Stock.
D. W."JACK,'Secretary and Treasurer.-.
.
,
.Volume'156
THE COMMERCIAL
Number 4102
& FINANCIAL
CHRONICLE
711
*
■»
I
w
V
(
A
■
apparently - wants"-to- lead your
body to believe that its comments
The Securities Salesman's Corner
on
solvency
of
minimum
and
lEven Shorter
The
SEC
Prospectus Would Help Increase Sales
that
•
-
Why
shouldn't
FEATURES
of
the
the
basis
of
the salesman
with
the
request
the
body11
investor?
Then,
made
for
if
To
a
is
complete and
detailed description of the offer¬
ing (which is on file with the
There
should
be- supplied.
be
-
a'
in
Approve Capital Rule
secu¬
scarcely
member
From
thing
merchandising
viewpoint
putting the
procedure is
bial
Is
cart before
other
no
an
the horse.
business
unrealistic
such
Securities
J
of ..the
100%
asked to read
which
is
wool.- You
a
;
descriptive
all
of
processes that went into the manu¬
every
other
about become effective.
time
business—it's
just
tion
statement -of
the
NASD
On
that
while
in
of
which
the
are
Philadelphia,
First,
shorten
busi¬
securities
and
development, inspections
Broadway, New York
|
"Some Candid Thoughts On Management,,
,
man never looks or feels better than on the day he stands at
the prime of life. Thereafter the
change in him may be imperceptible
at first, but nevertheless he has
passed the peak,
"So -it is with
v
the market, with particular
industries, with indi¬
companies. They always look best at the top.
That is, if
judges them from an emotional or superficial standpoint—which'
vidual
is exactly the way many investors ®
do judge the securities they
buy.
i. "Just what is good investment
Or, to be more
what
constitutes
good
management for (an investment)
management?
fund
;
plays
over
rose
$37,359,610 to $1,009,608,632,
capital
wareffort
funds
from
rose
' to
approxi¬
The
part
of
$328,050,121,
compared
with
March,, ,1917,
position,
when
only
Governments
were
U.yS.
$450,000 of bonds to
;
/ where
.
management
today,, ranks
New York
-seventh
largest
in
numerous
directorships and has been
recog¬
nized and honored by some of the
highest positions
in
the
banking
and financial world.
He is a past
president of the New York Clear¬
ing
occa¬
House
Association,
Chairman ;; of
the
president
of;
the
past
a
New
York
Clearing House Committee,
•
"Is-
it'
'trade
good
down'
portfolio
in
;management
a
Reserve
.to
quality of the
period of rising
a
prices for the sake of maintaining
income, or in order to pay big
dividends out of realized security
profits?
'
past
City
Bankers "■
'
i
Make
is.
it
more
of
over
quality ratings in selecting
curities
for
| "No—in
investment
and
I /
••
our
;
'
obstacle to better rela-
man¬
Business
Conduct
District No. 13
the industry as, well as
sold
deer.'
If
to
answer
an¬
and
disregards the
one
accent, that, in a
th$ indus¬
„
ILL. — Membership
Chicago Stock Exchange
has been posted for transfer to
Barrett VWendell,
Vice-President
of Lee Higginson Corporation, 231
The
Committee
of
against William J.
nutshell, is the
applied
as
to
Union
Bond
"C" and ends with the fol¬
lowing report:
"The daily
performance of UBC
during
years,
time he has
been
all
of which
associated with
''•
:
pointed regional administrator of: York Attorney General the names
members
its Chicago office, to succeed W. ofr several Association
when serious questions of insol¬
McNeil Kennedy, who "resigned to
vency
head the legal department of the
SEC
staff
Ben
in
a
S.
arose.
Warren,lis progressing toward the objec-
member
Chicago
1938, succeeds Mr. Hart
tant regional
months
as
administrator.
of7^1vea specified by your body but
'also to point out, in passing, that
since minimum • canital
requirements
assis¬ were not mentioned by vour body
•
in
that
decision.
Mr.
Baird
now
...
of
acquired
shares
this
for.
of
its
31,
year,
the
company
retirement
19,875
preferred stock
and 49,244 shares of the common
stock.'
own
;///'/:; /''/'..///
$'■= T 4s/' V
Boston
crease
Fund
of 11%
share
per
ended July
/;V >W'' z':'/
•
\ 4s
•
reports
in
net
in¬
an
value
asset
during
the
quarter
31, 1942. Net assets on
that
date amounted to $6,420,167,
equal to $11.66 per share on the
550,671 shares outstanding. These
figures compare with net assets of
$5,534,276
on
April
30,
1942,
equivalent to $10.49 per share on
the
527,616 shares then outstand-
*
Canadian Investment Fund.
Ltd.,
cssets
of $7,144,924
on
30, 1942. There were 2,409,660
Special
Shares outstanding
having a net asset value of $2.96
per share (Canadian funds).
had
net
June
Century
Shares
Trust
June
at.
30, 1942, had net assets of $13,120,(Continued on page 713)
.tic
Company
one
Atlas
Corporation reported net
of,. $44,408,679 as of June
Custodian Funds
"
BONDS
Business Men's Investment Bond Fund
Medium Priced Bond Fund
f
.
.
.
.
.
Speculative Bond Fund
.....
.
:
.
.
bi
b2
.
.
Low Priced Bond Fund
•
b3
b-t
PREFERRED STOCKS
.
Income Preferred Stock Fund
.....
Appreciation Preferred Stock Fund
Salinger To Be Partner
K1
K2
.
COMMON STOCKS
}In A, Wiesenberger Co.
Allan-B.
I
point out the foregoing not
Chicago office of the Alien Prop- only "to show that the Association
,
Dec.
net asset value, was $11.42
share.
During the first six
Reports C
•
.
On
stock.
common
1941,
is telling its own story of manage¬
ment — clearly and without bias.
Investment
forty
-
the
LOS ANGELES
successful, investment
However, it is not
an easy answer.
Anyone who has
ever had the responsibility of in¬
vesting money will testify to that.
It requires a highly
specialized
background
and
training,
plus
thorough security research—plus
judgment! For it is the job of
Corporation,: D. C. Web¬ Lee Higginson Corporation and
assets
try and its customers."
His' cor¬
ster, Kempshall & Hecht, Inc.; and the predecessor firm:
Quinn,
Smith
& • Company,
to poration is the third to take ad¬
mention a few names, which are vantage of the new rules of the
Hart Heads SEO In Chicago
inot intended to be a complete list. Exchange which provide for the
The
Securities
and
Exchange'in addition, District No. 13 has re- admission of officials of corooraCommission has announced that, ferred to your body's New York tions engaged in the
security busi¬
Thomas
A.
Hart
has
been
ap-! regional office and to the New ness.
„■
/;'
Jr., who has been
JERSEY CITY
management.
Fund
:£• Of Chicago Exchange
Stelmack
Custodian.
634 SO. SPRING ST.
per
J "When asked the secret of his
jceedings instituted by the District
r
COMPANY
INCORPORATED
.<•
of
opinion good
success, the elder Rothschild
swered that he 'bought sheep
'{•"•CHICAGO,
in
and
in
agement is something else.;
tion
Wendell Now Member
:
REQUEST
ON
W. LONG
se¬
management philosophy in opera¬
2,200 members:
this
tions beween the Commission and
erty
.
"Is it good management to rely
On
that
the
Association,
at,' least
Here it is since the first of the
available, by request, for all those in
the
administration
of
its
who desire more complete infor¬
year:
Net appreciation in market
affairs
in* District
No:' 13y has
mation.!
By doing this the law to
a
large
extent
accom¬ South La Salle Street, it was an¬ price, 17.6%; estimated dividends
will still operate to protect the
for full year 1942, $0.48; equiva¬
/',' Sr':
plished what your body hoped it nounced.
investor" from
misrepresentation would.
In this connection, may I ["> Mr.- Wendell has been an out¬ lent at the present market to an
and omission of material facts, but call
annual rate of 8.4%."
\
your attention
to the pro- standing member of the Chicago
it. will also help clear the way of
financial
community for nearly
From
one
PROSPECTUS
HUGH
15 EXCHANGE PLACE
Association, : and
this
spring completed a two-year term management to determine when a
as
President of the Chamber of
given security is cheap."—From
Commerce of the State of New
Lord, Abbett's Union Dealer.
York, and a like term as Pres¬ 1 Dated Aug. 20, 1942.
are. reg-
SERIES
the
rating .classifications?
Bank
City, and tenth in the
/.•'■VyV' ' >;V ;':V/'/
■■■,;•
••/•
holds
STOCKS, INC.
ruling out all issues which donotU
1942_ equal t0 $u 01 per share
happen to fall within specified on the
held
2,421,165 outstanding shares
.
i: Mr .-/Johnston
NEW YORK
SERIES
the
..
,
20
OF
the
secure
circulation.y,The Chemical
nation.
in
its
is; reflected in this
Treasury holdings of
■
bank's "U..S:
-
as
I
so
.
form
MAJOR
INDUSTRY
.
today
financing the Government in
to
Surely this is a step toward at¬
the essential details required to taining
the objective that your
give the average individual in¬ body referred to.; /'A fv,
vestor an understanding of what
With
respect to questions
of
he is buying.
Keep the more de¬ solvency .or insolvency, I believe
tailed
-*
■Kdi
specific,
to
mately,. ;$80,000,000.
played. by the bank
or
practices
CAPITAL STOCK
i .1.
]' *; "A
,
modified prospectus which is now
in,use.
Eliminate everything but
..l
Russ Bldg., San Francisco
: ;
periodic, still, as? Mr;
ident of the Board of Trustees of ! The; bulletin
goes
on to
cite
is as
follows:. Baird said, the Association has. re¬
Sailors Snug Harbor. /
specific examples of the sponsor's
financial
and
business
tighten up the viewed
held ular
being
now
.i
.
Investment Trusts
One
Deposits
about x- $12,000,000
began to get back to this sion your body pointed to the ab¬
principle in the securities busi¬ sence of rules concerning the sol¬
ness.
i
vency
of members or requiring
( \ The suggestion we would make regular or periodic inspections.
to those attending the meetings While it cannot be said that at the
between the SEC and the various present stage of the Association's
branches
'V
Dunne, President,
New York Security
■
Dealers Association.
6ne billion dollars.
we
ness.
the
yours,
from,the.$50,000,000 level
from
proceeding of a portion
upon the integrity of your dealer quoted by him from your body's
to offer you good value for your decision
permitting the registra¬
money—this is the rule in
-120
big a role?
"Is it good management to be
the^ bank has made during this
period, with total resources rising constantly shifting funds back and
forth on a quick-trade basis? •: / ;
this
in
of
names
With Chemical Sank
I should like./to ,call
attention to the irrelevance
your
the
(Continued from first page)
statement,
facture of the completed garment.
In the long run you must rely
.j.mi
;
)
the
.i.i in
what
P. Johnston 25 Years
Con-
Before concluding the portion of
this letter relating to Mr. Baird^s
|-|ii.
NATIONAL SECURITIES & RESEARCH CORPORATION
1:
every
just
repeat what I said
hearing—the vote should
by secret ballot.
•; •
short of any such standard as this.
not
are
10-page document
and
Frank
buyer and seller is created. When necticut Bank Commisison.V: (See
you go to ? the clothing store to! Association Exhibit No. 8.) "The
buy a suit the label is simply I proposed rule certainly* falls far
marked
voted
Very respectfully
o
Division
i
Prospectuses upon request
.
considerable
just how
j I therefore
obviously does the Director of the
between
to
gone
members,
at' the
There with Mr. Baird in this respect, as
such
n
now
have been
prover-jcash or margin business."-*--1 agree
where
situation
a
i
f
,
eco¬
taken
-t
clear, for the Asso¬
except
various
obligations
of
the
dealer
and
whether the organization does fa
a
well
was
*
'
'
•
did not vote.
Associa¬
tion Exhibit No. 5 contains every¬
.
dealer—not the investor:
t
'
-
members
individuals
rities
dealers
and
salesmen
to in the securities
business today,
place an involved and voluminous it is obvious that
$2,500 or $5,000
document in the hands of every
js no cure for-vanishing capital
prospective investor. In this way and
1
.>.v .r
operating losses.
How then
the responsibility under the law
can
he seriously say that mini¬
would still be placed upon the un¬
mum
capital requirements are ' a
derwriter and dealer and it would
step toward dissipating some of
be
up
to them •- to
investigate the temptation to restore a balevery detail regarding an
offer-jance on a financial statement?
mg, rather than suggest, as is now
J . Mr.- Baird also stated quite
done, that the customer likewise
frankly that it is "impossible to
make
almost the
same
sort
of
specify
the
amount .of
capital
complicated investigation. : jwhich it was appropriate for every
[After all, why should the aver- one of the members to employ,in
age investor be asked to struggle their business."
He went further
through legal phrasing, statisti- and
said, 71 "Obviously,
capital
cal tables and complicated data? should be related to the volume
This is the job of the /securities of business done and the size of
r
because'of
so
pains to analyze
worthy
any
COMMODITY CORPORATION -
sanctions
ciation "has
complete clined
compel
did
favor
appears to be
to go together."
Does he
believe, that there are no, such
tinent information that would be
things as honor and character and
primarily . used ' by dealers and that these qualities
disappear in
institutional investors, as well as
the face of vanishing-capital. and
any individual who might request red
operating figures? If he does,
one
for
study and information. he must conclude that there are
law should not
FIRST MUTUAL TRUST FUND
for fear of reprisal;
of those who voted
so
some
argument
no
prospectus which carries all per¬
The
cir¬
they
thought
might., be";applied if they did
otherwise.
That this point in my
(Continued from first page)
guarantee of honesty or in¬
tegrity but he says that "meager
capital or no capital at all and
the abuse of public trust and the
rules of the Association were in¬
further
a more
Commission)' could
afraid to do
Income Series
Low-priced Common Stock Series
,
your
to prevent
a
free expression of
opinion from the members; that
those* who
did
not
vote* were
and that
Low-priced Bond Series
Preferred Stock Series
appeared before
pointed out that the
surrounding the vote
taken by the NASD were such as
nomic
information that
obvious, is not
I
cumstances
Says Counsel Refused
offering form
an
is required to leave
were
information,
SALIENT
NATIONAL SECURITIES SERIES
Bond Series
'*'//,
When
leave with investors is still too long.
endorsement
an
capital requirements
seems
so.
securities salesmen are required to
From a merchandising stand¬
point it is a sale killer. People don't like to read involved legalistic
phrases—the facts are, that the very people whom the prospectus
is designed to protect, through the disclosure of material and relevant
dataw are the very ones who are the least interested in wading
through the average prospectus.^
prospectus
were
this, it
the
of
Stock
the
Salinger
Exchange
late
Charles
will
K.
Cook
a
Exchange.
y
Low Priced Common
Stock Fund
,
.
.
.
52
53
Si
on
partner
in Arthur Wiesenberger & Co.; 56
Beaver
Street, New York Citv,
of
51
.
Appreciation Common Stock Fund
membership
Sept. 3 and will become
members
Qu.riity Common Stock Fund
Income Common Stock Fund
acquire
the New York Stock
Prospectus
may
be obtained
from authorized dealers, or
The
PARKER
ONE
COURT
CORPORATION
ST., BOSTON
Prospectus
nuty
be obtained jrom yotur dealer or from
The Keystone Corp. of Boston
50
congress street, boston
,
THE COMMERCIAL & FINANCIAL CHRONICLE
712
have cut down personnel by cur¬
VIRGINIA
FLORIDA
tailing services or by assigning
employes still on the job to take
Wire Bids
■
FLORIDA
VIRGINIA—WEST VIRGINIA
MUNICIPAL BONDS
NORTH and SOUTH
CAROLINA
experience in handling Flori¬
Our long
da
:
gives
issues
us
them
at
BONDS
MUNICIPAL
r.E.Crummer S. Company
'
Bell
CHICAGO ILLINOIS
"""
BANK
yi\
System Teletype;
v,'
RH 83
& 84
Telephone 3-1)137
•
mili¬
place in Yonkers,. Mason
City, West Palm Beach, Asheville,
Knoxville, Pasadena, Watertown,
N. Y., Winnetka, 111,, and Rumford, Me. Yonkers' 1942 payroll
has 600 fewer employes than it
'■
surveyed
saving
include
by
money
callable bonds.
garbage
refunding
^y.:
y
.
Typical of the cities which have
tightened their belts, according to
the Association^ are
Asheville and
Pasadena,
Bonds Voted
last
Until
Monday
indica¬
all
porary
loan notes issued by the
of tax
exempt State and local securities
not be disturbed in the
empt from Federal income tax."
the status
that
were
would
Municipal Bond Club
!
contemplated Revenue Bill. How¬
Special Meeting Called
ever, in a surprise move on that
day, the Senate Finance
managed to tip over
cart.
Voting 9 to 7, the
tee
tentatively agreed
Commit¬
the apple
Commit¬
to make
tee
income from future issues of such
bonds
Federal income
subject to
action
This
tax.
stand of the House
which
the
reversed
on
the matter,
had
disregarded the rec¬
ommendation of Secretary Morgenthau
to
such exemp¬
"spe¬
remove
tion, since it constituted a
cial
privilege."
Senator
in
George, the Chairman,
the
announcing
decision,
was
strong opposi¬
cognizance of the
tion that
was
hearings
manifested at recent
by
the
heads
Council of- Mayors
other
em¬
that it was tentative.
evidently taking wary
phasized
This
V
and
the
of
municipal and State gov¬
organizations.
Before
of the
action
Senate
becomes
Committee
Finance
law, it must
special meeting of The Mu¬
the SEC full disclosure
to discuss
rule
proposal, will be held this
afternoon (Aug. 27), on the fifth
floor of the City Bank Farmers
Trust
CompanyV Building, New
York City. Members are urged to
attend this important meeting.
Municipal Bond
Analysis Prepared
yJ. Austin White, proprietor of
Co., Union Central
Bldg., Cincinnati, advises us that
his book called, "White's Analysis
of
Municipal Bonds," haskjust
J. A. White &
off the press
come
$5
a copy.
We have not
portunity to
Mr.
and copies
available for
now
White
rather
10,000
the book but
county
and
the
in
to anyone
be made
will
from
revenue
feels
Market Little
or
more
confident
bonds.
$4,000,000 bridge
bonds.;.
There
that
fact
that
The
little
appears
approval of
dog
a
likelihood
both
Houses
of
Congress will be forthcoming this
year on taxation of future issues.
Still,
some
dealers
are
said
to
have been disturbed
on the .theory
opening wedge will
inevitably lead to a wide attack
on outstanding local unit securi¬
that such
ties.
an
Failure of
to
move
to
this
Local
up
outstanding bonds
in price is attributed
feeling.
Housing Notes
Jl.iiled Exempt
that
the
are
material
book
publica¬
Government in
be
exempted
Connecticut must
from
taxation, the
Attorney General announced
State
recently.
Although
the
no
provisions exist in
Connecticut General
Statutes
for making such exemptions, un¬
der international law "a
state may
not impose
sovereign
tax upon
property of another
sovereign state devoted to the
public service of that state,"
; -; "International!law,"
the At¬
torney General said, "is a part
a
the personal
established
4
in
this
by
case,
Government
and
-
the
great
defense, but not for non-essential
projects.
taxes, and taxes which pro¬
vide full and complete .fire or po¬
lice protection.
Such levies must
be
paid by the government
all
on
properties;;'real and personal..,.
Fla.
of
the
Louis
concerns
itself
factors which
two
Property Valuations
always of prime importance
vested capital is
property
as
seeking commer¬
airport facilities beyond their
valuations
up
The
Bureau
of
Internal
Rev¬
enue issued a
ruling from Wash¬
ington Tuesday that interest on
temporary loan notes issued by
local
housing
authorities
"is
ex¬
empt" from Federal income taxes.
The Bureau reported that:
"Local
housing
authorities
seated pursuant
which
are
the
temporary loan
to State law,"
issuers
notes,
instrumentalities
of
the
"are not
of the
United
States and, therefore, their obli¬
gations do not
scope
come
of section 4
within the
(a)
tual base.
much
as
600% in two counties arid
more
supra,
of
the Public Debt Act of 1941, as
amended."
Hence such "tem¬
own
abetted
by
Government
Civic officials
Cities Practice Economies
that
To Meet Effects Of War
are
commercial
of
circles.
the opinion
aviation
will
be
di-1
the planning fund between
city department
engineers
and
private engineering and architec¬
tural firms.
Appointment of
a spe¬
Post-War Planning Commis¬
sion was recommended to consist
cial
of the
comptroller, budget direc¬
tor, the city planning commission
chairman and the city's chief en¬
gineer.
All plans and surveys
would have to pass this group be¬
fore
being acted upon by the
Board of Estimate.
' - - '
The
planning fund would be
spent within 18 to 24 months of
,
'
the present
date, officials said.
Antonio, Texas,
announced late Monday night the
award of the $33,950,000 electric
and light revenue bonds to
banking group composed of A.
C. Allyn & Co., E. H. Rollins &
power
a
Sons, Inc., and the Union Securi¬
ties
Corporation.
Proceeds from
the issue are to be used to finance
the
acquisition
properties
of
of
the
physical
San
the
Public Service
Antonio
Company.- /
'
The next best bid for the bonds
tendered
by a nation-wide
banking group headed jointly by
was
Halsey, Stuart & Co., Inc., and the
Securities
Corporation.
Mellon
The
Allyn
submitted
group
combination bid
a
for
2V2, 2% and
obligations, maturing in vary¬
3%
ing
from
amounts
1944
1972.
to
The interest cost basis to the
city
of the Allyn bid was 2.85%,
The
Halsey,
bid
Securities
calculated at an interest
was
cost basis to the
is
It
city of 3.0419%.
indicated
awarded
were
■
Stuart-Mellon
pending.
bond
cial
asked to
was
the
that
bonds
subjec^ to approval
by the Attorney General, since
litigation over the deal is still
;
In pressing for approval
St.
V':'v'v
Authorization
Officials of San
,
in these
and
planning of a
$628,000,000 city postwar construc¬
Govern-
the
•
with
bonds
the
Litigation Pending
^agreement between the British
>
of voters
serial
for
notes
San Antonio Awards Bonds
t
Clarification
awaited
the
of
suit
is
being
the
between
Guadalupe-Blanco Authority and
the city of Sari;Antonio bver the
method of converting San Antonio
Public Service into public owner¬
ship. Guadalupe-Blanco, a Fed¬
eral Government power
July 13
against San
seeking to
proceeding
purchase of
authority,
brought court action
Antonio city officials
restrain them from
on
with a contract for
the utility# The Au¬
thority claimed
right to take
The
over
1
property.
•
successful
rather
the company's
.
bid
as
came
surprise to municipal
houses, but it must be borne in
a
mind that the
been
acting
Allyn
had
group
fiscal agents for
as
the city of San Antonio in set¬
ting
the deal for acquisition
up
—when assessments averaged 25%
of the San Antonio Public Serv¬
of
ice
full
first
value—and
of
year
the
for
1941,
full
the
valuation
greatly expanded when hostilities
laws, were compiled by the State
Cities cutting corners in their are ended, therefore:it is their Planning Board from records of
budgets to counterbalance war- desire to have the communities the Comptroller's office.'&
•
!.;s'
,y<\;;?v
brought
expenses
and
reduced they represent' in the'forefront of ,-r .;
N. Y. State Tax Revenues
1
revenues
are
"More and better
making the saving the movement.
chiefly
by
public airports" is the watchword of the Cut By; Gas Rationing
eliminating
!
works
construction,
reducing day.
Fewer proposals are being
The New York State Tax Com¬
street maintenance and building considered
by voters, due to the mission is currently mulling over
inspection, and doubling up jobs present exigencies, but aviation a report from its President, Car¬
left
vacant
by employes called projects are enjoying their hey- roll E. Mealey, which shows gaso¬
•
Company.
For services
in
this capacity the Allyn group
understood
anteed
total
to
have been
fee of
a
issue,
or
is
guar¬
1^% of the toapproximately
■
into the armed forces.
*
tax
appropriation of
an
vide
Personal property of the British
-
popular
on
$10,331,555- in
'•%
;
than 500% in three others, accord¬
authority to create, and there
to those who buy and sell mu¬
is almost an equivalent amount ing to recent Tallahassee advices.
which had been thought to be
nicipal obligations; the first of
in Federal funds to provide land¬
V For the whole State, assessed
dozing suddenly barked, the mu¬
which is the characteristics of
ing areas for the ever-increasing valuations shot up from $526,108,nicipal fraternity displayed little
the population in any particular
number of aircraft now in produc- 837 to $2,126,823,848, or 304.26%.
concern over the Senate Commit¬
city or county, indicating the
Little Gulf County, in the Tu¬
tee's action. They have adopted a
K
Vv h
■
willingness
to
pay—secondly,
There appears to be a feeling pelo honey country of West Flor¬
policy of "watch and wait," since
the degree of diversification of
the whole subject is clouded and
among municipalities throughout ida, led all the rest, with valuation
economic pursuits, which repre¬
the country somewhat akin to the increases from $1,095,283 to $8,this latest move is regarded more
sents the ability to pay.
or less as a trial balloon.
sentiment that prevailed during 383,004, or 665.37%.
Most is¬
Closely fol¬
Eight years of research work the period of wide railroad con¬ lowing was Martin County, down
sues remained unchanged in New
This war
is making on the Middle East Coast, with
York's trading marts, demonstrat¬ and five months of compilation struction.
was required to make public the
ing
that
average
citizens far more air- a hike from $1.553,590 to $11
even;
unpredictable
Washington moves are now being information, says Mr. White^ using minded than ever before, and the 577,627, or 645.22%.
shrugged off by Wall Streeters. Federal Census reports as his fac¬ sentiment is being.: aided
and
-Figures on valuations for 1940
the
Despite
last week
tion program.
Conn. Rules British Held
Show Big Rise
proposal,
The full valuation tax assess¬
it was stated by the Chairman
interested in municipal
of the Airport - Committee that ment laws passed by the Florida
Legislature in 1941 showed total
several billions of dollars of in¬
chiefly with
Changed
city
every
contained in his 112 page
State and municipal securities.
>
the
on
$8,000,000, this figure was largely
ment of the United States.
As
accounted for by approval on July
such, it is the law of Connecti¬
21 of $6,500,000 Hampton Roads,
cut and every other state in the
Va,, Sanitation District bonds. In
Union.'*
4
^
%>
June, approvals by voters totaled
Real property of foreign gov¬
$6,836,000, while in July, 1941, the ernments are not included in the
figure was $6,518,600.
Proposals international
law
agreements.
involving $2,674,000 bonds were Judge Pallotti said, and hence, is
rejected by voters in July, as com¬ taxable. In the case of Great Bri¬
pared with $4,329,000 for the same
tain, he said, very little real prop¬
month last year.
On July 28, an erty exists in Connecticut.
•
election
in
Laramie, Wyo., re-;
Personal property of the Brit¬
suited
in
defeat, for
$1,500,000 ish Government includes airplane
light plant bonds.;
;
parts, guns, ammunition and other
:
On Aug. 4, voters of Wichita,
materials of war and all types of
Kan., turned down a proposal to lend-lease
goods made or stored
issue $6,127,000 water system pur¬
for shipment in Connecticut. chase bonds, but on the same date
Although exempt from general
the St. Louis; Mo., electorate re¬
assesment and 'taxation, the At¬
turned k favorable .verdict .for;ij>4,f
torney
General said that such
500,000 airport site development
foreign properties are not exempt
bonds,
'!
from the payment of direct taxes
It is safe to report that hew
for
service
rendered,
such
as
bond issues are not proving very
water
Americans'are ready to spend for
information
tax
provision
total of bonds since
aggregate of over
of
contains
tion will be of considerable value
bill,
be made
an
population; 5 He
it
approved by both the Senate
with members
more apt to listen to
the
pleas of local
officials, it
would be surprising if in the final
taxation of the
margin.
It appears un¬
likely that a similar attempt will
of the law of the United States,
majority
times, the sole
exception being proposals to, fi¬
nance airports. This indicates that
that
every
States
at
yet had the op¬
examine
states
concerning
United
as
are
distribution
extensive
:
be
for
largest
1938, with
small
,
and the House, and
of the House
^
While voters in July authorized
the
have
to
"
numerous
ernmental
the
A
nicipal Bond Club of New York,
<
And Defeated
local housing authorities are ex¬
tions
city officials N. Y.
City Post-War
the hospital
Construction Program
bond issues resubmitted, on the
Mayor La Guardia received ap¬
ground that the badly needed re¬
pairs failed of approval by only a proval from the Board of Estimate
seek
Property Tax Exempt
collection, police auto patrols, mu¬
nicipal
advertising,
recreation,
weed-cutting, relief and welfare.
Two of the cities—Sterling, Kans.
and Winnetka, 111.—reported they
are
It is said1 that the
may
curtailed by the
Other services
VIRGINIA
on
taken
cities
RICHMOND,
of those
Such reductions have
had in 1939.
CRAIGIE&CO.
1ST
work
tary leave.
\y
obligation.
no
:
Kp '
comprehensive
a
familiarity with these
municipal bonds.
We will be glad
to
answer
any
inquiry
regarding
of
background
the
over
on
Thursday, August 27, 1942
day.
line
U;vG;;
assertion
This is the finding of a survey
made by the International City
voters
Managers' Association, which
posals, the electorate of Kanawha
cured
reports
on
wartime
se¬
To
bolster
our
would 'favor
airport
that
ance, and at least one other—West
Palm Beach,
voters
followed
the war-conscious trend
by turn¬
on
Aug.
11
the
Fla.—expects to save ing thumbs down on. two pro¬
street lighting through air raid
posals totaling $5,000,000, neither
nrecaution dim-outs. Mason City. issue
receiving the required 65.%,
Ia., and Asheville, N. C., said they majority. A $4,000,000 issue wpqld
were reducing
building inspection have been used for city bridge
on
personnel because of the drop in
;
nine
of
the
sales
■■'U':•.f
Mealey
in
the
gasoline
reported
State
off
were
cities
repairs; the $1,000,000 bond issue
was for municipal hospital repairs
and
improvements.
iri
June—the first full
29%
month
of
rationing in all but 10 counties of
the State—and
the
from
last year.
that,
less
from
revenue
motor fuel tax declined
the
$1,400,000
corresponding
period
for
alcoholic
ing consumed
beer
and
are
be¬
State,
but
beverages
in
the
wine,
that cigarette sales jumped slight¬
ly
in July,
ago.
■<
Bond. Offering y'\y
New;,
compared to
Orleans,
51
-
'%
La.,
announced
late last week, a new issue of $12,000.000 ; refunding;, bonds,
to
be
publicly
sold
on
Sspt.
15, in
the
t^ata current plan for vol¬
untary exchanges by bondholders
of outstanding
and. callable • 4%
bonds for new 2% securities fails
to reach
The
a
year
;
:
a
set figure by Aug.
issue will mature
new
31.
Sept.
1, 1943 to 1950, and bidders are to
a
coupon rate of not more
name
than 2%.
The
The report also showed
except
,:t
New Orleans Schedules
' event
econ¬
street and public works mainten¬
Altogether,
Mr.
pro¬
County, W. Va., gave a 7 to 1 ma¬
omy measures of112 cities.
jority on Aug. 4 to the issuance
Eight of the cities reported of $1,000,000 bonds for such pur¬
they are effecting their main re¬ poses.
■;
V'
ductions by reducing outlays for
At Cleveland's primary election
construction,
rationing is biting into State
revenues.
$500,000.
issue
plan upon which the
is
contingent
calls
for
new
ac¬
ceptance
by- 90% of holders of
$12,000,000 4% bonds due 1950,
but callable since July
the
lower
rate
of
2%,
1, 1942, of
which is
estimated to be the rate at which
the
community
can
the term of the loan.
borrow
for
•
Volume
If
Number 4102
156
acceptances
to
that
THE COMMERCIAL &
city will call the entire outstand¬
$29,892,253, which compared with
cash deficiency of $57,279,989 on
July 31, 1941. On the latter date
ing issue and refund with the
the
not available
are
loan
now
ance
with
Last
reports
York
indicated
extent
Aug. 31, the
on
announced
in
Louisiana
accord¬
State
available
that
new
laws.
New
in
$9,942,000 of
the
4%
for
exchange, against the mini¬
of $10,800,000 required.
issue
has
been
tendered
mum
of
$33,359,898, but it also had
indebtedness
rent
standing.
Highway
months
of
in
the
of the state
the
first
seven
have
surged
3.2% ahead of receipts in the com¬
parable 1941 period, figures sup¬
plied by the state's department of
net
year
showed recently.
for
the
revenues
Total
revenues
months
amounted
compared
$9,495,115,
$9,200,138
last
"«- / '
Xy ;x;
year,
This
showing
seven
to
with
with
comes
as
direct
a
which
highway
sult
sale
the
have been faced
problem of dwindling
the
of
revenues
as
restrictions
cases,
were
cantonments, airports, other
governmental agencies, and na¬
tional defense industrial plants in
the states. Earlier this year, Gov¬
his
Adkins
opinion
in
that
said
the
it
large
number of motor vehicles brought
into the state, because of this in¬
time,
redeemed
1941
*
decided
current
opera¬
Feb. 28.
on
In the
entire fiscal year ended June 30,
the State ^called $125,863,014 in
warrants,
u
-
tive
Up
fuel
Motor
■>'•
tax
-
..
'• .'f
receipts by the
ended
1941
June
30
set
an
ap¬
peak
at $6,028,635,
and
with $5,653,074 in the
fiscal
year,
state; figures
Receipts for the first six
1942, the last half of
months
assembly,
penal
$1,858,612.
As of June
indebtedness
net
$30,973,056, compared
$32,485,298 a year earlier.
with
state's
shown
net
indebtedness
almost
an
execu¬
❖
gen¬
charitable
Keystone
and
ries
*
ijs
•
.
.
Custodian
"B I"
with
colleges and the
items.
reported
Fund, Se¬
net
assets
net assets of
$1,825,209
31, 1941, equal to $26.54
Dec.
share
'/x',' 't-\'
the
on
shares
Canadian Bonds
has
as
then
smaller
Shares.
It
number
of
is
the
title
of
a
American Business
on
is
simple, clear-cut
advantages of
owning
securities
through that
fund. Incidentally, the latest issue
of Lord, Abbett's Abstracts talkes
exposition
novel
a
be
a
of
the
viewpoint
of
which
particular
should
interest
to
dealers.
i,Mlt!iH!HI»
—
New York Stock Exchange
Weekly Firm Changes
outstanding.
;;
Custodian
The New York Stock Exchange
has
announced
the
following
Keystone
Fund, Se¬
30, weekly firm changes:
bond men
in
this
1942, listed net assets at $414,746,'
following with inter¬ equivalent to $9.56 per share. On1 1*3Transfer of the Exchange mem¬
bership of Alfred Blumenthal to
the continued market firmness
June 30, 1941, the net asset value
Milton Wasserman will be consid¬
various
Canadian
provincial per share was $12.13. ,y.
'
ered on
Municipal
country
est
of
are
in
tendency toward reduced differ¬ a
on prices as between vari¬
preferred
entials
Provincial
ous
obli¬
government
for
the
period of the
ing
held
powers
provinces.
Under
over
by
war
the
the
guarantees
plan
the
fixed annual
income
the
sums
emer¬
$2.70
or
net
#
assets
1942.
sources
the
Federal
political
on
Among
the
formerly derived from
asset
value
❖ •
«.
Investors,
Inc., had
$353,116 at June 30,
of
*£,'»•
to
*
^ .•»
six month period
ending June 30,
1942, shows net assets at market
value
rev¬
amounting
compared
gaso¬
progressive de¬
at
'WyvV.'
Wellington Fund, Inc., for the
•
guaranteed by
Government to the
is
assets
Dec. 31, 1941.
on
This amounted
/.
bond
now
subdivisions
capital
$4.67 per
share on the 75,518.4 shares out¬
standing as of that date,
relin¬
annual
requirements.
the
enue
their
on
net
net
a
share
X*' '
••
quished
with
per
Sovereign
v.
.
certain
sources
reported
compares
of
Dominion
based either
from
the
30, 1942, of $847,775, equal
to $2.38 per common share.
This
various
provinces
in
June
certain tax¬
.'■■■■;'X'.J>XXX
■
stock
structure,
gations since adoption of the plan
whereby the Dominion of Canada
gency has taken
Sept. 3.
/1 :.,
i
Republic Investors Fund, Inc.,
leverage fund with bonds and
with
to
$5,518,905,
$5,389,512
activity,
,
Wasserman
Both
&
partners
are
Co., New York'
City.
With the retirement of Earle T.
Shaw
as
McK.
Watts
general partner and Bell
as
special partner in
Fellowes Davis & Co., the present
partnership will be dissolved
Aug.
31
and
as
of
partnership
will be formed consisting of Philip
P. Getty, Samuel H.
Watts, mem¬
a
new
ber of the
Exchange, R. Snowden
Andrews,
member
of
the
Ex¬
change, and Ralph P. Hinchman,
Jr.
The firm
will
name
continue
to be Fellowes Davis & Co.
Julius
C.
Peter
retired
from
partnership in Crouse, Bennett,
Smith & Co., Detroit, Mich., on
AUg. 15.
:
■
.
Nathaniel
of
as
line taxes.
This naturally is of Dec. 31, 1941, or an increase of
would tend to cline since the end of the 1926 no little
significance under pres¬ $129,393 for the period. Net asset
offset any reduction in taxes that fiscal year, when it totaled $59,ent conditions, and is considered value at the close of the period
might occur as a result of tire ra¬ 471,245. ' ;=
;'XVX X;X-X as placing the Dominion of Can¬ amounted to $11.98 per share after
tioning and other factors.
payment of $0.36 per share in div¬
ada back of provincial
govern¬
Drainage Projects Serve
The Governor also stated that
idends during
ment credit in
the period.
a
more
This
realistic
12th Of U. S. Farm Lands
notwithstanding tire rationing
compares with a net asset value
way than ever before.
and threatened reduction in the
One-twelfth
of
the
of $12.33 per share as of Dec.
nation's
31,
Among the less highly regarded
use of automobiles and gasoline
farm lands—an area equal to the
1941.
; fyy.::'V;x'
consumption, the state was in a
combined states of Indiana, Ohio Canadian provincial issues which X;;..y>-X ''
X'X'X *
* X M '•' ' •',' 'XV;
creased
Industry"
folder
new
on
per
ries "K 2" in its annual
report for
the fiscal year
ended June
Continue Strong
interest
The
before deducting the dividend of
$0.42 per share payable Aug. 1,
University of Illinois, and other
balance of
total
(Continued from page 711)
440, equivalent to $22.01 per share
old age
assistance, partial support
of the teachers'
past
amounted to
ican
institutions, revenue col¬ of June
30, 1942, at $2,004,973, or
divisions, state share of $25.83
per share.
This compares
general fund balance of $4,01-3,950
a
rural credit general fund
and
30,
including
purposes,
lecting
of
the fiscal year, aggregated $2,521,856.
The state on June 30 had a
"How You Can Buy Into Amer¬
Investment Trusts
general
obligations outstand¬
ing in the United States. There is
State of South Dakota in the fiscal
year
had
departments, courts, the
eral
a
Revenues
ending June
year
state
government
So. Dakota Gasoline
showed.
army
was
was
state
warrants, aggregating $54,407,272,
compared
largely has been
brought about by the location of
M.
last
tions had been financed largely
through the issuance of registered
warrants, against general fund re¬
ceipts.
The last of outstanding
parent
revenues
Homer
late
that
to
re¬
on
The advance in the state's high¬
ernor
State
the
direct
a
placed
of tires and, in some
rationing of gasoline.
way
for
month showed that the State
contrast to the experience of some
states,
report
free from current indebtedness.
Up
revenues
Arkansas
The
the
receipts of $74,324,525 and
expenditures of $71,804,073, leav¬
ing a surplus of $2,520,451.
The
general fund is used for general
cur¬
of which $86,800,438 was repre¬
sented by registered warrants out¬
fiscal
713
fund
$90,639,892,
to operate on a strictly cash basis,
Increased In 1942
of
of
the
1941,
30,
State did have available cash
The
Ark. Road Yield
In
a
FINANCIAL CHRONICLE
Parkinson
withdrew
from
partnership in Hutchins &
Parkinson, Boston, Mass., on Aug.
18.
Interest
of
the
late
W.
Harry
Glenny, limited partner in Doolittle, Roth & Schoellkopf, Buffalo,
N. Y., will cease on Sept. 24, 1942.
*
Florida Firm Cited
■
stronger financial position than
before and that it did not
ever
have
to
about
worry
principal and
meeting
interest
require-
"ments oh outstanding indebted¬
■;
ness.
V
;•
X
Miss. Lists Large
Cash
;
;
taxes
solve
to
comfort in
and
State
Federal
wartime
aid
and
Census Bureau
a
an¬
of
with that of other States, the Bu¬
found
reau
that the
special
sales
counted fcV a
of
public
drainage
greater proportion
than
revenue
Mississippi
complished
the
its
own
to
even
in
any
just
has
feat,
ac¬
amazing
officers whose
business it is to look ahead for
trends, of ending
revenue
cal biennium with
some
fis¬
a
$9,000,-
000 cash surplus in the treasury.
Whatever
of
levees
have
of
objections in princi¬
opponents of the sales tax
make, few deny that it is of all
taxes the most promptly respon¬
sive to a quick business pickup
which puts money into circula¬
tion. It was the sales tax, boosted
by a period of good crops but es¬
pecially by booming defense and
then war activities, which filled
Missisisppi's treasury to overflowing.
•
••
ple
the
been
amount
48
nation's
states
to
$691,724 519,
ex¬
pended in drainage district ef¬
forts to improve farm lands, re¬
alkali
move
seepage
from
irrigation, protect against over¬
flows,
and
reclaim
swamp
diana
than
or
v\:V
drainage
acreage is in In¬
Minnesota with more
and
10,000,000
acres
each.
The
same
inevitably
tax
will
larger proportionate
part of the state's future financial
arrangements'/as a result of the
1942 Legislature's lowering of in¬
play
come
an even
and ad valorem tax rates.
of
the
State
which resulted
registered
in
the
last
in
of
warrant
fiscal
fiscal af¬
California,
removal
of all
indebtedness
year,
was
con-
'
tinued
in
July, a report from
Harry B. Riley, State Comptroller,
showed recently.
The State closed the month, the
first of the 1943 fiscal year, with
a
general
fund
cash
excess
of
the
Funds ;
-
We list herewith the
oortant
000
a
of
a
$38,393,387 in its
fund, as com¬
revenue
a
balance of $10,722,-
earlier, the eighth an¬
nual analysis of state funds pre¬
pared by the department of fi¬
nance
fund
recently.
General
receipts for the fiscal
amounted to $108,213,610 and
penditures
in the
the
which
future.
near
successful
yy
*
are
The
the
ex¬
up
names
and
last
issues
scheduled
of
Co.
of
New
Last
April
the
year
ex¬
city
syndicate headed
Inc.
The
by Halsey,
Northern
and
associates,
bidding.
awarded
were
Trust
bonds
to
a
Stuart & Co.,
Co.
of
Chicago,
the runners-up in the
September
approximate
bidder
November, 1939.
for
and
issue
offered
in
Second highest offer sub¬
with the balance of
In,
$10,722,247 at
June,
awarded
1941,
the
issue to
San
$38,393,387 figure.
Hawaii, Honolulu.
an
Francisco.
bonds
was
The
above
Dean
city
"K 1"
and
-'."X
the
title, "Banks' Earn¬
ing Assets -Expand
to
Record
High," Hare's, Ltd., has published
a
folder
new
the 15 New York
on
City bank stocks in the portfolio
Group Shares. According
of Bank
to
the
stocks
■
ing
folder,
of these
at
76%
an
of
their
"Currently
15 banks
ratio
average
book
value.
securities
sidered
In
have
desirable
the
sell¬
are
of only
thb past
been
when
.
con¬
selling
around
170%
of
book
value
with
dividend
yield
as
3%.
county
Co.
of
by
the
Bank
of
against
solicited
uninformed
persons
of
accounts
the
on
pre¬
tense
of .serving their, best inter¬
ests, when actually the firm sold
such persons "various securi¬
to
ties at prices far in excess of the
also
charged
derwriters
a
and
low
as
Their average yield is pres¬
that
Guaranty Un¬
withheld
market
on
prices
tomers
and
as
made
to
information
from
false
its
cus¬
represen¬
group of oil royal¬
clients, sold oil royal¬
a
ties not registered with the Com¬
mission, and carried
transactions
securities
on
otherwise
than
on
a
national securities
exchange. The
Commission also alleged that the
mails had been used in inducing
such
transactions.
The
held greater than usual
case
interest,
it
spokesman
since the
declared
was
for
the
charges
by
a
Commission,
of the type
that the proposed disclosure rule
are
of the Commission is
designed to
prevent.
ently 5.5%."
-v"
•••■
•
•
'
:
Brennan Is Buck Partner
.:*-'X.:;
Investors
Fund, Inc..
is out with an attractive six-page
folder, "Leverage In Action." In
addition to? stressing highlights of
the Fund, a nine-year record of
performance is given.
lock's
*
Persvective
deals
with
the
un¬
der the
exigencies of
recently
war.
published
a
dealer
to
letters
p**e
the
a
folder
letter from the
prospect.
provided
of the folder.
with
F.
Brennan,
Sample
copies
member :^di
Buck
& Co.,- 39 Broadway, New
City, members of the New
York Stock and Curb Exchanges.
York
Brennan
active
as
an
has
recently
been
individual floor brok¬
Prior thereto he
er.
was a
partner
in Stein, Brennan & Co..
—aaaon*"—
"Guns
Dividend Shares to be used in
connection with
John
the New York Stock Exchange has
become a,,partner in Richard J.
Mr.
*
domestic fats and oils situation
also
and
perpetrated
charged that Guaranty Un¬
ties sold its
Under
on
Witter &
It is
derwriters
tations
only other bid for the
submitted
"B 3,"
Funds,
Cus¬
Butter?" is the apt heading of
the discussion.
This sponsor has
September 22
the start of the year, brought the
net balance as of June 30 to the
Keystone
or
associates.
were
surplus
by
*
$500,000 Honolulu, Hawaii
a
of
are
todian
current
The August issue of Calvin Bul¬
mitted by Hvams. Glas & Carothers of New
Orleans,
return
15
headed bv Halsey, Stuart & Co.,
Inc., successful
bonds
stocks, and
to yield an
The three classifications
represented
$12,000,000 New Orleans, La.
Syndicate
frauds
customers.
cess
of
the
prevailing
market
prices therefor." The Commission
•Republic
<
leged
because of al¬
discount
near
$799,444.73 Minneapolis, Minn.
broker-dealer
as
should be revoked
prices which the registrant paid
fpr such securities, and far in ex¬
common
"S 2,"
:/;y; September 11
corporation
deter¬
40%
are
York,
the
to
registration of
income
8.6%.
the
Commission
mine whether, the
30%
of
previous
in
Exchange
$10,000." The list con¬
tains 30% income preferred stocks,
the
major' size
award
*
program for
also appended.
for
Guaranty
Underwriters,
Inc.,
Jacksonville, Fla., has been cited
for a hearing by the Securities and
The Service also
interesting discussion
The Aug. 14 issue of Keynotes
outlines a "balanced investment
(Ed. Note—Very few municipal
bond
an
.
come
bidder
for
runner-up
to'
are
$80,542,470. leav¬
for the period of
$27,671,140. This amount, together
ing
National
the importance of "velocity" in
stock selection.
y X
;
im-
more
over—short term issues
or
year
showed
of
Research
on
municipal offerings ($500,-
cluded),
'■'"'X-;
ending June 30 with
balance
net
&
upward in
as
issue
20
gets under way."
contains
Major Sales Scheduled
X.'^X.'
J.y'^XX
High Point
fiscal year
fjAug.
Securities
fore any extended down movement
credit list.
whose bid topped the
joint offer of Harriman Ripley & Co., Inc.,
and the First Boston Corporation.
The State of Illinois closed the
247
the
Improvement in
fairs
Illinois'
prices is confirmed
Manitobas.
Ontarios,. Quebecs, British Colum-
■fc
312,662.
At
The intermediate trend of stock
Albertas,
are
and
Arizona, 298,633; Arkansas, 4,future, s With
expenditures
for
592,738; California, 2,667,194; Co¬
lorado, 468.322; Idaho,
659,136; local improvements held to bare
Illinois, 5,091,364; Iowa, 6,164,344; necessities by the demands of
Kansas, 258,113;, Kentucky, 465,- war-time
policies, the prospect
270; Michigan, 8.978,386; Minneso¬
ta, 10,990,409; Missouri, 3,087,063; naturally is that for some time to
Montana, 372,661; Nebraska, 916,- come the amount of new issues
181; Nevada, 153,373; New Mexi¬
coming to* market will be small.)
co, 305,885; North Dakota,<1,376,4
•'Ymr'iT./Hg*
_x? ••••
v"m
.
September 1
041; Ohio, 7,729,267; Oklahoma, •»h'
nfi
197,646; Oregon-; 348,825?* South $485,000 Maryland (State of)
sh
Dakota, 676,472; Texas, 4,218,850; This certificate, offering, maturing in 1945
to 1954, is included here because of general
Utah, 202,058; Washington, 405,- reader interest.
State awarded long-term
709; Wisconsin, 761,203; Wyoming, certificates last February to Clark, Dodge
pared with
Calif. Free From
Saskatchewans
.
general
Warrant Debts
adoption of the plan
issue sold
Among the states and acreages
under drainage enterprise treat¬
ment, the bureau said, were:
;
-
•
Investment; Pompany Briefs
considerably since
Corp.'s
bias,
Nova
Scotias
and
New Investment Timing service.
Says
Brunswicks always have ranked the Service, "The indications are
built
that higher prices will be seen be¬
rather high on Canada's provincial
Total drainage investments in
38
have improved
drainage
added,
146,152 miles of open ditch, 55,734 miles of tile drains and
6,793
general and ■*; lands.
there
ac¬
Most
taxes
the
recently.
the^; bureau
enterprises,
other state—48%.
And
enterprises,
Census Bureau reported
In
those
widespread
by drainage enterprises.*
Mississippi's finances.
Comparing Mississippi's operation
alysis
ized
sales
more
problems during
find considerable
may
Illinois—is served by organ¬
miles
Surplus
Those who advocate
fiscal
and
To Be Sweetser Partner
; Robert A. Halket will become a
partner
in
Sweetser
&
Co.,
65
Broadway, New York City, mem¬
bers
of the New York
change,
as
of Sept. 3.
Stock Ex¬
THE COMMERCIAL & FINANCIAL CHRONICLE
714
Gains On
New York City
Securities
Visitors Bureau of the Commerce
fair profit.
York, Inc., on Aug. 19 released a
list "of 40 associations
that had
investment
handling the account, and have the results satisfactory
from the investor's standpoint, then to do business with a firm which
made
finally, because of lack of hotel or
transportation facilities, decided
to avail themselves of New York
kind
any
but
consistently lost
for
money
the
However, human nature being what it is, it is only logical that
if the inside market on "X"'Corporation today is quoted 20 bid, of¬
fered at 20% and the investment house is forced to put this* On their
accommodations
city they, had
originally selected. The list also
of
of
client.
superior
those
over
charge
no
the
confirmation and blatantly call the attention of the client to the fact
that the house paid 20*4 for the stock and is billing it to him at 21*4
originally —which represents a profit of 3.66%, or $75 on 100 shares—tho in^
scheduled" to meet here, but de¬ vestor's reaction would be that a New York, wire house would execute
cided to cancel their conventions.' this order for him on a commission basis and that his net cost would
In indicating this the Bureau said: be approximately $2,075 instead of $2,125 for 100 shares. 1
discloses 22 associations
,,
The wire houses do not explain nor does the
"The two lists revealed that the
consideration that each investment house has
expected out-of-town attendance
at the conventions which changed
their locations to New York City
would be 19,025 persons,
a
investor* take into
selected, approved* list
of securities, which in a great many cases they have specialized in for
and which they spend days, weeks and
years
oughly
while the
investigating the
individual
months in thor¬
even
securities
before
placing them
their approved list and who constantly keep in touch with devel¬
22 canceled conventions were ex¬
on
pected to have an out-of-town at¬
12,735. This leaves a
opments affecting the various companies dividend outlook, markets,
etc.—none of which the wire house has to do or is interested in do¬
gain in conventioners for New
York City of 6,290.
Figured On
the basis of $100, which is the
ing in connection with unlisted securities.
tendance of
net
we
feel that
the investment house is justified in making more than a brokerage
customers
in
delegate attending a convention in
New York City, a net financial
gain over loss has been made
Furthermore,
profit because the objective is to place the financial affairs of their
each
by
spent
amount
average
the
house
is necessary
The brokerage
the average turns over the customer's securities several
often as the investment house.
Although the unit cost of
on
times
of
in the best possible position and then do as little trading
account
as
as
to protect principal.
the transaction is smaller with the broker, the gross
$629,000."
least
profit averages at
much
owing to the rapidity of the turnover.
list C. N.
This business at the present time is staggering under a mul¬
-Nichols, Executive Director of the
Convention Bureau, pointed put tiplicity of reports, forms, records, etc., that must be kept to comply
with regulations already issued.
The additional records required
that
15
of
the 40 conventions
Under this proposed rule would just be an additional straw on the
transferring to New York City had
shoulders of a business which has only been able to survive by the
come
out of resorts and that 9
In
releasing;
the
out
expected
will be attracted here.
It
also
is
537
New
pointed
I
the
1942
bookings
to
£ate show
553 meetings scheduled for this
city. The increase is attributed to
availability
of hotel
facilities,
greater ease Of transportation in
and out of New York and the reg¬
ular
desire
natural
of
not
dollars
out by the
and. that
City
large block of
a
off-board by
persons
everywhere to see New York City.
have
reveal
to
that
to the
Office
Landis, Director of the
of Civilian Defense, pre¬
dicted
on
Aug. 13 an indefinite
delay in the production of stirrup
pumps for fighting fire bombs in
case
of air raids.
According to
house that the market price
drastically. The broker
making from one to: several
is
he
from
his
customer.
net profit to the
In
purchasing
ity will recover
of the large
In
block.
on
the average
and show
a
sooner
:
'
\
conclusion, we feel that if the National Association of Security
an all-out, last-ditch fight against proposed
Dealers does not make
Rule No. X-15C1-10,
which
the death sentence to the business
means
hopes and aspirations of thousands of conscientious, trained invest¬
ment
dealers
business
wasted.
as
all
over
whole
a
The time
this
and
it is not representative Of the
country,
that
dues
the
paid
such dealers
by
for weaseling acquiescence to
any
are
and all ideas
the
worries and responsibilities of
No
running
.
one
would hire
a
an
lost
lawyer who constantly
cases
for his
patients die from his inadequate efforts
and ability. On the Other hand,, a lawyer who wins his cases and a
doctor whose repute and ability are unquestioned, is worth practi¬
cally any fee that he charges. Why should an investment profes¬
sional man not be allowed compensation on a similar basis.
clients
nor
a
doctor whose
.
substitute for rubber used in hose.
said in part:
"The substitute was developed
at the request of the OCD when
it found last May that rubber hose
could not be obtained, but the
Army and Navy have requisi¬
The "Times" also
the
entire
supply because
of its usefulness in many
waterproof
tion.
It is difficult to
already
see
in effect, except
what his competitors
how the proposed rule can strengthen those
it requires
as
prices
are
and in
If
dealer to tell
a
some cases causes
close his cost price.
a
customer1;
him to dis¬
*
dealer in securities is required to state the prices of his com¬
petitors, should not every merchant and dealer be required to do the,•
,
same
a
and if
necessary
to disclose his cost price and profit? And should*
.not a lawyer be compelled to tell his client the best price hb has been
able to locate among other lawyers, for the same service or advice?v
Or
doctor tell his patient what other doctors would charge for an-
a
Office Visit
or
an
operation?
There is
difference, for the security'
no
dealer, the merchant, the doctor and the lawyer; each has something;
to sell. In every field there are a few high price and long profit boys,I
but in every field these are outnumbered a hundred to one, in my't
opinion, by .the. honest, sincere dealers, merchants, doctors or lawyers,
who
?
to
seek
It
sider
build
their
up
businesses
shooters.
square
by
a
reputation
for being-
|
to me that this proposed rule completely fails to con-,
understand certain phases .of over-the-counter dealing, par¬
appears
or
in smaller communities which have small issues of local4
ticularly
securities
that
that there
are
but
is
not quoted
one
the house of origination.
except
as.
market.
in
any
market for
Many firms do not .trade in these securities
they may have occasion to sell to the
not possible for that firm to
It is
Then, under this rule, it must tell
security within 60 days.
bought 50 shares of
customers
the 50
It often happens*
security which may be
newspaper.
certain
a
was
shares.
a
Let
us
get other bids and asks.
•
customer what it paid for the;
a
take
*
firm that is the1*
one
a case
where
on
May 1
a
dealer
certain stock at 49 and found that none of his"
interested in buying and that on June 15 he still had*
A
customer wants
bid
a
on
25 shares
more
and thq*
dealer has every legitimate reason for feeling that his bid of 40 wastoo
high,
pay
you
He drops his bid to 37V& but must tell his customer, "I will*
On May 1 I paid 40." The customer will be hard toconvince that he is being fairly treated. Investors may expect price'
37 H.
fluctuations in the securities listed on the New York Stock
but many
Exchange,'
of them simply
do uot understand why a local security,
should change in price particularly if the change is downward. It*
actually happens that a customer will sometimes say, "I sold you 10'
shares of this stock a year ago for 50.
pay
40 now."
I can't see why you will only •
When the dealer,tries to explain that he can't sell stock *
which
be owns for 50 and that he has some which he would be glad'
to sell for 42, it often is made clear to him that the customer does
forms of
and con¬
newspaper
simply
do
quotations and are not actively traded in by many dealers,
not understand the many complications that will arise
under this proposed rule. Legitimate dealing in such securities will
be greatly hampered, in my opinion and dealers may confine their
act5cities to such securities that are quoted in papers and
have active
trading."4'•>*'A
in
.
..
the
cases
of
active
securities,
the complications
The conscientious dealer
caused, by this proposed rule will be many.
would be compelled to call his competitors every
ascertain their bids and asks.
He could not make
until he had done
so.
Let
us
take
a
•
however,
case
of
a
day in order to J
or
confirm
a
bid
security that enjoyed
an
active market with several local dealers interested.
Dealer A "
investment business, might feel that a security was worth a bid of 40, for example, and :
Would be willing; to pay that,
lie calls other dealers and finds thatj
propounded by the Brain Trusters of the SEC, who have never had
In our opinion, it is a case of fight or die!—(From a Los Angeles,
• •/ "•"
■
•
' 'V
■/' '!;a"Times," he attrib¬ Calif., Dealer):''/' ■:
this to military demands for ::
:DEALER No.;21
plastic, polyvinl-butyral, a
If the National Association of Securities Dealers, Inc., is worthy
tioned
force rules and regulations against exorbitant profits and-
and
than the listed secur¬
from its decline immediately after the distribution
investor
the New York
the
.
the selection has been well made—-will absorb the load
Delayed
James M.
uted
who have
in
the dealer is required to keep books and records which are subject:
to examination and which set out the profit made on every transac-:
not believe him, for the customer having once received 50 has this
selling
profit price fixed in his mind as a proper and fair one. Those who have not
had wide experience in the smaller local securities that have no
dealer added, the appreciation in the price of the security-—if
share
a
is past.
Stirrup Pumps
men
listed security is offered to
a
brokerage
a
one who values long profits more than reputation* The rule,J
proposed, provides the method for circumvention. There are al¬
over-the-counter securities in small blocks with a reasonable
others
during 1941 there
conventions
held in
York
public
does
that
Bureau
were
is
of
almost immediately declines—in some cases,
Government has taken over many
it
exception when
the
compelled to move. To date, New
City has secured 3 of the
conventions that had been sched¬
uled for Atlantic City where the
York
and
greatest efforts
Furthermore, it has been our observation that practically with¬
of crowded hotel conditions were
hotels
the
and
economies
spent their lives learning their profession.
but because
Washington,
in
held
drastic
most
originally scheduled to be
were
as
as
ready
In the long run, an investor would far rather have an
house receive adequate remuneration for their expense
and efforts in
originally intended to hold their
conventions
in other cities but
regu¬
This proposed regulation can be evaded without much diffi-1
culty by
(Continued from page 707)
Industry Association of New
City's
lations.
Should SEC Insist On Bid-Asked Rule
The New York Convention and
arid
business he is skillful at evading and circumventing laws and
Industry To Wage Bitter Fight
Convention Relocations
■
Thursday, August 27, 1942
.
the
best
bid
they offer is 39.
Dealer A
decide that he was5
may
oyer optimistic and will drop his bid to 39, or, if he still wants to be*
top, to 3914.
The low bid, will tend to, become the general bid and'
the high ask will become the prevailing ask. Real competition will
be hindered and price fixing will be encouraged by the workings of:
this proposed rule.
That, at least, is my belief.
The customer will ?
not be benefited and he will know that dealers have compared notes*
and,
indeed, have been compelled to compare notes by this rule
Which While designed to protect him is in reality injuring him by
destroying, competitive bidding.
;
;
If the dealer knew that a security was traded in in Indianapolis
•
*
organization's duty to fight to the limit of its and Chicago he would be compelled to get the best bid and ask
.against the SEC Proposed Rule X-15-C-1-10. For price in both markets in order to give his customer the information
of its keep, it is this
ability and
resources
what purpose was the NASD
established anyhow.
True members did required under this rule.
weak letter from the Association requesting (and 1
quote) "The Executive Committee asks each member to submit to
the Association any and all suggestions and criticisms of this Pro¬
posed Rule which the member feels will be helpful to the Associa¬
tion's response to the Commission's invitation."
receive
a
very
An invitation to what?
Why
an
invitation to the demise of the
market
as
Greater activity in the security in one
compared to the other migh result in higher prices which
would put the dealers in the
less active market in
an
entirely wrong
light in
a customer's eyes.
But the customer must be told the best
bid and ask and if Chicago's ask were less than that prevailing in
Indianapolis, Indianapolis would be compelled to drop its price and,
likewise its bid, so as to conform to Chicago.
garments
right of free enterprise as applied to the securities business. All the
So many complications, so many difficulties can arise under this
tainers, according to a statement provisions of Rule X-15-C-1-10 are Covered under
the^self-governing rale that I frankly do not see how it can be made practicably Work¬
by Mr. Landis issued at the Sec¬ provisions embodied in the Certificate of Incorporation !6f the Na¬
able.
Even assuming that it call eliminate, "long profits" in'the
ond (N. Y.)}'Regional Headquar-'
tional Association Of Securities Dealers. One hundred percent of the
minority* of cases where such profits are made, it will, I believe7 and
ters of the OCD.
„•
' ;
>
| unlisted members of the NASD certainly oppose this rule.'
as
I have.stated,■ tend to eliminate competitive bidding and to
•"
'Every possible source is being
The National Association of Securities Dealers cannot afford to encourage price fixing to the end thai the low bid and the high ask
explored
to
develop
another lose this fight. I can think of no other reason for its existence.—' among dealers becomes the prevailing bid and ask. Thus the effect
satisfactory stirrup pump hose,' (From a New York
of this rule will not be generally beneficial to investors, but, and
City Dealer)
Mr. Landis said.
'The military
this is my sincere belief, generally harmful in more ways than, one.
DEALER No. 22
uses of the plastic were discovered
It may even, in cases of certain loCal securities, have a tendency to
Montgomery S. Lewis, President 6f the State National Securities destroy markets that noW exist.
only recently.
In fact, bids on
'
2,258,000 pumps and 22,580,000 Corp., of Indianapolis, Ind., furnishes us with the following copy of a
I hope you will see from this discussion that I have made an
letter written by Jiim to the SEC:
feet of hose had been opened and
■
honest effort to study this proposed rule and to analyze it and that I
the Defense Supplies Corporation
Re: Proposed Rule X-15C1-10
have tried to pass on to you, as dispassionately as possible, reasons
was ready to let contracts when
I have given a great deal of study to the provisions of the above
why I believe it to be unworkable and harmful to investors as well
we were informed Aug. 4 that pri¬
rule in a sincere effort to try to determine its purpose and its effect
as to dealers.
I have not dwelt on the fact that I do not see how it
ority for hose previously assured both on the business of the over-the-counter dealer in securities and
can be
enforced, or how, if that be possible, it can do more to.
us haa been denied.
If the Army on the individual investor.
*
v
1
eliminate exorbitant profits than can now be done under regulations
and Navy require this material
The purpose of this proposed rule is not clear, but it would seem already in effect.
Nor have I more than mentioned the fact that the
for military purposes, then ob¬
to be an attempt to prevent large or extraordinary profits being made
rule can be readily circumvented or evaded by one determined to
viously it is up to civilians to step by dealers. The
difficulty of determining what is an exorbitant profit do so.
And the one at whom this rule is probably aimed, the longaside.
The needs of our armed
is very great.
Many elements must be weighed and considered and profit boy, will be the one who will use the way provided by the
forces must come first.
We are there is no need to outline or discuss them here. I firmly believe, Act itself to evade and
get around it.
In all earnestness and sincerity I urge that this rule be not made
exerting the utmost effort to find however, that there are very few security dealers who endeavor, to
.
.
.
,
:•
ways
to
meet civilian needs for
take
advantage
underbids.
protective
equipment
interfering
with
mands.' "
of
their
customers
by
consistent
over-charges
or
The vast majority of dealers are sincerely trying to give a
without "square deal" and
they know that they cannot expect to stay in busi¬
military
de¬ ness unless they do so. It is rare for the "gyp" dealer in any busines"
to stay in business for any considerable period of time. But while in
effective.
Respectfully
STATE NATIONAL
yours,
SECURITIES CORPORATION
(Indianapolis, Ind.)
MONTGOMERY
S.
LEWIS,
President
Volume 156
Number 4102
THE COMMERCIAL & FINANCIAL
CHRONICLE
,
No. 23
have
Walter E. Devlin, Vice-President of Conrad, Bruce &
Co., Los
Angeles, Calif., sent the following letter to the Investment Bankers
Association, Chicago, Illinois:
1
I
have
received
letter
a
from the President of
our
Mr, John S. Fleek, enclosing the proposed SEC rule
in over-the-counter transactions.
both of these
seen
stock.
•
/'
-
things happen to
I
probably, along with practically all other investment dealers
country, feel that this proposed rule, if adopted, would about
has
in
the
unlisted
securities
justified because
are
At
transaction
was
completed.
As far
as
1.
I know, there is no other line
divulge his costs; why should
have
not
done
industry
so
Exchanges.
the
necessary
to
determine
as
If
amount of
the
order
on
listed
a
^investment dealer.
the
orders
The
placed
tomers who
security
it
is
that
and
study
of
to
Exchange
the; investment
customer.
dealers.
he
involved
make
larger profit.
it
cus¬
is
reverse
unlisted
research
of
.
and
an
,the
suggested would probably
the investment dealers.
concerned, but to adopt
Beer
Jac
r
WALTER
Note;
-
Copy
of
letter
sent
was
Securities Dealers, Incorporated.
to
E.
DEVLIN,
the
v
Association
D.
Jeff
securities in the
clients
and
for
i'
<
St.
;.
D.
J. Villere
&
actual
Widener
is able
rule
to
providing
margins between the
over-the-counter
"Along with his message, Mr.
Roosevelt sent to Congress an in¬
ventory of the Widener collection
and copies of his
correspondence
with
asked
cannot
the
great
is
prices to
to
deal
our
in
hardly
stock, which
buy
let
us
cite
practically applicable.
be
we
-
few who
shall
the
call
accomplish its sale.
extent
such
"A."
We
specialize
As
We continually not
actual market, being willing to buy at
only
we
orders
make
the
in
are
"Mr. Widener's offer
in
analysts,
to
Government
and the people by
the late Andrew W.
Mellon, where
the famous Mellon and Kress art
our
but
to
Sanford
bid price and willing
our
quotations on
under
a point,
In other,markets, it is possible to; obtain
stock—the bid being about one-half point
this
;
same
When
tries;to "hit" these bids, however, it is
usually disclosed that the quoter has no actual buying orders in the
our
own.
one
stock and is merely after a
other
hand,
shopping position, if interested at all.
attempts to buy stock from these
dealers
offering price, usually divulges the fact that they have
sale.
Thus,
market
consistent
nominal
our
ourselves,
we,
market
actual
for
quote
the
may
stock.
be
said
to
Question:
be
If
the
the
true
makers
is
101/2 bid—offered at. 11%,
what
Wolfe
11^4
would be used in disclosing to the customer the actual bid and asked
prices?
As
matter
of policy, we
what profits we are
making
compelled to
or
{position in
do
so
not.
on
almost invariably tell
our
our
side
so
all to
securities they buy from
us,
whether
a
long
period of time, must sell occasionally at a
The customer would never object to that.
On the other hand,
a
stock
over a
judicious purchase at the right time might enable
months
to
realize
what would
one
after
lapse
a
of
several
on
the "A" stock because of changed general market conditions.
look
like
an
unfair
determination
selection
of
to
paintings
father
middle alley.
Gone will be the
investigators sent out to industrial
incur
thoroughly scrutinizing plants with the object of
medium-sized companies
subscribed capital,
be
forced
new
to
go
ill which might conceivably
an
much
time
and
a
a
museum.
lection
BUCKNER
E.
spent
"It's addition to the Mellon col¬
and the Kress collection
WHEELER
with them also, the fact-finding statistical services
nation back many
would
the
markets
in the National
Gallery would
be most appropriate.
Indeed, it is
for the very
purpose of encourag¬
ing
such
gifts
that
Gallery of Art
was
the
National-
established at
the seat of Government."
Gifts To Paralysis Fund
A total of
in
$3,908,310
was
the 1942 campaign to
fantile
for
paralysis,' the
the
Celebration
22 to Basil
raised
fight in¬
Committee
of
the
ident's Birthday reported
on
Pres¬
Aug.
O'Connor, President of
National
Foundation
for
In¬
fantile Paralysis.
The net amount
broke
all
records
of
previous
years.
New
York
State
led all
others with contributions of
$663y
646.
::
,
; r'-^t
The Foundation receives half of
..
generations.
become
As
thinner
houses
and
fell by the
eventually
way¬
stagnant—
come
into his glory.
With¬
the
competition of
reliable
advisers,
it
is
entirely
conceivable
laboratory research,
vide epidemic
an
out
...
the proceeds, to be used in clinical
and
detriment of unlisted security holders.
the
to pro¬
aid and to conduct
educational program to combat
disease, while the other half of
this unscrupulous dealer will have at his mercy the
very people the
the funds remains with the State
Commission
and county
should
protect.
Instead of penalizing the great majority of honest and conscien¬
tious dealers for the sins of the few, we suggest that policing
powers
be
delegated
to
the
National
Security Dealers' Association for the
purpose
of preventing sales of securities to the public at prices which
bear
reasonable relation to existing market prices.
no
Very truly
profit
We
B.
the
the
Perhaps then the slick swindler will
customers
One who consistently maintains
Widener of Philadel¬
their
.
set
,
a
down
So would the
without publicly
the gener¬
on
objects of art available
public.
Mr. Widener and
the
the
financing.
President
unusually choice collection. It is
magnificent donation, worthy of
group:
Ultimately, the few dealers remaining would be loath to
the
figures
gone
display."
the
money to gather and preserve this
R.
Woolfolk, Huggins & Shober
statisticians,
the expense of
and
of
the above'"A" stock 10 bid—offered at
market
On
their
at
stock for
no
only
are now on
message
his
together with their staffs.
asked price-—the spread being from one-half to
depending en conditions.
his
and other
Woolfolk
of
the
plants, and
■
to sell at
one
dated
was
Robert
Commerce
ten-pins when slammed
the
hand
of
that
the terms of the gift reached him.
The collection will be housed in
the Marble Gallery donated to the
"I need not dwell
the oldest businesses in our
republic.
To the retail
purchaser, under the designed plan, is disclosed the wholesale market
of the security traded.
Instead of hitting the racketeer, the ruling
strikes and levels the reputable dealer as a
bowling ball does a set of
local
of
nominal
a
knell
;
nation, and
osity of the donor and his father,
lation of the SEC, that is, rule X-15CI-10.
To me and to every other
security dealer with whom I have discussed the rule, it is the death
rule
a
one
of the
gift will make it possible for the
people of the United States to en¬
joy the rich heritage of culture
which we are striving to
preserve.'
•
Co.
L. D.
the
knowing
said in part:
Sherman of L. D. Sherman &
Co., New York City, sent the
following letter to the National Association of Securities Dealers:
It is with profound regret that I read the
latest proposed legis¬
that
derived
from
Whitney National Bank
Smart
of
he
that the works would become the
property
In
DEALER No. 26
securities
where
case
a
specialists,
outright before having
stock
narrow
'V-^
experience
own
satisfaction
Wheeler
Bank
The Chief
that
he had advised Mr. Widener: 'Your
now
have
to
i^
From
to
an
not
such
said
collections
1
ERROL
If any practical application
afford
Joseph Widener.
Executive
their
&
the collection.
posed, the Pennsylvania State tax
will apply, and it became neces¬
sary to ask Congress to pay it.
make
1
ultimate effect
and
dealers
at all.'
would
the
bid
receive
Co.
&
father,
Federal tax will be im¬
no
&
&
empow¬
of his
Widener, with
stipulation that any resulting
taxes
be
met
by
the museum
Weil
White, Hattier
was
gift of the collec¬
a
the late Peter A. B.
in
Labouisse
the
to
the
phia,
&
$3,900,000,
cost
was several times
the will
Peter A. B.
Co.
about
Widener
under
great
seem
family
Arnold
National
V-'-v.'"-
accomplish that, then it would
the
&
Loeb
collec¬
greatest
sum.
tion
JOHN B. SHOBER
merit—always
loss.
which
•.
M.
of the
and
at
although
Roy M. Watson
M.
'the
present value
Weil
Signed for the
Exchange Commission.
probably
private art collection in existence
today.' He informed Congress that
the Treasury had appraised the
and
to
Scharff & Jones, Inc.
A. M. Smith-Wood Co.
^
Feibleman
was
yesterday, and Mr. Roosevelt sent
his reply, along with his
message
to Congress, within 24 hours after
wholly
gains
:
its
major
Lambremont & Co.
Edward D. Rapier
Nusloch Baudean & Smith
paying
5
of
represented at the meeting:
No. 24
-unduly low prices for those purchased.
the
are
Pool
Dunbar
Morphy
of
The intent of the proposed rule is apparently to prevent securities
dealers from charging inordinate prices for securities sold, or
a
their
Co., Warren, Pa., wrote, to
D., Philadelphia, Pa., as follows:
have carefully examined proposed Rule X-15C1-10 of the
Securities &
;
control
S.
A.
We
an
■
suffer
there
N.
the
.
further
unfortunately,
H. R. McClure of Harold McClure &
\
1v■
:'•
expressed themselves as
constructive activities of the SEC
protection for
'
DEALER
the
Ducourneau
Ernest
Vice-President
National
-
,
were
in
■
reported
Washington
"Mr. Roosevelt said the
tion
Lamar, Kingston
-'V
CONRAD, BRUCE & CO., Los Angeles, Calif.
f; -;
.
;•
any
following
fL'jVi
Press
advices of Aug. 20:
Hyams, Glas & Carothers
Kingsbury & Alvis
Kohlmeyer, Newburger & Co.
•
truly,
P.
T.
•
.v.,Yours very
whom,
Co.
&
W.
as
the annihilation of practically all of
mean
of
Couturier & Derbes
ruling such
a
in the
interest.
all of whom
a
Bankers
out to the satisfaction of all
confidence
dealers
sure
Investment
concentrate
better
Associated
selected to
They do not feel, however, that the
proposed rule
advantages in* these directions.
Signed for, and in behalf of, the following New Orleans
*.
that if there will be close cooperation between
Association, the National Security Dealers
'Association and the SEC, that this particular problem can be worked
}
to
The
While
will affprd any
V
t
quotations.
country,
further
lead
public
work
carry
customers
willing to cooperate in
of
to'
analytical
transaction to
v
I am quite
true
securities
still
will
long period of time and the cost of
a
for this type
necessary
thus
have
are
fair
financial centres of the country.
r ;
»The dealers of New Orleans
an
from
sells
! obtaining the order, plus the cost of
•
of
about
and
would take unfair advantage of the proposed rule.
In summary, the unanimous and
considered opinion of the group
was that the application of the
proposed rule would not be in the
public interest.
It would deprive the private
investor, Whose inter¬
ests the SEC is quite properly
trying to protect, from the advantages
of free and open market for his
securities.
It would deprive the
banks holding such securities as collateral
of the protection of an
active market.
It would prevent the fair
appraisal of estates and
seriously hamper the fair assessment of taxes.
It would tend to
eliminate the honest dealers who together
provide the safeguard and
protection of thousands of investors throughout the
large percentage of
houses
Practically the
When
investor; it is usually held for
a
that
In other words, they
in and out of the market.
are
transactions per
-many
for this is that
National
than
a
"Joseph
many, and who
the
less
unscrupulous
appropriation
ered to make
brings
the
been
the National Gallery
Washington and asked
transfer.
restrictions placed upon
confusion
that
has
of $195,000
Pennsylvania State tax
would
be
imposed on, the
that
because of contrac¬
still
from
our
rendered
which
present
an
informed
Aug. 20
collection
on
in
meet
that
a
6. The relationship of the local
dealer to his client, as
recognized
by Court ruling to be similar to professional
confidence, would be
disturbed and harmed, and the dealers would
the
are
force
The
to
Gallery
Roosevelt
art
to
Art
the
increased still more, and tend to
undermine their
stability of their investments.
H
research
values
is considerably
reason
with
the
perplexity on the part of many
investors caused by the
multiplicity of prospectuses, hypothecation
notices, agent-principal notices and other
legal forms would be
investor.^ I think it is generally agreed that the cost of obtaining
an
A.,
injured
5.
thought of the
;SEC that they want the over-the-counter business handled with the
,same amount of profit as listed securities, it would seem that they
•
B.
While
impelling
definitely known that the investment dealer
could not-survive on the basis of
competing with National Exchange
brokers on the basis of
charging the same commissions that are
National
opposed for
By severely restricting markets, the door would be
opened to
wide and irregular manipulation of
markets by selfish interests who
would not be restricted, as at
present, by competition, which is the
course,
the
I.
was
4.
have been somewhat unethical in their
practices.
on
the
follows:
genuine good faith activity.
forced to retire simply because
small percentage of the total transactions have carried
profits
that the SEC would term unethical?
Needless to say that security
dealers perform a very important function in our
economy and that
♦the investors throughout the
country would fare badly, if we are
forced out of business simply because a
very small number of dealers
charged
of
X-I5C1-10,
Local securities would suffer market
wise
tion of dealer interest due to
.penalties and
reason that the SEC is
proposing such a rule
thought that they want to protect the investor.
If they
of
Buckner,
as
3.
very
is,
Errol
,
.security dealers of this country be
it
and
B.
In many cases real markets do not
exist and the public would
because of the reluctance of honorable
dealers to give
reliable quotations.
that have taken place within the same
time.
I frankly believe that
the percentage would be
extremely low.
In other words, will all the
*
on
2.
be
on
feel that the investor needs
protection, it must be that they have had
complaints.
I wonder how many in number of complaints that
.the SEC have had over a period that
they have been in business as
.compared with the total number of over-the-counter transactions
,
of
unfair practices may still
possibly exist in isolated
proposal does not provide the proper method of
correcting
them.
The application of the rule would be
very likely to put 3,000
honest dealers out of business in order to
chastise a small handful
who could be penalized, and otherwise
supervised through routine
examinations by the SEC staff.
some
a
NASD,
rule of the SEC, entitled
Congress
offered
cases, the
Probably the main
is with the
the
number of reasons, but
principally
the part of many buyers in retail stores if the retailers
were required
to give to the customer the
wholesale price or their cost before the
of business that
requires the dealer to
it be necessary in our business?
of
new
For National
President
for
M.
Wheeler,
To Secure Art Collection
Widener
COMPANY
open meeting
of the dealers held in New Orleans
5th, called on the invitation of John B. Shober and
proposed
of
business, he would find that there probably would be hesitancy
&
an
August
the service that he renders to the investor.
The answer, of course, to
this would be, that if the investor
appreciated the service he wouldn't
hesitate to know the amount that he was
paying for it; in other words,
the profit involved in the transaction.
This I know, of course, is a
pretty hard one to get around, however, if one examines other lines
of
yours,
McCLURE
DEALER No. 25
bring out in this letter that the profits that the honest invest¬
dealer
dealing in "A"
our
,
Cordially
HAROLD
eliminate the activities of this branch of the
security business.
As
understand it, this rule has been talked of as an "equalization"
method.
In other words, it is undoubtedly the
thought of the SEC
to endeavor to have the over-the-counter
business conducted on the
same
profit basis as securities listed on the National Exchange.
I
ment
in
us
rule.
association,
I
-could
i
Perhaps the formulators of Rule X-15C1-10 have in
mind some
special rulings to take care of such cases as
are above cited.
In that
event, we would be inclined to favor the adoption of the
disclosures
in the
k
.?■•
-
„
market price
on
715
f
•
DEALER
-T.'v,..
L.
Celebration of President Roose¬
velt's 60th
fit
yours,
D.
chapters of the Foun¬
dation, to provide direct medical
to patients.
The ex¬
penses of the Committee in carry¬
ing on the program were $207,889.
assistance
SHERMAN
of
the
paralysis,
birthday, for the bene¬
fight against infantile
was
reported
in
columns of Feb. 5, page 560.
these
Thursday, August 27, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
716
'
y
Tomorrow's Markets
Propose Tax Seductions To Aid Those
Walter Whyte
Meeting "Abnormal Fixed Commitments" Says
Proposals designed for the relief of debt burdened corporations
and individuals
were
MOVIES
THE
"Somewhere I'll
last Gable picture for
Find You" (MGM), is the
it won't stop men who see it from (1) gritting their
teeth:with envy and (2) longing for the life of newspapermen who
haveisuch fun and meet such interesting people; or make the ladies
the duration but
Gable in their lives.
who knows all the
answers, women as well as foreign intrigue. Both Gable and Robert
Sterling, brothers, and ace - foreign correspondents,. arrive from
abroad, Gable, to tell his boss off, and Sterling, to marry Lana Turner,
stop sighing soulfully wishing they too had a
For Gable is again the gayyoung Lothario
of the Foprth Estate. Up to now Gable and the
haven't met, jbut when they do the kid brother
is left out in the cold. Miss Turner and Gable take one look at each
othdr and bang-b°ang, the fireworks start.
From then on it's one
clinch after another.
Don't get the: wrong idea, however. Gable
really doesn't want her. He's just saving his kid brother from her.
So to help mend her broken heart she takes an assignment to IndoChina where she promptly loses herself. So the brothers put on the
Stanley-Dr. Livingston act, go hunting for her, find her, and then
they all start for Manila. Then it's December 7. From there on it's
no
longer a burning story of love among uninhibited newspaper
people. It becomes an exciting drama as seen through the eyes of
the boys trapped on Corregidor and in Bataan. The love life of the
Gables, Turners, et al, becomes unimportant in the face of the battle
our boys put up against the Japs.
If nothing else in "Somewhere I'll
Find You" matters the exciting scenes toward the close make up for
it. Directed by Wesley Ruggles.
•
'L '! : f : - V
who is also a member
blonde Miss Turner
-
,
It reached its peak
news of the Dieppe
Commando
foray. But de¬
meeting "abnormal fixed commitments,"
spite the various interpreta¬
mort-^
probably thrilled to "London Can Take It" and to the other
documentary movies which have come out since the war. But if you
want to see one that will lift you out of your chair burning to do
something, to join in, to help, then don't.fail to see "Moscow Fights
Back."
The photography is not up to Hollywood standards, t The
characters are not Hollywood actors posing theatrically.
For one
fire so it can't be a cinematic
masterpiece. For another, a man fighting for his country, his home,
his family, has no time to make grand gestures in front of a camera.
The impact of "Moscow Fights Back" is terrific. You are part of the
Red Army as it moves in and recaptures,Russian village after village
last December when the Nazis were driven back from Moscow. You
are with then as they charge in tanks, on horses and on foot.
You are
right next to a tank that receives a direct hit. You see village after
village not as a part of a Fitzpatrick technicolor travelogue but as a
part of an avenging people who catch Nazis.
You are right in front
as skulking Nazis are flushed from under porches.
You see the Nazi
handiwork. The innocent civilians, old women, babies and old men
lying in the snow in tortured poses—dead. You see. girls and boys
swinging from a gallows. It's a picture of Nazi horror you won't soon
forget. When men fall in the field they don't make, pretty sights.
They are hit. They are dying. Nothing like it has yet come out of
this war. If you want to see the raw untouched results of Nazi,bru¬
tality then by all means see "Moscow Fights Back" now playing in
New York at the Globe. The commentary, delivered by Edward G.
picture was taken under
the
Robinson, is crisp and convincing.
AROUND
THE
j
1
-
part of his outlay both in
such as debt repayment,
and insurance premiums,
buying war bonds, the
Committee was told by Randolph
in
and
Paul
the cost of this
out¬
of 15% of an in-
.
.
.
.
.
t
.
read
"1*1
f
.
.
"This is
an¬
attacks
\
''y
who
ers
In part the
much
contribute
can
the
by
fixed
rates,
surtax
"The
struggle is hard, but the
teachers can help not only the
children
but the people of
the
45%, should be raised to
House at
with
the * House excessprofits rate of 90% retained. He
suggested two kinds of reserves
on
which corporations would be
allowed to draw after the war:
55%,
1.
community to understand the is¬
surtaxes
well
as
excess-profits taxes.
tories, 'and
to
quired
to
cerns
;
to
credits
a
Ways
announced
thau
all
resisted
had
state:
current
:Jj, ■'
; '
The advices
.7
-
"During the month of July, the
closed 30 cases involving
received
and
workers
82,758
76
workers.
As of July 31,, the Board had re¬
184,720
involving
cases
ceived
Miss
:,'v'
fail
;v
writing about the Penthouse Club I unwittingly overlooked
Thomas, the young lady who knows-all-sees-all and
Frances
to
August
>
to Board
action, 14
closed by
were
agreement through mediation, one
by voluntary arbitration, and 12
by Board decision.
One was re¬
turned to the Secretary of Labor,
arid one was a jurisdictional dis¬
pute
for
month.
sales
its
third
the
*
:
;
•*;
straight
-
•
as a lady can tell. Miss Thomas, is a palm reader
"You
will
have
to
ask
the
hand, shines a flashlight on it, thinks a while and American public," Mr. Morgenlets you have it. She comes closer to the facts than a Dun & Brad4hau said when he, wa§, asked the
street report. Embarrassingly close. As she read my wife's palm, a
Reasons for this failure. V!
lady who./s a sceptic, froip faway back, T&it back and smirked at my
He
added, howeVeri, that1'the
spouse's amazement. But when my turn came it was something else.
tells-all,
who
For
or as
takes
much
,1'm in the dog house. My wife, she won't speak to me.
Serves me right. Next time I have a hand-holding session with the
now
astute
Miss
Frances
Thomas
system 'wotild be con¬
tinued "for the time being."
voluntary
to it my
see
all,
The Penthouse Club
30 CENTRAL PARK
SOUTH
Adjoining The Plaza
this
wife stays home. After
friend
best
critic stuff
,
' l'::
1
■'
a
unique restaurant in
beautiful location,
overlooking
Central Park to the north.
.
„■■■
Serving
best
food,
skilfuUy
Entertainment after 11 P. M.
Telephone PLaza 3-6910
,
.1
,
car¬
■
■
CHICAGO,
ment
Acquires
ILL. —The
counselor firm
The
savings bonds
have been insignificant
amount1-
War
production Board
on
ufacturers to use a larger quantity
in
civilian
fabrics.
Previously,
was
being
conserved
for
military use has
developed as rapidly as an¬
the Army but its
R.
not
ticipated, it was explained. Present
in volume
either*,'with
compared
outstanding
As compared
•
total
the
with
or
bonds
to
slightly
j
$7,550,000,000
bonds
un¬
K)
of
sold, through
E,
F
May 1, 1941, 98.77% are still held
by
the
dividual
more
than 20,000,000
Americans
who
Co., 105 West Adams
to
in¬
bought
always
time,
in
mind.;
v"ti:.
4s
.
4«
*
Y., Martinsville, Virginia:
is
acting about as well*as
market, perhaps a
little better.
My advice of where
the rest of the
to
stop the stock which appeared
applies.
in last week's column still
Incidentally
date
One Day
;■
"■
4s
More next
7
time
way
you
Nearer Victory."
r
[The
the
like
I
letter "August 18, 1942
your
views
do
not
coincide
Chronicle.
4s ■/
:V 4s
Thursday.* r>l
—Walter
Whyte.
expressed
in
necessarily at
with
They
those
this
any
of
the
presented
those of.the author only.]
are
Jjtii
SUJ
hi
July,
1942, since they first went on sale
in
positions
keeping critical levels (stops)
irticle
,
the
G
of
July, the redemp¬
amounted
der 3%.
Of
in
sale
the
LAMBORN & CO.
99
WALL
STREET
NEW YORK CITY
them, the Treasury reports.
For all series of United States
19,000,000 pounds
and an additional 8,000,000 pounds,
savings bonds, A through G, in¬
Street, announces the acquisition will be shorn soon from the An¬
cluding the old "baby bonds" re¬
of the clientele of Associated Bank gora goats in Texas.
Before the
Counsel of Milwaukee. The latter war about 65% of all mohair used: demptions in July totaled $25,500,in the United States was turned
000, or 23/100ths of 1% of the
firm was conducted by the late
into pile fabric for automobile up¬
$11,077,800,000 (redemption value)
Egbert A. Brown who was well
holstery but, since autos are not
of all savings bonds outstanding
known in banking circles through¬ being manufactured, this market
on July 31.
is now lost.
out the State of Wisconsin.
&
time
from
with the receipt
from
$909,900,000
and
k
the stocks recommended here
month-Py-mont^pales.";
tions
Aug. 13 released mojbair from the
restrictions of the wool conserva¬
mohair
invest¬
of Ralph
Mohair Unrestricted
tion order so as to encourage man¬
Wis. In v. Counsel Firm
Fairchild
prepared.
worst
sometimes be
can
ried too far.
•Si
and
R. R. Fairchild Co.
most
of war
an¬
"re¬
that
14
Aug.
on
demptions
war
A
Small
Treasury*, .Department
nounced
I'll
c
their
maintain
Crane
War Bond Redeeming
of
its
reassert
;
lowers of this column should
J. W.
.
your
will
market
the
basic trend.
bers of the Board."
The
think the de¬
far. The
question of course is time.
How long will it go down and
how long will it stay, there be¬
fore it turns up again? That's
something I can't answer. But
based on past and present
performances I hazard ' an
opinion that within ten days
by the Labor Mem¬
settled
January.
would
quota in
on
market
recent
Meanwhile readers and fol¬
closed last month,
cases
closed by agreement prior
one was
but based
more
and
total of 347 cases involv¬
a
"Of the
the
$12,000,000,000 during the
fiscal year, should be con¬
attain
;,v
*
will go very
cline
ing 2,093,164 employees.
Morgensuch pro¬
tinued at least until next
cases
Board
posals, and had insisted that vol¬
untary sales of war bonds, which
had been expected to bring in a
total of
148,
Board,
that the
involving
7
Aug;
on
Order, and .July 31.
to stimulate
concessions.
Several members of the Senate
Committee have contended from
for
;V
*
I don't
action
of
827,386 workers between Jan. 12,
when it wak created by Executive
bond sales by tax
expected
year.
■'».
;C;;
*
down still
:"v
■■
Labor
War
Board closed
Means
and
National
the
proposals
the
"'V
■■
William H. Davis, Chairman
Committee, and interest centered
upon
■■
NWLB Closed 148 Cases
/
.
Moscow.'
per¬
are
held' when
were
they were only 12 miles from
present
system of post-war
the
group
Nazis
the
great service to
a
making."
had already rec¬
The Treasury
a
from inven¬
losses
ciency of before the war..
i
as
Whether or not Stalin¬
grad will fall, I don't know. I
recall that last fall, however,
space.
Considering the news the
lowed to pay the cost of this war market should have plenty to
in neglect or serious loss of edu¬
worry it.
Yet it does not act
cational opportunity:' I know the
True, it's
teachers will find deep satisfac¬ unduly disturbed.
down and will probably go
tion in the contribution they are
declared that the Treasury
v
tack and the Russians are still
their
country. Children must not be al¬
similar charges .re¬
restore business con¬
their
operating
effi¬
ommended
.
forming
as
ing of 15%
of a corporation's
excess-profits net income, which
would be held by the Treasury in
trust to meet outlays for deferred
maintenance,
and
courage
"Teachers
"general reserve" consist¬
A
2.
why they must
high
the hardships involved.
morale
credit of 12% of
collected, including nor¬
and
mal
with
endure
A post-war
all taxes
involved and
sues
of
•
are
Jap counter-at¬
a
to
Yesterday, however, the Secretary
In
Solomons
the
purposespear directly fighting off
Our
to be over.
seem
-
and
and
for reservations.
goes
in
forces
upon winning the war and estab¬
lishing a lasting peace. Your con¬
vention will bring together teach¬
reduction in taxable in¬
advices to the
a
comes.
table, to the lobby with its "convenience" it's redolent of the Paris current fiscal
that used to be.
For dinner ($2.50) the place is jammed with inter¬
Until now " Secretary
English, and G. Ray Terrell, magician. While giving the effect
size the place is really small so it would be wise to phone ahead
to press the
news is no longer good.
For
the time being United Nations
Gary, Ind., on
''
4c
*
*
this
As
time for conventions
no
through previous
zones.
being driven back in the Cau¬
casus.
The. biggest battle of
these two ends. I hope their delib¬ our times is now going on be¬
"Times" continued:
erations will aid the membership
fore Stalingrad.
In the next
In his recommendations for the of the American Federation of
few days this battle will gain
relief of corporations, Mr. Paul
Teachers to see more clearly its
more
and more newspaper
proposed that c combined normal mission in this war. .;
'
large
martre, the main dining room with its fragrant field flowers on each $53,000,000,000
there is entertainment. Unfortunately I didn't, stay long
enough to hear it. I'm familiar, however, with the ability of the
guitar singing team of Rasha & Mirko well enough to recommend it.
The star of the supper program is Luba Malina, who is also featured
in "Priorities of 1942." Then there is Gabrielle, who sings in French
to pay
AV»
Federation's 26th
unless their
(3 E. 52nd) is one of the few New York res¬ the beginning that such a system
looks like something out of pre-war Paris. Arthur of "induced savings," or perhaps
would be
Lesser, an American,; who lived in Paris, for 20 years as a political outright compulsion,
journalist, radio commentator and cabaret owner, is its owner, has necessary in order to avoid too
done a remarkable job. From the bar with its three dimension murals great a dependence on commercial
by Bernard Lamotte, showing scenes in the Latin Quarter and Mont- banks to finance the deficit of
For supper
4K/\
the
to
Aug. 17, follows;
buy bonds or
meet fixed commitments. He rec¬
ommended that the total deduc¬
tion from net income should be
limited to
$250 to prevent too
for each $2 used to
La Vie Parisienne
esting people.; Soldiers of Free France in New York have already
charm of the place and make a bee line for it.
•
nual convention in
taurants that really
discovered the nostalgic
resistance
The President's message,'
TPv-vy-3 AWinll
'n
tunity."
rf-l
4*/-\
subject to
the limitation that only $1 could
be deducted from taxable income
.
unable to go
in neglect or
war
military
achievements the market was
serious loss of educational oppor-
lays in excess
dividual's net income,
.
not be allowed
must
dren
that the ex¬
proposed
emption should apply to such
these
of
tions
Roosevelt, in a mes¬
sage to the American Federation
of Teachers, declared that "chil¬
Paul, Treasury General Coun¬
sel. The same advices report that
Mr.
with the
President
E.
war
/
TOWN
pation.
Urges Child Education
gages,
.
You
reason
(Continued from page 709)
presented to the Senate Finance Committee by
Department on Aug. 25. Under the Treasury plan, ac¬
cording to special advices from Washington to the New York "Times,"
an individual would be allowed
to deduct from his taxable income
the Treasury
stocks amount to
SUGAR
Exports—Imports—Futures
DIgby
4-2727
'
as
Volume
^6
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4102
"Stamps Nos. 6 and 7, each good
Expects '43 Sugar Ration
To
Stay At Present Rates
The Government's sugar ration¬
ing
is
program
operating
on
a
basis that will make possible the
maintenance of allotments to con¬
through
sumers
months of
1943
the
first
least
at
equal to
of ration¬
those at the beginning
ing,
nine
providing the shipping out¬
look
in
take
a
the
Caribbean
not
does
radical turn for the worse,
Aug.
on
The
13,
an¬
"The analysis of the U. S. sugar
supply, compiled under the direc¬
tion of Harold B. Rowe, chief of
the food rationing division, ' in¬
cluded estimates that to maintain
minimum
ration
through the
first nine months of 1943 will
re¬
quire the distribution of 4,173,000
tons of sugar, but that an addi¬
tional 830,000 tons will have to
be kept in the Nation's sugar lar¬
der to insure
adequate supply
an
A
highly
allowable
bean
uncertain
is
Mr.
factor,
that receipts from Carib¬
of supply will ex¬
a
rate equal to the quotas
sources
ceed
consumer
retail
means
providing
inventories for
sugar
wholesale
or
established
retailer
*
be
that
had
1-B
the
period
of
31
this
of June
1
which
totaled
1,742,000
from
Cuba,
Puerto Rico and the Virgin Islands
and other sources.
year,
\
"This rate of import would
.
.
.
,
vide
2,240,000
first
tons
pro¬
during
the
nine
months of
1943, Mr.
said, with other anticipated
supplies listed as:
:
•
Rowe
"From
in
early 1943, 200,000 tons.
"These
receipts aggregate 3,040,000 tons, and since the total
needed for the nine-months'
tribution
must
go
is
5,000,000
into the new
dis¬
at least 1,960,000 tons of sugar on
hand.
-}
amount
first
his
of
territory,
totally unfit for
cus¬
Tt
be
must
recognized,' the
report saidi? 'that this inventory
would be adequate only in the
event
receipts during the first
nine month of 1943 equalled the
full rate of the present shipping
Since this rate of receipts
certain, a further reserve
quota.
is
not
is desirable.'
area are
during the
weeks
Aug.
on
of
would
represent
a
reasonable
compromise between actual dan¬
ger of shortage in the country, and
excessive
an
space
of
use
warehouse
so sorely needed for
production program.
now
3
that
previously
for
users
the
the
cover
allotment
base
sugar
for
these
will
be
granted
boosting their
of
their
25%
a
sions
base.
The
consumers
the
volume
to
four-
American
refiners
both
sugar,
and domestic. The
the
first
nine
and
of
domestic
fined
raw
cane
for
this
for Jan.
that if the
necessary
1.
stock
on
He
pointed out
shipping situation turns
out to be better than
we now
have
of
if distribu¬
expected, any ex¬
with
wife
a
on
other
supply of sugar can then be
as
a
bonus, or extra
distributed
allowance to consumers."
,,jn,
.
Sugar ration stamp No. 8 will be
good for five pounds of the com¬
modity in the ten weeks Aug. 23
to Oct. 31, the Office of Price Ad¬
ministration stated on Aug. 15.
It
pointed
out
that
JULY 1942
;
while
not
conference and in
fore
the
National
make
able-bodied
in larger units
disposal of five,
and twenty-five pound pack¬
purchases
be
ten
very
according to the Associated
Press, which further said:
put up before
the start of rationing, and process¬
es have had some difficulty mar¬
Institute
to
serve
summarize
relationship of the
'Events
are:
These head¬
war.
Preceding
the
War'; 'Neutrality'; 'Threats to Ter¬
Security';
'War'; 'War-Time Economic Co¬
ritorial and Institutional
operation.'
'All
Volume
Cos.
in $1,000
totaL$459,499
near
the Northwest¬
campus,
the
that
men
the
Di¬
number
of
in industry must
reduced
in
-"Under
each
of
these
100%
78%
323,855
Atlantic
115,844
75%
1,089,597
99%
Cent, 105,599
80%'
914,335
99%
W; N. Cent.
46,746
83%
388,902
104%
S.
Atlantic
44,696
78%
383,949
96%
E.
S.
101%
Cent.
W. S.
18,549
80%
162,414
32,199
75%
287,588
98%
13,165
85%
101,211
98%
45,650
85%
379,895
109%
Cent,
Mountain
...
French No. African Trade
The
office
of
War
tough about the
necessity of getting men in 2-A
and 2-B replaced.
have
"We
learned
there
are
few irreplaceable men, and
industry, agriculture and in
government we have got to train
people to replace draft-age men,
and we have got to do it quickly.
very
in
has
such
"In
the
past, selective service
protected
vital
industries,
as
aircraft
and
ship
pro¬
Information
Washington on Aug.
exchange of goods with
North Africa, under the
14 that the
French
terms of the economic
accord, has
resumed, the trade between
been
United
States
North Africa
is
African
from
and
sailed
French
from
the
Aug. 9 with
on
products.
the United
North Africa
olive oil.
on
The
States
The
Aug.
14
United
supplies
consisted
The
latter ships
from
American
Union, points
the volume
on
War"
in
ternational
the
"a
the
singular
field
vision,"
of
trend
of
Americas
events
sev¬
eral years before
they actually oc¬
curred, and adopted appropriate
measures to meet the contingen¬
cies that might arise."
He con¬
conscious
to
efforts
improve
of
many
States
Vichy.
be
in
referred
these
President
special
"
The War"
Aug.
13
to
Government make certain
"correct certain
would
the
relations
"I
tensive real
cities
of
tection of
as
Buy El Salvador Rubber
The
State
nounced
in
Department
Washington
on
an¬
Aug.
24 that El Salvador has agreed to
sell to the United States all the
rubber it
can
produce during the
make for
to
convey
sewerage
of
The
this
Panama
systems
relinquish its ex¬
estate holdings in the
and
Panama,
so
holdings are not es¬
the Deration and pro¬
the
Canal; and that it
liquidate the credit of $2,500,000
Panama
by
the
Republic of
Export-Import
Bank for the construction of Pan¬
ama's
share
of
Ha to
Highway,
our
defense
constructed
the
a
Chorrera-Rio
road essential to
requirements
in
accordance
standards made essential
and
with
by these
requirements."
requirements.
President said:
-
Cooperation
Hemisphere countries.
States
"The Treaty of Friendship
of
between
America
the
and
the United
and
the
thoroughly cooperative.
Pana¬
On Mar. 5,
1941, the President of the Repub¬
manifesto
a
making available for
use
by the
United States certain defense sites
in the
territory of that Republic.
Pending the conclusions of final
arrangements regarding the terms
on
which these sites are to be
used,
the
Panamanian
has
permitted
forces
to
Govern¬
armed
our
and
develop
them. Immediately following the
attack by the Japanese on Pearl
occupy
Harbor Panama
declared
war
on
the three major Axis powers, and
since has taken numerous protec¬
tive
steps to
cooperate with
American republics in
interest and
ama
the
the
security of the Pan¬
Canal and the defense of this
hemisphere.
Tills
:
attitude
is
dence that the
.
tangible
evi-.
relations between,
the two countries
are
now
firmly
based upon a recognition of mu¬
tual interest and a
disposition to
assume common
responsibilities."
Dried Fruit Ceiling To Be
Up 15% At Packer Level
The
Office
of
Price
tration announced
Adminis¬
Aug: 19 that
shortly increase the March,
1942, prices on dried prunes, pears,
on
it will
peaches, apricots, figs and raisins
by some 15% at the packer level.
However, it is not likely that civ¬
ilian -
consumers
affected
since
will take
portion
this
over
of
will
the
the
be
greatly
Government
season
dried
major
a
fruit
and
raisin pack for the military forces
and lend-lease.
This
is in. ac¬
a
Board
War Pro¬
recent
order
freezing all
production and the
1941, crop carryover ih the hands
of packers.
The supply of the six
major dried fruits not purchased
by the Government will be made
of
the
1942
available for civilians.
tons
the
the output
with
a
The OPA
was 500,$75,000,000 sales
move
will allow
specified margins
over
support
buying
prices
to
growers, set previously by the
Department of Agriculture.
This
is a described as providing "an¬
other link in the coordinated pro-.
gram to encourage maximum pro¬
duction
In
and
order
distribution."
to
take
of
care
the
possibility of sales to the Govern¬
ment and
private trade, OPA has
ceiling prices
established specific
for both at the packer level. These
apply to both the 1941 and 1942
grades,
sizes
varieties and container
they prevailed in the fall
as
of 1941.
British
the
Re¬
Supply Mission
British
Purchasing Com}
mission, 15 Broad St., New York
City, recently changed its
the British Ministry
of
Mission.
to
Supply
name
When first established in
November, 1939, the mission was
known
as
the British
Purchasing
Commission but in January,
when
it
French
the
was
name
was
the
Commission,
changed
to
Purchasing
However,
1940,
with
merged
Purchasing
Anglo-French
mission.
At the outset of his message
This is the eleventh such agree¬
ment
concluded
with
Western
of
lic1 of Panama issued
The
these
next four years, except what may
needed for essential domestic
be
attitude
and
it
Colon
un¬
packs, with differentials for other
that
Panama
made available to the
To
two
friendship."
advisable
and
that
not
the
7;7"
cities
sential to
ington, D. C.
it
Government
to
addressed
and
deem
factors in
between
countries which do
Wash¬
be
conces¬
period of years, explaining that
by doing this the United States
cents,
to
a
on
this
was
new
Government in the pres¬
crisis has been
processors
sent,
the
international
value.
sions which have been desired by
the Republic of Panama over a
far
American Union,
on
Congress
recommending that
60-page mimeographed work
and
may
be purchased for 25
a
orders
ent
Last year
Roosevelt
message
Colon;
Pan
columns
•
Asked By Roosevelt
continental
the
was
limited scale;
a
•
at
Hull
Concessions For Panama
water
;
"The
manian
000
the
is
State
that trade
on
in
to
out
Government
June
July 2, page 23.
ar¬
worked
Secretary i of
in
Americas And
suspended
satisfactory
a
rangement, could
with the French
the
"The
-
,
of
treaty.
cordance with
the
community."
provisions
duction
reciprocal
relations
and
to
strengthen the
bonds of friendship uniting the
American Republics in one great
years
the
last March until
in¬
continues,
the
der
shipments to French North Africa
"W i t h
he
of
statesmen
<•
for
that
out
relations."
foresaw the
Pan
"The Americas And
reflects
achievement
"the
of
sailed
Casablanca
States.
United
being resumed
General
demon¬
to assume
Canal, a responsibility which
accepted by that Government
non-
cork, tartar and
are
disclosed
foreword, Dr. L. S. Rowe,
has
Re¬
Pana¬
burdens imposed upon it as part¬
in the defense of the Panama
military consumer goods, in ex¬
change for two shiploads of North
the
The
willingness
a
vessels
United States
development of inter-Ameri¬
.In his
its
two-way affair,
the OWI said, explaining that two
cooperation." ■/.;.•
Director
Panama.
Government
promptly and wholeheartedly the
announced in
the
Gov¬
ner
100%
N.
this
of
ment
79% '$4,031,746
37,051
the
the
future..''
All
Cos.
Engl'd
New
can
for
"I can't talk too
waste of labor and materials.'
said
"drastically
of them because ration
stamps to date have been good for
one or two pound purchases.
Un¬
less this sugar is sold, the OPA
made known, it would have to be
repacked, causing an 'undesirable
any
on
University
ern
and facilitate the
ages,
address be¬
Commercial and Trade Organiza¬
rector
,
an
'42-'41
Volume
President said:
a press
Ratios
Sales
in $1,000
the
Expressing his views at
YEAR TO DATE
'42-'41
ondary dependents." General Her¬
shey
explained
secondary^ de¬
pendents were those other than
wives and children.
/
Ratios
Sales
confidence
lotment will enable consumers to
keting
7
follows:
as
another; they,vwere the result of
tion Executives
were
by
kerosene. Among the products in¬
cluded
in
the
shipments
from
Will
cludes:
iK
Evanston, 111., reported:
;
"When the supply of single men
"The
measures
adopted were
js gone in the next few months,"; not the spontaneous action of ' &
he said, "we must dip into the group of Stages unknown to one
changing the basic ration of half a
pound per person a week, the al¬
"These sizes
The sales volume and the ratios
all, sections are reported
for
the Bureau
group of men with wives and sec¬
iwmn
OPA Allows Extra Sugar
jis
■/.
milk,7tea, - leaf tobacco, coal and
a
,
topics appear the many
steps th'at have been taken toward
from
the
con¬
glance at the topi¬
reveals
ings
would be¬
advices
which
general
ments to enter the. Army now.
with
even
chronological
A
Americas to the
,
Press
character
'
cess
about
how¬
amount sold in the same
period of
1941.
■
f ■ ' ' •- ;.;V
French
the
are
political, economic
opment of the
sugar re¬
secondary dependents
only to make arrange¬
Associated
Washington,
succinctly the evolutionary devel¬
tional
or
a
Pan
headings in the table of
which
Asserting that the "end is in
sight" of the available supply of
single
men
for
military
duty,
men
$4,031,746,000,
of brown sugar, copper
sulphate,
i cotton cloth and
thread, condensed
tents
Move To Reclassify
>
Married Men For Draft
the right to expect, or
tion is less than
is
ever,
available
treatment of activities and events
sup¬
1941, which was a high
year. lt amounts to approximately
85% of the cane sugar refined an-;
nually
during
the
three - year
period immediately preceding
men
War,"
the
Foreign Ministers and
cal
in
„
by
at
in
adopted at the meetings
occasions.
1942, amounts "to approximately
70% of the amount of imported
and
a
juridical
have been
'of
months
of
measures
plementing the earlieF allotments
for
fact
The
'
;• ";-!
"Included in the volume
imported
allocation,
actual
said:
amount to ap¬
provided for the entire 1942 allo¬
to
in
of
strated
months of 1942
seven
aggregating
degrees
revealed
are
And
Union
prophetic
vide
The total sales volume
14.
for the first
U. S.
public
manian
other
C., and now ready for distribu¬
tion to the public. The Pan Amer¬
ican Union in making this known
The War Production Board has
cane
nearly
D.
75%
tion of all married
hand
Aug.
made
expres¬
varying
compiled
American
proximately 160,000 short tons of
sugar. 7'
v";;"." ;V
raw
explained
"The Americas
four
to
solidarity,
with
understanding,
and
users
increase
over
month period will
of
used
gin "probably in October and cer¬
tainly by Christmas." He advised
pro¬
Conn.,
Inter-American cooperation and
hemispheric
increase,
allotment
were
sold
"Americas And War"
ing to the OPA, industrial users
will
be
given a 10% increase,
raising their allotment to 80% of
their
lists
^7'77:7;'77 M'"!\
.
in
Hartford,
1-B
inducting men
on Aug. 1 be¬
States
$459,499,000,
issued by the Life Insur¬
Research
Bureau,
be
board
to
Sales
ance
Pacific
of
Accord¬
months, while institutional
the
local
any
1-A
exhausted.
period of
September and October.
the
cause
an¬
months
in
of
United
clarification
,
survey
The army , began
1-B class
nounced increases in the sugar al¬
lotments of industrial and insti¬
tutional
one-fourth
from the
recently revealed
remainder of this year, Mr. Rowe
being gauged to
expected to
the
in¬
corresponding period of
according to the, monthly
1941,,
E.
revealed,
are
The
any service.
is
ordinary life
amounted
the
ernment's relations with the
about 21% below the volume
in
the
M.
The
"The ration allowances for the
in the
now
be
to be shifted to Class 1-A
Maj. Gen. Lewis B. Hershey, Na¬
Selective Service Director,
said on Aug. 21 that reclassifica¬
war
our
Class
of
in
surance
July
in any single month.
his
' "
The OPA also
than
registrants
calendar
two
plus
sell
sugar
he will
1941,"
*
-
"Accordingly, it has been con¬
cluded, Mr. Rowe said, that a
year-end stock of 2,300,000 tons
its
sales
completed by the first of next
The order specifies that not
the
the wholesaler
operation."
set
"
!
service"
to
are
reclassification
more
in
we
with
military
class
salers
cation
tons,
year
abolished
;
The
year.
these
Hawaii, 600,000 tons.
"From the U. S. beet sugar crop
draft
reclassified,
beginning Sept. 1, into either 1-A
registrants, those fit for full or
limited
duties,
or
Class
4-F,
tomary minimum shipping unit in
to
for
it:
tary service. All those
which sugar is delivered to whole¬
mittee
Dec.
The
44, inclusive.
headquarters
Washington announced on Aug.
July and August will be extended
to
20 to
Act
of youths
1-B, those with minor physical
defects, and ordered all but the
totally unfit available for mili¬
ties—meats, groceries, fruits, veg¬
etables, etc.
: \
"The allowable' inventory of a
the
Service
old.
years
are
"limited
given
sales should include all commodi¬
be
in
Sales Decline
to
Service
19
during the first week of his
operation.
His
estimated
gross
will
19
now
Selective
in
made
wholesaler
Selective
and
"
allowable inventory of
pound of sugar for each $1 of
gross sales he estimates will be
new
Congress
permit the drafting
ages
initial
an
the
in
18
businesses
will
made
to
rationing went into effect
on April 28 was announced
by the
OPA Food Rationing Division on
Aug. 17; The announcement said:
by the Inter-depart¬
mental Shipping Priorities Com¬
|
amend
up new
since
"A* new
be
soon
public of Panama, effective on
July 27, 1939, was a definitive step
July Life Insurance
waiting until he is replaced."
It is expected that a move will
a
of
who have opened
persons
Rowe's report said, it appears un¬
likely
uniform
estimates
in all sections of the country.
"While the shipping outlook
a
a
one
nouncement said:
the
man power,
but from here on, when the
army
needs the man, there will be no
two-pound bonus."
the Office of Price Administration
announced
ducers, against loss of
for two pounds of sugar, may be
used
until ■ midnight,
Aug. 22.
Stamp No. 7 gives
717
when
French withdrew from the
the
Com¬
the
war
in
June, 1940, the organization went
back to its original name British
Purchasing Commission.
THE COMMERCIAL & FINANCIAL CHRONICLE
718
Thursday, August 27, 1942
Calendar ol New Security Flotations;
come
ments were
a
grouped according to the dates
are
tion statements will in normal
separate
business
also
existence
of
the
com¬
business,
the
properties
fran¬
of
Cumberland,
of
which
proceeds from
cordance
filed
with
with
ities of
be
the
days after filing except in the case of the secur¬
foreign public authorities which normally
become effective in seven days.
Net
certain
the
the
financing
plan
merger
commission
These
dates, unless otherwise specified, are as of 4:30
P.M. Eastern Standard Time as per rule 930(b).
Offerings will rarely be made before the day follow¬
ing.
*■ ■
4%
will
Power,
COMPANY
TRION
THE
The Trion Company
of
000
value $100 per
face
fabricates
and
Trion,
cotton
in
goods
its
military
Other
price
to
of
in
a
of
'
.
&
Co.,
of
offering
by amendment
will
be
be
used
of
amount
to
$126,096;
indebtedness of
to
reduce
Short-term
with
to
loans
funds
SEC
covering
of
ten
totaling
outstanding,
Offering—The
ing
pension
savings
fund
tional Insurance
and
is referred
The
is
plan
of
the
Co.
to
and
employees,
the
as
Pole
Na¬
becomes
effective,
contributory
those
eligible
posit in the fund 5% of their compensa¬
tion, but, in no case, more than 5%
or
$250
a
will
filed
be
may
will
but
ago,
includes
1,544
the
unknown
same
$22
to
deter¬
thereafter
Union
INSURANCE
Insurance
with
CO.
Co.
the
Don
filed
SEC
B.
together
but
not
a
to
the
public
at
and
for
used
additions
San
to
6,
Francisco)
effective
1
of
amount
large
market
with
proposed cash
$4,097,900,
on
At
with
aggregate
totaling
discounts
certain
offering
ESWT
on
Registration Statement Norf2-5037. Form
A-l.
7
(8-21-42)
Park
trustees
with
for
has
the
91 ST
filed
SEC
5,475
vallie
&
Avenue & 91st
CANADIAN
a
for
shares
STREET,
registration
'
;,//
..
Offering—Offering price is 25 cents
Street, New York City
Offering—Registration
extension
of
under
the
amended,
voting
in
is
Central
connection
to Sept. 30, 1947,
consented to act
trust
after Sept. 30,
agreement,
(8-22-42)
J
SATURDAY,
'
SEPT.
12
$1
per
85,326
share.
shares
shares,
company
not
is
plus
virtue of the anti-dilution provi¬
of
its
preferred stock, 5%
the
130,000
value
for
$1
this
shares
per
of
incorporation
of
series.
of
its
upon
cumulative
In addition to
common
stock,
par
share, heretofore registered
the company estimates
purpose,
that—shares of such stock will be required
to be reserved for this purpose
the
issuance
of
up
by reason of
to 40,000 shares of Its
cumulative preferred stock, 6% series, and
the issuance and sale of the 85,326 shares
of
common
stock, par value _$1
Business—Company is an operating pub¬
utility and engages in the electric, gas
water
State
of
business,
entirely
within
the
per
:
be
sold
of
the
under
the
and
the
notes
competitive bidding
Commission.
Names
of
under¬
writers and amounts and offering price to
public will be supplied by amendment
The
to
be
261,910
shares
to
of
the
Co.
take
the
may
and to
comes
England Public
subscribed
261,910
pay
therefor
provided
the
and
less
in
cash
at
to
shares
$10
per
merger
be¬
effective
issue
of
the
loans
says
that
now
be
and
payable
working
dealer, broker
will
commission
No
in
with
conjunction
,'; ; "
to
used
also
repay
certain
reduce
to
the
certain
balance
be
to
used
capital
Registration
Statement
Aug. 1, 1942
on
<;
A.
vrEllicott
1
p.m.,
EWT
r>:
Drug
; rr;
CO.
.Co.,
filed ;;a
Address—120 Cherry
prior
public
pursuant
Maine
to
an
will
thereupon
agreement
of
acquire,
be
$120,000
6%
merger,
the
business and all the rights; powers7, etc.;' of
After
the
merger
has be¬
share, Cumberland.
for
;
presently
of
the
issued.
this amount
which
is
$48,000
being
will
be
issued
to
preferred stock
eliminated.
additional
debentures
Approximately
will
Issued
/
to
retire
Offering—The
priced
' "
'
;
debentures
new
at 100 and accrued
will
be
interest
Registration Statement No. 2-5026. Form
(7-7-42)
Amendment filed
July 23, 1942 giving to
members of the company only the privilege
of exchanging the 6% cumulative preferred
stock, par $50, for the debentures on a
dollar for dollar basis and
Amendment
effective
non
filed
exchange for
stockholder members
Aug.
or
7,
1942,
to
defer
date
r
EQUIPMENT
FINANCE CORPORATION
Equipment Finance Corporation has filed
registration statement with the SEC for
5,000 shares of common stock, no. par value
Address—Chicagd, 111.
Business—Short term
of
6%
issuance
has
the
cumulative
par;
and'
$10
par,l
conversion-
on
:
.
;
Ha¬
'
Underwriting—None
Offering—The preferred stock is offered
company's common stockholders of rec¬
April 30, 1942, for subscription at $10
share, on the basis of three shares of;
preferred stock for each five shares of
It
ord
per
shares
ferable
1942.
stock.
Such
subscribed
not
or
the
of
to
on
sold
preferred
before
or
on
stock
May
29,
June
before
or
30,
not
1942,
1942.*
will be retaihed by thecompany, subject
to
issue
and
sale, either at private or,
public sale, at not less than $10 per share
one
Jan. 22, 1942.
stock, to be evidenced by trans-'
warrants
which
expire May 29.'
common
ol
Proceeds
will
outstanding
be
applied to
bank
loans,
Exchange
reduction
aggregating
650,000
Registration Statement No. 2-4973.
8-2
Any shares ol
of
$1,--
.
Form
(3-30-42)
tlon
the
FINANCE
-Interim
Finance
shares
class
shares
common
Philadelphia, Is named prin¬
underwriter; other underwriters wil
Co.,
cipal
be
to
public,
&
Inc.,
be
will
used
statement
filed
the
stock,
A
$25
stock. $1
redeem,
a
SEC
for
par;
and
39,912'
25,232
par
Business—Primary function
to
"A'
registra-1
CORP.
Corp.
with
Address—33 N. La Salle St., Chicago,
supplied by amendment.
Proceeds
>
Is
oc
to
of
HI.'
company
loan
money to enterprises Whose
capital
structures
are
being
/or
1, 1942, at $105 per share, all out¬
6% preferred stock; balance foi
debt'
ad-.
Justed or reorganized by its wholly-owned
subsidiary, H. M. Preston & Co.- A Second.•
arv
function
not
used
standing
in' connection with construc¬
equipment of plant additions
and
is
to
loan money,
'
Registration Statement No. 2-4926. Font
S2
(12.-30-41)
«
Registration
.
,
vide
..
Statement
withdrawn
Aug.
.
ELECTRIC
shares
Electric
statement
5%
of
with
the
cumulative
regis¬
for 3,250
SEC
a
preferred
stock,
its
$100 per share, and 100,000 shares of
common stock,
par $5 per share
par
Address—125
financing etc.
—
Amory St., Boston, Mass.
Business
conducted
i
111.,
cago,
is
intermediate
the
underwriting
sole
manufacture
of
erators
the
and
electric
and
motors
manufacture
of
unit
the
principal
underwriter
for
the
shares
Gamewell
the
company
is
is
included
common
of
a
Amendment
effective date
proposed
recapitaliza¬
plan the outstanding securities of the
LONE
Lone
filed
Aug.
*
purchase
no
100,000 shares of common
writer
has
that
agreement
all
the
for
an
been
the
with
advised
latter has
a
common
aggregate
single
stock
to
price
by
stock.
the
entered
purchaser to
such
of
The
under¬
into
an
sell
mircbaser,
$1,050,000
or
par
Steel
with
with
each
stock; thereafter
17, 1942, to defer
•
common
Co.
1948;
common
registration
$500,000
1,000
warrents
5%
to
stock; and 75,000 share*
Texas
Business—Company
Underwriting
filed
for
stock
Address—Dallas,
of
-
CO.
SEC
due
manufacture
value
company
of,
first 900
'
STEEL
Star
debentures,
will consist of 3,250 shares of 5%
preferred stock, par $100 per
$5 per share, all owned by the
Gamewell Company.
The underwriter has
entered
into
an
agreement to purchase
from Gamewell at a price of $9 per share,
STAR
statement
cumulative
share, and 100,000 shares of common stock,
bs
to
price
a
the
,
company
the
be
at
owned
consummation
par
stock
least
(3-18-42)
controlled by
by Gamewell at date
of
prospectus consist of 8,250 shares of
common
stock, par value $100 per share,
being all of the stock of the Holtzer-Cabot
Company outstanding on same date.
Upon
tion
at
working capital
Registration Statement No. 2-4968. Form
The securities of
Company.
The
unit
per
Proceeds will be used for
com¬
4-1.
Offering—The company
4
A
shares,
With
.will
$8
company reserves the right to reduce the
number of common shares to be
included ir
each unit' of class A stock
*
the
4
shares of
gen¬
various
unit.
is
July 30, 1942 to defer
class
of
there
Underwriting—E. H. Rollins & Sens, Inc.
mon
units
units,
types of electric signal equipment.
ts
in
$110 per
the
falls into two classifications:
company
Offering—The
sold
underwriter.-.
commission
Amendment filed,
effective date
the
by
with funds
function, to pro-'
primary
or
capital markets open avenues for longer-1
term borrowing from
customary sources ' v
Underwriter—H. M. Preston & Co;, Chi--
CO.
filed
Co.
in
"interim"
financing"
enterprises until the financial positionsthe borrower or a
change in general
to
of
1942 *-• '
HOLTZER-CABOT
Approximately
be
with
.
pffered
Business
of
Ltd.,
■
INTERIM
!,
$250,000
LfD.
CO.,
Co.,
statement
the preferred stock
preferred not Issued under the ex¬
change offer, plus the 6,328 shares not
reserved for such exchange offer, will be
tration
—
—
no-'
V*
;
4 Va%
P Holtzer-Cabot
Street, Buffalo, New
replace the outstanding 6%
a
TRANSIT
for
be
■/.:•,
.
preferred stock, $10
shares
common
stock,
,
stock
Inc.,
will
to
women
39,382
preferred
"
Transit
•
druggists.
1909, will be merged into the company and
Central
6%
offer expires
the
Sons,
There
shares
reserved
on
(..
service, to
$105, the redemption price oi
preferred), for each share of out¬
standing
;
Business—Company is a public utility
engaged in providing urban transportation,
the city of Honolulu,. rendered
by trolley coaches and gasoline buses
par
between
one
1
Address—1140 Alspal St;, Honolulu,
v
:■ "'./••
,/ /
registration
Company Is
a
cooperative
wholesale
drug company,
selling
to
its
members, only,
all
of
whom
are
retail
to
registered,
of
75,000
waii
share outstanding
plus an
unstatec
the public of¬
share 4l/2% preferrec
on
RAPID
75,000
and
6%
•
Business
A-2.
the
22,
statement with the SEC for $350,000
debentures, due June 30, ,1957.
'
will
price
stock
''
'
-
for
p.m '■ EWT
&
;
Rapid
latter
stock),
(difference
or
tion
p.m.
5:30
the
it.
de-.
part
expenditures
.
effective
as of
1942
1942,
1,
preferred
March
.
of
33,054
of
acquired
Rollins
registration
at a price to be
supplied by amendment.
Harriman Rlplej
Cumberland
County Power & Light Co., a
utility incorporated in Maine in
March
6%
outstanding for cur¬
now
(5-27-42)
deposits made by
securities
100.
the
inter*
the
capital
Ser¬
agreed
any
proposed
Proceeds—Statement
the
for
shares,
at
anyone
in
interested
without
a
SEC
preferred stock on basis of one shart
of 4Vss % preferred stock, plus $1.50 (equal
to
current
quarterly
dividend
payable
fering
are
of
be subscribed for by stockholders,
as
share
New
pack¬
and
the
common
holders
groceries
among
othei
buying privilege deposits with the company
The balance,
approximately $78,500 after
expenses, will become additional working
offering price of the
will be supplied by amend¬
offered
friends
movement
to
Proceeds
Underwriting—The bonds
first
and
ELLICOTT DRUG
Maine
will
in
warehousing
York
has
by
shares
$10 per share.
vice
issue
of
1952, and 261,910 shares of
par value
rights.
sions
articles
to
stock,
emptive
value
that the
registered as the
be required at any time to
the conversion
1943
dealer
regis¬
a
company's outstanding common stock and
6% preferred stock for subscription at $10
per share in
accordance with their pre¬
heretofore
may
filed
Co.
additional
notes
such
Power
Brooklyn, N. Y.
Ave.,
for
had
H.
Honolulu
32,054 shares of outstanding 6% preferred
stock of the privilege of exchanging such
stock
its
with-
24 that Commercial In¬
investment.;
HONOLULU
t.
Offering—Company
and
Aug.
E.
1
<
1
public offering
registrator
f
for
not
convertible
$100
watches for
wrist
stock
and
distributing
such distribution
effective
Trust
through
manufactures anc
high grade (17 tc
wrist watches foi
of
and
of which being,
purchaser that it.
distribution
a
1942
vestment
4Va %
'■
■
and
Underwriting
of
one
models
pocket
22,
permanent
Pa.
Company
—-
various
amount
July 18,
par
stock,
Statement
1942.
1, 1972; $5,000,000 tenserial notes, maturing serially on July
ment.
Manufacturing Co. has filed a
registration statement with the SEC for
common
11,
Aug.
CO.
maturing July
bonds and notes
Rheem
shares of
filed
POWER
principal
any
Registration Statement No. 2-5002. Form
defer
Offering—Public
RHEEM MANUFACTURING CO.
85,326
request
in
mature
in
including,
merchandise,
S-2.
Maine
rule
)t
^Registration Statement No. 2-5038. Form
F-l.
lic
Kent
Proceeds—Will
as
1942, the present
termination date
1942, to
2,
shall
sale
rent
stock,
the conditions set
securities, the H-C Company
post-effectment amendment dis-;
a
Announced
Form
.
the'
one
investment
make
Registration
Aug.
making a conditional offer to holders of ltt
maximum
maximum
■
activities,
private
preferred
jewel}
men
filed
Co.
after
such
filed
::
com¬
effective,$1,375,000, upon
common
closing the terms of
Further de¬
post-effective
V
:
.
of
to
will file
with.SEC for 39,382 shares 4M»*
Business
23
1944
from
in
mature
years
paid
for
July
statement with SEC for $14,500,000
and general mortgage bonds, Series
and
is
shall
products,
accounts
Address—9 Green Street, Augusta, Maine
voting trust agree¬
a
which
$30,000
salesman,
be
U
Watch
cumulative
(exclusive of 1950). Com¬
$50,000
all
Aug. 19, 1942, to defer
,
for
the
of
subsequently
WATCII CO.
HAMILTON
sells
account
such
the
with.'
agreement
becomes
agreement,
purchasing
of
Offering—The securities are being sold
the Cooperative directly to its stock¬
or
filed
the
that
purchaser,
statement
issued-
Company has
all
aggregate price of
termine
//■/>/;;«Zv,/V,'
date
Hamilton
year
position of any underwriter,
per
tration
1 from
each
that
which
cooperative
development, exploration,
milling
plant
and
working
filed
■■19-17-41)
such
an
any: present
intention
of
If the purchaser should
at $110 pel
of company'!
redeem
shares
to
the
already
sell
terms and subject to
own
-
Amendment
Underwriting—No underwriter named
by
to
142,667
the
effective
stock
to
representation by such
is
.
1942 to defer
22,
o'
the $52,-
102y.»,
at
Into
of;
will
sale
H-C
the
follows
Registration Statement No. 2-4845.
aging
(6-15-42)
common
ment from Sept. 30, 1942,
The voting trustees have
allied
such
CENTRAL MAINE
Business—Ajpkrtmen't building
of
1
amount
and
the other
Registration Statement No. 2-5013. Form
year
July
principal
Purpose—For
first
Ang.
redeem
entered
price
Company
underwriter
an
a
securi¬
as
preferred stock, no par.
to
be
supplied
by
42.
with¬
such
applied
Amendment
Cooperative Wholesale, Inc., filed
states
1944
to
be
tails
10-
-
1956, inclusive
pany
will
Rollins
from
are
The
the
purchaser
forth in
thi
and other portion*
orrenng—The
ana
com¬
According¬
H.
purchase
for
gas)
along
exception
(with
area),
$15,693,370
1954;
withdraw
1942
of
sale
E.
proceeds
which
by
registration
are to be sold by companj
competitive bidding Rule U-5t
SEC's Public Utility Holding Com¬
^hare,
COOPERATIVE WHOLESALE,
maturing
share, U. S. funds
M,
"
,*
,
Address—Address of trustees 18 East 48th
filed
Florida
Address—Lancaster,
holders
Business—Mining and milling
Underwriting—Enyart Van Camp & Co.,
Chicago, underwriter
S-3.
19,
and
territory
Aug.'
on
8,250 shares of
Gamewell
the
shares
has
mon
000,000 of company's First Mortgage 5s oj
registration statement with the SEC foi
4%
registered
debenture bond*
EWT
'
with the
Ltd.
Address—Toronto, Ont,
statement
.
CORP.,
INC.
voting trust certificates
of capital stock, $1 par
',
MINING
Mining ..Corp.,
registration statement with the SEC
a
and
the
filed
registration state-i
aggregate
of
outstanding.
single
a
the
the
57
the
;
Proceeds
5, 1942,
$5,000,000
date
Eastern
related
Canadian
Withdrawal
Street, Inc., through
Amerlcai
A Shan
ment
of decision to
of
registration
Address—135
Amendment
PARK AVENUE
of
$150,000
effective date
THURSDAX/SEPT. 10
of
Bond
cover
The
all
been, advised
Act.
Names of underwriters anc
price to public, will be supplied by postaffective amendment to registration state
/V/.":.
the SEC to
in view
Business—Wholesale
equipment,
capital
'
Proceeds—For investment.
of
registered
statement
1942.
LTD.
allowed
single transactions
sup¬
pany
INC.
amount
p.m.
of
out of the com¬
approved Aug.
Amendment
to
be
surplus
(4-30-42
June
was
effective
price
a
covering 500,000 shares of capital stock, par
value $1 per share
Underwriting—Whiting, Weeks & Stubbs,
Inc., Boston, principal underwriter
—
shares
of
//•.
issue
of
of
*53,170,000
proposed
from
drawal
a
filed
Business—Investment trust
Offering
before
or
the carrying
for
request with
notes
registered
issued
Address—49 Federal Street, Boston, Mass.
"
stock
share
Oct.
1,
per
business.
a
with
for
40,000
with
heretofore
receive
Miami
Ave.,
subsidiary
(Electric
Florida
ties
serial notes at private sale.
On July
1942,
company
filed an amendment
the SEC to
withdraw
the proposed
Wentworth
stock
common
will
Camilla
reoffered,
on
$120
the
16,
common
Registration
may
authorized
units
retire
trust indenture data
share
CAMILLA
beheficial
Second
manufacture
most
coast
under
common
at
redeem
(6-29-42) ■"
filed
us.
underwriter
per
interest
of
be
an
$1,225,000.
and
E.
Light
Underwriting
year
UNION
offered
outstanding to the extent
be repurchased and
units
and
issued
that
&
Jacksonville
of
$110,000.
Central Maine Power Co. on Aug.;
for 41,544 units of beneficial interest. Total
now
will
stock,
any
changed the registration,,
amended statement
for
mon
tin
on
dividend
the
Co.
to its
which it
stock, par $100 per share.
the
latter
the
proceeds of the series M
unspecified number
an
A-2.
whos*
been
not
underwriter;
an
be
A-l
has
registration statement with the SEC
a
8,
Business—This
Power
Registration Statement No. 2-5024. Form
filed
Registration Statement No. 2-4992. Form
America
Address—25
amendment./
:
the sale of
by
the. preferred
on
Preferrec
rates
and
Fla.
such redemp¬
preferred stock of the company and
the
purchase
and
construction
of
for
Issue*
of
were
to
used
EASTERN
principal
capital
WEDNESDAY, SEPT. 9
BOND INVESTMENT TRUST OF AMERICA
of
more
statement
Proceeds
Trust
of net
otherwise
Underwriting—Paul H. Watson is named
of
Investment
list
a
have
Offering—The
(8-20-42)
Bond
supplied
Interest
Par.
Debentures,
of
Sons, Inc., underwriter,- will purchase froraGamewell Company, which owns all of the
stock outstanding, the 8,250 shares of com¬
plied by amendment
such shares.
of
the serial notes and
be
facilities
Insurance
•
year
Registration Statement No. 2-5036. Form
C-l.
holders
Treating Co.
bonds,
stock, $10 par value
Address—San Francisco,
Calif.
Business—Engaged in the underwriting
of
fire, automobile and other forms of
em¬
ployees, who elect to become participants
depositors linder the plan,
will de¬
than
or
are
29,659 shares
em¬
and
more
or
registration
ployees retirement plan under which, after
it
&
pany's
below
dates
California
trust,
a
for the
be
Balance
OF OFFERINQ
days
CALIFORNIA
plan of the fund.
voluntary
a
is
rate
the com¬
sell
shar¬
Washington
of
Cumulative
shares
$100
of the
plan
profit
140.000
and
acquire all of the 650 outstanding shares
no oar capital stock of New England
to
Statement No, 2-5039. Form
present
mined
retirement
and
in
amended, to
ly
1, 1971; $10,000,000 Sink¬
Debentures, due Oct. 1,
1956
east
approxi¬
by
registration statements
offering
111.
Business—Employees
by
distribution
amendment
an
mon
reglsterec
Mortgage
due Oct.
Fund
ing
CO.
(also
were
company,;
inventories
UNDETERMINED
We
whose
Evanstoh;
Street,
SEC
oonds,
LIGHT
ting,
$1,400,000
DATES
the
twenty
Church
with
A
Light, Co.
$45,000,000
First
Bonds
obligation
10
ment
&
made
Registration Statement No. 2-5030. Form
(8-1-42)
•
'■ >
-•
■
»erving
7%
plan
Address—610
the
POWER
Florida ' Power
de¬
of,
company will file a postamendment stating such terms
/
as
FLORIDA
num¬
for
not
distributing
securities,
Holtzer-Cabot Electric
date
a
redemption
to
■'
of
S-2.
horse-drawn
of
■'
intention
Proceeds—All the proceeds from sale will
be received by the Gamewell
Company;
>
as
ergy
or
Co.'has
estimated
during
retirement
employee's
for
prior
operation
'
■
share
per
by purchaser that
to
and
Nepsco Appliance Finance Corp. $9,100 and
(8-24-42)
contributions
of
called
for
vehicles.
issue
1, 1936, due Aug. 1, 1956, of Nepsco
Inc., and 10 shares of common of
loans.
INSURANCE
being
$1,000,000
employee
years
facilities
par
Stock,
will
1942,
amount
first
horses
Services.
the
and
bank
now
the
of
increase
Registration
with
on
unspecifed
an
bf
for
present
$100
or
preferred stock
investment and
termine
Is an operating public utility en
principally in generating, transmit
distributing and selling electric en¬
CO.
statement
pay
to
discharge
to
$100,000;
short-term
bank
other
used
A-2.
registration
to
Purpose
such
account
any
effective
is
wagons,
by the
such
to be publicly,
includes
pre¬
concur¬
jit.- If purchaser, subsequently should
share, 2,993 shares for
per
$325,000
representation
own
with
at
par
of
$299,300.
of Aug.
in
balance
Form
$100
value,
rescission
no
offer
of
gaged
TUESDAY, SEPT. 8
a
of
an
and
above shares,
re
of
the
purchasing
is
its
Aug.
on
System)
tures
filed
used
Additional net proceeds from
mately $2,700,000, and for capital expendi¬
Insurance
total
at
acquire 300 shares of the common stock
and $6,000 face amount of 5%
debentures
Co.
is
NATIONAL
offered
common,
share
per
being made
proposed
trust
tion
shares of
1,238
$100
loans
serl£^ notes and the
The amount to be utilized in
price
bank
pay
serial notes and bomlnon stock will be used
deferred
National
to
discharge notes
Proceeds—To
(8-13-42)
Washington
principal and
105xk% on
at
price
upon
,
be
County
into
filed
Corp.
the
of
common
same
it
amendment to its
an
sale
proposed
Gamewell. proposes
the sale of the
to
the
single purchaser re-:
to sell all of the preferred stock
purchaser for an aggregate
to,
the
sale
\
registration State¬
ment
in
which
the
proposed • offering is
stated as follows:
Sold prior to registra¬
tion
to
employees of Curtiss Candy Co.
to deposit the redemption price there¬
in
Finance
to
■
:
the
to
stock,
underwriter
to defer
11, 1942,
<'•>.'
Equipment
13
and converted under the agreement
merger
of
mort¬
6%
be
Aug.
effective,date
payable to Tennessee Coal, Iron & Railroad
not to re¬
ceive any of the net proceeds which will
go to the selling stockholder.
WASHINGTON
to
are
'
filed
amended
1942
of
(6-27-42)
Amendment
latter
rently with
ferred
S-2.
stock of Cumberland County at
110%, respectively, all of which
and
pany
New
Inc.,
will
preferred stock and
unspecified number of shares of 5Va%
shares
sole underwriter
as
first
in the redemption
in
Cumberland
'
,
bonds
premium in
1, 1942,
mortgage bonds,
1966
of
Cumberland
and
respect
The registrant company
by Gamewell that al¬
has no agreement with
advised
the
ferred
Registration Statement No. 2-5023. Form
first
will
shares
merger
for
products
of
130%
cer¬
sheet
from
made
metal
Offering—Public
supplied
be
to
rough and finish machin¬
other
Underwriting—Blyth
supplied by amendment.
Registration Statement No. 2-5035.
engaged
products
the
certain
York, is named
paid for the stock by the underwriters and
the offering
price to the public will be
registrant
is
military use
by amendment.
The
presently
the manufacture and sale
and
ing
Offering—The 6,000 shares registered are
issued and outstanding andi are being of¬
fered for the account of a corporation and
S-2.
fixed
preferred
tain
Atlanta,
Co.,
underwriters will be named
Proceeds—The
be
large
It
in
steel
&c
stockholders.
stock
an
extent
fin¬
publicly
ities
as
announced of $9,275,-
proceeds of the
sheet
steel.
Ga„ is named principal underwriter.
individual
Net
from
made
be
to
are
trucks/ land, building ad¬
improvements and garaging facil¬
ditions,
used
of Cumberland
1960,
be
due
and premium
products
shares
and 2,993
share.
per
been
though
Proceeds—For
$2,650,000.
ber
metal
share,
ac¬
by the company which were incurred
the
purchase
and
construction
of
common
to
to
amount
facilities
Washing
Building,
in
Oct.
of
amount
due
$9,784,348
Business—Company is normally engaged
principally in the manufacture and sale of
Ga.
Underwriting—Courts
for
'
,
105%
face
series,
County
various
manufactures,
Business—Company
ishes
6,000
stock,
share.
Georgia.
Address—Trion,
plant at
for
SEC
/
on
series,
in 1942
3^2%
This statement is to
amendment
Address—Normandy
ton, D. C.
registra¬
a
preferred
cumulative
7%
.
the
with
statement
tion
shares
par
has filed
completed by
and
at
$1,538,060; to pay
the redemption
date
a
has
recently
be
the series M
principal
pay
premium in
made
be
to
$1,494,000
gage,
_
registered hereunder.
proceeds of
redemption
of
$10.50
.
used
the
Underwriting—No underwriter named
Offering—Issued prior to registration for
and property 2,007 shares at $100 per
.
have
will
follows:
TUESDAY, SEPT. 1
*
cash
the
offered at $100 per share
Net
is twenty
•
the
include
and
ceased
become effective, that
course
will
chises
which the registra¬
on
effective,
pany
list of issues whose registration state¬
filed less than twenty days ago.
These issues
Following is
pig
—
is
engaged
iron
No
and
in
th»
steel
underwriters
are
named
to
in registration statement
Offering—The debentures will be offered
the public at 100; each $500
principal
amount
warrant
of
shares
at
$10
common
reserved
the
debentures
entitling
25
of
per
share.
stock
for
the
will
holder
common
Of
stock
the
to
carry
company
75,000 shares
registered, 25,000 shares
issuance
upon
one
purchase
of
exercise
of
are -
the'
Volume
156
Number 4102
THE COMMERCIAL & FINANCIAL
CHRONICLE
X.-
warrants, and 50,000 shares will be offered
to the public at $10 per share
•
'
'
,
1
1
$18,500,000 of first mortgage and collateral
trust bonds, due Feb. lr 1972; $5,500,000
,
Proceeds will be used for working capital
(
.
purposes
serial
Registration Statement No. 2-4997. Form
j
s-2. (5-8-42)
I
Registration
EWT
p.m.
i
June
on
17,
LUKENS
i
STEEL
Lukens
Co.
filed
:
sub¬
registration
•
an
Steel
i
amendment
Co.
200,000
covering
4% %
11
underwriters
chased
and
the
are given
Name
the
by
the
registration
amounts
E.
H.
Rollins
Allen
&
(the
&
Boenning
with
two
of
and
present
handle
150,000
Public
ties
and
Guymon
of
the
company
100,000
uon
of
the
transactions
Inc.—.
Offering price to the public will be 100
plus accrued Interest from June 1. 1942.
the
EWT
p.m.
'
Statement
effective
Co.;
July 28, 1942
on
EWT July 12,
1942
of 5:30
as
i%
NU-ENAMEL
CORPORATION
Nu-Enamel
Corporation
with
the
registra¬
a
SEC
for
shares
yfll
.
Business—The company is engaged in the
distribution and sale of enamels, paints,
and
kindred
distributed
Enamel."
pany
lines,
The
the
&
name
manufactured
A-2.
Armstrong
.
specifications
^
Underwriting—Floyd D. Cerf
granted
Dec.
,
•
or
stock
of
the
or
mkment
The
'»
to
72.500
said
be
will
'
cents for each
share
in
of
the
-
and
involved
ii
1942, to defer
;
•
Public
fixing
the
of
••
Service
Co.
its
to
July
on
registration
interest
rate
$18,500,000
Electric
1,695,000
bonds
rates
on
the
on
first
trust
shares
with
1972
serial
V
Proceeds—The
shares
to
be
;
individual sellers of
filed
SEC
the
no
par
;■,
.
Amendment
effective
,;ity
,
filed
14,
Aug.
first
statement
mortgage
with
SEC
bonds,
for
3 V* %
Electric
Building,. 929
ington, D. C.
E
pany
Business—The
North
The
ican
Columbia
N.W.)
Wash¬
Co.
part
the
of
holding company sys¬
is,
and
intends
to
and
in
limited
a
$5,000,000 faqe ampunt of
bonds has been made.
As soon as
practicable
after
the
registration
state¬
has
ment
proposals
for
'
U-50
invite
to
the
the
be
used
of
pro-
written
such
se¬
tures.
to
general
increase
and
funds
company's
other
fixed
In June .1942
estimated
number
which
expendi-
received $3,-
$8,691,000.
poses- will
be
important
incurred
include
1
in
1943.
The
installation
for
Sub-
further expenditures for such
generator units and
of
purmore
turbo¬
!'
(8-5-42)
SCUDDER, STEVENS & CLARK FUND
INC.
Scudder,
Stevens & Clark
Fund
Inc.,
registration statement with the SEC
for 40,000 shares of capital stock of a pro¬
maximum
price
$2,999,200
Post
Office
Square,
Boston,
Mass.
take
the
issue
has
been
commitment
to
made
calculated
was
$74.98
in
the
make-up sheet
which price
was
price
share
per
Form
Feb.
on
such
of
of
stock
common
Feb.
*.*
filed Aug.
1942,
26,
.*
page
■■
,
10,
1942, to defer
GAS
CORPORATION
used in estimating the proposed maximum
aggregate offering price
Proceeds—For investment
Gas
Corp.
United
v
first
mortgage
due
:
-
registered $75,000,000
collateral trust
and
1958
:
.
Address—2 Rector Street, New York City
Business—Production and sale of natural
part of Electric Bond and Share Sys¬
gas;
tem
v.
'/ '• ■'
>
;;
Underwriters—None
Offering
Terms—Bonds
.nstltutional
>e
investors,
will
whose
be
sold
to
will
names
supplied by amendment, at' 99.34%'
Proceeds—To redeem $28,850,000 United
.
Public
)00
Service
6%
Debentures
due
to pay 6%
demand note of $25,925,-
Electric
Share;
to
Bond- and
to
repay
52,000,000 open account debt to E. B. & S.;
ind to purchase from United Gas
Co.,
$6,000,000
due
of
1961.
its
1st
Balance
&
Pipe Line
Colh
will
be
4%
.
used
in
part
to reimburse treasury for capital ex¬
penditures and possibly to pay accumulated
of
$9,502,490
on
companys
$7
preferred stock
Registration Statement No. 2-4760, Form
A-2
(5-15-41)
United
SEC
Feb.
on
been
Gas
unable
Corp. filed amendment with
21,
1942,
to
further
agreements
panies
stating that it had
with
extend
the
pur¬
insurance
14
com¬
covering
such
the
lateral
the proposed private sale
insurance companies of
$75,000,000
company's
trust
first
mortgage and col¬
bonds, due 1959.
This
3 V* %
states: "These purchase
agree¬
expired on Feb. 16, 1942.
The cor¬
poration intends .to continue
negotiations
ments
to
the
end
that
'old
privately,
said
agreements
to
tn
the public as
order to
its
by
shall
of
be
the
eithe
•
afore¬
or
otherwise, or offered
circumstances shall dictate
obtain
Amendment
effective date
bonds
renewal
filed
the
pest possible price."
Aug.
5,
1942,
to
defer
'
.
Registration Statement No. 2-5027. Form
A-2.
UNION LIGHT, HEAT AND
POWER COM-
(7-21-42)
Registration
Aug.
effective
5:30
EWT on
p.m.
19, 1942
PANY
Union
gistered
SOUTHWESTERN
.
Southwestern
registration
PUBLIC
Public
statement
SERVICE
Service
with
Co.
the
CO,
filed
SEC
filed
regis-
a
the SEC for 453,691
stock, $1 par
E.
lursuant
Juban
42nd
St.,
York
New
:
to
the
organized
in
ol
Sugar Corp. and cer¬
subsidiaries, is solely a holdng
company
owning
the
securities
ol
everal operating subsidiaries engaged
prinipally
in
the production
of
raw
cane
of
tain
its
Invert
and
the
n
and
blackstrap molasses
Republic and Cuba
Dominican
Underwriters
be
will
Offering—The
named
shares
tnndinsr
City
by
amend-
solution,
to
National
City
of
the
the
remaining
The
aggregate
/
of
the
the
to
tupplied
by
Proceeds,
of
in
436,691
bj
shares.
shares
the
at
bt
win
by
Statement
the
sellins
No.
2-4923
Amendment filed
8
for:
Light,
April 21, 1942, to defei
25,000
shares
and
Power
$100
par
stock
Address—4th
Ohio
&
Main
<
St.,
Co.
and
from
agencies
the
heads
ments
Roosevelt
of
and
In
agreements
flicts
In
and
to
on
submit
to
him
for
their
con¬
in
the
identical letters to the heads
of Government
agencies, the Pres¬
ident said that "too often in recent
there
criticism
has
between
been
cution of the war."
re¬
common
Cincinnati
.
makes
members
of
that
dealing with the many com¬
plex war problems which we face
today, it is unavoidable that there
be wide differences of opinion be¬
tween
agencies
of
the
Federal
opinions sincerely
honestly held.
Ho\yever, too
and
—
often in recent
jfficials
made
of
months, responsible-
the
public
Government
criticism
have
of
other
agencies of the Government; and
made
public
statements
have
based
either
mation
or
inadequate infor¬
on
failure to appreciate
on
all the
aspects of a complex subiect which is only partially with¬
in their
jurisdiction,
,
of
the
normal
to
it is
But
no
,Vv
,
Nor would
out
in
refrain
from
debate
of
would have
nation
more
was
resorting
this
would
they"
more
time
,
business, and the
|
have
good
a
which
which
be harmonized
can
though
of
investigation, or questions
policy which should be adjusted
by conference between the agen-;
by reference to
or
responsible
head
of
me
the
standing,
of equal
not -necessarily
understanding.
Such
especially
when coupled, as they often
are,
with express or implied criticisms
are
a
direct and
serious
handicap to the
tion
the
of
prosecu¬
Officials divert
war.
-—
for
even
tax
any
food
those
on
said, calling for elimination of
"special privileges" by abolishing
the
ment.
Disagreements either as to,
policy should not be publicly aired, but are to be submitted
to me by the
appropriate heads of
the conflicting agencies. The
policy of the Government should be!
fact
or
announced by me, as the responsible head thereof. Disagreements
as
to facts
be
can
resolved, if
essary, by investigations and
veys directed by me.
Will
your
its
industry and providing for mandatory joint income tax returns in
the upper brackets,
Mr. Carey also assailed the
pro-
posed
various
bureaus
and
sending
am
an
sales
sur-
F. J.
divisions
Finley
for
several
Hull
on
Lord
V
Shepard
than half
a
who
century
was
identified with the development of
of each America's railroads, died on Aug.
of the 22 at Roosevelt Hospital,
New
York
British
returned
City, after
a
visit of
weeks
t in
England, conSecretary of State
Aug. 24.
He
was
following
career
is
_
an.
illness of six
74 years old.
summary
from
__
the
of
his
Associated
Press account:
Am-
Wash-
to
Aug. 22 after
with
a
the
identical letter
Halifax,
who
on
"on
on
Shepard Dead
Johnson
more
The
ington
will
poorest of the land."
Halifax, Hull Confer
bassador
charging it
nec-
the
same
amount
Rockefeller as it levies
months.
Viscount
tax,
levy
comply with these instructions.
I
tax-exempt securities, discontinuinS depletion allowances to the oil
you please see to it that
particular department and
ferred
divergencies,
of other officials
as
Govern-
naturally
equal
Mr. Griswold said a sales
cannot make exemptions for
"We should continue the devel-
by
of
v
an
officials
opposed
opment of a system for collecting
a substantial part of the income
a* the source,, from wages, salaries, dividends and interest," he
does not know what to believe oh
from
were
Erwin Griswold, on leave
from Ha™ard University to serve
a sPecia^ consultant for the
and James B. Carey,
Secretary of (the CIO.
thereby "bearing hardest
Federal Government.
public,
Cowdin
who have least to spend."
larly contrary to public policy. It
contributes only to the confusion
involved issue wfien it gets dif¬
ferent stories on successive days
Situation
and
commodities
being done right.
to the responsible head
department
and
agency
the
deal
that that business
assurance
This is inadvisable at any time.
But in times of war it is particu¬
of
tc
kind
good deal
a
Cowdin, Chairman of
m ^he tax situation.
Taft
question to argue it
public.
If
the
agencies
public
;
Cheever
llnb
a
controverted
would
the
con¬
asserted that
the American people are "sick and
tired" of Washington's "buck
asnmn iun s
n
passintT» :
th
t
of
to
income tax
Manufacturers, who
anu
solution
new
contemplated
the Government Finance Commit¬
tee of the National Association of
pro¬
public
about
revenue
The sales tax proposal also was
indorsed on the radio debate
by
of
processes
the
average
of
siderably.
under¬
would
one
the
in
House bill must be increased
attempt to interfere with
use
by every public of-
free
press.
Georgia, that the
revenue
Govern¬
differences
no
giving
exemption
supported a warning by Finance
Chairman Walter F. George
(D.),
state¬
a
J.
honest
exist
to suppress them.
cies
The President's letter follows:
In
an
Mr. Taft's plea for more
fuller
prose¬
,
thus
fact
agencies which
handicap to the
Air
According to
Press, the principal
the House bill, Sena¬
These differences between
agen¬
cies
often deal with imatters of
public
contributes "only to the confusion
of the public" and are "a direct
and serious
chases,
Government; why
to attend to their
settlement.
the
of
the
said, is that it fails to tax
family
$400.
consistency of public
recent report to me on this
a
ficial
public debate of dis¬
either as to fact or
of
on
work a hardship on
lowest income groups can be over¬
come
by exempting
food
pur¬
—
information
depart¬
Aug..21 to
merits
levy would
statements which do
contribute either to the ac¬
the
instructed
in¬
two-thirds of
agency made by high of¬
in press conferences
and
anyone
Federal
agencies
refrain from
policy
all
relative
Forum
United
tor Taft
con¬
or
elsewhere
pose
President
bill, is
very
Where
Privately Orders FOR
new
toward
opinion
Settle Disagreements
tax
withholding taxes
drawback of
de¬
are
ment
Bureau Heads Musi
about
income despite the
satisfactory progress fact it proposes to lower personal
this
objective is being exemptions from $750 to $500 for
made.
But, he points out that the single persons and from $1,500 to
attainment of the objective is be¬
$1,200 for married individuals, as
ing gravely hampered by verbal well as raising the tax rates. The
statements dealing with matters United Press further
reported:
He said objections that a sales
touching more than one depart¬
cerned,
should
date
'
A
native of Saybrook, Conn.,
Shepard began his railroad
career with the Northern Pacific
Railway at St. Paul, Minn., and
Mr.
after
serving
several
other
roads
w?s transferred to New York
with Mr. Hull for more than an ^here he met and married Helen
hour, said they had conversed on Miller Gould, daughter of railroad
variety of subjects, including (P10neer Jay Gould
Halifax, who
had
talked
the
Prime Minister Churchill's visit to
time and energy
Moscow, the situation in the Mid¬
been associated
devoting
they ought to be
fighting the enemy.
dle East and in the Pacific, the In¬
dia question and the cooperation
other executive capacity included
the Missouri
Pacific, the Texas
to
quarrels
with' each
to
other
The
people, confused by these
contradictory voices, are apt to
obtain the false impression
that
the Government
certain
Heat
partments
fidence
A2.V (12-29-41)
Form
the
emphasized:
"The enemy is
constantly at work
trying to undermine public con¬
stockholders
10%
raise
additional
(Mutual) broadcast.
public
ment which should be
reeved
ne
statements
the
on
sales and
American
Elmer
situation, Mr. Davis
amendment
Registration
ington
information.
bt
to
price
a
the
the added
eliminating conflict
among the depart¬
agencies of the Govern¬
written
to
in
House-approved
Davis, Director
Office, tells me that so faf
of this
com¬
will
and
company,
public,
and
tax
adequate to avoid, the "worst kind
of inflation."
Senator Taft made
his proposal in a debate at Wash¬
of
curacy or the
registerec
outstanding
the
infor¬
war
ment in the matter of their
not
York, parent
is the holder oJ
shares
registered
for
accurate
an
large and for
relations.
ficials
dis¬
New
17,000
of
the
47.7%
stock
offered
of
company,
the
mon
ol
Inc.,
agencies,
assuring
sales
$4,000,000,000
confusion
ment
art
owned
are
York,
extent
Bank
former
registered
and
Company of New
at
purpose
1932
of reorganization
plan
and
of
purpose
City
Dominican
Government
1?
amendment
Offering—Approximate date of proposed
public offering is Aug. 1, 1942.
Shares are
issued at - the then net asset value,
plus
1%.
The quoted price as at Julv 10, 1942,
as
pro¬
date
o
firm
Corp.
Business—Company,
by its parent com¬
UNITED
tf
Business—Investment trust
Underwriting—No
Missouri,
.
chase
Address—10
,
offering
aggregate
Sugar
common
months"
effective
a
posed
of
entire
public of such
agreed to purchase were listed
Amendment
dividends
filed
shares
"Chronicle"
846.,
oonds
related equipment
Registration Statement No, 2-5032. Form
A-2.
of
each
the
in
will
and
expenditures
at
of
owned
are
'
Uas
are
Co.
partments
ments and
.
Electric
which
ill of
1953;
capital
the
to
pany, The North American Co. The names
of
the
underwriters, and
the
maximum
company's
fixed
the
receive
sale
in all, who will publicly offer the
2,695,000 shares (no par) common stock,
generating
capital
company
the
141
000,000 toward such purposes from the sale
of 30,000 shares of its common stock.
The
1942
,
be
filed an amendment to its regis¬
statement, naming the underwrit¬
1942
es,
oonds
•
company's
stantial
,
will
company,
SEC
sealed
purchase
'
"
•
the
the
of
Offering—The names of the underwriters
and
the offering price to the public will
be supplied by post-effective amendment.
Proceeds—Net proceeds will become part
of
;
effective,
Rule
}.
capacity
,
become
to
publicly"
poses
curities
•
underwriters
(2-2-42)
),
these
pursuant
Indies
general
a
revenue, Senator Robert A. Taft
of Ohio
(Republican) warned on
Aug. 23 that the $6,271,000,000
public
CORP.
proposing
the coordination of war informa¬
tional activities of all Federal de¬
as
5
coun-
i.-,
tration
contiguous ter-
largely
suburban
and
rural,
in
Maryland, and Interchanges electric energy
with a neighboring utility
system
^
Underwriting—No firm commitment to
who will
from
Union
be,
purchase, the
'
of
of 3
Registration Statement No. 2-4940.
A2
is
,
'
other
slistr&s
ritory,
v
the
of
Co.',
ceeds
Com¬
:
company
to
regis¬
$5,000,000
'
.
portion
and
Offering—The 2,695,000 shares of. com¬
pany's common stock are outstanding and
are owned by its parent, The North Amer¬
principally engaged in the
generation, transmission, distribution, and
sale of electric energy in the District Of
,
and
/
Power
Street,
company
American
tem.
continue
,
Mo.,
Missouri
k
a
series,
due
■■■;■:.*■
i, 1977
Address—Potomac
»
primarily in
supplied by amendment
Aug.
•
Louis,
St.
in
Names
V
engaged
The North
of
adjacent to the company's
hvdroelectric plant
Underwriting—Dillon, Read & Co., New
York, is named the principal underwriter.
1942, to defer
POTOMAC ELECTRIC POWER CO.
Potomac Electric Power Co. filed
tration
'
of
-
les
:
,
!
is
idjacent Missouri counties
the
shares
date.
subsidiary
energy, which it generates and pur;hases
from
its
subsidiaries, serving the
A-2.
.{"•
SUGAR
In
and consistent flow of
mation
to
the
1942, to defer
For More Revenue
another.
one
,
retail
world
13,
Advocates Sales Tax
One of the duties
prescribed for
the Office of War Information
is
a
for
tric
Registration Statement No. 2-5029. Form
(8-1-42)
; '
•
foi
not for
help him along by
mining it themselves?"
the
transmission, distribution and sale of elec¬
are
to
go
bj
auu
statement with
effective
the
■,
American- Co.
pur-
offered
already issued and proceeds will
I
anc
held
costs
Address—60
notes
'
stock,
common
Business—This
by the principal underwriter from
the selling stockholders.
Offering price to
the public will be supplied by'amendment
.
West
<hares of
mort¬
due
Missouri
of
Co.
statement
vto.'
5
chased
.
debt
bonds
companies,
Address—315 N. Twelfth Blvd., St. Louis,
to
of
stock
common
current
mortgage
INDIES
;ration
securitie:
supplied by amendment
Union
Industries
"
share
nent
simplification
Aug. 21,
■
,
issue
registration
shares.
amount
stockshare;
new
$100,016 per
associated
tensified by opponents of our war
Our enemies use this raw
material of discord provided for
them by men who
ought to be
making trouble for the enemy and
and
;
.
•
Corp., Detroit-Mich.,
$5.31
t/N10N ELECTRIC CO. OF MISSOURI
com-.
agreed
a
filed
and collateral
3% 7c'.Interest
a.t
basis,
5
com¬
snar<
a
at
(3-30-40)
WEST
thi
by amend
new
transactions
amendment
an
to
at
one
of
held
of
34,000 shares
of
any
the
anc
to
company's genera
applied to effectuate thi
gage
from.C. ,L.
company
' There is no firm
purchase
filed
share
Amendment filed Aug.
effective date
represents
date.
statement
is
shares
principal underwriter has
finder's fee to American
pay
sold
(3-31-42)
proposed
underwriter
part of
any
from Gladys Lloyd.
?
of
part
any
Lloyd and all
t
the
option, until close of business
1942, to purchase at $1.50 per
all
common
.
21
is
the
31,
share
<
notes
be
refinancing of the company's out-
Southwestern
v
a
repay
first
and
the
to
financial
•liecuve
.
Co.
sale of
will be
Amendment
-
Varnish Works, of Chicago, under
accordance with the company's
principal underwriter. ;
Offering—The principal
o)
wil
.
com¬
by
Co.,
tending funded debt
•
>
•
\
Registration Statement No. 2-4981. Form
"Nu-
by the
sold
added
the
A-2.
.ugar
serial
will
plan of integration
ind
principally
are
trade
products
.he
contract in
formulae and
bonds,
stock,
from
and
rerious
stains,? polish
which
under
are
Paint &
finish,
be
unds
share
ot¬
Registration Statement No. 2-4379. Foror
L
fore¬
underwriter,
at prices to be supplied
Proceeds
of "common stock, $l-par value.
Address—8 South. Michigan Ave., Chicago
linoleum
in
underwriters
nent
106,500
of
5/94ths
a
held
re¬
amendment
preferred
public,
filed
other
,
statement
varnishes,
by
Offering—The
•
"
tion
supplied
le
p.m
the
of
names
25/94ths
of
On
Proceeds—To
construction
th<
receive
substantially all outstanding stock is held
oy
Columbia Gas & Electric Corp.
compie-
involved
Underwriting—Dillon,
Read
York, is tne principal
;he
will
subscribe
share
$2,835,000
and
Upon
New
5:30
unit.
parent
tht
to
units
may
each
;or
outstanding, funded
itself.
'
Registration
each
nolders
simul¬
going, it is expected that the company wil
iav'e no parent
40,006
•
tor
in
5/94ths of
of
companies of
Gas
entire
funding
50,000
subscribe
share
each
section
Act
partial
liquidation ol
Co.; purchase of Pan¬
Light Co., Cimarron Utili¬
debt
&
to
tor
719
effort.
Electrlr
&
and
100,000
of
.
Oas
Offering—Stockholders
Service
Power &
Co.
parent
100,000
_
under
consummation
the company; liquidation
Mexico
Utilities
Co.;
re¬
into
capitalization
Gulf
186,000
'
Co,
Bond & Goodwin,
simplification
Company
the
Texas-New
600,00C
Vallance
Holding
utility
Corp."
mon
actions:
Merger of Community Power &
Light Co. and General Public Utilities, Inc
$874,000
&
Biddle, Whelen & Co.__.__
;
the
company)
Pistell, Wright & Co., Ltd.___.,.
Stroud & Co., Inc.
Graham, Parsons & Co._r_____
;
$2,
pur-
Amounl
Sons, InC,_;
'
proposed financing, the companj
proposes to effectuate the following trans¬
follows:
as
,
.
of
be
to
its
present
Luken*
....
'
integration
of
of
taneously
sinking fund debentures thr
'
{
filed
and
company
electric
Underwi iter— Columbia
ter
engaged
proposed to be consummated
loan
Registration Statement No. 2-5003. Form
A-2. (5-29-42)
In
plan
a
^Business—Steel manufacturer
Proceeds—Payment of bank
are
j
;
.
with the SEC for $2,200,000
4% % 'sinking fund debentures due 1952
Address—Coatesville, Pa.
>;■
j
|
cumula¬
principally in the
generation, transmission, distribution and
sale
of
electricity, serving certain com¬
munities in Texas, New Mexico, Oklahoma,
Louisiana, Arkansas and Arizona.
Undei
j statement
!
6%
in¬
Operating
—
company
amounts
1953,
,
Business—This
5:30
\
a
1,
preferred stock, $100 par value
Address—Dallas, Texas
'
CO.
Steel
annual
1943, to Nov.
85,000 shares of
and
sidiaries
».
due in equal
1,
tive
effective
ly42,,
Nov..
clusive;
,
•:
j ■
Statement
..
notes,
from
...
Business
as
general
as
method
a
its
to
whole is
objectives
and
that
un¬
and
it
does
not know its
job.
feeling is of course
pounced upon, exploited, and inThis
■
•'
'
'
11
i
i
.
i
"
•
/
,
•
K'-
«
'
Railroads
with
as
which
a
he
director
had
or
in
between the American and British
and
troops in Britain.
Texas and Mexico, the Denver and
Rio
Grande
Western
and
the
He
many
also
said
that
there
were
changes in England since his
Pacific
the
New
Orleans,
Western Pacific.
Besides his railroad affiliations
notable
among
which were the greater. he was a director of the Merpart women are taking in replac- chants Fire Assurance Corp. and
ing men in many jobs.
,
the Ampere Bank and Trust Co.
last
visit
a
year
ago,
THE COMMERCIAL & FINANCIAL CHRONICLE
720
WISH
WE
TO
BUY
European Dollar Bonds
(Listed & Unlisted)
Sterling Issues
Firm
Bids
on
Request
Split With Ron-Member Firms Permitted
refinement
or
to
salesmen
KATZ BROS.
Established
BELL
Ass'n
the
TELETYPE NY 1-423
i
(Continued from page 706)
Nevertheless, there is every good
reason to believe that the United
States will buy as much Cuban
is necessary to maintain
economy
at a sat¬
as
Cuban
isfactory
level.
According
to
"Standard and Poors," this con¬
the direc¬
recently issued ordering the
tention is supported by
tive
Commodity
Credit
Corporation,
the
RFC and Defense Supplies
Corporation to purchase any ex¬
portable surplus agricultural com¬
modities with which our Latin
American neighbors may be bur¬
dened.
that
the
Cuba, inasmuch as the island is
an
extremely important link in
Caribbean
of
ring
our
defenses.
the
An indication of this was
clusion in early July
of
con¬
mone¬
a
stabilize the
relationship,
Under
tary pact designed to
peso-dollar
agreement, the
States undertakes to sell
of this
terms
the
United
to the Cuban Government
with payment due 120 days later.
Such outstanding unpaid amounts,
gold
however, are limited to $5,000,000.
"This accommodation is expected
Cuba's monetary problems.
to help
The increase in Cuba's revenues
far this year is a
so
good indica¬
tion of the excellent business con¬
ditions which prevailed at
the be¬
ginning of 1942. Collections from
January through June 20th to¬
talled P.46,432,000, or about P. 11,€00,000 more than in the corre¬
sponding period of 1941, although
the figures are not strictly com¬
parable. The excess over budget¬
ary expenditures in the first six
months of 1942 was ahout P.1,944,000.
This improvement, however,
has not been maintained.
cluded
in
1942
receipts
Not in¬
are
P.3,-
€28,000 proceeds from tax sur¬
charges which are used to pay for
national defense and other emer¬
in
service
gency purposes, and P.2,898,000
special
taxes imposed to
$25,000,000
Export - Import
the
Although / the! External
41/&s,
1977, alone are considered to have
speculative
present
time,
which
of
should
attraction
at
the
other issues, most
selling above par,
are
be held for
in
recent increase
for
brokers, the
com¬
salesmen
income.
of
term
new
Stock
Exchange
To
the most
liberal alowance made by Stock
Exchange
firms,
a
customers
houses, is entirely inadequate.
make $5,000 a year under
sell either $3,000,000
broker must
of
worth
worth
stocks
obtain
To
There
physical impossibility.
a
this
individual investors
volume from
is
$8,000,000
or
bonds.
of
just aren't enough hours in a year
to induce 600 individuals to invest
$5,000 apiece in stocks or 1,600 in¬
dividuals to invest $5,000 apiece in
bonds. Even if this were possible,
however, the prospect of a $5,000
income would not be suffi¬
gross
cient inducement to attract men of
suitable abilities. Securities sales¬
cannot be
for
expected to work
commission of 0.2%.
a
But there
of ability and
are men
experience wiling and anxious to
securities listed
sell
Exchange
fered
These
the salesmen of the
unlisted
2,000
they are of¬
commission.
adequate
men are
the Stock
on
as
as soon
an
who
houses
members of the N.A.S.D.
the
handicap
they
that
are
Despite
now
are
barred from selling the securities
of
of
many
country's
the
best
because
they
are
listed on the Stock Exchange, they
are able to make a living selling
corporations
unlisted
securities
investors.
posals
these
individual
to
There have been pro¬
.
enlist
to
services
the
Exchange commissions; but,
commission
the
of
salesmen by splitting Stock
is
^sihee
not
large
enough to split, the plan as offered
is
feasible.
not
How
be induced to sell
fraction of
can
a
security for
a
a
the
public
only
for
way
obtain
to
securities
de¬
a
insure
and
a
liquid market is to pay salesmen
to develop it.
As Henry J. Kaiser
revolutionized
the
shipbuilding
industry by breaking away from
old, accepted practices, the Stock
Exchange must throw out its anti¬
quated ideas of commission rates.
It must establish
a
minimum
mission of at least 2%
not
only enable its
to make
one's
a
com¬
which will
own
salesmen
living without inducing
to
to
overtrade
disadvantage
but
every
will
also
provide a sufficiently large com¬
mission to split with accredited
unlisted
The result will
dealers.
be increased volume
which cannot
now
as
the orders,
be economical¬
ly solicited, flow in from salesmen
firms.
Result Of Treasury
Bill Offering
of
market.
follows:
bid
for at
of
73%
of the
the low price
amount
was
ac¬
cented.
There
was a
maturity of
lar issue of bills
amount of
on
simi¬
Aug. 26»in the
$250,986,000.
a
Ft. Pitt
ad¬
Requirements
Got to N. Y. & Chicago
The Board of Governors
Federal
of the
Ernest
the
A.
New
shortly become
the
New
York
on
serve
deposits for central re¬
city member banks in New
York
and
Chicago, the reduction
becoming effective as of the open¬
ing of business on Aug. 20, the
Reserve
Board's
announcement
This action is in accordance
with the Act of July 7,
1942, which
gave to the Board the power to
change reserve requirements of
banks in
member
without
cities.
The
peared
Our
in
This
central
Teletype
HAnover 2-8780
Y.
N.
1-1S07
(Continued from first page)
.
•»
In all cities, the requirement
Chances
Act
of July
issue
by
move
.
of
of
excess
To
The 26%
Chicago.
intends
board
firm grip
a
to maintain the over-all level of interest rates.
(3)
But
always
authorities
the
steps that might
level,
demanded.
.
.
.
The Federal Reserve again has shown its determination
(2)
for
the interest
on
York and Chicago
the
ease
.
.
they
will
not
take
one
time,
revealed
of
control
with
along
money
the demand for all
goes
.
situation too much at
have
Government
the
price
bond
to avert inflation.
moves
.
.
.
INSIDE
THE
MARKET
To indicate the
ments
eral
funds
city banks before reserve require¬
and Chicago, borrowings of Fed¬
the New York Federal Reserve Bank hit a peak of
"squeeze"
on
lowered in New York
were
at
$90,000,000
day
one
recently.
.
That was
.
.
the highest level
shown in years,
Regarding the Reserve Board's
Washings
advices Aug. 18 had the fol¬
action Associated Press,
brought back memories of the days when borrowings
by banks from the Reserve institutions was the usual and
the exceptional thing.
.
j
Interest rate on "Federal fund"
of funds
not
.
ton
borrowing is lU of 1%..
lowing to say:
Reserve is % of 1%.
taken
keep
to
banks and of banks generally, only as changes are
re¬
effect since Nov. 1.
the
said
.
re¬
on
"Officials
.
then:
up
The
rate situation, but to ease requirements of New
16,
demand deposits for
Central Reserve Cities, which is
the statutory limit, had been in
quirement
sum
(1)
ap¬
in New
banks
member
.
.
.
And then, if conditions warrant (which they probably will in the
future) the rates of all banks may be lowered-.
.
.
.
the
$400,000,000
.
will run along as is for a while
then, when the Chicago and New York banks get into a tight spot
again, the rates will be cut again.
Maybe'to 22%.
And
then, a third step might bring them down to 20%. .
.
.
reserve
this
of
text
.
:
.
the requirement rate
are
and
require¬
changing
our
and
been
Y. Security Dealers Ass'n
St., N.Y.
Reporter On "Governments"
against time deposits is 6%,
Board will
result it is understood in adding
York
Members N.
25 Broad
against demand deposits is 14%,
200.
serves
M. S.W1EN&CO.
partner in
Exchange
a
Stock
Blauner, Simons & Co., 25
Broad Street, New York City.
ments for member banks in other
about
Bought—Sold—Quoted
firm of
System
an¬
Aug. 18 a reduction in
demand
page
Mexican External
and Internal Loans
Linburn, member of
Stock Exchange,
will
requirements to 24%, from
existing rate of 26%, of net
cities
Convertible Preferred
Reserve
nounced
said.
Penn. Central Airlines
York
reserve
the
Bridge Works
Common & 6s of 50
Mexican Interest Arrears Cfs.
action
the
because
lendable
RFC
and
notes
of
discount bill purchases by
.
$662,000,000 maturing Treasury
to be paid off on respective matur¬
that
are
Oct.
and
by
financial community
took
15,
ity
ters had fallen to
surprise. ... No - point in denying that this writer anticipated a
refunding on simple, straight logical basis that refunding would
be easy and Morgenthau wouldn't want to use up $662,000,000 un¬
necessarily! at this time.
Purchasers of RFC's and Treasury 2s
than
$3,500,000,000
such
of
idle
.
didn't
.
,
.
to
funds.
"Behind the action
an
was
im¬
country's
in New
York and Chicago because of their
position as financial centers. Now,
however, the nation's principal
business is making weapons for
war, and Treasury checks by the
tended to pile
billions of dollars
factories
all
fidence
to
much
shortest-term notes, those due especially in the one
insurance
Life
company
As
a
funds, while
have pro¬
of
course.
and two-year
investments in Governments now total
.
.
58%
1941
It's mostly the registered 2lk$,
.
Figures on allotments of certificates of indebtedness in April,
and August reveal that wider and wider distribution of cer¬
June
tificates
is
being attained and institutional investors outside of the
portionately less.
responding in greater and greater volume.
Rise in interest rate,
,
"The action, in the opinion of
officials, in no way affected the
interest of the depositors.
Even
the revised reserve requirement in
New York and Chicago is higher
than the rest of the country.
In
other
.
buyers of
.
big Eastern cities
ten
.
...
New York and Chicago
the
-
Large banks in other cities reported fairly heavy
period of only $502,000,000.
women
their usual sup¬
investment
tificates since revision in their reserve requirements.
maturity range.
to the
as
.
buying discount bills and cer¬
been
banks have
of thought
>
schools
.
and
men
than
of
York
New
.
.
going out to
the country.
more
"street," there are two
of that plan.
long-term wisdom
around $1,800,000,000 for 1942 to date, representing more than
of this year's purchases and comparing with purchases in same
elsewhere
banks
.
concerning his plans.
the
In
up
result,
generally have
over
ply
and
are
.
.
In peacetime, the
money
.
lose
anything, for this has been a riskless wager all along.
Didn't gain anything either.
.
Morgenthau apparently wanted
make sure "we" didn't start guessing with any degree of con¬
portant change in the flow of the
by the
15
on
'
.
.
securities
Sept.
Rate
.
.
funds of banks in those two cen¬
$150,000,000, the
lowest figure, so far as could be
recalled,
since the first« World
War.
As recently as 1939, New
York and Chicago banks had more
dates
.
.
announcement
Treasury
had
.
.
.
naturally, has been big factor.
So has
publicity and so has been redistribution of reserves in recent
months.
But here are some impressive figures:
.
the
.
.
.
.
.
York
New
June
$833,000,000 of the April issue, $731,000,000 of
of the August issue.
Boston took
$90,000,000 of June's, $78,000,000 of Au¬
April's,
of
.
.
took
issue, $698,000,000
$104,000,000
gust's.
.
.
notice
Now
Reserve
Federal
are
been
this
contrast:
San
Francisco
took
$64,000,000
of
April's, $102,000,000 of June's, $122,000,000 of August's. . .
Kansas
20%, and in all other communities City took $23,000,000, $43,000,000 and $48,000,000, respectively.
took $186,000,000, $246,000,000 and $278,000,000, respec¬
it is 14%.
In the case of time dr Chicago
.
savings deposits, the rate is a uni¬
tively.,
form 6%.
James A.
was
for__~_..$891,602,000
Total accepted
352,883,000
Range of accepted bids:
High, 99.925 — Eauivalent rate
approximately 0.297%.
Low, 99.906 — Equivalent rate
approximately 0.372%.
Average price, 99.907 — Equiva¬
lent rate approximately 0.369%.
total
be
cities, the reserve requirement is
■
James Brown Dies
Total applied
A
will
Blauner, Simons To Admit
—
000.
Brown, Vice-President
"Since war financing dominates
Morgenthau, Jr., announced on of Clement A. Evans & Co., Inc.,
investment
field, the New
Aug. 24 that the tenders for $350,- Atlanta, Ga., died at the age of the
Mr. Brown began his York and Chicago banks are ex¬
000,000, or thereabouts, of 91-day forty-six.
Treasury bills dated Aug. 26 and investment career in Atlanta as pected to use a substantial portion
Vice-President
of
maturing Nov. 25, which were of¬ a
the Trust of the newly released funds to buy
fered on Aug. 21, were opened on Company
of
securities'.
However,
Georgia,
leaving Treasury
there to become President of the Federal Reserve officials said, it
Aug. 24 at the Federal Reserve
Banks.
The details of this issue Equitable Company with which he would not be accurate to say that
as
Butler
.
Secretary of the Treasury Henry
are
R.
to
capable
the
—
war.
The
mand
staff
into
nation's money occasioned
of it would be insufficient?
of both member and non-member
;.,i,
adequate
an
of
man
commission when all
a
customers
Bank loan.
any
but
funds
Reserve
most
men
United
States Government will collabo¬
rate
to the fullest
extent with
obvious
is
It
idle
mission rates, the compensation of
The Bond Selesfor
the
the
be
customers
sugar
practices
past
securities s a 1 e s m e n<»—
paid just as vacuum
cleaner, automobile or insurance
salesmen are paid.
But even with
HA 2-2772
Exchange PI., N.Y.
40
of
bring
Naturally,
must
1920
York Security Dealers
New
Members
Andrew
mitted
partnership in Butler,
Herrick
&
Marshall, 30 Broad
By W. TRUSLOW HYDE, JR.
Street, New York City, members
Maintaining a constant demand for the billions of dollars of of the New York Stock Exchange,
American securities has become a real selling job and is no longer on Sept. 1.
In the past Mr. Butler
merely a social affair.
was a limited partner in the firm.
The need of the securities market does not call for a rejuvenation
And
and
All
Butler, Hernck To Admit
Stock Exck Commission Rates Should Be Raised
South American
Thursday, August 27, 1942
associated until 1941 when he
joined Clement A. Evans & Co.
this
Attractive Situations
The current situation in Phila¬
delphia Reading Coal & Iron Co.
5s of 1973, certificates of
deposit,
Rio
7s of
1949. and in Denver &
Grande Western 4s of 1936
offers
attractive
cording
to
possibilities,
circular
the order.
Chi¬
the
Federal
Reserve
System
have
about $2,000,000,000 of free funds,
cago
and
the purpose of
was
Outside of New York and
ac¬
the
member
banks
William F.
ber
of
the
Stafford, Sr., mem¬
New
York
Stock
Ex¬
issued
whom
copies
tained upon request..
may
,
be
,
,
ob¬
;
■
Stafford
had been active in Wall
Street for about 38 years.
it
so
goes.
....
.
Obviously, the wider distribution is
■'''v:\
'
" V:"
.
"
a
.
7..' .'"''V
RATIO
BANK
Authoritative
out
of
is that soon several
authorities will make ,announcemgnts to the effect that
capital-asset ratio on longer, is sacrosanct and banks
may ignore it when they're in the market for Government bonds.
Announcements expected from various officials and then ond single
report
Washington
monetary
the one-to-ten
.
.
story
may
Chief
Morgenthau
come
from
out
FDIC
Chairman
Crowley
Treasury
or
Federal Reserve Board Chairman Eccles.
or
.
.
.
,
The fact is this ratio can't be maintained if banks are going
to
buy
as
many
Government
bonds
as
they
must
during
period of low stock prices and unpopular bank stocks.
The
hold
Dead
y Richmond took $40,000,000, $43,000,000 and $50,000,-
.
:J.
of
by change, died at Huntington Hos¬
Schoonover, deWillers & Co., Inc.,
120 Broadway, New York City, pital after suffering a stroke. Mr.
from
And
fact.
technically called excess reserves.
Wm. Stafford, Sr.
.V
...
fact
this
*
.
is, the member banks of the Reserve System already
of Governments and they're going to hold
$26,000,000,000
another
$30,000,000,000 or so a year from now. . . . Their assets are
Their capital is staying just about where it
skyrocketing.
was
.
a
.
.
back.
while
.
or
the
.
.
decade of the '30s—must go
You
can
can
be
maintained
Either the banks have to stop buying
ratio—so treasured by the authorities in the
under those conditions.
Governments
No one-to-ten ratio
...
.
by the boards.
.
.
.
supply the answer as to which one wiR go.
.
No authority
will scold you for passing it in these times.
it,
.
So if
*
.
you've been worrying about your ratio, you can- forget
.
.
„
.
,
@FedFRASER