The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.
Final
Beg.
Volume 160
Public
New
Number 4342
Pays for
Addressing " the
49th Annual
Meeting of the National Associa¬
Pat.
Office
Conflicting Views Again Feature
Vice-President, The Cleveland Trust Co.
Analyst-Asserts "We Are Quite Safe" in
Prominent Statistician and
dorf-Astoria Hotel inN.Y. City on
lions Must Find New Employment
that the issue is being
Works and the
interest.
H.
Baker,
with
Employment Will Be of Record Proportions. Doubts an Inflationary
Fear That When the Duration and Difficulties
Gypsum Co.,. of Transition Are Experienced, Security Prices Other Than Government
urged labor
Bonds Will Decline, Particularly Prices of Second Grade Issues.- Warns
and
National
survey,
Price Rise but Expresses
to
solve
their
re¬
differences
quickly and
equitably or
"the world will
sadly
great
Both
a
1945 and :1946 are
looked
a
pands and
economic
tends
strength,
go
will
in
By IRVING S. OLDS*
will
so
the
Mr. Olds Lists As Favorable Factors for Post-War
Increased
it
involve
fun¬
damental
icah
ana
troubles," he asserted.
"For that reason," he says, "the
(Continued
Index
of
Ayres
o
on page
2623)
and
Regular
Features
We
ease.
are
f
perous
the
simplicity
quite safe
on
as our
in
The
is not
war
General Ayres
before the Cleveland Chamber of
Commerce Dec. 12, 1944. The text
of this address will be published
as the Dec. 15 issue of the Busi*
ness
Bulletin of The Cleveland
address by
S.
Their
Olds
so
♦An
the
on page
wisdom of the American people.
patriotism; courage and resourcefulness—
in the long-term
Irving
Trust Co.
(Continued
the war. That is the job at hand.
should like to record my faith
address
Economic Club
made
years
of mili¬
tary
training
in college be¬
the
First
World War.
an
that war.
in
For
„
„
I
officer
many
years I have
^een intimate¬
,
Neil Carothers
ly associated with ROTO military
training in the colleges.
I have
(Continued on page 2612)
outstandingly evident in meeting the problems
by Mr.
Olds
at
(Continued
2610)
ex¬
press an opin¬
ion. I had four
the One Hundred and Fiftieth Dinner
New York City, Dec. 5, 1944.
of
State and
New York, Hotel Astor,
of
enti¬
to
me
was
At the outset, I
erie nee
degree
tles
fore
Thoughts and plans fof the days of peace must
in no way divert us from our immediate task—
some
which in some
assigned topic: "The
great events, and one which
will bring to this country a good
of
BUY MORE
ex P
Nothing can be allowed
over.
any
had
I
not had
the way of its Vigorous prosecution.
stand in
if
small personal
Outlook for Post-War Industry."
the winning of
2624.
(1) ths
Industry:
to
An
offer
all
Future Is in Our Hands.
Tonight we have
the
on
judgment at
prising Industry, Labor, Government and the Gen¬
eral Public, Holds That the Substance of a Pros¬
can¬
have
Steel Corporation
assuming that 1945 will be a year
*
page
P.
innocent bystand¬
est in labor
i
Leonard
managers,
is always the party-at-inter-
ers,
opments
comment
ings, and, With the Cooperation of Elements Com¬
changes for so
people
many
not
to
Supply of Skilled Workers; (2) the Enlarged Productive
Capacity and (3) the Pent Up Demand for Goods.
Asserts the American People Were Never in a More
Favorable Position to Withstand Temporary Recon¬
version Unemployment Because of Peak-Level Sav¬
or easy
many
hesitate
I
to
be
because
CAROTIIERS
proposal for compulsory military
training in peace years, as I am
not a military expert., I should
.not presume
Chairman of the Board of Directors, United States
will
in
given
be
istration, Lehigh University,
Bethlehem, Pa.
ac¬
^
characteristics
consumers
to
—
that its devel¬
workers,
able
are
we
will
DR. NEIL
ex¬
field, and the public suffers/When
labor carries a chip on its shoul¬
der,1 and elbows its way over and
through the rights of another
group, the public suffers."
"The great mass of the Amer-
people,
which
Others
today's issue.
hand
in
Dean, College of Business Admin¬
previously published and is
equally the case with respect to
those
given in our columns start
subsequent issues.
This has been evident in expres¬
The transition is already
will
not
simple
exploit labor," he contended, "for
the
purpose
of creating unfair
competition, wages may be forced
industries
It
time.
"When management attempts to
other
it
forward on
a
huge scale
and for a long
diss i p a t e
that
Melvin H. Baker
strength and
abandon that leadership.
in
now
small
very
leadership and
down
expected, the comments
reflected
a
marked
opinion among con¬
tributors regarding the proposal.
destined to be years of transition from
casual
that we undertook our
comodate in
scale. As it ex¬
for
to
As
sions
under way on**
view a
nation,
with this thought in mind
was
good reason to believe
weighed by the public with more than
difference of
Lower National Income,
More Business Failures, Witb
peacetime economy.
wartime economy to a
training in peacetime^ there is
the results of which have_been
submitted
Against Inventory Speculation, and Foresees
Higher Wages, More Labor Disputes and
Interest Rates "Tightly Regulated."
It
to be
was
calling for a program of uni¬
symposium on the proposal
ing with the issue of Nov. "23.
manage¬
ment
our
versal military
and Despite Programs for Public
Pressing Needs for Civilian Goods, the Number Seeking
President of
the
received in connection
Judging from the number of responses
tion of Manufacturers at the Wal¬
Melvin
Copy
By BRIG.-GEN. LEONARD P. AYRES*
Assuming That 1945 Will Bring This Country A Good Deal of Social,
Financial and Business Turmoil.
Predicts in Transition Period 20 Mil¬
Dec. 7,
60 Cents a
Price
York,, N. Y., Thursday, December 14, 1944
Prospects lor Business in 1945
Unfair Managemenf aisd
Labor Practices: Baker
S.
U.
1
In 2 Sections-Section
ESTABLISHED OVER
Edition
on page
2608)
/
»
Municipal
WAR BONDS
Buy War Bonds
Bond
Brokerage
Service
VICTORY
for Banks, Brokers
Hirsch, Lilienthal & Co.
PROSPECTUS
and
other
obtained
R. H. Johnson § Co.
Members New Yortt Stock Exchange
Exchanges
authorized
may
from
dealers
-
Geneva
Rep.
I
25 Broad St., New York 4, N. Y.
HAnover 2-0(500
Chicago
INVESTMENT SECURITIES
or
'.
I R
48
•
-
NEW YORK
flfb'W.
York Curb Exchange
Tel.
Actual
Trading
Markets,
New
CHASE
NATIONAL BANK
New York 4
OF
THE
CITY OF
NEW YORK
Tele. NY 1-733
DIgby 4-7800
LOS ANGELES 14
/CmIricanmade
I
I
rmt
always
,
ELECTRONICS
Electrolux
$
I
Philip Carey
;
Manufacturing Co.
RAILS
BROKERS
634 SO. SPRING ST.
WALL STREET
York Stock Exchange
30 Broad St.
BOSTON
Cleveland
•BOND
C;0 «f ORATED
Members New
Members
<
HUGH W. LONG and COMPANY
New York 5
PHILADELPHIA
Troy
Albany
Buffalo
Syracuse
Pittsburgh
Williamsport .Dallas
64 Wall Street,
Teletype NY 1-210
from
THE
Hardy& Co.
Established 1927
London
Bond Department
and Dealers
be
Purolator Products,
MarkETS
IN'
Midland United
I
CANADIAN
\StCURITIESy
Preferred
Inc.
Analysis
INDUSTRIALS
upon
request
International
Detrola Corp.
Bull, holden & C°
INCORPORATED
,
HART SMITH & CO.
Kobbe, Gearhart & Co.
*■-
Reynolds & Co.
\
Members New York Stock
MEMBERS NEW YORK STOCK EXCHANGE
Members N.
14 WALL ST..
NEW YORK 5. N.
J.
45 Nassau
Y. Security
Dealers Ass'n ",
120 Broadway,
!New York 5
Street
v.
TELEPHONE-RECTpR 3-63QO
Tel. REctor 2-3600
Teletype N. Y, t-576
Philadelphia Telephone ^
Enterprise 6015
•
Telephone:
Bell
Exchange
ISTew York 5, N. Y.
RFctor 2-7400
Teletype NY
1-635
L
-
Members
New
York' Security
52 WILLIAM ST.,
Bell
ITew York
Dealers
N. Y. 5
Teletype NY
Assn.'
IRA HAUPT & CO.
Members
HAnover 2-0980
1-395
Montreal
Toronto
of
Principal Exchangee
111 Broadway,
-
REctor 2-3100
N. Y. 6
TeJetvn* NY 1-1920
c
1
L
•
CHRONICLE
THE COMMERCIAL & FINANCIAL
2594
Thursday, December 14, 1944
Trading Markets in:
Stores
Franklin
Dealers Ass'n
Dealers, Inc.
Security
York
*P. R.
1
Members
New
Tel.
.
.
•
*
Sold
Analysis
Request
on
Members New York Stock
25 Broad
By H. W. PRENTIS, Jr.*
Des Moines & Sou.
Ft. Dodge,
4% ,'91<
Superior Elev. & Fwdg., 6's, '51
Washington Prop.,. 7's, '52 & Stk.
Wilbur Sucliard Chocolate
Baltimore "Stock Exchange
120 Broadway, N. Y. 5
WOrth 2-4230
Members
•
Proper Regard to Business and the Pkblic.
Stresses Need for More
the Labor Movement. vj;v.';:";,
Attention^ to Public Relationships m
branch office*
our
Murray' W.
formed
been
Southwest Natural Gas
Company
N. E. Public Service
63
Plain*
7s
Pfdi
American Gas & Pr.
Stock
&
Wts.
herd-, Secretary and Treasurer.
of mind
as
Moore
the
in
past
was
Ceeil,
Inc.; 'was an officer of Investment
great confusion- Service* Corp of Texas, and was
asked why he- was. walking, with Donald O'Neil & Co.
the Vermont farmer who1 was
International
Mr.;
President of Moss,. Moore &
.
..
this afternoon in almost
before you
stand
I
*
Direct wires to
"
1-1227
Y.
N.
Bell' Teletype
j"
specializing in Texas municipals,
officers are Murray V/. Moore,
President;,
Frances
M.
Moore,
Vice-President, and Lucille Shep¬
They Will Be Subjected to Severe Legal Regulations.
Organizations to Operate on Democratic Principles
With Secret Ballots and Without Coeircive and Racketeering Practices
and to Foster Law-Abiding Citizenship and a Cooperative Spirit with
dividual Rights,
II
NY 1-1557
with, offices in the Dallas National
He Advises Labor
!
—
has
Co.
Exchange
NewOrleans, La.-Birmingham, Ala.
Republic Bank Bldg., to act as participating
and to Labor Is the Effort to Divide Our People Along Horizontal Class distributors and dealers in cor¬
Strata and Warns, that Unless. Unions | Give Adequate Protection to In¬ porate'' and
municipal
issues
4's, '52 & stock
'
&
Moore
Industrialist Asserts the Most Sinister |Threat to the American
,
;
TEX.
DALLAS,
.
National Association of Manufacturers
Past President,
7's
>
Formed In Dallas
' •'-"V,
,
President, Armstrong Cork Company
Common
&
Interstate Coal,
lisrray I@or@ I So*
"H I Were A Labor Leader"
4's, '56 (W. S.)
Chesebroagh Bldg., 6's, '48
>
St, New York 4, N, Y.
HAnover 2-0700
Broadmoor Corp.
Quoted
—
Steiner,Rouse&Co
NEW YORK
2-7815
TELETYPE NY 1-423
BELL
—
'
.
Exchange
REctor
Mallory & Co., Inc.
Bought
York Curb Exchange
120 BROADWAY,
Teletype NY 1.-672
Telephone BArclay 7-0100
York Stock
New
i
NEW YORK 6, N. Y.
BROADWAY
115
HA 2-2772
PI., W.Y. 5
40 Exchange
.
frfcpONNELL&fO.
Members N. Y. Stock Exchange and Other Principal Exchanges
Securities
of
|
,
Bought—Sold—Quoted
Goodbody & Co.
Members
Ass'n
1
i
Canadian Securities Dep't.
Established 1920
New
i'i' |
i
Noranda Mines
KING & KING
Nat'l
5% Preference
Bulolo Gold Dredging
Common
Rockwood Co.
cyanamid
Brown Co. Com. & Pfd.
Cigar Whelan
Avondale Mills
american
Abitibi Pr. & Paper
General Machinery
United
FUNDS for
We Maintain Active Markets in U. S.
Aeronca Aircraft
along the road
a
piece
as
—
Members New York Stock Exchange
Members New York Curb Exchange
:
65
——
Broadway
Bell
-
WHitehall 4-8120
System Teletype NY 1-1919
"
with
Power Securities
of rope in
a
rope
Y. Curb Exchange
N.
on
York Curb Exchange
New
31 Nassau
Bell
New York 5
Street
COrtlandt 7-4010
1-1548
Telephone
.
Teletype NY
System
Indiana Limestone
H. W.
Income
Prentis, Jr.
1952
6s>
5y2 % Debentures
& Preferreds
President, American Federation of Labor
Labor Leader Pleads for
Reiter-Foster Oil
mental condi¬
Vanderhoef & Robinson
Members
&
*5%
Common
Confidence, Mutual Respect, Cooperation and
Good-Will Between: Labor and Management as a Means of Preserving
tion is some¬
Private Business Enterprise.
Urges Management to Recognize the Right
what "similar,
of Labor to Organize and Bargain Collectively and Maintain* That the
for never'be¬
fore
have
I
Development of Labor Unions Parallels the Formation of Corporation*
addressed the
Under the Free Enterprise Systemv Favors Labor-Management Commit¬
Congress of
tees in Which the Rights of Labor and of Management Must he Scrupu¬
American In¬
Says the Philosophy That Labor Should Join With
dustry in any lously Observed,
other capacity
Management in the Actual Management of Property Could Not and
than
as
; a
Cannot Be Accepted as It Is Contrary to American Tradition and Our
manufacturer.
Free Enterprise System.
Today
I
am
horse!"
a
(Va.)
.
,
lost
My
or
Central States Elec.
By WILLIAM GREEN*
found
either
3/6s, 1956
Traded
an
know," he replied.
"I've
Savoy Plaza
♦
//
\\
"I don't
hand.
ar*d 7s
his
Fred F; French Investing
Common & Preferred
*Dealt
in
on
New
-
■-*' :i-
York Curb Exchange■
Frank C. Masterson & Co.
Meinbers New1 York Curb Exchange
64
WALL
'
ST:
NEW
Teletype NY 1-1140
YORK
5
HAnover 2-9470-
.
.
.
Properties
Retail
cast in
to
6s, 1959
Inc.
Common
f
Bell
Teletype NY
Labor
a
am
Leader."
else.
Street, New York 5
Telephone: WHitehall
I
I
supposed
It
is
"
In
luncheon program were
and
3-1223
of
tion
in
labor
'53
labor union execu¬
tive, but as you doubtless know,
served for a number of years in
perience
Pfd.
the
Prefterreds
.
in
Members N;
j
Bell Teletypes—NY 1-1126 &
inter¬
est and
main¬
tain
Possibly,
1127
policy
laid
down
our
Gompers
and
sought
to
sound,
*An address by
fore
the*
Congress
.
War
of
and
Reconversion
American Industry,
Meeting of the Na¬
tional Association of Manufactur¬
at the Waldorf-Astoria Hotel,
ers,
Dec.
Chicago, Milwaukee & Gary
WiHiam
constructive
6, 1944.
War
Green
thinking
Merrill
gress
the*
Reconversion, Con¬
meeting
Association
of
of
Lynch in L. A.
we
of American Industry, 49th
annual
Y.
Security Dealers Ass'n
Jr. has been
(Special to The Financial
by Mr. Green before
and
N.
Broadway, New, York 6, N. Y.
BArclay 7-0570
NY 1-1026
Macfadden
LOS ANGELES,
.
ated
Merrill
with
In
St.
the
the- National-
Manufacturers
Waldorf-Astoria
Hotel,
at
New
York,, Dec. 6, 1944.
-
past Mr. James
was
ment for Thomas
Kemp & Co. and
with
was
•*
Morgan
Cavanaugh
'
Sixth
trading depart¬
of
SI.50 Pfd. & Com.
Lynch, Pierce,
the
manager
Debenture 6's, '68
CALIF.—John
Beane; 523 West
Fenner &
Publications, Inc.
)
Chronicle)
become associ¬
Jr. has
James
R.
the
111
John R. James Jr. With
organized
Mr. Prentis be¬
request
the bank's New York office.
eliminate class warfare; reduce in-
Address
on
F.H.Kofier&Co.,lnc.
Members
free;
enterprise
by
49th Annual
5s,
public
Analysis
Both officials are connected with
'
*
Hanover 2-4850
37 Wall St., N. Y. 5
the
serve
Manager
appointed an Assistant Manager.
discussion and
wise
advance the interests of
Security Dealers Assn.
Y.
can
best
Assistant
from
and that James Hale
worth-
and
system if
through frank
Samuel
Breeue^ACompartt^
David G. Ackerman has been pro-
moled
December 30th,
&
York
e
while. We
,
New
Street,
Wall
City, members of the New York
Stock Exchange,
announce
that
commendable
the result of that ex¬
as
b
the
Preferred
&
Common
State Senate.
Ohio
part
1 d
n
o
w
59
dividend
payable January 2D to- Holders
Active Trading Market
Harriman
Brothers
Brown
Co.,
b jective
o
.
:* /
that'
of
perience, he has always clung to
r
United Piece Dye Works
-
as. a
Even
realiza¬
mate
cross co.
Common- Stock
%
ofi Record
Promote Twin ELY,
approxi¬
an
organized
Brown Bros* HarrimaBv
and
labor.
,
distinguished guest speaker.
Mr.
Green has not only had long ex¬
Corp.
England Public Service
i
interesting,
man¬
agement
one
tatives
Foundation Co.
New
this
formulated
sincere desire to promote un-
a
5
a
between
America, there is none with whom
should be happier to exchange
places momentarily than with our
Marion Steam Shovel,
who
inspired by
spirit of
cooperation
I
Eastern
those
der standing,
an
respeet I am singularly
fortunate. For of all the represen¬
1-1843
Convertible 5's,
that
confident
am
'
H. G. BRUMS & CO.
20 Pine
role.
intriguing assignment to say the
least.
For everybody likes, to let
hiss imagination run riot now and
then and try to. figure out what
he would do if he were somebody
Preferred
&
new
explain what I would do "If X
Were
Struthers Wells
a
C. E. de Willers & Co.
Members, New York Security, Dealers Assnv
120 Broadway, Nj Y.
REctor 2-7634
5, N. Y.
Teletype NY 1-2361
*
1948
(Continued
on page
2622)
,
(Continued
on page
2606)
•& Co.
Missouri Pacific
Gen'l
4s,
1975
Missouri Pacific
Serial
FASHION PARK, Inc.
SY^s
Makes men's
New Orleans
Great Northern
"Fashion
5s, 2032
Also
to
everywhere.
lem.
No
*
prob¬
Circular
'
All
investment
for
our
dealers
detailed
should
report.
I
78
PINE
ST.,
N.
Y.'ir
Teleytpe
NY
WHitehall
1-609
4-4970
I
I
Bonds, Pfd. & Com.
WM. J. MERICKA & Co
Troster,Currie& Summers
Members
Simons, Unburn & Co.
I
Request
Prospectus on request
send
Common
G. A. Saxi3n& Co., Inc.
on
Attractive postwar outlook.
Common
Utica, Chenango & Susque.
Corporation
Trading Markets
retailers
reconversion
Eastern
Engineering
Company
Owns Weber &
sells
1
Oswego Syracuse
Wellman
clothes; "Stein Bloch",
Park", etc.
Heilbroner.
Koppers Co.
74
New York 4, N. Y.
HAnover 2-0600
Tele. NY 1-210
Y. Security
Dealers Ass'w
Teletype NY 1-376-377
Private
Wires
Detroit
-
to< Buffalo
Pittsburgh
Union
Commerce
-
-
Cleveland
St. Louis-
BOUGHT, SOLD & QUOTED
Exchange
Bldg.f Cleveland
14
Telephone.MA-in 8500
HA 2-2400
Trinity Place, N. Y. 6
Members New York Stock Exchange
25 Broad St.,
N.
INCORPORATED
Members Cleveland Stock
29
Broadway, New York 6
WHitehall 4-3840,;*,;
Direct Private
X
MEMBERS
,
1,ttWire to Cleveland
-
One
Wall
NByi YORK STOCK EXCHANGE
Street,
New
York 5, N, Y.
Volume -160
t
*2595
THE COMMERCIAL & FINANCIAL CHRONICLE
Number.'4342
COMMERCIAL and
The
FINANCIAL
Kearney & Trecker
.\
>:
,
CHRONICLE;
We
interested in
are
llCHTtnSTfld
B. S.
offerings of
U. S. Patent Office
Reg.
I
Gisholt Machine
High Grade
William B. Dana Company
-
'
Publishers
25
.
Spruce Street, New York 8
BEekman 3-3341 :
Billings & Spencer
• u
■.
IF
Public
"
Utility and Industrial
ALL
WE'D BE
QTnnUQ
DPRTiTDDRn
L KJbr JuKKfcU
'
o
L vJv/IA.U
SECURITIES
WERE WAR BONDS
"
*
Herbert D. Seibert,
AND COMPANY
-
■
OUT OF BUSINESS—
Editor and Publisher
Whiting Corp.
William Dana Seibert, President
National Radiator
Thursday, December
,
14, 1944
&
encer
p
\
New
York
Security Dealers
Board of Trade
Broadway
NEW YORK 4
>'■
Our Real
advertising issue)
Copyright
1944
by
William
B.
Do You Know Youi
Company
Dana
Reentered as second-class matter Feb¬
Securities Department
ruary
York,
Specializes in
25, 1942, at the post office at New
N. Y., under the Act of March
3, 1379.
Subscriptions
TITLE COMPANY
In
States
United
and
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Money?
CERTIFICATES
By DR. WALTER E. SPAHR
Professor of Economies, New York University
*
Secretary, Economists' National Committee on Monetary Policy
j
BOUGHT
Explains Nature of Our Metallic Money and the Laws Relat¬
ing, Thereto. He Analyzes Further the Paper Money System of the
United States and Distinguishes Between Lawful Money and Legal
Tender.
Maintains the Present Monetary Standard of the U. S. Cannot
Be Defined in Simple Terms but Must Be Described and Its International
Aspects Distinguished From Its Domestic Aspects.
Again and again controversies arise in the United States as to
the defects or virtues or dangers in our money.
The current mone¬
tary
America,
Spain,
Mexico
and
$29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year.
Newburger, Loeb & Co.
$20 yr.
have
an
im¬
York
New
Stock
Exchange
NOTE—On account of the fluctuations
I
in the rate of
Bell
WHiteha!U-6330
Teletype NY 1-2033
exchange, remittances for
foreign subscriptions and advertisements
must be made in New York funds.;
,
welfare of the
American
derstand
the
They
people.
n^ed
to
d
un-
Money
the
life-
u s
t
r
still
y
and
tary
but As Facilities for Dealers and Brokers.
He
Explains the Use and
Limitations of the "Auction" Method of Trading on Exchanges, and
Points Out Why Only Certain Types and Classes of Securities Are Suit¬
able for This Method of Marketing.
He Maintains That in All Leading
Countries, the Bulk of Security Transactions Are Effected Through
Dealers or Banks and Not Through Listing on Exchanges, and Warns
That a Revolutionary Change in the Present System of Securities Trading
Will Handicap Business.
its
is
to
the
purity
Dr. Walter E.
.
.
1 ■
.■
'
■
;
:
•
•.
' v
'■
What Securities Exchanges
Much has been written
over
•
'■
.
1
Du Mont Laboratories
Bought
J.F.
Metallic Money—Gold
coins.
issued
by
All
our
coins
Ill
Government;
the banks merely pay them out.'
Gold is no longer coined by our
(Continued on. page 2614)
are
,
administrative
the
.
■
.
Bell
REctor 2-5288
System Teletype, NY
Assn.
Private
Wire. to
Los
1-2480
Angeles
itoitimif
Asserting That Governmental Spending Makes Taxing, Mr. Humphreys
a
Congressional Reorganization Which Would Unite the Appro¬
priation and the Taxing Committees. Calls for a
$20 Billion Post-War Budget That Will Cover Ex¬
penditures and Provide for Amortization of the
Years
Debt in 60
National
Provided
and
Which
Will Be
by $5 JBillions in Excises and Miscel¬
laneous, $6 to $7 Billions From Corporation Earn¬
¥f
n
jr
Members New
170
York
Security Dealers Ass'n.
Broadway
COrtlandt 7-6190
Bell System
Teletype NY 1-84
Recommends Tax Simplicity With Repeal
payers.
of
Est:;im
simian &
ings, and $3 to $9 Billions From Individual Tax¬
Capital Stock and Excess Profits Tax and the
Confining of the,Taxing Power to Revenue Pur¬
poses
Instead of Effecting Social and Economic
SUGAR
Adjustments.
The
subject of taxation is simply bound to
wherever people are assembled in
of two or more.
1
As a subject of conversation it beats the
weather—and future weather and taxes both
can
be forecast with about the same degree of
come
up
SECURITIES
groups
Harry E. Humphreys
absolute uncertainty.
I fortified
•-
*An address
American
turers,
myself as best I could to discuss such a
War and Reconversion Congress of
by Mr. Humphreys before the
Industry, 49th
controversial
Annual Meeting of the National Association
of Manufac¬
Waldorf-Astoria Hotel, New York City, Dec. 7, 1944. Mr. Humphreys
Committee on Taxation of the National Manufacturers Association.
•
DUNNE & CO.
Members New York Security Dealers Assn
25
(Continued
on page
Broad
WHitehall
is
St., New York 4, N. Y.
3-0272—Teletype NY 1-956
Private
Chairman of the
Wire
to Boston
2620)
PANAMA COCA-COLA
Dividends paid 1944 to
date
—
Dividends 1943
facilitating marketing they
The
-
-
Public National Bank
$2.75
3.65
& Trust Co.
$4.50
1942
'V
condemned by others.
National Radiator Co.
Approximate selling price—28%
Circular
on
Analysis
request
HOITRQSESTPYOSTER
'
checks and
handicaps have reduced the extent of their operations and
have driven trading from their floors.
/;\v.,.. ..
(Continued on page 2616) •J.J
■/"
,
;
.
Dealers
Broadway, New York 6, N.Y.
■:
Do
These
Security
By H. E. HUMPHREYS, JR.*
/
the last half-century re¬
restrictions.
Reilly&Co.
York
Chairman, Finance Committee, U. S. Rubber Company
prohibitions through legislation and governmental regula¬
tion both in this country and abroad.
The securities as
well as the
commodity exchanges are under severe surveil¬
and
Sold
Members
New
evils ascribed to them have been submitted to checks and
lance
-—
Peace, Progress and Taxes
garding the functions, activities and regulations of organized
exchanges. As a machinery for
have been* extolled by some and
well-
,
'
i
Spahr
of
"
;
Industries
are
of
minor
and
tem of
institutions.
and
all, there is our coun¬
try's metallic money—gold, silver,
A sys¬
marketing, older than the existence
of securities and which long antedates the
creation of organized exchanges or pre¬
scribed market places, is to be completely
blotted out as remedy for overrated frauds
and evils, or as a step toward further gov¬
ernmental paternalism.
A high official of
the Securities and Exchange Commission,
backed up by editorial comment in a New
York newspaper, deplores, the decline in
securities transactions on organized ex¬
A. M. Sakolski
changes and suggests that the nation be
"districted" into regional exchange areas,
and that all trading in securities be restricted to licensed
transactions on the floors of these government-supervised
been
over by mone¬
economists,
Congress,
the
Administration,
and
Our
one's blood is to his physical
.
sources.
have
being fought
First
system as the
being.
Great American
others.
social
and
Wickwire Spencer
as
economic
Once more, the long arm of regimentation stretches out Urges
multiple claws to strangle free trade and private enterprise!
Strong suggestions that all securi¬
ties that are bought and sold should be
listed on an organized securities exchange,
and that private negotiations in the capital
market should be prohibited, comes irom
bureaucratic and idealistic
Teletype NY 1-1203
-
Triumph Explosives
Federal
good health of
our
Economist Traces the Development of Securities Trading and Points Out
That Organized Securities Exchanges Were Created Not As Substitutes
Broadway
HAnover 2-8970
of the major monetary
which
issues
in-
vital
l'
■
essence
of
blood
College
39
New York 6, N. Y.
purse?
In any event, an un¬
derstanding of the essentials of
our
money and monetary struc¬
ture makes it easier to appreciate
and its sound-
SAKOLSKI, City
Members New York Security Dealers Assn.
his
g
ness
A. M.
Information
L. J. GOLDWATER & CO.
know, something about the differ¬
ent kinds of money he carries in
n
bearon
the
c o m m e rce
By
Statistical
wish he knew, or
is
The Fallacies ©I
Complete
Furthermore, does not everyone
think he should
portant
them.
Members
40WaIISt.,N.Y. 5
QUOTED
-
issues
i
Other Publications
Bank and Quotation Record—Mth.
Monthly Earnings Record—Mth.. .$20 yr.
SOLD
-
Economist
Cuba,
Call lis for quotes
4-6S51
TITLE COMPANY
Central
CERTIFICATES
STREET, NEW YORK
Telephone; WHitehall
Exchange
-
Monday
Other Offices:
135 S. La Salle St.,
Chicago'3, 111. (Telephone: State 0613);
1 Drapers' Gardens, London, E. C., Eng¬
land, c/o Edwards & Smith.
Estate
WALL
;
;
(complete statistical issue—market quo¬
tation
records,
corporation, \ banking,
clearings, state arid city news, etc.)
Teletype CG 129
BUY WAR BONDS
09
Teletype NY 1-5
Members New York Stock
Ass'n
Bldg.
Harrison 2075
Teletype NY 1-832, 834
week
a
Thursday
and every
i
e
CHICAGO 4
DIgby 4-8640
every
(general news and
,
STRAUSS BROS.
32
(
'•
BE
ANY OBSOLETES1
25 Broad Street, New York
;
Telephone HAnover 2-4300
Published twice
Philip Carey Mfg.
Members
THERE'D NEVER
.
1
William D. Riggs, Business Manager
/
74
Trinity Place, New York 6, N. Y.
Telephone: BOwling Green 9-7400
C. E.
Members
Established 1914
Teletype: NY 1-375
61
on
Request
Unterberg&Co.
N.
Y.
Security Dealers As3'n
Broadway, New York 6, N. Y,
Telephone BOwling Green 9-3565
Teletype NY 1-1666
& FINANCIAL CHRONICLE
THE COMMERCIAL
2596
Thursday', December 14, 1944
BOSTON, MASS.
American Hardware
PHILADELPHIA
Crowell Collier Pub. Co.
;
Art Metals Construction
American Optical
Phillip Carey Mfg.
Eastern
Metal & Thermit Common
-
Title Guarantee & Trust
Cespedes Sugar 7M>s' 39
Christiana Securities Common
Colonial Stores Pfd. & Com.
Bought - Sold
-
Quoted
Harris, Seyboldt & Potter
Aetna Life
Members N. Y. Stock Exchange
-
and Other Principal Exchanges.
1
<
TELEPHONE BARCLAY
Remington Arms
:
American
-
SOLDQUOTED
—.
Gas & Power
Company
Deb.
American Gas & Power
Maine Central Pfd.
Central States Power & Light Corp.
Moxie*
Consolidated
"f
(
Company' •
-■'
5
6
Conv. 1st
4-6
Shawmut
,
Bank
BOSTON
j
Building
MASS.
9,
Capitol 4330
Pennsylvania Gas & Electric Corp.' Deb.
6
Scovili Mfg.*
Public Utilities Consolidated Corp.
1st
Seattle Gas Company
1st & Ref. 5
Southern Cities Utilities Co.
1st Coll.
5
due 1958
Telephone Bond and Share Co.
Deb.
5
due 1958
Waldorf Astoria
A
■
*
Suggest;
Bird
Eng.Class, Com.
Net
Quick
.
.
Book Value
.
$7.16
Co.
Collins
$16.34
.
Radio
;
->
.
about
Minneapolis
POST
10
Tel, HUB
Gleaner
Great
OFFICE
Industries*
\
Oxford Paper
Alegre Sugar
Remington Arms
Riley. Stoker*'
!J
;
Co.
Shamrock Oil
Standard Comm'i Tobacco
Tank
Oil
United Drill
United
"A"
&
Pump
"B"
&
Stove
I ;
U. S. Finishing, Pfd.
U. S. Truck Lines
;
:
is certainly a
have been
written
S.
Machine, Pfd.*
'
Bros.
Finishing, Pfd.
Piece Dye, Com. & Pfd.
United
and
Gas
&
Power
Wrnts.
&
Birmingham Gas
Conn. Light & Power
Cons.
Elec.
&
Gas
Illinois
Iowa
Southern
Div.
-
Com,
Mass. Power & Lt. $2
Portland Elec. Power
tion.
Pfd.*
Prior
Natural
Gas
Mont Lab.
"A"*
"•»
were
accepted
Magnavox
Circular
on
Request
machinery
we
there
was
were
going to be
a
Herbert1 ft;-Anderson
! - f it '
>f
; hp o-:
-...I -•
we
of
both
'*
/
andfi'a
Distributors
Group, Inc., and Group Secufities,
;•* *
; 7jr//B aoli.'f
Inc.
r ■n 11
period of
-~i \
9< s
r;
hi
Lester Gannon with
nec¬
Direct
-Phone
to
NY
13™
Philadelphia
ENTERPRISE 'PHONES
Hartf'd 6111'
Buff, 6024
Bos.2100
son
_
the
.
War
.
and
.
dustry at the 49th Meeting of the
National Association of Manufac¬
(Continued on page 2618)
&
6s
S.
Broad
St.,
Phila. Phone
Philadelphia
9,
Pa.
New York Phone
Bonn & Co., 120 Broad¬
New York City, announce
that Lester F. Gannon is again
associated with them. Mr. Gan-
,
v
■
.
non
baum
real
,
;way,
Excellent Growth Quality
&
Co.
estate
as
bond
in
appeal to investors
manager
the
of
department.
-
]
excellent
New York Cityi1'
,
Copies of
this interesting memorandum may
upon request from Price,
McNeal & Co.
be had
.
growth
companies, according to a detailed
Glendinmngto Admit
study of the company prepared by
PHILADELPHIA, PA.—Robert
Glendinning & Co., 123 South
Broad Street, members of the New
York and Philadelphia Stock Ex¬
New
York
Hanseatic
Broadway,* New; York
Corp.,
5,
N.
120
Y.
,
has recently been with Birn-
Boston & Maine
,
interested
way,
Recon.
Congress of American In-
turers.
4^s
Pennypacker 7700
Hanover 2-0310
Teletype PH 180
International Cellucotton Prod-
W. T. Bonn § Go.
address made by Mr. Wil¬
before
version
Annuity
City, members of the N^w ,Yprk Looks Good
,
Stock Exchange and other leading
Boston & Maine RR. offers an
exchanges, as of Jan. 1, 1945.''Mr.
interesting situation, according to
Asby in the past was a partner in
a
new
memorandum issued by
Carmichael, Carson & Asby.
Price; McNeal &
165 Byoad-
cuts Co. should
W. T.
BROADWAY, NEW YORK 5
'
Penington, Colket & Co.
partner in Baker, Weeks
Har¬
den, 52 Wall Street, Nqw?. XPr^
for Congress to appropriate
large sums of money to take care
REctor 2-8700
.
123
*ti
J
told that
dustry and that it would be
120
v
William D. Asby will become a
essary
*An
Exchange
My to Be Partner
In Baker, Weeks Go.
terrible unemployment in the in¬
Members N. Y. Security Dealers Assn.
Louis Stock
ex¬
used for production
We
i
Harris-Seybold-Potter
airplanes a day in
plants and with the same
of automobiles.
i
Allan Wood Steel Pfd.
_
director
that
Irving Shoe
;
a
executive i vice '.president
★
John
STREET
Lehigh Valley R. R.
the
chicago tractions
System Teletype PH 279
4s, 4'/^s & 5s
Members St.
could make 500
same
Boston Phone
Enterprise 2050
Bell
Self-ap-
told
ST., PHILADELPHIA
N, Y. Phone
Pa. & New York Canal & R. R.
criticized for fail¬
were
■
SECURITIES
St.LouisLMo.
available.
We
f
.
Common & Preferred
■
Mallory*
do.
Lives, etc?
on
Whitehall 4-1234
Stix & Co.
509 OLIVE
P.
R.
Penna. Co. Ins.
Mr. Anderson: is
Inc.
Corp.*
Majestic Radio & Tel.*
Stromberg Carlson
Submarine Signal
*
Carlton, Atlantic City 6's
Germantown Triist
INVESTMENT
production orders were
as
fast as they were
war
,
Ritz
KEystone 3101
been
to convert when the truth was
that
International Detrola*
.
Company
Real Estate Trust Co.
1510 CHESTNUT
every
ure
GeneralInstrument*
Bldg.
t
Phila, Phone
should
We
i
Rittenhouse 8500
hand to tell us how we
accomplish the job. We in
the automobile industry were par¬
ticular targets for gratuitous ad¬
on
«•
«
500 California
Provident Trust
Colo.
situa¬
pointed
Wilson
i
F.J. MORRISSEY & CO.
perts appeared
vice.
Du
E.
c.
Pfd.
Puget Sound Pr. & Lt.
Queensboro Gas & Elec. Pfd.
Republic Natural Gas
*
Southwest
similar
Com.
Com.
Util.
BE. SIMPSON & C0.
we
experienced
and
;}.'•■)
Northern Trust Company
war
production
Teletype PH 73
-
ST. LOUIS
director of Tilo Roofing
a
■+
Bankers Securities Corp. Pfd.
Roofing Go.
Company,
,
Central-Penn Nat'l Bk.
"
went into
Pfd.
Arr.
Oil
United Gold Mines Co.-
we
Water
Power
' *
*
When
Derby Gas & Electric
Federal
Phone Rittenhouse 3717
common
sense:
Amer.
Kinney-Coastal
j'
•'
Herbert R. Anderson has
elected
OFFICE
Stock Exchange Bldg. Phila. 2
;
/
Of Tilo
general
subject, ,some
of them quite
practical and
many of them
reaching
be¬
yond the realm
of
possibility
Sanford
Palmer
V v<-:
Byliesby & Company
PHILADELPHIA
on
this
Consolidated Textile
Mills
com.
Oil Co.
Holly
H. R.Andersen Dir.
and
spoken
Corp.
Berkshire Fine Spinning
Botany Worsted, Com. & Pfd.
Amer.
'
H. fvl.
*
lions of words'51
Aspinook
B.
; ,y^
Elkton
Denver 2,
assigned to me, ''Victory First—Then Reconversion,"
broad one to try to cover in;15 minutes.
Already mil-
Mills*
Merrimac
Issues
following:
the
Empire Lee Mining
The subject
iliilil
Goodall
Fractions-
*
Auto Manufacture Because of the
'
v
Alabama
sell
or
Lincoln Mining
■
Radical, Change-Overs f Involve^ and the Time Required for Setting Up
Assembly Lines. Says Best Peacetime Employment of General Motors
Was 250,009 and for the Early Post-War Years Should Reach 400,000
—Nov/ 455,000,
Warns Against Experiments in Communism and
Socialism and Denies That Industrial Progress Has Been Achieved at
Expense of Social Progress.
j
,
;
|
^
>
'
i'
^
President of General Motors
Peculiar Difficulties in Resuming
,
Punta
Tokheim
buy
Cresson Cons. Gold
Industrialist Discusses Problems of Reconversion and Points Out the
>
:
-
/l' ' j ^
By C. E. WILSON*
;
Harvester
Robertson
will
Alma
■
H.
&
Warner Co. pfd. &
'
Mokan
U.
Teletype BS 69
.
Lots
Empire Steel Corp. com.
Pittsburgh Railways Co.
MASS.
9,
1990,
Odd
SQUARE
,
We
American
1
Inquiries Invited
'All
Welding
&
'
Wawaset Securities
Liberty Aircraft, New
Magazine Repeating Razor
Mannon Herrington
Merchants Distilling*.
&
Dealer
DENVER
Co.
Machine
Y. C.
American Box Board Co.
,
Corporation
Federal
N.
to
$5
Circular Available
LERNER & CO.
Milwaukee
PH 30
Phone
COrtlandt 7-1202
;
,
St., Philadelphia 3
share
...
.
"•
"A"*
Cement
Drackett
H.
per
& Pfd.
V'"
Eastern
H.
share
Motor*
Brockway
Cons.
per
.
*
Private
Son*
&
Buda
\
1606 Walnut
51# Par
BOSTON
Aetna Standard
Anier. Window
|
I
Pennypacker 8200
Incorporated
Boston
New York
Chicago
continuing interest in:
Low-Priced Steel Stock
A.C.ALLYN«roCOMPANY
Wyandotte Worsted
3-7253
BOENNING & CO.
Market
:
v
Los Angeles
Hagerstown, Md.
Foamite
Central Iron & Steel
Whiting Corp.
Wickwire Spencer
,
Common Stock
due 1954
i
We
.
^
.
,
51/2 due 1948
Standard Stoker
Triumph Explosives
a
Teletype BS 424
due 1976
Purolator*
Title Guarantee & Trust
^
due 1968
Northern Utilities Company
i
..
..
V. Telephone—WHitehall
due 1962
Deb.
Philip Carey
Pollak Manufacturing r
;
I
between
American-La France-
'
due 1945
Coll. "A"
Elec. & Gas Co.
..
.
Pittsburgh, Pa.
Pont, Homsey Co.
due 1953
3.6-6
System
;
i
We have
du
3-5 due 1953
-
Wire
Walnut Street, Philadelphia -2
\
.
General Machinery
'
4
Deb.
-
Private
New York
}
iWest Michigan Steel
.
1529
i
-Valley Mould & Iron
: i
j,
BOUGHT
Franklin Stores
.
.
N.
Electrolux*
*
•
■
v
Emerson Radio
BUCKLEY BROTHERS
Philadelphia,.New York ancLLos Angeles
j
Douglas Shoe, Com. & Pfd.*:
Deep Rock Oil '
••
Parker Appliances
;;•
j
1-4172
Request
Members New York, Philadelphia and
.Los. Angeles Stock
Exchanges
i
■ i
NY
.TELETYPE
7-0100
j
on
Midwest Refineries Pfd. & Com.
j.
i
v-t{;vChicago
new york
Boston & Maine, Pfds.
Brockway Motor*'
Cuban Tobacco, Pfd.
\
4 105 WEST ADAMS ST.
115 BROADWAY
Memo
|
Laurence- Portland Cement
'
American Hardware*
Corp. Common
Bird & Son
Copies
of
this.t interesting study
may'be hatf'frqp the firm upon
request.
changes," well admit Robert Glen*dinning, Jr., to partnership in th|
fifth
on-rar.-1, 1945.
2597
CHRONICLE
THE COMMERCIAL & FINANCIAL
Number 4342
Volume 160
AMERICAN BANTAM CAR
Outlook for Pittsburgh Railways
6% CUMULATIVE CONV. PREFERRED
Dividend Aug. 31,
'
A
and
summary
practical study of the system
and its principal
underlying companies
1944 $.60 (Arrears $4.05)
$10 par (callable at 14 plus arrears)
;
Selling price—12
Copies now available
'..
'■■■■
Circular
:r-
•
• •
on
Abitibi P. & P. 5, 1953
Request:.
;
Aldred Inv. 4V&, 1967
i.
.
Ass'd Tel. & Tel.
v':.'
5
NEW YORK
STREET
PINE
Established 1914
1
74
t
-Teletype: NY 1-2425
Telephone: HAhover 2-7793
■
Trinity Place, New York 6, Ni -Y.
"
"
1948
5s,
Missouri Pacific
,
To Its Employees
.,,
«
Wisconsin Central
HODSON & COMPANY,
;
By s. c. allyn*
;
Industrial Executive Points to the
George R. Cooley & Co.
inc.
Established
New York
William
52
1924
N. Y.
St., New York 5,
Teletype NY 1-2419
WHitehall 4-3990
•/
and" the
*
si
lie:
^
or
is
OR
a c
'^.Mutilated
for
60 Wall Street
York 7, N.Y.
'
„: f
of
em¬
ployee rela¬
present
a
peculiar
challenge. We
aire v i t a 11 y
Ass'n
concerned
;
\
in
Telephone
Ijow ;manage-
Whitehall 3-7830
New York 5
all
ment
speaks
its employ-,
to
ees.
This sub¬
ject," -w hie h
FOR ABOUT $5,500
i
constitutes my
Can Buy
You
TRADER
brokerage business
Many
for
Banks
Savings
C.
to our
Paying $310 Annually
experi¬
years
Yield
■■■;
formula
Box S7,
Financial
&
Commercial
New York S,
Security Adjustment Corp.
St.,
Spruce
25
Chronicle,
Ass'n
Members N. Y. Security Dealers
10 Court St.,
N. Y. -
many years.
B'klyn 2, N. Y. TR. 5-5054
solution
its
for
it
the
visualize
to
necessary
unlisted trading.
and
employees ior
Fully to comprehend the prob¬
INFORMATION
FOR
WRITE
we
lem of industrial relations and the
5.%: X
over
day's program,
particu¬
lar appeal for
have been talking
has a
Allyn
because
me
Trust Funds
or
seeks new
investment field
in the
ence
Legal
Also retail ac¬
connection.
counts.
;
$8,000 vatue of Bonds
Curb
Board * and
big
With
to¬
part, on
'
is
vast
changes wrought in modern in¬
dustry,: Management has sup¬
planted personal or family own¬
ership. In other days a man's skill
his
was
social
curity.
look
the
to
economic
and
he
Today
se¬
inclined
is
Government
to
for that
AN EXPERIENCED
small
SECURITY SALESMAN
established
house.
only to an invest¬
to sell
with
ment clientele.
Incorporated
Moseley to Admit Partners
Applications
filed
being
are
of
-.
But—and here
The
Financial
of the issue before
familiar
a
the
worker. amid
the
out¬
ceaseless
of
flow
product. In a word, in¬
dustry has become impersonal. It
means
that the gap between top
management and production has
steadily widened. There must be
Commercial
25
Street, New York 8,
N. Y.
■
/
a
...
balance" between
small compact
on
;the.';executive
and the worker level based
level
We have
us—mass
has tended to bring about
mass personnel—the anonymity of
put
markets.
Chronicle,
supremacy.
get to the core
we
.
high type man
a
represent us.
to
P14,
Spruce
the serv¬
ments and wish
ices
&
invest¬
unlisted
grade
better
the
in
deal
We
unlisted
industrial
American
over-the-counter
with
York
New
the
extensively
vertise
leads
paradox-in a considerable
part of our industrial relations is
T# Be Formed En If y-:
and
v
statistical help?
'•if.
,'i
-
v
..
,
y
will
.right. 4 man ,we
ofa contract with
City.,
$10,000
per
L.
this
.
>
Box^ No. C 14,
•
25
and
,
Max
E. Pol¬
Mitchell, Assistant Vice-Presi¬
The
*
new
firm will act
as
dealers
territorial
and Federal Lank Bank securities,
underwriters and dealers in State,
m
The Commercial
Financial Chronicle
Spruce St., New
York 8, N.Y.
U.
S.
Government,
municipal and Housing Authority
organization has been ad- - <
vised of this advertisgpient
c-
Our
\i
J
'
_
L-iL
other
or.
bonds.
u
of
5c
•mca
'.
Officers werevj$p^erj|y ^rinci
pals in Harvey
Sons, The.
Security Dealers Ass'n
New York 5,
N. Y.
Teletype NY 1-897
change requesting approval of the
ad mission,..effective Jan. 1, 1945,
of
Leo-F.
Ernest
Daley," of Boston; and
Ward, of Chicago, as
L.
WE BUY
partners-in the firm of F.S. Mose¬
ley &
been
Mr. Daley has
Co.
with
associated
1927 when he
'the
since
firm
Forbes & Co. following his grad¬
uation from Princeton University
in
1929
with
has
and
;.V
been
WITH
j.
i
;
Coupons Missing
Harris
with
associated
came
BONDS
!
graduated "from
was
Harvard University. Mr. Ward be¬
.
.
.
..
.
••
.
..
..
..
connected
the
buying department of
F. S. Moseley & Co. in Chicago
since 1933.
;;
,
It is reported that the firms of
F. S. Moseley & Co. and Arthur1'
Gude, Winmill & Co.
Members Neio York Stock Exchange
1 Wall
DIgby
St.; New York 5, N. Y.
4-7060"
Teletype NY 1-955
Perry & Co., Inc. are planning to
Jan. 1, 1945. The prin¬
cipal officers of Arthur Perry &
merge on
Co., Inc. will become partners in
F.
S.
Moseley & Co. which firm
of both
talk
across
Ihgy do not
.oce#n?
the
table
erriployees..IE^xje
e u
with
minds'-yof .people.
miles
away
their
t i ves know
thousands
of
than in the minds of
people near.at hand in their own
olants.;cHnto
the
World War II. we
of
have packed^the
five
organizations will be
'
tained.
■■■■■'.
American Maize Products Co.
two
years
banking
backgrounds
*An address made
by Mr. Allyn
before the War and Reconversion
Co.,
whose
office
main
and
Astoria
Hotel,
Dec. 7, 1944.
(Continued on page 2601)
New York,
Frederic H. Hatch 8 Co.
Incorporated
Members
63 Wall
N.
Y.
Security Dealers Ass'n
V
Street
Bell
New York 5, N.
Teletype NY
Y.
1-897.
York, Chicago
Indianapolis.
FA It 11
&
CO.
Members
Exceptional Possibilities
'-'Carter
South
H.
Co.,
Corb^ey &
135
La
Salle Street, Chicago.
111., and 650 South Spring Street.
Los Angeles, Calif., has issued an
interesting circular on; Interstate
Aircraft
&
Engineering
Corp.,
manufacturers
of
soft
pensing machines.
drink
discussing
and
New
York
Stock
(,t
Exchange
New York Coffee & Sugar Exchange
120 WALL
ST., NEW YORK
SUGAR
SECURITIES
•
V
'V
Quotations Upon Request
dis¬
Conies of the.
circular,
the
outlook
TEL. HANOVER 2-9612
'
current
attractive
Teletype N. Y. 1-2123
for the company, may be had from
either office of Carter H. Corbrey
Co.
-
50
at
commercial paper., In addition to
the Boston office, the'firm friain-
a
Waldorf
is
Street,: Boston,
holds
memberships in the New York,
Boston
and
Chicago stocks ex¬
changes and The New York Curb
Exchange, and also specializes in
is
turers,
under¬
as
Congress
&
of
annual
Ohio Match
F. S..Moselgy,;^
securities.
ment
meeting of the
National Association of Manufac¬
49th
with
writers and distributors of invest¬
American1'- Industry,
Congress
the
Lion Match
com¬
houses
situation
technical development of 20 nor-
re¬
General Tin Investment
Petroleum Heat & Power Co.
y'.
The proposed merger will
bine
similar
menialR freely to each
across
dent.
advertisement.
»'
President;
Vice-Presidents, and Ashmore L.
year
that while
Pine St., New York .•mucbumare about what is in the
lock,
Executive Vice-President;
H. Albert Ascher, and T. P. Dixon,
Unless;jyou have earned
please do not answer
of Jan. 2, 1945, with
Officers will be William E;
Pollock,
rawing ccou.rjt/
over
as
offices at 20
substantial salary> "or
a
YVuap'E. Pollock & Co., Inc., will
;
be formed
the
To
d
The
and
furnish
will
Bell
Ex¬
Stock
Y.
63 Wall Street
•
tains offices in New
mutual trust and confidence.
'
organization doing, a very
substantial business, ad¬
Members N.
present partners. The entire staffs
production the worker
identity.
No one
his
lost
questions the-worth and wisdom
mass output—the hallmark of
old
with
Thoroughly
all
Box
or
Buy U. S. Treasury
Frederic H. Hatch & Co.
of
and
Exchange
Stock
member
Curb
Back the Attack!
Bonds
will continue to include all of its
has
connection with
2-0980
Toronto
Montreal
6th War Loan
ulus of mass
new
HAnover
Teletype NY 1-395
'
security. Under the dynamic stim¬
Desires
St., N, Y. 5
Bell
New York
Fi S. Moseley So. and
Arthur Perry Go.
tions
Members N. Y, Security Dealers
BEekman 3-0840
h of
groups
here
us
J. P. GRUNDY, Inc.
WILLIAM
52
pub-"'
important,
but
S. Weinberg & Co.
165 William St., New
E
these
Sample if request is on
V
printed letterhead.:
inv.. A1/^ 1948
Corp, of Cda.
1959
HART SMITH & CO.
management of any enterprise is to succeed it must ad¬
effectively to its customers, its stockholders, its employees
the
If
,
Bonds; has room for the
most volatile issues.
Free
Changes Which Have Supplanted
As a Reason Why
Employees Should Be Taken into Management's Confidence, and Why
a Systematic Method of Handling Complaints and Suggestions, a Fair
Wage, Incentive to Advancement Should Be tFoIlowed. Maintains the
Submergence of the Individual Worker Is a Basic Handicap Which
Should Be Overcome in Large Organizations and Shows How His Own
Concern Seeks to Accomplish This.
;
dress itself
BONDS WITH
Stocks
For Charting
London Can.
Power
Personal and Family Ownership by Management
WE MAKE BIDS ON
CHART GRID
Intl. P. & P. Nfd. 5, 1968
Inv. Bond & Share 5* 1947
President, National Cash Register Co.
1959
4s,
Inc.
165 Broadway,
.
NY 1-375
Teletype:
Chicago, Mil. & Gary
?
'
Brown
;
,
Telephone: BOwling Green 9-7400
f
4%» 1961
Company 5, 1959
Calgary Power 5, 1960
Can. Int. Paper 6, 1949
Can. Northern Power 5, 1953
Can. Pacific Rwy. 4, 1949
Hydro Elec. Bd. & Sh. 5, 1957
Intl. Hydro Elec. 6, 1944
corporation
first of new york
70
5%, 1955
Brit. Columbia Tel.
Also
available
booklet
of
on
request
Highlights of the
Plan
of
cago,
Aurora and Elgin Railroad
Reorganization
of
i
TACOMA,
WASH,
•:
t
i
i -
_
i
■.
i
t
;
—
Louis
V.
Hauser is engaging in an invest¬
ment business from
North Lexington.
Company.
>
Chi¬
Louis V. Hauser in Tacoma
Offices at 4324
2598
THE COMMERCIAL & FINANCIAL* CHRONICLE
,
Thursday, December T4,v 1944 1
V
General Telephone
$2,50 Conv. Pfd.
Peoples Light & Power
$3 Preferred
6%
7%
&
■■■*■'
"
Bought
Plans
Preferreds
Sold
-Blades.
Albert Frank. - Guenther Law
Incorporated
"-j \>>r.
Boston,
Cutlery Repair-
•
Executed
Orders
ting of Every Description.
Pacific
,&•
45 Nassau St.
138 Fulton St.
Chicago Philadelphia San Francisco
J
1879
CO
7-1176
Schwabacher & Co.Members
RE. 2-9192
New York Stock Exchange
.
New York Curb Exchange
Chicago Board of
Public
Utility Securities
14 Wall Street
Don't Sell the Railroads Short!
Laclede Gas Light Company
Laclede Gas
Corp.) has been in process of reorganization for
Ogden Corp. (already greatly reduced in size) is
in process of further liquidation and Laclede is its principal sub¬
sidiary.
Before it disposes of its interest Laclede must be "stream¬
lined," as is the customary SEC requirement,
■
A recapitalization plan for La-^
The
new
stock
is
clede was filed with the SEC and justments.
"when
issued"
over
the Missouri Public Service Com¬ quoted
counter at 5xk-§x/\.
mission in August, 1941, super¬
There are no
seded by an amended plan nearly
up-to-date pro
a
year
later, and was further forma earnings figures, but it is
■■■■■'■
San
Francisco
Monterey
President, Southern Railway System
three years.
•
Finally, in May
amended in 1943.
this
the SEC approved the
year,
plan and the U. S. District
Court
issued
its
findings
and
final
understood that
The
original
this, some
share
issue
an
of
payment
over
pre¬
On
Nov. 17 the company moved to
accelerate execution of the plan
bonds to be retired.
on
placing funds in escrow to
cover
premiums and interest on
the bonds, as an assurance to pro¬
by
testing
institutional holders that
funds would be available if their
point was approved by the Court.
The plan was finally approved
by order of the District Court in
St. Louis on Dec. 4 and should
become effective around March 4
(unless appealed by other security
holders than the bondholders to a
will
its funded
reduce
St. Louis
electric properties to Union Elec¬
tric Co. (North American system)
for a base price of $8,600,000, and
debt through sale of the
remaining debt will be refunded.
Capitalization of the new company
will be $19,000,000 first mortgage
bonds, $3,000,000 serial debentures
and 2,433,620 shares of common
stock.
The
present
preferred
stock (with arrears) will receive
14 shares of
the
of
new common
shares
11
(instead
originally
pro¬
posed) and each share of the old
$100 par common will receive one
neW share of $4 par stock. Under
Ogden
will
receive
2,165,296 shares of common which
it will subsequently offer for sale
under competitive bidding.
the
Improvements and Betterments for More Efficient Service and Explains
Experts Are Now Planning for Further Improvements to Put
the Rail Lines in Better Competitive Position With Other Means of
Transportation. Predicts That Railways Will Continue to Handle by
Far the Major Portion of Transportation "Just As They Have Always
Done."
ago
1944
in
'
pro
I want to sound a
oh5 the
new
com¬
cents in 1945.
"bright
new
which
the
cents
indicated
earnings
share.
a
recent
is
It
•
of
42
understood
might result
in a slight upward revision of the
estimate, possibly to around 45
cents
or more*
The
new
is
mon
issued
used
estimated
the
be
plan,
line
with
such
Even
long
a
stock
mixed-gas
Gas
market
Light
(with
dividend
for
than
a
since
record
less
as
13
conditions.
established
Washington
continuous
sells
1867)
times
current
earnings.
Peoples Gas of Chi¬
cago sells at about 15 times earn¬
ings
(earnings
have
dropped
sharply in the past year).
The
average for natural gas and mixed
gas distributing stocks appears to
be
around
is
doubtless
factor.
time
12, but dividend yield
also
an
important
(In the hearings, some
"
One of the principal reasons
who
Long before
dustry
dividend
these
dire
cents
or
more
the present
be a reasonable expecta¬
If and when the new pro
forma
figures become available
and the company indicates (as it
prices on the Stock Exchange for
the old
preferred and common
will probably do when the Ogden
stock is offered for sale) the pro¬
stocks appear out of
and
concocted
seers
broadcast
they
predictions—and
popped up in halls of book learn¬
ing, in erudite journals, in the
popular press, in the corridors of
Government bureaucracy and on
the
speaking platforms
of : the
nation—these
they
35
I
would soon
new
forms., of
it
self-appointed
who
had
theo¬
sharp-pencil
failing;
common
one
neither understood the fig¬
on
which they based their
ures
posed
As
occasionally
happens
reorganization plans,
terms of the
plan.
with
line with the
The preferred
88 and the com¬
mon at 9%—a ratio of about 9.4
to 1 instead of 14 to 1.
The reason
is selling around
for
this
vious;
discrepancy
possibly
is
some
not
ob¬
common
hopeful of a last
minute appeal and modification,
or possibly the difficulty of bor¬
rowing stocks under present mar¬
ket
conditions
has
discouraged
stockholders
are
arbitrage operations or other ad¬
might
tion.)
forecasts of disaster nor the char¬
of those who
acter
But
of my
story.
When
getting
of
the
competitive
for
Ogden's common stock by bank¬
ing groups.
Interest in the big
offering has perhaps been damp¬
ened
by the long delays, and
fears that legal technicalities may
still develop, but may revive as
the time for bidding approaches.
bidding
the
under
ahead
talking about
began
of the traffic
load then in sight. They screamed
for
Government
operation
of
railroads.
They derided the calm
meet
"will' continue
the
ignorance
payroll from
the bottom; an
"impossible" means.
to
top
the
of what
For
some
reason
other rail¬
or
roaders seldom waste much time
speculating
whether
to
as
be' done'
can
job
a
inertia;
and
friction,
Weight;
against the "impossibles" of life.
Whatever the cause; railroad folks
never
of
seemed to hear the prophets
before
disaster
were
too
and
men
getting
busy
women
haven't
railroads
who
man
Nothing
The
railroads
a
simply
volume of
29
BROADWAY,
Direct
NEW
Wire
to
YORK 6, N. Y.
Chicago
traffic
'An
load
became
The "view-
address by Mr. Norris be¬
When
finally
war
to this
came
peace-loving
nation just three
years
ago
today, the railroads
were
ready.
Almost overnight
they were called on to transport
millions of fighting men and mow
millions
of
tons
of
fighting
freight.
day's
job
done—without' a
single failure!
have
carried
load they
York,
Dec.1 7,
mended
even.
stocks
certain
read
column
the
had
for
almost
double
the
carried in the last war.
(Continued
freight and passenger cars
and with but three-fourths
2nd
Pfd.
Machinery
American Crystal Sugar
These
three
dations
will
those
to
VALUE
be sent
at
once
accepting the offer
SPECIAL TRIAL OFFER:
weeks'
four
trial
•
A
subscript
tion to the Value Line
Invest*
Survey will include these
analyses: a new Special Sitwi
ment
ation recommended this week
and
a
jreportVpn 50 Special
Situations
Value
previously
recom¬
Line
Ratings and Re¬
ports on 200 leading common
stocks; the Supervised Ac¬
count, and Fortnightly Letters
restricted
only
becomes
only $5.
to
This offer
trial
one
a year.
sub¬
Send $5 to
of the
belter,^^pommcnt.we.Jiave
it
LINE
recommen¬
below.
employees. Yet the job has been
done so smoothly with the bigger
that
move
2621)
on page
U. S. Hoffman
scription
three-fourths
only
the
already started, and of
of the
of 1918;
with
now
New
than
—all for
the
of
happening were
And, as
that was enough odds for a
trader; the column • recom¬
better
gering task with only two-thirds
had then;
and
State
the conclusions made that the
chances of it
mended; 4 weekly editions of
So far in this war the railroads
fore the Chamber of Commerce of
1944.
week's column the
last
Special Situation
of the locomotives they
heavier and heavier.
In
*
■
probability of a break-out on
the up-side was discussed and
much
changed
respect—and I do so
assure
you—would you sell the
railroads short?
-
They have accomplished this stag¬
had labeled
As time
*
❖
this
in
each
jjsejt
(up to this writ¬
ing) haven't done so well.
our
complete
na¬
That is the market went up;
the averages
that the
assure'you
in
even
happened?
the
at¬
many
the day's
railroads'
of
\['i.
on
good
a
tempts, the averages finally
AMERICAN & FOREIGN POWER
job done.
Now, if I
freight and passenger traffic that
was far greater than the volume-
went
By WALTER WHYTE
After
they
the war;
that the crystal-gazers
as
"the
impossible."
Gilbert J. Postley & Co.
increase
proportion to rise.
purchase.
When the advice
pitch in and do it, if it needs
was
given the stocks in ques¬
doing. Perhaps it is because they
were
either
are 'steeped in
the tradition that tion
slightly
the
gets- trains' -through "in spite of above
prices at which
hell and high water."
Perhaps it's
they were to be bought or
because the whole history of rail¬
they were practically at the
roads is a continuous fight against
the elements; against time, space, market.
By the time you
the
They
failure.
what
should
caution
just
They
not.
or
down
bog
unusual!
on
which
on
needs
the
defense."
date
ig¬
an
Their answer was neither
a plea for time nor an appeal for
help; it was just a daily report; of
and
proceeded to handle
Preferreds
to
the full -the"' demands, of
to
So
in
men
1940, that the Amer¬
railroads
would
England Public Service
railroad
of
November,
ican
railroads;
our
shared by every man and
pressure
assurances
the
Junior
rail¬
dividend rate on the new national defense several years ago,
common,
it will be possible to these prophets of doom had a field
make a better appraisal of the day.
They
shouted from
the
price of the new common.
A nation's housetops that the rail¬
certainly
collapse
practical factor may be the extent roads would
tional
New
our
.
we
commerce
hi,
man
that's
roads.
on
who
those
woman
transportation — the automobile,
the truck, the bus and the air¬
rists
of
sort
tor characterize
work
that
replaced by
it was indicated that a
indicated
here
from
vances
but
to
was,
norance
Ernest E. Norris
b y
The
bury the
I think, a
ignorance that
ready
so
seems
was
plane.-
for
Harbor rout of those
railroads
peculiar
predictions
be
were
poor
clouds be¬
assailed
of
ago,
the vociferous trifee of
hope,
carping commentators.
gathering
price of the new, this reflects a^
in Europe, the
price-earnings ratio of nearly 21,
raiiroad
i n which seems quite obviously out
of
penetration of old
highs attracts considerable
public buying. Further ad¬
managed to get through what
everybody called the "impor¬
forever tant level"—and up it went.
And
the pre-Pearl
war
job that needed to
finally, the dis¬
any
done.
we
Sell the
Short!
com¬
if nothing had
as
plete frustration silenced,
planning—
is
equivalent
Says
Market
appointment and chagrin of com¬
pro
If the old
as
In
post-war
Don't
price
stock
common
forma earnings.
ity to do
Railroads
when
times
13
about
this:
Barbara
Sacramento
—
Whyte
kept
hopefully
been said about their capac¬
ever
making.
is
your
—
~7
current
the
for
reports
It
railroading
on
in
now
Walter
moving the tragic- day of collapse
ahead.
The railroads kept right
world" that is
even
Santa
Tomorrow's Markets
in direct
about the
asm
superseded by Exhibit A in the
SEC findings dated May 24, 1944,
that
warning that is, in
a
ers-with-alarm"
enthusi¬
eyed
These figures were
friends;
my
—
Oakland
—
.<$>-
days of starry-
(taking the benefit of non¬
recurring tax savings)
and 47
mon
warning to
humble opinion, timely; one that needs to be sounded in these
my
gan
higher, court).
Laclede
forma estimates
the company some
indicated 72 cents a
Planning and (2) the $11 Billions Expended in Two Decades on
That 150
by
prepared
time
miums
become
may
available in the next few weeks.
opinion on
Aug. 28. Even after
delays occurred due to
some
Teletype NY 1-928
Regarding the Future of
In Refutation of the Pessimistic Prophecies
vious
New York 5, N. Y.
Fresno
Railroads, Mr. Norris Points Out the Remarkable War-Time Accomplish¬
ments of America's Railway System.
Ascribes This Success to (1) Pre¬
.
(Associate)
Trade
Wires to Principal Offices
Private
ities Power & Light
over
}}■
COrtlandt 7-4150
/'
By ERNEST E. NORRIS*
Light, subsidiary of Ogden Corp. (the former Util¬
on
Coast Exchanges
WECK CUTLERY. Inc.
Telephone COrtlandt 7'5060
Paine, Webber, Jackson & Curtis
ESTABLISHED
Securities
New York 6, N.Y.:
131 Cedar Street
Quoted
—
Headquarters For
Branches*
Prepared—Conference Invited f
Preferred
—
Pacific Coast
SINCE 1889
:Sextoblade Razors and
Qpeens Borough Gas & Electric Co.
6%
All Its
In
(Del.)
Northern States Power
Quality Cutlery
ADVERTISING!
news
(Continued on page 2604)
-"
•
Investment Survey
350
MADISON
NEW
YORK
AVENUE
17,
N.
Y.
;«: Volume 1.60
TT
Seaboard Air Line Ry.
i'i
1
New Securities
;r
;
Bought
—
jf*
Co
for Liberty
...
.
International
for Peace
.
.
Oeeanf
I,
issued
When
Telegraph Co.
Sold —Quoted
—
.! .".>•*•'•:> Arbitrage Circular
.;
-'2599
FINANCIAL CHRONICLE
THE COMMERCIAL &
iNumber-4342
BUY 6th WAR LOAN BONDS!
Request
upon
Province of
'i
'
I
SUTRO BROS. & CO.
120 BROADWAY, NEW YORK 5,
ALBERTA
PFLUGFELDER, BAMPTON & RUST
Members New York Stock Exchange
Member*
61
N. Y.
hew York
Exchange
Stock
Railroad Securities
prepared
New Memorandum on
a
In
a
$6
Gross
earnings, Southern Railway has held up remarkably well.
has not been materially higher than it was a year ago and
other
and
maintenance
Nevertheless,
higher.
ten months of the year
Copy sent
on
request
below the
reduced
ther
PRICE, McKEAU GO.
it
ESTABLISHED 1921
165
CT2
'
.
-operating
the
$15.81
a
first
Orleans
in
of
dinner
the
fiscal
new
benefitted
share
Security Traders Association
on
was
of the restaurants in the Vieux Carre.
one
Attendance
was
excep¬
tionally large and the occasion marked the acceptance into the organ¬
ization of three
new
members, namely:
Paul Thibodaux of the
Whitney National Bank
Shelby Friedrichs of Woolfolk, Huggins & Shober
G. Price Crane of Glas & Crane.
addition, Herbert Pettey of the Nashville Office (Home Office)!
<of the Equitable Securities came down for the event.
Needless to say, Thursday was a very dull day in the Trading
Fraternity in New Orleans with "pick-me-ups" enjoying precedence
In
over
quotations.
;
.
'
made on
In the last quarter
being
MEMBERS
the
com¬
New
a
before
even
120
the
South has been
became
war
revenues
dence when
needs,
SEABOARD AIR LINE
so
RAILWAY COMPANY
Gleaner Harvester
will again be in evi¬
over
Universal Match
has been im¬
Corp.
a
cash crops.
as
Corp.
Magazine Repeating Razor Co.
we
period of years
through diversification of farm
crops,
thus lessening the tradi¬
tional dependence on tobacco and
cotton
St., Chicago 4, 111,
given added im¬
war
of the South
proved
LaSalle
TRADING MARKETS
re|urn to a normal
economy.
Also, the general
status
So.
a
that
there is every reason to anticipate
that the favorable post-war trend
peace
other
our
petus by the
of
and
Exchange
Broadway, New York 5, N. Y.
231
transportation econ¬
The industrialization of the
omy.
Stock
This has found re¬
materially bettertrend of revenues
than-average
factor in
York
leading Security and Commodity Exchs.
particularly from the
expansion of
in
flection
_
also
is the funda¬
basis
that, territory.
ridiculously low
price-earnings ratio for a stock af¬
fording a generous return on'the
basis of recent dividends, and the
underlying position of which has
been so vastly improved in recent
years.
Many railmen consider the
preferred also as having particular
appeal in its class although ob¬
viously not having as wide per¬
centage appreciation potentialities
as
the junior equity.
Analysts,
leaning more towards the com¬
mon than the preferred as an at¬
tractive purchase, point out that ;
the preferred is non-cumulative
and that in only one year in the
past 20 years has a dividend been
paid on the preferred without a
distribution
Preferred
sharply
industrial
secular
,
prices the shares are
selling little more than twice in¬
dicated 1944 per share earnings.
held by the New
Wednesday evening, Dec. 6,
year
quite
traffic status.
The road
literally covers the South and has
This appears as a
The
:
♦Listed New York Curb Exchange
pany's
At present
NSTA Notes
long-term
a
that net earnings « on
common
stock will not fall
below
have been
costs
mental improvement in
by debt retirement,
likely
much
5%'s
1'943'«>
the like
of
•earned last year.
COrtlamit 7-7869
BROADWAY, NEW YORK
is
the
INVESTMENT SECURITIES
.
level
-
income available for charges for the first
were little more than $2,000,000 (about 7.5%)
With fixed charges fur¬
•interim.
.5s
Brook Water Service
in railroad
BOSTON & MAINE RAILROAD
-
Scran ton-Spring
which has witnessed a fairly generally declining trend
year
4%s
Bell Teletype—NY 1-310
*
We have
-
New York 6
Broadway
Telephone—DIgby 4-4933
Telephone REctor 2-7340
4s
72 WALL STREET
NEW
;
;
......
Van Tuyl & Abbe
Fundamentally, Southern Rail¬
way has always been a fairly effi¬
cient property to operate.
On the
average for the 10 years 1931-1940
YORK
5
Bright Possibilities
Giant
Portland
is:
Cement
a
low-priced stock in'an..industry.'
of 1942 a dividend of $1.25 a §hare through to net operating income with a bright future and offers in¬
before
Federal
income
taxes. teresting
possibilities, according
was paid
on the prefer red';,while
Even this favorable showing, com¬ to a circular prepared by Lerner
dividends were not resumed on
the common until the following paring
with
only
14.3
carried & Co., 10 Post Office Square,
year.
/:'"!.■\!;<!■ through by Class I carriers as a Boston, Mass. Copies of this cir¬
There are a number of reasons
whole, does not reflect in full the cular may be had from. Lerner &
Co. upon request and also a cir¬
for adopting a constructive atti¬ .program of new equipment in¬
the
common.
the
road
carried
16%
of
gross
.
Mahoning Attractive
y
&
Graff
Townsend,
■
Co.,
r
120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
have in preparation a
comprehensive memorandum on
Mahoning Coal Railroad common
iLtock which should be of interest
change,
to
dealers having
railroad
high-grade
This
upon
securities.
Reynolds & Co., 120 Broadway,
New York City,
York
New
other
prepared
"Tax
Individual
.
Investor."
request from Town-
had
from
Specialists in Railroad Securities
•
Guaranteed Railroad Stocks
•
Lease Line Railroad Securities
•
Minority Railway Stocks
•
Reorganization Railway Bonds
Situations
extent the progress has
some
been
the fact that most of
the debt is non-callable so that it
retarded by
be j has- been
redeem
liens.
Recent debt retirement has been
largely accomplished t h r o .u g h
open
market purchases of the
junior bonds.
Despite the han¬
dicap imposed by a large amount
even-
the
impossible
highest
•
to
coupon
RAILROAD
STOCKS-BONDS
55
Broadway
normal
in the late
on
conditions.
should
bring sub¬
savings under
With
of
all
level
a
tinuation
thus, appears
jfeOf
even
apparently turned the
the general feeling is
and
that little
corner
to the ability
realize consis¬
tent and satisfactory profits even
;in normal business cycles.
question exists
Homans to Admit
Homans
with approximately
the
debt
Con¬
retirement
well assured.
greater importance on
on
Riverside Cement class A
esting, according to a bulletin just
issued by Lerner & Co. Copies of
this may be had for the asking.
&
partnership in the firm on Jan. 1,
.1945.
••
Industry Steel & Equities
Paine, Webber, Jackson & Cur¬
tis, 25 Broad Street, New York
City, members of the New York'
Exchange and other lead¬
ing exchanges, have prepared .an
interesting circular discussing, the
steel industry
and its equities.
Copies may be had upon request
from Paine, Webber, Jackson &
"
"
-
J.; Curtis.
Kavv Richards Will Admit
PITTSBURGH,
PA.—Ralph
S.
Richards, Jr., will become a part-'
ner in Kay- Richards & Co., Union '
Statistician
members of the1
New York and Pittsburgh Stock
Trust
Building,
Exchanges,
on
Wanted
Jan. 1, 1845.......
rails.
"■mi
We wish to
■tr:.'.
div¬
Iron and Steel also appears inter¬
Good
Victory is Still to be Won
out¬
a
idend arrearage.
The current situation in Central
opening for junior
statistician
.id
an
standing cement stock with
Stock
Co., 65 Broadway,
City, members of the
Stock Exchange, will
admit Arthur W. Macpherson to
present indicated an¬
around $13,000,000.
cular
which the firm believes is
as
of the company to
York
of
of
efficiency, Southern Railway has
York
-assets-of close to $45,000,000.
New York 6, N. Y*
additional
■New
$16,800,000 supported as recently
as 1939.Moreover, earnings pros¬
INCORPORATED
stantial
New
-
pects -remain favorable at leapt
over
.the visible: future and
finances are still strong.Recent
balance sheets showed net current
GUARANTEED
which
able -to cut fixed
This compares
Times
30s and
of the earlier in the industry, the factors of debt retirement, re¬
on such a program.
To! duction of debt, and inherent
nual
>
stallation embarked
to .embark-
charges to
^
.
all
at
of
one
ment has been
y
Underlying Mtge. Railroad Bonds
Selected
mayi
the most widely publicized
has been-the program of debt re¬
tirement.
The management was
haps
of1 rron-callable debt "the manage¬
•
<
booklet
Reynolds '& Co. upoii
request..
send, Graff & Co.
and
Copies
booklet
informative
be
.
have
Comments for; the
this
may
Exchange
Exchanges,
interesting
an
entitled
members of the
Stock
leading
Per¬
tude towards the Southern.
Individual Investor
ob¬
memorandum
tained
of any
buyers
Tax Comments for the
purchase, ALL
for
familiar
Excellent
advancement.
with
chance
Please
■
write
SEABOARD AIR LINE
Back the 6th War Loan
cations and
Members New York Stock Exchange
HANOVER 2-1355
1. h. rothchild &
NEW YORK 5
•
t
TELETYPE
f
i
,
i
.
|NY,- ,1-1310
.
,
of
Albert Frank
specialists in rails
co.
National Association
of Securities Dealers, Inc. '■
Member
'
.
TEL.
our
advertising agents
Mclaughlin, baird & reuss
'
salary wanted.
Address
Underlying Bonds & Certificates
ONE WALL STREET
mentioning qualifi¬
52
wall
street
HAnover 2-9072
n. y. c.
5.
-tele. NY 1-1293
-
Guenther
Law, Inc.
Dept. 18
181 Cedar St.
New York 6, N. Y.
THE COMMERCIAL & FINANCIAL CHRONICLE
2600
Thursday, December 14, 1944
A Review and
.
SPECIALISTS
m
;
it
ifr
Investment Banker Sees the SEC as Here to Stay and Though Recog¬
nizing That the Commission and Investment Dealers Have Had Different
Member*
Bell Teletype
Incorporated
41 Broad
Nf I-953
Cambridge Apts. 3s—Phila.
—
,
Central 4402
SPECIALISTS
IN
.
'
'/
tee
Title
*
as
T.
G.
T.
<
Accurate Quotations in All
different
No.
port
In
among
inducement
gage
owners
of
to
,
an
extend; the mort¬
this., property
on
as
for
five
of the underlying proper¬
a few professional
some
and from
ties
at
ICC.
point.
a
-
.
Campbell to Head New
F.I.
investment
0
p
in
Land,
portimities
Street and general
all
cost
—■
improvements,
at cost
Building and building equipment:
forms
Cost
.
of
transporta¬
original
construction
d
-
and
Less—reserve
headed
bell's
84,699.00
depreciation___-.___j-____.^_^_^___
for
for
Less—reserve
.they,. are
buying. The
angry at what hap¬
security... values- after
1929
was
Campbell
depreciation
Total
.
property
$2,048,046,85
Campbell,
railroad
/; '■.
Campbell, author of Camp¬
Index
road Bond
Guide
and
to
Rail¬
Values, has contributed
Further, conservativeness of the
mortgage can be visualized by the
following
comparison
of
other
bond issues showing mortgage per
room:,
various
publications-over a
period of more than fifteen years.
His series of articles in Barron's
in
1937 forecast the great bull
market, in receivership rail bonds.
Hotel—
Debt
$2,352,390
*4,576,500
Allerton
Chesterfield
per
Rooms Room
583
$4,025
1,262
3,500
534,432
474
1,125
Dorset
2;383,800
393
6,050
Drake
3,393,250
473
5,000.000
i,ioo
4,550
Lexington
3,445,800
760
4,500
Interesting Developments
lombardy
*2,234,000
312
6,200
Park Central
*5,216,986
1,600
In Pittsburgh Railways
Park Crescent
*1,183,000
:
500*
3,250
2,050
918,000
573
1,600
2,619,125
375
7,000
Governor
Alucid and comprehensive anal¬
ysis of the interesting complexi¬
ties
bf
the
Company
summation
Pittsburgh
Railways
system,
including
a
of possible develop¬
ments in the near
future, has been
____
Clinton
Pierreuont
Ritz
St.
Tower
«_>_
'
7,400
8,055,607
2,020
10,700
375
13,160
Tudor
777,000
5%
1,300
10,985,000
1,800
6,100
2,565,500
623
4,100
-
Waldorf
______
Windemere
of
222,300
$777,700
$1,300,000
-
Interest—Mortgage calls for inT
First
♦Includes mortgage ahead of bond issues.
booklet
forjn,
are
available
Mortgage
request.
,
,
that regulation was heeded and
is salutary. We feel certain that
the SEC is here to stay. An outbroad, purposes
its
coincide
closely with any
There is a difference
point of view which I shall de¬
in
ing,
we are
all going in the same
December
popular with invest¬
Well, now, bank¬
ers should, not be asked to
love
the Commissioners. A good sense
of humor would, be helpful on
both sides. After, all, the deposit
banks don't cheer when the bank
comes
in
to
They
town.
examination
the
of
banks, but breathe a sigh of relifef
to
.
•
;
when the representative of *thb
Mortgage calls
for cash amortiz^}<m of $25,000 Treasury gets through with
di,ues«
ls£.;
+
Amortization
per
annum,
pro-rata to
whicn^'is distributee^
cer^if^{^oldqr^f|f^
ducing the face- amount pffrtheirr;
certificates.
' '
>lllb
„
rV/r
.
Earnings
'
The
—
c
:'3yUO WI
fpllowjpg ijpt.
earnings are computed beipre, in¬
terest, amortization, income" tax or
interest
on
note issue
a
lien to these
junior in
mortgage certificates:
Gross
Net
$504,408.02
$202,812.88
927,617.74
425,909.67
160,148.13
$775,000.00
_
arid
'
•
Requirements
$33,896.00 © 4J/2'
"
j
1
f
Different Point of View
Does
same
point of view as the
Commissioners
SEC?
Not
banker
investment
.the
have the
anql
entirely.
staff
of the
There
is
a
barrier which has not been corn-
Mr. Folger, part¬
Folger, Nolan & Co., Washington, D. C., before the New
School
series
for
of
Research
Social
in
a
1941„:
943,542.75
358,741.08
103,008.12
47,406.38 @ 5
959,303.34
398.309.41
82.511.31
49.1R9 04^)5
976,325.00
327,464.20
333,445.76
75,254.94
54,032.26 © 5
84,537.84
58,800.00 @ 5
change >Gomiriissi^ni'-
1938
,
[
980,000.00
45,156.22 © 5
The
have
SEC should
be
fine
of
deeply
im¬
peccably enforced,ris not enough.
A credit man in, a. store might ex¬
tend credit only to Mrs. Astor and
to
a
set
rule$,
Mrs, Vanderbilt and have
fect
credit
poor
credit
a
per¬
arid yet be a
from' the over-all
record
man
point of view/
:
Every thoughtful person in this
country must consider the stag¬
,
nant
capital that is accumulating
in our banks. Getting this money
to work is the real problem. Since
the SEC was created, about 95%
of
all securities registered
and
to
have
sold
been
are
bonds and preferred stocks.
These
been purchased largely by
the sophisticated buyers, the same
class of buyers who are purchas¬
ing unregistered securities which
by-pass the SEC completely,
i
have
Friends of the SEC and the SEC
itself
should
give
thought
to
streamlining and simplifying some
of its rules to make sure there are
no
bottlenecks in the flow of cap¬
ital.!; Such
a
studyj
was
begun he-'
fof£;the war, but was interrupted
by 'the national crisis. It should
Resumed. Congress should cdnthis1 matter.
The country
did not have tpx give gyip/football
just because the goal,jposts were
moved
back five yards so the
players would not butt fHhir heads
into the uprights,
sider
*An address by
ner,
1940
42,922.84 © 5
ness.
concerned with this function. Just
.
Years
of the SEC,".. .conducted by Ru¬
dolph L! Weissmari,la member of
the stciff of the/Sfe'Cufities and Ex¬
,
of Capital
Above all, the real function of
investment banking is to promote
a proper flow of capital into busi¬
known
Is the SEC
believe
908,017.14
1939
upon
support any such effort, We know
payable semi-annually June
1943
1944
in
ing! fraternity regard the SEC?
Every now and then reports crop
up about an effort to abolish that
agency or distribute its powers to
other governmental departments.
Investment
Banking
does
not
examiner
Interest
of New York
Copies of this report,
How does the Investment Bank¬
terest at rate of 4,%,% per annum,
1942
The
Corporation, 70 Pine Street, New
York City.
$1,000,000
Outstanding
4.000
872
..........
issued
prepared by the Research Depart¬
ment
Real Function to Promote Flow
SEC Here to Stay
of
.
■
.
ment bankers? *
.
Savoy Plaza
*9,400,000
Sherry Netherland 5,946,900
George
Mortgage Certificate Issue
Amortized
Mtg.
Funded:
Alden
Originally
Assessed;
'.'-.v.
-
••
.
to
First
the practical side of business. One
reason
.
does.
direction.
/■
authority
determined such
things should/not occur again. If
scribe later, but generally speak¬
26,506.70
_.
authority.
that, judges get along with
lawyers so well is that they had
to practice law for a living them¬
there ever was a time when the selves.
They just didn't start out
people were in the mood for stiff being judges... Every, judge will
regulation of. an .industry, it was tell a young lawyer the first thing
in the period following the stock about practicing law is the real¬
market -collapse*: - The
country istic side of earning enough to
hailed the new SEC Commission¬ pay the office rent and hiring a
ers, with., great acclaim.
Service, stenographer.,.
in that capacity was the stepping
Bank examiners are drawn from
stone
to
high diplomatic posts, banks and. frequently return to
that business/ This helps to bring
judgeships and all sorts of hondrs.
Make no mistake, the agency held about
understanding
between
great
popular appeal and still theory and practice.
,■
.
and
by bankers.
301,449.99
it is really
•
was
public
prograiri which might be outlined
$53,762.64
by
G.
/
On the stove,
should make its adjustment 'with
pened. to-
would
27,255.94
Thomas G.
.economist.
Mr.
$1,570,291.78
arid equipment, at cost__^__.
Furniture
depart¬
will be
Thomas
subsequent im/—-wduring
expenses
1,353,540.79
d
a n
pipelines. The
ment
of
incidental
and
of
their, adjustment with
On
the
other
hand,
about
truth in securities, protection of
the public and prevention of fraud
$1,654,990.78
coastal water-
new
legal
9,575.12
d
a n
ways
taxes,
construction.
:
banks
Investment bankers must make
know
what
line
provements
Interest,
tion—rail, air,
highway, inan
;
$657,675.00
.
"
of
1
at
old railroad
horns with the
the
boiling.
-
in
of
cooked.
in
curities
should
The
locked
By and large,
complaints arise from the
regulation rather than
from regulation itself. The cup of.
eoffee/is not served as hot as it is
fear
that
demand
with, all
stiff-legged
bit
a
most
came as a
of
Both sides
begin
the Pure Food Act.
the
investors
e
give
to
fought shy mf
regulations in the
Banking, Acts. Manufacturers felt
aggrieved at certain portions ! of
inter¬
result
are
State
some
Broad 1y
speaking,
To
regulation.
operators
at
vening
s
year,
years
overcome.
fault.
Americans
than
begin¬
of
the
or
at
are
widespread
February of this
ten
broken down, but which
pletely
re¬
some
tion with this issue:
certificates,', "there
except
ning
period
SEC
waited
not
needs to be
now
the
at
Investigation disclosed the fol¬
lowing interesting tacts in connec¬
method of
have
somewhat
a
issues
&
bankers
anni¬
versary would
probably make
Tudor,
Certificates: and be¬
the" unique
of
securities,
issues
only
Company's
investment
appraisal of the SEC.v Those who have held their fire .until the
tenth
Apparently this trend of thought 212135.
correct because usually the
This issue represents first mort¬
Title Company certificates com¬
gage: certificates',
secured by a
mand a much better price market20-story and basement hotel con'r
wise than the usual run of real
taining
598
rooms
and
three
estate bonds. Also, the experience
stores,, built on land owned in fee,
of pay-offs, at or near par^ have 198
y2 by 80 irregular, at 302*4
been more pronounced in Title East
42nd; Street and 305-11 East
Company certificates.
41st Street, known as the Hotel
trading! 'these
\
Trust
years; the owner gave the trustee
$112,917.36 first mortgage certify
icates for. cancellation, reducing
traders.-./
•■,"/;
The unique trading method re¬ the mortgage from $908,017.74 to
FIRST LA SALLE CO.
ferred to is the practice of tradhig $785,100.38: Amortization was in¬
II So. La Salle- St., Chicago
creased from $19,600 to $25,000
3, III.
these
securities
by identifying
Tel, Central 4424
them by number, rather than by per annum. A chattel mortgage on
Tele. CG 660
the name of the building or ad¬ all the furniture and furnisnings
dress of the property; The appar¬ of the hotel was given as addi¬
ent reason for this is that the loans tional security for the first mort¬
of the company Were so numer¬ gage certificates. Interest was re-/
duced from 5% to 4J/2%.
ous, * that each separate loan was
For the year ended December,
given a number rather, than .a
name.
The disadvantage of this 1943, net available for interest,
In a step that marks a new
ap¬ method is that many real estate before
depreciation and income
proach to security analysis and in¬ issues derive their: popular appeal tax, was $202,812.88, against in¬
vestment
research,
Francis
I. because of the prominence of the terest requirement of $42,922.84.
duPont & Co., 1 Wall Street, New rear estate properties which se¬
However,
because
of
reduced
York City,
cure them; for instance, the Wal¬
mortgage and interest rate, in¬
members
of
dorf-Astoria Hotel.
terest requirements will be re¬
Thus, when
the New York
an issue is just known by a num¬
duced to $33,896.00, so if earnings
Stock
Ex¬
ber, it is not likely to be as well in 1944 are equal to 1943, interest
known.
change, have
/-,:
■
charges will be covered six times.
set up a trans¬
Because of the desirability of
Compared to present mortgage
hotel securities, the writer's at¬ of $777,700 property is carried in
portation de¬
tention was. directed to this type company's balance sheet' as $2,partment that
of issue among the Title Guaran- 048,046.85 as follows:
will specialize
,
Some
their,
was
has been very limited public in¬
terest in the acquisition of /these
0
;
&
known
these
SECURITIES
were
firms
b^ from two-thirds^
ination of information concerning
REAL ESTATE
the- Title Guar¬
was
most part their loans
than the loans of such
,
erty.
cause
'
conservative
more
Because of the lack of dissem¬
—
CHICAGO and MIDWEST
'
the
of the value of the prop
to 85%
CHICAGO
Registration and From the Detailed Reports Required;
(b) the Streamlining of Present Prospectuses; (c) Action to Help Small
Business Financing by Making Their Financing Less Rigid; and
(d) by
Permitting More Free Play to the Art of Selling So As to Encourage
the Flow of Venture Capital.
Urges, a Liason Committee of Agencies
of Businessr Banking and Government.
Straus, Miller, etc. The popular opinion was that the
Title Company loans were supposed to represent from one-half to
two-thirds the value of the property, while the Straus loans were
considered to
135 So. La Salle St.
For
W:
S.
as
St. Louis
V A LIQUET & CO.
Company.
much
considered
York
Roosevelt Hotel Common
CG-81
Trust
&
antee
Hotel P/C—Cleveland
Belmont
ities of Securities
HAnoyer 2-2100
Real Estate Securities
Shore-Driye-^Chicago
850 Lake
Street, New York 4
Among the issuers of real estate securities
Prince & Lafayette Streets
'52—New
Association
Members "New York Security Dealers
Dlgby 4-4950
Real Estate Securities
5s
Points of View, He Maintains Both Sides Have Been at Fault and That
Complaints Arise From Fear of Regulation Rather Than Regulation
Itself, Points Out Changes Needed As (a) Relief From the Complex¬
Seligman, Lu betkin & Co.
Exchange
New Pack Curb Exchange
Alembftrt Now York Stock
40 EXCHANGE PL.^NX
FOLGER*
President, Investment Bankers Association of America
ft
SHASKAN & CO.
•
By JOHN CLIFFORD
1929
Since
SECURITIES
■'
Appraisal of SEC
Real Estate Securities
REAL ESTATE
lectures on "Ten
Changes Needed
What
changes are needed? The
following are some:
(a) Companies issuing securities,
,
"
'
should be relieved of
complexities
detailed
Of
reports
some
of the
registration
now
and
reauired.
(Continued-on page 2619)
•
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4342
2601
ADVERTISEMENT
NOTE—From timetotime, in this space,
there will appear an article which we hope
will be of interest to our fellow Americans.
SAN FRANCISCO TRADING IN NEW YORK STOCKS
To Its
•
'Twenty-two stocks/traded
»
mal years,,
We have not matched
Now
continuous manage¬
workers, a con¬
a large part of
began
this expansion with a- kindred de¬
tact
upon
Production, has become the Num¬
the
structure
ber
relations
to;
One
Yet it is well
remember that factory produc¬
tion
is
problem.
the
also
work
human
of
is
It
-
lusion that it is the only medium
of communication with employ¬
The pay
ees.
is
only
envelope, however,
link. There is like¬
one
wise the human link if
we
are
to
forge the chain of complete man¬
agement-employee understanding.
•What do employees want to hear
that will establish a real,kinship
with
management?
First comes
informed of
policies and objec¬
the desire to be kept
management
The
tives.
worker's
The
is obvious.
reason
future
that
and
of
his
family is bound up in the future
of the company.
It is not idle
curiosity that inspires this stats
of mind.
It is dictated by the
instinct for self-preservation.- ;
Employees like to be told about
factory changes before they are
made.
Here you touch a basic
human
ally
There
weakness.
is
it
wise
rumor
starts and thus put
ever
the rumor-
confidence.
into your
third
A
before
out of business. Nothing
lost by taking employees
monger
is
sterilize
to
the
cumulative
can
be
kept
of- decades
face
or
the suggestion
originated in our factory
Every year we receive an average
of 3,000 suggestions. During every
12-month
period
we
distribute
Fifty
years
ago
idea
ball-bearings that insures perfect
action of the bearings; It can be
applied
ball-bearings
wherever
used.
are
When
realize
workers
dividual
incentive
in¬
that
rewarded
is
attention to tools,
processes and methods, all in the
hope that they can improve them
and thus be singled out for cash
they
more
pay
It
means
have 22,000 eyes and
the
that
ears
on
plant
Every bench and lathe is an ob¬
servation
post.
The factory is
suggestion-minded.
This is not
all. Achievement is not only re¬
throughout
job
the
warded
but publicized.
The fac¬
publication prints the news
and the picture of the worker who
wins a prize. All the workers be¬
tory
familiar with faces and the
come
feats of their successful colleagues
and
they
likewise.;
do
to
want
portunity is at everybody's elbow.
have the feel of
If management is to speak to its
employees it must have channels
identity with the organization. It
helps to neutralize the impersonal
phase of big industry and gives
the lift of pride in performance
no matter how humble it may be.
Thus the worker is no longer the
of communication.
vided
We have pro¬
said
has
Someone
many.
that the middle name of the NCR
forgotten man—a cog in a big ma¬
"Meeting." We have meeting;
galore, all to the end not only of
bringing all our people together
chine.
in groups or enmasse,
.
.
is
but of keep¬
Tie these things to a systematic ing them advised about what is
method
of
handling complaints going on. No conduit to the work¬
and suggestions, a fair wage, in-, ers is more direct or effective.
centive to advancement, and you
Once a month, for example, or
get some conception of what the at the call of the executives, we
employee wants to hear when have a Foremen's Meeting which
management speaks.
Since I
.
can
is
talk best about what
about
best, I will now tell you
our
own
industrial rela¬
tions.
The
I
know
their
episode
that marked
beginning has become some¬
a legend in American in¬
7 "
t ■ ■ ■
the early days of the NCR
thing of
dustry.
In
shipment of cash registers was
returned to the plant because of
defective workmanship.
The
founder of our business, John H.
a
Patterson,
neering
mined
was
to
that the engi¬
right, so he deter¬
knew
find
out
wnat
was
attended
all
by
company
of¬
ficers.
Reports
are
made on
phases of operations for the pre¬
ceding month.- Financial figures
sit
Thus
revealed.
are
the foremen
in with management
and dis¬
the problems of the business.
At these meetings division heads
cuss
deal
with
may
be
their
activities, which
Sales,
Engineering
Product Development.
or
The fore¬
and through them the work¬
ers, get. a comprehensive view of
every
phase of, production and
distribution.
They are made to
men,
mittee,-|,; recruited
management
and labor, is a fur¬
ther link with all
personnel. Here
management talks with men and
with management.
At each
men
son
monthly meeting a definite sub¬
worked in what
perhaps the first daylight
factory in the United States, with
80% of the walls glass. No more
cash registers came back.
That expanse of
glass let in
more
than, light, for something
ject, such as Care of Tools, Cut¬
Waste, Bottlenecks, Safety.
Absenteeism or Fire Protection is
discussed.
The
Labor-Manage¬
ment Committee has its own pub¬
ting
lication
which
goes
to
every
worker, thus giving wide public¬
an$vdeeper, than content ity to the real team work that
and e f flc i enc y3 in work had exists between the executive and
7
emerged'rrfrom all this change; worker levels.
larger
unique of
our
Horseshoe
Room,
which
is
a
lunch room. Originally the exec¬
utives, numbering not more than
20, lunched in the Officers Club.
Today 200 men lunch at a table
shaped like a horseshoe. They in¬
clude executives, supervisors and
foremen.
The shape of the table
permits
informal
companionship.
distinguished guests
company
speak to the
The
Horseshoe
Room,
of
the
groups.
therefore, is not only
a
forum ol
useful information and discussion
but
Da
O773
have
a feeling of pride in its par¬
ticipation.
Summed up, the managementemployee relation is as fluid and
continuing as life itself; It is
never concluded by the adoption
of a resolution, the shaping of a
new policy, or the projection of a
fresh idea.
Management must be
alert
and
to
alive
the
changing
and industry.
Industry needs satisfied work¬
of
pattern
ers
labor
much
as
as
customers.- You
if
it "needs satisfied
have
can
son
saw
ing
combine the elements
Head, Hand and Heart.
you
oi
woman
a
worker
down
.the, present
to
regarded welfare as
iave
we
im¬
an
portant channel of communication
vvith
where
workers 7can
men
study public speaking, salesman¬
ship and leadership, and where
women employees get courses in
and
arts
cooking,
crafts,
Hugh W. Long and Company's
day morning
our
Satur¬
entertainments
are
workers of tomorrow.
our
'
to
come
Management
can
So, we'll take this
vising those who
of ad¬
means
interested
are
prodigious
of
the price of our
buy a bottle
whiskey, today you are paying a
Federal tax, state tax and in many
you
local tax. Of course, there
areas a
is
Selection
Contest
foi
thirty days from
the4 finish line. Contestants, whc
asked to name, in order,
the
New
York Stocks, Inc. which would
register the greatest capital gains
during the period from Jan. 2
1944 to Dec. 31, 1944, are invest¬
were
Industry
seven
Series
of
ing contestants
was
in this order:
L. Donald E. Corfield, Pacific Co,
of
Cal., Long Beach, Calif.; 2. Sid¬
L. Johnson, Pacific Co. of Cal.,
ney
nothing
about high taxes in
is a
new
wartime. And since whiskey
have no
with
our Treasury's upping the excise
tax to a point where it amounts to
$9 a gallon, %".'■■■'
./
luxury product, surely
we
quarrel and neither have
Now, here's
a
you,
little mental arith¬
metic
problem for you: It takes
three gallons of whiskey to make a
case—twelve quarts,
If you buy a
proof whiskey
(whiskey is taxed on a proof gallon,
not on a wine gallon), you are
actually paying $27 excise tax on
that single case or $2.25 per bottle.
If your whiskey is eighty-six proof,
the tax is, of course, a little less,
but don't stop figuring yet. Add
of
case
state
one
hundred
taxes,
and sometimes
too,
local taxes. At any rate, you now
.
NCR Twenty-Five-Year Club. The
children who
produce bev¬
August.
1944 is less than
dressmaking.
These classes
ambition and point
,
Government has per¬
our
spirits during the month of
erage
Industry
sewing
.
that
mitted distilleries to
of
foster personal
.
now
immediate
an
price of whiskey,
products. When
Pasadena, Calif.; 3. Hunter Breckenridge,
McCourtney - Breckenridge & Co., St. Louis; 4. Haworth
the path to individual advance¬
F.
Hoch,
McCourtney-Breckenment.
'
;\"7':
7; v
ridge & Co., St. Louis; 5. John D.
Nor is all this welfare paternal¬
Hines, Schwabacher & Co.; New
ism. It is good business. For one
York; 6. Vincent Tolan, Nugent
thing, it creates a tradition of
& Igoe.
East Orange, N. J.; 7.
service that is a potent asset for
Rowldtt Williams, Pacific Co. of
any
enterprise.
Nearly 20% of
Cal., Los Angeles, Calif.; 8. George
our personnel are members of the
and
reduction in the
of any reduction in
-
classes
there has not been
conducting a global war
continues, there is little likelihood
Baths, recre¬
ation grounds, dining rooms, mo¬
tion pictures in the Auditorium
during the lunch hour, medical
service with a dental clinic, health ment
dealers
throughout
the
education, garden clubs, Saturday United
States,
and
their
em¬
morning entertainment for chil¬ ployees. $1,150 in war bonds will
dren of the workers, and a Credit
be awarded as prizes by Hugh W
Union are only part of the larger
Long
and
Company,
48
Wall
picture of welfare. We also have Street, New York
City.
"Self
Improvement" evening
On Dec. 1, standing of the lead¬
employees.
our
the good old days. Quite a few of
these inquiring minds wonder why
that just so long as the
warm¬
time,
present-
pensive these days. A lot of these
folk, of course, have memories of
cost
a
pot of coffee on a radiator
and thus got the * inspiration to
provide hot -meals- in- the factory,
of our friends seem
day high price of alcoholic bever¬
ages. Somehow or other, as indi¬
cated by our mail, a considerable
number of our citizenry wonder
why a bottle of whiskey is so ex¬
them
a
further fortify
M.
Lindsay, Elworth & Co., San
Jose, Calif.; 9. Victor L. Jones,
Jones Cosgrove & Co., Inc., Pasa¬
dena, Calif.; and 10. William O,
Kimball, J. S. Kirhball & Co..
have
a
pretty fair idea of how much
of the present price of a bottle of
whiskey
for taxes.
goes
No, you have
You
of your
no
other alternative.
either forego the
can
whiskey
or
you
yourself, "Well, here
to
luxury
can
other contribution to the
effort."
say
goes
an¬
war
7
And please continue to
blame only
Boston, Mass.
that "transient" trio, Ratso, Fatso,
through well-developed commu¬
nity relations. We have all along
The
seven
leading Series of
New York Stocks, Inc., up to Dec.
and
the theory that what was
good for the factory and its work¬
ers was good for Dayton, and vice
versa.
In consequence, we have
1,
the
its
of
satisfaction
workers
gone on
either intiated
or
aided community
betterment, whether city plan¬
ning,
traffic
control,
housing,
safety, recreation, and the inevi¬
table
One
reconversion.
of
ness
the basis for what
as
gard
practical
.as
illustrate:
we
altruism.
To
up
In
veteran
with
agencies,
one
ers
gained
8.4%,
rose
and the
27.74%.
Railroad
Prospects for Appreciation
Long
offers
Bell
Lumber
Company
enviable
an
post-war out¬
look with excellent prospects for
increased dividends and apprecia¬
tive Now?"
James M. Leopold Co. to
Admit. Robert J. Goldman
member
mobilized
in
tape
Thousands
detailed memorandum issued
a
this
market, prices,
interesting
according
circular
are
under
industrial
Robert J. Goldman w,-ll become
re¬
a
partner in James M. Leooold &
Co., 65 Broadway. New York City,
members of the New York St«mk
of
our
in the service who will want
they return from the
their
jobs
war.
factory identified with
placement,i they
can
only
York
On
the Vet¬
Center
tangle of delay
eliminated.
How
our
in
to
work¬
With the
N. Y. Analysts to Hear
On
Railroad
tion
have sons, brothers or friends
when
FREE —Send a postcard or letter to
Schenley Distillers Corp., 350 Fifth Ave.,
Y. 1, N. Y. and you will receive
a booklet containing reprints of earlier
articles on various subjects in this series.
N.
of
does this touch
lations?
period
the Dow Jones Industrial Average
Average
MARK MERIT
Of SCHENLEY DISTILLERS CORP.
available to dealers upon request.
Information
red
same
long now!
less scattered
these agencies
or
roof with the
and
During the
77
by Comstock & Co., 23V South. La
Salle Street, Chicago, 111.
Copies
more
been
erans'
It won't be
Equipment, 18.15%; Machin¬
18.08%, and Merchandising
17.59%.
1
We said "transient," didn't we?
Dayton the returned
a job had to deal
officially
designated
about the city., AH
have
ery,
Japso—Hitler, Mussolini and
Hirohito.
Friday, Dec. 15, the New
Society of Security Ana¬
lysts will hear John Mclnerney,
railroad ? specialist
with
Wood,
Walker & Co., speak on "What
Veteran's Information
seeking
12
road
re¬
We aided in the setting
a
1944, were:
Railroad, 32.88%
gain; Aviation, 23.34%; Automo¬
bile, 20.24%; Banks, 19.05%; Rail¬
our
departments
deals
solely
with
community relations.
Once more you find good busi¬
Center.
and bench.
was
One of the most
institutions—for such it is—is the
tablished
from
fore long the men
;
TEL.
3-9013
which
equally
Overnight Mr. Patter¬
remedied the situation.
Be¬
TEL. WHI
SAN FRANCISCO 4
of the Dayton District Devel¬
opment Committee, which has es¬
"in the know,"
stimulates both pride and
Com¬
dirty; the water for drinking-and1
washing unclean; the men sat* at •
work
on
old
boxes
instead of'
stools.
Discontent ruled at lathe
Just too many
'
NEWYORK 4
to be confused about the
1 5 0 D RUSS BUILDING
FRANCISCO STOCK EXCHANGE
feel that* they are
He moved his desk' intr
•ambition.'7
f
the factory, and he soon ' fmind
Our Labor-Management
out.
The factory was dark^.afid'
wrong.
Bottled Taxes
sounding-board for the en¬
from $3,000 to $20,000 in prizes; tire factory as well.
This year an assembler won the 7 Welfare and the NCR have be¬
first prize of $1,500 in War Bonds come synonymous. From that day
in the 90's, when John H. Patter¬
for devising a method of cleaning
They realize that the tonic of op¬
the desire
Wire
MEMBERS
SAH
The frequent
expansion7
of
factor is
the employee to
in
we
in
a plant than rumor,
It makes for
fear, apprehension, dissatisfaction
and finally disaffection. Hence it
is
alive
and commendation.
dangerous or disruptive
more
incentive
how
trate
usu¬
things. The average man, unhap¬
pily, is likely to grasp at the mis¬
information.
Few
agencies are
we
have done in the NCR will illus¬
than
misinformation
more
real information about most
What
ambition.;
individual
,
HEW YORK STOCK EXCHANGE
BROAD STREET
2 5
■
•Since money talks, many indus¬
trialists still labor under the de¬
upon request
sixty-five of a series.
Kaiser & Co.
a
beings with emotions and aspira¬ factory is not only brick, mortar
tions; I*
'
'
' •
: and machines, but men and women
This is why industrial relations as well.
One basic handicap in some in¬
—management speaking to its em¬
ployees and employees speaking dustrial organizations is that they
to management—are of paramount grow so fast that the individual
Factory
importance if the larger ends of worker is submerged.
industry are to be served. You team work is gained, but individ¬
cannot put, a heart-throb into a ual initiative, and what is even
machine but you can humanize more important, individual incen¬
the relations of the man at the tive, are often lost.
The size or
a plant, however,
machine.
•
•
need not stifle
:
A list of. these stocks is available
.
atti¬
It is the realization that
tude.
,
.
the
not
"man-to-man"
conventional
This is number
SCHENLEY DISTILLERS CORP., NEW YORK
industrial
our
reared.
is
fhe New York Curb Exchange
on
Quotations and executions promptly handled over our Direct Private
which
of
',■
•„
i,
ment contact with
velopment of industrial relations.:
on
the San Francisco Stock Exchange between
the hours of 10 a. m. and 5;30 p. m. (E.W.T.)
also traded
are
F
(Continued from page 2597)
Fxchange,
will
Securities
Dec.
of
discuss
18,
&
a
Co.
Attrac¬
Randolph Paul,
Day & Lord,
Corporate
Lord,
"Postwar
Taxation."
i
Dr. R. P.
Dinsmore, Vice-Pres¬
ident of Goodyear Tire & Rubber
Co., will sneak
for
the
on
Rubber
of Jan. 1, 1945. Mr. Dec. 20.
Goldman in .the past did business
All rneetings
as an individual floor broker
and \
was
Are
the "Outlook
Industry'', t.on
as
partner in R. J. Goldman
;
!
i
■
Broad
7n
>>
are
held
in
at? 56
Street, New York City, at
12:30 p.m.
f
THE COMMERCIAL & FINANCIAL .CHRONICLE
2602
Recent
Analyses
Standard Silica Corp.
Stock
>
J;
So. La Salle St.
208
''
■
We
Andover
Teletype
1122
available at your request
appears
Phone
Incorporated
CHICAGO
at
to be away from Governand bond issues to
loans
special meeting Dec. 8 author¬
150,000 shares (of new 4/2%
a
ized
3
non-convertible
cumulative
CG 1200
9600
pre¬
ferred, issuable in series.
The
for
preparing
company,
TRADING MARKETS
Preferred
Debenture 7
stock
Club
of
P.M.
capital. The un¬
earned
surplus.
./■
Amer. Insce. Union
pfd.
com.
Bldg. ws
*
Hotel Sherman Inc
5
ws
Morrison Hotel 5^ ws
Brisbane
Hearst
:
/
/
.
1
'*
•
Marshall Field & Co. is
j
in
to
quarters
some
expected
announce
plans for retiring its 6% cumula¬
preferred stock within the
tive
first three months of the new year.
preferred has
been discussed by the directors of
of
Retirement
the company
6, '42
the
for several years and
action at this time is seen as more
than
111.
Tele. CG 650-651
the
and
railroad
circles are
understood to favor the postpone¬
ment of any
action with regard to
the sale of Pullman's sleeping car
Pullman, given a choice to re¬
either its manufacturing or
products co.
tain
business as a result
of anti-trust proceedings brought
against it, elected to dispose of the
latter. It was .generally assumed
sleeping
41/2/54
First Securities Co.
that
of
Member
Chicago
CHICAGO
Andover
over
Salle
1520
St.
3
CG
car
would
railroads
the
single
Chicago Stock Exchange
South La
105
1
centralized
the ownership
form
a
pool to take
and operation
of
the
sleeping cars,
although
subsequently doubts were raised
with some roads favoring individ-
1399
(Continued
talks,
prepared
Union
Salle
as
prizes.
/•
.
charge
on page
MARKETS
/
:
(Special to The Financial'Chronicle)
L
MICH. — JamesK.
Jessop has been added to the staff
cjf Allipan, Moreland & Co., Pe¬
Board of Trade
Security
Ass'n
aidded
■
-
Archibald
R.
has
—
been
to the staff of Bankamerica
Co:, 650 So. Spring St.
Bldg., Chicago 4
"-Telephone: Harrison-2075
Members
and
New
Other
231
South La
Teletype CG 129
Direct
Wire to New
York Office
York Stock Exchange
Principal Exchanges
Salle
CHICAGO
State
2400
{
:
•
(Special to The Financial Chronicle)
LOS
Charles E.
with
Jones, Holman & Co., has joined
Matthews,
the
Co.,
&
with
!
L.
years
Putnam &
Co.,
LOUIS,
is
MO. —Peter
with
John
E.
Kauff-
R.
Co., 506 Olive St.
&
So.
453
Spring St.
Fahneslock & Go. to
—
many
(Special to The Financial Chronicle)
mann
now
ME.
for
staff of F.
Hartley Rogers & Co., is
Eichler
Raymond
—
(Special to The Financial Chronicle)
PORTLAND,
bert R. Herman, formerly with
;
ME.
Inc., Sears Building, Boston,
/. ;
"'/- •///"1
Co.,
1 ST.
Picotte
(Special to The Financial Chronicle)
; SAN' FRANCISCO,
CALIF.—
Mary J. Crawford is with William
(Special to The Financial Chronicle)
LOS ANGELES, CALIF.—M. C.
has joined
the staff of
(*. Brashears & Co., 510 So. Spring
R. Staats Co., 155
Montgomery St.
Niccoli
I CHICAGO,
S.
ILL. —Walter
Aagaard, resident manager of the
will be admitted to
the firm
&
as
I
partnership in
S
of Jan. 1, 1945, Fahne¬
Co.
are
members
of
leading
other
and
/'/"'/
(Special to The Financial Chronicle)- /
ANGELES,
LOS
Charles
the
H.
CALIF.
has
Richards
—
become
affiliated with Hill, Richards &
Co., 621 South St.
Mr. Richards
.
New York and Chicago Stock Ex¬
changes
//
Street.
Chicago office of Fahnestock &
Co., 135 South La Salle Street,
ex¬
was
changes.
previously with Bankamerica
Co. and H. R. Baker & Co.
Twin
Oily Bend Traders
Appoint Oomnsittces
|
Babbert With Phillips
ILL.—Joseph
CHICAGO,
An-
rejoined
the
staff of Robert J. Phillips &.
Co.,
141 West Jackson Boulevard.
-!
LOS
4
Co.,
Babbert
has
has
<
ANGELES, CALIF.—Mar-
i
209 S. La Salle Street
4
Tel. Dearborn 9200
•
Chicago 4
Tele. CG 146
-
/■.;
Bank of St. Paul,
-•
/' ' •
Membership
—
Woodard-Elwood
i
!
(Special to The Financial Chronicle)
LOS ANGELES,
ANGELES,
Kerr
CALIF.
—
Bell, is
now
affili¬
(Special to The Financial Chronicle)
/ MIAMI,
Graves
is
&
Building.
FLA. —Raymond
now
Co.,
Cd:; all of Minneapolis... *
f publicity—Kermit Sorum, Alljson-Williams Co., Minneapolis; /
Eritertainment
—
Robert
Mc~
Williams - McNaghten
Co., Chairman; Ted Pelton, North¬
western National Bank, and Wil¬
Rossiter, previously
&
&
t Naghten,
(Special to The Financial Chronicle)
F.
Soace,
Chair¬
man/Jack Delaney, Delaney &
and Merrill Cohen, J. M. Dairi
Pacific
and Fairman & Co.
LOS
Walt
Co.,-
&
and the
CALIF^-yMax Co.;
C. Ibers Jr. has become associated
'
Members of Chicago Stock Exchange
■
Babcock,
Piper,- Jaffray & Hopwood, Min¬
neapolis, Ade Helfman, First Na¬
tional
/•
■
Lawrence
William A.Fuller&Co.
1944-1945:
officers.
Street.
:
Common
Club,
has
an¬
following committees
Executive.— Carroll
E. F. Hulton & Co., 623 So. Spring
recently been serv¬
■
Traders
nounced the
jorie B. Aldrich is connected with
Mr.
Babbert
MINN.—
Rieger, of Jamieson &
President of the Twin City
Bond
for
(Special to The Financial Chronicle)
■
:
drew
MINNEAPOLIS,
Charles C.
!
:
Wilcox
252
(Special to The Financial Chronicle)
;
CALIF.—Al¬
ANGELES,
Bateman,
Street
CG
v
Inc., 97 Exchange St.
://'./■■
-:/,
the
associated for many years.
CALIF.
ANGELES,
Ilynim
with
Company
Pierce, Fenner &
W. Penfold is with Chas. A. Day So
i
LOS
$o. Spring St.
Sincere and
Lynch,
1 PORTLAND,
;
(Special to The Financial Chronicle)
Chemicals Inc.
Dealers
Co., has joined the. staff of
Mass.
nobscot Building.
I
strauss bros.
York
ter &
,
j DETROIT,
ated with Dean Witter & Co., 634
New
?
be
Preferreds
Members
/./
Beane, Central Bank Bldg.
19,
Durez Plastics &
Iowa Elec. Light Power
to The Financial Chronicle)
OAKLAND,! CALIF. —Michael
J. Neff, formarly with Dean Wit¬
Merrill
Northern Inc. 5s 1982
MIDWEST
(Special
i
.
Mr. Ibers was pre¬
viously with Pledger & Co., IncM
for the
the
•
Chronicle for publication in this column.
Mutual Bldg.
Waterloo Cedar Falls
be
Stock
Survey
firm upon
of, the
Co., 105 West Adams St.
of
buying department of M. B. Cick
& Co., with which he had been
ing in the U. S. Army.
2603)
will
request. /•
Companies,
their
ILL. —Robert
L.
Block, for many years with John
Nuveen & Co., has become asso¬
ciated with Wayne Hummer &
/••>:
of
Copies
sent by
in
If you contemplate making additions to your personnel
/CHICAGO,
CHICAGO, ILL.—Edward Ben¬
jamin has opened offices at One
No. La Salle St., to engage in the
securities business.
Mr. Benjamin
in
231
Street,
featured
is
Survey.
four-
new
McKinnon,
the Tobacco
for
look
a
&
Salle
La
have an
interesting discussion of the out¬
available from
j. (Special to The Financial Chronicle)
;
formerly
are
Thomson
South
Copies
please send in particulars to the Editor of The Financial
(Special to The Financial Chronicle)
was
for
have
j
Edw. Benjamin Opens
Own Office lei Chisago
1
the
outlook
post-war
Street,
j
Metz-
will
turkeys
Copies may be had from the firm
request.
Hy./I ./•:/'/ ■ ';-/•■/
Broker-Dealer Personnel Items
Secretary,
care
Trust Co., Pittsburgh
large
discussing
bulletin on Chicago,
& South/ Bend RR.
so
Jr.,
Two
Pa.
J.
Albert
to
circular
a
Shore
upon
page brochure on Long-Bell Lum¬
places have been re¬
honorary members and
mailed
avail¬
request.
on
Doyle, O'Connor & Co., Inc..,
South La Salle Street, have
request.
on
with Oscar F, Kraft & Co.,
NEW YORK
/
CG 451
r
135
Comstock & Co., 231 South La
.
should be made payable
Bond Club of Pittsburgh
the
and
stock
business until after the war.
able
which
,
Military, Office of Defense Trans¬
portation, and various other Gov¬
ernment
utah radio
.
./
'
ber Co., copies of which are
up-
the firm upon request.
probability.
In the interest of war needs,
■
Tel. ANDover 5700
a
prepared
|
Straus Securities Company
135 South La Salle St., Chicago 3,
its
no
to
coming from
...
*
*•.
••
.
available
of this circular
ap¬
surplus to stated
such
additional
necessary
as
Co., 208 South La
have
Central Steel & Wire Co.
,
also
shareholders
&
Street,
attractive
hold
will
of his fine Yuletide
given
i
Furniture Mart
Randolph 4696
.
for guests
of accrued dividends.
$15 through a transfer of all ex¬
•
are
charge for members in good
standing; guests $5 each. Checks
an
increase in the par
value of the common from $10- to
trading inter¬
Amer. Furniture Mart
Pittsburgh
Special
and will send circulars upon request—
Amer.
Toronto
'
•
Chicago 4, Illinois
ment on Chicago North Shore &
Milwaukee RR., copies of which
Christmas luncheon at the
served for
proved
ESTATES
'
t6-date earnings and current com¬
Saturday, Dec. 23, beginning at
maier,
Butler
Phone State 0101
the following REAL
Indianapolis
Brailsford
^'PITTSBURGH, PA.—The Bond
50,000 shares of new pre¬
ferred will provide a source of
additional
working
capital
if
amount
in
York -V",■*
Salle
j: Dean N. R. H. Moor will deliver
$8,398,272,
of
aggregate
an
isting paid-in
capital,
with
est
that most
now
much enjoyed in past years.
issued
Chicago 4, Illinois
active
^
Salle Street
208 S. La
//://;
teresting
one
/Balance of the proceeds will be
La Salle Street
an
Quoted
Sold
—
ZIPPIN & COMPANY/
Street
Ghrishnas Luncheoa
needed later.
We maintain
New
is
adams & co.
Teletype CG 361
5690 v
;
,
I Caswell & : Co.,
120 South La
Salle Street, have prepared an in¬
12:15
and will use the
added to working
Common
South
Exchange
South
dn
270,912 shares of 5% con¬
preferred at the re¬
exclusive
Engineering Corp.
231
Bought
:
^
/
.
exchanges: ,/
CHICAGO 4
past presidents of the Club. There-
or
Interstate Aircraft &
•
Stock
principal
Paper Co.
•••'// 5/60, &. Common./
'
s i
demption price of $31 a share,
stock
Vis due 1953 with stock
Common
all
231 South LaSalle
vertible
Old Ben Coal Company
with
York
and
/. '
Pittsburgh Bond Ossb
proceeds to retire the outstand¬
Preferred
ing
1948
1,
Jan.
about
Franklin County Coal Corp.
due
/New
'
Red Room of the Duquesne Club
of diver¬
sification, expansion and im¬
provement,
expects
to
issue
100,900 shares, $10,000,000 par
value, of the
new
preferred
National Terminals Corp.
6s
Members
.
fo¬
annual
its post-war program
&
.i
Central
Sixth War Loan Drive and
Stockholders of Butler Brothers
135 S. La Salle Street
Common
*/• "
///1§*
w.
"
Minn. & Ontario
:
/
THOMSON & McKINNON
been
equity financing;
Doyle, O'Connor & Co.
&
,/,r.
be sent
upon request.
//\/
.
**'
—
<
//. ■ ■
,<"•./;> v
copy will
5
Com. '/:
:•////;/•/*
5/59 ~^-Pfd;
Stock Survey.
our
/'; / A
completed, a considerable increase in equity
financing may be expected, according to La Salle Street sources,
with the greatest amount of activity coming after the New Year.
New money is being sought to finance post-war expansion and re¬
habilitation and the trend, the head of one investment house stated,
has
refunding
ment
Common
c o.
;///..'//.;f Brown Co.
Chicago Brevities///§/
South Bend Railroad
ACTIVE
of
/ -•
■
>
/
4 is discussed in a current issue
//■•'/..///;/..//;
request
on
""
With the end of the
AND
Dearborn
CG
bulletin ort
a
Chicago, South Shore
Copies
4,
'Pole. CG 156
1439
prepared
have
Circular
' -
120 South La Salle Street, Chicago 3,11L
-
,
CHICAGO 4
Phone
the building trades and many others, i\
substantial and sustaining.•:/'.-
/://■; cas we ll
Exchange
Exchanges
Stock
York
New
and other Principal
brass,' aluminum. 7The
stock
common
the/.
// TOBACCO COMPANIES
is selling for LESS; THAN. THE NET.
CURRENT ASSETS, which are now well over $9.00 per share.
The
FAROLL & COMPANY
Member
expected to-be very
is
The Outlook for
jobbers and warehouse
wire,' copper,
post-war demand from
Stock
Common
of steel,
distributors
NOT
WIRE COMPANY DOES
&
fabricate metals, but acts simply as
Merchants Distilling Corp.
•Common
STEEL
CENTRAL
The
Request
on
Thursday,- December 14. 1944
with
A.
Gordon
Shoreland Arcade
liam
all
Howard, J. M. Dain & Co.,
Minneapolis.
of
Officers—In
addition
to
Mr,
Maynard Rue,- J. .M.
Dain & Co., national committee¬
man; William Lau, Frank & Belden, Inc., Minneapolis/vice-presi¬
Rieger,
dent;
are
Dan
Mahoney,
Gn ,D.
Ma-?
honey & Co., Minneapolis, secre-,
tary, and Carl Kail, of First Na¬
tional Bank of
urer.
Minneapolis, treas-
_
Volume 460
r> Number
The
?.
An Outstanding
Post War Stock
■'
The
"run
same
V
of
mill"
the
New four page
—
Pacific Coast
Fuller Mfg.
For
Globe Steel Tubes
UNDERWRITERS
brochure
MARKET
SECONDARY
Established 1922
CHICAGO 4
231 So. La Salle St.
:•''. *■
THE REASON THEY BUY MORE OF ANY STANDARD
Dearborn 1501
C6 362
.
CHICAGO 3
650 S. Spring St.
135 La Salle St
Randolph 3002
.
120 South La Salle Street
LOS ANGELES 14
CHICAGO 3
■,Teletype CG 257.
C. L. Schmidt & Co.
DISTRIBUTION
COMSTOCK & CO.
people who
them, as you do when you go out "to sell anything else.
people buy anything they have some urge which "causes them
to do so
—
Mills
Delta Electric
;v now Available on request
desire to fill
Before
Middle West
Common
answer
which must be filled and the
Wholesale Distributors
Long-Bell Lumber
By JOHN DUTTON
to the problem of doing more business is "Merchan-.
dising." : It doesn't matter whether you are selling commodities or
an intangible such as securities—IF YOU WANT TO DO BUSINESS
YOU MUST KNOW HOW TO MERCHANDISE YOUR; PRODUCT.
When it comes to securities you have the same wants, needs/desires
,
Allied Paper
of A Bulletin to Be Sent to Clients and
Prospects at Regular Intervals,
Tradio g markets in
carter h.c0rbrey&co.
,
-7-
The
2603
THE .COMMERCIAL & FINANCIAL CHRONICLE
"4342
Tel. Randolph 6960
Trinity 3908
Tele. CG 878
PRODUCT THAN ANOTHER IS THAT THEY HAVE CONFIDENCE"
IN
ITS; MAKER.
\
In
MERCHANDISING IS THE ANSWER.
-
V""'.
opinion there is no better way : fof the security dealer
path that will lead to his door \ than to use the kind of
advertising that BUILDS GOOD-WILL AND CONFIDENCE,; AND
(Continued from page 2602)
USE IT REGULARLY. . Certain dealers with ; whom we have dis-.
cussed, this subject tell us that they have been using newspaper ual
ownership and others the unification of Chicago's traction
advertising constantly week after week for the past year and that formation of regional pools,
] : system* submitted by trustees of
the surface and elevated lines on
it does two things. Firstly, it creates CONFIDENCE IN THE , FIRM
Sale-of Pullman's sleeping car
Nov.
THROUGHOUT THE ENTIRE COMMUNITY and this breaks down
30, was heard by Judge
business at this time, it was be(
Michael L. Igoe on Dec. 11.
sales resistance whenever a direct contact is made with new w old
lieved, might unduly interrupt
our
to build
a
Secondly,
prospects.
lead to
new:
it
accounts
;
creates direct leads and inquiries which
incidentally bolsters the confidence lot
be
should
create
i
constructive
be
on
such
—
it
advertising
interfere with heavy war¬
v an
burden
unnecessary
,'
••
*
...
$
1
*
.
-j;
.
...
The
Chicago, Rock Island .&
little in the Pacific Railway has undertaken a
securities business when it comes to building a clientele of satisfied $ 1;'190,000 improvement program
customers. The securities business is a very personal business — to provide more efficient facilities
therefore the small firm has just as broad an opportunity FOR for
repairing and conditioning
SUCCESSFULLY MERCHANDISING ITS SERVICES as the .very passenger car equipment at its;
Jarge;firm. One of the best mediums for the smaller firm to use Chicago repair yards.
Capacity
in building up its business is A REGULAR MONTHLY OR SEMI¬ use of1 all
equipment has placed;
MONTHLY BULLETIN OR HOUSE ORGAN, It can be multigraphed, increased demands on the "car ser¬
Whether
or
:
.•:•
not
a
i:
-
firm is small in size
very
means
'■
;
on
specific situations AND SOME OF THESE PEOPLE- are
sending him orders by mail. This proves two things very clearly: —
The
The
interest.
the public is in a mood to buy
for years and that this dealer's
STANDING JOB.
securities which we have not seen
monthly bulletin DOES AN OUT¬
';;V
.
new
141 W. Jackson Blvd.,
Here are some of the things he wrote about last month. - He
said it was the time of year for so-called experts to give their
opinions regarding the business Outlook for the coming year. But in
his plain language he said he believed that what his clients desired
to learn was whether or not this, was a good time TO BUY SECUR¬
ITIES OR TO HOLD CASH. He then told them why he thought it
for
' mortgage
mY*
(but he didn't get too technical) and
four short outlines of specific securities that he thought
were attractive at this time.
He enclosed a return card that could
be used to secure more information regarding these four: stocks
that were outlined in the bulletin. SEVERAL INDIVIDUALS SENT
IN ORDERS WITHOUT ASKING FOR MORE INFORMATION. One
shortages in consumer goods
Metzman, President of
York
Central
.
V.,tion
of
New
.York, - Inc., l it
is
announced
by Association
President,
Neal
Becker,
price per share as
Metzman
under XX
mentioned in your bulletin of December, 1944.
dent
The bulletin this dealer uses doesn't try to sell anything but
investment principles, fair dealing, a willingness to serve,
knowledge of the securities business, and there is a ring of sincerity
behind the whole job.
Why not write one of your own? There
are so many interesting, helpful, things you can tell the people that
you know in your community about the principles of successful
investment and what you and your firm are willing to do to help
them achieve this end — THE COST IS SMALL —THE OPPOR¬
ings.
of
Central
twenty-
four
years
service
Hamlin & Lunt to Admit
Electric Power & Light Corp. is
interested for "appreciation vs.
income" accounts, according to a
memorandum
on
the
situation
..
BUFFALO, N. Y.—Hamlin &
Lunt,
Marine
Trust
Building,
a
this
memo¬
calendar
qf.^ail
of
holidays
had from Vilas & Hickey
Jan.
partnership in the firni
1, 1945.
,
■
.
ft
LOS
CALIF.
ANGELAS,
A.
associated
Howard
with
has
Pacific
—
become
Co.
of
California, 623 So. Hope St.* mem¬
bers of the Los Angeles Stock Ex¬
change. "Mr. Howard was previ¬
ously with Quincy Cass Assoelates*"
^
'
*
with the Bal¬
Transportation
to the President.
Assistant
In World War I
Offices
In
Specialists in
Chicago North Shore
■v..,. ' •'
AND
'
v
:
Milwaukee Railroad
•
a
luncheon
Analysis of equities and earnings
available
meeting
Dec.
27
the
at
on
request.
Bankers
The
208
Under Secretary will discuss "The
Air Forces Look Ahead."
S.
La
Salle
Street
CHICAGO 4
Tel. State 9868
CG 95
.
Profit Through Special
Or Secondary Offerings
Special and secondary offerings
a
profitable phase of the
securities business, according to a
study prepared by Shields & Co.,
44 Wall St., New York City, mem¬
s.
are
bers of the New York Stock Ex¬
and
other
Copies
leading Ex¬
of the booklet
SERVING INVESTMENT DEALERS
We
specialize exclusively in under¬
writing and distribution of securi¬
ties, providing investment dealers
with
attractive
in
no
invited.
-
.,
'
ministration
he
war
was
their
way with dealers, but serve
exclusively. Correspondence
sent
quest.
for
Maintaining no retail de¬
partment of our own, we compete
them
by Shields & Co. upon re¬
issues
clients.
analyzing these offerings will'be'
>
FLOYD D. CERF CO,
timore & Ohio Railroad...His-first
as
Our
Principal Cities Throughout
the Country
;
•;
dent of the club anriouhced.
and
in
Chief
the
of
Exclusively
present
Rail
Wholesalers
and
Underwriters
120 South La Salle Street
Divi¬
Chicago 3
sion, Transportation Corps, United
States Army, at
Fred.W. FairmanCo.
'/.W
.
Air Lines
Washington, D. C.
HICKS & PRICE
"Members
Exchange
Stock
Chicago Board of Trade
Firm
Trading Markets
Aircraft
Members
Chicago & Southern
Mid-Continent
,
Chicago Stock Exchange
New York Curb Exchange (Assoc.)
Chicago Board of Trade
Venetian
3
-
5s
Stevens
w/x
208 SOUTH LA
SALLE ST.
Telephone
Bell
4, ILLINOIS
Randolph 4068
System
Members
MIDDLE WESTERN
New York Curb (Associate)
Chicago Stock Exchange
SECURITIES
KITCHEN & CO.
135 South La Salle Street
.
"
Chicago 3, III.
Tel. STAte
4950
Chicago Board of Trade
231 S. La Salle St.
.
CHICAGO
& CO.
National
Magnavox Common
Columbus
JOHN J. O'BRIEN
New York Stock Exchange
Garrett Corporation
(Special to The Financial Chronicle)
Perry
in .1903
he served with the Railroad Ad-
Interstate
With Pacific Co.
clerk
copy-
To
Wires
SINCE 1908IMM
Chicago
p.n, re¬
Gustav Metzman
a
Central 7540
Direct
•
Club, Henry G. Riter, 3rd, presi¬
changes.
began
Exchange, will admit Elizabeth..W.
on
events over the
quest,
be held
'railroad
was
Hamlin to
CHICAGO 3
CG 530
of the Bond Club of New York to
railroad.
s
'*
-
address
that
job with the New York Central
prepared
by Vilas & Hickey,
St., New York City, mem¬
bers of, the New York Stoclr, Ex¬
Copies
of
with
members of the New York Stock
49 Wall
and
will
H i
Electric Power & Light
Situation of Interest
Incorporated
135 South La Salle Street)
The Honorable Robert A. Lovett
Under Secretary of War for Air,
change
as
randum
last
Septem ber
after
IS LARGE.
change.
the
York
career
'
was
Presi¬
New
sound
TUNITY
Mr.
named
through previous mail¬
■
Dow
wrote, Please sell me X number of shares of XX stock at
This is the result of building confidence
*1
,
New
Trading Markets
E. H. Rollins & Sons
-
Bond Clab of H. Y.
then he gave
j
Wt Maintain Active
1
Of Comm,fnd. Ass'n
.
Municipal Issues
in the Leading Over-Counter Securities
LoveH to Address
Gustav
Railroad
»
V
the plan does not differ from one
Guslar Metzman Dir.
the
Utility
Industrial
capital structure,
changed
a
Chicago 4
CG 1276
Investment Securities
Public
i
System,
good time to be in an invested position. He next gave them
has been elected a Director of the
his ideas as to the types of securities he thought were attractive,
Commerce and Industry Associainvestments at this time. He quoted some facts and figures regarding
a
was
Teletype
bonds would be exchanged
plan for reorganization and the ICC rejected in 1942.
;
(
i
The first of the hearings on the
Quoted
DANIEL F. RICE & CO.
plan calls for a $45,000,000 full secured first mortgage,
bearing 4% interest, and $33,000,-;
000
in
income
bonds
carrying
41/2 %
Sold
-—
Members New York Stock Exchange
end Chicago Board of Trade
new
.►
placed and modernized later,
Bought
1
Commission for approval.
.
about
MUNICIPAL BONDS
to the Illinois Commerce
sent
for the
outstanding $72,000,000 first mort¬
mimeographed, or printed at a small cost. It can be sent, out to all vicing facilities of the railroad,!■ | gage 5s of the surface lines, and
^
' ' I' " '
clients, prospects, or institutions, with whom the firm has had- any
in addition,
bondholders would
contact at any time in the past. It can carry your message DIRECT
The Congress Hotel was sold
get a cash payment totalling over
to the people with whom you are doing business or hope to do
by the Reconstruction Finance
$3,000,000.
Senior bonds of the
business.
IT CAN BUILD CONFIDENCE IN YOU AND YOUR
Corporation to a group of Chielevated lines would be exchanged
MERCHANDISE PROVIDING YOU KNOW YOUR BUSINESS AND
cagoans for $1,256,000. The new
for $7,000,000 of income bonds of
TELL YOUR STORY IN LANGUAGE THAT EVERYDAY PEOPLE
owners expect
to take posses¬
the new company. About a third
CAN UNDERSTAND,
sion
of the
property shortly
y."-;-vV
,,
of
the
approximately
1,000,000
after the new year and plan to
One dealer who has been sending out a two-page mimeographed
shares of common stock of the
spend $1,000,000 to restore the : new
monthly bulletin along these lines is actually receiving orders for
company would go to security
1,000 room hotel, which is sched¬
securities from people with whom he has never had a personal
holders of the elevated iines and
uled to reopen about June 1.
interview. He built up a mailing list which includes replies that
two-thirds to junior security hold¬
The building front is to be re¬
he has received during the past year regarding offers of information
ers of the surface lines.
Except
'■
Wisconsin
1
termined to
the
on
roads at this time,
Illinois, Iowa and
Judge Igoe indicated he is de¬
speed up the plan
and it is hoped early consent of
security holders will be ob¬
tained, so that the plan may be
time passenger traffic and place
preaching and it
to constantly build ■ confidence; and
as
good-will.' ""
Of course,
without
inform
must
plane
a
and
and
OLD CLIENTS AND KEEPS THEM LOYAL.
must
Chicago Brevities
.
.
I
Tele. CG 105
WALL STREET,
-
*
i
f
.
-e
231 S. La Salle Street
CHICAGO 4
972
NEW YORK
BOwling Green 9-1432
CG 681
"N
CHICAGO 4
Randolph 5686 • CG
/"
»■
'
..
2604
THE COMMERCIAL & FINANCIAL CHRONICLE
innovations
dramatic
Aeronautical Products Com.
Northern Paper Mills
Old Line Life Insurance
I
Pref.
ter
|
La Plant Choate Mfg. Co. Pfd.
| Compo Shoe Mchy. Com. & Pfd.
pendability of mass movement in
long trains pulled by one unit of
as
a
and
with
stronger through new
of manufacture.
Cross
processes
have
ties
relatively immune from the vaga¬
ries of
MASON
EAST
ST.
MILWAUKEE
;
(2), WIS.
steam
tives
|
have
'
been
improved - tre¬
locomotive'
Teletype
MI
488
mendously i h efficiency.
Diesels
are setting up ever higher records
of sustained -work,; longer,
I
wheel
The Wisconsin Electric Power
•<
:
A
Co. and its subsidiaries reported
for
12
the
30, 1944,
Sept.
makes
ruifs,
and
economical
*
•
comparable figure for the
ceding 12 months
The Aeronautical Products, Inc.,
which
and
operates two
modern and completely equipped
plants, reported for the fiscal year
May 31, 1944, a net profit of
owns
$183,275, after estimated renego¬
tiation, equal to $1.22 per share as
compared with -$1.21 per -share in
1943 and 95 cents per share in
1942, after renegotiation proceed¬
ings in both years. At May 31,
1942, the company had a net work¬
ing capital of $509,690, equal to
nearly $3.50 per share on the
149,910 common shares outstand¬
ing.
.-t i '
♦
7
cents
yard
distributed
July
^
W.
.
F.
-'
,
Kurfess
1
'
;
modernized
of the
Army, the Navy and the Govern¬
ment publicly express their ap¬
for
Sept.
the
30,
has
12
been
ap¬
material handling
a host
applications of modern
invention
1944,
All
to
the
-
these
are
many
v
why
reasons
this superlative job or war trans¬
portation has
cessfully.
been
done
One—the
so
search
for
has
that
continuous
and
for
against
as
12
the
preferred
traditional
months
ended
v-' 7.
;•
of
has been
"know how"
for
-S':'.
experiences
their
plans
air
and
highway,
carriers?
despite
waterway
spent
It
was
criticism; yes, and even
It, was spent 'because of
because
future; of
the
faith
of
the
in
industry;
railroad
because of faith in the destiny of
country!
cur
And
V
I
so
Don't
salutary
lessons
were
repeat,
the
sell
while the
World
of
can't
" j
gentlemen;
■
>
short!
railroads
afford
War
to—not
ff
in
and of faith!
courage
made
in the minds of
fresh
Ypu
emergency
than 20 years ago,
more
One
this
for
#
*
If I make the flat statement that
there
few
are
industries
this
in
country that have been, and are,
more
rail¬
progressive, more alert to
invention, more consistently in¬
working with the Army
and Navy and other Government
terested in scientific research and
departments, worked out detailed
might
all.
It
was
then
the
that
roads,
plans
to
avoid
bottlenecks
transportation, to prevent
tion
in
conges¬
at
ports and to escape the
paralyzing effects of using freight
cars as storage warehouses should
the
tragedy
our
technological
the
cooperation
commercial
utmost
the
shippers
service
facilities;
of
nation's
to
get
of
out
cooperation
the
railroad
that
has
enabled the railroads to meet, not
only the tremendous demands of
but all the civilian needs of
war,
the home front
Still
railroads'
came
as
another
is
well.
the fact
for
when
the
war
that
during the
immediately preced¬
ing Pearl Harbor-they spent more
than $11,000,000,000 for additions
two decades
and
improvements to their
erty.
bmld
This
a
chine.
money was spent to
better transportation ma¬
It
was
spent
courage¬
ously—and wisely,
ence
prop¬
in
this
war
as
our
has
experi¬
shown—in
it is true.
lic with
the face
of
increasing
compe¬
progress
'
get
tangible
seen,
product
which
can
be
tested, purchased and used
by individuals.
the
railroads
On the contrary,
sell
only
services,
and individuals have little
oppor¬
tunity
to
in, the
such
field
measure
machine
services.
improvements
which renders
In
fact,
in
progress
is
largely
shows
up
the- cold
statistics
of
the
mostly
safety,
gratifying
revenues.
achievements
such
the
as
conditioning
of
passenger
trains, the streamliners that have
to
-
captured
public fancy and our
TMesel locomotives,
new
name,
150
a.,
few
keenest
evep
of more
experts
of
peace.
the* Association
by
and
friends
hear
talk
proudly
of
some
"Preparing for tomorrow's job
always been so much a part
of railroading that we forgot to
label as 'post-war planning' what
we have been doing since Hector
was
a
The
far
But that's what it is,"
pup.
significance of all this, in
so
my
as
and
progressive
and
minded as this proves?
*
ther, that
railroads
they
the
t-
sure,
we
But
the
we
go
far¬
for
means
goods
and
Place to another
railroads
are
will
•
unique
fifld of, transportation.
*.
of
in
V-'1'
For
door-to-door
service,
will
some
skim
of ;
off
the1.- railroads'
may
buses
will
and
of
the
they
cream
" traffic—such
shipments '
"pick
they
as
choose."
and
get some
of
The
the
rail-
roads'short-haul passenger busi¬
although
ness,
believe,
the
and
more
bus
will
I
more,
become
a
useful supplement to rail services.
Both may do well—as long as
they
do not have to contend with
snow¬
culties over-which they have
no
The slow waterway carriers will
also take some of the railroads'
business—in
where
those
navigable
available
in
and
limited
areas
waterways
those
are
equally
limited periods when they are not
"frozen in" or immobilized by low
j",
i
,
But all the traffic that all the
extravagant
predictions - or
to
bring disaster to the railroad in¬
dustry.
For no one can question
First,
the
in
post-war
-
world,
be
could
billion
a
kinds
all
and
of
a
freight
will
these days
face,
that
come
enthusiasts
the
take
of
of
much
over
transportation,
surface carriers.
air
the
leaving
»
The truckers and the
aloud
dream
which
much
of
hope- to
move
taxpayers'.expeqjejj
apr.
being proposed
the river, canal and harbor
now
which will helo
cut deeply into railroad
citement is
after all the
ex¬
I predict that the
ever
railroads will still be handling by
far
the
just
ness
t
.t
.
1
'}
maior
erAitfbt
ica's
.
as
portion
a^d
:
of
Amer¬
nas^enger
have
they
L:
of
the
.
i'
na¬
business conducted
small
inventory
system;
with much of its production flow¬
ing
from
niques,
assembly-line
dependability
and
tech¬
regu¬
larity of delivery: will continue to
be the other maior factor in de¬
termining what form of transport
will get the most of the available
freight traffic.
It is pertinent, at this point,; to
remind
again
you
that the rail¬
haul
roads
anything and every¬
thing, anywhere, at any time,, in
any kind of weather, at an aver¬
age cost to the shipper of slightly
than
one penny oer ton per
No other existing form'of
mile.
transportation
until
one
say that!
And
I repeat:
In vonr
don't sell the
can
can,
post-war planning,
railroads short!
if.
And
*
it
final word.
The
railroads of this country are more
than
now
one
efficient transportation
ma¬
chines.
They are part and parcel
of the American way of life; part
parcel of every industry,
commercial and agricul¬
tural activity.
They are symbols,
jn.^wav. of all that this democ¬
racy'stands for—the opportunity
,to pioneer,
the freedom to grow
and prosper, the right to stand on
their
own
own
feet and
way,
serving
and
the
pay
the
common
all their
privilege
good.
busi-
always
of
The
oHv future thev have is the future
of human enterprise in this
traffic—thev hope.
Nevertheless,
and,
most
and
the tremendous Federal
to
With
pyerv
-cdtfil
country's
the
nropriations
them
the
oper¬
The waterway fanatics gleefully
eye
on
great,
superhighways
they
merce—at the
mis
of: the
Government-built
over
Second,
tion's post-war
that the airplane
perhaps only the sand and gravel
and coal to be fought over by the
ators
share of the nation's freight 2nd
passenger traffic;
less
of
nation's
'
-
almost
railroads
Some
Fundamentally
of
be
improvements
of several
one
will
-
tonnage
transport claim
for
*
before
transportation
people from
alert
all understand what
are.
are one
as
research-
train
the
and
Peace again.
wise to sell the rail¬
roads short when they are
-
the
about the intense competition
the
has
of
terminal to ter¬
I know we hear a lot
my
about
tons
last year.
by
post-war planning of their indus¬
tries, I make no apologies for the
railroads.
Instead I just say:
thou¬
by highway or air.
Then
that
the
railroads
tons
the
I
when
train
a
a
thousand
under
the
all
half
the individual railroads.
So,
;
The -trucks will have a slight
advantage in the convenience' of
which all movement is
up
handled
expects to complete its
studies
next
year,
after
which the work will be continued,
both
as¬
remember
This group
initial
special.-advantage.-
The resulting train will, these basic facts:
times
moved
nation recon¬
pursuits
eight
over
all
that
sibilities; and the probable trans¬
the
were
cars
Compare this method of han¬
dling the nation's freight with any
other method you know about
Figure out, for instance,
how
many trucks and drivers or how
many airplanes and pilots would
be necessary to move just one
trainload (say about 2,000 tons)
of
freight from New York to
Chicago — fantastically assuming
forms of transport and their pos¬
to
cordwood
the cars distrib¬
uted to, many different locations
for unloading.
'
'
'
quietly, but diligently, studying
phase of railroading; every
and scientific promise
of the future; all the competitive
verted
container
contain from
destination
economic
a
hopper
in
central yard and
some
will
broken
every
portation needs of
-afford ,to pay a
for ;*■ this v
one
can
premium-
competition in all fields, economy
complete, will continue to be one of two
protection of the rail- j major factors in determining what
road's personnel.
Upon arrival at j form of transport gets the lion's
in the railroad business have been
»of„ |he^ mor^ the
iX'i'v.yiu
the
of
Let's be
pioneering
air
For two years a group
high
control and
let this interest
never
box
cars,
tank
loaded
to
way
at
;
'
traffic that
minal by a crew of only five men. what with its
heavy taxes for
While it is enroute between termi- ; years to come; its
relatively high
nals it will be on a private road- labor and material costs; its stiff
encouraging is the'evidence
that the railroad industry realizes
that it must
cars,
standard
covered
be handled from
more
it possibly be
some¬
are
But
.
in
freight.
is
of
-solvency in the face of
pyramiding costs and declining
course,
itself.
plane, in flying weather, will beat
railroads -in speed,11- and they
will probably
-capture sdnte of the
railroads' - lighter,- luxury .goods
the
railroads' competitors will be able
to attract will not, in
my opinion,
be enough either to justify their
sand
a
in
times
Exceptions, of
in
not
are
water.
which
priceless
and ' experience
in
in
box
poultry
coupled together to make
provement, and in capitalizing on
lesson
oil
These
count.
long and
productive, interest in scientific
research, - in
technological. im¬
every
goods
sembled in
every move
of
they
by ice-, snow, fog ind
weather disturbances. The cargo
that I have overlooked.
with less;
story today, is con¬
cerned, should be obvious:
Could
dependability,
economy.? "efficiency—and
and
This great record
business —when j
grounded
rack cars, fruit in refrigerator
cars—and perhaps a few others
out of every
more use
of expense
railroad
"behind
It
handled,
techno¬
.
the
scenes."
tonnage
a,
more
wide-door
in
merchandise
cars,
throughout the rail¬
many
The passertger airplane will un¬
questionably cut deeply into the
railroads'
long - haul ^ passenger
on
equal
learned
in
cement
cars,
' ?>
.:.
of
chickens
cars,
in
The railroads do not produce a
so
in
I
The contact of the pub¬
nowerfnl
spent
you
can
the railroad field is'unfortunately
limited.
You see, it's this way:
spite of the steady growth of re¬
was
Nor
technological
strictive regulation.
It
improvement,
skeptical.
blame you if you are.
My state¬
is strong—but nevertheless
logical
reason
readiness
be
ment
country
of war ever touch
again.
It was then
that the railroads began enlisting
v
I would not have you conclude
that I underestimate the keenness
of the competition that the rail¬
roads will face after the war. 1
control.
canned
topi and facility and car and loco¬
motive; how to make every dollar
a
from
tition
sight, of
railroads
'
/
.
different location and
kinds
invents a
form of transport that can
top the
railroads for economy AND match
them in dependability.
post-war future., lightweight
may
they will al¬
as
someone
storms, road blocks, highway con¬
gestion and a host of other diffi¬
cars,
railroads and those
tioned.
the
mean
conceivably have been
a
automobiles
From the gruelling
of our war job, the
who man them
field.
way
Sept. 30,
than
that
on
importance
the planned diffusion of
Perhaps
face of this record of accomplish¬
ment, of devotion to duty, of fore¬
Another is to be found in
carried
been
the';country's finest technical
.schools.''
divi¬
/
$418,558
1943.
suc¬
railroad
re¬
organizations; by the rail¬
supply industry,, and by some
flag.
the fact
railroads
just
do until
dola cars, vegetables in ventilated
box
cars,
cattle in' stock
cars,
the result
are
by the individual rail¬
roads;
by
the
Association,, of
American Railroads and its prede¬
the
of
of
inherent
done—and
ways
freight—coal in
open-top hopper cars, heavy ma¬
chinery on flat cars, pipe in gon¬
years
people
to get the job done, whatever that
job may be—I have already men¬
determination
these
different time and with dif¬
a
ferent
rail¬
of
art
things
intensive
of
way
$327,973
earned
dends,
ridicule.
the winning
loaded at
at
roading.
y of
ended
months
available
faith;
There
what
train; for instance,
could
cars
signals,
other
of
The Wisconsin Power & Light
Co.
contribution toward
"
of
A freight
cessor
preciation for the railroads' great
v
mass
in terms of their
and
automatic
: teletype;
-
pointed manager of the Milwau¬
kee plant of Joseph T. Ryerson
& Son, Inc., succeeding the late
George W. Smith.
Mr. Kurfess
has many years of experience in
engineering,
metallurgical
and
supply problems of-'metal-work¬
ing ' industries.
'dj::V..
'
' v
(Continued from page 2598)
war.
Think
•;;> machines, cab signals and
how to
of this
consumption
exist in this country. • '
.;
nor
centralized traffic control,
have,
officers
production
station, opera¬
and
been
lesson—how to do
higher
is, in: turn; true. mass transporta¬
tion, without which neither mass
be
block
-
•
.
when the
draft
characteristics
have
that
'
many * Carrying '- units,
together, to 'TPack" behind one locomotive.''-The result
tionized by new developments.;
Road,
is
switches,
pre¬
$4,150,183.
was
train- possible;
-
can
tions
it
rail • that
a
speeded, by such improvements as
composed of any number, of a
elabo¬ variety of cars,-from 50 to 150 or
rate interlocking plants, remotemore, depending upon the needs
control ; car
retarders/ spring of :the day.. Each one of these
i, 1943.
The
-
their
For
on
with
'
subsidiary;
per
tracks,
the
improved; : Signal arid communi¬
cation systems. have been revolu¬
...
cents
8
and
-
rail.
coupled
gear, their braking - systems,- their
design—rhas- i been - immeasurably
'
of
was
as
an
tion of $500,000 for contingent
losses on its investment
in a
transportation
wheels
steel
a
distributed July 1, last, and
Dec, 22, 1943, which compares
charges •„ and
appropria¬
all
including
"
paid Dec. 15 on the
capital stock of the Wisconsin
Investment Co., the same rate
net increase of $4,-
a
after
056,803
taxes,
ended
months
"
dividend
share
t'langect
a
enables f
trains
on
the flanged1 wheel
operation. ^-TSvery detail- of oiir
freight and passenger cars—their
The Nekoosa-Edwards Paper Co.,; Port Edwards, Wis;, earned
$392,451 after all charges and ilhxes,. equivalent to $6.23 per share
on the 63,000 capital shares Outstanding for the nine months
ended.
Sept. 30, 1944. This compares with $378,712 reported for the first
nine months of 1943, or $6.01 a share on the same number of shares.
the. stream¬
or
lined Diesel, but rather
heavier
'
Chicago: State 0933
PHONES—-Daly 5392
.
a railroad is not,
believe, the dramatic
as many may,
way
by the use of new road¬
machines.
Steam locomow
and weather.
season
The symbol of
.
tained
225
de¬
smooth, privately"way" that is
a'
over
the
and
economy
owned and operated
Track is better main¬
treatment.
the
power
been
improved
and
their life lengthened by cheniical
Weyenberg Shoe
be distributed for loading and
can
comparable
Hamilton Mfg. Co. Part.
Com.
unloading anywhere and anytime,
every
Com.
Central Elec, & Gas Pfd.
Nekoosa-Edwards Paper
matter of fact, almost
cog in the railroad's trans¬
portation machine has undergone
improvement in: re¬
cent years.
Rail is infinitely bet¬
Consol. Water Power & Paper
Koehring Co. V.T.C.
they alone combine the flexibility
of separate carrying
units that
recent
.■
But,
Central
Paper
of
years.
CONTINUOUS INTEREST IN;
Thursday, December 14, 1944
land.
who
proudW
coil
ourselves
roaders—and,
our
great
We know this—those of
us
rail¬
knowing it. we, in
post-war planning, will ever
refuse to sell America short!
.^iftW^W'j'ftt'ftvii'W'fHlilfituW'i'i'H^V'HV tW&WfijU .W*W-fiWWl WfMW*!
Volume 160
tow ^witivw^w W*4MIiiiinwwrt»Wrtto^ mwfvsswwn.in j*« im* «JV»'AWi*Hji.«
,
Number 4342
»i4J<u*#u<(**»w
*iiHijfc,uuJA<i fww«t »M*IW
»V<!WM!^-M£WWJ )1«M iWI >MW>'hA>il1C(4.1U &• !Ss,k}'f)wl.'
iWfiM'M flf!
THE COMMERCIAL & FINANCIAL CHRONICLE
#%%
%MM
MM
?>A\m
coal
ONSERV1NG
is going
"must" for everybody
to be
a
.
this winter.
This isn't because less coal is being mined.
,4
coal Will be mined this; year
shortage of
And
manpower,
trucks and
patient with him.
conserve
supply,
than
go
One of the
.
coal
at least 10% further—and
its routes, so
stand the
mine
are
^inen.
a
adequate
^l;'|acilitieS for bringing
But certain
city.
.
grades and sizes of coal are
production. And, in addi¬
needed for
tion;
i
/
war
local dealer is suffering from
your
iff.'*-
jgnrnrf
Jr:'
and
in
on
your
problem, and to know Jjow
i;
■
¥
.^-iT
days. 1
"
'
A'
t'il
•
'''jOi„>{it"->
fuel bill —by
heating system is clean
good repair. Close off unused
Pull your
shades and drapes
night. If
you can,
insulate. For other
suggestions
see your
coal dealer.
bedrooms.
at
:
position to under¬
number of simple precautions.
See that your
-
a
CHESAPEAKE
AND
NICKEL
PERE
OHIO
PLATE
RAILWAY
ROAD
MARQUETTE RAILWAY
V,J 'iU
-
t
prfh^'
!.;'.
a
we're in
.
that much
taking
ownefs'hh|d ri^iners' alilie! And there
the coal to your
r.)?.
save
feat by
coal from the mines along
essential coal is these
,
last—with
biggest jobs of the C&O
Lines is hauling
the coal he is able to
deliver to you. You can make your
It is estimated that 29 millions more
tons cf
a
tires. So be
•
;
**>:
!''
ao.rro
ef ta?,t
rhh jp.
!f{f
'it
2606
: Thursday, Eecembei' 14,-1944
'
THE COMMERCIAL & EINANCIAIi -CHRQlWCEE
-
//
w
an
Insurance & Bank Stocks
ANALYZED
EE VIEWED
-
personal
efficiency.
to 5 p. m. (P. C. T.)
a. m.
between
*
CALIFORNIA
West 7th St., Los Angeles
WIRES
PRIVATE
Chicago
New York
TELETYPE
A.
SeatUo
Sa* Francisco
•
•
L. A. 28ft
"
h.
;
279
and
dustrial
Bank and Insurance Stocks
rights,
.
grown
3
hand.; Industry
production
has
and * expanded, throughout
on
every:,
49
;
,
Smilhfield, Ei C I
Charing Cross, S. W. 1,
the nation because under our free
Bmlington Gardens, W. f
:,y MNw BmdStrttCw* /
;
in business enter-
prises. ...As a result bur productive
managerial; enterprise system has well ; been
TOTAL ASSETS
.
,
or
Scotland
Bisbopsgate, E, C, 2
8 West
*
enterprise system men of means
assume, risks through the invest¬
ment: of capital
throughout
LONDON OFFICES:
evidence; of the exercise of these
and,; industrial
OFFICE—-Edinburgli
Rratuhes
free, enterprise system. ;We behold
cooperation'
technical, scientific
HEAD
■
flow; out of and emanate from our
and
and
goodwill
between
management
and labor is the simple rule which
should be followed. in order to
achieve this purpose. It would be
very difficult for me, or any'; one
else who never served as an; in^
BUTLER-HUFF & CO.
OF
and
of industry ;
owners:
workers
zti
respected, guaranteed andt pro¬
collective tected.. These fundamental rights
Confidence and mutual respect
Orders solicited.
Inquiries invited.
Incorporated by Royal Charter .1727
minimum and
a
increase
Brokers
Special Bulletin and Booklet Service to Dealers &
Trading daily 7
dustrial strife to
COMPARED
j>
Royal Bank of Scotland
(Continued from page 2594)
Boughti—Sold-—'Quoted
s
classified as the; arsenal of 'democ¬
plan which should
called upon to serve in such; an racy.'; Our free; enterprise system
important position:
It ymuld be has foeerii subjected to severe tests
As a re¬
presumptuous on my pari to un¬ and exacting! demands:
dertake to pose as an expert on sult-many, facts have been estab¬
scientific industrial management; lished and the judgment of those
and
Only those who possess the basic who! initiated,; formulated
qualifications of
an
industrial launched our free enterprise sys¬
-J eiiikw
,
This Week—Bank Stocks
i
V
By £.- A. VAN DELSEN
.
It is
\
matter of general knowledge that the expansion of bank
a
deposits in recent years has far outstripped the expansion of capital
funds, and that, in consequence, the ratio of deposits to capital funds
is at a record high,
In view of the fact, however, that some 70% of
bank earning assets today are represented by Government securities*
this
ratio
high ratio is not serious and certainly the old rule-of-thumb
of 10 to 1 no longer holds.^;
tem, has been thoroughly vindi¬
cated; As I interpret it; it means
derstanding of industrial produc¬ that the, owners and management
tion problems can speak with au¬ of industry shall be free to invest,
thority regarding them.
In dis-; risk and manage property and la¬
cussing the question, "If I .were bor shall be free to organize, to
act collectively and speak collec¬
an industrial manager," I wish to
avoid the common mistake made tively:, It all means free industry
We have proven
by so many well meaning people arid; free Tabor.
who, though void of experience in this war that we can out-pro¬
duce Government-owned industry
and training, undertake to tell
those who are trained and expert and slave labor with free industry
in their life work* how to conduct and free Tabor.
In my opinion industrial man¬
themselves and how to manage
their affairs and their business. it - agement - can
contribute
very
Rut because the human element largely to the preservation of our
free enterp rise, system through an
plays such a large part r in - the
whole field of industrial produc¬ extension of the recognition of the
tion I am of the opmion jthat a rights of labor arid management.
and who through experi¬
manager
ence
' Assoelated Banks:; •.'.
■
,
Williams: Deacon's Bank, Ltd.
€iy« Mill*
Australia and New Zealand
and training acquire an ^un¬
BANFof
NEW SOUTH WALES
,
from
Nevertheless,
post-war
a
point of view, it seems desirable
commercial
the
for
banks
Bank and
to
their capital position
by all practicable means, in order
to be ready to meet the inevitable
strengthen
with the restoration of
come
Under,
peace.
there
Stocks
that
loans
business
for
demand
will
Insurance
will be
conditions
such
Inquiries invited in all
in
Unlisted Issues
increase
an
the
holdings of assets that will lack
the
Laird, Bissell & Meeds
practically "riskless" quality
that
Government
characterizes
securities.
'
120
Exchange
Telephone: BArclay 7-3500
Bell
The trend of
York Stock
BROADWAY, NEW YORK 5, N. Y
: '■
^
New
Members
;
deposits and capi¬
tal funds and the resultant ratio,
during the
past
15
of
group
•
12
for
years,
leading
a
New York
City commercial banks, is
lows:
•
■
-
'
■
'•
'
fol¬
*'
as
•
Capital, Surplus
Date—
Ratio
Deposits'
$1,376,141,060
$7,324,703,000
5.32
1,357,126,000
9,408,039,000
6.93
1,377,854,000
10,750,659,000
7.80
1,408,134,000
11,655,342,000
8.28
1,434,355,000
10,647,147,000
7.42
12-31-1934
12-31-1935____!
—J
12-31-1936
—
12-31-1937
_
12-31-1938—
—L
8.04
1,440,059,000
—
12-31-1941
-i
11,583,995,000
1,448,214,000
12-31-1939
12-31-1940
14,215,285,000
9.82
1,473,465,000
17,348,843,000
11.77
-
—....
12-31-1943..
9-30-1944
.......
17,465,365,000
11.57
1,538,833,000
20,856,613,000
13.55
1,643,828,000
.—__
12-31-1942——.
21,877^623,000
13.31
1,695,473,000
22,542,425,000
13.30
1,509,864,000
It will be observed in 1933 that
.
fect the 0th War Loan Drive will
for every
$1 of capital funds there have had on this ratio.
were $5,32 ol! deposits, while nine
From Dee; 31, 1933 to Sept 30,
years later, in 1942, there were
1944, capital funds increased by
$13.55 of deposits per $1 of capi¬ $319,332,000 or 23.2% and deposits
tal funds, an increase of approxi- by $15,217,722,000 or, 208%.
"As, regards the ratios of indi¬
mately 150%. Since 1942 the ra¬
tio has fractionally declined to vidual/ banks, compared with the
13.30 on Sept. 30, 1944. It will be
; aggregate ratio of the group,: there
interesting to check again at the is great divergency, as the follow¬
end of 1944 and observe what ef¬
ing tabulation "shows:
Ratio of
,
Deposits
Government Securities,
to Capital Funds
% of Total Assets
.12-31-1936
of
Bank
Bankers
Central
Chase
12-31-1936
19.6;
-14.1'/i
York^...______
.9.6
Hanover
National
National
;
55.2
14.4
"
36.0
15.3
30.4
55.7
14.2
21.1
53.0
16.6
36.5
67.6
7.9
36.3
4.5
28.3
62.8
10.8
30.9
59.2
7.5
_
18.6
31.9
58.4
•
12.8-
16.0
93
13.6
,10,7
-
18.1
-
—
National
72.0
9.9
5.4
-
Trust
City
Trust
6.5
_
...
"
60.0
8,0
..
-
York
Public
61.4
10.1
Trust-
National
Manufacturers
28.6
41.6
.
10.1
&
Guaranty Trust
Irving Trust
14.7.
10.0
Exchange
First
50.5%
■
12.1
9.6
Corn
9-30-1944
'
Trust
Chemical Bank
Ne\y
9-30rl944
11.2
Manhattan...
of New
Bank
27.7
56.5 "
38.4
14.8
56.9'
.
.
56.8
'
United States
Average
The
increase
-
."■2.5-
-
...—
forded by
the
Trust.l.^—„
in
leverage
af¬
this situation explains
upward trend in bank earn¬
ings which have been cited in this
column from time to time, despite
13.&'"
3.9
8.5
13.7
■28.7V.. ;
58.1
'
58.9'
,
banks;.
Very} few Wall Street banks have
recently eliminated
Municipal Bonds
Bank Stocks
year-end
its
10
cents
extra, but changed the
quarterly rate from 20 to 25 cents,
which action results in annual
.
dividends of $1 instead of 90 cents.
Irving-
Trust,
within'
the
past
week, declared,
thus
J. S. Rippel & Co.
share.
Established 1891
18 Clinton St.; Newark 2, N.
have
J.
MArket 3-3430
N. Y. Phone—REctor 2-4383
an extra 10
cents,
increasing annual disburse¬
from; 60 to- 70 cents per
ments
to
Bankers
Trust, and Public
announced
_pay
stock
their
intention
dividends,
while
maintaining the current cash rate
per share.:
To the extent such
stock1 dividends
represent
'
Sept.,
1943
Near
Zealand:
in the perform¬
Pacific
and
Islands,
.
LONDON OFFICES:
Thread nee die Street,
29
E. C.
Berkeley Square, .W.-1
; 47:
.
Ageney aeraagemeute with Banks
♦hreugheitt the 11. -8. A.
^„
6how that the preservation of our
tasks to deal
relationship in free'; enterprise ^ systeih * Ndepehds
very'-largely, if;; not: altogether,
industrial problems.
V -r ' "
upon a broad rhcognxiion: and: re¬
It is my opinion that those who
spect; for the rights of capital and
serve
in a managerial, capacity
^bbr—management;land workers.
should develop a deep conscious¬
The. organization of capital into
ness of responsibility.
Responsi¬
cdrppratidns and into business en¬
bility to employers, stockholders
terprises has grown and expanded.
and employees, a fair and just
The right to do so has been pub*
profit for the owners of-indust]^;,
ifely^reeognized subject; only to
and the payment1 of the - highest
Jhelei^'re^
for',
wage which the; industry could af^
the* protection of the public inter-r
ford, should be; questions; of prbr;
.est."' ' The organization of capital
mary. importance. ,1
;
•< -■ ■ ;
^y:; into corpprations represents. the
Experience bias '; shcwh'r thatfa^
complete respect for the rights bf properties!",;The organization" of
the
London, it offers the most' complete and '
efficient
banking' service
to
investors,
traders and travellers interssted in these
countries. ;
•
'
-
the right
and bargain
inseparably asso¬
our
free enterprise
The
K.B.E.,
George Street, SYDNEY
The Bank of New South Wales Is the oldest
and largest bank in Australasia., With over
800 branches in all States of Australia, in
lessons, we have
learned;. during the; war period
system,
..-^187,413,782
QeneralManager
Head Office:
are
with
30th
Asset*
SIR ALFRED DAVIDSON,
of labor to organize
ciated
£23,710,000
t
A*greff*te
and manage property and
collectively:
780,000
Reserve Fund •
•—i-- 6,150,000
Reserve Liability o! Prep.„; 8,780,000
of their daily
ance
the
with
human
.NATIONAL BANK
;
of EGYPT
'-He*«I..""blficeri- Cairo'
Commercial Register No.
FULLY PAID CAPITAL
RESERVE. FUND
:
.
.
;*'
-
■
t. Cairo
.
£3,000,000
'.
£3,000,000
'*
■
6 and 7
LONDON AGENCYr'
'
■
•
King William Street, E. C.
:
_
BranchaLtn.
all tha^.
■
•
''T$m*. ht't;
'EGYPT
- ■
and theSUDAN
both
management ind.^labbri:';';iis--: labor, which; has paralleled .the
fundamental and necessary. Tiach formation of corporations," repre¬
moral and legal rights
be
religiously; re¬
spected—the right of management
possesses
sents" the ^ mobilization
should
that
of labor's
strength and; collective
power; "Unfortunately some own-,
to,; administer and manage, prop¬ ers^ of ^industry in days ;gone by,;
erty should be respected,; guaran% who; exercised/the right, to pool
feed and protected and the* right Their r financial interests/ ; chalof labor to organize mta unions of
lehged !ahd/opposed the' exercise
economic
NATIONAL BANK
of INDIALIMITED
their
^Tnthevright of' lafooar; to organize
the only; assetst which it possessed.
fers Trom, ■ unalloca ted reserves,/ Bursuitv^:ofcthis;r unwise policy*; om
capital funds, as reported >in/the the part/of some industrial: Tnanstatements
of
condition, '< are agers and some corporations:was -a
strengthened, while at the*same short-sightedand.mistaken policy.
time
the
stockholder's., pockety Labo/ was, compelled to,fight
book'also benefits.
y-^ y; sacriiice and suffer in order to
It is of interest to. note the wide exercise the simple right' which
coverage of dividends by^the; T5 corporations, and men of; money,
banks under "review during" the. enjoyed under-our free enterprise
past six years. The earnings con-v system;
The success of industry,
•
Banker*:
'
'
*
:
the Government in
to
'
v
;.r Kenya Colony .and Uganda % ,]
Head^pfficer 26,^ Bisbopsgate,
;
.London, Ei' C.
..
;•
Bra nches. in -India, - Burma,-
CeylonKenya
"Colony and Aden; and Zanwbar'
"
.Subscribed
Capital____£4,000,000
Paid-Up ;Capital_';_'_2i£2,000,000; ;
Reserve Fund_l_„_i.«l£2;200,000
1
.The
-
j "•"*
*•.
,
Bank conducte" every'.-destripfcion:' of'
banking and*exchange business
-
Trusteeships:' and Executorships
;
also undertaken
.
.
,
.»
,
thedevelopment./of /'maximum
.
Total Earninais
Dividends
$109,069,000
.118,268,000
Year-
tive dividend policy of the
Manhattam^it will " be recollected,
Jersey
" quite
increased. operating
costs
and
sidered. comprise
net. operating
higher taxation.,, On the other
earnings, security profits • and re-/
hand; this mounting ratio also ex¬
coveries.
■
.7
^
plains the. consistently conserva¬
increased their dividend rates dur¬
ing the past few years.
Bank, of
New
can
(ESTABLISHED 1S17)
Paid-Up Capital
The! right of management to own
properly consider and discuss^ the
question, "If I were an industrial
manager." Both management and
the representatives of labor are
called upon in the discharge of,
their duties and
and Undivided Profits.
12-31-1933—
19432
representative of labor
Teletype-—NY 1-124S-49
(L, A. Gifobs, Manager Trading Department)
* Co.
$66,450,000
1938--U
1939-^.-
1940_„-i
■
65,850.000
125,472,000
65,850,000
125,639,000
/ 65,250,000
106,674,000
production and' the highest degree
of r; efficiency , depends upon : the
exercise of the right, of labor to
organize and bargain- collectively
and-the ; right of management to
61,150,000
'
own
.
6i;4l2,000
139,719,000
and manage property,
"
Experience during. the war. has
formation of la¬
shown That the
ductive of most beneficial results
It
has
been
shown. that .all
at¬
tempts.. on the part of managemenl
to exploit labor or labor to exploil
management, where labor-managerhent "comnoittees have been sel
up/
'h^ve been discredited.
,
It has
served ;
to promote- a better and
more cooperative human relation¬
ship Tn industry.«
;
$724,841,000
$385,962,000 bor-management committees. has i^fln the formation of labor-man¬
contributed toward the success of agement
committee^, however, the
Over the period, aggregate divi¬
industrial /, production.
Through line of distinction between the ex¬
dend
Total-
disbursements
covered *1.88
from all
times
been
earnings
In other words,
sources.
after
have
by
paying
out
dividends
amounting to $385,962,000, there
were
and
,
ploughed back into surplus
reserves $338,879,000,
a sum
equal to 88% of dividends.
the
banks
hav?
Thus
been
placing
strong position to
play their part in post-war recon¬
themselves in
trans- struction.
a
i
the exercise of cooperation of this, ercise' of the*
rights of labor and
kind labor, has contributed in a of management must be
scrupu¬
very .large degree; to the success
lously observed.
The philosophy
of: management.
Suggestions and
have,, been freely, given.
Valuable ideas which, management
.advice
which
labor
some
should
accepted.
production
and
'
on j
the
problems
of j
been pro-
thai
manage¬
could; hot' arfcahnot be
•
It; is
-
contradictory ol
American traditions and'
the = part -of labor: enterprise/systemr.
management has
advanced
join with
ment in the actual management oi
found to be of great value have property,
been offered by Tabor committees,..
Discussions, of
have
■
Frankness
'11
should
y
our
»v "
prevail
free
>
be-<
Number. 4342.
Sftj^WVolwtne'f 160;
2607
THE! COMMERCIAL & FINANCIAL CHRONICLE
;
■r
*)Ws#P':=&£-.•
v•'vtween! employers and-employees.
•: Labor works
and produces while
'•
employer owns and operates in4
'A
dustry. Why should management
withhold any information what-
•
,
:
•
those
from
ever
who
r
I
who work and serve?
f
opinion that the
produce—
am of the
of indus-
owners
(j try and industrial managers should
.
labor
,take
•
confidence
their
into
and acquaint them with the earn-
•'.Vings,of industry; the financial suc-
-
;
>Jvcess or failure of '.industry, plans
-
,Jj. both for the present and for the
It would be far better for
future.
v
i
.
| labor to learn of all of this from
to
than
rather
management
•r
be
told about it by outside agencies,
ij •
Experience has shown that high
Jjl wages serve to increase individual
'j
production
crease
that
v
the
share fully
should
labor
the part of
on
The simple principle
the workers.
•
be
efficiency and in¬
collective
and
•
Furthermore it
ligiously applied."
has been shown and-clearly dem-
J
high
in
that
onstrated
i
-wages
to reduce pro¬
I am of the opinion
1
to
America
that
a
instances
many
serve
duction costs.
b
go
never
can
nomic
the
K
tional
«
our
necessity for
national
and
of
maintenance
high
a
order
in
income
back
The eco¬
low wage standard.
i
to
na-
meet
social and national obligations
of maintain¬
and for the purpose
ing equilibrium between production and consuming power, all call
•
*
mainte-
-,1'or the establishment and
a
high and still higher
level.
The establishment of
of
nance
wage
humane conditions of employment
*
.
in
earnings of industry ought to
constantly recognized and re-
and the promotion of social secur-
:
.
ity
•
sound means and methods
be recognized and
are
should
which
•
supported by industrial manage;:
V: ment.
.
.
Hn addition, it is my
* i
:
opinion that
industrial
it is the solemn duty of
»
management
maintain a consettlement
to
ciliatory attitude in the
•
adjustment of industrial diswhich arise from time to
time. The avoidance of a superior
; : and
ive
putes
•
7 or
dictatorial attitude should charof a success-
He, along
with the representatives
J
%
of labor,
should diligently seek a
•
basis of
to
accommodation when industrial
I' disputes arise and through the ex•; ercise of
patience, good judgment
1
l|
Through collective
to
investing in
find a solution for
industrial problem^.
vexing
is your
help win
j and tolerance,
>
Bonds
»
■
the American Federation.;of Labor
as well as the owners and man-
•
agement of industry
this
s
where collec-
relationships have
f been established, have set uparbir
i!;
in the event
direct negotia-
^Success.
Vindustries
.■!" interruption in.industrial product tion has been totally avoided betions.-
,
Thus
-7,. cause of
in
many
local strikes for any cause
Through pursuit of
wear six
human relations in
"it industry. ' ; "r;
;'!• | 7In this jshort message I--hay eeifdeavored to present to you a par*tial answer-to the question under
discussion.
L1
.
•
am
tunitv
:
tribution
!1 garding
:
the
lationship
Jf/ftiJ.
•
'
■->
most
successful of all homefront
war.
-ii
tr
'1
iKrn-y-.- y
You
only being asked to
:are
management
and labor.
make the
major
in this
buying
i:
cooperative-; re-
between
to
.
establishment s and
maintenance of a
'
necessary
'■
■
make some slight con¬
to sound thinking re-
to
do the bond
ThenjdociSelhow^
pleased to be with you, to
be your guest and to enjoy your
hospitality. I welcome this opporI
s
r
who
men
stars tor six
engagements
'
*
Think of I the
i4
'v\ such a policy our trade unions and
'V' management have made a great
}<; contribution, toward the establishment of sound
we must
} '
7 whatsoever.
•'
are
said disputes cannot
be settled through
■
boys
doing the fighting—at home
tration tribunals to which disputes
are
referred for final settlement
'
;
,
Your
war.
of
tive bargaining
;
■
in the sixth
home-front engagement
?'
•
;
take part
opportunity
bargaining and
•; through a
frank, open and free
'■•Ij discussion during wage negotiations, many unions affiliated with
7 *
will buy in this
Sixth War Loan.
Government has asked you
ii acterize the conduct
7 ful industrial manager.
bonds you
times in
o-foraj '
give;
df5.:
your money
not even
in this crucial winter of 1944.
Thomson & McKinnon' to ?
.
Admit Fuller of
Thomson
Duluth
11 Wall
& McKinnon,
Street, New York City, members
of the New York Stock Exchange
and other leading national
ex~
■
CHASE
THE
NATIONAL
BANK
'
will admit Charles E.
Fuller,. Jr., of Duluth, Minn., to
;partnership,, in the firm as of Jan.
changes,
"
■
1,
a
J
O
J'jfKt
<y
!j
THE
OF
C I T Y
O F
Jib
'
-)
If J|s
i
1;
.
NEW
Y O R K
:D sr f
-
,i
.j
i
11»
n";;
»
>
5
/
.
't.
'
t" (
J
•
j-
2608
THE COMMERCIAL & FINANCIAL CHRONICLE
dustry
Mutual Funds
annual forums
The downward trend in
and
trusts
size
average
advantages
handling
of
and
fewer
standardized
a
Steel Shares
discussion
of
this
on
problem
same
are
of
which
wealth
November
cle
of
in
of
DISTRIBUTORS
the
"Trusts
and
appeared
issue
from
be
NEW YORK 5, N.
•
Y '
Here, too, the
Shares.
the
offered includes
solution
the stock portion
of such estates.
These educational and
vidual
by
are
sponsors
general
indi¬
valuable
activies
promotional
use
shares in
of investment company
contributions to the welfare and
better understanding
to
curs
oc¬
primarily
responsibility of the National
general activities
the
It
that such
however,
us,
are
Association of Investment Com¬
Why should
panies,
few in¬
a
dividual sponsors find it neces¬
to bear the costs of "pub¬
sary
relations"
lic
industry?
unsound
can
the
this
us
it
entire
as
seems
unfair.
is
individual
few
a
for
To
as
How
sponsors
justify such costs to themselves
without
understandably
activities
these
of their
tirely
a
bias
from
aside
better
favor
And,
this
isn't it reasonable that
and
giving
in
shares?
own
angle,
bigger
a
relations"
"public
National Association with every¬
sharing the costs?
Getting Bigger
With
the
.
.
investment
,
of net assets
million
of the year.
company
year.
y;
v
,
7-;;,7:
We
a
pleased to acknowledge
are
President of Wellington Fund,
which bears out
the old < adage
gan,
highs almost daily. In the latter
part of November total net assets
exceeded $15 million
time and November
the largest in
for the first
sales
were
the Fund's history—
greater than for the highest
33%
"Sales
Long
&
the railroad
of
equip¬
years
after the
sales
volumes
"It is
of
.
will exceed
war
of
the
of
any
of the
years
pre-war
1
.
.
opinion that prices
our
of
shares
railroad
many
equipment companies do not re¬
issue
of
in its
Railroad
cur¬
News,
fol¬
as
lows:
be obtained
investment dealer
from the distributor.
•
dividend stocks where the sole in¬
PJiila. 7, Pa.
centive
is
the
of
chance
price
advancement."
In
its
News,
current
this
of
issue
same
Steel
quotes
sponsor
following from Moody's Stock
Survey of Dec. 11:
"We
are
anticipating
high
a
level of steel activity in the early
post-war
years.
environment
Keystone
.
we
.
.
In
such
believe. the
Custodian1, Ftlnds
an
in-
■
7
•
65
SecurUies Series
-
in Bonds
^
Prospectuses
in Preferred Stocks
I
Series
S-l, 2, 3, 4
in
Common Stocks
your
local
may
be obtained from
investment dealer
Research
The Keystone Corp.
se CONGRESS
of
Boston
STREET, BOSTON,
LOS
or
upon
request
National Securities &
120
Prospectus
last
the
low of under
a
September to above 80 at
time.
present
Securities & Research
Corp.—Current Information folder
for December and
randum
portfolio
memo¬
showing changes in No¬
on
national - sponsored
vember
Abbett—Com¬
funds.
A.
posite
cember
Summary folder for De¬
-on.- the'
Lord,
Abbett
group
of
.
of Keynotes
estate
for
companies.
investment
is¬
Keystone Corp.—Current
.
sue
Lord,
.
steps to, reduce
on
taxes; Current Data folder
on
Keystone-Cus¬
December
revised
Funds;
todian
general
Keystone Custodian
1, 1944 and re¬
vised Supplemental prospectuses on
Funds B-2, B-3, B-4, K-l, K-2, g-1,
prospectus
on
Funds dated Dec.
Distributors
Group—Current issues of Railroad
S-2, S-3 and S-4.
.
,
.
Railroad
and
Equipment
News; current portfolio fplders on
Railroad (Bond) Shares, General
Shares
Bond
and
Priced
Low
Shares; special month-end compa¬
as of Nov. 30, 1944. . . .
rison card
Selected
Shares—Cur¬
American
.7. Calvin Bullock—Current issue
Bulletin.
of the
Fund
nam
—
.
George Put¬
.
.
December
review.
portfolio
7
....
.
Dividends
"t
r
•
.
Second
Massachusetts Investors
Fund—A dividend of 140
payable
Dec.
23,
1944
share
a
stock¬
to
holders of record Dec. 11.
,
Wellington
year-end
Fund
dividend
payable
—
Dec.
570
28,
of record Dec.
Directors
per
1944
to
15.
of
Corporation
BROADWAY,
ANGELES,
634
NEW
YORK,
funda¬
the
nation
steel
picture.
so also does
-No large in¬
substantial
prospers,
industry.
in
—
fact,
no
segment of
,
complaint.
public
interest.
mental
attitude
not be the same when the reverse
step
Once the require¬
taken?
is
ments for
war
are
time in the past when the
people as a whole has
American
been in
a
better condition- to face
a
temporary reduction in produc¬
tion
and employment.
Incomes
throughout the nation have been
high. Money savings are at a peak
level.
,
Anyreduction
during
in
unless
whole is not pros¬
a
have
liance
the
upon
These
the
freedom
lar
which
factors
but
the
influencing
dominant
the
broad
future outlook of business in gen¬
eral
be
We
appraised
will
greater
a
favorable.
as
the
to
come
with
war
factors
the
of
end
of
number
skilled workers than America has
before
ever
Our
possessed.
war¬
time needs have served to stimu¬
late invention and progress in
Our
of
commercial
and
capacity for the
basic
production
materials
raw
the
arts.
has
been
greatly expanded.
This is true of
steel, aluminum and other metals.
It is also true of plastics, syn¬
thetic
rubber,
articles. - We
with
and
look
can
to
assurance
supply of most of/the
forward
adequate
an
enduring
Our
industrial
unexcelled
mate¬
raw
rials out of which to build
long
a
organization.
standard
liv¬
of
ing has been America's pride in
the past.
Its constant improve¬
should be-our aspiration in
ment
the. future.,.:. *"•Am!7
Reports from all sides indicate
a
substantial pent-up demand for
goods
of
which
will
In
war.
needed
be
another
or
after
the
particular, demands for
products have
consumer
lated,
kind
one
accumu¬
The public wants in large
numbers
automobiles,
prospects
farm
ma¬
the
for such
pur¬
war¬
time
to
pay
,
been
has
construction,
at
a
careful
a
factors,
which
favorable.
of
These
the
highest
I have in mind sub¬
regulation,
maintenance
decen¬
There
is
night for
of these
I
have
■
77•'7-'"7'-
insufficient
to
me
to
say
f
'■
time
discuss any
on
one
What
few subjects
a
explore for
maintenance
No
a
5:
;
moment the
"full
of
one
..
..
to¬
in brief outline.
us
ment."
'
t
■
problems in full.
must be
Let
"full r. employ¬
of
ment." ':7\77.
employ¬
define to the
can
complete satisfaction of all what
is meant by the term "full em¬
ployment." The concept is prob¬
ably a level of employment some¬
where between maximum produc¬
tion involving substantial over¬
time, and
situation where
a
con¬
siderable numbers of people, able
and
willing to work,
looking
are
for
jobs but having considerable
difficulty in finding them.
rests
Building, except for
so
matters
the
business
for
tralization of industry, disposal of
wartime
facilities, and, finally,
war's usurpation of needed labor
money
calls
other
Government
seem
the
people.
appraisal of
be
importance.
whose production ceased with the
chases..
enterprise have
jects often mentioned these days,
such as inflation, deflation, taxa¬
tion, labor policy, price control,
most
Our people have
from
our
of
embrace
flow
self-relance
American
war
not
may
chinery, 'refrigerators,
washing
machines/vacuum cleaners; furni¬
ture, and countless other items,
and,materials.
of
scrutiny
other
many
private
balanced
after
American peo¬
: and
systems of government
our
free
resourcefulness
qualities
indoctrinated in
A
A number of the present
may
and
applicable to all.
are
be
transition
is unduly bungled. Again
just cause to place re¬
process
ple.
problems,
should
the
-
and energy of the
as
production
reconversion
temporary,
Each industry from time
to time may have its own particu¬
"Full
employment" is
significant
and
puzzling
problem.
think
to
both
Some people
that
solution
its
solely within the control of
,
the American industrialist.
ing
a
most
a
could
truth.
be
further
Noth¬
from
the.,
It is equally a problem for
Government,
labor
and
every
virtual standstill for many months.
other segment of our society.
Experts have estimated that .10,000,000 low-cost residential units
this connection, it should be borne
in mind that before the
should
ufacturing
be
built
following
years
during
the
the
ten
Much
war.
equipment has become outworn
or
about
accounted
In
war man¬
only
for
total
number of those employed in this
one-quarter
of
the
country.
tation
Aside
from
transitory unem¬
ployment during the reconversion
replenishment.
Consid¬
erable demands for .this, and
will
be
lands
Funda¬
or
that
forthcomingjfrom various
overseas.
brief,
71
u«
on
De¬
cember 18, 1944.
(5)
"noney
to finance large-sc^je pro¬
duction and distribution,
We havs
Incorporated
Distributors
Street, New York 5, N, Y.
period, I
am
not fearful that
un¬
wide scale will
be;serious while we are busy re¬
employment
on a
plenishing supplies of peacetime
"aadqxtthati we were prevented,
producing during the war.
from
■savings <mt of whieh to make P^r-iv IHs>a£ter we have caught up with
ehases. Unquestionably there wi^j those' demands that the
problem
be a substantial demand for o,urf may become serious. That may-be
Here is
a
framework for
orosuerity in the post-war per'od.
once
the
of
task
reconversion
is
Many people
appear
to be fear¬
They
ore-
diet plant closings, widespread un¬
employment,
and
genera11^
otic b'^mess condition®.
cha¬
Difficul¬
ties of tb's nature may be encoun¬
tered, but I question whether it is
after
some-years
Then
ended.
and
age
guide
ful about reconversion.
HUGH W.LONG and COMPANY
.
country ,)ias the
ability to produce.
We &YP the
our,
accomplished.
National
the
our
,
the nation
perous.
the close of business
Wall
to
should
we
nroducts.
4C
vital
Why
our population — can
rightly expect to be prosperous, if
Investors, Inc., have
declared quarterly dividend
No. 44 of 54 cents per share "
payable on the Corporation's
capital stock December 23,
1944, to holders of record at
MASS.
or
because everyone rec¬
that such a conversion
ognized
As
S.
Spring St., (14)
BOSTON, 10 Post Office Square (9)
CHICAGO, 208 So. La Salle St. (4)
with¬
purposes
talk
outmoded, and wUl need rehabili¬
special
A
of
industrial
industrial
Fund Literature
mental
Series
K-l, 2
Holding Company Act.
of this stock from
The
follows:
Series
B-l, 2, 3 and 4
security
Fundamental Investors, Inc.
Certificates of Participation in
Trust Funds '
as
this
differ
not
pe¬
been
with all business in the
In
'
investing their capital
how
Lord,
Co.,
chart shows the market action
A
stock
;
relates
under the
share
>■>
different
analyzed and purchased for
the portfolio of Union Preferred
Stock Fund long before the pub¬
lic began to realize the real value
of l the stock
in • recapitalization
the
\y
Electric
do
has
The steel business is in¬
dustry
a
duringythe
victory
terwoven
profes¬
a
after
the
curities; (2) preferential attention, rent
issues
of
"These
Things
even
in speculative accounts, to
Seemed Important" and the memo¬
issues affording satisfactory cur¬
randum Selections- on "December
rent
income;- (3)
deferment of
Markets Are Usually Favorable."
large-scale speculation in 'non-
FUND
may
Building
&
Gas
News
Group,
quotes Standard & Poor's
Incorporated 1928
or
in
as
converted
was
war
much
was so
of any
American
'■
'
stresses
Abstracts
Taking
ard
measure
mentally from those of other in¬
1929."
;■
■
"sample" the
$7 prior preferred stock of Stand¬
.
ment industry in each of several
"WE ADVOCATE: (1) Substan¬
223 Real Estate Trust
of
sue
way.
National
tial representation in railroad se¬
your
*
Abbett
Lord,
j
Co. has
just
released a thoroughgoing, eightpage
study
on
"The
Railroad
Equipment Industry — Post-War
Sales
Volumes," complete with
charts and'significant figures. This
report reaches the conclusion that:
W.
large
dustries.
Abbott Labora¬
as
back prior to
Mutual
Rail Equips
on
Hugh
rent
through
tories did
previous month.
Report
My hopes for
in
rest
prospects and problems of
achieved
the
in
was
Distributors
Prospectus
included
are
future
a
Abbett
"nothing succeds like suc¬
Wellington Fund has con¬
tinued to out-perform the aver¬
ages and the net asset value of
the shares have been making new
Rails and Steels
INVESTMENT
much
cess."
flect these favorable prospects."
A MUTUAL
there
portfolio "a number of stocks of
other companies developing new
products through research and ex¬
periment that may have just as
that
decade.
WELLINGTON
is involved.
future
The
story
sional selection in the current is-
nice letter from Walter L. Mor¬
Securities, have just passed im¬
portant milestones. Combined net
assets of the Keystone Funds have
as
program cap-:
not be formulated in ignorance of
riod
of the
too
was
and
scope
A wise
complexity.
represented in the
point
out
gently to recognize its
progress.
the
industry
promptly for
This
portfolio of Industrial Stocks Se-.<
that
-
The first step in the sound solu¬
tion
of any problem is
intelli¬
the steel industry
v.:..'
■
Wellington Fund
peacetime
mark,
a
$3,850 at that time would
*
stone Custodian Funds and Group
crossed the $100 million
the first
at
Group Securities has
passed the $40 million mark, as
compared with approximately $18
million at the beginning of the
field
Expanding at a rate grati¬
fying to all concerned, v/e learn
that two of the. fastest growing
companies in the industry, Key¬
at
)
fully met, we
the willingness of thought¬ 'should go about, the business of
ful groups, such as this one, to getting back to a
peacetime basis
face realistically the difficulties just as
expeditiously and uncom¬
we
must surmount, if we are to
plainingly as is possible.
continue upward in our national
It would be difficult to conceive
$33,858.75.
en¬
job could be done through the
one
compared with approximately $67
of the in¬
vestment company field.
investment made
problems^ of the post¬
bility and perhaps in so doing ex¬
aggerate its importance..« Ameri^
can
upon
a
This stock is
is
vestments Co. in behalf of Selected
American
share
period in true perspective.
the
in
made
was
see
likely
what
Public offer¬
-
should
public
ries—but
63 WALL ST.
In¬
Selected
at
of
example
an
stock
1929
cost of
GROUP, Incorporated
reprinted
are
memorandum
Request
100
na¬
our
Excerpts: from this arti¬
in a current
Estates,"
on
as
common
price of $38.50
per share.
The present total value,
including cash dividends from a
developing out
redistribution
the
tional
Prospectus
smaller
to the
cost
estates
this
March
giving professional supervision
at'reasonable
of
ing
of
Resarch Corp.
growth situation.
a
Group Securities/ Inc.
cited
the
that
difficulties
important, how¬
war
.
Laboratories
is
in the solution of any
the
by experienced
emphasized by Na¬
is
Abbott
A Class of
constructive
highly
i
Industrial
on
tional Securities &
stock
discussed.
were
Another
12
selection
analysts
through
No.
Series, the importance
careful
these
accounts on
basis
Letter
Stocks
the medium of investment com¬
panies
Professional Selection
In
the war—may
ever,
—
pointed out and the
was
smaller
num-
of the future. It is
.
living
of
(Continued from first page) i . a proper mental attitude now to
be relied upon dwell too much upon this possi¬
of
securities."
Approximately 250 investment dealers, bank trust
private trustees attended the meeting which was held
at the Boston University School of Law.
officers'and
ber
period
yet earn profits, which will sup¬
port much higher prices for its
field.
company
well
(and
rates
wage
compensation in the
formk of higher prices therefor),
subjects of general interest to the investment
on
pay
pre-war
without full
Last week Vance, Sanders & Co. sponsored the first of a series
of
can
the
above
"
Thursday, December 14, 1944
the
will
has
war
wisdom,
our
ingenuity
cour¬
have
to
us.
Production provides the income
enables
that
people-to
which is produced.
produce of what
"an
buy. the
hava
with
The
buy
that
more
we
people want and
more
which
income-we will-
.to 'buy;
Any
business, from the smallest to the/
nattM
of interest exists be¬
employer and employee.
Thia relationship is too often ob¬
largest, receives money from its
customers.'
" That money
is,' in
turn, customarily all paid out.
It
mutuality
is paid out
scured
in wages and salaries.
It is paid out in the purchase of
materials and supplies.- It is paid
out to repair and replenish ma¬
chinery and equipment. It is paid
-
•
■
in
out
interest,
rent,
The
more
received by
business con¬
from customers through the
money
cern
•
royalties,
dividends.,.
and
taxes
r
a
sale of goods, the more money
be
•
paid" out
by
will
that concern
to
people in one classificationror another. This, in due course, enables
them to buy a greater volume of
■'
tween
.
overlooked in the han¬
or
Industry
dling of labor disputes.
must-recognize that business can¬
not be conducted without employ¬
and that workers
ees
to full
entitled
are
and fair
compensation for
On the other side,
must
-
•
•
•
'
thing is to erect
barrier in the way
•
of a - problem which
America, both in retro-
heart
the
.f
troubles
To my way
of thinking, a new job is created
when
an
individual,
who
has
saved money or established for
himself a credit reputation, de-
spect and in prospect.
■
'
•
\ cides to engage in some business
activity. He undertakes this risk
of his
savings, because he has
no
unnecessary
jobs started. Once
they have begun, the tendency is
for them to become self-continu¬
of getting new
An increasing production of
ing.
marketable
a
of securing customers for
his product and of satisfying those
customers to the
pay
price for
a
adequate to
•
not
,
extent that they
the product
his costs and
leave him a fair profit. I use the
word '-'"profit" deliberately. -It is
will
,
cover
word
a
to
ashamed
be
of,
despite the effort by a few to dis¬
credit those of us who believe in
profit motive as the mainspring
a
of
American business system.
our
Take, for example, the man who
,■
».
risks his capital in the building
of a corner drug store, or a crossrepair shop. At the outset,
jobs for those who dig
foundations
and
erect the
roads
there
the
are
building.' After the drug store or
shop is built and equipped, one or
more clerks or machinists may be
New em¬
employed to operate it.
goods are pro¬
and better jobs
More and better
and
more
either
person,
because
only
created
are
some
with
believes that he
singly
or
others, hopes or
can locate a sufficient number of
customers and can sell to
them his
products or his services at a price
after
all costs have been met.
He is
which will leave him a profit
willing to risk his savings and to
devote his energy to that end.
If
order
in
it
appears,
must
permitted
be
a
economic
our
funds
to
level
of
continued
and
time to time
nature
this
opinion.
With it all, there
general feeling of con¬
fidence
than
a
and
self-reliance,
rather
defeatist attitude of mind.*
continuous
We may well
be
inquire what is to
gained
by such a decentrali¬
Applying such a principle
zation.
to the steel
the
public
about
interest
lower
abundant
force
bringing
and
production and
employment?
Oris, it
industrial
ficially
by
prices
in
not
shifted; and the productive facili¬
if
ties to supply
also shifted.
these markets have
Forcing or restrain¬
through
ing local production
uneconomic
an
inevi¬
must
process
tably tend toward lesser volume
of production and
decreased em¬
ployment.
Undoubtedly there are serious
problems ahead for industry. As
they arise, these issues must be
soundly.
arti¬
munity to the detriment of the
rightful interests of another com¬
munity.
The forced creation of
spread across the land, mar¬
kets for goods and services have
resolved
locality
As
decades.
greater
activity
of
in America
our population
has
scheme to
a
particular
a
more
for
redistribution
facilities
calmly,
sensibly
The solution of
problem
benefit
be
must
the
such
country
as
and
each
as
will
whole.
a
employment in
given
full and fair opportunity
a
to function. Such a program of¬
fers the best outlook for increased
production, new jobs, and an
increasing
flow of
better
cheaper goods.
x
What I have most
lined
demands
statesmanship
standing of essential facts
It surely cannot be to the advan¬
should be disposed to criticize and
hands.
tage of the nation to embark
condemn any part
wisdom,
which
program
any
is
upon
econom¬
ically unsound.
If
steel
be
produced
in
or
economic
we
delivered
at
a
cost
the
Pa¬
below
the
on
price of steel originat¬
Pennsylvania or
elsewhere, these Western mills to
ing
the
of
in
Illinois,
extent
of their
necessity,
capacity will,
eventually
capture
of
not
business
our
system
are
on
action which
be¬
courage
substance?
our
society
forced
permits
course
one group
to obtain
an
agriculture—or
that
sense
the
of
people will permit
steered
unwar¬
cnnr^r
a
common
in
advantage over another
group—and this is equally as ap¬
plicable to business as it is to la¬
or
Only time will tell.
faith
of
ranted
bor
have
vation
the
faith
so
of
as
vision
the
a
and
American
to be
course
to insure the preser¬
individual
spirit
be
the
patience, and tlie
to make full use of that
and
I
nation have
our
'the
simply
We cannot afford to
a
Will
informed
therefore do not understand what
proceed
consumers
cooperation between
industry
and
the
The substance for prosperous
future is in our
Government,
a
livered
to
constructive
consequences
is involved.
Coast
of the economic
thereof. None of us
Government,
leadership in in¬
general public.
plants west of the Rockies and de¬
cific
a
comprehension
cause
can
and
briefly out¬
broad-minded
dustry and labor, and friendly and
This calls for
full public under¬
and
in
wise and sincere
that such locality
may compete with another com-,
munity more favorably located?
a
ever
.
of the
so
for
it brings about corresponding
unemployment in another locality.
If competitive free private enter¬
prise is to survive, it must be
through subsidies at the expense
public,
locality can¬
the nation,
one
healthful
be
of
liberty
initiative.
If
and
my
well
founded, then the
prospect seems bright for future
prosperity.
sort
is
In peace¬
negative in its effect.
a price by
regulation would
that some who might other¬
time, the repression of
Governmental
mean
wise produce and employ are
terred from
so
ered at the
is
customer
the
permitted price.
The
forbidden to remedy
situation
that will
he
de¬
doing because their
production cannot be cov¬
costs of
order to
paying
by
be
price
a
these costs, even if
cover
should
willing to do so in
A price
the goods.
secure
by Governmental or
other regulation means that cus¬
supported
tomers
isfy
price
lower
a
which
there
prevented from secur¬
are
at
they
want,
the
even
goods
though
producers willing to sat¬
are
their
needs
lower
such
at
price. Prices supported either bv
Government or by monopolistic
action
Ask for the
The National
situa¬
tion regarded as favorable by the
proponents of such control.
The
of maintaining
pose
is true of
same
gift envelope illustrated
here to enclose War Bonds
presumably for the pur¬
are
purchased at
any
office of /
City Bank of New York
some
arbitrary sun-*
an
The motives of the
backers of such support may be
port of wages.
likely
what
ume
in¬
certain
in
proper
Still the purpose is most
defeated,,
be
to
because
gained by such artificial
is
support is all too often
my
the
productive
which advances.without justifica¬
tion the interests of one
com¬
By its very
of
control
a
maybe
must be a
westward in pace with the settle¬
ment
development of our
country west of the Alleghenies.
a
economics has occasioned
of
and
Such
West Coast market.
Much has been said of late about
unwisely curbed, regu¬
lated or opposed. The creation of
new jobs is
as simple as that, in
or
the
law
moved
constantly
from
advance
to
fair trial; it must not be unreason¬
ably
has
conditions permit.
as
future price controls..
entirely
and
goods
initiative*
2509
of
enable the present high
wages of workers to be
stances.
more
<f "I 'J«
the only self-sustaining source
better
have
to
are
M.iwICx »»J
is
health
and more and better jobs,
then that hope or belief, wherever
we
««fc tout
of
ing
ployment thus comes into being.
duced
.
goods resulting from
normal and satisfactory state
'
hopes
to thrive.
are
The important
This question goes close to
ated.
rights
the
respect
other, if both
'
note that industry on its own
may
industry, it would ap¬
their Labor.
pear to contemplate limiting the
employes must realize that in¬ amount of steel to be produced in
dustry cannot long continue as an Pennsylvania, Ohio, Illinois, In¬
employer unless the owners of the diana, Maryland or Alabama,; in
business are permitted to recover: order that more steel might be
their costs and receive a fair re¬ produced in California, Utah or
turn on their investment.
Each Texas. Will such a move advance
of the
Yet if
goods. The significance of this is
that the problem boils down to short-sightedness on the part of
those
one of finding ways and means of
responsible for our labor
getting goods and services pro- policies compels labor relation¬
ships to be conducted in such a
duced, without resorting to arti¬
ficial and unsound methods. Once way as to impair the prospect of a
goods and services are so pro¬ proper return for risking one's
duced, the Test, almost automati- savings and devoting one's energy
cally takes care of itself. Produc- in undertaking new production,
tion
is the only self-sustaining then again it is less probable than
source of real purchasing
power otherwise that there will be any
such
new
undertaking.
If the
to buy that which is produced.
You may properly inquire how source of new jobs is thus con¬
does production get started, or, to stricted, there will be more un¬
state
the question
in its more employed and the competition for
usual form, how are new jobs cre¬ existing jobs will increase.
'
«Mi Mi» «*m <nw«uaattifiu u.u«
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4342
Volume 160-
iMitHvM *
I' JV1
lost—and
so—in reduced vol¬
production, employment
more
of
Stfcetcb
Abet (OIJettM-
and sales.
Of
late
we
have
heard
advo¬
in¬
decentralization of
cated' the
This seems to relate pri¬
to manufacturing.
It is
dustry.
marily
■
then
our
national policies should be
framed toward securing expanded
argued that industrial plants now
located in the East or Middle West
production and increased emnloyment through measures which do
plants to be erected or maintained
in the South or in the Far West.
If this analysis be correct,
not have the
effect of discourag¬
ing the initiation and development
of new enterprise, or the expand
sion
enterprises*! uro
national pbMcie3
taxation. If our tax laws
of existing
One
of
concerns
are so
these
designed as seriously to im-tr
pair the prosoect of a reasonable
profit for risking one's savings
and devoting one's energy toward
then such new
production
is les* likely tb^r)
otherwise to be undertaken.
The
new
new
such
production,
jobs that would develop with
new
production are then
simnly notMcreated.
<
'
•
Govern/me"tal
another pfattorv
labor v~"1l'"Tr
At ^fundamental
be
should
Just
supplanted by similar
this' is
hdw
to
be
accom¬
plished'^ hot clear, unless it be
througfi' a'fbitrary restrictions bv
Governmental
edict
the
upon
WAR BONDS
Ie U. S.
now existing mills.
Those in favor of such a Govern¬
operations of
w
fail to recognize,
fhat
a
manufacturing
industry
automatically Jocates or relocates
mental
policy
favorable district
itself in
a
tricts.
It
markets
exist,
for
or
reach.,
mental
cannot
its
rv
dis¬
long survive if
produets do net
bevnnd its
have moved
No
statute
regulation is
or
Govern¬
required
to
bring about a proper equilibrium
between place of supply 'and place
of demand.
In proof
of this, we
THE
NATIONAL
/
CITY
BANK
OF
Head Office: 55 WALL STREET
'
Member Peewit Deposit Insurance
Corporation
NEW
YORK
'
\vw
Oi/tO,»'
THE COMMERCIAL & FINANCIAL: CHRONICLE
2610
:
.
Thursday,'December 14,,1944
.
'9
III
Buy Bonds in the
CANADIAN
6th WAR LOAN
STOCKS
(Continued from first page)
deal of
social, financial and busi¬
ness;; turmoil.
i,
months the volume of
production
has
For many
industrial
our
'
Private Wire Facilities
,?;?
been far
greater than ever before.
For three years in succession our
Wood, Gundy & Co.
CHARLES KING & CO.
Incorporated
14 Wall Street,
Members
WHitehall 4-8980
Montreal
By BRUCE WILLIAMS
the Liberal
is placed before the electorate next year,
tional appeal
probably be defeated. Fortunately for the Mac¬
kenzie King Government, such an issue, especially since the recent
abortive attempt to overthrow the Administration, is only too evident,
and that is the great platform of national unity.
manu¬
supplies has
weeks,"
Perhaps
we
have already heard ^
the Bank of Montreal in its
conditions which do not even re¬
of the forthcom¬
campaign when Mr.
Hepburn, who has oppor¬
tunely resumed the leadership of
the Ontario Liberals, at a recent
CANADIAN BONDS
public speech in Hamilton, ap¬
pealed for a national spirit of tol¬
erance and an equality of sacrifice
equality of education.-The
of this goal would
greatly contribute to the spirit of
understanding
between
Quebec
MUNICIPAL
English-speaking Canada, the
which will
friction
of
cause
and
tawa
katchewan
of
CANADIAN STOCKS
Sas¬
Administration
Liberal
eradicate the
cause
of the
has
A. E. AMES & CO.
jus¬
tifiable grievances of the west¬
TWO WALL STREET
v
NEW YORK 5,
of the early thirties,
N. Y.
when
current
sti
tudied it is
hi endous
developments
are
amazing that the trewealth
natural
of
the
forward-looking Mayor J. W. Fry,
is
now
known mot
only
the
as
an
..
ing provinces in the Dominion.
Already it appears evident that
new
the
major oil discoveries
oil
fabulous
The
offing.
basca
sands
in
Atha¬
are
are
at
last being
commercially exploited.
000
square
province
The 17,miles of coal in this
being surveyed
are now
pith a view at least to filling
panada's deficiency in this re¬
spect.
And, last but not least, the
riches of the Canadian
reversal of this de¬
ports
have
maintained
the
record for
of
volume
est
back
""A-British
mission, headed
Lord Keynes, is
,
with the rapidly developing Can¬
adian North West, it requires lit¬
will be also beneficial to
in filling civilian Govern¬
ment jobs, and in service in the
ing,
development of the
and Edmonton,
Alberta
of
ple will have to find new occupa¬
tions. /'Among the excess numbers
,
the Dominion.
the
past week there
able
management
■a.
of
city
a
about half are
Turning to the market for the
was
again
BUY and HOLD
•
.ho
'
.
'
Sixth War Loan Bonds
Taking all these conditions into
safely reach the
conclusion that there will be more
account we may
&
Company
be
true
than
This will
if State and local
even
the
governments?, and
Federal
of
Government, institute programs
It will be true even
public works.
if
the
Federal
Government
civilian
con¬
in
and
manu¬
since
use
The combination ?of
early in 1942.
great shortages of goods and large
accumulations of savings;, should
to
operate
and
to
hasten
reconversion
stimulate production.
Two Factors
j
Probably there are two control¬
ling factors which will largely de¬
the
jobs
1945.
rapidity with which
be made available
first, and less im¬
can
The
portant, of them is likely'to be
the reaction of business sentiment
when
all
of
begin
us
to
realize
how numerous, and have huge .in
magnitude,
the business re¬
adjustments upon which we are
entering. Clearly1 there has been
no
general - and adequate under¬
standing of these matters so far.
It is possible that the swift drpp
in Government buying will cause
are
shock that both individuals
such
a
and
business
will
concerns
hesi¬
tate to
spend freely the large pur¬
chasing power that they have ac¬
cumulated.
it
is
is
That
unlikely
at
Administration
the
possible, but
develop if the
Washington
to
business climate
a
reconversion and :to
to
production of civilian goods.
That'
question
the
about
atti¬
tude of the National Administra¬
tion
toward
after
the
enterprise
private
termination of the
in Europe is the
War
second/ and more
important, of the two controlling
factors. Apparently the authorities
in
decided
have
Washington
to.
retain most price controls, and to
new
ones
to cover articles
add
that have not been in
during
of
most
it
Moreover
the
seems
production
period.
war
likely
that
of the controls over wages,
manpower,
installment
buying,
the production of materials, and
foreign trade will also be retained.
All of us will agree that such war¬
time controls as Will be genuinely
many
helpful toward the defeat of Ja¬
pan should be kept in force, but
we
may well be doubtful about
the
wisdom
of
continuing
more
than those.
Foremost among the reasons
for
retaining most of the controls" is
the hope that by means of them
the
of inflation may be
Probably' the
chosen
dangers
avoided.
no
de-
bers
civilian
a
highly competi¬
the num¬
failures will
economy,
business
of
sharply increase.
far
or
goods
..v. which
:
Powerful Forces' ■
if
fast
are
demands
the
of
supplies
adequate to satisfy the
them.
Regulations
for
production when,
has u high purchasing
restrict
the j.-. public*
constitute incentives to¬
ward inflation;? instead > of being
protection against inflation;,
'
power
period, of
economic
forces shaping the course of busi¬
?? It seems .probable that the valid¬
the mayoral election, and the re¬
ness will be,immensely powerful.
ity of : this simple, fundamental
turn to office of Mayor Houde has
The shrinkage in war expendi¬
been probably already discounted tures will constitute the greatest pr|p£iple will be recognised as we
marketwise. There was little turn¬ decrease in purchasing demand mqvV into the period of decreased
>yar
production, and increased
over in internal issues and Cana¬
that any nation has eVef; experi,-,
jjcmlian production* following the
dian free funds were motionless enced.
The number ofv'men and^
!.t^rmination of large-scale war¬
at 10 Vs% discount.
women
seeking new ' jobs, ' and
fare in Europe. It now appears
Until the end-year period is
needing to find theiti in a rela¬ likely that after both our wars
passed, there is little likelihood
tively brief time, will also be of are ended the prices of most kinds
of increased
record-breaking proportions./, .On of manufactured articles, will be
activity or imwere
hesitant pending
During the transition
the next two. years the.
.
portant
change
the
in
t
political
general
inventories
are
now
light, but after the turn of the
year
the
of positions
an
,
re-
uncertainties,
ment
STREET, NEW YORK 5
WHitehall 3-1874
year
there has been this year.
parture from the monotonous pat¬
tern of firmness without activity.
dealers'
Taylor, Deale
—a*
next
unemployment
tive
c e n
—ill
in
be
part way into
price structure. In view of
64 WALL
which
airplanes,
greatly decreased de¬
mand when peace returns.
. r
;
will
made
-
,"4,,
i
in manufacturing
engaged in build¬
and
ships
ing
Lee Paul is engaging
Montreals.
'J
,
employed
now
CALIF.— W.
High-grades strengthened slightly-.
Albertas held at higher levels, and
City of Edmonton has greater Saskatchewan^ rallied on the,set¬
nrospects than any other city in
tlement of the seed grain dispute.
particular. In spite of the ex¬
isting handicap, Edmonton, under
in
Those excess peo¬
armed forces.
j
tle imagination to foresee that the
proper
move
now
present time
abnormally large
proportions of our adult popula¬
tion are engaged in manufactur¬
Mr. Paul.
plans for the im¬
of
communications
The restoration of the credit of
the
are
example,
from iron
,
provement
cities
from
and find
places.
At the
them, must
they
otherdwelling
and has further
Alberta
for
the
shipments on a
Antipodes, and it is confidently South Spring Street.
Mr. Paul
procedure is not a wise and pru¬
large scale and attempts to stim¬ dent one. The most effective
expected that the air-minded peo¬ was
way
formerly a member of the
ple of the city will live up to their firm of W. Lee Paul & Robert ulate-other forms of exports. We to avoid inflation is to stimulate
may also safely conclude that as
reputation in the post-war period. Rhodes, which has been dissolved,
an ample and prompt production
we
move
out of a nearly non¬
of goods that are in active de¬
Also, as this city is the terminal Clare C.. New by is associated "with
competitive wartime economy, and. mand.
of the Alaska
Prices cannot easily rjse
(Alcan) Highway
North West will flow through the.
;;
of
Most
where
work.
sorts. of
other
from
consumer
articles
part
at
years
This has
steel which have not been
favorable
occupations
present
.their
find
and
in
in a secur¬
offices at 634
.
15
for
are,
600
in
or
strives to create
/
,
During the transition period at
20 million Americans must
(Special to The Financial Chronicle)
ities business from
Employment
leave
sustaining
Anglo - Canadian
trade at a satisfactory level."
ANGELES,
war.
tinues lend-lease
jmineral
cities of Alberta.
than
factured
least
of
LOS
by
•
meahs
W. Lee Paul Opens
and
still domi¬
Our one big cus¬
tomer will not only progressively
decrease his buying, but he will
also be selling off his surpluses.
nated
by
expected soon
Ottawa to discuss ways and
civilian; production,
to
to do it in an economy
tially the Canadian production of
that commodity.
\?
!
pre¬
handling the great¬
air-freight in the
world.
It is on the great circle
route ta Russia,-the Orient and the
war
wanted, and who has had limitless
purchasing power with which .to
back up his ..demands.
Now we
must begin to make the transition
an
to cope
inum threatens to reduce substan¬
over
to
a
additional 10,000 work¬
with the orders placed
with them.
On the .other hand,
a
deferment of orders forj.alum-
"Gateway to the North," but also
a long period
has
the "City of the Crossroads of the
automatic solution.,
World."
p
ttiere is little doubt that in the
Edmonton is the foremost city
decade after the war Alberta will
in Canada in avihtiort, and its air¬
emerge as one of the most promis¬
not led
the? western
artillery
on
concentrated
for
has caused
ers
NY-1-1043
council of businessmeq headed by
brovince together with good gov¬
ernment
developed
present
RECTOR 2-7231
of the endeavors
to rehabilitate the credit of the
Province
of Alberta.
Although"
originated Tn Federal funds.
In
large measure, business has
been serving one great customer
who has known exactly what he
has
nients.
This attitude should also facili¬
tate the progress
During this year more than half
our
industrial production has
consisted of war goods, and more
than half of our national income
capacity to fill overseas requireIndeed, they require at
,
There
,
in
saving;
large part
scarcity, of
wartime
in
of
done
they
as
in
goods.
new
Customer
One Big
constanly
cision, with the result that, Cana¬
dian plants producing heavy am¬
munition are now working at full
INCORPORATED
provinces arising out of the
debts incurred to the Federal
ern
years
is
materials
front
to
Treasury during the depression
Can¬
needed from
be
keep many plants busy,
present year, but the need which
grain debt. This points towards
another attempt on the part of
the
war
-lasts, the
materials
It had been planned to
curtail Canada's output of heavy
ammunition by 25%
during the
provincial seed
resulted
termine
'
changing,
controver¬
the
on
sial issue of the
these
Ot¬
between
Province
the
will
war
as
but the nature of the demands for
the sudden removal of the
was
the
supplies of
long
large
ada
wind
the
in
straw
continues exceedingly active, and
"As
of national disunity.
normal
Summary of Nov. 24,. motely resemble the
but, it adds "business in "general course of business.
CORPORATION
lack of which is the greatest cause
Another
Business
dealing principally in foody cloth¬
ing and household requirements,
averaged 15% higher than in Au¬
gust and 14% higher than in Sep¬
tember, 1943.
PROVINCIAL
.achievement
and
recent
chasing are for September, when
the index for twelve retail trades*
GOVERNMENT
throughout the nation and more¬
over an
war
in
encouraged by the high. pur¬
chasing power of the rural com¬
munity, due to one of the. best
crop seasons that Canadian agri¬
culture has ever experienced." The
bank goes on to say "The latest
figures available on retail pur¬
the opening gun
Mitchell
visible
the
is
ing election
have
?as
assets
the 1940 rates of
impressively successful, but. they
have
been
accomplished under
been
in
recession
facture of certain
says
would
in¬
liquid
whole
satisfy the insatiable demands of
war.
From a business point of
view our achievements have been
"Some
Administration will
in
war years
accumulated
much
more
Trade has broken
records. More of our
people have been gainfully em¬
ployed than ever before. All these
developments have taken place
because we have been trying to
During the
have
all: previous
In General Active
suggested that unless some clear issue with an emo¬
before.
dividuals
of passengers.
/:
Canadian Business "??
Canadian Securities
It has been
Exchange
61 Broadway, New York 6, N. Y.
Ne\rYork 5
Wires to Toronto &
Direct Private
Toronto Stock
fafmsA have
produced
recordbreaking harvests. Our transpor¬
tation systems have carried enor¬
mous volumes
of freight and al¬
most unbelievably large numbers
be put the important fact that the
accumulated money savings of in¬
dividuals are far greater than ever
normal
acceleration
of
reestablishshould
the
tempo at higher levels.
cause
market
and in some meas¬
counterbalancing these pres¬
sures, will be the condition that
the other hand,
ure
there
will
demand
because
been
,
-
be
unprecedented
an
civilian goods,
shortages of them have
for
new
building
up
ever
since we
higher than they were when we
entered the wars.
and press¬
ing needs for civilian goods must
that
rea¬
higher than they were when the
broke out. Nevertheless, it is
war
not
entered these wars.
Alongside the great
The chief
it is wholly
probable
that industrial wages rates will be
is
son
be
at
all
likely that there
general.price
Ranees
will
in this
country in: 1945)iQloSufficient 4mhro..
■
io
ttts
V.-
.
i?
/
:Valume..l60
portance' -tci warrant designating
thbm as constituting inflation.
with the new financing
opportunity rather
through
at
early
an
than to wait for still more favor¬
;
Security Prices
In
the- financial
safe in
field
interest
rates
will
remain
can
under
.
Nevertheless.,!!
that when
business men begin to realize that
the
transition
from
a:; wartime
fairly
seems
to
likely
those
a
of
in
may; d e v e 1 o p
the market support
time in the market quo¬
bonds, and espe¬
cially in those of the second-grade
issues. The chief factor working
against such developments will be
the continued pressure of funds
seeking investment, but if the
business
readjustments
of
the
early transition period prove to be
definitely more serious thari those
which
investors
have
been
into
it
enters
from
transition
ex¬
period of
full wartime
the
any
extra
of
real
again
competition
ought to be elim¬
>'; /.//'' '/
.;'■<.*>
.
place
wars.
It
the
is worth noting
that at the present
time hourly wage rates are still
rising.
•
' •; '
Unfortunately it is
probable
that there will be
more
labor dis¬
putes in 1945 than there have been
this
and still further in¬
be expected when
year,
creasesmay
both
wars
and
labor
lieved of
from
-have
been
terminated
organizations feel re¬
their pledges to refrain
wartime
Periods
walkouts.
when schedules of wage rates are
under revision are naturally pro¬
veloped after,-the last war when
the number of .strikes in the first
.
peacetime year, of 1919 was much
greater than the number in 1918,
and when the number of individ¬
ual
involved
workers
nearly
was
three and one-half times as great.
Labor
disputes .were not equally
in the second year fol¬
numerous
lowing .the
but there
war,
still about three-times
them
•'
were
as many
of
there had been just be¬
as
fore the
war.
/■/,/
the
Among
into sell¬
Those who assume that
when
peace returns
people are
going to spend their savings spon¬
taneously are probably due for a
ing them.
companies that had
been experiencing unusual pros¬
perity during the war years voted
la^t
entered
we
took
more: ductive of increased numbers of
labor disputes. ? Such increases de¬
company/- very
real effort must he put
to a more largely civil¬
economy." At the close of the
economy
ian
before
advance
war many
means
Jobs
all
to
the .values
that
are
implicit in his dreams about home
and family.
We must have real
jobs
in
large numbers for our
people, and many of them
young
-■Even
in times
of
war
Car loadings of rail
business
commentators
menexpect
to
make forecasts during the closing
weeks of each year.
In conform¬
ity with that tradition the writer
.
previous year since 1930, but they
are likely to be somewhat fewer
next
than
year
have
they
been
this year.
Interest
will
rates
be
tightly
to
be
continue
to
1945, as
based
on
his personal opinions they have been since the begin¬
concerning possible developments ning of this emergency period,
next year.
Under the existing and it seems entirely probable
circumstances the forecasts can¬ that the regulation will continue
to make the following
comments
be made in terms of specific
not
quantities and amounts
or
in
eents.
It
per-
••'
now
tional
income
,:
probable that
seems
to
'payments
*
\
na¬
in¬
regulated
full
in
For this
in
effect
next
year.
the interest rates
reason
prevailing in 1945 will probably
differ very little from those of
1944,
of
1945
dividuals next year will be defi¬
If interest
nitely lower than those that have
to be nearly
been made this year.
The volume of industrial
prices of Federal securities in 1945
duction
as
Reserve
index
declining
this
stated
has
from
pro¬
will
be
that
have
month
been
month
to
Employment of civilian workers
it
has
to
be
this
been
the
number of unemployed is likely
year,
and
greater.
Hourly straight-time wage rates
of factory workers have been in¬
creasing ever since we entered
these wars, and the upward trend
will probably continue in
Labor
strikes
erous
disputes
are
1945.
resulting
likely to be
in
Interesting Rail Situations
In
vious year covered by the records.
Probably the number of insolven¬
1945
will
current
issue
their
of
Securities
York
New
railroad
City,
situations
Quotations,"
Broadway,
discuss several
which
appear
the present time.
Copies of the release, containing
quotations bn guaranteed stocks,
underlying mortgage railroad
interesting
at
bonds, reorganization railroad
bonds, minority stocks and guar¬
anteed telegraph stocks may be
had upon request from B. W.
zini & Co., Inc.
been
1944 there have been fewer
in
the
B. W. Pizzini & Co., 55
Piz¬
more num¬
in 1945 than they have
business failures than in any pre¬
cies
during
effect
in
been
"Railroad
"Work Out" Possibilites
this year.
In
those
similar to
closely
year.
1944.
I
prove
1944.
Probably it will de¬
cline mere rapidly next year, with
the average volume for 1945 being
less than 90% as great as that for
i'
rates
the same as those of
1944, it follows that the market
slowly
by the Federal
be
definitely
greater than those of 1944.
Production of steel ingots and
to be new ones.
rude awening.
^
exceptionally generous dividends
But jobs do not just happen, castings will be about the same
S There is one more matter which
at' the' end of 1918, or: early in
nor are.real jobs brought into be¬
this year that it was last year/but
1919. In almost every case these should constitute a part of the
ing by federal deficit financing.
in 1945 it will probably be smaller
large disbursements proved to be policy of every business organiza.
Self-sustaining jobs flow from
mistakes.. Costs of reconversion tion, whether large or small, and
successful * combinations of enter¬ than in either, of the two preced¬
were heavy.
Marketing conditions that is the formulation/of ~ plans
prise and capital., They involve ing years.
had changed. - Company manage¬ io^ taking care of the returning
me. taking risks; by managements
ments found that they needed the servicemen. That planning should
which;assume]"those risks in the
flexibility of policy that comes be well under way1 by now, and
if it has not yet begun it- should hope of making profits. Hence it
from having ample working capifollows that the number of avail¬
tal.
Perhaps the most important be promptly initiated. In many in¬
able jobs always, largely depends
business policy for 1946 is to con- stances it should include the or¬
ganization of /retraining:/.courses, on whether/the political climate'
serve cash and Federal securities
-insofar
as
tax
regulations will and it should make provision for that /is/ created by the national
will
freight have
been greater this year than in any
of the Business Bulletin ventures
is likely to be less next year, than
\
.-
,
a company can
a
the
of
Prospects for 1945
dollars. Almost
to above 46
half
essentials of busi¬
; When
the servicemen begin to
ness policy
in the reconversion
come home in large numbers, and
period a high " priority must: be.
when the 'demobilization of the
given • to the reorganization and
munitions makers gets under way
retraining of all sales forces.'.To¬
in earnest, the most important sin¬
day virtually no real selling is
being
done
anywhere in
this gle problem in this country will
be jobs.-Among the desires of our
country, and practically no train¬
ing of future salesmen is under fighting man perhaps the most
way.
When we have real com¬ generally predominant is that a
petition once more it will be job for him should await his
It is natural that
found that we must not only pro¬ homecoming.
he should give it first place in his
duce goods, but that we must also
distribute them, which means that thinking because it is the natural
!
Business Policies
as"
..the
move-back
we
era
an
inated.
Cash in the treasury is the most
have
all
the
those practices
quate to sustain security prices.
valuable asset that
than
business
cost
As
little.
pecting, then the pressure 6f free
funds may be temporarily, inade¬
;
fostered
risen
the managements
nearly
has
that
tations of many
'
have
profits it has been possible to
charge almost any moderate ex¬
penditure as an expense of oper¬
ations, and so to make it an item
able that there will be declines at
;
,
American
absorbed
a good many issues of stocks.
If that does happen it is prob¬
same
taxes
enced them.s Since the taxes have,
for
the
prosperous -
other factor that \ has "ever - influ¬
assumed, * there
weakness
policy
managements of es¬
inefficiency in
peacetime economy
is going to be longer and more;
difficult than they had previously
economy
,
companies
should givecareful/thought.
It
involves the vigorous reduction of
the extravagances and inefficien¬
cies that/have/developed in most
companies that have "been :paying
excess
profits taxes.] Probably
pecially
,
merit:. securities./
a company
•There is another business
to which the
market
priees
of
Federal
v,: bonds. - We cannot be nearly as
confident
about
the
probable
movements of stock prices as we
can
be about those of Govern■
not
financing by issu¬
new
do it promptly.
tight control of Government
agencies, and that, as a result there
will be no important changes in
.
do its
may
ing stock it would probably better
\
the
the
Similarly, if
develop.
are
assuming that the- levels of
which
conditions
able
we
2611
;thrjc®mmercial & financial chronicle
Number 4342
have
Middle
West
Corporation ap¬
attractive speculative
"work out" in the public utilities
as an
pears
field, according to a memorandum
issued by Ira Haupt & Co., Ill
Broadway, New York City, mem¬
bers
of the New York Stock Ex¬
change and other leading national
exchanges.
Copies of this inter¬
esting
dum
had
circular
on
from
Request.
and
Midland
Ira
a
memoran¬
United
be
may
Haupt & Co.
upon
_
,
,
adaptations z of shop and office administration is hospitable or in¬
procedures to use the -capacities hospitable toward business enter¬
of
the
physically ■' handicapped.' prise.:;
We are being told nowadays
Someone
in;.:the...,,-, organization
permit. J /; •'•■■■■•.,
During the war years our indus¬
trial cities have filled up and even
;•
,
•;
become';^crowded.'/:,trader *; these
ofj business propf should. be given; the special- as¬
erties have become firm; As re¬ signment of faipiliarizing, himself
conditions-rents
-
;.
that
the vplan
of
the administra¬
.
tion for-:maintaining full employ¬
gets under way many with the government rules ^reg¬ ment is to do it by stimulating ex¬
companies will wish to lease new ulations, and helpful publications ports on a grand scale. The plan¬
properties. There can be no gen-. issued -for the, benefit andguid¬ ners tell.us that this is to be done
era! rule covering. such matters,, ance of the returned servicemen.
'.. granting huge; credits to forbut in most cases it will be prugn ioations so that they may be
?•
enabled to buy dur- goods/ We did
dent for business men to refrain,
['/;• •;
Labor. Problems/
conversion
■'
cpmpeting^-for/ long leases. i-i
ithaLwith/piifrlfr funds^after the
weekly; take-home. ..pay will be last war; arid .it resulted -in a short
A^ the .volume of war "worlt
diminished
the
populations r of definitely higher when peace re-* inflation prosperity promptly fol¬
most mdti^trial cities will shrink turns. than the^V were /when we lowed by the deep depression of
somewhat, and the terms-of leases eptered/the wars. £ That was - true 1921. i; We tried it again through
during the period of the: last war,- private credits in the T920"s' and
will become less ambitious. • -
In.the
third quarter of 1944, the Securities and Exchange
Commission reports
that 22 Special Offerings were made,,
involving 260,474 shares of stock. Six were completed in 15
mmutes; nine within
minutes? four required more than an
hourf and three/were not completed.
1
This remarkable, yet
typical^ record is further proof that-
from-
.
'
•
-
r
/
:
and it will clearly be true, in/this
Supplies, materials, and many
sorts of component parts will be period. When World War I broke,
in Short stlpply when reconversion opt in 1914 wage earners in Amerlean
factories
received on ' the
v gets under way, and these condi¬
average a little more than 11 dol¬
tions will tempt many/manufac¬
lars a week. By the time we en-r
turers
and dealers to y build up
tered the war they were receiving
their inventories as they find op14 dollars a week, and at the time
; portunities
to do so.
After the
of the armistice in 1918 they were
last war the building up of over¬
sized inventories proved to be. a getting 21 dollars a week. By the
end of 1919 the, average had gone
most hazardous policy because a
up to 24 dollars weekly, and by
;i general
price eollapse took place
the autumn of} • 1920 it had risen
•
about a year and a half after the to
abov$*2ff dollars a week. After
;s.armistice; It seems most unlikely
that there was a decline to 21 dol¬
<rthat we shall experience anything
lars in the depression of 1921, but
like as severe a price decline, misi
;R-i recovery to about 25 dollars a
time because we have not had,as!
^vp.ek by the autumn of 1923.
extreme an advance of prices qtfrj-h
,
'
ing the war period. Nevertheless]
it will be prudent to avoid build-,
ing up exceptionally
large inven¬
tories.
interest
rates
are
now
lower,
prices higher/than they
have ever been previously in our
business history. No one can guar¬
antee that hond prices will not
and bond
mQve
even
to
so
still higher levels, but
if'the management of a
fiWeekly earnings of factory wage
practically doubled dur¬
ing the
war
years
from 1914
through 1918, " and then moved
still higher in the first year fol¬
lowing the end of the war, and
higher yet in the second year fol¬
lowing the war. During this war
period
lowed
factory
a
wages,
course
very
have fol¬
similar to
that of the earlier period, and at.
holding large totahref foreign de¬
faulted ijondsi/v. /
: : Those
experiments
have
taught
that
us
ought
to
cannot
we
,
which tap
this vast market reservoir.
"V
In the past 60 days.Shiekte &
Company has completed 7 Spe¬
cial Offerings within
periods of 15 minutes each and 3 Secon¬
dary Offerings within the minimum half-hour requirement.
These offerings, totaling 183,561 shares, were as follows:
a durable prosperity by
-method of giving-away
goods to peoples in -foreign
generate
the
2 8,086 Share* MONTGOMERY WARD
easy
our
lands
then
and
we
do
it
16,000 Share* LOEWS, INCORPORATED..........Common
paying for them
Neither can
3,500 Share* INGERSOLL-RAND
>.
10,000 Share* COMMERCIAL INVESTMENT TRUST.
by spreading the work
One of our great labor
at home.
.Common
7,500 Shares SWIFT INTERNATIONAL............Common
by taxing ourselves.
.
14,675 Shares STOKELY-VAN CAMP, INC.: .'.
Common
.Common
27,300 Shares CONSOLIDATED NATURAL GAS.....
organizations has
Common
^.Preferred
just adopted a
resolution asking the Congress to
40,000 Share* SUPERHEATER CORPORATION
establish
a
30,000 Shares GRINNELL CORPORATION..... ./...Common
fjve-day
wofk
six-hour
week
day
and
a
spread employment. The assump¬
tion is that there is just so much
work
to
be
done, and that it
should 1 be
each
thinly
worker may
Of
,
course
the
spread
get
so
some
that
of it.
assumption
is
..
......
Common
6,200 Shares NATIONAL CITY LINES, INC........ Common
to
as
so
large number Mthe offerings which we handled have been
brought to us by other security firms. We invite inquiries from
those who may
interested in developing this profitable
phase of their securities business. A booklet analyzing Special
and Secondary
Offerings will be sent upon request.
A
false,
Prosperity depends on in¬
creasing the total of goods and
services
may
so
have
a
that
each
one
of
us
greater amount when
the total is divided among us.
It
is still true -that self-sustaining
high- When jobs flow from the combination
broke out in Europe in 1939 of capital and enterprise operat¬
average . factory - wage
here. ing.in, a friendly political atmos¬
24 hollars, and in 1944 it had phere.
levels about twice as
^contemplating the re¬
war
funding of an old bond issue, or
the
the flotation of a new. on^,.it will
probably prove wji ser to go was
/company
-
>
'Workers
that experiment left our investors
the country can be enlisted
simultaneously, a great mar¬
ketability is provided. Your customers and your firm can
profit through skillful use of Special or Secondary Offerings
out
Shields & Company
;
,
THE COMMERCIAL & FINANCIAL CHRONICLE
2612
would suffer
tion
Conflicting Views Again Feature
who
hundreds
and I
graduated
i
of such training
four years
after
I
familiar with their war
am
service.
■:
.<
...
•
judgment that the cur¬
proposal in
It is my
rent discussion of the
public prints is largely beside
Proponents are saying
that the country must be prepared
the
the point.
against aggression..The opponents
are
condemning the proposal on
grounds that it will create a
military caste, that it is undemo¬
cratic, and that it may create a
warlike spirit inimical to peace.
the
Ail
this
■
the
misses
'
with
Of
issue.
Why. debate that accepted
Why argue that universal
fact?
train¬
That has
ing's "un-American"?
weight if we need such train¬
no
The real questions are: What
preparing for? and, Is uni¬
versal training the best method?
The essential fact is that com¬
ing.
we
are
pulsory military training is of lit¬
tle value as a military measure.
proposal is unsound as a pro¬
posal for protecting the country.
There will not be another war of
The
for 25 years. By
the time we shall have need for
combat
troops,
the compulsory
training now proposed will be ob¬
solete. Any war of the future will
be a technical war, with planes,
any consequence
„
dreamed of
lion
for
and
artillery
ships,
men
the
simply
is
future
distant
Harbor, when we had
to build a Navy
and Airforce
before we could get within thou¬
sands of miles of the enemy? Just
what would we be "preparing"
truth
The
that
is
.
a
are
And they are won by su¬
There is no way to "prepare"
nation
for
modern
except
war
to
keep the entire manpower con¬
stantly in uniform, with the latest
equipment. Our ships are manned
by boys who never saw a ship
until
a
few
months ago.
Our
front-line troops are boys who
had
seen
never
until
rifle
a
a
tank
few
shot
or
months
Alaska
could
that
and
by
the
of
way
Germans
,
bomb
Pittsburgh or Wash¬
ington from Belgium.
There is
nothing funny about war, and
certainly there is nothing humor¬
about the accidents and losses
ous
caused
blackout regula¬
tions, but it was a humorous sight
when airplane Spotters were sta¬
tioned on top of the war build¬
ings in Washington. I have an in¬
telligent friend who actually /told
me that the Germans were going
to invade us through Mexico.
I
told him that I was glad they were
by
our
coming that way, since they would
be stopped in Texas by the South¬
football
In.
which
sand
team.
there are bags of
our
military minds
Navy, submarines
th
a
back.
let
Not
5,000,000
advocate of this universal
one
training
what
and airplanes
invade us?
men.
has
scheme
.
suggested
are•• to do?
trained ;• men
the
Inconsistent With Present Policies
The
policies
leaders
of
for
ments
military
our
their
refute
own ' argu¬
training.
compulsory
refused to let Con¬
gress pass a law to require one
year of training for young boys
before they were sent overseas.
Thousands of our troops have gone
overseas
after less than a year's
They
flatly
training, while other thousands
have been'kept
at home after
much longer
three
training whatever.
perior tanks, artillery and planes.
France might have held out if she
had had no compulsory training
and had put the cost into planes
and tanks.
England has no com¬
pulsory training. She kept back
had
a
first-class Navy and a handful of
could
Spitfires
that
German
planes.
outfight the
Training
had
nothing to do with it.
skull Mussolini
for years,
The
num¬
drilled his troops
pounding his chest and
telling the world what they could
do.
.
ican
does
boys who had been small
when Mussolini started
children
training his troops.
Nor is there any; point in
that we would have been
if
saying
in
it
hominem
be
of
to
appears
necessary
inducting the President of
States.
They should
be so moved.
The judgment
United
not
of
military
should
be
never
close
too
are
such matters
on
men
decisive.;. They
the
to
matter
per¬
sonally. Military men do not often
oppose
schemes: which call for
more officers and higher ranks.
Public
r
Uninformed
the training
received. I have
One had no military
even
use
have already
sons.
since
volunteered.
he
;
second
A
had four years in one
son
of the
Unest college ROTC units.
He is
an officer in the South Pacific, in
service in
no way connected with
years' training. He was
his four
prepared for it in 17 weeks after
be left
The third
college.
son
had
not
through.
thought
the
matter
War is a horrible thing:
We
no
want
of it.
more
We will
proposal which seems
to hold some promise of stopping
it, even when the proposal is
worthless. There is one aspect of
grasp at any
this situation which is outrageous.
The
of this
backers
program
are
openly
urging that pressure be
brought on Congress jiow, because
after peace comes the people will
ing.
no
his
with
connected
way
ROTC
Any reader,
stances.
exceptional
can
cite
cases.
similar .in¬
They merely suggest that,
tnat
they
far
efficient
ning, to invade Europe? Or Asia?
If so, it is shins and planes and
artillery and t^nks we will need.
or
think
cannot
The moral character of a
railroad
to
straight.
proposal
scheme into law
this
•is self-evident.
•
method of
Serious
Objections
Since universal-training is
necessary
no•
other
necessary.
as
a
military'
argument
not
measure,
against
it
is
"But it might be noted
that
as
there are serious objections,
follows: 0?",
(1) The financial cost would be
enormous.
Supporting and mainf
taining
an army
than
million would be
a
burden
(2)
on
The
of something less
a
heavy
the taxpayers.
It
native.
is
and
extension
the
expansion of the college ROTC
program of training reserve of¬
ficers.
is not
It
solution.
a
It is
simply not adequate as a program
to
meet
any
general need fcr
preparedness. After observing the
program for 20 years I am some¬
what
doubtful
much
economic
value
whether
the
is
it
of
of
Germany
could
The might
But
there
is
solution
a
of the
problem of preparedenss. It will
p r o b a b 1 y
be discovered and
worked out by the Army after the
country has rejected this unsound
scheme
for
universal
training.
Meanwhile
we
be
must
sure
to
stop any railroading of the scheme
into law.
A <■ / A
A.
not
of
' ;
'
HON. SINCLAIR
military
am
very
been
as
WEEKS
Massachusetts
u. S. Senator from
far
universal
peacetime
training is concerned, I
strongly, for it and have
ever
sion
in
since' my. return
from
Preparedness
ventive—as
timable
we
'
■
the
in
of
control
such
is
as
(and I
necessary
and
States
Finally, I think the
which
in
Federal
the
not' to
Government.
finds
world
the
tary
ing so that
con¬
be
sacrifices
so
tors, American Water Works and
Electric Co., Inc., New
York
many
■
of
men
I'"'1
,11
at home may con¬
country to live in
a
and
II. IIOBART PORTER
Chairman of the Board of Direc¬
figty jng, and dy¬
unmindful of these
want
American
more
in
the young
we
tinue to have
—can we
them
on our
sad commen¬
so-called education.
pre¬
is
,/;A'A:.'\AA;;- ''-A : '/-A:
*
this country gre
to
boys
send
into
(.Therefore, believing
as
yet
action
without adequate training?
A.A
.
I do in
the necessity for an adequate pre¬
paredness program if our country
is to preserve its "liberties, I shall
continue to work for the adoption
universal
peacetime military
that we may never
faced with a situation
training
again
such
so
be
as
that which confronted
,
in 1917 and again
us
in 1941.
Hobart
H.
c. b. Mcdonald
r
McDonald & Co.,
time
and
that
if
Cleveland/ Ohio
feel
world
;■
peace: is to be
Porter
I believe it is
' I would strongly favor compul¬
sory military training in peace¬
highly desirable,
if not absolutely necessary, for the
future security of America that a
system
of compulsory
military
training be employed by the na¬
in
tion
peacetime.
:
-
.
-y
HOWARD CASWELL SMITH
maintained,
be
must
»•_
prepared
'
V.
to
Chairman
State Chamber of Commerce
j
11 have read with intense inter¬
necessary
the
est
maintain
symnosium
of
Nov.
To begin
that
lot
a
wise
the whole
c 0 r r
na¬
of
substantially
discipline, and this would
as
young men at least one
of discipline that should go
in influencing their later lives.
our
of
in peacetime.
i
als affected.
danger of developing
n
ourselves
also pass.
uni¬
i
n
5.
g
of
The
expressed idea that if it
is necessary in the post-war
it
to
me
develop
had
that the utili¬
zation
and
quered, the necessity of protecting
against aggression will
nec¬
to
seems
a
that if and when
Japan
are
con¬
The theory
4.
Germany
.^or us
have
r a
individu¬
militaristic caste.
versal military
t
C. Smith
The
3.
this
'
If it is
to
Howard
of life of
the
I have g
European pat¬
tern.
rou¬
tine
the
follows
with the
ordinary
which
line
Interfer¬
2.
very
distinct horror of anything in
conscrip¬
ence
definite ideas on
the matter of compulsory military
training
the
tion.
President, Auburn Trust Co.,
Auburn, n. y.
have
Objections
theory
to
EUGENE C. DONOVAN
I
follows:
1.
year
far
be
to
seem
C- B- McDonald
ex¬
They
pressed.
faults today js
give
your
espon-
dents have
great
lack of,
idea
which
of
One
tion.
our
the
to
the
for
note
to
the objections
do
discipline
with
it would seem
military train¬
would
issue
your
23.
seems
ing
military
on
training. published in
the peace. In
addition to
me
Committee
Special
Military Affairs of New York
on
eVersteps may
to
of
<
enforce what-
;
better
strong
be
world
protection, it
done
by
large
a
public
rather than by the citizen-soldier
plan of universal military train¬
ing, with the added argument that
with the progress of scientific war
maintained
army
one
between
close of
citizen-soldier's
a'
by
the
knowledge
would1 become obsolete in
few*
•jW
it
for
a
very
rs.
,
time most of those,
^.e same
the
I feel
reasonably sure that a set
period of universal military trainirig for every boy of, a certain age
would not be strictly confined to
the .military
in
hear
Sinclair
Weeks
not have another
chance to preserve our liberties.
J
A4
"
-1
4
*J
1
belongs
"I 'think
firmly believe it should be very
limited) belongs to the several
On the question of the dangers
remainder of their college course.
ever
1940-41, I am
positive we shall
home.
education
,
en¬
were
individual
Those who wish to follow, Jgrge navy and a large army must
be maintained, thus admitting the
a
military career could possibly,
be allowed to continue during the fallacy of the argument.
an¬
are
old-fashioned, but I
be
may
the
pose.
And
we
perhaps
#Kpink that the dangers will
Eugene C.! bohovan
first
ti^pa^ieem to be perfectly will-,
year
of
^..acknowledge that a very
college, would answer thd"pur-j
should not
in
is
think control of the education of
continuation
training—I
feel quite sure
be
to
How—when
of
cludes univer¬
war.
best
war
ing of college,
and perhaps a
sal
gaged
as
h i g h school
and the open-,
had
preparedness
h i c h, of
course, in¬
other
value
ways.;.-.
the
—w
now
the
is
far
cerned.
This means training our
yburig men to. defend their coun¬
try and, incidentally, the very
training itself must' be of ines¬
riod
1919.
adequate mili¬
tary and naval
we
trainee
susceptible.
mess
vacation pe¬
with
we
I
the
of
most
itself today is a very
essary
if
ing'materially.
invade
A;,(3) A minority of the trainees
instruments
use.
mind
country,
unprepared to
the degree that
vaded from overseas?
par¬
Preparedness Best Preventive
the
The Army
itself scuttled the program after
we got into the war.
to
again caught
cost
in
,
college or the Army.
would
not the kmd we build now.
personnel—
complicated
to
who are opposing uni¬
versal training are injuring their
case
by proposing a poor alter¬
be. very great.
OpAS.'t possible, after the past trainees would beThe majority of
taken fro^ pro¬
th'ree]jears, that anybody nurses ductive
enterprise.
It, would cut
th£,'?$fiJpsion that we can be in¬ dpiyn the national standard of liv¬
And
ade¬
establishments
such
this, it
i
!
.
,
Program Inadequate
A Those
Had
necessary
national protection..
we. had
point is clear when you ask, what
is this training for? Are we plan¬
men overseas
the 26th Divi¬
now for a war
future is not an
remote
have
now
be'
to
France
the
war
tjre absence of their
As
not
are
see
ticularly since the advent of the
we
training.
These
liberties- without
without trained
other words, there is a
stampede this thing
through now, while the people
aire so distressed by the war and
In
0/2 years in a fine ROTC unit. He
is in the North Pacific doing work
in
cannot
of
As for the general public, they
;
have
in
had 25
years of compulsory training be¬
fore Pearl Harbor A; It simply is
not true.
Millions of our troops
grew stale in Ireland and England
without ever seeing the enemy.;
Training them
10 years before
would not have changed this, The
shape
ad
an
But
uniyersal training
Value of Training?
better
not
training. The Army
He is now an
officer, a flyer doing highly tech¬
nical testing work, all of it learned
They quit cold before Amer¬
,
argument.
ROTC
troops collapsed pitiably when the
she
make
chance
Germans assaulted them with su¬
because
to
refuse to consider universal train¬
men
Germans!
It is unfortunate and sometimes
unfair
thought I ought to have to put
out
incendiary bombs the Ger¬
mans
were
going to drop on us
Frhnee, desperately afraid of the
Germans, bled herself white with
universal military training.
Her
the
AAA
y
the
not won by goose-step train¬
are
no
horse. •' A'
for it,
States
United
flying 3,000 miles. Are our
military heads now expecting our
Factor
periority of equipment, industrial
resources
and manpower.
They
ing.
there is
objections, but
point in beating a dead
after
a
fought by the current generation
after "brief training in the opera¬
tion of the latest scientific equip¬
ment.
other
are
the
go
k
Methodist
wars
There
:
notion that the Japs could invade
To
basement
not
or
Jn one . lot, half of them
30 years old or over? Our military
leaders apparently nourished the
do?
to
men
me
quate military, naval and air es¬
tablishments. And, of course, you
army in "time of peace
improve the moral tone
spiritual level of a nation.
V
here.
Thousands
people will be moved to support
this
unhappy proposal because
Army leaders are for it and be¬
cause many prominent people are
million
its
serve
very
large
a
do not
how anyone
in
tnis day and age can even imagine
that any nation is going to pre¬
does not
,
after Pearl
I must confss that I
for the life of
standing
half-million
a
each year from 1918 to 1941?
What use would, they have been
men
ern
sound procedure.
Manpower Not Decisive
tnree years to
been to have drilled
my
annually as preparation
mechanized war of the
ligerency and aggression.
! (6) The maintenance of
of
get 10 miles into Germany.
' AA
J'ust what value would it have
un¬
a
population
400,000,000,
about
mil¬
rifles
Drilling
now.
combined
a
,
by disadvantages of a moral
and spiritual character.
(5) The creation of a military
spirit may lead to national bel¬
^
abroad
America must be protected.
course
' /
y
:,;'
y;
■
; j (4) The physical benefits of the
training might be more than off¬
England, 20 miles away, in four
years of trying, It has taken England, Russia and the United States,
10
Questions
The Real
it.
set
(Continued from firpt page)
known
serious interrup¬
a
of' their
college education,
ahd many would never complete
:
Thursday, December 14, 1944
v
»
1
•
,
1
1
training. Already we
that- the period
of. militarism
and
the aggressive
by Government
authorities, it might be pointed
out
that while this. nation has
of
abuse
power
taken active
•
'
■
j
;
participatiph !i!'
in
'ii'U
• j
_
t_ • _i._
i
seven,
„
■
_
i
comments
might also be used for educational
which,
purposes
r-
r3
-i
/»L
1
to
,
me,
fiv-.-.
means
1 *'!****>.
th
P
exception of Jhe, Mexican,.War, of
.
Volume 160
1847, has
gression.
Number 4342
supported
never
.
Need
of
THE COMMERCIAL & FINANCIAL CHRONICLE
able
ag¬
cations
Preparedness
argument has been pre¬
sented that the mere training of
the youth of the country for one
will
not
question
aggres¬
nations from going to war. No
prepared for
complete
entered
can
the losses of battle.
War.
World
and
In the First
In
the
present
Allies, particularly Eng¬
one, our
land, have
carried
the
umbrella
a "period that enabled us to
make preparation^ arid! train our
over
.
Without foJhat
men.
umbrella
would have been attacked
we
on
our
soil beyond doubt.. Had there
such a plan of military
own
existed
.training for the young men as :is
now contemplated in tne measures
before
Congress,
training
that
period
would 'have
of
im¬
been
measurably reduced, and it is failto presume that
today we would
have been much farther along in
efforts to reduce
our
and
shorten
the
enemies
our
burdens
of
war
than is at present the case.
To take a quotation from
Bible,
Mark 3-27: "No man can
a strong man's
house,
and spoil his goods, except he will
first bind the strong men and then
he will spoil his house."
into
enter
It would
sound
the
seem
of
consensus
judgment that in future
ourselves
be
we
for
that question
answer to
made
because
we
cannot
ing
hence
able
course
no
conscript army will be
organized attack by
cars, let alone by
tanks and kindred weapons.
Fight¬
motor
,
the
cost
of
success
would be much
such
part
higher than if
preparation
this country.
It has been
his
on
had
>
•
no
existed
!
\
■
•
in
I
.
-
suggested that the
whole idea is little better than i
a
plan for further New Deal regi¬
mentation.
on
Military, Policy of the
House of Representatives is such
that this charge rather falls of its
weight.
Practically all those
charged with the
military protection of this country,
officials who
whom
best
are
class
must
we
as
have
we
European
c,
condemned
nations,
many
have fled.
Please
of
;
and
-
'
me
•..
The
development
of
Col. Frank's statement.
dustry
rather
which
than
should
be
:
•
It is in¬
manpower
conscripted
if
civilization
interest.
where
differences
of
opinion will be obliterated. Jeal¬
ousy and irritation are still likely
to remain a part of human nature
and we are not likely to foresee
the
from
sources
will
arise
which
much
have been
able
better
we
in the last
do
to
trouble
than
.30 years,
and the theory that mil¬
protection is not needed
itary
to
seems
and
I
me
to flout human nature
sense.
common
-
'■
■
credibly informed that in
am
the 4,000 years during
which his¬
tory has been available there has
been less than 400 years without
!.
war.
'\v v
•
r;
I cannot conceive that there ex¬
ists among those who have care¬
fully studied history any strong
argument for limiting military and
naval service to volunteers.
Cer¬
it
tain
is
that
if
in
volunteers
upon
had
we
the
relied
present
would have failed miser¬
war we
a
is
man
an
ROBERT E. DOHERTY
President, Carnegie Institute of
Technology, Pittsburgh 13, Pa.
than
from
neither better
nor worse
ordinary communities, except
that
camp
discipline
is likely to
reduce such dangers.
'
for this country -to pursue.
nearly every family in the
country has made its contribution
military service has immensely
labor of
producing the necessities of war
in our factories, together with the
sense of individual responsibility
stimulated the auxiliary
in the maintenance of freedom,
Equality of Sacrifice
There is
versal
nents
moral phase to-uni¬
a
which
training
seem
have
to
its oppo¬
sight of
lost
and that everybody has a
duty to perform tq his country in
maintaining such liberty and
rifice
peace,
whether
acts in
a
best make the sacrifice.
if
more.
have
we
now
and
years
recognize
been
that
10 millions of
at
wqr
we
men
Further¬
in
rying
tr
ition
war
to
■
•
be
more or
force.
done
less by
More¬
over,' after the
J.
Ray Cable
it
experiences of the past quarter of
a
century the United States will
impqssible
feel that it must keep "its powder
make
when
cannot
overseas
their
opinion
and
can¬
known;
the
post-war world
yet be pictured clearly.
I am Quite confident that
the
smaller standing arhiiy than would defense which peacetime conscrip¬
otherwise ;toe necessary for suit¬ tion is supposed to procure, can be
man¬
recently
reasons
by General George C.
University of Minnesota, School
of Business Administration,
Minneapolis, Minn.
1
that
a
Relative to your symposium on
na¬
that
compulsory
has
does
military
training in
peacetime, ; I
not
have
H.
L.
than
have
.
had
make
thorough
study
of
all
angles of this
compulsory
,.
to
a
nation
a
not
time
Amber
war.
&&
question,
though I am
«
„<
l@tii
•
I
should
we
*
well
dry."
in
The arguments for keeping
readiness for whatever
may
happen
admit of
pared
sible
have
too overwhelming to
anything more than close
are
take action
this
vent
on
while the
in
war
re¬
t
Blakey
best be provided for by com¬
"
pulsion.
Having said this, I would like
to plead for caution in the par¬
ticular
plans to be set up. It is
not time yet for a blueprint!
We
do not yet know the size of the
ize
men
like
t
,
people.
our
high
school
college training, maybe spend*
ing several
s
some
combining military
training along- with
and
and Navy Dep a r
that
the
of
I think
turn. The War
would
G.
better way of
are
overseas
am
would militar¬
Roy
our
who
men
I
present. plans
progress
and before
Never¬
some
matter
summers
instead of
a
to
solid year and avoiding too much
get the matter
military domination of the train¬
c
t
e
d
upon
ing, might meet
the
is
jections.
at
and
ob¬
' W"
fever.
TOM S. HARBISON
of
President, The National Bank
of
South Dakota, Sioux
Falls, S. D.
1 favor
■
,
g
have.
which I
understand is what both the Army
and Navy are
proposing, I am
definitely opposed. I see no need
of young men giving a whole year
of their lives entirely to military
training and "abandoning every
other
method for improvement.
Certainly military training should
not take up a man's entire time
who is going to be a citizerr.and
who very likely will never!.have
the opportunity io perform
seryice
as
a
soldier; thereS^e I yyould
consider only a plamtwhich pro¬
vides one year of military service
with
of the
some
.
a
kind,
any
minimum
no
a
universal
definite
should
be
included
existed
made
to
the
meet
all
demands of the situation.
;,
college
in
the
same
period.
It is my firm
belief that the
and
men
men
wo¬
in
now
service should
have
in
a
voice
deterkiin-
ing the policy
a d o p t e d. lt
would, in my
opinion, be
mighty pre¬
sumptuous
war
the
university
summer camps
of
before
in
probably sup¬
plemented by
general application of some¬
thing like the ROTC program
be
I
the
prog r aims,
other
could
to
as
and
finterference
interruption of e'dkeation and
which
training.
idea
type except, I think, it could and
more
can
pre7
future
theless
-
and cautious demobilization.' This
to ; a big army and
navy force far .into the future.
It
pos¬
fearful
not
all
up
as
to
wars.
training for peacetime re¬
sponsibilities.
I believe that a
.adds
be
pre¬
should
substitute
this will have
—
and
ans
Much of
to
of
not
the
ROY G. BLAKEY
there will
tendency
of
compulsory
military training
without
varied
from
in. the
sons)—are still
for
men
On the basis
all
peace.
passage while
presumed that
the development of military train¬
and
Marshall.
of one year
cessary to the
lesser of two evils.
ner
trained for
war
car¬
on
ciples and
practices of
.when
an
feeling
country
programs nec-
am es¬
military
compulsory
training in peacetime in the
well stated
while
far
with the prin-
war,
favor
somewhat
a
order,
inconsistent
are
Anthony J, Dimond
I
given a good deal of
thought to the subject of compul¬
sory military training in peace¬
time.
Definitely, I think that we
furnishing
the
from their br-. lis
taining
globe and
process
ing as proposed wquld permit the
maintenance'of t !' very
much
.
the, problem of main-
at ail
we
naturally
of
be
being
dinary walks of life and require, I to look at the
Rev. W. A. Lawrence
to fight our battles,
that, matter objec¬
sacrifice so far exceeds any
sac-J tively; when those who are most
rifices
incident
to
the military concerned
in
that
they have
training suggested that any honest made the greatest sacrifice (and
man must
acknowledge that the if the bill is passed
they will be
military training plan is much the called upon also to sacrifice their
is
large army
quarters of the
them
It
a
After the business
navy.
is finished
help
thatwe
txaReri,
sity of maintaining
the
f6t four
have
President, Missouri Valley College,
Marshall, Missouri
>
op¬
But I
•
war
use
is
J. RAY CABLE
to
pecially, oppo s ed
to its
probably
strongly favor compulsory mil¬
itary training in peacetime and
a
plan of such training,
properly framed, would be highly
rewarding to both the nation and
the boys. r-yS./C, ■
1
am
freedom of action for that
period
for
is not
I
believe
posed
|
can
Doherty
I
that I
United
when he
E.
emeregency
States.
in his life
Robert
say
these
now
as
to
not that duty
or
boys
;
,
JNO. J. TIGERT
I
limited way to a curtail¬
ment of the individual's personal
;
President, University of Florida,
Gainesville, Fla.
there will still
as
j
convinced that
doing considerable
reading on the subject of peace¬
time military training lately, as; 1
consider it a matter of great im¬
portance, and
I have been
measure
■
de¬
a
prevents
and
times
men
military training. I do not believe
that compulsory military training
war
wish
Hon. ANTHONY J. DIMOND
Delegate from Alaska in Congress
co m pulsory
training has a
tendency to
that
sachusetts, Springfield, Mass.
entirely, namely, the teaching of
cannot be maintained without sac¬
,)!;■;.
of
political and economic ideologies.
the
father of two
a
as
1 sory
military train¬
ing is more
apt to go to war
Bishop, Diocese of Western Mas¬
the axiom that liberty
and peace
but
tion
For a long time to come Amer¬
ica will be faced with the neces¬
RT. REV. W. APPLETON
LAWRENCE, D.D.
doctrination
to
higher
judgment, this
y
Co., Pittsficld, Mass.
feel that
I firmly believe that universal
military training properly worked
out at this time is the best course
would lend
program
compu
In short, military
contacts.
camps are
a
easily
opposed to military train¬
ing in peacetime. I am not speak¬
ing as President of a corporation
■
free
of
training. I also
who mixes in the life
is
Such
am
in camp who are prone to
temptations, I maintain that
such
that
to
I
to
bound to creep in among the
community
ice.
itself
would
camp
case
HARRISON L. AMBER
war,
be a
theory that the roughnesses
any
which might be carried on con¬
currently by the Army and Navy
young
men
are
being
trained for military or naval serv¬
President, Berkshire Life Insur¬
temptations
exist
in* the
every-day life of our citizens and
of
fearful of any edu7
for citizenship
while
'S:SteSS
-VV;-.'"'V/-
no one
in
the
attend
school?.
In my
adaptation could well be made in
the-; interest of training for lead¬
ership.' »:.;
1r V
'i
are
:i:
undermining the morals and ethics
our youth will not in
my judg¬
ment stand the test of experience.
While beyond doubt various evils
tpen
such
in
wish • to
My
of
that
period
needs
who
peace.
expert on any
such
am
program
"
-
that
Certain it is. that the fact
ably.
meet
is that if
f,
..
cational
instrument for
of military camps is in danger of
are
short
a
and
No Threat to Youths
The
main
point
at
issue.
Perhaps
something like ROTO followed by
sire
the
sys¬
nicioys., I
tem will have to be readjusted to
create
anything.
subject, that particularly disqual¬
ifies him from talking about it,
or
holding views in the public
when
educational
fit whatever plan is adopted, but
this is. somewhat secondary to the
I think that
against it.
Those who
that way seem to be in¬
the theory
the
course
light and emphasize the truth of
argument
assume
Of
ance
robot
to :
: seem
The
will
now overseas
in the service.
would
needed, nor
primarily
be
in character.
men
high
bombing
available, favor the
plan of universal military train¬
ing, and that fact is used as an
clined to
be
should
to the planning, and in so far as
security permits, final answers
should
not
be
attempted until
they can be heard from.
;
and utterly opposed
peacetime conscription.: :
:
experts
argue
navy
or
in
absolutely,
as
will
army
from
•
that
it
best citizens,
our
"
quote
.
unalterably,
to
The fact is the compo¬
sition of the Select Committee
Post-War
and
which
which
force
whether
face
to
armed
.
protection
against possible aggressors rather
than sit
supinely by expecting
nothing to happen. We have not
as yet advanced to that point of
prepare
-
theory of conscription has
and today is grow¬
out of date.,
A few years
its
ing armies in the future will .be
read the minds of other peoples
voluntary, highly professional, and
in future times, but certain it is
highly
paid,
and
consequently
that if a nation, such as the United
comparatively small. This is the
States, produces annually a num¬ Whole
tendency, of present mili¬
ber of military trainees who can
tary evolution J' / .)
with relative speed be converted
It would seem to me a shame
into a military trained organiza¬
tion to fight aggression, an aggres¬ that when the best days of eon*
scription' have .passed, .America
sor would count less on a
surprise
attack and would recognize that should succumb to that practice
own
the
have much of value to contribute
says:
"The
raised
been
training would deter the
sor
has
In
the Spanish War the losses through
unpreparedness in every line f 61lowed by sickness far exceeded
has
whether the existence of military
that this country has never been
any war which it
in the last 100 years.
taxpayer
reason of the
millions of
Brittanica, when he
the
run
in
us
that
^
secured in other ways, and I am
impressed by the statement made
by Colonel Frank in his article on
conscription in the Encyclopedia
Deterrent to Aggressors
The
fighting
shape at the drop of a hat. That
is undoubtedly true. It is also true
put
are
would benefit by
military training plan.
The
year
protection, and when the cost
taxpayer is compared, indi¬
to the
/
.
2613
we
Tom
lish
s.
Harkison
f
o
1 k
s
of
at
home to estab¬
training program objec¬
If the Army and Navy has
ajfe, tionable to those how in uniform.
thought of providing educational!1
We must not overlook the prac¬
in addition to
military, training^
I
believe
this
to
be
very
per-
any
tical value of their experiences.
which the United States Govern¬
ment pays
today in buying silver
market^—then the value
tional
in foreign
Reserve
dollar is
The
price
Money?
(Continued from page 2595)
Government for the people of the 1 of our gold dollar
United States, and, since the sus
ity of foreign gold
pension of gold payments by our
Government in March, 1933, our
people
not permitted to obtain
are
hold
or
gold
minor
with
coins,
exceptions.
The gold dollar
ultimate and
is, nevertheless,
legal standard
monetary unit
for the United
States.
This gold-dollar standard
unit weighs 13.714+ grains, fine,
or 15 5/21 grains 9/10 fine.
Since
a troy ounce weighs 480 grains, an
ounce
of fine gold will coin up
into 35 gold dollars—480 divided
by 13.714 +
It is for this reason
that we say that the official price
of an ounce of gold in the United
.
are
and silver coins
hine-tenths fine—that is, one-
of
each
of
various
British
coins
these
is
has
it
and
at
is
a
depre¬
than 50% in terms of
more
gold pound sterling.
More¬
the United States has been
cooperating with Britain in main¬
taining the value of her paper
pound at approximately $4.03 re¬
gardless of what its real value in
a free market might be.
But in
the case of all depreciated foreign
paper currencies, their price to us
weight of
dollar
our
standard gold
Jan.
31, 1934—an act
called devaluation of
on
commonly
the
gold dollar— an ounce of fine
gold would coin up into $20.67.
This meant that the standard gold
dollar weighed
25.8
or
By
the
23.22 grains, fine,
grains, nine-tenths fine.
act of devaluation, the
President made
gold coin
the
an
into
up
ounce
of fine
$35 instead
of
old
$20.67.
In other words,
he raised the gold-dollar price of
an
ounce
of gold approximately
69%.
Stated in other terms, he
the weight of the fine
gold dollar from 23.22 grains to
reduced
13.714+
grains, a reduction of
approximately 41%, thus giving
the United States a new gold dol¬
lar (not coined) which is approxi¬
result of
devaluation
our
greater than it
Would have been had
valued
dollar
our
of
not de¬
we
by
approxi¬
mately 41%,
.
the
raised
tariff
while Secretary
Reciprocal
with
Hull, through his
Agreements,
Trade
worked to lower it
istration's
hand
one
other
the Admin¬
as
hand.
It
is
not
many
probably has noticed
in newspapers and
times
elsewhere "the statement that
were
given
we
59-cent dollar
a
by
the President's act of devaluation.
of silver in the market
been much less than $1.2929
fine ounce, which means that
the silver dollar has
a
face value in
contains.
the
of the
silver
it
And the discrepancy in
been even greater.
course,
But the value of these silver coins
in terms
of
should find it
to ship out silver coins
however,
If,
necessary
bullion
as
we
meet
to
foreign
obli¬
gations, then we might be com¬
pelled to accept the market price
for the silver content of our coins.
today, our Treasury
accept our domes¬
However,
as
is
so
commonly
The extent to which it has
done.
succeeded
in
tariffs in
the face of the tariff created by
lowering
devaluation of the dollar is
ter
of
the
calculation
degree
Hull
has
effect what
tion
of
able
was
devaluation erected
iff wall of
tive and
to
undo
in
devalua¬
dollar.
Since
a general tar¬
69%, and since Secre¬
tary Hull's reductions
able
by
Secretary
to
done by
gold
our
mat¬
determined
which
to
been
a
are
selec¬
limited,.it seems reason¬
that he has not
suppose
tion
the
of
dollar
differs
in
one
important respect from the ordi¬
nary
raising of
that it makes
to
a
our
foreigners.
'
tariff wall in
dollars cheaper
V;
cost had
our
valued.
de¬
dollar not been
It also
means
that if
we
buy foreign currencies they cost
lis
69%
than
more,
would have beeh the
not
devalued
otherwise
case
had
we
dollar; this is
buying foreign
gold dollars that
weigh only 59% as much as pur
preceding gold dollar.
because
we
our,
are
with
currencies
silver dollar.
In other
words, two
50-cent pieces, or four quarters,
or ten dimes do not
weigh 412.25
grains; they weigh 6.47% less, or
385.8 grains, nine-tenths fine, or
347.23 grains, fine.
The United
States, like other nations, found
it advisable to make lightweight
money of its subsidiary coins so
that they would not be exported
easily.
In this manner a nation
isr, spared a considerable expense
in- coinage and, since the coins
are
readily convertible. into the
standard silver dollar; this differ¬
If, for example, the interested
ence in weight has no disadvan¬
reader will turn to the foreign
tages at home in so far as the
exchange section of his leading
value of the subsidiary coins, as
newspaper he will find that the
British pound sterling in gold is compared with the standard sil¬
ver or gold dollar, is concerned.
now worth $8,237, whereas before
we
devalued
worth
$4.87.
manner
in
qfj.jforeign
terns
of
our
dollar
it
was
This illustrates the
which
the
currencies,
gold,
was
gold price
also
raised
in
69%,/
Since
a
troy
ounce
of fine silver
into $1.2929, it natu¬
follows that the
market
value of the silver in
worth
a
dollar
a
it
is
not
probable
against these notes may be com¬
posed of United States Govern¬
the
stances,
many
a
effect
volume
of
equal to 5% of the volume of the
in circulation that are not
otherwise secured by gold certifi¬
cates. This redemption fund dan
notes
part of the 40% reserve
gold certificates which must, be
held against the notes in actual
count as.
in
circulation. 1/,
are
of
silver
our
and
paper
which would have to go
currency
his
(specifically, from Federal Re¬
agents), when needed, and
the demands m5de
upon the Federal Reserve banks
for paper money. In general, the
in response to
a
na¬
demands
it will
of the na¬
notes
likely have in his purse are
Federal Reserve notes, silver cer¬
tificates,
(of
bears
the
rency")
gold in international
in lieu of + trying to
cheaper currencies, and
our
use
exchange,
utilize
our
by this system prevents a depre¬
ciation of
our
domestic
currency
gold. This is the heart
system of indirect exchange
of our cheaper currency for gold.
in terms of
of
our
If, at any time in the future, we
find our gold supply so
should
depleted that we could not meet
our
foreign obligations in gold,
then it might become necessary
for us to attempt to meet our for¬
eign payments in terms of sil¬
"National
name
of
bank
normally issued by each' of the 12
serve
serve
to call for special
treatment today because the Gov¬
ernment has recently engaged in
issuance
an
Silver Certificates
,
finagling in connection with
some
of
the
began in December, 1942.
Prior
to that date, the Federal Reserve
action, there is
would
currency
-
profitable to the reader.
It may
suffice to say that normally the
nickel weighs 77.16 grains and is
composed of 75% copper and 25%
nickel, and that normally the
penny weighs 48 grains and is
composed of 95% copper and 5%
tin and zinc.
These minor coins
are
silver
our
convertible into our
dollar and indirectly into
readily
standard gold dollar, with
the
value
of
terms
of
consequence
these minor
our
most
that the
coins, in
currencies,
valuable
is
regardless of any ad¬
justments in weight or content
which
the
Government
has
deemed it advisable to make dur¬
maintained
ing
the
which
period
certain
of
war
in
have been
the
metals
unusually scarce.
The
Paper Money of the
United States
We
have
seven
kinds of paper
redeemable in silver coin.
Federal
Reserve Bank Notes and
"National
National Currency rather than the
silver
are
and
notes, previously issued, had
retirement,
but, because of this recent trans¬
been in the process of
in which case silver would
presumably go at its market value
our
in
bank
relatively large
volume in circulation.
Moreover,
the name of these notes is today
misleading—they bear the name
ver,
certificates, which orig¬
1878, are issued by the
Treasury, are backed dollar for
dollar by silver coin or bullion,
Silver
inated
which
notes
except Federal Re¬
money
notes) at the Treasury or, at
money" in redeeming Federal Re¬
notes; only the Federal Re¬
banks can do that.
'
Reserve
banks, just as
national banks issue national bank
notes, happen
but
any Federal Reserve bank.
The
general public cannot obtain gold
certificates
as
part of "lawful
notes,
-
our
serve
Cur¬
and United States notes^
Federal' Reserve'
banks
Reserve
and are re¬
deemable in "lawful money" (any
Federal
to
were
only-of
not
also of the Treasury,
Federal Reserve bank
which the latest issue
notes
we
export
-
the
These
banks.
liabilities
are
Federal
the
most
unable
to
if
discount
a
Reserve
Federal
The notes which the reader will
the gold.
In other
words, the Treasury stands at the
international boundary line, ready
at
transmitted from
are
general public through the vari¬
ous
banks which belong to the
Federal Reserve System to the
purse
name
banks
serve
tional bank notes outstanding.
If
a national
in
notes
Reserve
by the Federal Re¬
from the Treasury
obtained
serve
;•
■.
Federal
These
the reader should find
it the
redemp¬
certificates,
gold
in
fund
tion
there
currency,
considerable
a
to
years
retirement' of
is
banks to maintain with the
serve
United States Treasury a
in¬
some
The
requires the Federal Re¬
law also
public, although
there are still some outstanding.
They are issued today in a re¬
vised form only to Federal Re¬
requires, in
so-
defined
as
in the Federal Reserve Act.
general
but since it
certain
or
eligible' paper
called
his purse.
Gold certificates have
been recalled and may not be held
by
securities
ment
that
varieties of paper'money in
seven
people cannot ob¬
100%
assets which the banks must hold
Reserve
would have all these
person
American
security
tain—the remainder of the
tional bank which issued it.
A^/a result, it is commonly anA is selling on the open market at money in circulation in the
prpperly said that the devalution $1.2929 per ounce.
If silver is United States. Some of it "has
Today
secured
certificates—a
gold
the
are
notes, issued by Federal Reserve
banks..."'':1
;■/
equal terms with our
currency on
dollar is
only when silver
Federal
tic silver coins and also our paper
will coin up
rally
and
notes
note
a
weight of our gold dollar approxi¬
mately 41%, this means that for¬
eigners can buy our dollars for
41% less than they would have
national
on
and
.
by banks
notes, issued by
banks; Federal Reserve
bank
probably have a greatly depre¬
statement, though com¬
Our Silver Money
ciated value in terms of foreign
mon, is inaccurate and it has mis¬
The silver dollar weighs 371.25
gold currencies.
Our paper cur¬
led many people.
The new dollar,
grains, fine, or 412.50 grains, ijine- rencies doubtless would have still
as everyone knows, contains 100,
tenths fine.
Since a troy ounce less value since paper is paper,
not 59, cents; what is true is that
the new gold dollar is only 59% weighs 480 grains, a fine ounce of and silver is silver.
silver will coin up into $1.2929,
as heavy as the preceding one.
fine—480 divided by 371.25 equals
Our Subsidiary or Minor Coins
Another thing
that has con¬
1.2929.
Silver coins, like our gold
fused the general public is the
It probably is not worth while
coins, are nine-tenths fine, but to
relationship of a 59% gold dollar
say much about our subsidiary
since we have shown the principle
to the 69% increase in the goldand minor coins such as nickels
of calculation in connection with
dollar price of an ounce of gold.
and pennies.
In recent years the
The relationship, simply, is this; gold coins, it need not be repeated Government
has
changed
the
in respect to our silver currency.
It
requires approximately 69%
quality of these coins from time
more than our new 59% dollar to
Perhaps the only thing regard¬ to time with the consequence that
equal in weight the preceding ing which the reader should be any attempt to describe the par¬
warned
is
that
our
subsidiary ticular mixture and weight of the
gold dollar which weighed 23.22
silver
coins, are
approximately nickel and penny at the present
grains, fine.
Since the President reduced the 6.47% lighter than our standard time would not be particularly
Such
these notes are not fully
bank
carry
instead
Administration,
Those notes issued
any
the
by
national
bank
issuing Federal Re¬
bank. To the extent that
serve
of 1890.
than
against
circulation
actual
in
notes
the
less
not
certificates
gold
outside
Treasury, if issued
gold certificates, silver
certificates, United : States notes
(greenbacks), and Treasury notes
are
of
reserve
a
40%'in
currency
stands ready to
gold dollars and then ships gold
low-tariff
a
paper
gold has been main¬
stand¬
ing ready to exchange gold for
silver, dollar for dollar, directly serve banks in payment for gold
or indirectly.
Although the Gov¬ which the Federal Reserve banks,
ernment, since the suspension of as monetary and fiscal agents for
gold payments in March, 1933, the Treasury, must turn over to
does not now exchange gold for the Treasury when
they receive
silver directly, "the United States it through importation or" other¬
has evolved a system of indirect wise.
Treasury notes : of 1890
exchange
which
thusr; far has have been called for retirement
maintained
the value of silver and
are
rarely seen.
National
coins in terms of our gold dollar. bank notes are also
being retired,
tained by the Government
correct, therefore, to speak of this
as
of
kinds
all,
mar¬
which
of subsidiary silver coins
case
has, of
excess
of the
value
ket
generally had
Administration
mately only 59% as heavy as the
been able to overcome the effects
gold dollar that had existed for 97
of devaluation of the dollar. ' The
years prior to the devaluation of
type of tariff erected by devalua¬
1934—since 1837.
The reader
present standard silver coins
has
a
large portion of the
since we have been using
a
the value
per
as
approximately 35 cents.
or
years
the
tain
banks.
issued by the
During
over,
Since
we
made
foreign ^cur¬
alloy—an ounce of gold/ contain¬
rencies more expensive to us by
ing one-tenth alloy, would yield
devaluation of our dollar, we, in
only $31.50 in standard gold dol¬
effect, raised a tariff wall of 69%
lars, each weighing 15 5/21 grains
9/10 fine, and 13.714+ grains, fine. against the imports of commodi¬
ties and services.
Much current
Stated in another way, if we allow
discussion regarding the policy of
one-tenth for alloy in our ounce,
which would otherwise yield $35, Secretary of State Hull in lower¬
ing tariff barriers omits the fact
fine, we would get $35 minus onethat
the
same
Administration
tenth, of $31.50. This divided into
erected a tariff wall of 69% by
480 grains gives us our standard
devaluation
of
the
dollar.
In
dollar of 15 5/21 grains 9/10 fine.
other words, the Administration
Before the President
reduced
the
1.2929
our
Federal
12
our
or
Reserve
Act, which regulates- the' issuance
of these notes, each Federal Re¬
serve
bank is required to main¬
at
.45
gold.
today
pound
pound
paper
ciated
of
terms
in
rates
silver
a
simply
are now
depreciated
have
sequence,
the dollar is 69%
States is $35.
v Since
our gold
tenth
currencies
Most foreign
silver in
of the
inconvertible paper and, as a con¬
The
the
raised the parcurrencies 69%.
banks
Federal
the
Under
it.
been,; or: still is,: issued by the
Government; the remainder has
been; or is,; issued by either na¬
at 45 cents—that4* is the
(perhaps artifically high)
selling
Do You Know Your
Thursday, December 14,1944
FINANCIAL CHRONICLE
THE COMMERCIAL &
2614
words
Federal
Notes.
The
Reserve
reader
Even
these
though
seven
currency
by the Federal Reserve
issue
Federal
Reserve
bank notes under certain condi¬
worth
notes
for
understand
the
picture
The
in
some
cordance
our
nature
of
listed
are
with
the
paper
is
to
all
of
in
the Federal Reserve
against a 100% security, of
any
direct
obligations
of the
United States and up to 90% of
certain
other
types
of
paper
ac¬
relative
banks
im¬
only
by
United
States
Treasury)
5—National
6—Gold
bank
the
the
Federal
("National Currency,"
Reserve
banks,
(greenbacks,
recently
but
by
1890
by
States
346,681,016
126,000,000
*53,000/000
—
——
the United States
(issued
by
the
Treasury)
United States Treasury),
approximately '
•"This volume
by
594,000,000
United
the
(issued by national banks)
(issued
of
issued
—
issued
—
notes
Notes
may
legally
issuable
Treasury)—
notes
—:
bank
banks
Reserve
,
notes
States
certificates
7—Treasury
the
(issued by Federal Reserve banks)—
$20,284,000,000
(issued by the United States Treasury)—1,804,000,000
2—Silver certificates
4—United
which
notes
Reserve
the
be issued by
as measured by
outstanding from
the issuing authorities as of
Aug.
31, 1944:
3—Federal
with
Reserve bank notes may
Federal
portance of each
Reserve
accordance
in
provisions of the Federal
Act, similar to national
bank notes, issued, until recently,
by national banks. Under emerg¬
ency
provisions of the Federal
Reserve Act, as amended in 1933,
the dollar value
1—Federal
These
Reserve
be clari¬
if these
may
respects
varieties
seven
1916.
in general nature, when
are
issued
of
ones
seen, it
the reader
them.
fied
authority to issue them
became effective in
normal
certain
rarely
while
to
tions. The
Rank
may
varieties of
are
,
au¬
thorized
Act
at any time.
purse
Currency"
Federal Reserve banks are
find a
Currency" note in his
"National
;
a
1,000,000
——
—
of
gold certificates outstanding in the hands of the public has been
to, be confused with the volume of gold certificates which .the
Treasury issues in revised form to the Federal Reserve banks.
For example, the volume
recalled
is
and
not
of gold certificates in the latter class
wt
i—1-.e
Now
j
on
Aug;-31, 1944, was $18,812,000,000.
it.
'with
brief description of the
essential characteristics of each of ,
these
a
seven
varieties of
Federal
Reserve
„
our papey
/"/
'
money.-
the emergency recognized
by the Presidential proclamation
nates
Notes
of March
The most important in volume,
as
indicated
in
the
preceding
table,
for the
has
Federal Reserve notes,
first issued in 1914. Therefore, the
reader in all probability will find
one
or
purse.
that
and
are
more
it is
a
on
not
6, 1933, it is still in effect
reason
that the President
declared
Under the normal
the
only against
a
100%
are
issuable
security of
^
|
States bonds bearing the
circulation -privilegethat
it will indicate which of the
Federal Reserve banks has issued
emergency
provisions of
Act, these notes
its face
Federal Reserve note
the
at an end.
of these notes in his
Each note states
the Treasury as secur¬
ity.;
Since this . authority con¬
tinues until the President termi-
I
bonds that may
is,
Serves security
VQlii'me 160
'
for
/
the
;^
THE/COMMERCIAL & FINANCIAL CHRONICLE.
Number 4342
issuance Sof tbank; hotes-^ .•* ;-These
arid Z; a: ■ 5%;
Currency'*
outright fiat money,; a
/.• fact f admitted : under questioning.
by Under Secretary of the Treas¬
Fed¬ ury Daniel ZBell/ No > United
^;-.W
;arfe.:;lIabilitiies'*>bf, both1 the
eral Reserve -banks and^ the/Gov-
States securities*
'erhment,
Federal Reserve bank
exclusively, liabilities of
the
issuing;
Federal
Reserve
banks
until
retired' by; these
•banks, at which time those still
'ih: circulation "become liabilities,
solely; of the Treasury and- part
of what is called Treasury cur-;
rency.
+In February, 1935, the
Federal
Reserve
banks
placed
fuhds with the: Treasury to retire
notes
r/"Natidnjd.c
notes; are;
redemption fund * In
lawful money//, /z
are
•
'There
worth
understand that these notes
.seen;/..'/
,
was
authority in the
no
Reserve
Act
transaction which
was
this
for
carried out
by a species of manipulation in¬
volving a sleight-of-hand
per¬
.
formance
"retirement
called
be¬
fore issuance."
Specifically, these
said to be "retired" by
notes were
the Reserve banks which had not
and
were
-
.
continued
such
as
the
until
resumption of specie payments
Jan. 1, 1879.
When
on
ZVZ-*'
the
United
States
aban¬
doned the gold standard in March,
1933,
these
able
became
notes
deemable and
are
irre¬
still irredeem¬
Federal Reserve banks in ex¬
change for
deposit credit and,
by month thereafter, the
month
a
of
amount
notes
these
circulation
into
put
the
Treasury,
through. the
Federal
Reserve
banks,
mounted; steadily, until
December, 1943, when the total
outstanding as a Treasury liabil¬
ity reached $639,000,000,
after
which the volume in circulatioh
by
began to decline slowly because
of retirement due to the usual
and tear
wear
or
On
mutilation.
Aug. 31, 1944, the amount
standing was $594,000,000.
out¬
in
actual
circulation
the
varies.
On
"As
a
notes,; they have never been lia¬
bilities
of
Federal
the
banks but solely
and,
Treasury,
have served
reserves
as
Reserve
liabilities of the
moreover,
they
lawful money for
the
in
books
deposit credit' on the
a
the
of
Federal
Reserve
banks to the extent that it/depos¬
ited these notes with the Reserve
banks.
At
the
same
time
; the
Federal Reserve banks* improper¬
ly and illegally, added the
same-
of
approximately
$34^,000,000. UV/-///;
■/1 National Bank
Notes
•
Z/
From
1863 to Aug. 1, 1935, na¬
banks were authorized to
tional
issue national bank notes. These,
like normally and legally-issued
Federal Reserve bank notes, were;
generally issued against a 100%
security of United States bonds
bearing the circulation privilege
and a. 5% / redemption fund* in
lawful money. Since Aug. 1, 1935,
there have been no bonds bearing
the
circulation
privilege,
and
these
in
the
March
therefore
have
notes
process
been
process of retirement, a
which began shortly after
9, 1935, when the Treas¬
ury Department announced that
it would retire such United States
bonds by Aug." 1 of that year.
These notes have been retired as
the
issuing national
bdnks, with the consequence that
those still outstanding are liabil¬
ities of the Treasury and consti¬
tute
The
part
of
Treasury
of these
amount
standing
on
currency.
notes
31,
Aug.
$126,000,000.
out¬
1944, 'was
;
,
Gold Certificates
V
/ Gold
certificates :
i 1865 under
originated in
authority of the
March 3, 1863.
As the
"certificate"; 'implies, they
of
backed
and;; coin
Treasury" '/for
Since
act
word
were
dollar- for dollar by gold
bullion
April
held
their
.
in
legal
this manipula¬
tion, the Treasury and Reserve
authorities, acting together, set
for
further,
tax
by
the
5^ 1933, it has been il¬
law
of
for
reserve
against
notes
or
purposes
—
reserves
either Federal Reserve
deposits, or both.
On
When Federal Reserve bank notes
Aug. 31, 1944, the amount of this
particular type of gold certifi¬
issued in accordance with the
cate, which the public cannot ob¬
aside
are
a
Congress:
ohe
that
stood by
is
but
vaguely
In¬
amount of
deed,
a considerable
confusion regarding its
has
under¬
the general public.
revealed- itself
Congress
but
not
in
even
meaning
only in
the
deci¬
sions; of the
United States SuPerhaps about all
be said briefly with rea¬
accuracy
regarding its
prerrie Court.
that can
sonable
meaning in• the United States to¬
day is; that it is a legal quality
given to money in various degrees
by Congress.
When
a
is
money
full legal tender it means that
debtor
tender it
can
as
a
a
settlement of his debtor's
stance
obliga¬
issued.
When
refers
those
the
to
is
term
em¬
sense,
it
money
that
may
properly be used for
some
spe¬
cific purpose, as, for example, the
money
serves
that may be used as re¬
in the
Federal / Reserve
against their deposits, or
the money that may be used in
the 5% redemption funds some¬
times
held
by
the
Treasury
against the Federal Reserve bank
national
notes
and
when
issued
banks.
/.
by
the
•/ '■//;.
*:
bank
notes
appropriate
'•■Z'\/,/,
Legal tender money and law¬
ful money are not identical.
To¬
day all money is full legal tender
if we
consider
the
but,
concerned, a legal ten¬
der money, provided the amount
may
hold
their
deposits, all
tendered
today lawful money for this pur¬
pose , except
Federal
Reserve
the
monetary
aspect
so
of
contract is
is
in
with
accordance
the
contract,
shall be deemed
satisfactory by the creditor.
A
creditor' may
refuse to
accept
as
Since
notes.
money
banks
Reserve
Federal
which
against
reserves
our
these
money
notes
is
are
a
Federal Reserve
banks, it would be illogical and
improper to use them as a reserve
against their deposit liabilities.
All Treasury currency, that is, all
currency which constitutes a lia¬
bility of the Treasury, can prop¬
erly serve as lawful money for
liability
of the
of
reserves
banks
The
Federal
Reserve
against their deposits.
various
qualities
of legal
tender given to or withheld from
some of our money prior to May
12, 1933, will reveal the lack of
relationship existing between
money that was legal tender, par¬
'of
ways.
For
example, minor tially or fully or not at all, and
coins such as nickels; and pennies money that was lawful for some
were legal tender only up to 25
specified purpose.
For example,
cents, and subsidiary silver coins silver certificates were not legal
tender prior to
1933, and gold
only up to $10.
The reason for
this limitation —7 a proper one— certificates were not legal tender
prior to 1919, but both were law¬
was, for example, to prevent a
debtor from annoying a creditor ful money for reserves against
by paying a large obligation with deposits in Federal Reserve banks.
nickels or pennies or subsidiary The question of what shall be
silver coins.
Should a debtor lawful money for a specified pur¬
wish to
annoy his
creditor by pose is essentially one of deter¬
of June 5, 1933), the qual¬
ities of
legal tender were at¬
tached to our money in a variety
ment
sending him; a large bag or keg
Of pennies, he could under the
present law force his creditor to
such
accept
payment
if
the
mining what shall be proper assets
against certain liabilities. It has
nothing, necessarily, to do with
whether a currency is legal tender
in general, all money
other terms of the contract are that was legal tender, partially or
fully, before 1933, was lawful
being fulfilled.
Z
money
for reserves in Federal
Gold certificates were not legal
Reserve banks, the only excep¬
tender until Dec. 24, 1919. Silver
tion
being subsidiary currency
certificates were never legal ten¬
(with
a
limited
legal
tender
der until made so by the Act of
quality) which was* treated as
May 12, 1933. United States notes
non-reserve cash—that is, mere¬
were
made
is
amount
accurate
legal
interest
on
customs
tender
if
at
all
the
all
for
outset
and
obligations except
the public debt and
duties,
although, with
specie pay¬
ments 011 Jan. 1, 1879, they be¬
came
acceptable in payment of
customs duties. Treasury Notes of
1890 have been full legal tender
the
resumption
•
of
since the date of their first issu¬
ance
in
1890.
of
kinds
None of the three
bank
notes
was
legal
prior to May 12, 1933, and
properly so.
tender
An adequate; explanation of the
theories
underlying legal tender
a lengthy and in¬
■ It may suffice
here to say that the reasons for
giving a currency/the quality of
legal tender have varied greatly
in the history of nations. A mone¬
tary standard, of necessity, must
be* given the quality of full legal
would involve
tricate discussion.
tender.
But other currency may
be
given the quality according to
the desires (or understanding) of.
the government at that particular
time.
For example, governments
have
given
-
certain
monies
the
the quality of legal tender, fully
or
Reserve
it niride Federal
and
notes
other
bank
notes full
legal tender. The orig¬
inal provisions of the law should
demption
although,
ly
asset but not as reserve.
as an
The
United
States
Supreme
Court has in general held that all
money
against
fund
Federal
Reserve/bank notes if they were
issued in accordance with the law
as,
liabilities
serve
of the
Federal
Re¬
banks.
The
Nature
of
the
Monetary
Standard of the United States
banks
The general public also has dif¬
ficulty in understanding the na-;
ture of the
monetary standard
which how prevails in the United:
States.
the
This is not surprising for
that our standard today
reason
cannot be defined in simple terms;
it must be described, and it is
necessary
to distinguish, its inter¬
national aspects from its domestic
characteristics.
Internationally, we are on a re¬
gold
bullion
standard.
stricted
This
that
the
Treasury
ready in its international
dealings to buy and sell gold at
$35 per fine ounce, except in
those cases in which the Treasury
means
stands
has deemed it wise to set up some
interference in the free movement
of gold into and out of this coun¬
try. It is for this reason that the
word
restricted
be
must
connection with
ternational gold bullion
Domestically,
used
in
so-called in¬
our
standard.
operating
on
an
inconvertible paper prin¬
ciple, except in so far as we use
we
are
silver
and other minor
silver
certificates, which
coins and
re¬
are
deemable in silver coin.
By our
system of indirect conversion, our
inconvertible
domestic
paper
and silver and minor cur¬
rency are maintained on a parity
with gold, although gold 'cannot
money
be obtained for domestic
cept in the arts.
use
ex¬
In other words,
foreigners can get our gold al¬
though the American people can¬
not in
rency
so
far
its
as
for
use
is concerned.
cur¬
/
Furthermore,
the
full
legal
quality given to gold and
gold certificates is contradicted
by the fact that neither of these
tender
currencies
can
be
paid out to the
American people by the Treasury
or
banks;
legally
use
nor
can
either
of
people
these cur¬
our
rencies to pay any of their do¬
mestic debts. In short, in one law
our
gold and gold certificates are
tender; in another
they are in effect declared
made full legal
law
otherwise.
The Meaning of "Value of Money"
Another matter of interest
to
the
and
general
public is
the expression "value of money."
concern
These words have
more
than
that is legal tender is at
time lawful money. De¬
one
meaning. This can be illustrated
in respect to gold. We speak of
spite the fact that some of these an ounce of fine gold as being
decisions have shown a consid¬
worth $35. Here we are speaking
erable
confusion of thought on
of the gold-dollar value of an
these matters and have, in some
ounce of gold; that is,
an ounce
instances, been contradicted by of fine gold coins up into $35 each
the facts prevailing at the time
of 13.714+ grains, fine, in weight.
the decisions were rendered, the
The value of gold in this sense is
notion
has
prevailed that any a matter determined by
Congress.
money that is full legal tender is So
long as we have a Congress
at the same time lawful money.
and so long as' it operates within
It would be lawful money only
the terms
of the
Constitution,
in the broad, general sense, but
only Congress or some agent, such
not necessarily in the technical
as the President, to whom Con¬
sense.
This is illustrated today
gress may delegate certain au¬
by the fact that although/ Congress
thority, as it did in 1934, may
has
declared
Federal ' Reserve
determine the gold-dollar value
notes to be full legal tender, they
of an ounce of gold.
cannot properly serve as lawful
But an ounce of gold may have
money for reserves in the Federal
a
different value in
terms
of
Reserve banks against their de¬
other currency. For example, dur¬
posits, and they are not so counted.
ing, the year 1933, following the
Money Receivable for Specified
suspension of gold payments in
Purposes
March, the price of gold in terms
The Federal Reserve Act, prior of paper and silver currency tose
to 1933, provided that Federal Re¬ from $20.67
to $34.45 per fine
serve notes should
be receivable qunce, but the gold-dollar v&ldq
an
otince
of
for specified purposes, and the df
gold was not
.drafters of that section of the changed until January 31, 1934.
During this period of 1933, thereI law were well advised in their
the
same
partially, sometimes to protect
issuing/Federal Reserve tain, amounted to $18,812,000,000.
the
debtors
against. creditors,
.required to pay a tax
Treasury Notes of 1890
sometimes
to
r^»tes outstanding.
No
protect creditors
Treasury Notes of 1890 (some¬ against debtors, and sometimes to
tax was paid on the notes issued
times called Sherman Notes) are protect the government against -'choice
in this manner/
law, the
banks are
oh
the
in its technical
ployed
far
the
In other words, in
tions,
mistake when
a
tion
money
which the Government says shall
be satisfactory to a creditor in
'
,
redemption.
private individuals > to
hold these * certificates,
but, as
ful money.
In other words, ttiej
of Aug. 31, 1944, there were still
Reserve banks 1 converted what,
•
should have been a liability into $53;000,000 outstanding.
an
asset—certainly the perfect j 'As already indicated^ the Treas¬
accomplishment in financial leger¬ ury now issues gold certificates
demain! Who would not like to in a revised form to me Federal
convert his liabilities into "assets? Reserve banks which use them
amount to their reserves of law-'
Still
The question of legal tender is
:•;
.
Federal Reserve
banks.
By this manipulation the
Treasury improperly and illegally
received'
31,
1944,
however,
the
outstanding was listed as
maximum
liabilities of
consequence of the manip¬
ulation in the issuance of these
;
•
'
by the Treasury which is not em¬
powered to do so.
ous
-.
gold, although the gold legal tender money for any num¬
provided for in law—in ber of reasons; for example, there
1900—is stilT held by the Treas¬
may be certain aspects of the con¬
ury against them. In other words, tract which he insists the debtor
these notes have a reserve against is not
fulfilling, but he may not
them which cannot be employed raise in court
any questions re¬
under
present practices of our garding th'e nature of the money
Federal
government.
They are that was tendered.
not redeemable; they are merely
Prior to May 12, 1933, at which
exchangeable for other currency. time Congress unwisely declared
Although the stock of these botes "all' our' money to be full legal
remains * unchanged, the amount fender
(repeated in an amend¬
Aug.
wjhich under the law it is a trus¬
tee not an issuer, with the various
rarely
are
:Z" /
•
-y 1 -■
Legal Tender
in
amount
began to deposit these notes, for
outstanding,
••
reserve
der the
-.On Dec. 12, 1942, the Treasury
&
as
issued them and which
alone, un¬
law, may issue them, be¬
fore they were paid out by these
banks to which they were issued
fiat money, into circula¬
(our Allied Military Qur-, be restored in order to free the
Reserve Board from the necessity
rency, for example).
of taking the position that, de¬
Lawful Money
spite the act of Congress and the
/ The, expression "lawful money" meaning of the term "full
legal
has a technical meaning not to be
tender," Federal Reserve notes
confused with that general mean¬ nevertheless cannot serve as law¬
ing employed when we distim, ful money for reserves in the Fed¬
guish a money that is lawful from eral Reserve banks. The same sit¬
one that is counterfeit or illegally
uation would apply to the re¬
,
•
Federal
and; silver, since they are legally
redeemable in either gold or sil¬
ver--" These
Treasury notes, for
Since the general public- did not
outright fiat* - money » and, '• since
they:; wore interchangeable with
all our other; currency, they did
not depreciate in terms of gold.
But they did dilute/as fiat money'
always - does, -the quality • of our"all
the
Federal
Reserve
bank, money, and they gave both the
notes outstanding, / thus making Treasury and the Reserve banks
them-liabilities; of the Treasury a purchasing power.to which they
(Treasury currency ) . By ^Decem¬ were not legally /entitled; ;: i- Z: /Z
ber, 1942, all but approximately
/. United" States Notes /;
$18,000,000 of'the' Federal Reserve
United
States
notes
(green¬
bank notes previously issued had
backs), of which the stock re¬
been retired.
mains
constant
at
$346,681,016,
Beginning Dec. 12, 1942, the na¬
ture
of
Federal
Reserve
bank are issued by the United States
notes
underwent a radical and Treasury and are. secured by ap¬
unprecedented change. At .that proximately $156,000,000 of gold
time the Treasury, having a stock coin and bullion. They date back
of unissued Federal Reserve bank to 1862, during which time and
the years immediatly following
nptes on hand, part of the stock
said to have been hastily pre¬ they were issued as fiat money,
pared in 1933 to meet some of the
currency needs of the depression
and
bearing
the
questionable
name of "National Currency," de¬
cided, in cooperation with the
Reserve
authorities,
to
issue
$660,000,000 of these notesits
total stock—as a Treasury cur¬
rency and as a liability of the
Treasury rather than as a liabil¬
ity. of the Federal Reserve banks.
the people iri/general—that is,, to
enable the government to force
a certain type of money, for in¬
the Treasury . and-kept
•
•
by silver, and / also
fully by gold/bullion
in other
words/ by a 200% reserve of gold
'secured / fully
posted with
there as which -a retirement call has been
security against the issuance of issued and of which there are ap¬
these hotes 'as required by law.
proximately
a
million
dollars
were
"2615
of words.
Congress made
continued on page 2616)
THE COMMERCIAL & FINANCIAL CHRONICLE
2616
mind the creation of
f
The Fallacies of
So You Know
Thursday, December 14, 1944
an
auction market to take the place
^
| of private negotiation in securities.
:
"
/;.■■■ They designated no common "trading floor"-for them¬
selves and each
signatory continued to trade in much the
he formerly carried on his transactions. It was
only when a "trading floor" was set up that they came
together regularly and, since the "auction system" was still
prevalent, they adopted it as a method, of trading. Yet, it
same
(Continued from page 2595)
(Continued from page 2615)
we would say that the value
non-gold currency in terms
gold was depreciating and that
the value of gold in terms of our
non-gold currency was appreciat¬
ing.
fore,
of
our
of
think of
value of money in terms of
goods and services which it
buy. This is a question of
Then,
the
of
behavior
the
may
we
the
will
the
of com¬
general—
prices
modities and services in
that
is, the price level. For ex¬
ample, if the price level should
125, the value of
rise from 100 to
would be the reciprocal
change, in the price level.
It
would
be
100/125
or
80%,
which means that with a rise of
currency
of this
-
the value
in this sense, would de¬
as
compared with its
in the price level,
25%
of. money,
cline 20%
value
base
the
in
other
$1.25
year.
date
latter
the
on
would
it
words,
still
In
require
to
pur¬
chase what
$1 would buy during
period; or, on the latter
date, $1 would buy only what
$.80 would buy during the base
period.
Then, we can speak of the value
of our currency in terms of for¬
the base
eign currencies.
This is revealed
in
foreign exchange rates as they
commonly quoted in our fi¬
nancial journals.
^
When, therefore, one speaks of
the "value of money," it is nec¬
are
.
essary
that
ticular
sense
is
he
in
the
specify
which
par¬
that'term
being used.
''Inflation," and Depreciation and
Devaluation
of
a
Currency
common
which
use
confuse
in
the
"inflation,"
"depreciation" and "devalua¬
general
and
public
tion" of
a
are
currency.
The word "inflation" is perhaps
one
in
of the most unscientific words
the
vocabulary. It has
a
variety of meanings and any
person using it must define its
meaning if it is to be of any value.
It. is probably impossible to state
money
meaning the word conveys
public in general.
Some
people of course think of a rising
price level as inflation, but ail
the
to
that
need
said here
be
that is the
is that if
meaning given to the
then we had no inflation
•during 1923 to 1929, since the
price level did not rise, but sagged
approximately 5%. To other peo¬
ple the term seems to mean de¬
preciation in the value of a cur¬
rency, and sometimes it has been
term,
Used to refer to devaluation of
It
currency.
that there is
a
quite clear
monetary or price
iseems
no
phenomenon to which the word
"inflation" is applied that cannot
be
described
specifically and ac¬
that are not
confusing.
Discusions of money
would gain much in clarity if the
word
"inflation"
were
dropped
curately
from
in
our
terms
vocabulary.
It
is
a
thoroughly unscientific word.
"Currency depreciation" means,
or
at least should mean, that a
currency
is losing its value in
terms of something^-for example,
in terms of gold, or in terms of
commodities and services, or in
terms of some foreign currency.
The
word
"devaluation"
refers
to the act of the constituted
authority of
a
legal
country in reducing
the
weight of a nation's standard
unit.
This has been
illustrated in our brief description
monetary
of the devaluation of the
lar
gold dol¬
by the President on Jan. 31,
1934.
•
The Relationship of the Volume of
Money to the Price Level
Another
question
and
confuses
which con¬
the general
public is the relationship of the
volume of our money to prices
and to the price level.
It is prob¬
ably accurate to say that the not'ion; is widespread that as the*
volurne of money increases prices
cerns
tend fo rise.' The fact is that this
(Continued
on page
2617)
effects,
is
it
now
proposed
to
one
began to trade and bargain
men
is
another!
a
well demonstrated historical fact: that the
proportion of
auction sales to the total securities transactions
was
at first
Securities
under
trading and the flow of investment capital
exceedingly small. There were, indeed, only a limited num¬
system of private transactions and individual nego¬ ber of issues in which the
trading was carried on by this
a
is
tiation
to
be banned!
The
use
of
intermediaries
and
method.
specialized agencies to afford transfer facilities in the acqui¬
And this situation has continued over many years.
The
sition and transfer of capital funds is threatened to be abol¬
"listing" privilege, in reality, meant that only securities
ished or drastically curtailed, and freedom of trade together
could be dealt in by the auction method on the "floor" that
with the common rights and privileges adhering to the trans¬
were in
large enough volume or had sufficient market activ¬
fer and exchange of property, for which mercantile peoples
ity to enable the members^ to act as dealers or traders in
have; struggled since medieval times, is to be banned as them; It was a mere device of convenience. The
members,
anti-social and illegal.
'
*
'
of the exchange could
privately j even on the floor, execute
If one traces the history of securities marketing from
orders, or buy and sell other securities whether "listed"
the time when this field of trading came into existence, it
or not. •■' '
■
.V; ■ •
will be found that, as with several other forms of property
/K'::n
.
exchange, there are handicaps and difficulties in effecting
All Securities Not Adaptable to Auction Trading
direct individual negotiations for transfers between buyers
It is quite evident from the
and sellers.
history of stock exchange
Accordingly, there early developed a method
of marketing through intermediaries.
These intermediaries operations that many classes of securities are not adaptable
are dealers and brokers.
In Great Britain, the dealer has to auction trading.
The largest, most popular, and most
been designated a "jobber," because it was his function to widely distributed class of securities in the world, U. S.
collect the merchandise he deals in, and to distribute it to Government bonds, are virtually not traded in on the Stock
The most sought-after shares,
buyers as demanded. The dealer or jobber or trader, what¬ Exchanges of the country.
ever
you may call him, thus acted as a reservoir, taking bought primarily for investment, such .as bank and insur¬
that which could not be conveniently disposed of to indi¬ ance stocks, have long ceased to be "listed," though in the
vidual buyers or users, and letting out to buyers in quantities early days, when they were instruments for financial spec¬
which they desired, but which could not be conveniently ulation, they were among the most active in stock exchange
obtained directly from individual owners.
dealings. State and municipal bonds, which were prominent
"
It was only after the instruments representing trans¬ features in exchange transactions before the Civil War, have
ferable debts or proprietorship became numerous enough almost disappeared from the trading floor. All this indicates
that negotiability and active
to have a constant widespread and continuous market, with
marketability or "open mar¬
kets" are in no way dependent upon "listing."
many buyers and sellers, that organized exchanges or fixed
-
,
,,
Royal
places developed and
Exchange in London
Elizabeth's time to furnish
a
were
established.
Thus, the
It
was
established in Queen
convenient meeting place for
those who desired transactions in bills of
policies and other
on
the contrary, ample proof that
not dealt in in the
an
honest
are
other similar forms of
property; that is, by specialized intermediaries who are
always ready to buy and sell for their own account, with
exchange, insurance
similar negotiations, and the
is,
and stable market cannot be maintained if securities
so-called
"bourses" at the
a
Europe
same
way as
the condition of
came
It
.
what
these
been established since
with
market
Three other monetary terms
offset
To
abolish the oldest system of orderly marketing that has
way as
was
outside
leading commercial centers of Continental
into existence.
?
. / %
;
the dealers,
traders and brokers and not the
view to
'
public.
profit, regardless of the volume of orders or
speculative interest on the part of the
:
.
largely responsible for the
creation of these market places, and it was to facilitate
their transactions, rather than to permit the public to
directly negotiate bargains, that they have been estab¬
real estate and certain other forms of property, in these days
of easy communication and widespread intelligence, there is
lished and maintained.
and stable
And
public who
thus
it
To facilitate the
were
cannot
be
that
said
organized securities
.
exchanges, has never prevailed on the London Stock Ex¬
change. There, the transactions are consummated by direct
and, one could even say, personal negotiations between the
dealers, who are called "jobbers," and the brokers represent¬
ing the outside public. The Exchange merely furnishes a
market place where these "specialists" can meet. And this is
the method used on a real estate or any other similar
exchange.
•' ;%%.
..
^
:
The auction method of securities
! *'■
dealings,
as
it devel¬
oped in the United States, is the outgrowth of the early
scarcity in these transactions, when stocks and bonds were
first marketed here. Because of the fewness of the issues,
and the limited amounts,
sales transactions occurred only
occasionally and were not continuous. Accordingly, the first
intermediaries employed were auctioneers, who handled all
sorts of merchandise, and
they became the chief instrumen¬
talities in marketing.
he occupation of a security dealer as a distinct professioiXdid not exist when there was so little of this class of
essential need for
an
organized exchange to assure fair
orderly marketing. It is an economic
axiom that in a specified market, at the same time the
same
commodity or property of equal qualitv under like
conditions cannot be sold or exchanged at materially dif¬
ferent prices, if buyers and sellers are uncontrolled and
well informed.
Because of this we have the phenomenon
of "market price" both on organized exchanges, and, in the
absence of designated market places, in the current quota¬
tions found in the press, trade papers, verbal reports and
the like.
The farmer's wife usually knows each day the
price of butter in her neighborhood though there is no "but¬
ter exchange," and, likewise, the banker or importer learns
without difficulty current sterling exchange rates, even
though there is no foreign exchange marketplace, and he
may be entirely ignorant of the forces which have combined
to produce the market quotation.
no
exchanges are a substitute for the dealer or broker method
of marketing.
In fact> from the very beginning, in most
cases, the use of "trading floors" of organized exchanges
has been limited to the "specialists" in the field, and the
public has been banned from directly using the facilities
they afford This has been true not only of stock exchanges,
but also of commodity and other exchanges, such as the
famous insurance exchange, Lloyd's of London.
But even on organized securities exchanges the methods
of trading vary.
The so-called "auction" system, which pre¬
vails on the New York Stock Exchange and other American
acquisition and transfer of commodities,
All
pricing
this, of
or
course,
must operate under free competition'
with the assumption that the forces of supply and demand,
with intelligence and honest dealing, have free
play; Hence, there is no essential difference between the
organized marketplace (i.e., exchanges) and the unorganized
types of markets. It is true, on organized exchange places
the "bids" (demand) and the "offers" (supply) are registered
openly, whereas, in the absence of a specific marketplace,
the "bids" and "offers" are made privately and the regis¬
tering is done individually. v -y/
combined
The cumulative effects of the
interplay of the same
likely to product af similar psychological re¬
action on individuals so that buyers and sellers "sense"
what would be the proper price level under the then
forces
are
prevailing conditions.
They thereby create
a
market.
Listing experience shows that marketing on an organ¬
exchange is dependent on the quantity and availability
became
at all times, both for purchase and sale, of the commodity
and stocks requiring negotiation, the auctioneers retained or
security dealt in. In other words, there must be a rela¬
this branch of their activities and, it may be noted that it
tively large number of buyers and sellers in active compe¬
was
they who participated in the original organization of tition at the market place. If either opposing group (i.e.,
the New York Stopk Exchange.
buyers as against sellers) is able to withheld offerings and
There is no evidence that the brokers and dealers
bids, or control the supply on the demand side, the "open"
propertytbT5^d4s.posed of.
When, however, the business
larger, because of the increasing volume of bonds
who
signed the first organization agreement, had! in
r
ized
organized exchange ceases to function properly/ JTt is for
'
Volume 160
these
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4342
2617
that
agricultural commodities such as grain worth while to list such bonds simply because they are
produced in large quantities and by likely to be dealt in extensively. Exchanges exist primarily
innumerable individuals, have their prices registered on pub¬ for the
purpose of making commissions.
A study of listed
lic organized exchanges.
bond sales will show an intimate relation between the size
On the other hand, such useful and standardized com¬ of the issue and the volume of sales."
modities as anthracite coal,i iron ore, copper, petroleum and
All this is further supported in a pioneer
essay on "Stock
cement, the effective supply of which may be controlled Exchange Securities" by the late distinguished British econo¬
by a few producers, have not developed organized market¬ mist, Sir Robert Giffen, written in 1877, when the author
places; though they are widely bought and sold both in large was a financial editor. Mr. Giffen wrote on page 89;
and small quantities.^ The application of this
principle to
"Stock Exchange securities are probably higher than
securities is manifest-.
Nothing could be more unfair to an others relatively, because of their susceptibility to accurate
investor who desires to sell a security than to force him to definition
and subdivision, which makes them suitable for
offer it in an auction market on an organized exchange, the
handling of a great market. And what makes the mass
when there are very few buyers present, or to compel him of some Stock
Exchange securities high in price will also
to buy, when the normal amount of offerings are withheld.
make some of them higher than others; some of them will
v.'v
It is for this reason to a. large extent, that there has be far more marketable than others.
That-this is so is
long flourished a large over-the-counter volume oftrading familiar on the Stock Exchange,- many securities being, in
and
reasons
cotton, which
are
-
.
in listed securities.
John C. Loeser states in his
Market," that, according to
fact, nominally quoted there which from various causes re¬
main pretty much in the position of outside securities, owing
to their possessing in so low a degree the marketable
quail-*
book, "The Over-the-Counter
study made by 14 broker-dealer
one-eighth of the New York ties.
And the most valuable additional quality fitting an
Stock Exchange bond business in the three months ended article for a
good market, besides the capability of definition
November, 1936, these firms sold nearly three times as many and subdivision, appears to be mass.
listed bonds over-the-counter as they did on the exchange
"A stock to be highly marketable and even to make it
in the same period. Although outside trading in listed stocks
safe to have dealings in it," he continued, "must be
large
is undoubtedly smaller than in the case of bonds, there is
enough to make it worth the' while of a great number of
still a large volume of such sales, particularly in the inactive
people to be interested in it. A dealer in a small stock can
and high-priced groups.
This is essential in many cases to never be quite sure
against being cornered; while as the
assure against
disturbing the market in such securities. An market must be limited it is
equally unsafe to calculate on
offering or a bid for a sizable block could cause a flurry in
being able to borrow on it. Hence, the suitability of a great
prices, whereas dealers can effect the transaction without mass of stock like Consols or French rentes for the
opera¬
seriously disturbing the market.
tions of a great market.
Ceteris paribus such stock will
Thus, notwithstanding, the volume en the Stock Ex¬
stand higher than very similar stock which are not in such
change and its marketing facilities, in a great many
masses.
No doubt very small stocks
may sometimes be
cases of "wholesale lots" and "secondary distribution"
subject to considerable dealings on. the Stock Exchange,
the transactions must be effected through dealers and
especially where such stocks are in close relation with larger
traders who act as shock absorbers to keep quotations
masses of stock of similar
description.
V But it is recog¬
at equilibrium.
nized in the market, we believe, that the smallness of these
:i ;
;
"
::
Ill
stocks makes dealings far less safe than in
;
ordinary stock.
Dealing is, in fact, only made possible by a disproportionate
Exchange Listing Does Not Alone Create a Market
There can hardly be a more destructive popular delu¬ quantity of the stocks getting: into the hands of dealers;
and for this and other reasons
they are subject to greater
sion than that which holds that an exchange listing creates
fluctuations than other stocks and probably stand at a per¬
or improves a market for a
security. Of the many thousands
of securities that have exchange listings, how many are found manently lower level than if they could be held in great
masses, although they may be occasionally higher in times
in the daily quotation sheets?
A number of issues have
of speculative inflation."
not registered a single transaction in more than a decade.
Regarding the effect of listing on investment Mr. John T.
As stated by the late J. Edward Meeker, economist of the
New York Stock Exchange, before the American Statistical Flynn, who has been a staunch advocate of business regu¬
lation, wrote in his book, "Security Speculation" (1934): '
Association in 1930:
a
houses who transacted about
Do You Know:
Your
is
not
necessarily so.
Statistics
show, during the last twentyyears, for example, that as
the volume of our money has been
relatively small, the price level
has been/highest, and as the vol¬
will
five
ume of our money has been
rela¬
tively great, or even at an unpre¬
cedented height for us, the price
level has been relatively low. For
instance, when our price level in
May, 1920, was 167%, using prices
of 1926 as a 100%, the volume of
money
in circulation was only
$5,451,646,000. On Aug. 31, 1944,
with the price level at approxi¬
mately 104
.
^
•
.
,.
.
base, the volume of money
circulation was $23,292,000,000.
in
.,
-
attempting to interpret the statistics of share sales
Exchange it is always necessary to consider the total
number of shares currently on the list.
The true index of
the
,
"In the face of the
"In
huge totals of billions invested in
enjoy the advantage of listing
market on an organized exchange, it
stocks and bonds which do not
and of
would
a
continuous
to
be futile
insist
that no one will invest
velocity of share circulation—so to speak—consists not
in reported share sales statistics themselves, but in the per¬ money in securities unless such securities are listed in a
continuous market.
;•
••.■':'•■.f
centage of total listed shares which they constitute.
In
"When we consider," he continues, "the vast sums in¬
periods where share-listings are increasing rapidly, this is
very important to remember.
Offhand, anyone would prob¬ vested in real estate mortgages direct and in real estate
ably imagine that the greatest turnover in listed shares mortgage bonds, amounting to not less than $35 billions,
during recent years occurred in October, 1929,'when total for which there is no such continuous market, we cannot
share sales of stock amounted to 141,668,000 shares, or make any case for the absolute necessity of such a con¬
13.12% of the mean number of shares on the list that month. tinuous market as a prerequisite to investment in corporate
But in the preceding twelve-month, new listings of shares or any other sort of the property.
The truth is that only a
the
seem
to
.
had been colossal.
Thus the total share sales in November,
1928, amounting to 115,433,000 shares, actually constituted
15.71% of the current share listings and thus represented
an
even
fraction—and
United
is
some
indication
that the volume of
Because
exchange
trading has not kept up with the volume of "listings." Writ¬
ing along the same lines as far back as 1911, when stock
exchanges listings in proportion to outstanding securities
was
less
pronounced than in recent years, Lawrence
Chamberlain
stated:
;
"Listing does not create
issues
listed
on
the
a
New
market.
York
In about 156 rail¬
Stock Exchange
(or
approximately 21% of all) there were no exchange trans¬
actions at
all in 1910.
Nor
were
there sales in about 15
listed
a
important thing for the
public
to
remember,
when thinking of the volume of
money, is that money is a twodimensional
thing.
One
must
think not only of the volume but
also of the rapidity with which
it is used
or
turned over—in other
words, its velocity.
Often veloc¬
ity is a more important factor
than volume.
reliable
We do not have any
tistical
readily available sta¬
data on the velocity of
money,
but
or
we
do have such data
the
velocity of bank deposits
against which people may draW
on
checks and, since a very large
proportion of our business is done
by means of checks and drafts
drawn against bank deposits, 'we
probably have a fairly good idea
of the manner in which people
a
invested
in
goods
or
claims that
,
can
It
are
one must think also
volume jof deposits being
prices,
the
used, of the velocity with which
and deposits are being em¬
money
ployed, and, of course, of the vol¬
of goods and services wbidh
being exchanged for this cur¬
rency. It is for these reasons that
ume
are
no
one
can
properly say that if
the volume of money is increased
decreased
or
happen
general.
to
certain
will
things
prices, " specific
or
Attractive Situations
Ward &
:
York
number of listed securities
relatively, in¬
Exchange transactions is no indication that
not large in volume or that they are closely held.
are
in the case of bank and insurance stocks and
bonds, merely mean that the bulk of the sales
are made "off the board"
and, in some cases, independently
of the Exchange.
With the advent of large and reliable
may,
with
of
be
active in Stock
they
using their funds in general—•
and deposits—when we
look at the velocity with which
these bank deposits are used.
During the period of the 1930's,
while the volume of money and
bank deposits was steadily mount¬
ing to unprecedented heights for
the United States, the velocity, of
deposits sank to the lowest levels
on
record.
During most of the
years of the 193Q's and up to ^nd
including the year 1944, the veloc¬
ity of deposits remained below the
level of the depression year 1932.
Therefore, in thinking of the vol¬
ume of our money in
connection
are
money
small fraction at that—of the wealth of the
States is
readily sold" (pp. 88-89).
higher degree of velocity of circulation."
This
road
The
general
..
:
on
compared with the
as
1926
t
...
Money?
(Continued from page 2616)
as
Government
investment houses and
security dealers, the direct sale of
through personal contact and solici¬
tation has taken much business from the
Exchange, leaving
it mainly for use
byv speculating traders and purchasers, who
naturally prefer active issues.
It is this "stable" buying
securities to investors
lars
Co., 120 Broadway, New
City, have prepared circu¬
on
several
situations
which
offer attractive possi¬
bilities, the firm believes. Copies
of these circulars, on the follow¬
ing issues, may be had from Wardf
currently
& Co. upon
request:
Laboratories
"A";
Distilling; General In¬
strument; Great American Indus¬
Du
Mont
Merchants
tries;
Massachusetts
Power
&
Light $2 preferred; Majestic Ra¬
dio; Magnavox Corp.; Electrolux;
Brockway Motors;. Scoville Mfg.;
& Sons; Cons. Cement "A";
Riley Stoker; Alabama Mills, Inc.;
American Hardware, and H. & B.
Bird
public service and. industrial issues, or approximately
In a great many other issues there were sales
of only one, two or three bonds during the year.
American Machine.
Surely a
bond cannot b%s$id tp be fairly active, with probabilities of
security market has always been such
a
ready market nat close to:"going" quotations, unless the tha'f' direct solicitation is the most effective means of secur- New York Stock Exchdii!^
sales periWeek average at least it) bonds of thousand dollar, ; ing buyers.
Men and women having funds to speculate with Weekly Firm Changes
The New York Stock Exchange
denomination. In 1910 there were about 143 issues or 'Will Invariably go themselves to their brokers. But indi¬
viduals and institutions with money available for invest¬ has announced the following firm
approximately 17 % of the total, that were thus active."
ment will often wait until
And he added further:
approached by an investment changes:
"One should not overlook the fact that listing and mar¬ house before considering what to do.
Dora
Aronson
retired
from,
The speculator is
ketability do not stand in relation of cause and effect, but impatient and feels that to make money he must act imme¬ partnership in Bernard Aror.son
rather that both are the effects of a common cause, namely, diately under present conditions.
The investor looks to & Co., New York City, as of
the size and reputation of issues.
Mere bulk in an issue future conditions, and because he can wait neglects to act Dec. 7.
13% of all.
ib^^ment
implies the economic importance of the obligor Pornpapv: it
comparatively wide distribution aipPip&(4R Y^sfcor s,
and a general knowledge of the •issue anci -thus makes it
implies
unless reminded to do
so.
It is this
nature which has created the
(Continued
peculiar quirk in human
profession of bond salesmen.
on
page
2618)
Lucien
B.
Layne
partnership in
retired
Hill &
from
Co., Cin¬
cinnati, Ohio, on Nov. 30.
Thursday, December"14; 1944
THE COMMERCIAL & FINANCIAL CHRONICLE
,2618
accomplished with .a minimum of
unemployment and dislocatiori of
people.
I have'' frequently been
asked how many jobs we expect
to create -after the war, toy people
-who
(Continued from page 2617)
It is
'.(Continued from
.
just this which has permitted the building up by certain
valuable clientele.
securities dealers of their extensive and
why securities dealers can reach
the investor more readily than the securities exchange, with
its auction market, is that the dealer assumes the position
Another basic
reason
speculator in his business. Since he is a "jobber" he
price fluctuations. He must buy as well
as sell.
He must protect the market of his stock in trade.
At all times there is a supply of securities in dealers' hands;
sometimes it is large; other times, small, according to cir¬
cumstances.
It is the ebb and flow of this supply that per¬
of the
takes the risk of
speculation, and it is fortunate that this is so. For
are constantly taking what they call a "trading posi¬
tion," \^iich means that they buy and sell between certain
prices, thereby stabilizing the market and preventing sharp
declines when certain issues are pressed for sale, or sharp
advances when enthusiastic buying develops.
Were it not
for this incidental speculation, security prices would show
mits
dealers
more
In
ant
to
which
prove
are more
•
,
/
:
IV
:
■'
Security Markets Abroad Not Dependent on Exchanges
Before
contemplating the rash step of destroying the
system of security trading through responsible dealers, it
might be prudent to examine security marketing in other
trading countries.
In
no
nation,
far
as
as
I
am aware,
is there
a
require¬
registration of all securities issues on an organized
exchange. And among no great trading people, in which
investment of funds is widely prevalent, are the bulk of
investment funds represented by securities dealt in on the
national securities exchanges—not even in Great Britain
where the London Stock Exchange has an extremely large
and diversified list of securities transactions.
The "un¬
ment for
quoted" securities in Great Britain is still voluminous and
there is a large outside market, particularly in the securities
of British industrial
The
most
time.
We turned
peace
tion
plants from
production to war produc¬
our
abouf as fast as the armed
The
concerns
v
,
,
:
French are,
perhaps, among the shrewdest and
cautious investors in the world.
And the French have
always had strict commercial codes enforced by law.
But
masses of the French people do not buy their securities
on the Paris Bourse or any other exchange.
They rely on
their local banks to advise them to sell and buy securi¬
ties for them.
Thus, in France, the banks act as security
the
dealers and brokers.
same has been largely true of Germany, but in a
different and a destructive way. The banks of Ger¬
many have been originators of all kinds of enterprises.
In
the pre-Hitler days they dealt direct with investors in dis¬
tributing the securities of the enterprises in which, they
have a material and financial interest.
They "have thus
shaped the course of the surplus wealth of the people, and
because of this, they can influence the operations of the
principal securities exchanges. These institutions have been
rarely used by the public in acquiring or disposing of invest¬
The
executives,
over
period will not really
our. fighting men
created
be
are
all back and we have a stabil¬
factors.
ized
war
until
economy
with
.reasonably
full
employment. The process of
forces were able to decide upon
changing from war to peace will
•the things they wanted. We turned
require much hard: work, some
out tanks, guns, planes, ammuni¬
sacrifices, and patience and un¬
tion,
engines and hundreds of derstanding on the part of all
other things in tremendous -quan¬ of us.
'
1
tities.
The defense program had
Fourth, the important, but less
given us a chance to do some ad¬
tangible thing, which we might
vance
planning and to prepare call mental
qr spiritual reconver¬
for
war
production.
While the sion. Pressure groups *as well as
plans had to be greatly enlarged individuals must learn how to be
and our -country was in real dan¬
aggressive and ambitious without
ger of too little too late, a seem¬
being quarrelsome and selfish.
ing miracle of production was
We need a refresher course on
achieved, not only by the auto-,
the : fundamental
principles
on
mobile industry but by American
which our country was founded,
industry as a whole.
.
i
our
seems
renewed faith in
our
American
enemies didn't under¬
to think that'the man¬
ufacturing industries must employ
everybody.
■
.)
In the first place, industry does
not "provide" jobs. Jobs are not
an
-end
depend
out
Jobs
air.
of
In the
last analysis
on
and
ness
of thin
result
a
great
me
mimy
they
the customers' willing¬
ability to buy. Imme¬
diately after the war we believe
inevitably be a heavy
there will
demand for
such things
as
auto¬
mobiles,
household
appliances,
housing and other durable con¬
sumer goods.
In General Motors
we are planning on that basis. Our
$500,000,000
postwar program
is
this anticipation and in
the further belief that the people
based
of
on
country will be willing to
the things they would
our
for
work
like to have.
It
.
•
'•
manifestly impossible to
employ everybody in factories.. As
a matter of fact, during the fiveyear period just prior to the war,
manufacturing
industries
em¬
ployed only about 24% of the to¬
tal working force. An equal num¬
ber was employed in agriculture.
is
Democracy as a living, vital sys¬
of.American; tem of
"working and living to¬
industry and of the American peo¬
gether—the best that; was- ever
ple to pull together and do the evolved in this troublesome world.
•job.
Failure to understand this
I know you will pardon me if
fact was the great strategic blun¬
The remainder workedf in trans¬
I talk about the automobile in¬
der
of the Axis
powers.
They
portation, merchandising, finance,
dustry. Its reconversion problem
the service industries and all the
thought
a
democratic
country
is more difficult than that of al¬
could not develop the efficiency
hundreds of occupations that do
most any other industry. We are
and the organization necessary to
not
directly
involve
manufac¬
do the job. Bombs dropping from making very few things that re¬
turing.
semble
our
peacetime products.
the skies on Berlin and Tokyo
With the increased demand for
Other
industries — for
example,
have given them their answer.
goods there should be an increase
steel, electrical and textile—are in
industrial employment after the
Now, I do not claim to know
producing materials very similar war as
when the war is going to he over.
compared - with prewar.
to their prewar products.
Their
But as the channels of trade are
I do not know when large scale
plants will not have to be radi¬
filled there will be a correspond¬
manufacture of civilian goods can
cally changed for peace production.
be authorized.
1 do know, so far
ing
increase
in
the
service,
With the exception of trucks and
as General Motors is concerned—
merchandising and other occupa¬
a few other items, our production
tions.
I might cite General Mo¬
and I think it is safe to say the
is far different from anything we
tors as an example.
same
Before the
thing for all American in¬ h a d
previously
manufactured.
war
our best peacetime
employ¬
dustry—that so long as our facil¬ There is not much resemblance
ment Was around 250,000.
Our
ities are needed for war work,
between an automobile body and
peak during the war was about
victory will continue to be our a
gun, but some of our body plants
business. Nevertheless, it is only
505,000. It is now about 50,000
have been turned into gun plants.
less than this figure. We believe
a
matter of common sense to be
A body hardware plant has be¬
it. is not unreasonable, to expect
looking to and planning for the come an
airplane assembly plant.
future.
Our first job is to back
that after reconversion and total
These are only a few examples of
up the war effort and to the end,
peace are accomplished, the de¬
the physical problem we are fac¬
mand for automobiles for a few
"but at the same time we must be
the ability
was
.
stable market.
<•
who
know how to do the job.
stand
that un¬
resist¬
price fluctuations than some listed securities in
dealers have no responsibility in maintaining a
under most conditions,
and
salesmen
preparing for war production.
Unemployment was not really
serious ;and lasted for only a short
What
fact, it would not be difficult to
listed securities,
2596)
of the unemployed while we were
a
extreme variations.
page
prepared for
when victory
a
quick conversion
ing.
"
;
production, results de¬
pend upon the accurate tooling of
accomplish in reverse the things
every • machine
and upon the
we accomplished in converting to
hourly capacity for nil -operations
war production and "the time fact¬
being in balance and in proper
ors
are
is
We
ours.
about the
same.
In mass
must
We must
to one another so that
the .production flows through the
plants" with no bottlenecks and no
to be preserved and if we are to
•restrictions. If two -or- three ma¬
.achieve a higher standard of liv¬
chines are missing out of a line
ing than before the war. I am
that may include -a thousand ma¬
reconvert
relation
rapidly and efficiently
if -the economy of the country is
-confident that this
can
and will be
years
may
be
hood of .150%
in' the
neighbor¬
of the best prewar
On this basis, and with
expansion in other lines, /we
employ in Gen¬
Motors perhaps 400,000 peo¬
years.
some
should be able to
eral
these -em¬
shift to the
ple.' Later on some of
ployes may gradually
servicing of the greatly increased
number of cars that will then be
in use.
'
;
••..■, •'•*,
■But this employment in Gen¬
chines, little or nothing can be eral Motors does not tell the
accomplished. That is why it is whole
story. About half the money
problems -of reconversion so necessary for us to be sure
value of our total production is
can be roughly divided into four
we
can
obtain promptly all the
normally produced toy subcon¬
categories:
machine tools necessary to begin
tractors and suppliers. Therefore,
First, the physical one—the job civilian production. For want of
these thousands of concerns from
few
•of -obtaining, tooling and installing a
necessary
machines, the
whom we buy materials and parts
whole job of making automobiles
new machinery, and of disposing
should have a corresponding in¬
of machinery that is not needed, could be held up.'
crease
in
employment - as com¬
of building new plants and
of
I do not believe that the timing
pared with prewar. .Before the
reconditioning old ones, of clean¬ of the essential elements of re¬
war our dealer organizations em¬
ments.
This result has been ascribed to some economists as ing out war inventories and of conversion is well understood. If ployed
something • like
170,000
building up inventories needed for certain things are not planned
the effect of the severe regulations imposed by the German
people/ It is probably not over
peace production.
ahead, the lost time -can never .be: 40% of this figure at the present
Government during the years between 1896 and 1910 against
Second, the time element. Time regained.
No physical activity; time. On the basis of what ,we
public speculations in securities and the placing of the Ber¬ factors are not generally under-; goes on in this complicated age, consider to be reasonably fair
lin Stock Exchanges under government jurisdiction "and stood. To many people think that no plants are built, no machinery prospects, 'this -employment niter
mass
production can be turned installed, no piece of inanimate
officializing its activities in the most advanced style." The on and off -like, water from material moves from one place to the war should be about 220,000,
or 150,000 more than are now-em¬
Berlin Bourse thus has become a servile instrument of the a faucet. They, are inclined to
another, without a piece -of paper ; ployed.
think of mass production in terms to direct it. Bach part has to be.
Government and the great banks.
The public and the indi¬
I have faith in the future of our
viduals that are affected by its operations have no voice in of assembly lines and to forget all named or numbered and a piece
country and'faith" in bur ability
the planning, paper work, engin¬ of paper must go along with it to
its affairs or influence in shaping its actions or fixing its!
to meet the challenge of peace as
eering, purchasing, primary man¬ tell somebody what to do with it ;
we met the
challenge- of war.. If
quotations of securities.
This Is but an example of state ufacturing and coordination that and where at is. to ,go. These ;
the expectations and arrjbitions of
must toe accomplished .before as¬ things mjust be .done in proper
paternalism which brought Germany into Hitlerism and deits citizens are to toe 'reasonably
sembly' lines operate. - T "T / :
sequence.
They" all, take Hime.
structure. Shall we follow the same course?
satisfied,
experiments In Com¬
"Because
one
hen can hatch a
Third,
the psychological; and
munism and Socialism in the post¬
It is apparent from an. unbiased
study of the develop¬ human relations problems/ This setting -of eggs in three weeks is
war
period must not toe tried.
ment, organization and practices of security trading, that involves the employment of vet¬ bo reason to (believe that three
Such theories put Into effect oh a
hens can hatch the. same eggs in.
private transactions by security dealers and organized ex¬ erans., new and -different, jobs for
large scale lead inevitably to con¬
a week."
In a problem as big and
fusion or dictatorship. Even when
change security trading go hand in hand as a means of many people where they now live
and, the
remigration of people complex as reconversion, the time undertaken on a- smaller scale,
negotiation and transfer of this particular form of property. somewhat similar to that which element cannot be ignored." That'
such
experiments have always
It may be a "dual system," but both methods are essential occurred in the war production is why well ahead of victory we
finally failed and have been dis¬
to modern transactions in securities, and there is no conflict period. And even more important must prepare for peace.,
astrous through all recorded his¬
The human element is of the
the teamwork and tremendous ef¬
or lack of harmony or
anything of the nature of antagonism fort of the skilled men and wo- utmost importance in the recon- tory. Such experiments would- be
a sten backward for the American
in the set-up.
men,
the mechanics, engineers, version period. The task must be
people.
I
very
done.
-*■
^
The
u
,
.
,
A
revolutionary disturbance of the system by legal
or by the unwarranted action of a governmental
agency may mean chaos and disruption to the steady
flow of capital into established investment channels,
decree
seriously handicap these efforts for business expan¬
sion and a normal return to full employment and pros¬
and
perity conditions.
-Ui
;
T
of a reconversion pro¬
Federal, State and munici¬
pal- expenditures must be .care¬
fully checked to make sure that
As part
gram
Volume 160
Number 4342
they will importantly
to
the
welfare
living of
citizens. Such non¬
productive' expense and activity,
if
the
our
results
worth
not
are
Man hours lost through
unemployment,, artificially short
working hours, dissipation and ill
.^health
proportionately
have
the
effect.
same
The
production and consump¬
goods per capita is the
measure of the standard of
tion
of
true
-
;
\
THE GOMMERGIAL •& FINANCIAL CHRONICLEa
<
A
needed
lot
of
will
money
investment" dealers have a
responsibility.
They
must
watch their P's and Q's and not
repeat the mistakes of the past.
ters,
be
venture
or
riod
approximately that of
period must be achieved
very
short time after the
have
philosophy of oppor¬
tunity,
production
and plenty
must replace the false philosophy
of Regimentation, restriction and
land
in*a
The
war.
scarcity.
I read
article the other day
an
that the
Four Horsemen of Peace will be
in which the author said
Hope, Science, Good Sense and
Experience. I heartily subscribe
"to that sentiment. We must look
to the future with hope and op¬
timism. We know great things can
accomplished because we have
accomplished great things. Tech¬
nological development is not fin¬
be
Out of
our research and engineering lab¬
oratories will come things as yet
undreamed that will make for a
It has just begun.
ished.
and
better
prosperous
more
We must use the common
world.
to:
capital has slowed down
trickle.
a
Financing; must be
easier.
Whether it is good
bad, the fact remains that we
for
the
most
financing
complicated rules
the face of the
on
There is nothing in Eng¬
even
approaches our
requirements and there is no dis¬
position to follow our procedure.
(b) Present prospectuses need
streamlining.
Precious few ever
read them. Not enough copies are
available to be used in selling.
globe.
that
The customers won't
even
start to
wade through 100 pages of printed
material.
Shortened prospectuses
badly needed.
are
base our future on our
exist.
.1
(c) Something must be done for
It isn't
sufficient for everyone to praise
financing little business.
little
business, and then do noth¬
or point their finger
other fellow as being to
blame. The first thing to be re¬
ing about it
the
at
membered
is
that
the
mortality
of small business has always
rate
do
Nor
I
see
how
anyone
can
justly take the position that our
has been at
social progress.
products of industry have
done away with the isolation of
the farm home. They have greatly
.lessened the burdensome work of
industrial
the
progress
of
expense
The
the
They have added
personal capacity to
and understand the world and
housewife.
much to our
see
These things have
changed our methods of
living and have given us leisure
and materials and facilities for
life.
enjoy
greatly
high and always will be
high. Does the country want a lot
of little businesses, many of which
will fail, or does it want to make
financing so rigid as to scare
everyone off, business men, inves¬
exists
that
confusion
The
in
people's minds regarding
this progress is, I believe, due to
people who with our increasing
standard of living expect a much
some
greater social benefit^ than the
social contribution they are will¬
If people
are
willing to earn what they
expect to receive and if they want
things enough that they are will¬
ing to work to get them, then
ing
able to make.
or
can
there
be
of
our
future
no
question of the
tervals.
Looking
track"
This is true of the Treas¬
ments.
much
break
of
if
and
we
But
they
actually
be
must
granted
bankers
Irrespec¬
tive of what .has happened in the
past, the organization with which
I
identified would like to
am
have been called to be opened on
ahead
Dec.
and
spared
swers.
in
such
program
effort
no
r
a
getting
■
should
the
funding
be
right
am
ness.
stands in
he
become
has
these days
in
sold
Rail Equipment Outlook
Another
Products
A report on the
If
and
het
a
month
had
bonds
war
simplification of registration be¬
fore now. War bonds are helping
to win the
war and, incidentally,
providing jobs. Flow of ven¬
ture capital in the post-war pe¬
riod is absolutely essential for the
are
of
creation
up
jobs. We must clear
the matter of making informa¬
about securities available on
tion
the
sale
hand and solicitation and
one
on
The pres¬
the other hand.
with
deals
official
with
war.
*
the
14
with
other,
less
official
From
this
data
Should
calculations.
projections
figure,
industry
made.
are
led
to
the
railroad
conclude
that
equipment
sales
of
industry
in each of several years after the
will exceed
war
sales volumes of
of the peacetime years of the
any
pre-war
To
decade."
this
study
Stocks, Inc., together with
Copies
of
the
report
obtained from Hugh W.
Company,
,
upon
be
may
Long and
request.
—
«
■■■»"
.
.
Attractive Situations
drive
bond
he
that
stated
paid
the
on
en¬
might
of cost,
not
did
Preferreds Seen
More New
over
derwriters
the
view
the
new
as
would
around three
receive something
million dollars."
Looking
basis
same
they probably
Canada,
are
that
the situation un¬
see
of
marked
part
a
replacement
of
many of the preferred stock issues
now
outstanding, particularly in
toward
trend
after
us
individually.
haVe
freedom
only
when
We
apd independence
qualify to look
we
.-,Yk
after( ourselves.
We
can
a saying
in General
thatiwhat iSjgood for our
have,
Motors
country is;good for
General Mo¬
tors; and that there are
time-tried
unfailing guides upon which
Americans can depend. They can
be' described in terms of simple
"articles of faith":
and
Faith
in
America
future—a
future
and
of
America's
expanding,
productivity and even
higher standards of living.
Faith in the Tightness and benefits
of individual freedom and inuseful
,<>
qividual enterprise.
the principle that there
can
be no rights without re-
Faith in
serve
the public
,}a:need, as the first requirements
to provide
a
job.
Common
convertible
American
Faijth. in the Amencan
way
of do¬
and
utility field.
'»preferred
Bant^ip
Car
of
the
and
Pan¬
Coca-Colq offer attractive
ing things, by which each per¬ situations
according; to circulars
son,
each
organization,
each issued:
by Holt, Rose & Troster, 74
industry, each business must,
Copies
take its place—and be granted Trinity'Place, N. Y. City.
bf : these: circulars
that place, according to ability
may be
had
and
capacity—in
great, co¬
inter-geared system
one
ordinated,
of living,: working and contri¬
buting to the national welfare.
Faith in America's progressive in¬
stinct and in the things which
it—science, research, en¬
gineering, technical knowledge
serve
ama/;
from
the firm
upon
request.
Cap. Change Possibilities
Laird, Bissell & Meeds,
120
Broadway, New York City, mem¬
bers of the New York
Stock Ex¬
the rights
great and
small alike—and in the impor¬
tance of each to
had from
Faith
and
skill.
"
•
in
a
free, peaceful
productive nation.
manifest
itself, and it is reported that
several groups are in process of
formation to compete for two
such
upon
Laird, Bissell & Meeds
request.
to
beginning
already
issues
which
now
appear
early candidates.
as
1
/■
,
a
Now WaltonJACKSON,
of
name
O.
MISS.—-The
Company.
Partners
B.
Seaboard Of Interest
Sutro
&
Bros.
Co., 120 Broad¬
City, members of
Stock Exchange,
have
prepared
an
interesting
arbitrage circular on Seaboard Air
Line Railway Co. Copies may be
way, New York
the New York
had
the firm upon request.
from
Fashion Park Attractive
detailed
A
Fashion
of
study
Park,
Inc.,
is contained
in a
special circular prepared by Si¬
mons, Linburn & Co., 25 Broad
St., New York. Copies of this in¬
teresting study may be had from
the firm upon request.
seven
or
panies
eight
of
source
those
years,
looked
are
further
upon
com¬
the
as
substantial
re¬
funding operations in the months
ahead.
who
People
gers
are
their
keep
fin¬
the pulse of the market
satisfied that ther^'will he
on
considerable
standing
some
of
calling
S^s,
out¬
possibly
and
3s of quite recent vintage.
They
point
that
out
the
market is destined to re¬
main easy, if for no other rea¬
son,
and
one,
than that the Government
new
&
Power
Light
Co.
this
requires such
is
condition. Top
now moving
2.85% yield basis.
ting
together
which
Texas
its
to
seek any new
be issued by
may
Utilities
Co.,
outstanding
in
$6
re¬
pre¬
ferred.
Due?
And the
feel
time
until
of
Wabash
but
issue.
new
men
bulk
of
Rail¬
That road seeks to
operation,
for the
oublie
the
case
are
refund its 4% bonds; It undertook
Notwithstanding the relatively
of
to
road is cited.
the
Lower Coupons
2.65
a
important
an
a
on
cost
Otis
are
Walton and Hamp Jones.
grade utilities
low
Co,,
Guaranty Bank Building, has been
changed to Walton-Hamp Jones
Meanwhile ether groups are get¬
tracing
firm
&
Walton
B.
preferred stock
Central
shares
in
possible $12,000,000 or
$13,000,000 of
West
his home
money
.
Banking groups are organizing
to bid for
of
change, have available an inter¬
esting
circular on
the
capital
change
possibilities among
the
New York banks. Copies may be
and
The trend in that direction is
6%A cumulative
the
of
to
Inclined
now
the 'early
will
year
Venezuelan
the
Commerce
Hamp Jones Co.
to
"But," he added, "if they
know.
secur¬
history-of the Series.
tendency
a
Mr.
the
banker
in
ities holdings and the price range
and dividend
is
actually represent by way
a
of
of
exceed the higher
or
that
in
gaged
were
Company has added a discus¬
of the Railroad Equipment
Industry Series
of
New
York
/
ap¬
Asked how much the tirhe and
Long
W.
total
effort of bankers and dealers
<\
Hugh
final
■
about June of next year.
"From, the evidence currently
available,".states the report, "we
are
the
which
its goal.
Morgenthau
probably would be able to stay
out of the money market until
needs for the
car
estimated,
compared
as
billions
as
there
expect
'
passenger
is
it
the
proximate
of
freight
car
needs,
locomotive
sales, both domestic and foreign;
and
the
Foreign
on
He has also served as
Quirk makes
Mr.
the current
of
billions
Treasury set
with
the Committee
Maplewood, N. J.
The total of sub¬
may,
20
to
run
on
position to
a
of the
Interstate Commerce Commission
compared
in
are
workings
are
representative
a
U. S., Inc.
Contribution
Real
is
sion
in opportunity to
been
Chamber
opinion that the
Sixth War Loan will be heavily
Testimony presented before the
and
$2,000,000
"
.energy,
has
Association for Foreign Trade
ers
bonds.
A
:,.y,■
discussed,
of
issue
an
and
for Central Hanover on the Bank¬
And fill¬
stock.
Arkansas,
Those who
esti¬
and
very
He
addi¬
of
shares
common
new
America
South
and
treasurer
fuzzy one.
a
three
Banking.
of
During
he has com¬
extensive trips to
past two years
Missouri
be permitted to do
situation is
Bankers must
the
months.
fifteen
for
don
Power Co., may enter the mar¬
ket
the
partment. He has had the oppor¬
tunity to inform himself on con¬
ditions in all export markets, and
at one time was stationed in Lon¬
and
a re¬
Central
for
Company,
twenty-one years, and for
time has engaged in business
ing out the list is the possibility
the
Quirk
institution,
Trust
that
tional
John
its
import trade interests in all sec¬
tions of the United States.
Home
Corp. which proposes
98,535
scriptions
had
with
Han¬
and
Manhattan Foundation, Inc.,
sell
oversubscribed.
with the SEC, we would have
Quirk
to
the
be ^cleared
Mr.
Railroad Equip¬
ment Industry privately prepared
for New York
Stocks, Inc., by
see
in .advance.
to
the
for
American
drive
However, in the days
push the
just like the
Government pushes the sale ...of
war bonds.
If the Treasury plans
a
campaign for Nov. 20th, they
get things lined up and everyone
Commerce.
has devoted his efforts to export-
prospect
is
near-term
Good, Report Indicates
securities
of
be
18.
Dec.
on
of
Chamber
pleted
equipment manufacturers, and the
effect of such sales upon railroad
equipment industry earnings after
wants.
San
the
Francisco
Central
mates of post-war sales of railroad
begs for, what
bids
will
line
in
of
ing of $12,500,000 which will be
lost
a
to come we shall need to
sale
Next
everyone
when
and
line
19.
which
for
Bureau
Trade
Capital Transit Company's offer¬
.
booklet,
(d) Selling
art
by
bonds,
World
the
of
be¬
to
development for the Foreign De¬
by
in
H.
director
some
selecting a committee. There is a
big job to be done in the years
operate
leaves
come
past
far, of these is
Nickel Plate's $42,000,000 new re¬
Largest,
Ken nth
Campbell who
Union
to market.
co¬
replace
predecessor
comments,
will bring four new issues
year
He
nounced.
Central
looks,
now
their
from
1,
an¬
over
if the final two weeks of the
as
bit stand-offish.
a
Thus it
see.
judging
have
Jan.
1945, it is
on
nected
accordingly
only what they can
on
as
has been con¬
investment field,
or
inclined,
are
the
It
the so-called
of
are
realists if nothing else, and
are
every
investment
the
But
bankers, whether in the
to count
wheel.
"on
hope than expectation.
more
thoughtful
person must put his shoulder to
that
some
are
banker puts it.
one
commercial
to
are
as
of them
haps
present log jam in the
capital,
field broadly,
over -the
Council
will
"rainbow" variety, suggesting per¬
not
air-tight compart¬
offer
the
flow
few
The securities business has
to
between
the vast majority of these are
prospective business for the early
part of the new year and not a
and frequent, in¬
business should
market
develops that there
fifty-odd
new
issues
of the Federal Reserve and
Department of Commerce. Gov¬
be working in
issue
it
ury,
ernment and
and the close of the year.
"
fields of business and
at regular
new
helpful step.
advisory organization,
bankers have a real has been released by Hugh W.
responsibility, but they need somb Long and Co., 48 Wall Street, New
help from the SEC about regis¬ York City.
This report, attrac¬
tration requirement for little busi-, tively compiled in an eight-page
ent
country.
the
government
agencies
liaison
Committees
which
meet
attempt
an
probable extent of
the
now
banking,
have
gauge
search and
think that the most an
energetic selling job without
important postwar problem is to
being made technically liable for
get every citizen to realize that
beating the gun.
he, ought to be ready and willing,
With respect to all these matthrough education, experience and
work, to make a social contribu¬
sponsibilities, no privileges to
tion in proportion to the social
enjoy without duties to perform.
reward he expects to receive. We
Faith in work as the forerunner
should feel
personally that we
of reward—in incentive as the
should make the effort, and not
kindling spark of productive
expect the Government to look
X happen to
other
are
J
Foreign Trade
Trade Adviser
to
Investment
tit
cultural and social progress.
In
■
stretch,
potential issues in
-
Hanover Bank & Trust Company,
will join the staff of the National
Saturday, un¬
scanning the roster
the home
in
of
been
bankers' HFC, a very
'
derwriters
Advisory Committee Needed
j
been
We must
experience
of the past. Our country became
great through the exercise of free
enterprise and free and open com¬ tors and bankers alike? Here is
petition. It will grow greater as a real problem in this country.
we permit freedom to continue to
Deposit bankers have set up a
that God gave us.
sense
'/■'
<
Treasury's Sixth War
Drive
due to wind up on
for
made
and
Loan
reconversion, to ^get I am convinced the Commission
started, and to de¬ arid its staff are earnestly trying
velop old business/ Present prac¬ to do a job, but we offer a sug¬
tices may be all right for a pro¬ gestion which I think will be con¬
gram of riskless investments,, but structive.
'k' V.. '"
'
that of the immediate prewar pe¬
war
With the
real
Quirk, assistant manager,
Department,
Central
Foreign
REPORT
business
new
living of a country and industrial
activity
substantially
exceeding
the
John
(Continued from page 2600)
stand.
John Quirk to Join
REPORTER'S Foreign Trade Staff
Appraisal of SEC
Emphasis should be placed .-on
simplicity and procedure the ordi¬
nary
business man can under¬
2619
OUR
A Review arid
the
effort, directly reduce the average
stahdard of living by the percent¬
age that such expense and activity
are
of the total activity of the
country.
-
contribute
standards of
and
^0
>
it
is
the
rejected
Still
only
ideas
some
a
of
bids
bond
matter of
the' pro¬
utility debt refinanced in the last spective issuer will prevail.
THE COMMERCIAL & FINANCIAL CHRONICLE
2620
and the
The Transition Phase
Peace, Progress and Taxes
We
wouldn't
I
at all had I not
'
Through polls
the
to
tax forums
and
behalf
To
NAM
have
been
Committee
Taxation
I
a
together
putting
yourselves.
•;
_
services
the
accept
we
>.i
In
taxa¬
ism.
proach
of
need
the
our
end
course
spending,
deficit
of
a
billion
bear
Another $10
vear.
a
bil-
and on business earnings.
Business
corporations
now
pay
estimated
$19 billion dollars in
direct taxes to Federal, State and
local governments.
an
Corporations, the Jobmakers
Corporations also
gest job makers.
000
and
men
are
big¬
our
Of the 54,000,-
women
now
at
A 60-Year Plan
about
000 people
who pay taxes, it would
I be equal to $6,000 per taxpayer,
i*.
Business leaders almost unanimouslv favor a balanced budget
after the war and they approve of
debt retirement just as strongly.
30,000,000.
peace-time
•
ment.
of
plan
industry's first
is for jobs.
out
pays
amount
wages
and
salaries,
than half of
more
con¬
Private industry
than $80 billion
more
dollars in
tional income.
roir depends
our
an
na¬
This kind of pay-
and the standard of
1% annually.
;
If SO
is
billion
aside
set
atmos-
living.
-
ally the
than
less
(is
a
debt
can
60 years.
upon
business, profits cease and new
capital is not produced; new jobs
not
are
created
and
the
whole
economic system dries up.
annu-
be retired in
I believe this
American
lion
dollars
This
means
now
to 20 bil¬
being collected.
a
50%
But
there could be
the
demonstrates
it
need
for
a
continued
high level of national
in order
to
soundly finance the kind of
government to which we have
grown accustomed.
Business earnings dry up quickly
income and employment
If dur¬
under adverse conditions.
ing
a
recession we had
on corporate in¬
1932
the
had
100%
tax
its
panW
cfnHpnt*
and
dividends
out.
nf
<mv
>
It
W°rk*
lives
ernment
say
that
the
minimum
post-war budget, including debt
pavment, can be between $17 and
$22
billion.
Add
$10
billion
for
State and local spending, and you
a Mai public
■'of $27 to $32 billions.
i have
expenditure
,
That is calledia minimum bud-
} get.
gentlemen.
four times any
But it is about
Federal budget of
business, is
matic device which
Down to Hardpan
cnmp
gen¬
is the price¬
care
servants.
this would have yielded
only 2 billion dollars.
To make taxpaying compara¬
tively productive, we must have
national prosperity.
j
responsibility of
leadership to unite in a
industrial
program, devised without
common
pride
of authorship, to courage¬
ously seek a balanced budget and
repayment of our debt.
Industry cannot afford to
silently.
It
must
exercise
sit
its
stewardship of the nation's jobs
to protest against wanton spend¬
ing and destructive taxation.
It
must insist
preserve our moral
we
integrity by meeting
responsibilities.
to face the facts
the truth
must
us
to
—
—
financial
our
We need leaders who
come,
are
willing
tell the people
admit the costs which
eventually be paid by all of
and lay plans for all of us
—
pay.
"Those who
expect to reap the
Blessings of 'Freedom must, like
men, undergo tbe fatigue of sup¬
porting it."
Tax. Simplicity
Furthermore,
Tax
laws
that the
industry
simplicity.
should
looks
;
written
be
Collection of
Flags
y
so
At Bankers Trust Go.
taxpayer can understand
of tax reduction will
plexities that bewilder even the
tax experts.y'; y:.y y.y; V y
people
at
less
definition
ican
as
progress,
our
The
theme
main
the
of
War
Bond Show at Bankers Trust Co.,
16 WalLStreet, is; a collection of
historic
that. portray the
On the main
flags
Story of Old Glory.
banking floor is the most complete
display of historic flags ever as¬
Amer¬
as
policy-makers must be as
promote a constructive
they were to finance a
destructive war.
A high volume
eager
to
peace
as
of national income
balance
is the way to
budget and avoid debt
our
repudiation.
high taxes and low in¬
come,
we
shall really see the
apple-seller and leaf-raker again,
With
while
threat
the
collectivism
of
We
well-wishers in
tasks ahead. But
many
pessimists, who
have many
courageous
have
These doubting Thomases
.
,
1'
'
■
,
Y
'
,
Y
■
Industry's Tax Program
organizations
Industry is setting its sights on
made
higher levels of produc¬
employment and
national
tion,
within the framework of
which includes:
of present high
rates of taxes as long as we are
at war with Germany and Japan.
2. Reasonable tax adjustments
tax program
1.
war
sential
Marine
also
produce.
of
Point
age
Discouragement
tax
the
nation's
policy should encour¬
full 'employment of our
arid/'skills.
realizesUJfhdt it must
understandable
pire State Chapter, Sons of Amer¬
ican
Revolution;
William
Van
Wuck, President New York Chap¬
ter, Sons of American Revolution;
Capt. Milo F. McAlpin, Governor
of the New York Society, Order
of Founders and Patriots of Amer¬
ica; Major Herbert T. Wade, Gov¬
The Indian's Dog
an
of Colonial
New York;
Dr. Robert, G. W. Vail, Director,,
.
old legend about
no
auto¬
in
dispenses jobs
year
is made
up
in
and
of
people at
year
U lS humani *t eats food,
apartments,
houses
flats: it has wives and babies.
and
Its
lifeblood is labor, which produces
and
nourishes
the
framework,
which
is
capital.
in
a
It c^n prosper
healthy atmosphere,
friendly
to
opportunities offered
only
eitizens
who
a^e
willing
to
risk
their savings with ^ometbmg bet¬
ter
than
cess.
an
even
chance for
sue-
iXSZ
the
of
Society
State of
ah Ne#:York Historical Society.
heavy, post^dr taxTo^di Indian's dog which reminds me;pfj
"the way some taxpayers look uppnindustry must fi&ht to
carry
the
of
ernor
tax-!
Wars
1'There is
honor, who included
William S. Bennett, President Em¬
payer.
resources
Industry
the
Colt,
President of
Company, received
Sloan
the guests of
of debt re¬
to
And there was
Nurses
detachment of Navy
a
S.
of his government.
8. A tax act that will be simple,
and
Street
Bankers Trust
automobiles, ra¬
6. The taxing power confined to
dios, refrigerators, tires, television
the raising of revenues and not
sets, nylon hose and safety pins
misused
for
social or economic
we
are
ready ,-,-to buy, and how,
adjustments.
under free enterprise, there can
7. Every citizen made aware by
always be newer, and better things
direct taxation of the cost to him
to
Wall
present.
war.
A long range plan
The
their color guard.
the point of discouragement,
A balanced budget after the
5.
Corps.
Post of the American Legion sent;
tirement.
know how many
two
were
from the Women's Reserve of the
Post-war rates which are be¬
4.
Seventh
the
Marines, one from
Navy Yard and the other
the U. S.
employment.
low
by
color guards of
stimulate es¬
production and
3.
Over 1,500
Regiment Band. There
cutbacks make factories
civilian
furnished
was
Continuance
when
cooperation
employes of the bank, attended
this rally. Music for this occasion
this goal
a
whose
exhibit
huge War Bond Rally.
It believes it can achieve
income.
this
possible, were
guests of Bankers Trust Co. at a
newer,
They don't
don't know America.
Yet
.
f .' -<
1
and workers idle, to
lurks in deserted factories.
the
in New York City.
On
Friday afternoon, Dec. 8, repre¬
sentatives of the several patriotic
sembled
double taxation of dividends.
buffalo nickel.
a
Tax
of
That's
cost.
■■■/
a
government.
The Indian was a poor provider,
'but he had a way with his dog.
because of its grave respop^imi;- There was a time when the hunt¬
ities to 30 million job holderSfand ing was bad. The Indian was able
18 million investors.
to
'
get along on vegetable life,
while
the
poor
dog began to
What is the highest income tax
"/
goal worth shooting for.
;
shall
we
many
heritage that makes us, the
of these United States,
masters 'of our Government/ not
'
i
our
of
people
them, not in the ponderous com¬
sqm.e. degree
Our
If taxes weigh too heavilv
This cost would be
S3 .billion,, which
with interest
payments of $6 billion, would require $9 billion annually for debt.
u
tax
a
will
encourage
the
American clan of progress by im¬
proving the product, the service
at the rate of
be reduced
uoon
ohere' that
a
Many believe that the debt
'•should
ual taxpayers compares
forward to tax
years.
cern
retire-
debt
20
of the nation assert that
creators
we
'
favor
8 to 9
balance
This program to raise eight to
nine billion dollars from individ¬
rate
surtax
and
proclaim that we cannot maintain
continued prosperity in peacetime
'
cent
t>0,000,000 individual taxpay-
ers-^-the
indicates about
—
normal
for the future,
jj $2,222—or, in terms of the 50,000,-
.
30%
And again I am proud to report
that in considering the tax needs
billion national debt
per capita obligation of
per
and
not con¬
clusive,-this much is clear; the job
work,
corporations give employment to
$300
Ninety-nine
3. From
In
make dur¬
we
years,
less
,
.
on
public buildings, trucks, buses,
ships, railroads and highways.
'!
25Y" to'30Y
erations.
easy
from levies on useful properties,
the flow of goods and services
|
dences, factories / warehouses,
•
stimulate production
to
5
;
___•
corporation, earnings at a
fate-Y^_:_:_rii-_-6 to 7
'
•While these figures are
..
a
and surtax
should, be enacted.
lion is being collected by State
and local governments. The great
bulk of this $55 billion total comes
gold and silver, stocks of goods,
urban
and
farm
lands,
resi¬
means
cent of the
believe that
corporations should be
on
taxes,
levies
cellaneous
i
2. From
"
excise
expanding government
private enterprise.
, -A
decisions
the
ing the next few
write the history
They do
-
,
-nation; is roughly equivalent to
all its accumulated wealth—all its
A
Billions
estate
and gift taxes', customs and misY
In
•
nearly twice the assessed valua¬
tion of all taxed property in the
;
the industrial
rates ranging
70%.
wide variation
a;
patriotic
as
profits rate should be
the transition period. In
normal
consumes
.
Three hundred billion dollars is
•
income; in the post-war
here is a way in which we
could balance a $20 billion budget:
\'Y
support
Nor does individual freedom sur¬
vive when
tional
historic
for
brings- about a progressive moral
decay of its citizens.
"
It is not the way of free people
to
seek something
for, nothing.
years,
X. From
people to look to
Government
,
and the
of rigid economy
burdens
tax
sharply focused
what adjustment in
combined
present level of na¬
our
*
.
that encouraging tax pol¬
icies : will make
it
possible to
assume
maintain
%
teaches its
and
the
reduction in individual rates.
no
to
govern¬
spending feel that a peace¬
time budget of $20 billion or less
could supply us with very-ade¬
quate Federal government. If we
will re¬
excess
50
of
ment
be a definite and direct factor in
not look for¬
jWe -should- stop that - annual
maintaining employment after, a
taxes; they .realize;
sharp curtailment in war expendi¬ guessing game and repeal the cap¬
heavy taxes must > be paid for tures.
ital stock tax and declared value
/•;:/" V-', /"
years to come.'
excess
profits
tax — and
we
Progress and Peace
Federal taxes now flow into the
America's
economic
objective should eliminate the penalty tax
U. S. Treasury at the rate of $45 must
be. more goods
for more on consolidated returns and the
a
balancing of the budget.
to
they
willingly
you
jobs in the transition phase.
•
The composite average of all the
rates suggested —* and there was
Addi¬
What
is
students
*
,
It is the grave
on
war
proud to report that
industry
citizens;
truth is that we
be close to the very limit of
borrowing power, requiring
the
Realistic
.
,
History's ruthless reeords show
that any-nation which overspends
Total
war,
—RIGHT BEHIND THE EARS.
Peacetime Budget
A
ex¬
reduced at the end of the German
500
replied
was
starting peacetime
30%, reserving only
right to ask revision if this
proves by actual experience to be
too high.
,
tax curve.'
war
of 40%
practically
have
*
'
,
Seventy-five per
businessmen, polled
,,
am
of
ward :to
The plain
will
,
First, I
their
billion at the end of the
$300
revenues
machine
war
panding.
Early in the
from
ness community
iTrirct
T am' rvn
ation
to
supply- needed
the
poll, 92% of
leaders
suggested
have
States.
matters.
tax
-
Repudiation/ in whole or in
or by cynical- financial oper¬
would " be completely im¬
moral.
Every bond must be re¬
deemed by hard dollars.
•
It is said this debt will amount
profits
excess
our
I believe, accurately reflects
the sentiment of the entire busi-
to
when
made in
say,
mien
90%
a
a
the
who, as members of
the first in America
the
number of funda¬
a
on
I
weeks
industrial
mental
i
rate
the
with almost
taxes
questions
part,
war.
recent
hundreds
tional
their dreams of peace.
Joes for
in the
production
opinion
for ourselves
the pub¬
leaders from
the
all
/mt
■i
to
,
were
There
paring expenditures to
hardpan of essential, ines¬
business
bonds—upon
,.;j
challenge
The dog was weaker inj
strength; but stronger in affection'. •
same
procedure
happened
again, and 'again and again,; until
finally the dog's tail was cut off
The.
rate of about
,
that the amount of
for
discussed
ing powers is the national debt.
The
debt
is built upon war
j
and
to. advocate
our
lawmakers the critical
our
Within
in
dimes from piggy
banks; dollars from hard-handed
workmen; savings for old age, and
many a thousand laid up by GI
first
industry
in
us
Industry and Jobs
reappraising our spend¬
♦
first
the
excess
profits rate
scaled up to 60%. As we ap¬
proach' total Victory, and the bud¬
get is substantially reduced, In¬
dustry feels that we can reverse
capable items.
Perhaps the greatest reason for
house
.
member
to impress upon
we are
lic and
•.
financial
let
ment extravagances
Congressional reorganiza t i o n
again should unite the spending
and taxing committees.
The bal¬
anced budget should be an object
of:national policy; not a coinci¬
dence."-''.
i The National Debt
our
to
are
wa$
government we ask for is essen¬
tial.
We cannot request govern¬
was the
committee.
This
if
putting
women
.
our
,
as
make certain
'
procedure was abandoned—
and so were balanced budgets.
order and
individuals, as;
never, as
dollars to spend as he can
peace,
wise
,
is
NAM,
social-1
get by reasonable taxes.
In pointing our budget toward
of com¬
budget
one
.
leaders
same
deficit
cities, as States
and as a nation, we must learn
that Uncle Sam has exactly as
many
lingly accept
...
or
businessmen,
the raising of rev¬
the
to
function
■
Now
the spend¬
"'""V.-"
mean
believes
that. the
95% rate on excess profits should
be reduced after Hitler Germany
falls. This opinion comes from the
Federal
prolong
ing deb.fr are short cuts to,
times, a unified ap¬
earlier
and
men
unanimously
Subsidies and mount¬
financing.
i
Yet our Congress has one group
enues.
of
jobs.
ployment
r
follow if
must
seeking
in
which
favors
"
mittees to plan
effects
persist
we
apart from spending.
They
lare
as
inseparable as production
and sales.
One cannot long exist
without the other.
•
of committees to plan
This will
maintain the present level of em¬
para¬
are
'
Painful
tion
ing and a separate group
strength until we
lyzed.
ren¬
.
to
Here
a
our
>-
dered..;";
■ yM
>
It is futile to consider
the
on
world of 2,000,000,000 people.;
future, a challenge as inevitable
We cannot aid the world if we
as .the defeat of Germany.
bankrupt ourselves trying to re¬
Business leadership almost
make it.
We must not transfuse
in
Spending Makes Taxing \
The only logical approach to
the problems of taxation is on the
basis of spending.
We can have
no
complaints about the tax bill
if
;
home
companies must
civilian business, if mil¬
have.
debt., or both:
-: ,
,\
We are only 135,000,000 people
:
^
turn
up
composite picture of industrial
opinion.
And so, what I present
to you is mostly a reflection of
materially.
lions
piling
ling industry with taxes or
—
I
■
next day.
poll of executive opinion,
industry might" wil¬
I believe that
that thousands of
exceed that budget
either by strang¬
greatly
.;
production will be cut
war
back
r
moment
that
front,
invites disaster,
the
of
'again subdued,
At
a
accustomed to.
States is
end of the country
one
other—on
mean
greater proportion of income di¬
verted for taxes than the United
in advance.
covering
would
and
peacetime
it
doing
be
surveyed the field
to
thjat great day when the German
is
(Continued from page 2595)
subject.
all' looking forward
are
Thursday, December 14, 1944
rate
in
discouraging
the incentive for greater produc¬
tion and employment? Industry's
corporations
peacetime
without
answer
nessmen
indicates
favor
peacetime tax
a
on
pay
can
that
most
25%
busi¬
maximum
corporation in¬
come.
From
talks
around
the
country
starve.
In
an
L. Johnson In Syracuse
SYRACUSE,
Y^~ Louise
Johnson has takeover. j,he office
of Birnbatiin
&\po., iii'rWe State
'
Tower
ness
Building/and wil/
as
L.
Johnson
Johnsbn
was
&
Jdo busi¬
Miss
Co.
formerly
manager
and trader for Birnbaum &
Co., in
Syracuse.
day
piece of
outburst of pity, one
the Indian whacked
off
a
Goodman Visits NY
dog's tail and fed it to him.
The dog was hurt,, only momen¬
the
tarily and
th^^^jW^t lasted
so
good that he
bis master's
hand',
t.The cpcra.;cn.£p£ .repented.the
Gerald
M.
President
of
St.,
Goodman,,
of j^ord,
California,] ^2.10
Los
West Seventh
Angles, is
Wall/Street, Y,
■
Vice-
Abbett & Co.
visitor to
a
,
,
(WsWeWii fediD^Lnihii^Kmiti jjwwrjwwWAJ wxtwvui tai.te/tWKM (tTOW,iw» mawum
m
Volume
THE COMMERCIAL &
Number 4342
160
The
period following the .close
financing
than $3,975
Dec. 20 is
on
likely to be one of higher living
activity in the municipal period.
marked
field, particularly in the trading
and
distribution
departments.
These latter have necessarily been
more
since
less, dormant
or
An
tion
the
of
dealers
rather
is
large.
total will be increased,
the several
of
as
a
issues of
The
-
result
general
market interest scheduled to reach
the
market
by
East
the
Baton
Rouge 1 Parish S. D., La., and
$7,500,000 by Houston, Tex., Inde¬
pendent School District.. ;
Except for foregoing the ptesend
calendar
other projected
only
by
Minn.,
Olmstedt
Dec.
on
They
and
County,
on
$800,000
Dec. 26.
Whether
*/.• *
-
Other
vember
ensue
over
the
and
other
chances
the work progresses. Continued
of
the
present
debt
as
new
will
to
the market
and
in¬
are
clined to react quickly to any
in¬
bearish influence.
a
was
the
forcefully illustrated
recent
past. when
many
people were inclined to accept the
theory that the war in Europe was
already won and to speculate in¬
probable
changes to be expected in the im¬
creasingly
on
High
the
-
mediate future.
.
prospects
the
among
diminution in
expenditures
come
in
to
a
Twin
a disposition
of some taxing units
to dispose of bonds, both for re¬
funding and new capital purposes,
which ordinarily would have been
price level and
the part
.
withheld from the market until
later date.
a
Although sub¬
MINNEAPOLIS,
held
meeting
on
noon.
tremely sensitive to reports, how¬
ever
unfounded,
of
projected
changes in the nation's tax struc¬
ture.
■
"
'..V'v
Dec,
election
9, beginning at
■
12
!'
nominating committee has
Bonded debt of Nassau Cdunty,
on
effected
be
can
may
be fur¬
receipt showing to
what date delivery
and if desired de¬
restricted
—
Vice-President—Rollin
An¬
G.
drews, J. M. Dain & Co., Minne¬
apolis.
"v.
Secretary-Treasurer
—
Warren
-Gochenour, Jr., Irving J. Rice &
Co., St. Paul..
>:>-■
;
•
Board of Governors—(Three to
be
elected
from
Minneapolis for
two-year terms) J. P. Arms, J. P.
Arms, Inc.; George Belden, Frank
& Belden, Ipc.; G. L, Grandin, Jr.,
and
Lud
C.
Vobayda,
of
were:
the
P.
First
nominating
W.
Loudon,
Piper, Jaffray & Hon wood, Chair¬
man; F. S. Goth, Merrill Lynch,
Pierce, Fenner & Beane, St. Paul;
Ray F. Weidenborner, HendersonWeidenborner Co., St. Paul; Carl
Kail, First National Bank of Min¬
neapolis,
and
L.
B.
Woodard,
Woodard-Elwood & Co., Minne¬
apolis.."': '
Albert
Goldman
in
regarding mailing of Christmas
and
parcels said:
don't
now,
delay
any
carefully, addreps
prepay postage fully and
mail promptly.
y
• ?
v/i
wrap
"Pack and wrap
packages care¬
fully, use strong durable con¬
tainers, strong paper and heavy
twine,
tie
securely
and
knot
the twine
where
crosses.
plainly
and
com¬
pletely, use ink or typewriter,
show street and number, if to an
office building show room num¬
ber, or post office box or rural
route number, write name of the
post office
don't
In
and the State
abbreviate."
earlier
an
notice
in full,
V
(Nov;
16)
interesting situation with an
post-war outlook, ac¬
attractive
a
memorandum issued
by G. A. Saxton & Co., 70 Pine St.,
York
City.
Copies of
packed in order to avoid damage
or possible loss of contents while
in transit.
The
of
good quality
and tying with
use
this
Novestilser Steel
GuSpui
Off-1LM Tola! Up
Situation Looks Good
Wellman
Engineering Company
November
and
Steel
Institute.
This
with October production
of 7,615,553 tons (a revised figure)
and
November, lj)43, output of
7,371,975 tops., Part of the decline
r
stabilized tax rate de¬
of Rambo,
Keen, Close & Kerner,
spite the loss of millions of dollars Inc., 1518 Locust' Street. Major
from the tax rolls.through the ex¬ Kerner, who ha&'been in the Army
emption of FederaLowned prop¬ since April, '1942^ wasJ'stationed
erty and the necdskity. of'giving with, the United'States Air Force
country employees earning less in England for the past 26 months.
j; American
T Smelters,
ad¬
vised between 39 and 40, got
down to
39^.'
opinion is in itself indicative
the
opposite occurring.
of
That
An average
some
and 43.
to be
studied the
charts,
glance.
stacle
could
secret.
it
at
a
there acted both
was
brake and
a
numerous
see
The fact that this ob¬
a
No
caution
35.
Molybdenum was
winds
bought between 34 and
Its low point was 34^. began.
From 36 to 37 this
as
gas
sooner
it
was(
thrown
were
h
and
e ay
the
to
buying
y
'
*
*
❖
meets
one
It would be
pleasant to say
buying came
from
so-called
insiders, or
from the mysterious "they"
An
ex-dividend pulled
who
make
things happen.
Glenn Martin into the buying
But the truth is
obstacles.
Stop should also
be raised from 32V2 to 33.
Stock
zone.
to be taken
was
if obtainable
on
between
21
that most of this
that
smart money
no
and 22.
With the
help of the
it
managed, to
Stop in this one
ex-dividend
get to 2W2.
interest.
and file
the
showed little
It
or
the rank
was
which did the
ing.
buy¬
;
,
remains the same—20.
'■='
:
Then, why do
r
follow
Timken-Detroit Axle
came
number of times.
a
a
fraction
or
Outside
so
34
across
stock has
the market
of
Simple.
public on
too often to
tentialities.
ask, do I
I. have
a buying
disregard its
So
•
I
po¬
follow
it.
But I don't have to believe in
it.
I guard
myself with stops
and
advise
to dd the
V ,V; '''V;'i'
you
'•
same.
next
Thursday:
\—Walter Whyte
[The
article
time
views
do
in
expressed
not
necessarily at
coincide
Chronicle.
with
They
those
are
this
any
the
of
presented
as
those of the author only.]
LAMBORN & CO.
From a
day-to-day trading angle, any
stock which has just made a
new
high should be watched
closer than ever.
Any suspi¬
cion
you
1
take the bit in its teeth
spree
the stocks that
or
to make it
go
it?
the
seen
into the list when it hit 33V2
up.
decline
99
WALL
be
must
STREET
NEW YORK 5, N. Y.
SUGAR
viewed
ism,
has
As
a
DIgby 4-2727
matter of real¬
stop in a stock which
just made a new high
shouid
be
placed lower than
Reason is that
there may be a shakeout of
weak late buyers.
And an
is
Exports—Imports—Futures
a
Established
customary.
F.
H.
Koller
&
Co.,
Inc.,
Members
Ill
York
New
York
New
American
Christy
diana
memoranda
a
Industries,
Clay
Limestone
and
levels.
which
the
& Co.
Curb
Exchange
Cotton
Board
Orleans
may
F.
H.
be
of
Cotton
Inc.
.
Trade
Exchange
And other Exchanges
firir
N.
Y. Cotton
NEW
from
Exchange
Exchange,
Exchange Bldg.
YORK
Copies of these in¬
teresting, circulars
request
New
Exchange
In¬
upon
rent
Chicago
Laclede
Products
York
■-
Stock
-
Commodity
.
Greai
on
I
H. Hentz & Co.
New
Broadway, New York City, have
prepared
1856
*•:
Situations Of Interest
1,718 409 tons
ber, 1943.
level
Dow
was no
passed than bearishness and
believes appear attractive at cur¬
week in Novem¬
150-152
obstacle
tious.
stop from 37^ to 38.
of 1.691,966 tons of
steel was produced per week in
November, compared with 1.719.086 tons per week in October and
per
the
was an
pedal. For
so
trouble between 42
long as stocks refused to go
But, once through there, dt through it people, if they
can move
nicely. Raise your weren't bearish, were cau¬
Expect
ticable.
in
in
production, as( ."compared to
Y„ will decline to $42,998,000; qffers interesting possibilities acbecause
of
the
cording to a circular issued,,byj October
as
of Dec. 31^1944, reflecting a
Wm. J. Mericka & Co.,
Inc.^.$Pj sorter mpriih of November. The
reduction of approximately
Broadway, New York City, mem-; ^tg^te's 'statement continues:
000,000 from the" peak; figure of
hers of the Cleveland Stock Ex¬
steel production in the
$57,584,000
which
obtained
in
change.
Copies of this circular' ^rpt.-Tj., months of 1944 was re1938.
Tins excellent achievement,
inay be had from the firm upon pprtecTat 82,199,288 tons as against
coupled with the fact that the
request.
81,581,222 tons in the correspond¬
county's tax raid of $1.05 per $100
ing period of 1943.
will be! continued in 1945, high¬
During November the industry
light the proposed budget for that Ma j. Kerner Back at Desk
operated at an average of 94.1%
year announced by County Ex¬
PHILADELPHIA, PA. —Major of capacity, as against 95.6% of
ecutive J. Russell Sprague.
Raymund J. Kerner has resumed capacity in October and 98.6% in
Mr. Sprague has been able to active duties as a vice president Novembet a
year ago.
a
,,
Iron
production
Again, I repeat last
week's statement, which said
in effect that a
unanimity; of
ures, or
sj«.;•
7,258,534 tons of ingots
and castings, reports the American
Steel
totaled
N.
maintain
market?
through blue rather
than
through
rose-colored
glasses. Yet, from a week-toweek stand, this is imprac¬
compares
>
>-
nothing ahead of it.
Mr. Goldman in calling attention
Theoretically, this should
to mailing of Christmas gifts and
make for smooth sailing to
cards to civilians abroad, said:
"The Christmas Holiday period higher and better levels.
Un¬
is fast "approaching and the quan¬
happily, this is only theoret¬
tity of mail for foreign destinations ical.
For, actually, the ab¬
will increase materially.
Condi¬
tions in certain countries, together sence of discernible offerings
with lack of transportation facil¬ ahead isn't a guarantee they
ities require the early mailing of don't exist.
Frankly, the at¬
Christmas gifts and cards, par¬
tainment of a new high has
ticularly those destined to distant
frequently been a danger sig¬
countries.
nal rather than a green light.
"Letters should be plainly and
fully addressed, bear the return I tell
you this not to discour¬
card of the sender in the upper
left hand corner and be fully pre¬ age you but to warn you that
there's nothing certain about
paid. Parcels should be properly
Stoker Looks Good
cording to
L
*
.
of
wrapping paper
strong twine is recommended."
..
Standard Stoker Co., Inc., offers
an
week's column.
the
to
"Address
\
memorandum; may be had from
the firm upon request.
; ;
"/
j
article
return
"Mail
President
Guy
M.
Phillip,
Caldwell-Phillips Co., St. Paul.
Bonded Debt Cut $15,000,000
Since 1938
and
longer,
plainly,
presented the following slate:
New
Nassau County, N. Y.,
a
cards
MINN. —The
and
.
The
clusions mentioned above suggest
ex¬
should
whereby the sender ;of
registered
Postmaster
of
the Twin City Bond Club will be
sequent events illustrated that the
European war is far from over,
effect of the premature con¬
municipal market is
available
up.
Gets Slate for Dice
the
that the
care
that gifts are
Cards and Parcels
City Bond Gleb
Members
substantial lowering of
see
plainly and properly addressed;
"A very special service is also
28
committee
casioned
to
Mailing Now of Christmas
Mr.
National Bank.
The weight of this thinking oc¬
exercised
giving advice under date of Nov.
munici-
pals.
be
in¬
to
without
So much for the stocks you
have—now what about the
they were obtainable at Anybody who cared to take
prices appearing in last the trouble to look at the fig¬
the
Cliniax
Sprague's policy of gettting rid
Co.
value, of the
the
tax-exempt feature
much
due
sealed
transmission
for
a
ald
Federal tax load and consequent
the
debt,
adequately
strong grade
a
addressee in person."
Nas¬
with
Piper, Jaffray & Hopwood;. Don¬
McFarland, Kalman & Co.; H.
V. Tufvessen, H. M. Byllesby &
the possibility of an imme¬
diate downward revision in the
on
loading
taxpayers
safe
livery
,
dication of
.
County
annual
from
informed that
are
damage and particular
was
of the old debtt before the new
their
sign of
existing
price
Experience- has demon¬
trend.of
was
and
No¬
V
and
securely
paper,
whom
buildings
able.
♦,
a few were avail¬
I realize this time lag
only
or
ex¬
highways
(Continued from page 2598)
the list
registered
such articles should be
nished
capital
county
staggering
strated that municipal officials are
somewhat dubious as to the future
This
for
provided without
sau
that
safety
loss
fragile nature
a
after the war, but they may be
if the market shows any
in
county
this
peak in indebtedness.
penditures
This will definitely be the case
levels.-
the
make
additional
likewise
anticipate
monetary requirements.
retreating
that
to
There will also be
near
are
if
sure
period of years
over a
unknown
an
communities
disposed
be
for
of
U
the
at
may
will be
important im¬
provement without establishing a
Some of these issues,
have already come to
hand,
be
After the war it is
reasons.
by
is
unfortunate
but
there's
security, so
be done
damage i occurs nothing - thatj can
v:- •, ;
while in the custody of the postal about it.
service, claims for reimbursement
may be made. Postmaster Albert
In any case, here are the
Goldman also
said, under • date
stocks you bought.. At least,
of
Nov.
29:
"Patrons
sending
watches' or other articles of; a I assume
you bought them,
mail
;
domestic
bond issues
large volume
elections is
quantity.
year.
by
that,
than $1,000,000
more
sent
sumably this will be financed by
two
the
be
re¬
packed, wrapped in
appreciable bor¬
any
authorized
however,
A
made
Office
obliged to. embark! upon a $25,000,000 sewerage program.
Pre¬
St.
.
debt
the
saving of nearly $500,000 a year
in interest, it is significant for
Whatcom
latter
the
term incident to the
bonds
in
year.
a
County,
18; $629,000
Wash.,
rowing will
of
this
While the reduction in the debt
able
$1,-
are
'
ordinary stop would, almost
be certain to be caught.
So I
suggest the stop in TimkenDetroit be placed at 31.
Savs
recommendation, is
Post
Department that
Christmas gifts of watches, jew¬
elry or other articles of value
that has taken place to date means
Augustine, Fla., on Dec. 19; $1,000,000
Pert
of Palm Beach,
Fla.,
$3,299,000
A
the
2521
Tomorrow's Markets
Walter Whyte
■
Gifis of Value
war
,
is scheduled for next
means
few
a
sales of. partic¬
ular consequence.
800,000
the
reduction
scheduled
of
includes
the
meet
of
costs
achieved
duction of
'
awards
to
tomorrow; (Friday). expected that the county
The issues in question are those: of
$3,000,000
emergency
an
exceptionally high reduc¬
of
was
drive began, and as a-consequence
the supply of bonds in the hands
,
year
a
increase
temporary
FINANCIAL CHRONICLE
Register Gbi isiiaas
Municipal News & Notes
of the Sixth War Loan
aa.w«
i
had
KolIe»
CHICAGO
DETROIT
GENEVA,
4, N. Y.
PITTSBURGH
SWITZERLAND
THE COMMERCIAL & FINANCIAL CHRONICLE
2622
with
operate
"If I Were A Labor leader"
had shown
through
cooperation and
collective negotiation rather than
through political compulsion. For
the
this
patriotic attitude of his, every
political, in¬
tellectual and
spiritual freedom
American who values
than
more
economic
temporary
advantage, owes him a profound
of gratitude.
For the most
debt
sinister threat to the future
American
the
is
Republic
of the
pur¬
poseful effort we are now wit¬
nessing to divide our people along
horizontal class strata rather than
on vertical lines of political con¬
always charac¬
terized our nation in the past.
What I think I would do "If I
viction
Were
breaks
naturally in my mind
parts: First, in respect
members
themselves;
four
into
Leader"
Labor
a
union
second, in respect to employers;
third, in respect to the general
public; and fourth, in respect to
government.
As to union members I would
should be skilled in collective
negotiation, and trained carefully
labor law and particularly in
the technique of the intelligent
handling
of
grievances., They
should be outstanding advocates
of
the
basic
principles of fair
dealing and the ideals of social
stewardship which trade unions
in
must
practice, if they are to fulfill
great opportunity for public
the
service
which
confronts
now
them.
but not least, in dealing
Last,
that have
down rather
to
build up an adequate force of field
men to service local unions. Such
men
with
union
leave
members
stone
no
should
I
unturned
edu¬
to
cate the rank and file in the basic
concepts
which
on
freedom
rests.
of
our
American
these
vital
of
One
the
most
principles is the
maintenance of private competi¬
tive business.
freedom,
Without it, political
civil and religious
and
freedom
and labor union free¬
—
dom, too,
—
will
soon
disappear
they did in Germany, Italy and
Russia
long before the present
stress
the . fact that
those who receive grants of power
as
of human activity
commensurate re¬
sponsibility for their acts—if so¬
cial chaos is to be avoided. Offi¬
cers of corporations, for example,
must take on their shoulders the
war
constantly
who mational freedom involved in in¬
dustry-wide collective
bargain¬
•
tude, in his'efforts to solve both
(Continued from page 2594)
labor
employer
an
fair and decent atti¬
a
and
short-term
long-range
And I
problems of his business.
should
ter
recognize, too, that no mat¬
much cooperation is se¬
labor leadership and
employees of any business,
how
cured
the
from
there
is
substitue
no
namic vision
of forceful
We
for
the
and catalytic
power
by
po¬
litical action, but not genius and
character
and
leadership.
The
comparative few
of life
butes in
—
in every walk
who possess such attri¬
—
outstanding degree are
the great benefactors of civiliza¬
tion. It was Washington who held
the struggling colonies together in
their fight for liberty — not a
junta of the rank and file. It was
an
who
McCormick
successful
reaper
It
of farmers.
vented the
the
built
not
—
was
a
first
group
Bell who in¬
telephone
not some
—
manufacturers' association. It was
Marconi
who
It
discovered wireless
not a labor union.
Lincoln who drafted the
telegraphy
was
—
Gettysburg Address
—
not a gov¬
So
ernment commission.
as
bor leader I should resolve
a
la¬
in
Applied to a country
the
as
United
States
as
large
with its di¬
field
any
accept
must
An informed cit¬
broke out.
izenry is freedom's only safeguard.
relations
with
pseudo-labor
ment and
Hence
do
as
a
labor leader,
within.
I should
that the
utmost to see
rights of individuals are given
adequate protection in accordance
with the genius of our free Amer¬
ican institutions.
To that end, I
my
should advocate
secret ballots on
all
important questions, particu¬
larly in respect to strikes; the
election of union officers at fre¬
and regular intervals; a
strict accounting for all funds col¬
lected, both by local and inter¬
national unions; the outlawing of
quent
initiation
exorbitant
the
dues;
of
the
rules
the
careful
of
effect
on
union
economic
fees
seniority
members
body
and
politic
as
on
a
whole; and adequate safeguards
against the use of coercive meth¬
ods in the enforcement of union
membership.
trader's
securing
I should recognize,
imply
attitude
of
vantage as
omy
a
can
I
of
of
mind
horse
—
the
much selfish ad¬
possible. Sound labor
free national econ¬
a
be maintained on
horse-trading
basis.
set my face like
never
greedy,
Hence
sort
a
as
relations and
the
tie
hands
of
those
for their workers than the rest of
able to do.
It
undermine
the
authority
industry
would
was
and
responsibility of local union
leadership. It is open to the same
criticism that
has
been
lodged
against so-called "big business,"
for it
creates
"big labor," and
"big labor," because its leaders are
human beings just like the leaders
of business, is just as prone to
misuse
its
authority as certain
elements in "big business" have
setting
Charles Evans
Hughes, Mr. Bern¬
Baruch, Dr. Charles A. Beard,
Dr. Robert C. Sproul
to work
out, after ascertaining the view¬
point of representatives of labor
and business, a program of con¬
bargaining
groups
in¬
volved, by which the cost of ab¬
normally high wages, arbitrary
restriction
of
production
and
employers
.
should
possible
to
within
Woodrow
said, "The business of gov¬
a
in
the
face
of
acute
class
If I
were
a
labor leader at the
local
level, I should cultivate the
business with whicfi my union
was associated just as carefully as
a
farmer
farm.
conserves
the soil of his
Everybody knows that if a
farmer
does
ground,
control
not
fertilize
his
erosion, and ro¬
his crops properly, his har¬
will be lean, and eventually
State,and,
is to
see
as
...
.
that
no
body or group of men, no matter
however, I should never go in ap¬
pealing to the State for help in
solving my problems.
business is, may
come
into competition with the
authority of society." So if I were
a labor leader I would recognize
that advocacy of the closed shop
choose
simply hastens the day when or¬
will
ganized labor will find itself dom¬
inated by government.
For the
American public will not tolerate
indefinitely the arbitrary exercise
of economic power by labor lea¬
dership backed by the closed shop,
any more thhn it has been willing
to tolerate arbitrary power in the
hands of management.
/ • " '
do
what their private
When
all
is
said, government's
place in labor-business relations
in the future will be just about
what
business
to
and
make
universally
its
utmost
to
labor
ready
group
jointly
If
and
tate
vest
draw
'to
to
free
why
rec¬
with the public in¬
at every point..
up
our
men
with
a
business
are
desire to
maintain
in
America,
institutions
not act as intelligent,
can we
free
and
labor
in
sincere in
our
such
any
it has tried
paramount
we
and
Congress
that
ourselves have helped to form¬
we
present
constructive
ulate?^
program
■>/ '/,
/.•••;_
/
•
The questions involved are cru¬
cial. If our freedom is to be pre¬
:
served, they can be solved only
through real cooperation carried
forward in a genuine spirit of selfrestraint and mutual understand¬
ing, Here all patriotic labor and
business leaders find a challeng¬
ing opportunity to serve their
country in a very practical way,
leave
and
America
United
the
little
a
States
better
of
because
they, too, have passed through it.
The Business
Man's Bookshelf
Economic
Policy,
Ends-—Post-War
Bulletin
No.
Commerce
12
of
Means
and
Readjustments
Chamber
—
United
the
of
States
of
America, Washington, D. C.—
Paper—50
Excess Profits Tax Relief: The
Cyclical
*
Provisions
—
Joseph
L.
Snider—Harvard University Graduade School of Business Admin¬
istration, Soldiers Field, Boston 63,
Mass.—Paper—$1.50
Inflation
No
J.
Coming—William
Baxter—Internation
Research
Economic
Bureau, New York City
—$1.00
*
Railroads
A
graphic review
analysis of the American
Railway Industry—Merrill Lynch,
Pierce, Fenner & Beane, 70 Pine
Street, New York City—Paper
—
and
Readjustment
Industry
War
trial
Relations
of
ment
of Manpower in
During
from
to
the
Transition
Peace, The—Indus¬
Section,
Economics
Depart¬
and
Social
Institutions, Princeton University,
Princeton, N. J.—Paper—$1.25 '
War and Peace Aims—Extracts
from
Statements
of
United
Na¬
tions Leaders—United Nations In¬
formation
nue,
voluntarily
Office, 610 Fifth Ave¬
New York City—Paper—500.
Available On Request
collective
negotiation work successfully; if
it will universally and voluntarily
refrain from any semblance of un¬
Schenley Distillers Corporation
have prepared an attractive book¬
let
containing the first articles
fair practices such as labor
in the series they have been run¬
ning in the ''Financial Chronicle."
Copies of this booklet may be had
upon request by writing to Mark
Merit, in care of Schenley Distill¬
ers
Corporation, 350 Fifth Ave.,
New York 1, N. Y.
union
baiting in any form, or discrim¬
ination
against any man who
join a union; if labor will
sation,
pension
programs/ and the soil will wear out and the
voluntarily relinquish its efforts
wage and hour legislation have farm will be abandoned.
If I were a labor leader; I would for the closed shop or any form of
Similarly,
cut the ground from under the old
coerced union membership; if the
every business needs to be tended make clear to the public that I
labor union will regard itself as
arguments for make-work and and nurtured carefully. If man¬ was
opposed to compulsory arbi¬
feather-bedding rules, and hence agement brains are
an
integral part of the business
lacking; if too tration of labor disputes in times
I should work steadily for the
much goes to the customer through of peace.
For if government as¬ enterprise in which it operates
abolition of all such restrictions.
and
give voluntary support to
unintelligent pricing; if too much sumes the power to fix wages
Moreover, as a law abiding citizen is paid out in dividends to the
business in the intelligent han¬
through compulsory arbitration, it
as well as a labor leader, I should
dling of wage rates and the main¬
stockholders; if an amount clearly must sooner or later also control
be an uncompromising crusader
beyond the potential earnings of prices in order to protect the pub¬ tenance of productive efficiency—
against racketeering practices of the enterprise is disbursed in lic
interest.
Thus
compulsory by such voluntary procedure, and
every description.
wages
and salaries, the whole arbitration leads straight to some only by such voluntary procedure,
On
the
constructive
side,
I business
eventually
fails
add form of collectivism and even¬ can America remain a land in
should do my utmost to develop stockholders and employees alike tually to the loss of our hard won which/our children can continue
able and intelligent union leader¬ go down in common ruin.
to enjoy the blessings of liberty
So if liberties.
I
should also recognize
ship. I would establish standards I were a labor leader I would do
as
a long after we are gone.
The problems that Mr. Green
of union performance.
I would everything in my power to co¬ labor leader the dangers to our
too, that Unemployment compen¬
present
well-rounded set of
a
ommendations which
business
it.
make
Congress at the earliest
moment.
The NAM is
nat¬
right which finds its culmination
in the closed shop is impossible to
fit into a democratic order.
Its
maintenance
creates
a
State
Wilson
cleavage.
and,
urally, I should support all rea¬
sonable legislative measures de¬
signed to protect workers from
unscrupulous employers and to
establish appropriate safety and
health
standards.
Beyond that,
ernment
exist
business
competitive
to
against anything that tends
develop group selfishness and
class hatred.
For history shows
convincingly that no form of pop¬
ular
self-government
can
long
icies that would stimulate private
sub¬
mission to
If
private
for
recommendations
crete
terest
Experience in England with
industry-wide
bargaining
indi¬
cates that the public interest not
infrequently suffers because of
collusive action by the powerful
might well join now in
a small committee of
public spir¬
up
ard
misused their power in years gone
my
maintenance of that right is a sine
of our free American in¬
stitutions. Any restriction of that
well,
as
the most eminent and
by.
qua non
flint
and
reexamination
rigid
to
seems
a
mo¬
ited citizens that this country pos¬
sesses — men of the caliber of Mr.
would
employers who wanted to do more
business
-
by voluntary reform from
manufacturer
a
as
It
countenance
.
discussing to'day
that both
leader of the
urgent
so
.
I venture to suggest that labor and
feather-bedding rules, are passed
not to along to the consumer through
anything "that would higher prices than would other¬
Hence union leadership now has a
Hence as a labor
destroy
for the generations of wise obtain.
vital mission to perform in train¬
Americans yet to be those well- leader I should recognize that in¬
ing their members in sound eco¬
of individual initiative dustry-wide collective bargaining,
nomics so that all will understand springs
from which, in a very literal sense, if generally adopted, will bring in
legal, social and moral responsi¬ the controlling part that tax pol¬ all our
its wake a high degree of govern¬
earthly blessings flow.
bilities
that
statutory law
and icies, savings, investments, profits,
As a labor leader I should, I ment control and a corresponding
ethical tradition have long im¬
dividends, earned surpluses, re¬
believe, give more attention to the decrease in that freedom of action
posed upon them. It is well that search, advertising and good man¬
public
relations
of
the
labor on which economic progress de¬
play in promoting a
such is the case. F'or power is a agement,
movement, than has been the case pends.
heady drink. So if I were a labor virile national economy. After all, in recent
years.
How wise, it
When it comes to relationships
leader, I would constantly em¬ business cannot exist without la¬ seems to
me, was Samuel Gom- with government, I am inclined to
phasize to my membership that bor, and labor cannot exist with¬
pers when he said:
believe that there is little or no
out business. But as a labor leader
the unions, too, must assume sim¬
"So long as we have held fast difference between what my atti¬
should always emphasize
the
ilar responsibility for their acts; I
to voluntary principles and have tude would be as a labor leader
and that they work against their fact that the opportunity for a
The func¬
been actuated and inspired by the or as a manufacturer.
own
long-range interests when union to function arises only after
tion of government in labor-busi¬
they oppose the reasonable a successful business has been spirit of service, we have sus¬
ness relations is, according to my
tained our forward progress and
amendment of existing statutes so established.
we
have made our labor move¬ way of thinking, threefold: First,
as to require the exercise of such
In respect to employers, I should
ment something to be respected it should fix the rules; second, it
stewardship. As Pitt said: "Where preach in season and out, this
and accorded a place in the coun¬ should administer them efficiently,
law ends, tyranny begins."
community of interest between
cils of our Republic.
.
No last¬ and third, it should function only
The arbitrary exercise of power organized labor and business gen¬
ing gain has ever come from com¬ as an umpire — never as a czar.
brought down the Interstate Com¬ erally,
and between individual
If organized labor continues to
pulsion."
;
merce Commission Act on the rail¬
unions and local management in
look to the State to secure priv¬
Yet in the face of the fact that
roads in 1887. The selfishness of particular/ In this connection' -I
ileges and economic advantages,
great
industrial
combinations should try first to ascertain those public opinion polls show that the which
it
should obtain by the
of
the
brought the Sherman Anti-Trust areas in which labor and business overwhelming majority
peaceful process of cooperation
Act in 1890; the Clayton Act in have
mutual
interests.
Having American people are opposed to a
with employers and through col¬
1914. Abuses in the security mar¬ established those common founda¬ closed shop or any form of com¬
lective negotiation, it will create
kets brought the Securities and tions,
I
should then approach pulsory union membership, many
a boomerang that will ultimately
Exchange Acts of the '30's.
Re¬ those problems on which there labor leaders still adhere to the
turn and destroy the power of the
fusal to concede labor the right was disagreement in the spirit of closed shop and the check-off as
unions themselves. This has been
to organize resulted in the Na¬
what I might describe as "collec¬ a major objective. A Justice of the
tional Labor Relations Act. And tive negotiation" rather than that Supreme
Court of the United pointed out most forcibly by Mr.
Green and his associates on many
just as surely as night follows day, implied in the term "collective States in an early decision said:
occasions.
legislation severely restricting the bargaining." Negotiation connotes "There is no more sacred right of
As a labor leader I should, of
activities of labor unions will be an attempt to secure a solution citizenship than the right to pur¬
enacted unless those evil prac¬ that will be fair to all interests sue unmolested a lawful employ¬ course, do everything in my power
to
encourage governmental pol¬
tices that do exist are eliminated concerned,
whereas
bargaining ment in a lawful manner." The
in
and I have been
are
conditions, it cer¬
tainly would not encourage the
establishment of struggling, new
enterprises in small communities.
sectional
verse
the
management.
distribute wealth
can
dy¬
ing.
ecember 44/ 1944
Thursday,
wants to
Attractive Investment
The
Public National Bank
and
Trust Company of New York of¬
fers
an
attractive
cording to
a
investment,
memorandum
on
ac¬
the
Sept. 30th, 1944 statement of the
bank, which is being distributed
by C. E. Unterberg & Company, 61
Broadway, New York City. Copies
of
this
may
interesting
memorandum
be had from the firm upon
request.
2
'
Volume 160
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 45342
EUGENE
THE
Calendar Of Mew
Security Flofations
'
NEW FILINGS
.
List
of
/issues
statements
days
whose,
filed
were
registration
fered
than twenty
less
Will be
grouped according to dates
on; which- registration statements will
in» normal' course become effective, un¬
ago,
'
■■
are to be of¬
stock which
debentures
for
sold
offered
■
The
100.'
common
the
of Arthur J.
account
President and Director, is to be
share.
' /'
■
Schmitt,
at $10; a
,
-
.
Proceeds—Company"will
less accelerated at the; discretion of the
SEC,
at
its part of
use
AMERICAN
j
shares
CORP.
PRODUCTS
has filed
I
HOME
14
a registration statement for 98,535
of capital stock, par $1 per share.
|Corporation
! ■;
tration
iof its, capital stock rights to subscribe
ers
stock will be offered, to the
public
25,
.
Piled Nov.
1,
400
1965.
.South
,
,
together with other funds of the
be applied tot the discharge of
expenses,
;
will
club,
the
-SOSS
MANUFACTURING
CO-,
registration statement for 98,772
shares
of common stock (par $1).
The shares are
issued and' outstanding-and are being sold
by certain stockholders.
Of the 98,772"
shares registered,, 83,772 shares are to be
offered to the public and an aggregate of
a
'
of
President
Vice
"'Chronicle," Dec.;
7,
(12-6-44).
DEERFIELD
-
V:,/V/
1,
The
1954.
underwriting
tion
1944.
on
effective,
the
of
date.; the
'
Jersey
merger
became
war¬
before Jan. 31;
number of shares,
or
to subscribe to a
38 '/r,; of the ■ stock held by •; them.
remaining shares registered will be
offered to the public.
;
:
.'■
Underwriting—Lord, Abbett & Co., Inc.
Registration; Statement Not 2-5543.Form
A-l. (12-7-44).
,sV,-'
1945,
equal to
The
/'/■/
OHIO WATER) SERVICE CO;
.
'
has filed
a
registration statement for 80,880 shares of.
WEDNESDAY, DEC. 20
stock,
common
$10.
The 'shares/ are
and1 arc being sold by
par
MONOGRAM PICTURES CORP. has filed
now*
registratidn» statement foe 100,000 shares
convertible preferred
is
intention,
enfci
capital
working
liabilities
rent
and
the
to/ use
such
for the reduction
of
approximately
by
SATURDAY, DEC. 23
has filed
a
.
.
POWER
ARKANSAS-MISSOURI
•
Proceeds—The
$300,000
York, heads the list of underwriters.
Piled
Dec. 1, 1944.- Details in "Chronicle," Dec.
7/,1944.
/v '
CORP.
registration statement for $2,n
rate will be supplied by amend¬
Net proceds from the sale of the
preferred stock, together with addi¬
tional funds from the treasury to the ex¬
required, are to be applied
,
,
4%,
i,
June
due
of
1965,
•1944:
'
• -
/'/•'-"
-
$75,600,
the
Details in "Chronicle,"' Dec. 7,
DATES, OF OFFERING
UNDETERMINED
1944.
Address—513
/ " '
''
"■
-
Business—Manufacture of shoes.-
.Offering—Price
below ;
-
net
,
,
A-2.
,
Z
in*
"Chronicle," /Oct.' 26/ 1944.
ALVA
SUNDAY, DEC.'24
THOMPSON
PRODUCTS,
CO. has
has filed
INC.
registration; statement for 60,000 shares
commom stock, without par value.
'
Address—2196 Clarkwood Road,
Cleve¬
land, and 23555 Euclid Avenue, Euclid, O.
Business:—Manufacture
and-sale
of", a
a
of
wide
engine and other parts for
trucks, tractors and motor¬
range- of
automobiles,
ized, military-
equipment/etc,
•
-
,
Offering—Price to thp/,public will be
supplied by amendment,
tv;
Proceeds—All of the net proceeds will be
,
added
to
,
the
company's' funds available
for general corporate
purposes.
Undcrwriting-^Suiith, Barney & Co., New
York,
and McDonald & 'Co,,
Cleveland,
head the underwriting group.
Others will
be filed by amendment.
*
Registration Statement No_ 2-5540. Form
(12-5-44/.
*
S-l.
MONDAY, DEC. 25
American
:
phenolic
"
due; ftu 1959
common;
stock
not
is
and
par, $1 per
issued and
represent new
345,000
share..
shares
-The
of
common
outstanding and does
financing by
PUBLIC
filed
a
TERMINAL
ELEVATOR
registration, statement for
$250,000, 10-year ,6% subordinated sinking
fund; notes,, due 1954.
Proceeds, will, be
of the real' estate
and the construction,, of ■ a ,ohe ZmilUbn.
bushel elevator, with-a three million bushel
headi house.)
W be" offered
mainly, toused
for
the
purchase
people*.in the Alva, Gkla., community who
are; interested,, in construction- of the grain;
elevator./ Filed Aug. 8, 1944.
/
CAPITAL TRANSIT CO. has-filed, a reg¬
statement
for
first
and refunding mortgage bonds, series A,
4%
due Dec. 1,. 1964.
The net proceeds
from- the sale of the bonds; and from a
istration
$12,500,000
cash
and, to
make payments on account of equipment
purchases, etc. Bonds are to be offered for.
sale
at
competitive bidding.
Filed Nov.
10; 1944.
Details in "Chronicle," Nov. 16,
bank, loan-
$2,500,000
will be
with
treasury
used for refunding purposes
1944.
corp. has
filed
a- registration, statement for $1,500,000 5%
15-year ■ convertible sinking fund" dsbenturfes
the.
pany.
Address—Cicero, 111.
or
com¬
EATON
The
HOWARD
dividend
of
have declared1
20' cents
a
share
a
an
extra
dividend
a
shave
payable. Decem¬
cents
for
FUND
Trustees
and
e r s
of
50
ber 23, 1944 to shareholders of
record at the close of business
December 15, 1044.
b a r g a i n i n g legislation,
should be denied to the party re¬
made under the law.
&
BALANCED
Benefits- of col¬
Piled July 21, 1944^ Details in "Chronicle,"
the
dividend'
rate
the-
on
stock
,
#IRE
-GERMANTOWN
INSURANCE
should
Dec, 12,1944
84 Federal Street, Boston
are
to
have
pre-emptive
to subscribe for the common stock
$20' per share in proportion to the
Stressing production as- the fun¬
damental
aim, Mr.
Baker re¬
rights
marked: "What is it
premiums- paid
by them upon
Insurance policies issued by Mutual.
Vot¬
ing trust certificates- representing shares
respective
subscribed
not
will
be. offered
to- the
and
voting
trust for
&
Bioren
Co,
are
May,; 29; .1944V,
June
1944.
8.
period of: 10 years.
underwriters. 1
Filed
Details
:
in
We want jobs
of living;
goods, better
homes, schools, churches, a fuller
gen¬
a
high
Americans
we
want in the future?
a
i
life
standard
better
and
more
eral public- at the same price.
All stock¬
holders will be asked to deposit shares in
the
The Garlock
ourselves
for
and
chil¬
our
December 12, 1944
COMMON DIVIDEND No. 274
At
/,
held this day, a
504
has
filed ' a"
$250,000
INDUSTRIES,
registration
6-% ,,ten-year
ing/Nov. .1/;,.1954.
statement
debentures
matur¬
of¬
was
stock of the Company,
cember
28,
record
at
the close of business December
16,1944.
R/M. Waples, Secretary
"These can come only from and
through production — more pro¬
duction, and still more production.
With this as our goal, it is plain,
everday, good sense to be FOR
those things that will help in¬
crease production and AGAINST
anything that will hinder it.
INC.,
for
Debentures to- be
quarterly dividend of
declared on the com'
payable De¬
1944, to stockholders of
share,
per
mon
<
PARK
LINCOLN
meeting of the Board of Directors,
a
dren—and above all, the oppor¬
tunity for self-advancement.
"Chronicle,"
Company
Packing
,
Policyholders of Mutual Fire Insurance1 of
at
Individuals
be
protected against mo¬
nopolistic activities, intimidation
and reprisals on the part of any
organization.
;
CO.
German town
:
.
..
.
.
STAR
OLD
LOEW'S INCORPORATED
"THEATRES
EVERYWHERE"
December 7, 1944
THE Board declared a dividend at the
of Directors on December
6th, 1944
rate of
50c and* $1.50 extra-per share on
the-outstanding
I
'
•
•
Common
Company, payable
Stock
of
this
the 30th, day of De«
on
ceinber, 1944' to stockholders of record at
the-clbse of business on the 19th day of
December, 1944; Checks will be mailed/
DAVID
BERNSTEIN,
.
■Vice President & Treasurer
Tho
Board
and Electric
held
AND ELECTRIC COMPANY
Directors
of
Louisville
of-
Gas
(Delaware) at a meeting
Company
December 8,
on
OF
OFFICE
,
LOUISVILLE* GAS
dividend:
1944,
declared a quarterly
of,
thirty-seven and one-half cents
the Class A Common
for the quarter endingNovember 30, 1944, payable by check December
26/1944*, to stockholders cf record as of the.
.
DISTILLING-
CORP.
The
TIDE
'-/
'
t.
WATER
POWER
CO.
has
filed
a
are
to1 be offered; for sale at competi¬
,
Sept. 28,
.
per share;
Not- underwritten.
20,1944. Details in "Chronicle,"
1944.
;
in
Mass.,
registration statement for $4,500,000' first
mortgage bonds series, due Nov. l, 1975;
and $1,000,000- sinking fund' debentures, due
1955
securities
dealer
.
was
of
Boston.
per
share on
of; the Company
close of business
quarter
check
record
filed, with the Commission
a
ending
18/ 1944,
G. W.
KNOUREK, Treasurer.
New York & Honduras Rosario
Mining Company
false
and failed to
120
Broadway,
New York,
/The
Securities
to
and'
has
a
whether
violation of the
Exchange- Act
of
1934.
This
is
the
first
complaint
broker
its
registration
and dealer
voked.
and
as
should be
whether
the
a
re¬
firm
should' be suspended5 ot expelled'
'^Ton^.tbe National Association of
S^UTities' Dealers, Inc. Action
was,
taken, by the SEC in
of
Board
Directors
of
this
1944.
Company,
a meeting held: this day. declared' a dividend
Seventy-five Cents. ($.75) per share on the
outstanding capital, stock, payable on Decem¬
ber 30th,
1944; to. stockholders of record at
the close of business on December 20th,
1944;
at
connec¬
distribution represents the final dividend
respect of earnings for the year 1944.
WILLIAM C. LANCxLEY, Treasurer.
in
charging violation of the rule pro¬
registration provisions of- the Se¬ mulgated by the Commission on
curities Act of 1933. by Ira Haupt Nov. 28,. 1942; requiring that, for
& Co.,. New; York City,, and, if so* the
protection of its customers, a1
w;hether
The
,This
pro¬
determine
there has been
Securities
the
Exchange
instituted'
Y.
369
of
Institutes Proceedings
Commission
N,
December 13th,
DIVIDEND NO.
keep current certain-
books and records in violation of
1944,
November 30, 1944, navabie by
to stockholders of
business December
report of his financial condition
icle," Oct. 12; 1944;
18,
December 26,
1944,
as
of the close of
arrested in Boston on
charges brought by the Securities
and Exchange
Commission that
Callanan wilfully and knowingly
bidding.
/Amendment filed Dec, 9;
1944:' Details "of original filing in. "Chron-
December
At the same meeting a dividend of twentyfivo cents (25c) per share was declared on the
Class B- Common Stock of the Company/ for the
tive
registered' broker and dealer shall
file with
the Commission annual
The
was
case
developed
DIVIDEND
WESTERN
NOTICE
TABLET & STATIONERY
CORPORATION
Notice is hereby given that a.-dividend atrate of $.50 per share on the;issued and
outstanding shares without, par value of the
Common
Stock of Western
Tablet & Sta¬
tho
tionery. Corporation has been declared payable
January 2; 1945, to the holders of record
such
shares at
the close of ! business on
December 20, 1944,
E. H, BACH,
on
reports of financial condition.
of
by
Philip E. Kendrick and Joseph. A.
tion with,
n,secondary distribution
of Park
of
Treasurer^
'
~
Turnbull, Securities Investigators,
of
stock
&
Tilford, Inc.
Hearing was set for Dec. 20 at the
.
Commission's New York office.
mmm
Attractive for Investment
Common stock of Central Paper
$10
and
and. the
Commission
.
attractive invest¬
COASTAL TERMINALS, INC. has filed
ment at present prices, according
a registration
statement for 25,000 shares
of common stock (par $1.0).
Proceeds will to a brochure prepared by Loewi
be used for the acquisition of 4and„ equip¬
&
Co., 225 East Mason Street,
ment and for working' capital
Pride to
public
Securities
Exchange
Department
of
Justice
have
reported
that
Charles J. Callanan, a. broker and
.
Company is
Filed" Sept.
Stcclt
Callanan Charged
lative
and
Price
to
noil-participating.
public will be $110 per share; proceeds to,
tompahy $100./', "Proceds will be used forconstruction of distillery, $250,000;, working
capital $250,000.
No underwriter named.
ceedings-
;-//'•
Philadelphia 32, December 1, 1944
agencies
July 27,. 1944,.
.
(12-4-44).
Secretary and Treasurer
/
fusing to utilize the machinery or
striking in violation of agreements
name;-
•Aug/24, 1944/
AERONCA AIRCRAFT CORP. has filed- a
"
to- the
the
^
lective
competitive bidding Rule U-50„ and names
Of underwriters will be filed by post-effec¬
tive amendment. Tlie succesful bidder wili
•
-
public will be registration- statemenfe^for; 75,000^ shares -of
55-cent
cumulative
convertible preferred
*:
proceeds, $2,073.- stock (par $1), and 33,600, shares of com¬
062, exclusive of. accrued interest, will ,be
mon- (par $1).. Of'the common stock to.be
used to retire company's, outstanding. 15offered/ 25,600 shares are. for account .of;
year
sinking fund debentures, due the Gompanyand 8.600 shares for the ac¬
Dec. 1,
Proceeds, will, be
1956t
The. balance, will not: he count of a stockholder.
allotted to-, any specific purpose and will
used " to increase' company's working. capA
be added' to the company's general funds;
italv
The* '8,600 shares being, sold- by: a;
/ Underwriting—Smith-,
Barney
& •; Co.,, stockholder are. owned' by: Carl X- Fried'Equitable Securities Corp. "and,1" Alfred D. "larider Who ' Will" receive the proceeds.. / F;
Eberstadf &' Co., New' York, is principal
Sharp As Co. > : /
-.v.- \.
Registration Statement No-. 2-5539. .Form underwriter.; Filed" Oct.-21, 1944. Details:
Proceeds—Of
.
Commission^
Filed' Aug;. 14, 1944. petails in: "Chronicle,"
by-1 amendment.,; ;•,/.'■/'•./•■ •■■•'■
filed
'
to
H. C. ALLAN;
,;
v
„
Economic
organization m e m b
be
held responsible
should,
violations of law.
a registration statement for 5,000
shares of $100-preferred stock, non-cumu¬
Gallatin Avenue,. Nashville,
Tenn. ;
'
Labor
.has filed
a list at Issues
statements were filed
twenty days t-or: more ago; but whose
offering: dates have not been deter3
mined
or
are
unknown to- ne;
<"
We present
Whose registration
statement: fbr, $5,000;000 15-year
sinking, fund - debentures, dud Dee. 1;
1959.
.
pursuant
company
outlawed.
December 11, 1944.
on
Checks will be mailed.
(37/2C)
istration,3 '//
*
General
and expenses, $80,000, total. $5;Stock is to be offered for sale by
031,270.
THE
GENERAL SHOE CORP.- has filed .a-reg-
,
to
Stock, payable December 22, 1944, to
at the the close
of business
raises prices and denies a
greater volume of products to. the
public; therefore the public should
be protected against misconduct
by labor even as by industry.
& -Eleetrid Corp. fof 4,200 shares oi
$6 preferred of Georgia Power & Light Co.
1944.,
.
.■
payment
Government
be
the Common
on
waste
shares
'
-
$1,400,000;
against Government
coerce
should
securities as provided in recap plan of that
company
($.50) per share
stockholders of record
■
the
company.
The bonds will be offered' for
sale-,at., competitive bidding.
Filed Dec. -4,
-
to.
redemption of 5,940 shares of 7% cumula¬
tive preferred at $52.50 per share $311,850;
donation- to Georgia Power & Light Co; tc
be -used for redemption of certain of it's
,
A,
series
1
-
Strikes
as follows;
a
final dividend for the year 1944 of fifty
legislative program, he makes the
following:
,
new
tent
Accumulated Surplus of the Company
cents
which
dividend
ment.
-
Quarterly Dividend
The Directors have declared from the
Five principles for labor peace,
should be the basis of a
The
$100).
company
177th Consecutive
■
000,000 first mortgage bonds, series A,
-3%
due Dec; 1,- 1974v Proceeds together
with generaH funds- of the company to-the
extent required; will: be used to- redeem/ at
105, of $2,350,000 first mortgage bonds;
,
shares cumu¬
(par
subordinate
fered'',directly. by the company at par and
registered consti¬
interest.
Not underwritten.
Proceeds- for
tuting. approximately-'66.53%. of the out¬
additional working capital Filed: Sept. 27,*
standing stock of the company, are owned
1944.,
Details in "Chronicle/! Oct. 5, 1944,
by Federal Water /&- Gas CorpV- which • will;
receive the entire proceeds from the .sale.
MOORE WINDSOR CORF, has filed a
Oil Feb. 10; 1943, the Securities and Ex¬
registration statement for. 100,000 shares of
"Production and' all' it involves
change Commission ordered! Federal to di¬
: 12 Va cent cumulative dividend and-particiis
a
vest itself of' its interest in Ohio-, and Ohiocomplicated business, but
pating preferred/stock, par $1 per share.
stated in its registration; statement it is
looked: at realistically there is one
The net proceeds of approximately $200;000
informed that Federal is selling the stock
will be used for working capital and ex¬
single factor underlying our in¬
In. order to comply with that order.
pansion of the company's business.
W, h. dustrial
economy which stands out
Underwriting—Otis & Co. heads the un¬
Cobb & Co./ Inc.,' New York,
is named
derwriting group.
above all the rest as vitally essen¬
.principal underwriter.. Offering price to
Registration- Statement' No. 2-5544. Form
That single factor is labor
the public $2.50 .per share.
Filed Nov. 10, tial.
S-2. (12-7-44).
"./T-,"/ ;./•■. •
1944.
DetailSv in/f'Chroniale;"
Nov.
16,
peace."
cur-
the production of its
Emanuel & Co.,
New
pictures.
Corp;
Stai;e; Street,,. Struthera,! O.
Business—Water supply of various types.
Offering—The,'".price"' to * the - publicwill
be filed: by amendment".
balancr in
motion
'
*.
additional
outstanding
Addresflv—235-
■V"
stock, par $10.
Proceeds will be added to
working capital: . Company stated its pros-;
'•
40,000
Federal Water & Gas
of. 5'A '/(•, cumulative
,
for
stock
peace. /
regis¬
a
,
.
a
on
statement
preferred
filed
has filed
registration statement for 50,distribu¬
.000 shares of eommon stock,. $20 par, and
stock of
voting trust certificates for said' stock;
capital: stock; purchase
them
lative
closed-end,
the
authorized;-the
holders of
capital
rants entitling
by Central Republic -Cow Inc., Chi¬
Dec, 7.
of
has
the
to
record
cago, and E: H. Rollins & Sons, Inc., New
York.
Filed Nov. 30,
1944.
Details in
"Chronicle,"
trusts
investment
corporation,
is
group
-
type have been merged into American: The
statement for $1,250,000
first; mortgage sinking fund bonds due Dec,
1, 1956.
Company will use proceeds to¬
gether, with treasury funds to the extent
necessary, to redeem at 10314 and accrued
interest, the outstanding $1,250,000 first
mortgage 5% sinking fund bonds due-Dec;
headed
v
Place;
Exchange
Offering—At market.
Quarterly Income
Shares, Inc., and the Maryland Fund Inc.,
has filed
CORP.
PACKING
One
—
city, n. j.
' ■/*-./, .;.///
■ /'":/'
/
Business—Open-end investment company.
registration
a
shares of capital stock.
Address;
1944.
TUESDAY,JPEC. 19
f "i /,
26
tration
CORP.
Gas
AMERICAN ' BUSINESS
SHARES,INC.,
has filed' a .registration- statement for .2,-
both
; 1
//;/;; "/'
I
555,867
and
Secretary, respectively.
The underwriting
group is headed by Ames,. Emerich St Co.,;
Inc., Chicago.
Piled- Nov. 29, 1944.
De¬
tails- in
of the face amount.
TUESDAY, DEC
Soss,- Henry- Soss and- Samuel Soss, the
purchasers being; President, Vice President
and
-
Registration Statement No. 2-5542. Form
.
Treasurer
■-
66%%
S-2.
15,000 shares are to be sold to Charles-J.
and
club;
Offering—The club offers the debentures
for -sale to its members at an issue -price
filed
has
POWER
FLORIDA
Redemption of 28,762 shares 7% cumula¬
tive preferred at $110 per share $3,163,820;
existing first mortgage indebtedness of
the
MONDAY, DEC. 18
'
'
Co/-for- investment,. Filed May
1944." Details in "Chronicle," June 8,
1944.
;■/.-■ ': ; '
29,
.
Details in. "Chronicle," Nov. 30,
1944,
—
'
1944,
$1,200;000
for
funds.
surplus
to
come
believes in high wages *'just as
strongly as does labor—but. to
maintain, this, wages must
be
based upon output, upon an everincreasing flow of goods and serv¬
ices," and that demands labor
Casualty
regis¬
deben¬
..
.
Hornblbwer, & Weeks, .New
York-, head the. underwriting group. Others
will] be named by amendment.
a
and
has
group interests for public welfare,
and to face the facts."
Industry
Unsubscribed
shares will be sold to Lumbermens Mutual
,...
by the Underwriters.
Net proceeds will .be
to the general corporate funds of
.
capital
The Electric Storage Battery
(Continued from first page)
time
a
stockholders of record May 31,
1944, on a pro rata basis at $8 per share.
proceeds will be added to company's
Michigan Avenue,.
Chicago. ■
;
'
'•'• / • _./ .-..'/
Business—Club.
■' /'•'
Underwritlhg-r—Noi underwriting. "*
<•. /'/
Proceeds—The- proceeds from the sale'of
the debentures, together with the proceeds;
from- the proposed new first mortgage loan
from; the Aetna Life Insurance Co., less
Address
added
the' company.'.
,
filed
Labor Practices: Baker
OF AMERICA
.
the new stock at the rate of one share
for/each ten shares held.
The
unsub-
scribed
.statement
due Jan.
tures
to
1
THE- CHICAGOCLUBvhas
<
Pays for
Unfair Management and
present
'
proposes to offer to the hold?
filed
INSURANCE CO.
DIVIDEND NOTICES
Public
Net
■
.
filed
registration statement for 48,981
shares
of
capital stock (par
$5).
Shares are to be offered for subscription to
from
THURSDAY, DEC.
EXCESS
has
proceeds for working capital. " Proceeds
sale, of stock, will go to thfc selling
stockholder.
Underwriting—Van Alstyne, Noel & Co:,
and others to be: named by amendment.,
Registration Statement No, 2-5541. Form
S-l.
(12-6-44).. '
- ;
.1
■
has
CO,
registration'statement for $300,000 trade
acceptances.
Proceeds will be applied to
organization expenses, acquisition of motor,
trucks, real estate, buildings, machinery,
etc.
Filed
Sept.
13,
1944.
Details in
"Chronicle," Sept., 21, 1944.
Registration statement withdrawn Nov..
15, 1944.
a
Business—Manufacturer of electronic and
plastic parts. ■
Offering—The
FREEMAN
2623
an
Milwaukee, Wis.
Copies of this
interesting brochure may be had
from Loewi & Co. upon request.
the
Commission's
Boston
Re¬
gional Office, under the supervi¬
sion of Paul Rowen,
Regional Ad¬
ministrator.
Attractive Possibilities
E/& G. Brooke Iron Co.
G. Robertson
Co. offer attractive
possibilities, according to memo¬
randa issued by
Boston
Albany Attractive
Adams & Peck, 63
Wall St., New
York City, have an interesting
cular and map covering
Albany RR.
/
and H,
:
Buckley Brothers,
St., Philadelphia, Pa.,
members of the New
York Stock
cir¬ Exchange and other national ex¬
Boston &
Copies may be had
from Adams & Peck upon
1529 Walnut
request.
changes.
Copies of these memo¬
randa may be
Rrrt+lifvre
on
had from Buckley
rROURSt.
THE COMMERCIAL & FINANCIAL CHRONICLE
2624
Teletype
Firm
NY 1-971
Trading Markets
! \\
BRAZILIAN BONDS
all
OCR wide
and
issues
New
REMEMBER...
,
Telephone
HAnover
Thursday, December 14, 1944
of dealer
range
private wire
•
England Public Serv. Pfd,
American - Airlines Pfd. V
Merrimac
contacts
connections,
Manufacturing Co.
Majestic Radio & Television
2-0050
'y!y'Electrol
■>
MEAN
r.ARL marks & no. iNa
.
v-
•
%
;
SECURITIES-'
FOREIGN
•
-
in
wide range
a
of
*
*
'•
h":
■-
r-
M. S. WlEN & Co.
V-
-
«
-
SPECIALISTS
50 Broad Street
OVER
New York 4, N.Y.
•
THE
-
COUNTER
-
40
Governments"
active with
was
Security Dealers Ass'n
Teletype
N.
Low-Priced Stock in
A
With
HA. 2-8780
1-1391
Y.
Industry
an
Bright Future
a
INCORPORATED
S.U
• nwvnrwrxn I
Members New. ;York
'S,'.
.'
good • demand for- all
a
Y.
Exchange PL, N. Y. 5
,
Kobbe, Gearhart & Company
By JOHN T. CHIPPENDALE JR.
Last week" the market
Members N.
SECURITIES
(Actual Trading Markets, Always)
AFFILIATE: CARL MARKS & CO. Inc. CHICAGO
"Our Reporter on
•
prompt, accurate service
4 5
NASSAU
issues, particularly the middle-term partially exempts, which were
telephone
well taken and showed advances up to a quarter of a point. . . .
well as the long-term partially exempt obligations,
are still considered attractive; for tax purposes and income.
In
the taxable group the 2% due 9-15-51/53, the 2% due, 6-15-52/54
and the 2xk% due 9-15-67/72 are being recommended for income and
very
philadelphia
REctor 2-3600
These issues, as
Security
Dealers
STREET,
Giant Portland Cement
Association.
NEW
YORK
Bell
telephone
Enterprise 6015
new
5
Teletype
york
An
1-576
Cement Stock
Outstanding
With
Dividend Arrearage
a
...
appreciation.
It
.
'
..
.
"
■
>
.
.:
institutions look
learned that many
was
upon
-
•
.
/
the 2% due
due 6-15-52/54 with considerable favor,
9-15-51/53 and the 2%
since it is believed that both of these issues
better price-wise with the
ending of the War Loan Drive.
.
...
SPREAD
y^/y'i
,
%
With
; r
the 2% due 12-15-52/54 will sell
16/32, it is indicated that the price spread
this issue and the 2% due 9-15-51/53 at 10023/32 and the
the
expectation
that
between 100 12/32 and 100
between
differential in
Therefore it is believed that the out¬
standing 2% due 9-15-51/53 and the 2% due 6-15-52/54 will seek
higher prices.
Based on this idea, it was reported that insti¬
tutional buyers are building up their positions in the latter two
2%
6-15-52/54
due
.
.
.
.
.
issues.
'/'.y.y."
/.
2%% due 9-15-67/72 are being suggested for commercial
banks with savings deposits, to maintain earnings to meet pay¬
ments on savings accounts. ... At present levels of 100 15/32,
The
bonds give
these
1.48% after taxes,
.
V
.
.
WAR LOAN SUCCESS
'
■
.
y\
ment.
'
..
V'y.:y
larger purchasers of the outstanding Government issues,
with
$1,125,000,000. . . . The largest
the notes, which amounted to $465,000,000
reflected the exchange of maturing certificate for the 0.90%
took
and
notes.
.
.
place
Bills
.
$332,000,000.
.
in
back by the banks totalled $174,000,000,
up
$154,000,000 and bonds increased by
brought
certificates
while
were
;,
.
.
period
; ;
•
y
.
;
have
unchanged.
,'-y,Vy"
4s FAVORED,
was
Since the beginning of the
City have added to
holdings of Governments in the amount of $1,250,000,000, of
due 12-15-52/54.
pally for the 2%
Sixth War
their
which
Loan
more
The
have been bonds.
.
.
The
.
POST
10
;
.
.
.
.
Northwest Cities Gas
Stocks
'
&
Bonds
Lincoln Power Co.
Bonds
Distribution
'
/.
is
now
held
now
decline
or
Term.
Stocks
& Bonds
y
'/y
>
Teletype BS 69
*
opinion
is
SQUARE
MASS.
9,
JeL.HUB 1990
.
,
.
OFFICE
BOSTON
the
by many that interest rates
wax
go lower in the future, and with fewer Governments being
offered the yield on these obligations is expected to decline.
On
ihe other hand, the yield on high-grade
corporates is expected to
.
.
only slightly.
.
.
.
Central
J
Corp.
Common v
Continental
y
■...
i
Whse,
Warehouse
*
States Tel.
' Bonds
f",
'
r
Henry De Meester & Co.
Members
JV.
Y.
Security
11 Broadway,
.
With the yield on Governments declining while the return
corporates remain stable, the gap between these two securities
will be increased in favor of the Treasuries.
Telephone:
Bell
on
Dealers
Ass'n
New York 4
WHitehall
Teletype:
NY
4-1044
1-1721
-
.
i
This idea seems to indicate stable to somewhat higher levels for
high-grade corporates.
; Based on this opinion, it was reported
that certain institutions and trust companies have
recently been
buyers of the newly refunded high-grade corporate issues.
V
Sev¬
eral of these bonds that went only fair, when
they were offered,
have recently moved up in price and are now selling at a premium
above the issue price.
Vy,
•• y> y 'y
■.
.
.
OKLAHOMA
.
bought
the extent of $426,000,000 with the largest ill-
Interesting Speculation
The Value Line, 350 Madison
Ave., New York 17, N. Y., is mak¬
ing
special
a
which
trial
four
a
offer
weeks'
under
trial
sub¬
scription
to
vestment
Survey will include the
following
the
Value
Situations
Special
special
A
In¬
new
recommenda¬
a
INTERSTATE
MINING
and Reports on
stocks;
mon
200 leading com¬
the supervised ac¬
count, and fortnightly letters, all
for
only
year.
To
•'
South
La
111., have
of
the
Salle
an
Street,
Chicago.
interesting
analysis
in
situation
current
RALPH F. CARR & CO.
Mer¬
BOSTON
chants
stock.
quest.
common
Copies of this study
had
be
Corp.,
Distilling
from
firm
the
Teletype
BS 328
re¬
.
$5.
The
offer
is
re¬
trial subscription ,a
one
receive it, send $5
to
the Value Line.
We
■
Business
Personnel
Man's
Industrial Issues
Stocks.....
Insurance
Items.
.
.260?
Flotations 202"
.2810
Canadian Securities
Municipal News and Notes........... .262'
Mutual Funds
...2603
Our
Investment Trust Issues
Bookshelf..........262?
Calendar of New Security
Our
taking place in notes, which were 45% of all the securities
and
Broker-Dealer
specialize in all
Insurance and Bank Stocks
Fags
.
Bank
,
Hanover 2-7913
INDEX
.
MASS.
New York
Hubbard 6442
may
upon
9,
Boston
four
Value
of
previously
weekly
Line Ratings
HUHON & P0MER0Y
Link, Gorman & Co., Inc., 208
report on
situations
recommended;
editions
Line
analyses:
stricted to
,
Chicago member banks during this period have
Governments to
crease
...
member banks in New York
than 51%
since
The
50
reported that a large part of the increase in last week's
holdings of bonds by these institutions was in the called 4s. ... It
is indicated that these banks will turn in the called bonds, princi¬
It
Banks
differential between high-grade corporate obligations and
Government bonds is expected to widen, but according to experts
on the money markets it will not be at the
expense of the corporate
.
'
LERNER & CO.
slightly less than $15,000,000 with cei$49,000,000.
Their position in Government
tion for this week and
CALLED
New
declined
FUTURE' PATTERN
issues.
Circulars sent upon request
SCH0ELLK0PF,
additions to their portfolio aggregating
increase
Reserve
tificates off less than
bonds is
.
.
.
Investment Survey
City member banks for the period ended Dec. 6
The New York
were
of
...
this
^y-;^
' -' ' v
Accordingly, many of the experts on1 the Government bond
market look for a strong tone after the drive, and expect that
higher prices will be registered as we move into the new year. . . .
...
Cities
beginning of the Sixth
War Loan have shown only minor
changes in their holdings Ox
Governments.
The only exception being the
notes, which increased
by $431,750,000, indicating that the central banks also converter
maturing certificates into the 0.90% notes.
Bill holdings during
War
Sixth
the
Federal
remain where it
Loan is already over the top, it is
expected that the final figures will be close to $20 billions, which
again means a substantial oversubscription, such as has been evi¬
denced in previous drives., . . .. While the drive no doubt will fill
a large part of the demand that has; been in the market, it is indi¬
cated that
there will still be substantial funds seeking invest¬
Although
Hie
.
.
in the Central Reserve
banks
,
taxable yield of 2.47 % to the call date and
a
..
.
the member
.
400 14/32, with the maturity
at
their favor, is too narrow.
Stock
<•
and Chicago have been
very important, in an indirect way.
making the drive a success.
in
.
shortly after the drive ends, with a price
16/32 anticipated in the not too distant future. . . .
:
■
NARROW
$1.25 Cumulative Participating
y."
York
bonds will sell at 100 12/32
of 100
.
the drive
Present
.
:
Riverside Cement "A"
;
Since the Sixth War Loan opened these banks together have
bought Governments or made loans for the purchasing or
carrying
of Government obligations in the substantial
amount of $2,^77,000,000.
These figures indicate that during the early pan ot
.
.
will do substantially
prices for the called 4s-indicate a premium of 10/32 for
the new2% due 12-15-52/54.
However, many believe that these
.
IMPORTANT IN DRIVE
Reporter on Governments..—282*
.2819
Reporter's Report..........
..2598
Utility Securities......,....
Public Utility Stocks and Bonds
TEXTILE SECURITIES
Securities with
a
New Eng.
Market
Public
acquired.
Loans
purchasing
...
to
while
the
dealers, together with'otli'er 'loans for
and
carrying Governments since the drive started, have
or
amounted, to
William Raymond Dies
v.:-
s
brokers
$658,000,000
Chicago
totaling $143,000,000.
for the New York City member banks,
institutions have
.
.
made loans for this
purpose
Raymond, member of
the New York Stock Exchange
and partner in the brokerage firm
of Chauncey & Co., New York
City, died at his home at the age
of 73.
.
Railroad Securities
William
..'."V*
\
'
Real 'Estate
....,........
Securities;..
,.
..2599
..2600
Securities Salesman's Corner...
Tomorrow's
2803
Frederick C. Adams & Co.
Specialists in
England Unlisted Securities
.
New
Markets—Walter Whyte
Says ..............................2598
24 FEDERAL
STREET, BOSTON 10
Established In 1922
Illinois
page
Securities
Section
on
Tol.
HANcock
Tele.
8715
BOston 22
2602; Wisconsin on page 2603
Unlisted
Eastern States Pfd.
CHICAGO STOCK EXCHANGE
Public
Utility, Industrial
Real Estate
Pressorelube, Inc.
in
all
securities-i listed
Exchange.
bids for
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Telephone RANdolph 3736
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'48
iC,
Empire «Sheet Common
CRUTTENDEN & CO.
REMER, MITCHELL &REITZE
■'
y
Empire Sheet & Tin Plate
We are prepared to submit firm
many
Bought—Sold—Quoted
W. T. BONN & CO.
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for
Dealer*
s\
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Telephone
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