The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
1
AUG
^
UBRW
uus.
Final Edition
THU RS DAY
■
v
{■Re*.
Number 4096
Volume 156
Ir:
Three Sections-Section One
—V
•
V, 8. Pat. Officej
New York, N. Y.,
Thursday, August 6, 1942
Revealing Bid And Asked Prices Is Unreal¬
REPORTER'S
istic And Impractical:: Must Be Defeated!
REPORT
By Joseph haynes
,
Hfl
::VV':-;-v'■ -fv-nrT'T:
On Thursday, July 30, 1942, a little
group of men,
The
corporate new issue mar¬
ket remained absolutely dormant
week
and
The
reasons.
the
with
national
best
6f
Treasury
stepped into the money market to
draw down something like $2,500,000,000 of new money in further¬
ance of its war borrowing.
who
control the activities of the Securities and Exchange
now
Commission, in effect contended that 166
history have been all wrong.
Wide Interest To Members
of American
years
officers, members of the Executive Council, Committee Chair¬
Committeemen, to be held at the Palmer House
in Chicago, on Friday and Saturday, Aug. 28 and 29.
As has been
the custom for the past few years, all members of the Association
and National
have been invited to attend thest^
Committee
Meetings.
Under
of the Annual Convention
course
It is their
Treasury tapped all institutional
made whenever
sources
using the types of issues
which
would
to
appeal
com-
! mercial banks and other institu¬
tions.
Secretary Morgenthau opened
subscription books on another in¬
of
the
2%%
"tap" bonds which
all
to
the
available
are
institutional
exception
so-called
with
commercial
buyers
of
banks.
From
the
rush
of
subscrip¬
tions by the major insurance
companies, it appeared that the
for
call
,
this
particular
issue
would substantially exceed the
total* taken down in May when
some
$880,000,000
sold.
were
Several thousand bond salesmen
out "doing the town" on the
issue, and working down to
which
might have accumulated funds,
including even fraternal organiza¬
were
new
the
last reaches of groups;
tions:
Meanwhi 1
•,
was
announcement
e
due from the Treasury to-
day on the details of its $1,500,000,000 certificates of indebted?
.v
ness
which
aimed
are
commercial
at
directly
banks
the
as
major outlet.
American citizen sells his property
an
another American citizen shall
longer be his
to
private
affair. According to this new proposal of the SEC it shall
henceforth be everybody's business.
It shall be his cus¬
no
own
tomer's business to know how much gross profit is
involved
made, AND IF HIS CUS¬
TOMER thinks the profit is too large he will then be free to
go to every one of this dealer's competitors and systemati¬
cally attempt to persuade them to sell him the identical
property for a price that is in keeping with what THE CUS¬
in the transaction before the sale is
proposal of the SEC^ an
new
Banks'
cate issue will be
not nearly
are
reserves
oversubscribed,
should the Federal Reserve
even
find it necessary to enter the mar-
(Continued
on
profit to his customer before he consummates a sale.
as the injurious effects on the over-the-counter securi¬
ties markets and the financial industry itself are concerned, it
is hard to conceive that anyone who has had any practical ex¬
perience in either buying or selling securities would ever be¬
lieve that such a step could lead to anything but further
demoralization of the business. The very fact that this ruling
would practically, eliminate all retail selling of securities,
which is now based "upon "the fundamental' merchandising
relationship which always exists between buyer and seller, is
of vital importance to every one within and without the over-
•
It is essential in order
to
maintain markets for unlisted securities that salesmen should
stimulate
a
lation the
lead to
a
would
soon
point approaching
create
a
paralysis of these markets,
near
financial disturbance that would
be
eco¬
If retail stimulation of the
the-counter markets
curtailed to the point where this
took place, it
AND CONSTRUCTION
National Committee
Meeting.
3:00 p.m. Corporate MeetingPatrick B. McGinnis,
Speaker. :
5:00 p.m. Cocktail Party.
7:30 p.m. Dinner.
"
■
gross
the-counter securities business.
over-
would be too late to look for scapegoats—-the
(Continued on page 450)
V;.;.-'--
...
were
V'
MANAGEMENT PROBLEMS
FINANCING and VALUATIONS
Sanderson & Porter
ENGINEERS and CONSTRUCTORS
BUY UNITED STATES
name
NEW YORK
in
the
world
of EGYPT
guar¬
in value prior to
r
SanFrancisco
Commercial
shortly.
following have been
The
pro¬
posed for office from Oct. 1, 1942,
to
Sept. 30,1943:
President:
Wm. Perry Brown,
Newman, Brown & Co., Inc., New
Orleans.
First
Vice
President:
Hecht, Butler-Huff
Angeles.
,,
John
&
Co.,
C.
Los
.
Second Vice President:
Van Keegan, Frank C.
& Co., New York.
Edward
Sincere & Co.,
Benj. H.
Masterson
H.
Welch,
Chicago.
Treasurer: Earl M.
Scanlan, Earl
Co., Denver.
Nominating
Committee
M. Scanlan &
The
which
named
these,
candidates
consisted of the
F. Tegeler of
meeting will be Patrick B. McGin¬
nis of New York. Mr. McGinnis is
outstanding authority on Rail¬
road Reorganizations and has con¬
and
Bond
Selector
curities
Exchange
Railroad Se¬
course on
the
at
New
Institute
York
for
Stock
the
past
J.
F.
446
(The)................
442
Calendar of New Security Flotations 454
................
Municipal News and Notes.
Our
.
444
Items
Railroad Securities
Our
445
441
Reporter's Report
Securities
Salesman's
Tomorrow's Market
—
Comer.......
B.
445
452
Uptown After 3.
maintain active trading
447
Walter Whyte
Says
Musson,
447
448
.
Reporter on Governments..... 456
Personnel
Ingen & Co., New York, Chairman
of the Municipal Committee, will
preside at the Municipal Meeting
on,., Saturday
afternoon.
Austin
Tobin will be the speaker at this
We
Page
Stocks........
Van
two years.
James
Insurance
Investments Trusts
an
ducted the
'
v
B&nk
THE
CHASE
BANK
OF THE CITY OF NEW YORK
markets in:
FULLY PAID
X.
~
.
.
LONDON
.
6
and
1
Broaden your customer
Cairo
£3,000,000
,
.
£3,000,000
.
service with Chase
Philadelphia Transportation Pfd.
Street, E.
all
Branches
in
principal
Towns
Williamsport
Wilkes Barre
William
King
7
AGENCY
C.
correspondent
MAY & GANNON
31
Watertown
Pittsburgh
CAPITAL
FUND
RESERVE
PHILADELPHIA
Albany
Troy
Register No.
4%s due 1967
Brown Co. 5s—due 1959
1927
SECURITIES
BOSTON
Aldred Inv. Trust
Bankers Nat'l Investing Pfd. & Com.
64 Watt Street, New York
>
be
announced
-
The Corporate Meeting on Fri¬
day will be conducted by Wm.
Perry Brown, Newman, Brown &
Co., New Orleans, La., First Vice
President. The speaker at
this
Cairo
maturity)
R. H. Johnson & Co.
INVESTMENT
Office
Head
against depreciation
Established
1856
of the
will
.
NATIONAL BANK
(Series E and F are the only
bonds
52 WILLIAM STREET
Established
subject
his
and
WAR SAVINGS BONDS
anteed
Chicago
The
speaker
NATIONAL
In connection with
.
of interest to all.
following: Jerome
Dempsey-Tegeler &
Co., St. Louis, Chairman; Neil De
Saturday, Aug. 29, 1942.
Young,
De
Young,
Larson
&
10:00 a.m. National Committee
Tornga,
Grand
Rapids,
Mich.;
Meeting—Election of
Clyde C. Pierce, Clyde C. Pierce
Officers.
Corp., Jacksonville, Fla.; Miles A.
1:00 p.m. Luncheon.
Sharkey, O'Melveney-Wagenseller
3:00 p.m. Municipal Meeting—(Continued on page 449)
Austin Tobin,
Speaker,
INDEX
;
.5:00 p.m. Cocktail Party.
also
SURVEYS AND REPORTS
;——
—
Secretary:
1:30 p.m.
As far
nomic life of the Nation.
QUICK ACTION ON DESIGN
Friday, Aug. 29, 1942.
10:00 a.m. Registration.
counter dealer in securities must disclose the amount of his
detrimental to the welfare of the entire business and
455)
page
O'Connor &
Co., Larry Higgins, Hulburd, War¬
ren & Chandler, Henri P. Pulver,
Goodbody & Co., Ralph G. Ran¬
dall, Mason, Moran & Co., and
Thompson M. Wakeley, A. C. Allyn & Co., Inc., of Chicago has ar¬
ranged the following program:
over-the-
buying and selling interest. Without this stimu¬
marketability of thousands of securities that are
as substantial now as at the time
of the May offering, but there is now traded without difficulty on the over-the-counter mar¬
Tittle doubt that the new certifi¬ kets will be further restricted. Such a condition, should it
,
Leo J. Doyle, Doyle,
TOMER THINKS SHOULD REPRESENT A FAIR PROFIT.
According to this
—
meeting.
A prominent individual
mal
conditions
these
meetings will be presented at the luncheon
would have been held during the who will speak on a topic that is
nor¬
that conducted in May when the
The operation was similar to
Attending Elections
of all
expressed desire to create a new set of rules to which has been cancelled for this
govern the way American citizens shall henceforth be al¬ year.
The
Committee
on
Arrange¬
lowed to buy a piece of property, to hold that property, and
ments which includes Edward H.
to sell that property. The amount of profit that shall be
Welch, Sincere & Co., Chairman,
stalment
Copy
a
Joseph W.Sener, of Mackubin, Legg & Company, President of
the National Security Traders Association, Inc., has called a
meeting
men
•
this
Price 60 Cents
SEC Proposal To Force Profit Disclosure By NSTA Plans Municipal & Corporate Programs Of
OUR
■
1942i
EGYPT
and
the
the
N.
in
Milk Street
Y. Phone CAnal 6-2610
Boston Phone—Hubbard
SUDAN
facilities
Boston
Member Federal
8360
Deposit Insurance
Corporation
Teletype BS 568-569
.
H. Hentz & Co.
Actual
Members
New
York
Stock
New
York
Curb
Exchange
Cotton
Trading Markets, always
Exchange
NATIONAL BANK
Exchange
New
York
Commodity
Chicago
New
Orleans
And
Inc.
Exchange,
Board
of
Cotton
other
Trade
Specialists in
of national
scope
of INDIA, LIMITED
in
Bankers
Over'The* Counter
to
In India,
and
Colony
N. Y* Cotton
Exchange Bldff.
Kobbe', Gearhart & Co.
INCORPORATED
NEW YORK
Members
BOSTON
CHICAGO
DETROIT
PITTSBURGH
GENEVA, SWITZERLAND
N.
Y,
Security Dealers
45 Nassau Street
Tel. REctor 2-3600
Teletype N. Y. 1-579
Enterprise 6015
Philadelphia Telephone:
Boston
Telephone?
Ass'n
-
Enterprise
1250
in
Uganda
GUARANTEED
and
Zanzibar
Capital... .£4,000,000
Capital
.£2,000,000
Fund........ £2,200,000
conducts
Bank
banking
and
Trusteeships
•
HART SMITH & CO.
....
"Reserve
The
RAILROAD STOCKS
Burma, Ceylon, Kenya
Aden
Subscribed
Paid-Up
New York
„
and
26, Bishopsgate,
London, E. C.
Securities
Branches
Government
Office:
Head
Exchange
Exchange•
the
Colony
Kenya
also
every
exchange
and
description
business
Executorships
undertaken
of
Members
New York Security Dealers
52 WILLIAM ST., N. Y,
Assn.
J^^KPmini 9fd).
HAnover 2-0980
RAILROAD STOCKS-BONDS
GUARANTEED
~—
,
Bell
Teletype NY 1-395
Telephone
New York
Montreal
Toronto
BO. Or.
,
9-6400
52 Broadway
Teletype
NEW YORK
N.Y. 1-1063
II
Thursday, August 6, 1942
CHRONICLE
COMMERCIAL & FINANCIAL
THE
442
Philadelphia Reading
Coal & Iron Co.
WIRE SERVICE
ouin^Sl
C/Ds—6s/1949
5s/1973
antici¬
to
We
have
pate
this
an
early
consummation of
reorganization.
All Commit¬
tees
in
to
•4,
—
to
Schoonover, deWillers & Co.
INO
Teletype
Bell
'"J-:*
.•SSSrni*
1-2361
NY
32 Broadway
Gf Best
Under
the
•-30 Broad Street
v/1
(and thereby their
////
••
-
after
THE BOND SELECTOR
•
WHitehall 4-4950
the
REPUBLIC OF COSTA RICA
period of not
We Maxta'n Act;v2 Bfaikets
in all
CENTRAL &
and in 1941 shipments of both were
extremely well maintained. Coffee ^
normally accounts for about' 50%; States did, in fact); the United
which
Roggenburg & Co.
Members N. Y. Security Dealers Assn.
Tel. WHi. 3-3840
grown
000 from its own treasury toward
surplus. coffee stocks were "being;
the highway which,- when com;
/ held and the entire- 1941-1942
quota to the United States (172,- pleted, should - prove an invalu/
able factor in the further develr'
'
Wm. G.
T
B
Riley Joins
j 424
Jw reiDienian WiBfl
I C BLI
rtki ££
bags)
against
hausted, butover-shipmentsrestrict
there is no which1
will
.William, G.
•
associated with
Riley
has
become
Mr.
Riley
was
to -the
debt
of
5,167,000 stems, compared
3,259,000 stems in 1940.
with
consolidation of
the financing
urgent public works.
•
applied
ing to
formerly
opment of the country. / The Ex¬
port-Import Bank has /' also ad¬
vanced a $2,000,000 credit to be
floating
Banana shipments
sharply, amount¬
quotas.
in 1941 increased
fice of T. J. Feibleman at 41 Broad
Street.
applied against the 1942-
be
1943
the New York of¬
ex4
been
has
now
-
and
,
the
industrial
issues
depart-
P. W. Zimmer Is Row
.
(Special to
The
Financial
INDIANAPOLIS,
j
figure may be taken as an indica¬
tion of the trend.
Payne
Chronicle)
IND.
—
Peter
cent years with an
i
total of import
Gavin L.
Payne & Co., Inc.;
Insurance Building.
Mr. Zimmer
formerly
| was
vice-president
inflated
of
are,
/Brentlinger & Hosea, Inc., and in
; the past was with A. J. Wichmann
&
Co.,
Inc.
V
;
Herbert Singer, partner of the
4
r
■
over-the-counter
hurst
house
of Luck-
&
Company,
60
Broad
( Street,
New York City, is the
I proud father of a baby daughter;
j Ellen Carol, born July 29, 1942,
j at the Lying-in Hospital.
the
the
the
for
purchase
construction.
;
Bank
highway
for
and
merchandise
;
American
of
Actually,
foreign
exchange has been available to
pay
for
After
on
the
despite .occa¬
imports
sional delays.
Costa
Axis
;//'•///./",.
Rica
i
^
declared
(before
the
this
on
has
fruit
encouraging
of
so
restricted
become
account of the diversion of east
lands in Costa
banana
companies,
companies.
Export-Import
not
However, the United Fruit .Com¬
pany
is now planting a
large
acreage with abaca on abandoned
imports were, and still
fruit
Added to these private investments are the substantial credits
from
'
Singer Welcomes Stork
accumulated
the result of new capital in¬
mainly
is
since the- northward movement
shipping to Gulf ports anc(
the heavy strain on the railroads.
1936 and 1940,
vestments by foreign
The banana situation at
coast
balances of $20,-
between
000,000
water' haul
shorter
the
involved.
considered j present
Whilei the
country's trade has been marked j
by a series of deficits during re- i
•
of
cause
•
<■
however.
alarming,
jW. Zimmer has become affiliated
i.with
of
spite
This should not be
With Gavin L.
i
In
in full herewith:
•
,r
loss of Far Eastern
ply. These
war
sources
of sup¬
developments
well-solve the problems on
other
initial Dealer Reaction To SEG Bid & Asked
may
hand.
1941,
Costa
Rican
views
definite
this wholly absurd scheme. Some of the
received in time for current publication are given
regarding
As in the
below.
past,
we
In
*
and
ment
suggestions
Co'-non
March
purc^9se
Offer
of
20, 1939.
This offer pro¬
for the
purchase of such
at
coupons
value.
A
30%
new
of
their
face
offer for purchase
regarding; the
one
rule
I
Teletype NY
WHitehall 4-4970
of the most outrageous acts ever proposed by a Gov?
and- is
Commission
ernment
1-609
WH 3-9895
:
:'■//■/ 2. The Securities and Exchange
un?
-
_
■;
Commission offered the olive
branch from Philadelphia last week and
it
was
accepted in good faith
back. <
,
)
laws have never
by the security industry; then this week the stab in the
3.
4.
has
History
stopped
a
finest
that the
shown
drawn
»1
crook and never will:;
truthfully what is the best inde¬
Just how can any broker say
time of the transac¬
brokers
than reasonable to assume that on this particu^
pendent bid and asked price of a security at the
tion; for example, X stock is quoted by four or five different
at
It is more
24-24%.
willing to bid 24% or offer at 24%, because
lar stock there is someone
a
general rule that is the basis of the 24-24%
market
The ques-
'
(Continued
on
page
450)
j
of
subsequent coupons has been
expected, but nothing yet has de¬
When and if
minister.
a new
forthcoming, it
is
set¬
offer.
The
following/ list
details
bonds:.// / •//■/
of
/
Costa
/;
Last Cpn.
1942 Price
Paid
Range
Fund. 5s, 1951
1951
Pac.
Bell System Tele. NY 1-115
1.1
11-1-41(a)
5.4
11-1-41(a»
9-1-41
12-10
9-1-41
15-13
.1.4
..
...
7-1-36(b)
Paid at 309 of face
(bi
Coupons
since.
Lynch,
Merrill
Fenner
&
Beane,
221
Montgomery Street.
Mr. Raber
formerly conducted his own in¬
Pierce,
business, William Raber
vestment
Co.,
San
in
Francisco,
for
a
Retires After 61 Years f
Martin
Beckhard, 88
of
Manager
(a)
paid in
with
sociated
18%-12 Va
0.4
Sterling 5s,
1958
CALIF.—
Raber has become as¬
J.
William
./
Chronicle)
FRANCISCO,
12-11
Ry. 7Vis,
1949
Lynch Firm
to The Financial
number of years.
1.2
_______
SAN
&
Ry. 5s,
1949
(Special
is ex-
Republic of .
CMt.n Ri-o-i—
BROADWAY, NEW YORK CITY
Merrill
New York of Costa Rica's finance
Outstg.
'
William Raber Joins//:
veloped despite a recent visit to
Rican
3%% Debentures Due 1962
r
the Gestapo—entirely
like
more
American.
1939
...
Specializing in Cities Service Issues
I
'
1
Securities and Ex¬
in over-the-
proposed
on
'pected that the terms will be ap¬
proximately the same as under the
JAMES D. CLELAND COMPANY
Y.
*
market price disclosure
transactions, I have the following comments:
1. It: is
;
;
^
circular letter of Aug. 1, 1942, asking for com¬
your
Commission
counter
'
•
*
to
answer
change
7s,
65
J
of
by him to the Investment Bankers Association of
letter addressed
a
America:
through
dollar bonds
"When Issued"
G.A.Saxton&Co.,Inc.
revealed.
1
No.
i A Massachusetts dealer furnished us with the following copy
Pac.
N.
fully observing the author's request
DEALER
years
6%, 6%%, 7%, 8% Preferreds
70 PINE ST.,
are
that neither the firm name or his own identity be
Mil. $
Bonds
decidedly
possibly, their draft status, clearly indicates that they have
serviced under the terms of
were
>
three
the
Rule
v.v /The immediate reaction of the securities; industry to the new
proposed rule of the Securities and Exchange Commission (text of
which appears on another page in this issue), which would compel
dealers to disclose to their customers practically everything except,
,
as
For
vided
United
new
since the
Empire Gas & Fuel Company
New
-+-*
——
—
tomer, by such dealer, of any se¬
"manipulative, deceptive or
term
shows/ certain
I
The«>
f. A—General Provisions.
This
Rica.
fiber is in great demand
Trade Net At Belter Prices
Water
X-15-c-l-lO, has been
submitted by the Commission to about 100 organizations in the secur¬
ities industry. They have been asked to study the proposed rule and
return their comments by Aug. 12. Text of the proposed rule is given
tlement
Trading Markets in
If unable to give the customer any of this information, he
was unable to obtain an independent bid and asked
letters which were
For the current, year;. the pros¬
these encouraging pects for Costa Rica's trade and
•ment of Blair F. Claybaugh Co.,
foreign exchange depend upon the
,l\ew \ork, and prior thereto was figures, Costa Rica probably real-i
ized another trade deficit in 1941. shipping
situation.
So far
as
with Kobbe, Gearhart & Co.
In
Trade with the United States pro¬ coffee is concerned, Costa Rica is
the past he conducted
his own i
in a better position than many of
duced
an
import . surplus
of
investment business in New York
$3,460,000; since the United States the other growers, since it has
City, Wm. G. Riley & Co.
v
'
become expedient to import more
accounted for approximately 80%
of the country's total trade, this' coffee from Central America be¬
in
acquire the security during
than 60 days prior to the proposed sale or
more
-
of January, 1942, no
At the end
i
1-1928
NY
him to reveal to the customer
fraudulent device or con¬ curity, unless such dealer, at or
trivance," and the term "fraudu¬ before the completion of each such
lent/deceptive or manipulative transaction, discloses to such cus¬
of. $550,000 for the purchase of act/ or practice" as used in,; Sec¬ tomer in writing;
arms in order to equip the repub¬
tions 15-C-l and 15-C-2, respec¬
(1-A) The best independent bid
lic's first army/
In addition, the tively, of the I Securities I Act are and asked prices for the security
U. S. allocated $8,000,000 for conn
at the time of the sale or pur¬
hereby defined to include any act
struction v work
on
the,.: Inter- of a dealer
designed to effect a chase which the dealer is able to
American Highway.
Costa Rica £ale to :or a purchase from a cus¬
(Continued on page 450)
will put up an additional $4,000,7
exports,
are
obliged to
would be
he
diligence,
Should he be unable to give either a bid or
lend-lease loan
States extended a
while bananas,
almost exclu-,
sively by United States fruit com-;
panies, usually contribute another.
20% toward the'total.-;: The bal-j
jance is represented by cacao , and
gold.
:
I
total
of
SECURITIES
Teletype:
a
exports—coffee and bananas,
SOUTH AMERICAN
Bell
reasonable
A draft of the proposed rule, known as
price.
Broadway, N.Y.
of
must state that he
good deal of external, evidence might. point; to
disappointing prospects for the near term economy of . Costa Rica;
there are sufficient other factors which, in an increasing tempo,
tend to confirm a constructive attitude toward this country's bonds.
Costa
Rican national
economy depends primarily upon two
Although
Securities
July 29, dealers would be required to
the best independent bid and asked prices
profits) in transactions in over-the-countejr
and asked prices,
gross
the other.
or
one
purchase.
Outlook Fori Dollar Bonds
29
2-2280
257
rule proposed by the
new
a
the price at which the dealer was able to
NY 1-636
•:
PH
on
asked price, it would be obligatory for
Bell Teletype:
/':
HAnover
If the dealer is unable to give both bid
exercise
the
give
New York
Telephone:
•••
provisions of
disclose to their customers
/%/:
KEIPER and ZIMM
■->
York Phone
New
Teletype
Teletype CG 129
and Exchange Commission
securities.
■-
Philadelphia
Street,
:
1477
independent Bid And Asked Prices ;
'
BONDS
-'«-
Chestnut
Phone
Locust
SEC Rale Would Force Eisciosure To Customer
LATIN AMERICAN
/'//'
1421
Phila.
2075
Harrison
•
2039, Pfd, & Common
II. N. NASI I & CO.
AssnS
Chicago
4-8640
3-6s
*
*
Board of Trade Bldg.
.
reie.ype NY 1-832, 834
in
.
v
■
■
BROS.
new york
■iVvDIgby
Specialists
V'
Phila. Transportation Co. /
Invited
Inquiries
' Buck Hill Falls Co.
'I
Members New York Security Dealers
,
7-8500
MArble
2-7034
RE'tor
1
YONKERS.
N.Y.V
Boyertown Burial Casket Co.
•
•STRAUSS
coRSt
coast to
viRlItFOR
V
BROADWAY
N.Y.
S.
20
BROADWAY
NEW YORK,
in
Middlcwest
from 7'/"/-
and Bank Stocks
Stocks
Insurance Co. of North America
CHICAGO
Mortgages,
County
Philadelphia
Bank
office
our
>;■-*
Request
on
Mortgage Certificates
120
ANGELES, CAL
•
Teletype-1-*
6th Street
West
|_QS
Exchange
Accord.
Westchester
All
reason
every
Circular
■■
'
DIRECT PRIVATE
9-5
value.
through 7-1-36
5% Sterling Funding bonds; nothing
due
7-1-33
ment of
the
years
foreign
old,
depart¬
Kuhn, Loeb & Co., is
re¬
tiring after 61 years' service with
the. firm.
;
*
Volume 156
Number 4096
COMMERCIAL
THE;COMMERCIAL & FINANCIAL CHRONICLE
Corps, eventually to, be attached
FINANCIAL CHRONICLE
U.
Reg.
S.
to
Office
Patent
v-;;-Publishers
vv
3-3341
Seibert,
William D.
Riggs,
twice
day (general
with
pended
Business Manager
Other
by
William
.
B,
314
North
Broadway,- St.
Mr.
member
Ciub
Dana
-V■
Bunn" is
of
Of
the
St.
sioned
In United States and
Possessions $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and
Cuba, $29.50 • per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and
Africa, $31.00 per year.
account
of
Spencer Trask
ceived
for
Louis
to
join
active
CERTIFICATES
issued
&
duty
HOME
TITLE
LAWYERS
LAWYERS
GUAR.
INSURANCE
MORTGAGE
TITLE
&
CO.
CO.
Howard
CO.
N.
Y. TITLE & MORTGAGE CO.
STATE TITLE & MORTGAGE CO.
TITLE
GUARANTEE
All
other
TRUST
&
local
CO.
companies
formation
with
Members
New York
40 Wall St. ,
Bell
N.Y.
Stock
Exchange
WHitefaall 4-0300
Teletype
HY
in
active
merly
and
In The Armed Forces
the
a
Perry,
Weston
overseas
in
years
and
was
Coast
Guard
Re¬
and has reported for active
duty in Washington, D. C.
serve
"
Hubert M.
been
commissioned
a
with
Lieut.-Commander
William
First
Walter
Todd, partner in B. V.
preliminary training.
;
Gansori Purcell, Chairman of the Securities and Exchange
Commission, has advised Frank Dunne, President of the
Kew York Security Dealers Association, that the Commission
will conduct public hearings at its offices in Philadelphia,
Aug. 13, on the recently approved amendment
io Article 1, Section 1, of the by-laws of the
NASD, which
would require a dealer to have a specified amount of mini¬
mum capital in order to be eligible for
membership in the
a.m. on
Association.
l
.
*'
»
1
,
M
,
f
1
|
^
f»
t
»
approved by
30.
In
NASD
that it
view of
Co.'s
Mtge.
other
Trust
u
Participations
:inc.
Broadway,
New York,
2-8970
Teletype
N. Y.
NY
1-1203
b. g ill (limited partner)
McCAHAN, 3rd
j
(limited partner)
New York City Dealers
problems
volume
i
'
'
HAS
,
,n'
i
BEEN
*v
\
a
*
'
,
'
DISSOLVED AS OF
logan b. gill
i
>
JULY
gordon crouter
'
30,
or
ments
*'
'
f
^
f
of
overhead,
capital
new
with
be
may
causing
small
require¬
con¬
you
We invite dealers to
cern.
PHILADELPHIA" STOCK EXCHANGE
MEMBERS
*
discuss
us
plans whereby a mutually
agreeable and cost saving arrange¬
-) < ' x
1942.
ment may
Write
park e|. turner
be made.
Call N.
or
Y. Office
(special partner)
T. J. FEIBLEMAN
NEW ORLEANS
Dealer
Group Meets To Fight SEC Profit
41
NEW YORK
BROAD STREET
Tel. BO. 9-1258
Tele. NY 1-493
Disclosure Proposal
A spontaneous meeting was held
yesterday by over 40 security
dealers to discuss the proposal of the Securities and
Exchange Com¬
mission to make it obligatory for dealers to reveal the
bid and asked
prices (and thereby their profits) to a customer when
accepting a buy
"
or
sell order.
.
;
*
.
.
-
Mclnnis-Van Dusen Co.
Merges With Grande
'
SEATTLE,
At this meeting, a committee was formed to
crystallize the views
of those attending and to present them to the
proper authorities.
The
committee is comprised of Nathaniel F.
Van
Glidden, Chairman, Clarence
Hale, Clare M. Torrey, A. W. Benkert, Joshua A. Davis, G. A.
Saxton, Albert E.' Kelly, Fred Young and James B. Greene.
Further sessions will be held: to
map plans
and-asked proposal from becoming effective.
call
James
Cohon.
to prevent the bid
Mac-
Stubner, Stubner & Co.
Louis H. Whitehead, Whitehead &
Fischer.
be
Morris, Glidden, Morris
J.
Steindler, P. J. Steindler &
Brooks &
Co.
G.
M.
ties
McCleary, Florida Securi¬
Co.
John C.
Chester C.
C. V.
Arthur W.
Hurley, Burley & Co.
Bertsch, G. A. Saxton
& Co.
E.> Kelly, E. H. Rollins &
Sons, Inc.
John "Grimm, Cohu & Torrey.
Erwin Stugard, Bond & Goodwin.
Lomasney, D. A. Lomasney Joshua A. Davis, Reynolds & Co.
& Co.
'
■
Irvin Hood, Cohu & Torrey.
Carl Stolle, G. A. Saxton & Co.
Chauncey
L.
Waddell,
Barrett
D.
that
of
B.
Van
Dusen
will
be¬
Vice-President of Grande &
Co., Inc., and Glen H. Southwick
will become Secretary.
Grande &
the
Co., Inc., members of
Exchange, spe¬
Seattle Stock
secu¬
rities.
F. J.
Hayward With
R. L. Golburn Co.
& Co.
A; Fy Beringer, P. W.
Co.
Mickle, Berdell Bros.
Price, Price & Co.
A. Saxton, G. A. Saxton & Co.
with
& Co.
Clarence E. Hale, P. W. Brooks &
.Co.
Kliesrath, Craigmyle, Rogers
Kinnard, Van Alstyne,
or¬
Co., Inc., Hoge Building.
Walter
come
Greene, Du Bosque &
Noel & Co.
P.
consolidated
George M. Appleton, G. A. Saxton
& Co.
their
of
cialize in Pacific Northwest
Howard
Donald & Co.
Lee M."
members
upon
Grande &
Co:
Herbert Dilg, H. G. Dilg Co.
Walter C. Johnson, T. L.
T. F.
B.
Mclnnis,
that,
—
announce
as
of Aug. 1, 1942,
their business and personnel will
Among those attending the meeting were:
F.
Glidden, Glidden,
—-—
—————
Morris & Co.
F. T. Sutton, F. T. Sutton & Co.
F. J. Young, F. J. Young & Co.
C. D. Robbins, C. D. Bobbins &
R. F. Herdeg,
Co.
Neergaard, Miller &
Co.
Co.
ganization,
Nathaniel
Morris
WASH.
&
Dusen
due to wartime conditions and the
E.
A.
(Special
to The
Financial
Chronicle)
<•
FRANCISCO, CALIF. —
Frederick J. Hayward has become
associated
with
R.
Colburn
L.
Company, 155 Montgomery Street.
Mr. Hayward, a member of the
San Francisco Mining Exchange,
was
formerly in charge of the
mining stock department for Wil¬
liam
Raber
business
as
Herrick
Co.
&
an
&
did
also
and
individual.
Co.
W. Benkert, A.
j
Co.
A Double-Barrelled
Clare M.
Hedge
Baron
Torrey, Cohu & Torrey.,
G.
G. Hel-
Helbig, Baron
big & Co.
'
.
obvious
bers of the Association who voted and the further
CHICAGO, WILMINGTON & FRANKLIN COAL CO.
TRADER AVAILABLE
Common Stock
Thoroughly
highly sig¬
nificant circumstance that
practically a similar number of
participate in the balloting on the
question, it is to be expected that numerous other dealers
throughout the country will avail themselves of the oppor¬
tunity afforded by the coming public hearing, on Aug. 13,
Description
on
Request
Fifteen
far-reaching proposal.
dangerous
SCHERCK, RICHTER
COMPANY
Teletype
St.
Louis, Mo.
years
Former partner
In¬
s
Spruce
Garfield 0225
SL 456
L. D.
experience.
well known
unlisted firm. Box L. 1, The
Financial
Landreth Building
Bell
na¬
qualified,
dustrials, Utilities & Rails.
other dealers declined to
to make known to the SEC the harmful and
,
W. Benkert &
Against Inflation
the
'
.
SAN
A.
a
widespread opposition to the
amendment in question, as was evidenced in the fact
was disapproved by approximately 700 of the mem¬
ture of this
Ctfs.
IIAnover
1942
vote of 2 to 1.
.
Co.
Title
&
all
;
Turner. Gill'& Crouter
sent to each member of the Association
was
Ctfs.
Members New York Security Dealers Assn.
BUSINESS.
The
G.
was
Co.
J.GOLDWATER&CO.
I
Albert
and the resultant vote showed that it
i
*■
WM.
Securities and
the resolution
Title
Complete Statistical Information "
log an
july
conducted
by the NASD, "is in conflict with the spirit of the
Exchange Act of 1934 and detrimental to the
investing public and registered Broker-Dealers." The Board
also expressed its desire, "providing the majority of its mem¬
bers concur," to notify the SEC of its opposition to the
pro¬
posal and to petition for an opportunity to make known to
the Commission the reasons for its disapproval. A
copy of
In
Ctf».
Robert c. bodine
a
on page
Invited
exchange
gordon crouter
L. Richard
resolution adopted on; July 23 (text of which
ap¬
368 in the "Chronicle" of July 30), the Board
of Governors of the NYSDA decided, "after mature consid¬
eration," that the amendment, which was approved in a vote
In
peared
4
P.
Christie & Co., Houston, Tex, has
entered
the
Volunteer
Officers
In
Co.
and
39
;
-
stock
INVESTMENT
&
the U. S. Navy.
Specialists
Mtge.
Bond
for¬
Crockett
Are
Bank
partner of E. J. Kitching
SEC To Hold Public Hearings
On Minimnni Capital Proposal
at 10
l
'J
the
(Barnie) Bernard of
Schirmer, Atherton & Company, Corps of the United States Army
50 Congress Street, Boston, Mass., and is now at Fort
Knox, Ky., for
has
& Gill
exchange
TO TRANSACT A GENERAL BROKERAGE AND
and G. A. Saxton & Co.
■
stock
&
Inc., 135 South La Salle Shea of Amott, Baker & Co., 150
Street, Chicago, has been commis¬ Broadway, New York City, has
sioned as Lieutenant (J. G.) in the been ordered to
active duty with
States
4-6551
^TELEPHONE. LOCUST 6770
United
pany,;
United
f".
•
""
Company "F," 101st
associated
WHitehall
Lawyers
PACKARD BUILDING. PHILADELPHIA
ser¬
Company, du Pont, Homsey Co.,
John II. Anderson, Vice-Presi¬
dent of Charles K. Morris & Com¬
york
philadelphia
'
Ammunition Train, 26th Division.
He has been in the "Street" for
twenty-five
1-2033
enter
months
with
STREET, NEW YORK
Inquiries
members'
NEW
Army and is at present stationed
at Camp Devens. Mr.
Perry served
war
fl;:
of
Crouter, Bodine
the
Boston, is serving with the U; S.
last
may
Lawyers
Company,:■ 10 Post Office Square,
nineteen
Yewburger, Loeb & Co
mere
selves?
ghosts
spirits!
your
WALL
re-,
The firm is continu¬
S.
are
former
the
on
REAL ESTATESECURITIES
WE T>AKE PLEASURE IN ANNOUNCING THE
ing under the direction of Leo V.
Ryan, a partner in the firm with
Alice G. Ryan.
CO.
GUAR.
and
to
States Army.
by
MORTGAGE
City,
99
'
•
their
Obsolete Securities Dept.
We
from partnership in James J. Mc¬
Lean & Co., 11 Broadway, New
York
restore
1-5
of
quotes
•
Air Corps.
James J. McLean has withdrawn
MORTGAGE
'
shadows
Well,
the
-
commissioned
MARKETS FOR
Victory!
Security Traders
vice, with the United States Army i
advertise¬
ments must be made In New York funds.
«
Nearer
Telephone:
foreign
BOND
Members Neiv York Stock Exchange
t.
the; latest
Naval Air Force. Another
partner,
Vincent II. Herrmann, is already
and
•
.
in the rate of exchange, remittances for
subscriptions
AND COMPANY
I>o you own stocks that
1|1||-' *
25 Broad Street, New York
■■■■■..'
1 Telephone HAnover 2-4300 ,\„
;' ' Teletype NY
Louis*
his orders and will report,
shortly
'
Week
GHOST
& Go.
Lieutenant in the United
a
One
STOCKS!
man¬
States Naval Reserve.' He has
fluctuations
the
-
1,11
PREFERRED STOCKS
W. New York City, has been commis¬
Subscriptions
NOTE—On
-
Frank T. Kennedy, a partner in
C. J. Devine & Co., 48 Wall Street.
ruary 25,
1942, at the post office at
New York, N. Y., under the Act of Mar.
;
1111®
^
formerly
armed forces.
;8, im.
licnim
B. S.
,
got
way.
W, Bunn,
army.
second-class matter Feb¬
as
they
Mo., ; has been Inducted - into the
Company.
Reentered
-
of the trading, department of
Stifel,-Nicolaus & Company, Inc.,
Chicago—In charge of
Fred H. Gray, Western Representative,
Field Building (Telephone State 0613).
London—Edwards & Smith, 1 Drapers'
Gardens, London, E.C.
•
until
ager
issue
offices:
Copyright. 1942
his
on
John
[every Thurs¬
advertising issue)
on Monday]
news and
statistical
a
trading
Barnie
week
a
,
Public Utility and Industrial
uniforms,
and
Schirmer,
Atherton & Company almost sus¬
Thursday, August 6, 1942
Published
offerings of
High Grade
two
Editor and Publisher
;
interested in
are
off, and
Sunday evening
telegraph instructions to re¬
port in Miami on Tuesday. After
being sworn in, he hastily bought
William Dana Seibert, President
}
We
Command.
found
Spruce Street, New York,;
Herbert D.
Carrier
when he returned
■
BEekman
Transport
Barnie took the week-end
William B. Dana Company
25
44$
Lieutenant in the U. S. Army Air
and
N.
123
assagggaggj
'/■
Y.
Chronicle,
Street,
New
25
York,
THE COMMERCIAL & FINANCIAL CHRONICLE
444
Thursday, August 6, 1942
Alabama Mills
WE MAINTAIN A POSITION
ranklin Co. Coal 7s, 1949
ws.
&
xs.
Franklin
Debardelaben 4s, 1957
County Coal 7's
if you contemplate making additions to your personnel,
send in particulars to the Editor of the Financial Chronicle
please
for pub¬
of 1949 and Stock
lication in this column.'
Steiner, Rouse & Co.
NEW
Members New York Stock Exchange
'%: ■%%%%:.•/:
>.%:%•
,
25 Broad St.
'
:>.
Franklin
1st
Thomson &McKmnon
(Special
to
Chronicle)
The Financial
'
ILL. — John J.
has become asso¬
CHICAGO,
O'Brien, III,
ciated
With
McKin-
&
Thomson
231 South La Salle Street.
Mr. O'Brien, a member of the Chi¬
cago Stock Exchange and Chicago
Board of Trade, has beeri: in the
brokerage and banking business
non,
was
since 1926.
He whs. formerly a
partner in Wayne Hummer & Co.,
and recently was a partner in his
CeuntyfCoaliCorporation V
Mortgage 7s, Due 1949
Franklin County Coal Corporation was incorporated under Dela¬
laws in 1935 as successor in reorganization to another company
of the same name.
In the reorganization, funded debt was scaled
:
consist
of
situated in
are
the southern
16,315 acres of bitumi-<s>
coal lands, of which 12,172
nous
acres
owned
are
fee
in
balance held under lease.
and
Illinois
field,' and
:——
for Bond
the
V;$51,874
60,787
51,874
51,952
54,225
X-Earned
%
firm* John J O'Brien & Co.
1940^4—
1937
257,132
60.987
1936
217,978
60,966 %:%:;j%;3.55
1935—k—
120,419
60,966
Claybangh Opens
Miami Beach Branch
MIAMI BEACH,
Claybaugh
&
FLA.—Blair F.
Co. has opened a
branch office here at 420 Lincoln
Road.
•
C.
Macurda,
Lawrence
formerly manager of the trading
is
pany
of
"Energy"
Street, will acquire
Mr. Noyes
for
is the first applicant
membership
Exchange
in
the
the
under
which permit officers
Chicago
of corpora¬
tions trading in securities
come
rules
new
to be¬
members and their corpora¬
tions to be listed
as
members. The
Illinois Company was established
in 1936 and conducts
a
general in¬
vestment business.
DETROIT
unsatisfactory
1.99
earn¬
ings record of 1941, it is under¬
stood that
Capitalization at December 31,
1941, consisted of the following:
1st mtge.
cum.
cum.
Common
.
.
end.
49,175
133,751 shs.
obligation
($10 par)_l_l__
pfd.
interest payment
may be declared before the year-
inc. 7s, 1949__ $741,050
Purchase money
7%
possible that
for
amount equal to
ac¬
cumulated.
the
as
reported to the trustee
six
months
ended
June
30, 1942, amounted to $85,855 com¬
pared with $8,124 reported for the
of
an
Earnings available for bond
interest
245,463 shs.
:
an
first
six
months
bond interest
of, 1942.
(Special
Financial
to The
SECURITIES
' '
H.
>: has
become
associated
Hornblower & Weeks, First
Chronicle)
National % Bank
Building.
Mr.
— Harold
Baetjer has recently been with
joined the staff of
Smith, Barney & Co. In the past
Cunningham & Co., Union Com¬
R.
Rorick
has
he
Building.
merce
(Special
to
The Financial
Blaine is
now
associated with the
Cleveland
tional
City
Blaine
was
&
York
Chronicle)
CLEVELAND, OHIO—Perry T.
First
a partner in J. S.
Wilson,
Co., members of the New
was
Jr.
Corporation, Na¬
Bank Building.
Mr.
previously with Bor-
Stock
Exchange,
partner with G.
a
&
Co.
when
vestment
charges for the full
(Special
i
that
G.
M.-P.
merged with
Weeks
some
was
&
v
ab¬
The in¬
company
firm.
business' of
Murphy & Co.
& Borton, Inc., P. E. Kline, Hornblower
months ago.
Inc., and Jackson & Curtis.
,
becoming
M.-P. Murphy
sorbed the Wilson
ton
'
,
/
to The Financial Chronicle)
CLEVELAND, OHIO—Raymond
year
A. Herman has
for
with
become affiliated
Wm. J. Mericka
Harold Allen Inv. Co.
& Co., Inc.,
Formed In Dies Moines
ll1/2%, or to Union Commerce Building.
Mr.
was
basis, on the Herman
previously
with
DES MOINES, IOWA—Harold
$741,050
principal; amount
of Soucy, Swartswelter & Co., Morse L. Allen has formed the Harold L.
bonds outstanding.
Bros. & Co., Inc., of New York, Allen
Investment Co. with offices
Net current assets at June 30, and
in the Equitable
Graham, Parsons & Co.
E^uilding to en¬
1942, likewise showed a distinct
gage in a securities business. Mr.
are
23%
equivalent
on
to
annual
an
,
improvement
the
end
of
over
1941.
the
figure
.
(Special
at
30,
reported
1942, current assets were
at $644,412 with cash of $201,954.
to
The Financial
Chronicle)
.%
ORLANDO,
As of June
FLA. — Johnston
Thompson is now with
Edwin
Cohu & Torrey, Metcalf Building.
Mr. Thompson was formerly with
Current liabilities were $292,697,
resulting in net current assets of Florida Bond & Share, Inc., and
$351,714. At the end of 1941, net Guaranty Underwriters.
been as follows:
current assets totaled $311,076, or
(Special to The Financial Chronicle)
T
Oct. 1, 1935—1.75%
Apr. 1, 1938—8.75%
$40,638 less than the figure at
TERRE HAUT$, IND.—Arthur
Apr. 1, 1936—3.50%
Apr. 1, 1939—7.00%
June 30, 1942.
k u
1
Dec. 1, 1936—3.50%
G. Wallace, formerly with Paul
Apr. 1, 1940—7.00%
In addition to the. encouraging
Apr. 1, 1937—7.00%
Apr. 1, 1941—None
H. Davis & Co., has been added to
Apr. 1,1942—None
betterment in earnings and work¬
the staff of Thomas J. Doherty,
To the end of March, 1942, in¬ ing capital position, an interesting
908 South Seventh Street.
terest accumulations amounted to possibility exists in the oil drilling
14%, or about $104,000 on the activities on the company's prop¬
DIVIDEND NOTICES
$741,050
principal
amount
of erty. According to a sub-surface
bonds outstanding.
contour map prepared by the Illi¬
nois
State
Geological
Survey,
The indenture provides that ac¬
cumulated
and
current
interest practically all of Franklin County
Atlas
is On structure.
In 1940, one well
must be paid on April 1 each year
Dividend on Common Stock
was
drilled
on
the
company's
to the extent that net current as¬
Notice is hereby given that a divi¬
sets (as of December 31 preced¬ property in Marion County which
dend of 250 per share has been
declared on the Common Stock of
ing) exceed the sum of $350,000. proved to be dry, and last year
two test wells were drilled on the
Atlas Corporation, payable Septem¬
However, the directors may, at
ber 12, 1942, to holders of such
their discretion, declare at any property of the company, one in
stock of record at the close of busi¬
northern
part of Franklin
time interest payments which re¬ the
ness August 14, 1942,
and the
other
in
the
sult in reducing net current as¬ County
southern part. Both of these wells
sets below the $350,000 level, and
were dry.
On March 10, 1942, the
Dividend No. 24
such was the case in 1938 and
president reported negotiations for
on 6%
Preferred Stock
1939.
Interest
is
cumulative
the drilling of other wells.
Notice is hereby given that a divi¬
whether or not earned.
Earnings
It is understood that the in¬
dend of
Interest payments on the bonds
from the date of issuance have
.
.
Corporation
LISTED AND UNLISTED
^BALTIMORE, MD.-Charles
Baetjer
CLEVELAND, OHIO
Since
amount to $51,874, earnings
the first six months of 1942
Charles Baetjsr With '
Horeiblewer & Weeks
*
remarkable recovery
a
William
connected
with
has taken place and that it is quite
Chicago Stock Exchange. all interest both current and
the
on
56,231
the
—
has become
1.40
ton."
membership $350,000 plus
a
72,796
Since
and "Royal-
Originally issued in the amount
$870,950, the sinking fund had
retired $129,900 of the mortgage
the new office.
bonds by the .end of 1941.
i
The
Ralph H. Curlette will also be
sinking fund consists of 50% of
connected with the new office.
net
earnings for the "preceding
calendar year to be applied to the
Noyes Of Illinois Co.
purchase of bonds at not exceed¬
To Be Cgo. S. £. Member ing par. This sinking fund is op¬
erative only in the event that all
H;' CHICAGO, ILL. —George F.
payments of current and accrued
Noyes, Vice-President and Secre¬ interest have been made and that
tary, of the Illinois Company of net current assets as of December
Chicago,
231
South
La, Salle 31 preceding shall have exceeded
department for Guaranty Under¬
writers in Miami, is in charge of
-
.
1938_,^
Bitumi¬
produced by the com¬
; is;; sold. under
the trade
names
*
1939
coal
nous
Blair
capacity
Cummins
1.04
,3.69
Interest
.
Incorporated
CHICAGO
Chronicle)
The Financial
Chas. A. Hinsch. & Co.
$42,691
about 2,-,
900,000 tons per annum, and esti¬
mated recoverable coal approxi¬
production
to
CINCINNATI, OHIO
.
Securities Co.
Company of New York.
(Special
1.17
Interest
mately 100,000,000 tons.
own
Trust
0.84
Bond
'Ye^tr-—
Thompson Ross
formerly in the muni¬
cipal department of Ira Haupt &
Co.
In
the past he
was
with
Shields & Co. and the Guaranty
was
Co., Union Trust
Building.
Mr. Cummins was for¬
merly with P. E. Kline, Inc., and
1941__„
Normal
SECURITIES
with the municipal
now
with A. E. Aub &
Available
AND INDUSTRIAL
bond department of Kidder, Peabody & Co., 17 Wall Street.
Mr.
down;50% and the total face value of bonds outstanding now amounts
to about 25% of the depreciated book value of properties and equip¬
Properties
PUBLIC UTILITY
YORK, N. Y.—Edward J.
Meyers is
Meyers
ware
ment.
RAILROAD
formerly with
Co., Inc., and in the past
with Eli T. Watson & Co., Inc.
NEW
John O'Brien Joins
MUNICIPAL
City.
York
was
Burr &
-
Teletype CG 530
1
New
Broadway,
Mr. Lawrence
Telephone Central 7540
v;,
150
Incorporated,
"231 SO. LA SALLE STREET, CHICAGO
New York, N. Y.
NY 1-1557 ' ■
Amott, Baker & Co., Incorporated,
E. H. Rollins & Sons
BH 198
Direct Wire
v
r
has become associated with
rence
Maritime Bldg. Brown-Marx Bldg.
New Orleans, La. Birmingham, Ala.
^
;
YORK, N. Y.—J. C. Law¬
Allen, who has been in the invest¬
ment
the
business in Des Moines
fifteen
past
for
for¬
merly vice-president of the First
Securities Corporation. Associated
with
E.
Mr.
years,
Allen
Deuben,
be
previously
of
manager
will
was
Charles
assistant
the; local
office
of
Goodbody & Co., and pribr thereto
with Babcock, Rushton &
Co., and
Clarence S, Smith, previously with
the First Securities Corp.
Franklin Coal Attractive
The First
due
Coal
Mortgage 7% Bonds,
1949, of the Franklin County
Corporation offer
esting
situation,
circular
inter¬
an
according
issued
by
D.
to
F.
a
Bern¬
heimer &
Co., Inc., 42 Broadway,
New York
City, from whom copies
may
be had upon request.
'
,
Charles A. Parcells 6* Co.
Members
of
Detroit
PENOBSCOT
DETROIT,
Stock
Exchange
BUILDING.
MICH.
available
for
are
com¬
puted before provision for depre¬
ciation
and
available
for
is
ST. LOUIS
interest
in
shown
depletion.
interest
the
Income
since
1935
75^ per share for the quarter
ending August 31, 1942, has been
on the 6% Preferred Stock
of Atlas Corporation, payable Sep¬
tember 1, 1942, to holders of such
denture
provides that any income
which might eventuate from oil
production would be turned over
to
the trustee
for
the benefit
DIVIDEND NOTICES
Wonknti
Common Dividend ; ; i ;
No. 130
declared
of
of thirty cents
(30tf) per share has been declared on
the "outstanding common stock of this
An interim dividend
stock of record at the close of busi¬
the sinking fund of the first mort-
ness
August 14, 1942.
'*
,,
Walter A. Peterson, Treasurer
following table: gage bonds.
Company, payable September 1, 1942,
August 4, 1942.
to
stockholders of record at the close of
business August 15, 1942.
be mailed.
Franklin County Coal Corp.
Stix
&
1st
Co.
Mortgage 7% due 1949
York.
,:
July
23,
Teletype—SL 80
of
August 21,
Circular
on
record
the
at
close
of
EATON
MANUFACTURING
CLEVELAND,
business
J.
R. FAST,
The
Secretary.
Board
of
Manufacturing
clared
Members St. Louis Stock
Exchange
dividend
42
pany's
Broadway, N. V.
Bell
Telephone BOwling Green 9-4970
System Teletype NY-1-1043
Cents
TEXAS GULF SULPHUR COMPANY
D. F. Bernheimer & Co., Inc.
The
1942,
Board
business
"
"
of, 50
of
Directors
cents
has
declared
a
share on the Com¬
payable September 15.
to stockholders of record at the close of
.
capital
per
stock,
September 1, 1942.
'li. F."J.* KNOfcLOCll, "treasurer."
COMPAN
OHIO
Dividend No. 70
1942.
Request
L.. NOETZEL, Treasurer
1942.
A dividend of One ($1.00) Dollar per 6hare
been declared on the Capital Stock of this
Company, payable September 15, 1942, to stock¬
holders
E.
'
has
Bought—Sol&—Quoted
OO9 OLIVE ST.
System
26 Broadway
.
*
The Borden Company
COMPANY
Vy
New
SAINT LOUIS
Bell
THE BUCKEYE PIPE LINE
Checks will
a
Directors
Company
.
dividend
(75c.)
per
of
of
share on the
standing common stock of the
pany,
payable
shareholders
of
August
record
business August 11,
H.
'July"3f, 1912.*
of
O.
Eat<
has
di
Seventy-fh
25,
at
ou
Oon
1942,
the
1
cloi
1942.
STUESSY, Secreta;
I
Volume 156
Number 4096
THE COMMERCIAL & FINANCIAL CHRONICLE
-In
the
last' few
have heard
I
lot about certain
a
stocks that "must"
go up be¬
cause :of
past earning power
and future earning
Tomorrow's Markets
Walter
weeks
ties.
Whyte
.
never
As
445
Seaboard Air Line
potentiali¬
the first, stocks
to
Rec. Ctfs.
•
go up on past
perform-;
They sell ex on future
ability. As to the second, who;
is there today who can evalulate future > ability in
the
1st Lien
Bought—Sold
BROWN
ances.
Says—
face
War
continues to affect
news
of
bad
more
Members
61
York
Stock
Bell
REORGANIZATION
52 WILLIAM ST.,
Bell
Teletype—NY 1-310
SECURITIES
Rails,
un¬
Nothing has happened in
give
termine the value of domestic
securities.'
*
anybody reason to slump into
deep gloom or give vent to
$
1
,
earnings
loss for the first half of this
he's
interested
lot to do with it.;' But
and the red ink conies in.
circles,* but it
fixed charges,
would be
held to $1,766,966, or
approximately 10% less than fixed
charges proposed in the Examiner's plan filed about a year
ago.
The reduction did not reflect
to
in
equipments
on
the
in
new
the
by
interest
and
by
cut
a
be
to
money
interim
Railroad
requirements
plan, from
$6,000,000 to $2,250,000. Actually,
the
final
plan
provides for a
slightly larger new first mortgage
dividend
and
J. I.
Case
(Continued
452)
on page
all from the domestic front.
The defaulted railroad bond in¬
dex
;
But if
front
of
Pflugfelder,
Bampton
&
from the home Rust, 61 Broadway, New York
City, shows the following range
comparatively un¬ for Jan.
1, 1939, to date: High—
news
was
important,- it
anything
was
but that from the
war
40%; low—14 %
•
August 5 price—
fronts. 36%.
The
the
tabulation
Bear, Stearns & Co.
securities
under
proposal.
the
*
"
V'.
* *
;.S,'
•
Members
y .y J_
-
Jtsis; York
Stock
New Ydrk
I
:
S.t
f-f'i"'
Exchange
most
-
'
Chicago
*
•
net
.
The undersigned Committee has
received from the Florida National
Building Corporation (Controlled by the Estate of Alfred I. duPont) an
for the purchase of the bonds represented by the Committee's Certifi¬
cates of Deposit.
A copy of such offer has been mailed to registered holders
of such Certificates.
Any holder of such Certificates of Deposit not registered
in his name should apply to the Secretary of the Committee for a copy of
such offer.
Acceptances of the offer, in order to be effective, must, be accom¬
panied by the relative Certificate of Deposit and must he in the hands of the
Depositary, J,'.P.-Morgniv & Co. Incorporated, on or before September 4, 1942.
final
modified
Commission
plan
more
ago, particularly
the
of
•*
two
filed by
We
are
generally
Chairman
23 Wall Street
G. C. CUTLER
New York, N. Y.
H. C. IIAGERTY
to
offer
1
WALL
STREET,
WHitehail 3-3450
NEW
of
Utah.
interest
initially.
bonds
are
to
As
Another varia¬
YORK
receive.
be
of the
Refunding & Improvement
Mortgage.
the
it
is
its
relatively
Denver &
Rio
Grande
cons.
Is,
&
Rio
Grande
cons.
4'/2s,
Denver
Inc. 4V2S
$908.80
Denver
& Rio
Grande West. R. & I.
&
•Interest 3%
West.
5s,
gen.
286.00
<
294.25
*
&
Improvement
286.13
258.30
been
was
the
receive
percentage
same
to
of
their full claim for principal and
interest
in
new
first
mortgage
bonds
WARNER COMPANY
and
Consolidated 4s
4V2S, 1936. Now they are to
only 16% of their total
receive
claim
with
PLAN OF EXTENSION
did the
as
in
1st
new
21%
the
for
Consolidated
;
First
(DATED MAY 15, 1942)
'
'
T
/
Mortgage %% Sinking Fund Bonds
It
of
still
This at least lessens
the- apparent inequities.
remains
however,
a
deep mystery,
the, Rio Grande
why
Western Consolidated
4s, 1949,
se¬
cured by second lien on the
In the event any
bondholder has not
received
of the Plan, please
a
copy
high
earning western properties where
there is an apparent wide balance
of earnings after providing for the
1st
notify
the
undersigned
promptly.
any
4s, should be cut off without
participation in the new fixed
interest
ALFRED D.
WARNER, JR., Treasurer
219 N. Broad St.,
Philadelphia
"TTTTT™
bonds
allocation
and
only
of income
discrepency
plained by
can
any
a
small
bonds.
hardly
value
be
that
The
ex¬
may
attach to the Utah Fuel stock they
are
satis-
these
be
in
-use
taken
as
a
114.80
301.35
10-year average
a
fixed
earned
Last year
charges would have
2.84 times, and for
current year
net
operating income
almost eight times that of a
earlier.
The bonds of the
more
now
increase
the
as
time
for
submis¬
sion of the plari to the court ap¬
proaches.
,
Investing in
a Necessity
760.55
More
before
cessful
court
the
the
decision
The
new
can
A
court.
may
the end of the
;
record
final
before
come
•"
year.
capitalization is
con¬
sidered
highly conservative. Past
earnings of the system, particu-
depends in large meas¬
oil.
For this reason
upon
especially attractive to
customers
brokers
on
we
blocks
invite inquiries
or
In
We also maintain net markets in
&
Checks
Get
Bonds
Ctfs.
&
your
time.
returns and are at¬
ideal inflation hedge
large and small investors.
are
an
the
mailed
facts
direct
from
the
owners.
about
Oil
Royalties
so
that you
can
explain
their advantages to your clients. We
specialize in offering Oil Royalties to
registered dealers.
Georgia & Alabama
5s/45
both
as
oil companies to oil royalty
Seaboard All Florida
6s/35 Bonds
present
monthly
tractive
to
the
Oil Royalties:
addition
Pay
1st
at
odd lots of
HIGHEST GRADE RAILS
OIL
Producing
Oil Royalties
are
As
before,
ever
importance. The suc¬
of mechanized
conduct
warfare
be
ure
to
than
is of vital
tAlso to receive pro rata distribu¬
or proceeds thereof.
certified
Ctfs.
today
Seaboard Receivers Ctfs.
1st
3'/2s/45
TELLIER & COMPANY
Members
1. h. rothchild &
HAnover 2-9175
.
x
Eastern
Oil
Royalty
Dealers
Associalion
co.
Established
specialists in rails
11 wall street
of
measure
potentialities, it is signifi¬
basic improvement in the com¬
pany's traffic and earnings status.
Speculative interest is expected to
385.46
cations
to
being pro¬
posed by the Commission nor the
3s-4s, compared
Mortgage.
one
Utah
war
men
will
liberal treatment
70.55
_
were
the
after the
even
the first half of the
722.12
1955
Refunding
Bonds
from
.come
facilities
new
588.50
109.00
fixed and
In earlier plans the
Committee
the
Company, which is owned by
be
572.00
147.12
1% prior contingent,
tion of 100,000 shares of pledged Utah Fuel stock,
F.W.WALKER
-
will
1931-1940, with
H. SvSTURGIS
;
August 4, 1942.
,
Grande
large proportion of the coal
a
the Denver., Steel
$322.50
143.00
943.71
1978
5s, 1955_„
on
are
& :Rio
Common
$890.10
245.25
6s, 1974
Denver
Grande
5% Pfd.
299.00
1936
5s,
Rio
is
307.63
1936
Grande West. R. & I.
the
$371.20
.
Denver & Rio
Grande Junction
There
statutory waiting period of 60
days for seeking further modifi-
1949
4s,
cons.
plan gets
should
77.40
1939
tRio Grande Western
be¬
progress
rapid.
•lstMtge.
Rib Grande Western 1st tr. 4s,
generally
the new
once
court
mills
road have not reflected the
a
to
These
.
combined
Teletype: NY 1-2050
the
lieved that
probably
Western and it is expected .that at
the
plan falls fairly closely
into line with the opinions ex¬
pressed by Judge Symes in earlier
al¬
is
of, Denver
least
year
principal in new
bonds as compared
lihe
coverage of 1.63 times.
to get almost their full
are
important factor along
charges would have been earned
full in eight of the 10 years
LEROY A. STRASBURGER & GO.
mortgages,
under
necessities.
war
in
regis¬
bonds
of
these
roads
at
substantial concessions from cur¬
rent
coupon
bond
market,
in its treatment
industrial
area
cant that the proposed' new fixed
tered
the
proceedings,
Rio
D. C. BORDEN
able
of
service
the
of
latter
future
Southern Pacific, etc.
;
the Rio Grande Western 1st Trust
value
the
wide expansion now under way of
the steel mill facilities at
Provo,
not
Lehigh Valley
than two years
strongest
in
meet the west coast steel demand.
Even though past earnings may
Lackawanna,
1
being bettered
construction
fied that
Illinois Central
,
offer
A. M. ANDERSON,
In. most'
New York Central
,t
■
sidered, and one that brought dis¬
appointment in some quarters, is
the'cut in the relative treatment
v
markets
particularly obligations of
f
ing the objections voiced by the
court in turning down the original
located
First and Refunding Mortgage 5% Bonds, Series A
trading
of- the medium-priced Rail Bonds,
V
tion from all plans heretofore con¬
Florida East Coast Railway Company
Secretary
maintain
V,;
recent
,.
frbm
result
to
position is
most
Fuel
We
new
'
expected
press
used
One notable feature of the plan
is that it goes far towards meet¬
face
oj Certificates of Deposit for
be
may
lines
J?*7 4$V>■ ■ •■••• V-i^«••'V't.'O.'r-.-r .«•<*'.- f
L*:•:ds 5'• '«•
first mortgage
with no fixed
S. B. PAYNE,
V
I
w
shows
below
actual
also, there is no rer
flection in these figures of the
increased operating efficiency that
this
interest.:
proposed distribution of
They
To the Holders
but,
The
4s and the Rio Grande Junction 5s.
FINANCIAL NOTICES
re¬
ported
new
,
declared: $3 tb be' payable in
October, and that was about Defaulted RR Bond
Index
bond
earnings
plants
a
come
dis¬
the
the
fund of $750,000, will
$2,468,073, resulting in
aggregate requirements of $4,235,039 ranking ahead of preferred
bring additional compil¬
year's first half.. General er at i o n
Taxes, priorities,
Motors came through with a
price controls apd numerous
expenses
torted
by the
(Whan Issued)
charges, in¬
maximum additions and
a
heavy maintenance
traffic
contingent
cluding
been
freight. Finally, the system's basic
Securities
originally contemplated.
was
Total
thing/un¬
have
spent in recent years on property
rehabilitation. Not only have the
petitive position of the properties
respect to, transcontinental
Reorganization
borrowed
consummating the
than
one
sums
with
in
betterment
also
of
large
improved property condition. In
addition, virtual rebuilding of the
main lines has improved the com¬
bondholders, be¬
represented
decline
any
mortgage bonds
Of course a war gives do¬
stock dividends.
decline. mestic
Combined fixed
companies a lot of hew
and contingent charges of the old
For fhe flirsftihalf of this
year business to take the
place of system amounted to $7,713,000, of
its earnings came to $2.36 a
lost foreign markets. But wars which
$564,000
represented
in¬
share -against, $2.97 for last
50c
Grande
.
amount to
non:rationing WrD
a
tor-y also showed
& Rio
July 24, caused a little surprise in railroad
did bring some disappointment. New maximum
granting consolidation with Denver & Salt Lake,
on :
old
Standard Oil of Ohio tyjiich
serves
filed
ing
against $1.79 a share re¬ depends on international busi¬
ported for the first half of last ness for its real
profits. Let
year. East coast gas rationing international difficulties arise
a
The final ICC plan of reorganization for Denver
i
.
allocable
year
had
;
about
stock
since trustees
years
new securities.
usually
new
whose
Toronto
appointed, are of little value
determining the status of the
in
makes
re¬
1-395
were
reduction in
for
pretty speeches
patriotism and the
ports and dividend declara¬
American way — whatever
tions.
that
is.
But any
realistic
*
*
#
spec ula t or and investor
Atlantic Refining showed a knows
that any company in
of
HAnover 2-0980
NY
Montreal
larly in the
Western,
#
Being for America first
unrestrained
cheers. Taken I arid I'm not referring to the
by and large it was just an¬ organization of that name) is
other week,- with the usual very nice and comfortable. It
assortment
N. Y.
looks at
affected by foreign
the market last week to
Preferred
Teletype
New York
it, it's what is happening, or
will
happen,on such far
devejopv
flung spots as the Don, Egypt,
ments, continue strong.
Fort Moresby and even Chh
By WALTER WHYTE
na's Wenchow that will de¬
resultant reaction.
5i£s, 1946-50
and
HART SMITH & CO.
Exchange
New York
RAILROAD
one
New
Broadway
Telephone—DIgby 4-4933
Jjs
No matter how
and
news
PFLUGFELDER, BAMPTON & RUST
'
* '
&
1959
Common
world wide catas¬
a
trophe? "
market trend. Industrials in¬
dicate
5s,
42
Broadway
1931
New York, N. Y.
BOwling Gre^n 9-7947
n.y.c.
Tel^tvne
Tele. NY 1-1293
.1
NY
1-1171
;
•
THE COMMERCIAL & FINANCIAL CHRONICLE
446
corporation.
further
He
-
found
GrouteivBodinftGill;
that, whether insurance stocks pr
other inflation hedge equities a^e
selected
talist,
"stodgy"
those
This Week
Insurance Stocks
—
American
the
share market are always
insurance
seeking to rationalize its past performance as in
searching for a basis for predicting its future.
To some extent
one goes
with the other. Past performance often is explained by
publication of facts previously known only to insiders.
Usually
vinsiders make the market because, of their?knowledge of current
in
v
®
developments.
I
Insurance
figures
company
r
7. ?.7'
-
corporations,
that
is,
conspicuous either in
or in
the trade, ulti¬
proved better buys than
with
them
the
statements have appeared as
many
said that re¬
date would
fully account for the^outstanding market performance of the
yet, but
it
be
can
■■
■
.
BANK
OF ffill
1SS?
III NEW YORK I I
tional
beyond
reason
in
parent
business
statistics
the
is
those
Members
the
of
and
stocks through
ance
of
first
our
war
awful
that
and
stood?
"...
"inflation"
word
heard
often
the first half
year.
Can it be
little
so
under¬
I??:
/..?■^y:;i=;;.v ^
British
favorite
Our
so
insurance
"The
Policy-Holder"
of
Manchester,
England, on the last day of last
year offered a definition of infla¬
writing
commentator,
tion which
was
be having an
in
then said to
even
British in¬
share prices and has cer¬
surance
effect
full weight
"During the
closing,
now
year
have several times drawn
we
tention
the
to
of
value
Stock
leading
Exchange
exchanges
NEW YORK
Telephone
DIgby
the
of
class
best
at¬
investment
solid
insur¬
And it is with pleas¬
shares.
the length
of suggesting that the
cautious management of the com¬
posite offices makes their capital
issues the least likely to suffer
from any general
inflation of
possible in the future.
rency
cur¬
He
may
however, that the shares
actually be handicapped by
their
own
adds,
high quality, in view of
the companies
being slower than
other commercial undertakings to
distribute increased earnings.
Holders
it.
But
this
is
excellent
in
idea,
in
Policy-Holder.'
reminds
us
the haziest
flation
studying
the
But
'The
subject
that many people have
notions regarding in¬
and
how
forestall
to
it.
What is inflation anyway?
:
"We
f:
will
Inflation
the
answer
is
a
question.
that. the
symptom
amount of money
tion, in
any
in nominal
of the
in
and its circula¬
given area, exceeds
value the
total value
goods and services
that
sale
on
No mystery about
there? ?y Local inflations,
and consequent rising
prices, are
that
area.
i$
known to everybody. But when a
local inflation spreads to
larger
and
larger areas, mystery is gen¬
erated by those lovers of the mys¬
terious who call themselves
omists.
of
What
the
leads
ancient
definition
of
times, 'money'
restricted to cash.
rious
to
the vogue
mystatogue is the lack of
clear
a
econ¬
scraps
of
money.
was a
Nowadays,
paper
In
term
are
va¬
also
the largest in value being
A credit, once is¬
sued, goes into the general volume
money,
bank-credits.
of
circulation
of
the
and becomes part
of the community.
Surely that issue should be a mat¬
ter
of
money
public control, just
as
we
control the issue of coinage?
"Mark
sential
.
of
,
you,
for
the
bank-credit
trade.
,
We
can
t
is
es¬
expansion
proper
,
do
-
without
the
firm
and is
years
formation
The
vj
for
the
director
a
never
have been issued.
of
"Signsare
bank-credit is
the
credits
should
W.
wanting that
being controlled in
this country and in America.
firm
new
business
command of the
seas
keeps
with
will
transact
memberships
supply of commodities, in sup¬
plement to the home supply, and
mat
we
much
allow
of
introduce
our
government to
do
;
insurance
R. E. Bond
v;
date
Debs, to Be
8%
Received
cumulative
,
cumulative
uSK cumulative
157.50 7
—
In order to consummate the
it
is
necessary
the
ceive
that the
favorable
;
r
of
'
re¬
-
majority of the common! and
company
shares for those in¬
vestors
gree
who, in fear of some de¬
of inflation in this country,
aim to
employ their capital in the
type of securities most likely to
through
come
with
the
an
inflationary
least
loss
in
pe¬
pur¬
In analyzing them
they find that fire insurance com¬
panies particularly must share in
the
inflationary spiral
through
their premium account.
As the
value of insurable property rises,
premiums must also rise.
New
dollars
flowing
into
company
treasuries from premium account
can then be employed in the
in¬
power.
Service
time
to
.As
own
of
least
went
thereby bring its
stockholders out
an
the
end
inflationary cycle with
as
,
to
much real
in with.
•
value
•'?? ?
|?
as
at
they
80
price,
City
than
owners
those of
in
any
in
and
London,
efficient
traders
all
States
of
7
the oldest
With
over
Australia,
it
offers the
most
banking service
travellers
and
to
•
U ?
1
'
complete
j
investors,
interested
in
;,
.
.
these
•
>
LONDON OFFICES:
Threadneedle
29
47 Berkeley
Street,
E. C.
Square, W. 1 -
?
<
.
Agency .arrangements with Banke
issues,
;v
results
Boston
,
•
were
issues
las
advanced
10.1%, Pittsburgh issues advanced
6,1%, a group, of miscellaneous
issues advanced .2.3% and New
York City issues show no change.
In the classification by type of
building, hotels led the way again
pro¬
in
Jqly^with
Theatre
an
issues-
advance of 2.7%.
were
in
second
place with
lowed
a gain of 1.8% fol¬
by office buildings which
advanced 0.7%.
Apartment hotels
halted their down-trend of recent
months and
showed a small gain
Apartment buildings de¬
clined slightly 0.3% and a miscel¬
the plan, Cities Ser¬
throughout the U,
:
,
8. A, 7
>
•;
?
:
»
Hayes-Wagner, Buffalo
I BUFFALO, N. Y.—-R , H. John¬
son
& Co.,' 64 Wall Street, 7 New
York City,-.effective Aug.l, took
over
the investment business of
Hayes and Wagner, Inc., 17 Court
Street. The office of Hayes and
Wagner will be continued as a
.
branch
firm: in
direction of Roger R. Hayes, Nel¬
son B. Wagner, formerly officers
of
Hayes and Wagner, and Donald
B. Hilliker.
v.".'
'•
I
....
Iiwp—lap—
.
MII.I II.
NYSE Borrowings
:*
in.
Higher
The New York Stock Excnange
announced on Aug. 3 that the total
of
declined 1.3%. The
gain continued
to be registered by hotel issues,
as
was
which
of $340,061,834.
year-to-date
have
advanced
office building
group,
7.1%.
The
third) place with a 3.6% advance
and theatre issues are now in sec¬
ond
place with
The
only group to reflect a de¬
since the first of the year
cline
a
4.1%
increase.
comprises the apartment hotel is¬
which
price 8%.
have
sues,
X; • I
money
borrowed as reported
by Stock Exchange member firms
decreased
in
'
-
•
I"—pa——1
of the close of business
July 31
$347,033,425, an increase of
$6,971,591 from the June 30' total
which had
in second place, dropped to
been
•
Johnson
New York and will be under the
best
and
|
||,
|
•
.
is the Stock Ex¬
The following
change's announcement;
"The
from
total of money borrowed
banks, trust companies and
other lenders in the United
States,
excluding borrowings from other
members of national securities
changes
reported
by
New
ex¬
York
Stock Exchange member firms as
the close of business July 31,
of
1942, aggregated $347,033,425.
Allen & DuBois Named
Stranahan Officers
7
cipal and interest. ?'?'??.■
Under the company's recapitali¬
| TOLEDO, OHIO.—E. Ray Allen
zation
"The
and
Durwood
DuBois
have
times
by
the
1939-1941
earnings of $13,006,711.
average-
on
of money
the
same
borrowed
basis,
the close of business June
was
as
oi;
30, 1942,
$340,061,834.
I? ||71..77V:
been
han, Harris & Company, Inc., Ohio
total
compiled
elected Vice Presidents of Strana¬
plan, subsidiary debt out¬
standing will be reduced from
the
of
laneous group
1956, $19,857,000 of Cities Service
Oil Co. 5V2% first mortgage and
collateral trust bonds due 1945,
to prin¬
R? H, Johnson Absorbs
of 0.4%.
$8,000,000 of Cities Service
Co.
5*/2%
debentures? due
countries have been covered approximately
by
the
consolidated
other kind of six times
those
K.B.E|
Zealand, Fiji, Papua and New Guinea,
un¬
I Among the most famous of the $120,846,385 to $58,789,385. Annual Building. Both have been with the
"economic mystagogues" to make interest
charges
on
subsidiary firm for many years, Mr. DuBois
public his conclusions on the sub¬ debt initially to be outstanding as manager of the sale department
ject of using insurance stocks as upon completion of the exchange in Toledo, and Mr. Allen with the
an inflationary
hedge is Dr. Lan- offer and plan will be^ $1,937,985 firm's Chicago office at 135 South
dis of American Cyanamid, who and on the $5,770,000 of outstand¬ La Salle Street.
?
?
found some years ago, after a ing notes and the $21,534,800 of
thorough study of the German and new debentures will.be $863,768, earnings of the company and sub¬
French inflations, that fire insur¬ an aggregate of $2,801,753. These sidiaries amounting
in 1941
to
ance stocks performed
better for aggregate interest charges would $16,736,000 and approximately 4.6
their
-
George Street, SYDNEY
countries,
3%, Philadelphia issues advanced
vice Co. will transfer to the com-
as
8,780,009
largest bank in Australasia.
branches
New
de¬
44
change.
no
Year-to-date
plan operative upon the
receipt of exchange agreements
representing a smaller percentage
of such preferred stock.
'
'
both
and
-
remained
York
New
showed
follows:
the right from • time
said date, and
fund debentures,
Office:
and
the previous month's decline.
sues
clare the
Gas
in
6,150,000 '
£23,710,000
;
The Bank of New South Wales Is
870
The year-to-
Phila¬
delphia
issues
advanced : 0.7%,
Pittsburgh- issues declined 1.3%
and a group of miscellaneous is¬
with the approval of the Securities
and Exchange Commission, to de¬
oany
Head
averages" was
Boston issues advanced 1%
extend
As part of
7
-
SIR ALFRED DAVIDSON;
General Manager
Bond
'
£8,780,00$
Fund
Liability of Prop.
Aggregate
Assets
30th
Sept., 1941 --.,-..--£150,939,354
out
by the plan, the. com¬
pany reserves
to
Co.
Reserve
the
1, 1942, comprising also a majority
of the preferred stock; held
by others than Cities Service Co.,
Cities
the
1817)
........
comprising the largest subdivision,
increased
0.7%, thereby wiping
vote
than
in
and
changed.
preferred stock present or repre¬
sented
at
a
special meeting Qf
stockholders scheduled for Sept
vided for
Paid-Up Capital
.
the
$34,200,000 of Cities Service
Oil Co. 6% promissory notes due
vestment
portfolio
with corre¬
1945
in
exchange for an equal
spondingly more defensive tactics
as
the rate of premium volume principal amount of unsecured in¬
debtedness of the company.? Such
increase is accelerated.
-'
1
indebtedness, together with the
One
"economic
mystagogue" present
$40,250,000 of 6% secured
propounds the theory that a fire demand
notes
of
the
company
insurance company need maintain
owned by Cities Service Co., all
no
high-priced
investment- re¬
aggregating $102,307,000, will be
search department but, depending
represented by unsecured promis¬
on
its premium volume rising in
sory notes of the company payable
ratio with the decline in purchas¬
on or before Jan.
1, 1963.
These
ing power of the dollar, can in¬
unsecured notes will be subordi¬
vest its assets solely in govern¬
nated to the new 3%%
sinking
ment bonds and
(ESTABLISHED
on
'
finance, and
principles,
into
our and that the company shall have
received, prior to Oct. 1, 1942, ex¬
Any number of "economic mys- change agreements executed by
che holders of 85% or more of the
tagogues" on this side • of the
stock held, by others
water have undertaken to analyze preferred
peculiar suitability of insur¬
Estate
7
NEW SOUTH WALES
Reserve
•
clined
daily life."
ance
Real
increased
sues
7
plan
plan
vote
.
Zealand
BANK OF
a
During the month 76 of the is¬
167.08Y3 "
162.29%
—__—
gain
2.3%.
$176.66%
cumulative
7%
Bank, Ltd..
Australia and New
Average Up
at the close of 1941.
Principal Ami. of
Gy2%
Deacon's
Glyn Mills & Co. 7
Average, covering 200 real
estate securities, increased 0.7%.
On- July 31, the average price per
$1,0007 bond
stood
at $309
as
against $307 on June 30 and $302
insurance
the
Associated Banks:
Williams
Price
of
Pfd. Stock Series—
ASSETS
£98,263,226
During the month of July, the
Amott-Baker
follows:
up
our
TOTAL
v
preferred stock (with
certain adjustments in cash) is as
so
our
aggregate prin?
equal to the par
an
amount
And
long as the issue and its re¬
demption are under strict regu¬
Burlinglon Gardens, W. I
phia Stock Exchanges,
cipal
Smithfield, E. C. I
Charing Cross, S. W. I
64 New Bond Street, W, I,
J.
Empire Gas and Fuel Co. are be¬
ing offered the opportunity to ex¬
share
noc.
8 West
10
past
of
both the New York and Philadel¬
debentures in
OFFICES:
Bishopsgale, E. C. 2
49
general brokerage and investment
lated unpaid dividends to Jan. L
1942.
The basis of exchange per
A lot
3
Sugar Refining & Mo¬
lasses Company, Philadelphia,
(|Y :,
slump and widespread depres¬
a
sion.
LONDON
of
McCahan
value of their shares and accumu¬
chasing
world
the, latter
preferred stock
call in the credits start
has
the
the
efforts to
riod
of
of
kind.
throughout Scotland
Crouter, ..and Wm. J. McCahan,
3rd, who has been associated with
change their shares, with all divi¬
dend arrears thereon, for the new
and
quite interesting. The 'F. T.'
an influential standing and a
thoroughly sound reputation, and
we like to think it joins the rest
issue
multiplication of credit
for
purely gambling- purposes—
neither goods nor useful services
being produced to equalize the
exchange—tends directly to em
courage inflation.
And arbitrary
'
"All
this
OFFICE—Edinburgh
announcement
(other than Cities Service Co.) of
spending, for us.
ure we
note a leading article in And, of course, we all must indi¬
the (London) 'Financial Times' of vidually refuse to gamble, whether
22nd December commending such at the dogs or on the stock ex¬
shares, the editor going even to change. In other words, we must
ance
of
HEAD
Branches
York
Logan B. Gill, formerly a gen¬
eral partner of Turner, Gill &
largest groups of investment deal¬
ever to participate in a trans¬
action
4-2S2S
of his definition it is
give it in his own lation, we need not fear the worst
inflation, always provided that
words:
new
a
of
New
are
$21,534,800 Vk% sinking fund
debentures,, due Jan. 1, 1962, of
the company.
The operation will
to
necessary
•
York
New
other
WALL ST.
1
on
tainly continued to influence them
to this date. In order to get the
Fuel Co. for
the
Limited partners in the hew firm
of
interest in insur¬
investor
First
Merrill Lynch,
Pierce, Fenner & Beane as dealer
managers,
will
begin
today
(Thursday) the solicitation of ex?
changes of outstanding publiclyheld preferred shares of Empire
Corp. and
ers
with
encouraging the steady and con¬
sistent
of The
in
Exchange,
made
was
1,000 security dealers,
direction
Incorporated by Royal Charter 1727
With
—
Crouter, Bodine & Gill with of¬
fices at 1614 Packard Building.
The predecessor firm of Turner,
Gill & Crouter, which was formed
in 1931, has been dissolved.
General partners of the. new
firm are Gordon Crouter, formerly
a partner in the firm of Turner,
Gill & Crouter, and Robert C. Bo¬
dine, formerly a partner in the
New York Stock Exchange firm
of MacDonald & Co., Philadelphia.
*
involve the services of one of the
ap¬
credited
be
to
Stock
Exch, Offer Commences
Gas and
Bought—Sold—Quoted
Some addi¬
list.
stock
membership
Empire Gas & Fuel Co.
the
PA.
the election of Gordon Crouter to
active and better
more
concerns.
Boston
not
insurance
.
More than
the year to
for
sults
-
thor¬
same
oughness as is applied in prepara¬
tion of annual statements.
Not
-
of
known
under
sometimes misun¬
No attempt is made to
derstood.
■
at
ening and are
PHILADELPHIA,
not
shares
too enlight¬
the mid-year are not
treat
'
...
so-called
the
the market
mately
of
Students
energetic
as
of
Royal Bank of Scotland
NYSE Firm, In Pftila.
by the fear-ridden capi¬
shares
Thursday, August 6, 1942
.
■
;|
Situation
;
•;.••• 7-7y
|.;7'-1"....y.7
|
Interesting
With events pointing to an early
consummation
of the reorganiza¬
Philadelphia Reading Coal
& Iron Co., the company's 5s of
1973, certificates of deposit, and
tion of
6s of
1949
offering
an
interesting
situation at the present time,
ac¬
cording to
a' circular
New
City, copies of which
by the firm upon re-
being dis¬
tributed by Schoonover, de Willers & Co., Inc., 120
Broadway;
will
York
be sent
«uesi
THE COMMERCIAL &
Number 4096
[Volume 156
FINANCIAL CHRONICLE
447.
documents.
Use only the most
employees as custodians of
such vaults and guard their com¬
The Securities Salesman's Corner
trusted
binations with extreme
1 "9.
SALESMEN!!! SEC's New Rule To Force Profit
;;;;
By this time, no doubt every active security salesman is
SEC's
the
latest
aware
force the disclosure of profits on
text of the proposal to compel a dealer
proposal
to
a
care.
staff
strong
of
securities.
the
reveal
best
(The
bid
and
asked
abount 100 questionnaires to vari
investment securities is going to
parties.
They are be necessary if this thing is to be
asking for opinions and reactions. defeated.
Where do we go from here?
Members of the various exchanges
out
interested
and the officials of the NASD
are
also
re¬
going to have their say
garding this proposal.
'
So far
Suggestions For
Preventing Sabotage
CHICAGO
■
,
'(
JERSEY CITY
LOS ANGELES
the„ vital points of your plant.
;1 "10.
Guard against trespassers
through the use of badges, writ¬
^passes, ;qr
employees
FBI
been no mention that any sales¬
men have been asked for an opin¬
INCORPORATED
63 Wall Street, New York
chosen and well identified people
should be permitted to approach
ten
notice that there has
we
Lord, Aihtktt & Co.
prices
stands that the SEC has circulated^
request
on
other vital points.
Guards should
be trained to watch for physical
acts of sabotage, such as
arson,
(and thereby his profits) explosions of dynamite and am¬
to a customer at the time an order is entered appears on the*4nsjde munition, and deliberate damage
machinery.
front cover of this issue.)
Only
carefully
At the present time the writer under¬ to
unlisted
to
Prospectus
AMERICAN
alert guards. The source of power
is ordinarily among the most vul¬
nerable points.
Protect it and
:
Disclosure Is A Threat To Your Bread and Butter
of
Maintain
these
they
identification
themselves.
credentials
carefully
presented.
are
"11; If./you have
,
of
Examine
reason
Investmezit Trusts
when
to
sus¬
pect that any person is engaged
in disloyal activities, report it to
A SUCCESSFUL MARRIAGE
sabotage, made to the Com¬ the FBI.
merce and Industry Association of
ask
a
few
The marriages that end in failure are the ones that
"12.
Make
your
employees
cop the head¬
New York, Inc., by P. E. Foxthink of this proposition.
We be¬
lines.
The successful ones just go on
sabotage - prevention
conscious.
being successful without any
lieve they might learn a few things worth, Assistant Director of the
fuss or fanfare.
And reading the messy details of a
Let them understand that if there
spectacular
Federal Bureau of
Investigation, is
regarding the practical side of the
marital bust, it is not at all difficult for one to conclude that the
any delay or stoppage of work
charge of the metropolitan
securities business and what keeps in
institution rather than the individual is at fault.
due to fires, breakdown, or other
area, were made public on Aug.
it alive.
An analogous situation exists in the investment
5 by Neal Dow Becker, President causes, it will result in delaying
company field./
In the past months it has been
The mistakes (honest and otherof the Association. Mr. Fox worth production with consequent loss
our desire (in this column) to try
both to owners and employees."
wise) that were made by indi¬
urged care in the selection of per¬
and bring out helpful ideas and
vidual
companies in
this field
sonnel; fingerprinting of employ¬
suggestions that have been tested
during the "era of wonderful non¬
MAJOR
ees;
careful guarding of plans,
and tried by practical work in the
fFexas Oil Production To
sense" have been publicized so
INDUSTRY
specifications,
secret
formulae,
actual
selling field itself.
But
Be Increased In August thoroughly and of en that the fine
working models, etc.; a check of
SERIES
now we believe that the most im¬
record of the well-managed units
the technical references of pros¬
Indicative of the part the war is is
portant matter before the security
almost
completely
obscured.
pective key men; a strong staff of
salesmen of this country is not,
NEW YORK STOCKS, INC.
playing in the oil industry, Tel- This writer can recollect only one
alert guards; education of employ¬
bow
much
business
•lier & Co.; members of the East¬ serious
each and
deflection in
the entire
ees in sabotage prevention and the
ern Oil Royalty Dealers Associa¬
everyone of us is going to do in
field during the last seven years.
avoidance of trespassing by the
the next few weeks of August,
tion, ,42 Broadway, New York And yet anyone who is acquainted
use of strict means of identifica¬
1942, but whether or not, the SEC
■City, point out that the Texas al¬ with a representative group of in¬
tion of all employees.
is going to put this new ruling
lowable production of oil will be vestors knows that a
good many
Mr. Foxworth makes the follow¬
into effect.
In our opinion, there
increased
during the month of of them still hold the "institution
PROSPECTUS OH REQUEST
ing suggestions:
isn't a Salesman who is actively
August due to an increased de¬ rather than the individual" to
"1. Use care in the selection of
HUGH W. LONG and COMPANY
mand for petroleum and petrol¬ blame.
engaged in merchandising securi¬
.'.'A:
INCORPOIMEO
particularly
of
key eum
15 EXCHANGE PLACE
634 SO. SPRING ST.
ties for a living that is not threat¬ personnel,
products.
For
investors whose
men;
Get complete information
JERSEY CITY
judg¬
LOS ANGELES
ened with the possible loss of his
ment is still prejudiced by the
Chairman Ernest O. Thompson
about personal history and habits, S
livelihood if this ruling goes into
of the railroad commission said
undue publicity
given invest¬
families; find out whether the
effect.
the regulatory agency would is¬
ment company failures of the
1934
prospective employee has any fi¬
,70 M
13.17
17.57
1935
Every salesman, in our Opinion, nancial interests, relatives, home sue an August statewide oil pro¬ : past, it might be revealing to
.85
16.90
22.15
1936
1.20
V
should get busy.
20.83
27.28
duction order with a daily permis¬ ! cite the record of those com¬
This is the time Pr property in a
foreign country;
1937_1__
1.30
12.48
20.23
to express yourself.
sive flow "just slightly under the
Now is the Under threat of harm to
panies who receive no publicity
1938
.70
/;• 22.46
14.01
relatives,
time to act. Send your letters to the
indicated market demand of 1,- : —i.
1939
.90
14.49
pr property: confiscation; Germans
,23.84
e., the successful ones.
For
1940
.80
13.67
23.82
"Chronicle," giving your opinion seek aid first from those who •396,700 barrels."
example, an outstandingly suc1941
.84
12.33 ; T;
23.32
of this profit disclosure provision. have interests under German con¬ ;
He> added August will have 22 i cessful
"marriage"
of invest¬
.36
1942, 6 mos.
11.98
23.33
(If you do not wish your name trol abroad.
ment managerial ability and in¬
producing days and nine holidays.
Total-_ $11.35
'
published your views will be
vestor confidence is to be found
"2. Fingerprints offer a reliable
Average daily production in
in
printed anonymously.)
Organize means
the
record
of
for
Wellington
checking
up
those July was 1,187,283 barrels.
Average annual distribution
„$0.91
yourselves to bring about the de¬ who have bad records. Frequently
Fund, Inc., which has operated
I v"It is interesting to note that
When a record of investment
feat of this unworkable proposal.
as
a
mutual fund for over 13
fingerprints have disclosed that
there is the closest relationship
company
performance such as
Show how impossible it will be to those with
years under the
guiding hand
espionage and other that we have ever had
between
this is compared with the results
go out and Sell people securities criminal
of Walter L Morgan and his
records
were
seeking the nominations and the
indicated
obtained by the average inves¬
if you first have to disclose your new
associates.
,employment in war produc¬
tor for himself, it becomes all
| market demand," Thompson said
%
gross profit.
Point out how it will tion*
In the Wellington Fund report
in a statement.,
the more impressive. For it is
encourage chiselers to go some¬
"3. Watch for any change in the
%
to shareholders as of June 30,1942,
a well-known fact that the in"There is less than 1,000 barrels
where else and buy the same se¬ financial condition and
spending 5
a
comparison is made between the
difference between the two fig¬
vestor who relies on his own
curity from one who will sell it habits of employees. This may* be
performance of the Fund and the
efforts plus the occasional and
for a few dollars less than your significant, for our enemies are ures."
; composite
Dow-Jones Averages
haphazard advice of "financial"
Higher Demand Seen
offering price, even though you always trying to purchase infor¬
from the high of the 1929 bull
friends seldom equals the per¬
have spent time and effort,
in mation.
"This is a definite indication
market up to the date of the re¬
formance jpf the Averages. In
many cases far outweighing
the
"4. Encourage 'Dont Talk' cam¬ that Texas is going to be called
port. Whereas the per share net
small compensation you oft times paigns
among employees.
Infor¬ upon more and more to supply the asset value of the Fund on June
(Continued on page 455)
receive for your work and your mation of value to the
enemy is
constantly increasing demand for 30, 1942, was equal to 88.17% of
services.
Show that in addition often
oil. Texas is ready to fill the de¬ the 1929 market
divulged innocently by talk¬
high point, the
to selling a stock or a bond that ative workers.
In other instances
mand."
Dow-Jones
Composite
Average
you are also selling a service and it is purchased from gullible or
At the
state-wide
allocations was only 36.76% of its 1929 high.
that so far, no one has been able
disloyal individuals.
hearing Monday, purchasers no¬ These figures include dividends
to put a value on service.
"5. Guard documents and plans
(In
Send fir
minated 1,472,157 barrels of oil paid by the Fund and a similar
this- respect what difference
is carefully. Plans are copied, work¬
:daily, being an increase of 27,494 adjustment for dividends paid by
Prospectus
there between the securities sales¬ ing models and finished
products barrels over the July nomina¬ the stocks in the Dow-Jones Aver¬
man
who takes care of his cus¬ are often photographed
by enemy- tions.
age. Following is a year-by-year
tomer's financial health and the agents.
Set up checks and time
presentation
of
the
Sinclair-Prairie and
Gulf Oil statistical
dentist or the doctor who minis¬
ion.
not
We hope
overlook
that the SEC will
the
opportunity to
salesmen
what they
Twelve suggestions for prevent¬
ing
-
'
1«20
fflGH
•V
..
SERIES
■
,
,
-
___
-
•
,
>
*
t
~
-
-
.
schedules that will make this im¬
patient's
physical possible in your plant.
Would the SEC also pro¬
"6. Check technical
his
to
ters
health?)
-
-/ ■
references
.
- -
that a dentist should tell his of prospective skilled employees.
patient the cost of the gold, the Accept none ori their face value.
plaster and the cotton he's placed They are sometimes faked, even to
in his patient's head before he fhe extent of the presentation of
pose
would
for
be
his
allowed
to
professional
'
" :
'
services?'
fix
the
advice
fee
and
'achievement story' clippings from
newspapers
non-existent,
,
journals
whole
which
or
which
prove
from
have
to
be
technical
been
proposition, in our
University
diplomas
fantastic, that we published.
that anyone could should be verified by- the uni-;
ever
suggest that such a ruling versifies purported to have issued
■ /.'
=>
!"f
should become part of the law them.
"7. Where a company has plants
regulating the securities business.
Nevertheless, the
proposal has in several cities, personnel data
be
exchanged : between
been made, and even more • im¬ should
portant, it has a chance of actually plants. Employees discharged for
going into effect.
Now is the cause from one plant often go to
time
to
get together and
act. another plant of the same com-,
Every security salesman in this oany and obtain similar work.
land will be affected. Every sales¬ While they may not be intentional
This
opinion
can't
man
is
never
so
believe
should be interested
in see¬
ing to it that this ruling does not
saboteurs, they cause loss of valu-;
able time and vital production.
"8. Have adequate vaults for the
Ihrough.
Cooperative action
on the part of everyone connected
protection of specifications, secret
with the retail merchandising of formulae,
and other important
go
petitioned the commission to lift
all
shutdown
days in the east
Texas, in order that the field's al¬
location might beTncreased.
Fund's
Republic
record:
Market
Price Plus
Accumu-
Distri*,
■
la ted
butions
Panhandle
Stocks Pulled
Market Price
Distributions
Per Share
End of Period
1930__
$1.00
$18.47
1.00
12.86
14.86
1932
1.00
11.46
14.46
.70
11.54
at
Distributing Agent
BULL, WHEATON & CO. Inc.
$19.47
1931__
15.24
1
Phillips Petroleum asked for an
increase in Panhandle crude, cit¬
ing that storage is being decreased
Investors Fund, Inc.
1933-__„
40 Exchange
Place, New York
rapid rate and that the com¬
pany: now. is below minimum re¬
a
quirements
stocks.
on
WELLINGTON
J. "*\-
^Ginclair-Prairie took the lead in
Peeking
Texas
an
FUND
increase in the north
district
where
it. recently
has opened a number of pools.
..
It
.
also, is
pulling
storage.
Total
north
Texas
north
on
Texas
nominations
was
20,000
for
barrels
higher than in July.
;
Tellier
in oil
be
&
Co.
have
s
Prospectus of. this Mutual
Investment
able
through
ment
Fund
your
Dealer
or
Avail¬
Investfrom
specialized
royalties since 1931 and will
Prospectus
W. L. MORGAN & CO.
glad to furnish information to
dealers seeking more details about
this .type of
investment.
'
.
,
;
Packard Bldg., Philadelphia
may
from authorized
The
PARKER
ONE
COURT
be obtained
dealers,
or
CORPORATION
ST., BOSTON
THE COMMERCIAL & FINANCIAL CHRONICLE
448
State
FLORIDA
Thursday, August 6, 1942
Liquor Tax
ability of its securities and the
low rate of interest on its bonds.
yy
Hikes Foreseen
This
Gasoline rationing and the
ber
FLORIDA
pushed above the levels
the Senate Fi¬
Last week when
just
ing
Committee announced tact¬
nance
to
prior
the
for Japanese attack.
the question of taxing
Federal, State, Local
hearings
turned
matters.
eliminating the
of
tax
exempt status of municipal secur¬
ities
has
been
discussed
ad
Federal,
ernments
inasmuch
the matter hang,
to
let
as
tnere is
state and local
spent more than
rise
year—a
and
before defense
considerable sentiment
34%
of
cles
comprehensive
will
We
inquiry
any
be glad
regarding
obligation.
at
no
gov¬
^Company
CHICAGO IUINOIS
j.
R.E.Crummer
BIDC
1ST MAT BANK
1938,
prepara¬
tions
one
of
,
.
the court held the State
case
California, for purposes of tax¬
Treasury proposal to remove tax
could
apportion
profits
Though national defense costs, ation,
made by an enterprise operating
quadrupling in the preparedness
in
several
States
even
though
period, accounted for the bulk of
the increase, outlays for all but operations in California were car¬
ried on at a loss. • Another de¬
two of the nine groups of public
cision held liable for the Tennes¬
functions also rose from the 1938
see income tax a corporation oper¬
level, according to the analysis,
ating in interstate commerce and
based on
and Treas¬
exemption from future State and
ury
least
the
for
present.
However, the same old monster
his
reared
again' in
head
ugly
Washington on Monday. At that
time a veritable galaxy of promi¬
appeared before the
to
attack
the
nent citizens
Committee
said
U, S. census
government securities as an
local
which did not show larger expen¬
impairment of municipal financ¬
ditures
were
"protection," includ¬
into State
rub¬
and
tax
distributing gas through arrange¬
ments with a local selling com¬
pany.
of
for
income
State
rights.
State
of
invasion
an
ing police, fire and inspection, and
'
.
of
gations
favorably
compares
with the rates
gov-)
Federal obli- *.
on
character."
like
Tenn. Debt Service
Reported
Fully Secured
ernments, as are license fees for1
The State of Tennessee can con¬
cars and trucks.
The yield from
tinue to meet all its debt service
retail sales taxes may decline also
requirements
throughout
the
as
goods shortages bring about a
years,
1942-'45, even if gasoline
contraction in trade volume.
yr,.
tax collections shrink under rigid
There is no prospect that in¬
rationing of < gasoline, beginning
creased yields; from other State
Sept. 1, to 47.5% of the yield ob-:
taxes will offset the decline in
tained in the fiscal year ended
gasoline and motor vehicle license June
30, the Tennessee Taxpayers
revenues. State income taxes were
Association declared Monday. The ,
more productive last year, except
Association
insisted
that
this;
where rates were reduced, but
could be accomplished without rewith profits of many industries
sorting to the use of various other
now on the decline and wage and
revenues pledged to
debt service
salary stabilization in prospect, by the State's debt retirement act
income tax collections may fall
of 1937, or to the use of the State's"
off.
ether "strong lines of defense."
In the light of past experience,
The
Association
made
these
proposals for higher State taxes statements as a refutation of a
.
on
alcoholic beverages will in all
published report that the anticipa¬
ted
rationing of
gasoline
and
proposals other factors might make it neces¬
raise a serious problem because
sary for the State to refund some
Congress has already raised the
$18,000,000 in bonds maturing in
Federal liquor tax rate repeatedly.
1944, to issue short-term notes
The 1942 revenue bill, as passed
to absorb an almost certain gen¬
by the House of Representatives, eral fund
deficit, to enact a sales,
probability be made under these
circumstances.
Such
*
tax
stiff increases in pres¬
or some
ent
taxes, and to cut certain ap¬
propriations; in half.
Personal Property
Pa.
Levy Broadened
The State Supreme
Court ruled
recently that shares of foreign in- in¬
companies licensed to do
surance
business
now
and
State
the
for
liable
are
personal
county
tax.
was in-:
While only a trivial sum
in the test case,
volved
which
Pennsylvania,
2% gross business tax;
State
the
to
in
pay a
legal
ex¬
perts said the decision would pave
the way for the State and coun-;
ties to collect substantial amounts
the
on
levy.
•
.
New Orleans Bond
,
v
-
i
ence" of State and local governments.
J.
Tobin,
Conference
the
told
Secretary
I
that
Committee
(
pal bonds would be equivalent to
mice."
few
the
portant"
the
from
new revenue
standpoint
'
of
ernment, adding that it would put
"heavy burden" on cities seek¬
funds
borrow
to
facilities
000 to
needed
finance
to
because
of
for
$2,000,000,000
in
war
$467,000,000.
Interest
for the Federal Gov¬
a
ing
totaled
,1941, with the outlay by local gov¬
ernments dropping from $510,000,-
characterized
He
Treasury proposal as "unim¬
which
the three levels of government
"burning down the barn to catch
a
increase occurred
for transportation
—mainly streets and highways—
taxing
future issues of State and munici¬
Another 20%
in expenditures
In
costs mounted
State
and
during
retirement
10% for Federal,
governments
three-year
while education costs
period,
held
for
claims
insolvency case
lien for taxes, the
that United States,
an
gasoline taxes were
superior to
claims of the State
of Texas, with circumstances
in¬
that neither govern¬
fully perfected lien.
dicating
had
ment
rose
jurisdiction may not be
subject to sales taxes on pur¬
chases or sales.
No constitutional
clusive
about
6%.
expansion.
court
purchases
immunized
held, in effect, that post exchanges
on
government reservations over
which the United States has ex¬
local
the
;
a
-
Action of the court in two cases
debt
and
involving
ort
such
by
•
agency.
of
State Defense,
on
collected
be
made
most one-third.
Austin
the
[not
0 al-*
076,000,000 to $1,433,000,000
I
,
The
New
details
York
of
the
finances
of
State'were
presented
Comptroller Joseph
V. O'Leary in condensed form, in
last
week
by
the summary report for the fiscal
ended
year
June
30, 1942.
This
is
intended for
departure
new
general
and is designed to be
use
intelligible
marks
to
layman.
the
first
the
time
that
a
It
Time Extended
in The
Tax Powers
Professor
Lutz,
of
Public Finance at Princeton Uni¬
versity, said that interest rates on
State
and
municipal
securities
probably
would
rise
a
full
per¬
centage point if the Federal Gov¬
ernment
their
taxes
Whether
not
or
j Following
cheap
interest.
money con¬
original
its
recom¬
bonds
mendation, the Treasury submit¬
ted a compromise offering to ex¬
empt interest of from Vz to 1%
on existing bonds if remaining in¬
come was subjected to taxation.
•
Market Shows
Little Reaction
Despite
these
/VA
latest
develop¬
ments, that might-normally be ex¬
pected to affect trading and prices,
the
municipal
dull.
The
market
"Wall
Street
continues
Journal"
reason
for
this
presum¬
ably lies in the fact that inves¬
tors and dealers in State and
securities, judging the sit¬
city
anticipated
Even before
uation correctly, had
their requirements.
the
Senate
Finance
Committee
took action with respect to pro¬
taxation of income from
outstanding
issues,
long-term
posed
State
and
The
Court's pol¬
icy of wide latitude in favor of
State jurisdiction to tax, especially
where
private persons are in¬
volved, was continued in decisions
covering. State taxation handed
down by the high court during its
1941-42 term, the Federation of
Tax Administrators reports.
Power
of
the
to
State
tax
was
sustained in three
precedent-over¬
upholding
the
Alabama sales tax on purchases
made
by
cost-plus-a-fixed-fee
decisions
ruling
contractors with the United States
remarks:
The
*
.
S. Supreme
city
bonds
on
the
had recovered to their
level since
the week
of
(a
tax
companion
use
a
hold
a
of
to
rule
.yyy yyv-y^ yy.y
If the rule is
for
over-counter
disclosure
adopted, it would
owned
by
a
deceased resident of another State.
Significant decisions relating to
best
tions
Dec. 5, 1941. Quotations on some
one
of the choicer quality issues
the
income
taxes
on
doing business in
State
corpora¬
more
than
down
by
court, the Federation said.
In
were
handed
of
comes
the
that
involving tax-free bonds there is
no "established" market.
Perhaps
the most
issue
of
recent trade in a given
ers
to
occurred
weeks
months
or
and until there is a "meeting
the
minds"
of
the
buyer
seller involved in the next trans¬
"In
action
ket"
there
in
the
often
is
usually
meaning of that term.
no
"mar¬
accepted
any
The
is reflected in the
June
However, this ex¬
with the under-:
standing that the Board will in
the meantime pass the necessary
5, 1942.
resolutions to authorize
tisement
for
bids
to
the
be
opened
an
of
sale
refunding
$12,000,000
adver¬
a
new
with
issue
on
or
about
Sept. 2, 1942, so that prompt ac¬
tion can be taken in calling at par
the entire issue of 4%
Public Im¬
provement bonds in the event that
on
31,
Aug.
amount
of
deposited
plan.
large
as
1942,
bonds
under
In this
assured
that
saving
way
it
sufficient
a
have
the
not
been
voluntary
the city will be
will
enjoy
of interest
as
the
early
possible, either under the vol¬
untary plan
of
sacrifice
high market¬
the
facts
these
of
tension is granted
or through the sale
$12,000,000 of refunding bonds."
Omaha
essential services which
for its people.
State's finnaeial soundness
of
1
brief
a
1942, for the deposit of the bonds
the voluntary plan dated
tax¬
the State provides
unable
under
report,
without
were
Liquidation, City Debt,
has agreed to give an extension
until the close of business Aug. 31,
"This status," he writes, "was
the
that
bonds-in by Aug.
view
Board
financial condition is sound.
achieved
of their clients
get their
Board
legitimate ' reasons;
deposit them if
extension were granted.
Comptroller
O'Leary points out that the State's
of
;
but would
$54,000,000 on June 30, 1942.
and
the
advised
various
some
average
the
have
for
$94,400,000 at the end
of the fiscal year 1933 was con¬
verted into a surplus of more than
In
correspondence with many:
if a short extension is given.;
Moreover, local investment deal-;
of
deficit
;
large additional blocks will come:
citizen under¬
done with the
money which he and his fellow
taxpayers contribute to defray the
prices to prospective customers
on
all but newly offered secur¬ cost of government. Only in this
ities. Virtually all municipal bond way
can
an
intelligent public
trading is done over the counter opinion concerning fiscal policies
except for a few New York City be created.bonds occasionally traded on the
A chart on 10 years of New
New York Stock Exchange.
York State finances shows how a
municipal
"
*
in
stand what is being
Some
report:
active
simple annual
number
porate dealers in the over-counter
market to disclose bid and asked
ago
shares
the
$10,-'
out of town owners indicates that
increases sharply, it be¬
more important than
ever
require municipal as well as cor¬
transfer
of
As
bodies.
payers
least
"Actually only $9,386,000 of the
were
pledged to the plan;
within the above time limit, but
financial report by the New York
6, in order to State Comptroller sets a desirable
discuss the SEC's proposed price
precedent for other governmental
trading.
of at
bonds
this afternoon, Aug.
traders point
out that in countless transactions
a
The issuance of a
owners
The Board then went on
Aug. 1.
meeting
cost-plusa-fixed-fee contractor); taxation
of a power of appointment cre¬
ated by the will of a non-resident,
the decision arising from the NewYork estate tax law; and a tax
by the chartering State (Utah) on
State
upheld
purchases by
on
average
had
case
will
Club
Bond
Municipal
York
New
from
the
800,000 of bonds should give their
consent to the plan on or before
report.
The U.
of the interest
public improvement
4% to 2% required
the
on
that
plified review has been issued by
the Department of Audit and Con¬
trol, with the aim, of increasing
popular
understanding
of
the
State's finances.
The usual long
accounting tables and list of State
investments .i will
be
published
separately for the comparatively
penalized.
L.
of
».
reduction
untary
rate
sim¬
tinues, he testified, cities will be
Harley
1
,
.Board
Orleans
Liquidation, City Debt, announced
Monday that the plan for the vol-1
expenditures given in the question .was decided, however;
analysis did not include $203,000,- the court merely held it a fact that small number of interested
part¬
000 for unspecified Federal and a post exchange is a Federal in¬
ies.
The streamlined report of 24
state aid to local governments, strumentality, entitled to any im¬
pages, a third of them devoted
which
cannot
be
allocated
by munity the War Department itself to
pictorial
charts and
photo¬
function.
might have.
I
graphs, gives the essence of sev¬
eral hundred pages of data con¬
U. S. Supreme Court
Municipal Bond Club to ;
tained in the customary annual
Decisions Favor State
Discuss SEC Proposal
Net
New
»
Deposit
.
~
,
re¬
Gasoline taxes are a major
Two State occupation taxes in¬
"miscellaneous," including general volving operations in more than raises the liquor tax from the
one State were upheld.
The West
Mayor F. H. LaGuardia of New administrative and judicial costs.
present rate of $4 to $6 a gallon,
York City told the Committee that
Of
the
three
governmental ; Virginia business and occupation which compares with a rate of
tax was upheld as imposed on a
the Treasury proposal would re¬
levels, the Federal Government t
$3 per gallon in effect in 1939.
Pennsylvania
company
on
the
sult in no net gain for the Fed¬
almost doubled expenditures in
The pyramiding of liquor taxes
basis of gross value of sales in
eral
Government, while having
the period 1938-41, state spend¬
by both Federal and State author¬
containers 'purchased
in other
"disastrous" consequences for mu¬
ing increased more than 10%,
ities, if carried too far, will deStates.
The Mississippi privilege
and local expenditures fell off
nicipalities.
"If these securities
feat its own end. So large a mar¬
tax, measured by gross sales, was
are taxed," he asserted, city tax¬
6%.
gin of profit would thus be of¬
Next to defense costs, outlays upheld as applied to a manufac¬
payers pay for it,
not the rich
fered
the
bootlegger that legal
for health and welfare programs, turer in that State, even though sales of tax-paid liquor could well
guys
these youngsters from the
about two-thirds of his products
Treasury Department say. We've including relief and social secur¬
decline sharply even while total
were
sold in and subject to the
heard from all these youngsters ity ; payments, were
the largest
consumption
continues ;■ to rise.
New York City municipal sales
and they just don't know."
public expenditures in 1941. The
True,
the
great
expansion
in
tax. ;
y?y
The Mayor's plea was second¬
Federal y Government y. spent '§ $2,popular purchasing power permits
States did not fare so well in
ed by a dozen others, including
the imposition of a higher tax rate
475,000,000 while the states spent
cases where they were opposed
Henry Epstein, Solicitor Gen¬
than was formerly possible before
$1,261,000,000 and local govern¬
ments
by the United States, the Fed¬
eral of New York State, who
$618,000,000.
The
total
consumption of tax-paid liquor is
eration said.
In one,i the court
contended that removal of the
represented nearly 20% increase
seriously discouraged.
However,
held
Congress could constitu¬
over outlay in 1938 for these pur¬
there is clearly a tax level beyond
present exemptions would not
tionally immunize operation of
raise any "substantial revenue"
which it is dangerous to go.
poses.
:gian instrumentality of the United
for a generation and that it was
Expenditures for natural re¬
States and, having done so, the
N. Y. State Streamlined
intended to destroy "both the
source s—forests,
:ir
reclamations,
North Dakota sales tax could
political and fiscal independwater control, etc.—rose from $1,Financial Report Issued
>,$1
and
ing
''
The two categories
figures.
more
source
familiarity with these
of
bonds.
cut
ceipts.
handling Flori¬
a
them
$24,-
over
war
us
to / answer
began, and analysis by the
to exist in Congressional cir¬
j Federation of Tax Administrators
against such enactment, at showed today.
said
gives
municipal
| 000,000,000 during the 1941 fiscal
and dealers were willing
nauseum
issues
background
Expenditures Show Recent j
This Large Rise
other
to
business
da
and
the fraternity relaxed
only,
;
issues
bond
municipal
future
Our long experience in
7
fully that it would leave open
will
deeply
more
MUNICIPAL BONDS
obtain¬
surprise
shortage
rate
Housing Authority
Seeks Bids
1
Following recent successful of->
ferings of similar bonds by local
Volume 156
Number 4096
THE COMMERCIAL & FINANCIAL
CHRONICLE
housing units around the country,
Omaha Housing Authority of
Omaha, Neb., announced Tuesday
the
that it will offer for sale on next
Wednesday
of
000
issue of $3,681,-
a new
bonds
to
refund
amount of bonds issued
Under
1940.
bidders
are
turities
for
the
to
like
a
Oct. 1,
of sale,
on
terms
stipulate serial
each
ma¬
April
1, begin¬
ning April 1, 1943, and ending not
later
than
Corporation Stock
1998.
is
also
due
not
It
provided that J not
than $3,128,000 of the bonds
shall be designated as series
A,
more
and
later
this series of the
required to
than
1979.
Retirement Plan
On
issue, bidders
are
the rate of in¬
name
terest.
The balance of the bonds,
designated series B, will
carry a 314% coupon and will be
be
to
sold to the Federal Public Hous¬
ing Authority,
financed by life insurance will assure the smooth
passage ofyour business through the emergency
Major Sales Scheduled
We list herewith the
im¬
more
portant municipal offerings ($500,000
over—short term issues
or
cluded),
in the
the
which
are
future.
near
successful
to
The
ex¬
of
names
bidder
resulting from the death of
Y up
come
and
stockholder.
a
the
for the last previous
runner-up
issue sold are also appended,
(Ed. Note—YVery few municipal
issues of major size
are
;
bond
scheduled for award, in the near
future.
With
expenditures
for
local
improvements held to
necessities
war-time
naturally is that for
the
come
bare
by the demands of
policies, the ' prospect
amount
time to
some
of
new
issues
coming to market will be small.)
Thus the
August 10
$700,000 San Francisco, Calif.
June
On
;
29,
awarded
1942;
issue
an
to
a
by Blyth & Co., Inc. of San Francisco. The
Bank of
America
N.
T.
& S.
tion
their present
to
A., San Fran¬
cisco, was runner-up in the bidding.
family of the deceased stockholder
The survivors, whose interests in the business
city and county
syndicate headed
the
holdings,
can
is
fairly compensated
increased in
propor
are
continue without embarrassment
,
August 11
$503,000 Birmingham, Ala.
Last
A
January this city awarded bonds to
syndicate
headed
New
York.
New
York
The
and
by
Blair
Union
&
Co.,
Securities
associates
entered
Inc.,
a
simple
isn't it?
arrangement,
Yet what misfortunes have
come
oi
Corp. of
the
next
best bid.
$1,000,000 West Va.* (State of)
Similar
the
of 'road
issue
April
on
toCa
14
Shields &
Co.
bidding
of
bonds
was
Syndicate
New
York.
awarded
headed
We suggest .that yon,
by
Runner-up
was
>'
3
"
•'
G
<
r'\
^
V'C'
;"r,
?
" *0.
'
x
'
It
'
J
•
'
to a
goes
'
1
in hand with efficient
management.
/Y^Y'Y'V- August 12
f
stockholder* give serious thought
Stock Retirement Plan for
your own business enterprise.
jfV,
\
V
c"'
U V'
the Un'on Securities Corp.
of New York, and associates.
•
as a
in
hand
'
^
~i»
15'.
$3,681,000 Omaha Housing Auth.,
Neb.
See
on
remarks given
in separate Item above
A Massachusetts Mutual
representative will be
this offering.' V
$7,900,000 Seattle, Wash.
This
is
the
issue
of
municipal
light
glad
to
give
you
full information.
and
bonds
originally offered on
May 25, and the sale postponed because
of priorities.
On March 30, this year, the
city awarded bonds of like nature to a
power
revenue
group headed
Chicago.
by
John
Nuveen
&
Co.
of
N3TA Plans
Municipal
: And Corporate Forums
(Continued from First Page)
&
Durst, Los Angeles, Calif.; and
Andrew L. Tackus, Putnam & Co.,
Hartford, Conn.
Y Registration fee for Friday and
LIFE
Saturday will be $10; for Saturday
These fees are based on
INSURANCE
C0MPANT
only, $5.
expected cost to the National As¬
sociation
and include
the Association.
no
profit to
Checks should be
made payable to the National Se¬
curity Traders Assn. Inc. and for¬
warded
to
Bertrand J. Perry, President
Organized 1851
J.
Leo
Doyle, Doyle,
O'Connor & Co., 135 S. La Salle
Street, Chicago.
If members are
unable to attend,
their advance
registration fee will be refunded.
The
committee
suggests
that
hotel reservations be made early.
A number of
rooms
have been
re¬
served at the Palmer House which
it is believed will be sufficient to
take
care
of members, but due to
the
Stevens
Chicago;
the
see
and do in
Association
members will not hesitate to
hopes
bring
their wives with them.
on
Congress hotels
The Association is most desirous
Aug. 1, it is possible that late
might have to take
of having a representative meet¬
ing. It is of vital importance that
a
quorum
be obtained for the
and
reservations
less satisfactory
accommodations.
Ralph G. Randall, Mason Moran
meetings of the National Commit¬
With the speakers scheduled
& Co., 135 S. LaSalle
tee.
cago
members
Street, Chi¬
is in charge of advance hotel
reservations.
There
will
be
a
limited number of air-conditioned
rooms
available.
There
will
be
no
program
pla nned for the ladies but there is
and
will
find
the
Corporate
Municipal Meetings of
tional interest and will
excep¬
also have
the opportunity to renew many of
their old friendships and make
new ones.
•
•'a.,
SEC Applications For
Y\ ,;->V.,Y.-
Fifth Avenue,
Broker-Dealer Registry
The
Army Air Corps taking over
the
plenty for them to
following applications for
registration
and
with
Exchange
the
Securities
Commission
brokers and dealers
were
made
as
on
the dates indicated:
July 1, 1942—E. R. Jones & Co.,
Street, Baltimore,
Md.,
Thomas
Hanson
Sherman
221 E. Redwood
withdrawn
and
as
a
general
partner
Edgar Malcolm Everton ad¬
mitted
as
a
general partner in the
firm with Elisha
Riggs Jones.
July 6, 1942—Irving R. Berg, 516
Schulhafer
sole
from
New York City, a
T. Hines,
Eighteenth Street, Tulsa,
sole proprietorship.
proprietorship; J.
2219 East
Okla.,
»
a
July 7, 1942—Peterson & Com¬
pany,
N. J.,
663
Anna
Mae
Main Avenue,
Passaic,
Carl O. Peterson, formerly
proprietor, general partner, and
having
partnership.
withdrawn:
July 14, 1942—W. H. Protiva &
Co., 414 Pontiac Bank Building,
Pontiac,
Mich.,
Clarence
J.
Nephler, Jr., formerly a partner,
now
sole proprietor, William H.
Protiva having withdrawn.
Johnson, special part¬
ner.
July 15, 1942—Marx and Com¬
July 11,1942—T. U. Crumpton &
Company,
505
First
National
pany,
204 Brown-Marx Building,
Birmingham, Ala., Henry M. Marx
Building, Birmingham, Ala., Tom
an
Ulmer
Crumpton, sole proprietor,
to Otto
J.
Harrison,
Kayser, and Robert B. Fore.
J.
Jr.
and
Louis
office
of
the firm
in
addition
Marx, V. Hugo Marx, Leo
**
THE COMMERCIAL & FINANCIAL
450
the
Proposal To Force Profit Disclosure By
Revealing Bid And Asked Prices Is Unreal'
istic And Impractical - Must Be Defeated!
SEC
i*
money
left
have
you
This is
damage would have been done.
machinery of this country to be disrupted—nor even
take the chance that such a condition might arise.
greater importance than the possible harmful
effects of this proposal—the stagnation of markets, which
Of
and the elimination of
salesmen who could no longer
believe it would eventually cause,
and create buying interest if their customers
had the tacit right to fix the amount of their profit—is the
fundamental principle involved.
IF THE SEC CAN USE
THE POWERS
GRANTED TO IT BY CONGRESS TO
COERCE AMERICAN BUSINESS MEN IN THE SECURI¬
TIES BUSINESS INTO DISCLOSING THE AMOUNT OF
THEIR PROFIT BEFORE THEY CONCLUDE A BUSINESS
afford to go out
TRANSACTION, THEN THE GOVERNMENT HAS
ESTAB¬
EVERY OTHER CITI¬
LISHED THE PRECEDENT THAT
FORCED TO DO LIKEWISE.
ZEN OF THIS LAND CAN BE
ONE LINE OF BUSINESS
IF GOVERNMENT CAN FORCE
MARGIN, THEN IT CAN
FORCE THEM ALL TO DO SO. IF THIS POWER IS ONCE
HANDED OVER TO REPRESENTATIVES OF GOVERN¬
TO
RIGHTS
OF
BILL
THE
THEN
MENT,
PROFIT
ITS
DISCLOSE
BECQMES
A
MOCKERY.
5
financial industry are
the United
in order to
the privilege of having their families continue to live
Today thousands of men from the
serving their country in the armed forces of
States. They are ready to make every sacrifice
protect
as
Americans.
It is the duty of
those who stay at home to
protect and preserve the liberties for which they are fighting
on the field of battle.
In our opinion, it is more important
they should be able to come back some day to their own
their affairs according to
the dictates of their own consciences and the principles of
that
The
Americans have always done, than any
consideration contained in this proposal.
play,
as
other
SEC
the
is
permitted to
happen here!
This must not
you
;
transaction
wholesale market
tail for they have no
opinions regarding this proposal. The text of
proposal to compel a dealer to reveal the best bid
and asked prices (and thereby his profits) to a customer at
the time an order is entered appears on the inside front cover
'">■
(Continued from page 442)
in trying to locate
business
A broker
Anyone experienced in the
that situations such as this exist every day.
could check every house in his locality and still not find these
tell
you
offerings,
and
bids
some
outside
broker
or
his interest in the stock.
inside
they might be coming from
local broker that does not want to disclose
in
as
cases
many
Therefore, immediately on making
quoting him the best
ment to the customer that you are
the state¬
independent
automatically a liar.
5. The Securities and Exchange Commission have taken years
bid and asked price you are
the investment bankers
to concoct this insidious rule so they now give
seven
6.
profit
days to consider.
to disclose its costs
What other business in the world has
on
the major part of its business.
up Investment Bankers Association
If
quotations
and
an
of America!
this writer's opinion, any more
in
firm
and
puts
us
"Security Dealers of North
bank
listed
in
metal
our
stencil
are
publication, which
elsewhere.
approximately 7,500 names in the
United States
and
700 in Canada, all arranged
alphabetically by States and
Addressing
every
position to offer you a more up-
in a
to-the-minute list than you can obtain
/ There
for
charge
$3.50 per
Cities.
thousand.
Publishers
25
of "Security
Spruce Street
—
Co., Inc.
Dealers of North America"
BEekman 3-1767
—t
New York City
remove
any
size of 100 shares or less, for
any
front of George Washington's statue and hold
the Treasury steps in
a
stock. If the proposed amend¬
Every investment dealer
is going on, and
Let
hope I
tell you this—and I
me
wrong—if this this ruling
am
and if there is no court test of its legality, and
be put into effect
can
should let his Congressman know what
he should raise hell with him to put a stop to this
totalitarian grab for power.
crazy,
further, if it is accepted without a fight on Constitutional grounds,
has finally degenerated into a totalitarian mode of
then this country
sues.
the
"In
beginning,
this experiment.
maining
on
100-share-unit
a
active
would be turned
and
odd-lot
are
(Continued from page 442)
,
both
a
and
bid
asked
an
.
after the
tained
sonable
which
the dealer
transaction
at
price
the
able to ac¬
was
which is
make
and
preserve
of
(1)
the information
(2)
the- date and tirrie
of which
as
prices
such
bid
and
closed and
required
was
ondly
If
the
to
suant
disclosure
B
or
is
Paragraph
of
C
made pur¬
1
hereof, the fact that after the ex¬
ercise of reasonable diligence he
Exemptions
asked price,
or
of
—
required
(1) that the bid and asked
prices
so disclosed
apply to an
of the security less than
by
amount
or
purchased from the
customer, if such be the fact; (2)
that the information pertaining to
the bid and asked
prices disclosed
obtained
to the customer has been
sources
believed to
be
re¬
action could be effected at the dis¬
closed
fected
any
with
price
at
a
other
the
could not be ef¬
better price; and (3)
or
fact,
inconsistent
of this rule,
not
purposes
Non-Member
Commissions
(Sec. 2(a))
and
Clearance Commissions
•
(Sec. 2(b))
on
Stocks:
clearance commission rates would
not
be
obtained.
be changed, and they would
applied uniformly, irrespective
the
Securities
amended,
as
further
such
to
as
that
the
se¬
Act
and .pro¬
dealer in
trading.
Floor Brokerage on Stocks
(Sec. 2(c))
"The present commission rates
for 100-share-unit stocks to mem¬
bers, when
a
would
be
rates
not
principal is given
up,
changed, and such
applicable to round-lot and
odd-lot business would be
charged
uniformly, irrespective of the size
trading.
Thus, the
present give-up commissions for
of the unit of
connection with such transaction,
10-share-unit
gives to the customer the
changed to accord with the pres¬
tus
2.
a
prospec¬
securities exchange;
Any transaction which is
of
secondary
a
and
4.
Any
guaranteed
in
as
to
an
or.
or
instrumentality
any
or
any
of
a
political subdivision
municipal corpo¬
any
rate
instrumentality ' of
more
States shall be exempt from
the
one
or
provisions of this rule unless
such
transaction
of
occurs
in
than 100 shares.
a
of
a
*
Clearing Charges (Sec. 4)
the
"The
present
stocks
on
clearing
•;
would not
be
charges
changed,;
and
they would be applied unW
formly, irrespective of the size of
the
unit of
trading.
In addition,
minor changes would be made in
the text of Section 4 to harmonize'
it with recent rulings made by the
Exchange.
"The
submitted
program
flexible.
is.
The Board would be em-,
powered to lower
of the unit of
termine if
in
public offering of such .in
market
security by the issuer thereof.
course
.
definition
ex¬
principal
litical subdivision thereof
thereof
-
transaction, for the purpose of
national securities computing commissions, would be
which is effected extended uniformly to units of less
interest by a State or any po¬
State
rates.
Transaction
2(d))
present
be
distribution
transaction
or
a
(Sec.
security, provided, /how¬
ever, that no transactiorl in
an
exempted security which is a di¬
rect obligation of or an obliga¬
agency
would
100-share-unit
"The
a
empted
tion
stocks
Definition of
on
national
exchange
or
lower
ent
required by,that Act;
Any transaction effected
3.
Paragraph A
notice
lowing changes:
dis¬
as
hereof
on
"The present non-member and
preventing any during the course of such distri¬
stating in the written bution; and
understood
from
1933,
main
Constitutional
proposed
Specified
effect
approved by a
Nothing in this rule shall
that sold to
in
under
vided
part
Notice
is
curity
unable to ascertain a current
both, as the case may be.
"The
of the size of the unit of
ment
the
the
D—Exemptions. This rule shall
in point of time to the proposed
not apply to the following:
sale to or purchase from the cus¬
1. Any transaction in a security
tomer, but which is not more re¬
during the 30-day period follow¬
mote than 60 days prior to such
ing the date on: which the secur¬
proposed sale or purchase, pro¬
ity is first publicly offered, pro¬
vided, however, that if the dealer
vided
that a
registration state¬
has had no such transaction he
shall make the disclosure
with
amendment provides for the fol¬
so
(4) the date and time
such information
closest
a
lots smaller tlun the unit of trad¬
asked
were
current,
(3)
of the information
sources
on
unit basis
100-share-unit stocks
as
a
disclosed,
in that bona
security
quire the
fide
exercise of rea¬
diligence,
record
-
and above.
the exercise of which the dealer may wish to
disclose.
reasonable diligence; or,
C—Records to be kept. Every
(1-B) The best independent bid
dealer who makes a disclosure
or asked price at such time, if the
dealer, after the exercise of rea¬ pursuant to Paragraph 1 - A of this
price; or
'
(1-C) If neither such a bid nor
such an asked price can be:ob*
share
exception that the differentials
upon
shall
would
them
ing would be 25c a share when the
selling price is under $75, and 50c
a share on stocks selling at $75
Independent Bid And Asked Prices
rule
-
serviced
now
who
service
100
-
the
at
to specialists
over
dealers
to
than
-
basis
All of these stocks
posts.
generally
diligence, is unable to as¬
re¬
generally high-,
priced stocks, are now traded in
less
ascertain
are
issues,
—(From a New York City Dealer)
SEC Rule Would Force Disclosure To Customer
Part of them
30, and the
traded at Post
now
undertake
Of Best
two
some
dozen stocks would be selected for
apprised of the serious aspects of this thing.
be
ample 10 shares, would materially
improve the market for such is¬
Every paper in town should editorialize against it. Every finan¬
cial writer such as Hendershot, Gould, Carlton, Shively, etc., should
liable, if such be the fact, but that
he is not able to state that a trans¬
Herbert D. Seibert &
He
it orally and therefore should not be
protest meeting against this ruling.
dealer from
a
quotation in writing.
a
would
and
unit,
existing obstacles to the adoption
by the Board of trading units of
ment
is adopted, the Board
of
workable rules are put into effect, instead of
Governors propose to proceed with
and the lack of conscience will largely dis¬
an
experiment to determine if>
appear within the entire industry.-—^From a New; York City Dealer)
dealing in selected stocks at the
DEALER No. 3
active posts in units of trading
smaller than 100 shares, for ex¬
All salesmen, investment dealers and brokers ought to meet on
be
of
trading
When practical and
B
have
"At present the Constitution al-,
lows for only two
absurd ones, dishonesty
Disclosure in
we
plains the objectives as follows:
than he should know the whole¬
dealer to put
It is unfair to compel a
independent bid
publishers
questing their vote on the subject
by Aug. 13, President Schram ex-;
diamonds, clothes or any other product.
gets it orally and has to give
held liable for it.
or
As
/
strictly retail market
a
sale price on
was
Addressing Service
for the Board, in
effectuate
to
units of trading
should be maintained which at the —a unit of 100 shares and a unit
Many firms, and especially mem¬ of 10 shares. The proposed amend-]
ber firms, give the customer a quote from the "sheets" which is sup¬ inent
would
establish
uniform]
posed to be a wholesale quotation. The investor should not have the minimum commission and clearing
privilege of buying and selling at wholesale prices plus commission rates irrespective of the size of the.
made,
injunction, if the Securities and
America,"
be called
can
discretion,
present time unfortunately is not.
by Paragraph 2 hereof; and sec¬
Do not
Exchange
Commission insists on putting it through, and go to the courts. They
will be fair. Morale in this business is low enough at the present time
and this would be the final act to completely extinguish it. Use all
Seek
if this
to be given the client before a transaction is
are
,
Wake
let this happen.
the Exchange except when
on
charges on stocks.
will, if adopted,
changes in the unit of trading. In'
a letter to members, July 31,
re-;■
retail market.
certain
Initial Dealer Reaction To SEG Bid & Asked Rule
can
its
always quoted re¬
are
amendment
make it possible
in the over-the-counter market
It is vastly different, however,
for there is both a wholesale and
sonable
tion then is how far is the ordinary broker to go
bonds
clearings
The
the Con¬
commissions
relating to
and
wholesaling.
v
.
the SEC
these inside bids and offerings.
stitution
seems
large block of stock is offered less a concession
comments and
of this issue.
a
On the Stock Exchange, stocks and
a
approved a
Sections
of quotations, both orally and in writing,
completing
cloth quotation before he sells you a suit of clothes.
a
Exchange, at a
July 30,
on
2 and 4 of Article XV of
to this writer to be
about as absurd as asking a jeweler to give you a quotation from the
wholesale diamond market before he sells you one, or for a tailor to
Chronicle" invites your
Editor's Note—The "Financial
meeting
Stock
proposed amendment to
before making or
give
of Governors of the,
Board
York
New
2
thinking that will tolerate anything, just so long as it is called reform.
adopt and enforce rule
X-15C1-10, then we will have passed one more milestone
that leads straight down the road to eventual, complete, gov¬
ernmental control over the lives of these 130,000,000 people.
If
No.
proposed rule of the Securities and Exchange Commis¬
new
sion compelling the giving
businesses and continue to conduct
fair
Trading Unit Change1
The
firm might be subject to reprisals.—Anonymous.
my
even
thousands of retail security
NYSE Govs. Favor f'
personally, hut because
this letter—not because of any danger to me
.
we
You
Typical of the situation in which we in the investment banking
business find ourselves today is the fact that I do not dare to sign
DEALER
time for the finan¬
to
no
this means your very existence.
as
have been tolerant; now show you can fight.
have been patient, you
(Continued from First Page)
cial
Thursday, August 6, 1942*
CHRONICLE
a
or
a
or
raise the size
trading and to de¬
stock should be traded
so-called
by the
use
specialist's
of cabinets,"-
Volume 156
Number 4096
THE COMMERCIAL
for
Business Conduct Committee of NASD Dist. 13
now
credit,
which
charity
as
subtracted
are
from the taxable
<
just
451
income, also
was
its recent meeting Frank L. Scheffey, Secretary of District endorsed by Senator Vandenberg
of Michigan.
No. 13 Committee of the National Association of Securities
Dealers, 1
Inc. presented to the committee the following
Advices to the New York "Jour¬
report on the action
taken in supervising and assisting the members of the Association in nal of Commerce" from its Wash¬
At
District in
.its
the
conduct
of
business.
"Recent
statements
>•
have
erable, importance
placed consid¬
i on what . are
been
satisfactory
very
members
say
regarding
spoon's suggestion:
and
the
termed the 'Police Powers' of the
National Association of Securities
forts
Witherspoon suggested that
taxpayers be permitted to deduct
Dealers.
While it is true that the
Association
including
certain
has
those of
powers,
disciplinary
a
nature, and at times finds it nec¬
to
essary
them, it has always
use
been the
policy in this District to
exercise
so-called
the
'Police
appear
this
direction.
teresting to note
the
member
distubred
It
when
a
in¬
certain
in his
called
his
to
attention,
that
function
do
or
staff of experts is
helpful advice
sympathetic consideration to
the problems of the members.
"The following brief review of
clinic, where
a
.available
give
to
and
indicate
will
activities
our
these ideas work
how
out in
practice:
"In'addition to the many form¬
"
al
rulings that have been issued
and "publicized covering delivery
dates,
dividends,
interest pay¬
ments, etc.," etc.,- the office staff
has handled hundreds of inquiries
by phone and correspondence, re¬
V
•:•
•
'
i*-;
' ■'
•
•
rU
V-*'
,•r
•
..
same
a
Long Distance telephone
call today, ask yourself these
questions i
manner
contributions
make
you
are
1. Is it necessary?
2. Will it interfere with
calls?
war
to char¬
its
station
charitable
pre¬
were
that immedate steps had been tak¬
en to correct the condition.
r,
j
service
\
A
far as possible avoid
disciplinary action.
District No.
13, has organized its ..office to
a
insurance
deficien¬
capital structure
lation, and
as
life
deductible at the present time. He
pointed out that under present
few, law, an individual is
permitted a
days later, however, his attorneys maximum deduction
of 15% of his
wrote thanking the Committee for
income for contributions
cies
Powers' primarily for traffic regu¬
as
of
miums in much the
somewhat
Before
percentage of their income for
payment
in which
one case
became
is
'V\:;
"Mr.
to have appreciated the Association's helpful efin
£01* the War
to
r
articles and others
news
Clear the Lines
ington bureau, had the following
Mr.
Wither¬
Copies of the report have
been sent to all members of District No. 13.
criticism,
proper
and
stating
ity, and suggested that a $300 to
$500 or a 'modest percentage' of
"The remaining 16 cases had to
with profit motive and other
aspects of the business which the
of
ance
the
head
of
the
companies
Depart¬
premiums,
continue
ever
the
sonally
This
concerning the validity of secur¬
ities,
transferability
and
other
points of similar nature which
/"Both
practice when¬
permit
70 firms
whose affairs will have to be per¬
that
surveyed
does
all
■
the
the
It
have
merely
vio¬
means
drop their in¬
have.
we now
Please give a clear track to the
England
and
income
an
Australia
tax
credit
war
effort
by confining
your
those that
Mr. Wither¬
said, and pointed out that
gread deal of the money re¬
really
are
spoon
a
ceived
at
from
insurance
Long Distance calls to
for
insurance payments,
staff.
mean
firms
lated the Rules.
that
by
necessarily
not
these
of the service
policyholders
many
*
still about
are
is
surance.
necessary.
"There
new
aren't available. We've got to make the most
unless
provision
would be forced to
reporting members on mat¬
importance to them, and
will
that
relief
the telephone lines is
war on
lines to carry it because sufficient materials
granted for payment of insurance
Survey, has al¬
of
ters
said
and
debt
some
ready held about 36 conferences
with
Witherspoon told the Com¬
mittee that he represented policy¬
holders
rather
than
insurance
Secretary, with the assist¬
ment of Audit and
heavier every day. We can't build the
"Mr.
Committee felt should be scrutin¬
ized.
"The
The weight of
income be deductive for payment
ol insurance premiums.
,
garding technical trade questions
necessary.
premiums
the
present time are invested
in Government bonds.
information
submitted
with and subsequent to the ques¬
tionnaire did not produce a suf¬
standing among the members. We
have had an average of about 2,"600 incoming and outgoing tele¬
000,000
ficiently clear picture and a per¬
sonal visit is required to obtain
ings
phone calls
formation which is being solicited
facilitate the business of and elim¬
inate
•
the
of
causes
per
"The office
misunder¬
month.
has supervised
the
.furnishing daily of quotations
on
550 different securities to the
over
national
service
news
^stocks for publication
the news
ticker; three : times ' daily. \ This
service, of course, ;s useful to the
on
"Last
v
year
tion to the problems of the mem¬
bers required that their affairs be
analysed.
The 14 Districts
•permitted, to. pursue their
methods
of
analysis and,
making 38 test surveys, the
sary.
were
own
after
13th
District found that the most prac¬
This
questionnaire.
a
"questionnaire produced gratifying
results.
has already
•been determined that out of 1,•008 reporting firms, 634 turned in
information which indicated that
were
in
38 who submitted to
excused
were
left
good order;
test surveys
from .filing.
members
325
whose
few
disclosed
of
the
conditions
which
This
replies
required explanation in some re¬
Letters were sent out to
members calling for addi¬
spect.
could
adjusted informally and it
was,; therefore,-necessary, to file
complaints against the reporting
firms.
There
were
could
where
not
be
and was obliged to
ciplinary powers."
the
helpful
its
use
dis¬
So far this year, such actions,
including not only the cases de¬
from
but all
the
questionnaire
others, have resulted in—
Expulsion
—6
Pines-_j.
Letters
•
The
compliance___
following
of
summary
Excused from
-
and
of
made
by
the
1,008
Audit
mation
-
to
order
7
:
Immediate
ditions
action
to
spection
for
634
result
as
disclosed
Referred
About 200
naires
otherwise
in
order,
by
field
for
of
personal
43
76
124
proposal
to
duals to deduct
insurance
old
debts
isuggestions for correction.
about
were
whose
There
additional
70
confirmations
were
firms
irreg-
iular, but since
personal surveys
by the staff will soon be made,
the
of
matter
confirmations
will
be taken up at that time.
"It
prompt
these,
had
capital
both
from
a
Of
legal
criti¬
and ad¬
indivi¬
a
buy
pay
as
"sensibly
the
Senate
Committee,
during the Committee's hearings
on
the pending tax
bill.
Senator
this observation after John
The
results
in
most
cases
have
enough to include
adopt
debt
a
would
tax deduction
of
debt
a
in
Jan.
relief
any
one
was
of Nashville, Tenn.,
testified
Underwriters,
that
credit
was
unless
some
allowed
it
persons
to
keep
pro¬
Taft
suggested
same
objective could
perhaps the
be
accomplished
relief
on
of
basing debt
percentage of gross in¬
a
rather than
the
a
on
indebtedness
vidual.
that he
for
Governor
percentage
of
the
.
had
such
would
their life
insurance policies in force.
Mr.
Witherspoon's
suggestion
indi¬
'Hobby replied
less interested in the
was
debt
.
that
by
relief
pressing need
at
the
present
.
'
SYSTEM
taxes for
residents
bona
of
number
believes
was
said
that
representatives
the
sion
of
the
the
two
and
President
President
such
lombia,
Finance
inclined
bill.
tax
bona
was
fide
residing abroad
paid taxes in foreign
tries where
they resided.
coun¬
The ob¬
ject of the House, Senator George
said, must have been to tax Amer¬
icans who
away
were
Lopez
of
Co¬
dispatch
from Washington on Aug. 1, to
the New
York
"Times," which
also gave the messages as follows:
a
special
"Dr. Lopez's telegram, sent from
Miami on July 28, was as follows:
"
'May
I
take
the
opportunity
sincere gratitude for the
friendly welcome and generous
my
hospitality extended to
as
family
my
and
me as
well
Corral
Soto
Doctors
Aravjo and Jaramillo
Sanchez by your government.
had
a
benefit
to
Colombia
but
it
will
only temporarily
from the United States."
help to bring our two coun¬
tries even closer together. It was
a great pleasure
indeed to meet
you again and to find you, Mr.
Secretary,
the
so keenly interested in
progressive development of
good-neighbor policy which
you
so
the
ably expounded in
Mon¬
tevideo.
"
'Please
"Mr.
T
of
opinion the happy relations
trust
Santos
outstanding
They
of
and cordiality between
countries, to which you
reflect
Colombia
also
have
made
contributions.
the
toward
leadership
closer
better inter-American
and
relations,
a
leadership which has been indis¬
in
pensable
of
reaching
inter-American
which
now
the degree
solidarity
characterizes the rela¬
tions between the American
coun¬
tries.'
"
'I
good
send
again
you
wishes
welfare
and
for
for
my
your
your
sincere
personal
success
the high office which
shortly reassume.'"
you
in
will
accept
my
very
warm
Hull's reply stated:
have
Expect High Coffee Crop
The Department
at
Washington
in
of
Commerce
an
announce¬
ment made available
Aug. 4 said:
"Prospects for the 1942-43 cof¬
fee crop in Guatemala continue
good in practically all districts. If
adequate
an
supply
available,
of
labor
a crop slightly
than normal is anticipated.
is
larger
"Exports of clean coffee during
amounted to 43,378 bags of
June
personal regards and best wishes.'
"
in my
very
also
Committee
to
Alfonso
said
We
happy sojourn in the
United States and I am glad to
think that it will not only be of
ver¬
"
'Your friendly references to
the foreign policy of the govern¬
ment of the United States reflect
our
at
were
House
and cordial association.
promoting closer inter-American
relations, it was revealed on Aug.
1, when the State Department
made public an exchange of tele¬
grams
between
Mr.
Hull
and
Del
"Chairman George said that the
not
in
of
com¬
exemption
revenue
leader¬
new
witnesses
under
Colombia's
abroad
living
disadvantage with foreign
if
that
ship has been "indispensable"
before leaving for Colombia to re¬
American companies would be
a
July 28. It also gave me
special pleasure to renew our old
fide Ameri¬
promised by Senator George after
a
gram of
Hull Praises Colombia
Secretary of State Cordell Hull
"Continued exemption from in¬
who
Life
year,
incurred prior
1, 1942.
tion
of
TELEPHONE
program
taxpayer
a
amounting to 5%
American citizens
tax
BELL
permit
President of the National Associa¬
many
point of view.
The
cooperated with these
adjusting their affairs.
to
which
George, said the Associated Press Senate
staff
in
sound and could
very
eliminated
Finance
become "virtually impossible" for
has
was
be made broad
sound"
on
Aug. 4 by Senator petitors
George of Georgia, Chairman of
ministrative
firms
relief
on
Government
indorsed
COME FIRST
George then stated
thought the idea of debt
American
premiums,
and
was
take Witherspoon
structures
which laid the firm open to
cism,
bonds
made
was
necessary
to
action in 43 cases.
27
their
permit
WAR CALLS
insurance payments.
can
fixed percentage
taxable income to meet
life
tention to
per¬
Govern¬
or
"Chairman
that he
come
For Ins, Premiums
of
confirmations
irregular.
Letters
calling at¬
the errors and offering
were
investments
bonds.
ment
time.
A
unless
were
in-
________________________
which
sent to each firm
other
or
come
con¬
questionnaire
additional information
submitted specimen
were
payments
similar deduction
mitted for payment on real estate
Propose Tax Deduction
firms whose question¬
were
insurance
formula than in the
and interviews wherever possible.
and
38
80
resign after replying-:.
Examined and accepted as being in
ties ironed out by correspondence
Ohio
point that it would be inequitable
graht an iric&me tai exemption
"Senator
file, because resignation was
to become effective________
1,008
solicited and difficul¬
was
of
to
for
to
r
avoid unnecessary
order to
Taft
'
Bailey of North Carolina made the
vided the debt
per¬
tional information.
"In
$1,000,000,000 in war savings
since January 1.
"Senators
>
a
out______
these
traveling and loss of time, infor¬
sold
bonds
of Texas had urged the Committee
the
Department_________
Survey
Permitted
Held
$2,500,-
"Earlier, ex-Gov. W, P. Hobby
•
filing, because of
surveys
about
additional
an
before Sept. 1, 1942, Mr.
Witherspoon testified. In addition,
he said, insurance companies have
6
statistical
a
results
questionnaires sent
Did not
by
3
;
is
the
questionnaire:
sonal
the
$7,000,-
18
of
Censures
Total
in
hold
now
000,000
few of these
a
however,
companies
States
in Government securities
and expect to increase their hold¬
some
instances,
veloped
"Insurance
United
questionnaires
not be
While the analytical work
is not yet complete, it
their affairs
••.;■>;
"A
•
tical method of procedure was to
institute
fully digested, additional per¬
inspections may be neces¬
■/
the Board > of Gov¬
decided that proper atten¬
ernors
is
supplementary in¬
sonal
Association
•entire financial community,
I
When the
one.
the
and
,
press.
In addition, Dow, Jones &
•Company receives quotations ■/on
Bank
and -Insurance > Company
|
percentage
could be deducted
donations
y: Deceives Secretary's Report On Activity
,
a
& FINANCIAL CHRONICLE
received
your
tele¬
60
kilograms,
a
considerable drop
from the previous month's
figure
of 144,631
bags, but an increase
over
1941."
COMMERCIAL & FINANCIAL CHRONICLE
THE
452
the
Farm
Storage Held
Best For Grain Grops
Storage
the
THE MOVIES
biographies make poor moving pictures.
Either the facts
don't lend themselves to dramatic high spots, the kind that keeps you
Most
the farm remains the
on
feasible
most
record
of
means
1942
small
grains and beans being produced
of the nation's war pro¬
in support
said
gram,
Department of
culture officials in
AgrL
a
summary on
dramatic interest has to be pumped in. If the former,
Tt usually turns out dull; if the latter, it seems phoney.
There have Aug. 2 of the critical grain storf
age
situation.
The Department
r, jaeen exceptions but in most cases it was Warner's which made the
said in part:
^v;''-XX&X
biographical pictures that not only stuck pretty close to the truth but
"The total supply of the nine
made good entertainment as well. Take for example Warner's latest,
.
in suspense, or
Pacific, it is imperative that
everything possible to
farmers do
provide storage for this essential
They are urged particularly
to hold enough storage space for
crop.
when
soybeans
housing
of
crops
Thursday, August 6, 1942
1942
their
considering
storage facilities. Earlier this
driven
forecast
loan
back, but it does
improvement or a
worsening by its action. Right
now; it seems to be saying that
the
an
from abroad will be
news
worse
beforts it's better.
the Department announced
year,
*
>:<
*
and
purchase program
Commodity Credit
Corporation will make loans on
a
be
whereby
When the German drive be¬
the
farm-stored soybeans or will pur¬
chase soybeans stored in approved
warehouses:.. In areas approved for
gan the Dow averages were
about 102. When it looked as
if
the
Russians
v
would
hold
.
^Yankee Doodle Dandy," which we just got around to seeing. It is a
story of an age in show business as seen through the eyes of America's
Number One song and dance man, George M. Cohan.
Covering a
period of more than 50 years it is full of little excitements, small
triumps and reaches a crescendo when the cocksure lad makes Broad¬
way sit up and take notice. The story of the five Cohans keeps your
-interest at high pitch until the last scene when Cohan makes his
*
patriotic plea. It is a good movie, well written, excellently acted and
capably directed. James Gagney, as George M. Cohan, is splendid.
His every gesture smacks of the Cohan we have seen so many times.
Walter Huston, as his father, is equally good. The same can be said
principal grains and beans which
right-bin storage for
the 1942-43 crop year is estimated
to be nearly 400,000,000 bushels
will require
1941-42
than for the
more
and
will
storage
with
ended
mercial
most
storage
cents
per
Very timely.
L
;•*
/
I
v.--."";■
'•'
:
■
','// fV:
•• V
f;•
,
.<I..-sX ; \
,
yellow
at
beans
$1.60
about double
rates
per
%;
It slowed down and declined
to about 105.'.;
another
effort,
the
1941
acres,
crop.
Factory
Employment Doubles
Employment in California fac¬
barley, rye, grain sorghums, flax¬
seed, soybeans, dry edible beans
tories is
last year according to information
a
number of programs aimed at
improving the wheat storage situ¬
The
..
than double that of
more
It is
r .*
i
L;
* •*.
$
\
.
"
'
:<s
of high
bushel.
California
The principal
are wheat, oats,
year.
affected
5
and rice.
vy; J
.
for
content
or
-
'
jAROUND-THE-TOWN
this
Purchase
rate.
"Production of peanuts,
will be needed to take care
crops
to
grade and oiL content,
general the rate supports
oil crop essential to the war
is expected to be 4,827,000
that, conserva¬
grains
of
at
by
in
oil
tively estimated, at least 400,000,000 bushels of additional storage
space
agree
farms
bushel above the basic
purchase
prices
com¬
though at times she seems a
fittle saccharine for our taste, Joan Leslie, as Mrs. George M. Cohan
and the subject of the song, "Mary," is perfect. Taken by and large,
"Yankee Doodle Dandy" is a fine movie with a patriotic motif that is
.of Irene Manning, who plays his mother,
who
their
on
them, it moved ahead to about
108.
In the last two weeks,
however, it has lost its tempo.
..
maximum
near
means
occupancy
of
types
beans
year
crop
to,. producers
but
available,
be
1941-42
the
that
able
store
vary
season.
The fact that relatively little ter¬
minal
farm storage, loans will be avail¬
_
■-
'.
',
•.
interesting to note that
the rails which
mestic
purely do¬
only kept
are
affairs not
all their
gains but added to
By doing this they
helped to confirm a theory
them.
that
the
?
basic
market has
trend
of
the
changed from the
bear to the bull side, Yet such
confirmations doesn't .elimin¬
ate sudden down moves. And
Madison Ave-,
"With a carryover on July 1, contained in the July 20 "Busi¬
ness Outlook" of the Wells Fargo
hue, has a new entertainer to interest the boys. She's Peggy Badey, a
it is these sudden reactions
1942, of more than 600,000,000
tall willowy blonde, baby stare 'n everything, who is rated as one of
The "Out¬ that
bushels
and
an
estimated
1942 Bank, San Francisco.
can
raise
havoc with
Conover's top models. Her voice, a small one, is suited for Armando's
look"1 says
California
factories
crop of about 904,000,000 bushels,
one's account.
'.little place. But if her voice wouldn't fill a Metropolitan it suits the
May employed approxi¬
wheat represents the most press¬ during
*
*
*
patrons here down to the ground. The boys in uniform who overrun ing
mately 572,000 wage earners, 3%
storage problem this year.
Armando's split their palms applauding. Of course, seeing a magazine
more than in the preceding month,
"The Department has sponsored
Theoretically
the
indus¬
cover come to life
and
Armando's, that homey little spot on East 55th, off
!
be the reason.
may
New
>
-
dishes.
restaurants specializing in different
will have to search far to get chicken cacciacatore as
has
York
But you
many
fine
beside
prepared at the Versailles. (E. 50th). Don't know what,
chicken, Nick and Arnold put irf, but whatever it is, it's tops.
it is
breath
drop in at the Belmont Plaza's Glass Hat (50th & Lexington) and see
Jack Marshall do things with his facial muscles. When; resting, his
to
mine (and is mine plain!), but once he shufflqs up
the mike and twists his chin around his nose to look like Popey£,
or
program,
lowance
as
plain
to
farmers
their farms.
encourage
are
as
7
time
the
at
taken
out, by
wheat
on
loans
who
farmers
up
rolls
than in May, 1941.
reports
that
weekly earnings ($43.95)
31% and total weekly pay¬
they
can
do almost anything.
He
uses some
props:
hats, glasses and false teeth, but his voice and his rubber face are
mainly responsible for the belly laughs.
they
state
mated
during
at
May
esti¬
was
16%
above the comparable 1941 figure.
their farms.
2,222,000
persons,
storage in bins located there.
"The Commodity Credit
Davis, whose
Louise Macy wedding at
orchestra played for the Harry Hopkinsthe White House last week, got the follow¬
ing advance requests: The groom asked for "Always In My Heart,"
"Begin the Beguine," "Buckle Down Winsocki," "Time On My
Hands," "I Married An Angel" and "A Pretty Girl Is Like A Melody."
bride requested, "It Had To Be You," "They Wouldn't Believe
The
Me," "My Romance," "Smoke Gets In Your Eyes," "Make Believe,"
"Night and Day," "Careless Rhapsody,' and "Tangerine."
hopefuls.
at the
is rapidly becoming
Club
Penthouse
Penthouse, is also
nights, 10 to 10:30,
the
red
Paul
.
.
.
The
the proving ground for radio
For example: Harold Willard, baritone, who sings nightly
writes her
own
has
also
on
songs
on
the "Good Ole Days" program Thursday
Caridad Garcia, who
the blue network (WJZ).
and accompanies herself on the guitar, is on
network;; (WEAF)
Tuesdays and Friday nights, 6:30-6:45.
her Wednesday
Taubman, pianist, is with Shirley Temple on
contralto.
Odette
Athos
"Three
(no relation to Athos of the
Musketeers"), who will shortly be on the air. If you've got anything
suggest
you
drop in at the Penthouse and ask for Peggy Stanion. Be¬
sides being the Penthouse drum
'vince about your
radio
thumper she's also the one to conAnd she's a lot easier to see than
histrionic ability.
moguls besides being very restful on the eyes.
Walter
100,000,000 bushels. Up to July
27, 16,580,390 bushels of this stor¬
age space has moved into wheat
These bins
Whyte
(Continued from page 445)
Adjoining The Plaza
Delaware
Seaboard Air
&
Line, and Delaware
Lackawanna & Western offer par¬
A
most
unique restaurant in
ticularly attractive possibilities at
the present
a
beautiful location, overlooking
Central Park to the north.
Aug.
tations
52
Serving
best
food,
skilfully
prepared.
Entertainment after IIP. M.
of
B.
Securities
W.
Broadway,
stocks
and
Pizzini
New
bonds.
Quotations,
&
York
cludes
and
both
in
mated
shels
buildings
urban
that
doned
It
thoroughly aware that
corporate profits take second
place to a nation fighting for
its very existence.
Still, no
matter what my personal feel¬
ings may be, my job is not
farms
on
areas.
I
esti¬
is
about
50,000,000 bu¬
be
stored
in, such
armories and aban¬
could
buildings
in¬
This
encouraged.
as
stores.
"As
in
committees
the
marketing
grain
1941,
have
been
set
up
in
rality.
terminal
cities to
of grain
storage and transportation prob¬
principal
blooded
facilitate the working out
in
lems
local
areas.
mittees include
These
am
national
what
com¬
representatives of
international
or
Quo¬
Co.,
City;
the
3.
discussing
mo¬
them
they will
on
rail
country,
issues
"To
able
*
further
make
for
the
of wheat
as
new
room
Of
head
crop,
livestock feed.
tick,
and
*
bought at 43 (now 47)
profits at 50 or bet¬
ter; stop 442/2^ Union Carbide
bought, at 59 (now 671/2)
take half
>
profits at 70
ter; stop 66.
far this year sold
bushels for feed.
about
vides
for
the
is
The Agricultural
Appropriations Act of
sale
of
1943
a
pro¬
of
corn
parity price..
42^>%
beans
crops
over
one
action
barometers,
itself
shoulders
and
is
still
above
lot
more
*
bet¬
or
*
the
time needs for oil and to replace
about 12 V2 and Pitts-
now
ton is about 21/4.
The former
should be
stopped at 11. The
latter has no stop but profits
should be taken between 2%
and
In
3.
but
much
points
in
that
isn't
percentage it's
More next
ime
views
do
not
coincide
nhronicle.
Thursday.
—Walter
-•/
Whyte.
expressed
in
necessarily at
with
Then
are
those
whole lot better than gaug¬
action
still
forecasts
it.
I
It doesn't say
in
or
STREET
NEW YORK CITY
.
SUGAR
the
Exports—Imports—Futures
so many
words that the Nazis will be
stopped,
LAMBORN & CO.
WALL
that the Japs will
any
of
those of the author only.]
99
this
presented
reliable than any
future events that will affect
1941.
of
a
its
Since soy¬
principal
needed to meet heavy war¬
are
best
ing market policies by which
way a windy Congress, anx¬
ious for re-election, is likely
to jump.
For the market by
125,000,000
bushels of wheat at 85%
is
[The
'
*
study of earnings,
40,000,000 past,
present and future. And
lost sources of vegetable oils in
had
profits at 35 or bet¬
Allis Chalmers
bought at 23 (now 24) take
half profits at 27 or
better;
stop 23. International Har-i
-
involved
so
from
s be
bought at 30 (now 33)
anything I know. It certainly
Com¬
modity Credit Corporation has
the
market
avail¬
W. Pizzini & Co. upon request,
may
ad¬
ter; Stop 31.
irticle
the De¬
partment has encouraged the use
of
throughout
my
take half
go up or go
down.
grain and milling trades, coun¬
"Production
of
soybeans
for
of the harvest is expected to be 14,241,these is¬ 000 acres this year, an increase
quo¬
hold,
follows: Air Re¬
It calls for u cold plenty.
analysis of markets,
makes
whether
Copies
and also giving detailed
tations
Telephone PLaza 3-6910
Railroad
duction
as
;
.
been
specialists in guaranteed railroad
sues,
4-
1
time, according to the
is
now
*
,
also
roads, farm organizations and the
Department of Agriculture.
Hudson,
vice
things. It is almost im¬
In my column of
July 23 I
"The use of buildings not before possible to evaluate their good
recommended two additional
or bad influences on
corporate
used for storage, but which can
stocks. Crane between 12 and
be put
into shape for holding profits.
#
*
#
wheat and other grains as well has
13, and Pittston at l3/4. Crane
The current situation in Southern
Railway,
Applying this J specifically
to the stocks
you
other,
.
30 CENTRAL PARK SOUTH
picture.
,
try and determine elevators, rail¬
The Penthouse Club
same
take half
Says
available to
are
•
are to remain a compo¬
part of this
producers.
the
Rails Attractive
nent
vester
and precut bins, the
capacity of which is to be
States.
<
Tomorrow's Markets
fabricated
total
'*
con¬
night programs. Now there's a newcomer to the Penthouse, a smokeyvoiced
pre¬
upon
request. *
Corpo¬
negotiated
tracts for the construction of pre?-
N' THAT
Meyer
i.
special circular
pared by them on this issue
shels of wheat into the Corn Belt
for
picture.
the
are
store
"Also, Commodity Credit Cor¬
ration
THIS
another
without
can
But the rails cannot
go down
more than a
point or two if
puts in some poration has moved steel bins for¬
Excellent Inflation Hedge
calls a Japa¬ merly used in the Corn Belt -to
Common Stock of the Chicago,
store corn into heavy wheat-pro¬
nese Jerk, you'll double up with laughter.
He does other caricatures
Wilmington & Franklin Coal Co.
just as well (just yell out and he'll do it). Marshall, well known on ducing States for storage of wheat. offers a double-barrelled
hedge
the Pacific Coast, but a newcomer to the East, takes his work seri¬ Bins with a capacity of 33,000,000
against
inflation,
according4 to
ously. Originally a miner in Bethlehem, Pa., where he was born, he bushels have thus far been moved.
Scherck, Richter Company, Landbecame a trombone player, playing in bands all over the country. Plans also are under way to move
reth Building, St. Louis, Mo., who
For the last 10 years he has done caricatures and has developed his from 40,000,000 to 50,000,000 bu¬
will send a
so
decline
points or so
changing the ' bull
four J,
registered a: gain* of
May a year ago. Total
non-agricultural employment in
over
his brows, juts out his lower lip to look like Mussolini,
false teeth, draws back his lips and looks like what he
facial muscles
trials
source
have
96%
advance storage al¬
cents per bushel is
an
of
available
drops his lip and raises his eyes to look like Disney's Dopey, lowers
face is
and
to provide storage on
more
same
average
In connection with the wheat loan
want laughs that leave you weak and gasping for
If you
ation,
52%
DIgby 4-2727
•
theat
THE COMMERCIAL 8c FINANCIAL CHRONICLE
Number 4096
Volume 156
453
Official Results Of Vote 0u NASD Minimum
Oapital Amendment
Wallace H. Fulton executive director of the National Association
This advertisement is neither
has announced the official results of ihe
proposals to establish minimum capital re¬
of Securities Dealers, Inc.,
vote of the members on
quirements for membership in the Association and twenty-six other
amendments to the By-Laws and Rules of Fair Practice of the Asso¬
ciation, including one requiring strict supervision over salesmen
employed by members.
♦
t
The
amendment
establishing
minimum
capital requirements for
membership requires that (1) a
"clears"
who
member
his
Restricted By
transactions to have and maintain
his
in
business
minimum
a
who
ber
transactions
"clears"
through
another
maintain
in
have
to
business
his
and
mini¬
a
of $2,500 net capital.
mum
Votes
cast by
1,939 of the
Association's 2,600 members. 1,197
members voted in approval of the
amendment and' 738 against it,
with
the
balance- of
the
2,-300
members not voting.
were
Giirrie Elected To 3d.
t Aii a; meeting of the Board of
New York
the
Se¬
curity Dealers Association, James
Currie,
;
in
partner
a
Hoit,
Rose
& Troster, was
,
elected to
the
Board
fill
the
to
the War Production
restricted
Board
civilian
foreign silver and prohibited after
Oct.
1r its
use
in'
silverware,
3/1;%
jewelry and various other items
except to fill orders carrying high
priority ratings. The Associated
Press reporting this from Wash¬
"Until
Dated
1, manufacturers of
list, which
also includes slide fasters, badges,
musical
instruments,
pens •/ and
pencils, and picture frames are
vacancy
Empire Gas
tures
year.
Troster,
who
has reported
to Washington
on
duty with
theU. S.Army.
basis of
in
^-.
j
* '
110IX Of
Securitle!j
S0C13
T
Cnrri.JJr.
,.
Dealers, Incorporated. From 1925
to 1934 he was with Laird, Bissell
1934 he has
been a partner in Hoit, Rose &
Troster. He is a member of the
Meeds, and since
&
Bond Club of New Jersey.
James J.
Lynch Now gj
At Sears Generation
MASS.
BOSTON,
—
James
J.
Lynch is now with Sears Corpo¬
ration, 68 Devonshire Street.
Lynch has been on the Street
30
Mr.
for
and
years
| was formerly
| resident partjner of H. D.
| Knox & Co.
i For
the past
$
several
he
years
been
has
) with
f
R.
F.
Marshall & Co.
| which discontinued b u s i 1 iness July 31.
j Mr. Lynch is
| a former of¬
;1
of
ficer
Boston
rities
the
Secu¬
Traders
doubtful
uses
[•
Vice-
:
Mortbon Interesting
A brief summary
of the current
situation of the Mortbon Corpora¬
tion of New York, the successor
for the duration.
in
New York City, specialists
over
Copies
-
the
of
mary may
tol &
-
counter
securities.
interesting sum¬
be obtained from Bris¬
this
Willett
on
request.
to
par
share of Preferred Stock (with certain adjustments
Principal Amount of
Debentures
Cumulative ''
Cumulative
■
•'
\'
•
-
"
be Received
to
$176.66%
:~
167.08M
162.29M
6%
The
value of their
January 1, 1942. The
157.50
Cumulative
Exchange Offer is subject to the terms and conditions set forth in the
Prospectus, copies of which, together with accompanying documents; may
be obtained upon request
from the undersigned
or
from
any
authorized securities dealer licensed in this State,
.•
The First Boston
vV
Corporation
#
Merrill
Lynch, Pierce, Fenner & Beane
said, however, that
was working on some
August 6, 1942
possibilities.
The account went
on to say that they explained that
priorities prevent non-war users
from getting any more imported
silver, which costs 35 cents an letter to trade users of silver is¬
experts
the industry
ury
contrast
ounce
in
mined
silver which
is
American-
to
the
Treasury
required by law to buy at 71.11
cents
an
vices
we
ounce.
From
these
ad¬
also quote:
"The Treasury
has made it pos¬
sible for American miners to
sell
of this higher cost
silver to
through some technical
postponements in delivery dates
on
silver
already
sold
to
the
Treasury.
This will enable some
mines to sell to industry the sil¬
ver
that
they have technically
sold to the Treasury, and make
good
their contracts
with
the
Treasury out of future production.
"Treasury experts said, how¬
ever,
that many manufacturers
some
industry
could not
use
out raising
silverware
71-cent silver with¬
the prices of jewelry,
or
other
sued
items.
Pres¬
week-end
the
over
"Sun"
York
New
the
of
Aug.
3
stated that the firm described the
foreign
silver
that
declared
normal
the
for
restricted
and
of
use
"hopeless"
as
because
and
of scarcity
regulations
no
foreign silver will be available
for consumption and use for other
than
war
civilian
so-called
or
part added:
essential
The "Sun" in
purposes.
; ■
"The
supply of domestic silver,
the firm adds, will not be nearly
enough to meet all non-essential
demands and 'it is only a ques¬
tion of time before the growing
war
demands will encroach upon
and eventually
tic
absorb the domes¬
production as well as foreign
silver.'"
It says:
ent
price regulations prohibit this,
the industry is seeking per¬
mission to charge higher prices.
"If they fail to get higher prices
for their
finished products, the
and
"Therefore
after
no
more
do¬
mestic silver is available the only
most
important cost in making a
finished silver product.
"Another
Secretary
Morgenthau revealed, is that the
possibility,
this silver for pos¬
emergencies, however.
The
also owns billions of
ounces of other silver, which, un¬
sible
Treasury
der
the
Silver
Purchase
Act
of
1934, it believes cannot be sold."
Calling
attention
to
a
special
possible
way
obtained
United
to
Government
States
whatever
means
are
possible
by
to
accomplish this purpose."
Stewart Opens Office
(Special
to
The
Financial
Chronicle)
PEKIN, ILL.—Melville B. Stew¬
art is now conducting his own in¬
vestment business; at present his
address is Box 334, Pekin, 111. Mr.
Stewart was formerly with Ralph
Dempsey Company for a number
of years.
July War Bond Sales ; '
the
by
bullion firm of Handy & Harman,
outlook
wants to keep
way,
equal to the
thereon
of Prefened Stock
Treas¬
has been
prepared for distribution
by Bristol & Willett, 115 Broad¬
arrears
whether there would be
gage-Bond Company of New York,
reorganization to the old Mort¬
thereon, for 3>^% Sinking Fund Deben¬
amount
(ylA% Cumulative
the
Treasury owns 5,000,000 ounces
of unobligated silver which could
be sold to industry.
The Treasury
in
Preferred Stock
follows:
7%
are
Vi
5
unpaid
8%
any
more
silver; available for
jewelry, silverware or other nonwar
per
arrears
principal
_
1, 1939, and secondary metal pro¬
processor
as
that silver can be
keep
silversmiths,
Jarnes J. Lynch
jewelry manufacturers,
President
of experts said, a few of the manu¬ platers,
mirror manufacturers, photo en¬
the National Association. He will facturers might be able to use the
have the same Teletype, BS 555, 71-cent silver anyway and make gravers and other fabricators from
going out of business will be to
which he formerly had at R. F. up the
difference out of their
arrange for the release of silver
Marshall & Co.
Xt'"'-' profits, especially since the cost
from
stocks
now
held
by the
of the silver is not always the
Association
and
•
.
exchange
before July
duced since then and sold by
Fuee Company is offering to holders of its
aggregate
Series
included in the
classification of 'foreign silver.'
"The order does not
prohibit
Mr.
Currie
of domestic silver by
is
a
member purchase
of the Uniform private users."
Under a later date (July 30) the
Practice Com¬
Associated Press reported that the
mittee of Dis¬
Treasury Department uncovered
trict 13 of the
a
situation that day which, Sec¬
National A s retary Morgenthau said, made it
r-
Tamaa
Jam..
an
cash) is
-
:~
of
tary metal, is not affected except
metal produced
and
shares and accumulated
"Silver, WPB declared, has be¬
come an
essential war metal, re¬
placing both tin and copper for a
variety of purposes in solder, en¬
gine bearings, non-corrosive ma¬
chinery parts, and other items.
that
,
Due January 1,1962
shares, with all dividend
one-sixth of the weight
used during the first six months of
Oliver J.
the
offer
(other than Cities Service Company) the opportunity to exchange their
or
resignation of
Col.
nor an
Sinking Fund Debentures
January 1,1942
"Domestic silver, which is pur¬
chased by the Treasury as mone¬
caused by
of Empire Gas and
the restricted
weight of foreign silver used last
this
any
Cumulative Frefened Stock,
Oct.
on
year,
or
:
ington July 29, said:
items
solicitation of offers to buy
Empire Gas and Fuel Company
of
uses
nor a
||S®|||:||21,534,800
WPS
limited either to one-twelfth of the
Of N. V. Dealers Ass'n
Governors of
On July 29
of
$5,000 net capital, and; (2) a mem¬
offer to sell
of such 3)4% Sinking Fund Debentures in exchange for the Cumulative Frefened
Stock. The Exchange Offer is made only by means of the Prospectus,
_
Civilian Silver Use
own
an
..Fuel Company 3)4% Sinking Fund Debentures
Secretary
nounced
war
on
Morgenthau
an¬
savings bonds in July reached
on
was
month for
ary,
variations
monthly
quotas
in
income
be
will not
uniform.
"July
figures
released
by
the
Treasury do not include sales of
War
Stamps."
Aug. 3 added the follow¬
Great Britain Pays
ing regarding the sales:
"It
the
Aug. 2 that sales of
$900,900,000, the second highest
monthly sales on record. Associ¬
ated Press advice from Washing¬
ton
seasonal
of
the
second
War Bonds.
RFC
highest
In Janu¬
immediately following Pearl
Harbor and the declaration of war
against the Axis, sales soared to
Jesse
H.
Jones,
*
Secretary
of
Commerce, announced on Aug. 4
that the United Kingdom had paid
the Reconstruction Finance Corp¬
oration $38,928,797 on its loan of
$1,060,546,000. The Treasury said
$425,000,000.
The
New
York
was 'highly gratified' with the
"Herald Tribune" in a dispatch
July
campaign.
During
last
from Washington on Aug. 4 re¬
month,
Secretary
Morgenthau
ported the payment as follows:
said, about $200,000,000 was de¬
ducted from salaries and wages
"The payments comprised $37,for War
Bond purchases.
- The
515,383 in interest, dividends and
Treasury
added
that
2,000,000 other income, while $1,413,414
more workers participated in pay
represents the proceeds of the sale
roll savings plans in July than in
by Britain of a small amount of
June,
when
total
bond
sales the collateral.
:
amounted to $634,000,000.
"The loan was
authorized in
"A
Treasury ' announcement
July, 1941, and $390,000,000 has al¬
placed
'particular emphasis' on
the increase in "the sale of Series ready been disbursed by the RFC
to date. The security for the loan
E, or smaller denomination bonds.
consists of listed and unlisted se¬
Sales of Series E bonds amounted
curities of American corporations,
to $508,000,000 in July^ 'This was
the capital stock of 41 Britishin a great measure due to the 10%
owned
United States insurance
pay roll
savings plan campaign
which is just now getting into full companies and assignments of the
earnings of United States
swing,' the Treasury said.
branches of 41 British insurance
"More than 8,000,000 bonds of
the $25 denomination were sold in companies.
"Under
the
collateral
loan
July, an increase of 1,000,000 over
June.
The Treasury estimated agreement, payments are applied
that more than 20,000,000 Ameri¬ first to current interest and the
cans
now
are
holders
of
war
balance to reducing the principal
bonds.
of the loan.
The proceeds of the
"Secretary Morgenthau set the loan were used by Britain to pay
August quota at $815,000,000. For for war supplies in this country
the fiscal year starting July 1 the contracted for prior to enactment
it
goal is $12,000,000,000, but because
of the Lend-Lease Act."
THE COMMERCIAL & FINANCIAL CHRONICLE
454
Thursday, August 6, 1942
Calendar of New Security Flotations:
share
ments
were
effective
a
the
issue
Central
Offering—The
the
Scudder,
filed
Stevens
Clark
&
Gamewell
INC.
the
company
Inc.,
of
Fund
registration statement with the SEC
a
and
separate
of
Address—10
Post
Office Square,
Boston,
■
i
tion
has
issue
firm
been
date
of
1942.
issued
asset
1%.
then
the
to
commitment
public offering is Aug. 1,
at
net
Gamewell
Shares are
from
The quoted price as at July 10, 1942,
in the price make-up sheet
per
share
which
price
was
the
for
Registration Statement No. 2-5027. Form
Vr.
has
tion
Mutual,
with
statement
shares
of
value,
Inc.,
respect
special
of
the
SEC
for
Building,
to
Minne¬
has
trust
.c
to
the
price
of
$325,000
Syndicate, 200
Roanoke Building, Minneapolis, Minn., is
underwriter of the securities registered
Offering—At market
1
it. *
of
NU-ENAMEL
CORPORATION
Nu-Enamel
tion
Corporation
statement
shares
of
with
stock,
common
$1
for
DATES
106,500
Address—8 South Michigan Ave.,
Chicago
We
Business—The company is engaged in the
and sale of
enamels, paints,
varnishes,
and
linoleum
finish,
kindred alines,
distributed
pany
The
&
mined
with
by the
Offering—The
Dec.
31,
share
1942,
all
or
of
Lloyd and all
from
or
is
California
purchase
the
of
of
any
said
principal underwriter has
finder's fee to American
cents
chased
by
the
principal
the
public will be
Proceeds—The
stock
shares
to
5
are
Electric
Contributory Pension
(W. R. Burrows, I. D. LeFevre, J. W.
R. C. Muir,
D. E. Peck, W. W.
Trench, trustees), has filed a registration
statement with SEC for $100,000 (estimated
from
the
trust
after
Jan.
1,
1936
participants
receiving in
ants
in
pension
Proceeds—All
invested
by
thereon
allowed
the
said
funds
trustees,
and
particibe
income
tration
statement
with
the
SEC
for
regis¬
3,250
—
Business
falls into two
of
erators
the
and
electric
conducted
by
the
classifications: the
motors
manufacture
and
of
gen¬
various
types of electric signal equipment.
Underwriting—E. H. Rollins
is
the
mon
principal
underwriter
&
for
shares
the
com¬
1956, inclusive
CORP.,
V.
exploration,
and
working
states
pany
that
in
$50,000
maximum
in
1944
and
$30,000 -is maximum
principal
amount which shall mature in any one of
the other years
yi'X. -'
'¥¥-\ ¥:¥'•¥''¥ C/;:
Address—135 Kent Ave., Brooklyn, N. Y
Business—'Wholesale dealer in groceries
allied
products,
including,
among
othet
related activities, warehousing and pack¬
aging
/, ;>.%
Underwriting—No underwriter named
Offering—The securities are being sold
by the Cooperative directly to its stock¬
amount
holders
and
cooperative
which
shall
mature
interested
friends
the
without
movement
Inter¬
salesman, at 100.
No commission will
paid to anyone in conjunction with
or
sale
■
certain
private loans and also to reduce certain
accounts payable now outstanding for cur¬
rent merchandise, the balance to be used
for working capital
^
:v
Registration Statement No. 2-5002. Form
Proceeds—Will
S-2.
(5-27-42)
;
Registration
EWT
on
July
be
used
to
repay
"V\
scheduled
for
Maine
POWER
Power
share
CO.
Co.
regis¬
a
general
mortgage
water
of
business,
entirely
within
the
Maine
sold
the
of
and
1942 as of 5:30 p.m. EWT
Drug
under
the
competitive
bidding
Names of
amounts and
under¬
offering price to
Offering—Public
offering
a
registration
statement
with the SEC for $350,000 6%
debentures, due June 30, 1957.
Address—120 Cherry Street, Buffalo, New
each
the
ment.
first
The
to
be
261,910 shares of
offered
the
to
common
holders
are
of
the
company's outstanding common stock and
6% preferred stock for subscription at $10
per
share in accordance with their pre¬
emptive
Co.
take
as
and
to
•
)
has
New
England
subscribed
for
Public
and
Ser¬
agreed
to
the
may
?
rights.
:
261,910 shares, less any shares
be subscribed for by stockholders,
pay
r
therefor
<
i
in
til
cash
i
I
•
at
$10
:. >r
per
)'
to
8%
of
—
cooperative
company,
selling to its
all of
whom are retail
members
is
Company
drug
only,
be
$250,000
presently
$120,000 of
this
a
the debentures
Approximately
of
issued.
amount
will
replace the outstanding 6%
which
is
being
will
be
issued
to
preferred stock
Approximately
eliminated.
$48,000 additional
issued
be
retire
to
buying privilege deposits with the company
balance, approximately $78,500 after
The
will
expenses,
become
additional
working
"
;
to
the
for
filed
members of the
stock
July 23, 1942 giving to
The SEC
approving
dollar basis and
or
exchange for
deposits made by non stockholder members.
800
FUEL CO.
Jan.
statement
3 ¥2%
sinking
Citv.
with SEC
for
a
the
New
Aug. 4, 1942 issued
the
proposed
should
shares of
which
of¬
due
Place,
Jersey
the
plan
plan
other
primarily
engaged
in
owns
securities
of
companies together
substantially
all
by
the
of
shares
by
trans¬
29,
not
May
preferred
stock
May
29,
1942,
June
before
sale,
30,
1942,
subject
company,
either
at
private
-V
.■
FINANCE
Finance
or
;¥yv''
CORP.
Corp.
for
39,912
A
$25
par;
and
25,232
stock, $1 par
La Salle St., Chicago, HI.
N.
Business—Primary
to loan money
capital
Justed
registra¬
a
SEC
common
Address—33
Is
y.V-
-
filed
the
stock,
class
shares
and/or
•
■
with
statement
shares
reserving
fail to
be
function
of
company
to enterprises whose debt
structures
being adreorganized by its wholly-owned
or
are
subsidiary, H. M. Preston & Co.
A second--
function is to loan money, with fund®
not used in its primary function, to pro¬
ary
"interim" or intermediate financing
enterprises until the financial positions
the borrower or a change in general
capital markets open avenues for longervide
to
registration
of
statement
5,000 shares of
common
with
stock,
the
no
SEC
value
par
Address—Chicago, 111.
for
term
■¥¥:¥y;,:;¥
Underwriting—No underwriter named
Offering—Issued prior to registration for
cash and property 2,007 shares at $100
per
share, and 2,993 shares are to be publicly
offered at $100 per share
Proceeds—For trucks, land,
ditions,
improvements and
ities
building ad¬
garaging facil¬
Amendment
effective
filed,
sold
in
units
$110 per
class
(6-27-42)
-
Amendment filed July'23, 1942,
to defer
-
there
each
will
be
to
bs
of
with
stock;
each
thereafter
the right to reduce the
shares to be included ir
common
unit
included
common
reserves
number of
is
4
shares, at a price of
With at least the first 900
shares of
company
stock
A
of
unit.
unit
4
July 30, 1942 to defer
date
units,
v
effective date
sources
M. Preston Sc Co., Chi¬
is the sole underwriter.
The
underwriting commission is $8 per unit
111.,
cago,
Offering—The
Registration Statement No. 2-5023. Form
S-2.
borrowing from customary
Underwriter—H.
Business—Short term financing etc.
class
A
stock
,
Proceeds will be used for
working capital
Registration Statement No. 2-4968. Form
■
florida
power
Florida
With
Power
SEC
a
&
light
Light
$45,000,000
¥
co.
Co.
bonds, due Oct. 1, 1971; $10,000,000 Sink¬
ing Fund Debentures, due Oct.
1, 1950.
140.000
3tock,
.ate
shares
$100
Cumulative
the
preferred stock, will
plied by amendment
Address—25
&
Ave.,
Is
System)
Miami
'
;.•••••
•'
subsidiary
Light
sup¬
(Electric
of
Lone
Star
&
8har»
no
par
amount
of
the
territory along tht
(with exception oi
the Jacksonville area), and other portion'
of Florida
'>•/
■■■
of
Florida
Underwriting ana onering—The securi¬
registered are to be sold by compan)
under the competitive bidding Rule U-5(
ties
jf
Public
SEC's
the
Utility Holding Com¬
pany
Act.
Names of underwriters am
price to public, will be supplied by posteffective amendment to registration state
ment
Proceeds
will
be
applied
as
follows
853,170,000 to redeem at 102 ¥4, the $62,000,000 of company's First Mortgage 5s 0)
1954; $15,693,370 to redeem at $110 pei
share,
the
142,667
shares of company'i
stock, no
be
supplied
preferred
$7
tails
to
Further de¬
post-effectiv*
par.
by
amendment
Registration Statement No. 2-4845.
date
effective
filed July
31, 1942,
^ \ ;y'
WATCH
Watch
Business
23
and
men
models
pocket
of
and
filed
manufactures and
high grade (17 to
watches foi
wrist
watches for
wrist
women
Offering—Company It
conditional offer to holders of Itx
a
32,054 shares of outstanding 6% preferred
stock of the privilege of exchanging such
stock for 33,054 of the 39,382 shares of
4¥2% preferred stock on basis of one share
of
4¥2%
preferred stock, plus $1.50 (equal
to
current
quarterly
dividend
payable
March 1, 1942, on one share outstanding
6%
preferred
stock), plus an
unstatec
amount
stock
(difference
price
of
between
one
the
public of¬
4 ¥2%
preferred
share
and
$105, the redemption price oi
preferred), for each share of out¬
standing 6%
preferred stock,
Exchange
offer expires Jan. 22, 1942.
Any shares of
4 ¥2%
preferred net issued under the ex¬
the
6%
offer,
to
plus
such
for
reserved
the
the 6,328 shares not
exchange offer, will be
at a price to be
public,
supplied by amendment.
&
Co.,
Inc.,
Harriman Ripley
Philadelphia,
Froceeds
March
1,
standing
will
tion
and
be
used
is named
at
$ld
July
20,
1942
stock
one
purchase
of
company,
for
issuance
upon exercise of the
warrants, and 50,000 shares will be offered
to
the public at
$10 per share
Proceeds will be used for
purposes
working capital
■
.
'
Registration Statement No. 2-4997. Form
">-8-42)
Registration
EWT
p.m.
LUKENS
-
on
Statement
June
STEEL
Lukens
5:30
CO.
Steel
statement
effective
17, 1942
Co.
with
filed
the
a
SEC
registration
for
$2,200,000
4%% sinking fund debentures due 1952
Address—Coatesvllle,
Business—Steel
Pa.
;yy'\-
manufacturer
Proceeds—Payment of
bank
loan
Registration Statement No. 2-5003, Form
(5-29-42)
In
amendment filed by the Lukens
covering the registration of $2,
4%% sinking fund debentures the
underwriters and the amounts to be
an
Steel
Co.
200,000
pur¬
chased
given
are
as
follows:
Name
E.
Amount
H. Rollins
Allen
&
&
Sons, Inc.—»
$874,000
Co
600,000
Wright & Co., Ltd.—
Stroud & Co., Inc—
Graham, Parsons & Co
186,000
Biddle, Whelen & Co.
100,000
Vallance
&
Boenning
Bond
150,000
100,000
100,000
& Co.__^
50,000
_____
&
Goodwin, Inc.________
40,000
Offering price to the public, will be 100
plus accrued Interest from June
Registration
Statement
EWT on July 28,
p.m.
EWT
MEAD
as
1942.
5:30
of 5:30 p.m.
July 12, 1942
THE
1.
effective
1942
Mead
statement
$5.50
CORPORATION
Corporation
with
the
cumulative
filed
8EC
a
registration'
8,000
preferred
shares
of
stock, Series B,
with warrants for the purchase of
common
stock (Series of 1937)
attached;
8,000
rants
for
the
purchase
of
common
war¬
stock
(Series of 1937)
$5.50
attached to certificates for
cumulative preferred
stock, Series B
97,200 shares
value
construc¬
equipment of plant additions
Amendment
principal
carry
to
Of the 75,000 share*
registered, 25,000 shares arW
stock
reserved
$500
will
holder
common
par
to defer effective date filed
common
stock,
without
Address—Chillicothe, Ohio
Business—Present
and
company
consists
of
its
the
business
subsidiaries
manufacture
in
which
are
and
the
engaged
sale
of
products
falling into three main groups,
namely, white papers, chestnut
corrugating
and other
extracts
(12-30-41)
S2
are
share.
per
common
the
and
to
with
of
each
debentures
will
redeem,
on
1942, at $105 per share, all out¬
preferred stock; balance for
connection
100;
at
the
entitling
prin¬
6%
in
the
underwriters
•
Pistell,
and
Underwriting
of
shares
.
Pa.
Company
various
jewel)
No
—
engaged
in
and steel
A-2.
registrator
statement with SEC for 39,382 shares 4¥»ft
cumulative preferred stock, $100 par
Address—Lancaster,
public
25
to defer
CO.
Co.
the
warrant
Form
My ;V
^'
is
iron
in registration statement
^
.> C
Offering—The debentures will be offered
(9-17-41)
Amendment
.
named
S-2
.r
'
' ■1
Texas
pig
Underwriting
serving
most
stock
of
to
warrents
stock; and 75,000 shares
common
common
registration
$500,000
5%
1,000
Business—Company
to
filed
for
1948:
Address—Dallas,
an
coast
CO.
Co.
SfiC
due
manufacture
operating public utility enjaged principally In generating, transmit¬
ting, distributing and selling electric ensrgy
(also manufacture and sale of gas)
;ast
July 13, 1942, to defer
Steel
with
debentures,
American
Bond
'
filed
STAR STEEL
LONE
statement
purchase
Second
'
Business—This
be
--v.-
E.
8.
Fla.
Power
Preferred
Interest rates on th<
Debentures, and the divldenc
(3-18-42)
Amendment
effective date
Par.
and
on
A-l.
reglateree
Mortgagt
First
Registration Statement No. 2-4926. Form
and
tion
order
an
Equipment Finance Corporation has filed
Jersey
Business—Company
five
expire
before
or
or
(3-30-42)
interim
EQUIPMENT FINANCE CORPORATION
a
and
INTERIM
publicly held preferred stock
been deposited under
'
'
•
,
expenditures
Exchange
subsidiary
s-2
not have
may
the plan
reg¬
$21,534,-
debentures,
fund
1, 1962
Address—One
be
cipal underwriter; other underwriters
be supplied by amendment.
Empire Gas & Fuel Co. has filed
istration
and
\
/;
to
be deemed appropriate with respect to
may
offered
&
O
are
Is offered
public sale, at not less than $10 per shard
Proceeds will be applied to reduction of
outstanding bank loans, aggregating $1,650,000
Registration Statement No. 2-4973. Form
fol¬
cumula¬
cumulative $162.29,
rendered
V!"
v
evidenced
the
on
on
fetained
Issue
each
be
which
of
to
sold
be
to
by
consummated, and in the event it becomes
operative upon less than 100% acceptances,
in respect of such further
proceedings as
change
GAS
stockholder
$176.66; 7%
'
company.
on
jurisdiction
company only the privilege
stock,
EMPIRE
6¥2%
received
Such
not
will
to
warrants
1942.
face
for
stock,
common
Registration Statement No. 2-5025. Form
A-2. (6-30-42)
,
¥
exchanging the 6% cumulative preferred
par $50, for the debentures on
a
of
be
to
preferred
the
Honolulu,
company's common stockholders of rec¬
April 30, 1942, for subscription at $10
per share, on the basis of three shares of
exchange to the preferred stock¬
of
of
Offering—The preferred stock
per
showing
.
fered
city
to
all
exchange
cumulative $157.50.
Proceeds—The debentures
fering
(7-7-42>
Amendment
of
stock,
6%
making
—
basis
cumulative
tive $167.08;
Honolulu, Ha¬
.■,
ord
ex¬
with
shares,
debentures
class
lows:
sells
■
Business
dollar for
of
price
of
Hamilton
filed
Co.
The
preferred
1942
Ellicott
A-2.
Commission.
the
to
(other than
opportunity
.
ELLICOTT DRUG CO.
will
filed
of
amount
p.m.,
druggists.
with SEC for $14,500,000
offering
stock
the
preferred
1942.-
Alspai St.,
by trolley coaches and gasoline buses'
ferable
l,
stock
r.,,
preferred
A2.
1
effective
Statement
Aug. 1,
18,
wholesale
.
service
to
company's, proposed
preferred
and
par,
conversion
on
Underwriting—None
Co.)
their
HAMILTON
1942, to defer
suspension,
the
in
York
July 2,
its
issuance
Business—Company Is a public utility
engaged in providing urban transportation
an
(exclusive of 1950). Com¬
Offering—The new debentures will be
priced at 100 and accrued interest
Registration Statement No. 2-5026. Form
vice
Sons, Inc.
change
Bonds
!
bonds and notes will be supplied by amend¬
Address—125 Amory St.,
Boston, Mass.
Business
MINING
public will be supplied by amendment
of 5%
cumulative preferred stock,
$100 per share, and 100,000 shares of
stock, par $5 per share
company
WHOLESALE,
COOPERATIVE
capital
writers
common
manufacture
on
of
Service
the preferred
-
par;
$10
stock, $10
stock,
common
for
Address—1140
waii
purpose of obtaining agreement
the
preferred
shares
reserved
dividend
arrears
thereon, for the 3 ¥2%
sinking fund debentures now registered of
1,
Oct.
(6-29-42)
principal
Underwriting—The bonds and the notes
shares
par
to
be
plant
filed
on
rule
a
per
before
or
Business—Company is an operating pub¬
utility and engages in the electric, gas
State
CO.
filed
$120
at
on
Eastern Cooperative Wholesale, Inc., filed
registration statement with the SEC fox
4%
registered debenture bond?
maturing July 1 of each year from 1944
development,
milling
will be
Co.
ESWT
p.m.
share
per
and
and
Registration Statement No. 2-5031. Form
A-l.
(8-1-42)
ELECTRIC
redeem
retire
Address—9 Green Street, Augusta. Maine
lic
retirement
Holtzer-Cabot Electric
1
bonds, Series
M, maturing July 1, 1972; $5,000,000 tenyear serial notes, maturing serially on July
1 from 1943 to 1952, and 261,910 shares of
common stock, par value $10
per share.
to
HOLTZER-CABOT
$1
Central
accumulate,
for
the
making pension payments there¬
participating employes upon their
to
to
position of any underwriter, dealer, broker
(6-15-42)
first
the
to
:v"
,
CENTRAL MAINE
purpose of
from
effective
tration statement
to
used
an
Proceeds
excess
are
additions
July 22 postponed to Aug. 10, 1942.
trust
of
for
V,v,.
Hearing
of $3,000 per year
Underwriting—No underwriters
Offering—Interests of employe
price
a
Francisco)
.
Amendment
the company on and
and
used
effective date
company.
Participation in
limited to salaried employes
entering the service of
at
Canadian
Mining
Corp., Ltd.
registration statement with the SEC
a
S-3.
the
the
is
:'
r
registered
Registration Statement No. 2-5013. Form
Y.
and
public
CANADIAN
equipment,
capital
of
from
the
be
Purpose—For
employee contributions prior to
1, 1943.)
Address—No. 1 River Road,
Schenectady,
received
"
stock
Offering—Offering price is 25 cents per
share, U. S. funds
Oct.
are
Wentworth
Address—Toronto, Ont.
Business—Mining and milling
Underwriting—Enyart Van Camp & Co.,
Chicago, underwriter
General
which
of
covering 500,000 shares of capital stock, par
Lewis,
trust
B.
Don
LTD.
Trust
of
forms
Camilla
filed
ELECTRIC CONTRIBUTORY
funds
underwriting
other
and
to
San
1942.
CAMILLA
PENSION TRUST
the
for
and
6,
value
Business—Investing
be
such
Registration Statement No. 2-5029. Form
(8-1-42) ,
•
N.
the
in
common
will
(4-30-42
June
A-2.
amount
SEC
a
share
per
Registration
from
offered
the
filed
underwriter
offered
$22
A-l
amendment
be
with
CO.
Co.
surplus
■*/:,.
Registration Statement No. 2-4992. Form
already issued and proceeds will go to the
individual sellers of the shares
GENERAL
INSURANCE
underwriter;
an
be
capital
Offering price to
supplied by
stock
share
unspecified number of shares of
1%
preferred stock of the company and
for
the
purchase
and
construction
of
facilities for the carrying out of the'com¬
pany's business.
Registration Statement No. 2-5024. Form
j
stock, $10 par value
Francisco, Calif.
automobile
Proceeds
pur¬
underwriter
selling stockholders.
the
of
to
of
capital stock of New England
nar
inc.
common
Offering—The
will
Industries
common
be
may
shares.
Detroit, Mich., in the amount
for each share of
Cities
and
Underwriting—Paul H. Watson is named
L.
agreed
fire,
principal
of
C.
no
EASTERN
deter¬
shall
the
holders
stock will be used
Inc., and 10 shares of common oi
otherwise
A-2.
insurance
per
shares
from
a
Corp.,
of
is
business
$1.50
72,500
company
Gladys Lloyd.
to
purchase
The
at
amendment.
from the sale of
by
common
&
1942,
filed
us.
Insurance
statement
Address—San
part of 34,000 shares
There is no firm com¬
mitment
pay
UNION
Union
registration
the
underwriter
of
to
supplied
the
will
Issues
been
not
unknown
are
CALIFORNIA
the company's
until close
any
have
Business—Engaged
part
any
stock
common
to
or
29,659 shares
principal
the option,
dates
which
of
a
exchange under
exchange offer
such redemp¬
in
$6,000 face amount of 5% debentures
1, 1936, due Aug. 1, 1956, of Nepsco
whose
com¬
principal underwriter.
granted
of
were
but
ago,
be utilized
a
formulae and specifications
Underwriting—Floyd D. Cerf Co.
list
a
more
75,000
tatter
group of security dealers
include the dealer managers,
manage
for
$150,000
by
Armstrong
Works, of Chicago, under
in accordance
or
"Nu-
name
sold
days
offering
principally
are
trade
products
Varnish
contract
the
polish
manufactured
are
Paint
which
under
Enamel."
stains,
below
present
twenty
shares.
the holders of such
for
be
acquire all of the 650 outstanding shares
or
OF OFFERING
whose registration statements
distribution
trust
bonds, the serial notes and common
UNDETERMINED
value
par
the proposed
to
Treating Co. $110,000.
Balance of net proceeds of the series M
(8-1-42)
registra¬
a
SEC
and
acquire 300 shares of the common stock
Pole
r
filed
the
prior
of
Registration Statement No. 2-5030. Form
S-2.
County
to
Proceeds—All the proceeds from sale will
be received by the Gamewell Company.
THURSDAY, AUG. 20
unspecifed num¬
an
Nepsco Appliance Finance Corp. $9,100 and
of
any
of
6%
of Aug.
of
distribution
of
and converted under the agreement
Services.
securities, company will file a posteffective amendment stating such terms
>"
V'"
made
pay
of Cumberland County at
110%, respectively, all of which
to be called for redemption by
are
will
and
distributing
subsequently should de¬
purchaser
to
to
such
.
Registration Statement No. 2-5028. Form
-v"
If
termine
convertible
Lynch,
Merrill
holders
Additional net proceeds
not
intention
to
which were incurred
and
construction
of
1942
serial notes and
for
and
in
amount to
tion
by purchaser that
stock
of
1966
into an obligation of the com¬
to deposit the redemption price there¬
in
of
The
share
preferred
bonds,
Cumberland
bank loans
mortgage
merger
re¬
investment
present
any
pre¬
for
on
stock
and
pany
by the
per
105 ¥a%
preferred stock and
unspecified number of shares of 5 ¥2%
merger
concur¬
such
account
own
with
Proceeds—For investment
''
the representation
purchasing
is
$100
or
first
due
shares
Cumberland
of
aggregate
an
1942,
announced of $9,275,-
be
purchase
fixed
130%
or
purchaser
for
1,
$2,650,000.
preferred
with
the
SEC
Pierce,
Fenner
&
Beane, as dealer managers who have aided
and are aiding in
preparing the exchange
offer and plan of
recapitalization to form
premium in the redemption on a date
shares
the preferred stock
purchaser
same
of
common
to
amount
$9,784,348 and
of
an
purchaser,
proposes
single
to, to sell all of
the
its
.
Underwriting—Investors
(7-27-42)
sale
proposed
Gamewell
Oct.
on
in
premium
the redemption at
series,
be
ber
an
$1,050,000
105%
at
1942
face
the
to
The
agreement
no
it
Business—Investment
of
date in
and
Gamewell
upon
apolis, Minn.
A-2
the
stock,
ferred
sale
Roanoke
latter
underwriter
1,500,000
stock, no par
offering price of
$13,243,362
Address—200
by
and
proceeds of the serial notes and the
common
stock
will be used to pay par
registrant company
that al¬
The
rently with the sale of the
capital
aggregate
an
registra¬
a
such
and
LTD.
CO.,
a
or
principal
pay
Net
share,
into
operating company
an
TRANSIT
Rapid Transit Co., Ltd., has
registration statement with the
for 75,000 shares of 6% - cumulative
filed
with The First Boston Corp.
agreement
RAPID
Honolulu
The
subscribed
to
facilities
under¬
entered
to
price
share.
to
ferred
filed
stock
advised
the
has
HONOLULU
gas
than
gas.
Jan.
for
purchase
the
.
County
single purchaser to sell
a
aggregate
per
been
though
INVESTORS MUTUAL, INC.
Investors
with
common
an
$10.50
'
SATURDAY, AUGUST 15
!
the
latter
by
■
natural
natural
Underwriting—Company has entered into
an
made by the company
per
stock.
common
advised
ac¬
recently
plan
Jhe commission .will be used as
redemption
3 ¥2%.
stock,
price of $9 per
a
been
the
agreement
all
Proceeds—For investment
(7-21-42)
that
writer
in estimating the proposed maximum
aggregate offering price
at
100,000 shares of
has
to
in
financing
merger
proceeds of the series M bonds will
used
000
by
owned
agreement
an
Gamewell
all
of
aggregate principal amount equal to the
par
value of their preferred shares and
accumulated
unpaid
arrears
thereon
to
a
Upon
$100
par
the
the
with
premium in
recapitaliza¬
common
have
will
$1,494,000 face amount of first mort¬
4% series, due 1960, of Cumberland
Power, $1,538,060; to pay principal and
the
The underwriter has
Company.
company
used
A-2.
stock,
share,
per
into
entered
plus
value,
preferred
value $5
par
proposed
$74.98
was
proposed
a
share, and 100,000 shares of
calculated
as
of
which
the
is not
company
and
United States other
gage,
of
shares
plan the outstanding securities of the
cumulative
made
Offering—Approximate
8,250
the
Cumberland,
of
of
from
proceeds
with
the
company will consist of 3,250 shares of 5%
..
Business—Investment trust
Underwriting—No
of
Company outstanding on same date.
consummation
Mass.
the
consist
acquire,
merger,
petroleum
the
of
by
date
at
stock, par value $100 per share,
being all of the stock of the Holtzer-Cabot
shares of capital stock of a pro¬
maximum aggregate offering price
$2,999,200
take
prospectus
controlled
of
follows:
be
the
distribution
Offering—Company: is
Net
The securities of
Gamewell
properties
existence
cordance
filed
of
retail
ceased
common
for 40,000
posed
is
company
Company.
owned by
thereupon
agreement
an
effective, the business of the com¬
will include also the business,1 fran¬
pany
chises
Net
.
to
will
business and all the rights, powers, etc., of
Cumberland.
After
the
merger
has be¬
•
SUNDAY, AUGUST 9
Maine
Rursuant
dates, unless otherwise specified, are as of 4:30
P.M. Eastern Standard Time as per rule 930(b).
Offerings will rarely be made before the day followV :
'■
W ■!'
ing,
;
of
phases
businesses in
County Power & Light Co., a
utility
incorporated in Maine in
1909, will be merged into the company and
These
SCUDDER, STEVENS & CLARK FUND
be¬
merger
that prior to
the securities now registered,
says
public
days.
seven
proposed
Cumberland
on
come
become effective in
the
Proceeds—Statement
which the registra¬
tion statements will in normal course become effective, that
is twenty days after filing except in the case of the secur¬
ities of certain foreign public authorities which normally
grouped according to the dates
are
provided
comes
list of issues whose registration state¬
filed less than twenty days ago.
These issues
Following is
paperboards, and wood and bark
tanning
for
Proceeds —To
stock of
acquire
all
Esqanaba Paper Co.
outstanding
<
Volume 156
!
Number 4096
THE COMMERCIAL & FINANCIAL CHRONICLE
Names
Underwriting—This offering is not being
./•'>
underwritten
:
!
holders
:
preferred
j tive of series, and all holders of
common
stock of Escahaba Paper Co. one-half share
ican
of common
purchase
stock
share
[case
Escanaba
with
j thereon
all
\2
the
rately
ance
ifor
[
offered,
but
purchase
of
the
A-2.
(6-25-42)
16, 1942*
July
i;v..
>
Southwestern
.
registration
Public
k\
trust
bonds,
serial
-elusive;
tive
due
1,
and
1S43,
filed
Co.
the
SEC
e
preferred
stock.
$100
Address—Dallas,
Texas
Business—-Tnis
[sidiarles
of
sale
munities
in Texas,
serving
in
of
the
-
capitalization
Gulf
Co.;
ties
Co.
and
partial liquidation
of
Co.; purchase of PanLight Co., Cimarron Utili¬
funding
of
Guymon
the
entire
Gas
Co.;
of
the
company
tion
of
the
transactions
and
involved
commoi <
electric
Columbia
in
unit.
On
subscribe
may
Columbia
re¬
12,835,000
other
underwriters
amendment
Offering—The
bonds,
•/*.
serial
.
will
notes
of the new
sale
to
the
the
order
major
produc¬
typewriter
bonds held b>
companies, auu foi
Statement No. 2-4379. Forrr
filed
July 25,
1942, to
defer
Gold
CORPORATION
GAS
United
Gas
oonds
due
and
1958
York City
be
and Share Sys¬
'
Offering
institutional
be
will
Terms—Bonds
be
whose
Investors,
type¬
anc
securities
company's general
funds and will be applied to effectuate the
'
•
4
sold
to
will
names
amendment, at 99.34%
!
redeem $28,850,000 United
Service
6%
Debentures
due
supplied by
5%
of
New
South
Wales,
.
sufficient
of
$222,186.80.
made
at
and
par
to
Gas
Public
-
1953;
to
accrued
11
the
and to purchase from United Gas Pipe
Co.,
$6,000,000
bonds
due
of
1961.
its'
interest
at
the
bank,
Department of
Broad Street, New
Coll.
4%
will be used in
Balance
Signs War Agencies Bill
Announcement
July
27
that
made
was
President
on
ation
standing funded debt
.
><
• (
•:•
,• [ I
Registration Statement No. 2-4981. Form
VA-2. (3-31-42)
preferred stock --
transactions
tn
involved
simplification,
*
part
effective
filed
filed
Public Service Co,
amendment
an
to
its
A-2
on
1
July
registration
SEC
Gas
Feb.
on
been
$7
companys
'f'k:,'■*?£,
Corp.
filed
21,
1942,
to
.'A
amendment
further
unable
chase
on
Statement No. 2-4760, Form
'
';•■:•>•;-
(5-15-41)
United
to defer
1942,
date
Southwestern
21
July 17,
$9,502,490
Registration
>
Amendment
of
agreements
stating that
with
extend
with
it
had
the
pur¬
insurance
14
bill.
The
panies covering the proposed private sale
fixing the interest rate on the
to such Insurance companies of
$75,000,000
proposed issue of $18,500,000 first mort¬
of the company's first mortgage and col¬
gage and collateral trust bonds due 1972
at 3% &
Interest rates on serial notes' lateral trust 3x/4% bonds, due 1959.
This
amendment states: "These purchase agree¬
will b® supplied by amendment
ments expired on Feb, 16, 1942J; The cor¬
funds for 19
war
bureaus, includ¬
ing
$1,100,000,000 for the War
Shipping
Administration
and
$120,000,000
for
the
Office
of
Price
ment
Administration.
Disagree¬
the OPA fund had long
over
delayed the
measure
final approval was
in Congress;
noted in these
STANDARD, AIRCRAFT PRODUCTS,
INC.
X Standard Aircraft Products, Inc., filed
.registration
with
statement
the
SEC
to
a
cov¬
ering $300,000 5 Vi % convertible serial and
•sinking-fund debentures, due 1943-1947
r
manufactures
Business—Company
aircraft
develops
products,
Offering—The
i
will
be
cents
cumulative
for par
ing
;
the
public at
will
33,586
for
($48,105)
100. The
maturity
to
offered
offered
be
shares
and
\" C.''
etc.
1943
maturities
other
change
($7.50
preferred stock
in
ex¬
par)
a
on
40
debentures
1944, '$62,000;
$65,895
Underwriting-r-The
debentures
aggregat¬
ing $251,895 may be sold through under¬
writer
'has
R.
100.
at
N.
Webster,
President,
agreed to sell through underwriter the
debentures he has agreed to ex-
preferred
stock.
G. Brashears & Co. is named prin¬
cipal underwriter. R. N; Webster may be
change
for his
Proceeds of
be
.7-v.
:«■.
(1943 maturity) will
capital
Registration Statement No.' 2-4988. Form
used
A-l.
>
■Xik-
underwriter
an
shares of
25,405
for
(Filed
in
Francisco 4-20-42)
San
Aircraft
Standard
[filed
$48,105
working
Products,
amendment
an
its
to
statement
:
terms
■The
of
to
as
originally-filed.
maturity.
($48,105)
will
be
the public at 100.50.
The other
33,536 shares of $7.50 par 40 cents cumulative preferred
and
stock
for par basis,
a par
on
be resold through underwriters as
follows; 1944 maturity at 100; 1945 matur¬
ity
may
at
1946
99.50,
1947 maturity
Registration
31,
at
maturity
99.00
at 98.00
and
reeist.rntion
Co.
statement
shares
Address—315
filed
Missouri
of
•
West
the
with
common
stock,
ties
in
vOsage
stock, $1
common
Address—60
E.
42nd
Business—Company,
Dursuant
tain
of
Its
Corp.
and
cer¬
subsidiaries,
is solely a hold¬
ing
company
owning
the
securities ;;of
everal operating subsidiaries
engaged prin¬
cipally in the
production
of
raw
cane
and
sugar
the
in
Invert
and
Dominican
Underwriter?
blackstrap molasses
Republic
will
be
and
Cuba
named
by
ment
;
Ureadv
City
shares
outstanding.
to
City
the
the
former
remaining
aggregate
stock
of
17,000
of
of
the
will
be
A2
holder
of
snd
company,
price
a
re-p<ved
Statement
will
be
to
be
the
Co.
is
subsidiary
of. The
North
engaged primarily
St.
Louis,
Mo.,
and
Missouri counties
portion of 5
of ** conn
Missouri adjacent to the company's
hydroelectric plant
Underwriting—Dillon,
Read
&
Co.,
New
sponsor
forecasts the intermediate
trend of stock prices as follows:
vl "Last Thursday
wrote: "The
indicate that lower
prices will be
before any sustained upward
seen
movement
gets under way.'
2-4923
age
closed last Thursday (July 23)
The high hourly figure
at 106.65.
the
for
last
(12
Industrial
Thursday's
Average
close
105.24—down
was
1.41
Thursday's close, and
3167 points from the close
down
weeks
ago
The
action
(Thursday,
of
the
indicate
to
seen
The
service
banks
1942
in
the
receded
stead of
,
I
first
savings
six. months
of
by $135,146,970, in¬
as earlier re¬
$251,691,175
1
'■
•>;-
Line
bonds,
1964.
That
contains
out
customary
wonder
overdone.
if
beeft
the
a
discus¬
On
on
in
special
generally
floor
of
the
to be in a worse
right now than for some
appear
past."
After
enumerating most of the
current
headaches, the bulletin di¬
long-term
a
stock
prices. > The
spective this chart gives is
reassuring than the
and
then
lot
a
concen¬
in
order
to
get
view of the forest.
*
From
The
total
which
is
rently
on
Bill
30
$1.73
share
equivalent tc
#
»
American Business Shares, Inc.:
This Fund reports total assets of
per
will be progressive.
un¬
up
firms
many
mention
the
by
would
aside
put
burden
In
any¬
of
taxes
eloquent plea, for action
an
to avert future
termed
hardship which he
inevitable
the
under
bill,
he urged the Senate to revise the
to
measure
their
permit firms to meet
debts, and "let the
ment
take
the
of
rest
govern¬
our
earn¬
ings to finance the war."
Railroads and Bonds
A saving of $120,000,000 annual¬
ly in interest charges* was fore¬
for
the
railroads by R. V.
Vice-President of the
Fletcher,
Association
of
roads, if the
new
amended
chase
to
American
Rail¬
Revenue Bill is
permit them to
their
bonds
at
pur¬
discount
a
without paying taxes on the indi¬
cated increment.
He
calculated
could
buy
that
the
roads
$3,300,000,000
up
of
their
outstanding
obligations,
provided Congress amended the
classes
applying for
were
law
for
totaled
.170,538
against
104,557 at the year end. Net asset
values per share were equivalent,
of June
as
30, to $19.52
Bond
on
Fund "A" compared with $20.04 at
the year end; $14.64 on Bond Fund
"B" compared with
on
the
"C"
Fund
$4.69; to $10.86
fund
on
compared
$8.19
$14.72; to $4.94
with
pared
share
Stock
with
on
Fund,"
of
1941.
of
June
pared with $50
to $4.39
and
shares
as
a
Dividends
seven
From this
"B"
to
lack
the
30
on
into
the
last,
com¬
paid
on
all
to be issued.
A. .Viner
New
as
Judge
&
York
railroads
for
improve¬
earnings
Fletcher
was due
conviction
that
among
will
run
difficulty in the future and
in the post-war
per
share at Dec. 31,
were
"profound
investors
period."
Canadian Review
"Special
Co.,
Broadway, New York City,
of
reasons
sustained
expanded,
Dominion
Corpora¬
40
conditions,
Canadian
Securities
Markets, Canadian War Budget,
for
Canadian
149
mem¬
Curb
Securities
Exchange Place, New
York City, is distributing the cur¬
rent issue of their Quarterly Can¬
adian Review, containing a statis¬
tical summary, review of general
tion,
Outlook
bers
undertaking
;
about
of
or
com¬
$50
New Viner Partner
Edward
before
program.
ment in railroad bonds
have
need
certificate of in¬
a
Questioned
the
the
to
Fund
$5;
['
a
obviate
"pauper's oath"
a
preferred stock
$11.47; to
with
compared with $8.83;
Common
solvency,
such
to
as
expressed the view that it
Common Stock Fund "A"
on
so
taking
compared
Ex-r
Lord, AbbettY August issue of change, have admitted Amelia I.
Background
contains
about
the Viner to
partnership in the firm.
•
sent
as
$1,288,419 at
June
30,
1942
compared
with
$976,585 at the year end, On June
30,
outstanding
shares' of
all
assets
every
high level
cur¬
Revenue
imposed.
Union Trusteed Funds, Inc.:
November, 1941, the
the present
to
are
share on
1,496,834 shares outstanding on
June 30, 1942. This compares with
$2.44 per share on 1,541,059 shares
outstanding Dec. 31, 1941. During
th e J942. period dividends "of 8
cents a share were paid.
£:v
k*
Total
House,
cast
$3,361,262, and its net assets
equivalent to $2.24
War
plenty of food for
the form of remarks
measure
meeting
shows'
on
>
hearings
new
thing for post-war reserve, after
on
*
v
received
not
4,090,182 capital
shares
outstanding at June 30
1942. This compares with $2.04 pei
per
the
be unable to service their debts,
$17,504,915.
Aftei
$10,000,000 of deben¬
are
holding
the
der the
of
deducting
tures, net assets
was
on
One witness warned that
a
'
statement
offering
from witnesses called to testify on
the legislation.
Company
Reports
June
28,700
Stock
thought in
Investment
assets
of
Electric
The Senate Finance Committee
the
'
General
Facing Real Problem
:;s *
Affiliated Fund, Inc.:
of
shares made allotment necessary.
[
*
Jersey,
common
Exchange un¬
der its rules. In fact subscriptions
for
that
block
reaching 74,362
per¬
tration
of problems
which cur¬
rently confront us.
It's another
application of the principle that
we should step back from the trees
now
of
block
a
in
it is believed that the de¬
cline from
Tuesday
sold
more
New
shares
shares
of
Standard
the
of
estate.
last of the
increased
of
of California, both blocks
having been purchased from an
$
since
inventories,
stock
customary August vacation, MIT's
Brevits points out that "Things
time
spe¬
offerings, groups were able
dispose of 115,500 shares of
pany
In its sign-off issue before the
muddle
on
stock of the Standard Oil Com¬
tax
,
4
by the
on
fee
cial
.somewhat
have
in
selling
100,000
hasn't
in
quickly.
Meanwhile, spurred
and
one
Company
mature
to
issue, offered in the
so-called "twilight" market moved
figures
month
trend
due
Company
tories
the
Railroad
Oil
classes of Union securities, except
the "Special Fund," which was the
of
point
'
mutual
Coast
4]/£%
common
concluding that while total inven¬
sion
corrections:
;
lower
any sus¬
tained upward movement gets un¬
der way."
peak has been reached.
of,
July
market
that
before
ings Banks* has '"issued corrected
figures.
The following are the
Deposits
points
last
prices will be
Sav¬
106.79
was
Monday, July 27). The
low hourly figure was made at the
close tonight (Thursday, July 30).
16).
Steady In 1st 6 Mos,," the Na¬
since
noon,
21, 1942, to defer
date
The
Dow-Jones Industrial Stock Aver¬
from
tional Association of Mutual
we
action of the market continues to
continues
York,' is named the principal underwriter. ported.
ly Investment Timing service this
two
filed April
Research
Corp.:
selling
\
No.
&
.In the July 30 issue of its week¬
It
by
(12-29-41)
Amendment
effective
parent
registered
-
Registration
dis¬
shares:
registered
outstanding oom-
stockholders
Form
in
by
shares
the public,
at
by amendment
Proceeds
the
shares
the
to
supplied
York,
Is
the
of
Inc.,
436.691
New
company,
represents 47.7%
offered
York,
of
Securities
are
owned
are
v
■■
registered-
and
extent
Bank
The
mnn
>,
Company'of New
solution
National
of
amend¬
;v: •
-
Offering—The
National
par
New York City
organized
in
1932
of reorganization of
far less
a
Investment Company Briefs
regis¬
a
St.,
to the plan
Dominican Sugar
Cuban
filed
SEC for 453,691
Are
for
"
adjacent
CORP,
Corp.
par
in the
transmission, distribution and sale of elec¬
tric energy, which it generates and pur¬
chases
from
its subsidiaries,
serving the
of
Sugar
Louis,
SEC
no
N. Twelfth Blvd., St.
Business—This
citv
SUGAR
Indies
shares of
favorable experience.
columns July 30, page 367, under
the
heading, "Savings Deposits
Mo.
/
^
tration .statement with the
in
addition
a
banking
brought out and quickly
disposed of $844,000 of Atlantic
net
♦
(Continued from page 447)
the vast majority of such cases
the results will show
'
INDIES
WEST
And
to
"scare"
stocks
common
brought to market.
group
a $50,000 net income
exemptions could still get a
yield of as high as 4.7% after
The
j
helped considerably to fill
before
taxes.
idle,
a
of secondary oper¬
run
investor with
of
issue
new
completely
investment-type
were
An
;
1942, to defer
July 17,
With respect to the item in these
a
i Investment Trusts
afore¬
Correct Savings Figures
Electric
American
the
either
July
withdrawn
Statement
UNION ELECTRIC CO. OF MISSOURI
2,695,000
of
be
corporate
in the gap. Some 245,000 shares of
from the individual series
4,003,172 shares at the
end of
1941.
During the 1942
period dividends of 8 cents a share
were paid.
v
July 22, page 279.
negotiations
shall
•
1942
Union
bonds
renewal
filed
the
has
the
modifies
statement
the
1943
offered
which
-
Inc.,
registration
offering
'
its
by
effective date
$190,537
.
privately,
Amendment
par
maturing
1946
1947,
that
continue
agreements or otherwise, or offered
the public as circumstances shall dictate
order to obtain the pest
possible price."
in
basis as follows: debentures matur¬
1945, $62,000; debentures maturing
$62,000;
and
debentures maturing
;
sold
end
to
columns of
said
to
Ohio
Address—Dayton,
the
intends
income of
an
of Keystone Custodian Funds.
share
•
,
to 7.6%
carries
measure
com¬
-statement
poration
The table shows
investor with
an
ations
had
to reimburse. treasury for capital ex¬
penditures and possibly to pay accumulated
financial
plan of integration and
real
a
$10,000 before exemptions can get
net yields ranging from 3.2%
up
Roosevelt
dividends
.the
,
that
anyway."
chart
York.
Line
&
1st
with
rects one's attention to
exceeding
the
was
substantial
taxes
to the vague objection that
not
Trust
the [
to pay 6% demand note of $25,925,Electric Bond and Share; to repay
Custo¬
"I'm going to leave my money in
signed the $1,858,000,000 war
agencies supplemental appropri¬
'various
presentation
a
Purchases will
prices
Corporate
exhaust
-and the refinancing of the company's out¬
>
various series of Keystone
dian Funds AFTER income
payment
Sinking Fund
Bonds, due Feb. 1, 1957, of
State
sum
Business—Production and sale of natural
part of Electric Bond
of the
standard
by them to custom¬
30-Year
bonds
■'
Rector Street, New
Address—2
of
and
Australia, that it will purchase on
Aug. 10, 1942, an amount of these
registered $75,000,000
collateral trust 3V«%
Corp.
mortgage
1
last. year.
the
UNITED
number
ternal
effective date
first
July
City of New York, successor fiscal
agent, is notifying holders of ex¬
-1
While
showing investors what the
yield will be to them from the
net
,
Secondary Market Active
*
table
The Chase Nations Bank, of the
(3-30-40)
Amendment
between
is limited to 12x/4%
Proceeds—To
„
_
today's
Buying New South Wales 5s
$2,000,000 open account debt to E. B. & S.;
.
added
type¬
July 31.
of the institutions.
market
make
am ;
ment
be
portable
helf
Is
*
taxes
H
(Continued from First Page)
reserve position
ket to bolster the
to prove."
Aug. 4, which also
of
writers billed
ers-
Corp.
current' dent
000
Proceeds from
from
snart
preferred stock, will be sold to the
public, at prices to be supplied by amend¬
will
advice
shut off
was
by
total
'
mortgage
costs
Registration
•
6%
*
be
to
faitn
the bank because anything I make
on it will
go to the Government in
on
"Production
Oct. 31
Underwriters—None
the
of
names
supplied by
Press
•.
companies
share;
Electric
associated
construction
A-2.
new
$100,016 per
repay
first
parent and
parent
Underwriting—Dillon, Read & Co., ol
York, is tne principal underwriter;
New
the
on
and
takes
'■■
Washington
writers
siocK
tem
-be
Associated
an
"Under
basis,
5
to
at
&
Gas
Proceeds—To
gas;
no
Board
manufacture
small number
a
Electri'
all outstanding stock
Substantially
by
fore¬
'have
the
vision
The Keystone Corporation's July
24 issue of Keynotes publishes a
It's
tion
share
a
each share held
(or
going, it is expected that the company will
■„
Production
ordered
takes
create—it
*
answer
■
utility
&
Gas
"It
to
courage
of typewriters stopped on Oct.
31,
v.
—
,War
4
said:
:..■■■
nolders
outstanding funded
itself.
Upon comple¬
•debt
■
re¬
and
Power &
Operating
—
»
each
.'or
Public Service
•handle
The
■
produced for the government, said
r*
Offering—Stockholders will receive ofto subscribe to 25/94ths of one
com
non share in
units of 5/94ths or a snar»
(or each 5/94ths of a share held at $5.3:
thf
Merger of Community Power &
Light Co..and General Public Utilities, Inc.
;(the two present parent companies of the
^company)
into
the company; liquidation
Utilities
Co.
statement,
except for
COM
;er
Company
Mexico
25,000
Underwriter
actions:
Texas-New
Heat -and Power
shares $100 par
Typewriter Production
Aug.
,
com¬
Act simul-!
taneously
consummation of tht
present proposed financing, the company
'proposes to effectuate the following trans¬
of
•
...,
Business
New Mexico, Oklahoma
Holding
with the
page
!.'yf-AkAk,"kkjA-kk;^
•-ompany
and
certain
Louisiana, -Arkansas and Arlzona.-v Undei;
a
plan of integration and simplification'proposed to be consummated under section
,11
1942,
1942, to defer
,•[■ v.-,..
;v
,'
Address—4th & Maid St.," Cincinnati'
Jhio
s
t
^
sub
distribution
transmission,
electricity,
its
and
principally
engaged
are
.generation,
26,
Ban
>tock
.
company
Feb.
July, 24,
a Gamble in Steel is
Help^
ing Win the War" and employs for
its keynote the Owen D. Young
age
listed
were
Report
"How
and
aver¬
deposits. The change had been
previously given as 2.05 to 2.04%.
Our Reporter's
layman that we've had the
privilege to read.
It is entitled
courage
stocK
common
story of the steel industry
language understandable
in
^
'
*
of
filed
Corp.
value
par
publicly offer the
common
stock,
such
told
455
to the
1.89 to 1.88% on the basis of
regis¬
par)
of
"Chronicle"
pstered
l
for
to Nov. 1,
1953, inshares of 6% cumula¬
85,000
its
underwrit¬
agreed to purchase
PANY
Feb. 1, 1972; $5,500,000
in equal annual amounts
due
notes,
Nov.
(no
to
the
naming
shares
of
each
Union- Light,
,
CO
de¬
accounts
finest
the change in the rate of interestdividends paid to savers in mutual
institutions was fractional, from
Feb
on
owned
are
affective date
>$18,500,000 of first mortgage and collateral
"from
Missouri,
p.m
SERVICE
with
Form
ONION LIGHT, HEAT AND POWER
Service
statement
shares
Amendment
if[V-
■
PUBLIC
pro¬
such
amendment
an
which
the
in
*1
.
.
SOUTHWESTERN
entire
public of
of
64,076, in place of 231,326,
previously indicated.
846
Registration Statement effective 5;30
on
of
141 in all, who will
which
Registration Statement No. 2-5019. Form
'-EWT
Co.
statement,
number
issu¬
stock
common
the
the
number
creased
by its parent com¬
pany, The North American Co.
The names
of
the
underwriters,
and
the
maximum
solely in satisfaction of the warrants
the
to
The
V
••••;•:/u>;;
filed
2,695,000
all of
sepa¬
for
reserved
receive
sale
Electric
1942
ers,
payable
the offer.
shares of
24,000
are
v
Assets declined by $116,555,017,
instead of $260,529,599.
The latest release indicates that
tration
in each
[common stock registered will not be
will
the
(2-2-42)
),
or
of
period
that
notes
paid
•
who
from
Union
for each
stock,
common
dividends
during
Statement
;
without par value,
stock,
of
be
will
Registration Statement No. 2-4940.
1937)
attached,, and iVi shares of the
company's
common
stock,
without
par
value, for each share of Escanaba preferred
[stock, and l/10th share of the company's
-common
underwriters
shares
of
(Series
Co.,
ceeds
|of the company's $5.50 cumulative pre¬
ferred stock, Series B, with warrants for
.the
other
amendment" • ' '■'•'«■*
;•1
Offering—The 2,695,000 shares of com¬
pany's common stock are outstanding and
are owned by its parent, The North Amer¬
offers
to
all
stock, irrespeci
company :
first
of
the
supplied by
:•'
Offering—The
of
profits, and other
| articles.
may
be
very
corporate
interesting
Copies of the Review
had
upon
request
from
Dominion Securities Corporation.
THE COMMERCIAL & FINANCIAL
456
WISH
= WE
BUY =
TO
Thursday, August 6, 1942
CHRONICLE
Urges Dealers Unite
South American
Ft. Pitt Bridge.Works
Following letter is self-explana¬
tory:;''
and
::
Editor
European Dollar Bonds
A
•;
'My:,
'//-V"
•;
Chronicle"
6% 1950
Mexican External
& Financial
"The Commercial
(Listed & Unlisted)
Common &
A
'
and Internal Loans
25
All Sterling
Firm
Bids
1920
.
business
000,000 new certificates of indebtedness and their response to this
third offering of short-term taxable Government obligations may be
taken for granted as "sufficient to excellent." .
.
.
Secretary Mor¬
-•
HA 2-2772
genthau is selling $350,000,000 of discount bills per week.
TELETYPE NY 1-423
BELL
The low level of the securities
.
.
.
.
.
selfishness
in
short, reaches its peak this week—and within a few days,
Appointed To Board
of the
Curb
at
New
York
Exchange,
a
special meeting on July 29, ap¬
pointed one class A and two class
B Governors to fill the unexpired
of three members who re¬
terms
their posts and entered
government service.
John S. McDermott, class A, re¬
signed
Sykes.
The
two class B Governors, H. Wallace
Cohu and John Whitney, replaced
Howard
placed
W.
Palmer
serve
C.
The
James
and
Dixon
Tremaine.
appointees
G.
will
until the annual elections in
February, 1943,
Class A Gover¬
nors are regular members of the
exchange; the B Governors are
associate members or non-member
of regular
partners
firms
member
the public.
;
associate
or
success.
' r.
.
.
.
.
.
.
be the
lie
are
as
The details
.
district.
the New York
approximately 0.297%.
Low
99.905,
equivalent rate
approximately 0.376%.
..
v
Average price—99.906, equiva¬
lent rate approximately 0.372%.
Fifty-seven
per
cent
of the
amount bid for at the low price
—
was
scriptions
ilar
issue
of
the amount of
on
the efforts of the local committees).
market all around.
.
.
Investment
Asso¬
in
book
form
the
pro¬
.
.
.
financing,
.
the
borrowing program is not yet on a
war
.
.
day" deals are growing too unwieldy, it
A larger financing, scheduled for a quarterly date
is felt.
...
be
months
also to the
generally.
And there is a real fear that as the
go by, the demand for less activity and more results per
valuable not only to the Treasury but
more
.
.
.
deal will reach a high
11
issue, page 1433.
point.
.
.
.
ing about the "tap" 2V2S, it seems sensible to proceed to a discussion
one outstanding market issue in which the majority of investors
in America are interested.
.
THE
I
MEDIUM-TERM 2s
generally conceded by traders and professionals in the finan¬
district that the various issues of 2s in the 1951/49 maturity range
It's
cial
cheap.
are
.
Cheap in comparison with the
.
.
equally cheap in comparison with the short-term
The Treasury has put out three series of these in recent
And
call date.
.
Maine, 1st pfd.
.
.
.
That's
a
Exchange
71 Broadwar, N. Y. BOwling Green 9-7030
Bell
Teletype
$2,097,000,000 taxable 2s
1951/49 and selling at 100.3 to yield 1.98% to call date
lot of bonds, and a lot of nine-year bonds for any mar¬
NY 1-61
Tobey &
Co.,
&
as
Co., New
of Aug. 1.
New York City,
on Aug. 5.
E. Bernheimer, member
Exchange, died on July 30.
Edwin
of the
W. Harry Glenny,
ner
special part¬
Doolittle, Roth & Schoell-
in
kopf of Buffalo, died on July 26.
Earle Dudley Butler, partner
&
Putnam
died
on
Co.,
Hartford,
of
Conn.,
;r'^
July 22.
- -
position if the market holds this level and they'll be
better-than-average place if the market declines. ...
a
The 2s are now the keynote of the market. ... They are
close to par. . . . Are out in great quantity. .... . Probably
most widely held issue on the list at this time. ... It is
selling
the
are
probable, therefore, that every effort will be made by the Treasury
and Federal Reserve to hold the 2s at or above par.
So. ., The
2s have a certain advantage of "risklessness," for they're at their
bottom level now and that bottom is important enough to mean
...
And
possible
courses
CAN
WHAT
.
.
.
that we've considered the
now
of action.
.
probabilities, let's get
on
to
.
.
BE DONE
If you own
the 2s—and chances
are
you
do—you
may
continue
holding them on this basis: they're a comparatively safe bond pricewise, they have a chance of rising eventually and they're in the right
maturity range for banks and most other institutions.
You might
figure you'll be able to get 100 for them nine years from now and
chalk up 2% annual interest on your books without any loss in
capital.
;
:
If you own the 2s and want to increase your income by switch¬
ing, you might consider this course (recommended by some dealers
.
.
in
.
.
.
York now).
New
.
...
Sell the 2s at their
slight premium above
par.
,.
.
%s, due October 15 and the Treasury 2s, due
September 15, with the cash obtained.
Buy the RFC
...
Reason would be the logical expectation for a fairly favorable
refunding of these into Treasury bonds which should bring in 8/32
or so on re-sale later in the year.
So you would have a chance
...
ket to absorb.
...
'A
.-...V'
.
at
bit of profit to your books
original position in the 2s. >
:
Therein, of course, lies the reason for the comparative cheap¬
ness of the 2s....
They simply are not as well distributed or
adding
Now if you own
in¬
stitutions own these—it takes a lot of buyers to allow sale of
$4,400,000,000 bonds—it is of pertinent interest to consider the
probabilities for these securities. . . . And here are a few:
.
.
But since tens of thousands of
.
position tax-wise,
than
logical that the Treasury chief of that time will take on more
he must.
So.
Consider the 2s as issues due in 1951 and
.
.
.
.
.
.
are taxable, and you're in
might consider this course.
tight
a
Sell the 2s at their slight premium above par and freeze
a
taxable bond.
•
...
a
.
3^s of 1952/49 at 110.15 to yield 1.60%
Buy the Treasury
to call date.
...
You're into
a tax-exempt bond which almost certainly will be
1949, for the coupon on these is high and the tax-exempt
undoubtedly irks the Treasury.
So it's a 1949 maturity
called in
feature
...
yielding 1.60%,
loan.
.
.
.
On
a
tax basis, it's more attractive than the 2%
...
Only reason for paying the high premium asked, though, would
desire to improve your tax position. . . . All indications are
for a better and better market in tax-exempts not only because of
the tax outlook as such but also because of the pressure of scarcity
.
(2) As far as the chances of the 2s getting in line go, there are
two possibilities.
One is the 2s will be absorbed within a few
months, permanent holders will obtain possession of the $4,000,000,000
and the three series will move up to meet the market. . , . The sec¬
ond is the market will move down to meet the 2s. . . . Whichever
way you
your
.
forget the 1949 date altogether.
.
before returning to
the 2s, which
you
profit while liquidating
.
could be sold to refund these when they mature. . . .
The debt schedule being worked out now for the early '50s shows
how tremendous a job will lie before the Treasury then and it doesn't
a
.
.
other loans.
as
.
HAY, FALES & CO.
Members New York Stock
in
.
And there's a third issue of
...
due Dec. 15,
seem
Boston &
Frank
City, dissolved
favorable
a
.
.
pfd.
Louisville, Ky.
A.
dissolved their firm
request.
of lesser coupon
United Piece Dye
Charles
"Over-the-Counter"
quota¬
tions on industrial, public utility
and real estate securities.
Copies
may be had from the firm upon
(1) Chances are the 2s will remain outstanding until the last
moment of the maturity range.
.
It is scarcely likely that any issue
COMMON
withdrew
Walton
of
.
R. Hoe & Co.
W.
partnership
Stringfellow, Rich¬
July 31.
*£:■%
partnership in J. J. B. Hil-
liard & Son,
ing
action if it's threatened.
the certificates to bother with
and the insurance companies need spend no time wonder¬
absorbed
Eagle Lock Co.
from
Wall
37
Company,
on
Harold
Association, have issued for
a
pamphlet contain¬
ers
since the banks have only
now
.
committees, group executive commitees, constitution and by-laws,
group constitution and member¬
ship roster.
A reference to the
Convention appeared in our Dec.
&
&
Scott
mond, Va.
Street, New York City, members
the New York Security Deal¬
.
These "every other
long-term market. . .
market. . .
months, has
In addition to the addresses and
given the range over-attention. . . . There's one issue of $1,014,000,reports of various committees, the 000 of taxable 2s due June 15, 1951/49 and selling at 100.8 to yield
1.95% to call date.
There's another issue of $1,292,000,000 tax¬
book contains a list of the 1940-41
officers and governors,
national able 2s due Sept. 15, 1951/49 and selling at 100.5 to yield 1.96% to
ceedings of its 30th annual con¬
vention which took place Nov. 30Dec. 5, 1941, at Hollywood, Fla.
in
of
(3)
top-efficiency basis.
may
Scott retired from
H.
with
Over-Counter Quotes
Greene
...
ciation of America recently made
available
attractive.
particular moment of hard work on the week's
stems from the belief that
.
Edward C. Anderson and James
H.
connected
now
firm's New York office.
Chronicle!
distribution
.
Bankers
a
over
this week
The
the second issue—
the flotations of the week and make every attempt to
show their value as distributors of securities, there is an unmistak¬
able undercurrent of dissatisfaction.
And the dissatisfaction
putting
is
Financial
WASH.—Paul
Inc., and prior thereto was pro¬
prietor of Paul H. Gordon & Co.
is, perhaps, unkind to consider the subject of war financing in a
broad sense.
But even while the investment bankers and com¬
mercial banks and bond dealers of the Nation bend all their efforts to
.
The
to
Harris,
Lamoreux
and
Norris,
Inc., 1411 Fourth Avenue.
Mr,
Gordon was formerly in the trad¬
ing department of Dagg & Co.,
.
it
.
(Special
Gordon
CALM APPRAISAL
At this
Harris, Lamoreux Go.
SEATTLE,
,
A
made
York
funds, report this feature is particularly
tees for trust
And
By IBA
as
withdrew from the firm
July / 31.
Mr. Connell
his
headquarters
in
the
cago,
...
Incidentally, the new privilege attached to
$150,400,000.
Is Issued
continue
will
effective
permitting optional redemption of the bonds at 100 and accrued in¬
terest upon the death of the owner for estate tax payment purposes—
is considered of real importance. ;
.
Large investors, such as trus¬
maturity of a sim¬
bills on Aug. 5 in
1941 Convention look
which
City,
are
Pael H. Gordon With
And
Morgenthau will have the money he needs.
The total amount
of "tap" 2Vfcs will be up to the $1,700,000,000 mark. ... A possi¬
bility is the issue will go over even better than generally antici¬
pated and the Treasury's goal of $1,000,000,000 will be achieved.
In that case, we may expect a more stable and cheerful
great extent
country
a
was
bership of Howard M. Ernst, part¬
ner
of Ernst & Co., New York
that the investing
.
.
to the $900,000,000 mark (a preliminary
necessity, be a guess for it depends to such
come
may
forecast that must, of
accepted.
There
following
Transfer of the Exchange mem¬
organization that will
public's
an
-
.
So if the New York insurance com¬
.
.
.
.
panies, savings banks and trust accounts, etc., increase their orders,
the record on this offering is likely to be even more favorable. . . .
The conclusion? Obviously, the issue will go over, and sub¬
follows:
applied for—$582,900,000.
Total accepted—$352,511,000.
Range of accepted bids:
High—99.925,
equivalent rate
but
the
announced
weekly firm changes:
good of the investing pub-'
.
.
of this issue
Total
The New York Stock Exchange
has
.
.
Secretary of the Treasury Henry
,
<
an
interests will best be served if the
...
Banks.
is
securities dealers and brokers
...
maturing Nov. 4, which were of¬
fered on July 31, were opened on
Aug. 3 at the Federal Reserve
need
we
realize
Tremendous publicity is being given to
.
.
Treasury
000,000, or thereabouts, of 91-day
Treasury bills dated Aug. 5 and
Exchange
the
member firm, to Fred R. Tuerk of
permitted to survive.
issue.
Insurance companies are buying heavily and on a larger
Chicago will be considered by the
Such proposals as the minimum
scale than in May.
The Metropolitan Life, for example, sub¬
Exchange on Aug. 13.
capital requirements, revealing of
scribed to $125,000,000 of the "taps" against $100,000,000 in May while
Thomas
C.
Davidson
retired
profits, etc., will do no one any
the Mutual Life ordered $70,000,000 compared with $60,000,000. . . .
from
partnership in Henderson,
good.
On the first day, the New York Reserve Bank announced $56,000,000
Harrison & Co., New York City,
Very truly yours,
non-insurance company subscriptions.
The "Big Five" insurance
on July 31,
\
B. S. LICHTENSTEIN
companies bought $460,000,000 of the first issue of "taps," should take
James R.
Connell, partner in
down a larger amount this time.
The entire subscription to the
Kebbon, McCormick & Co., Chi¬
first issue was $882,000,000, of which $587,000,000 was subscribed in
vidual investors.
,V:'/,
Morgenthau, Jr. announced
on
Aug. 3 that the tenders for $350,-
1-13(11
Weekly Firm Changes
organiza¬
tion whose primary objective will
committee
field call¬
non-banking institutions and indi¬
prospects among
HAnover 2-8780
Y.
N.
New York Stock
indus-,
securities
aims and inter-industry quarrels.
there seems no question concerning their
The Victory Fund Committees are working day and
.
the
Y. Security Dealers Ass'n
St., N.Y.
Teletype
try has been the victim of diverse
the "taps" go,
ing on 28,000
a
Result Of
united front
night in all parts of the country. .>. . The New York
alone, for instance, has a corps of 2,500 salesmen out in the
doing business for
.
the major
What
as
Members N.
25 Broad
place, there has been
no
leadership in the securities
business for years.
In the second
place, instead of presenting
a
v
As far
M.S.WIEN&CO.
coopera¬
unit.
.
month.
The Board of Governors
of
lack
and
In the first
The
Between the certificate
offering and the "taps," Morgenthau should be able to obtain all the
cash he needs outside of the war bond and discount bill sales for the
.
.
Bought—Sold—Quoted
in
morale,
the individual
tion of
.
August borrowing will be completed.
activity and
opinion, is largely due to the
my
American people are buying between $30,000,000 and $31,000,000 war
bonds (series E, F and G) per day. . .
The war financing program,
Three Curb Governors
Mexican Interest Arrears Cfs.
Dear Sir:
campaigns for the Treasury in recent years got off to a flying start.
This morning, the country's big bank investors get the $1,500,-
York Security Dealers Ass'n
Exchange PL, N.Y.
40
Monday, the Nation's major investors—outside of banks—
received the "tap" 2%s of 1967/62 and one of the broadest selling
BROS.
Established.
New
On
Request
on
KATZ
Members
Issues
Spruce St.
New York City
be your
.
look at this, the 2s seem to have the edge,
for they'll be in
value.
...
There
your own
V
U
*
|
1
*
I
,
f
,
you
are.
.
.
.
Three
choices.
.
.
.
Only
you,
who
tax and portfolio position, can judge which is best.
W
-
_
,
know
.
.
@FedFRASER