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AUG 2 9 1947
In 2 Sections-Section
ESTABLISHED 1S39
2
tf/l
Chronicle
••
Convention Number
New
York, N. Y., Thursday, August 28,
1947
•
,
'v
Price 30 Cents a Copy
THE COMMERCIAL and FINANCIAL CHRONICLE
2
INTER-CITY
Thursday, August 28,
1947
SERVICE
WIRE
FAST AND EFFICIENT SERVICE MAINTAINED BETWEEN THESE CITIES
IN BUFFALO
IN PITTSBURGH
trubee, collins & co.
young & co., inc.
WESTERN NEW YORK
SECURITIES
WESTERN
IN DETROIT
IN CLEVELAND
mercier, Mcdowell
gottron, russell & co.
& dolphyn
PENNSYLVANIA
OHIO SECURITIES
SECURITIES
MICHIGAN SECURITIES
IN NEW YORK CITY
troster, currie & summers
OVER THE COUNTER SECURITIES
IN YOUNGSTOWN
IN ST. LOUIS
IN CHICAGO
IN KANSAS CITY, MO.
fusz-schmelzle & co.
langill & co.
b.c. christopher & co.
MISSOURI SECURITIES
ILLINOIS SECURITIES
MISSOURI SECURITIES
,
butler, wick & co.
OHIO
SECURITIES
Inquiries and orders invited
In
providing quotation facilities for the Over the
-
the last 34
years,
-
Counter Market
the National Quotation Bureau has
constantly- operated
principle of strict impartiality towards all of its subscribers—whether
large
The small organization receives the
as
the
large house with
the Bureau
are
open on an
The Bureau
industry
as a
nation
a
was
ness—this has been
a
an
on
same
service,
rates and
wide branch office
system.
equal basis
founded
whole, with
-
the
to
on
or
the
small.
listing privileges
The facilities of
all subscribers meeting its
requirements.
principle of serving the Over-the-Counter
impartial attitude towards all members of the busi¬
guiding policy of the National Quotation Bureau.
NATIONAL QUOTATION BUREAU
INCORPORATED
Chicago
during
NEW YORK
san francisco
Convention
THE COMMERCIAL and FINANCIAL
Number
3
CHRONICLE
I
Council
N. S. T. A. Officers and Executive
9 4 8
FIRST
PRESIDENT
,
PRESIDENT
FIRST
VICE-PRESIDENT
SECRETARY
VICE-PRESIDENT
SECRETARY
R.
Victor
R.
Sincere
(ft
Mosley
Co., Inc.,
Philadelphia
Co.,
Edward
Paul Yarrow
Stroud (ft
Welch
H.
Edward
Clement, Curtis &
Co., Chicago
Chicago
?
H.
Sincere & Co.,
"N^
Chicago
Mosley
Victor
Stroud
Welch
(ft
Paul Yarrow
Co., Inc.,
Clement, Curtis &
Co., Chicago
Philadelphia
TREASURER
SECOND
SECOND
VICE-PRESIDENT
VICE-PRESIDENT
TREASURER
James
Paul
*■
York
Ernest Blum
Clair S. Hall
Rauscher, Pierce <ft
Bankers Bond Co.,
Clair S. Hall & Co.
Louisville
Dallas
Brush, Slocumb dt
Co., San
Moreland
Edw. E. Parsons,
Wm. J.
'
Co.,
Jr.
Mericka (ft
Cleveland
Francisco
Thomas Crah.m
Bankers Bond Co.,
Louisville
Jack E Jones
Hartley Rogers <B
Co., Seattle
Cincinnati
,n
I.
Moreland & Co.,
Detroit
Boston
Securities
Corp., Nashville
Thomas Graham
Paul
Duffy
Webber,
Jackson <ft Curtis,
Co.,
Detroit
John L. Canavan
Co.,
R.
Equitable
Jos. McManus & Co.,
New
Paine,
Moreland
M or eland &
H. Frank Burkholder
Michael J. Heaney
I.
Lawrence
S. Pulliam
Weedf* d Co., Lot
Angeles
M.
O'Neill
Edw. E. Parsons,
iw
Bros, (ft Boyce,
j
Jr.,
Mericka
J.MertcRa
Jesse A. Sanders, Jr.,
Sanders <ft Newsom.
THE COMMERCIAL and FINANCIAL CHRONICLE
■
Thursday, August
'!
■I
I
i
■
.
'
'
.
"i
'
'
,
Past
Presidents
1945-1946
1944-1945
Thomas Graham
Bankers Bond
Edw. E. Parsons,
Co.,
Wm.
Louisville
1 ]
of the
N. S. T. A
1942-1944
Jr.
Wm.
J. Mericha &
1941-1942
Perry Brown
Joseph W. Sener
Newman, Brown &
Co., New Orleans
Co., Inc., Cleveland
1939-1940
Edward
Mackubin, Legg <£
Co., Baltimore
Edward
D.
D.
Jones
Jones
Co., St. Louis
1941-1942
1940-1941
They
all call
He's
He was
a
him<(Vic,"
lives in New
He once
of July.
Jersey,
He 'S
Herbert
H,
Blizzard
Hess, Blizzard <fi Co.,
Philadelphia
HE
bring him
His
Comp'ny,
1938-1939
Willis
M.
Summers
Troster, Currie <£
Summers, N. Y. C.
OnCE
R.
Arthur
E.
Farrell
Byllesby &
Inc., Chicago
head of the traders
Thomas
A.
Akin
Deceased
Mosley
SO it's President again
J
Of NSTA!
1936-1937
J.
M.
Co.,
Victor
V.
1936-1938
H.
folks think he's grand,
They insisted he stay,
Trust issues
He'll trade anywhere.
Captain
He's much in demand.
specialty there,
Equipment
a
Innsta
renown!
works for Stroud
made
'
liked very well,
All
his two pretty
daughters
Will
Army, we're told,
Both handsome and bold.
Collingswood is the town,
There
joined Union League..
In the
borr\ in Landsdown,
The seventeenth
He
He
very swell guy!
1935-1936
Gentry Daggy
Henry J. Arnold
H.
M.
Byllesby
Co., Philadelphia
1934-1935
Clair
,
S.
Hall
Cincinnati
Co.,
W. W. Cruttenden
Cruttenden & Co.,
Chicago
<fi
23
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
Thanks loi the Cooperation!
We have often
heard it said that
our
industry is either
"a feast
Boston Is Glad What
You Came!
famine"— and with this in mind your Advertising Committee Dlanned
With Herbert Seibert the Editor and Publisher of
&
Financial Chronicle,
a Post-Convention issue which we herewith
the™ Commercial
their
It
a
surprising degree and
our
Traders
indeed
ton
NSTA
themselves
due in a large degree to the
membership is taking a much greater
interest in our work and such support is naturally
accepted by us with much encouragement.
We are pleased to extend our appreciation to
Donald E. Summerell, Vice-Chairman, Wagenseller & Durst, Inc., Los Angeles; Thomas Euper,
Cohu & Torrey, Los Angeles, and Larry Pulliam,
Weeden & Company, Los Angeles, for their ef¬
forts in producing the largest percentage of re¬
newals. Recognition with thanks must be given
to our Boston Aifiliate with Harry A. Madary,
Smith
the
our
Vice-Chairman, Geyer & Company, and Sumner
R. Wolley, Coffin & Burr, Inc., demonstrating the second largest pro¬
ducers of ads, when considering Boston was the host of the Conven¬
tion and the entire financial fraternity of this great city was called
upon in many ways to insure a successful convention.
We hail our
Boston affiliate for the most marvelous hospitality and for present¬
ing one of the most successful conventions of all times. We, the ad¬
vertising committee, further recognize their most unselfish coopera¬
tion and support by using our post-Convention issue as their only
advertising medium. We are in-<^
deed very proud of the Boston
Security Traders Association!
'
Hall, of
Clair S. Hall & Co., Cincinnati;
Jack A. Hawley, Equitable Securi¬
ties Corp., New Orleans, La., and
Bert Horning of Stifel Nicolaus, St.
Louis, Mo., together with Frank
Loveland
of
Field, Richards &
Co., Cincinnati, Ohio; Harold R.
Chapel, McDonald, Moore & Co.,
I
drab
the
<
that
noticed
—
gray
which
covered
our
State
dome
House
been
the
has
replaced
with
the
during
war
years
tra¬
ditional
of
leaf,
gold
i
n
d i
c a
that
Sumner
the
land,
still
It
Wolley
"The
sticks
to
certainly
Chambers
"You
R.
of
Hub of the
hot,
Nation"
but
here
was
iv.
turned from
Detroit; Lawrence N. Marr, of E.
Co., Chicago; Kermit
of Allison, Williams &
Minneapolis, extended much
B. Sorum
Co.,
securing
in
assistance
R.
Association
in
interest
are
pleased
obtained.
were
our
the
many
the
he has accom¬
affiliate here—
York Security Traders
New
Association
—
at
was
all
times
to assist your Chairman.
My personal thanks to you, Les!
eager
overlook the
We do not want to
balance of
our
who
men
local affiliate chair¬
most
were
helpful
by
of the
program of the National Adver¬
tising Committee. Much business
resulted through their work and
informing
we
salute
their
mefnbers
our
them
as
Presidents of
affiliates.
local
assisted
mercial & Financial Chronicle."
contracts
wish
that
our
The
Boston
Securities
Traders
Association planned
through every detail of the Convention in
faultless manner.
Every one in attendance carried back
home with them a new understanding of New England's
hospitality and Yankee ingenuity. I present to our hosts
for 1948—The Bond Club of Dallas—a challenge to sur¬
Tuesday
Harvard
R.
V.
a
vard campus
as
productive
the
staff
of the
Chron¬
on
party at the Pad¬
too of the clubhouse
Suffolk
Downs
Wednesday there was a
Race
special
quota¬
much enliv¬
ened by the candid remarks of Vic
Mosley, our President. There seems
to be quite a difference of opinion
d'scusicn
on
newspaper
tions which was very
Mosley, President
about
quotations
Wednesday afternoon and even¬
ing constituted the big day of the
Convention for our visitors. Hu¬
bert N. Bernard of the Entertain¬
Committee, his official aide
Mr. Wil¬
liams' unofficial aide, Mrs. Sally
ment
T. Edmund Williams and
absolutely outdid them¬
a
cruise and clam
Murphy
Traders Association
throughout the
country.
with
selves
Believe it or not, they even
bake.
had
fire-boat
a
and
put
on
an
exhibition for the National Trad¬
ers.
with
recommended in view of the
in¬
Local
Wilmer
members
Arthur Warner & Co. threw
nearby
at
mean
you
Track.
Chairmen:
(Baker, Watts
Affiliate
Butler
J. Mo.); Lawrence S. Pulliam (Wee¬
& den & Co., Los Angeles, Calif.);
creasing interest the entire mem¬
William O. Alden (O'Neal, Alden
bership are demonstrating and Co., Baltimore, Md.); Sumner R. & Co., Louisville, Ky.); Robert H.
Wolley (Coffin & Burr, Inc., Bos¬
Commercial & Financial
through financial contacts many
Jordan (Mid-South Securities Co.,
ton, Mass.); L. N. Marr (E. H.
icle, we extend our greetings; and lines of industry should be dis¬ Rollins &
Sons, Chicago, 111.); Memphis, Tenn.); Matthew B. Pilto
the
outstanding
personality, played in yearbook issues. And
Franklin
O.
Loveland
(West- cher (Mid-South Securities Co.,
who for the past several years now may we sign off with "Hats
Tenn.);
Joseph
P.
heimer & Co., Cincinnati, Ohio); Nashville,
has been responsible for the great¬ off to Boston!"
Minetree (Steiner Rouse & Co.,
Jay L. Quigley (Quigley & Co.,
est source of income to our NSTA
HAROLD B. SMITH, Chairman
New
Orleans, La.); Michael J.
Cleveland, Ohio); Leonard O. RitNSTA Advertising Committee
treasury, Herbert D. Seibert, Edi¬
ter
(Paine,- Webber, Jackson & Heaney (Joseph McManus & Co.,
tor and Publisher of th^ "Com¬
New York, N. Y.); Frederick S.
Collin, Norton & Co., New
Curtis, Connecticut); Judson S.
mercial
& Financial
Chronicle"
York 5, New York.
Fischer (H. N. Nash & Co., Phila¬
and a fellow member, we extend
James (James & Stayart Co., Dal¬
delphia, Pa.); Charles N. Fisher
Vice-Chairmen: Leslie Barbier
our
most
sincere
and
grateful
las, Texas); Bernard F. Kennedy (Singer, Deane & Scribner, Pitts¬
(G. A. Saxton & Co., Inc., New
thanks for his cooperation.
burgh, Pa); John Galbraith (John
York 5, N. Y.); Jack A. Hawley (Bosworth Sullivan & Co., Den¬
Galbraith & Co., Portland, Ore.);
To our advertisers who made
ver,
Colo.); Harold R. - Chapel Jerome ' F.
Tegeler
(Dempsey(Equitable Securities Corp., New
possible this effort, we feel greatly
(McDonald-Moore & Co., Detroit, Tegeler & Co., St. Louis, Mo.);
indebted and your cooperation is Orleans, La.); Harry A. Madary
Elmer L. Weir (Brush, Slocumb
Mich.); Thomas S. Pierce (C. C.
& Co., Boston, Mass.);
uppermost in the minds of 3,700 (Geyer
Pierce Corp., St. Petersburg, Fla.); & Co., San Francisco, Calif.); An¬
members of the NSTA.
Clair S. Hall (Clair S. Hall & Co.,
drew A. Jordan
(Jordan & Co.,
J. F. Settle (J. H. Hilsman & Co.,
Cincinnati, Ohio); Bert Horning
Seattle, Wash.); Keating L. Sim¬
We, the NSTA advertising com¬
Atlanta, Ga.); Lawrence Davis ons
(James
Connor & Co.;
mittee, strongly recommend and (Stifel, Nicolaus & Co., Inc., St.
Charleston, S. C.), and Kermit B
urge ,the newly appointed com¬ Louis, Mo.), and Donald E. Sum¬ (McClung & Knickerbocker, Hous¬
Sorum
(Allison - Williams
Co.,
mittee to make every effort to ob¬
Texas); Eldridge Robinson
merell (Wagonseller & Durst, Inc., ton,
Minneapolis, Minn.).
tain
commercial advertising for
(Baum & Co., Inc., Kansas City,
Los Angeles, Calif.).
such future undertakings. This is
To
fellow,
novel cocktail
dock Club
and it is our
real
out-of-
the
of
worth seeing?" When
don't mean
old
campus,
Yard."
entire membership
our
historical
One
seen to
revived he said, "You
good year in store for 1948.
National Security
one
was
asked him, "Is the Har¬
towners
recognize these men in the final
analysis
act've
an
to
graduate
when
faint
20% increase in membership over last year.
With the aid of the newly elected officers and staff for next year, and
a continuation of the wholehearted support of our membership, I am sure
has
trip
sightseeing
a
a
corporations make
pleasant reading today.
The NSTA might well be
likened to a large corporation, with 28 branches (affili¬
ates) in nearly every large city and a personnel con¬
sisting of 3,600 individuals devoted, I believe, to capacity
R. V. Mosley
production of our products—"Good Will" to each other
and the maintenance of "High Standards" toward the investing public.
We can report a substantial growth over preceding years and our cur¬
rent financial condition, though humble, is sufficient for our immediate
needs.
The Association has added several new affiliates and shows a
Security Traders Association
rather
was
day with scheduled visits to vari¬
ous
plants, golf tournaments and
J.
the Boston Convention.
Annual reports of most American
pass
grateful-
co-workers.
took a
Monday, the ladies
spots to the north of Boston.
and carried
appreciation is extended to Messrs.
Beck, Murphy, Riley and Strick-J
land of the Commercial & Finan¬
cial Chronicle for their work in
securing
game.
they had a splendid time.
to those
the National
Our sincere thanks and
reelings
Security Traders Association, through its President, extends
ever increasing circle of friends and sincere appreciation
firms, services and financial publications that have so willingly
in our endeavors. Especially, do we acknowledge the aid, both
editorially and financially, received through the "Com¬
work and
tasks
ball game
Boston won) and about
half the crowd went to the ball
(which
best wishes to its
to state results
Leslie Barbier of
our own
Association pro¬
Boston
The National
G, A.
plished in
the
Monday
On
W.
Saxton & Co., Inc., N. Y.,
who has received much praise for
evening there was a
pleasant cocktail party and
then
trip to Hingham and viewed as¬
sorted scenery. From all reports,
O'Neal, Alden & Co.,
Louisville, Ky. informed us he
would do everything possible to
we
this sup¬
plement to the "Chronicle."
very
P,residential
0. Alden of
arouse
Commis¬
Boston, and Reid Biggs of Hampton Roads Sanitary District
sion. Both of these addresses appear in subsequent pages of
WOLLEY, President
Boston Securities Traders
vided 250 tickets to the
contracts
through their local affiliates.
Lloyd
He was introduced by
were
Vice-Chairmen Clair S.
H. Rollins &
trip to Europe for the United
a
fine talk on the Russian situation and
And her excellent speech of welcome
given by Michael T. Kelleher, President of the Boston Chamber
Monday afternoon, the Municipal Forum was held.
Speakers
Robert Cutler, President of the Old Colony Trust Company of
say,
that
week!"
SUMNER
of more companies than
remember, who recently re-
can
of Commerce.
all
as
would
been
have
<«,„»
people
Waring and he gave a very
what we should do about it.
Standard.
Gold
the
unofficial fes¬
a
States Government.
may
gal cpu/hafa
in
was
i
i„k„
o n
come
what
Commerce
should
most
an
ti
with
Sinclair Weeks, Director
coat
carat
18
about 7:30 p.m. the
reception and cocktail party.
The feature of this party was the showing of
motion pictures of past conventions and a scenic
film on the beauties of New England.
This was
ably managed by Burt Whitcomb, of Blyth & Co.,
our photographer extraordinary.
Monday morning the Past Officers' Breakfast
was
held and the National Committee Meeting.
The Official Welcoming Luncheon was at 1 p.m.
A very interesting welcoming talk was given by
tivities began
yoitf-
hope
started to
delegates
.little late and
to
utmost.
I
convention
arrive at the Hotel
Statler, which was Convention headquarters, on
Sunday afternoon.
Special trains pulled in a
The
the
at
Convention.
Association
Convention, held in Boston Aug.
reports was. known as the most successful
in the Association's history.
sincerely hope
a 11
enjoyed
mittee this year was
Harold B.
10-14, by all
privilege
a
treasury will receive more than its expenditures
for the year.
The success attained by your Com¬
fact that
and
Association
guests:
was
L. SIIEA, Jr.
Boston Securities Traders
The National Security Traders
National
the
JOHN
Chairman, Publicity Committee,
and a
pleasure to Welcome so many of our
guests in Bos-
for many of us; hut in spite of such obstacles the
members of the NSTA participated in this un¬
dertaking to
of
Members
Security
as a yardstick
conditions this year resulted in smaller profits
as
the
To
Last year's results could not be used
present to you.
They Did at the Convention
By
or
There was a historian aboard
a
loud sneaker who told
stories about spots of
local inter¬
cruised around Boston
Harbor for about two hours. This
est
we
as
life saver because
has
been known to vary, changed from
the
cooler weather of the first
two days of the convention to one
of the hottest days on record in
this vicinity. The boat landed at
Pemberton where all disembarked.
Tents had been set up. There was
an Inn there large enough to ac¬
commodate
all
of those
who
wished to buy what Traders gen¬
erally wish to buy. At the Inn,
mcidentally. there were two bars.
Those Traders who shopped around
for the best price found they could
boat
the
trip
save
20 cents a
drink by going to
smaller bar off the
the
The
at
was a
climate in Boston, which
difference
the
main
was
ballroom.
drinks
that
bar were
subject to
20% amusement tax.
a genuine old-fash¬
England clam bake
(Continued on page 17)
About
ioned
6:30
New
THE COMMERCIAL and FINANCIAL CHRONICLE
6
Investor
Confidence
The
hospitality which you have
me fully justifies the
great
New
England
traditions.
Not only am I gratified personally
a
sign
time
it
see
Asserting "the old ringside atmosphere that clouded
as
can
a
of
frien d
s
and
under¬
h i p
standing
t
discuss
common
prob¬
There
old
side
M. Hanrahan
and
that
on
spirit
taking
part I think we
is
don't
we
every
he is proved innocent.
fidence,
And
part, it is becoming in¬
creasingly more evident that you
longer believe the Commission
be
or
constituted
heartless board of
Hand-in-Hand
Cooperation
know
an
the practical
upon
have
learned
that
we
can
that
We
They
can
deny
that
referee
any
it
is
we
extremely
and,
inadvertent
heard.
into
of
I
that this is accounted for
address
by Commissioner
Hanrahan prepared for delivery at
by
the
the
the Annual Convention of the Na¬
tional Security Traders Associa¬
general
since
game
tions
are
1933.
that
1947.
service
and
few
morale
of
to
you
belief
Commis¬
of
The
sharper,
the
se¬
thief, the
are
now
by
They come, of
new
genera¬
taxes, we know
they will always be with us, but
as
time goes on they find life
harder and their professional en¬
vironment less congenial.
I be¬
that
associations
like
assisted
have
own
will
and
your
con¬
tinue to assist in large measure in
their removal from the field.
a
Not
Be
We
can
never
Relaxed
afford
to
relax
diligence in investigating vio¬
and
enjoining them or
bringing
them
to
prosecution.
our
lations
chiefly
ments.
To
of
in
viola¬
our
the
sidered
not
our
as
industry
are con¬
much evidence
so
of
they are indications
objective has not
main
beep accomplished; they are glar¬
ing signs that members of the in¬
dustry are as yet unable to abide
by the rules of the game and are
incapable of exercising a direct¬
ing,
restraining,
influence
and
their
over
governing
own
person¬
nel.
If
they
tained it,
have
not
not
at¬
persons engaged in the
securities business approach pro¬
fessional standards, and as profes¬
sionals or quasi-prof essionals must
be
judged by standards worthy of
status.
It is not consistent
with the public interest to
judge
needs be.
as
business
your
"hucksters," they
should
not
investors upon the professionals in
your field is the natural result of
public bewilderment in the field
finance, a bewilderment which
of
born of a recognition that the
choice of proper investments from
was
the
thousands
of
outstanding is
be made
securities
now
which
one
best
can
by experts in the securi¬
ties markets.
Since your business
has throughout the
years success¬
them,
and
purchase
sell
or
Put
yourself
shoes.
excessive
in
the
Deal with him
have others deal with
charges made possible by conceal¬
(Continued
on
customer's
you
would
you
under
as
29)
page
INDUSTRIALS
WITH COMPLETE
/
■
Primary Markets
in Bank and Insurance
'
RAILROADS
\and Connecticut Industrial Stocks
TRADING FACILITIES
BANK
BONDS
•
PREFERRED
STOCKS
AND
INSURANCE
COMMON
•
STOCKS
Blyth 6. Co.. Inc.
•
'
NEW
ESTABLISHED
Members New
and
•
YORK
BOSTON
SAN JOSE
FRANCISCO
SPRINGFIELD
INDIANAPOLIS
HOUSTON
SAN
•
•
•
•
•
DALLAS
»
STOCKTON
*
DETROIT
SPOKANE
•
CHICAGO
PROVIDENCE
•
LOUISVILLE
•
•
PASADENA
•
•
•
PHILADELPHIA
OAKLAND
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LOS ANGELES
MINNEAPOLIS
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* EUREKA
SAN DIEGO
SEATTLE
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CLEVELAND
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LONG
FRESNO
BEACH
1865
Stock
Exchange
leading exchanges
Street, New York 5
PORTLAND
SALT LAKE CITY
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SACRAMENTO
BEVERLY HILLS
York
Telephone Digby 4-2525
Branch
PITTSBURGH
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1 Wall
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ROCK ISLAND
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other
Burlington
Florida
Rutland
Offices
Tampa
—
St.
Sarasota
Offices
Detroit
Petersburg
Lakeland
Orlando
Deland
Montreal
Miami
Ft.
Myers
Bridgeport
Fort Lauderdale
Clearwater
Private telephone to: E. M.
Hartford;
Direct
R.
F.
Griggs
teletypewriter
for
them at the fairest
price possible.
compensation
from
come
guid¬
of individual
by maintaining high standards
professional conduct in your
customer relations. Give the cus¬
tomers the information
they need
to have when
buying and selling
securities.
Buy from or sell to
advantage of the
that
for
go
of
customer's lack of knowledge and
But
investors
This reliance
curities market
orderly and clean
them by any other standard.
They
must not take
services.
of
ance.
UNLISTED SECURITIES
MARKETS
are
are
and
thereby obtain profits for them¬
is important to us selves in
the market. They
are, of
duty to administer
course, entitled to a profit by be¬
It is an important bul¬
public confidence in the ing fairly compensated for their
UTILITIES
of
fully sought to foster this depend¬
ence of public customers
upon the
professionals
with
whom
they
deal, you must give recognition
to the responsibilities which
spring
from that dependence.
This can
best be done by
keeping the se¬
already
sworn
law.
Members
the
these
us
indictments obtained against
That function
in
curity
their securities
the per¬
upon whom the public relies
havior than by alleging them in for market
information and advice.
bills for injunctions or in indict¬
They are the persons to whom
rules
innate
that
Diligence
It has also afforded
present mart where se¬
holders may
dispose of
ever
bulk
course, with every
tion and,
like
lieve
an
injunctions
stay there
common
business.
ready
sons
years have brought
steady rise in the internal
curities
a
enterprises.
se¬
not
become
members of the
standards
affords
be
be¬
members of the
a
the
As
It
whereby investor capital
placed behind production
in growing industrial and
other
types of corporation and business
and ideals of
within
curities business itself.
that
the
PUBLIC
customer
nation.
can
subtle, but more pervasive
significant factor, the growth
of ethical standards
and
a
this
an
medium
a
law
those
is
by
fort to have the standards of the
of
this
nearly so flagrant as wark of
formerly. The rough and tumble securities profession that the
pub¬
era appears to have
passed.
The lic be assiw-pd that
any wilful vio¬
players are now more sophisti¬ lation will be
punished.
tion, Inc., Boston, Mass., Aug. 14,
and
play fair and square
removed from the game.
it
measured
the
part. We have
be
one
can assure you,
to
propose
is
measure
proper
no
lack
job, I
It
business has
extremely vital part in
growth and development of
pub¬
lic body charged with the protec¬
tion of investors we justify our¬
selves more by our constant ef¬
Let
any
do not
we
Your
economy.
played
more
work done
rules.
The
referee's
obtain.
sion that the
of
improvement
un¬
course,
about
We don't like to do it. You know
how sparingly we call a "foul"
and impose a penalty.
It's true
understand your problems.
are
to
believing that
on our
the
it
the
for minor
violations
They
us
cannot
among
recognize
blow
to
Of
think
are
unpopular
unnecessary
to
whistle too
frequently
more
PRIMARY
on
we
who
that
from
to
see
are entitled to it.
and
efficiently accomplish the object¬
ives outlined for us
by the Con¬
gress by making every effort to
*An
one
Like
eye
effect of its
business.
your
and
course, it is our job as referee to
see that they
get it.
practical
problems which have to be faced
toward
is
supervision
supply and demand. Above all,
they want fair play in the secur¬
No
actions
old
deliberate
within
an
of
far the exception.
ities field.
industry and with
than
been
occur
And it is much less seldom
cover.
results
no part of tailor-made
They want a security
whose price is fixed
by the untampered influence of the law of
Commission has earnestly tried to
administer and enforce the laws
with
difficult for
more
markets.
the past 14 years we have come to
know
a
great deal about each
other. You have learned that the
jurisdiction
of
the
bit
a
deluded
buying and
are
still
they have the air of
they want
We have done away with some
notions because over
of those old
understanding
they
but
sure
whistle
„
what
of the rules
refinement about them.
not enter the securities
field un¬
less the rules of the
game are fair
and above board.
They want to
lems.
in your
under¬
'
Your association has
recognized
for a long time, I am
sure, that
people in general will not invest
in a dishonest market.
They will
inquisitors, enforcing and admin¬
istering its Acts unmindful of
your
particular business
prob¬
its
and
a
concerned.
officially
an
indus¬
market in which the
public interest and the interest of
investors rather than immediate
profits is the primary aim of those
your
star-chamber
be
the
achieve what is desired
by us all,
namely, a fair market in which
customers
have
complete
con¬
no
to
pres¬
we
by the Commission. In this
spirit of hand-in-hand coopera¬
tion, I feel that we will finally
securities salesman
guilty of violations of our Acts
until
association
among
a great
business, a busi¬
which I believe to be essen¬
tial to the existence of our
lations
try's position known
the
table
its place. On our
have made it clear that
as
cated—more
such
one
ness
our progress in terms of the num¬
ber of prosecutions or injunctions
stood
conference
regard
but
cognizant of their
fellow players' rights and of the
interests of the bystanders. Vio¬
one
the
several in
industry and making
s
disappearing
the
C.
our
i
this
as
Dealing
is to educate its members in
understood among members of the
that
clouded
such
Fair
principles of fair trading and have
such
principles become part of
their business alphabet. Yours
is
have
gone
a
long way toward
making the Commission's position
ring¬
relations
of
Associations
atmos¬
phere
blow
ent
is every indi¬
cation
that
the
is unnecessary to
in
opinion one of the great¬
est challenges now
facing profes¬
sional organizations such as
yours
taining orderly markets, and cautions against excessive mark-ups, churning
and misrepresentation.
Says Commission may be driven by public clamor to
adopt market disclosure rule.
o
our
lems.
Education
In my
the whistle too frequently for minor inadvertent violation of rules.
Stresses
need of having honest investment market and holds securities dealers have
attained a professional standard.
Acknowledges function of dealers in main¬
get
in
together
spirit
dealing with customers.
relations is disappear¬
our
ing," Commissioner Hanrahan tells securities dealers "it
that you
I
and
Marke
ment of material facts and
unfair
Commissioner, Securities and Exchange Commission
the
of
Securities
By EDMOND M. HANRAHAN*
extended to
but I
the
in
Thursday, August 28, 1847
Bradley, New Haven; Conning ft Co. ft Ballard,
Co., Waterbury; W. H. Ryback ft Co. Meriden
to: Brown, Lisle ft
Marshall, Providence, R.
Direct telemeter wire to: Butler-Huff ft
Co., Los Angeles
I.
Free
There is
ness
Enterprise-A Challenge to Business
probably no other busi¬
has a
\
chosen for my
the
tional
Na¬
Secur¬
Traders
ity
Association.
Your business
is
essentially
marketing
of capital, and
a private mar¬
ket for capital
the
—
for the
tax
as
se-
can
business
purpose
and
deal
—
only
bread
and
laws and
way
of life. The sternness of
the
of
friends
of
free
enterprise is being tested at the
present time, as the sternness of
purpose of our system was tested
government in
L. F. Whittemore
.
'
' '
4
'
*
/>
_
'
''
the chief support of the Ameri¬
curities of
which
♦
•
.
1
is not
your
butter; it is the very
private enterprise sys¬
Our
to
least
the
of
to
strive
moment
sublime
a
history
to
the
be
in
the
From the
greatest, all must
world.
worthy of these su¬
opportunities. There is not
an hour to be wasted; there is not
a day to be lost."
I need not remind you of the
glorious past and the magnificent
promise of the private enterprise
system. That it has produced for
end of Government subsidies and tariffs.
this country the highest standard
of living known to the world is a
of
a
free
private matter of common knowledge. It
in mind the same great purpose; continuance
that is, the return to free enter¬ enterprise system is in direct con¬ is too little understood, however,
that it has also made possible a
prise. This constitutes a challenge trast to the changes which oc¬
curred
in
almost
every
other degree of freedom for the indi¬
to Americans.
preme
'
industrial nation in the
For the last 15 years responsi¬ major
bility for the economic future of world. Go down the list of the
during the recent war, although this country has to a greater or major industrial countries—Eng¬
Russia, Germany,
in a different manner. While the lesser degree been assumed by land, France,
gigantic challenge of fighting the the central government. Govern¬ Italy, Japan, even Australia and
growing
nations of South
took
the
initiative
from the
war
and producing the goods to ment
win the war called for tremendous business during the great depres¬ America— all have adopted either
you
*
*
us
U. S. is only great nation reverting to
competitive free enterprise after war, holds public sentiment here is turning
to the Right and the regimented economy of last 15 years is disappearing.
Holds all this means we must make free enterprise work and asserts U. S.
economic weight is sufficient to counterbalance Socialist economies of rest
of world.
Advocates revival of spirit of risk, and sees need of revision of
afternoon
than
/'
,
New England banker, in pointing out
this
remarks
may
President, Federal Reserve Bank of Boston
>
then a brighter day
upon human history.
pilgrimage has brought
lands, and
dawn
LAURENCE F. WHITTEMORE*
By
in this country that
greater interest in the sub¬
group
ject which I have
7
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
vidual
which
least
may
endangered
be
lost
under
or
at
almost
system of centralized control
any
of economic life.
system is not perfect.
It
formerly
accompanied by
poverty for many, by insecurity,
the democratic process, for inves¬
exploitation, and, as I need
sion following 1929 and with the a completely socialistic economic by
tors,
by
voting
their dollars, effort, there was a lack of con¬
after system or are well along the road not remind this audience, by a
fusion and a singleness of purpose excuse of one emergency
determine both the volume and
toward central government direc¬ good many shady deals in secur¬
which we do not seem to have to¬ another held the initiative until
kind of industrial expansion we
core
of
a
tem. It is
also
a
manifestation of
day. In those stirring days the
path for Americans was plain to
see. Though rough and rugged, it
to
a
definite goal;
led
a
goal
shall have.
I have had considerable interest
in the
issues
industrial side
of security
and have known for years
which
of your members. I know,
therefore, that no words of mine
are needed to sell you the private
enterprise system. I have often
many
was
achieved in less time
than most of
dicted. The
us
would have pre¬
path now is often ob¬
the
outbreak
necessitated
the whole
of
the
central
tion
which
of
war
Left
Public Sentiment Away From
There
the
of
last
has
been
a
significant
The present seems to be try once again have the responsi¬
bring about the bility of which they were relieved
prepared for delivery at the An¬ organization of the majority, not when the central government took
nual Convention of the National in one group or under one leader¬
the initiative.
Security Traders Association, Inc., ship, but in many several groups,
The change in public sentiment
under many leaderships, having
Boston, Mass.-, Aug. 14, 1947.
in this country in favor of the
a
good time to
private enterprise system.
Merely to catalog the countries
toward
ities.
in
You need not look far back
our
have
history to find out why we
gentlemen from the
these
SEC here.
Failings of Free Enterprise
Overemphasized
govern¬
ment control of their economic af¬
sentiment during
away from the left
public
groups.
Whittemore
almost
stand
the
that have turned
year
scure, leading off into byways of
at least toward the middle. I say
thought that the day-to-day con¬ disagreement, selfishness and
toward the middle because to im¬
duct of you business tends to con¬ shortsightedness stimulated by the
organized minorities. ply that public sentiment has
centrate your interest upon the clamor of
turned to the right might be un¬
If our economic system is worth
paper in which you deal at the
derstood as a declaration that it
saving, and most of us think it is,
expense of your interest in the
has turned reactionary, whereas
real assets which the securities we must bring back completely
in fact it has merely turned back
represent, the government policies the checks and balances of com¬ toward the
system of private in¬
which may aid or hinder you, petition and the forces of supply
itiative and
individual freedom
and the future
welfare of the and demand. The nearer we come
which is in the best tradition of
a
free
economy
the more
American way of life in which we to
the country. With this change in
get
all have firm faith and a material nearly we will be able to
public sentiment, private business
stake. I am going to talk to you, along without subsidy payments
and
industry have
shouldered,
therefore,
about
some
of
the by government either directly or whether we like it or not, a de¬
of
fundamental issues which chal¬ indirectly to various classes
gree
of responsibility which a
;
lenge the continued strength and our citizens.
good many people have forgotten
The last two decades will go
growth of our free private enter¬
that they
once
had. When the
down in history as those in which
prise system.
government
controlled a large
the opportunity of the majority of
area of the economy, private busi¬
A Challenge to Free Enterprise
the people was circumscribed by
ness
occupied the position of a
The present situation is a chal¬ the pressure of organized minori¬
cooperative but—at least in the
lenge to all who believe in the ties properly or improperly seek¬
years before the war—critical op¬
American system of free enterprise ing
special favors for special position. Now business and indus¬
*An address by Mr.
Canada
alone in their faith in the revival
private economy.
of
turn
affairs. This
of all economic
nation' and
direction
The
was
In spite of the fact that our sys¬
fails to tell the
importance of tem has achieved so much for the
those parts of the world which majority, its failings have often
still rely on private enterprise. been overemphasized. Such over¬
We
should not forget that this emphasis has resulted in the most
nation alone accounts for almost ambitious system of aid from both
fairs,
however,
whole story of the
governmental and private sources
children, the old and infirm,
weight, if used properly, is suffi¬ for the unemployed and for. the
indigent that the world has ever
cient to counterbalance most of
the rest of the world. What we do known. The major failings of the
half of the world's
here will
of
future
production and
economic
Our
income.
its
of
probably determine the
the private enterprise
system and to a large extent the
of the democratic system
future
of
government.
Winston Churchill in his
the
before
House
of
speech
major speech as leader of the
Opposition, described thus our op¬
responsibilities.
and
He said: "The United States
at
system,
can
have
stand
be
the
to
extent that they
by legislation,
corrected
been
lieve that
corrected.
we
Many
The attraction to the rest of
despite its failings can be meas¬
ured by the competitive test with
which all businessmen are famil¬
iar.
ket.
That is the test of the mar¬
When there were no bars to
world.
I
Let them act up
should be
so.
level
their
of
that
rejoice
immigration there was a constant
of people from all parts of
the
world to these shores.
No
to the
matter how dissatisfied we were
power
this
their
and
responsibility, not for themselves
but for others, for all men in all
flow
and
to those people America
(Continued on page 62)
Distributors
•
are,
Dealers
•
INDUSTRIAL, PUBLIC UTILITY AND
RAILROAD SECURITIES
Trading Markets Maintained in Unlisted
Securities.
private wires to Boston, Chicago,
Cleveland,
Direct
Trading Department, LOUIS A. GIBBS,
Manager
St. Louis, San Francisco.
Laird, Bissell & Meeds
MEMBERS
NEW
YORK STOCK
B
EXCHANGE
&■
CO.
NEW
LA I R
YORK 5, N. Y.
INC,
120
BROADWAY,
NEW YORK 5, N. Y.
44
Telephone
Wire
BArclay 7>3S00
Systems:
Day,
Tifft Bros., Hartford
Boston.
Lockwood,
Stoddard
&
WALL STREET
Bell Teletype NY 1-1248-49
& Williams,
Inc., New Haven.
and Springfield. Schirmer,
Peck
Co., Baltimore.
wood, Philadelphia.
—
Atherton & Co.,
Hendricks & East¬
White & Co., St. Louis.
ATLANTA
•
BOSTON
PHILADELPHIA
♦
the
world of the American way of life
Bank and Insurance Stocks
Industrial Issues
this
this moment at the summit of
the
Underwriters
Public Utility and
be¬
have tried to do too
much by legislation, and with
view I have some sympathy.
Commons
Aug. 16, 1945, giving his final
review of the war and his first
on
portunities
for
•
BUFFALO
PITTSBURGH
•
•
CHICAGO
ST. LOUIS
•
•
CLEVELAND
SAN FRANCISCO
8
THE COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August 28,
1947
Security Prices and Inflation
By
IVAN
WRIGHT
and
MARGOT
HENN
culties.
Being shares of own¬
ership, there was no danger
of their
being paid off m
cheap money. Carrying lv
Using experiences following World War I as a basis, authors
analyze effects
of inflation on
security prices. Although results show common stocks in gen¬
eral are a better hedge
against inflation than fixed-interest bonds, it is pointed
stock prices did not rise
tance of selectivity in
out
as
rapidly
fixed
currencies depreciated. The impor¬
stocks is emphasized and authors
as
acquiring common
conclude established companies with reserves of
working capital and plants in
sound physical condition are best able to withstand
severe
depreciation and
post-inflationary slump. Hold fire insurance stocks
constitute
Dr. Ivan
Wright
Margot Henn
As minor
money.
I.
tactics gain momentum,
ary
The Effect of Inflation
on
all
inflation¬
of
these four factors
a
in
forces of the
money, whole¬
sale
The
tangibles
'
also
scramble
1922,
had,
reached
by
December,
the
fantastic
are
into
precipitates
a
sold
at
a
yields
in
and
Any
current
durable
income
and
alike.
storable
depreciating
money by
curities
much
as
purchasing the
oi
enterprises
or
01
otherwise
dividends
were
paper, so that in¬
Nevertheless,
■■
did not rise
related to
as,
many
were
paid
out.
en¬
gaged in the manufacture
tangible goods,
on
creased
se¬
paper
higher profits
realized
as
of
and in
rose,
instances
Irom
terms
Prices of finished
fleeing from cash, sought products
their wealth
there
them to be
discount.
Indeed
was true.
As inflation
progressed in the
various countries, stock
a
increased
to prevent
based
quite the opposite
post-inflationary crises
wise
rates
conditions,
need for
no
currency.
prices
height of 147,500% as com¬
brought into play simultane¬ pared with 100 for 1913. Yet
During any economic crisis, ously each one aggravatipg they continued to climb still
whether large or
the effects of the other. When
small, the
vastly higher so that by the
securities market acts as a money becomes too
abundant, time the inflation had reached
sensitive
barometer, record¬ people begin to distrust it. its "peak in
October, 1923,
ing all the whims of buyers Their common distrust and
commodity prices stood at 1.5
and sellers alike. It is in
times resultant flight into
tangible trillion against 100 in 1913.
of rapid
daily upheavals of goods causes a great
People of small means in
scarcity
gigantic proportions such as of these
products, a situation these countries
occur in an
bought up
inflation period
which, according to the law commodities of all sorts in
that the behavior of the
stock of
supply and demand, irons an effort to rid themselves of
market becomes
particularly itself out by way of
higher their money—past savings
dramatic. All
prices.
was
good inflation hedge.
Security Prices
the cumulative
interest
past
upon
something tangible,
for instance, the insurance
currencies
as
stock
rapidly
prices
as
depreciated,
the
nor
as
rapidly as wholesale prices
tangible property against responded to the
monetary
losses.
As may well be ex¬ inflation.
They persistently
pected,
securities
followed lagged behind, and,
upon the
of
the
familiar
creased
pattern
prices
overtook
supply.
of
in¬
demand
as
However,
the securities market
presents
revaluation
currencies,
of
the
never
various
did
reach
their full
proportionate meas¬
ure of
price increases. At the
a more
intricate problem, and time of
currency stabilization
commodity served the pur¬ it is
particularly necessary to French stock prices had, on
pose. Competition on the
bear upon the securities
part distinguish between securi¬ an
mar¬
an effect
average, increased to only
identical to that of of buyers to obtain the
kets.
few ties
Consequently, as infla¬ a further increase in
representing • debt and 250% (1926) of the 1913 pre¬
the available
tion causes
goods created an those
commodity prices amount of
representing
equity. war level as compared with
money placed into even greater scarcity and in For
to rise, so does it
the
most
cause se¬
part,
stock 800% for wholesale prices;
circulation.
its wake drove
prices ever prices rose while bond
curity prices to join the up¬
After the First World
prices German stocks (1923) on an
higher as confidence in the fell.
War,
ward spiral.
all of these forces
average fared even worse, in¬
took hold prevailing
currency
dwin¬
There are four basic eco¬ as
Bonds were at a disadvan¬ asmuch as
inflation became the order dled. The sellers'
they only reached
market was
nomic phenomena that
tage because of the sharp rise approximately
one-fifth as
prompt of the day in France, Ger¬ such in France and
Italy that in interest rates
general price increases of
many, Austria,, and Italy. In commodity
accompany¬ high percentagewise, in terms
prices
soared
this sort, and these are:
of
the
1913
ing
continued
(1) a France wholesale
level, as did
government
commodity higher percentage-wise than
surplus of demand over sup¬ prices increased
borrowing.
Interest rates wholesale commodity prices.
did gold
eight-fold by
exchange rates of the rose to as
ply; (2) a larger supply of the end of the
much as 10% in To put it differently, in terms
inflation; in paper currencies.
of the cost of
France and 40% in
money; (3) a more rapid cir¬
living at stabili¬
Italy they climbed to more
Germany.
While some were
culation of
purchas¬ As a result,
money; and (4) a than six times the 1913
prewar bonds, zation, stock prices in France
level; ing actual
physical goods,
fear of inconvertible
carrying the low rates then dropped to about 45% (1926)
paper while in Germany wholesale others of
greater means, likeprevalent, were sold at con¬ and in Germany to about 35%
siderable discounts to
make (1923), with the 1914 average
commodity, and retail
commodity markets come to
more
rapid circulation of the
monetary medium, which has
up
for the
interest
discrepancy in
rates.
fered, too, from
Bonds
the
suf¬
the likelihood
taken
as
100.
After the franc
ued in 1926 at
was
reval¬
20% of the
of
their
being paid off in prewar unit, the French stock
cheap money, thus sharply re¬ market continued its upward
ducing the purchasing power jaunt. The experience of the
of the
principal when repaid inflation
to the creditor.
Stocks,
Wertheim & Co.
Members ftew
120
Broadway
York Stock
Exchange
New York 5, N. Y.
presented
of
on
the other
none
did
not
deter
the
country from riding the crest
a
wave
hand, duction
of these diffi¬
and
of
increased pro¬
speculative fever.
(Continued
on
page
43)
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W
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3
i
10
THE COMMERCIAL and FINANCIAL CHRONICLE
How
Things Look to
I am supposed to talk on how
things look to a Yankee banker.
Well, I am a Yankee all right.
There
was
a
called
man
*'
By ROBERT CUTLER*
Boston banker, urging American
people be told the facts, points out domes¬
f
tic and world conditions
Hingham.
occupies position
in
11
killed him. He
died
that
He
year.
couldn't
I
take
d
0
not very
are
sound.
Says Great Britain
longer
deplores actions
of Soviet officials.
telling Russian people "real
facts of democratic life" and holds domestic
problems ahead are: (1) decay
of family life;
(2) loss of America's urge to produce more, and
(3) legal re¬
duction in working hours. Warns we
may have hard times to take
up the slack.
and
landed
n't
no
economic and financial stabilizer and
Favors spending large sums in
as
know whether
I
a
not.
or
If try¬
ing
and
of
Cutler
billion
a
funds
these
times qualifies you for a
I guess
during the last
I have been one,
But,
in
this
difficult
am
As
will¬
About
being
frankly
I
American
people
enough after what
out
in
the
I
12
have all
will
economic
face
the
be
never
any
us
sisted
thought
behind
shall's remarks.
greatest
to
to
do
I
man
with.
work
It
To me,
had
was
I
there
Mar¬
an
of
the
American
that
a
in
we
awful
in
such
glad
to
the
people.
for
their
terview
Moines
E.
liv¬
speech I made in Des
Moines, an<j
hey say, "How about it?
How
about
that slump that
you fore¬
cast; that inflation that you were
alking
about?"
Well, I suppose
:.t is Yankee and
being obstinate
in
hey
other
are
in
the
things.
aren't
they
All
of
trust
the first half
year,
our
com¬
our
cor¬
an
holders
are
getting a lot more
Well, that makes every¬
body
feel
have
more
and
good.
If
not
you
on
a
margin,
secur¬
but
you
trade.
can
And, of
man
has
if
world
signed
would
President Tru¬
I
look
really
look
the
back
with
the
with
come
in¬
this
sees
And, there
yet, has it?
which
and which I
are
you
am
HUTTON & CO.
other good signs
all familiar,
are
not
going to bore
the
England
then
Shaftsbury,
and
there.
He
only missed
it by a hundred
years.
It is natural to be
thinking
England these days.
We
since
Gibraltar;
the
stabilizer
of
the
into
the
see
United
see
accom¬
plished
fact.
The
Marquess
roy,
Trust
couple of months ago,
Chairman of one of the
a
now
big
banks
being
in
England, Midlands,
bright young
a
him
to ask
used to be Vice¬
lunch at the
to
came
Company
He is
lot
you
of
are
a
not
States.
*
I
all
of
*
*
bloody civil
the
man
going to dwell about
things that disturb an
with neuritis
now.
I
am
going
in
war
are
India
status
finally withdrawn
British Consuls,
which hitherto have been consid¬
ered by trust
companies
Exchange
I
don't
know
what
Baltimore Stock
Exchange
Chicago Stock Exchange
selling at today, but I assume
they are around 82. And the Attstatement
England
in
to
seems
peacetime
to serfdom and
the road of freedom.
away
vacuum
that
omy will be the
same
to mention only four of
them to you because I would
like
to have you
worry about these
manner
things with
without the
just doing it for love.
me
and go home to
towns and make other peo
live in
a
Let
us
no
assistance
don't
of
to
mean
of
Great
means
Britain.
that
say
Philadelphia, Pa.
Dayton, Ohio
Baltimore, Md.
Lexington, Ky.
Boston, Pa.
were
dream world.
Russia's Attitude
Great Britain No Longer
a
Stabilizer
Naturally, the first worry is the
disappearance of Great Britain as
My second
tude
and
of the
I
concern
is the atti¬
Russian Government,
would
particularly like to
(Continued
on
page
Curb and Unlisted
•s
.
DEALERS
Boston, Mass.
I
any
They were
damn smart people.
But, they are
not going to do it much
longer.
Exchange
CINCINNATI
by
the British
MICHAEL HEANEY, Mgr.
NEW YORK
be
It is very hard to
think that the world and its econ¬
Philadelphia Stock Exchange
•
will
existing there.
Exchange
BROKERS
from
Somebody has got to step in and
take England's
place. There is an
Chicago Board of Trade
•
be taking
the
down
WALTER KANE, Asst. Mgr.
UNDERWRITERS
us
they
are
1886
New York Curb
Cincinnati Slock
good
as
"G-bonds," certainly gives
cause.
Securities
Stock
but
when
of
MEMBERS
New York
sup¬
there.
The
enormous
not
am
supposed
He
road
have here in the United
man I
questions,
Marquess at lunch, I
can
see
nothing
a
pose.
is from the rich and
profuse col¬
of wealth and resources
we
of
Linlithgow, who
lee
which
an¬
Viscount Mont¬
gomery coming back to
preside
over the reduction of
British arms
The loss of India is an
world; through all of our concious
lives, certainly. How different it
lection
States loan
up at a much
greater rate of rapidity than
^
ESTABLISHED
they
vanished
ticipated. We
as
of
The Rock of
although
■credit—being used
from
Lord
hundred years ago that
was
going to hell right
a
any
too,
long
Questions
think
thu
don't think
real doubt
in I
dust.
asked
beneath
world*
I
Rome
Greece
Englishman,
thought
pie worry about them.
with
and
have
the British
your
a
it was one of the most
foolish things that could be
done,
but they say it is going to make
the wheels spin faster.
"Register and
out
are
a
bill permitting
the GI's to cash their
bonds, and
my experts tell me that that is a
good
sign.
I
had
personally
very
they
be
little Jerrybuilt and not
very sound. A great
old
course,
sure
the
about
and
will
you
frosting,
money, you can go out
spend it and trade in
ities,
years
pretty
feel
World Not Very Sound
the
good
profits —
terrific?
prophets
right until
killed like Sandra.
But,
factory worker.
are
All
part.
referring
increase since 1946 of
almost $7 billions. And the stock¬
handsomely
afternoon
Well, it hasn't
am not
ver¬
of
billions,
some¬
revealing headline: "Banker
slump following spree."
Security
Traders
Association,
Boston, Mass., Aug. 11, 1947.
cost
profits, after taxes, were
running at an annual rate of $17
recipe.
that
the
Isn't it just dandy to
everything going so well?
Well; my friends come to me
and they talk to me about
that
of
Gibraltar.
can
to pass.
There will be
remem
bered incalculable
things England
has done for the
world and
for
civilization. She is the
mother of
democracy as we know it.
But
we remember
things about
lave
thought
in
them
came
27%, de¬
porate
very
six
to
future.
money.
for
them
pay
Des
Tribune"
National
W.
a
bad, I would be
meet
and
room
Stenographic report of an ad¬
dress by Mr. Cutler at the An¬
of
from
could indulge
you
process
and not feel
The
Convention
In
morning,
is
to
what
of the
inter¬
hangover, and if
a
*
nual
the
seems
getting these fancy ideas
we
ought to be able to
do for them. I just dread to think
of
Tribune"
was
very
panies
Des
Colony out
I
in
beneficiaries
drunk for six
years,
were bound to have
body knew how
has
expressed
the facts.
The hard things, the
difficult things, they should be
drummed
constantly
into
the
minds
So,
10:30
hell of
a
and
in the Pen¬
was
he
at
Old
a
adjusting for the
Corporate
something
I sup¬
a' man
12%
Of course, I
There
entirely
interviewed.
seen
and the
after
increase
refers to the
Well, I told the reporter that I
thought the whole world had been
on
closely with him in the
think
of
thoughtful minds that the
leader
ship which England has
exerted
through some centuries is
with.
you
to members of your
profession or
to the unorganized workers. This
staying, in¬
which, as you know,
disadvantageous time.
the
anything
privilege
my
and
Depart¬
in
which
from
tical
Des
high-*
the
runs
us
by a great
people, that factory work¬
real
purchasing power in
was
ing.
come
being
my
never
before.
viewed
he is the
ever
last six months I
tagon.
General
who
"Register
on
Harvard
think the American peo¬
ple ought to be told them. In his
remarkable
address at Harvard
was
in
a
The
tells
bulletin,
even
use water for some pur¬
They had
I
that
been
reality.
dream
pending on exemptions and de¬
pendents, higher than in 1939,
Moines, and
and with whom I was
facts.
Commencement,
year ago
and visited
field-bearing grain.
Moines
all, when a boy gets to be
they begin telling him the
14
May
a
out
never
friend,
my
After
facts.
ers'
in Iowa, but I didn't see it!
Well, on the third day of this trip,
more
depressions," and let
time.
poses
economic patterns and
new
"there
many
can recommend
they
pose
of the
into
presently
honest
been overlooked
been
some
fact,
that it does not
from
disclosed, and to stop talking
about
have
I
have
have
you
years
have everything
open,
have
sling
million
the
of Labor
recent
discovered among other
things the famous yellow corn for
which Iowa is
noted, and can tell
the
have been
and
this
ment
to you strongly.
way
mature
are
of
friends in Des
you
Moines, I
think
we
wars
of New Deal—to
facts
.
.
prophet, I am
with the gravest
concern.
through—two
if
of
July I went
some
a
filled
possible
.
matter
a
this
ing that you should suspend your
judgment until I have finished
these few remarks.
because
wearing?
No, I
feeling this way for
banker,
19 months
I
just
am
60
are
comes
Now, you will be inquiring how
long I have been a Jeremiah. Is
quarter
a
There
employed;
things.
look
to
after
Robert
By nature they are optimistic and
they
always
see
the
good
in
banker
am
stabilizer
Rock
there
England
1636
it!
the
President, Old Colony Trust Co., Boston
who
o v e
came
in
Yankee Banker
a
Robert
Cutler
from
Thursday, August
28, 194,
JOSEPH McMANUS & CO.
Members New York Curb
Exchange
Chicago Stock Exchange
Portland, Me.
39 BROADWAY
Telephone
DIgby 4-3122
NEW YORK 6
Teletype
NY
1-1610
32)
!
convention Number
The
Now
Tax
Battle
that the fighting is over
Professor
tax
reduction.
Twice enacted
b y
substan¬
tial
Public
Finance
majorities,
vetoed,
and will prevent
twice
and twice fail¬
in Con¬
ing the discussion, upon the fun¬
gress by nardamental inequity of the tax rates
r o w
margins
income
an
$500,000 by nearly
of
$60,000.
Princeton University
Emeritus,
"In
far
so
as
'take-home' pay is
concerned under H.R.
admitting measure
id not
remedy defects of tax system. Says complete recasting of income tax
needed, so as to preserve incentives to work and save and to provide
additional capital investment for
expanding economy. Holds time to reduce
axes is before a
depression sets in, and denies lower taxes are inflationary
namely, the
for
of
Dr. Lutz deplores veto of
Congressional tax bill, though
Potomac,
fight
Potomac
the
By IIARLEY L. LETZ
generals have departed,
it may be worth while to review
some aspects of a recent battle of
and the
the
on
and the family with an
of $500,000 would receive
18.6%;
ncome
an
increase of 62.3%."
These extracts reveal the severe
debt reduction.
that
distortion
person to
contend seri¬
ously that such tax rates are not
rise
themselves
rates
minded
sharp
in
rates the family
in
necessary
was
the effort to make
ing
1, the fam¬
ily earning $2,500 would receive
an increase of only 1.2%; the fam¬
ily with an income of $50,000
would
receive
an
increase
of
At 1945
case.
a
with
a
net income
progression. The present writer of $2,500 would pay $95 tax, while
themselves may have given some bad
for
the
whole
economy. has recently commented upon this under H.R. 1 it would have paid
in votes to
Granted that the tax load is too point elsewhere as follows:1
override the support to this impression.
1567, which is a 30% reduction. The
"Moreover, income tax reduc¬ family with a net income of $50,veto, the ill- Complete Recasting of Tax Rates heavy upon the small and mod¬
erate incomes. It is too often over¬ tion through the middle and upper 000
would pay $24,111 at 1945
fated tax re¬
Needed
looked that it is now too heavy, income ranges becomes an im¬ rates, and the decrease of $4,822
duction bill of
The fact is that the job of in¬
also, upon the middle and large portant safeguard for the smaller represents a 20% reduction, and so
Dr. Harley L. Lutz
1947 has be¬
dividual income tax revision cart- incomes.
incomes.
The great bulk of the on. the fact that a larger number
come
a sym¬
not be satisfactorily finished with¬
The reason for this conclusion, workers and other income recipi¬ of dollars of reduction would be
bol of the thwarting of strong
out a Complete and drastic re¬
particularly with respect to the ents cannot create their own job taken from the tax on the larger
popular demand by the executive
casting of the tax rate scale. This higher incomes, is not that those
prerogative Of the veto.
is the basic evil in the Income tax. who receive such incomes do not
Let us dismiss at once ail ques¬
The present rates are those that have enough, after taxes, for their
tion of the President's constitu¬
were imposed during the peak of
own support.
Too often the tax
tional right to veto this bill, once
the
war
effort, modified only reduction argument has been
or
more times.
The constitution
slightly by the 1945 Revenue Act staged on the low plane of what
does not exclude revenue meas¬
and subject to the further deduc¬ is left to the various taxpayers
ures from the veto power. Wheth¬
tion of 5% across the board in the for living expenses. The real rea¬
er It was wise to do so the first
tax as computed.
The war tax sons are quite different, and it
time, or to repeat the performance rates were built
upon a foundation must be admitted that if the main¬
a month iater, is an entirely dif¬
rate structure that was developed tenance of living standards were
ferent matter.
the only ground, there would be
Presidential opposition to the during the 1930's as part of the
program,
then So popular, of little case for reducing taxes, now
tax bill Was Summed up in the
equalizing wealth and incomes or at any time.
sentence—The wrong kind of tax
through an abuse of the taxing
reduction at the wrong
time."
Reasons For Rate Reductions
power.
The tax rates of the 1936
The veto messages give some indi¬
The real reasons for tax reduc¬
Act were as high as the highest
cation of the thought processes
rates
imposed during the first tion throughout the income scale
which
led
to
this
conclusion.
World War.
They therefore afford a measure
of the President's grasp of fiscal
matters, and for this reason war¬
rant some exploration.
If the condemnation of the bill
as
Even
minor
reduction
meant that
it was
better
tax
against
be made in
case
can
combined
The
way.
begin to
50%, after the 5% deduc¬
normal and Surtax rates
perfect .and final answer to
the question of individual income
tax relief, we can agree at once
that it was the wrong kind. But
it was never offered as the final
not a
exceed
lem.
perfect solution of this prob¬
Quite possibly, it was not
the
best method that
and
a
than
other
any
the
the
current-income
the
make
themselves
providing the wrong kind of
tax
after
allowing for
adjustments made by
Act
1945
rates
are
could have
tion, at the taxable income level
of $18,000, which means that as
to any additional income, the re¬
cipient is working more than half
of the time for the government.
The effective rate of tax, which
means the relation of the tax to
first step
The total net income, is 48.22% at a
weakness of the percentage reduc¬ net income of $50,000, in the case
tion method is that it leaves in¬ of a married person with two de¬
tact the existing scale of rates by pendents. Shortly beyond that in¬
been devised, even as a
toward
the
solution.
final
which individual income taxes are
to be computed.
It tends, there¬
fore, to create a presumption that
this existing scale is satisfactory,
and the absence of emphasis, dur¬
level, such
come
a
person
is ac¬
tually giving up in taxes half, or
more than half,
of his entire in¬
come.
Trading Markets
,
impossible
is
It
for
,
any
opportunities. They are depend¬
ent upon decisions made and ac¬
tions taken by others.
In so far
as the tax burden impairs the in¬
centives to make these decisions
these:
the
take
and
steps
necessary
provide jobs, the brunt
borne by thousands, even
to
will be
millions
incomes.
of
persons with small
Taxes are too high, everywhere,
it
but
would
a
very
policy,
short-lived advantage, to re¬
sighted
very
short¬
affording only a
be
strict the
smaller income has nothing
ever
In
what¬
do with the case.
to
paragraph of the
the second
extract, use is made of a
device which, though
above
statistical
mathematically
result,
the
creases
the
quoted
correct,
distorts
percentage in¬
thfe increases
are
after present tax
which would result from the op¬
eration of H.R. 1. Since the pres¬
net
in
benefits of any tax re¬
duction to the low income
the tax on the
income than from
groups."
Fallacy of Computing Tax
Reductions in Dollars
Yet, the principal reason which
the President gave for regarding
income
so
substantially
remaining after
the tax, any increase in this in¬
come
after tax becomes a large
ent
tax
reduces
the
net
income
percentage of the base. For ex¬
ample, assuming that a taxpayer
had only one dollar left after pres¬
ent tax, and a tax revision left
him with two dollars, his take-
must preserve the eco¬
to save the 1947 tax bill as the wrong
and invest, to assume the respon¬ kind was that it gave too much
home pay would have been in¬
sibilities of management, and the tax reduction at the top of the
creased 100% by the tax reduc¬
risks of enterprise.
Second, we income scale and too little at the tion.
bottom. The bill gave much more
must make available, through tax
The President has made it clear
relatively at the bottom than at
that his preference, in a tax re¬
reduction, a larger volume of in¬
the top, for it provided a 30%
dividual
income
which can be
duction bill which he would, con¬
reduction of tax under that due
saved
and invested in order to
sider good and acceptable, would
at 1945 rates for the smallest in¬
be for a concentration of the en¬
expand the nation's capital. The
effect of taxation upon the will¬ comes, and only a 10^2% reduc¬
tire advantage in the low income
tion for the largest incomes.
In
ingness to work, and upon the
groups.
The portion of the first
the first veto message occurs the
veto message quoted above says
ability to save, is experienced by
following:
in effect, that this is where the
persons with small as well as with
"H.R. 1 fails to give relief where
relief is needed most.
Actually,
large incomes. The married per¬
it is needed most. Under H.R. 1,
son with two dependents who has
such persons really need tax re¬
tax savings to the average family
a net income of $3,000, must work
lief throughout the income range,
with an income of $2,500 would
more
than three weeks in each
for their jobs and their entire in¬
be less than $30, while taxes on
come are dependent upon such a
year just to pay the small tax im¬
an
income of $50,000 would be
course.
posed upon his income by the 1945
reduced by nearly $5,000, and on
tax rates.
It is obvious that the
The second line of opposition
restrictive effect of the tax load
indicated in the veto messages is
1 H. L. Lutz, "The High Cost of Liv¬
increases progressively with the ing," The Yale Review, Summer, 1947,
(Continued on page 67)
First,
we
nomic incentives to work,
.
fair- growth of income, since the tax
583.
582,
pp.
§t;tl sTATE;il§::::;.:;
Maintained
7dna
7,:
■ v
'7
■
in
•
•
Established 1812
Investment
MUNICIPAL
Stocks
and Bonds
Trust
BONDS
Agency
»
Services
?
^
'
77 '7'
;7'
'
'1
v\yV7;
♦
'
'
1
.
•
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•
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1'
•
Municipal Bond Department
Union Securities
*
65
Telephone:
BOSTON
HARTFORD
Corporation
Broadway, New
HAnover 3*4800
BUFFALO)
•
.•
Head
York 6
PHILADELPHIA
55
Wall Street
CLEVELAND
«
•
SYRACUSE
The National
Office:
New York
City
City Bank
of New York
*
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mkmhkb
fkrkhai. deposit
insurance
corporation
.*'
'7;"
*
'
*
12
THE COMMERCIAL and FINANCIAL
CHRONICLE
Thursday, August 23,
1947
A Call for Balanced Economic
It is unfortunate that the think¬
By HAROLD B. DORSEY
ing in this country, and especially
security business, must tend
so
persistently toward the ex¬
..P
flects
re¬
de¬
As
matter of
opinions
and
con¬
sel¬
are
dom unani¬
Harold
B.
Dorsey
mously favor¬
able
mously unfavorable
part of the time
they
unani¬
or
and
great
a
far
are not
out of balance.
The
same
ex¬
over-emphasis on one individual
phase of the broad problem with¬
out giving sufficient consideration
to the many other components. At
the moment, if a
person thinks he
should be
bearish, he is exag¬
gerating the importance
of
ex¬
whole economic struc¬
our
ture; if he thinks he should be
bullish, he is emphasizing the in¬
flation potentialities. Both of these
are
factors,
others
but
that
are
there
of
are
equal
many
viz.: the position of
domestic business structure
whole, and in some of its
our
as
a
impor¬
details, the commodity price
structure, money and credit, profit
margins, the international situa¬
tant
tion
and
the
level
of
security
prices. All of these should be
sidered before
con¬
formulating invest¬
ment policies.
Domestic
Business Position
Any consideration of the
tic
business
nize
of
a
it
as a
position
domes¬
must
background the
recog¬
presence
a
very unusual condition—as
matter of fact, so unusual that
is seldom set into its
proper
place.
very
We
mestic
mand
are
in
periods
rare
ception of
war
is in
of
one
those
(with the
ex¬
periods) when do¬
demand
biles, homes, etc.
The recognition of this condi¬
tion is important (1) because the
plus
excess
of
export
our
tive capacity. That the
exists is indicated
de¬
produc¬
condition
by the fact that
of demand
excess
resents
cushion
a
in
supply rep¬
against a de¬
over
two
the
points
realize
greatest adjustment, and (3)
a
major economic cycle
practically
never
matures until the
productive
capacity has been ex¬
panded beyond the point of peak
demands.
It is against this back¬
ground
that
of
some
the
various
components4 of
ness structure.
Few
should
we
our
examine
important
domestic busi¬
premise that the outlook for the
automobile
industry calls for a
high level of activity for at least
12
months to
longer.
rates
and
come
probably
enough, it
Significantly
could operate at
higher than recent
if it could get the materials.
There
is
to
be
observed
industry, and in others,
a
in
this
potential
demand that could offset declines
demand that may materialize
in
from
reduced
some
other
exports
industry
have over-produced.
vations
would,
of
course,
of those
supply
turers,
automobile
as
well
as
might
These obser¬
cover many
the
from
or
that
concerns
the
also
that
manufac¬
manufac¬
turers themselves.
Practically the
be said
ment
about the railroad equip¬
industry.
lished
thing could
that
It is well estab¬
the
railroads
are
in
such dire need of
the economy
•
equipment that
is hurt by the irreg¬
Dealers
•
and
sup-' is
industries that
oil
producing,
refining,
transportation and marketing
equipment should operate in a
materials
The
market
quite
some
has
equipment industry
long way to go before
a
satisfied
that
mand
has
the
domestic
been
built
de¬
up
to
huge proportions by high farm in¬
come, high farm savings and high
farm labor costs
coming on top of
curtailed
a
normal
supply
equipment during the
Labor-cost pressure,
mand
and
new
war
deferred de¬
models
with
im¬
as¬
to the manufacturers of office
equipment a seller's market
quite some months ahead.
ize
of
years.
proved efficiency, combine to
It is
on
for
is
little difficult to general¬
the electrical
equipment in¬
dustry, but one must start the sub¬
ject by observing the huge capital
requirements
of
the
electric power and communication
industries. In view of the fact that
well oyer one-half of the
business
of the two largest electrical
equip¬
ment
manufacturers
is
in
heavy
apparatus, we must not let
perspectives be distorted by
versations about
an
table model
observations
that
lighter appliances
pass
from
a
does
gest that
items is
not
Furthermore,
some
are
seller's
the
our
con¬
over-supply of
radios.
of
the
beginning to
to
buyer's
necessarily sug¬
demand
a
for
ferred
the
demands
will
war
the
built
have
during
up
been
satisfied,
first
not that
place, the problem is
simple. The machine tool
exhibit
opening
in Chicago
soon
should
these
the
of
ferrous
to
of
broad
there
a
demand
fairly well
for
as
basic
purchasing
power may com¬
bine with individual
savings, sol¬
bonus payments and the
elimination of credit restrictions
in November, to hold retail
diers'
and
technological
should have
developments that
great appeal for the
One
does
not
a
pretty good
have
skilled
constantly rising labor costs. How¬
ever, just what will be forthcom¬
ing in the way of new orders can¬
to
to
manufacturer who is harassed with
make
not be forecast.
Furthermore, due
consideration must be given to the
that this type of
machinery
economist
on our impor¬
key industries; there is noth¬
ing very mysterious about the
matter in spite of the fact that
academic
discussions
generalities
has been
of
of the
important ex¬
port items recently. Studies of this
particular segment of the whole
one
come
to an indecisive
conclusion but the fact that indus¬
economy
try
whole is still expanding
productive capacity suggests that
industrial
machinery
products
as
a
fair level at least.
Contract awards in the
impor¬
industry have
generally
declining
trend (adjusted for
seasonal) for
the past six to nine
months, and
tant
construction
been
in
in
far
so
ably
high
a
a
as
this trend is prob¬
reflection of resistance to
costs,
it
cannot
upon
as
favorable.
level
of
construction
high
the
over
1941,
reaction
costs
to
of
be
The
but
date
looked
present
activity
in
view
only
construction,
■■■
Practically
scious
fact
one
that
at its present.high level of
activity is receiving the benefits
nonrecurring factors. It
is to be doubted that
capital ex¬
penditures
continue
can
nitely to contribute
to
the
been
economic
the
months.
ing
the
during
stream
the
demands
a
that
and
war
satisfied. But
even
lower
(Continued
SHORT TERM BONDS
ARBITRAGE
,
the level that
on
page
Exchange
COMMODITIES
Exchange, Inc.
Exchange
New York Mercantile Exchange
New York Coffee & Sugar
New York Cocoa
Exchange, Inc.
Exchange, Inc.
NEW YORK 6, N. Y.
Telephone
Telephone
120
BROADWAY
REctor 2-6800
REctor 2-3100
New York 5, N. Y.
Cables "STAMAL'
t
be
they drop
level, it seems
Exchange
New York Curb
time
will
after
principal Exchanges
Teletypes
Municipal Dept. NY 1-1920
Corporate Dept. NY 1-2708
piled up
some
Co.
&
New York Stock
Members New York Stock
Exchange
111 BROADWAY
past
demands
most probable that
New York Produce
has
as
12
perfectly obvious
important item is reflect¬
the
to
indefi¬
extensively
is
unusual
down
so
in
case
It
that this
A. L. Stamm
IRA HAUPT & CO.
con¬
econ¬
omy
Distributors
COMMON STOCKS
is
our
of certain
these
allowance should be made for a
decline in the current rate of ac¬
every
of the
is
some
these
part of the whole pic¬
as one
ture.
of
against the
overlook
details.
Consideration
should be given to some of those
broad fundamental conditions but
a
should hold at
often
Chicago Board of Trade
other
broad
important
Commodity
and
a
the
tant
New York Cotton Exchange
RAILROAD BONDS
be
above observations
Corporate Bonds and Stocks
MUNICIPAL BONDS
non-
A fairly well sustained
level of
activity in these lines that create
MEMBERS
STOCKS
industrial
steel,
heavy chemicals,
etc.
service industries at
ventory (which would provide the
buyer with a greater selection)
Municipal Bonds
it
de¬
this
be
metals,
as
economy,
materials such
raw
far
so
serious
a
total
the
tend
sustained
see
level.
well
merchandising effort that
to
is expected to introduce many new
going to collapse. As a
matter of fact, a well-balanced in¬
and the
the time when the de¬
measure
in
In
power.
difficult
fact
a
equipment
machinery is
Since
VJ-Day a great deal of capital has
been spent for this type of equip¬
ment and it is almost impossible
to
farm
still has
it
for
come.
industrial
difficult to diagnose.
very
are
savings
borrowings into active
The demand outlook for miscel¬
laneous
talking about the
and which translate sterile
and new
segment
crude
wit¬
reflecting
really basic in
economy, the industries that
create a demand for raw
cline
_
sus¬
our
natural
a
a
insuf¬
sales.
Capital equipment require¬
of the oil industry
have
probably never been as large or as
urgent,
and
manufacturers
of
market
same
materials
'30s, again
We have been
ments
sure
people will argue with the
of
12
activity
still be
ficient.
plies.
seller's
or
because
Underwriters
PREFERRED
to
the fact that industrial
expansion
has not been completed
and the
supply of homes is still
accompaniment of
buyers' markets should stimulate
time to
one
greatest
excess
are
the
which may subsequently
the
flow
the
any
of
ular
components, (2) because
points where demand is in
demand
impor¬
tance,
6
anything
nessed in the
purchasing
entire practical labor supply
occupied and we still have
shortages of steel sheets, automo¬
our
is
cline
tendency toward
tremes is probably responsible for
ports to
group should
well above
tained
favorable: (1) urgent and unsatisfied
as
the
on
economic
ditions
a
fact,
financial
both favorable and unfavorable factors
are
consumers'goods; (2) no indication that pro¬
ducing facilities are over-expanded; (3) high earning power of corporations;
and (4) low stock prices in relation to
price-earnings ratios. As unfavorable
factors cites: (1) uncertainties of international
situation; (2) distortion of
price-wage structure; (3) prospects of reduced exports; and (4) lower rate of
new
capital expenditure. Urges avoiding optimistic or pessimistic extremes.
or
sire to be spec¬
tacular.
in
in present economic
situation, lists
demand for both producers' and
sub¬
a
next
However, nothing like
collapse is indicated and
'
Investment analyst, holding there
bear market.
conscious
f
the
over
t
always antici¬
pating a boom
or a bust, or a
Possibly it
"
•
tremes. We are
bull market
tivity
months.
President, Argus Research Corporation
in the
a
Thinking
36)
'
Financing Public Sanitation Projects
a
to say that it is
and I
I have
General Manager, Hampton Roads Sanitary
erings
of
ferent
profes¬
ly
Sanitation expert describes pressing need for prevention of water pollution and
points out health menace and destruction of property values resulting from it.
techni¬
on
cal
subjects,
Cites creation of
Hampton Roads Sanitary District Commission
providing sound
I want to
and
sewage
first ease your
mind
and
sure
I
as¬
not
am
i
n
peculiar, but. a
very necessary
adjunct to
Reid W. Digges
high
-
bonds
mother
generation,
become
in
fact
are as
good
our
pres¬
sured cities and towns.
we
will
then
"have-not"
a
am
rather
is
in
instance of
bonds.
and water system through issue of revenue
as
like
general obligations with right of taxation.
tended
tion.
and
More than 3,000 American cities
and
towns
I
inhabited by approxi¬
lons
of
ways.
after
raw
sewage
into
only
water¬
Another 3,000 communities
a
slight
attempt
at
65% disease-laden.
live in
latest
very
of you
former
But
war
realize
that
flush your toilet,
you
themselves
cities
which
is
was
formation
other programs,
many
par¬
money
peacetime necessity.
who used to have
good idea now have the
to back it up.
As I
outlined -above, the popu¬
pleted
their
as
a
We Southerners
the
During
just
cities expanded so
impossible to tell
once a city street and
once a country road.
emergency
it
is the back¬
ticularly in the South, that started
as
a
war job and is being com¬
overrun
boundaries.
say
now
a
of
lations
cities have overflowed
allowed to which was
Also
because of
the lack
of into the adjacent counties. Unless
or
half treated,
there is a cooperative effort be¬
Into flowing streams or harbors. strategic materials, such as cast
tween the counties and cities and
Sewage-polluted waters are the iron, motors and pumps, commu¬
new communities that have sprung
same
as
garbage-littered back¬ nities were unable to secure mate¬
yards. In sparsely settled areas rials with which to hook up these up, no new public improvements
are possible.
Too many times this
and on farms there is no prob¬
new
developments with existing
cooperative effort has failed be¬
lem, but this country is no longer
sewage
systems.
As
a
result, cause of ancient rivalries existing
a rural nation and has become in¬
methods were employed for sew¬ between them. Each in turn is so
dustrialized
to
a
degree
un¬
treat¬
ment that leaves the sewage
those of us in our line
of work are charged specifically
with the duty of purifying the
waters of the country.
The con¬
that few
you
fixtures.
bathroom
venture
that
professions that with
approximately 22,000,000 in¬
are a lot of fun, like professional
habitants dump their sewage into
baseball
and
football
players. the nearest
flowing stream with
There are others that
are ex¬
However,
best
of
the
mately 30,000,000 people discharge the body wastes
a daily volume of 2V2 billion gal¬
flow untreated,
There are some
tremely grave.
Most
have
to.
homes that
na¬
may
Sanitation
Commission.
Agitation
started
some
20 years ago but the pro¬
gram for the Commission actually
started as a war measure.
It was
-
profes¬
sion that I
as
This you
ground history for the
of the Hampton Roads
plan of Federal aid in sanitary projects and concludes sound revenue
so
al
c
minded today.
The
Gives
that
you
tec h
Hampton Roads Sanitation
Commission
dif¬
sions but most¬
flowing
water.
District Commission
President, Virginia Industrial Wastes and Sewage Commission
appreciate your invitation.
spoken before many gath¬
nearest
the
into
board
By REID W. DIGGES*
for me to be here
I would like
great pleasure
about
This pollution
dreamed of
is
wiping out water-front prop¬
erty values, corroding dams and
bridges, obliterating bathing and
resort areas, and progressively de¬
stroying the shell-fish industries.
Recently I was
requested to
as a
are
result of mechan¬
production. The
business of farming has become
industrialized to an extent that
hard labor is unknown except in
backwood areas. One man today
ization and mass
age
have
disposal
that
would
jealous of its prerogatives that
cooperation is difficult if not im¬
possible unless the State takes a
never
gained the approval of the
health
authorities
the
in
even
hand. A district, therefore, may
natural waters
most dire circumstances.
Septic be the only answer. Then there
five billion
tanks were used with or without can be one administrative body
tons
of
our
soil flow into the
streams and rivers and is lost for¬ look in on several cities in the with farm machinery can do the drain
fields,
and
where
the with members chosen from both
ever.
The major portion of this
deep South, to wit: Palm Beach, work that 20 men did yesterday. ground water level was so high city and county to do a specific
comes from erosion as a result of
West Palm Beach, Lake Worth, The other 19 men and their fami¬
job.
It will not be loaded with
unscientific farming and the cut¬ Miami and Tampa — playground lies have moved to the cities and that it was impossible for the ef¬
other governmental responsibili¬
towns.
This
not
only
creates fluent to drain through the ground.
ting away
of timber reserves
spots of our great Eastern wealth
without
adequate replanting.
housing problems but it calls for In other instances, emergency out¬ ties such as police duty, the main¬
the condition of the ad¬
Some is the result of hydraulic —and
tremendous public
undertakings falls were built through which tenance of streets, the supplying
placer mining for metals and coal. jacent waters was almost in a for new water supplies, new roads,
raw
(Continued on page 40)
sewage was dumped over¬
However, a goodly portion of our state
of
complete
deterioration new bridges, and in most cases
stream pollution and consequent
a sewage disposal system hereto¬
from
the
effects
of
pollution.
destruction of fisheries and wild
fore lacking.
Most of the cities
These areas are still relying solely
in the United States whose indus¬
life is the result of the dumping
on
the
antiquated methods of tries were used in the great war
of raw sewage from cities, and in¬
dumping raw sewage overboard effort for the production of ships,
dustrial wastes from paper, pulp,
Coca-Cola
into the nearest creek or river. tanks, and guns, had their normal
textiles, and chemical industries.
of New York
There has been agitation raised populations almost doubled and
dition
is
bad.
all
of
our
Every
year
.
Bottling Co.
It has been
has
been
resources
two
stated that more soil
lost
and
natural
more
destroyed
last
the
in
generations than in
all the
period prior to that time from the
beginning of
civilization.
the
address
many
and
progressive
or
comprehensive
to
their
Coca-Cola Bottling Co.
They are not going
the farms and the saw
mills because
pro¬
retaining
people.
back
jealousy, between the adjacent
communities have forestalled any
of these cities are
these
places.
Instead,
they
of
Coca-Cola Bottling Co.
"
are
gainful
Pollution is
Boston, Mass., Aug. 11, 1947.
a
works—and they're big
dirty subject, and
only half of the job
of Chicago
Coca-Cola Bottling Co.
of Los
Angeles
Panama Coca-Cola
National
the
Security Traders Association, Inc.,
of St. Louis
»
machinery has taken
employment at
gram for the elimination of pol¬
to continue for
lution.
much higher wage rates in new
surroundings. This creates prob¬
Mr. Digges at
Elimination of Pollution
lems for the directors of public
by
Convention
health au¬
politics
thorities, but in most cases
finding
practice is allowed
*An
If this
by the local and state
problems
Bottling Co.
has been at¬ —big business—big leagues. The
Seven-Up of Houston
"A" & "B"
(Atlanta)
(Cleveland)
Red Rock
Public Utility
Government
Bottling Co.
(Pittsburgh)
Industrial
Municipal
Mining
Corporation
STOCKS
Specialists in SOFT DRINK
Traded in American
Funds
W. C. Pitfield &
HonRgsE S Company
Co., Inc.
30 Broad Street
Established
'
Teletype:
Phone:
HAnover 2-9251
NY 1-1979
NEW YORK 4
Members
74
New
Security
York
Affiliated With
W. C. PITFIELD
& COMPANY,
,
LIMITED
MONTREAL
Vancouver
Saint John
Ottawa
Direct
private
First National Bank
Kingston, Jamaica
Cornwall
.
Toronto
London, England
Dealers Association
Walnut 0025
N. Y.
Teletypes:
NY 1-375
BOwling Green 9-7400
Telephone:
Moncton
1914
Trinity Place, New York 6,
Telephone:
Halifax
Co.
Red Rock Bottling
STOCKS
BONDS
Inc.
Red Rock Bottlers,
CANADIAN SECURITIES
wire
to
Atlanta
& NY
1-2751
Office-.
Building, Atlanta 3,
Georgia
Teletype:
AT 468
14
THE COMMERCIAL and FINANCIAL
CHRONICLE
Thursday, August
38, 194,
What's Ahead for Utilities?
It
is
undeniable
that
public
utilities have come out of the war
period with fewer problems of
conversion
and
any
this
does
mean
that
all
is
serious
quite evident from the discussions
no
prob¬
rates
Though,un¬
as a
War
I,
tor,
are
high
and
mies
not confronted
both
Institute,
widespread
a
other
that
wages and
with
Yet,
interest
have
ment
additional
yet, there has been
in the
a
no
general de¬
utility rates
as
of the railroads. As is
case
for
new
serious
a
in¬
equip¬
handicap
far to
go
offset the advantages
reaped from
lower interest rates which have
fac¬
prevailed
higher
decade.
generally
in
the
last
Maintaining Demand
expan¬
It
is
adversely net
about.
Moreover, high
look
for
requests
for
one
rate
increases by gas
companies, com¬
munication
and
transportation
An
concerns.
a
month
Ralph H. Tapscott, Presi¬
the
Consolidated Edison
Company of New York, that on top
of
an
application pending before
the New York Public
Service Com¬
mission for an increase in
elec¬
con¬
tric rates, the
company will apply
for higher
gas rates to offset ris¬
ing costs of labor, fuel and mate¬
rials. In the
lyn
Underwriters and Distributors
Public
Union
granted
even
Telephone:
15.6%
bill.
The
and oil
and
INC.
York 5, N. Y.
been
by
the
have
rates
or,
in
with the workers'
acceptance
lower
public
utility jn.
whole, will have to
aggressive action
to
maintain public
de¬
their
services.
The
or
for
whole
philosphy
coal
of
economical
based on con¬
complete disposal
of
tinuous and
is
capacity production.
was
greater. It rose from
$374,851,000 to $416,340,000, an
ties
last
At
decade, has
the
recent
come
to
convention
Edison Electrical
ordinary advertis¬
ing and solicitation,
but, in many
Higher costs for cases it will mean
fostering indus¬
counterbalanced some¬ trial localization of
a
variety of
by further improvement in industrial
plants, which serve as
were
coal
for
each
kilowatt-hour
markets for services.
may be predicted that
tant factor
Offsetting the rise
in
fuel
influencing
tensive
and
abor costs was the reduction of
7% in the companies' tax
bill, due
mainly to elimination of the ex¬
cess profits
tax. There was also
a 25%
reduction in fixed
the
of
lower
interest
as
factor
But, these
savings cannot be counted on to
increase dividends in future.
Indeed the dividend
position of
increasing
matter
of
since
a
importance,
large part of
ment
a
must
new
capital invest¬
from
come
stock
is¬
sues.
investing public
fered
losses
on
which
purchases
suf¬
made
a
halt.
of
the
Institute, it
was
Electric Institute
"While gross
(of electric power com¬
have risen to new
high
..
.
revenues
panies)
records,
holder,
and
the
common
as represented
dividends
and
by
surplus,
stock¬
common
in
as
has
stockholder) the
whole is little better
off than he was
before the war.
In spite of
investor
as
a
record-breaking
nues,
the
come
STOCKS
GEYEiu
become
to
reve¬
ratio
of
operating in¬
investment in plant has
only risen from 5.6%
the railroads.
among
a recent
survey,
of the largest
such programs
that of the Cleveland
Electric
one
is
Illuminating
company's
170
nounced
$50,000
they
more
in
Office Square
HUBbard 0650
231 S. LaSalle
Street
FRAnklin 7535
BS-297
PRIVATE WIRE
SYSTEM
6011
ANGELES 14
2837
SAN
FRANCISCO
Russ
in
1937
15 Broad
4
manufacturing
each, or an ag¬
of $210,000,000
This section is
and
metal
and
It is estimated
these companies will create
32,000
In the vicinity of
Chicago,
Eidison Co.
and in the
West, the Pacific Gas
power.
the
&
Commonwealth
Electric
other
to
Co.,
utilities
together
in
the
than
$50,000,000.
Regardless
other
of
TELEPHONES TO.\
Portland, Enterprise
7008
Detroit, Enterprise
6066
factors
of
industrial
location,
the
utility
companies are exerting vigorous
efforts
in
manpower
offer
of
ties.
terms
to
of
attract
dollars
and
industry by
economical power facili¬
"Customer
(Continued
prosperity,"
on
Street, New York
5
Trading Department
MURRAY LERNER,
Managing Partner
YORK, BOSTON, CHICAGO
ANGELES, SAN FRANCISCO
are
velopment program costing more
6587
NEW
with
South
a postwar industrial de¬
HAnover 2-9780
Building
SUtter
LA-1086
LOS
an¬
spend
plastic production.
Exchange
1-2675
Michigan
CONNECTING:
will
engaged in automobile
production,
automobile
and
airplane
parts
SF-S73
CLEVELAND, PHILADELPHIA,
Hartford, Enterprise
Providence, Enterprise 7008
NY
412 W. Sixth
Street
CG-105
that
than
have
excess
locating there.
Members New York Stock
Exchange
Members New York Curb
Street
LOS
In
more
alone,
concerns
that
or
gregate
in
Company.
area
industrial
page 60)
Adler, Coleman & Co.
!
NEW YORK 5:
67
4
as
a
larger
industrial
economical
CO.
INCORPORATED
CHICAGO
railroad
America, and,
INSURANCE STOCKS
BOSTON 9
of
has
According to
im¬ pursuing
his income
largely at the
expense
of the
bondholder and
to some extent at
the expense of
the
preferred
Specialists in
10 Post
This
production, there will undoubt¬
edly be the same rivalry
among
power concerns for
locating plants
rates.
net income.
programs
companies.
one
power resources
of relief from these
ixed burdens, most of the
$117,000,000 increase in revenues went
into available earnings for stock¬
holders
it
impor¬
the reloca¬
of the results of
development in
result
a
advertising
power
been
charges
because
Indeed,
an
tion of
many large-scale manufac¬
turing companies will be the
in¬
of
energy generated.
proved
WHITEHALL 3-0782
This will in¬
volve not
only
operating efficiency; fuel con¬
sumption for the industry reach¬
ing a new low of 1.29 pounds of
As
a
utility charges
year
increase in their labor
telegraph utilities will
become
either received
general trend toward
lower utili¬
rates, which has marked the
NY 1-1337
BANK
mands
wages,
increased bill for
as
more
Services
increasingly
wage
increases
than
demanded, the wage boosts are during the large-scale stock flo¬ industrial jobs. The
utility has
tations of last
year has been re¬ a
sufficient to cut heavily into net
construction budget of $57,000,luctant to make new
commitments 000 for the three
earnings, unless offset by higher
years
ending
charges. And, it should he borne although yields available on new 1949. The new
company facilities,
offerings have increased substan¬ which
in mind,
higher charges, if con¬
comprise two 90,000 kilo¬
tinued, are hound to bring about tially and prices, based on earn¬ watt generators, are
being in¬
ings, are considerably lower.
reduced demand for services.
stalled to meet
anticipated in¬
As pointed out
It is quite
creased
by the Edison
demand
for
industrial
probable that the
WHitehall 3-1665
Bell Teletype:
materials
utilities, alone, last
lad
that
increase
expanding
In view of market
condi¬
nationwide telephone strike
was, tions,
in a
offerings of public utility
way, a victory for the Bell
shares
recently by underwriting
System, but it was a costly affair,
firms has been on a small
as
all strikes
scale.
generally are, and, The
of
COMPANY,
has
rates
authority to increase
Municipal
Street, New
Co.
many cases, are
preparing to make
such
applications.
The
recent
SECURITIES
57 William
Gas
increased
N. Y. Public Service
Commission.
The
telephone
and
Railroad
Industrial
BURR &
meantime, the Brook¬
companies
Utility
of
lectric
example of this is
the announcement made
nical improvements slow down or
a serious business
recession
costs
what
Required
During the coming months
ago by
dent of
and
fully offset higher
advance of 11%.
earn¬
may
improvements
service will not
take
technological
for
becoming
dustries,
manifest that future
fuel
Where Rate Increases Are
payments
wage
should
come
be
heavily
fect, this situation will
cash
mand for increased
charges
will
econo¬
offset
and
should modernization and expan¬
sion of output be required. In ef¬
are
heavy need ings of some
utilities, particularly
funds, they the telephone and
telegraph in¬
must contend with
rising costs of dustry and transportation
lines,
labor and materials and
rigid sys¬ and it is to be expected that
the
tems of rates and
charges. To this effects of wage increases as
well
may be added threats of increased as
higher fuel and construction
competition of government-owned costs will
be more
seriously felt
or subsidized utilities
projects. As in the years to come when
tech¬
for
costs
materials costs.
higher
have affected
rates for capital and
operating
struction
creased
higher
scale
expanding output, better load
utilities
whole
Electric
on
the
of
earnings on capital
brought about during the war by
after
World
convention
not expected in view of
the main¬
tained scale of
like the situa-
the
recent
Edison
lems ahead.
tion
the
at
hv
quarter; the ultimate
result of
the 'cheap
money' policy of
gov
ernment
during recent years."
manifest
and
are
projects and investment situation favorable for
sion of utilities services under
reasonable rates.
with
them
there
power
th»
decreased
one
definite policy
regarding Federal
smooth
sailing
5.9% in 1946. The
earnings of
holder have
bond
business,
but
not
SAKOLSKI
Dr. Sakolski reviews problems of
rates, new construction costs, and dividend
position of utilities in years immediately ahead. Sees need of a
than
other lines
of
adjustment
By A. M.
re¬
as
THE COMMERCIAL and FINANCIAL CHRONICLE
Number
iCoitv ention
15
Growing Responsibilities in Distribution
We
beginning to feel
now
are
By DON FRANCISCO*
has
by
weight of the load which
been
placed on distribution
the
would be priced beyond the reach
wartime expansion of our pro¬
the
of
ductive capac-
$
^
Pointing
ques¬
many
tions.
Can the ma¬
of
chinery
distribution
the
match
great
accom¬
plishments of
the machinery
of
production?
Are we doing
enough about
it now?
Does
distribution
Francisco
more?
do we
be
objectives?
like the war years,
to make things. Next
our
Last
was
year,
race
a
be
will
the years that follow,
race to sell things.
In
and
year,
a
lines the race for sales is
already on. The spotlight is on
many
distribution.
sents
in
shift
This
no
emphasis
repre¬
Through the
trend.
new
distribution has played an
years
What is generally meant is that
the
expense appears to be
More
economy.
high in
50%.
In 1939 the 20th Century
brought out an exhaustive
study of distribution.
It found
Fund
that 59% of the consumer's dollar
for
went
distribution,
and 41%
for the cost of production.
went
the fact that
Does
increas¬
an
ingly large proportion of the con¬
sumer's dollar goes into distribu¬
tion costs warrant the conclusion
that they are too high, or that our
of
system
distribution
is
ineffi¬
Why
Percentage
Have
Costs
Gone Up?
| be
review the facts, let's
popular conception,
something more
than wholesaling and retailing. It
is much more than selling.
Contrary
to
distribution
The
such
and
is
that
fact
it
absorb
must
inescapable costs as taxes
transportation is frequently
overlooked.
Not
long
Commerce
adopted
the
of
Chamber of
the
ago
this
States
United
"Distri¬
definition:
bution" is the term used in Amer¬
ican business
activities
to
all
embrace
the
in
finding
customers for goods and services
and in moving goods, both geo¬
graphically and through the chan¬
nels of trade. Vln other words, it
includes warehousing, transporta¬
employed
tion, wholesale and retail market¬
ing, advertising and a substantial
part of research, engineering, ac¬
Are Distribution Costs Too High?
But how do
not
judge whether
we
distribution
high?
Too
what?
What
high
costs
in
we
are
too
to
relation
standards
urement shall
*An
address
the
review the
why
reasons
of
meas¬
use?
by
Mr.
American
Francisco
Marketing
Association.
costs
amounted to
nothing when each family
produced practically everything it
or
needed-.
When
production
That
called for advertising.
In
effort
further
a
to
attract
ience and wide selection.
For
made
example, the cobbler who
shoes for those who called
his shop had almost no distri¬
bution expenses. But if he could
at
sell
100
could
times
as
introduce
many shoes he
machinery and
make them for much less.
do this he had to
But to
be
prepared to
shoulder additional expense for
freight, dealer margins, sales pro¬
motion and advertising.
The
became
cen¬
was
introduced, costs were reduced, or
the quality of merchandise was
improved, or both. But to make
this possible the volume of pro¬
and
arately.
The important figure is not the
production and dis¬
costs, but the total which
the consumer must pay.
If the
over-all cost is reduced by adding
distribution expenses, then the net
result is a gain for the community.
reduction
At the
costs.
in
additional
cobblers
would
If he did do it
tion
expenses
for distribu¬
Percentage Figures Are
unimportant either to
or to the public.
Thus it is apparent that the 59%
which
goes
for
distribution is
partly responsible for the econo¬
was
Sometimes Misleading
him
mies
of
expenses
this
production
mass
therefore for
figures do not re¬
only the ratio
between the expenses of produc¬
tion and the expenses of distri¬
bution.
The percentage cost of
distribution may be rising while
Percentage
veal actual costs but
and
keeping production
down to
41%.
Without
the
great effort to increase the
volume
of
sales
our
standard
of
unit
actual
tion
the
and
consumer
living would be much lower, for
may
(Continued
to
bridge
essary volume.
Part of the sav¬
ings of machine production was
shifted to marketing expense. The
size and importance of the distrib¬
uting task had increased enor¬
Direct Private Wires
mously.
fact
passed
out
that
of
the
the
cobbler
picture
has
as
a
maker of shoes is evidence in it¬
self that,
in spite of the increased
distribution costs of manufactured
Dean Witter & Co.
shoes, the total cost to the con¬
is
less
for
comparable
MEMBERS
sumer
NEW YORK STOCK EXCHANGE
It
should
than the cobbler.
pay
for
his
added
SAN FRANCISCO STOCK EXCHANGE
LOS ANGELES STOCK
HONOLULU STOCK EXCHANGE
be
and other principal Security
14 WALL
STREET, NEW YORK 5, N. Y.
Telephone BArclay 7-4300
He had to man¬
LOS ANGELES
SAN FRANCISCO
distribution costs
financing, transporting, ware¬
two
ing,
transporting,
warehousing,
selling and advertising.
were
better
Specialists in
products
devised
introduced.
some
they needed to be
People had to be told
way
that
new
things, or
RAILROAD
COMPANY
61 BROADWAY, NEW
YORK 6, N. Y.
and Terminal Bonds
Equipment Trust Securities
Underlying Public Utility Bonds
McGINNIS, BAMPT0N t SELLGER
Members New York Stock Exchange
YORK
TELEPHONE
WHitehall
PHILADELPHIA TELEPHONE
RIttenhouse
4-3344
6-6161
'
61
BROADWAY
Tel. DIgby
Bell
System
Teletype—NY 1-2288-89
4-4933
EXCHANGE
and Commodity Exchanges
between the place
of production and the place of
consumption, and the other be¬
tween the time of production and
the
time
of consumption.
This
meant added expenses for financ¬
and
54)
HAWAIIAN SECURITIES
one
new
on page
AND
■
gaps,
to
be declining.
nec¬
ufacture shoes for enough less to
had
distribu¬
cost
PACIFIC COAST
there was
necessarily a corre¬
sponding increase in distribution
get sales over a larger area.
Gradually people produced at
home a smaller share of the goods
Producers
of
cost
total
time
emphasized that
the large shoes manufacturer sell¬
ing in a wide market, had to do
more than produce shoes for less
places.
the
pro¬
same
could be con¬
sumed by those who produced it.
So the producer set out to find
more customers.
He began to add
distribution expenses in order to
they bought
the market
then
BONDS & STOCKS
NEW
con¬
change from hand labor to
much greater than
&
Railroad Mortgage
be
ratio between
then the fact that he had incurred
quality.
in
FREEMAN
should
integral part of total
not dealt with sep¬
machine production resulted in a
duction of each article had to be
they consumed and
a
larger
share in
that
keep the business.
customers, new services were of¬
fered, such as credit, delivery, the
return-goods privilege,
conven¬
The
tralized and division of labor
As
before
us
Distribution
little
new
counting and financing.
or
Let
creased.
what is in¬
sure we agree on
cluded in the cost of distribution.
costs
as an
costs,
do
available.
were
costs in order to achieve the
the share for distribution has in¬
we
sidered
housing and selling. If he couldn't
needs
revolutionary
and
of the consumer's dollar has
been devoted to the expenses of
Before
large share of our citizens.
all-important fact is that
distribution
felt
duction
cient?
more
distribution.
a
The
race to
improved things, that filled long-
re¬
lation to the percentage that
goes
for the cost of production. In 1870
distribution
costs
amounted
to
increasingly important role in our
! expanding
percentage of the consumer's
that goes for distribution
dollar
bution expenses had increased to
trends? Where
stand today? What should
will require
tribution
cost
the long-range
are
years
What
it
Will
coining
only 25% of the consumer's dollar,
production 75%. By 1930 distri¬
cost too much?
Don
out
sell things, advertising execu¬
tive denies relative cost of distribution is
increasing. Stresses growing impor¬
tance of
selling and advertising because of high production levels, increasing
sales resistance and severe
competition. Urges minimizing wastes, increasing
marketing efficiency and giving lower prices to consumer.
ity. This raises
-
i
of the things we take for
granted would not be available or
many
Vice-President, J. Walter Thompson Co.
NEW YORK 6,
N. Y.
Bell System Teletype NY 1-310
1
•
HONOLULU
the
16
THE COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August 23,
1947
NSTA Educational Committee
Urges More
Avenues of Public Relations
»
Morton
A.
_
Cayne, Chairman of
Report recommends change of
the NSTA Educational Committee
submitted to the Convention on
Aug,
the
11
mittee
which
dition to
f
his
com¬
of
While
means
i t i
business,
hanged
ions
be
to
the
Committee.
The
he
Committee
s
of
made
vere
Morton
A.
ligher
Cayru
with
year
education.
It
The
inquiries
institutions
was
found
program or
a
of
the
colleges are very interested
having the security business
purpose
the importance of
of
our
that
Relations.
Public
Throughout
people
few
a
"trial
where
of
many
corporation
dollars
sound
Stock
in
films,
the preparation of
slides and printed
films
meetings
well
attended
answer
were
membership of the National
Security Traders Association.
product to either the trade
dent when
finance
that
contribute
to
the
or
the
during
of
Way
of
Life"
Committee,
mittee
and
activities
on
trust,
will
deeply
our
that
among our members and
those who follow us as
members
of this Committee.
Respectfully submitted,
the
EDUCATIONAL
growing
popularity is evi¬
meetings are again re¬
jCOMMITTEE,
MortonSA. £ayne, Chairman
Roy W. Jordan
Charles E. Livingstone
Charles Lob
Charles J. Rieger
seen
is
fully
of
statements
of
corporations that clearly indicated
that a great deal of time, effort
and dollars went into the prepara¬
tion of the statement. This, be¬
yond
question,
any
corporations
their
are
reveals
that
anxious to have
stockholders
know
their
will
joint sponsorship
Exchange and the Cleve¬
the
land
be
meetings
once
poration
be
forbidden
to
traffic
in
the
security of his employer.
A
few
corporations
make
it
a
point to see that their
employees are at least exposed to
opportunity of being a stock¬
the
holder.
have
Countless
either
relationship
or
to
be
program
corporations
overlooked
While it is not
this
vital
waiting for a
set up for them.
are
a
rule
and it does
not
always hold true, it neverthe¬
less is interesting to note the ex¬
cellent
tions
"management-labor" rela¬
that
do
exist
in
the
many
corporations that have welcomed
the
employee as a stockholder.
Probably countless thousands of
workers
are
not
aware
that their
least
presenting
a
Members of National
cor¬
securities
Convention Comm.oi
The Boston Securities
are
Last
Spring, the Cleveland Se¬
curity Traders Association held a
dinner
the
Traders Association
meeting,
usual
speaker
of
definite
that
at
available to the public.
departing from
Instead, an
nationally
known
outstanding,
and its products.
Cer¬
the company employee is
and
held
whose
the
not
NEW YORK
affiliate,
will
month
a
company
Company
a
Traders
tainly,
&
program.
General
Chairman: Joseph Gan¬
non, May & Gannon, Inc.
Corporate Forum: Dayton P. Haigney, Dayton Haigney & Co., Inc.
Entertainment: Hubert N. Bernard,
retained and officers
was
N.
S.
T.
A.
were
invited
together with
a
large part of fi¬
industrial Cleveland.
attendance
was
nancial
The
and
the
Jr., Schirmer, Atherton & Co.
Finance: John E. Sullivan,
Jr., F.
L. Putnam & Co.,
Inc.; Lloyd B.
flattering.
Subsequent
notices
press
innovation
allowing
and
the
the
public
business discussed.
The
to
praised
value
hear
of
Waring, Kidder, Peabody & Co.
Wright, F. J. Wright
our
Golf: Fred J.
& Co.
Commitee
strongly urges
and recommends that the
N. S.T. A.
and
its affiliates seek
understanding
Hotel: Anton E. Homsey, du Pont,
Homsey Co.
better
a
Ladies:
and help from the
of
success
our
&
is very dependent
upon
entire
industry. We
program
the
B.
Maguire, E. H.
might
a
the
identical courtesies that
extended to the potential trust
account.
For more than 14
years we have
been deluged with
laws and rules,
volumes of mail
conceivable
describing
"do
or
every
don't"
a
—
W.
Moore,
Sumner R. Wolley, Coffin &
Burr, is President of the Boston
Securities Traders Association.
Christiana Securities
Municipal
Public
Common and Preferred
Utility
Analysis
Wood, Gundy & Co.
Francis I.
Incorporated
Members New
Wall
Street,
New York 5
ONE
WALL
ST.
WILMINGTON
Toronto
Montreal
Winnipeg
Vancouver
London, England
'
'
du
NEW
&
request
Pont
New
YORK
York
5
'
PHILADELPHIA
Private
BOSTON
upon
Stock
•
Direct
CHICAGO
York
•
Wires
Shea
Hunnewell & Co.
Government
Provincial
J.
Reception: Ralph F. Carr, Ralph
F. Carr & Co., Inc.
Registration: Robert H. Warren,
Geyer & Co., Inc.
Transportation: Paul B. Monroe,
with the
are
Alexander
Arthur Warner & Co., Inc.
Publicity: John L. Shea, Jr.,
& Co.
from the book of
page
Co., Inc.
Prizes:
large metropolitan banking
institution which treats the news¬
boy opening a savings account
Canadian Securities
James
Rollins & Sons.
Stock Exchanges and other
security groups in the intelligent Municipal Forum: F. Brittain Ken¬
nedy, F. Brittain Kennedy & Co.
promotion of our business with
Printing: Herbert C. Smith, Blyth
the public. The
many
borrow
14
our
thinking
ings
We have all
Established 1922
pleas¬
arouse" profound
sumed in the fall of this
year.
It is possible that the future
meet¬
corporations
astounding.
qAllen
our
this Com¬
public. The cooperation and will¬
ingness on the part of many of
have
as
members of
whose
whole¬
these
"American
an
the
to have served
ure
showing of the film.
A
of
appreciated, it has been
to
following
matter. These have been designed
to sell the company and/or its
not one
hearted cooperation is
the
hand
on
questions
—
to
presentation
behalf
this "
shown.
Officers of
of
to the
On
reasonably
security men
by
businessmen.
period
thoughtful
meetings
were
entire
we
tech¬
business.
were
Exchanges and all other features
formula for
program that could be presented
to
of
bond
many
balloon"
sound
and
hundreds
are
happy
good
were
in
With 28 affiliates located
in vir¬
tually every important
financial
center in the nation, it
should be
the obligation and the
duty of the
N. S. T. A. to foster a
program de¬
signed to secure the assistance of
the
entire
industry
in
the
and the public has been demon¬
strated in Cleveland. Recently the
local Stock Exchange conducted
The
there
be
Strangely,
that
be
obtain
intelligent suggestion or idea
to "how to get an order." '
buyers during the war—admitting
that the government
advertising
program played no small part.
The value of a stronger rela¬
tionship with both the corporation
of
nation
we
securities,
would
fear
single step has been taken
this
broker
a
of
sense
unknowingly
nical violation and
yet
avail¬
are
that
and
them.
corporations, in whose securities
trade, who have spent millions
present its story. Lectures, illus¬
trating the operations of the in¬
dustry, the
believes
industry has not taken full
advantage of the several avenues
:hat
objective
Committee
our
of
in
Luring the past year the Edu¬
cational Committee has
conducted
a
few inquiries and has
made a
few studies
having as an
interest in having
an
security business visit their
meetings and present their in¬
dustry.
'
title.
During the past
these
and
Commerce
securities
them
dealer
a
serve
the
Group warrant the change of
n
of
or
Kiwanis
the
Clubs
Chambers
was
to
checking
groups.
Rotary
all manifest
of
he
0
text
a
Clubs,
reception
limited
our
business
with
Rela-
efforts
in
various
Educational
Public
identical
An
employers'
able
gained
be
the
and warmly
cordially
invited.
the
10
t i
the
report
follows:
either
from
that
Committee
this
Committee
Committee."
a
recommended
of
Public
e
The
is
ame
com¬
changed
a
It
rec-
mittee
"t h
s
both
been
prepared, the Committee repectfully
offers
the
following
houghts and recommendations:
name
the
Rel
e
definite schedule has not
a
een
ended
that the
of
corporations be contacted to interest employees in opportunities
sug¬
interest in the
omm
might
becoming stockholders. Cites experience of Cleveland Securities Traders
Association, and asks help of local stock exchanges.
ad¬
creating
secu r
horrible
Rec¬
addi¬
tional
o
of
in
in
gesting
report
ommends
to Public Relations Committee.
name
to
Curb
&
Teletype:
;•
correspondents
WASHINGTON
•
Co.
Exchanges
NY
1-1181
ROCHESTER
in
ATLANTA
•
TORONTO
What They Did at
Municipal Croup Hits
Tabling of Hinshaw Bill
NSTA
The Convention
(Continued from page 5)
put on. This is a show indeed
was
done properly and the final
unveiling looks something like a
circular flower
bed with the
bright red lobsters in the center,
golden, yellow corn circling just
when
Chronicle" had two
very
and energetic representatives.
E.
the
of
broiled
spring
chicken, deep dish apple pie with
ice cream, coffee and beer. It was
all
who
came
credit
hands
who
ton.
As
to
Supplement
1st
New York,
Clarence
Gross:
3rd
Whittemore's
J.
Gross:
one
4th
B.
Maender, St.
Cornell,
A.
R.
Fred
Gross:
New
Morton,
York, Wallet and Key
5th
Dallas,
dozen Golf Balls.
Gross:
Wright,
Case.
ladies
Thursday after¬
on
New York,
Sam Junger,
Traveling Bag.
the Shera¬
ton roof
followed by a motor
launch
sightseeing trip around
the beautiful Charles River Basin.
evening was,
about it, a very hot
but all the brave Traders
Thursday
frank
and
had
e's
report
past
has
Committee
your
rather
filled
vania,
your
the
diately after another
body will disapprove.
much
only
as
we
considered
this was
temporary stay. The
of Commissions have
a
opin¬
been
known to change
from time to
time and we could not accept this
ions
being the final answer to our
The importance of this
bill to the investment banking in¬
as
problem.
uniform
practice
and
are
we
on
in
examination
record
with the
authorities at this time.
Our thanks go
to the President
NSTA, Mr. Mosley, for his co¬
operation
with
the
municipal
branch of
the National, to the
of
tempestuous
a
with
hopes and
one;
disap¬
dustry, states
train
Special
at
a
badsents
very
many
Creighton Riepe
J.
states and political
Trevine, Pennsyl¬
dozen Golf Balls.
Hormel, Boston, one
Golf Balls.
Net:
5th
Din¬
Sumner Wolley,
Over-The-Counter Securities
Boston,
of Rye.
Bottle
Boston, oneBalls.
6th Net: Bill Burke,
half
dozen
Golf
around
left
Highest Nine: Chas. Scheuer, Chi¬
1:30 a.m.
cago,
is to
Dallas,
The convention next year
in
November
in
held
introduced
Roy
one
dozen
the lucky win¬
to
awarded
was
4th Net: E. F.
golf
prizes, motion picture prizes, etc.,
Dallas
letter to
Blue List, the "Dealers Digest,"
and municipalities, "Financial Chronicle" and to the
questioned and its Municipal Committee of the Bos¬
pointments.
Our main objective
further processing is
most cer¬ ton Security Traders' Association.
for the year was the passage of
It is strongly
Your
Chairman
has
enjoyed
the Hinshaw Bill.
This bill, as tainly advocated.
suggested that continued effort working with the Municipal Com¬
you know, was the outgrowth of
be applied at the outset of the mittee
and
representatives and
the Boren Bill, which had such
new Congress and all members of
their cooperation during the past
wonderful support from our last
the Committee continue to fol¬
Committee
and
only
went
to
year has been greatly appreciated.
low and work towards ultimate
death by virtue of adjournment of
Respectfully submitted,
passage.
the 79th Congress.
Your Com¬
MUNICIPAL COMMITTEE,
We
appreciate
the
guidance
mittee's
efforts
were
expended
L. A. Strader, Chairman
given
the
Committee by
Mr.
with government officials, Con¬
Stanley G. McKie
David M. Wood, Attorney of New
gressmen and other organizations
H. Frank Burkholder
with the idea of immediate pas¬ York. It is the hope that the fu¬
Russell M. Ergood, Jr.
ture Committees will work closely
sage
of this all important bill,
Harold R, Chapel
H. R. 1881. Unfortunately this bill with this gentleman, who repre-
one
Bag.
Net:
3rd
to be
night
went
hearty steak dinner and a
Dance.
At the party
Texas.
with
year
party,
cocktail
a
Golf
New York,
Carl Stolle,
Net:
2nd
ner
be
our
will approve an issue of
bonds for bank quality and imme¬
-
Net:
noon-had luncheon on
ners.
to
agency
.
Boston,
of Scotch.
Bottle
come
municipal and rev¬
Many instances have
attention where one
bonds.
has never been
Louis, Ice Bucket.
1st
were
e
The
herein.
a
commit-
t
Tournament
Gus Levy,
Gross:
2nd
throughout the United States this
week.
It, too, appears elsewhere
ahead
of
follows:—
Ludwell A. Strader
I" Traveling Bag.
story of "What Is New England's
Thrift?" is probably being retold
The
o n.
text
the
been
Bos¬
by
that the Minute of
Chairman
i p a 1
c
Commiss i
Prizes Awarded at the
elsewhere in this
the "Chronicle"
Mr.
success.
N. S. T. A. Golf
hardly necessary
except that most of the listeners
thought it was a fair and coopera¬
speech.
and "his
Aug. 12, 1947
Commissioner
enue
SEC did
Woodland Golf Club
comment on it is
tive
muni
The
Commissioner Hanrahan's
speech is printed
a
tersely stated
definitely free
The
really worked hard to make
this convention
SEC and Laur¬
F. Whittemore, President of
Reserve Bank of
Joseph Gannon
lationship to
examining
This dis¬
away with the necessity
bond
parity of ideas and rulings has
trading
of further legislation on the sub¬ caused many dealers considerable
from
inter¬
ference by the ject.
The Committee did not ac¬ trouble and is not too good for
Our plan
Securities and cept the ultimatum that the SEC customer relationships.
Exchange Minute solved the problem, inas¬ is to attempt to get some form of
yourselves,
tremendous
a
by
importance of Efforts to revive the bill during
having . Con¬ the session were made by members
of the Committee with little avail
gress pass the
as the Chairman of the Interstate
Hinshaw Bill,
which
would & Foreign Commerce Committee
charming wife, Betty, and to all
of the members of the committees,
Hanrahan of the
the Federal
to
was
interested
of this legislation.
was
and
the
stressed
of
the passage
in
Your
Committee
has
been
by-passed by the sponsor
the House Interstate & checking the question of uniform¬
Foreign
Commerce
Committee. ity of bank examinations with re¬
sue
Chairman
Committee,
Municipal
of you
it should be.
as
affair
entire
all
enjoyed
which is just
Committee meeting and
election of officers. In the after¬
noon a Corporate Forum was held.
ence
inside
have heard,
we
National
speakers were
the
the
subdivisions which are
time, and with world affairs being
in the forefront, this domestic is¬
report to the Convention
at Boston on Aug.
NSTA
11, Ludwell A. Strader,
of
picture
a
the
camera.
own
ports
shoved off in the boat for Boston.
Thursday morning there was a
The
In his
of
photographer,
took
but
Hal
better than
all, the Bostons were very
happy to have you and from re¬
certain
the crowd.
o'clock
9:00
Harding,
able
covered
All in
after the meal a
About
have
much
everything
his
with drawn butter, a
lobster,, plus half a
sleepiness crept over
convention
Mr.,
clams
noticed
must
this amateur and his
outside of the lobsters, gray clams
and the brown stones. The menu
consisted of clam juice, steamed
live
Murphy
17
CHRONICLE
THE COMMERCIAL and FINANCIAL
Convention Number
Jesse
Sanders,
A.
Leather Hoods.
Highest Eighteen—Tom
Jr. of
promises the boys a won¬
O'Rourke,
Pennsylvania, Pint Liquor.
Highest Score on Any Hole—M.
derful time.
Mooney,
the ap¬
proximately 500 who attended the
Co.
Eastman, Dillon &
E.
STOCK EXCHANGE
Liquor.
Among those noted in
convention,
Past
Presidents:
who has
never
Most Eights: F. J.
following
the
were
when he
was
on
the war years
E.
E.
Perry Brown,
Parsons,
Joseph
Jr.,
W.
Willis M. Summers, Henry
nold, and,
President,
of course, our
V i c
Mosley.
Wm.
Gus Levy, R.
A. Morton,
P. S. Russell, total,
317; Boston, 335;
Philadelphia,
340; Chicago, 402.
List
Blue
Municipal
Prize: P. S.
Russell, New York.
Sener,
J. Ar¬
New York
Sam Junger,
military duty; J.
Gentry Daggy, Arthur E. Farrell,
Thomas
Graham,
Edward
D.
Jones,
by
Prize—Won
City:
tion except during
NEW YORK 5, N. Y.
BROAD STREET
Balls.
\
City
conven¬
a
15
Laird, Pennsyl¬
vania, one-half doz. Golf
Blizzard,
Herb
missed
MEMBERS NEW YORK
Pint
Pennsylvania,
Guest Prize:
present
one
Boston,
Balls.
(Continued on page 18)
The
INDUSTRIAL, PUBLIC UTILITY,
and MUNICIPAL
Jim Lynch,
dozen Golf
RAILROAD
MaRKETS
SECURITIES
maintained in all classes of Canadian
and internal
Stock orders
UNLISTED TRADING
STOCKS
BONDS
bond issues.
executed
Exchanges, or net
DEPARTMENT
DIRECT
PRIVATE
external
on
the Montreal and Toronto Stock
New York markets
WIRES CONNECT
quoted
OUR NEW YORK, BUFFALO,
MONTREAL OFFICES
BELL
on
SYSTEM
request.
TORONTO AND
TELETYPE NY 1-702-3
Laurence M. Marks & Co.
Members
New York Stock
New York Curb
49 Wall
Exchange
Exchange (Associate)
Street, New York 5, New
Telephone HAnover 2-9500
Toronto
York
Teletype N.Y. 1-344
Buffalo
Philadelphia
London, Eng.
Ottawa
40 EXCHANGE
Telephone
PLACE, NEW YORK
WHitehall 4-8161
5
Montreal
Winnipeg
Vancouver
18
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, August 28,
1947
Frank
What They Did at the Convention
E.
E.
Haverstick, St. Louis
Larry Marr, Chicago
Geo. McCheary, St.
Peters¬
(Continued from page 17)
Scores at the Golf
burg
J.
Gross
Carl
cap
Net
14
65
79
78
12
76
66
10
Ted
66
77
10
27
Plumridge,
97
30
90
22
68
BostonBoston
82
13
69
85
16
69
Schlossor, New YorkSullivan, Boston
A. Morton, New
York—
99
30
69
91
21
70
E. D.
71
Emmett
Bill
Burke,
Gus
R.
79
67
8
E.
J.
Byrne,
Stan
93
20
74
13
30
75
4
75
15
89
14
20
75
16
75
100
25
75
14
75
El,
93
17
76
K.
R.
89
75
22
H.
N.
Bernard,
B.
Dixon,
Digges,
Boston— 100
Greensboro. 102
W.
N. C
76
6
86
Mettatal, Boston
93
Glenn, Atlanta——
88
Philips, Jr., Penna..
86
Sam Varnedoe,
86
GeorgiaDon Sherwood,
Chicago— 108
Larry Wrenn, New York—
89
95
76
91
14
S'8
Ralph Carr, Boston
Ray Murray, Boston
77
St.
91
14
77
,
77
4
78
83
25
85
25
88
119
20
97
77
8
25
113
E.
Mooney, Penna
Chas. Scheuer,
Chicago
77
26
83
Irving Gersten, New York
120
Tom
O'Rourke, Penna
131
No
Cards:
2C
15
Koener,. Chicago;
Thornbur^
cinnati; C. W. Williams, New
York '
of
Brokers
.—
—
95
87
Morris, Atlanta——
93
R. M.
Ergood, Penna.
85
Paul Yarrow, Chicago—^ 102
78
8
78
30
78
10
79
21
79
25
79
8
80
15
80
8
80
12
81
4
81
21
81
1st
Distributors
O. Ritter
John
E.
Vice-President:
Graham
John E.
ford, Conn.
2nd
George F.
Eisele
Robert
Graham, Brainard-Judd
&
'
Vice-President
Hartford, Conn.
Secretary-Treasurer:
Dealers
and
Cin.
Connecticut
78
8
Bligh
President: Leonard O.
Ritter, Paine, Webber, Jackson &
Hartford Conn.
and
101
Kennedy, Bostcr
Star
R. W.
Security Traders Association
78
10
Leonard
Underwriters
100
3^
Frank
Norfolk,
Jack
New York
6
7
New
-
Jack
S.
91
98
Roggenburg,
E. T.
75
82
Louis
S.
York
74
79
York
P.
73
17
90
Philips, Penna—
Hanrahan,
73
Russell, New York—
83
Mort Cayne, Cleveland—
103
F. J. Wright,
Jr., Boston61
105
Jim
Sumner Wolley,
John
New
19
92
71
87
*
Kelly, Springfield
Maguire, Boston
Mil on
Isaacs, Chicago...
Larry Doyle, New YorkPaul Munroe,
Boston——
E. R.
Mulcock, Syracuse—
67
Stolle, New YorkRoy Trevine, Penna
E. F, Hormel, Boston.
—
Boston
Jim
67
94
Lynch,
M.
15
91
—
V.
Mosley, Penna
F. E.
Maguire, Penna,
J. B.
Cornell, Dallas
John French, New
York
Handi¬
S. Junger, New York
Clarence Maendcr, St. Louis
Gus Levy, New Yoik
Jim Lynch, Boston
J.
R.
86
Lynch, Boston
90
M. L. Barrysh, New
York. 108
Ken Schoen, Nashville
110
George F. Eisele,
Coburn
&
Curtis,
Co., Hart¬
Middlebrook,
Robert Bligh, Fahnestock &
Co., Torring-
ton, Conn.
Governors: James P.
English, Cooley & Co.,
Hartford; Frank J.
Murray, Day, Stoddard &
Williams, Inc., New Haven; Andrew L.
Tackus, Putnam & Co.,
Hartford; George A.
& Co., New
Dockham, Hincks Bros.
Haven.
Corporate and Municipal Securities
Elected: For
1946-1947; Took Office: November
1946; Term Ex¬
pires: November 1947.
Florida
Security Dealers Association
Traders!
OUR
FACILITIES
Offices
Trading Departments
24 located in 20
cities.
Salesmen's
Corporates
cipals
Headquarters
in
and
all
Thomas
Muni¬
President:
burg.
principal
■
Vice-President:
offices.
'
Boston
358
offices
the
Los
to
men
Angeles.
secondaries
new
and
burg; Howard
principal offices.
with
Took
Office:
November 21, 1946;;
Georgia Security Dealers Association
& Curtis
1879
Members New York Stock
and other
J.
Exchanges
Fleming Settle
NEW YORK
CLEVELAND
GRAND RAPIDS
•
•
.
•
HARTFORD
MINNEAPOLIS
SPRINGFIELD
CHICAGO
CONCORD
•
ST.
DETROIT
.
.
WORCESTER
•
and
J.
Vice-Presidents:
Jack F.
•
DULUTII
•
LYNN
Julian R.
Glenn, Courts
Georgia.
Executive
Hirshberg
Hirshberg,
& Co.
Robert C.
R.
&
C.
Mathews, Jr.
Co., Inc.
Norris &
Hirshberg, Inc.,
Mathews, Jr., Trust Company of
>
Committee:
Johnson, Lane, Space
&
The
Officers,
and
Thomas
M.
Johnson,
Co., Inc.; Sam L.
Varnedoe, Varnedoe, ChisJames, Clement A. Evans &
Co., Inc.;
Milhous, Martin & Co.
National Committeemen
J. R.
Neal, Wyatt, Neal &
Lex
Waggoner;
Jolley, Johnson, Lane, Space &
Co., Inc.; J. W. Means, Trust
Company of Georgia.
holrn
PROVIDENCE
R.
Fleming Settle, J. H. Hilsman
Secretary-Treasurer:
LOS ANGELES
PHILADELPHIA
PAUL
Julian
<
President:
BOSTON
Elected: November
21, 1946;
Term Expires:
October 31, 1947.
cisco.
ESTABLISHED
.
,
connection
Paine, Webber, Jackson
•
Corp., St. Peters¬
S.
Dallas and San Fran¬
In 19 states.
MILWAUKEE
Morrison, The Ranson-Davidson
Wheeler, Leedy, Wheeler & Co., Orlando.
Committeemen: George M.
McCleary, Florida Secu¬
Co., St. Petersburg;
Clyde C. Pierce, Clyde C.
Pierce Corp.,,
Jacksonville.
Telemeter
Direct
ELM IRA
O'Routke, Inc.,
iv
rities
Registered
•
Peters¬
National
rwx
AKRON
R.
Corp., St.
Nelson
E. Arries, D. E.
Arries &
Co., Tampa; George
McCleary, Florida Securities
Co., St. Petersburg; C. T.
John Nuveen &
McCready,.
Co., Miami; Arch R.
Morrison, The Ranson-Davidson
Co., Inc., Miami; T. Nelson
O'Rourke, T. Nelson O'Rourke, Inc.,,
Daytona Beach; Thomas S.
Pierce, Clyde C. Pierce
specials.
All
Arch
Morrison
M.
experienced in
distribution of
issues,
Arch R.
C. Pierce
O'Rourke, T.
'
■
Co., Inc., Miami.
Governors: Don
Producers
Pierce, Clyde
Nelson
Secretary-Treasurer:
'
'
Wire System
Connecting all
from
T.
Daytona Beach.
'■
.
Private
T. Nelson O'Rourke
Thomas S.
,
In 9 cities.
A
S. Pierce
&
Co., Inc.;
Wayne Martin
Elected:
July 1, 1948.
Walter
May 30, 1947; Took Office:
July 1, 1947; Term Expires::
Michael T. Kelleher, President of Boston Chamber
Securities & Exchange Commission; Vic Mosley,
Joseph Gannon,
May & Gannon, Boston; Sumner
RICHARD F.
Van Tuyl & Abbe, New York
ABBE,
H.
Rothschild & Co., Boston,
*ADAMS, ROBERT
Mass.
*
.
ARNOLD, HARRY L.
Webber,
Jackson
Curtis, New York
,
v
Paine,
&
NSTA Convention
Robert Garrett
"'BLIZZARD,
E.
Finance, Chicago,
111.
York
BOYNTON, HERBERT
H.
Boston, Mass.
'
F.
Boynton
Schirmer, Atherton
New York
Eastman
York
&
Dillon
Co.,
New
Goldman,
Ernst & Co., New
York
..
Newman, Brown
*
Tucker, Anthony
Ralph
Stifel, Nicolaus &
SECURITIES
Carr
F.
Co., Inc., St.
&
Co.,
Inc.,
BOND S
—S T O C K S
ELIZABETH M.
&
Boston,
Co.,
Mass.
COMPLETE CANADIAN
FINANCIAL SERVICE
CASWELL, C. WARREN
McGinnis, Bampton &
New York, N. Y.
CAUGHLIN, EDWARD
J.
Caughlin
Sellger,
inquiries
invited
J.
&
Co.,
Philadelphia, Pa.
A.
(Continued on page 20)
Louis, Mo.
Mrs.
CANADIAN
& Co., Bos¬
Boston, Mass.
Edward
BUNN, JOHN W.
ton, Mass.
and
..
& Co., New
Orleans, La.
Schirmer, Atherton & Co., Bos¬
Dallas,
Rauscher, Pierce & Co.,
Hunnewell
St.
Co.,
BROWN, W. PERRY
♦BERNARD, H. N„ JR.
Mr.
&
Sachs
Louis, Mo.
BARYSH, MURRAY L.
Phila¬
delphia, Pa.
CASEY,
BROCKMEYER, EDDIE H.
City
*Denotes
& Co., Bos¬
ton, Mass.
BARTON, D. FREDERICK
MARGUERITE A.
Wood, Jr. & Co.,
♦CARR, RALPH F.
♦BREEN, FRANK A.
Seaver & Co.,
York 6, N. Y.
Telephone DIgby 4-4100
ton, Mass.
Md.
Md.
BARMONDE, PHILIP T.
C.
Broadway, New
CARR, FREDERICK
Balti¬
Mackubin, Legg & Co.,
more,
39
Hartford, Conn.
Tifft Bros.,
Texas
BRADLEY, R. EMMET
Baumgartner & Co., Baltimore,
St.
CANAVAN, JOHN L.
New
Co.,
&
York
"BAMBERGER, E. CLINTON
& .Co.,
Dempsey-Tegeler
Louis, Mo.
A.
York
Boland, Saffin Co., New
Co.
&
Kennedy
MUNICIPAL BONDS
Baltimore,
*
Md.
CAMPBELL,
Inc.
Co.,
Corp.,
CALVERT, ROBERT
BOLAND, WM. H.
BAKER, ALBERT W.
Brittain
Baker, Watts & Co.,
Co.
Torl^ Stocl{ Exchange
Members Hew York Curb Exchange
BYRNE, R. EMMET
San
Co.,
&
Slocumb
Kalb, Voorhis & Co., New
&
Dayton Haigney
Boston, Mass.
Mrs.
Members T^ew
-
Equitable Securities
Nashville, Tenn.
V
BOGGS, WILLIAM H.
BAILEY, BENJAMIN A.
H. D. Knox & Co., Boston;
Emil Kumin, Boston
Bacon, Stevenson &
*BUTLER, J. WILMER
Francisco, Calif.
AYERS, WM. L.
Inc., Boston,
BURKHOLDER, II. F.
Co. Chi¬
&
King,
111.
Brush
Ohio
F.
HERBERT H.
& Co., Phila¬
"'BLOOM, RALPH M.
Cincinnati,
& Gannon,
May
Mass.
BLUM, ERNEST
Clair S. Hall & Co.,
BURKE, WM. J.
Blizzard
delphia, Pa.
Hess,
cago,
ARNOLD HENRY J.
"
& Sons, Balti¬
Md.
Thomas
Harrington, Boston; Herbert D. Knox,
Irma Schaefer, New York City; Mrs.
Wolley, Coffin & Burr, Inc., Boston
BERRY, ALLISON M.
more,
Mrs. Frank
of Commerce; Edmond Hanrahan,
Stroud & Co., Inc., Philadelphia
In Attendance at
L. F.
FINANCIAL CHRONICLE
THE COMMERCIAL and
Convention Number
AMES & CO.
E.
INCORPORATED
STREET, NEW YORK
TWO WALL
•
Telephone
2-7231
winnipeg
montreal
toronto
victoria
london. eng.
vancouver
MEMBERS
REctor
london.
ont.
OF THE
N. S. T. A.
Leslie Barbier
Arthur W.
MUNICIPAL
BONDS
Bertsch
Walter R. Johnson
Carl Stolle
Specializing in New Jersey
Municipals
Frank W. Warner
& Co., Inc.
G. A. Saxton
70 PINE
STREET
•
.
NEW YORK 5, N.
Boland, Saffin & Co.
Established 1920
Y.
52
WHitehall 4-4970
Bell Teletype NY
1-609-610
WILLIAM ST.
NEW YORK 5,
N. Y.
Bell System
TELEPHONE
WHITEHALL 3-3414
Teletype—NY 1S3S
20
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, August
28, 194,
In Attendance at NSTA Convention
(Continued from
page
19)
CLARK, PHIL
♦CAYNE, MORTON A.
Cayne, Robbins & Co., Cleve¬
"
Ames C. Sudler &
Colo.
CONNOLLY, MRS., WALTER
Co., Denver,
Walter
J.
Connolly
Boston, Mass.
I
land, Ohio.
CLEAVER, JAMES P.
Goodbody & Co., New York
CHAMBERS, CARLTON
F.
Brittain
Kennedy
Boston, Mass.
CHANDLER, CARL
COLLINS, GEORGE
Geyer & Co., Inc., New York
:
V.
Goldman, Sachs & Co., Boston,
Mass.
'
♦CONARY, WILFRED
J.
Co., Bos¬
ton, Mass.
♦Denotes
Mr.
and
Cabot, Boston, Mass.
H. M.
Byllesby & Co., Phila¬
delphia, Pa.
♦DALEY, JOHN
CORNELL, JR., JOHN B.
Dallas Rupe
& Son,
Dallas,
DAYIES, W. H.
L.
E. H. Rollins &
Harriman
Sons, Inc., Bos¬
Ripley
ton, Mass.
(Continued
ton, Mass.
CONNELL, LAWRENCE
Wellington Fund, Boston,
Mrs.
.
Mass.
Bond Traders Club of
♦CREAMER, EDWARD
Schirmer, Atherton & Co., Bos¬
ton, Mass.
Inc., Bos.
5
♦DARLING, RODNEY M
Dupont, Homsey
Co., Boston
Mass.
DAGGY, J. GENTRY
G.
Arthur Warner &
Co., Bos¬
ton, Mass.
&
&
j.
Putnam &
Co.,
ton, Mass.
"
J.
Co.,
jnniN
F. L
&
Co,, Bos
os
.
on
Texas.
CHAPIN, JOHN
Kidder, Peabody
Moors
nnftV/x,
.Funds,
Boston, Mass.
.
CONWAY, JAMES J.
&v Co.,
;
&
CUSACK, WILLIAM C.
Keystone Custodian
page
21)
Chicago
CURTIS, F. HARMON
Robert
Hawkins
&
Co.,
v
Boston, Mass.
•
;;
•
Inc.,
:
*
Lawrence
Clearance Facilities
Marr
John
C.
Rogers
S.
E.
Dawson-Smith
Paul
Bax
President:
Lawrence Marr, E. H. Rollins &
Sons, Inc.
Vice-President: John C.
Rogers, Hickey & Co.
Secretary: Stanley Dawson-Smith, Straus &
Blosser.
Treasurer: Paul Bax,
Kidder, Peabody & Co.
Directors Elmer W.
Erzberger, Smith, Burris & Co.; Howard C.
Morton, McMaster Hutchinson &
Co.; Chris J. Newpart, Merrill
Lynch, Pierce Fenner & Beane; Donald B.
Stephens, Paul H. Davis
for
& Co.
c
"'*■ /
:•
■
National Delegates:
,
Lawrence Marr, E. H. Rollins &
Sons, Inc.;
Newpart, Merrill Lynch, Pierce, Fenner &
Beane; Elmer W.
Hammell, Caswell & Co.; Milton J.
Isaacs, Straus & Blosser; Howard
Morton, McMaster Hutchinson & Co.
Alternates: Glen L.
Darfler, Kneeland & Co.; Star C.
Koerner,
Mitchell, Hutchins & Co.; Evar L.
Linder, Paine, Webber, Jackson &
Curtis; Thomas Montgomery,
Glore, Forgan & Co.; Orville Strong,
The First National Bank
of Chicago.
Elected: December
31, 1946; Took Office: March
1, 1947; Term
Expires: February 29, 1948.
;
Chris J.
New York and Out of
Town
over-the-counter
,
Bond Club of Louisville
BROKERS and DEALERS
r*f
>
Inquiries
use
are
of
invited
our
regarding
t
Charles
facilities
^
C.
King
Urban
J. Alexander
Russell
Ebinger
Eugene W. Bright
President:
Charles C. King, The
Bankers Bond Co.
Vice-President: Urban J.
Alexander, Urban J. Alexander & Co.
Secretary: Russell
Ebinger, Smart & Wagner.
Treasurer: Eugene W.
Bright, Blyth & Co., Inc.
National Committeeman:
Thomas
Graham, The Bankers Bond
Company.
Alternate: Mrs. Ora M.
Ferguson, Merrill Lynch, Pierce, Fenner
& Beane.
Elected: July 2,
1947; Take
Expires: September
1, 1948.
New Orleans
Trust Company
of
Office:
September
Security Traders
1,
1947;
Term
Association
North America
Securities Clearance Division
115
Broadway, New
Complete Domestic
York
and
BArclay
7-1500
Foreign Banking Facilities
.
MEMBER
FEDERAL
DEPOSIT
INSURANCE
Joseph P. Minetree
Jackson
A.
Hawley
Macrery
B.
Wheeler
President
CORPORATION
u
Joseph P. Minetree,
Steiner, Rouse & Co.
.Vice-President: Jackson A.
Hawley, Equitable Securities Corp.
Secretary-Treasurer: Macrery B.
Wheeler, Wheeler &
Woolfolk,
'•
National Committeemen:
Errol
E.
;
1
Buckner, National Bank of
J. W. Kingsbury,
Kingsbury & Alvis.
Alternates: Wm. Perry
Brown, Newman, Brown &
Glas, Glas &
Co.; R. Jeremy
Company.
Commerce;
Elected:
October 10,
Expires: October 1947.
1946; Took Office: October
10, 1946; Term
•
t
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
Emil
Mr. and Mrs.
Kumin, Estabrook & CoBoston; Clinton Hough, J. Arthur Warner & Co
Boston; J. Gentry Daggy, H. M. Byllesby & Co., Philadelphia
NSTA Convention
In Attendance at
WILFRED N.
H. M.
& Co., Inc., Bos¬
York
Harriman
Byllesby & Co., Chicago,
Tornga,
Larson &
Rapids, Mich.
DeYoung,
Grand
*DIEHL, ROBERT D.
pa.
Co., Boston,
BONDS
COMPREHENSIVE
Boston,
FACILITIES FOR
INVESTORS
INSTITUTIONAL
Mass.
-.
♦FREEAR, LANDON A.
William
N.
Edwards
Fort
Scribner,
&
Singer,
Deane
Pittsburgh, Pa.
DIETRICH, HENRY J.
CITY
Boston,
offering
Vance, Sanders & Co.,
Co., Philadelphia,
FISHER, CHARLES N.
Angeles, Calif.
L. F. Rothschild &
Inc.,
Co.,
&
YORK
Mass.
Co., Los
&
Staats
R.
William
Blyth
FISCHER, FREDERICK
H. N. Nash &
;
and
NEW
FOSTER, JR., HATHERLY
"
in
GOVERNMENT SECURITIES
.
Merrill, Lynch, Pierce, Fenner
& Beane, Louisville, Ky.
DeYOUNG, NEIL
Ripley & Co., Bos¬
FOGG, ROBERT B.
FERGUSON, MRS., ORA M.
S.
Co., Boston, Mass.
&
Denton
specializing
STATES
UNITED
ton, Mass.
111.
ton, Mass.
DENTON, GEORGE R.
& CO.
DEALERS
INVESTMENT
FLANDERS, HARRY
FARRELL, ARTHUR E.
Chas. A. Day
Inc., New
v'
Tenn.
*DAY,
W. C. Pitfield & Co.,
Philadel¬
Inc.,
Co.,
phia, Pa.
Memphis,
Bank,
Nat'l
First
&
Stroud
DAVIS, JOE H.
Dallas Rupe & Son, Dallas, Tex.
BARR1NGTON
FITZGERALD, JOHN M.
ERGOOD, JR., RUSSELL M.
(Continued from page 20)
Arthur Farrell, H. M. Byl¬
William J. Burke, May & Gannon, Boston;
lesby & Co., Chicago; John Cornell,
29
&
WHltehall* 4-3543
Broadway, New York 6, N. Y.
Co.,
Worth, Texas
(Continued on page 22)
Mass.
DIGGES, REID W.
Hampden Roads Sanitary Dis¬
trict
Lewis
McDaniel
&
LEADING
Co.,
Greensboro, North Carolina
Private Wire
DODSON, PAUL E.
Union
STOCK EXCHANGE AND
MEMBERS NEW YORK
and
Securities
Bos¬
Corp.*
Complete Trading Facilities in
Co.
&
BACHE
Commission, Virginia
DIXON, R. B.
OTHER
LISTED and UNLISTED
COMMODITY EXCHANGES
STOCK AND
Correspondents
Cities
System to Our Offices,
BRANCH
OFFICES
MILWAUKEE
COLUMBUS
MINNEAPOLIS
DETROIT
ERIE
OIL
FORT
BUFFALO
GREENSBORO
Dayton Haigney & Co., Boston,
CHARLOTTE
KANSAS
Mass.
CHICAGO
CITY
ATLANTIC
DONOVAN, P. WARREN
Direct Private Wire to
MIAMI
DOYLE, LARRY
'
Chicago
UTICA
RALEIGH
BEVERLY
Co., Chi¬
OHIO
N.
FARGO,
DAYTON,
Doyle, O'Connor &
cago, Illinois
HILLS, CAL.
FERGUS
ANTONIO
DULUTH,
EAU
GRAND
MINN.
CLAIRE,
LOS
WISC.
ST.
MIDDLETOWN, OHIO
D.
FALLS,
MINN.
PASADENA, CAL.
PITTSBURGH, PA.
MINN. MINNEAPOLIS,
FORKS, N. D.
ANGELES, CAL.
^oo/m V
PAUL, MINN.
SIOUX
FALLS, S. D.
SPRINGFIELD, OHIO
Members New York
Stock Exchange
SUNBURY, PA.
New York 5, N. Y.
One Wall Street
♦DRINKARD, OSCAR B.
FOREIGN
Scott, Horner & Mason,
Lynchburg, Va.
Inc.,
AND
OFFICES
TORONTO
LONDON
Main
36
♦DUFFY, JAMES R.
WALL STREET,
MIDTOWN
Paine, Webber, Jackson & Cur¬
tis, Boston, Mass.
$-4711
Correspondent—Clement, Curtis & Co.
CORRESPONDENTS
Hardy & Co., New York, N. Y.
DOYLE, LEO J.
Los Angeles
Telephone MAdison
WILKES-BARRE
SAN
BEACH
—
WASHINGTON
ROCHESTER
MIAMI
CINCINNATI
TULSA
BEACH
PHILADELPHIA
CITY
634 South Spring Street
TROY
CITY
PALM
WORTH
SYRACUSE
HAVEN
NEW
BINGHAMTON
BOSTON
<
Invited
SCRANTON
ALBANY
Hincks, Bros. & Co., Inc., New
Haven, Conn.
CLEVELAND
SCHENECTADY
AKRON
GEORGE A.
Quotations Furnished'— Inquiries
Foreign Representatives in 53
ton, Mass.
*DOCKHAM,
SECURITIES
REPRESENTATION
MEXICO
Telephone:
PARIS
CITY
Bowling: Green 9-4800
BRANCH OFFICES
Office:
Newark,
NEW YORK 5, N.
BUILDING
Y.
Los Angjeles, Cal.
Syracuse, N. Y.
N. J.
Harrisburg,
Pa.
Carlisle, Pa.
OFFICE! CHRYSLER
DURGIN, CHESTER R.
Lee
Higginson
Boston,
Corp.,
Mass.
dykes, alvin a.
Whitney & Elwell,
Boston,
UNDERWRITERS
Mass.
EAGAN, WALTER F.
Hunnewell
&
Co.,
RETAIL
Boston,
DISTRIBUTORS
Mass.
TRADING MARKETS
♦EARNEST, GEO. H.
Fewel
&
Co.,
Angeles,
Los
Calif.
Private
*EBINGER, RUSSELL
Smart
&
Wagner,
Wire System From
Louisville,
Kentucky
Direct
;
First Securities
*EGAN JOHN F.
...
'
J,
.
First California Co., San
Forty Wall Street
Chicago
*
\
Philadelphia
BUCKLEY BROTHERS
Members New
Mercier, McDowell & Dolphyn,
Detroit, Mich.
York, Philadelphia and Los Angeles
New York Curb Exchange
44
WALL STREET, NEW
Mass.
and
Mrs.
Bell
Teletype—NY 1-2546
YORK 5
N. Y.
WHitehall 3-9060
Teletype
PH
16
Teletype NY 1-2073
Stock Exchanges
ENGDAHL, ARTHUR E.
Goldman, Sachs & Co., Boston,
New York
Pennypacker 5-8328
Middlebrook, Hart
♦ELDER, GEO. J.
Mr.
5, N. Y.
.
ford, Conn.
^Denotes
New York
Fran¬
cisco, Calif.
&
^
incorporated
Wire to
Company of
♦EISELE, GEORGE F.
Coburn
yitxqevald di Campcuup
Coast to Coast
Telephone—WH 3-7253
Private
Wire to Draper,
Sears & Co., Boston
(
22
THE COMMERCIAL and
FINANCIAL CHRONICLE
In Attendance at NSTA
Convention
(Continued from page 21)
♦GERSTEN, IRVING
FRENCH, JOHN S.
A.
C.
Allyn & Co., Inc., New
York
FULLER, W. A.
William A. Fuller & Co., Chi¬
cago,
111.
curity
Sec.
Nat'l
Assoc.
Dealers,
GHEGAN, A. KINGSTON
Kalb, Voorhis & Co., New York
GIBBS, ARLENE
FULTON, WALLACE
Exec.
Gersten & Frenkel, New York
GEYER, GEORGE
Geyer & Co., Inc., New York
Laird,
of Se¬
Bissell
&
Meeds,
New
York
Philadelphia,
Pa.
GIBSON, CHARLES E.
Whiting, Weeks & Stubbs, Bos¬
FURMAN, IH, ALESTER G.
Alester G. Furman
ton, Mass.
Co., Green¬
ville, So. Carolina
Boston, Mass.
GOLDTHWAITE, CLYDE
M.
Goshia &
Merrill, Turben & Co., Cleve¬
14, Ohio
♦Denotes
Mr.
and
We
Mrs.
are
GREENE,
Francis I. du Pont &
Co., New
Dayton
;
Haigney
&
♦HALL,
v
CLAIR
Exchange Commis¬
sion, Philadelphia, Pa.
HANSEL, DOUGLAS R.
Co.,
Wertheim & Co., New
York
Inc.,
HARDONY, MICHAEL
Finley & Co., Cleveland,
S.
Clair S. Hall &
Co., Chicago, 111.
Co.,. Cincinnati,
Ohio
♦IIALL, FRANK L.
Ohio
HARKNESS, ROBERT B.
Whiting, Weeks & Stubbs, Bos¬
ton, Mass.
Pflugfelder & Rust, New York ♦HARMET, ALFRED A.
A.
HALLET, LEAMAN
Draper," Sears
&
Co.,
A.
Harmet & Co.,
111.
Boston,
Mass.
(Continued
on
page
Chicago
23)
Security Traders Association of Los Angeles
,
Relations
Dir.,
Boston
Exchange
GUTBERLET, EDWIN S.
Paine, Webber, Jackson
& Cur¬
Stock
tis, New York
offerings of
Lawrence
High Grade
Public
Securities
Scherck, Richter Co., St. Louis,
Inc.,
MISS
&
HANRAHAN, EDMOND
Boston, Mass.
IRVING AND
D'VERA GREENE
Greene &
Public
Caswell
♦HAIGNEY, DAYTON
Co.,
GREENAWALT, SAMUEL, AND
SAMUEL GREENAWALT, JR.
Mac Naughton-Greenawalt &
Co., Grand Rapids, Mich.
Co., Toledo, Ohio
GOTTRON, RICHARD A.
Gottron, Russell & Co., Cleve¬
land, Ohio
interested in
Hart¬
Kentucky
York
♦HAMMELL, ELMER W.
Gardner, St. Louis
Mo.
Mo.
Bond
GUILD, ROBERT
♦GOSHIA, OLIVER
land
Bankers
Reinholdt &
♦GRIFFIN, OSCAR D.
Lord, Abbett & Co., New York
GRINDEL, GUSTAV J.
Mass.
GAWNE, HARRY J.
The
Louisville,
Merchants National Bank, Bos¬
ton, Mass.
Boston,
Co.,
Company, New York
Courts & Co.,
Atlanta, Ga.
♦GANNON, JOSEPH
May & Gannon, Inc.,
1
HAGENSIEKER, EARL L.
HAHN, CHARLES E.
GRAHAM, THOMAS
>
GLENN, JACK F.
GAGE, H. RIPLEY
Estabrook & Co.,
•
♦GRAHAM, JOHN E.
Brainard, Judd &
ford, Conn.
Thursday, August 28,
1947
S.
Pulliam
Thomas
J.
Euper
William Miller
Robert
Diehl
President:
Lawrence S. Pulliam, Weeden & Co.
Vice-President: Thomas J.
Euper, Cohu & Torrey.
Secretary: William Miller, Fairman & Co.
Treasurer: Robert Diehl, William R. Staats Co.
Utility and Industrial
Governors: Oliver B. Scott,
Maxwell, Marshall & Co.; Joseph L.
Ryons, Pacific Co. of California; Nicholas P. Kirwan, Dean Witter
& Co.
PREFERRED STOCKS
:
:
National Committeemen: Lawrence S.
Pulliam, Weeden & Co.;
Stephen C. Turner, Turner, Poindexter & Co.
Alternate:
Clifford
Poindexter, Turner, Poindexter & Co.
1946; Took Office: November 1946; Term Ex¬
pires: December 31, 1947.
Elected:
October
San Francisco Bond Traders Association
Spencer Trask & Co.
Members New York Stock
Exchange
Members New York Curb
Exchange
25 BROAD STREET
135
NEW YORK 4
Albany
Boston
SALLE STREET
CHICAGO 3
Telephone HAnover 2-4300
Bell System
SO. LA
Telephone Andover 4690
Teletype—NY 1-5
Glens Falls
Schenectady
Worcester
Elmer
L.
Weir
Collins
L.
Macrae
John
E.
Buick
President: Elmer L.
Weir, Brush, Slocumb & Co.
Vice-President: Collins L.
Macrae, Wulff, Hansen & Co.
Secretary -Treasurer: John E. Buick, American Trust Company,
Directors: James M.
Stewart, Wilson, Johnson & Higgins; L. J.
Spuller, Elworthy & Co.; J. D. McMahon, Merrill
Lynch, Pierce, Fenner &
Beane; Frank Bowyer, Schwabacher & Co.
National Committeemen:
Ernest E. Blum, Brush, Slocumb & Co.;
Collins L. Macrae,
Wulff, Hansen & Co.
Bond Club of Denver
Bernard
Kennedy
Phillip J. Clark
Glen B.
Clark
President:
Bernard Kennedy,
Bosworth, Sullivan & Co.
Vice-President: Donald F.
Brown, Boettcher & Co.
Secretary: Glen B. Clark,
Sidlo, Simons, Roberts & Co.
Treasurer: Phillip J.
Clark, Amos C. Sudler & Co.
Directors:
Robert
&
L.
John Alff, Amos C. Sudler &
Co.; Robert L. Mitton,
Mitton
Co.
Investments; Harry Middaugh, Garrett-Bromfield
National Committeemen:
Bernard Kennedy,
Elected:
Hal
Myers,
Bosworth, Sullivan
November
Harris,
Upharn
&
Co.;
& Co.
21, 1946; Took
Term Expires: December
31, 1947,
Office:
December
1,
1946;
Mr.
Ed. Welch, Sincere & Co., Chicago; T. Geoffrey Horsfield
and Mrs.
23
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
Mr. and Mrs. Don Homsey,
Wm. J.
Mericka & Co., New York City
v
du Pont, Homsey Co., Boston;
& Co., Inc., Boston
Robert H. Warren, Geyer
lit Attendance at NSTA Convention
KELLEHER, MICHAEL T.
JONES, EDWARD D.
(Continued from page 22)
Edward
^HARRINGTON, FRANK T.
H. D. Knox & Co., Inc., Boston,
&
Jones
D.
Co.,
Pres.
St.
Mass.
Commerce,
Pflugfelder & Rust
Loeb, Rhoades & Co.,
Carl M.
Hartley Rogers & Co., Seattle,
Baldwin, White & Co., Boston,
of
KELLY, EDWARD J.
JONES, JACK E.
HARRIS, HOWARD S.
Chamber
Boston, Mass.
Louis, Mo.
New York
Wash.
Mass.
Members
of the New
York Stock Exchange
KELLY, JAMES A.
JORDAN, DOROTHY
HATCHER, LLOYD B.
R.
Atlanta, Ga.
Trust of Georgia,
W.
Tifft
Pressprich & Co., Bos¬
IIAVERSTICK, JR., E. E.
Springfield,
61
KENDRICK, PHILLIP
Smith, Moore & Co., St. Louis,
CARL G.
JORDAN, JR.,
Mo.
R.
HEANEY, MICHAEL J.
W.
BROADWAY
KENNEDY, F. BRITTAIN
Brittain
F.
HUNGER, SAMUEL H.
■ i
,
_
'■■
■
6, N. Y.
<•
■
•
.
Kennedy
&
Co.,
Bell System
Telephone WHitehall 3-2411
Teletype NY 1-309
Boston, Mass.
Co., New
Junger, Anderson &
(Continued on page 24)
York
Angeles,
NEW YORK
Comm.,
Boston, Mass.
Pressprich & Co., Bos¬
ton, Mass.
York
Exchange
Securities
Joseph McManus & Co., New
HECHT, JOHN C.
Butler-Huff & Co., Los
Brothers,
Mass.
ton, Mass.
Calif.
HOWARD, RICHARD W.
Co.,
&
Hallowell, Sulzberger
Philadelphia, Pa.
'
;
HILL, DRAPER
John
&
Nuveen
TRADING MARKETS IN
GRACE NATIONAL BANK
Boston,
Co.,
Mass.
OF NEW YORK
HILL, KENNETH B.
Kenneth B. Hill & Co., Boston,
OVER-THE-COUNTER
IViass
♦HOMSEY, ANTON E.
DuPont,
Co., Boston,
Homsey
FACILITIES
CLEARANCE
COMPLETE
Mass.
SECURITIES
FOR
HOOPER, L.
Hooper-Kimball, Inc., Boston,
LOCAL AND
OUT-OF-TOWN
Mass.
Brokers and Dealers
♦IIORMEL, EDWARD F.
White,
Boston,
Co.,
&
Weld
Mass.
'
Write for
HORN, CLARENCE A.
First
of
troit, Mich.
Mericka
J.
Curb Exchange
Members New York
V
Clearance
&
Inc.,
Co.,
Department
HANOVER SQUARE,
NEW YORK 5,
N. Y.
Bell Teletype
&
Baker
delphia, Pa.
Thayer,
HAnover 2-9470
NY 1-1140
Corporation
Member Federal Deposit Insurance
Co., Phila¬
NEW YORK 5
64 WALL ST.
New York
♦HUDSON, JOHN M.
Co.
1923
Established
HORSFIELD, T. G.
Wm.
Frank C. Masterson &
details
Corp., De¬
Michigan
Private
Wire
Chicago
to
HUGHES, SPEED
J.
Co., Bos¬
Arthur Warner &
ton, Mass.
HUNT, E. JANSEN
York
White, Weld & Co., New
*HUNTER,
Aetna
american
WELLINGTON
Securities
New
Corp.,
CO., inc.
F. H. ROLLER &
York
HURLBURT C.
GRAHAM
Henry P. Briggs & Co.,
Members New York Security
Boston,
union
Dealers Association
union
Mass.
Tucker, Anthony & Co.,
ton, Mass.
Bos¬
DEALERS
Co., Nor¬
♦ISAACS, MILTON J.
Straus & Blosser, Chicago,
Smith, Gastonia,
-
fund
MUG
FOR
union bond
fund b
union bond
TRADERS
fund c
DISTRIBUTION
.
Carolina
♦JACQUES, J. F.
Co.,
Dallas,
Johnson, Lane, Space
Inc., Atlanta, Ga.
& Co.,
Ill
'
i
-
V
■
Broadway
•"
Request
OF SECURITIES
BUYERS OF BLOCKS
No.
,
,
.
•
Lord, Abbett
INCORPORATED
New York 6, N.Y.
63 Wall Street,
& Co.
New York
Texas
JOLLEY, LEX
'Denotes
Mr.
CHICAGO
.
and
Mrs./
.
fund
fund a
Prospeclusej on
111.
•
Southwest
WHOLESALERS
RETAIL
♦JACKSON, PHIL P.
First
-
SITUATIONS SUITABLE
ISAACS, HENRY G.
Jackson &
common stock
preferred stock
union bond
INGALLS, ROBERT U.
Virginia Securities
folk, Va.
business shares. inc.
affiliated fund, inc.
108 A"0ElES
24
THE COMMERCIAL and FINANCIAL
CHRONICLE
In Attendance at NSTA Convention
(Continued from page 23)
♦KENNEY, PHILIP F.
E.
M.
Newton
&
Mitchell, Hutchins
Co., Boston,
Mass.
Co., Inc.,
Boston, Mass.
Providence, R. I.
Bankers
Bond
Co.,
Inc.,
Louisville, Ky.
KIRKPATRICK, EDWARD
L.
National Securities
Co., Nash¬
ville, Tenn.
♦KNOX, HERBERT D.
Mr.
and
Cedar
Lerner &
C.
Co., Boston, Mass.
Medford, Mass.
Arthurs,
Lestrange
&
Klima,
Pittsburgh, Pa.
LEVINE, CARL A.
F. L. Putnam &
Co., Inc., Bos¬
J. Wilmer
LEVY, GUSTAVE L.
LAIRD, FRANK
J.
Co.,
Goldman,
Inc., Philadel¬
Sachs
&
L. J. Schultz &
Inc.,
Distributor
Allen &
W.
F. B.
Investment
Bonds and Stocks
LATSHAW,
&
Upham
City, Mo.
&
&
M.
Co.,
Boston,
Co., Cin¬
1
\
National Committeemen:
O'Neill, Stein Bros.
Elected:
J. Wilmer
1
■
Butler, Baker, Watts & Co.;
& Boyce.
December 6, 1946; Took Office:
January
xpires: January 1, 1948.
nati, Ohio
&
H. Mitchell Bruck,
Baumgartner & Co.
Boyce.
John M.
Hunnewell
H. Mitchell
Bruck
Edward B. Freeman,
Lockwood, Peck & Co.;
Guy Gray, Mercantile Trust Co.; E. Elwood<
McClure, Stein Bros.
1, 1947; Term
Boston Securities Traders
Association
♦LYNCH, FRANK E.
F.
Co., Boston,
Mass.
JOHN
Harris
Hutton
.
LOUGHLIN, WILLIAM C.
Bull, Holden & Co., New York
LOVELAND, FRANKLIN O.
Field, Richards & Co., Cincin¬
Co., New¬
FREDERIC
Latscha
cinnati, Ohio
Co., New York
Mass.
Cooper, Boston, Mass.
Frederic
E.
E. Eberwein
Board of Governors:
♦LOTHROP, GILBERT
♦LARSEN, HENRY
*LATSCHA,
Treasurer:
Co., New York
LOPATO, ALLAN
Mass.
LANE, ROBERT W.
McBride, Miller &
ark, N. J.
Bernard
J. Wilmer
Butler, Baker, Watts & Co.
Vice-President: Charles Gross, Harry M.
Sheely. & Co.
Secretary: Bernard E. Eberwein, Alex. Brown & Sons.
New
LIVINGSTON, ROBERT
Co.,
Charles Gross
President:
Co.,
York
LAMONT, MRS., JOAN
&
Butler
ton, Mass.
Mass.
Minot, Kendall
Boston, Mass.
Mrp.
•
Boston,
LESTRANGE, GEORGE E.
LAMONT, NICHOLAS
May & Gannon, Inc.,
Boston,
Underwriter
Inc.,
LEE, MRS., L. H.
LAHTI, MATTHEW
Matthew Lahti & Co.,
Boston,
&
Gannon,
phia, Pa.
Co., Inc., New
York
*Denotes
Co.,
BEAU, EARLE
Stroud
&
♦LERNER, LOUIS
&
Publishing Service, Bos¬
ton, Mass.
National Rockland
Bank, Bos¬
&
Kosek
Fitch
ton, Mass.
Knox
May
Estabrook & Co.,
Boston, Mass.
KING, WILLIAM T.
Bureau,
Mass.
Rapids, Iowa
La
Quotation
Le BEAU, IRVING
Lesser,
"KUMIN, EMIL
KING, CHARLES C.
D.
H.
&
St. Louis, Mo.
Ernest
Marshall,
Security Traders Association
C.
National
"KOSEK, ERNEST
♦KILNER, GEORGE M.
Brown,
Lisle
&
H.
Co., Chi¬
Baltimore
Inc., Boston, Mass.
Friedman, Brokow
Arthur Warner &
The
♦LEAHY, D.
&
cago, 111.
KUHLMANN, RICHARD
KENT, RODNEY P.
J.
"KOERNER, STAR C.
Thursday, August 28,
1947
♦LYNCH, JAMES J.
&
Shea & Co.,
Co., Kansas
Boston, Mass.
(Continued
on
page
25)
We extend the
complete facilities of
our
Dealer in
Sumner
R.
Wolley
H. N.
Bernard, Jr.
Arthur E. Engdahl
OVER-THE-COUNTER
Securities of the
United States Government
and its
TRADING
Instrumentalities
State and
DEPARTMENT
Municipal
Securities
'
-•
t0
;
,
■! Public
Utility, Railroad
Banks, Brokers
and
/
and Dealers
Industrial Securities
Orders executed
Canadian and
Foreign Dollar
on a
Bonds
T. Edmund Williams
commission basis
Harold
A.
Madary
President: Sumner R.
Wolley, Coffin & Burr, Inc.
Vice-President: Hubert N. Bernard,
Jr., Schirmer, Atherton & Co.
Treasurer: Arthur E.
Engdahl, Goldman, Sachs & Co.
Corresponding Secretary:
ball, Inc.
Bankers' Acceptances
"Special Situations"
Stocks
Department
is maintained for the
accumulation
■
-
or
i
placement
of
Edmund
Williams,
Hooper-Kim-
.
Recording Secretary: Harold
Our
Bank and Insurance
T.
large
blocks
of
A.
Madary, Geyer & Co.
Governors: Robert H.
Adams, L. F. Rothschild & Co.; Dayton P.
Haigney, Dayton Haigney & Co.; Leaman F.
Hallett, Draper, Sears
& Co.; Anton E.
Homsey, du Pont, Homsey Co.; Alex. W. Moore,
J. Arthur Warner &
Co.; Edward J. Opper, E. H. Rollins &
Sons, Inc.
National Committeemen:
Dayton P. Haigney, Dayton Haigney &
Co.; Sumner R. Wolley,
Coffin & Burr, Inc.; Wilfred N.
Day, Chas.
A. Day &
Co.; Joseph Gannon, May &
Gannon, Inc.; Frank E. Lynch,
Hunnewell & Co.
Elected:
Over-the-Counter Stocks and Bonds.
October 1, 1946; Took
Expires: December 31, 1947.
We
Office:
Offer
October
1,
1946;
a
COMPREHENSIVE INVESTMENT
The
AND
FIRST BOSTON
DEALER
1
CORPORATION
New York
Chicago
San Francisco
Private Wires
SreeTveanACompan^
Members New York
Security Dealers Association
Members National
Association of Securities Dealers
Boston
Pittsburgh
Philadelphia
to
37 WALL
STREET, NEW
•
■
in
ALL CLASSES OF
BONDS AND STOCKS
including
PUBLIC
UTILITY
We
YORK 5, N. Y.
Are
;
&
Offerings
Bell System Teletype
—
at
our
—
to
INDUSTRIAL
Service
With
expense
NY 1-1126 & 1127
RAILROAD
Particularly Adapted
•
Teletype Bids
—
FOREIGN— MUNICIPAL
Tel. HAnover 2-4850
Offices in twelve Cities
SERVICE
'
P.
120
Retail
Your
Inquiries Solicited
F.
FOX &
BROADWAY,
Telephone REctor
Firms
2-7160
Distribution
NEW
CO.
YORK
5,
N.
Teletypes NY 1-944
Y.
&
NY
1-945
Term
■,
t
Convention Number
John H.
Graham,
Tom
Hudson, Thayer, Baker & Co., Philadelphia; Fred Fischer, H. N. Nash & Co.,
Philadelphia; Mike Heaney, Jos. McManus & Co., New York City
25
CHRONICLE
THE COMMERCIAL and FINANCIAL
Bankers
Bohd Co., Louisville, Ky.;
Boston, Mass.; Harold Smith, Collin, Norton
James J. Lynch, Shea
& Co., New York City
& Co.,
In Attendance at NSTA Convention
MERICKA, WM. J.
(Continued from page 24)
e. b.
R.
S.' Dickson
& Co., Inc.,
Charlotte, North Carolina
land, Ohio
J. Arthur Warner &
Co., Cleve¬
:
?
.
■
k':<'
Shufro, Rose & Co., New York
"
MADER, HENRY
ton, Mass.
troit, Mich.
York
De¬
Co.,
&
-
f,
Moreland & Co.,
*MONROE, PAUL
Co., St. Louis,
Hunnewell
Mo.
Mass.
&
Boston,
Co.,
•./,
„
,
Ballou,
1
Cincinnati,
Westheimer & Co.,
Ohio
Adams
Co.,
&
Boston, Mass.
PIONEERS IN
Inc.,
WE OFFER A
MOST COMPLETE SERVICE.
•
MEMBER
PDIC
The Blue List Publ. Co., New
Special Counsel Securities and !
Exchange Commission, Phila¬
delphia, Pa.
\i.\
"MACK, M. ALFRED
AS
BROKERS CLEARANCES
MORTON, RONALD A.
MOONEY, MICHAEL J.
ton, Mass.
'
Atlanta, Ga.
♦MORRISON, JAMES A.
♦maloney, edward
Dept. of Public Utilities, Bos¬
Detroit, Mich.
MORRIS, JACK C.
i
Courts & Co.,
*MAENDER, CLARENCE J.
G. H. Walker &
■
York 4, N. Y.
EVERY BANKING FACILITY
♦MORELAND, PAUL I.
;
McDonald-Moore
& Co., New
Anthony
Tucker,
MILLER, DON W.
50 Broadway, New
MOORE, FREDERICK S.
J. Arthur Warner & Co., Bos¬
Shafto, Boston, Mass.
Lyons &
Co., Bos¬
ton, Mass.
MEYER, MILTON S.
lyons, kevin T.
UNDERWRITERS TRUST COMPANY
*MOORE, ALEXANDER W.
.
Wm. J. Mericka &
lyon, william
York
,
(Continued on page 26)
•vV
:■
■
MACRAE, JR., COLLINS
Wulff,
San
Co.,
&
Hansen
Underwriters and Distributors
Francisco, Calif."
♦MADARY, HAROLD
Geyer
Boston,
Inc.,
A.
Co.,
&
Mass.
..
Dealers and Brokers in
of
'
"MAGID, SAMUEL E.
Inc.,
Co.,
&
Hill, -Thompson
Railroad, Public
New York
Stroud
&
Co.,
Inc.,
and Public Revenue
Utility & Industrial
Bonds & Stocks
MAGUIRE, F. E.
State, General Market,
BONDS
MUNICIPAL
Philadel¬
phia, Pa.
"MAGUIRE, JAMES B.
E. H. Rollins & Sons, Inc.,
Bos¬
Mgrs. Over-the-Cour
ton, Mass.
"
Samuel
MAGUIRE, JOHN E.
May &
Mass.
Gannon,
R, Taylor &
Trading Dept.
ter
D. Howard Brown
Direct Wire to
,
MARKELL, BETTY-JO
B. J. Van
Greene & Co., New York
*MARR, LAWRENCE
E. H. Rollins & Sons, Inc.,
Ingalls & Snyder
Chi¬
Members
New
Members
111.
cago,
Nev)
York Stock Exchange
York Curb Exchange
du
NEW YORK 5, N.
100 BROADWAY
Wood, Gundy & Co., Inc., New
...
York
"MAY, WILLIAM
&
Gannon,
'
■'>. %/r-.'
COrtlandt 7-6800—Bell
System Teletype NY
Ingen 8c Co.
MUNICIPAL
*MARSLAND, ALLISON
May
Chicago and Miami
Boston,
Inc.,
Y.
pont building
Miami 32, Fla.
inc.
BONDS
57 WILLIAM street
135 So. La Salle ST.
New York 5
Chicago 3, III.
1-1459
Boston,
Inc.,
Mass.
"MAYER, JOHN M.
Merrill Lynch, Pierce,
& Beane, New
Fenner
York
"McCLEARY, GEO. M.
Florida
Securities
Co.,
^
McCUE, JOHN A.
May
&
Gannon,
Dealers
Underwriters
^
■ :
St.
Petersburg, Fla.
^
INVEST
Wholesale Distributors
Boston,
Inc.,
Mass.
Mcdowell, lewis d.
J. Arthur Warner & Co., Bos¬
ton, Mass.
,
public utility •
railroad
Mclaughlin, john f.
McLaughlin, Reuss & Co., New
Industrial Bonds and
York
StcIcks • Municipal Bonds
'!
'*
■••'''■
'
.
;
'
' /'
WEST"
*McOMBER, a. s.
Revel
Miller
&
Co., Los An¬
geles, Calif.
ESTABLISHED 1890
*McPOLIN, BEN J.
McDonald
&
Cleveland,
Co.,
Ohio
Telephone
MCTAVISH, S. C.
A.
E.
Ames
&
Boston,
Co.,
INCORPORATED
b.«
Teletype
NY
37 wall
street
•
1-1815
Maxwell,Marshall &
Co.
new york 5
NEW YORK
-MEANS, J. W.
LOS ANGELES
*
Company
of
Georgia,
Atlanta, Ga.
*Denotes
•
2-9800
Mass.
Trust
J • G - White 6 Company
HAnover
Mr.
and
Mrs.
DIRECT
PRIVATE
AND
TO
WIRE TO SILLS,
ROBERT
MINTON & CO., INC.,
GARRETT & SONS,
CHICAGO
BALTIMORE
26
THE COMMERCIAL and FINANCIAL
CHRONICLE
*
MURPHY, TIMOTHY D.
Chace, Whiteside, Warren
Sears, Boston, Mass.
In Attendance at NSTA Convention
(Continued from page 25)
MULLEN, JOHN J.
Garrett-Bromfield
♦MOSLEY, R. VICTOR
Stroud
&
Co.,
Inc., Philadel¬
phia, Pa.
♦MOYNIHAN, JAMES
E. H. Rollins &
♦MULCOCK,
♦MULLINS, THOMAS J.
White, Weld & Co., New
E. R.
Bond &
Co., Syracuse,
The
Mr.
and
Mrs.
White,
Tucker, Anthony &
ton, Mass.
Van
F.
S.
Moseley &
Co.,
Waban,
♦ROGERS, JOHN C.
Hickey & Co., Chicago, III,
Scherck, Richter Co., St. Louis,
Co., Bos¬
Co., New
C.
T.
Williams
&
Co.,
C.
Mich.
Inc.,
Baltimore, Md.
Wyatt, Neal & Waggoner,' At¬
lanta, Ga.
'
Roney & Co.,
(Continued
on
page
Detroit,
27)
Security Traders Association of Detroit
.
NEWMAN, LEO FY
J. Arthur
And
Warner & Co., Bos¬
Michigan, Inc.
ton, Mass.
NIEMAN, BARNEY
Carl
Marks
&
Co.,
Inc.,
New
York
We
we
are
pleased
to
with the
firm
same
and
the
at
SPECIALISTS
name,
IN
same
in business
years
the
O'CONNOR, WILLIAM D.
Fitzgerald & Co., Inc.,
that
announce
have completed
twenty-five
same
York
.
partners
New
!'
+ODENWELLER, JR., C.
SEC, Cleveland, Ohio
address
J.
OETJEN, HENRY
UNLISTED
SECURITIES
McGinnis, Bampton & Sellger,
New York
JOHN J. O'KANE JR. &
CO.
ESTABLISHED
O'KANE, JR., JOHN J.
John J.
19 22
Members
Members
DIgby 4-6320
Nat'l
New
O'Kane, Jr. & Co., New
York
Association of Securities
Dealers
York
Security Dealers Association
,
42
Broadway, N.
;
Harold
O'NEILL, JOHN M.
Stein Brothers &
Md.
more,
Y.
Boyce, Balti¬
O'NEILL, LORRAINE
Sincere
& Co.,
M.
Chicago, 111.
♦OPPER, EDWARD J.
E. H. Rollins &
Sons, Inc., Bos¬
ton, Mass.
OVER
1
!
OXLEY, A. E. C.
-
The Dominion
Securities
New York
:
THE■COUNTER
O'ROURKE, THOMAS
SECURITIES
Stroud
&
Co.,
Corp.
F.
Inc., Philadel¬
phia, Pa.
■"PARSONS, EDWARD
Wm. J.
land, Ohio
;
PAYSON, GEORGE
FRANK C. MOORE &
CO.
42
Broadway,
New York 4, N.
Y.
Telephone WHITEHALL
3-9784-5-6
H.
M.
Maine
R.
Chapel
President:
Ralf
A.
Crookston
Clarence
A.
Horn
Reginald
MacArthur
Harold R.
Chapel, McDonald-Moore & Co.
Vice-President: Ralf A.
Crookston, Hornblower & Weeks.
Treasurer: Clarence A.
Horn, First of Michigan Corp.
Secretary: Reginald MacArthur,
Miller, Kenower & Co.
Directors: The Officers, and
Charles C. Bechtel,
Watling, Lerchen
& Co.; George J.
Elder, Mercier, McDowell &
Dolphyn; Charles
Exley, Charles A. Parcells & Co.; Paul I.
Moreland, Moreland & Co.;
Claude G. Porter,
Mercier, McDowell & Dolphyn; H.
Terry Snowday,
E. H. Rollins &
Sons, Inc.
National Committeemen; Frank H.
Kemp, R. C. O'Donnell & Co.;
Bert F. Ludington,
Baker, Simonds & Co.; Frank P.
Meyer, First of
Michigan Corp.; Don W. Miller,
McDonald-Moore & Co.
Alternates: Ray P.
Bernardi, Cray, McFawn & Co.; Neil De
Young, De Young, Larson &
Tornga; George J. Elder, Mercier,.
McDowell & Dolphyn; H. Russell
Hastings.
Elected: August
29, 1946; Took Office: October
1, 1946; Term
Expires September 30, 1947.
■
S.
Payson & Co., Portland
Twin
«
♦PETERSEN, JOSEPH
Eckhardt-Petersen
St. Louis, Mo.
j
Teletype NY 1-2628
E.
Mericka^ & Co., Cleve¬
City Bond Traders Association
G.
&
Co., Inc.
Securities
Corp.
PETTEY, HERBERT
Equitable
Nashville, Tennj
PHELPS, ROGER?
Campbell, Phelps & Co., Nev
York
liCMi &
lompuj
(y/hunAuib fib-ahlmjyuL StxxA
120 BROADWAY
•
OxxAasigji
NEW YORK 5. N. Y..
T.I.WOrth Z-4230-B.il
T.l.typ. N.Y. 1-1227
j
•
.
PHILLIPS, EDWARD
Samuel
K.
J.
Phillips
&
Co.
Philadelphia, Pa.
PHILLIPS, JR.,
Samuel
K.
SAMUEL
Phillips
K.
&
Co. j
Philadelphia, Pa.
♦PIERCE, RALPH
Moors &
W.
Cabot, Boston, Mass
♦PIZZINI, B. WINTHROP
B. W. Pizzini
OVER-THE-COUNTER
&
York
SECURITIES
Co., Inc., New
J.
Arthur
New York
E.
Warner & Co.,
Inc.
W.
Wood
B.
Sorum
Robert S. McNaghten
&
Co.,
Paul E. Matsche
Martin
G.
Martinson
President: Kermit B.
Sorum, Allison-Williams Co.
Vice-President: Robert
S.
Paul E.
McNaghten, Williams McNaghten Co..
Matsche, Paine, Webber, Jackson & Curtis.
Treasurer: Martin G.
Martinson, First National Bank
of St. Paul..
National Committeeman:
William J. Lau, C. S. Ashmun Co.
Elected:
October 3,
Expires: October 1947.
POTTER, J. LEE
A.
Kermit
Secretary:
PLUMRIDGE, THEODORE
1946; Took Office: October
3,
v
1946; Term
Boston
Mass.
THE NEW YORK
MARKET
FOR OHIO
SECURITIES
♦POTTER, J. RUSSELL
Arthur W. Wood &
Co., Boston.
Mass.
PULLIAM, LAWRENCE
Weeden
&
Co.,
Los
Calif.
Bond Traders Club of
Kansas
City
S.
Angeles,
PURCELL, HOYT
Martin-Holloway-Purcell,
sas
Kan¬
City, Mo.
QUIGLEY, J. L.
Quigley & Co., Cleveland, Ohic
QUINN, JOHN
Stone &
J.
Youngberg, Sari'Fran¬
cisco, Calif.
Wm. J. Mericka
6-
INCORPORATED
MEMBERS
150
CLEVELAND STOCK
EXCHANGE
Broadway
Union Commerce
Bldg.
New York 7
BArclay 7-3550
Teletype NY 1-2725
Direct Wires
to
New
Co.
Cleveland 14
MAin 8500
Teletype CV
594 & CV 595
York, Cleveland,
Chicago, Toledo, Detroit
RAYMOND, LAWRENCE
J.
Raymond & Co.,
Boston, Mass.
Eldridge Robinson
REHN, MISS, WANDA
John
J.
O'Kane
&
York
Co.,
New
President:
Claude M. McDonald
C.
F.
Mass.
Childs
&
1
RICE, IRVING J.
Irving J. Rice &
Paul, Minn.
Co.,
Treasurer:
Boston,
Co., Inc., St.
Secretary:
Kneeland
Eldridge Robinson, Geo. K.
Vice-President:
RICE, JR., FRED W.
\
Claude M.
Jones
John Latshaw
Baum & Co.
McDonald, McDonald
& Co.
Kneeland Jones, A. E. Weltner
& Co.
John
Latshaw, Harris, Upham & Co.
National Committeemen:
Eldridge Robinson, Geo. K.
Co.; John Latshaw,
Harris, Upham & Co.
Elected: January
1947; Took Office:
January 1948.
J
York
Wm.
NEAL, J. R.
*
,
RONEY, JOHN K.
•
ROBERTS, JR., WILLIAM C.
Ingen &
C.
Chronicle, New
Robinson
ROGGENBURG, STANLEY
Roggenburg & Co., New
^
York
ROBINSON, E. S.
Phillips, Schmertz &
Philadelphia, Pa.
Mass.
York
H. E.
Financial
Boston,
RICHTER, HENRY J.
MUSSON, JAMES F.
J.
Co.,
Mo.
MURRAY, RAYMOND M.
B.
&
RICHARDSON, JOSEPH A.
-
York
Weld
Mass.
Day,
Stoddard &
Williams,
Inc., New Haven, Conn.
Goodwin, Inc., Boston,
Mass.
MURPHY,
^Denotes
Co., Den¬
MULLER, GEORGE T.
Janney & Co., Philadelphia,
♦MURPHY, ARTHUR
E. R. Mulcock &
N. Y.
&
Pa.
Sons, Inc., Bos¬
RICE, J, PRESTON
&
MURRAY, FRANK J.
ver, Colo.
E.
ton, Mass.
'
-
Thursday, August
28, 194,
Baum
&
January 1947; Term Expires:
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
Paul
Herman Tornga, De Young, Larson & Tornga, Grand
5* Hanrahan Hanrahan & Co., Worcester, Mass.;
K.
Carl
Boss &
Carl K.
Boss,
Ben
Co., Portland,
Rapids, Mich.; Ed. Caughlin, Edward J. Caughlin & Co.,
Philadelphia; Neil de Young, De Young, Larson &
Maine;
Bailey, Dayton Haigney & Co., Boston
Paul Moreland, Moreland & Co., Detroit; C. J. Oden-
weller, Jr., Regional Administrator, SEC, Cleveland;
Michael J. lVIconey, special counsel, SEC, Philadelphia
Tornga, Grand Rapids, Mich.
In Attendance at
Dealers in Special Situations
The Convention
Railroad
Public Utility
-
(Continued from page 26)
and
ROSS, CARL K.
Carl K, Ross & Co,, inc., Port¬
Chas. E. Quincey & Co.
ESTABLISHED
Industrial Securities
1
•
.
land, Maine
NEW
YORK STOCK
ROWEN, PAUL
Reg. Admin, Securities
Comm., Boston, Mass.
72 WALL STREET
New York
NEW YORK
RUSSELL, GORDON
5
Teletype
Telephone
Co., Boston,
Goldman, Sachs &
7
Mass.
STREET
BROAD
NEW YORK 4
Van Tuyl & Abbe
Seligman, Lubetkin & Co., Inc.,
NEW YORK CURB EXCHANGE
EXCHANGE
25
Exch.
RUSSELL, EDWARD W.
1887
MEMBERS
■
HAnover
N. Y. 1-1499
2-6622
'
RUSSELL, JAMES N.
Gottron, Russell & Co.,
Cleve¬
land, O.
RUSSELL, P. S.
Glore, Forgan & Co.,
New York
SALMON, ARTHUR C.
Commerce
Union
Bank
DEALERS and
Nashville, New York
Public Utility,
SAMMON, J. F.
J.
F.
Railroad
and
New
Co.,
&
Sammon
DISTRIBUTORS
of
York
Seligman, LaWtkin &> Co.
Industrial Stocks and Bonds
SANDERS, JR., JESSE A.
Sanders
&
Newsom, Dallas,
Texas
INCORPORATED
Bank and Insurance
-
,
Stocks
41 Broad Street
SATLER, FRANK L.
Moore, Leonard & Lynch,
Pittsburgh, Pa.
Dealers Association
Members New York Security
New York 4, N. Y.
*
Bell Teletype:
NY 1-592
Telephone:
♦SAUNDERS, WALTER F.
'
2-2100
HAnover
The Dominion Securities Corp.,
New York
♦SCHAEFER, EDWARD W.
H. D. Knox & Co., Inc., New
Central National
Member National Association
York
22 East 40th Street,
*SCHEUER, CHAS. G.
Scheuer & Co.,
Corporation
of Securities Dealers,
New York 16, N.
Chicago, 111.
SCHLOSSER, GUSTAVE
Union
Securities Corp.,
'
Telephone:
New
Inc.
Y.
Teletype:
NY 1-2948
!
LExington 2-7300
York
SCHOEN, KENNETH B.
Nashville,
J. C. Bradford & Co.,
Tenn.
COAST-TO-COAST
SCHULTZ, LEO J.
L. J. Schultz & Co.,
Ohio
Cleveland,
DIRECT WIRE SERVICE
Co.
ROGGENBURG &
*SELIGMAN, BERTRAM
Ward & Co., New York
NewYork-Chicago-St. Louis-Kansas City-LosAngeles
'
»' *■
SENER, JOSEPH W.
Members
New
'
>
.
"
Dealers Association
York Security
Mackubin, Legg & Co., Balti¬
more, Md.
SHAW, HERBERT I.
Vance,
Sanders
Co.,
&
All
Comstock & Co., Chicago, 111.
SIMONS, KEATING L.
James Conner & Co., Charles¬
Currie
&
Foreign Bonds &
FOREIGN BOND
ton, South Carolina
SINGER, LOUIS P.
Troster,
Complete Trading and
COUPONS
^Continued on page 28)
♦Denotec Mr, and Mrs.
STRAUSS BROS. inc.
Members
York Security Dealers
New
Assn.
29
BROADWAY
-
-
^
NEW YORK 6
32 Broadway
Board of Trade Bldg.
NEW YORK 4
Summers,
New York
Walter J. Connolly Co., BostQn,
Mass.
Statistical Facilities
Stocks
FOREIGN BOND SCRIP
*SKINNER, JR., WM. T.
in
\
Ov.er-the-Coiinter Securities
Specializing in
Co., Bos¬
ton, Mass.
SHERWOOD, D. B.
Dealers a
SPECIALIZED SERVICE
CORPORATE SECURITIES
York"
Sheeline
Dealers
New
SHEA, JR., JOHN L.
Shea & Co., Boston, Mass.
SHEELINE, PAUL D.
Paul D.
Offering to all
.
Brokers and
&
CHCAGO 4
Harrison 2075
Teletype: CG 129
DIgby 4-8640
Teletype: NY 1-832
& 834
Correspondent in London
28
THE COMMERCIAL and FINANCIAL CHRONICLE
In Attendance at NSTA Convention
(Continued from page
27)
Sloan
Wilcox,
Portland,
Oregon
Mass.
*
♦SMITH, HAROLD B.
Collins,
Norton. &
Co.,
New
Blyth & Co., Inc., Boston, Mass.
♦SNYDER, EVERETT W.
Snyder & Co., Syracuse,
York
•
York
H.
Hanseatic
Frederick
C.
Adams
G. A. Saxton &
&
Co.,
Boston, Mass.
♦STAIB, LEE R.
nati, Ohio
Summers,
&
Tyson,
Dempsey-Tegeler
Louis, Mo.
;
&
Co.,
St.
THORNBURGH, R. W.
W.
C.
Thornburgh
Co.,
TIRRELL, JOHN H.
Corp.,
Printing
Jerome
Co.,
F.
Walter
J.
Tegeler
Wm.
F.
Dowdall
Joseph S.
Fischer
Boston,
Mass.
TORNGA, HERMAN
SULLIVAN, JR., JOHN
E.
Co., Inc., Bos¬
SULLIVAN, HELENE
Mrs.
&
Townsend, Dabney
Boston, Mass.
:
Star
A.
Securities
F. L. Putnam &
and
Currie
Cincinnati, Ohio
ton, Mass.
Shields & Co., New York
Mr.
Inc.,
Strauss Bros., Inc., New York
F. L. Putnam &
STALKER, A. J.
Boston,
\
Troster,
The
New York
George Eustis & Co., Cincin¬
Sullivan,
TEGELER, JEROME
Lynchburg, Va.
Equitable
&
*TABB, JR., HENRY E.
Corp.,
Co., New York
STRADER, LUDWELL A.
Scott, Horner & Mason,
SULLIVAN, A.
Donahue
Mass.
New York
STEINDECKER, OTTO
New
Pitts¬
♦STRAUSS, ABRAHAM
♦SPELLMAN, VINCENT L.
♦Denotes
Co.,
♦STOLLE, CARL
SMITH, HERBERT C.
E. W.
&
New York
York
New
SUMMERS, WILLIS M.
Fauset, Steele
burgh, Pa.
♦SMITH, CHAS. H.
Moors & Cabot, Boston,
SULLIVAN, ROBERT W.
STEELE, HARRY J.
&
2S: 1947
Security Traders Club of St. Louis
STANLEY, GEORGE
Schirmer, Atherton.& Co., Bos¬
ton, Mass.
SLOAN, DONALD C.
Thursday, August
DeYoung, Larson &
Grand Rapids, Mich.
Tornga,
♦TOWNSEND CURTICE N.
N.
Co., Inc., Bos¬
ton, Mass."
Weeden & Co., Boston, Mass.
TREANOR, JAMES E.
Director, Trading & Exch., Se¬
curities Exchange
Commission,
Philadelphia, Pa.
♦THOMPSON, WILLIAM S.
Dealers In
Ralph F. Carr &
Co., Boston,
Mass.
Over-The-Counter
Securities
♦TREVINE, ROY
Harriman Ripley
Philadelphia, Pa.
&
Co.,
Inc.
Investment
Dealers'
C. E. STOLTZ CO.
Street, New York 4, N. Y.
Telephone—-HAnover
George Ries
Jerome F. Tegeler,
Dempsey-Tegeler & Co. ,
1st Vice-President: Wm. F.
Dowdall, Wm. F. Dowdall & Co.
2nd Vice-President:
Joseph S. Fischer, Peltason-Tenenbaum Co.
Creely, Goldman, Sachs & Co.
Secretary: Haworth F. Hoch, McCourtney,
Breckenridge & Co.
Treasurer: George Ries,
Mississippi Valley Trust Co.
National Committeemen:
Henry J. Richter, Scherck, Richter Co.;
Joseph G. Petersen, Eckhardt-Peterson &
Co.; Mel M. Taylor, Semple,
Jacobs & Co.; Richard H. Walsh,
Newhard, Cook & Co.
TURNER, STEPHEN C.
Turner-Poindexter & Co., Los
Angeles, Calif.
3rd Vice-President:
VANCE, HENRY T.
Vance, Sanders & Co., Boston,
Mass.
'
,
2-1762
Haworth F. Hoch
President:
Digest
New York
25 Broad
Creely
TRIGGER, RAYMOND
Teletype—NY
1-2532
VARNEDOE, SAMUEL
Varnedoe, Chisholm
Inc., Savannah, Ga.
L.
&
Walter J.
Elected: October 16, 1946; Took Office:
November 1, 1946; Term
Ixpires: October 31, 1947.
Co.,
WADE, GAY D,
Detroit, Mich.
Security Traders Association
♦WAKELEY, THOMPSON M.
A. C. Allyn &
Co., Inc., Chi¬
Underlying Railroad Bonds
cago,
111.
of New York
•
WALDRON, KING
Grimm & Co., New York
WALDR°ON,
STANLEY M.
Wertheim & Co., New York
WALKER, GRAHAM W.
Guaranteed Railroad Stocks
National
Quotation
-
*
Bureau,
Inc., New York
Railroad Terminal Bonds
WALKER, LOUIS
E.
National
Industrial Stocks
Quotation
Inc., New York
♦WALSH, RICHARD, H.
Newhard, Cook
Louis, Mo.
&
WARING, LLOYD
Joseph Janareli & Co.
120
BROADWAY, NEW YORK 5, N. Y.
Orders
Teletype NY 1-315
be telephoned
may
or
telegraphed
at
our
expense
Co.,
St.
B.
Kidder, Peabody & Co., Bos¬
Michael J. Heaney
Louis
A.
Gibbs
Frank
ton, Mass.
A.
Pavis
♦WARREN, ROBERT H.
Geyer & Co., Inc.,
Boston,
Mass.
Telephone BArclay 7-7670
Bureau,
WECK, ALBERT H.
69 Wall
St., New York
♦WELCH EDWARD H.
Sincere & Co.,
Chicago, 111.
WEHMANN, GILBERT H.
White, Weld & Co., New York
WELCH, FRANCIS II.
R. S. Dickson &
Co., Inc., New
York
WEBBER, JR., WILLIAM S.
E. H. Rollins &
Co., Boston
Mass.
T.
WEBER, MISS CECILE
A. C.
SJEjOEM & ('«.
Member< N.Y.
We render
a
Security Dealers
Ast'n
brokerage service
'
Milwaukee,,
5
Telephone: WHitehall 3-7830
Teletype Nor. NY 1-2762-3
C
President:
Michael J. Heaney, Jos. McManus & Co. '
Vice-President: Louis A. Gibbs,
Laird, Bissell & Meeds.
Frank A, Pavis, Chas. E.
Quincey & Co.
Secretary: T. Geoffrey Horsfield, Wm. J. Mericka & Co.
Treasurer: Wellington
Hunter, Aetna Securities Co.
2nd Vice-President:
Weeden & Co;, San
Francisco
Calif.
WEEKS, ROBERT S.
Willers, C. E.
& Cur¬
*
Boston, Mass.
WHITCOMB, BURTON F.
Blyth & Co., Inc., Boston, Mass
WHITING, RICHARD A,
Bond &
Goodwin, Inc., Boston
Mass.
page
37)
;
.
Alternates; Thomas Greenberg, C. E.
Unterberg & Co.; James
D. Cleland, James D.
Cleland & Co.; Elmer E.
Myers, B. W. Pizzivi
& Co.,
Ino.; James F. Musson, B. J. Van Ingen &
Co., Inc.; Stanley
C.
Luitweiler & Co.
'
Directors: Abraham Strauss, Strauss
Bros., Inc.; John M. Mayer
Merrill
Lynch, Pierce, Fenner & Beane; Lester T. Doyle,
Hardy & Co.;
Chester E. De
Willers, C. E. de Willers & Co.; John F. McLaughlin
McLaughlin, Reuss & Co.; Gustave J.
Schlosser, Union Securities
Corp.; George V. Leone, Frank C. Masterson &
Co.; Richard F. Abbe
Van Tuyl & Abbe.
Elected:
on
de Willers & Co.
>
Eaton,Bendix,
WESTON, WENDELL
(Continued
National Committeemen: Charles M.
Zingraf, Laurence M. Marks
Co.; Carl Stolle, G. A. Saxton &
Co.; Stanley Roggenburg, Roggenburg & Co.; Michael J.
Heaney, Joseph McManus & Co.; Chester L
de
&
Boston, Mass.
WELSH, JR., HENRY C.
Lilley & Co., Philadelphia, Fa
Weston & Co.,
Wellington Hunter
1st
♦WELLS, CARL
Paine, Webber, Jackson
tis, Boston, Mass.
Bonks and Dealers
Street, New York
Wisconsin
Geoffrey Horsfield
,*#-■v
WEEDEN, FRANK
Coffin &
Burr,
in all Unlisted Securities for
6(TWaII
Best & Co.,
December 1946;
Expires: December 31, 1947.
Took
Office:
January 1,
1947;
Tern
I
Coi •
THE COMMERCIAL and FINANCIAL
:ntion Number
29
CHRONICLE
M1
Mrs. Stanley Roggenburg, Roggenburg &
Mr. and
Securities
Co'
Corp.,
Fort Worth, Tex.
Investor Confidence in the Securities Market
Domestic and
put a good deal of
weight on the fact that the cus¬
the
impediment to and, in fact, should tomers, in their testimony, have
won't go far wrong.
greatly benefit your business and not been informed of and have not
You, securities traders, perform
the
nature, of
the
increase the customer's confidence. understood
an important function, at least so
On the other hand, a slurring over transactions and their relation¬
lationship in which the firm pro¬
(Continued from page 6)
poses to act, should impose no
same circumstances and you
G. Isaacs, Virginia
Edwards & Co.,
Samuel K. Phillips & Co., Philadelphia; Henry
Norfolk, Va.; Landon A. Freear, Wm. N.
'
Philadelphia
•
Edward Phillips,
Co., New York City; John French
& Co., New York City; Samuel K. Phillies, Jr., Samuel K. Phillips &
A. C. Allyn
Foreign Securities
it is likely to
maintaining an orderly mar¬
of
the disclosure of the firm's ship with the firm.
ket is concerned. You are the men
So far as prices charged to cus¬
status in over-the-counter trans¬
who know the market from day to
actions has been found to be the tomers are concerned, it has been
day, yes, from minute to minute
first step in many of the serious and will continue to be Commis¬
in many
cases.
Your bids can
violations with which we have sion policy to interdict transac¬
maintain an orderly market or
dealt: such as excessive markups, tions effected with customers at
make it chaotic. You are the heart
churning, misrepresentation and prices which bear no reasonable
of the over-the-counter market.
In doubtful cases, where relationship to the current mar¬
Yours is a great responsibility not others.
ket price. I need not enlarge upon
only to the investing public but the Commission is appraising the
to the economic welfare of the willfulness of violations and the this point.
But in this connection
country.
In your dealings with
(Continued on page 30)
public interest in fixing a penalty,
others you should also bear' in
mind your responsibility to your
firm and the fact that your auth¬
orized acts are the acts of the
firm, which will be held respon¬
sible by the Commission and the
We Invite Inquiries
courts for any violations of law
of which youVare guilty.
Old
Reorganization Rails
New Issues
far as
point of customer con¬
the
On
to
advising
(1) in touch with
particular security as an
investment and, in addition to ef¬
a
fecting transactions at a fair price,
you should make it a fundamental
precept of your business practice
that the customer be advised of
and made to understand, the basis
of his
firm
ESTABLISHED
Members
York
New
40 EXCHANGE
1919
Security Dealers Ass'n
PLACE, NEW YORK 5
Teletype NY 1-1397
Telephone HAnoyer 2-8780
COMPANY
C. E. UNTERBERGI
customer properly
a
concerning the merits and demer¬
its of
M. S. WIEN & CO.
Brokers:
from Dealers and
in addition
fidence, I believe that
♦
legal relationship with your
of the legal rights and
can
he
corporations where 100% of the
Purchase price should
purchased.
than $300,000
.
.
.
preferably
more
capital stock
Our
involve not less
organization
Clarence E. Unterberg
than $1,000,000,
Belmont Towbin
(2)
planning the origination
(3)
wishing to sell Blocks of
(4) desiring to participate
of corporate underwritings,
Meyer Willett
Stock,
Thomas
in new underwritings
(Statistical),
Greenberg (Trading)
and in avail¬
able Block offerings.
and
flowing from that relation¬
duties
ship.
In
review of records at
our
the
Hill, Thompson & Co.,
involving over-thebroker and dealer pro¬
Commission
counter
ceedings, we face with distressing
frequency the fact that customers
simply do not know the basis of
their relationships with many se¬
curities firms. Physicians, school¬
teachers
Broadway
N. Y.
SECURITIES
Special Interest in
G. F. Hulsebosch
62
BRANCH
people in the se¬
curities business give the standard
heard
that
many
sufficient
is
open
There is
real
they
don't
intelligence'* to
the simplest ex¬
to
some
OVER-THE-COUNTER
matters.
vices of
a
Domestic, Canadian
SECURITIES
question.
field, for example, of
an agent. No one
Bulolo Gold
Kerr
house using the ser¬
real estate broker has
a
ence
and
Far East
make
your
the differ¬
between the securities broker
dealer
than
it
has
been
difficult
aware
Mines
Oil
to
Young. Aal
of
Members
for others to train them concern¬
115
ing the
Dredging, Ltd.
Addison
Big Wedge
doubt that he bought the
house through the broker
and
not from him.
It should be no
customers
and Philippine
Mining Issues
any
more
City 2, N. J.
Specialists in
the functions of
who buys
OFFICEi 113 Hudson St., Jersey
Specializing in
misconception in the
no
estate
:
customers
comprehend even
planations of technical
This
.
for this.i First,
explanation
have
WHitehall 4-4845
& Co.
NEW YORK 5, N. Y.
Teletype NY 1-2613
STREET
WILLIAM
Telephone
missions.
say
Mining Issues.
DEALERS
BROKERS
firm, and that they have been
paying profits rather than com¬
I have
Domestic, Canadian and
Philippine
intelligence and familiarity
with the
English language, are
found not to understand that they
some
have been buying securities from
the firm rather than through the
-
INVESTMENT
Teletype NY 1-2660
Tel. REctor 2-2020
Dealers in
Brokers and
possessing
others,
and
New York 5,
'
120
Inc.
real estate
agent's func¬
tions. A brief oral discussion with
the customer in each transaction,
explaining to him exactly the re¬
BROADWAY
WOrth 2-6205
New
& Golkin
York Security
MAHER & CO.
Dealers Assn.
NEW
YORK CITY 6,
Teletype
62 William
N. Y.
Street, New York 5, N.
WHITEHALL 4-2422
Y.
TELEPHONE
1-1658
Branch
Office—113 Hudson
St., Jersey
City, N.J.
THE COMMERCIAL and FINANCIAL
CHRONICLE
formed
Investor Confidence in the Securities Market
future Commission
may be driven
by public clamor to adopt a mar¬
ket disclosure rule.
(Continued from page 29)
let
point out that the Commis¬
sion has
quiring
never
firms
adopted
rule
a
conducting
a
re¬
fair
dealer business to disclose the
it have the adoption of
any such
rule in contemplation at this time.
must
this
fact,
you
never
forget, at any time,
have a duty to perform
deal fairly with your customers.
that you
to
this
Commission
or
Over-the-Counter
On
the
vestor
add
general
confidence
kets
subject of
in¬
ter of
concern
to those of
us
who
all
investors.
enterprise
has
a
moral
obli¬
gation. to keep the public
of
the
This
has
progress
of
existing lack
twofold
a
long continue if
Bond Club of
cer¬
defect,
Alvin G.
Syracuse
from
security holders.
me
or
their
public
It is difficult for
to
understand how a broker
dealer can advise his customer
to
buy the securities of an issuer
which does not give
recognition to
its obligations to its
security hold¬
This ought
ers
•
by
keeping
them
fairly
in¬
Mulcock
Edward
L.
Emmons
Charles
T.
Heaton
Trading Markets
Vice-President:
in
Edward L. Emmons, Reynolds & Co.
Corp.
Monmouth Park
American Optical Co.
Bates
Mfg. Co.
Spinning
Security Dealers of the Carolinas
Jockey Club
National Service Cos.
Pfd. & Com.
Blair & Co.
Naumkeag Steam
Boston Herald Traveler
New
Boston Real Estate Trust
New
Boston Wharf Co.
Nu-Enamel Corp..
Rubber Com.
Ohio Finance
Brown Durrell Co.
Parker
Campbell, (A. S.)
Chapman Valve
Keating L. Simons
Appliances
Railway & Light Securities
Ramie Mills of Florida
Wire
President:
S. C.
Vice-President:
Secretary:
N. C.
S. C.
C.
Ewing
Keating L. Simons, James Conners &
Co., Charleston,
E. B.
Wulbern, R. S. Dickson
lotte, N. C.
&
Co., Inc., Char¬
Allen C. Ewing, Allen C.
Ewing & Co., Wilmington,
■
;■
Treasurer:
Remington Arms
Colonial Stores Com.
Allen
Corporation
Purolator Products
Christiana Securities Co.
Collyer Insulated
Cotton
England Elec. System
Hampshire Jockey Club
Nonquitt Mills
Boston Woven Hose &
I. M. Read,
'
V
■■
■
,
'
Frost, Read & Simons, Inc., Charleston,
Riley Stoker
Dewey & Almy Chemical Co.
Dwight Manufacturing Co.
Rockland Light & Power
Saco-Lowell
•
Eastern
Hageman, Syracuse Savings Bank.
National Co.
Bird & Son
'
Alvin G.
Nashawena Mills
Corp.
Fine
Charles T. Heaton, Wm. N. Pope, Inc.
Muskegon Piston Ring
Narragansett Racing Assoc.
Wringer Co. New
Berkshire
Secretary:
Treasurer:
Beneficial
Hageman
Corp.
Cincinnati Stock and Bond Club
Shops
Seneca Falls Machine
Eastern
Racing Assoc.
Giddings & Lewis
United Elastic
Corp.
Harris-Seybold
U. S. Trust Boston
Com.
United
Irving, (John)
Utica
Knitting Mills
Utica
& Mohawk Cotton
Stockyards
Johnson Automatics
Kansas
City Public Service
Valley Mould
Kennedy's Inc. Pfd.
Pfd.
& Iron
Victoria Gypsum
Wamsutta Mills
La Plant Choate
Manufacturing Co.
Warner &
Ley (Fred T.)
Swasey
Warren Bros. "C"
Lithomat Co.
West
Merrimac Hat
Corp. Com.
F. O.
Michigan Steel Foundry
Loveland, Jr.
Whitman
MILK ST., BOSTON
9,
Telephone
HANcock 8200
E.
Madigan
Frederic F. Latscha
(William) Co. (Mass.)
Pont, Homsey Company
31
James
West Point
Mfg. Co.
Millers Falls Co.
du
it is
President: Ernest R. Mulcock, E. R. Mulcock & Co.
Active
American
for
policy of withholding
facts
Ernest R.
Alberton
of
informed
business
information
its
of securities continue
material
represent agencies of the govern¬
ment that the minimum
protec¬
tions afforded
by the registration
able to
some
cannot
to pursue a
confidence, I should like to
last thought.
It is a mat¬
which goes to the public to
finance
its
In my mind public
in the securities mar¬
tain issuers
one
intervals
clients.
your
requirements of the Securities Ex¬
change Act of 1934 are not avail¬
Unless this obligation is
complied
with,
on
Securities
ac¬
tual market price of the securities
which they buy or sell:
nor does
Nothwithstanding
Information
reasonable
concerning the progress of the en¬
terprise.
In my mind an issuer
to be of even greater concern to
those of you whose
responsibility
it is to supervise investments of
,
me
at
Thursday, August 28,
1947
Bell
Teletype
BS 424
MASS.
N. Y. Phone
CAnal 6-8100
i'
Paul
W.
Glenn
George T. Grady
President:
Franklin O.
Loveland, Jr., Field, Richards & Co.
1st Vice-President:
James E. Madigan, J. E.
Madigan & Co.
2nd Vice-President:
Frederic F.
Latscha, Frederic Latscha & Co.
Secretary: Paul W. Glenn, Edward
Brockhaus & Co.
Treasurer: George T.
Grady, John E. Joseph & Co.
National Committeemen:
Robert W.
Thornburgh, W. C. Thornburgh Co.; Harry C.
Vonderhaar, Westheimer & Co.; Clair S. Hall,
Clair S. Hall & Co.
Elected:
January 10, 1947; Took Office:
January 10, 1947; Term
' •:
'
Expires; December 31, 1947.
f§
Monroe, Hunnewell & Co., Boston
bound
only to
not
lessen
public
confidence in the issuer but also
in the firm
which encourages its
invest their funds
to
customers
blindly. When you push an invest¬
have not and cannot
investigate, the customer
buying without full information
will certainly remember that fact
when the market drops.
In times
of stress the investor will lay the
acts of the issuer at the door of
the firm which sponsored an in¬
ment
you
fully
terest
in
You
1946
suoh
that
the Commission
the Congress
in
June,
proposed to
the adoption of leg¬
islation
to
apply- to
curities
of
large issuers some
unlisted
se¬
of
Leahy, National Quotation Bureau, Boston; Mrs.
Whitcomb, Blyth & Co., Inc., Boston
protections surrounding listed
registered securities, includ¬
ing the filing of corporate infor¬
and
mation.
pressed
not
it
because
by
we
cause
any
has
been
means
undertook
—
a
aban¬
but
be¬
broad pro¬
of statutory revision based
cooperative review of the leg¬
problem with representa¬
tives of the securities industry.
gram
on
islative
To carry
mined
to
jointly
out the spirit of that co¬
have deter¬
have the 1946 proposal
We
along
considered
have
with
have
talked
it
over
glad to
with
Day,
The
say
TRADING MARKETS
important fact to remem¬
the
IN
NEW ENGLAND SECURITIES
ber in all this is that we all work
general object¬
ives toward removal of sharpers
and swindlers from the securities
toward
same
toward
business,
and
which
honest
a
market
orderly,
a
market in which investors may
be
is
and
E. H. Rollins & Sons
encouraged to place their savings
greater safety—a market in
which they may have confidence.
INCORPORATED
with
You
forward in our
of
that
proposal
gone
consideration
and
we
recommendations.
other
Wilfred
people
many
am
Baumgartner & Co., Baltimore;
Chas. A. Day & Co., Boston
Clinton Bamberger,
in the industry. I
that much of the
opposition to it tends to- disap¬
The Commission has not pear
when
the
problems
are
the proposal recently— talked out rationally and calmly.
the
doned
E.
and Mr. Burton F.
:r
operative program
securities.
recall
will
Crandon
Mitchell, Hutchins & Co., Chicago; Paul
Star Koerner,
31
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
cause
will
confidence
once
remember
of sharp
lost.
in
that
75 FEDERAL STREET,
be¬
(Trading Wire)
practices customer
the
market
BOSTON 10
New York—WHitehall 4-4877
Hubbard 5500
New
was
York
Philadelphia
Chicago
San
Francisco
Let's not lose it again.
GREETINGS
FROM THE TRADING
DEPARTMENT OF
Coffin & Burr
Incorporated
Founded 1898
148 STATE
STREET, BOSTON 9, MASS.
New York Telephone
HAnover 2-7914
Telephone
Capital 0425
BOSTON
Bell System
NEW YORK
HARTFORD
Teletype
—
BS 259
PORTLAND
BANGOR
ESTABLISHED 1926
H. D. KNOX & CO,
NEW YORK
INC.
BOSTON
32
THE COMMERCIAL and FINANCIAL
CHRONICLE
She
How Things Look to a Yankee Banker
(Continued from
stress
page 10)
government, for
clear theory myself
the
word
I have
a very
about Russia, It isn't the Russian
people.
It is
those bloody, ruth¬
tyrants -that control
the destiny of Russia. The small
uppercrust" of office holders.
less,
cruel
it
on
is a dangerous thing to be
top in Russia when November,
1948
If
comes.
re-elected,
he
Independence
and
write
Joe
Stalin
can't
arid
go
back
settle
articles
for
isn't
to
down
"Colliers"
and get $75,000 a year. He
would
have his damned block
knocked
off.
it.
Don't think he doesn't know
All this talk
about ideological
warfare; it is
no more ideological
Capone's struggle with
the Chicago police was
ideological.
than
A1
Stalin
Tne.y
the
is
proud
have
to
have
got
a ' death-grip
on
people, and as long
Russian
as
they hang
are
to
be
are
on
job.
a
on they
top and they
going
going
to be
"i
smart as they are to say,
going to hang on." And of
it
course
serves
delay and to
the
cause
ipheral
nave
use
most
Russia's
to*
people
feel
or
It is
ends
to
the veto and to
let's
is
me
safer
the
will, take
them
all dealers
to
"Don't for
a
moment
your
the
Russian
they are being at¬
wouldn't hold your
you
good
The
:neir
masters, what the
democratic life are."
If
I
United
of
the
facts
upon
us which
good
a
as we were
awful
w
been
wv
thing—aot
told at
one
<
ti
i
dislocations that w't
brings into every walk of
hie
No^war doesn't win a thin:/.
or
attempts to bring to the Rus¬
people, over the heads of
sian
a
look after her money.. It
there than in Denmark,
piled up
realize isn't
your
You
Ali
the
war does is save
you from
dis
honor and be glad
you have
won
it.
But, it is ideas that
win
Ideas with which the
Soviets
of
are
were
President
of
the
States I would devote all
talents of the best minds
infiltrating
all
the
countries
around their borders and
spread¬
ing the word of how
wonderful
their plan is.
Ameiica to a waria.e of ideas
We have all seen in two
wars that
war wins
nothing for anyone. Over
a million American
boys killed and
:n
Why,
Russia!
that
plan
When
they
have in
Russian sol-
the
(Continued
on
page
33)
Security Traders Association
Complete
a
Quigley
Carl
H.
Doerge
Alan E.
Lafferty
Clemens
E.
Gunn
Jay L. Quigley, Quigley & Co.
Vice-President: Carl H.
Doerge, Wm. J. Mericka & Co.
Secretary: Alan E. Lafferty, Hornblower & Weeks.
Treasurer: Clemens E.
Gunn, Gunn, Carey & Co.
Governors: Dana F.
Baxter, Hayden, Miller & Co.; Robert L.
Erb, Green Erb & Co.; Roderick A.
Gillis, Wood, Gillis & Co.; John
A. Kruse, Otis &
Co.; Richard A. Gottron, Gottron,- Russell & Co.
National Committeemen:
Morton A. Cayne, Cayne &
Co.; Corwin
L. Liston, Prescott &
Co.
Alternates: John A.
Kruse, Otis & Co.; James Russell, Gottron,
Russell & Co.
-
Securities.
in New
L.
President:
in Over-the-Counter
Primary Markets
relax
missing in ti 3
This frightful
debt ha:
war.
says,
possible.
make
wounded and
to
years
become the aggressor which
many
us fear
they are about to be."
On the other
hand, she
Jay
Trading Service
of
and
of
Cleveland
WE OFFER
condition
deplorable,
vigilance in the United States
be the boss.
Well, presented with those al¬
ternatives, one doesn't even have
that
really
per¬
very dangerous thing.
And, they are go¬
I
had a
letter
from a
great
ing to have what they want. And friend
of mine in Denmark yes¬
the moment they lose the
grip terday, the widow of a former Sec¬
they are going to be killed.
retary of State in Denmark. She
to
it
is
enormous
ferment
got
tacked
job.
;hat
as
am
says
Russia
Thursday, August 23.
194,
England
Elected:
September 25, 1946; Took Office: October
1, 1946; Term
Expires: December 31, 1947.
'
-
Securities since 1929.
Bond Traders Club of Portland
We have
retail
no
department,
conse-
"
•
.
•
..
'
'
.
quently
we
do
•
'
not compete
with
|L
|
our
|: I
dealer customers.
John G. Gailbraith
President:
Pierre A.
Kosterman
Russell
McJury
John G.
Galbraith, John Galbraith & Co.
Vice-President: Pierre A.
Kosterman, Conrad, Bruce & Co.
Secretary-Treasurer: Russell McJury, First National Bank of
Portland.
National
Committeeman:
& Co.
Alternate:
Elected:
John
&
Galbraith,
John
Galbraith
Donald C. Sloan, Sloan &
Wilcox.
December
31,
1946;
Term Expires:
December 31, 1947.
May
G.
Took
Office:
December
Gannon
INCORPORATED
161
DEVONSHIRE STREET, BOSTON
10, MASS.
Q)ra/iev,
MEMBERS
NEW
TELEPHONES:
■
'
'
'
BOSTON
NEW YORK
PORTLAND
Canal 6-2610
Enterprise 9830
2 Direct
STOCK
EXCHANGE
'
,
Hubbard 836C
YORK
HARTFORD
Enterprise
9830
.
,
•
>
PROVIDENCE
Enterprise
9830
Complete Listed
and Unlisted
Brokerage and Investment
Telephone Wires
*'•
to
'j
New York—Canal
6-2610
*
Service
Bell System
Teletypes—BS
568 and 569
*
FALL RIVER
53
STATE
STREET
BOSTON
LOWELL
'
31, 1946;
THE COMMERCIAL and FINANCIAL
Convention Number
>
!
D. Griffin; Sam Magid, Hill, Thompson & Co., New York City (standing)D. Griffin, Lord. Abbett & Co., New York City; Mrs. Sam Magid
5,
Mrs. Oscar
CHRONICLE
<
Oscar
&
Co., New York
How Things Look
(Continued from page 32)
diers went into the broken down,
second rate, cheap little capitals
of Bulgaria, Belgrade, Bucharest
during the war and saw people
with
wrist
watches
and silk
stockings, and perfume, hot water
and soap, things that come in the
next five-year plan
of the So¬
of them had
it caused a very dis¬
things
viet,
many
seen,
never
rupting force.
You may remember that Presi¬
dent
Kalinin
had to make
a
A. G.
INACTIVE UNLISTED SECURITIES
Woglom &. Co.
INCORPORATED
Specialists in
INACTIVE NEW ENGLAND
Primary Trading Markets
••
•
'
•!
•:
49 Federal Street,
HUBbard 0773
■
•'
>v*.'
BANK STOCKS
•
•
Boston 10
Teletypewriter BS-189
Paul D. Sheeline & Co.
Private
31 MILK
Telephone to New York—Canal 6-8182
the Russian sol¬
them that it was just
special speech to
diers to tell
Boston; Wanda Rehn, Mitchell, Hutchins
City; John J. O'Kane, Jr., John J. O'Kane, Jr. & Co., New York City
Duffy, Paine, Webber, Jackson & Curtis,
Jim
STREET, BOSTON
Telephone HANcock 0170
Teletype BS 51
They were go¬
around the corner.
have it in Russia a few
hence. And they were feel¬
ing that way after Bucharest.
Well, think if they could look—
to
ing
years
modesty
forbids my saying
Boston—think if they could look
Des
Chicago, New Orleans, or
at
do
how
Moines,
you
think the
TOWNSEND, DABNEY AND
ESTABLISHED
New
England Markets
NEW YORK AND
MEMBERS
ASSOCIATE
EXCHANGES
BOSTON STOCK
MEMBERS
TYSON
1887
CURB
NEW YORK
Russians would feel?
has-reduced
Senate
The
to
a
Why,
Secondary Distributions
if I
were
President, I
spend a billion dollars a
in spreading the American
all over
Russia—a billion
would
year
idea
dollars
or
but
me,
American
do it? Don't
ask
the
in¬
140,000,000
odor, bad
and pink
hair
falling
Why, you get a
couple of thousand of those boys
together and they would have the
Russian people just standing on
their heads over the American
I
Industrials
—
ORDERS EXECUTED ON
Stofcks
ANY EXCHANGE OR MARKET
PRIVATE WIRE SYSTEM
Utilities
YORK TELEPHONE
CANAL 6-1540
Inactive Securities
don't tell me that
people, with the
toothbrush can't.
way
Banks and Insurance
NEW
genuity that has made
think they have body
breath,
UNLISTED SECURITIES
more.
How would you
i
insignificant.
be
will
it
where
STREET
BOSTON 5
•
•
STATE
30
Underwriters and Distributors
pittance what General Mar¬
shall
asked
for, $25,000,000 to
continue broadcasting the "Voice
of America."
Cut it to a point
little
Branches:
Branches:
L. PUTNAM &
F.
CO., INC.
Portland,
77 Franklin Street,
Lewiston,
Boston 10, Mass.
Tel. LIBerty
Me.
Lawrence,
Keene,
Mass.
N,
2340
CABLE
Providence
Portland
Mass.
Greenfield,
Me.
Bangor,
Exchange
Me.
Augusta,
Member Boston Stock
Fitchburg, Mass.
Me.
TELEPHONE
ADDRESS
BOSTON.* LAFAYETTE 7010
"SENDANTHY"
of life.
them
tell
would
about the
I would
South.
lynchings in the
city govern¬
And I would
tell them about our
in
ment
tell them
Boston.
everything. And out of
all, they would
the residuum of it
that we all see
get the picture
of
h. c. wainwright if
with all of its
faults and shortcomings.
But, it
is entirely free and it has more
our
great country
co.
ESTABLISHED 1868
and more things
and to have,
things to offer
for its citizens to do
and to
other coun¬
is the way
to
Joe, and not to In¬
enjoy than any
try in the world. That
to
win
retire
That is the way
wars.
Uncle
of Family
Decay
Life
My third concern—the
I
am
sure
you
I
up
in
believe in
a
first two
will share in wor¬
large family, and
family life. I be¬
a
derive
more,
for
strength, for guidance, more abil¬
ity to stand the shocks that come
as you grow older, from a strong
family.
lieve
you
It isn't the
only way of life,
(Continued on page
34)
INVESTMENT SECURITIES
Banks—Utilities
m
rying about—is even more funda¬
mental to we people in America.
It is the decay of the family as
the center of life.
Now, I was
brought
Textile—Industrials
ATHERJO
dependence, Mo., either.
but
Boston
wd
New York Bank
lltmtcrs
potto*
®
144
& Insurance
Stocks
30 Pine Street
New York
60 State Street
Boston
CONNECTICUT
Members
#
•
.2211
Worce»t"«
lord. Conn.
rk
Industrials—Insurance
New York
New York
Stock Exchange
Curb Exchange
Boston
(Associate)
Stock Exchange
34
THE
Thursday, August
23, 194,
How Things Look to
(Continued from page
it
is
the
way
democracies
the
that
have
best way,
the
33)
as
and I think it has
a
a
worked
marvelously in America.
decaying—I shouldn't be
saying this, not being married—
but it is
decaying.
have
increased
five
to
gated?
contracts
be
Primary
about
have
to
is
It takes
talk
are
talk about it
strength.
to
for Dealers
not
It
it
the
land
is
center
our
the
as
of
our
responsibility
here in America.
up
It
responsibility of Eng¬
the
responsibility
of
or
Russia.
a
so
in
have
we
the
banks
a
five-day
now.
That is
symbolic of
something. It sure is.
I would like to
read what
Thomas
Edison said about the
eight-hour
when the old man
day
Certainly few people
have contributed
so
individual
hard
American people
he
said, "I
day had
I
was
had
73
was
old.
years
I
he
through
to
the
did.
And
glad the eight-hour
made
do
as
been
young
been
days
am
not
a
much
work
not
invented when
If m,y life
of eight-hour
believe I would
man.
up
have
accomplished
very
country
would
This
.
And my fourth and last
point—
again a domestic and basic con¬
cern—is the loss of the
incessant
paid"
But, they don't think
that wav
It
being
now.
is
all
on
the other
side
And what I
say—whether it is
the
political leaders, the
labor
leaders
whoever it
is—there isn't
any
thing as the East
India
or
such
trick, and
on
you cannot
get up
top and stay there
rope
there
on
top
country unless
rope
in
work
of
like hell to do
it!
So, I
this
say
that the
Of
to produce in the United
States.
What made America
the
greatest and the most
powerful
Philadelphia
and the best
Industrial-Utility
Insurance
State &
We
Bank
-
particularly
your
AETNA
county in the world?
because they were
produc¬
wanted to work hard
and produce
things. And it drove
them
in
their
covered
It
invite
inquiries
in:
LIFE
ASSOCIATED SPRING
BILLINGS & SPENCER
AM. HARDWARE
Municipal
LANDERS F.
Securities
CONN.
LT.
&
They
wagons
&
37 Lewis
CURB
ities and be rich.
N. Y. Tel.
Teletype HF
iitf
4,600,000
New
-
York
Mm.
V
Well,
honor. In 1946
workers
Frederick
S.
Fischer
John M. Hudson
involved
were
in work
Charles
J.
stoppages. And they lost
116,000,000 work hours. That is
WHitehall 3-5576:!!
an awful
lot of work and
produc¬
tion that
might have been accom¬
plished. And they don't
to
seem
care
sults
'Phone
of
the
seen
re¬
'
the
poll which Elmer
conducted
last February
Roper
He
have
you
asked
factory workers
question: "Do you feel
Brennan
5j§g;
anymore.
Many of
Houlton, Me.
Hartford
want, that is the way.
stoppages—a,proud
1
One Wall St., New York
5
Direct
.
be
you
work
N. Y. Tel.
WHitehall 3-4794
Hartford Tel. WHitehall
3-5576*
New Ilaven
New London
Providence
Portland, Me.
*
.
capabil¬
it is wealth
If
lost a great
measure of
that in the United
States. We led
the whole world in
1946 in
464
Norwich, Conn.
v,
the
over
have
we
EXCHANGE-
Street, Hartford
Hartford Tel. 7-3261
and
Only by producing can
strong and utilize your
FINISHING
Coburn & Middlebrook
YORK
plains
mountains.
you
MEMBERS NEW
the
across
C.
POW.
NEW BRITAIN
MACH.
RUSSELL MFG. CO.
U. S.
was
ers.
^
this
personally
FIFTY-SIXTH YEAR
if you work
harder on
your job
than the others
around you, that
it will
pay off in promotion or
advancement or will it
make no
OF DEALING IN
difference?"
Well, 49.3%
ployed
wouldn't
CONNECTICUT
SECURITIES
by-products of our union
sys¬
tem.
They
don't
want
people
working hard and
pushing one
above the other.
counter. He isn't
That is also the
different
&
Members New York Stock
Exchange
New
New
London
Hartford
2-4301
Haven
HAVEN
6-0171
New York CAnal
6-3662
7-2669
Bell
Teletype NH
194
7,
Everybody
a
man
CO.
CONN.
*
Waterbury
Danbury
3-3166
5600
audience,
Social
that
the
Workers.
calling attention
a
to
some
our
was
We have
1,500,000 at work pro¬
income in the
Common¬
wealth of
Massachusetts. And in
this statement
it
says
that we
have 803,000 who
not
000 to
it
engaged
That
is
producing income.
a
burden, isn't it, for 1,500,-
quite
Members New York and
Boston Stock
Exchanges
Associate Members Netv
York Curb
Exchange
I
figures
ducing
are
Tifft Brothers
Institute
And
little State of
Massachu¬
setts had about the
number of
people who were
being supported
in whole
or
in part
by public
funds.
in
Primary Markets
is
anymore.
to serfdom.
way
There is no
question about that.
Last Sunday I
spoke to a rather
of
STREET, NEW
at
the
9
CHURCH
difference
any
whether they worked
harder.
Why work hard? That is
one of
Statistical Information
209
people em¬
factories
said
it
make
all
Primary Markets
CHAS. W. SCRANTON
of the
in
carry 803,000.
Well, the only difficulty
was
that
was
some
of
the
making reference
Wallace H. Runyan
President: Frederick
1st
2nd
Vice-President:
Vice-President:
Secretary: Wallace
S.
A. H.
Fenstermacher
Fischer, H. N. Nash & Co„
Hudson, Thayer, Baker & Co.,
Brennan, Blyth & Co., Inc.
John M.
Charles J.
H.
Runyan, Graham, Parsons & Co.
Treasurer: Albert H.
Fenstermacher, M. M. Freeman & Co.
Governors; John G.
Barton, F. P. Ristine &
Ramho, Close &
Co.; Edmund J. Davis,
Kerner, Inc.; Russell M.
H.
Dotts, Bioren & Co.; Harry
Fahrig, Jr., Reynolds &
Co.; Edward
Sons, Inc.; Floyd E.
Jennings, Jr., E. H. Rollins &
Justice, Kidder, Peabody &
Geo. E. Snyder &
Co.; Thomas J. Love,
Co.; John
A.
McFadden, Smith, Barney & Co.;
McNamee, Hopper, Soliday &
Joseph
R. C. Miller
Co.; R. Conover
&
Miller, E. W. &
Co.; R. Victor
Mosley, Stroud & Co.,
ler, Janney &
Inc.; Geo. J. MulCo.; Willian J.
Nichols, Butcher &
Raffel, Raff el & Co.;
Sherrerd; William
Harry B. Snyder, Yarnall &
Suplee, Yeatman &
Co.; William Suplee,
Co.; John B. Swann,
Jr., Lillet/ & Co.; C. L. Wallingfordj Fitzgerald & Co.; John F.
Weller, Buckley Brothers.
National
Committeemen: Herbert H.
Co.; Fred S.
Blizzard, Hess, Blizzard &
Fischer, H. N. Nash &
& Co.;
Co.; George J.
Thomas
Muller, Janneyi
O'Rourke, Stroud &
Co., Inc.; Ellwood S.
Phillips, Schmertz &
Robinson,,
Robinson.
Elected: September
6, 1946; Took
Term Expires:
Office:
September 6,
September 12, 1947.
1946;;
Pittsburgh Securities Traders
Association
with
people I
to
were
on
the payrolls of
certain states as
social workers and
so forth.
And
the
people at that
meeting weren't
drones. When I
got through talk¬
ing they were hornets.
But, it is a significant
thing, is
not, when we are
In
it
desire
Hartford
that
Connecticut Securities
Insurance
Utilities
Hartford 7-3191
Springfield: 4-7311
New York:
gaged
Bowling
and
month
Green 9-2211
Teletype:
HF 365
gainfully
States
to
the
produce,
of
in
our
should
in
people
en¬
the
United
history,
that
we
be
paying unemployment
insurance to 116,755
just in this
little
bit
of
an
old
state—116,755
people getting
unemployment in¬
surance!
George S.
Lestrange
William G.
Simpson
President: George
Vice-President:
Secretary:
Earl
Earl E. Sweitzer
Kenneth
Moir
S.
Lestrange, Moore, Leonard &
Lynch.
William G.
Simpson, H. M. Byllesby &
E.
Co., Inc.
Treasurer: KennethSweitzer, E. E. Sweitzer & Co., Inc.
Moir, Chaplin & Co.
take up the
Directors: Chas. N.
slack—at least that is
Fisher, Singer, Deane &
the way I
Scribner; Wilbur E.
understood it—is hard Johnson, Johnson & Johnson;
& Co.
Lawrence E. White, Blair
times. I don't know
F. Claybaugh
how
The
Boston: Liberty 8852
Bell System
talking of
work
the
January,
1947, when we were
nearing the
highest number of
and
Industrials
to
in
*
thing
that
was
going
to
many of
National
come from
states where
Committeemen: George S.
peo¬ &
ple still work hard.
Lynch; Charles N.
Lestrange, Moore, Leonard
But we have
Steele, Fauset, Steele &Fisher, Singer, Deane & Scribner;
got a law here now.
Co.
Harry J.
The bankers
aren't allowed to
work more than ™
May 2> 1947' Took
June 1,
May 30, 1948.
1947; Term
;
you
.
Ei?ct,ed:
Expires:
a
you
thing for
Investment1 Traders
Association
urge
everywhere
much
not
havP
amounted to as much
as it
does if
the young men
of 50
years ago
had been afraid
they might
earn
more than
they were
Loss of Urge to Produce
atrocious
CONNECTICUT
MARKETS
fix
is
the
as
week
Lippy
sweeping down the hill
family
everywhere
so
the
as
ican people couldn't
swallow that
they had to revolt against it.
It takes
something like that to
make us realize how
swiftly we
love if you de¬
as
its
center.
something
scandalous
and
make
You will have a
new
kind of
system to live under if
you do.
so
future
Durocher and Larraine
Day affair
bring this out. Even the Amer¬
this is
just to
it
days a week. We are so pre¬
cious they have to
save us for the
to
because you can't
conduct the free
liti¬
That
think
democracy that we
stroy the family
made
you
go to court and
But it isn't that.
You ought to
so.
and
What kind of business could
you
gentlemen conduct if two out of
every
Seriously,
racy, and you don't
like this in church
it
enor¬
mously.
Two out of every five
marriages now end in divorce.
had
very
and
important thing. It is fun¬
damental to our
Christian democ¬
But it is
Divorces
result of this.
five
Yankee Banker
a
only the form. It is the scars
that
divorce leaves. The
embitterment
and trie
emptiness that comes as
Christian
conceived
COMMERCIAL and FINANCIAL
CHRONICLE
us
Fitzgerald & Co., New York City;
Hallett, Draper, Sears & Co., Boston, Mass.
William D. O'Connor,
Lee
Marguerite Campbell, A. C. Wood, & Co., Philadelphia;
Connell, Wellington Fund, Boston
Jim Duffy, Paine, Webber, Jackson & Curtis Boston;
Herb Blizzard, Hess, Blizzard & Co., Philadelphia
Mr. and Mrs. Lawrence
around and know
to do is to look
Look them in the face
the facts.
CORPORATION
VERNEY
the American peo¬
and tell them,
feed them
Some of
I have, probably have that
ple, the truth and not
these pious platitudes.
you, as
35
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
U.
S.
SUGAR
CORPORATION
LYONS & SHAFTO
TENNESSEE PRODUCTS CORPORATION
Incorporated
wonderful little book "Oh, Yeah!"
files which was published
after the last crash in 1929 and
1930.
And every once in a while
I like to bring out that little red
book and read what some of those
NU-ENAMEL
great men said in 1928 and 1929.
wouldn't
believe
it.
But
.Civ.-;..
in your
CORPORATION
BOSTON SAND & GRAVEL
Common & Preferred
''
9
Municipal Bonds
State and
"Cv
You
the
of
some
talk
today
people
General Stock & Bond
just about the same.
We
have
10
got a new pattern of
economic
area, or some such thing, and no¬
body knows what it means. But
democracy
think
read
and
Telephone Liberty
Milk
31
YORK 6
NEW
BOSTON 9
BOSTON 9, MASS.
115
Street
Broadway
Teletype BS 373
8817
good.
it
a
once
week
feet on the ground.
and keep our
Now,
Corporation
SQUARE
Well, I
ought to get out "Oh,
we
Yeah!"
new
awfully
sounds
it
a
or
OFFICE
POST
Specializing in tax exempt bonds
will think that the
you
Old
Colony is selling stocks from
what I have said, and we are go¬
ing to buy nothing but municipal
bonds.
You remember in August,
.
1929, when the then Secretary of
the Treasury, Mr. Andrew Mel¬
lon sailed to Europe—do you re¬
member
how
things looked in
1
viiettMi'-'.
'
•
.
1 ■
•
BONDS
MUNICIPAL
State
•
County
Territorial
shy little voice said, "I think it
a good time to buy bonds."
♦
Revenue
Insular
•
Investment Securities
is
they practically
murdered him. Buy bonds? Why
this man is destroying this dream
of America—this great thing we
have got here. Telephone is go¬
ing to be split, four for one, and
"I know
.-,v
E. M. NEWTON & COMPANY
August, 1929? Electric Bond and
Share going up 10 points every
day? Someone said to Mr. Mellon,
"How do you think the market
looks?"
Mr. Mellon in his quiet,
Well, of
•
course,
a man
F. Brittain
75
whose brother-in-
law is married to the President of
It's
Bond and Share.
201
DEVONSHIRE
STREET
•
FEDERAL
Boston IO,
BOSTON 10
cinch, buy
a
Kennedy 6» Co.
STREET
Mass.
Teletype—BS 333
HANcock 0500
it and put it away and
forget it."
Well, I think if we had a few
more
boys like Andrew Mellon
around
to
to
talk
the
American
people today it would be a mighty
UIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIIIIIIIIIIIIIIIIIIIln
good thing.
want you to go
from here thinking that I
Now,
away
am
am
don't
I
discouraged about America. I
It is because I believe in
not.
America that I want to have the
facts
all
to
told
American
the
people, and not have them fed a
lot of things that I will not men¬
tion
in
of
front
this
charming
(stenographer tak¬
young woman
ing down speech). Lincoln was
right when he said that this was
the last
best hope on
When
I
the
I
|
1
INVESTMENT BANKING and BROKERAGE
|
1
IN
CONNECTICUTI
President
Chest) I went all
States, as many
I saw many of the
American
people at their best.
They are perfectly wonderful peo¬
ple, and there is nothing that can
stop them. But, you have got to
them
the
facts.
Of
course
PUTNAM & CO.
Members of the
6 CENTRAL
and
as
right.
they
act,
will
people they will act
And the whole world has
free
learned
years
them
twice
that
in
when
these
last
America
nothing stands in her way!
20
acts,
New York Stock
LISTED and UNLISTED
•
BONDS and STOCKS
\
Particularly of
NEW ENGLAND CORPORATIONS *
Maintaining
|
5
,
CAnal 6-1255
Enterprise 1540
Bell Teletype
Philadelphia
Enterprise 6350
Htfd. 564
5
5
=
Enterprise 6040
New York
Retail Department
England
with Distribution in New
ROW, HARTFORD 4
Boston
a
institutions
Exchange
Telephone 5-0151
don't know all the facts, but when
know
Incorporated
and Financial
they will make mistakes if they
they
Chas. A. Day & Co.
Inquiries invited from Dealers
United
of you do, and
tell
40 YEARS OF
I
earth.
Chest
was
(Community
over
|
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIHIHMIIIIIIIIIIimillllllllllllllllllllHM
WASHINGTON AT COURT STREET
Member Boston Stock Exchange
36
THE COMMERCIAL and FINANCIAL
CHRONICLE
A Call foi Balanced Economic
(Continued from page 12)
could
be
sustained
could
for
right to expect on
Although the time
factor will hinge
strongly on in¬
ternational political
developments
yet to come, somewhere in the
several
be
materially higher
than prewar normal.
Population
growth, the long-term trend of im¬
proved
standard
of
living, the
huge credit base and the commer¬
years
have
we
a
any
future
for
women's
apparel
than
would normally be expected with
recent levels of disposable income.
Meanwhile
less
than
we
are
normal
were
lifted
July 15*.
structure will feel the
effects of reduced exports.
the
responsibilities.
trend
1947
seems
At
ieaoc:rshii>
very seriom
any rat*
to be in
thJ'
the
direction
lending very sizable
sum
money to foreign
nations fo
of
our
our
,
of
wwliU
with ltTsome
carries
seemingly un¬
toward foreign developments
sug¬
gest strongly a conformance to a
spending 51%
expectancy for
77
.
on
All of the recent
motor vehicles, 30% less at the broad pattern wherein the
world
filling stations, 11% less for lum¬ is dividing into two ideological
processes
Then, too, we are all conscious ber and building materials and 9% segments, one headed by Russia
and products developed since 1940 of
maladjustments within the price less for house furnishings. Some¬ and the other headed by the United
would all seem to lend great as¬ and
wage structure. Primarily due where along the line these wide
surance to this
to prices, the Department of Com¬ distortions from normal will have
probability.
Exports have also been a prop. merce calculates that the Amer¬ to be adjusted and probably the
Recently accounting for 11% of ican people are
spending 41% major adjustment will ultimately
our
gross national product, they more in
eating and drinking places, be found in food prices.
are as much as
50% higher than 39% more in food
And within the
stores and 33%
cialization
£a,'
broadly recognized several months
ago that England's position was
going to be difficult when the ex¬
change convertibility restrictions
Hunting
more
normal basis.
Thursday, August
of
time to
some
new
come.
There may be
,
(Continued
temporary
on page
inter
38)
Memphis Security Traders Association
structure
wage
there
A
are
pretty bad distor¬
tions.
The Department of Labor
recently released some interesting
figures and unfortunately the pub¬
licity and radio comment missed
Continuing Interest in:
the
some
most
important
point.
f
+
The
publicity glossed
over the fact that
the real purchasing
power of fac¬
Pennsylvania Power & Light Company
tory workers (with two depend¬
ents) in May was 27% higher than
Southern Advance Bag &
Paper Co.
it was in
1939, after adjustment
for higher cost of living
and
higher taxes. Nor was any men¬
American Meter Co.
'
ggr
tion made of the fact that several
million more workers have been
Grinnell Corporation
added
the
to
payroll
list
Jm
W.
since
G.
Leftwich
Frank D. Frederic
Early
1939.
Therefore, there -has been
exceedingly sharp increase in
an
ESTABLISHED
MEMBERS
PHILADELPHIA STOCK
NEW
YORK
CURB
National Committeeman:
pub¬
motes
(ASSOCIATE)
a
bad
very
economic and social
System
5-8200
Teletype
New
PH 30
York
Treasurer: Edward F.
distortion
in
Telephone
COrtlandt
7-1202
Elected:
16, 1948.
Nashville
sharp
higher
prices that have been caused
by
the
higher
manufacturing and
decline
as
labor costs.
Dealer
line
Inquiries Invited
be
American
Box
_
Board
As
Central
Com'l
Louisiana
com.
Shearing
& Stamping
Crescent Public Service—
East Coast Public
Service,
—com.
&
com.
com.
com.
Vinco
we
com.
com.
com.
Corp
com.
Company.
we
are
com.
interested at all times in listed
or
unlisted securities
correction
of
own
account
or
for
H. M. BYLLESBY
retail
COMPANY
and
|
survey these fundamental
ment
the
a
as
level
more
well
of
as
6-3717
Bell
compliment the NSTA
continued growth and
on
Teletype—PH
73
It is this adjustment
period that
has been paramount in the minds
of
economists, investors and busi¬
ever
since VJ-Day and
the presumption almost
invariably
has
been
that
the
Wiley Bros., Inc.; Thomas H. Temple,
Elected:
December
Bank.
<
27, 1946; Took Office: January 1, 1947; Term
Expires: December 31, 1947.
*
balance
the
lem
economy. Already
of disposing of
Dallas Bond Club
of
the prob¬
poor
quality
difficulty, whereas
had
been
feared
nine
months
a
Just how rough and dif¬
correction period
might be
depend very
largely on the
extent of the
maladjustments that
exist at the time when
some factor
starts a downward trend
in either
or
business
ac¬
tivity. At this particular
moment,
it is
unlikely that anything very
would
simple
reason
Judson S.
James, Jr.
materialize for the
that the outlook for
many of our key industries is
still very
strong.
'
Treasurer:
Foreign Situation
So much
Directors:
publicity is being given
to the economic
crisis in England
and the
shortage of dollars avail¬
able to foreign
countries that it is
160
York—HAnover 2-4120
quite unnecessary to
go into this
r
subject in detail.
Rather, it might
be well to
remember that it
was
C.
Jackson, Jr.
William Waggener
&
Joe
W.
Ellis
Stayart.
Vice-President: W. C. Jackson,
Jr., First Southwest Co.
Secretary; William Waggener,
Walker, Austin & Waggener.
Joe W.
\
PHILADELPHIA STOCK EXCHANGE
W.
President: Judson S.
James, Jr., James
so
Philadelphia 9, Pa.
Wilson, Jack M. Bass & Co.
Delegate: Paul O. Frederick, Commerce Union
Alternate: Jo Gibson,
Jr., Webster & Gibson.
so; there is no credit strin¬
gency and deferred demands are
still present in
enough lines to
permit adjustments in one
factor
without affecting the
commodity prices
Teletype PH
Corp.
Buford G.
sarily
ficult
123 South Broad Street
\
Matthew B. Pilcher, Mid South Securities
Corp.
Herbert Pettey, Equitable Securities
Directors: D. W. Wiley,
Thomas H. Temple Co.
severe
New
Buford G. Wilson
Vice-President:
Secretary and Treasurer:
trouble.
Incorporated
of
Pettey
ago that this problem would
cause
Investment Securities
to
adjustment
Herbert
so; curtailed export demand
it
HESS, BLIZZARD & CO.
Private wire
President:
for food together with
very large
crops could bring a sharp setback
in farm and food
prices and it
would be
temporarily uncomfort¬
will
Kingaley 5-7200
Matthew B. Pilcher
nessmen
wartime materials and
government
surplus materials has been
solved
without serious
its
prestige in the security profession
Members
to
with
over-pro¬
conditions in some of the
industrial lines.
But not neces¬
increasing
ever
in
normal postwar rate.
duced
V
We
decline
activity
some
business
simultaneously
Stock Exchange
Building, Philadelphia 2, Pa.
Phone—RIttenhouse
that
appear
able if this correction took
place
PHILADELPHIA OFFICE
,
mal¬
a period of
price (and possibly wage)
adjust¬
sibly
distribution.
INCORPORATED
this
would be rough and difficult.
Pos¬
for
.
our
P:
Somewhere along the
probably have to
•
We
Security Traders Association
will have to face
com.
Stoker
Southern Colorado Power
Sterling Motor Truck
com.
Warner
pfds.
Riley
com.
-
com.
& 7%
Philadelphia Co.
com.
Pittsburgh Rys. all underlying issues
com.
Harrisburg Steel
com.
—
6%
Pettibone Mulliken
com.
Printing
Stetson
Pennsylvania Engineering
-com.
Empire Southern Gas—
Empire Steel
General Manifold
Gisholt Machine
B.
com.
——
Nazareth Cement
No. States Power
com.
com.
Irving Shoe
John
"A" & pfd.
Electric-
Brothers-
John
com.
Botany Worsted Mills
Capital City Products
a
the
will
distortions, it would
Jenkins
com.
—
of
Term
adjustment.
Active Trading Markets
Air Associates
there
some
result
a
Planters National Bank.
Early F. Mitchell, First National Bank
January 17, 1947; Took Office:
January 17, 1947;
Expires: January
adjustment is to be found in the
fact that real purchasing power of
fixed incomes and of
savings and
borrowings has suffered
Thompson, Union
of Memphis.
thinking.
In this connection the real mal¬
PHILADELPHIA 3, PA.
Bell
Thompson
licity that should have been ac¬
them; the lack of it pro¬
1606 Walnut Street
PEnnypacker
Edward F.
Vice-President: Frank D.
Frederic, Equitable Securities Corp.
Secretary: Early F. Mitchell, First National
Bank of
Memphis.
corded to
EXCHANGE
EXCHANGE
Mitchell
the total of real
purchasing power
factory workers as a class.* It
is most
unfortunate
that
these
facts have not received the
of
1914
Boenning & Co.
MEMBERS
F.
President: William Groom
Leftwich, Leftwich & Ross.
Ellis, R. A. Underwood
Charles B.
Carothers, Car others
&
Co.
&
Co.; O. V. Cecil
Co.; C. Alfred Bailey, Dittmar & Co.
National Committeemen: John
B. Cornell,
Jr., Dallas Rupe &
Son; Landon A. Freear, William N.
Edwards & Co., Ft.
F.
Worth; James
Jacques, First Southwest Co.; John L.
Canavan, Rauscher, Pierct
& Co.
R. S. Hudson &
i
Elected:
January 7, 1947; Took Office:
January 7,
Expires: December 31, 1947.
1947;
Tern-
Mr.
and Mrs.
and FINANCIAL
THE COMMERCIAL
Convention Number
Lee R. Staib, Geo. Eustis & Cp.,
Ted Plumridge, J. Arthur Warner
Cincinnati; Mrs. and Mr. Walter
Saunders, Dominion Securities Corp., New York City
__
In Attendance at
Wright
J.
Co.,
&
D.
V.
Anderson &
Co., Cleve¬
ZINGRAF, CHARLES
&
Curtis
Clement,
M.
Marks & Co., New
Laurence M.
Chi¬
Co.,
York
111.
New
WHITTEMORE, DONALD H.
H. Whittemore
New
York
120
York
PHILADELPHIA, PA.
PHONES:
Hooper-Kimball, Inc., Boston,
Mass.
—
BROADWAY
NEW YORK
unlisted
WILLIAMS, T. EDWARD
Trade
Stock Exchange
STREET
Bissell & Meeds, New
Laird,
'
'
Chicago Board of
Commodity Exchange, Inc.
Curb Exchange
Philadelphia
123 SO. BROAD
inquiries in
We invite
MEMBERS OP
York Stock Exchange
& Co., Bos¬
WILLIAMS, CARROLL W.
V
'
;
ton, Mass.
Scott & Co.
Montgomery,
'
(Continued from page 28)
D.
J. Arthur
land, Ohio
Mass.
cago,
& Co., Chicago
"ZIES, CARL W.
Boston,
*YARROW, PAUL
The Convention
& Co., New York; J. Arthur Warner,
Warner & Co., New York; Ed Welch, Sincere
■
WRIGHT, FREDERICK J.
F.
CHRONICLE
Railroad, Public Utility and
*
Industrial
PHILADELPHIA
PEnnypacker 5-7400
NEW YORK
REctor 2-0775
WILLIAMS, NANETE
securities
New York
ANDREW N.
Perrin, West & Winslow, Inc.,
WINSLOW, JR.,
Boston, Mass.
Guaranteed Railroad Stocks
WOELFEL, ERNEST J.
F.
S.
Moseley
MUNICIPAL
Co., Boston,
&
Mass.
PUBLIC UTILITY
*WOGLOM, ALBERT G.
A.
Woglom & Co.,
G.
RAILROAD
-
Boston,
INDUSTRIAL SECURITIES
ESTABLISHED 1872
Mass.
Hopper, Solidays
T.
Newton & Co., Boston,
WOLL, ALBERT J.
E.
M.
MEMBERS
Mass.
HVOLLEY, SUMNER
Coffin
&
Burr,
R.
Inc.,
LAWRENCE
Allen & Co.,
*Denotes
Mr.
We
Bell System
Telephone—PEnnypacker 5-4075
New York
and
MORTGAGES
F. H. A.
Pennsylvania and New Jersey
actively interested in
are
Teletype—PH 593
trading departments
We maintain active
direct contact
with Markets in
with
principal financial centers
Mrs.
Sons
E. H. Rollins &
>
Incorporated
Wishes
Greetings and Best
Telephone:
New
Bell System
New York
TRADING
DEPARTMENT PERSONNEL
Victor
R.
Offices or
Equipment
Thomas F.
Frank J.
Gordon
Public
O'Rourke
-
Telemeter Service to Chicago
Chicago • San Francisco
throughout the country
Utility
Public Utility
Bonds
Laird
& Leased
Jr.
«
Municipal Bonds
Sales Order
Department
Statistical
Edward
Department
Bond
Felix E.
Industrial
General Market
and
Electronic
Municipal Bonds
Television
Securities
Leased Line Stocks
Consultant
F. Hirsch
Prescott
Jersey and
Guaranteed and
R. Hunt
William
•
R. R.
New
M. Ergood,
Railroad
SECURITIES
Guaranteed
J. Rudolph
•
8t Stocks
W. Pfau
Michael
in
Bonds
McKee
Russell
John
—
principal cities
representatives in other
Industrial
Frank T.
Philadelphia
-
Dealers and Brokers
Railroad
Randolph
Foard, Jr.
Allen B.
Boston
Through DIgby 4-7818
and 269
Trust Certificates
Laird
L. Wister
York Calls
Teletypes: PH 268
-
Philadelphia 2
PEnnypacker 5-0100
Mosley, vice president
Mosley
R. Victor
Frank J.
St.,
1528 Walnut
Philadelphia
from
Equipment s Trust
Obligations
Bank and Insurance
Stocks
Maguire
Railroad
Watts
Field
Bell
System
New York
Teletype
Wires
-
Representative
Ph 296-297
REc. 2-6528-29
Charles A. Taggart
STROUD & COMPANY
INCORPORATED
Investment
1500 Walnut
123 S.
new york
Municipals
PHILADELPHIA 2
Mass.
*WREN,
walnut street
1420
Boston,
Co.
EXCHANGE
PHILADELPHIA STOCK
BROAD STREET
pittsburgh, pa.
allentown, pa.
PHILADELPHIA 9, PA.
scranton, pa.
reading, pa.
St.,
Philadelphia
Dime Building,
lancaster, pa.
& Co., Inc.
Securities
2—KIngsley 5-1716
Allentown, Pa.
THE COMMERCIAL and
FINANCIAL CHRONICLE
Wm.
Perry Brown, Newman, Brown &
Co., New Orleans, La.; Geo. H. Earnest,
& Co., Los
Angeles; Jerry Tegeler,
Dempsey, Tegeler & Co., St. Louis;
Graham Walker, National
Quotation Bureau, New York
City
Jim
Fewel
Bond Traders Club of
Seattle
Ed
Thursday, August 28,
1947
Cleaver, Goodbody & Co., New York City;
Welch, Sincere & Co., Chicago; Mr. and Mrs.
Boston
Mrs.
A Call ior Balanced Economic
(Continued from page 36)
ruptions in our high level of ex¬
tries
ports
be
but
that this
the
basic
fact
remains
country continues to be
the only source of
supply for a
foreign demand that may take
years
to fulfill.
Much
has
said
about
the
increase in breakeven
points that
taken place in
many indus¬
has
before
the
war.
The
exaggerated.
months
been
our
For
whole
strained
the
past
economy
shut
12
Robert
Moore
F. Kenneth Easter
an
automobile
plant
sup¬
ply is really insufficient to
has
by
meet
demand has rather
naturally cre¬
ated an
independent attitude on
the part of the worker
which is
efficient productive
capacity. The
raw materials flow has
been er¬
not conducive to
efficient produc¬
tion.
tight demand situ-
The strong seller's market
unduly widened the profit
margins of contractors, wholesal¬
and jobbers all
along the line.
Bond Club of Houston
A. Jordan
costly proposition to
a
down
has
Andrew
Warren, Boston;
when steel sheets become
unavail¬
able. The fact that the labor
operating at a
which is really in excess of
ratic due to the
H.
Thinking
ation; it is
point is well taken and should not
minimized—nor should it be
rate
been
since
Robert
Harry Madary, Geyer &
Co., Inc.,
ers
It is
probably safe to
ficiently at
that the
say
economy would operate
Waldemar L. Stein
ef¬
more
10% or 15% be¬
low current levels and
this fact
should be given consideration in
President:
Andrew A. Jordan, Jordan &
Company.
Vice-President: Robert
Moore, Pacific Northwest Co.
Secretary: F. Kenneth Easter, F. K. Easter &
Co.
Treasurer: Waldemar L.
Stein, Bramhall & Stein.
National Committeeman:
Donald A.
Meyer, Foster & Marshall.
Alternate: Hugh R.
Schlicting, Wm. P. Harper & Son & Co.
Elected:
October 9,
1946; Took Office: October
9, 1946; Term
Expires: December
some
calculating breakeven points.
Then, again,
breakeven
some
usually think of
in
relation
prewar level of business
tivity.
31, 1947.
we
points
The
long-term
to,
ac¬
trends
of
population growth and standard of
living
basic
Primary Markets
Philadelphia Transportation
Claude
T.
Crockett
R.
Co.
R. Rowles
Claude T. Crockett,
Moroney, Beissner & Co.
Vice-President: Russell R.
Rowles, Rowles & Co.
Issues
Secretary:
Neill T.
Masterson, Chas. B.
RIttenhouse 6-8500
ESTABLISHED
Building, Philadelphia 2, Pa.
& 3295
Telephone
White & Co.
Bell System
even
Telephone
WHitehali 4-1234
points.
even
points
BROOKE, STOKES
should
But let
either.
&
CO.
will
not
stay put.
be a
steady trend
toward improved
efficiency and in
many industries higher prices have
tended to offset
higher costs.
There
1912
Teletype—PH 279
Prewar highs
may
We will also find that the break¬
/
portance
New York
Enterprise 2050
activity
volume basis.
well be postwar
lows.
Naturally this factor should
be given consideration
in apprais¬
ing the hazards of higher break¬
F. J. MORRISSEY &
CO.
Boston
requirements of the nation
a
in
President:
Philadelphia Telephone
steadily increasing the
on
In All
Philadelphia Bank Stocks
Finance
are
not minimize the im¬
of
railroads,
there should be
Investment Bankers
breakeven
points
is warranted con¬
about the breakeven
point of
cern
the
us
There
for
example,
and
about any
the revenue side
concern
industry wherein
is rendered
inflexible by govern¬
control or is rendered vul¬
ment
WHOLESALE & RETAIL
DISTRIBUTORS
N. E. Cor. 15th &
Locust Sts.
Philadelphia
2
Baltimore, Md.
This factor is
deserving
1928
at
SECURITIES
Morgan & Co.
of business
volume and
a
vation that interest
rates
and,
mand
BUILDING
are
low
with any other
commodity,
the price is a
pretty good clue as
as
to the
TRUST
prices
very high level. Any argu¬
of all of the
pros and cons
must still end up with the obser¬
National Distributors
ESTATE
that is always
dence that the credit base
has been
enlarged to a point where it is
much more than
ample to take
Specializing in
ment
REAL
one
of
consideration
be¬
cause of its effect
on business con¬
ditions and
security prices. At the
present time there seems to be no
care
L.
com¬
need to go into the
matter in de¬
tail because there
is ample evi¬
l
OVER-THE-COUNTER
W.
unusually
conditions.
Money and Credit
'
INCORPORATED
petitive
300 N. Charles St.
1
.
nerable because of
PHILADELPHIA
*
7
FINANCE BLDG.,
PHILADELPHIA 2, PA.
Teletype—PH
788
Telephone—RIttenhouse
6-4494
•
balance of supply and de¬
factors.
"
Stock
Prices
One of the most
astounding as¬
pects of current
discussions about
(Continued
on
page
39)
Convention Number
THE COMMERCIAL and FINANCIAL CHRONICLE
Ora M. Ferguson, Merrill Lynch, Pierce, Fenner &
Mrs.
Louisville,
Beam,
Mrs.
John E. Graham, Brainard, Judd & Co., Hartford, Conn.;
Allison M. Berry, Robert Garrett & Sons, Baltimore, Md.;
Boston;
T. Edmund Williams, Hooper, Kimball & Co., Boston;
Jesse A. Sanders, Sanders & Newsom, Dallas; Ernest E.
R. Emmet Bradley, Mackubin, Legg & Co., Baltimore
Mrs. John Maguire,
Joseph Gannon, Boston
Ky.;
Blum, Brush, Slocumb & Co., San Francisco
A Call for Balanced Economic
enough knowledge available in
(Continued from page 38)
the economic situation
and invest¬
policies is the tendency to
ment
level of stock prices.
is heard these days
ignore the
little
Very
about the amount of inflation that
but
intelligent financial and
planning.
Each
indi¬
vidual's problem may have to be
heavily weighted for
factors
than
for
others,
Over
speaking, it seems
advisable to stay away from the
extremes of optimistic
or pessi¬
mistic thinking—at least, for the
business
more
these
broadly
-
the
-
Counter
Securities
time being.
some
economic
has been frozen into our
about the understate¬
structure
or
ment
book
of
consideration of all of these forces
to permit
Thinking
of
a
when
values
con¬
sideration is given to replacement
Nor do
costs.
the
we
hear much about
E. W. SMITH CO.
unusually low re¬
lationship of stock prices to earn¬
ings prospects, nor the attractive
spread between stock yields and
bond yields.
These points have
always been worthy of considera¬
tion in any well-balanced judg¬
presently
ment
investment
of
there is
UNION
TR
LEWIS
PITTSBURGH
19,
TOWER BUILDING, PHILADELPHIA
2
PA.
Teletype PH 25
Telephone PEnnypacker 8-8383
and
values
why the present
should be any exception.
Many
issues are selling in the low end
of
an
historical
price-earnings
no reason
Investment Securities
STATE & MUNICIPAL
ratio pattern, even when the cur¬
rent ratio was figured out on the
basis of recession earnings.
BONDS
Conclusion
After
this brief
factors
review
the
of
Specializing in
that
normally influence
economic activity,
earnings and
stock prices, let us step back again
and look at the broad perspective.
It
is
not
is not
is
unfavorable
all
PENNSYLVANIA AND GENERAL
it
and
Members
all
favorable; neither side
noticeably preponderant.
Among the favorable forces are
the indications that
we
MARKET ISSUES
FAUSET, STEELE & CO.
Pittsburgh Stock Exchange
Established 1844
not
have
Investment
yet exhausted the urgent demand
for automobiles, homes and sev¬
eral other important lines of con¬
W. H. Newbold's Son & Co.
Securities
York Stock Exchange
Philadelphia Stock Exchange
York Curb Exchange (Assoc.)
Members New
New
sumer's durable goods.
have
Nor do we
evidence that the pro¬
any
1812
First
ducing facilities
of the country
over-expanded.
The
whole structure is supported by
have
a
credit
even a
base
that
is
ample
demonstrated
Bank
1517
Bldg.
that
New York Telephone
Philadelphia Telephone
Teletype PG 381
GRant 3883
Philadelphia 2, Pa.
Locust Street
WHitehall 4-5624
PEnnypacker 5-1234
Bell System
for
higher level of activity.
has been
National
Pittsburgh 22, Pa.
been
Teletype—PH 44
It
cor¬
porations have very high earning
power when the volume is rolling.
Stbck prices are around
est
price-earnings ratio
and
are
tern
even
in
the
the low¬
record
on
SAMUEL K. PHILLIPS & CO.
lower part
of an
historical price-earnings ratio pat¬
mated
stock
when calculated
recession
on
The
earnings.
yield-bond
yield
ESTABLISHED
relation¬
A. E. Masten & Company
ship is favorable.
Established 1891
On the unfavorable side
serve
FIRST NATIONAL BANK
ternational political sphere from
which we get recurrent shocks to
confidence. We also have malad¬
justments within our economic
structure in the form of dispro¬
price
and
creases; too high
a
income
ever,
both
at
even
here
such
and
levels for¬
the demands
abroad
are
very
substantial.
It
seems
to this writer there
—
INDUSTRIAL
REAL ESTATE
22, pa.
—
RAILROAD
—
TRANSIT
ISSUES
PENNSYLVANIA
—
WEST VIRGINIA
BANK AND
INSURANCE STOCKS
GENERAL MARKET MUNICIPALS
RAILROADS
—
INDUSTRIALS
—
UTILITIES
BANK STOCKS
All Issues
Philadelphia Real Estate Issues
Members
New
New
■
,r
York
York
Stock
Curb
.
Exchange
Pittsburgh
(Associate)
Chicago
Chicago Board of Trade
Philadelphia Transportation Co.
Stock Exchange
Stock Exchange
can
high
though
pittsburgh
PUBLIC UTILITY
Exchange
BUILDING
is
exports to the income stream
persist
.
Members Philadelphia Stock
in¬
wage
proportion of
going into
food and clothing, leaving a dis¬
proportionately small balance for
the purchase of other things. We
cannot expect that the contribu¬
tion of capital
expenditures and
disposable
.
ob¬
we
the uncertainties of the in¬
portionate
1904
esti¬
is
Private Wire to
Clark, Dodge & Co., New. York
to Branch Offices
and
City
1915 PACKARD
Philadelphia
RIttenhouse 6-1700
BUILDING, PHILADELPHIA 2,
Bell System Teletype
PH 375
PA.
New York
COrtlandt 7-0814
40
THE COMMERCIAL and FINANCIAL CHRONICLE
Tom
O'Rourke, Stroud &
Warren &
Co., Inc., Philadelphia; Tim Murphy,
Chace, Whiteside,
Sears, Inc., Boston; Jim Musson, B. J. Van Ingen &
Co., New York City
UNDERWRITERS
KENTUCKY
DISTRIBUTORS
-
MUNICIPALS
DEALERS
-
LOCAL
•
ISSUES
COMPLETE TRADING FACILITIES
Direct
Carl
Private
Wire
William Skinner, Jr., Walter J. Connolly &
Co., Boston; Albert G.
Woglom, A. G.
Woglom & Co., Boston; John L.
Daley, E. H. Rollins & Sons, Boston
Financing Public Sanitation Projects
(Continued from
of water, and the
page 13)
general welfare
services. Commissions thus formed
independent enterprises.
Naturally it will cooperate with
other
M. Loeb, Rhoades
departments of the local
governments but primarily will
& Co., New York
Established
stand
its
on
larly
own
pertaining
feet, particu¬
financing its
to
sound
It
is
bond
in
position
a
bonds
own
which
is
method
on
a
of
a
to
float
revenue
comparatively
financing
but
its
back
basis,
as
New
York Stock
Bell
Jackson
residents
vices
SECURITIES
ALL
MUNICIPALS
STOCKS and BONDS
LOCAL
Bullington-Schas
BANKERS BOND
sa
Co.
MEMPHIS 3, TENN.
INCORPORATED
FLOOR, KENTUCKY HOME LIFE fcLDG.
&
FIRST NATIONAL BANK
BUILDING
BELL TELETYPE-ME 88
and
guaranteed
by
Commission's
of
the
no
of
at
a
W.
WILLARD
E.
J.
C.
M.
INVESTMENT
Manager
WOOD
BOHNERT
P.
brings
which
P.
M.
HOWARD
FETTER
R.
H.
refuses to pay
Aid
to
me
the
gentlemen
you
subject
prob¬
are
interested in than the
more
of
any anti-pol¬
Recently I ap¬
program.
before
the
Committee
on
of
UNDERWRITERS
—
DISTRIBUTORS
CONWAY
D.
In
liens,
Public Works both of the Senate
and the House of
Representatives
DEPT.
CHARLES C. KING
McNAIR
LEWIS
was
the Com¬
rate
Federal
This
HANNAH, Asst. Mgr.
reve¬
spite
the
comparable
municipal bonds.
these
use of water if
he
his sewage bill.
peared
H.
one,
a
issue
facilities.
lack
sold
technical aspects
DEPT.
on
with the best
The only real
security behind the
bonds is the Commission's
right
by law to deny a delinquent the
lution
GRAHAM,
ser¬
does not have the
right
to levy taxes and no
mortgage was
given to the bondholders on the
ably
INVESTMENT
for
mission
TELEPHONE 5-3501
KENTUCKY
industries
Hampton Roads Sanitation
Commission issued $61/2 million
bonds
THOMAS
com¬
performed.
in such bonds,
purely
nue
basis.
The bond
GENERAL MARKET
ARKANSAS
LOUISVILLE 2
draw¬
a
The
1101
M I SSI SS IPPI
1st
to
on
property, is not the
responsibility of any com¬
munity or the Commission, but its
ACTIVE TRADING MARKETS
TENNESSEE
s
being added
soundness is based on the
Com¬
mission's ability to serve an
area,
charge and collect fees from the
Street, Louisville 2, Ky.
Teletype LS 90
revenue
the
lien
direct
1878
Exchange and Other Leading Exchanges
235 South 5th
"general
A
have
not
no
W. L. LYONS & CO.
Members:
does
of
so-called
bonds.
munity's outstanding bonded in¬
debtedness inasmuch as it
gives
new
is
the
as
obligation"
program.
lecome
to
Thursday, August 28
1947
LOUDEN
gram of anti-pollution for
the en¬
tire United States as
embodied in
the respective bills of these two
DEALERS
JOHNSTON, JR.
the Congress of the United
States. The purpose of
my appear¬
ance was to
endorse in full a pro¬
Houses.
Trading Service
*
J. J. B. HILLIARD & SON
in All Local
Issues
Established 1926
O'NEAL, ALDEN
&
CO.
Members
New
York
419 W. Jefferson St.
Bell System
Chicago Stock Exchanges
Curb Exchange
Hilliard Bldg.
Teletype—LS 284
Long Distance 197
OWENSBORO, KY.,
OFFICE
—
oeriod of 10 years in order to
get
these programs started
locally.
While
endorsing
contribution
429 West Market
Street, Louisville 2, Ky.
Telephone
Jackson
the
the
idea,
program
in
lieu
my
was
of
the
granting of $100 millions, the
gov¬
local
lend
Commissions
its
credit
and
to
compacts
for
approximately one-third of the
cost of the
planning and construc¬
tion. My position was that a for¬
Louisville 2, Ky.
mula
& Western Union Phone
TEMPLE
that
advocate
ernment
0171
(Associate)
MASONIC
to
to
Incorporated
Founded 1872
Members New York &
Most of the bills carried a sim¬
provision calling upon the
government to spend some
$100
million in grants
per year for a
ilar
Kentucky Securities
could
be
worked
out
with
Federal aid not
calling for great
expenditures of Federal moneys,
which
Active Markets in All
Issues
Active Markets In
All Local
Securities, Kentucky Municipals
Bridge Revenue Bonds
in
this
economy-minded
period would never
pass.
But in
so
far as the bill
provided for
Federal aid, I was
specific in ad¬
vocating loans rather
as
and
a
Wood, Walker
and
Wires
&
415 W. JEFFERSON
STREET
Co., New York
Mitchell, Hutchins
Telephone, Telegraph
SMART & WAGNER
to
&
or
than grants
financing the
pro¬
292
the present lan¬
guage provides for aid, in the form
of
WABASH 4191
WESTERN UNION PHONE
as
grants-in-aid,
the bills
of
BELI. TELETYPE
LS
far
so
are
siderable
LOUISVILLE 2, KY.
Co., Chicago
Write Us
of
grams.
In
Private
basis
loans,
good,
merit
financing.
as
or
there is
both,
con¬
for
such a basis
The elimination of
pollution is unique
among major
municipal improvements
require
such
and will
stimulation in
(Continued on page 41)
the
THE COMMERCIAL
Convention Number
Geo. J. Elder, Mercier, McDowell &
Detroit; Miss Gay Wade, their, niece
Mr. & Mrs.
Wakeley, A. C. Allyn & Co.,
Wakeley
Mr. and Mrs. T. M.
Dolphyn,
approved project. The bonds rep¬
(Continued from page 40)
resenting the balance of the costs
of Federal aid. This is due
of the project to be secured by a
to the fact that pollution abate¬
first lien on the revenues of such
ment is affected by two conditions.
project and be sold to private in¬
First, treatment works normally
vestors.
do not benefit the persons who
Such
a
method of financing
contribute the wastes but who are
should be beneficial to the public
expected to bear the costs of
treating it. The downstream users
of water are the ones benefited,
form
upstream users are the
dumping. Second, the bene¬
bodies
and
nomical
to
ment than
an
more
Federal
UNDERWRITERS
eco¬
Govern¬
Corporation Securities
outright grant meth¬
By having the government ac¬
cept second lien revenue bonds
for one-third of the costs of a
od.
Trading Department Active in
*
BERWYN T. MOORE &
COMPANY
INCORPORATED
DISTRIBUTORS
•
MARION E. TAYLOR
DEALERS
are
BUILDING
2, KENTUCKY
Telephone Jackson 7346
Teletype LS 88
Bell
U. S. Government
Private Wire to Chicago
Public Utility
Municipal
public works.
all
Kentucky Securities
project, the financing of the re(Continued on page 42)
LOUISVILLE
intangible
and tax payers are reluctant to
undertake costly treatment works
when the effects are not as tangi¬
ble and evident as those of other
treatment
of
DEALERS
DISTRIBUTORS
UNDERWRITERS
would be
the
Detroit, Mich.; Mrs.
McDonald-Moore & Co., Detroit
and Mr. Don W. Miller,
the
ones
fits
Jack Roney, Wm. C. Roney & Co.,
Chicago,
and Miss Natalie
'
Financing Public Sanitation Projects
and
41
and FINANCIAL CHRONICLE
Industrial
Railroad
Bonds
Revenue
Securities
anticipate, however* that by
large, the cost of the treat¬
ment
works
will
be
financed
I
and
Firm
Direct Private
through the issuance of revenue
bonds. Therefore, with respect to
projects
Wire Nashville to New
York
j.
';
that are to be financed
.
/
•
;•
J't..
;
Firm
Distributors
through revenue bonds, I recom¬
mended
that serious considera¬
revising the pres¬
of the bills so as to
Bids
Underwriters
Offerings
tion be given to
ent language
ceed
two
a
322 UNION
percentum
(2%)
TEL. RECTOR
MEMPHIS
KNOXVILLE
GREENSBORO
per
and to be secured by a
second lien on the revenues to be
ST.
2-6565
United
HARTFORD
DALLAS
annum,
derived from the operation of
TWO WALL
ST.
TEL. 6-717!
rate not to ex¬
Dealers
NEW YORK
NASHVILLE
approved project, make a loan of
not to exceed one-third of
the
estimated cost thereof, the loan to
bear interest at
Quotations
Securities Corporation
provide that the Federal Govern¬
ment may, in connection with each
BIRMINGHAM
States
Government Securities •
Municipals
CHATTANOOGA
JACKSON. MISS,
the
mm
1i teT
OF
MEMPHIS
MEMPHIS 1,
TELEPHONES 5-36)7 • 5-3638 •
BOND
TENNESSEE
LD-3II • LD-312
TELETYPES ME-283 • ME-214
DEPARTMENT
COMMERCE UNION BANK
NASHVILLE 3,
MUNICIPAL BONDS
TENNESSEE
RAILROAD &
CORPORATION BONDS
PREFERRED &
New York
COMMON STOCKS
Tennessee
Correspondent
DEALERS
DISTRIBUTORS
UNDERWRITERS
General Market
NEW ORLEANS
Municipals
Bought—Sold—Quoted
Davis Kales
70 Pine
Street—Phone
Bell System
WHitehall 4-1877
Teletype—NY 1-2643
Nashville
416 Union
Direct Private
Wire
—
Nashville to New
York
TELEPHONE 5-7321
Securities Company
Street, Nashville 3,
LONG DISTANCE 92
Tenn.
TELETYPE NV 83
'W
42
THE COMMERCIAL and
FINANCIAL CHRONICLE
Ed
Hormel, White, Weld & Co.,
Boston; Ed Haverstick,
Smith, Moore & Co., St. Louis;
Maender, G. H. Walker &
Co., St. Louis; R. Emmet
Byrne, DempseyTegeler & Co., St. Louis
Thursday, August
28.
1947
Clarence J.
Financing Public Sanitation Projects
(Continued from
maining cost
be
41)
page
terms than otherwise. *
Savings in
interest will be
effected and in
of the project would
facilitated,
complished
Samuel Varnedoe,
Varnedoe, Chisholm & Co.,
Savannah, Ga.; Larry Wren, Allen &
Co., New York City; Gus Levy,
Goldman, Sachs & Co., New York
City; Ted Plumridge, J. Arthur Warner &
Co., New York City
on
and
more
would
be
ac¬
instances
many
advantageous
public
bodies
the
would
particular
possibly
re-
If, however, due to local laws
Government
purchasing
the
same
project.
as
costs
was
second
such
pality,
ceive higher
bids for their
bonds
by reason of the fact
that the Fed¬
eral
tax
district, to finance the
treatment facilities, and
bonds or public assessment
agreeable to
lien bonds on
or
bonds
In
ment
my
Senate
& CO.
ESTABLISHED 1900
Members New York Stock
Exchange
Members Baltimore Stock
must
loan
New
York
Curb
be
in
issued,
a
a
financing has
popular
very
financing
govern¬
amount not
an
revenue bond
come
of
water
be¬
form
and
acilities.
for
sewage
Most
ex¬
of you investment
bank¬
the ceeding one-third of the estimated
ers look
upon a revenue bond as
owering of interest rates
and. cost of the project might be made.
almost as sound as a
demonstrated where local
general tax
bodies The security for such a loan might bond.
could expect a
In fact,
you classify them
reduction in inter¬ or might not be
subordinated to under the
est costs from
general term of "munic¬
25% to
33y3%, and the security of the bonds issued to ipals."
that through these
The
reason
for
their
savings in the cover the other two-thirds of the
strength is that the record of col"owering of interest rates these
cost, depending upon whether such
ocal bodies
ections for water and
would have
sewage is
suffici¬ subordination would be
possible better than tax
ent funds with
collections.
In
which to retire a under the local
laws.
government loan.
Exchange
Associate Members
enue
of
estimony I cited examples in
BAKER, WATTS
States do not have so-called
"Rev¬
Laws" on their
books, but
laws could be
easily passed
other reasons, revenue bonds
could not be issued
by a munici¬
or
stand,
Exchange
I
under¬
however, that only
a
few
area the
percentage of delin¬
quents for the payment of
water
jills is less than
one-fourth
my
of
Government
1% for the
and Federal Land
Bank Bonds
Listed and Unlisted
Stocks and Bonds
Active Market in Local
Securities
of
INSURANCE STOCKS
borrowing from the government
one-third of the cost of
the pro¬
gram, the Commission entered into
a purchase
contract in which the
Commission agreed to
pay for all
CALVERT & REDWOOD
STREETS
BALTIMORE 3, MD.
of
REAL
Representative,
Clarksburg,
Baltimore—Calvert
the
;he
ESTATE—MUNICIPAL—INDUSTRIAL
Union National Bank
Bldg.
W. Va.
Telephones: New York—CAnal
6-7162
serve.
Hampton Roads Sanitation
Commission was made possible
by
his method of
financing. Instead
Maryland County and
Municipal Bonds
West Virginia
area we
The
Roads
area
from
sewage
000
SECURITIES
facilities built by
in the
Hampton
for the
disposal of
sewage
government
military
are
6200
Teletype BA 395
to be
approximately 300,personnel.
made
over
approximately 25
';he
Payments
period of
a
years,
which is
length of the primary financ¬
through the revenue bonds.
ing
In this agreement
the government
to take a
secondary posiion behind the
primary bonds.
I have been
called into consul¬
tation by several
local areas who
wish
to
get a sewage program
started. Some of
these areas are
agreed
mackubin, legg
Established
& company
1899
Members of New York Stock
Robert Garrett & Sons
ESTABLISHED
New York Curb
Exchange
Exchange (Assoc.)
BALTIMORE
^
v
in
NEW YORK
1840
very
but
in
poor
no
grant
financial
would
case
and
in
all
cases
finance privately with
the government
..
'MEMBERS
.
New
York
Stock
Exchange
New
Baltimore
York
Stock
Curb
a
could
loan
In
(Associate)
Exchange
conclusion,
opens
one
of
in municipal
dealers and brokers
you
people,
revenue
the
financing
greatest fields
financing yet offered
especially for water
and
sewer
systems, and I believe
that you will
agree with me that
the
security is just
as
good as the
general
Underwriters, Distributors
and Dealers
obligation bond carrying
with it the
right of taxation.
ACTIVE TRADING
POSITIONS MAINTAINED
In General Market
Issues
Harry M. Sheely
/Members Baltimore Stock
Exchange
Garrett Building
BALTIMORE
3
MARYLAND
by
the terms out¬
lined above.
"r;-'
Exchange
on
condition,
they need
&
Co,
1'
Keyser Building, Baltimore
2, Maryland
New York—REctor
2-8194
,
Telephones
Philadelphia- -PEnnypactor
Baltimore—SAratoga
Bell System
8064
Teletype—BA
3-2600
A
%
497
^ 5AN\^
THE COMMEUCIAL and FINANCIAL CHRONICLE
Convention Number
Geyer & Co., Inc., New York City; Wm. J.
Geo. Geyer,
Mericka, Wm. J. Mericka & Co., Cleveland; George
Collins, Geyer & Co., Inc., New York City
sions
Security
Prices and Inflation
evitable
(Continued from page 8)
stock
1929,
February,
until
course
index, which,
rapidly falling,
still stood above stock prices.
Germany, on the other hand,
was in no shape to participate
in this speculative boom of
the late '20s, and her stock
price
modity
while it
was
1926,
the very year
thus
stockholders'
diluting
equities.
In cognizance of
these handicaps, French bank
stocks in 1926 had reached an
price level
42% above 1913.
average
Effect of Inflation
of only
as
well
increased
In
bonds
While
proved
its
is
to
as
a
scale
as
costs
to the more sizable
Robert C. Jones &
v
!-
Co.
Members
York
New
Stock Exchange
Washington Stock Exchange
New York Curb Exchange
Metropolitan Bank Building,
Washington 5, D. C.
mead, miller & co.
group
poor invest¬
each inflation ran
be
course on
sistently below the 1913 level.
Differ¬
on
as
cum¬
rail¬
and
Groups of Stocks
ent
ments
utilities
still slow and
This, in the face of Secondly, after a sliding
bersome.
proportion of them in France.
prices fluctuated closely roads, too, suffered severely Though Germany did not
around the 100 level from
during inflation, the difficul¬ long delay the use of a sliding
the time of stabilization on
scale device of automatically
ty in both instances being the
into the '30s.
;
regulatory aspect of keeping adjusting utility rates upward
rates fixed over long periods with other prices, rate reviII.
Public
were
Louis; Mrs. and Mr. J. F.Jacques,
being borne based upon wage rates and
Germany the util¬
by the utilities, placed them coal prices had been devised,
ities were mostly owned by
was
in a decidedly disadvantage¬ it
regularly
applied
municipalities and, under the
ous
position. Conditions in (quarterly till 1928, and semi¬
circumstances, leave little
France were very similar to annually thereafter), so that
room for analysis alongside of
those in Germany, except for rate revisions from then on
stock issues of private con¬
two facts.
First, the use of were not so much delayed as
cerns. Nevertheless, the iden¬
the sliding scale method was to adversely affect the busitical problem of tardy rate
delayed until 1922, utility ness. As a result, the indus¬
revisions brought increasing
stock prices during all that try began to flourish and exhardship to the remaining
time
(Continued on page 44)
having hovered con¬
private utilities in Germany
of time.
in which stabil¬
prices as a whole established ization took place. Meanwhile
their peak at 548% of pre¬ costs were being swept along
war prices, but this was not with the tide of inflation, and
as high as the wholesale com¬
had to be met out of capital,
In
St.
& Co.,
First Southwest Co.,
Maender, G. H. Walker
Mr. and Mrs. Clarence J.
Leo J, Doyle, Doyle, O'Connor & Co., Chicago; Mrs. and
Mr. Joseph G. Petersen, Eckhardt, Petersen & Co.,
St. Louis
Members New York Stock Exchange
New York Curb
Firm Markets in
(Associate)
Exchange
Baltimore Stock Exchange
the Continent, it
impossible to similarly dis¬
miss stocks in
one
The latter left in their wake
diversified behavior
patterns, profoundly affected
as they were by the dominant
..
Baltimore and New York
'•
-•/V'V
,'VV'vT'
'
V
-
v
•
-
•
V77'*
•'
' J-
V
"
New
Bank Bldg., Baltimore 2,
First National
service or¬
Md.
Francis I.
Telephones
Baltimore—Lexington
ganizations.
Local Bank Stocks
Stock Exchanges
-
•
•
•••
.
Active Markets in Local Issues
characteristics of the individ¬
or
Washington Securities
Commission orders executed on the
widely
ual industries
All
*
.
fell swoop.
New
0210
Teletype
Bell
—
BA
\
t
:
•:
'
Correspondent
du Pont & Co., New
No. 1 Wall
York—REctor 2-3300
270
York
...
York
Street
;
Banking establishments,
with money as
trade and their
nated
by the national treas¬
were extremely hard
uries,
hit
their stock in
policies domi¬
by inflation everywhere.
Afraid of money, people
drew their deposits to
pur¬
tangibles.
Time de¬
posits declined almost to nil,
German savings
banks losing
99.9% of their de¬
posits. Demand deposits*. de¬
spite the increased amount of
money and its greater veloc¬
ity of circulation, failed to
grow in like measure. While
government
needs
carried
long-term interest rates up¬
much
1947
;
in
Commission orders solicited on
really gain¬
ing momentum until the vari¬
inflations
tions.
had
reached
magnified
propor¬
In France these rates
did not
OFFICES
the Baltimore Stock
v
bonds & stocks
Exchange
as
Firm Markets on
SteinBros.&Boyce
proceed
on
6
S. CALVERT ST.,
SECURITIES
BALTIMORE 2, MD.
Telephone PLaza 8400
Teletype BA 393
STARKS BLDG. ARCADE,
^
SCOTT, HORNER &
LOUISVILLE 2, KY.
Teletype IS 281
Washington, D. C
Cumberland, Md.
Hagerstown, Md.
MEMBERS OF NEW
YORK STOCK
and other leading
/
LYNCHBURG, VIRGINIA
NEW YORK
PHILADELPHIA
EXCHANGE
exchanges.
MASON, INC.
INVESTMENTS
Telephones LD 180
their in-
LOCAL UNLISTED
Established 1853
ward, short-term rates were
greatly
Virginia—North Carolina
our
BALTIMORE and LOUISVILLE
slow to rise, not
ous
Trading Departments
We maintain active
with¬
chase
as
1853
RICHMOND.
VA.
NORFOLK. VA.
BLUEFIELD, W. VA.
ROANOKE. VA.
*
THE
COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August
28, 1947
F. Brittain
Kennedy, F.
Brittain
Kennedy & Co., Boston; Robert
Cutler, President of
Co.; Boston; Ludwell A.
Strader, Scott, Horner &
Mason, Lynch¬
burg, Va.
Old Colony Trust
(Continued from
&
.
SOYA
clearcut
a
MYERS
UNION
OIL
INC.
GAS
GAS
and Inflation
level.
From 1922 to 1923 the
average price of gas
utility
stocks recovered
143%, and this
start of
in
inflation
CO.
was
a
only a
long trend
utility stock prices.
to
similar
railroads left
CO.
an
causes,
even
record.
In
worse
France,
for
instance, agreements had
been drawn
up before the War
CORP.
between the railroads and
the
government, whereby the lat¬
So. La Salle
St., Chicago 3, 111.
Telephone Dearborn
to
meager
being recorded in
almost over
upward
utility stocks by way of an im¬
night from 72% to 109%, and
mediate
jump above the 1913 electric
Due
utility stocks from 96
CO.
WESTERN
DELHI
120
43)
milestone
'CENTRAL
SOUTHERN
Bunn, Stifel, Nicolaus &
Co., St. Louis; Henry
Oetjen, McGinnis, Bampton
Sellger, New York City; Herbert
Pettey, Equitable Securities
Corp., Nashville,
Tenn.; Irving
Greene, Greene & Co., New York
City
page
pansion set in, with
Growth Situations
ARKANSAS
&
Security Prices
Allen, Swift !& Co., Inc.
ROBBINS
John W.
6623
ter guaranteed
on
435
outstanding rail securi¬
ties.
Meanwhile, rates were
kept down, and deficits were
offireefi
paid
UNDERWRITERS
out
of
the
Treasury. Until
DISTRIBUTORS
Telephone
FRA
increases
Members
New York Stock
DEALERS
Exchange
fixed return
a
the
CG
other
no
than
rate
those
necessary to meet minimum
interest and dividend
Chicago Stock Exchange
4151
Teletype
National
1927
546
ments were
require¬
authorized, with
the result that until
that time
rail stocks sold
the
Brailsford & Co.
at
1926.
up
Members Chicago Stock
Exchange
208 So. La Salle
St.
.
Chicago
Teletype CG
rates
95
H
Tel. State
.
1913
I
C
K
&
This
INC.
•
reflected
prices
prices.
in
the
at
which
the
height of
the speculative pe¬
reached an
1234-5 TELETYPE
riod,
only 133% of the
TRADING
SPECIALISTS
IN
GENERAL MARKET
SECURITIES
Investment
Securities
up with other
was
stock
BUILDING,CHICAGO
RANDOLPH 8800
Thereafter; freight
began to rise, but never
caught
E Y
COMPANY,
FIELD
an
steadily below
price level, ending
average of 72% in
average of
1913 prices.
While
banks, public utili¬
ties, and railroads were seri¬
ously influenced by govern¬
ment
policies, general indus¬
enterprises of a less
"public" nature were more
trial
Public
free to shift for
themselves in
effort to overcome the in¬
Utility
an
Public Utility
Railroad
Industrial
Industrial
Investment
(securities,
Railroad
\\
since
flationary
Municipal
/
Unhampered by restrictive
legislation, mines were in a
Though
some
somewhat
ages
Bonds
Stocks
H. M.
A.C.ALLYN«n>COMPANY
135 So. La Salle
*
'
'
'
1
'
•
Chicago
New
Indianapolis
Byllesby and Company
Incorporated
Incorporated
York
Boston
Minneapolis
Waterloo
•
Philadelphia
Kansas City
Peoria
Omaha
Flint
St., Chicago 3, 111.
Telephone
Philadelphia
Pittsburgh
'
did
dam¬
exceptionally well.
jrecord,
but
stocks,
so
did
German
including
those of
potash mines.
well,
could
mining
tunity
stocks
Aus¬
did
so
in
fact, that not only
investment values be
maintained,
\
war
in northern
mining
trian
Minneapolis
to
as
Not only did French
coal and
iron mine stocks
leave a good
CG 273
New York
suffered,
France
Teletype
State 8711
lagged behind
due
near the
Belgian bor¬
der, - nevertheless, stocks of
good, active mining
compa¬
nies
Milwaukee
best
as
good position to
forge ahead.
Municipal
?
hazards
they could.
jVLLESBV
but
presented
the
oppor¬
itself for
a
Ed Jones, Edward D. Jones & Co., St.
Schirmer, Atherton & Co., Boston;
Ralph F. Carr & Co., Inc., Boston; John
Gardner, Schirmer, Atherton & Co., Boston
Bernard,
Barney
formed in 1926.
profit of better than 100%.
Credit for this remarkable
showing, however, is not
cated
mining business itself pre¬
characteristics
operating entirely in its favor
during an inflationary period.
Most important of these is the
lack
of
plant investment,
mining company's cap¬
a
Competition
nearly
France
fair
so
dam¬
was
the
In
available.
did
heavy goods industries
poorly. Ship¬
in particular, fared
French shipyards of¬
quite
allo¬ yards,
of
share
other
re¬
badly.
fered
steel, only the steel industry, but
the
as
worst
also the
mobile
to
Industrial
there¬
stumbling
no
prove
block
It
during an inflation.
this
is
point,
very
so
business.
metallurgical
vu tri iu
the
that is the weakest link in
*
Securities
Real Estate • Utility *
209 South La Salle
Street
•
■
.
firms
industry
latter
the
in
LINCOLN 8, NEB.
Tiusi
highly dependent upon
were
Tel
periodic financing to increase
their
2-3349
DIRECT
.....
Chicago 4, Illinois
Building
OMAHA2. NEB.
204Somhi7thst.
Tel. Webster
PRIVATE
WIRES
EAST
TO
AND
WEST
COASTS
Yet increases in pro¬
to time.
nearly com¬
capital addi¬
tions, while the ever rising in¬
not
were
mensurate with
terest
rates
new
on
debt became
more
PARTNERS
funded
and more
burdensome.
Capital was
raised, too, by means of new
stock issues, but companies
found it difficult to pay suffi¬
cient
in
dividends
with the times, so
by
three
1929,
were
W. B.
Public
Raymond F. Revell
Healy
Trading Dept.
Relations
THE WISCONSIN COMPANY
Member
of Chicago Stock Exchange
MILWAUKEE
keeping
years
after
TELEPHONE
DALY
0 5 2 5
TELETYPE
M I LW.
291
stock
still far from
gold parity with 1913.
consequence,
Donald B. Sherwood
Edward P. Renier
that even
stabilization in France,
dividends
Daniel F. Comstock
Erling J. Hansen
As a
☆
stabilization saw
French iron and steel works
stocks
selling at an average
price of only 95%
for the
year
Much
new
of
this
of
capital
the
quent
demand
came as a
for
need
for
rebuilding
plants. However, the
heavy iron and steel works of
France were not merely han¬
dicapped by the situation in
the capital market. They suf¬
fered, too, from competition
at the hands of Germany and
Conditions
were
improved for the
French steel
works
when
Investment
CO.
Distributors of
Securities f:
v
INCORPORATED
result
ruined
somewhat
00YLE, O'CONNOR &
with the subse¬
war,
Belgium.
Underwriters and
(1913=100)
1926.
a
135 SOUTH LA
SALLE STREET
CHICAGO 3,
4555
TEL. DEARBORN 0500
capitalization from time
duction
Railroad
Securities
£„ks and Other Principal &ckanV>
anyt
yj,
Chicago, Illinois
The
Distributors
-
CflUTTHIDCII £ CO.
■STOCK' & O
companies,
strong in mining
Dealers
Municipal * Institutional
Capital expenditures,
fore,
-
Trading Markets in Unlisted
ground.
still harbored in the
early devel¬
up-and-coming auto¬ opmental stage, the industry
(Continued on page 46)
industry in France.
Underwriters
mostly in minerals
ital sunk
While still in the
Sherwood,
possible in¬
this development, vestment during the inflation
the
industry's stock prices in that country, with the av¬
rose,
but capital considera¬ erage stock price in 1926
tions kept the securities from being only 34% of the 1913
reaching a really good invest¬ level.
The need for new financing
ment status throughout the
inflation.
proved a dreadful blow to not
sponse
sents inherent
with
as
a
business
interference. On the contrary,
the
then not
sole¬ aging,
government non¬
due to
ly
was
In line with iron and
was
Trevifte, Harriman Ripley & Co., Phil-
delphia; Mrs. Leo Newman, Boston; Don
Comstock & Co., Chicago
'
cartel
steel
of value, or for a European
Mr. and Mrs. Roy
Louis; Speed
Hughes, J. Arthur Warner & Co., Boston, Mass.
Ralph Carr,
doubling
and FINANCIAL CHRONICLE
THE COMMERCIAL
Convention Number
ILLINOIS
v
Branch
Specialists in Securities of
Wisconsin Corporations
Offices:
MADISON
OSHKOSH
WAUSAU
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, August
28,
Joseph M. Kelly, J. Arthur Warner &
Co., New York City; J. Wilmer
Watts & Co.,
Butler, Baker,
Baltimore; Barney Nieman, Carl
Marks & Co., New York
City
A. A. Harmet
not
Company
&
inc.
Alfred
Crampton, Weeden & Co.,
Boston; Lawrence S. Pulliam, Weeden
&
Angeles; Frank Weeden, Weeden &
Co., Los
Co., San Francisco; Stephen C.
Turner Turner.
Poindexter & Co., Los
Angeles
Security Prices
(Continued from
reacted most
unfavorably
automotive stocks.
South
La
chicago
Salle
4,
illinois
TELETYPE
CG
inflation
Street
>
'
TELEPHONE
301
f
CENTRAL 9744
alfred
a.
harmet
rfeal estate
john
issues
industrial
j.
8c
colnitis
public
utilities
in 1913.
and Inflation
156% of that paid against
capital depreciation,
they still suffered from low
.
In France the
chemical in¬
dustry, too,
was
at
yields due to the need
the
time, and therefore had
on
With the
having taken
than
more
was
sorely in need of new
capital, and this, being avail¬
able only at a
high price,
Investment Securities
208
45)
page
the
new
German
chemical
same
heavy capital require¬
companies,
ments.
its full
Nevertheless,
it
of bor¬
rowing at high interest
was a
were
on
more
rates.
and
dye
hand,
the other
mature and
course, the stock of a
thus
single promising industry, and
peo¬ less hampered
large automotive
by capital re¬
company ple were willing to
pay more quirements.
Some had al¬
sold, on the last day of
1926, for
chemical
stocks
than
at
ready built up a good for¬
only 96% of the 1913 price,
earnings
would
warrant. eign market for
while the dividend on
themselves,
this
stock
had
advanced
to
no
Though
France
chemical
were a
stocks,
in
and this
paid off particularly
during the wild infla¬
tionary excesses taking place
fair protection
well
in
Germany.
made
were
WE
being
stable
more
sales
foreign
the. latter
rency,
MAINTAIN
Export
in
cur¬
generally
than
the
ACTIVE TRADING
MARKETS IN
domestic paper
money. As a
result, some chemical stocks
UNLISTED SECURITIES
gold investment value by the
than
more
135 SOUTH LA
SALLE STREET
CHICAGO 3
of the
inflation, and their
yields, too, proved satisfac¬
tory. Meanwhile, those chem¬
Inquiries Invited
ical
fared
than
Established 1916
Members Principal Stock
Chicago Board
BROKERS and DEALERS
of
CHICAGO
3
chemical
one
Rockford
Trading Dept. Teletype CG
tile
405
& CO.
St.
CALIFORNIA
terest
H0LLEY, DAYTON
Paul, Minn.
MEMBER
CHICAGO
BROKERS
&
HOPWOOD
STOCK
-
G. H. WALKER &
CO.
Minn..'
GERN0N
St.
DEALERS
-
The domestic
ALL
Milwaukee
measure
proved
to
ideal
purpose, inasmuch
WISCONSIN ISSUES
a
•
CHICAGO
Teletype
CG 146
and
BRANCH OFFICES
EAU
CLAIRE
-
FOND DU
LAC
MINNEAPOLIS,
-
MINN.
LA CROSSE
Phone—Central
0780
they
are
for
this
they
are
com¬
storage,
necessities
of
life, thus giving value to the
-
MADISON
-
owner
WAUSAU
-
ROSWELL, N. M.
MAIN OFFICE AND
TRADING DEPARTMENT
105 SO. LA
SALLE
as
textiles.
for
compact and durable
modity suitable
209 S. LA SALLE
STREET
and
mar¬
smaller
great
These
of Chicago Stocl £xchanj*
excellent
domestic
means,
looking for
tangibles to hoard, turned in
DISTRIBUTORS
Louis, Mo.
William A. Fuller & Co.
high in¬
industry
was
especially enhanced
during the inflationary years,
due to the fact that
people of
WISCONSIN CO.
to
an
both
foreign.
EXCHANGE
at
The
served
market,
Milwaukee, Wis.
other.
already well-
ket
Kansas City, Mo.
Tel. Dearborn
5600
the
on
was
rates.
further
A
H. O. PEET &
CO.
Angeles, Cal.
Open End Telephone
industry
capital additions
to
KALMAN & CO.
Wis.
THE
industries on the
hand and the French tex¬
The latter
PACIFIC COMPANY OF
Minneapolis,
export
established, mature, and no
longer in need of continuous
Private Wires
PIPER, JAFFRAY
worse
an
could be found than between
the French automobile and
Own
Los
with
complete contrast
Trade
'Indianapolis
Specializing in
CORRESPONDENT RELATIONSHIPS
considerably
those
market to draw
upon.
No more
Exchanges
10 South La Salle
Street
.
companies
depending
on the home market
solely
Paai I-LDavls & Go.
Sheboygan,
their
end
Your
HERONYMUS
maintained
well
ter
STREET, CHICAGO 3, ILL.
Teletype—CG
for
his
own
use,
as
as
offering value in bar¬
exchange common during
inflation. With these factors
262
in
i
their favor, textile stocks
by 1926 had risen to an aver-
THE COMMERCIAL and FINANCIAL CHRONICLE
onvention Number
Ergood, Stroud & Co., Inc., Philadelphia; Henry J.
Russ
Gibbs, Laird, Bissell
New York City
and Mrs. Louis
Mr.
Richter Co., St. Louis; Charley Hahn,
Scherck, Richter Co., St. Louis
Richter, Scherck,
age
and
986%
for 1929
best showing on
as an average
—the
very
vorable
record in the French inflation
for
in
of 442 % of prewar prices, again afforded opportunity
continued to climb to for more investments at fa¬
paper
cur¬
increased
had
more
than six and one-half times.
attractive
dividends in the future.
the
Thus This
increase
in
value
holders
stock¬ considerably more than the
found not only their increase in the cost of living
safeguarded against in Italy, so that holders of fire
protection
the
new
TRADING
MARKETS
OVER-THE-COUNTER
was
Profiting also from the at¬
tractive market for tangibles capital
depreciation, but their income insurance stocks even im¬
were the fire insurance com¬
was
also
well
protected proved their position in spite
panies. While home owners
against loss of purchasing of the inflation. Fire insur¬
began to save this expense as
ance companies in other coun¬
the cost of living rose, com¬ power. In Italy, for example,
fared
the Adriatic Company did not tries
similarly well,
mercial enterprises went in
miss
a
single dividend though in Germany these
for more and more
stocks
To meet throughout the inflation, and
payments multiplied 10 times
against fire losses.
Cincinnati; Edward
W.
Mack, Westheimer & Co.,
Creamer, Schirmer, Atherton & Co., Boston; Carroll
Williams, Laird, Bissell & Meeds, New York City
by 1929, while the book
the value
rates,
more
of
M. Alfred
Meeds,
IN LEADING
SECURITIES
fire insurance company
industry as a group.
an
interest
basis for still
terms
rency
&
were
at first
E. H. Rollins & Sons
Incorporated
135 SOUTH LA
CG
;
'
SALLE ST., CHICAGO 3, ILL.
Central 7540
530
■
Direct Wires To Our
Offices In Principal
Financial Centers
slow to
(Continued on page 48)
demand for goods, in¬
dustry expanded, and insur¬
policies were written to
new
plants. Further¬
more, fire insurance contracts
ance
cover
for short terms,
run
these
were
and,
Brokers and Dealers in
as
SILLS, MINTON & COMPANY
rewritten, proper¬
INCORPORATED
values
ty
raised
as
continually
replacement values
increased while currency
preciated.
that
the
on
This
meant,
are
de¬
*
Over the Counter Securities
STREET, CHICAGO 4
209 SO. LA SALLE
Members Chicago
Stock Exchange
Since 1924
too,
increased,
premiums
since these
\
were
based entirely
values
replacement
stated in the contracts. Mean¬
PRIMARY MARKETS
IN MIDWEST
while, fire losses did not in¬
SECURITIES
COMPLETE TRADING
fit Thact
Rogers
FACILITIES
J NO.
correspondingly, as
the public was seized during
inflation by a desire to guard
the highly valued tangibles.
crease
>
Fire
insurance
companies
benefited, too, from the basic
Telephone State 4151
Direct
Telephone
Teletype
Dearborn 1421
CG 864
wires
to
our
Direct
Wire to J. G.
White & Co. New York
Correspondents
BAKER, SIMONDS & CO.
DETROIT
EASTMAN, DILLON & CO.
NEW
C
YORK
BOURBEAU
itself.
nature of the business
Salle Street, Chicago 3, Illinois
120 So. La
&
DOUGLASS
LOS ANGELES
V
The business consists of writ¬
ing contracts that guarantee
future payments contingent
on losses
being realized. In
order to back up these guar¬
antees, it is necessary for a
fire insurance
company
to
Underwriters, Brokers
and Distributors
J. J. O'Connor &
maintain capi¬
surplus in a safe pro¬
tal and
portion to
the value of pre¬
miums written.
This
Co.
Incorporated
build up and
135 South La
of Listed and
Unlisted
Salle Street
CHICAGO 3
capital
and
surplus is invested in se¬
curities, and the income from
these
is
generally
entirely
Investment Securities
Underwriters and Distributors
available to stockholders.
With
dividends
being
Corporate and
paid
from the earnings on
invested
capital and surplus, the rise
Straus & Blosser
in
long-term interest rates
during inflation made possi¬
ble increased yields on fire
insurance stocks.
Then, too,
MEMBERS
NEW
paying them all out to stock¬
holders,
the
new
surplus
YORK
CHICAGO
NEW
YORK
STOCK EXCHANGE
EXCHANGE
STOCK
CURB EXCHANGE
135 SOUTH
LA SALLE
DETROIT
KANSAS CITY
STREET
TELEPHONE
ANDOVER 5700
TELETYPE
—
Trading Facilities
(ASSOCIATE)
CHICAGO 3, ILLINOIS
when conservative
policy dic¬
tated adding some of these
earnings to surplus instead of
Municipal
Securities
CG 650-651
MILWAUKEE
GRAND RAPIDS
Telephone
Franklin 8200
Teletype CG 635
*
/
48
THE COMMERCIAL and FINANCIAL
CHRONICLE
Thursday, August
28, 194,
■iXifh
ftowj
Mr.
and
Mrs.
Paul
Yarrow,
Clement, Curtis
McManus '& Co., New
&
Co., Chicago; Mike
Heaney, Jos.
York
Mr. and Mrs.
City
A.
W.
Marsland, Wood, Gundy & Co., New York
City; Mr.
Hall., Jr., Clair S. Hall &
Co., Cincinnati
and Mrs,
Clair S.
SINCERE
AND
Security Prices
COMPANY
MEMBERS OF
Principal Stock
they had caught
proved
and
page
47)
rise in price. At the
height of
the inflation in
1923, how¬
ever,
New York Stock
Exchange
and all
(Continued from
Teletype
CG 252-656 & 657
insurance
particularly well, in
;he
they wanted also
against
com¬
new
view of
automobile business.
try.
the
accidents
this
indus¬
In addition, casualty in¬
companies share with
contracts
It
may rise
that
so
correspond¬
as costs increase.
the
was
tracts
long-term
written
ance
companies that spelled
ruin,
together with
strict regulations as to
pre¬
scribed investments.
Being
funds
to
in
invest
ly inflated
& CO.
high¬
hedging
pos¬
sibilities existent within the
rules
came
out
best, though
life insurance
companies as a
whole were not a desirable
OVER-THE-COUNTER MARKETS
Swift9 Henke &
of
costs of
operation.
Those companies which made
investment trust shares
and
se¬
pre-j curities, life insurance com¬
panies found their income
the most of the
STOCKS
their
only gilt-edged
dwindling in the face
SMITH, BURRIS
con¬
by life insur¬
their
companies the; required
advantages of writing short
term
ingly
the protec¬
surance
fire insurance
miums
autos,
that follow in the wake
of the
during
they did
Telephone
new
invest-
panies, too, did nicely
inflation. In France
State 2400
the
establishment of
Casualty
CHICAGO
bought
tion
ment.
Commodity Exchanges
ple
up and
excellent
an
and Inflation
As wages increased and
peo¬
inflationary investment.
BONDS
III.
120
SO.
LA
Securities
SALLE ST.
,
CHICAGO 3
chicago
Teletype
CG
Telephone
ANDOVER
1200
Proved
the
Best Inflation Hedges
As
878
That
currencies
depreciated,
it became
necessary not mere¬
ly to invest for the purpose of
maintaining
income tor
creasing capital.
immediate
INVESTMENT
concern
Stocks
proved
a
135 SOUTH LA
and
Company
SALLE STREET
CHICAGO
Bonds
-
-
average
prices in¬
one-fifth as
in
Germany as whole¬
prices, while similar dis¬
sale
other
were
apparent
countries
having
in
in¬
flated currencies after World
War I.
INTERNALS
Stocks
-
much
an
stock
only
parities
3
FOREIGN SECURITIES
EXTERNALS
creasing
on
highly, incomplete
hedge, with
In—
to
simply maint a i n i n
g existing values
through wise hedging opera¬
tions.
Over'The-Counter Markets
came
be the matter of
SECURITIES
Welsh, Davis
in¬
Instead, the
However,
even on
this
average stocks proved a par¬
Scrip
tial
the
the
DOMESTIC SECURITIES
Public Utilities
-
Industrials
-
Real Estate
WEBBER - SIMPSON & CO.
hedge as compared with
complete loss of value of
German
ertheless,
Nev¬
industries
offered better
hedging possi¬
bilities than
others, and even
within
Investment Securities
currency.
certain
a
dividual
single industry in¬
companies presented
opportunities of different de¬
grees of
INCORPORATED
208 SO. LA SALLE
ST.
Telephone Randolph 4696
20I1 South La
Salle Street
CHICAGO 4, ILL.
Bell
Telephone
able
CHICAGO 4
security..
arriving at the
industries,
butes
CG 451
Telephone Andover 1811
In
Teletype CG 1268
.must
be
perhaps one of
being freedom
tion.
As the
most suit¬
various attri¬
considered,
the
foremost
from
regula¬
purpose of regu-
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
Kirkpatrick, Nashville Securities Co., Nash-
Edward L.
King Waldron, Grimm & Co., New York City; F. H.
Davis, First National Bank of Mem-
Welch, R. S. Dickson & Co., New York City; Wm. E. B.
Lyon, R. S. Dickson
Co., Charlotte, N. C.
ville, Tenn.; Joe H.
Purcell,
Hoyt
Tenn.;
phis,
Kansas
Martin-Holloway-Purcell,
City, Mo.
■' -V ''v
'
Edward L. Morse, Boston Safe Deposit & Trust Co.;
Arthur E. Engdahl, Goldrnan, Sachs & Co., Boston; Geo.
M. McCleary, Florida Securities Company, St. Petersburg, Fla.
Those industries best able to
plies also to service compan¬
generally to keep avoid companies whose earn¬ Large investments in plant,
close up and pick WP again
tools, equipment, and inven¬ ies, which fare infinitely bet¬
costs to the public down de¬ ings lag appreciably behind
later offer far better hedging
tories are advantageous; but ter if they operate on shortcost
increases.
Wages are
spite increased costs to the in¬
than those
term contracts, renewable as opportunities
companies with small manu¬
dustry, the earnings of regu¬ among the most rapidly ris¬
suffer
tremendous
inflation progresses on terms which
ing cost items during infla¬ facturing investments and de¬
lated industries are seriously
losses by operating.
tion, and it therefore becomes pendent for income rather more in keeping with actual
affected so that stock prices
Finally, hedging possibili¬
advantageous to
invest in upon intangibles such as good conditions.
are retarded and the owners'
When the going gets too ties depend largely upon the
companies having a low wage will and large advertising and
equity is diluted..
cost. Mounting taxes, too, dig
selling campaigns have little difficult, it may very well be¬ type of goods produced or the
Highly important, too, is a big hole into cash reserves to fall back on
during infla¬ come necessary for a busi¬ type of service performed.
the age of the industry itself. and reduce
liquidity, so that a tion, and their securities con¬ ness to suspend operations Companies producing necesA developing industry is con¬ low tax
until conditions
liability is another stitute poor hedges.T
improve.
(Continued on page 50) ~
stantly in need of new capi¬ advantage
contributing
Industries needing only a
tal which must be obtained toward making a stock a suc¬
short period for both produc¬
during an inflation despite cessful inflation hedge.
Wiwebtment SPecu'ulieb
tion
and
distribution
are
the high cost, thus not only
Not only is the liquid as¬ naturally at an advantage as
thrusting a great burden on
set
position important, but costs cannot rise appreciably
the earning capacity of the
general physical assets are all before the product is market¬
equity shares, but also going
Companies pos¬ ed. If the production and dis¬
to the extent of diluting that significant.
north
sessing
large
mineral re¬ tribution interval is too long,
equity. To combat inflation,
dakota
Montana
sources
are
in an especially costs rise and when the prod¬
accumulated reserves are a
is
lation
y
good position, as costs of raw uct is finally sold, it does not
requisite,
and
to
materials have already been realize an amount sufficient
highly liquid posi¬
incurred at far lower prices,
to replace the inventory de¬
tion, it is necessary for an in¬
while other types of com¬
dustry to be mature and not
pleted in producing it, insofar
in need
of frittering away panies must purchase their
as
prices are based on actual
raw
materials currently at
needed reserves on develop¬
costs. A similar principle aphigher and
higher ; prices.
ment and expansion.
prime
achieve
As
south
a
dakota
Specialists in Corporate and
operating costs rise, re¬
serves
drawn
be
then
can
During in¬
if need be.
upon
MONTANA
MINNESOTA
dwindle to the
flation these
Municipal Securities of
the Central Northwest
NORTH DAKOTA
SOUTH DAKOTA
telephone
it often becomes
necessary to go into debt to
meet. operating costs. There¬
fore, a low debt at the outset
Duluth
MINNEAPOLIS
St. Paul
vanishing point, even in a ma¬
ture industry and a strong
Company
J. M. Dain &
atlantic
8141
teletype
company, so
is
a
BONDS AND STOCKS
prerequisite for a good
hedge, otherwise an
Allison -Williams
inflation
increasing debt structure may
become topheavy and inter¬
est
requirements
undue
an
burden.
Company
MINNEAPOLIS 2
K.
B.
O.
SORUM
M.
BERGMAN
;,v
;
Piper, Jaffray & Hopwood
Nevertheless, exceptions do
exist to the
sis
that
general hypothe¬
debt
is
undesirable
Debt
during
inflation.
curred
for
the
specifically
purpose
ing
UNDERWRITERS &
in¬
of acquiring operat¬
equipment
and
conse¬
Kalman & Company, Inc.
quently to be paid off out of
operating
from this
income
same
actually desirable,
be
stemming
Investment Securities
equipment, is
as
it can
repaid currently with the
Endicott Building
depreciated money.
As
reserves
are
easily dis-
"motod through rising oper¬
ating costs, it is desirable to
McKnight Building
SAINT PAUL 1
MINNEAPOLIS
1
DISTRIBUTORS
mp-7 3
50
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, August
28, 194,
Oliver Goshia, Goshia &
Co.,
San
Toledo, Ohio; Collins Macrea, Jr.,
Wulff, Hansen
Francisco; Mrs. Oliver Goshia
Security Prices
(Continued from page 49)
sities and storable
goods are
&
Mr. and Mrs.
James A.
Co.,
tect these hoards also
favors
and Inflation
perform
essential
services. and
Production
of
non-durable
generally well off during an necessities
continues
inflation, as are those which
production
of
necessities increases
as
companies
durable
as
hoard¬
these
goods require
replenishment,
ing sets in. The desire
Morrison, Ballou, Adams &
Co., Boston; Mr.
Lerner, Lerner & Co., Boston
such
offering
quirements for
a
services
panies within
losses.
to pro-
While
these
are
the
dustry in
re-
der for
UNDERWRITERS
—
DEALERS
—
Underwriters
starts
Types Unlisted Stocks
and
with
and
its
this fact.
flect
from
It
417
CIRCLE
McDonald-Moore
Telephone Lincoln 5535
& Co.
DETROIT 26,
MICHIGAN
the
MUNICIPAL BONDS
CORPORATION BONDS
Listed and
An Address
MGR.
WILLIAM MOORE
HAROLD R.
JOSEPH
FINANCIAL
TRADING
DON
CHAPEL
W.
BRANCH
a.
GATZ
DEPT.
MILLER
OFFICES
RAPIDS, MICHIGAN
FLINT, MICHIGAN
Mcdonald, jr.
Blyth & Co., Inc.
& Co., Inc.
Ferriss, Wagner & Miller
First of
Michigan Corporation
and Bank Slocks
Dolphyn
DETROIT
constitute
during nor¬
virtually
become
unwise
as
expansion
capacity will
burden during the in¬
and
particularly af-
productive
can no
longer find
If a flight
from cash is to take
place, it
should be in the form of
plant
and
equipment improvement
a
ready market.
and'modernization,
First
form of
of
Company
Michigan Corporation
Member Detroit Stock
BUHL BUILDING
not
t e r w a r d
when industries
whose products were former¬
Merrill Lynch,
Pierce, Fenner
& Beane
&
on
the worst.
Management must,
above all else, stand
ready to
prove a
Manley & Co.
White, Noble
times
ly hoarded
Michigan Bonds
L. T. Hood & Co.
Wm. C. Roney & Co.
go
desirable attribute
best investments
mal
flation
CORPORATE SECURITIES
Higbie Corporator
&
soon
Conservatism,
good management during
inflation.
On the con¬
an
of
H. Hentz & Co.
M. A.
most
gibles,
MUNICIPAL BONDS
Mercier, McDowell
rocks.
man¬
soundest
change its policies ac¬
cordingly. It must not follow
the
widespread rush into tan¬
BUHL BUILDING
Active Markets
Maintained in
M.
good
the
and
Alison &
CompanyBaker, Simonds & Co.
Carlton
a
even
accept inflation for what it is,
TENANTS
Campbell, McCarty
costs
trary, conservatism may spell
ruin in such times
when the
GRAND
harry
IN THE
F.
of
& STOCKS
Unlisted
of Distinction
without
however, does
Teletype IP 489
re¬
operation to
company would
the
'
.
in
stocks
should, in
non-operating
agement,
MEMBERS DETROIT STOCK
EXCHANGE
TOWER
INDIANAPOLIS 4, INDIANA
strikes
diluting capital.
Yet
1924
two
lished firm does not face this
addition, be
INCORPORATED
new
seeking to gain a
during an inflation
difficulty,
INDIANAPOLIS 6, IND.
and Bonds
Corporation
at
or¬
particular stock is¬
out
prevent
City Securities
In
against it because of
high
capital costs.
A well-estab¬
Share Corporation
129 EAST MARKET ST.
arrive
hedges.
valuable asset besides. A
DISTRIBUTORS
MUNICIPAL BONDS
All
a
to
to
company
foothold
Indianapolis Bond
Detroit 26,
Michigan
1500 Buhl
Bid*.
Grand
Exchange
Chicago 3, Illinois
135 S. La Salle
St.
as
qualify, the company
must be
strong and well-estab¬
lished and
preferably an old
one,
with a
well-developed
export market an
extremely
Investment Dealers and
securities
industry
desirable in¬
a
order
wise inflation
sue
INDIANA
an
whole, it is necessary also
to scrutinize the
various com¬
insurance against fire
as
and Mrs. Louis
tion, but
duction
an
Two Wall St.
Rapids, Michigan
Bay City,
increase in pro¬
should be
facilities
shunned.
New York 5, New York
in the
or
inventory accumula¬
Even so, the most
important
problem
facing
management during inflation
is the matter
of
Michigan
company in
to meet all
In the
a
keeping the
liquid position
emergencies.
light of these
enu-
I
THE COMMERCIAL and FINANCIAL CHRONICLE
[Convention Number
merated characteristics of a
hood inflation hedge, it is in¬
summarize
to
teresting
rgain those securities which
came out best in the postwar
inflations on the Continent. A
erfect hedge, both of capital
achieved by
ud income, was
stocks in Italy,
and even in the " hyperinfla¬
tion " of Germany, stocks of
the old fire insurance com¬
fire insurance
panies proved excellent
hedges.
The newer compa¬
nies, anxious to meet the de¬
mand for low-cost insurance,
t h
lowered
i(
e
and
standards
insurance
suffered ac¬
r
cordingly. Stocks of well-run
casualty insurance companies,
too, were good hedges. Again,
in
Austria,
good
mining
On the Excursion Boat "Allerton"—chartered for the trip
to Pemberton Inn for the Clambake
provided 100% hedg¬
stocks
ing possibilities, and the same
well
type of stocks turned out
elsewhere, so long as
the
how¬ investing more in these goods, to sell securities held through mon stocks before the first
them¬ people begin to use up their the inflation is very great. overtures on stabilization are
selves with a 2V2% parity. hoards, so that the inflation¬ Stock prices fall sharply with made, or else to hold the equi¬
Meager though it may seem, ary prosperity of these com¬ such a selling wave, and equi¬ ties for a year or two until
Ordinary bondholders,
had
ever,
companies selected were op¬
erating and not just pros¬
it was,
pects, and so long as the min¬
erals did not constitute mar¬
ginal deposits. Producing oil
companies with ample re¬
sources
likewise were good
hedges. Stocks of good textile
companies and of chemical
companies already serving an
offered
also
export market
highly satisfactory hedging
possibilities. Needless to say,
foreign securities of countries
a
stable currency
more
excellent
hedges, espe¬
cially in the early stages of
were
inflation when domestic stock
prices
were
As in
depreciation.
currency
the
slow ot respond to
of
case
Germany,
once
satisfy
to
concession,
with
At the Clambake
nevertheless,
the currency was
disappears, earnings ty values
diminish, and stock prices therefore
that
fall. Not
only does the demand
marks to for these hoarded goods de¬
one new mark based on
gold cline, but the same goes for
demand in general. An infla¬
bullion.
tion leaves a country general¬
More important still than
ly impoverished, so that those
the vague possibility of a fa¬
companies which expanded
vorable settlement working
productive facilities during
to the advantage of bondhold¬
inflation find an excess capac¬
ers is the serious predicament
ity on their hands.
Even
of a post-inflation business
where such expansion did not
recession and a dumping of
take place, sales decline, prof¬
stock hedges. Companies that
its
drop, and stockholders
produce goods in which the generally begin to suffer.
wage-earner hedges experi¬
With stabilization the need
ence
a serious
slump in de¬
for hedging in securities also
mand as soon as stabilization
one
trillion
disappear.
It is the market settles down to
But even then,
to beat normalcy.
sizable panies
a
considering
stablized at
the
necessary
selling out
gun on
(Continued on page 52)
com¬
paper
COMPANY
R. C. O'DONNELL &
Members Detroit Stock Exchange
DETROIT
Telephone Cherry 7040
RAY
.
Teletype DE 443, 444
LARRY DILWORTH
O'DONNELL
FRANK KEMP
ED.
MARV GARDNER
ROESNER
Instead of vanishes, and the temptation
gets under way.
with
gold exchange rates, domestic
prices caught
paper
stocks
tive
became
up
attrac¬
more
until
eventually these
came to
possess better hedg¬
ing opportunities than did
foreign securities.
Complete Private Wire Service
DETROIT & MICHIGAN
MARKETS
To All Active Markets
IV.
Switching from Common
Stocks to Bonds
While bonds offer
no
hedg¬
Mercier, McDowell 0 Dolphvn
ing
opportunities > whatever
during the time an inflation
is in progress, they cannot be
spurned altogether in a com¬
plete hedging operation. For
a
hedge to be entirely suc¬
cessful, it generally becomes
necessary to get out of com¬
stocks
mon
and
place,
for
or very soon
one
or
both
two
the
DETROIT
1012 BUHL BLDG.
MORELAND & CO.
Member Detroit Stock Exchange
1051 Penobscot
of
*
Exchange
Detroit 26, Mich.
Bell System Teletype—DE 206
Telephone—Randolph 5625
WATLING. LERCHEN 8 CO.
INVESTMENT
BANKERS
-
„
rea¬
sons.
Because
639 Penobscot Building,
TELETYPE 195-6
thereafter,
of
1919
ESTABLISHED
Members Detroit Stock
Members Detroit Stock Exchange
bonds
into
just before stabilization takes
CHARLES A. PARCELLS & CO.
extreme
Tel. Randolph 3855
Building
DETROIT 26,
MICHIGAN
BROKERS
UNDERWRITERS
DEALERS
hardships borne by creditors
'luring inflation, the possibil¬
ity exists that these
ceive
preferential
through the
passage
stabilization revalori
laws.
Such
was
MUNICIPAL AND CORPORATE
may re¬
DE 75
treatment
the
STOCKS
of postza
t i
case
o n
A
in
GOOD
NUMBER
FOR MARKETS ON
better
creditors
than
Mortgage
fared
other-
DETROIT
awarded the most
ANN
were
BRANCH
gratifying
settlement in Germany when
mortgages were finally fixed
at 25% of their face value.
MICH.
26,
FORD BUILDING
no
groups.
holders
BONDS
MICHIGAN ISSUES
Germany, though French and
Austrian
—
TELETYPE
TO
BAY
CITY
OFFICES
LANSING
—
ARBOR
PONTIAC
Members—New York
MUSKEGON
JACKSON
Stock Exchange
and Other Leading
Exchanges
THE
COMMERCIAL
and FINANCIAL CHRONICLE
Thursday, August
28,
Joseph Sener, Mackubin,
Legg & Co., Baltimore
George
Lestrang, Arthurs, Lest range &
Klima, Pittsburgh
jt Frank Keane
Kirwan,
Thomas
Elmer Bright &
A. Kirwan &
Co., Boston; Thomas
Co., Boston; Willis
& Co., Boston
Pattison, Elmer Bright
Security Prices
(Continued from page
51)
declining earnings in
poverished
down
make
with
the
excess
first
wisest choice.
While
an
country
im¬
loaded
be
repaid at
ment
after
obligation to tractive. France
maturity, repay¬ experienced also
stabilization
stocks pro¬
hedge
years, it is, then, im¬
portant to sell them at the
right time when
they
preciated
the
over
purchasing
The
power of
prices
higher than they
high-priced, before stabiliza¬ the
actual
more
bonds
become
advantageous,
their prior
claim
were
inflation,
stocks
profitable
with
so
even
during
that in
remained
investment,
a
but the
bull market
made the bonds
limited also
on
progressively
UNDERWRITERS
DISTRIBUTORS
Money
Keep Capital and
more
DEALERS
at-
fixed
dragging down
the
tain
as
was
invested
throughout
the
to main¬
small frac¬
a
tion of the value
of
this
rates
bond prices
than
more
in
bonds
indeed
were
satisfactory
both
mining stocks.
While selected textile
and
chemical
as
and
in
reliance
move
and
rates.
of
stocks
upon
stabilization,
when
hoarding ended abruptly and
dumping began. Newly erect¬
selected
tended
ed
to
with the cost of
with
gold
plants
forced
were
and abandoned
living
purchasing power became
exchange
To the extent
that the
sufficient
to
absorb
MUNICIPAL
Firm Bids
—
COUNTY
Firm
Offerings
t
;
.
—
inflationary
Under
stock
FLORIDA MUNICIPAL
BONDS
Corporate Securities
—
Investment Funds
only
able
Investment Securities
356 South Beach
Street
Bell
Teletype JK
slump
paper
as
ST.
Teletype
80
'
9oR'O Inc.
is in these post-
crises
Daytona Beach, Fla.
Fire
'
:
corporate bonds
insurance
"
:
;
■
•
.
'
,
f.
CORPORATE SECURITIES
florida municipals
Inquiries Invited
1924
MUNICIPAL BONDS
•;
& stocks
on
Florida Corporate
Issues and
Local Securities
Florida Securities
Not
Incorporated
601 FLORIDA
NATIONAL BANK
ST.
TELEPHONE: 7-5131
Company
LEEDY, WHEELER
ALLEMAN
FLORIDA BANK
BUILDING
BUILDING
TELETYPE:
A
INCORPORATED
PETERSBURG 1, FLORIDA
ORLANDO, FLORIDA
ST PBG
89
Bell
Teletype OR
fire
outstanding merit.
Telephone 1400
181
Dealers
that
insurance stocks proved their
PETERSBURG
Distributors
profits, unrealiz¬
inflationary
BUSINESS ESTABLISHED
Underwriters
a
(entirely col¬
paper currency prices
JACKSONVILLE 1, FLORIDA
Branch Office
experienced
collapsed. It
T. Nelson
Bell
circumstances,
prices
AND
Clyde C. Pierce
Corporation
com¬
lapsing in Germany), with
stockholders being left with
Teletype Connections to
Leading Brokers
Throughout the Country
SECURITIES
Long Distance 47; 5-3680
the
sizable
V
ALL LOCAL
no
paid
dividends in the
year of German stabilization.
Complete Investment Service
Quotations
CORPORATE SECURITIES
in¬
production. Company
prices kept up with the
period, regardless of whether latter,
invested capital was earnings fell off sharply, as
the locale was
may be witnessed from the
France, Ger¬ maintained; and some
capital fact that
;
DISTRICTS
the
as
in¬
creased
stock
virtually
...
into
idleness
pany
Florida Bonds
offered
perienced while inflation was
process, this growth ceased
,
common
groups
also
during
temporary prosperity ex¬
the
mainte¬
growth,
stocks
growth opportunities
invest¬
capital
and
surance
of, preferred
had to be
placed in
stocks.
Prices
of
fund if
a
part
;
nance
interest
impossible
were
Similar fixedness
ments.
For
money markets eased up,
it became
the
possible
Make It Grow
With
Italy. gains
stocks also ruled these
out
'
r
or
bonds
concerned.
Wisest Investment of
spec¬
France, how¬
v.
-y
Austria,
possible
Therefore, capital growth was
during inflation, as was the
completely out of the ques¬ case
particularly with fire in¬
tion as far as
on
To
post-stabilization
ulative boom in
ever, led stock
France
de¬
currency.
are still
tion turns
profits into losses.
a
period of
increased production.
the
low
inflation
Thereafter,
no
capacity
meanwhile
a
Charles
King, Bankers Bond
Co., Louisville, Ky.;
Robert
Diehl, Wm. R. Stoats Co., Los Angeles
(holding lobster)
E.
many,
the
longer adversely
affecting the
proposal the bondholder
because of
common
vide the best
earnings and
and Inflation
A.
10
Long Distance
27
is
so
well
53
THE COMMERCIAL
Convention Number
F. E.
Morris, Courts & Co.,
CHRONICLE
•
^n?e<a ^ JlJFman ***> ^es^er First of MichiganGreen- «v«ig Qersten yersien at r rennet, New York Citv* John
G. Furman Co., Corp., irvjng v*er«en, Gersten & Frenkel new ioikiuiy, uonn
Vllle' s- c- Clarence A. Horn,
Inc., Philadelphia; Geo. S.
& M Prnitnr, & Cn PnrtlnnH MainA- TqMt r
H.^Payson& Co.^Portland^Maine, Jack C.
Maguire Stroud & Co.,
p;venn
Payson,
and FINANCIAL
Detroit; Robert B- Dixon? 'McDaniel
Greensboro, N. C.
Atlanta, Ga.
from
Bros.
Boyce, Baltimore
hatshaw, Harris, Upham && Co., Kansas City;
O'Neill, Stein
Lewis & Co.,
shock of stabiliza¬
the
looked ing inflation, with a sale of
these
taking place
before tion and the train of events
upon as a necessary business
stabilization. A purchase of set in motion by this phe¬
expense, with the result that
nomenon.
fire
insurance
companies bonds at that time would, of
The patterns set by security
course, end the possibility of
quickly recovered as soon as
business
showed the first capital growth in view of the prices in the continental infla¬
fixed principal amount and tions after the first World War
signs of activity after. the
maturity of bonds. Neverthe¬ may suggest the patterns that
slump.
With this recovery
less, at stabilization capital security prices will follow in
came the rapid restoration of
inflation when allow¬
maintenance remains the pri¬ any
dividend payments, with Ger¬
ance is made for the differ¬
mary
objective for a few
man fire insurance companies
ence in conditions.
practically all resuming divi¬ years until business recovers
entrenched that it is
1924, though these
in
dends
In the
able
capacity for growth dur¬
slump,
flationary
fire
that
stocks
and
the
cerns
to
MUNICIPAL BONDS
GEORGIA
COCA
SOUTHERN CORPORATE
COMPANY
COLA
next best
an
ISSUES
CLASS A
COMMON STOCK
BOUGHT
-
ALL
SOLD
SECURITIES
LOCAL
closely held and
incorporated
choice
;
stocks of min¬
manufacturing con¬
provide growth dur¬
8c Company
Clement A. Evans
First
National bank
ESTABLISHED
Building
Columbus
Augusta
J. H.
Tel. Main 1921
at 596
HILSMAN 6- CO., INC.
CITIZENS AND
SOUTHERN BUILDING
(P. O, Box
Macon
1578)
ATLANTA lf GA.
Bell
STATE
>
1902
^
•
GEORGIA
ATLANTA 3,
bell Teletype
★
★
★
investment in se¬
common
or
Bell Teletype SPBG 17
these
however,
were
would be
ing
COMPANY
1892)
SPARTANBURG, S. C.
STOCKS
would
it
generally unavailable to the
public.
Under such condi¬
lected
(Established
insurance
provide the wisest in¬
for both the pur¬
Germany,
tions,
A. M. LAW &
BONDS
BONDS
of capital maintenance
growth. In the case of
stocks
Underwriters—Distributors—Dealers
CORPORATE
MUNICIPAL
vestment
pose
PROPERTIES
AND
light of this remark¬
ing inflation, combined with
the happy faculty of rapid re¬
vival after an initial post-in¬
seem
SECURITIES
TEXTILE
dealers
distributors
underwriters
during the inflation.
SOUTHERN
J
Long Distance St
than those paid
lower
were
John
Telephone—Walnut 0433
Teletype—AT 296
UNITED STATES
AND
GOVERNMENT
MUNICIPAL
53 YEARS
;
IN THE SOUTH
OBLIGATIONS
BONDS
Georgia
South Carolina
Tennessee,
-
Investment
Department
Alabama, Louisiana
STATE AND
Trust Company
of
Georgia
ATLANTA,
Bell
i
The
Bell
MEMBER:
Representative—15 Broad Street
FEDERAL RESERVE
Telephone—HAnover 2-1561
Teletype—NY 1-2712
SYSTEM
—
FEDERAL DEPOSIT
INSURANCE CORPORATION
RHODES
LOCAL STOCKS
Robinson-Humphrey Company
ESTABLISHED
New York
& Florida
MUNICIPAL BONDS
CORPORATE BONDS AND
GA.
Telephone—Walnut 1671
Teletype—AT 283
North Carolina,
HAVERTY BLDC.
Teletype AT 288
1894
ATLANTA 1,
LONC
GEORGIA
DISTANCE
108
•
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, August
Mr. and Mrs. E. W.
Snyder, E. W. Snyder
Hunter, Aetna Securities
&
Co., Syracuse, N. Y.; Mr.
Corporation,
and Mrs. "Duke"
New York City
Sumner
-
Wolley, Coffin
&
Burr, Inc., Boston; Mrs.
Mulcock &
Co.,
and
Syracuse, N.
Mr.
E.
R.
i
Mulcock,
Y.
1947
E. R.
•
Growing Responsibilities
(Continued from page
15)
Suppose, for example, that
by
hand labor it cost
$750 to produce
Sandehs
&
INVESTMENT
Newsom
SECURITIES
REPUBLIC BANK
BLOO.
certain goods in
1870, and
25% of the total cost of
$250, or
$1,000, to
distribute these goods.
Then
sume
that, by development
of
machine
methods, the cost of pro¬
duction is cut to
$250. If the dol¬
lar
Dallas
as¬
cost
of
distribution
remains
in Distribution
constant at
$250, it still has gone
up in
percentage of the total cost
from 25% to
50%. The cost of dis¬
reduction in the
purchase price of
the finished
article.
In the 25
years
preceding the
war, the $1,500
automobile be¬
came a
tribution appears to have
doubled
but
actually the price to the con¬
is down to
$500, or half of $1,000.
original total
sumer
the
cost.
much finer
In
1910,
Innumerable articles which
a
carry
Before the
seemingly heavy sales and ad¬
war, a tire cost¬
ing $16
vertising expense show a
frequently ran 25,000 or
gradual even
a
30,000 miles—less than
1/15
a
cent
became
a
a
mile.
TEXAS '
'
MUNICIPAL BONDS
Corporate Bonds
*4
Trading Markets
as
you
paid
in 1923.
one
MERCANTILE BANK
BLDG., DALLAS 1,
TEXAS
Long Distance 841 and 847
Bell
Teletype DL 186 and
Wires
to
Other
and SAN
New
York, St. Louis
Principal Markets
ANTONIO
and
for
St.
inferior
an
Nationally advertised
now than in
1930. The aver¬
price
of
brand-advertised
electric irons
dropped from $6 to
$2.95 in the 15
years before
We
war.
this
all remember
when
can
refrigerators sold
reduced
Electric
to
of
14
later.
years
14 years.
In
1929
the
average
radio
$135 and a few
people could amaze
set
thousand
their friends
with a voice
from the air.
Today
the
average set sells for
$34 and
60 million
sets are in
use.
The
price of television
showJ the
will
un¬
trend
same
downward as more
and
homes are persuaded to
buy.
Thus, one might go on
Plainview
Paul, Minn.
an
were
washing machine prices
reduced from $154 to
$69 in
were
cost
DL 197
for
$310—and
$130
sets
Omaha, Nebr.
na¬
price
doubtedly
San Antonio
a
bulb to¬
age
Rauscher, Pierce & Co.
Underwriters—Dealers—Distributors
Direct
$17.50.
cleaners
averaged $54 in 1941.
Electric clocks are
50% lower in
electric
-
at
one
much for
gasoline, without tax, costs
40%
less than in
1925. Vacuum clean¬
ers cost $70 in
1907, but superior
PUBLIC UTILITY,
INDUSTRIAL
BONDS and STOCKS
BANK and
INSURANCE STOCKS
TEXAS MUNICIPAL
BONDS
BRANCH OFFICES:
HOUSTON
as
tionally advertised light
day
average price
& Stocks
The $50 camera
superior
You pay
Active
more
men¬
tioning an almost endless list of
commodities and services
which
have borne a
relatively high dis¬
tribution cost, but
have sold for
less and less
to the
consumer.
Great
achievements
production would
possible
without
Dittmar
&
achievements
is
Company
Dittmar
&
is
Co.—Established 1925)
Suite 845 Wilson
dependent
A
Incorporated
(Formerly—Mahan,
in
been
equally
great
distribution.
Each
the other.
on
small
for
mass
have
higher distribution
the
pay
Building
in
not
price
expense
industry must
the
large economies of
production. From the view¬
mass
DALLAS 1, TEXAS
point of
Telephone—Riverside
economy the
important point is that
the con¬
Teletype
Underwriters
—
—
9681
DL 486
Distributors
our
national
sumer
gets
better merchandise
and better
service at a lower cost.
Percentage Costs
—
Dealers
Will Continue to
Increase
What of the
future?
Corporation
anil
Municipal
YO**
war
CHIC*00
years
and
Corporation
Municipal Securities
age
transaction
principally
many
WESTERN UNION
Branch of San
Antonio
were
to
services
Now
TELEPHONES
l.D.
forward
694
.
LOCAL. CENTRAL
9124
WESTERN UNION
DLS 93
The
march
war
now
must
to
placed
importance
on
sales
aver¬
govern¬
Furthermore,
were
business
were
larger, due
wartime
spending.
eliminated.
TELETYPES
BEll SYSTEM
DIS 395-396
costs
Both total
volume and the
size of the
ment
in Texas
During the
distribution
relatively low.
Securities
Specialists
at
2,500 miles cost
$25—a cent
mile/
of
.
automobile
tire that would
a
run
curtailed
resume
new
or
its
markets.
overwhelming
production. We
are
unquestionably
able to pro¬
economy of abund¬
ance.
From now on
the success
of our
whole
duce
for
an
economy
(Continued
on
depends
page 55)
Mr. Otto H. Steindecker, New York Hanseatic Corp., New York City
Mrs. and
CHRONICLE
THE COMMERCIAL and FINANCIAL
Convention Number
Mrs. Oliver
Goshia, Toledo; Mrs. James F. Jacques, Dallas; Mrs. John F. Egan, Los
Angeles; Mrs. Harry L. Arnold, New York City
1
and
the
on
will
share
farms
be
and
impetus.
larger
in the
a
employed
the success of the distribu¬
upon
tion factors.
But what about the
for
our
machinery
distribution? More than half
sales was to one customer—
and by-passed
Sales organiza¬
largely depleted. Sales¬
turned from selling to trying
the
government,
the
But
the
in
field
the
of
production.
fied, it will be necessary, and ad¬
the opportunity to increase visable, to face an increase in per¬
output of workers in the dis¬ centage distribution costs.
tribution field is less than in the
field
of
production
And
where me¬
will be an
the
basic
trend
that
has
been
chanical improvement
primarily responsible for the
steady increase of percentage dis¬
important factor.
tribution
distributors.
costs
the
past will
The wartime expansion
continue.
Simply by working two or three
in
Since
declined
The
has
The
of
percentage
the
undoubtedly
the
during
war.
times
one-half
stand in line to buy
accumulated
wants
are
during
ever
the
years
of
56)
& Gompany
MARKETS
Com. & Pfd.
Muehlebach Brewing Co. Com. & Pfd.
Mississippi Municipals
Southwestern
Southern Corporate Issues
Texas
Service Co.
Public
Com.
Hydro Elec. Co. Pfd.
General Portland Cement Co.
New Orleans Bank Stocks
Gulf States Utilities Co. Com.
San
Antonio
Bank Stocks
TEXAS MUNICIPAL BONDS
DANE
JOHN
Exchange
Members New Orleans Stock
Alamo National Building, San
search for scarce merchan¬
than
on page
El Paso Elec. Co. Common
ing from store to storfe, standing
in line and burning up gasoline in
would undoubtedly find
(Continued
Lone Star Brewing Co.
of totaling the
amount of time people spent go¬
we
conversion, so enchanted by our
contemplation
of
the
unfilled
its
TRADING
had some way
that distribution cost society more
Is it
INCORPORATED
employed in the factories
satis¬
Louisiana and
merchandise,
required.
It might be pointed out, how¬
ever, that if any value is placed
on the time of the consumer, and
dise,
immersed in
stand today?
we have been
so
the problems of re¬
Houston Natural Gas Com. & Pfd.
people
motion and distribution service is
their
reached
we
that
Longhorn Portland Cement Co.
not as much expense
we
but
Russ
con¬
cash for it and carry it away,
for sales pro¬
pay
possible
peak about 1920 and varied little
until the war gave it a temporary
decreased
When
The Present Situation
Where do
proportion in manufacturing
increased roughly two
and
sumer's dollar that went into dis¬
tribution
of
agriculture has
three - quarters.
shifts daily, a factory's
as
non-existent.
in
nearly
output can of manufacturing capacity will
be greatly increased with a low¬ bring a further transfer of costs
men
ering of unit costs. No compara¬ from production to distribution.
to keep customers pacified with¬
ble opportunity exists in the field In other words, lower unit pro¬
out giving them merchandise. The
of
selling which depends upon duction costs will be achieved
machinery for sales promotion be¬
through the higher marketing ex¬
came rusty.
Advertising was de¬ persuasion.
Because
of
these
immediate penses necessary to distribute a
voted largely to the preservation
considerations
we
shall
delude larger volume of merchandise.
of reputations.
Selling not only
A smaller share of the people
ourselves if we do not realize that
grew soft—but often it became
will be
tions were
the' proportion
1820
workers
our
But the proportion in
transportation has in¬
creased about ten-fold..
distribution and service industries.
have
(Continued from page 54)
and
trade
NEW ORLEANS
12, LA.
Bell
Telephone
Teletype
NO
Direct
Raymond 5281
465
Antonio 5
Telephone Fannin 4324
Teletype SA 23 & 53
and Connecting Wires to:
Dallas, Houston, New York & Los
Harold H. Dane
-
Abner K. Northrop
-
James J. Plauche
-
Angeles
John Dane, Jr.
/
scarcity.
During the
war,
department
store operating costs dropped from
10 to 20%. Now that consumer re¬
especially
services such
delivery, credit and returnedgoods privileges, which were cur¬
tailed during the war, must be
resumed. New styling, more sales
promotion and advertising will be
sistance
on
is
increasing,
plentiful items,
Morris
W.
Wm.
Newman
Ferry
Brown
Ike
as
D.
Scharff
James E. Roddy
Daniel L. Scharff
Dealers in
LOUISIANA, MISSISSIPPI and
required to woo the consumer.
After the war sales machinery
OTHER SOUTHERN MUNICIPALS
had to
be,rebuilt, order-takers con¬
verted
into
salesmen, men and
women selected, trained and in¬
spired to do more than had ever
NEWMAN, BROWN & CO.
Much of this
has been
326 Hibernia Bank
accom¬
advertising have not yet been
put to
a
Long Distance
@SHRevi!Porr
Building
NEW ORLEANS,
plished but in most lines selling
and
MISSISSIPPI
INC.
been done before.
12
Teletypes NO 189 & NO 190
101
real test.
One out of every five business
firms now operating in the United
LOUISIANA
States started within the last three
have
known
selling
and
New
,
ORLEANS'
enterprises
nothing but easy
of
Most
years.
QJACKSON
these
good times.
Neither
their products nor their names are
yet firmly established. They have
never
faced
a
recession
or
a
depression, never grappled with
falling prices and liquidating in¬
ventories.
panies,
Countless
searching
maintain
wartime
old
com¬
ways
to
volume, have
for
Municipal and
Corporate Securities
new
products and at¬
tempted to invade other fields in
which they had had little expe¬
rience. Now they must step out
and sell for they will be among
the first to be squeezed when sell¬
ing again becomes competitive.
Wage
the
field
rates are advancing in
of distribution
they
Scharff L Jones
INCORPORATED
launched
WEIL & ARNOLD
WHITNEY BUILDING
TELETYPE
■
CANAL
BUILDING
NEW ORLEANS 12,
Raymond 0711 & LD 145
NO
LA.
Bell Teletype*—NO 175
180
&
181
NEW ORLEANS 12
SHREYEPORT, LA.
—
L. D. 25
MAGNOLIA 1271
JACKSON, MISS.
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, August
28, 194)
Murray Barysh, Ernst &
Co., New York City; Abe
York City; Carl W.
Strauss, Strauss Bros.,
Zies, V. D. Anderson &
Inc., New
Co., Cleveland, Ohio
We Are Pleased to
Announce the Association
of
RICHARD R. O'NEIL
With Our
Keating L. Simons, James
York
City;
Herbert
Shaw,
Growing Responsibilities^ in Distribution
(Continued from page
55)
wants, so confident that the
had
more
and
public
than
ow
planning that
it had
before
cilities that would
the war?
enough money to
gratify them, that we have
been
The
to
restore distribution
to the
important place in our
Trading Department
Conner &
Co., Charleston, S. C.; Mrs. Jos.
McManus, New
Vance, Sanders &
Co., Boston; Joseph
Jos. McManus &
McManus,
Co., New York City
I.
come
war
gave forced
production.
thinking
in
It
techniques
feeding to
a
brought advances
and
gradually
Now
a
increases in fa-
we
normally have
over many
years.
are
attempting to move
wartime rate of
production into
peacetime rate of
consumption.
he
machinery of distribution
::aces
oscar f. kraft &
co.
L. A.
Specialists in Unlisted
Securities
530 W. 6th
St., Los Angeles
14, TRinity 2529
Teletype
responsibilities—and
tunities—which are the
TRADING MARKETS
Transit
—
Lear Inc.
Independent Exploration
LA 675
Kern
—
—
But if
our
—
Cinecolor
from
Bell
6
A.
M.
System
until 5
P.
Teletype
LA
25
It
MEMBERS LOS
523 W. 6th
MEMBER
TELETYPES
Established
LA 23
LA
STOCK EXCHANGE
or
York
City
&
Chicago
ALL
LOS ANGELES
PHONE
\
James A. Reeves
Houses
Leased
E.
H.
Rollins
Bacon
&
We
pleased
are
&
to
announce
JOHN R.
as
manager
of
the association
of
JAMES, JR.
our
Trading Department
William R. Ehni
Wires
Sons,
Co.,
to:
Inc.,
San
San
Francisco
Francisco
Marache Sims & Speer
Member
Spring Street,
Los Angeles 14,
California
Los
Angeles
458 So.
Los
Telephone:
Stock
Spring Street
money
income in
the
aggregate of non-agricultural
workers.
'
Angeles 13, California
Mutual
3174
Bell
Teletype—LA
The income of
the people of the
United States stands
today at an
all-time high of
$176 billion—an
increase of 131% over
1940. After
adjusting for higher taxes and
289
Western Over-the-Counter
Securities
Specializing
Wire
System
Son
Bingham,Walter 5 Hurry
Exchange
-
TRinity 1041
New
&
York,
New
York
Members
Stock
New
York
Curb
Members
Philadelphia Stock
Members Los
Angeles
Stock
530 W. 6th
WESTWOOD
Philadelphia
Long Beach
Pittsburgh
San
Diego
'
down.
$200
billion
and
provide
em¬
ployment for less than 57 million
civilians?
In
lines
many
this
with
people
is
We
vertising problem.
Exchange
Exchange
Exchange
Exchange
are
their
—
an
ad¬
dealing
individual
needs, whims, desires and abilities
buy. If we doubled the size
to
Street, Los Angeles
Harrisburg
Beverly Hills
are
The question is this:
Will people
continue to buy or must
we cur¬
tail our
wartime production level
Philadelphia
of
our
sales
would not
14
Trinity 5343
LAGUNA BEACH
history.
This is a market
with a poten¬
tial such as we
have never known
before. Retail dollar
sales are up,
though unit sales and manufactur¬
ers' sales in
some
Buckley Brothers
Teletype LA-224
ANAHEIM
by the largest volume of
savings
in
of
PASADENA
or
than two and half times
the highest
prewar level—backed
Chicago
Members
sur¬
discretionary
saving of $89 billion
lines
to
Diego
a
for
—more
in
EAST and
WEST
COAST ISSUES
Private
still have
we
income
spending
ACTIVE TRADING
MARKETS
Spring-LOS ANGELES
million,
employed in non-agricul¬
tural
work, there has been a 135%
increase
in
Exchange
living costs,
621 S.
12
144,126,000—
weekly earnings in¬
73%
and
36%
more
creased
plus
Member Los Angeles
Stock
to
people
'
639 South
over
of
moved
TRADERS
75 Private
Lines to
increase
Since 1940 six
million people have
from rural areas to the
cities
where
the
pattern
and
standard of
living are quite dif¬
ferent. Ten million old
customers
have gone to
their reward, 21
million babies have
been added to
the market and
12 million
couples
have
been
married.
About 13
million more
civilians are em¬
ployed in non-agricultural
pur¬
suits.
With
in
INVESTMENT TRUST SHARES
Banks & Investment
by
131,669,275
an
over 4
million, from 34,948,666 to
39,100,000—or an increase of 12%.
1921
PACIFIC COAST BONDS
UNLISTED STOCKS
1071
grown
9^% in con¬
sumers.
The number of
family
units will show
a net increase of
—-v
24
Specializing
VANDIKE
New
EXCHANGE
SAN FRANCISCO
STOCK EXCHANGE
market
estimated that by
July 1,
the U. S.
population will
have
from
LOS ANGELES
14, CAL.
Private Wire Facilites
to
LOS ANGELES
STOCK
BELL SYSTEM
ANGELES
STREET,
Is the
is
1947,
Quincy Cass Associates
Communication
stepping-up
increase and
intensify
we
of today is
vastly
different from the one
we knew
in 1940.
Let's make some
com¬
parisons.
(P.S.T.)
Phone TU 5151
for
a
oppor¬
greatest
The months
selling and advertising, what
The
M.
known.
are our
chances of success?
potential there?
Bullocks
Pacific Coast Issues
Markets
ever
ahead will
require
selling effort.
Majestic Radio
Chiksan Co.
—
County Land
have
of
Cliffs Corp.
—
Pacific American
Investors Com.
we
inclination
Hagerstown,
of
consume. We
sell the trade
New York
Md.
organization
we
necessarily double the
people
to
buy
or
cannot continue to
unless the consumer
continues to
buy. We must resort
to
informing
and
(Continued
persuading the
on
page 57)
K
THE COMMERCIAL and FINANCIAL
invention Number
Mr. and Mrs. Bert
Hickey & Co., Chicago; Geo. Stanley, Schirmer, Artherton
Mrs. Jack Rogers,
Mr. and
&
57
CHRONICLE
Co., Boston
and Mrs. Geo. Eisele,
Seligman, Ward & Co., New York City; Mr.
Coburn & Middlebrook, Hartford, Conn.
Responsibilities in
Distribution
TRADING
(Continued "from page 56)
Advertising uses
mechanized methods to
deliver
these messages to the millions. It
is the counterpart in distribution
of the machine in production. We
have the greatest potential market
REVEL MILLER & CO.
'
the desire
Angeles Stock fx change
Members los
14, CALIF.
634 S. SPRING ST.
LOS ANGELES 14
•
•
Ml 6421
higher
LA
VANDIKE 2201
SANTA MARIA
BEVERLY HILLS
Teletype
Telephone
automatically
'
PRIVATE
155
WIRE TO NEW
YORK
living standards of
the
on
families that
income
of
not
have
taken
ANGELES
Teletype LA 146
into
moved
groups
LOS
STREET
to buy.
millions
The
have
Exchange
Stock
MorganS Co.
even
have money,
Angeles
650 SOUTH SPRING
though people
they must also have
But
Los
Members
American business has ever
known.
SECURITIES
SOUTHERN CALIFORNIA
ultimate buyer.
that
MARKETS
In fact, experience
shows that such families tend to
retain their old living standards
those
groups.
influenced to attain
until they are
something better. But once they
have learned to enjoy a higher
will
they
standard,
of
mous
new
kinds
These mil¬
offer
families
lions
much
work
harder to maintain it.
enor¬
an
Edgerton, Wykoff &
CALIFORNIA SECURITIES
MEMBERS LOS ANGELES
potential market for all
and services. But
they
buy
your
mer¬
of goods
whether
Top Floor, 618 South Spring
competitor's, or
use
their new surplus in other
ways, will be largely determined
by how aggressively you go after
chandise
or
your
Tel
TRinity
St., Los Angeles 14
Teletype LA 107
1694
V
business.
ganization has really been geared
up for hard-hitting selling? What
are
V'-Pi
/
:
WILLIAM R. STAATS CO
long since your sales or¬
How
Co.
STOCK EXCHANGE
Trading Markets
doing about those 12 mil¬
newly married couples and
you
lion
those
going to buy your products
because their grandparents
aren't
just
SOUTH SPRING
640
ST. • LOS ANGELES
San
advertising plan based
present production ca¬
pacity and your present market
potential or on what you spent
Is
PACIFIC COAST
your
Angeles
Stock Exchange
Francisco
Associate Member
Beverly Hills
your
SECURITIES
14 • TR. 4211
Members Los
Pasadena
did.
on
STOCKS
They
babies?
million
21
BONDS and
San
Santa Ana
Francisco
BILL BUNYAN
BUD TUTTLE
Stock Exchange
Oxnard
different conditions in
before the war?
peace-time years be¬
World Wars I and II ad¬
under very
the years
the
In
tween
averaged
expenditures
vertising
about 3% of national income.
Last
year's national income was
$165 billion.
If
the
peace-time ratio of ad¬
vertising to national income had
prevailed, last year's advertising
volume would have been $4,950,000,000.
Actually,
000,000.
it
was
only
the
many
lines. But, month by
satisfying
these
If
sidered
would
that
an
seem
our
month
and
more
be con¬
then they
furnish evidence
figures
as
to
marketing machinery
it
wartime increase in pro¬
duction facilities.
I
think
it
is
well
:
•
has
stepped up to meet
buyer's market,—or to tackle
our
Investment Securities
may
the increased load placed upon
by
Retail Distribution
WdgensellerS DurstJnc.
index,
not yet been
the
Coverage for
of Securities
pent-up demand.
of the
more
since 1927
is
reason
industry is
Serving Southern California
$3,120,-
undoubtedly that
seller's market continues in
One
Complete Southern California
We Offer
626 S.
SPRING ST., LOS
TRinity 5761
MEMBER
to
which affect our en¬
But I also know it
is impossible to generalize. Each
business is different. Some may
tire economy.
LOS
•
ANGELES 14
TELETYPE: LA 68
ANGELES
STOCK
consider
these things
(Continued on page
. s... .
'
58)
PASADENA
•
REDLANDS
•
FEWEL 6- CO.
MEMBER LOS
453 S.
Bell Teletype
Los
EXCHANGE
CLAREMONT
BEVERLY HILLS
•
ANGELES STOCK
EXCHANGE
SPRING STREET
LA 456
Angeles 13,
LONG BEACH
•
TRinity 4191
California
•
SAN DIEGO
•
ARCADIA
58
THE
COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August
Wallace
Fulton, National Association
of Securities Dealers; B. W.
Pizzini, B. W.
Pizzini &
Co., New York City
Mr. and Mrs. John
Sullivan, F. L. Putnam
E. H. Rollins
THANKS
(Continued from page
57)
TO
find
pro¬
selling and
advertising effort
BOSTON
order.
it
necessary to curtail
duction and hold back
until inventor¬
reduced. Many others will
ind it advisable to
increase their
sales promotion
and
ies
are
advertising
TURN ER-P0 IN DEXTER
"
;
&
in order to
maintain their present
and help
move
the
momentum,
inventories.
CO.
Member of Los
Angeles Stock Exchange
629
LOS
South
We
question
Spring Street
ANGELES
14,
have
an
CALIFORNIA
with
Madison 2266
or
to
price
a
again
time
the
becomes
The
public,
wrongly, believes that
one.
the
war
nearly two years
behind us, the recession
of prices
more
If
reasonable
levels
is
in
are
Co., Boston; Mrs. and Mr. James
Sons} Inc., Boston
willing to
dise
people buying.
I
come
the in¬
in the cost of
production.
cannot lower either
costs
prices and still maintain
creases
down and manufac¬
or
and
retailer
alike would be forced to
sell their
goods without regard to
costs. The
retail trade sensed
this several
months ago and
mark-down sales
have become
It
not unmindful of
am
But
wholesaler
common.
Maguire,
find the prices and
the type and
amount of sales
promotion that
will keep
public stops
buying all
but actual
necessities prices would
have to
1947
at higher
prices. The prob¬
today is an old one: i e.—to
lem
the
turer,
come
us
&
admit that certain
things need to
come down
considerably in price,
while other
things do not stand
so
greatly in need of readjust¬
ment.
"
important
rightly
ifili Tpipf.vnp
T.A.3R
of
Most of
&
28.
we
profits
by
speeches,
edict.
That
recriminations
or
can
only be accom¬
by greater output per
man-hour.
That is the
key to
plished
lower
a
cannot
of
be
expected that merchants
will
replace their goods with
merchan-
prices, greater volume and
further advance in the
standard
living.
No
wage
that is earned is too
high—but it has to be earned. For
long run, prices can be re¬
the
duced in the space of a
high level
costs only if the
efficiency of
both production and
of
TRADING MARKETS
We invite
Trading Markets
Boston
Los
Cleveland
Hartford
Dallas
Milwaukee
Providence
Detroit
Grand Rapids
Minneapolis
St. Paul
REAL ESTATE ISSUES
OF
PACIFIC COAST & NEW
YORK
Philadelphia
St. Louis
1
155
Montgomery
Francisco
Street
-
San
Co.
& Co.
MONTGOMERY STREET
v
SAN
'
Teletype SF
quality
that
market
to
Mer¬
war.
well-known, dependable
Most
nomic
authorities
outlook
corrective
Telephone EXbrook 8515
Bell Teletypes:
Corporate Department
are
SF 61 and 62
adjustment
even
the
eco¬
that
the
which
we
now
experiencing will be fol¬
lowed by a
long period of pros¬
perity. Their reasons are that the
unfilled demand for
goods is un¬
precedented and that 11 million
people
are
gainfully
em¬
wages.
If these views
are
they offer added
First California
Company
on
predict
ployed at higher
correct then
encouragement
to sales executives
who have their
on
the future.
And they
make clear that for
the
eyes
Active
Exchange
Trading Markets Maintained
coming
year, objective number one should
be to maintain
and strengthen re¬
lations with trade and consumer—
sometimes
•
mer¬
rushed
brands offering sound values will
again be available.
In fact, they
suspect they may
already be in
the warehouses or
more
UNDERWRITERS
much
chants want to get rid of it
now
and replace it with
goods that will
give satisfaction. TTieir
FRANCISCO (4)
4
70
Member Los
Angeles Stock
of
was
after the
sometimes
under the counters.
Telephone GArfield 1-4511
,
the
soon
J. S. Strauss
&
poor
chandise
customers
don't want it for
they believe that
the
Seattle
Brush, Slocumb
simply to
refusal of people to
pay the
high prices. Some of it is due to
the
Chicago
resistance being felt
the
Stocks & Bonds
Angeles
sales
in some lines is
not due
CORPORATE
connecting wires to:
New York
increased.
The
of our wire facilities. Direct and
use
distribution
is
in
DISTRIBUTORS
Complete information
profits.
I
am
one
America's fastest
growing market
to
Since
1858
■
' \
at the sacrifice of
not an economist and i
shall make no
attempt to predict
the future of
business. But of this
Western securities
available
Covering California —
even
temporary
on
thing I
have
we
■
have
am sure.
more
We
are
competition
had
in
the
last
going
than
seven
years.
300
Montgomery Street
SAN
FRANCISCO
Teletype SF
431
510 South
20
Teletype LA 196
#
.
:
■
.
Oakland
San
Santa Ana
suTRoerco.
Spring Street
Members
LOS ANGELES 13
and 432
NBW YORK
STOCK EXCHANGB
NEW YORK CURB
and 533
EXCHANGB
'
-
Diego
Long Beach
Monterey
Santa Rosa
Ventura
Beverly Hills
Monrovia
Private Wires
between San
Saprapiento
Fresno
Pasadena
Reno, Nevada
Stockton
Hollands
\jm
San Jos*
LOS ANGELES
SAN
Vegas, Nevada
JOSE 4
246 S. First Street
Francisco, Los Angeles and New
York
FRANCISCO STOCK
EXCHANGE
ANGELES
STOCK
EXCHANGE
14
210 W. Seventh Street
(dondale
SAN
LOS
SAN
407
FRANCISCO
4
Montgomery 5t-
NEW YORK 6
61
Broadway
BEVERLY HILLS
204 So.
direct private
wires
Psyerly Drive
Some of us will have more
than we have ever
known. We
can't go far
wrong if we base our
plans on that premise.
Eliminating Operating
Although I believe
trend
of
percentage
Wastes
that
the
distribution
costs to increase
will continue, let
no one
conclude that I am blind
to the
opportunities to reduce unit
costs.
In
distribution,
erations, there
that
ipfiqqpqe
as
in other op¬
wastes in oper¬
The cost factors
are
ating efficiency.
the
movement ot
THE COMMERCIAL and FINANCIAL
Convention Number
is
accurately measured as those
as
of production.
Scientific controls, which have
been
so
important in reducing
production costs, are not yet as
widely used in the processes of
distribution. Infinitely more time
and money have been spent to
reduce production costs than in
similar attempts to reduce dis¬
tributing costs. Since the share of
the consumer's dollar going for
the costs of distribution has grad¬
ually increased
to 59%, there
should be a corresponding shift of
research effort to the marketing
the
in
and
More
too
to
much."
field
this
lies the
for
or
you
the unit cost of
that
old
later
our
of
generality can become a
dangerous concept. It takes man¬
agement's eye off the target. More
than that, it fixed it on the wrong
target.
:■}
true
is
target
the
the
unit
well
as
costs of
way
Certainly the buyer's market is
here.
But that's like old times.
It's why
to lower
production, is sometimes
Very often if
more.
your
business has needed sales
salesmen and advertis¬
managers,
distribution, as
"If
Wo
there
is
Market
a
ing as long as we can
find it"
can
And Dealers
EDWARD D. TONES & CO.
ESTABLISHED
1871
MEMBERS
New York Stock
St.
Louie
Stock
Exchange
Chicago Board of Trade
Exchange
Chicago Stock Exchange
New York Curb Exchange, Associate
Saint Louis 2, Mo.
300 North Fourth St.
Bell Teletype SL 593
Central 7600
Direct
Private Wire Connections
Josephthal A Co., New York, and James
with
E. Bennett A Co., Chicago
"a market of
let's rename it
But
remember.
we
Specialize In Orders For Banks
Perhaps our dis¬
isn't costing enough.
tribution
MARKETS
Trading Department Is Active In All
Local Listed And Unlisted Securities
And Invites Your Inquiries
Our
capacity.
tive
prices.
Paradoxically, the
LOUIS
ST.
production system.
assignment today is to sell
consumer about twice as much
goods as we did before the war,
or drastically curtail our produc¬
distribution costs per se, but lower
consumer
jobs in our
The
lower
not
that
said
unions—dictates the number
the
That
Our
wisely
nothing happens in our economy
until something is sold. Consumer
demand — not management — not
'■
of distribution.
been
has
It
costs
but the cost of lack
are
using the engineering ap¬ by spending
proach—informative cost-account¬
you promote
ing, objective fact-finding, market
analysis, experimentation, testing.
In
fall
sell enough more to reduce
distribution.
and
this
But
"Distribution
Sooner
distribution
sales planners
more
leaks
problem would be not the cost of
p
•
time
no
the
distribution.
catch-phrase
processes
field.
in
wastes
have usually not been
consumer
minimize
Let's
factory or farm to
from
goods
Douglas R. Hansel, Wertheim & Co., New York City; Robert U. Ingalls, Tucker,
Anthony & Co., Boston; Horace Frost, Tucker, Anthony & Co., Boston
Mrs. Edward W. Schaefer, H. D. Knox & Co., New York City; Mr. and Mrs.
Frank T. Harrington, H. D. Knox & Co., Boston
Mr. and
59
CHRONICLE
product harder buyers"—and go after it.
chief hope
down the percentage
increase in distribution costs.
of
slowing
Great
are
aptitude
and
courses
It is unnecessary to
audience of the
worthwhile return.
a
finding
what
•
needs,'
pack¬
advertising and selling tech¬
products,
pre-testing
ages,
niques.
The
continuous
for
316 N. 8th
Teletype—SL 62
nV'A
;
—Members—
'
.....
advertising
calls
to a
carefully selected audience — not
extravagant, stop-and-start effort
or campaigns that are spread too
New York Stock
New York Curb
Exchange
FOURTH & OLIVE
Bell Teletype
Exchange
ST. LOUIS 2, MO.
STREETS
L. D. St. Louis 340,
SL151 & SL152
thin to be effective.
It requires
vance
that
Correspondent and Private
making sure in ad¬
new
product is
Clark, Dodge & Co., 61 Wall
a
MISSOURI
GArfleld 1721
'
j.-,.,.'Exchange (Associate)
St. Louis Stock
Chicago Stock Exchange
STREET, ST. LOUIS 1,
Co.
Newhard, Cook &.
.
elimination of waste
Underwriters —Distributors
.
your
it
EXCHANGE
Dealers
importance
the
products to meet consumer
and
DISTRIBUTORS
UNDERWRITERS
of
market, determining
wants, designing your;
know
You
LOUIS STOCK
ESTABLISHED 1924
remind this
savings that can
be made by the elimination of un-;
profitable accounts, territories and
products and the concentration of
effort on those that do, or could,
yield
MEMBERS ST.
being . made
tests, training
other personnel work.
gains
through
341 & 342
Wire System
*
N. Y.
St., New York 5,
something that prospective buy¬
want or can be influenced to
ers
want, at the price it is to be of¬
fered; that it has one or more
unique advantages that will give
it a chance in competition with
similar products; that its quality
will be consistently satisfactory;
that
it
be
delivered
to
the
at
sumer
reads
time
the
advertising
DEMPSEY-TEGELER & CO.
Members
the
promised and
easily available when the con¬
trade
be
can
SCHEFCK, RICHTER
New
York Stock Exchange
New York Curb
—
Los
or
commercial. *
These
things call for simple
common
sense, careful planning
and coordination, but how often
Exchange (Associate)
St. Louis Stock
Angeles Stock Exchange
Chicago Stock Exchange
—
Exchange
COMPANY
hears your radio
these
Underwriters
principles have been
especially during the
years, in the effort to
products to market. We
—
Dealers
—
Distributors
basic
violated
—
last
two
rush
new
Trading Markets in
Unlisted Securities
eliminate waste too when we re¬
fuse to tear down
our
competitors
by negative selling and when we
bring about a better understand¬
ing of distribution by the critics
of our competitive system.
Yes, there are wastes in dis¬
tribution. But they are the same
kinds of wastes due to bad judg¬
insufficient study, inade¬
quate
planning and inefficient
administration that can be found
ment,
to
some
degree in all
operations.
407 NORTH 8th
Bell
ST., ST. LOUIS
1, MO.
Teletype (Trading Dept.) SL 144 (Municipal
210 W. 7th
Direct
New York
and
Chicago
Philadelphia
St., Los Angeles,
connecting private
Los Angeles
San
Francisco
Dept.) SL 491
Calif.
wires to
Dallas
Seattle
(
Detroit
St. Louis
THE
COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August
28, 1947
Jack
Sammon, J. F. Sammon & Co., New York
City; King Ghegan, Kalb Voorhis
Co., New York City; Wilfred G.
Conary, J. Arthur Warner &
Co., Boston
&
Harry J. Steele, Fauset, Steele &
Co., Pittsburgh; Frank L.
&
Lynch,
Pittsburgh; Mrs.
What's Ahead for Utilities?
(Continued from page
14)
company's slogan reads,
business."
alone in 1946
"is
a
view the results of
recent
as the New York
were
billion dollars
the
previous
depend not only on
le condition of
the capital market
(which has been
abnormally slug¬
gish, considering the level of bus¬
iness activity and
prosperity) as
Earl W. Price
William J.
Dyer
well
as
the
Active
Trading Markets
in
availability
of new
construction maerials. Under the
present low in¬
terest rate
pattern, it would appear
o
be wise
policy for companies
contemplating expansion to do
neir financing
equipment
and
now,
Local
but, having in
Corporate Securities
offerings, debtedness
and
fixed
charges,
Telephone thereby
weakening ability to with¬
general stand
long periods of
apathy of investors, there is a
depression
likely and reduced net
chance, unless conditions
earnings. But to
change, expand through
that absorption of new
capital stock is¬
capital is¬
bonds, together
with
sues, whether stocks
the
scale
slow
the
sues
or
contemplated
and
bonds
means
be
difficult.
Another
factor
affecting the rather than appreciation.
acquiring new invest¬ also, that stock
dilution
capital is the question of
avoided, since financing
ment
utility company capital structure.
The low level of
long-term inter¬
est
rates
to
create
leads
to
the
excessive
debtedness.
as
ness
temptation
bonded
in¬
through capital
In
shareholder.
Government Power
Policy
A factor in
—
the future of utili¬
particularly the
industry, is the
Federal water
Stocks
the
late
tiated
Equipment Trust Ctfs.
power
President Roosevelt ini¬
Tennessee Valley Au¬
with
the objectives to
launch the Government
into busi¬
and, at the same time, fix a
"yardstick"
for
rates,
Federal
owned power
projects have mul¬
tiplied and have caused
private
companies
serious
concern.
At
Municipal Bonds
present
Bell
is
no
all
on
new
an
power
program
is decided
upon. He characterized
the present
program as "chaotic."
The
into
Government
a
large
very
development,"
Teletype—CV 433-444
public
overall
is too much
is
getting
public
power
he said, "and there
overlapping
fusion. We need
an
and con¬
overall agency
and
policy." He added that every
large reclamation project has a
public
power
system,
that
all
Ohio and Middle West
Markets
projects
rately,
TRADING
CLEVELAND OFFICE
Telephone CHerry 0260
Teletype CV 496 & 497
John A. Kruse Daniel
M. Hawkins L.
Warren Foster
CHICAGO OFFICE
Telephone CENtral 7400
Teletype CG 417
MARKETS
are
and
these
administered
that
agencies
"every
has
a
sepa¬
one
of
separate
Washington (D. C.) office."
Cleveland and Ohio
Securities
Robert W. Janshoff
"The
efficiency of the country
will be served
by some one over¬
all agency in
charge of all these
projects," he added, "and at a
later date I am
going to introduce
a bill to
stop further
construction
of
new
projects until we get an
overall public
power policy."
Senator
a
single
does
not
Thomas'
Federal
suggestion
Power
that
mean
of
agency
government
sponsored projects will
in view of the
OTIS & CO.
cease.
But,
Republican Party
economy
Established 1899
heavy
clear Federal
suggested
halt
projects until
Building
Cleveland 14, Ohio
PRospect 1571
there
policy. Recently, Senator Elmer
Thomas (D-Okla.) has
CLEVELAND STOCK
EXCHANGE
700 National
City Bank
TOLEDO
of
policy. Since
ness
a
DENVER
electric
trend
the
thority,
The First Cleveland
Corporati
MEMBER
CINCINNATI
alone
.
Corporation Bonds
Telephone Victor 2195
CHICAGO
UNION
COMMERCE BLDG.
CLEVELAND
COLUMBUS
TELETYPE
14
OHIO
ity"
are
.
L
BUFFALO
Open Wire
CV 565
or
in
D 500
Yet,
to
Troster, Currie
&
Summers,
New York
City
the
present
of
all
not
other similar undertakings
the offing.
despite
President
ment
and
of construction
likely that the pro¬
"Missouri Valley Author¬
posed
-
CHERRY 5050
drives
cost
kind, it is
CLEVELAND
stock
this
matter, the
utilities should
certainly endeavor Moreover, it removes
the specuavoid the past
errors made in
"ative
possibility of gains from
roadroad
capitalization, i.e. the "leverage."
Government rate reg¬
constant piling
up of bonded in- ulation has a
tendency to restrict
earnings below a fixed
maximum
on capital
investment leaving thus
little hope for
continued equity
appreciation to the
Canadian Bonds
NEW YORK
be
to
1004 BALTIMORE
AVENUE
375
means,
must
entails normally a
lower rate of
return to
stockholders, who bear
he greatest risks
in investment.
power
Teletype KC
income
It
by util¬
by most any other busi¬
ities
ses,
Bell
net
problem of
DISTRIBUTORS
KANSAS CITY 6,
MISSOURI
current
earnings
sufficient to pay
ample dividends
—otherwise stocks cannot
be sold
•;o
investors looking for
on
will
UNDERWRITERS, DEALERS
E. W. PRICE &
CO.
Satler, Moore, Leonard
& Bond
Corp.,,Boston
Ray Doheny, General Stock
such
slightly above $1% billions.
This
is
a
large
or almost
double amount of new
capital investment.
year's expenditure At least
According to a joint survey of and
two-thirds of it must be
greater than
the SEC and the
any
previous obtained from investors.
Commerce De¬ year. It
Whether
estimates the 1946
tie expansion
figure
partment, the new capital invest¬ will
programs of the in¬
be
exceeded
in
ment of electric and
1947, and dividual companies can be
gas companies should reach
carried
a total of more
than out will thus
one
our
and Mr.
the
opposition
Truman's
to
admonish¬
against slashing the Interior
(Continued
on
page 61)
m.
Newman, Brown & Co., New Orleans; Milton J. Isaacs, Straus &
Perry Brown,
Chicago; H. F. Burkholder,
Blosser,
CHRONICLE
THE COMMERCIAL and FINANCIAL
nvention Number
Equitable Securiries Corp., Nashville, Tenn.
Roger, Eckfeldt, White, Weld &
Boston; C. J. Odenweller,
Co., Boston; Edward F. Hormel, White, Weld &
Jr., SEC, Cleveland; Paul Rowen, SEC, Boston
What's Ahead foi Utilities?
subsidized
competition
agaihst
(Continued from page 60)
private utilities is uneconomical.
department's budget for power
Whatever policy Congress may
)rojects, the electric power induspursue with reference to Feder¬
is fearful that the Senate will
ally owned and subsidized power
ict to restore the substantial funds
•equested by the
Department's re$295,000,000 was cut to
for
,000 for the fiscal year
that the Interior Secre¬
nitely increased to meet heavier
costs imposed by employees' de¬
committees
Congressional
told a Sen| ate committee considering appro¬
priations that power generated at
'proposed sites could be sold for
"2 mills per kilowatt hour." This
early in May when he
statement
was
have
providing
mill.
roads.
will
Kaiser inter¬
the
at
low
rate
form
utility
in the case of rail¬
The only alternative
government
be
ward
of
done
Offering
service
experienced
an
in
Ohio
and
Corporation
Municipal Bonds, Stocks and
distributing
General Market
Land Trust Certificates
then
ownership
complete nationalization
of
of industry.
Union
have
an
interest in
OHIO SECURITIES
150 Broadway
NEW YORK 7
Commerce Building
CLEVELAND
When you
and
trading
operation—the first step to¬
and
at the Bon¬
this
the
capital into utilities as it has al¬
ready
Certainly,
The
investor
requirements.
on
eventually block the flow of
will
that con¬
that the
dam
squeeze
signed recently
been
ests could buy power
1
mands, higher fuel costs and gov¬
ernmental
considered decep¬
tive in view of the fact
neville
Exchange
ously kept down to a minimum
by regulatory bodies, or indefi¬
Significantly, it was
tary, Julius A. Krug, had "know¬
ingly given the wrong picture"
tracts
Members Cleveland Stock
needs,
their earning power must be pro¬
tected. Rates cannot be continu¬
week.
before
with public
accordance
the House
ginning on July 1, by
asserted
in
INCORPORATED
of public
to continue to expand
utilities is
be¬
WM. J. MERICKA 6- CO.
If private ow¬
operation
nership and
must
consideration
one
be borne in mind.
Interior
The
last
projects,
Administration.
14
BArclay 7-3550
Telephone MAin 8500
;
^
New York
Direct Private Wire to
CLEVELAND BANK STOCKS
or
;
Securities Listed Cleveland
Stock Exchange
call
CORB LISTON
Prescott &
Members New
Co.
York, Cleveland and Other
Stock
Principal
Exchanges
COLLIN. NORTON &
GUARDIAN BUILDING
CLEVELAND 14
Members of
V
New York
New York Curb (Assoc.)
Cleveland Stock Exchange
Stock Exchange
Chicago Board of Trade
Mcdonald &
1250
CO.
ESTABLISHED 1920
Bell Teletype—CV 97
PRospect 6300
company
UNION COMMERCE
BUILDING
LISTED AND
UNLISTED SECURITIES
CLEVELAND 14
S
Telephone .MAin
Bell
6400 Long Distance
38
IN OHIO,
Teletype CV 490
DETROIT, CHICAGO
AND NEW YORK
MARKETS
Primary Markets In
OHIO
SECURITIES
Toledo 4,
Members New
York
Ohio
Curb
Exchange
Telephone:
(Assoc.)
Private Wire to:
Branch Offices in
Canton
Columbus
Cincinnati
Lima
York 5, N. Y.
Telephone: BOwling
Adams 6131
Long Distance:
Bell Teletype:
Akron
New
York Stock Exchange
Cleveland Stock Exchange
New
30 Pine Street
508-12 Madison Ave.
Bell Teletype:
LD 71
Green 9-2432
NY 1-2978
TO 190
CHICAGO
—
DETROIT
-
NEW YORK
-
CLEVELAND
Co.,
62
THE COMMERCIAL and FINANCIAL
CHRONICLE
Thursday, August
28,19J
kiHI
;*//
&■.
:^
tBHiafcSrXv VyMK*'
Sjiysffci. a® J-Se^eMjEgfe'
NggSHEL
Charles Smith, Moors &
Cabot, Boston; Jack Shea, Jr., Shea &
Co., Boston; John
Maguire, May & Gannon, Boston
Mr.
Free
and
Mrs.
Dayton
Haigney, Dayton Haigney &
Co., Boston; Mrs.
Walter
Saunders, Dominion Securities
Corp., New York City
Enterprise—A Challenge
(Continued from page
7)
was
the land of
ever,
promise, opportun-
;y and freedom.
those bars to
Established 1933
Were it not for
is
far
superior
level of
the
undertake
economic
citizens, then free
free
we would be flooded
with people.
The meanest level
of living in this
country
governments
plan
immigration today
J. e. bennett &
co., Inc.
P.
and
press
become
and
life
of
speech
free
often
a
to the planned
program.
to Badness
more
their
and
elections
are
to
important that
test in which
a
system
can
is
an
It is not
the
engaged. Our
conflict
and
opposing
make
we meet
we are
in
economically,
menace
and Mr
politically,
spiritually with
system.
We
must
it
work to
by accident that such
strengthen and
political support our
living of a freedoms are not
foreign policy and to
allowed in the give
i ;ood
aid
many
countries
and
comfort
including Soviet dominated
to our
lose that have beat the
countries. friends in
other nations lest
drums Whether
they
they can be allowed be
oudest and longest
about the ad¬ under
submerged under the avalanche
a
democratic socialist sys¬ of
vantages of the socialistic system. tem
totalitarianism.
such as
the
UNION CENTRAL LIFE
BLDG.
average
even
to
'
CINCINNATI, OHIO
Let
those
who
of
Cherry 6363
r
CI
CINCINNATI'S OLDEST INVESTMENT
370
the
here
a
question:
If they are
Americans, ask them whether they
would rather live in
the United
States than
elsewhere,
f
and
why.
they live
in Europe, ask them
would happen if the facts
about this
country were
HOUSE
what
freely
available
and
immigration
were
not restricted.
So
long
as
YEARS
sure
UNLISTED SECURITIES
to
our citizens the basic
freedoms.
Once, how-
Geo. Eustis & Co.
undertaken by
will
Although the
present position
the
time level in
tivity
and the direction of
effort
into the "most fruitful"
vided
channels,
jobs.
said last week that this
"will in¬
still
volve some sacrifice
of individual
liberty—by
It
that
It
is
is
both
employers
doubly
make
we
important
our
important
because
within
we
this
tions which
on
system
the
wish
country
we
to
the
and
in
history. It has pro¬
legendary 60 million
the
But remember
that
hopped by that
the
we
are
narcotic shot
arm
administered by the
and by the method of
financ¬
war
ing the war. We
after-effects
are
experiencing
today
the
work.
volume of pump
priming that the
one
hand
preserve
institu¬
cherish, but
it is
world has
ever
the
of
greatest
We created
seen.
during the war an abundance of
purchasing power, much of which
is still held
by business and the
public, while at the same time we
shot away the
production which
responsible for that purchas¬
was
1878
power.
There should be little
wonder that
LEPPER & CO
we
have had
a
back¬
log of needs and of demand which
A
seemed
almost
insatiable
and
which even today still exists in a
great many lines.
cess of
Dealers in
CINCINNATI
Listed
and
SECURITIES
Corporate and Municipal
Supply of Money and Credit
At
ing
A.
CI 560
OHIO
The
eventually find
moment there seems to
England is by no means a fair
be little doubt
that the private
test, it is significant that Mr.
Attenterprise system is
lee, the Prime
working. It
Minister, in plan¬ is producing at the
ning for an increase in produc¬
highest peace¬
of
Established
MEMBER CINCINNATI
STOCK EXCHANGE
CHERRY 4070
we
workers."
deny
political
England
out.
we
rely primarily
upon a system of private
initiative
and
competition to
obtain
our
ivelihood there is but little pres¬
WE HAVE
SPECIALIZED IN
k.
that
abroad
or
achievements
enterprise system
private
answer
FOR
85
either
deprecate the
Unlisted
This
same
\
been responsible, for some selec¬
tive credit control.
May I remind
you that the
Securities
supply of
money
credit in this
1st
ex¬
purchasing power, and the
desirability of reducing it, has
NATIONAL BANK
BUILDING
CINCINNATI 2, OHIO
Tele. CI 291
phone Main
and
country is not and
under existing law be de¬
termined by natural forces. It is
subject to the over-riding controls
cannot
of
1056
administrative agencies of the
Government.
Whether
can
we
maintain continued prosperity and
stability depends importantly on
Field, Rickards
CINCINNATI
the wisdom with which we man¬
the
supply of money and
age
& Co.
credit.
Competition
CLEVELAND
CINCINNA Tl
We shall be
test
for
Investments
with a
that
we
year.
have enjoyed during the
Competition is
on
ns
way back. What will we require
in the future in
order to make
the
private
PARTNERS
system
enterprise
work
Frederic F.
soon
private
enterprise on
grounds less favorable than those
last
Frederic Latscha & Co.
Way Back
on
faced
CLAIR S. HALL & COMPANY
effectively? What will busi¬
nessmen need to do in order to do
their
work
part
to
make
the
system
effectively?
We
shall need first of all a
revival of the
spirit of enterprise
Latscha
and
risk-taking which is one of
prime justifications for hie
private
enterprise
system.
v ~
Richard
812
Traction
Thayer
Building
Cincinnati 2, Ohio
the
shall
Warren R.
Woodward
need
more
willing to invest
and
Clair S. Hall, Jr.
new
who
men
in
new
processes.
are
products
The
dead
hand
Henry J. Arnold
of
security has touched noonly the worker; too often it has
touched the investor. We have,
for
example,
voir
hands
of
an
enormous
reser¬
capital
in
institutions
in New
England. In I93e
THE COMMERCIAL and FINANCIAL CHRONICLE
invention Number
63
Vy;;#y y vy--y;
w
!y:|
\V'^
V"/^: <>
r4.v^^"
*
ik;,
•''*$
v
•
;':V^;;V,
i
:,v^v,V ,,.V:
1
k'
K ■'
t
■
L.-'r
i
•*
-,v
I^%VM
f%
Mr. and Mrs. Charles
Kelly, Carl M. Loeb, Rhoades & Co., New York City; John J. Mullen, Garrett,
iromfield & Co., Denver; Frederic F. Latscha, Frederic Latscha & Co., Cincinnati
d
but the time to be piling things which we will have to do
surpluses for the double pur¬ to preserve this system of ours.
pose of retiring debt and building Ours is the responsibility. Ours is
the opportunity, and if we miss
up a backlog of expenditures for
leaner times that we may face in this
opportunity we will have
wentments of insurance compa¬
local,
banks, government
trust
jnds, endowed institutions, inestment trusts and other investlent
institutions amounted to
ore
than
$10
billions. We
Hammell,
Scheuer, Scheuer & Co., Chicago; Mrs. and Mr. Elmer
Caswell & Co., Chicago
up
res,
the future. The recent controversy
and we are now trying
ust find,
to tap such funds for
se
in new and growing enterrises. We must have an instituonal substitute for the merchantme
way
over
budget and tax cutting
the
part of this test of our sys¬
tem.
This is not an appropriate
is
a
cuts, much
should all like to have our
time to make large tax
as
we
I see no reason,
tax bill reduced.
apitalist of the past who backed
however, why we should not have
romising local enterprises.
a thorough overhauling of our tax
To strengthen the spirit of risksystem to remove inequities and
aking on the part of the investor
to provide incentives to growing
,ve shall also need a
revision of
businesses and for modernization
he tax laws and especially the
and expansion of all businesses.
aws
and regulations governing
I know that some of the things
he retention of earnings by small
inns for the purpose of expan- that I have said are not likely to
ion, and the regulations govern-
be
popular. They are, I
think, the
missed
our
LISTED
Some long-time
students of Lin¬
his sublime
passages the one that closed this
1862
Message:
"Fellow citizens,
we
cannot escape history. We of
this Congress and this Adminis¬
coln
place
tration
among
will
remembered
be
in
personal
significance or insignificance can
spare one or another of us.
The
fiery trial through which we pass
will light us down, in honor or
dishonor, to the latest generation.
We shall nobly save or meanly
lose the last, best hope of earth."
spite
of
ourselves.
No
SECURITIES
J. E. MADIGAN & CO., inc.
FORMERLY
Members
W.
E.
18 E. 4th Street,
Sc
FOX
Stock
Cincinnati
CO.,
INC.
Exchange
Cincinnati 2, Ohio
Teletype CI 494
Telephone Main 1627
...
allowable depreciation.
ng
We shall need a revival
above all
tition and
a
of comwilling-
ess to accept the dictates of
'competition. For business this
(
^
Unlisted Stocks
for lower costs, for
improved product. It means
lower prices,
an
Corporation Bonds
Municipal Bonds
for
constantly
striving
means
CINCINNATI
ytv;-, V
labor, for agriculture, and for
many businesses a willingness to
give up support from the public
purse. It may mean lower tariffs,
elimination
subsidies
of
on
Nelson,Brcwninc-^Cq
farm
elimination of restrictions
what work. For
there
situations in
to
sufficient
well-known
of the building
of
numbers
our
to
meet
Offices:
Branch
MEMBER CINCINNATI
6820
L. D. 107
Established 1887
provide reasonably full em¬
ployment with rewards to labor,
management, and capital which
make it continually attractive. If
business cannot remain reasonably
■■
'I:-.'
*
CINCINNATI 2, OHIO
times then we
Ingalls Bldg.
enough discontented
People to give dangerous support
Greetings to the Convention
arrangements.
A system of free enterprise has
been continually attacked because
Specialists in
jt does not provide enough "built-
Ohio Unlisted Securities
in''
stability. We have got to find
building into the system
enough stability to keep it attrac¬
tive. This is not an impossible job.
We can go a long way by smooth¬
ing out the peaks and valleys in
Public construction projects of all
t'-'Pes. Your influence could help
«
great deal to smooth out the
means of
Peaks and valleys
in capital ex¬
penditures because financing often
dictates the timing of such ex¬
WALTER, WOODY
and
Land Trust Certificates
HEIMERDINGER
403 Dixie
Terminal
Building
CINCINNATI 2, OHIO
Phone
Bell
WI
Main 5072
System
Teletype CI
10 \y\y Viytfiuu
SUCCESSORS TO J. S.
188
Members
penditures.
Specializing in the
Backlog for Leaner
Times
same
budgets, Fe4§T3l, State
purchase and
First National
trading of municipal
and municipal
of all states.
Telephone: Main 4422
revenue
line, this is the
appropriate time not only to bal¬
ance
PArkway
OHIO
*
must
to alternative
Teletype CI 260
CINCINNATI 2
major test of the system,
however, is not the test of method,
but the test of results. The system
at all
STOCK EXCHANGE
18 East Fourth Street
Seasongood £r Mayer
The Test of Results
CO.
THE W. C. THORNBURGH
A
Along the
"
the
dom.
a
■
economy.
the destruction of individual free¬
Building
.' .' '
•
Cleveland—Akron
correction of these abuses without
Prosperous
shall
find
'
Telephone Ch 6422
Teletype CI 366
learn
That the
general public is becoming aware
of the necessity of action is evi¬
dent and it is hoped that we may
obtain
fairly
and
sincerely
a
needs
.
CINCINNATI 2, OHIO
apprentices are not
the trades in
trades where
allowed
are
some
.
Municipal Bonds
CAREW TOWER
who may do
instance
.
.
KENTUCKY
investment
products. It means, especially for
labor,
...
Listed and Unlisted Securities
for
on
CINCINNA TI
chance.
and
securities
TODD & CO.
Cincinnati Stock Exchange
Bank Bldg.,
Cincinnati 2, Ohio
Teletype: CI 368
64
THE COMMERCIAL and
FINANCIAL CHRONICLE
Thursday, Augu
Wi
-.<
•
28,
SKI
-
VNE
m
111
i,
iii
'J&S
yX
Jsl
j
1
m
Mrs. D. C.
Leahy (guest); Mr.
and
Mrs. Arthur C.
Boston
Murphy, Bond & Goodwin, Inc.,
Kenneth B. Schoen, J. C.
Bradford & Co., Nashville,
Tenn.;
Harmet, A. A. Harmet & Co.,
Mrs. & Mr. Alfred
A,
Chicago
Local
CONRAD, BRUCE
&
CO.
Established 1908
1411 Fourth
Teletype—SE
Of Affiliated NSTA Clubs
:
Baltimore, Md.
James W. Means
Trust
Avenue, Seattle 1, Washington
Bell
Atlanta, Georgia
Municipal Representatives
Boston, Mass.
Gustav Klein
Company of Georgia
Mead, Miller &
F. Brittain
Co.
F. Brittain
60
Kennedy
Kennedy &
*
Charlotte, N.
Francisco
Los
Portland
C.
R. S. Dickson &
-
Angeles
Co., Inc.
Seattle
mi
Co.
*
Edward B. Wulbern
,
San
*
V
if:
$
*
Chicago, 111.
Don G. Miehls
MUNICIPAL BONDS
Oregon Securities
We have
a
continuing interest
in all
William Blair & Co.
'■
•
.
V
if:
*; ' '
Oregon
Neil Ransick
Unlisted Stocks & Bonds.
Charles A. Hinsch &
Co., Inc.
*
Wilcox
& Balfour
Building, Portland 4, Oregon
Bell System
Teletype PD
60
*
Joe B. Warren
FIRST
OF
Dallas Rupe & Son
NATIONAL
PORTLAND,
BANK
*
/ *
OREGON
Charles C. Bechtel
Sattley & Co., Inc.
*
TRADING MARKETS
financial industrial
fund, Inc.
and BANKS
,
Fund
;
.
Andrew L. Tackus
♦
INVESTMENT SERVICE
CORPORATION
650
Simpson & Company
Established
*
Seventeenth St., Denver
2, Colorado
Co.
*
Victor H. Zahner
Teletype—DN
Soden-Zahner Co.
Associated Dealers
CHARLES KING &
CO., NEW YORK
ROBERT J. LONG &
CO., ABILENE, KANSAS
W. E. BELL &
CO., LINCOLN, NEBRASKA
Colorado
Bell
*
Kansas City, Mo.
1929
3101
*
Eddlemann-Pollok
Principal Underwriter
Telephone—KEystone
*
Houston, Texas
Lewis W. Pollok
SECURITIES
California Building,
Denver 2,
*
Putnam & Co.
Shares and
Capital Accumulation
Plans
COLORADO and
WYOMING
B. E.
*
Hartford, Conn.
For
In
*
Detroit, Mich.
H. V.
BROKERS, DEALERS
*
Dallas, Texas
Bond Department
Russell, Hoppe, Stewart
*
Cincinnati, Ohio
157
R.
H.
KNOOHUIZEN
&
*
Los
CO., PLAINVIEW,
TEXAS
W. W. McADOO
& CO.,
CARLSBAD,
John F.
N. M.
*
*
Angeles, Calif.
Kelsey
William R. Staats Co.
*
*
*
Louisville, Ky.
Brereton, Rice
MUNICIPAL AND
CORPORATE
&
Company,
Inc.
P. M.
and
MUNICIPAL
*
SECURITIES
CORPORATION BONDS
Securities
of the
R. W.
Spragins & Co.
Rocky Mountain Region
*
Minneapolis,
*
*
Mil
Oscar M. Bergxhat
TELEPHONE KEYSTONE
3269
*
R. Wendell
Spragins
1912
Special interest in
LONG DISTANCE
DENVER LD 81
TELETYPE DN 244
*
Memphis, Tenn.
INVESTMENT SECURITIES
SINCE
Conway
The Bankers Bond
Co., Inc.
FIRST NATIONAL
BANK BUILDING
,
DENVER
2,
COLORADO
Sidlo, Simons, Robeits & Co.
Allison-WilliamsvCo.
*
First National Bank
Bldg., Denver 2, Colo.
Teletype
k'*,
Nashville, Tenn.
TAbor 6271
DN
63
Quitman R. Ledyard
J. C.
Bradford & Co.
THE COMMERCIAL and FINANCIAL CHRONICLE
Convention Number
Frank J. Murray,
Day, Stoddard & Williams, New Haven,
Bob
Larry
A1
Grindel, Francis I. du Pont & Co., New York
City; Gus Schlosser, Union Securities Corp., New York
Conn.; Gus
Roggenburg, Roggenburg & Co., New York City; John
Neal, Wyatt, Neal & Waggoner, Atlanta, Ga.;
Moore, J. Arthur Warner & Co., Boston; Lex Jolley,
Johnson, Lane, Space
Co., Atlanta,
&
M.
Ga.
Doyle,
Merrill
Mayer,
City
J.
William Roos
';>■
*
*
New
*
*
*
*
*
San Francisco, Calif.
*
.
,
General Market
Securities
f;Braun, Bosworth & Co.
*
•
SEATTLE
EUGENE
SPOKANE
PORTLAND
Harry J. Peiser
John R. Lewis, Inc.
Haupt & Co.
*
*
Brokers
*
•
Underwriters
•
Dealers
1006
SECOND AVENUE
Orlando, Florida
SEATTLE
TELETYPE:
F. Monroe Alleman
Leedy, Wheeler & Alleman, Inc.
*
*
Beane,
Dealers and Brokers in
Carl F. Bargmann
American Trust Co.
New York, N. Y.
Ira
&
*
Toledo, Ohio
Harvey J. Franklin
Kingsbury & Alvis
•'
Foster & Marshall
*
*
(•
J. Wallace Kingsbury
Fenner
City
Donald A. Meyer
G. H. Walker & Co.
Orleans, La.
Pierce,
York
Stanley
Seattle, Washington
E. Kenneth Hagemann
MacBride, Miller & Co.
City;
Co., New York
Lynch,
New
St. Louis, Mo.
Newark, N. J.
&
Hardy
TRADING
*
PACIFIC
MARKETS
SE
4
PHONE: ELIOT 3040
105
MAINTAINED
NORTHWEST SECURITIES
Philadelphia. Pa.
Ellwood
S. Robinson
.
Phillips, Schmertz & Robinson
*
*
Washington and General Market
*
Pittsburgh, Pa.
Municipal Bonds
State and
Silas J. Titus
Phillips, Schmertz & Robinson
*
*
*
Portland, Oregon
FOSTER & MARSHALL
Charles N. Tripp, Jr.
MEMBERS
*
*
*
New
Richmond Va.
York
820
Mark A. Smith
F. W.
U. S. Government Bonds
Municipal and Corporation Bonds
Tripp & Co., Inc.
Stock
Exchange and
SECOND
New
York Curb
(Associate)
I
'
t
-
AVENUE, SEATTLE 4
BOND DEPARTMENT
Telephone SEneca 0680
Teletype SE 482-483
v.';
:
:S
:
Craigie & Co.
Bank of Commerce
The National
of Seattle
SEATTLE 11,
PACIFIC NORTH WEST
COMPANY
WASHINGTON
Telephone Elliott 1505
Teletype SE 264
UNDERWRITERS
DISTRIBUTORS
DEALERS
Markets maintained in
The Pacific Northwest
since 1913—
State and
through its predecessor
Municipal Bonds
companies, Ferris & Hard-
PACIFIC
NORTHWEST
grove,
established
1913,
and Drumheller, Ehrlich-
SECURITIES
man
U. S. Government Bonds
Company established
AH SEAT 187-188
EXCHANGE BUILDING
SEATTLE
SPOKANE
PORTLAND
ABERDEEN
YAKIMA
BELUNGHAM
TACOMA.
EUGENE
Seattle-First National Bank
DEPARTMENT
BOND
.
I
.
•
Seattle 4,
MAin
3131
•
•
■
Washington
Teletype SE 489
.
66
'
THE COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August
28, 1947
Roster of Advertisers in NSTA Convention
Issue
ATLANTA# GA.
(Clement A.) & Company, Inc..
Hilsman (J. H.) & Co., Inc
53
Hickey & Co., Inc
Holley Dayton & Gernon
Langill & Co
A
Robinson-Humphrey (The)
53
Lizars
53
O'Connor
Evans
Trust
53
BALTIMORE, MD.
Baker, Watts & Co
Garrett (Robert) & Sons
Mackubin, Legg & Company
Miller
&
BOSTON,
(E. M.) & Co
(F. L.) & Co.,
31
35
32
—
&
Co.—
&
Co.
N.
Company
33
31
Weiss,
Work
&
W.
C.)
63
—
/
31
33
CLEVELAND,
First
(The)
Gottron,
33
McDonald
Y.
Otis
Cleveland
Russell
&
&
Co,
Pomeroy, Inc
Prescott
&
—
61
—
Inc
61
—
Co..
._
44
—
Rauscher, Pierce
Rupe (Dallas) & Son
44
Company
44
Sanders & Newsom
&
Christopher
Price
-—
Comstock & Co.———
Co.—
.
54
.
54
O'Rourke, Inc., T.
& Co.—
&
& Co.
46
—
Co., Inc
—
Fewel
—
& Co.—
—_
_____
45
46
46
52
&
Co., Inc
64
_
Investment Service
Corporation.
Sidlo, Simons, Roberts & Co
&
Inc
60
—
Co.__
&
Company
——~
55
55
Co.—__—
NEW
56
Adler, Coleman
56
—
Allen
57
25
(William R.) Co
Turner, Poindexter & Co.—;
57
Bonner
58
Wagenseller & Durst, Inc.—
Co...
14
16
& Co.,
:___
Inc.—19
——_——
&
—21
___
19
Gregory
Burr &
Company, Inc._
(The)
Hilliard
(J.
(W.
Bond
J.
B.)
L.)
&
Co.,
&
&
—__
,
Inc
du
40
Son
Pont
(Francis I.)
40
(Berwyn T.) & Co., Inc._
O'Neal-Alden & Co., Inc,_„
Smart & Wagner
Eastman, Dillon
40
—
Co
&
Co.—__T__
First
& Co
41
Fox
(P.
F.)
Freeman &
40
&
Scott, Horner
&
Grace
Mason, Inc.——
43
Greene
and
Bank
27
&
Co., Inc
& Co., Inc
19
Bros.
27
—_
back
cover
12
28
Inc
27
Company of North
22
2
America
20
Underwriters Trust Co
Union
Securities
Corporation
Unterberg
(C.
Van
Ingen
(B. J.)
Van
Tuyl
&
E.)
&
11
Co
29
& Co.,
Inc.—
25
Abbe
Weinberg
(S.)
Wertheim
&
White
25
27
&
Co
28
Co.——
(J. G.)
&
8
Company, Inc
25
(M.
S.)
&
Co
29
-
(Dean) & Co.—
Wood, Gundy & Co., Inc
Young, Aal & Golkin
15
16
29
21
17
ORLANDO,
16
15
14
8
of
27
27
(Spencer) & Co
Troster, Currie & Summers
Trust
Wien
24
Company
National
13
& Co
(Hart) & Co
Stamm LA. L.) & Co
Stoltz
(C. E.) Co
FLA.
Leedy, Wheeler & Allejnan, Inc
PHILADELPHIA,
24
Geyer & Co., Inc
Glore, Forgan & Co.—
VA.
23
Co., Inc
52
21
Co
,
LYNCHBURG,
A.)
2
is
Witter
17
(The) Boston Corp._
Fitzgerald & Company, Inc.—
40
—
(G.
u
26
Curtis
Seligman, Lubetkin
21
14
Corporation.—
Torrey
Dominion (The)
Securities Corporation
Cohu
KY.
&
&
Smith
22
—
Central National
LOUISVILLE,
7
6
Buckley Brothers
57
21
19
Blair &
Co., Inc.
Blyth & Co., Inc
Boland, Saffin & Co.—
57
—
YOI^K CITY
Bacon, Stevenson & Co
Barrington & Co
——_—57
Staats
(A. E.)
&
26
26
Trask
Company
Bache & Co
56
56
—_
&
Ames
57
(W. C.)
Strauss
56
:
64
64
55
55
56
Marshall & Co
(Revel) & Co.—
Morgan
LA.
;
j5
^
2g
& Co
Quincey (Chas. E.)
Roggenburg & Co
& Co., Inc
Jones, Inc
&
New
York
Company—
23
24
Boenning
Brooke,
&
PA.
Co
Stokes
36
&
Co
38
Byllesby (H. M.) and Company, Inc.— 36
Caughlin (Edward J.) & Co
38
Hess, Blizzard & Co., Incorporated
36
Hopper, Soliday & Co
—37
Montgomery, Scott
Morgan
(W.
L.)
Co._:
37
Newbold's
(W.
Co.—
38
&
(F. J.)
Phillips
&
&
Morrissey
Co
38
H.)
Son
&
Co
39
—
(Samuel
K.) & Co
& Sons Incorporated—
Co
39
—
Brawley, Cathers
Rollins
&
23
____,
Company
(Frank C.)
Saxton
Dane, John
Newman, Brown
23
National City
Pitfield
34
ORLEANS,
1
& Co., Inc—
Paine, Webber, Jackson
Pflugfelder & Rust
& Co
2g
___
Bank of New
York,
National Quotation Bureau
O'Kane, Jr. (John J.) & Co
CONN.
Weil & Arnold
ANGELES, CALIF.
Co._—
Kraft (Oscar F.) & Co
Marache, Sims & Speer
,
Simpson (B. E.)
& Co.,
64
—
(Chas. W.)
2
Moore
COLO.
HAVEN,
NEW
Co—
&
Bankers
Nelson
DENVER,
Brereton, Rice
&
Bingham, Walter & Hurry
Buckley Brothers
Cass (Quincy) Associates
Edgerton, Wykoff & Co
Lyons
45
C.)
54
DAYTONA BEACH, FLA.
44
45
Cruttenden & Co.
Davis (Paul H.)
W.)
V
—
(B.
Akin-Lambert
Company,
Doyle, O'Connor
(E.
Miller
54
54
44
Inc———
NEW
Scranton
Maxwell,
TEXAS
Crummer &
Company, Inc. of Texas—
Dittmar & Co
Brailsford & Co
Fuller (William A.)
60
61
67
CHICAGO, ILL.
and
60
_2, 60
2
Allen, Swift & Co., Inc.—
Allyn (A. C.) and Company,
Byllesby (H. M.)
Incorporated
63
41
52
&
The
41
KANSAS CITY, MO.
LOS
Corp._
—_
67
Corporation—
—23
Co
& Co
____
(Wm. J.)
Moore
41
j
&
(Joseph) & Co._
Mitchell
TENN.
Commerce Union Bank
Equitable Securities Corporation-
Scharff
Co
& Co.,
(Clyde C.)
OHIO
Company
(Wm. J.)
&
Pierce
63
Heimerdinger
NASHVILLE,
*
,___3
M.)
(Frank C.)
McManus
FLA.
63
Co
66
Nashville Securities
Company
50
62
63
Co
l
2j
_____
Maxwell, Marshall & Co
McGinnis, Bampton & Sellger
MONTREAL, QUE., CANADA
50
Corpo¬
Co.———I"
(Laurence
Mericka
ration
63
Marks
in
25
~~
2R
&
Maher & Co
49
49
Masterson
&
I2II
(F. H.) & Co., Inc
Laird, Bissell & Meeds
Lord, Abbett & Co., Inc.—
49
—
Piper, Jaffray & Hopwood—;
IN,D.
JACKSONVILLE,
M.)
Roller
34
—
City Securities Corporation
Indianapolis Bond and Share
62
—
Co
DALLAS,
(A. A.)
62
62
S.)
Thornburgh (The
Walter, Woody &
33
_.—
&
Tifft Brothers
(A.
iq
To
Snyder—
(Joseph) & Co
Kidder
35
62
33
Hamlin & Lunt
62
&
Mericka
BUFFALO,
Inc._
& Co.—
(Clair
33
Townsend, Dabney and Tyson_.
Wainwright (H. C.) & Co
Woglom (A. G.) & Co., Inc
(William)
34
Co
'
&
Janareli
45
MINNEAPOLIS, MINN.
Allison-Williams Company—
Dain (J. M.) &
Company
Middlebrook
&
Ingalls
Company
51
_
Inc
Hulsebosch (G. F.) & Co
Hutton (W. E.) & Co
51
.
HARTFORD, CONN.
&
Putnam
Wisconsin (The)
Greenshields
(Frederic) & Co
Lepper (A.) & Co
Madigan (J. E.) & Co., Inc.
Nelson, Browning & Co
Seasongood & Mayer
35
Sheeline
&
51
.
Watling, Lerchen & Co
Coburn
41
;——
MILWAUKEE, WIS.
51
.
;
INDIANAPOLIS,
Hall
35
Inc
Schirmer, Atherton
Schoellkopf, Hutton
Trubee, Collins & Co
48
..
Field, Richards
Latscha
35
(F.
Raymond & Co
Rollins (E. H.) & Sons
Incorporated—
Harmet
48
48
Haupt (Ira) & Co
Hill, Thompson & Co.,
Hoit, Rose & Company
40
.2, 51
(R. C.) & Company(Charles A.) & Co
—48
& Co
TENN.
Bullington-Schas & Co
(The) National Bank
First
50
.
O'Donnell
Parcells
50
47
(J. E.) & Co.,
Eustis (Geo.) & Co._
30
Corp
Brittain) & Co
& Co., Inc
Lyons & Shafto, Inc
May & Gannon, Inc
Blair
48
Moreland & Co
50
.
.
Mercier, McDowell & Dolphyn—
CINCINNATI, OHIO
31
Bond
D.)
Co
Bennett
32
Homsey Co
(Paul
Welsh, Davis & Co
Zippin & Company, Inc
35
(H. D.)
Putnam
Webber-Simpson
31
-i_
Estabrook
Newton
Smith, Burrls &
Straus & Blosser
Swift, Henke & Co
I
MEMPHIS,
Buhl Land Co
7
First of Michigan CorporationMcDonald-Moore & Co
MASS.
Incorporated
Day (Chas. A.) & Co., Inc
Draper, Sears & Co
Kennedy
48
42
Coffin & Burr,
Knox
47
47
Company
43
Sheely (Harry M.) & Co._
Bros. & Boyce
Pont,
47
42
42
Stein
du
47
43
Co.—
& Co
General Stock &
46
& Co., Incorporated—
(J. J.)
Sincere and
42
,
DETROIT, MICH.
i
2
& Co
Rogers & Tracy, Inc
Rollins (E. H.) &
Sons, Incorporated—
Sills, Minton & Company, Incorporated
Company-
Company of Georgia
Mead,
(Rawson)
44
46
Company
Smith
(E.
H.)
(E.
Stroud
W.)
&
Taggart
&
37
39
—
Company,
Incorporated
37
(Charles A.) & Co., Inc.;
37
PITTSBURGH, PA.
Fauset,
CANADIAN
GOVERNMENT
-
MUNICIPAL
Canadian-American
-
CORPORATION
BONDS
The
facilities
of
our
Trading
Steele
Masten
(A.
First
(The)
ST.
Member Montreal Slock
TORONTO
Greenshields
Exchange
& Co Inc
64
MO.
Co
59
2
&
Co
PAUL,
Company,
ST.
PLateau 5811
59
59
59
59
MINN.
49
Inc
PETERSBURG, FLA.
Securities
SAN
Dittmar
Russ
&
Company
ANTONIO,
& Company
Company, Inc.
SAN
52
TEXAS
54
—
55
FRANCISCO, CALIF.
Brush, Slocumb
Railroad, Public Utility and
&
First California
Strauss
(J.
S.)
Company-
53
&
58
Sutro
&
Co.
58
—
Co
Co.
58
SEATTLE, WASH.
DEALERS
Industrial Securities
in all
....
-
■
.
•
•
•
.
Private Wire Connections
64
Balfour.
Co
D.)
ST.
Florida
CANADIAN
&
d'Arme», Montreal
Telephone
LIMITED
Bank
Newhard, Cook & Co
Scherck, Richter Company
Taussig, Day & Co., Inc
Kalman &
McLeod,Young,Weir & Company
&
&
(Edward
Investment Dealers
50? Place
2
LOUIS,
Dempsey-Tegeler
Jones
Greenshields & Co
39
39
National
;
BUILDING
ADELAIDE 5821
39
Company
Russell, Hoppe, Stewart
Fusz-Schmelzle
CANADIAN BANK OF
COMMERCE
Co.
&
PORTLAND, ORE.
Canadian-American
trading service, maintained by private wire
to New
York, are available to
dealers,
banks and institutions.
ACTIVE
&
E.)
Thomas & Company
Young & Co.. Inc
SECURITIES
\r
•
Slocks
"•
i
•
v
•'•"./
'
*'
-
•/
""•.
•
Conrad, Bruce &
Foster
&
Co.
64
—
Marshall
"
Lewis,
•
!.' •>'
Bonds
'•
Inc., John
National (The) Bank of
7,
65
65
Commerce
Seattle
Pacific Northwest
Company
Seattle-First National Bank
of
--
65
65
65
SPARTANBURG, S. C.
to
New
York
Law
and Montreal
(A.
M.)
&
53
Company
TOLEDO, OHIO
Collin,
Metropolitan Building
GEO. WOODHAMS &
CO.
Elgin 0161
Members Toronto
Stock
TORONTO
Montreal
Quebec
Ottawa
Hamilton
69
,
London
New York
YONGE
Exchange
Norton
61
&
TORONTO,
Brawley, Cathers
McLeod,
Young,
ONT.,
&
CANADA
66
Company—
Weir
&
C9roPa®y«
66
STREET, TORONTO
Telephone—Adelaide
Woodhams
^Geo.)"
&
Jones
(Robert
C.)
&
66
Co
WASHINGTON,
5441
D.
C,
43
Co
YOUNGSTOWN, OHIO
-
2
THE COMMERCIAL and FINANCIAL CHRONICLE
Number
Convention
The Tax Battle
that any time when
conditions will permit of
tax reduction is a good time to
do it. Taxes are always burden¬
some, and when they are high, it
view
budget
that
means
prived of
a
people
the
the
with
istration
been
1947.
for
un¬
yond
ap¬
not
1948
In
which
come
Be¬
the
We need
improvement.
only more capital in the quan¬
sense,
but
also
better
titative
the
invalidated
had
is
replacement
mere
matter of
forms
meantime, the rise of national in¬
estimates
the
of
capital.
The
continued
growth of productivity per man-
the
the
and
hour
which
advance in
is
so
essential
to
an
people are free to spend their own
The simple fact is that taxation
public spending is a transfer
which does not change the
overall total of buying power in
and
process
the community, and
1946, were at an annual rate of
billion in the first half of
1947.
Because of a complete re¬
Admin¬
$191.1
their sav¬
of
that time
mating,
throughout the income scale in a
a greater part of
government. No mat¬ series of tax revision acts. The
nation was prosperous then, but
ter how much or how little one's
income, it is more satisfying and it is prosperous now. The Presi¬
more inspiring
to be able to de¬ dent's mid-year economic report
cide what to do with it than to make this plain to those who had
have some
one
else make that not already been aware of the
decision. Through taxation, gov¬ fact. In view of this unparalleled
ernment rather than the individ¬ prosperity there is no reason why
figures
these
yields.
Nevertheless,
that with
clear
As
not
are
payments,
come"
as
is
it
it
or
standard of
well-
at
had
which
ten years or so ago
the
seems
called,
ployees and beneficiaries fill the
gap.
Government buys cement
final point in this connec¬
wind.
whether
Our
we
such
and other materials to build roads
citizens
ment, etc., to build a garage or a
factory. Altogether, there is only
negligible difference, at most,
in the aggregate demand, because
of taxes. If they are reduced, the
has gone with
concern
now
a
higher rate than heretofore,
Federal net receipts in 1948
much
tainly
is
a
is
shall be able to sup¬
people
ment
than
vidual income tax throughout the
income scale.
the
The first was
reduction.
tax
for
proposition that the debt must
reduced. The second was the
Stress is
tion
laid both upon debt re¬
the
to
bill
tax
because
of
amount alleged bad timing was that there
look
forward
proposition that with full employ¬
ment, no present opportunity for
additional capital investment ex¬
in
that
amounts
the
even
can
all
the
a
1
not,
was
good
bill.
concession
much
It
to the
that taxes
of income
be at least proportion¬
demagogic
on
H.R.
respects,
made too
viewpoint
upper
should not
ranges
It did not attack
the present in¬
tax, which is the rate scale
ately reduced.
the
basic
come
itself.
evil
Its
made
of
advocates
clear
more
that this bill
was
should
than
have
they
to be in the
did
same
from the position with respect to the ulti¬
reduction now mate revision of the individual
the existing tem¬ income tax as was the 25% reduc¬
to
relief
essary.
spend¬
utterly
burden of taxes, tax
of spending that is
between debt reduction and
conclude:
To
said to be nec¬ is now full employment, hence no would add to
Although the war ended present opportunity for additional porary inflationary pressures."
in 1945, war obligations are still capital investment, hence no pres¬
With
all
due
respect to the
being used as a smoke screen to ent need to release personal in¬ learned council of economic ad¬
come
for that purpose.
This is
ists, hence there is no present explain and defend the spending;
visers, this is complete and utter
particularly in the second a concession of the obvious fact nonsense. It implies that to let
need to provide additional funds and,
that under present tax rates, very
the people spend more of their
through greater savings. The third veto, the changed foreign situa¬
tion is brought in. Even the Ad¬ little individual saving is possible own incomes rather than let gov¬
was the proposition that tax re¬
ministration will have to choose and small likelihood exists that ernment do the spending, would
duction now would be an infla¬
be
govern¬
is
It
Conclusion
cannot
duction and upon the large
but
more
less.
public spending.
reduction
tax
duction
spend
spends
naive to say that private spending
will tend to push prices up more
shall not unless there
drastic revision of the indi¬
we
and debt re¬ will be much above the actual
The Inflation Argument
proceed together. amount realized in the fiscal year
This view is rejected however, in 1947. Final returns on the spend¬
The third basis of opposition to
the second veto message, where ing for 1948 are not yet in, but
tax reduction now was that such
it is said that there will not be the
preliminary count indicates a course would add to the infla¬
respective incomes for our own
a
sufficient surplus to permit of approximately $35 billion.
Even
uses.
This tends to stimulate the
tionary pressure.
This curious,
both reductions.
The only basis if the receipts for 1948 should be
and in the writer's opinion, wholly
production of more income, with
for such an opinion is that the no greater than the Joint Com¬
the result that the aggregate pub¬
erroneous notion got into the re¬
mittee estimate of $43.6 billion,
lic revenues may even be greater, spending will not be sufficiently
cent
economic
report, probably
reduced, and the President does there would be a substantial mar¬ because it is the present party
despite the reduction of tax rates.
gin for both debt reduction and line. In that
not expect this to happen.
Three
major points were de¬
report the following
There is an odd inconsistency tax relief.
is said:
veloped in support of the conten¬
The second ground for opposi¬
of emphasis in the veto messages.
"While
the
American
tion that this is the wrong time
people
both
the income by work¬
ing, or saving and investing, does
the spending. As taxes come down,
we all have a larger share of our
public buildings, whereas the
would have used the ce¬
and
vogue
ply the capital that will be re¬
quired for the production of the
new
goods which, technological
advance has made possible.
Cer¬
"personal in¬
now
a
doctrine
continuation of
a
income
the
the
tion, there are the new fields of
enterprise to be exploited and de¬
veloped.
The
mature
economy
strictly comparable with the data
formerly used in calculating tax
the time for
uals who get
which, there¬
fore, can have no effect upon
prices, or upon the demand for
goods and services. A large part
budget estimates of net
individuals, which were
$177.2 billion in the calendar year
Notwithstanding
which
later
contihues
1947
for
ments to
1920's
purposes
work
to
have
had
it
as
being laid out for
job of
enormous
an
rebuilding and replacement.
pushed for
debt retirement, it proved possible vision of national income concepts,
to grant more and more tax relief definitions, and methods of esti¬
out above, they
As pointed
desirable
achieved.
zeal
the
During
these
of
were
larger share of the
fruits of their labor or
ing.
alternatives.
both
de¬
are
parently
income.
face
we
of the money taken in taxes is
being requires that the workers paid out in salaries, benefits, set¬
tlement of contractors' claims, and
Mr. Baldwin now shows to have receipts for 1948 are likely to be be equipped with better tools as
fast
as
invention
makes
them interest on the public debt. Tax¬
had an ulterior purpose.
revised upward as were those for
Improvement of quality payers can buy less, because of
Tax reduction and debt reduc¬ 1947. The mid-year economic re¬ known.
the taxes, but the government em¬
tion are not mutually exclusive port shows that the income pay¬ requires additional investment.
timing.
Toiiegin with, this writer holds
the
January, 1947, the pattern of
der-estimating receipts was
and services than exists when the
that
fiscal year 1948 was published, in
the budget sent to Congress in
greatly superior to the Russian
(Continued from page 11)
that this is the wrong time for army in equipment, though not
tax reduction.
Cynics may read in numbers. The behavior of the
into this statement the interpre¬ Customs Bureau, the Bureau of
tation that 1948, an election year, Internal Revenue, and other agen¬
would be considered to be the cies in their resistance to budget
right time. Such a construction cuts was quickly detected for what
is passed over here, in order to it was, but many people here as
examine the economic logic which well as abroad took seriously the
is used to support the criticism allegations about defense which
of
roads, and the decrepit condition
of railroad rolling stock, to realize
the Potomac
on
67
tion
across
the board which was
authorized in connection with the
broad revision of the tax rates by
the
Act
Revenue
of
1924.
As to
timing, it may already be too
to
war
sential
be
late
begin that relaxation of exces¬
sive
taxation which is so es¬
to
the
provision
of
the
additions to the capital fund upon
produce greater inflationary pres¬
increase
saved will be invested in venture¬
sure.
It implies that when gov¬ which the future prosperity and
the danger of a recession.
The ing as the main line of argument
some undertakings.
The argument ernment takes
purchasing power well-being of the nation depend,
conclusion was reached that while against tax relief. No matter how
if we are to escape the conse¬
reveals, however, an inadequate
away
from the people, through
employment and production con¬ high taxes are, there will be no
understanidng of how our complex taxation. ?n1 spends it, there is quences that are most likely to
tinue at present levels, tax rates debt reduction if all of the money
For one a smaller total demand for goods ensue from a deficiency of capital.
is soent for current purposes. And economic system works.
should remain as they are and the
if the spending is cut, then per¬ thing, there is a necessary and
whole
tionary force which would
to
surplus should be applied
debt. It was further con¬
the
cluded that when signs of a reces¬
haps
as
Congressional commit¬
charge of the tax bill.
before the
tees
Red
in
Debt
Reduction
reduction
argument
of
Herring
debt
The
has been, in a sense, a red herring
across
the
trail.
Thus far, Mr.
containing
budget
the
On
revenues.
provision
a
for
of surplus
contrary, he
out
retirement
debt
submitted
not
has
Truman
has
apparently been more con¬
cerned with maintaining a high
level of
Federal spending than
else. The evidence
complete lack of
cooperation with the Congress in
with anything
of this is his
its attempt to reduce
Federal ex¬
penses, an attitude revealed
the absence of curbs upon the
forts
of
ficials to
by
ef¬
administration of¬
defeat the Congressional
high
as
have a cut in taxes
inevitable lag between the time of
reduction and the accumula¬
tax
in the debt.
tion
would be the time for
tax reduction. This viewpoint was
sion appear
emphasized by Secretary of the
Treasury Snyder in his testimony
can
we
well
Foreign Aid Program
does
not really require an increase of
total spending. It does involve a
rearrangement of priorities in the
spending program. If it is neces¬
sary to devote several billion dol¬
lars to European aid, then an ap¬
proximately
equivalent amount
should
be
squeezed out of the
domestic spending. When the av¬
erage family that has saved up
enough money to buy a new car
The
foreign aid
finds that
car
member of the family
operation,
sensible thing is to give up the
must
the
a
program
undergo a costly
for
the
time
being.
Aid
to
Europe is analagous, for the na¬
tion. to the unexpected operation
for the family. We can easily cut
savings out o.f
additional
of
income.
There
ig
a
further
between the accumulation
conversion
final
into
capital
investment.
cut until
of
equipment
A
a
cut
depression ap¬
Secretary Snyder urged,
would be too late to be of help
in halting the depression, in so
far as fresh capital supplies would
contribute
it must be noted
that the labor force is continually
expanding through the net in¬
crease
of
the population.
From
1940 through the first half of 1947
the civilian labor force expanded,
year,
per
withdrawals into the
Budget Estimates
of Federal Net
solely
consumption, being a
device resorted to by the high
brass from General Eisenhower
down in an effort to force Con¬
Receipts for Fiscal
Years (in
to
January,
away
the strongest navyin
*
tbe
Digitized for world and aft'army Vh"
FRASER
^
•"**
-
'■?<
Billions)
1948
1947
Date—
adopt universal military August,
training and to ward off any cuts January,
in the defense budget. -Actually,
Mr. Baldwin said, we Jiave^far ^.ctual,
and
Trust Co. Bldg.,
Marine
Branches:
Buffalo 3
Rochester,
Telephone: Washington 4035
Bell Teletype BU 145
Private
N.
Y.
Norwich, N. Y.
& Co,, New
wire to Kidder, Peabody
York
armed forces
unless more jobs are pro¬
year by year.
Additional
ment,
it be true that the ex¬
home
gress
Trading Facilities
Retail Distribution
vided
UNDERWRITERS
;
"V
AND
DISTRIBUTORS
OF
this
stand that all such talk was
for
SECURITIES
500,000 persons
notwithstanding
the
propaganda,
concerned national
of
DEALERS In
UNLISTED
the average, by
penditures authorized by the Con¬ capital must be supplied in order
to provide more jobs.' This addi¬
gress for the fiscal year 1948 are
not to be, in total, substantially tion cannot be created over night,
so far as it has
less than the original budget esti¬ like drawing water out of a faucet.
defense, have been rounded up by
Unless action is taken with rea¬
Mr. Hanson W. Baldwin in a dis¬ mates, too little account is taken
sonable promptness, through tax
of the effect of the rising level
patch to The New York "Times"
we
shall face before
of national income upon the Fed¬ reduction,
of July 17, 1947.
The gist of Mr.
eral receipts.
There has been a too long the prospect of a rise in
Baldwin's article was that all the
unemployment because we were
talk about the weakness and in¬ consistent tendency to under-estinot sufficiently forehanded in re¬
mate receipts, possibly in order
adequacy of our defense estab¬
leasing income from the ster'le
lishment had done us mischief to build up a case against tax
The record of such purposes of government into the
abroad s'.rce it had been taken reduction.
under-estimating
for the fiscal fruitful purposes of trade and in¬
seriously there. He pointed out
dustry.
the fa;lure of foreigners to under¬ year 1947 is as follows: fruits
and
Complete
to that end.
purpose.
The
LISTED
Furthermore,
on
YORK CURB EXCHANGE
BROKERS and
as
pear,
YORK STOCK EXCHANGE
ASSOCIATE MEMBERS NEW
tax
down enough on the
eration.
Even if
MEMBERS NEW
through
during this period. The full em¬
will
fancy
things
that
have
been ployment figure of 1947
planned here to pay for the op¬ shortly represent underemploy¬
out and
HAMLIN & LUNT
savings
delay of the
signs of
lag
and the
the
1946
1946
1947
1947
$31.5
39.6
40.2
$37.7
43.3
wilk be noted that when
Estimate of receipts for-
It is entirely erroneous,
need
investment because of
production. The
Committee on Postwar Tax Policy,
in its 1947 report, demonstrated
the great shortage of capital, here
of
capital
the current high
and
elsewhere
throughoutthe
One need only consider,
efjasExamples, the average age of
f#ie motor vehicles now on the
jTworld.
Public Utility
Industrial
Railroad
Municipal
Special interest in all Western
New York Issues
also, to
that there is no present
say
INVESTMENT SECURITIES
SCIIOELLKOPF, BUTTON & POME HOY, INC.
70 Niagara Street. Buffalo 2
63 Wall Street. New York 5
BOwling Green 9-2070
Teletype NY 1-2827
Washington 8060
Teletype BU-122
Private
wire
between
offices
THE COMMERCIAL and FINANCIAL CHRONICLE
Thursday, August
AMERICAN MADE
MARKETS
IN
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