Full text of Commercial and Financial Chronicle : August 6, 1942, Vol. 156, No. 4096, Section 2

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Final Edition

THURSDAY

Three Sections—Section Two

Reg. U. S. Pat. Office!

Volume 156

Number 4096

New

York, N. Y., Thursday, August 6, 1942

Price 60 Cents

a

Copy

Price Regulation find Rising Cost^Reducew SI HGENERAL. CONTENTS $
Editor's

and

Profits, Conference Board Survey Shows
continued upward trend in costs,
cline in profit margins, according

York.

'

given rise to a fairly general de¬
to the Conference Board, New

says, are being currently^
in certain products, and stability

result in the" abandonment of

may

lines.

some

;The

'

;V

Board

observes,

however,

in

ported.

material

in costs is borne by the Treasury,
since profits after taxes are much
less adversely affected than total

taxable income in such

2%

instances.

The Board summarizes the

f

re¬

sults of its survey as follows:
%/
"The trend of production costs
has continued upward during the
two

months

Maximum

Price

business
this

the

General

Regulation

effective.

came

to

since

The

executives

majority of
contributing

observe

survey

that

order has had little effect

it

as

does

though in

not

be¬

control

the
costs

on

al¬
instances greater

some

wages,

reporting

note a decrease

increased

as

production.

;;

*7

Government

Fl-

Lamson

Machine

.

Co.)..; 458

Regular Features
Situation

457

Washington

Items

Ahead

of

Bond

Prices and

Common

About

the

'..

....

Moody's
Moody's

one-

Stock

Banks

457

Yields...

468

Yields

468

Trust Cos..

and

472

Trading On New York Exchanges... 470
NYSE Odd-Lot Trading..,
469

State
General

result of

of

Trade

Review

460

,..........

Commodity Prices—Domestic Index.
Carloadings
Weekly Engineering Construction..
Paperboard Industry Statistics
Weekly Lumber Movement.

For

,

,

.

<

.

...........

:

,

'■/ "Higher labor charges and
material

shortages are
frequently mentioned
increases.

the

Fertilizer

469
471

.

469

471
471

of

materials,
however, particularly farm prod¬
ucts

which

increased

not

are

in

(Continued

In

470

Y.

Metals

Reserve

/Index

470
467

468
468

Market

Bank

June

Business

468

v........i...............

adj-

467):

on page

467

4o9

N.

controlled,

price.

Index

Non-Ferrous

most

Some

have

Price

Weekly Coal and Coke Output
Weekly Steel Review
Moody's Daily Commodity Index...
Weekly Electric Power Output
Weekly Crude Oil Production

raw

causes

Miscellaneous

;

Price Ceilings, Higher Costs Reduce
Profit Margins ...,.. .v>.. /v.... , ." 457
U. S. to Ease Chilean Oil Shortage.. 458
Committee

FROM WASHINGTON

% tions
Seize

Bxj CARLISLE BARGERON

.V.*\V '• v,

r«..

A

rX

■

*'o

?.*»:.

-

j" V':

*

'

'

v

the time

we

.we

has apparently been moving Washington of
gather,, like the earthquake which shook Japan

poured out millions of dollars in aid to
that

matter

has

essary

"friends."

our

All
with

Washington today has to do
this question^
Among our

local editors and

supplanted
whether

the

we

columnists, it has
proposition
of

should open a Second

You must

Front.

appreciate that
of Washington is far
louder than any guns that are be¬
ing fired on our respective fronts,
and being the nosiest, therefore, is
the most "important."
the agitation

Since

we

have

made

the

com¬

parison of the Second Front, it is
interesting to report that the col¬
umnist emphasis, unquestionably
reflecting the military thought,
has recently been to the effect of
"Whoever suggested the possibil¬
ity of a Second Front in the first
place?"
We are being told by
these
ond

Leahy

columnists

now

that

Sec¬

a

of the

Front is out

question,
and
that
perhaps we; intend to
strike our most telling blows when
Japan attacks Russia and by Ja¬
pan's doing that, it will open up
Siberian landing fields to us from
which

we

shall

be

able

to

bomb

We don't attach too much

Tokio.

Resigns

writing

the

about

Second

Netherlands

Upholds

were

think is interesting

we

and

back

Steve

was

Following his return to
the

stories

have

been

our

would do

we

our

stuff.

looks the fact that

able

be

to

we

don't

Bill

which

But

frankly,

are

too involved and

we

Dangers

of

Rising

Return

of

Partial

Permits

on

page

467)

-•.

War Work

of

Government-

Below

461

of

Rising

....

obliged, owing to

space

limitations, to divert to Section 1.a

472

Show

Prices

the

value

of

a

thorough knowledge of

other legislative matters
the activities of
the many Government agencies whose functions are of in¬
creasing importance to the conduct of business in the present
emergency.
?••
1 .v .- Y/'*--*
"■ ■ / / v/'://^! '■
;; ■
the

manifold

changes in

tax

and

Washington,, together with

originating in

Propose Anti-Inflation Program
463
Shipbuilding Up 360%...,... 463
Federal Expenditures Cut by Con¬
462

gress

Finn

Consulates

June

Arms

Close./....,.... 462

to

Output

Shows

(Continued

Forty

vs.

In view of the wide
work among

/"''">j •••••.'

to

manufacturing

not

on

page

459)

Forty-Eight Hours
discrepancy in labor policy

production, and in order

as

on

to

which experience shows

tained maximum output,,
issued

on

hours of

establishments—both private and governmental—
war

on

observance

secure
are

best for

sus¬

the following statement of policy is

guide to government establishments, to field

a

rep¬

and to contractors workr

production.

war

While

S.-Russia

U. S.-Brazil

[

flation

widespread and increasing agreement

actual experience,

week

as

a

result of

both in this country and abroad, that for

production the eight-hour day and forty-eight-hour

Sees

Draft

.

462

efficiency in

agencies in

a

most

best working schedule for sustained
operations.—Eight Government

industrial

joint statement.

■

466

Deferments...

.

.

......

Violators

......

Subject

any

hours
466
466

V..

;

■

.:.

Bill.

466

near

v.' ,'
we

466

Plan New

as

,

But what

Payment On Danish Bonds

over-all figure must be named,

one

comes

to

being the work-week

we

suppose

48

conducive

most

maximum output as any.

to

to.

...........

'■

can

:■

not

■

'.'

///v Y'i

;

understand is why, if this is true, the

467

.

In

New

Tax

If

466

Post-War

Management
.......

Rule

462

Victory Against In¬

..................

On

approximate the

Commercial

Pact.............

Trade

Outline

Credit

forty-hour week is generally accepted in peacetime

a

a

462

U.

Pact /..............,...........

are

there is

wartime

Huge

Gains

Jersey Ship Canal........

To

Federal

Concentrate

dustries

Civilian

Goods

In¬

465

.......

Congressional
Bulkeley
WPB

Workers'

Studios

Award

to

—

Tire

Conservation

Clearly, if what the authorities here
week is true, the nation can at any time

almost sacrosanct.

say

about the 48-hour

adopt

a

40-hour week

only at the sacrifice of production which is the basis of the
abundant life.

•'

465

The

shorter

things of life.

hours

give

more

leisure but less of the good

Perhaps the leisure is

more to

deceive ourselves with the

Proposes Nation-wide Gas Rationing 465

we

should not

Eastern Gas Prices Cut to Old Level 465

not

paying for the leisure thus acquired.

Eastern Deliveries of Fuel Oil Halted

as

.

465

.

peacetime is regarded

465

Opnose Federal Taxation of Munici¬

pals

40-hour week in

more

Lieutenant

.




■v

enough of them left,
and not enough capacity to
produce them, to keep the en¬
larged manufacturing facilities going at full blast?
Quite
possibly this may be one of the difficulties.
Certainly the
enlargement of manufacturing plant devoted to war pro¬
duction has been
staggering; but it is likewise true that
capacity to produce a number of the materials now said to
be short supply has been
enormously enlarged. Waste of

Naval

465

all of the information essential to

'J'..

devoted

ing

Inflation

467

pledge to make every effort to increase
the "Chronicle" by reporting, without delay,

materials

resentatives of procurement agencies

Pay......

our

critical

463

12% of Arms Output for Allies..,;.

mindful of

V'1"'•/

'

plant with the result that there is

463

Increase

bringing this matter to the attention of our readers, we

of available

working

ditions, is usually contained in this section of the "Chronicle."
are

V' '

5 TV'V

Another Washington Mystery
Precisely what is the origin of our difficulties in this
matter?
That appears to be another in the
steadily grow¬
ing list of Washington mysteries.
Too large a proportion
\

of those standards

considerable amount of material which, under ordinary con¬

In

"

463

Food

Court Action

are

•'*" V y

V

472

463

..

Trend

Price

volume of current news

paramount importance to business and industry, we

v1", V

the

seems

472

Opposes Exclusion of Earned Income

the constantly expanding

badly.
strangest to the layman is that it was
apparently not until materials shortages actually began to
assume substantial
proportions that the authorities them¬
selves realized that anything was
awry.
It would be a
"ghastly jest" indeed if it presently proved that manufac¬
turing industry had succeeded in organizing itself to make
good the "fantastic" estimates of the President early this
year only to find that they were not able to proceed fully
with their plans because materials cannot be had in suf¬
ficient quantities — materials,
many of which normally
originate within our own borders.
^
.
What

WPB, Military Board In Closer Co¬
operation
463

Problems

to

needs has blundered

461

To Pay On Rio de Janeiro 6Vjs
Reviews Program of Treasury Agents

To

Due

manage¬

has wrought
implements of war

country

Excess

Bar NLRB From Plants With Secret

New Rules

Notice To Our Readers

the

in producing the
preparing to produce them on an even vastly en¬
larged scale—only to find that materials are unavailable,
or soon will be.
Evidently some one with authority to co¬
ordinate plant construction and conversion with materials
supply and to balance materials production with future

Federal

Corporations

Sale

Wheat

Henderson

(Continued

importance to the columnists. We

plant of

in

461

Extend

return to the

industrial

464

Parity...;..
Home Bldg. Costs Continue Higher.
Hearings
Before
Senate
Finance
Group On Pending Tax Bill
Emergency Ceiling On Lamb Prices.

astride

these matters

The

miraculously both

and

464

..

Owned

seem

to Siberia.

course

464

the fault will not lie with American

industry but with faulty over-all planning and
ment.

success¬

the arsenal

as

464

Profits Taxes to

get the Japs out of

Aleutians

464

Shortage..

Debt

over¬

air

the
our

to

Albany.. 468

Rumanian.

Meat

Discusses

Sales

Cites

after

This

clear that if the United States is not

now

only partially successful, in its role

or

S„ Canada Report Record Arms

Urges

is

all, a Second Front was not quite
the thing at this time, but if the
Japs attacked the Russians, then

of

Banks....

Output

Early.
shores,

that

It is

'

Illinois-Wis. District Lead War Bond
,}■

that the last "mission" which flew
over

Y.

Control

U.

military officials, or missions, or
Baptist preachers, do not open up
any fronts. J
'
;
"
!
What

Visits

Queen
N.

S.-Brazil Amity Forecast.. 464
Greater N. Y. Fund Contributions.. 464
Retailers
Rally Support for Price

ernment

Britain, or even a; Baptist
preacher, there would be a wave
of newspaper
stuff about their
trips being a prelude to the openr
ing of a Second Front. Of course,

Ambas¬

Closer U.

Front

to

469

French

Attachment
In

Wickard

were

reflecting what Gov¬
propagandists were tell¬
ing them.
It seemed that every
time a military official flew over
they

460

468

Funds

simply know that when they

WPB...

as

sador

❖

•

'

...........

.

MacKenzie Joins

been

man.

.........

Study Living Costs.................., 460
S.v Yugoslavia Lend-Lease Pact.
469

Brehon

or

470

...

U.

shaking us is the question of whether
Somervell, the latter a Lientenant-Generai
in the U. S. Army and the chief of the service of supply, is the bigger

Donald Nelson

.v;.....,

.

Treasury Offers New Tap Issue
460
Believes Compulsory Saving Unnec¬

Y- M.-if.''

'

*

ful,

J"*

458

Func-

Power Industry I. .; i.....
....459
Changes In Flow of 1941 Income.... 460

|

.

.

terrible-matter

late, something,
This

A

'

Completes

Marine

Japanese Interests
471
Bona
Bill
Would /Socialize

Says

•:

Mexico

..........................

Merchant

Iron, Steel Salvage.Goal';.'......... 471

;

■

On

Program
Transfer

AHEAD OF THE NEWS

;

THE FINANCIAL SITUATION

this

.

it is marked.

-

&

-News

39%,
the increase in costs is slight; for
36%, it is moderate and for 11%,

cost

by

From

compa¬

a

- ' - " y

in¬

issue,

on

of the "democracies"

experienced any im¬
portant change in costs during the
past two months,, and less thap

the

given

Editorials \,

:

Post-War

Financial

nies have not

of

t -

this

this

(Text of recent address
Ralph E. Flanders, President,

-Jones

'

In many industries, how¬

order went into effect. About

notice

reports

in

Page

-.

re¬

that for companies in the highest
tax brackets most of the increase

other

of

J

riancing
•

ever, raw materials already were
under control when the general

eighth

"

v

r

is

costs

the
- ••

'

War and

if the present system of control remains, the Board adds, in
giving
its findings in a survey of the effect of price control just
completed.
incurred

in

page. °

Further declines in profit margins are expected in the future

Losses,* it

in- Section

appear

explained

as

The General Maximum Price Regulation has, in conjunction with

j
a

Note——Various

items, pot covered

news

dex,:

465

Pay On Porto Alegre 7s...465

be desired, but

notion that

we

are

THE COMMERCIAL & FINANCIAL CHRONICLE

458

Editorial-

U. S; Agrees Tc Relieve
Chilean Oil Shortage Wai And Post-War Government
The

sums

Financing^

new

>the

ease

'

shipments of fuel to his country

;

| would

increased

be

remedy,

shortly

situation, that
cramping industrial activity.

;

*

a

less

to

said

officials,

that he

the

an

•

some

of control

measure

unemployment. -

over

business de¬

~

.

i

depression and the unemployment occurred
under political administrations . which were friendly; to
business and since business during the period was operat¬

Ambassador

foresaw

attain

Since the

"After His talks with the United
States

:

we

pression and

was

i

„

"

billions; from billions thejr
.

with cumulative, acceleration;
^-^ 1 '■
Early in the process, it began to be feared that we
were
running into a runaway inflation.
These - fears,
though strongly felt by many seven or eight years ago,
have not yet been realized in fact.
The avoidance of . in¬
flation has been in a large measure due to our not, having
fulfilled up until this time, one of the fundamental require¬
ments for such a disaster; namely, that our manpower
and/or our productive equipment should be fully occupied.
As long as there was unemployment, as long as there were
idle plants and factories, so long would it have been exf
tremely difficult to start an inflation based merely on fear
and a resulting flight from the dollar.
On the other hand,
with these conditions of full employment of manpower
arid/or productive resources: realized, it will take very
little to start an inflation which may'quickly become un¬
manageable.
It is that possibility which confronts
up at the mo¬
ment.; That possibility will become a certainty if the con¬
tip

,

ever-in-

.

,

ing under little governmental restraint, the responsibil¬
ity for disaster was popularly placed On business; and there
it has remained.
That we have to face as an unpalatable
tinued increase in dollar incomes is not met with a poning strategic materials to North fact, but still a fact.
;
"
* .
[ tinued increase in the productive capacity and production
America to the limit, and asserted
;
■
As a result of placing the sole; responsibility on busi¬ of the' things which the holders of those incomes desire to
that Chile also was coroperating
politically, in hemispheric solidar- ness, there has come a flood of; legislative and administra¬ purchase.
Since, with full production, there are not enough
the control : of- business^operations. of those desirable
ity.
His. government, he pointed tive measures for
purchasable things, the stage is now set,
out, had stated that Axis agents There may-be possible usefulness in a minority of thesfe as it has been in no time in the
past, for a rapid and disas¬
would not be permitted to use
new measures.'
The majority of them have caused great
trous rise in dollar, values.
Chile as a center of espionage
•harm to business activity, to private, employment, and to
and intrigue.'
Taxation and loaning to the Government are the obvi¬
the maintenance and expansion of the standard of, living ous
remedies.
Neither remedy is being applied in suffi-?
'Chile,' the Ambassador said,
% non-belligerent, but not neu- of the- common people of this country .under peace-time con¬
:ient force.f So .far as taxation
is concerned, the .addi¬
tral.' "
ditions.; In spite of that, the unfortunate changes were po¬ tional amount that can be taken from the
larger incomes is
The same advices stated that
litically inescapable. Under similar conditions in the fu¬ so small as to be ineffectual. There is necessary either a
Secretary Hull told
newspaper
ture, they will again be politically, inescapable.
This is | vigorous and successful campaign of voluntary purchase of
reporters that among the sub¬
condition we must learn to recognize and to .take intf
jects discussed with the Ambasgovernment bonds, or forced saving for government bor¬
*
' •'
sador, who returned on July 25 account.
j
rowing; or taxation which touches that great percentage of
from a trip to Chile, were phases
;
Among the measures of business control undertaken American income which is in the lower brackets.
These
of western hemispheric defense.
were tax laws of such nature as to, penalize venture capital
remedies are politically painful and difficult.
Yet one or
and make it unsafe to invest in anything except "sure
a 11 of them must be
applied if the value of the dollar is to
Final Account Filed By
things." Parallel with this was the control of the issuancH be kept in control and national credit maintained.
;
Committee On Mexico of new securities which was intended, to prevent the sale of
The future of government financing is full of uncer¬
The International Committee of stock in any enterprise which was not also a "sure thing.!'
tainty since it is a part of the larger problem of the rela¬
Bankers on Mexico filed its final The
consequence of these two measures and of other govern¬
tionship between government and business, the revival or
.

creasing
collaboration
between
I Chile, and the United States.
He
stated that his country was send-

v

.voted to.be spent, rose to

ha ve risen to tens'of billions and the national debt has gone

aspects of government financing are derived
directly from the great depression with its. economical,
social, and political changes. - Of these, the political results
shortage as soon as possible, ac¬
are the most
important.
It can be said with firm assurance
cording to Chilean Ambassador
Hodolfo
Michels, who indicated that the time has come when it will not be possible for this
this
at Washington on July 27
country to survive a protracted period of business de¬
after conferring with Secretary of
State
Hull
and
Undersecretary pression and consequent unemployment without undergo¬
t Welles.
Associated Press advices ing deep-seated social and political changes, v We had such
from which this is learned, added:
a
period. We have met with such changes.
It is our first
I
''Ambassador Michels said that
major experience of the sort.
It will not be our last, un¬
Agreement has been given on
part of the United States to
Chile's
acute
petroleum

Thursday, August 6, 1942

.

i

...

,

1

•

"

"

•

.

4

-

,

account

; in
'

rial
the
'

the

the

State

York

New

Committee

in

mental acts and attitudes which worked in the
tion

1919

was

same

direc¬

the

date.

to

extension of

private business intiative and the underlying
political complexion; of our immediate future.
Funda¬
mentally the problem is political in the broad sense rather
than in a narrowly economic sense.
/
"
,

;

It-: is

experience that political administra¬
tions which have waged a war, even though it be a successmi war, do not survive long after the conflict has ended.
If this rule is followed, it is possible that more conservative
administrations and policies may be looked for some time
in the next decade.
In this case, it is reasonable to expect
that a revival of private enterprise and
employment and a
consequent diminution of governmental expenditure may
result.
Yet this is by no means a foregone conclusion, for
it is your speaker's conviction,, as stated earlier in this
paper, that a protracted period of unemployment will now
and at any time in the future make conservative
govern¬
ment impossible.
If that be true, then the future of any
,

;

a

common

ing employment.
.
.
*
«
Private capital being thus diverted from its normal and
Secretary of the Committee, Ver¬ healthful functions found little opportunity to invest else¬
non
Munroe, said:
where than in government funds.
The commercial banks
"The
account
in
addition
to
being similarly handicapped in the making of regular com¬
schedules showing receipts and
mercial loans, were likewise driven to the purchase of gov¬
disbursements of the Committee
ernmental securities as their major earning possibility.
contains a detailed recital of the
Committee's activities during the These parallel situations resulted in the ability of the Fed¬
period in question on behalf of eral Government to
get loans without limit at absurdly low
the holders of Mexican securities. interest rates.
Limitless and low cost governmental money
It shows that, despite the magni¬
in turn gave an opportunity and an excuse for large engineer
tude of its labors over a period
of 23 years which resulted in a
ing operations such as the Fort Peck Project and Boulder
recovery for bondholders of some
Dam and a multitude of smaller projects ranging all' the
new administration which is favorable toward a revival of
$45,000,000, less expenses of about
.way from flood control, through needed school houses, to
$5,777,000, no member of the
private initiative will depend on its success in handling
•; .. >.j ''
Committee has received any com- unneeded and uneconomical new post offices.
the unemployment problems of the future.
;
i
pensation to date for his services,
With the advent of the war, the Government's ability
In part, those unemployment problems can be handled
although right thereto has been to finance itself
easily and cheaply has carried through
reserved in the account.
by more far-seeing policies on the part of business organ¬
from the peace-time economy from which it developed to
izations themselves.
"Among the members of the
Fortunately this foresight and the
the war-time economy in which we now find ourselves
Committee are Thomas W. Laestablishment of these policies are already under serious
The present situation of government financing and control
mont, Chairman since 1922; Sir
consideration by some of the principal industries of this
William Wiseman, Walter T. Ro¬ in
purely war-time production has many aspects that are
country.
The same foresight and the same practical ap¬
sen, DeWitt Millhauser, Lord Bi¬
highly desirable. It is desirable that the great new muni¬
cester, Sir Edward Peacock, Frank
proach needs to be developed in all business, small as well
tions plants should be government financed and, better
C. Tiarks, Vincent W. Yorke and
as large, if the maximum of employment is to be maintained
It is undesirable that private in¬
representatives in France, Bel¬ yet, government owned.
by private initiative.
gium and Switzerland.
dustry should be asked to build them up from-its own re¬
One idea which must become almost a moral obliga¬
"In duration, international sources and be left with a vested interest in the
produc¬
scope and
complexity of prob¬ tion of war materials.
In this year of grace, 1942, it is an tion with those of us who are engaged in business is that
lems dealt with, the work of the
honor to be a "merchant of death" as the old munitions we must look to derive our profits directly from the pro¬
Committee has been unique among
To
It is an honor rather than a disgrace duction and distribution of desired goods and services.
organizations of its kind.
The makers were called.
the extent that we expect to draw wealth from putting into
Committee's organization in 1919 because these present> merchants of- death are
devoting
proceeded under sanction of the their whole skill and
epergy to a patriotic work in 'the; Na¬ money form now the unrealizable profits of an impossible
Committee's

made

[

in

disappearance of the opportunities for invest¬
ment of new capital and new enterprise, or new ventures in
settlement of its accounts for old enterprise, and thereby we lost the reviving effect of
period from the inception of creative business investment in
private business and expand¬

The

••

with

Supreme
on July 31
the action started some years
ago by the Committee for a judi-

Court

.

.

available

.

announcement,
Aug. 1 by the

.

;

(

1
;

!

:

;

'

.

\

-

:

United

States

of

Department

State, and because of the world¬
wide distribution of Mexican se¬
curities the Committee has had to
function

in

many

in¬

countries,

cluding the United States, Great
Britain, France, Holland, Switz¬
erland, Belgium,
Germany and
Mexico.
It was required to pro¬
vide machinery for the handling
of more than $500,000,000 princi¬
pal amount of obligations in~ 28
separate issues comprising 36 se-*
ries as well as over $200,000,000
of interest in arrears prior to 1923
and the adjustment of current in¬
terest

during

the

period

1927."




'

1923'
•

tional interest; and since these

financed and owried

for the most part future, to that extent we invite disaster as we did in the
need speculative period of the late nineteen twenties. Wealth
from production, not from speculation, must be the
i^teal of
that
defined by the then-exist¬ the business world if we are to avoid another and worse

plants

by

are

our national government, they
in the future be used for any undertakings

not

now or

are

not in the national interest

as

ing Federal Administration.

social and economic revolution.

There

however, many reasons for the belief that
private business can do, there is still danger
feature is the vast indebtedness which our Federal Gov¬ from wide-spread unemployment and resulting political,
That being the case, we
ernment is piling up.
The beginning of this indebtedness social, and economic disaster.
must have planned and ready to apply before hand some
was made at the time of the expenditures for relief
pay¬
ments and relief works in the early days of the present ad¬ measures for a counterbalance to the deficiencies which it
is so difficult to prevent in our high-speed business
ministration.
economy.
Though the! sums then appropriated in ex¬

Speaking from

of

directly on the question
government financing, it is clear that its most startling

cess

Were

now on, more

of national income seemed at the time fantastic,
but the

beginning.

are,

with all that

To tfye mind of your speaker; there is no more hopeful
they ;
From hundreds of miliions,> the expedient for counterbalancing? these ^deficiencies arid reri.

.Volume 156
•

THE COMMERCIAL

Number 4096

jdering them harmless than that of well-planned and useful
governmental expenditures released at the right times, in
the right amounts, at the right places, in the right
way.
On the face of this, it is simply supporting the policies
Which have been applied for the last eight years and which
completelyv failed to inaugurate a healthy revival of busi¬
ness and
employment.
Yet the qualifications introduced in
describing the policy are of the utmost importance and have
teen until now disregarded.
The expenditures and the
work financed by those expenditures must be of the
right
amount, in the Tight place, at the right time, and made in
the right way.
The differences between

:

past and future policies involve
- in
the conception of
these expenditures are
ito be used not as thehtotive power, but as. the balance wheel
of our economy,
This is fundamental. Secondly, they must
be as completely as possible divorced from immediate
poli¬
tical cohsiderations.
This, though difficult; can-jae^takeh
care of in the legislation by which the policy is authorized
and on which it is organized.
Thirdly, the work under¬
taken must be performed under such conditions that it so
nearly resembles private occupations that the workman
-need not know, nor care, whether he is being paid with
government money or that of a private firm.;
There are many other necessary points to be coverep
to distinguish it from the ineffectual methods we have
followed until the present time.
To replace them with
effective methods, it is necessary to have continued study,
skillful legislative draftsmanship and a selling job by those
convinced of the continued effectiveness of private enter¬
prise, and alive to the situation which ultimately deter¬
mines pur policies and their own fate thereby.
Without
control of the unemployment problem, our political insti¬
tutions will disappear, the sickness of private enterprise
will end in death, and government financing will become s
matter of expropriation of the remaining private resources.
With unemployment under control the way lies open to
avoid these disasters, and in spite of the present enormous
Federal indebtedness and the great additions which the
conduct of the war may require to be made to it, this in¬
debtedness will not be so great that it cannot be serviced
land slowly reduced by a busy, prosperous country.
In bringing about the future which the whole nation
among other things some changes
their functions.
In the "first place,

much desires, business and finance has to see in clear
terms its useful social function in the nation,
and it
Then has to persuade the electorate to give it the opportun¬
so

& FINANCIAL CHRONICLE

459

public is constantly being fed with yarns about the speed,
climbing ability, the armament, the armor, or the
maneuverability of this or that American pursuit, inter¬
ceptor or fighter plane.
Yet if one may rely upon press
correspondents at the various fronts, not one American
fighter plane has made its appearance in any of the major
the

battlefields

which

of an address made by Ralph E. Flanders, Presi¬
dent, Jones & Lamson Machine Company, at the Third
New Hampshire Bank Management Conference held at the
Amos Tuck School of Business Administration, Dartmouth
College.

At

T.

that

the

Bone

time

of

it

Washington.

would

measure

stated

was

create

that
Co¬

a

lumbia Power Administration, fi¬
nanced

by

would

market

and

generated

power

bonds, which

revenue

control

by

the

the

Bonne¬

ville and Grand Coulee hydroelec¬
tric developments.

can
match the German or
Japanese
planes in this category. To be sure we are now told of
Describing the bill as "of the
new. and
improved models at length in- production which utmost importance" to all holders,
of electric utility securities in the.
will fill this
gap, but, alas, similar stories have been heard
Northwest, Mr. Merrill was quoted
so often in the
past that the man in the street can well be in the
"Times" of July 22 as say¬
excused for waiting to be
shown, to drop into the vernacular. ing: ; '•

!

t

Who

■

Is

"It could eliminate all

Responsible?

*

/

owned

';;Why this serious shortcoming? Surely not by reason
of any lack of
materials, technical skill or lack of engineer¬
ing imagination on the part of American industry.
No one
s

doubts,
match

no

one

any

could doubt that

other nation

we

have these

things to
The difficulty is

the

globe.
part doubtless to be traced to the lack of interest
in and careful study of
military needs in the prewar years.
Colonel Lindbergh upon his return to this
country long be¬
in

on

some

fore

became involved

in the war noted this lack of
study
adaptation of the airplane to modern war, but he
seemed to' make no
impression upon officialdom.
But for
we

utilities

through

and

ernment

region
the gov¬

by

later

sale

agencies

created.

privately

the

acquisition

municipal
be

in

local'

to

which

This

would

complished without

might,
be

people and by the exercise of
demnation authority.
"Under

property
the

the

authority

could

ac¬

vote of the

a

con¬

utility

be condemned by
and immediate

administrator

possession taken, leaving

the de-'<
paid to
Properties,
could be dismembered by the tak¬
several years now we have had the benefit of full knowl¬
ing of relatively small but vital
edge of British experience, and at least a working knowl¬ parts, thus greatly reducing the edge of Gprman experience to guide us. If the newer bargaining value of the remain¬

of

the

fighter planes now in production are not of the best, we
put that fact down as nothing less than a national dis¬
grace, and the fault can be laid at no one's door other than
the Army and the
Navy.
Such shortcomings in the over-all
management of the
war
production effort are particularly serious since they
directly affect the results in a vital degree. If, however,

termination

future

view

we

our

effort

war

tion

we

must and

that

we

dp, then many

which must.

as

directly

effectiveness of

all-pervasive, as without ques¬
constantly insisting
other serious defects are apparent
indirectly by so much impair the
as

the President is

or

effort

our

to

win

over

a

price

to

be

action.

court

der."

From

can

the

quote:

"Times"
,

,

also

we

•

.

"Quoting the bill to the effect
that

'determinations

expenditures

what

to

as

chargeable to
appropriations,
bond
proceeds,
revenues,
general
receipts
and
surplus shall be final and conclu¬
sive

on

are

all officers of the govern¬

ment,'

Mr. Merrill declared that
such
provisions
offered
'broad
spending powers and opportuni¬
ties for

juggling accounts.'

"/Altogether,' Mr. Merrill

combination of

con¬

have ever before faced. cluded, 'this is a most amazing and
shocking attempt to disregard the
Such defects are
particularly evident in the whole price rights of private enterprise, to
control. program, which
along with rising costs is placing make possible the destruction of
large numbers of business enterprises in a steadily closing private property values, to force
enemies far

stronger than any

we

unwilling electorate pub¬
ownership and to destroy local

vise, and creating a situation which must be relieved in
one
way or another at no very distant date.
The danger,
or one of
them, seems to be that presently the President

upon an

will undertake

public

to

persuade, and succeed in persuading
ity to perform those functions for the good of all.
Congress to provide subsidies for a long list of enterprises
Let us pray that we will fail not in the vision, and that
which find it impossible to continue to
operate under exist¬
we fall not short of the strength and wisdom needed to
ing regulations. • Another < obviously is that manyenter^
attain it.
prises will in any event meanwhile be forced to close
*Text

Homer

down.

Confusion and Uncertainty
The rubber situation about which there

seems

lic

home rule.''
-

"In many instances in
power

defeated

in

Northwest

the past
proposals have been

communities

when

the

in

issue

the
was

presented to the local voting pub¬
lic for consideration.

ville

and

Grand

The Bonne¬

Coulee

develop¬
ments, however, were Federal
projects advanced as power de¬
velopment and conservation pro¬
to be grams."

In the same paper it was also
opinion in official circles, the gasoline and fuel oil
situation in the eastern states, the meat
impasse which re¬ stated:
"Mountain States Power, which
cently: filldd the headlines bf the daily press, and a long
operates in 117 communities in
list of other incidents and
developments which leave the
Oregon, Washington, Idaho, Mon¬
general public not only confused and uncertain, but neces¬ tana, v South Dakota and
Wyo¬
sarily skeptical as to whether any one in Washington really ming, is a unit in the Standard

every

v

THE FINANCIAL SITUATION
(Continued From First Page)

materials for purposes which could be quite satis¬
knows what he is about—these
factorily served by other materials of which there is no

scarce

are

factors which tend seri¬

Gas and Electric Co. system.
reason Mr.

For

this

Merrill's statement
ously to impair moral, and which may presently substantially
took on added significance, since
shortage? There is evidence that this type of faulty plan¬
impair the effectiveness of our war program. The Adminis¬ the chief executive of Standard
ning has cost us dearly and is still costing us dearly, though, tration has
outwardly at least placed a damper upon its im¬ Gas and Electric is Leo T. Crow¬
of course, the mere layman hesitatesTo .be dogmatic upon
pulse to abuse business and to cast aspersions upon indus¬ ley, a high Administration of¬
such a subject.
It may be said, however, that the tech¬ trial achievement.
It has even at times commended the ficial."
nical press long ago began exposing this type of waste and
Indicating that the administra¬
achievements of American industrial
organizing genius.
predicting some such situation as we are now apparently Weakness, however, continues where; the Administration's tion of the Columbia Power Ad¬
ministration would be lodged with
facing in the event that these practices continued. Cur¬
self-analysis is said to have found its own greatest shortcom¬ Secretary Ickes' Department, the
rently reports, apparently reliable, from Washington . ac¬
ing^ administration Wl and, of course, it is making its own Associated Press accounts from
cuse both the Army and the Navy of clinging stubbornly
tasks doubly trying by clinging to grandiose ideas of man¬ Washington on April 1, said:
to their insistence upon use of critical materials where
"The Senator (Mr. Bone) told
aging everything from Washington.
the Senate he introduced it
abundant substitute materials have been proved quite.satis¬
(the
In.light of this record it is most ardently to be hoped bill) on behalf of himself and
factory, and upon using them even for distinctly trivial
that nothing will come of the plan said now to be under con¬ Senator Mon C. Wallgren (Demo¬
purposes.
sideration for "drafting" the entire population which would crat), Washington. The measure,.
Correction Urgent
Mr. Bone said, would permit the
then work under instruction from
Washington.
Administration to acquire private
v"(
Here is a situation which evidently calls loudly for
,

Y

v

prompt correction to the utmost extent to which correction
at this rather late date can be effected.
That correction

utility

Bone Bill Criticized As

Socializing
Industry Through War Bond Funds

systems
in
the
Pacific
Northwest through issuance of the
revenue bonds.
The Administra¬

tion would remain in the Interior
patently must come from the highest authorities in Wash¬
Department, with the Administra¬
ington, and can come from no other quarter. Tt-may be
Power
tor to be appointed by the Presi¬
added parenthetically at this point that it is most earnestly
The assertion was made on July 21 by Z. E. Merrill, President of dent and confirmed by the Senate.
to be hoped that at long length something effective is be¬ %
the Mountain States Power Co., that under the
"Mr. Bone asserted that the pri¬
pending Bone Bill
ing done about the production of synthetic rubber so that money invested by buyers of war savings bonds and stamps will be vate power company obligation
six months or a year hence we shall not find ourselves used by the Federal Government for socialization of the private acquisitions
contemplated
'are
Mr. Merrill's allegations were necessary for the most complete
facing what amounts to a rubber famine in this country.- power industry in the Northwest.
made in a special report to the company's stockholders in
wartime
use
of the I vast water
which, in
The thoughtful student of public affairs, it may be added,
criticizing the bill he declared^
power resources and facilities of
would feel very much more comfortable concerning this that I;this "socialization"
ther reported as saying that "the the Northwest and that the pro¬
process

situation if the facts
But what appear

were

at his command.

t

V

to be well authenticated facts strongly

would provide no additional kilo¬
watts
war

of

electric

power

and would build

no

tanks, guns or airplanes.

ter of

from which

planes,




so

vital

to

modern warfare.

The

New

York

"Times"
we

of

the

additional

suggest that at a number of other points also the authori¬
ties have not been particularly foresighted.
Take the mat¬

fighter

for

In the
July 22,

money

the

would
in

be used

not to

aid

the

slightest degree,
but only to change the ownership
of the utility property acquired."
The bill
(S. 2430) was introwar

quote,, he (is fur-: duced

on,

April, »lMb.y

Senator

posed

revenue

ported

by

bonds will be sup¬

and

be

payable only
derived from
the operation of the great system
created
under
the
proposed
from

the

revenues

amendment.'"

:

v

.

y'!."

FINANCIAL CHRONICLE

THE COMMERCIAL &

460

,

^

was

The State Of Trade

*

, .r

t

-<

'

"i ^

s v

-1

,

i

War contracts award¬

ed to these regions were,

in turn,

output—which is now operating at just about equal to the aggregate
value'
of
their
manufacturing
an all-time high—and gains in refinery runs,
bituminous coal pro¬
operations in 1939.
7
duction and engineering construction volume have sent business in¬
"Among the other major factors
dex figures to the highest point since last December.
'Further expansion in electric

production of electricity in the

For the second successive week

high record in the week ended

United States reached a new all-time

kilowatt
hours, the Edison Electric Institute ning of this
•reports.*
1 -i: v*'
"."V i: *> j in the first
July 25, at 3,625,645,000

This

increase of 12.6 per

an

was

with the 1941 week.

cent compared

37%

had net income
half of 1942 of $361,year,

taxes, which was
the earnings in the

after

000,000

below

week this year first half of 1941..
The labor situation
3,565,367,000 kilo¬

the preceding

In

the output was
watt hours.

-

appears to
looming up again as an un¬
pleasant feature. It is pointed out
,

For the latest period

all

regions showed gains over a
year ago, the greatest being 21.5%
in the Southern states and 21.2%
on the Pacific Coast.
4/ 7

be

that strikes in

increased

industries have

war

from

in

27

to

January

in

192

June, or by 611%, accord¬
a study covering the first
six months of 1942, released by
the National Association of Manu¬

'"'•j According to the Association of ing to
American
of

855,522

Railroads,

freight

revenue

cars

loaded

were

during the week ending July 25. facturers.
This
was
a
decrease
of : 1,545
curs,
or
0.2%, compared with
the preceding week; a decrease of

42,042

cars,

with

year

4.7%,compared

or

7

'

,

,

7|

tv (7

i,

j

that the

'{ The Association finds

11,605 in January and 84,775 J in
June.; The number of man hours
lost in war production industries
because of such strikes increased

ago,

pacity, the lowest rate in, about
a month,
and half a point under
last week's operations of 97%, the
American

Iron

Steel

&

Institute

V
" "
7'7' ,•
7 \
96.5%, indicated steel output
this week is 1,639,200 net tons of*
ingots, compared with 1,647,700
tons last week and 1,591,100 tons
reports."

.

At

pointed out that the next
few months: are likely to require
It is

considerable tact and understand¬

employers and
labor
representatives
if
wide¬
spread
stoppages
are
to : be
ing. both

among

avoided.'

...

There is little doubt that a wave
of
the

is

restiveness

labor

sweeping

(2) the enlargement of establish¬
of military camps with the
accompanying expansion of in¬

said: •>■

through construction, servic¬
ing, and military payrolls; (3) the
extraordinary migration of civil¬

come

ian

workers

-defense-war

into

and (4) regional variations

areas;

in the amount of income

derived

from' agriculture,
which moved
forward more sharply in 1941 than

other

any

industrial

national

of

income,

component

except,

construction.

tract

con¬

Trends In State Incomes, 1941

"All but

7

seven

than

States had higher

in

preceding

any

The. exceptions

year..

were

Ver-r

mont,; North Dakota, South Dako¬
ta, Nebraska, Oklahoma,. Montana,
and Arizona.
Besides Mississippi,
with' gains well above the

States

national

Virginia,
with 39%; Louisiana, 37%; Kansas
With 35%; and Connecticut, Wash¬
ington and California. Ten other
average, were

had

States

incomes

v

Department

sales

store

basis

country-wide

were

on

up

■.

the

above

a

„5%

pared with the like week a year
ago, it was shown in the weekly
figures made public by the Fed¬
eral Reserve System.
7: New
York
City
department
sales

store

week

were

ended

July

off

in

3%

25,

the

compared

with the

same 1940 week, accord¬
ing to the Federal Reserve. Sales
a

year ago

at this time

were run¬

ning

at high / levels, the week
ended'July 26, 1941, showing a
gain of 26% over the comparative
1940

week. ; -

T ,,*,<,

<:

7

~

Reports on agriculture show up
exceedingly well.
Farmers' cash
income is running 40% above 1941
and

pointing to

an

all-time record

total this year of close to

$15,000,000,000, official Agriculture De¬
partment reports indicate.
Farm

income

this

year

will be

than three times the depres¬
sion low of 1933.

more

Farmers

reported to be pay¬
ing off part of the $10,000,000,000
debt they have accumulated in the
last

20

are

years.

Abrupt Changes

Abrupt
the

changes

flow

of

various

the

increases,
Montana

to

of

a

low ; of 7% for
high of 46% for
The
corresponding

as

compared with the

according to
tabulation by the National City
year

ago,

of New York.

This group of

companies,

repre¬

the

1939

to

,

.

,

,,




.

about

a

combined

list,

income equal to

10th of Pennsylvania's.

So-Called
The
amount

"Tap" Issue

offering
of

of 1962-67

7

of

2J/2%
was

an

additional

Treasury Bonds

announced by Sec¬

income

nouncement, "not being specifi¬
cally limited." At the same time

with

geographic' regions,

gains ranging from

the Mountain
Pacific
of

region.

14%

to 31%

area

in

in the

The upper

limit

regional increases in 1940

was

8%, according to the Board, whose
comment upon these changes fol¬
lows in part:

"Gains

....

.

were

in

.

.

7./7,,v77,;i\

generally

those
war

areas

normal

peacetime
Pacific

the

most

in

which

contracts

compared
area

7.

with

were

their

production.
which

has

Morgenthau on Aug. 3,
subscriptions being invited
par and accrued interest, the

at

1939

from
were

June, 1940, to January, 1942,
almost four times as large as

in this

the

area

by manufacture

in 1939.

expahsion

of

In

contrast,

income

in

the

denominations

will

•

freely

registered

after

bonds

with
that

not

will

bonds

These

an¬

attached

be

to the

bonds, through provision for their
optional redemption, at par and
accrued interest, upon the death
of the owner, for the purpose of
satisfying Federal estate taxes.''
It

was

further

announced

that:

"The right is reserved to close
books as to any or all subscrip¬
tions

at any

time without notice.

Subscriptions will

be

allotted

in

received, and payment at
and accrued interest from

as

May 5, 1942, must be made on
Aug. 3, 1942, or on later allotment.
Accrued interest to Aug. 3, 1942,
is $6.16293 per $1,000, and each
day's accrued interest thereafter
is $0.0683 per $1,000. Delivery of
bonds allotted hereunder wilTfRJt
be

effected earlier than Sept.-l."

This week's

offering of the 2l/z%

Treasury Bonds, due in 1967, rep¬
resents the reopening of the sale

be

subscription by com¬

banks

mercial

available

be

interchangeable

and

the

'

•

,

—Ed.-'

accepting demand

deposits, nor-eligible for transfer
such banks for a period of 10

•■•••■-.•:.••'•

'

-"On

the previous

occasion, 137
companies in the New

insurance
York

Federal

Reserve

District

bought $492,000,000, and this fig¬
ure
is likely to be exceeded this
time, ' In' this- district
savings
banks

bought $32,000,000 in May;

individuals, $11,000,000; trust ac*
counts, $9,000,000 and beneficial
funds, colleges and other institu¬
tions, $42,000,000. The remainder
was
made
up
of miscellaneous
"In the New « York;

District

Federal Re¬

than 2,500
ringing doorbells
telephoning yesterday to a
'prospect' list of 28,000 names, all

serve,

salesmen

more

were

and

different houses and

assigned to

In May there were

their salesmen.

2,500

in this

subscribers

district

'tap' issue/ but this is

to the

ex-

pected to be greatly exceeded,

on

this occasion."
:

In addition, to the current offer¬

ing of "tap" bonds, the Treasury
indicated on July 31 that later
this week

offer $1,500,-

certificates

000,000

raise

to

ness

it would

cident to

of

"new"

indebted¬

in¬

money

needs.

war

to

years

from May 5. The bonds may

be

pledged as collateral for loans,
including Joans ;by ' commercial
banks which accept demand de¬

Morgenthau Seeks To 7
Avoid Forced Savings
Expressing it

posits, but any such banks acquir¬

"we shall

finance this

maturity will be required to dis¬

sory

pose
as

of them in the same-manner

they dispose of other assets not

owned. by banks.
is not specifically
limited in? amount,.,it will remain
open for a period longer than cus¬
tomary... 7 7/ v'7:7 7;' 77r ,7 ■ -• ' J"Pursuant to the provisions of
eligible

be

to

As the offering

Public .Debt Act of

the

his belief that

as

continue to

ing the bonds because of the fail¬
ure
of -such loans to be paid at

be

his

able

to

without

compul?
Secretary/ of the

war

saving"
Treasury Morganthau

stated

.

at

conference on July 30
that "the important thing is get7
ting every dollar possible outside
the7banks.
We, are doing that;
Forty per cent of our weekly bill
buyers, even, are non-banking in7
press

vestors."

1941, in¬

Mr.

/ 7;7 •'/:

Morganthau added that "we

terest upon

the bonds now offered
exemption, as
such, under Federal Tax Acts now
or
hereafter ;enacted.., The full
provisions relating tor taxability
are
set forth in the official cir7

are

shall not have any

schemes

cular released*

1 shall

today.

7

;

"Subscriptions will be received

constantly working on such
as the tap issue to attract
such people.
I have to borrow
from $4,500,000,000 to. $5,000,000,,

000

Branches, and at the Treasury De¬
partment, Washington.
Banking
institutions and security dealers
may

submit

subscrip¬
but

only the Federal Reserve Banks
and the Treasury Department are
authorized to act
cies.

as

Subscriptions

official agen¬

must

be

ac¬

companied by payment in full."
of bond cannot be
owned by banks, and it
was noted by the Associated Press
that it is designed especially for
insurance companies, trust com¬
This

type

bought

or

panies, business corporations and
large individual investors.
It

announced

was

on

Aug. 3 that

month. As

long as the Amei>
people will lend it to me
shy away from forced sav¬

a

ican

ings."

at the Federal Reserve Banks and

of

par

proportion to
manufacturing output.
Specifically, total war contracts
its

$1,000, $5,000, $10,000 and
$100,000; they: will-not be issued
in: coupon form prior to May 5,
1952, but. coupon bonds in these
$500,

corded

full

in

15, 1962. Bonds registered both as
principal and interest»will be
issued in denominations of $100,

to

the

would

:

$100,000,000 in May, and Prudent
tial, which bought $150,000,000, are
expected ."to imake big commit¬
ments today, and New York Life,
which bought $50,000,000 in May,
also is expected to be a substan¬
tial
purchaser. The New York
Life purchases this week are in¬
dicated as $100,000,000, and those
of
the
Equitable as $75,000,000

payable semi¬

15 1942.: The bonds will

15, 1967, but may be
redeemed,v at the option of the
United States, on and after June

Secretary announced that "ad¬
ditional-rights not heretofore ac¬

of

contracts

issued, said the

the

had its income raised most sharp¬
ly also received the highest share
war

interest from that date at the rate
of 2V2% per annum

tions for account of customers,

Treasury Offers 2^s

amount to be

by

bonds, with which they - will be
freely interchangeable. The bonds
are
dated May 5, 1942, and bear

generally

Wider variations also occurred in

larger
manufacturing
organiza¬ New England, Middle Atlantic,
tions, and employing an aggregate and East North Central regions,
capital and surplus of approxicomprising the predominant
mately $8,965,000,000 at the begin- peacetime
manufacturing
belt,
,

a

cash

total value added

sentative for the most part of

continued at the botom of the
with

retary

Thus

a

Vermont,

New Mexico,
Wyoming and Nevada

was
much more restricted,
the Board, which reports the
upper limit as being only 11.5%.

and

levels of

19th place.

1940

as

after taxes

15th to

says

highest

substantial decline in net income

take

to

place. Delaware also bettered
its position.
Iowa dropped from

a

increases' from

defense

reports issued to date
by 180 manufacturing companies
show, in a majority of cases, a

Nebraska

33rd

a

Mississippi.
range

the range of
extremely
wide,

was

from

varying

and

Island,

ex¬

higher level of

a

income than in 1940,

Record production of crops and

Half year

Board,

State without

every

ception enjoyed

marked

War I.

regions
according

year,

Rhode

The Board states that

New York.

although

in

the

to

Conference

livestock enjoys the highest prices
since
the boom
days of World

Bank

and

past

The

to

income

states

during

developed

Department Circular No.

date.

Arkansas

In 1941 Income Flow

for the week ended July 25, com-,

a

Treas7

685, dated May 4, 1942. They are
identical in all respects with such

available for

increase of 23% for the
Montana, Nebraska,
and Nevada were the only States
with increases of less than 10%.*7

passed

form

Bonds of 1962-67 issued pur¬

ury

suant to

average

Mississippi

will

and

to

.7/

7

offered will be

part of the series of 2Vz%

United States.

maining States.
Connecticut re¬
placed Minnesota in 13th place.

Find

\/7

•

now

mature June

'

; - >' v-

•'■•'77:

■

due Dec.

incomes

sub¬

allotments were
columns May 21,

.

regarding this week's
Secretary
Morgenthau

addition

an

were

of

annually, with the first payments

'v.<

,

..

3

Aug.

"The bonds

ment

the books
the final

days

1952.7 In his announcement

offering

-

.;• •

10

Details

ized regions for strategic reasons;

-

699,000 reported for the entire 52

the

open.

of

,

weeks of last year.

in

page

armament

new

.

Various causes are
for the like 1941 week. • 7 "5; '*
.,'v ascribed.
One - important cause,
: "Two
Engineering
construction vol¬
changes occurred in the
obviously/ is that the cost of living
ume for the week totals $259,800,ranking: of the first 10 States,
is continuing to rise, despite the
which received 62% of the total
000, an increase of 50% over the
general maximum price ceiling.
total for the corresponding'1941
national income in 1941, and 62%
In the face of possible wage freeze
week and 75% above last week's
of the increase for the year. New
ing,
labor
representatives
are
York led, with an income of $13,r
total, as reported by "Engineering
hastening: to make demands for
News-Record.''
• —;:.'77: <'..'7,
600,000,000, followed by Pennsyl¬
higher pay before such ceilihgs
Public construction gained 55%
vania, with $7,100,000,000. Califor¬
become effective.
** • M*
oyer a year ago, and is responsible
nia, with an income almost equal
It is further pointed out, that
for the increased volume, as pri¬
to that of the entire New England
vate work is 0.5% under last year. the expansion of unions has been
area,
passed -Illinois to assume
such that there is a shortage of
Both public and private construc¬
third ; place.
Following.: Illinois
tion-record increases over, last seasoned negotiators and leaders were
Ohio, Michigan, Massachu¬
among the unions. Similarly there
week, the former up 79%, and the
setts, New Jersey, Texas and In¬
is apparently a dearth of qualified
latter 36%. -vj
diana.
Indiana replacdd Missouri
...The current week's total brings personnel men to cOpe /with the in
tenth
position in the'! State
labor crises that arise during war¬
1942 construction to $6,106,820,000,
rankings.
-7777 '7:7,'. 7? 77*/;
time.
Iri the face of this situation
a gain of 61% over the volume for
"Significant changes also devel¬
is
likely that Sporadic work
the 31-week period in , 1941, and it
oped in the rankings of the re¬
'
'
already in excess of the $5,868,- stoppages may occur.
country.

that $882,078,700 bonds were sold

of

were

"tap" bonds, of¬

May, and referred .to in
our, issue
of May .7, page 1792.
The results of the offering'showed

scriptions and
given in these

uneven

,

week is scheduled, at 96.5% of ca¬

so-called

plants placed in under-industrial¬

involved in the strikes \^ere

men

and an increase
of 137,484 cars, or, 19.1 per cent,
compared with 1940.
7 j/:77.77:77' 415% in June ^against January, or
Steel production for the current to 2,037,224,from 369,576 hours.
a

in 1941

production

'

—

the

of

fered in

spread
(1) the entrance into

contributing to the

H- s'f' i:

-

slightly below the average for

the nation.

'

Thursday, August 6, 1942

press

end

.

savings plan.
A plan to this
presented on July 28 to

was

Senator

George, Chairman of the

Senate

Finance

Committee,
by
Goldman, New York mer¬
chant, as was noted in our July
30
issue,
page
364.
Senator
George
was
later
reported
as
giving some thought to the pror
posal, offered with a view to curb¬
ing inflation, and Secretary Mor¬
genthau was likewise indicated as
saying that the plan "deserves
study."
."77 '7".7:.: :7;;,7.77/7 ;
Julian

.

Control Of Living Cost

Life Insurance
Co. had subscribed to $125,000,000
Metropolitan

the

Is Being Surveyed

/

issue; last May the ;7 President Roosevelt announced
purchased $100,000,000 of on July 28 that Justice Samuel L

new

company

the

•

views of Mr.

Morganthau
prompted by a query at his
conference as to a compul¬

were

sory

'

.

The

bonds.

The

Mutual

Life In¬

Rosenman

of

the

New

York

Su¬

of New; York preme Court is collecting data on
announced' on
Aug. 3, through the Administration's anti-inflatiori
Dwight S. Beebe, Vice-President problems. The President said that
Company

surance

and Financial

new

Manager, that it has

$70,000,000 of the
issue of bonds. This subscrip¬

subscribed

to

Judge Rosenman is not preparing
a report on the cost of
living but
is
assembling
information
and

tion, Mr. Beebe said, which is the
largest single subscription ever

boiling down facts in the matter;

placed by The Mutual Life for
any single security issue, brings
the Company's total holdings of
United States Government secur¬

derson

ities

$565,582,300

to

At the time of the May

amount.

offering
Mutual

principal

of the

"tap" bonds the

subscribed

to $60,000,000.

Price Administrator Leon Hen7

Mr.

to

on

July

Rosenman

randa

28

the

presented to
OPA's memo¬

prices and wages. Prior
this, the public members of the
on

National

War

nished facts

posals.

on

Labor

Board

fur¬

wage

policy

pro¬

It is understood that the

purchases *by* other in-+Treasury Department and the War
surance companies of the current
Manpower Commission have also
issue of "tap" bonds, the "Wall
submitted data looking to the adStreet Journal" of Aug. 4 said:
As'td the

"Equitable Life,

which bought justment of the wage situation.

77 7.

.

THE COMMERCIAL &

Number 4096

Volume 156

FINANCIAL CHRONICLE

461

Cites

Dangers Of Using Federal Debt To
Urges Treasury Hold Taxes Over 80% Of Excess
increase Purchasing Power, Equalize Income ; ? Profits Tax Its Post-War
Recovery Reserve

)

fiscal theory being promoted in this country to
the effect that we need not worry about the Federal debt since we
owe it to one another
and that interest payments represent merely
"There, is

a new

distribution of

within the country," says The First National
31 issue of,"The New England Letter."

money

Bank of Boston in its July
"In

consequence,"
the

to

advocates

embark

upon

a

of

this

huge

spending

that

On the surface," the
'observes, "this general the¬

sounds plausible but upon an¬

alysis it
and

to be

proves

dangerous

mental

pernicious

a

doctrine,.

Funda¬

<ii>ncern

of deep

issues

to

the future welfare of the country

involved, It is essential, there¬
fore/ that eVen while engaged in
a life and death struggle, careful
consideration should be given to
the proposed spending program,
for its adoption, as a general pol¬
icy, would have far-reaching un¬
favorable : consequences."
Con¬
are

not

obtain

ade¬

to finance their reg¬
ular activities. They would then
means

vassals

become

ployment.
ory

they, could

quate

sustain purchasing power and em¬

accounts

from

Washington it'was stated that Mr.

told the Committee that

theory/^

program after the war in order to

bank

Press

the bank, "the Government should, according

says

At the Senate Committee's hearing on

the pending tax bill on
July 29, Clinton Davidson, appearing in behalf of Fiduciary Counsel,
Inc., of New York, urged that all taxes collected in excess of 80% of
excess profits be held by the
Treasury as a post-war recovery and re¬
employment reserve to be returned to corporations.
In Associated
.

of

the

Federal

Davidson

90% ex-<S>cess profits tax would "cause cor¬
resented the CIO women's auxil¬
porations to die like flies in the iary." ,V:'v;.
post-war period." From the same
The
6-point, program of Mr.
advices

quote:

we

a

/vv*:;/;;'.
Murray presented,by Mr,. Cowan,
'recom¬ as given in the "Journal of Com¬

■/■

profits

taxes

the

"The

inevitable
control

•

mended

Treasury

a

90%:

has

;

to

surtax

take

in

even

which

could

expansion of

"The changeover from

warns:

y. ■

The

/,-/

v

'

*

"The

advocates " of t this

'

debt

reserve

post-war period
will spread depression and unem¬

after

the

-

added

difficulties

plants/since

the V-loans

participate
ment

war

"He estimated that at least $1,-

the Government

should,

"3. An end to
low

loopholes that al¬
wealthy to evade their

the'

as a gen¬

■

-

.

purchasing

it

since

is

merely the transfer of funds from
one

its

to another.

group

Carried, to

logical conclusion, this would
that it does not matter how

mean

large the tax tribute to the gov¬

ernment; so-long
does not leave

fore,

we can

the

on

more

our

as the
borders.

money
There¬

increase the number
payroll to many

Federal

millions

until it-represents,

shall say,

one-half of the total
working force. The net result of
such a system would be that each
productive
worker or business
would be called upon to support
we

two

families, his own and that of

the

Federal

worker.

How

much

the

of

purchasing power of the
country is diverted into govern¬
ment channels to be redistributed,
is obviously of deep concern to all.
.

It is obvious that the Gov?

ment.

cannot

ernt

the

pay

bills -of

and remain solvent.-.^

groups
"This

interest

power

new

fiscal doctrine is

,

con¬

trary to the one that prevailed in
this country for

tion.'

all

•:-

,* >■•

^/: ;/'//•;.;,

calendar, instead of fiscal year
basis would work extreme hard¬
of; the ships on companies' /which had

Philip* Murray, President
CIO, led a group of six CIO wit¬
nesses;

who

recommended

100%

while

the United

debt

in

only

States

times

when the conflict
mined efforts

went

into

ported Mr.

Cowan

war,

and

the

-

of

deter¬

was over,

made to liqui¬

were

r

House

"failed

as

approved

miserably"

to

saying that
bill
had
carry

out

the tax recommendations made by

date outstanding obligations. This President Roosevelt in his 7-point
fundamental policy was laid down program to control the cost of liv¬

by;,

Alexander

•<

Hamilton,11 the ing.

founder

of

his first

report in 1790

of

tary

our.

the

stated:

:

fiscal

The press accounts added:
"He said that instead of raising

system,; in

Secre¬ only $6,271,200,000, the bill should
when he raise
$10,000,000,000- additional

as

Treasury,

..«■

at

revenue—or

•

••

least

the

$8,700,-

"

recommended
by
the
'Persuaded, as the Secretary is, 000,000
that the proper funding of' the Treasury.
"He
urged the Committee to
present debt will render it a na¬
tional blessing, yet he is so far seek $2,500,000,000 in added reve¬
from acceding to the position, in nue by closing the 'loopholes' of
the

latitude

times
debts

laid

in which

it

is

down,.' that

some¬

"public

public benefits"—a po¬
sition inviting to prodigality and
liable to dangerous abuse.
J' -'
are

.

securities

tax-exempt

and

sepa¬

rate income

returns, and;by cut¬
ting of all incorhes at the $25,000

level.■>;;

the

levy

a

taxes

L

.

v/The bill utterly fails: to carry
the principle of equality of

out

"The

type

of

,

average

person

in

to; the New York
sound, then the more the Gov¬ Washington
"Journal of Commerce" said:
ernment/spends the greater the

is

;this country has had, in peace¬
time, command over several times national income. The same kind
as many goods as the average per¬
of financial.theory in essence has
But

.

."The

of last Jan.

as

Likewise
counts

statements; of

CIO

Presi¬

the

same

ac¬

quote:

we

"Howard

Kellogg, President of
Spencer Kellogg & Sons, Inc., of
Buffalo, N. Y., said his company
would

be

put : in; the

having" paid
than

$710,000 hiore
available :for;dividends

was

if the taxes in

the

made retroactive
;

"Mr.

since
on

position^of

out

bill

new

on

the

explained
that
company
did business

his

the basis of

a

fiscal year end¬

ing in August, it had figured its
taxes under the 1941 rates and had

made

dividend

its

If

payments.

it had to pay the new rates for all
of
the
months
from
January

August,

he
its
said,
dividend payment would then be
considered
In

the.

$710,000 too high."./

New

Commerce"

York

;

"Journal

f
J

was

stated

that the corporation tax proposals
submitted by Mr. Little would im¬
pose

a

maximum rate of 50%,

on

corporation net income, impose a
20% Withholding tax on all pay¬
ments
and

of

levy

dividends
a

increases
count

and

interest,

95% rate 'upon "unjust
surplus."
The ac¬

in

from

the

to
as

JrTi

,t>




*.!»»,**»

of

,

.

public debt as

increase

instrument

an

general policy

a

purchasing

*

'

fSll,

SsU

power

and

to .redistribute

1

•
>.C

,

and Machine Workers of America,

unable
carry

a

sales tax

would

9

malnutrition

cause

miners'
Vi.;-

on

1.

Katz, who opposed
the grounds that it

families,
.i

.

among

Mrs. Katz rep-

J.t-t:-i 1 >>!

to

out

program.

'/.'"With

obtain

credit

their part
"
.

the

corporations,

even

the

to

reduped
:Vtr'jiu:

in-

been

" !

considerable

burden

would

be

records
on

cor*

^••///•" ■'V/';

*'

t

Wabash Official Heard

"Arthur

asked

K.

amended

Wabash

so

taxes

during

securities

on

equity in the

same

sulting from

trans¬

reorganizations

eliminated

are

Railway,

.

tax lawsJ be
eliminate' the

to

as

stamp

Vice-

Atkinson,

that' present

ferred

der

of

placed

in

that they

way

transfers'

on

re¬

reorganizations

bankruptcy laws.""

un¬

/•**'.'".

•

Reference to the hearings on the
bill; appeared in our July 30
issue, page 364, 369 and 384. / //, /

;

,

tax

FDR Signs Bill Allowing
Government Wheat Sales
'

■

President Roosevelt signed on
July 22 the $805,000,000 Agricul¬
ture
Department ; appropriation
bill for the >1943 fiscal
year; whlcH
authorized the sale
of'Govern¬
ment-owned

wheat for

feed and industrial
below parity.
in

This bill had been

deadlocked
two

livestock
at prices

uses

Congress for

months

due

to

more

differ¬

Government
wheat
sales and funds for the Farm Se¬
ences

over

curity Administration. ;Final set¬
tlement
noted

came

in

page 274.

In

on

these

d

*

July 15, as

columns
..

i.;*

*

•

was

July 23,
, . .
It*,'

'

reporting the completion of
on

the measure,

ciated Press

on

the Asso*
July 22 said:

"During the fight the House at
first

insisted

on
barring sales of
prices below parity, or
about $1.35 a bushel.
But under

wheat

at

White House opposition it finally
gave way to a Senate

lowing the sale of
000

bushels

85%

of

cents

of

corn

surplus

parity,

wheat

or

at

about 83

bushel.

a
..I

.

proposal al¬
to 125,000,-

up

v.
■**'."''•*

J

.

<

.

5

.i!

"Signing of the bill cleared the
for movement of millions of
bushels of this wheat from, heavy
producing
areas
into / livestock

way

feeding

areas

supplement
stuffs.

where it is needed to

corn

and other feed-

/;;

Z

'"V-" /. %

"The sub-parity price puts the
government in a position to sell
some of the grain for processing

..

into; alcohol used in. the manufac¬
ture

of

munitions

rubber.

and

synthetic

J

:t'

J/

/ /"The measure carried funds for
financing far-flung activities of
the department, including its crop
control,
crop '/insurance,
food
stamp, research and market regu-latory programs. The largest item
was $450,000,000 for soil conserva¬
tion payments to be distributed
among farmers cooperating with
crop adjustment programs.
,

"The

bill,

that

unlike

the

for

did not pro¬
vide funds for parity oayments. A
year
ago, $212,000,000 was pro¬
previous fiscal

year,

vided.

.

/ "The

....

;.

.

.

carried

$169,440,000

for farm tenant land

war

.

profits:

§ i,nr;.»

of

the
<,

.

and Mrs. Julia

the

has

President ' of

its

Washington, bureau it

income

balance

porations.

of

from

advices

individual

additional

which

action

Kellogg

been

would, in the course of time, find wealth and income.";
,oi

advances

objection to the Treasury's with¬
holding tax program because of

were

it.

•

,

pay¬

contractor,

income and th'en

gross

the

on

than

.

ing out of proposed Federal finanmng.-the local communities

the

banks may

interest

war

Government

on

"There

::

J."

from

<

ernments, and if this trend were
accelerated by developments grow¬

to

,

higher schedule,/ retroactive

paper indicated,
dent Philip Murray outlining the
continued in part: T *
proclaimed many times in labor % union's- tax recommenda¬
"Mr. Little pointed out that the
our
favorable position after; the the world's-history. ; But in each tions was followed up by state¬
Government would collect addi¬
war would be seriously impaired
instance it has proved to be )like ments from 'five other represen¬
tional revenues from individuals
Should taxes continue to absorb a
mirage on the desert and the tatives of the CIO, all of whom
if corporations were required. to
e
substantial
proportion of; in? final outcome was toil, sweat and presented their reasons for advo¬
come.
The higher the tax pay¬ tears.
cating -the" 6-point program
of distribute unjust accumulations of
^,*ji*
Jf*. v"':*'/;
their chief.'\
surplus, which "could consist of
ments, the less there would be for
"This does not mean that it may
cash, prepaid expenses, securities
food, clothing, shelter,, and other not be
w itnesses
who
necessary for the Govern¬ .44Other? CIO
of other
corporations and other
items that make up the standard
ment during the transitional: pe¬ packed up Mr. Murray's 6-point
assets not necessary for the con¬
•of living for the averageindi¬
riod to spend funds to help bridge program were Hoyt Haddock, leg¬
duct of business.
:
'
> ;
vidual,"
///
the gap to normal business ac¬ islative representative of the Na¬
"The plight of moderate sized
tional Maritime Union; Reid Rob¬
The bank goes on to point out
tivity.; Public money should be
that "in order to obtain revenue,
inson, President of the CIO Mine, corporations without huge sur¬
expended when there is an abso¬ Steel
and Smelter Workers; Russ pluses ^was outlined to the Com¬
the Federal Government has in¬
lute need for such action.
But
vaded many tax fields originally
Nixon, Washington representative mittee oy Mr. Little as he pointed
out that these organizations were
belonging to State and local gov¬ this is far different -from using of the United Electrical, Radio
in the rest of the world.

son

the

divual's income. '

heavily to build war
production facilities and now were
faced with taxation Under, a new

h [/*i,:/)*'' through

>»*•.

adoption of the proposed sacrifice for
victory, thus striking
financing as a general a serious blow at national
unity
policy would open wide the flood¬ and national
morale,' he stated.
standards of our people have been
gates for pressure groups to make
"He said the measure paved the
made possible by the spirit and raids"on the
Treasury. For'the
way
for a sales tax, /which he
initiative of free enterprise and
logical assumption is that if Fed¬
charged was 'anti-labor' and 'antibecause governmental costs have eral
spending creates purchasing
victory.'"
'j-r**; ,
.
not encroached upon the family
power, then why' place1 any re¬
Special advices July 29 from
budget. As a consequence of these straints on its flow. If this theory
the

which

require

computing

borrdwed

the first 140 years taxation of. all net incomes above
; During this pe¬
$25,000:/ The ^Associated Press re* arid

of the Republic.
riod

,

Nathan E; Cowan, speaking.. for

"The comparatively high living

conditions

in

from

,

small

.

"

of

of

gestion that ra withholding tax
States Treasury; ; '•
:.
could be simplified
,"2. Ability to pay.
by deducting
7".
;

ployment,' Mr. Davidson declared.!
•

hold- that

theory

the

<

mounting debt* This
gilded over by the proponents,
who hold 'that the payment of in?
terest does not represent a loss

war

contractors has also

by the United

in

.

on

Govern¬

ment advances to V-loans for

,

charges

the

plant facilities.

war

,

exist."

cease to

.

by

loan

for

"

would
bank further
years,

,

entailed

participation

utilized

•

,

burden

be

.

'f

«

10%

a

Government-secured

a

excess

*

occurred.

and

higher normal
rates, ;Mr,
Little
pointed out, banks are unwilling
and

were
not
interest* bearing,* Mr.
Little said.
/ '
/
•
profits tax merce" advices proposed that the
over
all our social and economic with a 10% post-war rebate but program be based on the
"Senator
George requested
following
activities, and self-government, as the House made the tax a flat 90% principles :•//;/;^\ •//",;//r • Treasury staff members who were
we
have .known
it
under .the without any rebate provision.
I, Raising at least the amount present at the hearing to make a
/
"
'A
American system for the past 150
special note of! Mr. Little's sug¬
90%; tax without adequate of revenue asked

with

Government

extension of bureaucratic

000,000,000 a year should go into duties to the nation, particularly
the proposed reserve.
the
eral policy, pour several billions
loopholes
oftax
exempt
Davidson told the Com¬ securities and -separate tax re¬
of dollars into -the economy!for T "Mr.
mittee that unless sufficient post¬ turns.1 :•
-V;;;:
public works and the like in order
f;j'.M;;";
war employment were provided to
"4.; Stiff taxes oh war profits
tinuing, the bank says:
* 1
to sustain business activity. While
bolster
purchasing ; power there and high incomes to a level' at
"The fallacy of this proposal in
theory
prodigious
spending
was likely to be a tremendous sur¬
least' of
that
proposed by
rests on' the assumption that this should, provide a powerful stirriu*
the
plus of agricultural products.;''
United States Treasury;
larit: and
country is a collectivist society or
generate
an, upward
"5. A limit of $25,000'. on1
one big
per*
family; that each shares movement, ; * unfortunately
it < is / "Mr. Davidson estimated ' that
sonal incomes, f
i:^r
>
' 1 »
from the common pool according counterbalanced by the fear of employment in the automobile in¬
"6. No sales tax of any kind." '
to his needs.
Idealistic as such a uncontrolled inflation and higher dustry,, which now works 1,500,000 '..* persons
on
war
contracts,
Roy Little of Providence, R. I.,
conception may appear in the ab¬ taxes. Thus while the Govern¬
would slump to the pre-war level President of Atlantic
Rayon Corp.,
stract, it does not work in prac¬ ment steps on the accelerator,
of 562,000
persons after
hostili¬ on July 29 urged a stiff increase
tice.
This system was tried by business puts on the brakes. Prof¬
ties.cease. Senator Brown, Demo¬ in levies on individuals.
He ad¬
the Plymouth Bay colonists more ligate spending casts the shadow
crat, of Michigan, challenged that vocated that a flat 50% tax on
than
300
years
ago,
when all of fear over the future but it mili¬
estimate,declaring he believed corporations be substituted for all
worked for a common storehouse. tates
against new undertakings
the post-war demand for automo¬ other
corporation taxes; to in¬
But actual famine stared them in and stifles the normal activity of
biles would keep employment at crease returns..from
the face as the colonists 'did not productive
individuals,
agencies.?. Moreover,
a high level.v *v
he suggested., a 10%,
5 e .*"
;*
labor' and 'paralysis was affecting relief expenditures beyond those
withholding
>;f'Observing that he did not be¬ tax on wages, a: 10% sales tax and
the settlement,'-so that the experi¬ necessary to alleviate distress, im¬
lieve
American
free
enterprise a 20% tax at the source on divid¬
ment was, abandoned.
Each fam¬ poverish the wealth-creating qual¬ would survive
another period of ends.
This was indicated in the
ily was then'giVen its dwn parcel ities of the population, discourage
mass
unemployment such as that Associated Press ,advices^ which
of land upon which to raise food, thrift, break down the? spirit- of
in 1930 to 1934, Mr*. Davidson de¬ said:
+,..>«f.rf»<"'j.v.t<;■)'-.(*• ■' ■.c! ■
hnd soon plenty followed. ; Where- enterprise and shift responsibility
clared:
•
*
r
\*
.U'X ,i
)
' ,*
1
Mr, Little complained ;;that a
ever the New England experience
from the individual and local com¬
'Unemployment > plus
demo- House-approved provision to force
has,been duplicated/the same re¬ munities to the Federal Govern¬
bilization1 may/.equal demoraliza¬ all companies to
pay taxes on a
sults
"Another important point over¬
looked or underestimated is the

^aibXtui' i/Ar'ifiMtiS&Iiui

purchase and
of
the

bill

of; smaller rehabilitation

by
'

excess

FSA."

-

-j-

programs

-

L

'

v:l*>h',u.

THE COMMERCIAL & FINANCIAL

462

agencies of the Government.
committee
believes that
there is need for more efficient
administration ahd more effective
and

Federal

Expenditures
Gut By Congress

The Joint Committee on Reduc¬

.

Federal Ex¬

tion of Non-essential

penditures, in presenting its report
to Congress on July 27, revealed
that Congress made reductions of

"The

if not all, of
permanent agencies

controls among many,
the

so-called

of the Government.

committee

"The

there is

believes

that

sinki

government

had

■,

CHRONICLE

sent4 in¬

which

would be

the

that

Committee

Joint

to continue its

investiga¬

tion and make further reports ex¬

tending the scope of its activities.
The following is from the com¬

this year.
such a

tures

planes
funds

1
v^T/;///// for 5,500 military planes and pro-'
legation said that 'about duction was more than doubled
a year ago, shortly after Commun¬
by June, 1940, when 602 planes
ist Russia's renewed attack upon were turned out. 5 In May, 1940,
Finland, the Finnish government President Roosevelt asked for 50,-

"The

ine closely

This, of course, takes into consid¬
eration revenue which is meeting
not more than 30% of expendi¬

transport

added:

Press

Arms

added

Extend U. S.-Russia Pact i

only 224 military

built.' Congress voted

were

000

our

]/' "One

Output Triples

That Of Last November
The over-all munitions

That was the begin¬
intensive war effort.

planes.

ning of

year ago, in; June, 1941,
plane production had more than
again—1,476. Production

doubled

since

produc¬

that

followed

has

time

ber,

month

last

the

which

totals

publication,}. 1,914
made.

planes
were
May plane production

In

nearly 4,000.
Heavy tactical
craft are now a larger proportion
of output than previously.
was

/"About three and
as

built
1942

a

half times

anti-aircraft guns were

many

the

in

in

as

first

all

of

six

of

months

1941.

Output,

however, must still be increased
greatly to overcome earlier lag¬
ging.,1'

•

"With

Tanks

fiscal

Federal

reduction of non-essential

has worked diligently in re¬

ducing non-essential expenditures
and in paring down budget rec¬
ommendations, Many members of
Congress,

individuals and as
committees,
have

as

members

of

contributions'.

invaluable

made

course, Congress
the final authority.

has been

And, of
/

possibilities

for

more

no

to the specific re¬
ductions, the committee said, ac¬
With respect

have

economies

On

than scratched.

the

War

cently

Production

revealed.

on

advices

Press

Washington

2,

August

on

Associated

said
from

July 31, which re¬

ported the extension of the agree¬
ment

// /

follows:

as

"Soviet Ambassador Maxim Litvinoff called

on

Secretary of State

Hull today to exchange notes ex¬

tending for another year the So-?
viet-American commercial agree¬
ment of 1937.

identical

"The

notes

provide

that the agreement,

which would
have expired August 2, shall re¬
main in force until August 6, 1943
and thereafter, unless

by

a

superseded
comprehensive com¬

more

mercial agreement.
/ "State

officials

Department

;

noted that while the character and

States

United

of

amount

trade;

with the Soviet Union during the

coming

year

would be governed

by military requirements'

/M://

tions, the exchange of notes as¬
sures continued recognition of the

tanks, light and " medium, than
during all of last year.
In May

principles/involved

more

than

/

act.

in; the/1937

//•;;;

-

.

|

.

principle of

"These include the

1,500 tanks were built.

most-favored-nation treatment in

:/;/:;// Merchant Ships

concerning

matters

all

customs,

/."Our shipyards during the first
six months of this year delivered

duties and other charges

133%;

trade."

more.

deadweight

tonnage

than

during all of 1941.
During
June 66 large merchant vessels
were
delivered, raising the total

malities

\

between
Russia and the United States has
pact

annually ?since

renewed

been

it

originally signed on Aug. 6,
1937 and was given in the Aug. 14,
1937 issue of the "Chronicle" on

was

page

••

aluminum,
and, other

on

commercial

The

;•//.-, v / Materials
//"Although the output of-steel,

Board,^ re¬

/////

imposed

and for¬
foreign

1030.

'

/

«

U. S.-Brazil Trade Pact
under which the

An agreement

magnesium,
copper
critical metals is in¬

In a special war production re¬
United
States
will
buy
major
port to the American people, as; to
cording to the Associated Press:
creasing, American war industries quantities of six Brazilian1 prod¬
how "the job of out-producing the
"Abolishing the CCC and pro¬
are
not getting all the materials ucts was announced in Associated
Axis" is getting on, Mr.'; Nelson
Press advices from Rio de Janeiro
viding for its , final -liquidation
they need, f Shutting- off these
said that in the first six months
metals from less essential civilian on Aug. l.v These advices said: //
produced a net saving of $238,of
1942
the
volume
of muni¬
-VU.
S. : Ambasador " Jefferson
960,000.
V.
/
goods has helped ease the prob¬
"Abolition
of all
non-defense tions was one-and-a-half times as lem of supply, and it has been Caffery estimated producers
in
///V./' possible in some types of war pro¬ the South / American' republic
functions Of the National AYouth great as all of 1941.
While declaring thai "produc¬ duction to use alternates—plastics
Administration
saved
another
would receive $32,490,000 in the
,

.

,

"The committee realizes that the

been

expenditures,"

.

of
expired

"During the first six months of
this year
we
built many more
;

-

reau

the
commercial
1937 which would

year

agreement
have

Russia

States, and

agreed to extend for

31

another

rather than commercial considera¬

need

the

view,

United

July

/-T/ //■// A./'//'-' largely

.

tion of the United States, includ¬
future in
ing planes, ships, tanks, guns, am¬ up to July 1 to 228, compared with
for every pos¬ munition and all campaign equip¬ 103 vessels in all of 1941. Dead¬
"Of course the committee does
sible economy in non-essentials is
ment, in June was almost triple weight tonnage delivered during
not claim sole credit for these re¬
urgent. Therefore, the committee the
production of last November, the first six months of 1942 totaled
ductions.
Some of the agencies
contemplates a vigorous continua¬
the month before Pearl Harbor, approximately 2,544,000.
•
/;
themselves co-operated in bring¬
tion of all phases of its work for
Donald M. Nelson, Chairman of
ing them about. The Budget Bu¬
•

mittee's report:

The
on

for

released

were

a

In Septem¬
of 1941 in

strong upward trend.

...

intends

1^39;

commercial

and

The Associated

end of the month.

Airplanes

_

/ "In June;

done before the

growing need to exam¬
the activities, practices, by a circular note dated July 17,
$1,313,983,208 in the 15 specified and expenditures of the so-called
1941, and addressed to all the for¬
items which the group regarded defense and war
agencies.
It is- eign missions in Helsinki, intro¬
as not absolutely essential during
to be hoped that these agencies duced
centralizing rules to the
the war period.
This total was are approaching, at least, a leveleffect that for the duration of the
more than the committee had rec¬
ing-off stage where efficiency and war communications between for¬
ommended in its preliminary re¬
vigilance over practices properly eign consular officials and Finnish
port to the President and Congress may be demanded without* inter¬ authorities had to
go through the
last December.
At that time the ference with the maximum war
Ministry of Foreign Affairs. Con¬
group
called for reducing ex-, effort. Heretofore, the committee
sequently this measure - did not
penditures in 1943 fiscal year ap¬ has hesitated to call up these soprevent the activities of foreign
propriation bills by $1,301,075,000, called war and defense agencies
consuls; it merely directed them
Cash savings on 1943 appropria¬
for minute examination because to act
through the ministry in the
tions were set at $1,183,983,208,
they were in the course of organi¬ same way as diplomatic represen¬
and loan authorizations were re¬
zation and because of the impera¬ tatives.
The rule applied to all
duced by $130,000,000.
The com¬ tive nature of the business of most
countries and consular represen¬
mittee had
urged reductions of of them. However, it seems to be
tatives alike and has since been
$1,131,075,000 and $170,000,000, re¬ more and more evident that the observed as far as the American
spectively.
time is approaching for the com¬ Consular officials are concerned
In submitting the report to the
mittee to change this policy.
as in other similar cases.
No ob¬
Senate, Senator Byrd (Dem., Va.),'
"With the national debt stand¬
jections against the rule were
Chairman of the Joint Committee,
ing today at approximately $80,- raised from any quarter at the
asserted that the group "desires to
000,000,000,
with
it
increasing time of its issuance or later.'////
emphasize that there is a great every day at a tremendous rate
The
United
States
requested
field
still remaining
for econ¬ necessitated by the war and auguthat
the Finnish consulates
be
omies, both in non-military and mented still further by other ex¬
closed by Aug. 1; reported in these
so-called non-essential disburse¬
penditures, and with unexpended columns
July 23, page 275.
ments, as well as the opportunity war balances totaling $160,000,',
-mmmm——
— /
to institute methods of greater ef¬
000,000 there is in prospect a na¬
ficiency
and
economy
in
the tional debt of at least $200,000,strictly war expenditures."
He 000,000 by conservative estimates.
a

vm,,

structions ta, close the consulates,

Thursday, August 6, 1942

^

4

wood
for
$83,767,000.
Items totaling $195,- tion is going well on the whole," and
metals,
ferrous first year.-///
731,208 were lopped off the De¬ the WPB chairman warned that metal / for / scarce
non-ferrous '/"The products listed were coti
partment of Agriculture appro-] "too much boasting about produc¬ metals.
ton linters and hull fibres, castor
priation, the farm tenant program tion progress is altogether prema¬
beans and oil, babassu oil and ker¬
;.;///// /;/;;y.c°st I/.
The biggest part of the job
fund was cut by $2,270,000 and the ture.
/ "All
this
program
has
cost nels, burlap, ipecac and rotenone.
Serious raw ma¬
appropriation for administrative is still ahead.
money
in volume never before
"The agreements, reached late
expenses
of the Farm Security terial shortages are looming up
expended.
As of the end of June,
yesterday, were announced in a
Administration by $26,180,000.
ahead; many bottlenecks are be¬
the authorized United States fi¬
"Appropriations
for
Federal ing broken, but some new ones nanced program for war spending statement issued by Ambassador f
Caffery as he left with commer¬
'
'
highway projects were $50,300,000 are forming."
reached approximately $170,000,cial attache Walter J. Donnelly;
below last year, and non-defense
In his preface to the report, Mr;
000,000—just about double na¬ for a two-week
trip to the. United
building construction was down Nelson further said:'*■/''' tional income in 1929.
On June
States.
/:
$33,148,000. ://?V'T/v;//TT///
"Government"fis working;;hard 30, bills pending in Congress, or
"A
total
of
/ "Terms announced were:
•,
$56,985,000
was at these
problems, yet the country passed and unsigned by the Presi¬
saved on public works projects must not
"Babassu—Four year agreement
get the impression that dent, brought the total financial
under supervision of the Interior
for
the battle; of production, is won program to about $223,000,000,000
purchase
of
an
unlimited
Department.
and that we can now stand
at Contracts and other commitments quantity of the nuts and oil dur¬
"However, where the committee ease. The battle will not be won for
about
$118,000,000,000
had ing the first two years and up to
had recommended saving $27,835,until the war is over and any 1 been made between June, 1940, 300.000 metric tons during each
000 by deferring river and harbor
let-up in the feeling of urgency and the end of May, 1942.
As. of of the next two years.
and flood control improvements,
for faster, better production would the end of June, $35,000,000,000
"Castor—The U. S. will pur¬
Congress voted $43,358,000 more mean years more of war and hun-. had been paid out for goods de¬
chase a mininmum of 200,000 long/
-

the

basis

studies

of

being made,

it is apparent that further reduc¬
tions should be made in Federal

spending," the report said. ."Al¬
though
the
committee
.recom¬
in its

mended

that

preliminary report

could be
I saved, it has since determined that
there are many other necessary
$1,000,000,000

over

savings that can be effected with^
out any interference with the war
normal times the
by the com¬

In

program.

amount recommended

:

,f

,

mittee would be considered
stantial

a

sub¬

saving,

but due to the
expenditures it is
that
the
committee

tremendous

war

imperative

continue its efforts to reduce

non¬

essential Federal

spending.
the committee

"Meanwhile,
is
pleased with the fact that for the
first time in years a
been

for

made

essential

beginning has
in non¬

economy

Federal

spending.
The
committee regards as a privilege
its authority to study the problem
and

call

least

at

reduction

some

possibilities to the attention of the
public,

the

executive

Congress
of

branch

the

and

the

ment.

:

"The committee notes

Govern¬

/'/
especially

the

abolition

the

Civilian. Conservation'Corps.

This

was

by the Congress

recommended

by

of
the

committee, and it makes the first
complete dismantling of a major
depression agency. The CCC had
spent $2 278,000,000 in 8V2 years.
This indicates a step toward a
prudent

more

able to

a

fiscal

committee

"The
there is

a

ficient

operation

great
ment

policy

suit¬

nation at war.

that

great, field for more ef¬

economy

among

probably
Govern¬

corporations.

"Likewise, the committee in¬
tends to examine, further, prac¬
tices and conditions in

purchasing,

classification, salaries, transporta¬
tion, publicity and other overhead
items of the various departments




dreds of thousand

"In addition to the

savings spe¬

Mr.

indicated,"
the report
part:
said, "other substantial sums will
"In
be saved during the
1943 fiscal

cifically

more

lives."

/

.

the'

livered

months

services rendered.

of

tons

beans

oil

the

or

equiv¬

the rate of expendi¬
ture had climbed to $158,600,000 a

during the fiscal year 194243,/////;///////;//^///"/// //. /; //

since

day paid out by the Treasury and

"Cotton linters—The U. S. will,

./

;

seven

and

in

Nelson's report follows;

"In

June

alent

Pearl

Harbor, munitions produc¬ the Reconstruction Finance Cor¬ buy up to 50,000 metric tons of
tion has increased almost three
second-cut linters, up to 8,000 tons
the 10%
poration. In November, 1941, the
first-cut linters and up to 10,000
propriations made in some of the times./In the first six months of month
before
Pearl/Harbor,
1942; the volume of munitions was
tons hull fibre between Aug. 1 this
Supply bills." '
/// //
V V
one and a half times
as great as spending - had
been only about year and July 31, 1943.
/zTA/VThe Joint Committee's prelim¬
during all 12 months of 1941.
' two-fifths that rate—$67,000,000 a / "Burlap—The U. S. will buy by
inary report recommending re¬
:
"Using November; 1941,* as the day. '■
ductions was referred to in these
*
Dec..; 31, 1943, up to 50,000,000
base month and rating it 100, the
columns Jan. 8, 1942, page 112.
"This tremendous building up yards of burlap made in Brazil;
index for over-all munitions out¬
the second year of the '
of the. military establishment has during
put in June (preliminary)" was
Finn Consulates To Close 286. The index covers production mearit that-a larger and larger agreement, Caffery said, 'it is an-;

vear.

those resulting from
reductions in travel ap¬

such

as

The Finnish

of planes, ■ ships, tanks, guns and
that the ammunition,
and all; campaign
Helsinki government, in a note equipment.
'
/ ' "
to the United States concerning
"The index series begins with

ington

said

on

Legation at Wash¬
July

latter's

request for the clos¬

ticipated

proportion of the national product

25

■

the

believes

and

than last year.

v

has been devoted to war/ In

1

only 2%
went

into

of the

United

national income

military

channels./

In

23 for July, 1940. By DecemberConsulates in one year before Pearl Harbor- 1940 this had risen to 4%—14%
this country, had expressed "as¬
production, as measured by The during 1941—about 36% in the
tonishment"
that
this
country index, had advanced to 50, more
first half of this year.
"should without customary previ¬ than double July volume; It took
"Military
expenditures,
how¬
ous exchange of views bring about
another-eleven months for output
a
step
as
far-reaching as the to advance to 100 in November, ever, have forced a steadily rising

v

The

of

consular

relations."

legation's statement, ac¬
to the Associated Press,
added, however, that in compli¬
ance
with the request the Hel¬
cording

1941.

After-that, production ex¬

panded at a rapid rate—up to
nearly 200 in March, sharply up¬

and somewhat less
sharply in May and June.

ward in April

a

four-year

at favorable

prices

pounds annually
which
-

is used in

"Ipecac

—

up

to 4,000,000

of this product,
insecticides.

During the next

/

18

1940;

British government will buy up to

in

$77,300,000,000

in

$94,700,000,000 in 1941; this year
will exceed

;V|

States.'

/'Rotenone—During

months the United States and the

income:

it

be sold to the 1

$70,800,000,000

national

1939;

100,000,000

as

may

period the United States will buy

ing of all Finnish

cessation

as-much

yards of burlap

1939

$110,000,000,000."

150

metric tons

herb."

/

,

of this medicinal

/

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4096

Volume 156

at the mash seizures dropped more than
special 20%, and arrests more than 22%.
r
agents, at the rate of $4.541875 per
"Special agents of the Intelli¬
$o2.50 coupon, in full satisfaction, gence Unit of the Bureau of In¬
according to the notice to bond¬ ternal Revenue obtained indict¬

'coupons beginning Aug.

Bar NLRB From Plants

New

With Secret War Work
A

engaged

company

in

secret

York

offices

1

463

individuals instead of to the

WPB, Military Board
Align Priority Power

of; the

mercial banks.'

access

to

a

to its

ruling

for

at

future

decree.

adjustment under the for evasion of income

"This

is

payment

being

made

in accordance with the provisions

fied March

additional*

8, 1940 by Decree Law
"

'

Inlaw Enforcement

defendants

were

"the

ciation of Machinists

(AFL).

'/"Judge Davidson also ruled that
deny access to
its plants to solicitors for any pur¬
pose, either organization or otherWise and that the defendants may
not either by persuasion or. threats
cause an employe engaged in the
service of a war plant to- leave
that service to engage in the serv¬
ice of another war plant.
"

■

the enemies of the United Nations,and at the same time have occu¬

pied the front lines of defense at

the company could

and

taxes

their; staffs
speeding

penalties

up

inating any possible duplication
dealing with War production.
vestigated. Miscellaneous charges
It
is /announced
that the new
involved 49 other individuals."
alignment was worked out by the
:
7— ///
Army and Navy Munitions Board,
Mr. Nelson and J. S. Knowlson,
Vice-Chairman on Program De¬
termination of WPB, at a confer¬
ence
attended also
by Lt.-Gen.
Brehon
Somervell, Commanding
J iPrice Administrator Leon Hen¬ General, Service of Supply, U. S.
derson .said on July 25 that cost^
Army, and Rear-Admiral S. M.
of-living figures for the May 15Robinson, Director of * Material
June ; 15- period, ; the : first
full and
Procurement,.U. S. Navy. The
month7 of operations: under the announcement continued:
recommended

were

in

and it may be necessary for
higher court to, pass on this

a

nome,

Elmer L. Irey, coordinator

of the «investigative

rected into such lines as bringing
hidden, Axis-owned fortunes un¬

ary

tendency."

passage of suspected enemy agents
and of strategic materials and in¬
formation

that

might

fall

.

into

"The

v

"Functions of censorship, super¬
vision of enemy aliens and prop¬

;

and

"The

priority needs of the military

speak for them¬ tractors, subject to the directives
speak a language all of the WPB. A plan for the rigid

understand!,

control of all

part of the cost-of-living

index subject to control declined.

The

part not
advanced.,.',
'

sub j ect
7

-

\ /

to

control

*

*>"

"The foods and the other goods

erty/ and protection of port facili¬ steady or declined.
ties, public officials, and impor¬ : "The foods not subject to OP A
) "The company contended that
tant- visitors, have bPen carried controls
showed
sharp, and in
to lay bare its books and contracts
out by Treasury officers in co- some /cases
inflationary,
price
to inspection by NLRB would be
peration with other Government rises."
:/
Jviolative of its contracts with the
agencies."'
'
* *
r - Citing some
examples, the Price
Government.f *^
<
)
With respect to the activities of Administrator
'
declared; ■' "
•
^"Judge Pavidson held that these various agencies, the Treasury's
Army
and Navy contracts re¬ announcement further said:
>;"The price^oLuncontrolled lamb,
t
stricted
the
for example, went up more than
company
from .di¬
"With the Secret Service cam¬
.

about them,
and that it was within its rights in
withholding
such
information

paign of education making the
passing of 'funny money' increas¬

ingly hazardous, the loss to vic¬
the NLRB unless there was
tims of counterfeit bills during
specific authority from the Army 1942 fiscal year dropped to a new.
and Navy permitting inspection,
ow •; of
$47,882, compared l with
i- "Judge Davidson instructed L.
$91,000 the previous year.
•*/,
N. D. Wells, Jr., attorney for the
"The low figure is 93% less than
NLRB, and Richard Simon, Fort
he 1933-36 average prior to the
Worth attorney representing the
•nauguration of the Crime Pre¬
company, to prepare the judgment
vention
campaign.
The Secret
which will be signed in court to¬ Service
/Know Tour ??Money! 'film
morrow.
Joseph A. Padway, who was shown to some 7,500,000 per¬
from

•

letters

to

the

company

anti-unionism
Clifford
tion

was

censorship

munications

and that later Mr.

information /-outside

pursuant

plant

-

Act."

the

to

the

Wagner

>■

-

To Pay Rio de Janeiro 6V2&
j: City of Rio de Janeiro (Fed¬
eral
of

District of the United States

Brazil)

has remitted funds to

Co J arid

Brown
Brothers Harriman & Co., special
agents, for its 6V2% external sink¬
ing fund bonds due Feb. 1, 1953,
for payment of the Feb. 1, 1940
interest
coupons
at the rate of
White,-Weld

13.975%
amount.
we

dollar
face
From the announcement
of

their

l

also quote:

■

Customs i

:/%,/;.

men

.

enforced

regulations on y com-moving outside the
mails, to prevent passage through
fhe ports and borders of informa¬

denied any informa¬

\ "Judge Davidson, in his opinion
gave the NLRB full authority to
collect

food to city families advanced by

"The

entrance to the plant.

or

in/convictions.

carrots up 4% %,
•
(
.
i
"Solely; due to these and other
similar increases, the total cost of

sulted

regarding a discussion of reported

than

not.
pro¬

Little

recent

Steel

/•';?.
of

*

commodity
board, with administrators!
a

Gradually

food,

the

adapt

as

price

/

control measures to the stabiliza¬

tion theory instead of the

ceiling

theory, and eliminate price fixing
all minor items which have

on

substantial

living." -

j

effect

the

on

cost

no

of

>

-

"Senator Byrd, who spoke before '
Taft, declared according to

Mr.
the

advices that

same

evident that
flation

has

"it

is very,

fight against in¬

our

reached

critical

a

phase. /The price control bill did_
not provide for the stabilization'
of

wages," Byrd said.

control

"No price

be effective which eli-'

can

minates the

largest single element

Report 360% Rise In
Naval

Under

priorities and

'priority

a

sys-

accounting,'

consideration.

is

>

;

Shipbuilding

/The House Naval Affairs Com-1'

mittee,
of

in a progress summation/,
Navy's construction pro¬

the

gram, reports a 360% increase in
naval
ship construction over a
year

air

and development of

ago

"In order to eliminate duplica¬
tion and clear decisions promptly

United

the ANMB has agreed to designate

offensive force

■

i

vices

with

the

concurrence

of

;

"which

arm

The

States

will

with
in

committee

industry

can

WPB to work with the appropri¬
ate
WPB / committees,
divisions,

down

branches

the

was

strongest

naval

said

an

provide the*

history."!

that

Ameri-; ■
sending vessels /'
far sooner than,

was

and

sections.

This

will

the

expected

ways

and

that. its

ingenuity'

turning out "improved models
all types" of planes.
/;•./.

i;

particular/importance in of
strengthening the materials and /. The following relating to the^
industry branches of WPB, where report was contained in Asso¬

be

of

the miltary representatives will
parallel the representatives of the

ciated
of

Press

July

Washington; advices

23:

/

,

indirect

T;(

,

.

L3%

out war

production at

a

maximum

rate.
1

"The definition of functions thus

jointly announced shows in what
WPB and ANMB are
complementary agencies working
together
in
close
association,
rather
than rival
organizations
bperating in the same area as
competitors.
Thus,
while
the
ANMB discharges certain duties
defined by agreement between the
Army and the Navy, it discharges
other duties on delegation from,
the

ways

and request

by, the WPB, and re¬
ports to the President through the

between'May 15 and June
continuing, the steady upward Chairman of the WPB."
tion valuable to the enemy. ?'/ price trends of the previous four¬
"The strict control of merchant teen months?; and offsetting the
shipping necessitated by the- war benefits of price control in all
greatly increased the enforcement other' foodstuffs covered by the iTaft & Byrd Propose
responsibilities of the Customs re¬ gerieraL regulation.
Plan To Curb Inflation
nting to movement of vessels in : /"And this is not all.- These un¬
! / According
to
the
Associated
United States ports. ; - controlled food price rises were
" 5 '7°
Press accounts from -Washington.
/ "Seizures
of : all
kinds
of principally responsible for a frac¬
smuggled
commodities 'totalled tional increase in the cost-of-liv¬ July 30, Senator. Robert A. Taft
(R., Ohio) suggested a five-point
9.200 dring the fiscal year. There ing/index as a whole."
/
: ?
were
3,100 seizures tof smuggled fr: Mr. Henderson added that the program to the Senate on that day
to ward off inflation, and Senator
liquor. ? Both these items were ^reductions in rents that have re¬
larger than in the previous year. sulted from OPA regulation in the Harry F. Byrd (D., Va.) urged
Narcotics seizures dropped to 600, cities included in the Department over-all control of prices, includ¬
products
and
from 789 in the 1941 fiscal period. of Labor studies are remarkable. ing /agricultural
The program of Senator
"The number of stills seized (by They mean real, hard cash saved wages.
15,

combatant and auxiliary ships and.'
patrol and mine craft, were build-;

ing

of June 30,

as

pared
a

with

697

breakdown

program for

ing

the

1942,

a

com-/

as

year

of

In;

ago.

the

scheduled/
ship completion dur¬

fiscal

year

committee said

of

1941

the

that 60 combatant

vessels
as

were
actually completed/
compared with 48 expected.

/ Ten auxiliaries

were completed:
compared with nine predicted,
143 patrol craft as compared -

as

and

with

133.

mine

and

of

Only construction of),
district craft fell short-

the

goal, with 280 completed?
compared with a schedule of >

as

394.

?

„

-

:

•

*

.

'

'

•

.

/ So

sharp has been the speed-up I
in ship construction that the time //
for

completing

battleship had'
Z

a

been cut from the pre-emergency

of

average

42

months

to

36

months; aircraft carriers from 45/

,

months

to

cruisers

from

17.3

.

officers

Unit)'

of

was

the

Alcoholic

11,369,

about 4%. from the

a

Tax

decrease

previous

of

year.

for

millions

Labor

of

tenants."

Department's

living; costs

issued

release

July

24

The
on

was

Taft, it

was

stated

Press advices in

in Associated

the Philadelphia

"Inquirer" called for:

cruisers, 38.8
27.2
to

to

to

to

22.3;

heavy;

22.7;

light,

destroyers,

■

11.6/and submarines, 21.2 ?

H.5.

The ;

months;

36.4

;

,

report

presented

table

giving

the number

craft

of

types

all

added

also
of
to

a

air-v

the

service in five years. In 1938 there

were 729; in 1939, 270;
1940, 328;
I "Bondholders will receive pay¬ However, operations.- were on a given in these columns July 30, > "1. Sale of Treasury bonds 'al¬
most entirely to corporations and 1941, 2,067, and in 1942, 4,895.
ment upon presentation of their much smaller scale per still, and page 362.
-




,

'of cost." /

military, essential civil¬
The
report
declared that the
10% between the middle of May ian, foreign and maritime
require¬
Midway Island and Coral Sea en-,
and the middle of June, a much
ments.,/ This js one phase of Mr/
gagements
"demonstrated
that!
larger increase than has occurred Nelson's plan to increase the ef¬
aviation constitutes the determin-:
in any similar period over the last fectiveness of the material and
Jrig factor in such conflicts."
20 years. Roasting chickens, which
industry branches.:
1
j It also said that the Navy, "withj
usually decline in price at this
;
"Another step in the same di¬
full realization of the
time of year, went up nearly 9%.
efficiency of.
rection now being taken is the; irimultiengine land planes for pa- /
crease
in the importance of the
j "The price of controlled beef,
trols in certain areas," was using!
Industry
Advisory
Committees them for
yeal, arid pork, declined,
antisubmarine warfare f
i
"The price of apples, uncon¬ which are attached to each branch.
"with outstanding
success," and',
trolled, rose 25% in this single These committees will be made up
added
that
the
first
of
those!
month and this important fruit is of
representative
industrialists.
squadrons "accounted for not less
now selling at prices
more than They will advise the branch heads
than five; Axis submarines.''
50%
above
those charged
last on the production problems of
/ The report said that 3,230 naval
March;
;
their industry and will take a
(; "The price of bananas, which is
in the
classifications
of?
major responsibility for getting ships,

represented the Machinists Union sons during the year, and its study
and who is general counsel for the material
was
incorporated/ in
AFL, said the court's ruling had numerous school- textbooks and
rib effect on labor program of ac¬ other publications.
/ f
(- Controlled, declined 12 Vz %
tivities.
'
"The Secret Service made 1,886 i" "Canned
fruit
and
vegetable
; "The NLRB offered no rebuttal irrests during the latest1 fiscal prices under OPA ceilings either
to testimony but moved for; dis¬ year, of which 118 were for mak¬ remained steady or declined.
missal on the ground there was ing or passing -counterfeit bills, I "Grapefruit juice, not controlled,
nothing before the court. to act 200 for making or passing coun¬ rose more than 4%
and- fresh
upon.
Mr. Wells said the Board terfeit coins, ;4vlTl,for/forging grapefruit went up 21%.
had issued no complaint against Government
checks, and 397 for i "Here is the price picture on
the company, but that Dr. Erwin Other offenses.
The previous year other uncontrolled items: Oranges,
A. Elliott, regional administrator saw 2,949 arrests.
Nearly 98% of Up 15%; potatoes and sweet pota¬
who sat through the trial, had cases tried during the year re¬ toes, up 9%; cabbage up 15%, and
written

•jtem-j of

Under; price ceilings either- stayed representatives of the Armed Ser¬

contractors.

information

the

a pro¬

should

more

Creation

"5.

:

continues

figures

of Jus can

Board

-

•

selves—and

/

for each industry, such
rubber, steel and oil.

"Under

ANMB

price

is the 'advocate' for the allocation

-

'

.

vulging

"4.

Show Inflation Trend

rents, where

in

control

Rampant Food Prices

controls of prices and

J

farm

salaries, with

the

wages

decision.

..

the.arrangement the
as -the
primary
they are in effect, are."doing a military body for .reconciling and
good job of holding down prices? presenting to. the WPB the Army
ing this said:
and
Navy supply requirements.
"Energies of the highly trained but that uncontrolled food prices
Acting in this capacity the ANMB
Treasury officers have been di¬ are "showing a definite inflation¬

Secretary Morgenthau on
in a 1942 fiscal year review.
The
Treasury Department in indicat¬

,

right it would be subordinated to
military secrets entrusted to war

vided

•

told General1 Maximum Price Regula¬
that : government
Aug. 1 tion, -showed

that

increase

in¬

cases

groups,

question.'
/ Axis
hands; and the combatting of
;; / "The opinion held that by law,
smuggling,
nar¬
the NLRB had a right to go into counterfeiting,
tlie affairs of a corporation with cotics, alcohol and income tax vio¬
lations directly or indirectly men¬
respect to its treatment of labor,
acing the war effort.
'/ * 4
but that in the exercise of that
.

vision

for -the purpose ol
the work and elim¬

Coimmenting 'on the cost-of- program.
The ANMB will con¬
der Treasury control to prevent
Iiving. report issued by the De- tinued to exercise the; responsi¬
V,"/Thecourt realizes,' the Judge
their use for• subversive purbdsesi:
parttnent of Labor, Mr. Henderson
said in his opinion,r 'that' it has
bility for granting priorities to the
closing of the borders to outward said;
;V.//';/////
gone further than any court has
Military Services and their con¬
gone

of wages and

relations

assessed in addition to prison
sentences.:: Nearly $38,000,000 in

..

'

Eber-

in

Treasury Agents Active

as

Ferdinand

ment of the operations and inter¬
of the two boards and

tained, and fines totalling $135,000

2085.

and

113

were

'•/•.«V),■ V, v4 •''*
with respect, to War and ■j{!'•'.<:%•;5
Navy -Department* contracts pf a
highly secret nature and a request
of NLRB agent Ralph Clifford to
seek- information
regarding the
plant. From the Associated Press
Treasury Law Enforcement
Dallas advices' July 29, we also
take the following regarding the agencies have been mobilized into
a
many-sided -offensive against
ruling: •
* • v
4 :v-

"Named

Forrestal

other

saw

5, 1934, of the United States
of Brazil, as re-enacted and modi¬

rights

y

and

also

year

Feb.

Worth,-which had asked a
declaratory judgment of it? legal

NLRB and the International Asso¬

The

of Presidential Decree 23829 dated

Fort

;

:

the

tor Joseph H. Ball
(R., Minn.) to
give the War Labor Board control

stadt, who constitute the Army
and Navy Munitions
Board, an¬
prosecutions in this category, of
which 111 convictions were Ob¬ nounced on July 29 the realign¬

taxes.

•/

of

"3. Adoption of a bill by Sena¬

holders.

plant,
Dallas,
Texas,, on July 29, by Federal
Judge T. Whitfield Davidson. The
decision, said the Associated Press
accounts, from Dallas, was. handed
down in an action brought by. the
American Manufacturing
Co. of
agent

according

Revision

floor to 100% of parity.

Unpaid coupons matur¬ ment Of 113 individuals, including | Donald M. Nelson, Chairman of
war production is within its rights
the War Production Board, and
ing Aug, 1, 1931 to Feb. 1, 1934 prominent business and profes¬
in denying a National Labor Re¬
Robert
P.
Patterson, James V.
must remain attached to the bonds sional men as well as
racketeers,

flations

"2.

•

com¬

'

.

THE COMMERCIAL & FINANCIAL CHRONICLE

464

Uphold Right To Atlach
Gold In Rumania Bank
removed

Rumania,

Bank

National

the

in

Gold

of

Poland

from

invading
in the fall of 1939, may be

Nazis

attached

American corpo¬

by an

Court of

York

New

the

ration,

of

advance

in

hours

Appeals ruled at Albany, N. Y.,
on July 29,
according to the As¬
sociated Press accounts from Al¬
bany which said:
"By unanimous vote, the

State's

highest tribunal granted the ap¬
peal of Polish Relief Ltd. for en¬
forcement of an attachment writ

National

in

$4,000,000

against

Bank of Rumania funds on

the first half
of this year the with the United Kingdom in third
Exports to Latin America
Agricultural Marketing Adminis¬ place.
from about 7%
in 1939 to
tration / bought
over ,825,000,000 rose
pounds of pork, nearly all of it 15% in 1941, while those to Con/
for lend-lease.
We bought some tinental
Europe
declined
from
beef

nearly

to

spend

before"

ever

deposit

in

banks

City

Appellate

The

County.

affirmed the writ Dec. 8,

"In

for

and

ket," Mr. Wickard said, "we will
have
a
fourth more hogs than
before, and a large number

ever

of

cattle, too/ But until the time

Kings

total sup¬

This will not make the

Division ply

larger, but it will keep
some processors in business and in
readiness to help handle this fall's
record slaughter." *■
4

1941."

any

.

,

War Time Demand For

'V The
gram

Meat Gaiises Shortage
In

radio talk

a

Secretary's 3-point pro¬
to relieve the meat shortage

referred

was

issue,

page

in

to

367.

30

July

our

/v-.'-j'

July 31, dis¬

on

showed

'/

:

Wickard, Secretary of Agricul¬

R.

of 1942, reflecting / in¬
creased purchases from Brazil.
"Brazil's
mineral
production

ture, stated in summing up:, "We
don't have a meat famine or any¬

thing
the
on

like

one,

at least for

but

will be
shorter meat rations than we

have

months

two

next

we

"But,"

recently."

been

he

added, "we do have enough meat
and other protein foods to keep
American
families
well
nour¬
ished."

"By

the

ing to

post-war

character

period,

accord¬

the Division of Industrial
of
the
Conference

Board.

civilian meat supplies.

use our

to

fundamental

Economics

things will be easier, but we still
will have to be careful in the way
we

that
their effects should extend far in¬

such

September

of

end

the

being established between the
United States and Brazil are of

continued:

Wickard

Mr.

/The military and economic ties
now

2

*:

technical missions have

numerous

been

this on Aug.
pointed out that

In indicating

Board

the

the United States

sent from

starting next October to Brazil to aid in the prompt de¬
meat
production will be even velopment of the output of im¬
larger than for this year—maybe portant materials, including rub¬
10 or 15% larger. But Army and ber and many minerals—and, also
lend-lease needs will be increas¬ equally important, to aid in the
ing too. The chances are that the development of the transportation
Planned
civilian supply of meats will not facilities to carry them.

In the year

be

large as it was in a plenti¬
like 1941. On the other

so

ful

year

hand, unless there is a great in¬
crease in demand, I think we can

-average

years-—1938,

recent

example.

,

"As long

likely

that

home

/:

,

.

/

for

tinues:

the

■;

nomic

/'!

V

known

/'

of the

rapid

molybdenum,beryl¬
titanium, nickel, * tungsten,

zirconium,

lium,
lead, copper, zinc, mercury; asbes¬

development which is now

this war lasts, it. is extent, be of a permanent charthose of us on the acter.Cut off from usual European
will

run

into

tight

finished

goods, Brazil, aided * by
the United States, is diversifying
her agriculture and rapidly cre¬

However, from all present ating industries to supply many
needs.
She
should
indications, the total food supply domestic
will be ample.
Our boys in the emerge from the war period with
better* balanced
economy,
armed forces are the best fed in a
the world.
You and I, producer stronger industrially and less de¬
upon
foreign countries
and consumer, are going to make pendent
both as a buyer and supplier.
any sacrifices necessary to keep
,

fed of all."
Earlier in his broadcast during

"The

Brazil's

United
best

States

customer

has
for

been
over

and Home half a century. In 1939, this coun¬
Hour on July 31. Secretary Wick¬ try took more than 36% of Brazil's
ard said that "the great wartime exports and in 1941 almost 57%.
demand for meat is the main rea¬ For the years immediately pre¬
son
for the local tight spots in ceding World War II, Germany
1he

National

supply."

Farm

He added that -"during




was

Division

Services

Trade

and

OPA

has

of

and written his ap¬
proval.
In his letter Dr. Fainsod
said the Office of Price Adminis¬
tration

Brazil's second best customer,.

the

President

United States

the

of

approved the Com¬

mittee's original statement of pol-;
icy he contrasted Hitler's method

with the observa¬
"nothing short of 100%

agrees

that

report, the group said:

"When

telegraphed

tion

eliminated.

In its

of invasion and conquest with the*
North American method of

compliance by retailers, large and

co-or¬

dination

through democratic
and friendly consent.

proc¬

small, in all lines, will achieve esses
The1
the objective of our price control
Committee is confident that these:
program, and help us avoid the
processes of friendly cooperationperils of inflation."
Dr. Fainsod have in
only a few months yielded'
said: • '-1- ; •
'. 1 results
impossible in Hitler's Eu-';
"On our part, we wish to report rope, although much progress is
that we are preparing
new /in¬ still to be made." V/.;//Jf
formative

material

such

as

sim¬

plified digests of Regulations and
a
series of complete guides for
various kinds of stores."

1

:

(The

v

to

above

issue of Jan.

policy' re-'

of

statement

ferred

appeared

our:

in

1, 1942, page 320;

'•

I

and
us

feel

confident

will

achieve that full

to

•

compliance which is
preserve

under

our

enable

degree of

essential to

national

economy

conditions."

wartime

"The

report

said, arrangements;

have been made for
on

the

States

United

"In

~

States

of

expense :

produce

to

chemical

on

an¬

instance,- Canada,

the

expansion

and

Cangdai^//"^. V?/w"i;

another

.saved

was

concentration!

type of airplane propeller

one

in

other type in

graphite, .mica, coal, magne- | Pointing out that these price
site, platinum, gold, quartz^ crys^ regulations* are in no way a re¬
tals, t diamonds < (both clear and flection on retailers, , the Associa¬
black), and a variety of precious tion has stressed, in recent special
stones. We are importing many of bulletins to member stores and re¬
secretaries
these minerals for war production tail
throughout the
purposes, the more important be¬ country that "they spring from a
ing
manganese,
industrial dia¬ recognition that the circumstances

the

because

plant

critical:
Unite d>

a
.

able to contribute ade-V

was;

-

quate /supplies

plants.

from

.its

.

own;

'■:; i.,/:///>::///?/;

..

"Canada shipped 500,000 each of
monds,, quartz crystals, mica and of our war effort have had a pro¬
shell bodies, fuses and tracers for*
iron ore.
' > **
*
«.
fv foundly disturbing influence/on
a
certain
type of gun to the';
"Brazil's
industrial
expansion our normal economy, and that
United
States
during -a period 4
dates from the time of World War retailers, and all business, are up
when Canadian supply was run-/
I.
Industrial
output more / than against .forces * which /they can¬
doubled between 1914/and 1918 not control and which, left com¬ ning ahead of schedule. The shells'
.

.

from

pletely unshackled, would lead to

1,400,000 contos to 3,000,000 con-

the great disaster of a huge infla¬
tion." It is so obviously in the in¬

when

in

increased

it

value

//J{;;*;''a.'-■ 1 ■:.VJ"'d.

tos.

("Favored

depreciating cur¬ terests of retailers, and the entire
rency, rising costs for
imported population,: That
price
control
goods, exchange restrictions and should be made to operate effec¬
protective tariffs, industrial de¬ tively, says Mr. Hahn, that "stores
velopment made rapid progress really have no more important job
after 1931.
The present war has than cooperating to the limit to
.

by
,

loaded and ,now are being
by United States troops.

were

used
•

"Reciprocally, the United States-

shipped 150,000 body castings for;
a certain type shell, with the re-1
suit

that

?

able

Canadian / plants were *
and * ship v finished:

load

to

rounds

schedule, the Commit-/
yy/

on

tee- said."

*

also benefited Brazilian industries

insure that it shall work."
using domestic raw materials, al¬
Before
announcing"August
though they have experienced dif¬ for Compliance'- the
plan was
ficulty in securing machinery and. presented to a meeting of some 17
equipment from? abroad."
national retail/associations under

H.;

A '■—.

..;

j

Give To Greater N.Y* Fund
A total of

$65,480 has been con¬
to date by credit, loan

finance

companies

to. the

Greater New York Fund's current

the auspices of the American Re¬
tail Federation.
Approval of the
idea

was

general, it is announced,
that practically

and it is expected

Thompson,

Finance

Personal
man

of

PresidentJ of
Co.

and

chair¬

the

Fund

and

the Illinois-Wisconsin district
maintained

the other

instances
the associa¬

some

the tribution/John Nichols, its Gen¬

of the credit and loan section

Tor the third consecutive month

Bank

In

This.has been reported tions * present needed time to canto Douglas P. Falconer, executive
yas the idea and make plans." In
director of the Fund, by William the case of the Institute of Dis¬
E.

Leads War Bond Sale
:

port the effort.

the representatives of

eral Manager, stated that the
stitute would cooperate fully.

In¬
In¬

111!;

lil.-Wis. District

all of these associations will sup¬

campaign.

substantial lead

a

11

has:

over*

Federal Home Loan
in

districts

the

number

of.

savings, building and loan associa-J
lions having sold War Bonds equal '
to 5% or more of their

assets, it isreported by A. R. Gardner, Presi-:
dent

of

the

Bank of

Federal

Home

Chicago, which

Loan;

the,

serves

district. He recalled that the honor ^

Arthur Om cident ' "to.:-1 tsr;drive ; August to
roll/published
by
the ■ Federal
Dietz, President of Commercial promote community-wide compli¬ Home Loan
Bank Review includes
Investment Trust, Inc. and chair¬
ance with the requirements of the
all institutions with 5% or more*
man of the finance company sec¬
Maximum
Price
Regulations of bond sales, /and said 1.that, two-'
tion.
Mr.
Thompson -: reported OPA, the. NRDG Association has thirds of
the associations in these',
that
credit and
loan
companies issued a booklet on Price Control. two
by

-

had

given $38,708 of which $38,- It consists of 22 pertinent ques¬
from firms and $343 from
tions and answers concerning the
employee groups.: Mr. Dietz's re¬ reasons for and the requirements
port showed that finance com¬ of the Price Regulations.
*

365

was

panies had contributed $26,772 of
which $21,831 came from firms
and $4,941 from employee groups,
"The campaign still is under way"
said Mr. Falconer, "and I am sure

that, when the books close on-Dec.
31, even these splendid figures
will be bettered."

./'V*"/V:

US And Canada Report

j| Record Arms Output
j

*The Joint War Production Com¬

mittee* of

Campaign To Make
fe; Price Control Work

and Asiatic markets and sources of /. Concerned over the danger

longer.

them the best

Retail

tos,

eco¬

as

front

the

of

the

United

States

and

Canada/ reports

effects

"The

include ; iron,
bauxite, / chromium,

deposits :

manganese,

v/\

occuring in Brazil will, to a large

spots for some particular kinds of
meats, or of other foods;. Some
will be seasonal, some may last
<

purchase of machinery and equip¬
ment, it adds.
The Board con¬

for

expect to have as much meat
civilians as we had in one of

.

projects have been backed up by
loan, earmarked for the

loan after

cilities

campaign, Dr. Merle Fainsod, Di¬
rector

As to some specific instances oft
multipled eight times in the
i
He added: "Your efforts will
last decade. Although her mineral
coordination, / the UnitedPreks
supplement and reinforce ours, said: •"
resources are not fully explored,

and

The Red-War Period

:

retailers*, large and tions increased; transportation fa-!
small, to the support of the-Price cilities diverted to essential war*
Control program, according to the work and tariff barriers to effec¬
announcement.« Notified: > of
the tive, integration of production fa¬

rallying- all

has

tributed

See US-Brazil Ties In

first

the

in

increase

an

quarter

■

cussing the record production and
record demand for meats, Claude

than 60% in 1942:,

more

•

York

New

in the

imports, the United States sup¬
plied almost 34% in 1939, and

!'v: they start coming to market the
"There was no opinion.
pinch on meats will continue in
"Kings County Supreme Court some degree.".
■ ////;.
and Appellate Division decisions 1
Mr. Wickard called attention to
affirmed the right of the Polish several
ways
"of
making
the
organization, incorporated in this pinch easier, viz.:- ///
■
:
country, to the money,/although
"Yqu probably .have heard of
attorneys for the Rumanian bank three
steps the -Department of
argued that President Roosevelt Agriculture is taking.
First, we
had
'frozen'
the
funds beyond are
temporarilyj reducing pur¬
reach of New York State courts,
chases
of. meat v for lend-lease;
"The
President
has
'frozen' That will,.make more available
funds " of foreign firms
as their for home consumption.
Second,
countries were occupied by Ger¬
we are going blow the OPA ceil¬
man troops.
ings for the lend-lease purchases
"In October, 1939, the court was which still are being made, and
told, the Bank of Poland delivered we are lowering the lend-lease
51 cases of gold bars—worth $3,prices more in the West than in
This will accomplish
060,704—to the National Bank of the East.
Rumania in Bucharest.
two
things—make things easier
"Six
months
later
the bank for the packers who are supplying
transferred
the
money
to
the the domestic, market, and tend to
Polish Food Commission,' which draw more of the meat supply
had
been, incorporated* in
this East, where the situation is tight¬
country.
•
*
: ."/■/
est.
Third, we have offered to
"Polish right to the money was make
agreements with packers
then
transferred
in
December, who may be in difficulties, so that
1940, to Polish Relief Ltd., which they can process meats for the
obtained the writ against the three Government on a contract basis.
.

than 5%

In regard to Brazil's

period.

same

V1'

Bank.

to less

1940, Brazil was our best
meat than
that, he said, customer in Latin America, taking
2.8% of our total exports. In that
"is creating a great new demand
for
meats, and ^making present year she and Cuba were the two
supplies seem shorter than they leading Latin American sources of
would otherwise." Indicating that United States imports, each sup¬
4.0% of the: total.
The
the tight spots for meat will last plying
generally has an
until about the end of September, United States
balance
in trade with
"when heavy new lots of hogs and import
This
import
balance
cattle will start coming to mar¬ Brazil.

dollars

the National City
the
Chase
National

and

too,

"housewives have more

that

also

Trust Company,

Bank

much.

so

36%

over

but not
The Army and

lend-lease,

Navy are buying large amounts
of meat, mostly beef."
He noted

City with the Irving

in New York

for

fThursday, August 6, 1942

of

a

price inflation, and' the
injury to the war effort and the
national economy from such a de¬

that the annual
rate of munitions productionin
this country for the second quar¬
ter of 1942 was nearly four times
that of. 1941,:: and that Canadian
production in the second quarter
was

almost /three

times

have

doubled

since then.

In

months

ago'

It is further stated:

"The latest honor roll

1

published:

in the current Review is for June
1. and showed 83 out of 401
in-;
stitutions

located

in

Illinois

and

Twenty-seven were!

/^Wisconsin.
added

to the list in this - district in the 30 days since the previoushonor
roll
was
published,' Mr.

Gardner
as

said, and

more

many

institutions

any

of

other

now

sold

the

bonds

than twice-

here

equal to

in!

as

districts

their assets.

10%
first report to President
Roosevelt and Prime Minister W.
i -

two

their sale of bonds,

have

10%

-

of

.>!!,:'<<>v

t"Twenty-nine of the ,'associa-»
tions ,in/.this district are in,
the;
the 1941«

runaway

.

States which appeared on the!

first, honor, roll

its

or

over

jthern moved
more

and 13.
one.5% notch

group,

up.

Jin the last -month.

of!
or.

These,,

29 constitute

between a third andvelopment,: American
retailers L;, Mackenzie King, covering the
a fQurth of all the '
10%' thrift and
have organized for a nation-wide first half-year of its coordinating
borne financing institutions in* the>
drive during August to rally the activities;
the Joint: * Committee
w r.,
,.
.
>
fullest retail store and consuming said'that even greater increases country."
public support for the Govern¬ are called for under future pro¬ / One .out of./every five of the!
ment's Maximum Price Regular duction schedules of the two coun¬ Chicago bank's member savings,'*
tions, it was made known on July tries, ; especially ..in the United building and loan associations is.

.

Hahn, General Man¬ States where production got under
ager of the National Retail Dry way at a later date than in Canada.
Goods
Association.
The Committee report pointed
Designating
the campaign "August for Com¬ out how duplication in production
pliance," the month is intended had been greatly eliminated: ex¬

28

by Lew

,

.

to

serve

as

education
"make

:

an

intensive period of
stimulation
to

and

price

control

change of designs and information
production methods stimu¬

about

work" - by lated; standardization of specifica¬

now

ner.

the honor roll, MiVGard-:

on

said, .and in addition, three of-

its larger members have sold
more'
than, a half a million
one

of

dollars, and
them, the Talman FederaL

F^vin^s

Chicago,

and

Loan

more

War bonds.

Association

than

of

$1,000,000 of
„•

Volume"-156* ^Number 4096

THE COMMERCIAL & FINANCIAL CHRONICLE
according to the Associated Press.
"The
production of even the

Office

The

revealed

29 that "some¬

July

on

under
but

ments

lend-lease
the

that

arrange¬

bone."';': ; •/ V.Y /• -YY
A

:

higher." y:'"Y'''Y;Y;VY: ■
Regarding This announcement,

•'

"It

is

obvious

that

have not received from

work

war

much

and

on

sent

them

have

sent

much

as

is

strategy.
"The

President

.'

;

basis

At

of

whether

the

made

it

rationing

essential

on

nation¬

a

rubber-borne

vehicles

the road until

sufficient syn¬
thetic rubber comes in to provide

tires

for civilians.

"This

official

Bulkeley

OPA

esti¬

the

on

only

aver¬

Roosevelt

the nation's tires by Oct. 1.

There

were

10,000 miles
average tire at the start

presented

"Expressing
small

the minimum at which
is

businesses

that1 S.6C?SSary

belief

would

ously damaged by the

be

relatively

the

transfers

of

to the Allies constituted

weapons
a

lease-lend

total

small

proportion

of

munitions

production,
;but■ addedv that many • military
items were not needed as sorely
byYthe Allies as by the United
States' own armed forces, yY^'Yv.;
:
"Although figures here are ob¬
viously a military secret, it can be
said that in the things our Allies
need most, in particular tanks and
planes, the proportion of our pro¬
.

duction which is being shipped to
them
is
much higher than the

over-all average," the statement
declared./;Y;.Y yYY ya; Y Y: • vY-Y: y
IT A full picture of lease-lend aid
cannot be obtained without

taking
shipments of
agricultural items
which "are as important to fight¬
ing the war as planes and guns,"
into

consideration

industrial

and

the QWI stated.

?'tlp t&'H6he 30 this country
abroad

$818,000,000 worth of

White

House.

recapping
4,000-mile

possible, but the
danger point will be reached by
March

or April,
1943, unless driv¬
ing is curtailed." ,r
-TrY; V «,

war

creation of

a

of taxes paid.

Leon

'

,

'There will not be many small

shops if the

or

continues for three

four,

or

the Mayor testified.
:

"When

Mayor

;

■

,

war

21/i>

years,'

9,/10ths

and

reserves

by

corporations.

T

,

We must raise

15 cents

for the

pay

war

but

" 'For
Opposition to the proposed Fed¬
extraordinary
heroism,
of
income
from
distinguished service and conspic¬ eral Taxation
uous ; gallantry
above and be¬ State and municipal bonds was
yond the call of duty, as com¬ voiced before the Senate Finance
■

mander of Motor

Committee

ron

LaGuardia

.

OWI

Aug.

3 by Mayor
York, who at
urged that Congress

time

provide post-war tax rebates for
and

-

lieved to be without precedent in and business firms were not per¬
this type of warfare. His dynamic mitted to; build up reserves for

.skillfully' executed attacks,
supplemented by a unique re¬
sourcefulness and ingenuity, char¬
acterize

leader

him

of

j as

men

an

and

a

outstanding
gallant and

i

had lost

revenue

*

Y

.

Stocks—Deliveries Halted
The

argued

War

Production

Board

on

July 29 ordered the stoppage, be¬
tween Aug. 3 and Sept.
15, of all
there

the proposal to tax bond issues
He

City
yY;

/Y; .< T

•

To Build Up Fuel Oil

"Henry Epstein, Solicitor Gen¬
York, flatly described

'wicked.'

that

The War Production Board

was

Mayor; LaGuardia
,

follows

had
.

to

J-

f " 'Gentlemen there is not a city
Aug. 4 to be consid¬ in this country that is not
skating
ering a speedometer checking plan on very thin financial ice.
.V
to "ration mileage" to save rub¬ P
'"Every cent of Federal taxes
ber, as an alternative to nation¬ imposed on these bonds will be
wide

gasoline

rationing

said

Press *' advice

use

(mileage

of

their

names

rationing'

:

an

from

Washington which added; Y;:
l" "Officials who would not
mit

■

on

Associated

.

the

the

and
•

of

ex¬

eral of New

.

.

governed

.

sively from Washington.
racy
must have k local

as

exclu¬

which

Democ¬

In!

a

a

Y

'

Y

person

The

be' non-deductible
tax

reflected in increased
pay

these

on

bonds

interest

and

we

that

in

turn will be reflected in increased
per¬

said

proposal

taxes

real

on

estate

which

the

ready overburdened.'YY'

be¬

!

"Turning

another

to

•

is

f

al¬
i

of

aspect

from

levy

perature controls.

Tanzer

protested
5%

If

that the

hot

withholding

the

amount

of

water : heaters

abnormally high

interest and divid¬
'perhaps the most bur¬
densome
and
impractical
plan
that has ever been seriously pro¬
posed by any responsible public
on wages,

or

oil

last

for

used
year

low,

was

if

or

|

f

no >

oil

at all was used, then the
sup- Y
plier may deliver- no more than
50% of the amount that would T>

was

official.'

:

r'seareh operations requiring tem-

income

returns.

"Mr.

.

for

processes or

5% retail sales tax which would

ends

as

question of amending a
through 'cer¬ House-approved payroll collection
the strain placed on the civilian tificates of necessity't issued
to tax to make it a withholding levy
industry by the war effort.. yyYYY drivers. YYY';.' j* y yy.1-/'■ ;Y;■YY-i.Y Of which one-fourth would be re¬
'•
In furtherance of this., plan, .Mr..- Y "The WPB held its weekly ses¬ turned
; to
individuals after, the
Nelson announced1 that two- pf lhis sion today and Chairman Donald
ease

through tax

emption of government orders in
plants that formerly contributed
heavily to local revenues, ^ YY:Y:

House-approved

fore the WPB called for the reg¬ the
bill, Mayor LaGuardia recom¬
many,T is designed to concentrate istration of every automobile and mended that the Committee con¬
essential civilian industries in cerY the allocation of a specified num¬ sider
the

to

;

east

"Mayor Jeffries complained that Apalachicola River
of Bristol, Tenn.
and other cities
already

for it not the rich guys these
youngsters from the Treasury De¬
partment say."
The Associated

reported

regions

Florida

Detroit

pay

what

plants .and

Columbia,-

res^ting

say:

tain

" v.

is entitled for use
in hot-- water heaters
during the ;
habitat.
expenditure in that period;
In
same period
may be dejiv.ere.d- in 1
disapproving - the*- Treasury pro-; Local;| government ' cannot exist one
trip,* instead of ^several fi'ips without fiscal independence, and
posal- to tax income from future
as
heretofore.
The quantity de¬
that is what the Treasury is
trying
issues of local bonds, Mayor La¬
to destroy.' '
Y;>.yy
-^vTyy YY ■ livered, however, may not exceed
Guardia, according to "the Asso¬
50% of the amount used during :
"Laurence Arnold Tanzer, repciated Press, said "that that could
the Commerce and
Sept. 15,194!
only
mean " that' municipalities

reflect great credit upon him and ers." He is further quoted as say¬
ing that "if these securities are
the naval service;' " • Y*:;Y •
J
taxed, the taxpayers of the cities

i

.

■;

in

halt to deliveries of oil for
would have to pay higher inter¬ dustry Association of New York,
intrepid seaman.- ; These qualities
Inc.,. formerly the Merchants As¬ heating and cooling does not apcoupled with a complete disre¬ est and thus would be forped tp.
ply to fuel oil used for agriculraise I the taxes on property own¬ sociation of New York, advocated
gard for his own personal safety
tural or industrial

.

The War Production Board has

Coast.

The price, cuts will be effective

taxa¬

forces

enemy

"started off very slowly, but it/has
been accelerating fast."-

approved thje principle of concen¬
tration of industries engaged in
the manufacture of civilian goods,
Donald M. Nelson,- WPB Chair¬
man, recently announced.
This
policy, in; line with wartime praer
tice in Great Britain and Ger-

effort

the Senate Committee's hearing
'cannot be the slightest pretext on deliveries of fuel oil to consumers
on the pending
tax bill.
Mayor
during the
the part of the Treasury that sub¬ in the Eastern States for the oper¬
LaGuardia
told
the
Committee
four months and eight
ation
of .-•• heating
days of
stantial revenue can be
and
cooling
expected
operation without benefit of re¬ that he was •"fearful" of what
equipment.'-: • Y-Y.-"-'*:-;
from this source for at least a
gen¬
might happen-to the nation's econ¬
pairs,- overhaul or maintenance
At the same time, the WPB di¬
eration,' and added: 'Democracy
facilities for his squadron, is be¬ omy after the war if individuals
rected
that
all
the
fuel
oil
to
cannot
be

based

lease-lend

that

said

June 29 in

gaso¬

porting petroleum products to the

ties out of business.

Press further indicated

The

1

on

a

Connecticut, Delaware, Maine,'
tion of local bonds would be 'like
Maryland,
Massachusetts,
New
picking on a cripple.' J He said Hampshire,
New
Jersey,
New
municipal officials were.'scared to York, North
Carolina, Pennsyl¬
death' of the Treasury
proposal vania, Rhode Island, South Caro¬
and believed it involved a
plan lina, Vermont, Virginia, West Virgradually to 'squeeze' municipali¬ ginia,
Georgia, the
District
of

persing landing parties and land

and

materials,: and $841,000,agricultural products,
dt was- stated.
In-1 addition,' such
services as repairing Allied war-,
ships and cargo crafts, the ferry¬
ing of planes and the supplying
of shipping space are valued at
$596,000,000 since the start of .the

same

individuals

Lieut.

ma-

dustrial

the

on

of New

businesses.
The
Bulkeley's
command in damaging or destroy¬ Mayor headed a 'group of State
ing a notable number of Japanese and city officials which included
enemy planes, surface combatant Mayor Edward J. Jeffries, of De¬
and merchant
ships, and in dis¬ troit, all. of whom appeared at
of

residual fuel

on

.

i

achievement

barrel

a

an

:

;

the

of

established

can't de-

said

reduction

a

cent
on
kerosene,;
light heating oils and

a

on

the OPA

story the future,' 'Senator George
East

•'Mayor Jeffries

on

partially to compensate oil com¬
to panies for
increased costs of trans¬

money

YYYY:''Y

effective

This action wipes out
line-price increase which

YY'Yy.Yt—
we

gallon,

.

oils became effective.

individuals

the

a
■

of

1.1 cents

with Mr. LaGuardia's statement of
the need for the establishment of

post-war

.

Simultaneously,

had

his

testimony, Chair¬
Walter E. George,
Democrat,
Georgia, said he agreed 100%

of

cents

Aug. 5.

T

LaGuardia

Henderson, Price Admin¬

istrator, on Aug. 1 announced that
retail gasoline prices on the East¬
ern
seaboard would
be reduced

"

manufacturers

prfsent to increase

Gas Price Cut To Old Level

for them out

reserve

.

.citation read as follows:

Torpedo Squad¬
3, in Philippine waters dur¬
ing the period Dec. 7, 1941, to
April 10, 1942. ; The remarkable

an

econ¬

Mayor LaGuardia said some
provision also might be made for

added.

The

forcefulness and daring in offen¬
sive action, his brilliantly planned

000 worth of

lease-lend program.

the

at

sent

j'chinery, metals,'oil and other in¬

:■

office

pro-

constituted

seaboard deliveries,

seri-

omy,

the

of

the

man

-

that

for includ-

;| important terminal for pipe lines,
of ra^ ahd barge routes,

.

•

true'

it

we must be thinking I
Petroleum Coordinator Harold
going to happen after, L« Ickes on July 30 stated that
the war,' he said.
::
| nation-wide rationing was not

concluded

Congressional Medal of Honor year, according to this authority,
on
Aug. 4 to Lieutenant Com¬ f "This mileage cannot drop lower
than 4,000, he said, because that is
mander John D. Bulkeley, of New

ments had brought the total war
shipments to a figure higher than York for his daring exploits as
12%,- but it did not tell the figure, commander of a motor torpedo
boat squadron for four months in
i "The report was in the form of
a 'press memo'
intended, the OWI Philippine waters, Associated
Said, to amplify .and supplement Press advices from Washington,
on
recent .reports having the general
Aug. 4, had the following to
theme that 'our lease-lend policy say about the presentation:
T.
is on the verge of failure.'y y-y
j .."The medal was presented to
jiTfThe OWI said it was 'perfectly Lieut. Bulkeley in the President's

that

was

is

the

on

the

OWI

:

gram

but

course,

'Y'YYY;

.

said

mates showed there would be

•

•

<

reason

ing western New York in the

government

;
"'We must pay for the war,

plain,

wide basis to be the only fool¬
proof method of keeping all non¬

off

of

added that the

ap-

any

,

officials

gasoline

purchase

amount

bonds.

mileage of what

however, that they still considered

pro¬

to

preciable

intervals

age on

Honor Medal

problems

-

•

OPA

been

,

need.

6,500 miles of driving

said, however, that
cash purchases by foreign govern¬
:

determine

'we should

question involving
of global

a

the v highest

as

have

civilian

the

on

speedometers would be checked to

;Y:

25%

permitted to carry
they need to do the job," the
duction.
OWI conceded. "Whether we have

with additional

it practically impossible for ordinary citizens to

had been exceeded.

had been converted to

as

;

vocational

Mr. Nelson pointed out that of

about 75%

Allies

us as

'family use,'
mileage allowed

6,578 plants which normally sup¬
plied
England's
civilian
needs,

:

our

of

specific amounts of essential goods
thereby will cut the civilian
economy
down to the absolute

proportion of

the Associated Press said::
'•

list

and

"much
-;

long

a

goods, the British
government will issue licenses for

planes and tanks sent to them is
.

of

truly essential

coun¬

try's total munitions output is be¬
ing transferred to the United Na¬
tions

for

quotas

"Each driver, it was said, would
a certain basic
mileage

goods which have been permitted
in the past will be stopped alto¬
gether.
In place of quotas for

of War Information

what less" than 12% of the

be allotted

small

Says 12% Of Nation's

465

normally
tween

He said it would require

be

used

this

year

Aug. 3 and Sept. 15.

be-

*

]

•,

This action

was taken at the re8,000 to 10,000 additional Treasury
employees
and would
place
a Quest of the Office of Petroleumv
Coordinator in order to build up
heavy burden on 2,500,000 . em¬
ployers who would be charged reserve stocks for next winter's with collections from payrolls.- > needs, the WPB said.
■ Yy
;•

-"Leland Powers, of Boston, rep¬
resenting Associated Industries of
Pay On Porto Alegre 7s y
Massachusetts,
said
there
was
danger that- the House-approved
Ladenburg, Thalmann & Co., as i
tax bill would limit or destroy
special agent, on Aug. 1 notified
production."
:
holders of City of Porto Alegre
;
•

.

.

t

(United States of Brazil) 40-Year
7% Sinking Fund Gold Bonds, Ex-

ber of miles to each

fGas" Ration Plan For

ternal

;

have

Loan
been

of 1928, that
deposited with

funds

•
,

;

them, Y
Proposed sufficient to make a payment, in ;
war;,r;Y':;Y',\.■tY
'■;
; Joel Dean,. in
charge of the lawful; currency of the United;
experts—Dr.;: Arthur ■ R.Burns, M. Nelson said, as he entered the
"The House voted to impose a
gasoline rationing program under States of America, of 13.975% of '
chief ; of- The- civilian' planning session, that the board had before
levy of 5%, less personal exemp¬
the Office of Price Administra¬ the ;face amount of the coupons
branch of the Office of. Civilian it an alternative plan as a substi¬
tions, on the. income from wages,
due Feb. 1, T940, amounting to Y
Supply, and * Henry \ A. Dinegar, tute for country-wide rationing interest and dividends, beginning tion, on July 29 recommended na¬
tion-wide gas rationing.
ch'ef of concentration for the same of motor fuel. When the
Y",
Y: $4.89Vs for each $35 coupon and ;
meeting Jan. 1, the collections to apply on
office—are
now
inY England to broke up, however, Mr. Nelson re¬ 1943 income tax liabilities.
Mr. Dean agreed that there was $2,44 9/16 for each $17.50 coupon, v
The
The notice added: ;
"make an intensive study of indus¬
Y
*
ported merely that—'a decision rate would advance to 10% in "no doubt" that nation-wide gas
trial concentration. '
1 ir.
will be made shortly on a
"Pursuant to the provisions of
rationing would tend to relieve
savings 1944.
the existing East Coast shortage I the
Indicating that England's1 civil¬ in transportation.'
:
;
"Mr." LaGuardia said the 5%
Presidential -Decree of the
ian economy has been "cut down •v "It was indicated that the 'mile¬ rate
might be increased by 1% or by making possible diversion of .United States of Brazil, such pay- ,

Entire Country

•

.

'

,

to the absolute

bone," Mr. Nelson
adopted the prin¬
ciple of concentration of industry
-early in 1941 and, at that Time,
"had reached a stage which the
"Britain

said:

United

States

Predicting,
number
nomic

try,

■

of

now

indirection,

\

drastic

restrictions

Mr.

reached."

has

by

Nelson

wartime

for

said

this

of




a

eco¬

coun¬

Britain,

age-rationing' proposal said to be possibly
before the board

did

not

call

for ments

a

little

made

more

and arrange¬

to

give non-nego¬
non-interest bearing cer¬

abandonment of the present gaso¬ tiable,
rationing in the East. ; The tificates to the taxpayers for oneeast coast's rationing is caused by fourth of the amount collected. He

line

the

shortage

of petroleum

ship¬ suggested that these certificates
ping facilities; the other plan is be made payable a year or eight¬
viewed
measure

solely
and

as

would

a

tire-saving

apply to

the country except the East.

all

een

months after the

"The

taxes

war

imposed

ended.

by

the

pending bill, he said, would make

tank

cars

tioned

he

and

areas.

trucks

from

The only

unra-,ment,

if accepted by the holders

difficulty, of the bonds and coupons, must be

added, might be transportation [accepted in full payment of such
in traffic gateways .coupons
and of the claims for

"bottlenecks"
to the East.

[interest represented thereby.

Officials of the Office of Petro- j

leum
was

Coordinator
not

order

the

was

that

"No present provision, the

no-

it tice states, has been made for the

intention to coupons due Feb. 1, 1932 to Feb. 1,
nationally, sines 1934 inclusive, but they should be
not apparent.
They retained for future adjustment."

present

rationing

the need

added

.

.

THE COMMERCIAL & FINANCIAL

466

Inflation

Vanquished
Leon Hen¬

Price Administrator

Congress
on July 27 his first quarterly re¬
port on the operations of the Of¬
derson, in submitting to

Price Administration,

of

fice

ex¬

pressed confidence that President
Roosevelt's program to keep the

ofj (living down will prevail

cost

infla¬

and that the "battle against
tion will be decisively
The

won."

required by the
Price Control Act of

report,-

Emergency

1942, is in the form of a 237-page
book accompanied by charts of

price movements.
In

of

Rayburn,

House

the

to

and

Wallace

Vice-President

Speaker

-

transmittal

of

letter

a

Mr. Henderson states:

"It is

obvious point and one

an

labored, but I wish

that has been
to make it

again: The President's

the

as

elements

effective

can we

are

first World War."
t % '

the

imperils

entire

cam¬

It has been a difficult task
to hold ceiling prices in the face
of each group to take its battle
station until assured that other

i

ft'.'/'.

ft

'

near

what

boards

draft

K

cently given a new set of rules by
Service headquarters at

pendents.;: For the guidance
local boards, Maj.-Gen. Lewis

future, that is, the next few

nent universal

year

one

ft

v

-ftft'ft'"
4

goods are delivered, or; "
in the case of rents, within a year'
after the rent is paid.
1 ::
/
"Coincident with Mr. Henderft
an>*
ft
regulation: ftftftft.
order
expressly prohibiting the;
ft
use of several layers of price lists,' ftft.
one. piled
on top of another, Tn vftft;'
retail stores. -!i
-.r
ft "The amendment specifies that
v'ft
the 'maximum price of each com-; .
modity offered for sale shall beft::ftft;
plainly visible to the purchaser/ at -'ftft-ftft
the place in the business estab-s
ft;
son's

announcement;; came

-•

amendment to the price

lishment where the commodity

isiftftfty.

shall not be'ftftftft,
obscured by the posted prices of. ft;ft
other commodities, whether by the yftftft
use of price books or catalogues *
or
layers of price lists or other-: ft ft'
wise, or in any other manner.' 'ft'
Vy ft";
offered for sale, arid

Oppose Income Tax
Provision In Bill

convenience in

your

Opposition to the provision in;
the pending tax bill which would ,'
terminate
the> exclusion
from ft,

:

ftftft

ft

income, for the purpose of
taxation, of earned income of non-;
resident
citizens
from/; sources •

ftv

United; States

the

'ftyftft

was;

,'ft

,

■,

by the Cdfti-y
Association of;
New York, Inc.; under orders of; ftftft
the Association's Executive Com,'ft
mittee.
The provision is in theJuly 31

on

and Industry

merce

Subject To Suit

.

gross

voiced

now

studied
worth

ft

w.

after the

without

being
by Representative Wads(Rep., N. Y.), an author of
is

'

started within

be

must

military training of

youth

ft": 'ft'.ft

.

%

bring such actions, and the suits

Each point in this

ftftftftft

A pany."
ft Legislation to authorize perma¬
eligible for military service.

American

#'•

' >:<

*

"Only consumers have the right

practical program has been set up
in this booklet with a check list,

Roosevelt which is for

President

However,

•;

to

has declared that

Selective

Washington, which authorize the
drafting of men heretofore de¬
ferred because they supported de¬

your company.

consistent with,

problems and current situation of

the

manner

a

public interest. ft

;v

present plans do relating the program to your own
It is definitely not a
not call for asking Congress to; operations.
amend the Selective; Service Act questionnaire, but something for
the internal use of your own com¬
in order to make these youths

re¬

were

age

months."

Given To Draft Boards
Local

of
B.
Hershey, Selective Service Direc¬
groups were taking theirs.
The tor, created seven categories of
story of price control under these order of call in accordance with

the
Selective
Service Act, and
Warning that retailers who vio¬
laid down by Congress War Department officials and may
for the next of these reports.
Revenue
Bill
of
in June—that of protecting bona- be ready for introduction in Con¬ late the General Maximum Price Federal
1942,ft,ft,
."Fortunately in recent weeks fide family relationships as long gress by
January.ftftft.•" ft':ftft;;ftftift Regulation Order could be sued passed by the House of Represen-ftftfty
for a minimum of $50 damages by tatives on July 20 and now beforerecognition has grown that this is as possible.
their customers after July 31, was the
a major theatre of the war.
The seven classifications are:
Senate
Finance
Committee.;
The
initial
hesitation to
follow the
given on July 25 by Leon Hender¬ In expressing its disapproval of,
"(1) Single men with no: de¬
President's lead on the economic pendents;
son, Federal Price Administrator. the proposed repeal, the Associar*
"
Similar action, he indicated, may tion believes that the present law, ft
front is disappearing under the
"(2) Single men with depend¬

reserved

difficulties is necessarily

>

olds, but young men of that
need not alter their plans for

•

New Rules On Deferments

count on continu¬

paign.

:ftj

1

,

'

made

ing to hold the lines on prices.
"Hesitation on any of the major
fronts

in

•'

!•1

■

effective.

other

certain

contribute

the:

are.

$86,000,000,000 while there were amounts. The Adjutant General's pare for after the;war,:,!and I feel,
we can confidently say that among
$69,000,000,000 of civilian office in Washington began re¬
industrialists the figure is "closer
goods and services.
The differ¬ ceiving applications for allow¬
He added: .:
Under present to 100%."
% ft
ence of $17,000,000,000
inevitably ances this week.
would be converted into higher plans, the first payment will be ft "After all, it would be a com¬
made Nov. 1,
1942, but may be plete disaster to win some sort of
prices and still higher incomes
unless it was controlled.
retroactive, at the request of the military victory and in the process
soldier
or
his
dependents,
to lose those free institutions .for
"In the face of this situation, it
June 1. ftftft; v '/ftftjft- .'ft, ft'ft;: ft-- ''ftft 'ft;: which we are fighting. Avoidance
was noted, it was clear that selec¬
Another development in plans of this disaster is the objective
tive price control had to yield to a
for continuing
expansion, of the of the NAM Committee on Postgeneral ceiling over all the ele¬
War Problems; and the enclosed
ments
of V the : cost
of 1 living. Army came recently with the
declaration by Secretary of War booklet representing the. work of
Against this background the gen¬
Stimson that he believed it would its 'Practical Program for Indus¬
eral maximum price control regu¬
be necessary, ultimately to draft try' Subcommittee; is a practical
lation and rent controls were is¬
youths of 18 and 19 years of age. step - toward the > achievement of
sued by the OPA on April 28.
This age group, although already that objective.--ft'.%}'• ftftft'ftftftft
"On the question of rents, the
registered, is not subject to in¬
"It is the obligation of each in¬
report cities the 'direct and im¬ duction under
present law until dustrialist to do all that he can
mediate' effect on wages and on
they are 20. •> Secretary Stimson • to prepare now—in his company—
war
production itself of the in¬ said:
.ft ft-ftft-ft.'ftftft ft• ftftft-''"ftft for the post-war period.
I urge
creasing rents.
,
;
i
"We have never had a great war you to read the Committee : sug¬
ft "The report also carried an ac¬
yet in which we did not have to gestions very carefully, and take
count of current price control as
call up those classes.
I think we such action in connection with
compared with controls during the may have to call up the 18-year- them as may be indicated by the

Without
price control the other elements
cannot be put into play, and only
made fully

extremely interested
industry .is doing to pre¬

Thursday, August 6, 1942-

used in

"over 66%' of the American

that

and the people

at

succeed only as its every element
is

grades of the

less than

will

inflation

against

program

lower

the government

himself

man

potential consumer spending stood
►

the

"The 'simple arithmetic' of in¬ men in
flation, the report added, was that service,

Henderson Forsees

-

CHRONICLE

,

che policy

spreading awareness of the facts

ents

with which he must deal.

war

but

not

contributing

to the

effort;

NAM Campaign To
Oallino Post-War Plan
An

campaign yto
consideration of post¬

educational

"Therefore it is with confidence

"(3) Single men with depend¬ stimulate
ents, and who contribute to the war problems by management was
■war effort;- ft i
prevail and that the battle against
• -.: \ft;;
«
"V
1 launched on August 3 by the Na¬
inflation will be decisively won ft; " (4) Married men, not engaged tional
Association
of Manufac¬
that I submit to the Congress this in the war effort, but living with turers.
Eight thousand members
opening chapter of the story of their wives;
of
the
Association
were
called
American price control in the sec¬
"(5)
Married men, engaged in upon; by President William P.
ond World War."
;
;
ft the war effort, and living with Witherow:
ftftft-ft'ft.
The following summary of the their wives;
ft'ftftft"
y-ftftftftft
"First to take practical steps at
report itself was
contained in
"6) Married men, not engaged the present time which will bring
Washington advices July 27 to the in the war effort, living with us out of the war in a sound and
Baltimore "Sun":
vftftft0. :ftfft: y. ft. wife and children, or children strong position, able to carry on
"The report
traces the early only;
1
.•'
under private enterprise the num^
part played by the price stabiliza¬
"(7) Married men, engaged in ber one job of industry—which is
tion division of the National De¬ the war effort, and living with production, and '
•
.v.*
fense Advisory Commission and wife
andftchildren, or children
"Second, to outline our own
the President's executive order of only." *■ ftftft; ~ ;-y>- \ • :ftft;ft; i ft ftftft'ft:ftft1 framework
for
the
pattern of
The following is a list of 34 es¬ American society in the post-war
April 11, 1941, establishing the
Office of Price Administration. It sential activities, compiled by the
also recalls that the new agency's War Manpower Commission, for
i
As a preliminary step in this
first basic action was to control which deferment may be granted: direction, a brochure; containing
"Production
of
aircraft
and procedural suggestions for selfsteel, one of the most basic war
that the President's program

will

.

-

.

.

.

.

.

1

materials.

ships,

parts;

boats

and

parts;

analysis

accessories;

am¬

turers

1941, the President sent munition; agriculture; food
a message to Congress emphasiz¬
cessing;
forestry,
logging
construction;
ing the need for legislative action lumbering;

pro¬

row's

it

"Likewise,

July

is noted that on

30,

the price front.

on

ordnance

"The ensuing

winter,

fall

the report
of price

extension

and

and
coal
mining; metal mining; non-metal¬
and part of the lic mining and processing and
says, saw the quarrying; smelting, refining and
controls while rolling metals; production of

weighed the matter of metal shapes and forgings; finish¬
legislation. By Dec. 1, nearly 40% ing of metal products; production
industrial
and
agricultural
of the wholesale price structure of
was
under either formal or in¬ equipment; machinery; chemicals
and allied products; rubber prod¬
formal control. On the other hand
leather products; textiles;
uncontrolled prices continued to ucts;
apparel;.... stone,
clay
and
glass
rise.
."From February to December, products; petroleum, natural-gas
1941, retail prices of foods, cloth¬ and petroleum and coal products;
ing and household furnishing rose transportation equipment; trans¬
by 15% in spite of these facts, portation services; materials for
however, the report says, 'in gen¬ packing and shipping products;
Congress

\

the

eral
were

operations of the Office communications equipment; com¬
for satisfaction.' There munications services; heating,

cause

seemed little reason to doubt that
once

the emergency price

control

passed the danger of in¬
flation could be headed off.
"That was before Pearl Harbor,

bill

was

-

the report points

out.

Since then

and illuminating services;
repair
and
handtrade
services
fblacksmithing, armature rewind¬
ing, electrical and bicycle repair,
automobile
repair, harness, and
leather repair, clock repair, tool
power

repair and sharpening); health and
services; educational ser¬
in civilian goods plus a civilian vices; governmental services."
An important step in the draft¬
purchasing power swollen beyond
all previous conceptions.
ing of many men with dependents
'Here
were
explosive forces was provided for recently in the
the

enormous

tion

meant

a

armament produc¬

drastic

curtailment

welfare

"

which, if not checked, could and passage by Congress of the Ser¬
would wreck the price structure. vice Men's Dependents Allowance
The

turning

Control
no

Under this act which pro¬
point had arrived. Act.
price structures vides allowances for wives, chil¬

of retail

longer could be avoided.'




dren

and

dependent relatives

of

by individual manufac¬
accompanied Mr. ' Witheas
to which he

message,

said:

,

ft; "This is not

post-war

,

a

■

report

,

<

on

considerations.

NAM's

after that date by tenants
areas
against

be begun

defense-rental

in

landlords who do not observe

regulations of the Office of Price
Administration /regarding
rents,
Mr. Henderson was reported as

the

at

stating

statement

made in announc¬

was

program of enforce¬
the General Maximum

that

ing

a

of

ment

However, I consider this an es¬
sential, constructive step in the
right direction to stimulate

His

time.

same

Regulation Act is about to
"in areas where
its
educational -activities* have
reached a majority of retailers."
This was made known in Wash¬
Price

undertaken

be

ington advices July 25 to the

New

say:-

'ft

-

was

considered

such

an

area,

ficials of OPA said they were

prepared

to

name

the

of¬
not

to com-w

allow American exporters

of. other*,

nationals

with

pete

exemption has
been included in the income tax
"This

countries.
law

for

many

it being felt-

years,

derived

income

since

that

in

a

foreign country will be stibject to'" :
tax
laws of the
country wheredomiciled double taxation should ft
be avoided by

exempting such intax laws of the

the

from

come

y

W. H. Ma- •
honey, Manager of the Association's Foreign Trade Bureau. Mr.;
United

States,"

said

ft

Mahoney added: ftft
tion

"Asked whether New York City

v

in order to

be maintained

should

"Times," which went on to ft "For

York

many

went

on

years

the Associa-j

record

in

favor

of

making taxable only gross income
from

sources

within

Association

The

States.

United

the

has

>

.

.ft:,

cities in

pointed out that it is impossible
'
which the drive will be started.
for foreign branches of American
"Saying that the public, as well; export houses to compete with na¬
as
honest storekeepers, must be tionals of other countries if theft
of
individuals
derived,
protected against 'deliberate chis¬ income
eling and penny profiteering,' Mr. abroad is subject to United States
Henderson
stated
that three taxation. It is hoped that this pro- ft
months had passed since the price vision will be removed from the

issued, and pending bill."
;ftft.ft"::ft ■: ft-v'ft-ft-ftft
OPA had con¬ ..ft Laurence Arnold Tanzer, Chair-' ft
widespread
educational man of the Association's 'Commit-''-^y:ft

Our regulation order

Committee on Post-War
Problems, headed by S. Bayard
Colgate, has been studying the
subject for a year and will con¬
tinue to do so for the duration.

major

the

in

that

time

ducted

campaigns
and others

a

was

the

to bring to retailers
thorough understand¬

ing of the regulation, the reasons
for its issuance and what it re¬

quired in the way of compliance.
"He added that after July 31
housewives and other members of

thoughtful study today of this
huge
problem
of
reorientation the buying public acquired the
when the war is finally won. .ftft,,;;, legal right to bring civil suits for
■ft. "We know that there are those a minimum of $50 (or treble the
who
would
like nothing better amount of the overcharge, which¬

tee

on

Taxation

and

will include

Public

Rev¬

protest of this
change when he discusses various ft
phases of the Federal Revenue:

enue,

Revision
Finance
ton.

1

Act

a

before

Committee

Senate

the

in. Washing¬

'

•

Payment On Danish Bonds

ft

Danish ft ft
Minister to the United States, is- •
ft
sued the following statement in ft
Washington on July 31, for the in-,
Henrik:

,

Kauffmann,

greater), plus attorney's
against any store¬
keeper who charged them more
formation of bondholders: ft/ftyftft-ftft-'ft:
for an article than the OPA regu¬
"Fory the purpose of payingft :
ftft
this threat.negatively;'^-We must, lations allowed.
,"In addition, under the Emer¬ Aug. 1, 1942 coupons of Kingdom ft
have and publicly promote a con¬
of.Denmark 5J/2% external loan,
crete
and constructive post-war gency Price Control Act of 1942,violators of the Price Administra¬ gold bonds, due Aug. 1, 1955, andprogram."
'
Danish
Consolidated
Municipal
:
Reciting the broad objectives of tor's orders and regulations face
Loan„ 25-year 5% external gold
post-war
study, 'the
brochure criminal prosecution with a maxi¬
bonds, due Feb. 1, 1953, I propose1
mum penalty of a $5,000 fine and
queries manufacturers on the is¬
to
put
the
particular
paying-- '
a
year's imprisonment - or both;
sues of (1) general policy, (2) fi¬
civil-injunction suits and actions agents in funds so far as it is es-.
nancial policy, (3) personnel, (4)
timated to be necessary to make
to revoke the
seller's retail li¬
products and markets, and (5)
coupon payments to holders, other ,
ftftV:
sales and distribution, under each cense.than
residents
of
Denmark, of"As far as consumers' suits are
heading asking that members in¬
bonds of these two issues.
;
Mr, Henderson -said,
dicate for their own information concerned,
"Aug. 1, 1942 coupon payments
whether or not the stated policy OPA intended to intervene for¬
Will be subject to such licenses asdamage actions
is "desirable for the company," mally in treble
whenever it was necessary to do may be granted to paying-agents

than to

use

the

war

and post-war

readjustment period to remold our
society in a collectivist or: state
socialist form. ; We cannot combat

ever

is

fees and costs,

,

•

•

'

-

"being done." or "not practicable."
The
NAM president declared

so

to

see

to it that the

remedy was

by the United States Treasury."

-ft

ft

Volume 156

Number 4096

\

THE COMMERCIAL & FINANCIAL CHRONICLE

-'Bar deliveries, both carbon and

■V3 National Fertilizer Association

alloy,

further

are

producers find

Price Index

deferred

and

War

467

Production

ated in

Board has

state of

a

ing definitely
ratings.
Shipments of National
Continuing some steadiness which has characterized commodity
Emergency steels are not suffi¬
markets since the imposition of the General Maximum Price
Regu¬ ciently
large to take the place of
lation, the weekly wholesale commodity price index compiled by
higher alloys and the alloy situa¬
The National Fertilizer Association and made public on August
3, tion is difficult.
remained
unchanged last week.
In the week ended August 1,
"Full allocation of plates con¬
1942, this index stood at 129.3 of the 1935-1939. average, the same tinues to
distribute available ton¬
as in the preceding week.
A month ago it registered 127.1, and a
nage equitably and supply all es¬
.year ago, ^ 113.3. f,The|association's
report continued as follows: ; sential users.
Completion of new
Although there were fractional, declines in several industrial
shipways is adding to total plate
groups as well, as in the farm products group, an advance in the
requirements for shipbuilding. A
foods group was enough to hold the general index to the same
large plate tonnage is being fabri¬
level as it was in the preceding week.
Due principally to higher cated
outside
yards
for
deck
meat prices, the food Index continued its upward trend, with eight
equipment and other units.
items included in the group advancing and only one
declining.; In
"Fabricated structural steel is
the farm products, group increases in livestock and grains were
active
and
deliveries
in
June,
fractionally offset by a marked decline in cotton quotations. The
178,790 tons, for the first time this
textiles group average declined slightly; wool was higher, but the
year
exceeded bookings, 176,359
effect of. this advance on the group average .was more than offset
tons.
Orders booked during first
by other declines, f; Other groups showing small declines were half were
slightly larger than in
building materials, because of lower quotations for linseed oil; and the
corresponding
months
last
miscellaneous commodities, due to lower prices for feedstuffs.
/,
year.
.June
bookings were the
During the week 15 price series included in the index ad¬ smallest since
December and prob¬
vanced and 11 declined; in the preceding week there were 16 deably reflect the ban put on con¬
r

seeking

to

declines

.11

and

advances.

10

j.

1*1935-1939

Latest

Each Group

Group
,

'

1

.

'

Week

July 25

June 20

Aug. 2

1942

1942

1942

1941

127.6

125.1

107.8

V

t

Foods———-i-,,—.

23.0

Farm Products

Fats and Oils-

*

'

■

vN-

■■'-■

S

■

•'

-L-li

n

-

6.1

Building

1.3

Chemicals

and

Fertilizer

,V

materials

Fertilizers
•3

Farm

loo.o
i

-r-

materials

/Vy '//.S

:

:

'Indexes

.1941, 88.3.

__

quirements and in

179.1

150.0

113.8

97.9

;

111.9

tically

119.7

110.4

down."

147.5

1926-1928

base

104.4

104.4

151.6

151.6

upon

a

industry

;

The complaint
as

matter

a

much

of

of

the

restlessness

120.7

117.9

1,

104.1

104.1

'

129.3

-

AUg.

106.4

1942,

12943

100.7

July

99.3

•

127.1

25 ,

and

prehensible.

113.3

100.7;

Aug.

Somervell.

is

It

more

attention

to

There

influential and

are

civilian

,

fight,

as

Steel Production Shows Slight Decline—New

big

understand

heart

that

always

Donald

it,

be¬

ington newspaper headlines — in¬
cidentally all from editors who

of

civilian production, but the ruthlessness with which plants have
been
it.

closed

Maybe

down

also,

doesn't

he

has

from

of

complaints;

,are on the verge of shutting down
has been increasing in the past

few weeks. The trend toward cen-i
tralized

for

scrap

plants that report they; hearths

war

are

known

electric

units,

open

tied up refining un¬

has

in

seat

him

One

up

to

16,000 tons

per

approval; to test the analysis for electric
of thee limination
of
overtime, furnaces. This saves junking the
"and the extending of delivery electric furnace heats in the event
dates
on > lend-lease
orders
are! they should be found insufficient
among recent moves designed to or too high in alloy content to
bolster-the
production
picture.! meet fixed restrictions. Scrap has
Perhaps even the warrant system been hauled long distances just to
may be installed eventually as a get good quality for electric fur¬
naces."
priority measure.
;
"The
exact
amount
of
steel
The American Iron and Steel
which will

be

needed

in

We say that by way of showing
we read the newspapers and

that

pany has melted in open

scheduling, the

come

wonder

us

we
on

writers

confronted
on

Second

Front,

plainly

put

we

should

the

with

question
not

question

switch¬

question of a
but here is the
of

switch

whether

around

Nelson

of

on

versus

Somervell.

the

last; Institute on Aug. 3 announced
There would seem to be no
half of this year for Army, Navy! that
telegraphic reports which it doubt that the American people
and
lend-lease
accounts
is
un¬
had received indicated that the have got to have a victory.
If it
known at the moment, but it will
operating rate of steel companies can't be against the Japs or Hitler,
be less than the astonishingly
high; having 91% of the steel capacity then a victory between Nelson
figure which was computed a few, of the industry will be
and Somervell, and ; this writer,
96.5%
weeks ago in Washington.
Lend-! of capacity for the week
begins wanting to be with a winner ^o
lease delivery
dates have been, ning Aug.
3, compared with 97.0% badly that he can taste it, would
.pushed back, instead of outright; one week
like to pick a winner this time.
ago, ,97.7% one month
cancellation of the orders, thereby
ago, and 96.3% one year ago. This
But
frankly, even the issues
.reducing the requirements of each represents a decrease of 0.5
As we
point here are confused for us.
mill by about 20% for this month or
0.5% from the preceding week. have
; it
presented,
Somervell
and until further notice. The
cur-; The operating rate for the week wants to get charge of all war
tailment
was
largely in semi-; beginning Aug. 3 is
equivalent to production and Nelson insists that
finished steel,, with most of ihe]
1,639,200 tons of steel ingots and he should have the veto power
finished " steel
scheduled
to
be
castings, compared to
1.647,700 over it. Furthermore, the picture
shipped as originally planned,
tons one week
is that
Donald has
a
mind for
.

"The

best

figure v available * at
Washington on the extent of in-*
ventories-

tons,

in

of

the nation.
•is

is

16,000,000

one

ago,
month ago, and

amazed
stocks

year ago.

•

"Steel" of Cleveland, in its sum¬

over; mary

of the iron

and

steel

mar¬

civilian

production, while
Somervell, being just a military
man, thinks not of civilian pro¬
some

duction./

.

j,

.

.

,

Much of this material

It's funny-to have the situation
kets, on Aug. 3 stated in part:
Checking into the, "Rerating '• of
steel
orders/ to presented to us in this way. And
authorities
have
been place most essential needs under off-hand, you would
say,
well,
at the large size, of the the
new higher
designations, is,at there ought to be somebody to

held

panies.

by

It is
firms

the

steel.

a

some

small

mystery how
ever

com¬

such

some

find

obtained

the

...

The

a

rate that order

difficulty
full

range

"The electric furnace alloy steel
situation is rapidly growing tight¬
and

tighter, and more recognition of substitute alloy steels such




in

departments

keeping

of

new

new

or

pace.

orders,
latter

from

AAA

to

watch

out for

and not let the

ratings is Up./

.

represented in

er

1,659,600 tons
1,591,100 tons

not usable.

matter,

of

steel

plants of all types

one

reclassified

It

this

A-l-a, the

being accepted but

no

livery promise being made.

de-

civilian production

military gob it all

-;V
so

happens that

way.

where

1 much

We

Nelson

are

has

we

don't think

unable to
shown

interest in favor of civilian

production.

It is

a

fact that his

Waterway

seemed

the

bill

Atlantic

from

a

com¬

Intra-Coastal

oil

is

the

at

of

to

Florida

(where

needed

propi¬

introduction

emergency

England

New

to

badly
time) by
so

present
the construction of the New York

Bay-Delaware River

end.

'mising link'

in the

section, the
entire

chain

of inland

Price

waterways from Boston
Corpus Christi."

to

Fixing, Costs
Reduce Profit Margins

The Association which has
long
the fight for the construction
of the canal, contends that "if the

led

Atlantic

(Continued from First Page)
dition
costs

to

increased

have

risen

rates,

as

result

a

of
1

greater turnover, the reduced ef¬

Intra-Coastal

had

labor

the

people

completed
and
the
"missing link" had been provided,
board and
need

cerned
for

of

about

While

substitutes.

a

few

continue.
"An

outstanding effect of

the
fairly gen¬
eral decline in profit margins. De¬
price order has been
creases

the

are

noted in about 70%

of

approximately 30%
observe no important change, and
in only one case has improvement
been reported.
Not all the de¬

clines,

however,

are

to the price order.

attributable
In the paper

industry, for example,
and

production

considerably
costs

have

Production
dustries

orders
fallen off

new

have

and unit overhead
consequently
risen.
in

certain

other

in¬

declines

in

margins

are

system

of

remains.

control

Losses in certain products are cur¬
rently being incurred and may re¬
sult in the abandoning of certain
lines.
In some
other instances,
subsidies may be required if sell¬
ing prices cannot be raised. Many

executives, however, are opposed
principle of subsidies. Sta¬

to the

bilization of all cost items is pre¬
ferred.
Where selling prices in
March

were

based

on

low-cost in¬

ventories
previously
acquired,
will
be
encountered
hardships
when higher-cost stocks must be
used. For companies in the high¬
est tax brackets, most of the in¬
crease

in

costs

by

the

taxes

are

borne

is

Treasury;

profits

after

much less adversely
total

taxable

affected than

income.

oil

nor

for

nor

for

domestic necessities; nor the men¬
of a heatless winter."
The

bill

would

provide funds for the

construction

of

15-foot

a

channel

;

between

Bordentown, N. J., and
Sayreville, N. J., to complete the
York

inland

water- ;

system.

The

it is stated, was
Hampton Moore,

measure,

drafted

by

J.

President of the Waterways Asso¬
ciation
and
former
Mayor
of

Philadelphia.

Up Govt. Workers' Pay
It

announced

was

on

Aug 3 that

President Roosevelt had signed a
bill raising the pay of 150,000 gov¬
ernment

employees in the lower

brackets.

The bill

was

sent to the

White House after its adoption by
the Senate on July 27.

Stating
the

that

salaries

bill

the

of

about

increases

86,000 gov¬

ernment

custodial
workers, in¬
charwomen,
uniformed
guards and mechanics, a Wash¬
ington dispatch Aug. 3 to the New

cluding

York

"Times"

said:

"It adds about $15,768,000 to the
cost of the government.

annual

"The

expected in the future if the pres¬
ent

con¬

of

ace

has also been downward.

Further

sea¬

been

scarcity

industries;
facilities;

transportation

a

reports;

the

munition

Florida-New

of

Atlantic

have

now

way

cost

the

throughout the country,

not

and the

necessity of frequent set¬
the loss of the benefit of
quantity extras, and the higher

Waterway

been

ups;

see

very

the

Waterway

if he

is

the

occasion

for

plete

to the front in the

licked."

ing around

"the

tious

but

supply; situations have improved,
the
general experience is that
That is, of course, a fine state of shortages
have
become
more
acute.
This trend is expected to
affairs, indeed.
Not only are we
never

that

In¬

headlines,

the

to

Intra-Coastal

similar

say,
take a

caused

Texas

Jacksonville, the appropriation
therefore being $93,000,000," adds

Nelson, that there

conflict between them.

the

at

he hasn't been
feeding any stuff
to the newspapermen that he had

a

from

along the inland water¬

Atlantic

impresses us about him
is, that in all the agitation,

was

Florida

of the Gulf of Mexico to the

ways

administration, and the thing that

think of

Then invariably
com¬ are informed.
hearths are told: "Don't go overboard
my
friend.
Somervell
month just that,

quality scrap.

oil fields

mostly

over

the

measure

petroleum

carry

military man,' Sovervell has had
plenty of experience in civilian

,

number

emergency

Barge Canal and Pipe Line bill to

a

v

"The

gress

tary's grabbing up everything in
sight, but the record doesn't prove

"won out"

on

Philadelphia. The Asso¬
ciation, pointing out that "Con-,;
having passed as a war

a

Nothwithstanding that he is

across

ciation of

staunch defender against the mili¬

it.

ship canal

Atlantic Deeper Waterways Asso¬

prove

been

a

bay, was
July 16 in Congress
by Representative Sutphin of New
Jersey
and
Senator
Davis
of
Pennsylvania at the request of the

at

nothing else than ficiency of new workers and more
After throbbing along for eight war months at an
There were,
astonishing to win the war, not even the sell¬ overtime payment.
speed, despite maladjustments, the United States armament pro¬ ing of their papers—is that Nelson however, also reports of improved
ducing machine is encountering sharp turns, states "The Iron Age" is one up on Somervell. We seem efficiency as labor became better
.in its issue of today (Aug. 6).
Raw material shortages
Overshadowing all recent develop¬ not to have scored against the trained.
ments, from the standpoint of the metal producing and consuming Axis but Nelson has scored against affected costs because of interrup¬
tions in production schedules re¬
industries, is the wavering of the materials distribution setup, which Somervell.
has been out of balance ever since
We read these headlines and we quiring the shifting of workers
from one line to another; tem¬
the war began, continues this pub¬ as the National
Emergency grades say to important people: "Well,
lication, which further goes on to will be forced upon military au¬ we see where Donald Nelson has porary shutdowns in some depart¬
ments; inability to run long jobs
thorities- In order to obtain good scored over Somervell."
say in part: >
'
would

construction of

introduced

has

highly

thought

authorizing the appro¬
$100,000,000 for the

of

New Jersey, linking the Delaware
River and New York

.

be

may

bill

priation

up

It

men.

The score, so far in the Wash¬

Priority Ratings Crowded-—Mill Needs Cut

A

thinking

com¬

It doesn't deal with

we

tween two

Introduce N. J. Canal Bill

production.

there who think strongly
that increased civilian production
would be the greatest deterrent
against inflation.
- ■
■
■
men

shouldn't

the "global" strategy about which
we hear so much.
It is just a plain

2

in other industries."

upon wages

the

legislative body—has been that no
in Washington was
paying any

which has made

(Continued from First Page)
subject of Messrs. Donald Nelson

112.3

115.3

104.1

were:

117.7,

115.3

automobile producers are ex¬
pected to have a marked influence

being laid deed, he has had nothing to

Washington

105.7

115.3

are

in

the 'Little Steel' companies

and

Capitol Hill—
fact, it explains

on

one

which

From

118.5

120.7

no reserves

upward

explain

post-haste.

back

103.9

151.5

—

Prac¬

139.3

104.4

.

instances

121.6

131.0

120.7

__

some

"

unless placed under control.
The
decisions of the War Labor Board
with respect to the demands made

now

falls short of full capacity.

127.8.

135.4

i
_____

five others not

no

114.7

125.4 *

.

--

_

-

machinery

__

__

drugs

Alt groups combined—™—
on

117.5
133.4

127.5-

Textiles
.Metals.,

:

4.

open

"Currently/ supply of scrap is
more
than
steelmaking re¬

137.3

134.5

127.0

—

of

being sufficient to balance.

147.8

Miscellaneous commodities

in

158.4

111.4

135.9

Fuels

10,8

"

advances

125.4

17.3
8.2

small

159.6

-

Livestock

-

Ago

139.1

160:7

181.2

Grains',
■

.

pur¬

require¬

number

a

137.1

—'

Li—.

Cotton

''j V

■

139.6

Oil—

Cottonseed

Ago

off

cut

repair

hearths last week and production
was
reduced
in
five
districts,

Year

Aug. 1

,

'

'

25.9

-

Month

Preceding

Week

Bears to the

Total Index

■,

ments

100]

«

%

;

"Simultaneous

Compiled by The National Fertilizer Association

.

.

war

poses.

:

WEEKLY WHOLESALE COMMODITY PRICE INDEX
*

struction for other than

for

result of the

balanced program, usually
converted that particular

about

,

were

demands
a

and the future trend of
wage rates
is expected
to continue

WPB,

of

in

price order has been observed by
the large majority of executives

been converted to
war, he let out a
howl.
But then Donald's

instead

lessening

increased wages as

difficulty promis¬ every time some young reporter
on
even
highest found an industry that had not

Unchanged

felines and 15 advances; in the second preceding week there

"No

oper¬

agitation where

effect

main

of

the

new

law will be to:

"1.
for

Establish

$1,200 minimum

full-time

all

in lieu

a

of the

adult

workers

present minima of

$1,020 and $1,080.
"2.

the

Increase

hourly rate of

part-time charwomen from 50 to
55

cents,

men

"3.

from

for

and
55

head

charwo¬

to 60 cents.

Establish

a

$1,500 minimum

for building guards

in lieu of the

present minimum of $1,200.
"4. Establish a $1,860 minimum
for journeyman

mechanics in lieu

of the present minimum of $1,680.
"5. Establish
a
top
entrance

salary of $9,000 in lieu of the pres¬
ent top entrance salary of $8,000
under the classification act."

The Bureau of the Budget, it is
said, favored the enactment of the
measure.

.

i

i

•

.

...»

i

i

4

'

116.61

11331

108.16

106.92

116.61

113.31

106.92

116.61

113.31

95.92

111.44

114.27

91.77

96.07

111.44

114.27

"The

•

to

due

increase

rise

a

91..77

96.07

111.44

114.27

91.91/

96.07

111.44

114.46

108.16

91.91

96.07

111.44

114.27

118.16

106.92

116.61

113.31

108.16

91.77

95,92

111.44

114.27

106.74

116.61

113.31

107.98

91.77

95.92

111.44

114.27

war

118.22
118.22

106.92

116.61

113.31

108.16

91.77

95.92

111.62

114.27

L

118.22

106.74

116.61

113.31

107.98

91.77

95.92

111.62

114.08

118.23

106.74

116.41

113.31

108.16

91.77

95.92

111.62

"114.27

„

_

:

118.23

_

106.74

116.41

11331

108.16

91.62

95.77

111.62

114.27

118.23

_

108.74

116.41

113.12

108.i6

91.77

95.77

111.44

114.27

95.77

111.44

114.27

118.22

106.74

116.41

113.12

108.16

_

118.22

106.74

116.41

113.12

107.98

91.62

95.77

_

118.22

106.74

116.41

113.12

107.98

91.62

95.77

_

17

91.62

118.27

,111.44

114.27

111.44

114.27

.

106.74

116.41

113.12

107.98

91.77

95,77

:111.44

15-

118.22

106.74

116 41

113.12

107.98

91.62

95.77

111.44

114.27

*, Z;

14

118.19

106.74

116.41

113.31

107.98

91.62

95.77

111.44

114.27

'

13

118.28

106.74

116.41

113.31

107.98

91.62

95.77

111.44

114.27

118.26

106.74

116.41

113.50

107.98

91.62

95.77

,

111.25

114.27

116.41

113.31

107.80

91.62

95.77

,,

111.25

16

,

..

'

_

_

_

11

_

114.27

118.26

106.74

118.31

106.74 ■1116.41

113.12

107.98

91.62

95.77 + 111.44

118.25

»:

106.56

116.41

113.31

107.80

91.48

95.77

111.25

106.56

116.41

113.12

107.80

91.77

95.77

111.25

113.12

107.98

91.48

95.77

111.25

114.08
114.08
114.08
114.08
113.89

107.98

91.34

95.77

111.25

113.89

91.19

95.62

111.07

114.08

9.1,19

95.62

111.07'

8

_

•

.118.22

.7.
•

118.05

106.56

116.22

3.

118.09

106.56

<116.22

2

118.12

106.56

116.41

113.12

107.98

106.39

116.41

112.93

107,80,.

6

.

■

_

118.18

1"-

12

110.88
110.88

113.89

95:62

110.88

113.50

95.77/

110.70

91.77

96.07

110.70

91.91

96.07

110.70

113.50

92.06/,

96.54

110.88

113.70

106.21

116.02

112.75

107.44

91.19

115.82

112.93

107.27

■91.34

106.39

116.02
1/16.02

107.44 /

112.93

,106.56

112.93

107.62

113.31

116.02

106.74

107.44

113.31
113.70

106.74

116.22

113.12

107.62

92.20

96.69

110.70

116.22

113.12

107.44

92.06

96.69

110.70

106.74

116.22

113.12

107.62 ;

116.41

113.70

107.62

118.06

106.92

116.41

113.89

107.62

92.35

106.92

116.22

113.70

107.62

92.20

96.69

92.20

110.70

118.20

Z,

30

106.74

116.22

113.50

107.62

1

110.88

FEDERAL

100,39

115.63/113.31

107.62

-

97.16

110.70

114.08

/,

97,00

110.52

97.00

110.34

113.50

96.85

110.15

113.31

■'.'•••

Z

■118:41

Producers'

97.31

92.50:'1

97.47--

111.62

114.27

95.32

109.60

112.75

durable

106.04

115.43

-112.75

107.09

108.52

118.60/116.02

109.60

92.50

97.78

112.56

116.4)

t

105.52

116.22

112.00

106.04

89.23

95.62

109.42

111.62

Distribution

,

,119.50

:■/ Z

1940-/'

/,:/'• 4^/-/'//-/,;•

■/" ///"/:,/''>///';' ■"/-/
107.80 118.40
115.04
108.52

.92.06; >97.62

? 112.75

103.30 ■: 116.02

91.91

108.88

,85.33

103.30

110.70

a
given

durable

>41"

Z' fl > ■ *

Aaa

rate >

2.82

2.99

4.01'

3.09

2.94

3.09

2.94

1942

3.09

2.93

2.82

2.99

3.27

4.28

4.00

3.09

3.27

3.35

2.82 V

2.99

3.28
3.27

,

,/t 3.35

2.94

4.01

3.08

2.95

4.01

3.08

v

3.35

Z

■

4.29

3.00

3.27

4.30

3.00

2.83

3.27

3.28

4.30

2.83

3.35

20

4.02

4.30

V*

3.27

3.00

2.83

r,

4.02

3.09
3.09

4.02

3.09

2.94

4.02

3.09

2.94

3.09;

2.94

3.09

2.94

3.09

2.94

•4.02

3.10

2.94

3.10

2.95

3.09

2.95

3.00

3.28

ww_~-w—

2.83

"3.00

3.28

4.29

3.00

3.28

4.30

2.99

3.28

4.30

13

ZZZZZZZZZZZZ:

2.99

3.28

4.30

4.02

2.98

3.28

4.30

:

2.83

3.35

2.83
2.83

3.35

11

v

■V

2.83

.

4.30

•

"

4.02
■

4.02

3.35

2.83

2.99

3.29

4.30

'3.35

2.83

3.00

3.28

4.30

4.03

3.36

2.83

2.99

3.29

4.31

3.36

9.

2.83

3.00

3.29

4.31

3.28

4.31

8

'//•:/1
../■•v.;

'

/

2.84

3.36

I

'

/

3.00

3.00

2.84

32

3.36

2.83

3.37

.2.83

3.01

June

26

19

3.37

—

/•

-

-

:

.''.12

>2.85

3.38

3.29

-

4.02'

:

-3.10

2.96

:

103

*96

110

114

116

119

113

116

128

128

♦132

difficult

preliminary.

4.33

3.02

3.31

4.04
•>

4.33

*

3.12

''■>Z ; "/

Output For Week Ended Aug. I, 1942

that

3.12

:Z'■/ Z- •■/;>

3.12

* 4.32

4.02

3.13"

//■•/,//'/

,

——

4.29

4.00

3.13

6.7
7.5

8.9

States—

3.36

,2,85

/ 3.01

3.31

4.28

4.00

'3.13

Mountain—.;—i_—_

Rocky
Pacific

3.36

i+T

3.30

4.27

3.97

3.00

3.30

4.26

3.96

3.00

3.31

/

4.27

3.96

2.84

3.00

3.30

V

4.27

3.96

3.13

2.97

3.95

3.12

2.96

3.93

373

2.95

«

24

3.35

-V,-

17-

3.34

2.83

2.97

f 3.30

-/•

10

3.34

2.83

/ 2.96

3.30

4.25

■

3.34

^_Z—

3.35

/ 2.84

Feb." 27

ZL-11

3.37-

2.87

30

:

3.34

2L2.

-

11.8

States

12.6

://

•

'

3.13

'

2.97

,

/ 2.98,

,

2.97

3.13

3.94

3.14

2.95

4.28

3.94.;

3.15

2.98

4.30

;Z

3.95

3.16

2.99

Week Ended-

May

May 16

11941

1942

3.30

2.99

•

3.29

2.97

■

zz

4.27

3.92

.

"

First Dutch Reformed Church and

2.97

3.14

'

3,365,208

;

1942__—

3.39

2.88 '

3.02

"3.33

/ 4.37

4.05

!?• 3.19

1942.__/.

3.34

2.82

J

.2.95

3.27

4.24

3.91

.308

2,503,899

1,429,032

+12.0

;• 2,515,515

1,436,928

1,698,492

t

+11.5

1,435,731

+11.2

2,550,071
2.588,821

1,704,426
1,705,460

+ 12.5

2,477,689

1,381,452

1,615,085

9.6

2,598.812

"1,435.471

'1,689,925

3,011,345

1,425,151

3,379,985
3,322,651

2,954,647

Jun

6

3,372.374

3.076,323

Jun

13

3,463,528

3,101,291

+ 11.7

2,664,853

1,441,532

3,433,711

2,653,788

1,440,541

9.5/' 2,§59,825
2,425,229

1,456,961

.

;

-

+

Jun

20

3,091,672

+ 11.1

27

3,457,024

3,156,825

+

July

4

3,424,188

-2,903,727

o

3,428,913

3,178,054

July 18

3,565,367

3,199,105

July 25

3,625,645

3,220,526

1

3,649,146

3-42

,2.86

■*' 3.06

3.39

'4.47

1941__Z>-

3.25

2:72

2:65

'■3.19

4.24

•

3,263,082

>12.6

determination"

back freedom

1,592,075

to : bring
the world.
The
con¬

United Nations and called for

1,711,625
1.727,225/ tinued effort.
1,723,031

1,426,986

2,762,240

to

in /reply/ expressed

Queen,

1,440,386

2,760,935

++1.8

.

1.723.42P, fidence* in ultimate .victory of the
con-?

1,724,728

;

1,433,993

.

:

.

1,702,50)'

t

1,415,704

,+ 7.9... 2,651,626
Z+11.4 : 2,681,071

'

closely

were

the early

"grim

1,699,227
.

1,341,730

+17,9

:■*

V,'

•

Z

'

/

2.93

1941

1,688,434

+12.2

:

3,040,029 i

'3,356,921

—

1929

■1932

1940

,

party,

associated
history of Albany
and spoke of their notable con*
tribution to the cultural, economic
and political life of the United
States.
He
also
praised
their
with

Over 1941

the royal

Governor Lehman related that the

/
,

welcoming

3.02

Low

In

Dutch

3,003,921

,

the city hall. z?*

later visited

7.9

11.4

i

May 23

Aug

•

High

4.8

385

/'//

2,944,906

3,304,602

2
9

July 11

'

•'

6.1

'Z19.4

/

guests

Lehman at

Mrs.

spending the Summer, the Queen
and Princess first stopped at the

4.1

14.6

;

luncheon

and

- Motoring
Lee, Mass., where they are

from

* Z/ZlZ; 2.9

Z

the

were

the Executive Mansion,

3.6

*-18.5

and

Ju¬

Princess

Albany, N. Y., on July

of Governor

?;> 1942

>

4.26

3.30

27

Crown

and

liana visted

% Change

May

ROOSEVELT"

D.

Queen Wilhelmina of the Neth¬
erlands

DATA FOR RECENT WEEKS (Thousands of Kilowatt-Hours)

Jun

2.84*

2

3.30

2.97

2 84

27

■

Mar.

/

Z /jZ

'

Navy—.

Wilhelmina Visits Albany

July 11, *42

May 30

4.26

Apr.

2.97

3.12

2.99

2.84'

•Z
/

:

7.1

8.1:

2.98

Z

FRANKLIN

-

United

the

of

words

done.'*/ *•'/:,'/ ZZlv /.Z:/-,"'/; z/^z

"Always sincerely your friend,

'"!//: /'■ 3.3

9.0

/./■;//■:/'"■/ 9.7

7.6
2i.5

23.8

Coast———.

Total

the

"In

———

/■■:

6.6

VZ

5.6

,20.0

Centrali:___i^i_________j

Southern

'•■•>/

8.6

2.97

2.84

bassadorship.' ; ;:Z;V/5/:z^/';Z//'Z. >>

'

—

*

2.99

3.31

that

policy in re¬

'well

2.98

3.32

2.85

";//;//

PERCENTAGE INCREASE OVER PREVIOUS YEAR

Middle Atlantic

2.96

3.01

3.35

second,

and,

good agree¬

its current weekly report, esti¬

-Week EndedMajor Geographical Divisions— Aug. 1, '42 /; July 25, '42
July 18, '42
4.3
New England.
6.4,
4.9
;://

>

/

time

the

v!/';.1../ Z--///Z//'/'>

'2.9.6

4.04

4.03

4.34

3.30

wa^fin 'whicli

spect to France during your Am¬

West

3.29

in the

to

you

of;/my -great

there has been such

Central Industrial

3.01

want

have carried out an extremely
difficult
task
at
an- extremely

110

121

I
all

you

91

9497

118

of

first

satisfaction
Aver.

Dec.

*132

99
119

2.96

3.01

3.35

Nov.

91

2.95

:

1

Jan.

92

3.11

22

'

91

3-U

Z

8

Sept. "Oct.

Aug.

91

>

.

f"

Distribution

Primary

./..J--U'lwTZl ^'. 4
doing

so

know

July

4.03

2.85

15

"In

110

■i)/

94

4.03-

2 86

.-

;113

United

the

of

and Navy, I accept

Army

France.

production of electricity by the electric light and
power industry of the United States for the week ended Aug. 1, 1942,
was 3,649,146,000 kwh., which compares with
3,263,082,000 kwh., in
the corresponding period in 1941, a gain of 11.8%. The output for the
week ended July 25, 1942, was estimated to be 3,625,645,000 kwh., an
increase of 12.6% over the corresponding week in 1941.

2.96

3.10

'

reply said:

resignation as Ambassador to

your

94

;

V

The Edison Electric Institute, in

,2.95

3.10

4.02

3.37

3.38

>—

:.

5

May

113

June

mated

2.95

3.10

4.02

•/

29

V.

4

110 /

110

88

4.33

3.01

•

States

Aver.

Dec.

103

May

4.33

3.28

Z

2.84

•

*114

Nov.

400

87

4.02

;

2.84

.

3.37

,

v:

*113

,116:/

•

.a

Apr.

4.32

3.28

'

3.00

i

;

3.36

mander-in-Chief

Shows 11.8% Gain Over Same Week In 1941 /

Exchange Closed

4

>

,

•

4.02

io

■

113

i 96

95

86

95

2.94

2.83

3.35

112

94-

Mar.

113

2.94

4.02

3.35

Z. ,' 3.35

Z 111

iv
Oct.

Sept

Aug.
-

87

Electric

-.2.94

"

3.35

,

'3.08.

in

-

ment in our national

2.94

ZIZZZIZIZIIZ

•••■'

:

3.09

16

17

92

,

Feb.

♦Indexes are

"

4.02

WILLIAM D. LEAHY."

President

The

83 /

2.94

2.99

-

2.83

-

3.35
.

v

2.83

3.35

<

2.94

3.08

/

2.99

3.09

4.01

v

:/>24/;>____r_w_*>V

4.01

4.29

■, /; 25

3.27

4.01

3.28

2.99

4.29

.4.29

2.99

respectfully, /Z", </.;

Most
)>;

2.94

3.09

4.29

2.99

2.82
2.82

accept, Mr. Presi¬

2.94

i

4.29

2.82

3.35

3.34

85

89

90

1941

4.00

4.00

4.29

:

July

93

89

.

;

.4.00

3.27

//■///

Jan.
1940

4.29

-

3.34"

.

114

2.94

2.94

'

•

114

4.28

3.34

23-'w___

115

3.27

3.34

•'

107

3.27

2.99

2.83

2.82

28

3.09
3.0.9

■4.00

105

June

90

1.13

103

May

105

90

Indttf

P. U.

R. R.

:

Apr..

Mar.

91

2.98

3.34

.

4.29
4.29

Am¬

as

.,

you

z.

132

,

//

my

137
112

132

resignation

my

portant post.

/ 103

111

128

tozthe

time

any

appreciation of the high
have conferred upon
by appointing me to this im¬

dent,
me

i

at

"I beg you to

45 /

>131!,V

;

- /;VZ/;•:•/
of resig¬

defense, I beg to tender

bassador to France.

88

112

111
114

available

be

•

129

>

Vichy.

"My Dear Mr. President:

125

101

;4 103

Charge

a

"In order that my services may

45

.

by

nation follows:

175

///Z//Z/'Production and Trade ZtV/Z/Z'

93

2.98

2.82

3.34

31
29.

3.27 -/
3.27

/ 2.99

2.82

Baa

A

Aa

.

3.34
3.34

—

,i

July

Corporate by Groups

Corporate by Ratings

47 :i

Since

States 'affairs

handled

Admiral Leahy's letter

below,:/;:';:::;/:'://Zv:' iZ/Z/zZZ/Z//://1///>////>>/>/'/'^ Z/t//;/ ZZ/Z'/Z-'/ /,://////// :;"/' vZ>/.

1942

Prices)

Closing

Individual

/ Avge.

4
3

been

d'Affaires at

152

,/•

following the return

.

1940

'

1* Average

Aug.

on

Corpo-

Dailv

have

had

Leahy

/

this country for

to

United

the

125

<

the

in

of Pierre Laval.

power

honor

89

goodsiZ//--105

nondurable

1941

(Based

/., 1942-

to

87

126

Am¬

"My Dear Admiral:
V.r.i/:/»*///
117
115
116
services
102
"In calling you to active duty
Staff: tothe Com-y
adjusted individually for estimated long term trend and seasonal" varia¬ as Chief of

Jan. / Feb.

BOND YIEJLD AVERAGES+,

MOODY'S

•

consultation

June

123

;

-,-167

163

119,/

Admiral

been recalled

tion; those reported in dollars are also adjusted for price changes.
tThese indexes have been revised January, 1940 to date.
The revised indexes are

..

115.72

148

108
115;/'

goodsl—

consumer/^/:/__r^/.^-„--,-.-,->^i^/- 104

to

/ ' Series are

115.24

112.00

120

125

goods

goods—total,
distribution

Miscellaneous

t Year ago

120

named

be

;

: -

future due to the present un¬

countries.

114

146

Z

,

a new

settled relations between the two

"June

113

•

122

Nondurable

Primary

•Mayf

likely that

bassador/will
near

-1942-

/;./ ^Durable goodsr-totai

90.63

115.89

2 Years ago-

Ambassadorship."

It is not

national

113

115

goods—total

Consumers'

115.90'

1941__

your

also

and

,

herewith

April

an

"there has been such
good agreement in our national
policy in respect to France during

trend

long-term

112

trade

Producers' /nondurable

120.05

1941_—

1941

estimated

goods—total

Consumers'

113.70

110.52

108.16

114.08

116.61

106.92

==

—■

Consumers'

1942__/__

3,

92.06

107.80

113.70

116.22

106.92

117.08

1942:':

4,

,

Trade—100

///:/Z.';/>,yv///; June

■

of production and

Production

.

-w„-

that

DEPARTMENT

YORK—RESEARCH

NEW

OF

and

Production

of

1941

•/

.

fIndex

114.08

91.62

r-

BANK

RESERVE

Indexes

113.89

91.91

116.34

27

27

said

loadings figures led

car

time"

difficult

tremely

rapid expansion in ton-miles per car loaded that has recently
taken place reflects a much more intensive use of railway equip¬
ment under the pressure of the war emergency. ///Z /Zr:././/////;////

Producers'

Mar.

of

use

"carried out

had

Admiral

the

extremely difficult task at an ex¬

to substantial understate¬
ment of the volume of freight being handled by the railroads. > The
the

//,. -.;//

■

.

accepting the resignation, the
expressed his
"great
satisfaction" at the way in which

production and trade and the in¬
dex of primary distribution have been revised back to January,
1940. v These changes are occasioned by the substitution of a se¬
ries on revenue ton-miles of railway freight for the two series on
railway freight car loadings.
For many years ton-miles of freight
per car loaded increased gradually, through more rapid movement
of trains, employment of larger cars, etc.
As long as ton-miles
per car loaded increased gradually, car loadings provided a satis¬
factory measure of railway freight traffic for the purposes of the
indexes, since ton-miles expressed in terms of estimated long term
trend would have shown a fairly close resemblance to car load¬

that

Army and Navy, as indi¬
our issue of July 23, page

President

The* general index of

"Note:

.

113.70

96.85

92.06

106.92

Am¬

as

In

on

maintained.

store systems were relatively well

while sales by chain

113.70

118.10

Feb.

•/■;/./ZvZ//;;Z-;Zf

.contracts.; ■-.//

113.70

106.56

117.80

______

operation
r-:"- //Zv' >///■/ .. /.;/■//,active

into

swung

very

118.08

2

Aug.

-

I-V

117.79

_

10

Aug.

...

117.90

17,

,•

95.47
95.47

117.89

_

_

24

Low

91.05
91.19

118.33

_

8

1

Low

107.80J
107.62

\

-

15

High

112.93
112.93

118.35

22

Jan.

116.22
116.22

118.33

._

May 29

Apr.

106.39
106.39

,118.38 ,106.21

_

.5

plants

ings similarly expressed, • In the past year or two, however, diver¬
*113.89 gent tendencies between the two series have become so marked

118.14

.

19

.

113.12.

118.33

June 26

/

Closed

Exchange

4.

z

converted

or

113.89

'

!

constructed

the

276.

■/./ /"There was a further slackening in the volume of retail trade
in June, seasonal factors considered, but the decline was less pro¬
nounced than in the four preceding months.; Sales by department
stores and mail order houses declined more than usual in June;

_

of Ad¬

Leahy

cated in

gain in production during June was associated with a further sub¬
stantial increase in the output of producers' durable goods, as newly

108.16

108.16'

113.31

20

High

of

Most of the

113.50

,/

July 24

on

resignation

William D.

miral

and June was

May

between

113.50

> 18

:-z:/

index

total

the

116.61

21

,

in

productive activity to a new peak.

in

116.61

22

.

President Roosevelt

accepted the

of estimated

23 >

-

,

index

monthly

4" V» /!3i

14"

.116.41

'

,

nAW\Y\l l4* is *41

A

106.92

24

v.'

,

/4

106.92

27

;//

nw

106.92

•

J.

A! I AW

118.13

25

,

V\V*A /-J 11

118.11

28
■

'

•£

118.12

29

-

A

-

-

30
'

,'!■

Indus

114.27

91.77

108.16

,

•

■**

_

July ,1?

.

P.U.

111.44

91.77

108.16

118.10

-

It. R.

96.07

Baa

.*

106.92

118.03

-

1

'A

Aa

*

,

117.90

_

3

Aaa

rate *

Bonds

4-L1

June, the Bank an¬ bassador to France in order that
months have been he may assume his new war
Admiral Leahy has been
considerably revised to take account of the substantial increase that duties.
has occurred in ton-miles of railway freight carried in comparison appointed Chief of .Staff to the
with the number of cars loaded, says the Bank, which states:
President as Commander in Chief
*

Corporate by Groups •

Corporate by Ratings •

Corpo¬

,

The

/MA

/%

long term trend for May (revised) to 114 for
nounced on July 27.
The indexes/ for recent

PRICESt

BOND

on'Average Yields)

(Based

Aug.

-

Avge.

V. S.

Govt.

Averages

—

•

,

1U

of production and
Federal Reserve Bank of New York rose from 113%

nw* mum

and bond yield averages are
•

MOODY'S

1942—

A1 J

J

1.

tables:

given in the following

Daily

J

_

„

computed, bond prices

Moody's

l

_

„

Resigns As Ambassador

Reserve Bank Index Shows Advance In June
trade computed at the

Moody's Bond Prices And Bond Yield Averages NY
.

Thursday, August 6, 1942

FINANCIAL CHRONICLE

THE COMMERCIAL &

463

High

4.03

3.20

.3.89

,3.03

'

"Low

,

■

3.08
2.83

Yearly

1 Year ago

4,

Aug.

2.73

3.29

1941 —

3,

Aug.

3.25

-2.90

4.26

'

3.90

3.06

2.89

;

'■

2.85 *

1940__,_"—3.55

>

3.55

3.02

"These prices are computed from average

Moody's Common Stock Yields
average

MOODY'S

4.28

3,23

(33/4%

coupon,

or

the

maturing In 25 years) and do not purport to show either the average

average

movement

of

actual

price

quotations.

They

merely

serve

to

of

more

comprehensive-way the relative levels and the relative movement

yield averages the latter being
tThe

in

a

WEIGHTED

AVERAGE YIELD

(125)

ON

February,

1942

.

7.2

.

(25)

7.4

7.7

'

the issue of Oct. 2r 1941,

page 409

,

March/

1942

/__/

7.7




1.

.i

:

'■

.

•/■

8.2 :
8.3

.

Tuesday,- Aug.

4.5%

7.2 %

Two weeks ago,

5.6

4.6

7.1

Month ago: July 3______

6.0

5.0

7.7

Year ago,'

.

■

7.8

1941

6.1

-

-

■

■■•-

,

•

-

5.3

7.8

8.2

5.7

4.9

8.4

5.6

4.3

5.5

4.7

•

•
"

/;

'7.7
■*<>

8.2

J

1

Aug. 2_______—;. 230.1

Monday,

(200)

'"7.8
■

229.6

Saturday, Aug.

Yield

(10)

6.7
6.1

229.9

270.0

5.3%

:
'

8.5

8.9

,

___!

2''0,4

•Insurance

6.4

.

June, 1942 '
!
July, •1942 __ww—
'■

•

•

7.7

29__'_^

(15)

Banks"

,

7.6%

7.2%.

* 229/7

28__/__

July

Friday, .July 31

COMMON STOCKS

200

Utilities

(25)

7.4%

January,.-1942

May,.. 1942

computing these indexes was published

Wednesday,

Average
Railroads

Industrials

April,. 1942

the true picture of the bond market,

latest complete list of bonds used in

Tuesday, July
Thursday, July

*

illustrate in

Commodity index

1929 to 1941 inclusive and

3.13

yields on the basis of one "typical" bond
Month-

level

years

11, 1942 issue of the "Chronicle."

.....

4.76

"yields in the

monthly average yields for 1941 will be found on page 2218 of the
June

2 Years ago

f

//;

r

.

.6.9

1942
>

6.4

;c..

July 21_w_

_i.__

.

•

230.6
231.6

/."_

1

232.4

Aug. 2__2(2.7

High—Sept.
Low—Feb.' 16___.

6.6
"

3_w

219.9
171.6

High—April 9____

Low—Jan.'

fit.■

234.0
/

2

trZZ

'vi'i

220.0

THE COMMERCIAL

Number 4096

yolume 156

Daily Average Crude Oil Production For Week
Ended July 25,1942, Off 22,800 Barrels

materials

will

adjustment

gross

Further details

650, barrels.

received

from

refining

,

,

DAILY, AVERAGE .CRUDE! QIL PRODUCTION

i

•1<V7

iy'j

i dations

Oklahoma

'Kansas1..

283,200

t3,550

Panhandle Texas

+

84,200

East

Central

East

Texas

Texas..

w:

;

.350

850

1,214,400

Total

Louisiana

70,823

1,145,950

1,428,550

900

93,500

78,400

+

5,750

223,150

236,100

+

6,650

316,650

314,500

100

72,400

73,550

:'

72,350

5,850

71,350
277,400

340,650

117,950

1,200

18,700

'91,200

112,600

Montana

>'
*'

....

104.6

!86.7

.+ 0.5

^+ 0.87 + 21.6

98.7

99.3

84.6

+ 0.6

—0.4+16.9

118.9

118.9

109.7

96.8

96.8

79.6

79.5

79.2

*103.9

*104.0

*104.0

110.1

110.2

110.3

110.0

96.4

97.2

97.2

104.4'

104.4

104.5

Building materials

41,500

.91,800

Chemicals and allied products

Housefurnishing
Miscellaneous

50

21,700

19,400

450

6,650

3,103,300
739,500

-

5,500

66,500

Total United States

20,900

2,913,900

1,900

675,750

22,800

3,589,650

}

3,690,600

—0.1

0

8.3

+

—0.5

+12.0

+ 0.4

+

0.1

•—0.1

+

5.4

102.7

—0.1

+ 0.1

+

97.2

85.0

—0.8

—0.8

104.5

95.5
;* 81.8

89.6

90.0

90.0

99.8

99.6

,

86.4

7.2

+13.4

0
,

—0.T +

9.3

0

,

—0.4

9.5

+ 0.3

+

+15.5

+ 0.2

92.6

92.8

92.8

92.8

98.8

—0.2

*98.8

*98.7

*98.9

*98.8

90.5

;+o.i

or

—0.2

+

5.5

++0 " .+

9.2

:

*96;9

*97.0

*97.1

89.3

may

*95.9V 4*96.0 : *96.0 i : 90.0

*95.9

Securities

summary

account

—0.2

+

RUNS

TO

STILLS;

PRODUCTION

California

OP

Qil'

!; 0

GASOLINE; STOCKS

OIL, WEEK ENDED JULY 25,, 1942.

the

and

Exchange 6eSd-Lbt Trading

Exchange Commission has

public a
for the weeks ended July 11 and 18, of complete figures
the daily volume of stock transactions for the odd-lot

of

all odd-lot

New

York

Week Ended—

dealers

Stock

and

specialists who handle odd lots

Exchange, continuing

series

a

of

current

'

i

,

:

-

(Customers'
of

Number of
Dollar

.

:

>

h

-

-

in

this

section

include

reported

Gasoline
>

■

Crude

Poten¬

tial
.District—

Rate

,

;

(Customers'
Number

of

328,337

227,564

^.$8^16,664

7

Dealers:

Sales)

'Customers'

sales

other

total

190

101

12,885

8,785

13,075

;

Includ.

>.

sales—

sales.

and Un-

of Gas

of Re-

Oil and

sidual

% ReDaily
% Op- Natural finished Distillate
Fuels
porting Average erated Blended Gasoline

Fuel

Oil

Gulf,

ana

-

North

.

Arkansas

Inland Texas..

and

"

.

.
.

'• 2,383

'

.

r.

_

■

,

17,424

398

574

11,648

54,253

V174

84.5

156

89.7

471

784

84.9

760

96.9

2,575

418

81.1

354

84.7

1,223

Rocky Mountain

138

50.7

94

68.1

276

California

787

90.9

624

79.3

1,388

15,419

4,684

86.9

3,658

78.1

10,864

,t82,281

35,966

77,816

4,684

86.9

3,582

76.5

10,963

84,069

35,176

77,230

12,903

85,073

42,126

Appalachian
Ind., 111.,

Ky

Okla., Kansas, Mo.

U.

Tot.
v,

basis

Tot.

U.

basis

U.

S.

S.

July
Bur.

basis

V

S.

B.

July

July

of

25,
B.

18,
of

26,

>

565

580

4,424

3,507

1,499

1,478

~

M.

1942

of

'

70.1

4.931

17,432

39,082
2,741
15,532
7,305
2,202

1,670

89.7

M.

1942
Mines

.

1941

3,932

j

91,466

"At the request of the Office of Petroleum Coordinator.
tFinished 74,628,000 barrels, unfinished 7,653,000 barrels.
at bulk terminals, in transit, and in pipe lines.

J At refineries,

'Customers'" other

Customers'

Bureau

of

Labor

Statistics, U. S. Department of Labor,
announced on July 30 that except for a sharp advance in the live¬
stock market and seasonally higher prices for • citrus fruits com¬
modity markets continued comparatively steady during the week
ended July 23.
The Bureau's comprehensive index of 889 price
series rose 0.1%
during the week, remaining within the narrow
range of less than 1% which has prevailed since the imposition
of the General Maximum Price Regulation in May.
This compares
with an advance of nearly 5% from early in the year to late April.
The general index now stands at the same level as for last month
at this time but is nearly 11% higher than a year ago.
The De¬
partment also states that average prices for foods in primary markets
rose
0.6% during the week and farm products advanced 0.5%.
On the other hand, revised ceiling prices for inedible fats and oils,
at 10 a pound below the prevailing market level, caused the index
for chemicals and allied products to drop 0.8%.
The Bureau makes the following notation:




common

the
vic¬

tory and post-war economic co¬
operation. Previously, agreements
made

were

with

Great

Britain,
Poland,

Belgium,

President

United

the
King in the
Majesty's visit to the

and

of His

course

:

the

States

there

has

been

a

general review of the relations be¬
the

tween

^United

States

and

Yugoslavia, and the problems of
special
concern
to
these
two
United

Nations,

attention

with

the

to

particular

conduct

of

the

-Dollar^value

rf--J+■

Round-lot Sales by Dealers:
Number
Short

of

J

-

tOther sales

*1;

of

on the part of
people of a very
special friendship for the people
of Yugoslavia,
who have made

lot

"We

!;

v'

————i-

:

"sKort
orders

reported

210,657

85,030

prosecution of the war; that like
the fine achievements of General
example

exempt'ttare reported with
and

sales

"other

to

liquidate
sales.'' ^>

;

nations.

defeat

"In

a

sales."

long position
1m

tSales

which

is

to

less

offset
than

a

increases over last week,
v;
construction to $6,106,820,000, a gain of 61% over the volume for the 31-week period in 1941,
and already in excess of the $5,868,699,000 reported for the entire 52
weeks of last year.
Private work, $403,448,000, is 51% below a year
ago, but public construction for the period, $5,703,372,000, is 92%
higher due to the 145% increase in Federal work.
Construction volumes for the 1941 week, last week, and the cur¬
The current week's total brings 1942

rent week are:

__

$173,094,000
14,967,000

Municipal-

In

the

classified

i

158,127,000
31,272,000
126,855,000

construction

:

July 23,1942
$148,171,000
10,967,000
137,204,000
8,717,000
128,487,000

groups,

the

contributed to the 75% gain over last week are

July 30,1942
$259,800,000
14,888,000
244,912,000
10,034,000
234,878,000

classes of work that

waterworks, sewerage, industrial, commercial and public
buildings, and unclassified construction.
Subtotals for the week in
each class of construction are: waterworks, $4,195,000; sewerage, $2,694,000; bridges, $446,000; industrial buildings, $5,330,000; commer¬
cial building
and large-scale private housing, $9,200,000; public
buildings, $163,757,000; earthwork and drainage, $670,000; streets and
roads, $17,172,000, and unclassified construction, $56,336,000.
New capital for construction purposes for the week totals $6,860,000. This compares with $73,716,000 for the week last year. The
current week's financing is made up of $5,445,000 in State and muni-,
eipal bonds, 1,000,000 in RFC loans for public improvements, and;
415,000 in corporate security issues.
New construction financing for the year to date, $9,500,250,000,
is 90% higher than the $5,007,275,000 reported for the '31-week period •
are

last year.

ister

of Foreign Affairs of the
Royal Yugoslav Government, has
participated, attention has been
given also to the principles which
should
guide-our
countries
in

establishing

under

the

of

enduring and pros¬
a just applica¬

an

declaration

United Nations and the

the

of

principles

of the Atlantic Charter.

"Accordingly, the Foreign Min¬
ister of Yugoslavia and the Secre¬

tary of State have
on

today signed,

behalf of their governments, an

agreement on the principles ap¬
plying to mutual aid in the prose¬
cution of the war, pledging their
material and spiritual resources to
a

victory of the United

common

Nations."
The

visit

United
our

././x..;
of King

States

Peter to the

referred to

was

issue of July 2, page 22.

in

Ac¬

official party of
and personal
aides, King Peter left Lake Placid,
N. Y., on July 22 after a ten-day
incognito visit. He had spent much
time touring the Adirondacks be¬
hind the steering wheel of an au¬
companied by
Ministers

of

tomobile after

an

State

a

visit to Canada.

waterworks, sewerage,

industrial, commercial and public buildings, earthwork and drainage,
and streets and roads. Participants in the 50% increase over the 1941
week

these discussions, in which
Nincitch, the Min¬

Momcilo

Dr.

tion

Both public and private construction record
the former up 79%, and the latter 36%.

July 31,1941

the enemies of all free

perous peace

Engineering construction volume for the week totals $259,800,000,
an increase of 50%
over the total for the corresponding 1941 week,
and 75% above last week's total as reported by "Engineering NewsRecord." Under date of July 30, the report continued as follows:
3
Public construction gains 55% over a year ago, and is responsible
for the increased volume as private work is 0.5% under last year.

Total Construction

and

spontaneous

55,570

: 70,300

105,670
other

of

•T

-

i---——

with

Federal

on

55,430

140

1941 Week's Total

and

»

accord

unselfish will to victory, our com¬
mon effort shall seek every means

140

Engineering Construe lien Gains 50% Over I

State

in complete

$6,757,269

an

'

shares—

odd-lot

are

Mikhailovitch and his daring men,

Pyrcha§e$ by.'• Dealers^'4f,^4''■

are

the

and

should be devoted to the vigorous

85,170

'Sales marked

freedom

207,567

JL-—__v

i.'—

cherished

liberation of their country.

the fundamental principle that all
the resources of the two nations

sales

Round-16t:

American

their

to
Total

demonstration

a

the

3,090

•

^

k

shares:

sales

Majesty's visit in this coun¬
has been made the occasion

310,284
$9,323,994

total sales.

Private Construction

The

a

5,297

sales-

Public Construction

Wholesale Commodity Prices Continue Steady
In July 25 Week, Labor Bureau Reports

States for

304,987

shares:

of

Customers' short sales
'

{Stocks tStocks

Coast,
Gulf, Louisi-

Louisiana
•

United

8,886

r.

'

r

•Combin'd: East
Texas

of United Nations allied with

such valiant sacrifice in defense of

short

totali

.,

Finished

fineries

Runs to Stills

Nincitch, the Yugoslav
Foreign Minister, and Secretary of
State Hull had signed, on behalf
of their governments,
a
master
lend-lease agreement.
Signing of
this pact raises to ten the number

try

8,564

;>"■

$11,533,399

—

July 18

-

orders:

Customers'

Number

'

>

12,112

—

v
Stocks

at Re-

Daily Refining
Capacity

,'

:

Production;

+;•■:>:•■:

1

Dr.

"His

July 11

"I,'

,

shares-.—

Purchases by

Odd-lot

customers'

estimate of unreported amounts and are
on a Bureau of Mines basis

that

Momcilo

'

Purchases)

orders—-

value

Number of

therefore

also announced

was

,

(Figures In Thousands, of Barrels of 42 Gallons Each)

an

It

war.

Odd-lot Sales by Dealers:

round

plus

the

House

,

<j.
■Pi

White

"In the discussions between

made

STOCK TRANSACTIONS FOR THE ODD-LOT ACCOUNT OF ODD-LOT DEALERS AND
SPECIALISTS ON THE NEW YORK STOCK EXCHANGE
,

OP

tfO

the

issued by .the President and King
Peter follows:
>

be

Producers.,~

FINISHED AND UNFINISHED GASOLINE AND GAS AND FUEL

Figures

at

the Netherlands, Greece, Czecho¬
slovakia and Norway.

•

CRUDE

President

China, 1 Russia,

figures being published by the Commission.
The figures are based
reports filed with the Commission by the odd-lot dealers and
specialists.
'
"

.

Committee" of

The

warj

8:5

upon

•

Conservation

of the

farewell visit to

6.6

0

'

New York Stock
The

conditions,

prove .to be less than the allowables*
The Bureau of Mines reported the daily, average
production of natural gasoline in April, 1942, as follows:
Oklahoma, 27,500J.Kansas.
4,800? Texas, 90,700; Louisiana, 15,300; Arkansas, 2,600; New Mexico, 5,300; California,
40,100; other States, 22,200.
: t
;
-!,*
tOkla., Kans., Neb., Miss., Ind. figures are for week ended 7 a. m. July 22.
' f"
'tThis is the net basic 31-day allowable as of July 1.
In the area outside East
Texas shutdowns were ordered for July 4,; 5, 11, 12, 18,
19, 25, 26, 29, 30 and 31;
in East Texas for July 6, 13, and 20, in addition to the aforementioned days.
of

a

'

>96.9

Customers'

—

wells may be Incapable of producing the allowables granted,
by pipeline proration.
Actual State production would, under such

§Recommendation

King paid

+10 8

o

99.5

.

the prosecution

1941

.

0:

.

t—0.1

79.4
98.6

3,869,950

699,200

certain

limited

w.

86.4
;
v

638,100

f

y>

;

99.8

of

The text of the Joint Statement

3,231,850

"

3,842,800

89,6

..*Preliminarv.

r
*0. P. C. recommendations and State allowables represent the production of all
petroleum liquids, Including crude oil, condensate and natural gas derivatives recovered
from oil, condensate and gas fields.
Past records of production indicate, however,

•that

commodities

Semimanufactured articles——

107,050

2,991,400

§739,500

goods...

Raw materials—.L—

3,700

70,650

89,500

-

97.3

81,150

6,700

89,500

—

96.8

1942
.

■?'

0
'

Fuel and lighting materials--,..
79.5
Metals and metal products—* 103.9

/

Total East of Calif.

California

105.5

98.3
118.8

90,450

.64,250

800

.

21,700

7,700
*

96,250

1,700

>91,150

23,100

....

Mexico

7,450

60,100

96,800

......JL,

Colorado

104.9

98.9

118.8

Number

L_.

64,800

Wyoming

105.4

Hides and leather

20,900

v

incl.

Ind)

Farm productB4<.--___..
Foods—

products-:
Textile products^--

Roosevelt
and
King
Yugoslavia announced
their "complete accord" in devot¬
ing the two nations' resources to
Peter

prior to his returning to London.

7-26

•

+0.1

46,750

10,400

22,000
(not

and

6-27

1942

88.8

A

,

268,450

Michigan

,

7,400

+"

—

t75,850

Indiana
Eastern

7-18

1941

on

49,900
'

■

7-26

1942
*98.4

217,450
283,250

138,850
232,500 '

304,100

....

6-27

*98.5

showing

324,150

337,600'

"

,1942.

367,950

229,050

•

78,500

Mississippi

•84,300
.

95,100
'

319,600

__

Illinois

New

1,224,850

1
•

Arkansas

111.

11,284,711

266,100

274,650

4 f 200

*«.

7-11

1942

129,150

83,600

4,550

+

...

7-18

on July 24 is¬
joint statement in which

a

-

*98.3

"

80,350

V

192,300

—600
+

...

,

;

1942

5,100

82,350

155,150

Louisiana

7-25

241,950

-

141,700

253,900

Total Texas

i

3,600

400

Coastal

North

•

,

*98.4

-

3,350

,

Southwest Texas

Coastal Louisiana

:

'T-.1; '■. Percentage changes to
•,n
' ■ vJuly 25,1942, fronv—

>

products and foods—

July 26

-275,250

100

•

—

...

(1926=100) :

sued

416,650

•.

293,150

Texas

"

,•375.450

—

87,100

>

V- >

Commodity Groups—
All Commodities

Master Lend-Lease Pact
The White House

President

,

v

Ended

;

.

1941

+

139,100
211,550:

West Texas

4

4,400

t283,700

North Texas

,

'-July 25

complete

All commodities other than farm

Vr 1942'

t379,050 .S''+-"

4,100

+

Ended

Week

v2,350

433,000

,

late and more
J" .
■
-

following

products

Prom

Week

by

■

*

4 Weeks

v

Previous

283,200

433,000

Nebraska

,

'1942

July 1

x.

-

July 25

Beginning

July v,

Change

:

Ended

ables

Recommen-

i'fi't V"'

Week

;

Allow-

.

as

required

as

Manufactured products_i.^
All commodities other than farm

(FIGURES IN BARRELS)

-Actual Production—

'State

•O.P..

revision

changing prices. The indexes,
i preliminary and subject to such

table shows index numbers for the principal
commodities for the past 3 weeks, for June 27, 1942 and
July 26, ; 1941 and the / percentage changes from a week ago, a
month ago, and a year ago:
>
T'«' ";v.
-i
'*;;
-

„

U.S., ^Yugoslavia Sign

to, report

groups of

reported by the Institute follow; J

as

companies owning ,86.9% of
the 4,684,000 barrel estimated daily potential refining capacity of
the United States, indicate that the industry as a whole ran to stills,
on
a
Bureau of Mines' basis, 3,658,000 barrels of crude oil daily
during the week endedJ July 25, 1942; and that all companies had
in storage at refineries,'bulk terminals, in transit, and in pipe lines
as of the end of that week, 82,281,000 barrels of finished and un¬
finished gasoline.
The total amount of gasoline produced by all
companies is ' estimated to have been 10,864,000 barrels during the
week ended July 25, 1942,1
\
"
Reports

•

and
.

The

was

'

promptly

reports.

crude oil production for the week ended July 25, 1942
3,690,600 barrels, or 22,800 barrels per day less, than in the
preceding Week, and 179,350 barrels per day lower than in the cor^responding week of last year.
The current figure also was 152,200
barrels below the daily average for the month of July, 1942, as
recommended by the Office of Petroleum Coordinator.
The daily
production for the four weeks ended July 25, 1942 averaged 3,589,age

allocation, and rationing the Bureau of Labor Statistics

attempt

however, must be considered

The American Petroleum Institute estimates that the daily aver¬

.

469

DUririg the period" of rapid changes caused by price controls,

..

,

& FINANCIAL CHRONICLE

.

MacKenzie With WPB
M. J.

Federal
land

Fleming, President of the

Kenzie,

Bank

Reserve

announces

that

Assistant

of Cleve¬

K. H.

Mac¬

Vice-President

of the Bank in charge

of the de¬

partment of business statistics, has
been

granted

a

effective Aug. 1,

leave of absence

in order to

the War Production Board

gional*

statistician.

Smith has been

aSer
ness

serve
as

Robert

designated

re¬

L.

man-

of the department of busistatistics.

:

Statistics

Weekly Coal and Coke Production

classification.

230,000 tons, an increase of 8,000 tons, or 0.7%
week.
When compared with the output in the
of

1941,

period last year.
U. S. Bureau of Mines

same

The

beehive

from

Total

during the same

tons

increased 3,600

ovens

COAL, IN NET TONS, WITH

STATES PRODUCTION OF
PRODUCTION OF CRUDE

UNITED

ESTIMATED

-Week Ended-

Daily

tJuly 18,

1941

11,100

10 901

average

1,842

1,850

1,817

^

1941

1937

322,808

264,785

1,541

1,443

1942

'

of

supply

1942

1,222,000

1,330,000 33,642,000

1,161,000

1

152,500

148,900

total

States

United

By-product coke—
States total
•Includes washery

colliery

tExcludes

operations.

[In Thousands

STATES

July 11,

July 19,

1942

1941

1940

4

5

—
July 17,

July 20,

1942

111923

1937

343

235

257

32

40

26

74

76

165

109

t

1

tt

1,105

1,078

1,107

671

668

472

462

402

255

236

40

37

38

28

Indiana—,.
Iowa

and

Kansas

Total

87

+

37,640

11.73

828

955

767

sales

\

235

194

116

114

Initiated off the* floor—

39

36

21

23

42

38

2

3

5

lignite)

30

;
—:

—

sales

X

L'i
'

60

58

39

41

fvi

41

C.

29

26

16

30

;

52

v.V".

20

23'

17

16

13

••14

3,680

-

8,305
8,425
-t,

661

667

663

458

2,730

2,610

2,741

2,146

2,006

149

144

146

109

98

11

19

Ohio—

Pennsylvania

(bituminous)

—
:

Tennessee—

v

5

7

110

61

48

43

387

275

390

400
—

ists——

—

Total

87

.

29

24

32

37

2,334

1,824

1,564

1,519

903

887

826

566

479

866

the

118

117

85

60

115

1

tt

only sales.

7,250

11,208

1,950

»4

total

11,100

10,773

1,193

1,314

1,133

582

12,322

Total, all coal

10,760

1,222

nite

IPennsylvania anthracite

7,906

11,953

12,087

9,039

7,832

••Alaska,
States."

'

and South Dakota included

are

all regular and associate Exchange members,

both

"

■: ^

and sales,

short

sales

exempted

which are
sales."

"short exempt"

Editor's

stated:

published

are

.

based upon weekly reports filed with the

members.

York Curb Exchange by

These reports are classified as follows:
N. Y. Stock

Exchange
Week End.

July 11

N. Y. Curb

Exchange
Week End.

July 11

977

reports received

685

172

86

153

Total number of

23

—.

showing transactions as specialists——

Reports showing other transactions

3. Reports

from

restriction

by

the

Commission

showing other transactions initiated off

Reports showing no

transactions

Note—On the New York Curb

532

Exchange, odd-lot transactions are handled solely




the

Note.—Upon

Official and the U.

prices

1 in

more

off.

Allocation

certificates

than 100 items.

for<^

and zinc for August re^
quirements were released on July
27. Silver merchants are marking

copper

Use of the metal
With the

—

7

been

assigned to; communications
companies for copper for con¬

struction,

Si

un¬

Prices

daily, prices of electrolylic

copper

(domestic and export, re¬

finery), lead, zinc and Straits tin
unchanged from those ap¬
pearing in last week's "Commer¬
cial
and
Financial
Chronicle,",

were

380.

page

:

,

.

order prohibiting the

an

supply outlook for lead easier, the regular monthly meeting of pro¬
ducers and officials in Washington scheduled for July 28 was called

maintenance,

and

re-

Merchant Marine Training
Functions Transferred
President Roosevelt, in a recent
executive

order,

merchant

marine

tions from

the U.

transferred the
training func¬
S.

Coast Guard

to the War

Shipping Administra¬
The President, acting under

tion.

•
:
.'
receipt of details of pair.
the
First
War
Powers
Act, in
An amendment to make clear
being prepared by
order to expedite the prosecution
that maximum prices which may
WPB
regulating distribution of
of the war effort, directed that
the metal to conserve supplies for be charged on sales of copper in
all
records, property (including
war
purposes.
The
publication carload lots are applicable to all
office equipment, floating equip¬
other sellers as well as to refiners
further went on to say in part:
and real property), and
and producers has been made to ment,
Copper
of the Coast Guard
Revised Price Schedule No. 15 on personnel

time pending

order

an

the

by

i-

Markets," in its issue of July 30,
issued

also

are

Daily

the Office

war.

"The War Production Board

of zinc after Sept.

use

of

request

The

unchanged.

price

changed.

in articles not listed in the order also has been regulated.

and,

they are registered and the round-lot transactions
odd-lot transactions are not segregated from the
specialists' other round-lot trades. On the New York Stock Exchange, on the other
hand, all but a fraction of the odd-lot transactions are effected by dealers engaged
solely in the odd-lot business. As a result, the round-lot transactions of specialists in
stocks in which they are registered are not directly comparable on the two exchanges.

specialists in the stocks in which
of specialists resulting from such

During the past week the silver
quiet,

with

included with "other sales."

are

.

now

for

copper

against

August allocation certificates came
through in volume on Monday,

51

550

arts, the trade is passing through
a rather quiet period.;
market in London has been

of Censorship
production and shipment figures and other data have been

Requests

initiated on

188
4.

while the Exchange volume includes

with "other

"E. & M. J. Metal and Mineral

■.

Stock Exchange and the New

their respective

2.

the reason that the total of members'

the Exchange for

purchases

Order—Copper Moving Against August Needs

with "other Western

The Securities and Exchange Commission has made public fig¬
showing the daily volume of total round-lot stock sales on the
New York Stock Exchange and the New York Curb Exchange and
the volume of round-lot stock transactions for the account of all
members of these exchanges in the weeks ended July 4 and 11,
continuing a series of current figures being published weekly by the
Commission.
Short sales are shown separately from other sales in

1. Reports

Silver
their

The

.

York

$198.08 per flask.

12,669

Non<Ferrou$ Metals—Zinc Conservation

ures

New

M

Treasury

Trading On New York Exchanges

■■

Quotations
in
$194.43 @

further.

special partners.

omitted for the duration of the

these figures.
The data

Ca¬

indicate that pro¬

advices

.

included

certain

;

expected to remain high.

creased

23,198

District and Grant,

Georgia, North Carolina,
ttLess than 1,000 tons.

is

New York continued at

'

20,087

,

Government support¬

duction in that country will be in¬

0
23,198

0
20,087

——

13,158

C. & O.; Virginian; K. & M.; B. C. & G.;
Mason, and Clay counties. tRest of State, including
Mineral, and Tucker counties.
^Includes Arizona,
California, Idaho, Nevada, and Oregon.
§Data for Pennsylvania anthracite from pub¬
lished
records of the Bureau of Mines.
ilAyerage weekly rate for entire month.
Panhandle

15.71

nadian

;

sales.

the

With

New York

the B. & O. in Kanawha,

on

the

52,855

/

.

sales

volume on

includes

SSales marked

•Includes operations on the N. & W.;

and

■/-•

..

12,517

round-lot

J Round-lot
rules

lig¬

,.

sales

transactions

tt

1

t>

tt

and

■ •

: ;

Awaiting word on the official
order that is to regulate the flow
tShares in members' transactions as per cent of twice total round-lot volume.
In
silver into industry and the
calculating these percentages, the total members' transactions is compared with twice of

133

bituminous

Total

short

■

their partners, including

42

tOther Western States
'

'

quotations.

Quicksilver

3.00

Account of Special-

the

•The term "members" includes
firms and

239

2,246

Wyoming

}.,

i-.;•'.•;••• >■' 'Vni' ing the market through purchases
55,970
by Metals Reserve, the price sit¬
1,610
uation in quicksilver appears to be
51.245
stable in all directions.
Output

15.07

32,475

purchases

Total

,

2,275

_

Virginia—Southern
tWest Virginia—Northern
•West

30,185

;

—

>y.

,

42

Washington

52.000
52.000
52.000
52.000
52.000
52.000

•

23

•

.

_

Virginia

sales

...

113

:

242

-

__

_

6

111

nite)
Utah

_J—

sales

^Customers' other

."

lig¬

and

(bituminous

y

v

2,230

Odd-Lot Transactions for
.

Customers'

406

Sept.'

52.000
52.000
52.000
52.000
52.000
52.000

tin, 99%, spot, 51.1250,
:•(!

London—No

854

•/•

Dakota

South

:

—

Chinese

120

,

2.45

'• •
30,160

v

-

',.

,

.5,875

sales

tOther

30

and

July 28

July 29

1.76

all week.

,,

5,845

—-

—.

—.

purchases

Total

:

Short

67

—

——

(lignite)

Texas

.

.'

Total

New Mexico

North

;

and

(bituminous

Montana

>

August

52.000
J— 52.000
52.000
52.000
52.000
52.000

-

July 27_

12,340

■

17

6-..

5

July 23

July 25

140
6,650

'

■

4,305

Total—

4.
•^

202

.

10.95

6,790

0.89

1,915

—

sales

Total

735

225

Maryland

livery was nominally as follows:

5,400

1,790

.

.

-

75
1.840

tOther sales

134

80

942

701

Kentucky—Eastern
Kentucky—Western

Michigan

*

:• <

July 24—..;

purchases

Short

Sttf

tt

,

72

137

140

153

Missouri

1,350
* 36,290

24,685

451

39

Carolina-

Illinois

1

3. Other transactions

1,268

133

tt

2,185
22,500

sales

Total

389

67

130

38,190

V

Utt

2

85
"

Colorado

Georgia and North

!—

tOther sales

4

92

clusively on commercial tinplate
trimmings.
Straits quality tin for future de¬

!

—

purchases

Total

Short

377

369

plant expansion and diversion of'
some capacity now operating ex^

4

-

tons

capacity is about 250,000 tons. The
increase in capacity results from

_

,

plant capacity to 400,000
for the coming year. Present

tinning

transactions initiated on the floor—

Other

3.

July

5

—

Oklahoma

346,335

24,065

.

...

sales

Total

avge.

•

Arkansas and

2,855
204,996

estimated increase in de-

an

July

July 18,

Alabama

meet

Cent

;

tOther sales

Week Ended

Alaska—

-

.

The extension was made to

WPB.

Week
2.220
344,115

stocks in which

sales

Short

ship¬

i

Lessing J. Rosenwaldj
of the Conservation Division,

chief

'

they are registered—
Total purchases

based on railroad carloadings and river
revision on receipt of monthly tonnage reports from district
of final annual returns from the operators.)

State—

,

of Net Tons]

•

additional cities, ac-i

(Shares)

Cent

of
"

Account

the

for

Transactions of specialists in

1.
:

and are subject to

and State sources or
,

to include 104

tPer

—

Members:

current weekly estimates are

(The
ments

18.47

Total for

...

Transactions

Round-Lot

B.

PRODUCTION OF COAL, BY

WEEKLY

has been enlarged

Stock

207,851

i

Total sales

revision.
ESTIMATED

metro-'

areas,

politan

t Per

—;

—

tOther sales

coal shipped by truck from authorized
Comparable data not availaole. §Subject to

fuel.

salvage plan, previ¬

ously confined to 36 major

Week

—.J-

Short sales

<

34,619,600

1,187,700
1,195,100
and dredge coal, and

United

Tin

4 and July 11, 1942

Ending July

Total Round-Lot Sales:

A.

3,930,800

3,465,900

4,466,700

154,800

St. Louis. ~

The tin-can

Total for

1929

Beehive coke—

532,440

16.61

232.130

Weeks

30,773,000 39,580,000
29,234,000 36,730,000

264,000 31,960,000

of 8V40,

:;'3.47

82,220
450,220

y

York Curb Exchange and

Sales on the New

Stock

Transactions for Account of Members*

July 27,

1941

1942

1941

1,230,000
1,169,000

tCommercial production

COKE

July 26,

§July 25,'

July 26,

July 18,
1942

anthracite—

Penn

•Total, incl. colliery fuel

39,300

use

cording to

Calendar Year to Date

Week Ended

§July 25,

Western

' 546,780

192,830.

—

—

-

sales

Total

Round-Lot

Total

Net Tons)

(In

J'*;

tOther sales

98,730

278,050

Total purchases
Short sales

the

long list of articles.

a

situation
•

v

'••■'i-iy

July
August
industry:

of the metal
The price
was
unchanged, Prime
continuing on the basis

5.34 ly restricts the

14,100
84,630

;

.

3.74

41,330

-

'

4. Total—

*

PENNSYLVANIA ANTHRACITE AND

OF

PRODUCTION

ESTIMATED

.

104,210

73,490
4,720 \ ^
36,610
>.

:

tRevised.

1939, page 702.)

'150,630

;

in

.

—

sales

Total

-

6,199
177,758
175,038 1
160,404
v~
- * ' »
iT
converted into equivalent coal assuming
per barrel of oil and 13,100 B.t.u. per pound of coal.
Note that most of
petroleum products is not directly competitive with coal. (Minerals

6,000,000 B.t.u.

yearbook,

'

Vy,

petroleumequivalent of
5,948
5,912
weekly UulJJUl
output
•Total barrels produced during the week

the

1—

on

production will soon come on
the market, but this development
; was overshadowed last week by
the conservation order that sharp¬

off the floor—

tOther sales

•Crude

Coal

15,700
134,930
,,

reached

allocations

248,853

1,870

*

9.66

word

as

soon

as

•-v•

■

161,210

59,960 :v. 4.13

•

—.

Total purchases
Short sales

July 24,

July 26,

July 25,

July 26,

1942

11,050

lignite coal—
Total, includ. mine fuel-

sales

Other transactions initiated

3.

Date

January 1 to

1942

July 25,

Bituminous and

Total

PETROLEUM «M)0 OMITTED)

27

New

/

49,960

:—

—^—

zinc

The market came to life on

-.yi

.

283,080

- '

66,920

-——

period.
COMPARABLE DATA ON

3.74

10,000

.—

sales

tOther sales

.

<

.

purchases

Short

..r

130,840

—

-

6.350, St. Louis.

'

52,420
230,660

,

106,260

initiated on the floor—

2. Other transactions

the
and

Quotations
continued on
of
6.500, New York,

281,360

24,580

sales

Total

.

*

.

may

basis

^
137,640

-

sales

tOther sales

production of byproduct coke in the United States for the week
ended July 25 showed an increase of 7,400 tons when compared
with the output for the week ended July 18.The quantity of
coke

;

:

consumption

domestic

easily drop to less than 55,000 tons
a month.
\vV;
;v;-:./• ;

•■'■••••'

stocks in which

S

Total purchases

trade believes

eased soon, the

are

that

;;•.

■

.

of lead

Unless restrictions on use

2,921,420

'Jy?'"]*'-

Account of MemOdd-Lot Accounts of Odd-Lot

they are registered—

the estimated

Cent

2,821,710

:

—1,535,460

and Specialists:

Transactions of specialists in

1.

Week

.-

99,710

—1,486,470

-

—

—

Short

also reported that

Cent

•

tPer

48,990
—-

bers, Except for the
Dealers

Total for

t Per

Round-Lot Transactions for the

8.

the preceding

Total for

*

sales

•Total

corresponding week
however, there was a decrease of 100,000 (7.5%). The
year to date shows a gain of 9.3% when compared with

calendar
the

Short sales

.

r-V

Total Round-Lot Sales:

A.

V

Week

.

estimated at 1,-

over

problem in meeting

no

demands of consumers.

of the

all

'

tOther sales

the week ended July 25 was

of Mines, for

Bureau

really

was

Ending July 4 and July 11, 1942

Weeks

to the U. S.

Pennsylvania anthracite, according

of

Production

of Members*

for Account

Transactions

-

amounted to 10,901,000 tons.

1941

of

Exchange and Round-Lot
(Shares)

Stock Sales on the New York Stock

Stock

states that production

latest report,

August allocations of foreign lead.
Requests for foreign lead dropped
to less than 10,000 tons and there

•

-

,

.

Total Round-Lot

Department of the Interior,
of soft coal in the week
ended July 25 showed little change, the total output during that
period being esimated at 11,050,000 net tons, as against 11,100,000
tons in the preceding week.
Production in the corresponding week
Coal Division, U. S.

The Bituminous

its

in

reports received because a single

of

meeting in Washington to discuss

total more than the num¬
report may carry entries in' more than one

reports in the various classifications may

The number of

ber

Thursday, August 6, 1942

m

FINANCIAL CHRONICLE

THE COMMERCIAL &

470

as one
"treasure

mand

for

operator
hunt

copper

is

is

De¬

large as
both domes¬
as

Quotations on
tic and foreign copper
ever.

remarked,
on."

were

Price Administrator Leon
announced
July 27.
sales of copper in carload lots,

copper,

Henderson
For

the

price

maximum

was

administering
tions

ficers

Connecticut Valley base.

be

or

Lead

Higher preference ratings have pensed

Lead

with

Branch of WPB

the

of

dis-

usual monthly

on

the

training

transferred.

The

func¬
order

that no of¬
the regular Coast

however,

men

of

the Coast Guard
active

Budget

used primarily in

Guard be transferred

The

i. "V

determines

provides a
price of 120 a pound, provided,
schedule

un¬

changed.

which the Director of the

duty

that

none

reserve

now

or

be

without their consent.

transferred

Number 4096

THE COMMERCIAL

Revenue

Freight Gar Loadings During Week
Ended July 2§, 1942, Totaled 855,S22 Gars

h

of

42,042

1940

cars

4.7%,: but

or

increase above the

an

above

cars

the

corresponding week

decrease

Coal

/

of 68,435

in

"\

"

Live; stock

'//;•■'

■

Norfolk

loading

above

cars

-

•

of 270

Forest

1941.

1,144
6,112

5,123

4,589

9,083
3,878

1

Carolina—

7,

V'*/;••/.

Five

ypeeks

Four

weeks

of January—
of February.!———'

Four

weeks

of

Four

weeks of April—....

Five

weeks

Four

weeks

Week

of

of

1942

3,858,273
'

—

March

"

'

>'? 3,122,773
3,171,439
: /•

/,

...

Week

of

July

11

of

July

July

25—

of

Total

™—

...

Ft.

LOADED

(NUMBER OF

AND

'

•

"228

i

,V- <J

?"• 4*

'

»•*

%

V'

V

Eastern District—

430

3,021

3,515

2,753

4,637

3,277

1,286

927

1,772

1,206

ing week of 1941, production was
7%
less, shipments 2% greater,

344

1,125

1,412

and

industry

286
451

449

338

9,052

5,823

9,749

8,610

8,159

6,137

23,212

24,521

21,317"

582

Northern

Arbor

Bangor

:

Central

Western

3,941

3,320

20,395

464

23F

shipments

1,113

685

540

10,593

shipments,

and

"8,999

b,.\; 575

571

7, 545

26,234

21,481

5,222

4,833

625

473

711

741

Bingham

2,036

&

12,250

Southern Pacific

364

828

41'.

2,546

1,740

2,676

144,457

119,750

62,716

61,062

23,924

24,158
3,62")

& Aroostook.

Boston &

I.Q96

Maine™

1

11,341

2,638

1,769

1,042

11,356

Chicago, Indianapolis & Louisville
Central

Indiana

Central
Delaware

&

Delaware,
Detroit

2,886

2,255

4,046

3,217

804

573

1,512

1,598

3,760

3,484

2,569

6,114

3,858

661

698

307

21

42

1,049

1,280

966

1,307

1,01'

1,607

1,935

1,720

2,583

Detroit,

&

Ironton

i

Shore

Line

Trunk

Lehigh

Western

Hudson

&

Maine

__

River

133

1,157

841

449

1,930

1,555

150

812

612

York, Chicago & St. Louis
Y., Susquehanna & Western

99

23

0

C

2,072

4,877

»

6,391

12,357

,1

1,025

1,344

-

7,336

7,444

:?:• 356

2,543

2,327

'

..

•

1,150

V

2,617

17,000

383

v

—•

404

1,411
9,066

9,919

4,755

6,024

6,374

;

.•

West Virginia

744

643

836

211

412

382

206

1,286

715

2,703

'325

—

Wabash

•

5.528

...—-—-

Wheeling & Lake Erie

/

575

618

6,662

•:

5,567

5,224

26

55

/

&

1.0.94

1,243

12,921

■11,185

5,028

5,847

5,017

466

281,385

291,980

285,063

304,204

317,328

Total

156,253

—

189,110

146,405

District—

221,868

213,203

Canton

Baltimore
Bessemer

Buffalo

&

Cambria

&

Central R.

&

R.

of New

280

271

2

12

1,815

1,709

3,697

2,603

129,993

105,330

297

1,703

1,090

11

6,537

18,864

6,925
643

Cumberland

&

525

..

——

Penn-Reading Seashore Lines
Pennsylvania
System™...—4

Reading
Co—
(Pittsburgh)

—

Union

Maryland

8,411
668.,

-

1,112

23,289

Total

307

2

1

236

'",147

U8

921

-

-.

"./,

911

•1,659

1,786

84,268

90,969

&

&

-

l.OSS'-

>-

.

19

63.
701

16,427

61

49

:/■

60
40

.

:.

40

3,713

3,020

2,443

1,912

eS,983

65,129

56,371

14,341

17,481

13,416

27,826

22,991

19,884

18,752

7,166

6,507

3,969

4,085

3,253

12,100

8,445

198,615

153,777

t

'

166,346

142,581

Lines

2,292

Ohio...

Western

28,828

29,338

24,780

2,482




25,027

21,173

6,757

4,602

1:

23,139

4,928

4,261

1,965

14,757

56,569

59,293

50,214

22,610

6,592
■

1,794

23! 143

—

218

201

1,033

2,712

1,945

3,078

1942 Week

1,796

2,197

279

1,298

Shipments.

269,976—107

16,263—144

Orders

272,919—103

12,144—107

....

837

407

213

283

158

179

403

396

Iron, Steel Salvage Goal

1,241

4,798

4,053

4,738

3,552

17,387

13,504

18,795

11,370

166

75

215

213

8,820

9,247

6,778

7,979

5,2.0
3,168

'

2,805

2,627

2,201

6,445

7,252

5,530

5,314

4,155

4,903

3,765

3,361

7,764

4,730

1>134

176

112

"32

107

69

17

19

29

4b

56,965

44,781

64,566

The

Conservation

July 27 set

on

revised.

figures received by

us

•

be

to

the New
merce"

York

from

includes

program

member of the orders and

figures

a

statement each week from each

production, and also

of the mill

of the total in¬

based

on

the

a

figure which indi¬

time

operated.

These

advanced to equal 100%, so that
they represent the total

are

/

PRODUCTION, MILL
Unfilled

.•'

;

;

...

•.*.•;

••

•

Period

Orders

Production

Received

Ordzrs

Tons

Tons

1942—Week Ended—

^pr.

v.

4.

■

A

Percent of Activlti

Remaining

Tons
•

/'

data

furnished

States

,,

Bureau

vious

collections,

"At

quotas

present there

000,000 tons of
on

hand

>

of

the

sumed

scrap

are

the

year

tons.

rate,

time

operations

throughout

100
93

101

94

101

Apr.

25.

139.026

156,201

388,320

93

100

135,273

152,569

371,365

90

99

130,510

143,427

360,221

86

99

119,142

141,745

336,530

82

120.224

140,650

316,443

81

97

or

113,059

132,901

288,516

77

96

110,226

share

120,374

283,390

69

95

May

16

May

23

May

30

June

6

—

...

_

-

.

_

13__

June

_

115,300

...

20

27

4-

98,766
104,178

...

-

.

.

94,257

___

101

98

125,016

V

274,512

72

94

117,924

248,594

69

93

120.359

231,368

72

92

100,337

223,809

59

91

11

92,481

77,996

236,536

52

90

July

18

—

103,559

114,917

226,341

71

90

July

25......-.——— i.

112,513

120,982

219,700

74

89

..

the

\

428,322

—

this

Conservation

Cumulativt

404,199

.....

con¬

At

winter months."
Current

436,029

9

3,one

industry

13,700,000

consumption

153,442

2

about

iron and steel

approximately

—

Division officials estimate
17,000,000 tons as the minimum amount

129,834

May

have

month's supply at current produc¬
rates.
The first six months

18—•-

May

the

tion

153,269

Apr.

by
of

been established for each State.

169,249

_

of Com¬

Washington bu--*

Mines,
showing State-by-State shipments
of scrap to
consuming mills, and
on the basis of
experience in pre¬

145,000

11

six

said:

"On

101,888

Apr.

the

Advices to

of scrap necessary to
charge fur¬
naces to capacity and
provide suf¬
ficient stock piles to insure full-

ACTIVITY
■

in

"Journal

its

(

The members of this Association
represent 83%

iron and

scrap

collected

months ended Dec. 31.

from the National

Paperboard Association, Chicago, 111., in relation to
activity in the
paperboard industry. "
'
'
< ,

over-all goal of

an

17,000,000 tons of
steel

United

figures

of

Division

the War Production Board, under
its new national salvage program,

44,659

figure.

activity

100

11,319—100 r,o

l,96i

379

,

69,422

the

1942 Week

363

—

251,889—100^

2,522

2,001

W. & N. W.._.

dustry, and its

Hardwoods

1,210

81

year's

V

.

2,191

July
13,888

;

1,981

1,742

5,432

We give herewith latest

July

District—

Virginian

T

236

2,428

■■

Weekly Statistics Of Paperboard Industry

June

Norfolk

229

2,815

168

5

14

21,385

185,981

Chesapeake

171

230

Francisco.

•Previous week's

2,338
•'

/■

reau

June

Tocahontas

182

4,360

1,122

2,610

Orders

69,995

2,228

STATISTICAL REPORTS—ORDERS,

25,241

,

544

276

Pennsylvania

Ligonier Valley
Long Island—.

88,228

338

...

—

V; •'

.

'

Jersey

Cornwall

Western

6,154

317

2,019

Gauley

32,141

7,656

299

Indiana.

43,510

6,686

Erie

809

41,753

Ohio
Lake

&

'

690

& Youngstown

Creek

11,064

.

a

Akron,

15,526

606

4,626

industry.
Allegheny

14,095

683

Note—Previous

(rev.)

286,239

Pacific

Total

cates

Previous

Wk.

Shipments

16,538

2,546

4,176

'

Week

273,887

Arkansas

Weatherford M.

1942

<

1941

Week

451

Wichita Falls & Southern

588

2,359

HARDWOODS

-V

Production.

1,690

7,319

6,664

1,092

...

North

487

8,653

AND

1942

283,620

12,680

14,125

7,856

'\

SOFTWOODS

451

Louis Southwestern..

2,316

5,958

thousand board feet:

Production— 263,208

4,392

St.

week

July 25, 1942, for the cor¬
responding week a year ago, and
for the previous week, follows in

M'lls

16,558

17,182

18,848

current

ended

1,591

51

/

9,345

Hardwoods

the

8,253

<juanah Acme & Pacific.

52,3°0

for

1,650

471

/ 56,060 »

! ; 41,392

less.

and

9,955

537

Louis-San

12%

337

Island

St.

year

gross

24,747

District—

2,549

;/ '

36

ago;

323

! 2,255

;

.Missouri-Kansas-Texas

1,987
*

5,193

Pittsburgh & Lake Erie

—-

&

10.05"

12,704
/

year

30,202

14,090

2,446

7,880

a

to

July 25,

354

Western

Valley.

8,969

3,054

2,604

•9,744

Pere

M&rquette
Pittsburgh & Shawmut
Pittsburgh, Shawmut &

8,233

"

53,774

,

1,558
3,831

orders

on

31,221

Arkansas

Missouri

15%

Comparisons*

unfilled

25 %

were

60.

Lines.

&

pe¬

1942,

were

Softwoods

Midland

Texas

of

than

Record

-

124,295

Louisiana

of

133

1,149

24

(Pacific)

System

16,137

144

4,6,643
■

1,254
3,061

1,72") /

2,469

—--™-.

129

ratio

Softwoods

Mais

9,318

3,276

2,338

Lines..

10,979

15,922

3,260
>

V

weeks

24% above pro¬

gross stocks was 71%

80.

1,169

102

2,916

207

1

10,361

2,250

68

2,443

1,325

154

8,889

York, Ontario & Western

Pittsburgh &

,

'//.

12,736

'

,2,608

6,286

Central

'

,

"
....

■

Rutland

2,892

2.14)

:

New
N.

147

4,128

_

—

...

Y.. N. II. & Hartford

New

:"V 9,710

399

365

Monongahela

N.

8,136

367

16,269
6,122

...

England—

Central

York

10,541

247

1,461

Montour
New

10,826

/. 307

——

Lehigh & New
Lehigh, Valley

5,688

12,722

!

—

Grand

7,591

7,697
:

46

1,250

'

Toledo

&

•;// 2,600

40

1,470

6,490

—..

Mackinac.

Toledo

Detroit

1,961

1,369/

35
;

Hudson.

1,559

13,663

29

was

1,197

Kansas City Southern.,

13,023

905

—..

Lackawanna & Western

&

Erie

1,500

.

Vermont

7,053

The

10,123

—

Coast

the

7%

912

11,455

2,213

Total

271

above

10

14,432

Litchfield & Madison

174

the

Supply and Demand

10,311

12,780

City

Kansas, Oklahoma & Gulf..:

963

9,049

,

6%

above production.

stocks

127

16,124

Union

Southwestern

the

new

duction, and shipments

greater

759

Received from

"

1,105

/ 5,900

—

For

business

2,99b

4,921

496

19,948

uiternawonal-Great Northern

1,556

3,198

608

17,705

—

Gulf

1,272

riod.
new

8,529

11,617

2,445

•Total Loads

f-:'

19,508

670

Pacific

for

1942, compared with 48% a
Unfilled orders were

2,060

&

'

ago.

Pacific—

Peoria
Pacific

'I.**'

orders
above the orders of the 1941

2,296

...

Burlington-Rock

1941

5,296

•\ 258

Northern

Western

CONNECTIONS

Connections

2,26
3,155

1,340

718,038

1942

V-9i

5,240

9,384

49

2,331
3,173

.

District—

Rock Island & PacificEastern Illinois

897,564

658

144

215

&

& Pekin

>:

:

2,687

;

_

Garfield

Western

J tali

'7'V:'

1,707
6,810

& Rio Grande Western& Salt Lake

Jnion

131

3,630

2,278
8,055

11,644

...

Burlington & Quincy

Peoria

1940

2,698

2,086

& Illinois Midland

North

19,736,985

9,964

'

7,675

...

3,60 \

730,460

629

■'

and

ship¬

Comparisons

were

955

Alton

736,783

1941

1935-39

production

24,470

10,815

cor¬

.

first 29 weeks of 1942 was 2% be¬
low corresponding weeks of
1941;

1,167
9,389

Atch., Top. & Santa Fe System..

Chicago,
Chicago
Chicago,
Chicago

Reported

13,306

143,339

899:370 '

416

87,483

3,060

...

Spokane International—....
Spokane, Portland & Seattle

876,142

Freight Loaded /

/*/

144%
of
average
1935-39
ments in the same week.

31,731

Range
Atlantic...

_

Ann

responding week of

111,755

the

average of production in the

805

163

97,781

23,051

The

of

822

148

21,364

less.

129%

891

Year-to-date

—

fort Worth & Denver

:

6%

at

470

&

Pacific

Nevada

'C j"'-". '

stood

correspond¬

20,110

119,131

lsnpeming——__

637,169

'.

business

new

production.

the

877

'

740,359

*

above

with

27,448

Denver

FROM

8%

Compared

22,939

84

Dodge, Des Moines & South

Denver

;

were

orders

466

545,.

,

4,328

2,465,685

•

,

471;

733

9,866

Iron

2.495,212

23,264,167/

•

7,950
■

3,496

&

2,489,280

1942

.

583

St. Paul. Minn. & Omaha.

2,866,565

Total Revenue

.

140

Colorado & Southern.

CARS)—WEEK ENDED JULY 25

*

186

Missouri-Illinois

RECEIVED

"

-

-

571

1
,

3,217

Illinois Terminal

;

Railroads

10,984

149

1,503

Minneapolis & St. Louis

During this period only 43 roads showed increases when compared
with the corresponding week last year.
FREIGHT

21,450

190

Minn., St. Paul & S. S. M

-

REVENUE

26,144

Jreen Bay & Western..
..ake Superior &

The following table is a summary of the
freight carloadings for
the separate railroads and systems for the week ended
July 25, 1942.
-

3,267
13,810

10,203

2,793,630

24,381,573

and

5,095

9,678

Shore

opera¬

18,020

3,236

855.124

■

the

representative hardwood
softwood
mills.
Shipments
9% above production; new

3,060

13,981

Missabe

Toledo,

:

—

covering

of

19,333

2,457

3,351,840

...

associations
tions

Manufac¬

from jtegional

4.014

18,980

3,215,565

*

536

Lumber

Association

25,909

—

illgin, Joliet & Eastern..

1940

v

83

2,123

500

18,352

2,896,953

.7J

.

156

2,960
,

2,783

855,522

—i..—™w

23

23,149

4,160,060

18

284

n

2,253

3,510,057

_

1,197

350

19,539

857,037

4.

'

36

1,387

■

3,385,769

...

turers

776

209

—:

3,066,011

7

3,351.038

484

'; i ,341

less, according to reports to
National

4,195

Western

753,855

....

Week

Week

3,454,409

756

366

Milw., St: P. & Pac.™

Great

South

,

,'.7r

;

408

10%

25,753

& North Western

4,170,713

June

July

1941
"

May

of

-777

the

201

District—

Culiith.

.

."<• .7-.' -;:v

v.

345

187

28,990

.....

Central—.

Ouluth,

reported decreases, compared with the correspond¬
except the Southern and Southwestern but all
reported increases over 1940.

""

•'

•

277

119,663

Chicago
Chicago
Chicago,
Chicago.

All districts

•

213

36

amounted to

1941,

316

438

during the
July 25, 1942, was 4%

;

13,875 cars, an increase of 460 cars
above the preceding week, and an'increase of 580 cars
above the
corresponding week in 1941.
' »/'/■/*
in

2,591

1,338

Total

week

1,571

2,573

565

Line....—

"Northwestern

.below the preceding week,- but an increase of
11,791 cars above the
corresponding week in 1941.

districts

1,385

1,294

156

Total

loading totaled 54,134 cars, an increase of 652
cars above the preceding week, and an increase of
6,703 cars above
the corresponding week in 1941.
Ore loading amounted to 90,324
cars, a-decrease of 1,925 cars

ing

3,955

486

1,785

Winston-Salem Southbound™.

products

Coke loading

488'

production

week ended

less than the previous
week, ship¬
ments were 2% less, new business

405

Creat Northern

'

379

Lumber

1,561

System

Pennessee

to

above the corresponding week in

962

7,730

Southern

Air

Southern

the

cars

1,253

9,121

Northern——

Seaboard

,

crease

1,507

Richmond, Fred. & Potomac.

'■

amounted

1,131
4,206

&

Line

Southern.——

Piedmont

10,668 cars, an, increase of
preceding week, and an increase of 624 cars
above the corresponding week in 1941.
In the Western Districts
alone, loading of live stock for : the. week of July 25 totaled 7,510
cars, an increase of 981 cars above the preceding week, and an in¬
1,098

1,675

Mississippi Central...—A-.——.
Nashville, Chattanooga & St. L..

the

1941..

237

2,940

Nashville—;
Macon, Dublin & Savannah

cars

preceding week, and a decrease of 6,564 cars below
the corresponding week in 1941.
'
/
Grain and grain products loading totaled
46,333 cars, a de¬
crease of 5,225
cars below the preceding week, and a decrease of
8,948 cars below the corresponding week in 1941.
In the Western
Districts alone, grain and grain products
loading for the week of
July 25 totaled 30,107.;,cars, a decrease of 5,300 cars below the pre¬
ceding week, and a decrease of 5,491 cars below the corresponding
week

303

802

Louisville. &

below the corresponding week in 1941.
amounted to • 162,287 cars, a decrease of 1,270

loading

below

cars

293

965

Illinois Central System—

Loading of merchandise less than carload lot freight totaled
87,587 cars, an increase of 223 cars above the preceding week, but
a

321

Gainesville Midland—
Georgia
Georgia & Florida
......
Gulf, Mobile & Ohio—

194!/^}'^:

in

'•

Ended July 25, 1942

1941

771

Florida East Coafct—_—-—A_

freight loading totaled 390,314 cars, an increase
the preceding week, and an increase of 22,207

1942

305

Columbus & Greenville

above

cars

1940

Ala...

of

—

&

1941

9,992

Birmingham

Durham

Connections

Coast™

R.

Central of Georgia
Charleston & Western

137,484 cars of 19.1%.
'
'
\ '
Loading of revenue freight for the week of July 25 decreased
1,545 cars or 0.2% below the preceding week.":
- ^
Miscellaneous

!

Northern.

Lumber Movement—Week*

Received from

1942

&

R.

Coast

Clinchfield

of

4,442

P.—W.

Atlantic

'

of

W.

&

Atlanta,

week

same

District—•

Alabama, Tennessee

Loading of revenue freight for the week ended July 25, totaled
855,522 cars, the Association of American Railroads announced on
July 30.
This was a decrease below the corresponding week in
of

Total Revenue

Freight Loaded

Southern

Atl.

471
Total Loads

Railroads

5,

.

\

1941

-

& FINANCIAL CHRONICLE

•

Volume 156

Note—Unfilled orders of the prior week plus orders
received, less production, do not
necessarily equal the unfilled orders at the close. Compensation for delinquent report-v
orders made for or filled stock, and other itemsmade
necessary adjustments of unfilled
orders.

Alien Property Custodian
Takes Over

Japanese Shares

Seven vesting actions involving
firms owned by Japanese interests
in

which
were

they owned

announced

a large
July 27
the Alien

on

by Leo T. Crowley,
Property Custodian.
These
in

addition

several

to

the. taking

German

firms

were

over

and

of

more

than 1,500 German-owned patents
in the fields of radio, television,
chemicals and aircraft

according
to

to

propellors,

Washington advices

the New York "Times."

THE COMMERCIAL & FINANCIAL

472

CHRONICLE

Thursday, August 6, 1942

-

this

Study Amendments To Proposed Tax Measures
Providing For Deductions From Taxable Income
On July 30

Boykin C. Wright, of the law
firm of Wright, Gordon, Zachary
Parlin & Cahill, was elected a Di¬

Bank Farmers Trust
Aug. 4.
The an¬
nouncement from the bank says:
"A
native
of Richmond, Va.,

rector of City

Company

on

for the same

shares

dividends

income tax)

(less

Senate

The

period,

June

accounts

statement of

its

In

30.

1942, the

of June 30,

as

Bank, Ltd., showed
total resources of £490,816,898 (as

Westminster

Senator George was said to have predicted that, the
Committee would amend the $6,271,200,000 pending

permit individuals paying off mortgages or other large
debts to deduct a portion of these payments from taxable income.
From the United Press accounts from Washington on that date we

payable on Aug. 1 to those share¬
holders whose names were regis¬
on

"... "As outlined, recently to
the
Committee' by Beardsley Ruml, of
R. H. Macy &

plan

"He

Wright graduated from Uni¬
of Georgia in 1911 and
Law
School in
1914, compared with total assets of
where he was President of the £469,477,437 on the same date last
thd principal
Harvard Law Review and the law year),"" of' which
items are: investments: £153,153,student selected from his class to
"Asked
if
such
a
provision
The Associated Press reported
513 (compared with £129,407,489);
receive Fay Diploma for highest
advances to customers, and other would not encourage persons to go from Washington July 31 that the
standing.
A Major in the First
£116,645,433
(against into debt to save on taxes, Sena¬ Senate Finance Committee moved
World War, he served overseas accounts,
tor George suggested that deduc¬ that
day to redraft a provision of
with the 82nd Division and was £120,186,537); Treasury deposit re¬
tions be permitted only on debts the
pending revenue bill barring
cited for bravery in action. After ceipts, £66,000,000 (compared with
contracted before 1940, and that the
diversion of
"hidden
divithe armistice of 1918 he was at¬ £72,500,000); coin, Bank of Eng¬
land notes, and balances with the they be limited to some fixed per-1 dends" into pension trusts after
tached to the Peace Conference in
several witnesses had in insisted
Bank
of
England,
£50,610,311 centage of the debtor s income.
Paris and became American Sec¬
He said the Treasury has not
j the House-approved section would
£43,144,843);. bills dis¬
retary to the Supreme Economic (against
yet solved the serious problem of SpUr the payment of inflationary
Council in 1919. Mr. Wright com¬ counted, £35,072,749 \ (contrasting
with
£18,524,670).
Current, de¬ working out an equitable formula cash bonuses, create demands for
menced practice of law in New
for debt-deductions, but added he
wage increases and hamper war
and other accounts, are
York in 1920 with the firm of Cot¬ posit,
shown at £455,374,641 (comparing was hopeful that a solution would production.
-%
■/,/:.
ton
& Franklin.
He became a
Mr.

versity

Harvard

credits

as

1941

instead of

Ruml

"Mr.

made in
1942,

against

taxes.

this

said

like

was

clock ahead to get
to work an hour earlier.

the

moving

"

every one

"The individual would continue
to pay his

Quarterly instalments as

usual, just as if. he were paying on
the income he made in 1941, but
legally he would be paying on his
1942 income.
If at the end of the

his 1942 income proved to be

year,

his «1941

than

smaller

he would get a

then

revenue,

If it

rebate.

proved larger, he would have an
additional tax to pay on the dif¬

>

.

payments being

sidered

the

the

calendar year would be con¬

this

;

said

Co., New York, the

would 1 involve' moving

that

so

>'/•••■'
••.•■''''■■■ .v'"'-'
y
'<"•
provision
also<£—
would cover corporations which posed
that tax adjustments be
have heavy debt obligations.
permitted in the case of corpora¬
'With rates as high as they are tions whose contracts with Gov¬
in the House bill,' he told report¬ ernment
agencies had been re¬
ers, 'individuals as well as cor¬ vised downward by re-negotiation;
but who had paid taxes on the
porations should be given some
basis of the original fee."
relief for debt amortization.'
quote:

>

collection clock ahead a year

tax

tax bill to

war

are

tered in the books of the company

Finance

to between $22,000,000,$24,000,000,000.) <
-

year

000 and

Then

ference.

...

1942.

'

'

be

having paid all in¬
due up to the end of

tax

come

would

he

with

credited

"

,

"With

'

of

start

the

he

1943,

would calculate his 1943 income at

v/v.'-''
the
same
amount
he
actually
and liabilities
The press advices further said:
'The whole thing boils down to
earned in 1942, and would begin
endorsements,
"Remarking that testimony in¬
as
per
contra £16,785,826 this,' he said. 'Taxpayers making dicated it was necessary to make payments on it at the rates fixed
that firm and its successor firms. etc.,
in
the new revenue bill.
This
(against £31,317,754 a year ago); large incomes and profits will find
Mr. Wright is now a senior part¬
changes, Chairman George
(D.,
The bank's paid-up capital and it difficult to do anything at all
system would be followed from
ner
of Wright, Gordon, Zachary,
named
a
subcommittee
toward payment of debts unless Ga.)
reserve remain the same as a year
year to year."
......
headed
Parlin & Cahill.
by Senator Brown
(D.,
given some form of relief.'
Mr. Ruml's views were previ¬
ago, both at £9,320,157.
v
and
including
Senators
"He said that if provisions for Mich.)
Radcliffe
(D.,
Md.), Taft
(R., ously referred to in our issue of
O. P. Decker, Vice-President of
The
directors of the Midland post-war tax refunds are written
Ohio)
and
Vandenberg
(R., July 30, page 384.
the American National Bank &
into the bill, it will ease the prob¬
Bank Limited, London, announce
Mich.) to confer with Treasury
Trust Co. of Chicago, has been
lem
of
making deductions for
an interim dividend for the halfexperts on amendments. ;' !
called to Washington to serve in
debts, since the deductions could
v
year ended June 30 at the,rate of
Ceiling On Lamb
"As the Committee closed Hits
the Control Division, Office of the
be charged off against that portion
8% actual less income tax, pay¬
The Office of Price Administra¬
Commanding General, Services of
for the week, George
of the tax refundable after the hearings
able on July 15.
The same rate
tion on Aug. 1 placed an emer¬
read a telegram from Jack Frost,
Supply, in the War Department. of dividend was declared a year war. ;
;
gency
60-day ceiling on lamb
He has been granted a temporary
"Mr. George pointed out that Executive Secretary of the Air¬
ago.
'
to
.prevent
a
sharp
leave of absence by the bank ef¬
corporations which have piled up craft Parts Manufacturers Asso¬ prices
fective at once. Mr. Decker is the
that
if
the rise in the retail price of lamb.
large debts to finance expansion ciation, v declaring
The ceiling is effective Aug. 10
third officer of the American Na¬
programs
'will have to fold up House-approved rate of 90% tax
and
pegs "wholesale
and retail
tional Bank to be granted leave
when government orders stop un¬ on excess profits were allowed to
prices of carcasses and cuts at the
for
wartime
service
with the
less they are given some relief.' stand many members of the Asso¬
Government.
Milton J.
Hayes,
"He said many manufacturers ciation would be forced out of highest charge between July 27
and July 31, but does not apply to
Assistant Cashier, is now a First
already are reluctant to take gov¬ business.
Costs
of building
a
standard ernment orders
live animals, said Associated Press
Lieutenant in the Army Air Corps,
necessitating plant
"The Committee heard several

1922 and

partner in that firm in
since then has

practiced law with

£419,502,019)

with
for

be

found.

"

acceptances,

.

.

..

,

Home Building

Costs

Rose Further In June

precently stationed at Sioux City,
Iowa, and Fred T. Hanson, also
Assistant Cashier, is seaman first
class serving at Great Lakes Naval
Training Station. In addition, 29
other employees of the bank are
serving in the armed forces

to

continued

house

6-room

rise

expansion because of their inabil¬
;
/'v:
came at
the end of an open session of the
Finance Committee during which

show¬ ity to finance it.
increase of 0.6% over May,
"Mr. George's remarks

during the month of June,

ing an

*

Admin¬
reported on

Federal Home Loan Bank

economists

istration

It is pointed out that this several businessmen testified that
sent the cost index—based on the
high tax rates in the House-ap¬
average month of 1935-1939 as 100
proved measure will hamper ex¬
—to a new high of 123.5, nearly
pansion of war production and
The
Fulton
County "Federal
10% above June, 1941.
The ma¬ force many small manufacturing
Savings & Loan Association, At¬
terials cost increase was 11% dur¬
concerns out of business.
.<
lanta, Ga., organized in 1933 to
ing the 12 months while labor
"Paulsen Spence, Walden, N. Y.,
promote thrift and home owner¬
costs rose 7.8%.
The report like¬ manufacturer of
pressure reducing
ship among the people of Atlanta wise
says:
valves, said Congress has 'over¬
and
surrounding
territory,
re¬
"The labor used in the construc¬ looked
the
essential
point'
in
ports continuous growth both in
assets and in number

and

loans.

of members

At the end of Decem¬

ber, 1941, the Association

reported

$2,138,725, as com¬

total assets of

pared with $131,575 at the end of
December, 1934, the first full year
of

operations. The Association was

Aug. 1.

1.1%

28%

elimination of
application fees ... provide insur¬
ance
protection to borrower in
paying off balance of loan in case
charge

extra

of death.

.

.

.

The Fulton County or¬

ganization, oldest Federal Associ¬
ation in the State of Georgia, is
headed by William

M. Scurry.

was

organizers

of

The

Company,

Dallas Bank and Trust

jointly
issued
for

with

the

invitations

to

South

Ave¬

in the

the 18 cities reporting

of

end

9

period,

at

Colonial

Avenue,

"

to

of

*

cities while

than $40 were

changes

of less

reported by the re¬

In all but one of these

cities

reporting increases of more

than

$100,

the
a

change

was

rise in labor

material costs showing less

due

costs,
drastic

changes."

1, which also said:
"Price Administrator Leon Hen¬

be taken

could

which

deductions

advices from Washington on Aug.

business firms for payments
made to pension and profit-shar¬
ing trusts to be distributed to their
employees.
The
witnesses
said
such restrictions threatened to kill

emphasized that the regu¬

derson

to

by

such trusts. \

off

against

objection

chief

a

providing

section

that
de¬

ductions

employers could take for
into trust funds must
limted to 5% of the aggregate

payments
be

of all

employees' wages.

The

em

'In the

of

burden

and

'The Treasury

knowing how to turn over capital

to

had suggested a

deductions

on the, tax

prevent the payment of what
called

witnesses

some

dividends'

into

'hidden

these trust funds,

especially where company officers
later - would
benefit
from
the
.

/•■/./ i-V.'v■
':■'T'\.
•>•''
"Arthur Hansen, of Chicago, a
consulting actuary who formerly
served as, counsel for a .finance

funds.

■

go
back to
subcommittee which investigated
catfishing.'
profit-sharing plans, asserted that
"C. F. Hotchkiss of Binghamton,
the
death of such trusts would
N.
Y., said that his company, have an immediate inflationary

bonds
for

Louisiana

and

some

prices

lamb

temporary beef

<,;.:.;..." : • Vi;:.

"Both

:■

mutton

and

lamb

excluded from

designed

help out production and to give
credit for being smart and

a

pork shortage,' Mr. Henderson

said.

mum

some

time, there is no

higher

.

which arise from

ployers off the excess over a pe¬
would be Permitted
charge
,

-:;.U-AA;:,

■ ■■

;•

mean

justification for shifting upon the
shoulders of the consumers the

fA^ur
;

measure

permanent ceiling are being per¬

was

amount of immediate tax

the

temporary

a

prevent a 'dangerous situation
from developing' while plans for a

"

"Their

was

fected/';1:. i. A

f

,,,

lation

riod of five years.:

want to get out war pro-

'A tax law should be

costs at the nicipal

increases

$100 to $500 were registered

from

in

the

Dallas,
The
Bank
Administration's
Texas, on Saturday, Aug. 1.
The analysis of prices reported by the
following are the organizers: Na¬
U. S. Department of Labor showed
than Adams, B. H. Majors, George
N. Aldredge, J. B. O'Hara, Rosser that the wholesale prices of build¬
J. Coke, Robert M. Olmsted, Lewis ing materials remained unchanged
R. Ferguson, S. B. Perkins, Arthur from the
previous month.
How¬
M. Gay, Hyman Pearlstone, X. R.
ever, the study pointed out, the
Gill, M. F. Richardson, T. E. Jack¬
items making up this total vary.
son and Cooper E. Wyatt.
Lumber, brick and tile increased
nue

you

duction?'

"

employees, largely to

business of this new banking

do

tions

want to collect taxes or • "L""

you

fast,' he told the committee. //jbase period.
"Mr. Spence said he was not
"Changes in the total cost fig¬ making any 'real money' out of
war
business, and only kept on
ures
for individual , communities
with it because 'I'm patriotic.'
during the period from April 1
'If I weren't,' he added, 'I'd
through June 30 were mixed. Of sell out, invest my money in mu¬

the opening

institution located on Forest

for

index

the

and

advanced

21% higher than

mainder.
The

'Do

1935-1939 average

Material prices

fractionally

pioneer among Federal Savings June
and
Loan institutions in giving

month—

May—and now stands

over

above the

month.

the framing the tax bill, and asked:

showed

greater increase for the

a

prospective builders advance com¬
mitments, including title checking,
and appraisals . . . payroll loans
to
finance construction,
without

house

this

of

tion

protest against restric¬
placed on the amount of tax

witnesses

were

maxi¬
issued in
April because at that time prices
price

these

of

farmers

the general

regulation

meats did

the

not reflect to

highest

of

the

four

alternatives which OPA must con¬
sider

before

establishing

price

agricultural commode
ities under the price control act.
"By
July
15,
however,
the
average farm price for live lambs
reached
$11.82, which exceeded
the ten year average of $11.12 a
hundred pounds—the highest of
ceilings

on

the four alternatives.

"Mutton, OPA said, which is a

,

which
the

makes

flexible

cables

for

into debt to meet the demands of
a

business which has risen 1400%

since 1940.

"He told the Committee that all
net

action."

Government, had to go heavily

profit after taxation next year

A

the

: /•.'

;v

.

erican meat

:•:.

"daylight savings" plan
painless advancement of

for
in¬

dividual income tax collections to
a

current basis was under serious

consideration

on

Aug. 1 by Treas¬

experts and members of the
will have to go toward paying off Senate Finance Committee,
said
a
Reconstruction
Finance
Cor¬ the Associated Press advices of
ury

poration loan unless some special that date, which also had the fol¬
relief provision is written into the
lowing to say in part:
bill.
"Chairman George said the plan
"M. H.

Robineau, President and

had

'intriguing'
aspects
being analyzed by
Treasury and Congressional
some

General. Manager of the Frontier

which

Refining Co., Cheyenne, Wyo., said
his corporation took over a heavy

both

burden of fixed debt when it was

were

leaders.

would
commit himself, he said the

"While

Senator

George

relatively minor item in the Am¬
low

110%

regulation
on

diet, is still well be¬

of parity and no price

has

been

established
/

•it.;:.:/''1

"The

lamb

ceiling follows

the

pattern of the general maximum
price regulations in requiring con¬
tinuation of customary discounts
and

differentials.

Its

issuance

OPA's price control
over every important meat item in
the American diet except poultry.
completes

"OPA

said

that

while

indica¬

tions pointed to a 1942 lamb crop
at least as large as last year's, that
farmers' income from this

source

probably would be 'substantially
larger' than the estimated $230,000,000 which they received last

He suggested that not
corporations with large debt bur¬ proposal held out some possibility
year.
dens be permitted to deduct part of simplifying the problem of col¬
"During March, OPA said, the
of these
fixed obligations
from lecting taxes from individuals who
The Directors of Westminster slightly,
while paint and paint
would be hard hit by the higher average price for good grade 30-40
excess profits tax payments.
Bank Limited, London, have de¬ materials
showed
a
downward
pound lamb
carcasses
in New
"Another suggestion for easing rates of the pending revenue bill.
clared an interim dividend of 9%
was
$19.66
a
hundred
tendency.
The remaining items the tax load on corporations was (The bill is designed to raise $6,- York
for the half-year ended June 30
which make up this index showed made by Senator Arthur H. Van- 271,000,000
in additional taxes, pounds; by June this average had
on
the £4 shares, and the maxi¬
risen to $25.10."„
denberg, Rep., Mich., who pro-,,bringing .total Federal, revenues,
no change from May to June.
mum dividend of 6 %.% on the £1




formed in 1940.

w

...