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■
1943
DEC 2 7
Final
ESTABLISHED OVER 100 YEARS
Edition
'
1
2 Sections-Section
In
\al and
ommetciaL
Reg.
Volume
New York,
4240
Number
158
Investors, Corporations And Our
Federal Excess Profits Tax System
Corporation Earnings Doubled Or
Trebled If Full Advantages Of Law Are Capitalized On
last month
address
an
taxation
from our
connection with trade associations, whose members feel that
has become a subject of very great importance, and to assist
exchanges
ternation a 1
to review today stems
€>-
through estab¬
I
tion
the proper
practical. I am
going to ad¬
fact, in
fac¬
those
which in
tors
measure
gome
will assist you
to
gentlemen
do
of the earnings
better
a
job and make
money,
more
of
because
increased
of
a
tional
an
un¬
derstanding of
the
year
"In the interest
National Asso-<$>
c
Spahr
New
can
be
taken in the
Spahr
d
is
tax of 90%
a
on
profits. The measurement
excess
profits
depends, of
definition
the
upon
En This Issue
SECURITIES section con¬
taining information and
material
our
We
are
"
Dr,
,
of ceilings on
commodities by the Office of Price Administration is a justi¬
fiable emergency measure to stem the tide of inflation.
Is the NASD 5% spread rule a comparable "philoso¬
phy"? Let us analyze it. In the first place, the creation of
the SEC is considerably pre-Pearl Harbor, and the NASD is
national effort.
aid of the
but
arm
an
Hence, the placing
of the SEC, a supplementary
policeman, born
Metz and Edw. A. Kole are members
New York Bar and are the authors of numerous articles
have appeared in the "Chronicle" pertaining to the legal
of the
which
aspects of "market
price" and "mark-up" practices.
(Continued on page 2531)
fabric of the
In
se¬
in
the
on
"immersed
problems rather than fired with
enthusiasm for freedom. Fear still
in
appears
faith
in
"Until,"
and
he
"the public
warned,
that psychology, we will
London
NEW YORK 4.
-
free
went
for
on
as
to
a
say
freedom
25 Broad St.
HAnover
2-OGOO
Teletype NY 1-210
Rep.
CHICAGO S, ILL.
135 So. LaSalle St.
State 8770
Teletype CG 1219
64 Wall Street, New
York 5
Albany
Pittsburgh
Williamsport
Troy
business
for
It
as
come
can
such
only as
THE
CHASE
or
Dallas
MAY
Broaden your customer
service with Chase
DEALERS
from
5^.
.
-
Hardy & Co.
facilities
Members Neio
York Curb Exchange
Member Federal
30 Broad St.
634 SO. SPRING ST
LOS ANGELES
JERSEY CITY
correspondent
Members New York Stock Exchange
INCOSPORATtO
EXCHANGE PUCE
and Dealers
BE
FROM
HUGH W. LONG and COMPANY
15
NEW YORK
Brokerage
Tel.
New York 4
Deposit Insurance
Corporation
Tele. NY 1-733
DIgby 4-7800
-
~1
BROKERSW DEALERS,
'
AUTHORIZED
PHILADELPHIA
Buffalo
Syracuse
BOSTON
Actual Trading
,
OBTAINED
SECURITIES
dom¬
managed economy. It was
inated by
thing apart." He
that "no demand
Service
Established 1927
INVESTMENT
r
'M
a
NATIONAL BANK
Bond
R. H. Johnson & Co.
not the
enterprise can never be
recovered
.
PROSPECTUS
Stock Exchange
Wriston
.
for Banks, Brokers
Geneva
N.Y.
"the NRA was
emphasis,
York Curb
Exchanges
other
Declaring that
the product of crisis," Dr.
added that "the NRA was
frequently than product of theorists, determined
their basic vocabulary." to commit us by devious means to
will succeed.
Air Transport
Hirsch, Lilienthal & Co.
essential of
an
more
towards that reversal of
Exchange
Members New York
"it destroyed
practical men who knew
hear more and more of the man¬ so little theory that they did not
aged economy, and enterprise will recognize obvious similarities to
not again be free." "Businessmen," fascism."
He further said
that
declared Dr. Wriston, "must work
(Continued on page 2544)
reverses
SECURITIES
New
remarks as
Dr. Wriston made the
it "failed to cure
that
OF THE CITY OF
Preferred
Dealt
corporation."
enterprise" but that it "en¬
couraged Government to modify
the
sound techniques developed
I.
Light & Pwr.
United
the'
of
unemployment," He not only said
United Lt. & Rwy.
Common, W.
framework
reference in his
statement
free
con¬
a
to the NRA,
that
for
the
State, but also within the struc¬
ture of the union, and within the
have
exhibited
in free
curity,
dread by long experience, and employ
of
unemploy¬ methods which disregarded the
process,
and
func¬
Henry M. Wriston
ment, fear of democratic
social tensions, tioned only at the sacrifice of
doubts
about- labor
relations." freedom."
for
2556.
page
see
within
political
leaders
"They seem," he said
in
^Editor's Note—Messrs; A. M.
For index
free-
Wriston, "if we believe
enterprise, we must make individ¬
ual enterprise possible, not only
...
>
and EDW. A. HOLE*
accustomed to price fixing in'a war economy
of
■—
—
integral part of the larger idea
human freedom." According to
•
2551.
page
on
Association
Loan
and
Savings
comment
dealer activities on
Spread and the Disclosure Rules
By A. M. METZ
of
is deemed
Everything over that
pertinent to
page 2532.
Dangers of the 5%
normal earnings.
what constitutes
OHIO
in
"thus far
that
successfully under¬
face of the complex
& Securities Business
Price Fixing
Simons
Gustave
excess
course,
o m
a
of
test
Wriston stated
the
" if
re¬
peace
furnish
cern
Tax system.
"The Excess
Tax
to
faith
Excess Profits
Profits
"the
turn
fresh
(Continued on page 2554)
(Continued on page 2533)
that
will
Univer¬
an
Dr,
Pointing out
E.
points out that
even
-■
latter
of
t i o n
a
turers.
sity.
Dr. Walter E.
i
Manufac¬
of Eco¬
Dr.
collec¬
function" of producing and marketing
what the people want and "should not attempt to manage our
economy or to govern," Henry M. Wriston, President
of Brown
University, declared on Dec. 10 in an address in New York City
at the Second War Congress of American Industry sponsored by the
bank,
nomics,
business should avoid
of free enterprise,
tivism" and "stick to its true
Federal
our
of
Of NRA
Form
Spahr, Profes-
York
Crisis In
Mistakes Made In 1933
Against Repeating
Warns
Faith In Freedom
Furnishing Fresh Test Of
Post-War Period
But
Professor
s o r
To Manage
Economy
Sees
or
Walter
Copy
University Urges Business To
Collectivism And Not Attempt
interna¬
says
given corpo¬
1942 or 1943
was
to be added to' the income
available for distribution to stock¬
holders, you would be in a very
in
ration
house
ing
an
renegotiation, which has a
very close relationship to this sub¬
ject, the entire amount of exces¬
sive profits is recaptured for the
Government." The balance of Mr.
Simons' address follows in full:
If you could know in a given
case that an amount equal to 40%
myself
dress
national clear¬
which
confiscation. In
subject of a tax,
equal to
is almost
a
inter¬
simple
excessive and
by Congress to be
go¬
am
to try to
be intensively
ing
of
lishment
■
associa¬
your
to
to facilitate or
simplify in-
the New York law firm
Greeley said:
"The subject which I am going
work in
international gold
regardless
of, any attempt
60 Cents a
Enterprise
Wriston of Brown
Avoid
of Simons and
Brokers, Gustave Simons of
Dr.
standard is imperative
of Customers'
before the Association
Free
Gold Standard
Return to an
Price
December 23, 1943
N. Y,, Thursday,
PioLSpahr For Return
To An International
Gustave Simons Sees
In
Office
Tat.
S.
U.
Year-end
We
'
are
Markets, always
SELLERS—
BUYERS.
iQueenshoro Gas &
Federal Machine and
Electric Co.
Welder Company
6% Preferred
—Net Prices—
Bought—Sold—Quoted
,BONDS
BULL, HOLDEN
MEMBERS NEW YORK
14 WALL ST..
Over-The-Counter Securities
8c C°
STOCK EXCHANGE
NEW YORK 5. N.Y.
Kobbe, Gearhart & Co.
INCORPORATED
Members
-
N.
REctor 2-3600
RECTOR 2-6300
Y. Security
45 Nassau Street
Philadelphia
Dealers Ass'n
New York 5
Teletype N. Y. 1-576
Telephone:
Enterprise 6015
Request
•
HART SMITH & CO.
REYNOLDS & CO.
Members New York Stock Exchange
Tel.
TELEPHONE
Analysis upon
120 Broadway,
Telephone:
Bell
New York 5, N.
REctor 2-7400
Teletype
NY
1-6^5
Y,
'
Members
New
York Security Dealers Assn,
52 WILLIAM ST., N.
Bell
New York
Y. 5
ira haupt &
Members of
HAnover 2-0980
Teletype NY
Montreal
1-395
Toronto
111 Broadway,
REctor 2-3100
CO.
Principal Exchanges
N. Y. 6
Teletype NY 1-X920
r
THE COMMERCIAL & FINANCIAL
2526'
r..:Trading Markets in:
CHRONICLE
Thursdayi Decettbeir 23, 1943
'
American
We Maintain Active Markets in U. S. FUNDS for
Hearst Publishing
Preferred
CANADIAN INDUSTRIALS
Triumph Explosives
-
-
Seaboard Airline Ry.
CANADIAN UTILITIES
Walworth Pfd.
Common & Preferred
Established 1920
New
Members
40
York
MC riONNELL & CO.
Goodbody & Co.
KING & KING
v'"1'
Members
New
Members N. Y. Stock Exchange and Other Principal Exchanges
Security Dealers
Ass'n
*
Tel.
REctor
Steiner, Rouse & Co.
Members New York Stock Exchange
25 Broad St., New York 4, N. Y.
Exchange.
Hflnover 2-0700
NY 1-1557
New Orleans, La.-Birmingham, Ala.
120 BROADWAY, NEW YORK
Teletype NY 1-672
Telephone BArclay 7-0100
York Stock
New York Curb Exchange
NEW YORK 6, N. Y:
115 BROADWAY
Exchange PL, N.Y. 5 HA 2-2772
Osgood, Common
Warren Bros. Class "B" & "C"
CANADIAN MINES
Residuals
Birmingham Elec. 7%
Remington Arms
CANADIAN BANKS
United Gas Improv.
Birmingham Elec. 6%
Cyanamid Pfd.
Botany Pfd. & Common
Direct wire$ to
2-7815
our
branch offices
BELL TELETYPE NY 1-423
Letean Bros. Will
American Util. Serv. Pfd.
Economic Planning
SEASON'S
Weisenburger Asserts Half Slave and Half
WonV Provide Post-War Jobs—Views
Encouragement Of Risk Capital A Prerequisite To
Post-War Jobs-—Urges Overhauling Of Investment
Laws To Eliminate Fear-making, Excessive Regula¬
tions That Hang Like A Sword Over The Head Of
The Would-Be Enterpriser—Proclaims Need For Re^
Free System
Baltimore Stock Exchange
120
Broadway, N. Y. 5
WOrth 2-4230
Bell
Walter B. Weisenburger,
turers
MacMillen Co.
ican
in
Better
a
i
America,
.
s
in
the collectivism
'
sense,
"it is
W. Br Weisenburger
a
a
number of years the
Ex¬
Man¬
Mr.
railroads have been fighting a rear¬
action with the odds against them: During years of good
has been in the nature of resistance, to
further withdrawals rather than successful counter-attacks. ;
guard
of
financial
■
He
is
a
and
was
active
consolidation .of
company
position
Street, New York 5
Telephone: WHitehall 3-1223
for
that
are
There
solved.
are
a
consid¬
erable number
Exceptional Facilities For The
of
optimists,
in
fact, who
seriously
have
ACCUMULATION OR PLACEMENT
concluded
railroads
that
of large blocks of
new
a
OVER-THE-COUNTER
able than any
period
last
the
with
in
the
the1
suc¬
Western
Union.
s,
In
Members N. Y. Security Dealers Assn.
Teletypes—NY
Hanover 2-4850
1-1126
&
omy ;
of
the
national
as
a
econ¬
the exigencies of
(2)
y
war
York Curb Exchange
New
on
Frank C.Masterson & Co.
Members New
64
WALL
York Curb Exchange
ST.
,
..
Teletype NY 1-1140
NEW
YORK
TRADING MARKETS
V
5
HAnover 2-9470
•
Baltimore & Ohio 4s, 1944
Missouri Pacific 5lAst Serials
Seaboard Air Line 5s, 1931
Seaboard Air Line 6s, 1945
Sitiilh, Barney & Go,
BUCKLEY BROTHERS
Will Admit Five
Members Neii)
and
WHitehall 3-7253
Direct Wires to
other
leading national Ex¬
changes, will admit James Cheston: 4th, Holden K. Farrar, C.
York; Stock Exchange
63 Wall Street, New York 5, N. Y.
Philadelphia & Los Angeles
Now A
Cheever
Partnership
Hardwick, W. Fenton
CHICAGO,
ILL. —-'Woodruff,
Johnston, and Norbert W. Markus Hayes & Co., Incorporated, mem¬
ficiency which has .brought about
to partnership on Jan. 1, 1944, All
bers of the Chicago Stock Ex¬
important reductions: in costs of
have been associated with the
change, with offices at 134 South
operation; (3) the substantial re¬ firrri for
some time, Mr Cheston
La Salle Street, -has
been dis¬
ductions being made in their debt
and Mr. Markus in Philadelphia;
solved and has been succeeded by
mean
lower fixed charges, thus
Mr. Farrar in Chicago, and Messrs.
Woodruff, Hayes & Company, a
easing a burden that has plagued
Hardwick "and Johnston in New
nartnershio. Partners are Douglas
the roads for years.
York.
Hayes, Elliott Parker Woodruff,
Probably no other argument
and Fred P. Woodruff, formerly
has been carried to a greater ex¬
officers of the corporation.
treme than that regarding reduc¬
resulted
have
in
a
degree of ef¬
since
tion
in
.
debt.
So
railroads,
Class. I
far,
are
ali i the
concerned,
as
war.
"^EDITOR'S
Goho-Torrey To Admit
Link,Robson, Walton
M. G.
Darby Trustee
Of Bronx Savings Bank
NOTE—Mr.: PescaCohu & Torrey, 1 Wall Street,
Hhis
view, it tello is Investment Analyst. ;for New York
Myron G. Darby, senior partner
City, members of the
one
of
the
has been sug¬
country's largest phil¬
of Darby & Co;, L Wall Street,
Michael Pescatello
New; York Stock, Exchange,, will
New ; York City, :has been elected
gested
that: anthropic institutions with- in-^ admit
Harry W. Link, Jr., George
a
trustee of the Bronx : Savings
(1) the public vestment funds of over $150,000,- U.
Robson, arid Fred Eugene Wal¬
ooo.
and
officials
have
responsible
Bank, it is announced by T. Arthur
ton to partnership in their firm as
(Continued
on
only recently come to recognize
page 2534) :
Nosworthy, President of the bank.
of Jan. 1, 1944.
oreeueatvdCompomi
Wall St., N. Y. 5
era
favor¬
more
STOCKS & BONDS
Bell
;y
'Dealt in
2s, 1955
•
entered
have
37
■
the importance of railroads
backbone
their
lems
Teletype NY 1-1843
y:'-' y
New York A. C.
director
Smith, Barney & Co., 14 Wall
peak levels and a vast, improve¬
Street, New York City, members
the railroads have combined to of the New York
Stock Exchange
create the im-$———tt:—.:
pression
20 Pine
Bell
'
5Vz% Debentures '•
Tybor Stores Com.
Lehman
„
in
&
Common & Preferreds
With the firm
The recent rise in traffic to new
ment
*5%
associat ed
recent
.
Central States Elec. (Va.)
heim has,been
1939-40,
2536)
WHitehall 4-8120
System Teletype NY 1-1919
of
•
Guiana.
business activity this action
H. G. BRUNS & CO.
Broadway
the "New York
of All
to business in the post-war
America Corp., American Cable &
period would be a reduction of
taxes.":;' Mr. Weisenburger con¬ Radio Corp., and Air Express In¬
cluded by saying "what we need ternational Agency, Inc. As Chair¬
man of the Reorganization Man¬
is an age of common sense. Com¬
agers of the Postal Telegraph &
mon sense has never failed us yet
Cable Corporation, he directed the
when we've used it." We give be- reorganization of that
company in
By MICHAEL PESCATELLO*
:
For
Members New York Curb Exchange
65
sub¬
of the investment laws to attract
The Present Position Of Railroads
Preferred
are
Brothers since
on page
Members New York Stock Exchange
Bell
cessor
•
Struthers Wells
&
ments
approval
Indiana Limestone
Common
Pinal arrange¬
Stock
(Confinued
v
Edward A. Pureed & Co.
ject to formal
4-
...
on
change.
#
Dumont Lab.
1944,
1,
tion, not just planning!"
"Ours,"
he said, "is a program to win the
victory by establishing fully, the
principles for which we fight," Mr*
Weisenburger said "the first step
to post-war jobs is an overhauling
program—ac-
1952
firm
.
economic
riot
■
planning
6s,
the
Jan.
pen
ufa
England P. S; 7% PI. Pfd.
gen¬
of
a n
for
COrtlandt 7-4070
a
partner of
c-
National
e
turers' agenda
New York 5
System; Teletype NY 1-1548
become
eral
M
York
England P. S. 6% PI. Pfd.
New
E.
Association
t h
Exchange
Paul
1928* A grad¬
savings on the assumption that free
Paul E. Manheim
uate
of
the
enterprise is good and that private,
University of
job-making should be encouraged."
He further sMted that "the most Virginia, he had previously been
the American Consul in British
stimulating thing that could hap¬
in
City, said that
Vanderhoef & Robinson
Telephone
at
Waldorf-
New
Preferred,
Bell
9
Astoria,
United Cigar Whelan
31 Nassau Street
Dec.
the
Preferred
o n-
address
an
on
Taggart Corporation
C
.
of Amer¬
Industry,
gress
Common
Curb
that
/<£-
Manufac¬
New
1
Manheim will
Executive Vice-President of the. Nation¬
Association
al
of
York
William
Street, New York City, members
of the New York Stock Exchange
and,;other, exchanges, announce
Brothers,
vision Of Tax Structure To Stimulate Production.
Teletype N. Y. 1-1227
Members New
Lehman
Walter
GREETINGS
Members
Adaiit Paul Manheim
1127
support of
■
Mr. Link and Mr. Robson have
been officers
FASHION
PARK, Inc.
Deb. 5s, 1963
FASHION
reelings
Piper Aircraft
Common
:
Carey Trust -All Issues
ment firm with offices in the Al¬
Galveston-Houston Co.
fred I. du Pont Building. Mr. Wal¬
ton has been in charge of the
FASHION PARK, Inc.
Reason's
of Robson, Link &
Company, "Miami, Florida invest-.
firm's. Newark office at 24
merce
*
Preferred
Troster,Currie&Snmmers
Members
170 PINE ST., N. Y. 5 WHitehall 4-4970 I
Teletype NY 1-609
I
Simons, Unburn & Co.
Members New York Stock Exchange
25 Broad St., New York 4, N. Y.
HAnover
2-0600
Tele.
NY 1-210
74
N.
Y.
Security Dealers Ass'n
Trinity Place, N. Y. 6
HA 2-2400
Teletype NY 1-376-377
Private
Wires
Detroit
-
to
Buffalo
Pittsburgh
-
-
Cleveland
St. Louis
Edmonds & Co., 115 Broadway,
New York
City, members of the
New
Stock
York
changes,
will
and
admit
Curb
Jan. 2, 1944.
Ex¬
Mildred A.
Carter to partnership in
on
Sulphur, Pfd. & Com.
Nu-Enantel
Oklahoma-Texas Trust
*
Edmonds To Admit
t
G. A. Saxton & Co.. Inc.
*
Street.
PARK, Inc.
Bought—Sold—-Quoted
Jefferson Lake
Com¬
the firm
Pittsburgh Railways
♦Analyses
upon
request
T. J. FEIBLEMAN & CO.
Members
New
Orleans Stock Exchange
41 Broad Street
New York 4
BOwling Green 9-4433. Tele. NY 1-493
r
Volume
The
and
COMMERCIAL
^FINANCIAL CHRONICLE
Reg.
U.
William
B. Dana Company
Publishers
;
25
3-3341
interested in offerings of
are
Public
Vicana Sugar
Herbert D. Selbert,
llCHTEIMIfl
"
High Grade
Camag'y
Vertientes
Spruce Street, New York 8
BEelcman
We
Sugar
Punta Alegre
Patent Office
S.
2527
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4240
158
AND COMPANY
Utility and Industrial
TO
DEALERS
AND TRADERS
PREFERRED STOCKS
EVERYWHERE
Editor and Publisher
William, Dana
William
D.
Old Colony
President
Seibert,
Business
Riggs,
Manager
every
(general
25 Broad Street, New York
CHRISTMAS
>
week
a
advertising issue)
Teletype NY 1-5
Telephone HAnover 2-4300
Chicago Tractions
Thursday
and
news
A VERY MERRY
Spencer Trask & Co.
N.Haven&N'hamp.
Thursday, December 23, 1943
Published twice
R. R.
Exchange;
Members New York Stock
99
Wall
Street, New York
.
Telephone:
WHitehall 4-6551
and every Monday
STRAUSS BROS.
(complete statistical issue—market quo¬
records,
corporation,
banking,
state and city news, etc.) ■
tation
New
Members
clearings,
York
Security Dealers Ass'n
Broadway
NEW YORK 4
Chicago—In charge of
Fred H. Gray, Western Representative,
Field Building (Telephone State 0613),
London—Edwards & Smith, 1 Drapers'
Offices:
Other
Copyright
1943
Reentered
ruary 25,
York,
N.
William
by
At War's End
Harrison 2075 '
Teletype CG 129
DIgby 4-8640
Teletype NY 1-832, 834
Dana
B.
PRUDENCE
3, 1879.
in
States
United
-
BONDS
More Flexible Prices And
CORPORATION
and
Capital
Sees Patient Readjustment For Effective
Prosperity—Warns Against
—
Possible
ALL ISSUES
Bought—Sold—Quoted
$20 yr.
Members
for
40 Wall
foreign subscriptions and advertisements
must be made in New York funds.
Years of
Stock Exchange
York
New
NY
Teletype
|
1-2033
patient re-adjustment of the nation's economy
NASD Willing To Sacrifice
Dealer Films To Appease
States, at a
Economics
in
D
Small
SEC
Bond Club of Philadelphia
address before the
last
reconver¬
sion
period,
this
to
eyes
u n
d
e r
1
a
Mo. Kansas "A"
Wickwire
for
danger
we may uncon¬
a
*Prospectus
Spencer
Request
on
of
than
"unless
allow
more
E. P. Schmidt
the war" and
of
"us into a false sense
mere
we
dollars."
flexible
He
willing
are
Security
Dealers Assn.
Broadway, New York, N. Y.
Ill
REctor 2-5288
Bell
System Teletype, N. Y. 1-2480
prices
and
to
(Continued
on page
TRADING MARKETS
to
make constant adjust¬
ments with changing supplies and
wages
by
York
of flexibility under
competition and 'vol¬
output should be the goals
added
Dr.
Members
New
more
the
1 ying
,
J.F.Reilly&Co.
degree
rather
2542)
Oelafield I Delafield
Mackubin, Legg & Go.
5%
Stromberg-Carison
Gisholt Machine Co.
Federal Screw Works
Announce Hew Partners Will Admit Four
Delafield & Delafield, 14 Wall
MD. — At the
Mackubin, Legg Street, members of the New York
& Co. entertained 80 employees Stock Exchange, will admit Caroll
at a dinner-dance, this party be¬ Coleman, Thomas F. Lennon, Les¬
lie H. Thompson and Theodore P.
ing the 19th annual such affair
Tsolainos to parthership in their
held by the firm.
Bonuses
were
distributed ag¬ firm effective Jan. 1,1944.
BALTIMORE,
Hotel,
possibility of the SEC imposing some rule that
houses like his own. While Mr. Riter did not put
avert the
Southern
said it means just
'
feel that way and the SEC may be
indifferent onlooker while the life blood is
Now Mr. Riter may
squeezed out of the small dealers but we are sure that
CONGRESS will not sit supinely back and enjoy seeing the
tightening around their necks. We predict Con¬
will not only see to it that these dealers are permitted
to exist but will also abrogate in quick order any such de¬
structive measure as a bid and asked disclosure rule, if the
SEC should dare to promulgate one.
tentacles
gress
The truth of the matter is that
Moxie Co.
Bartgis Brothers
mark-up basis. In other words, he is perfectly willing to see
these small fellows thrown to the wolves just so long as he
content to be an
ume
d j ust-
lulling
of
"our
created
ments
greatest
readjustment
high
if it does come,
-
Federal Water
.
ttie
to
which
boom,
blinding
Riter is really
-V'-.-•
Aviation Co.
before
dictatorship."
"Instead
of every group trying to get more
money in the post-war," he said,
"the economy must be allowed a
danger
great
m a
.
tion
of the
warned
Teletype NY 1-1203
*Clark Electronics &
long-time prosper¬
sciously contribute to the forma¬
Schmidt
Prof.
of
sary,
after
letting the world know that he does not give a hoot about the
fact that there ARE PLENTY of small firms in the towns
..
HAnover 2-8970
the post-war period, Prof. Schmidt
said that "if we resist the neces¬
a
the
;
As
1 acement
p
boom
tion in the matter.
bluntly, when you analyze what he
ity."
the
-will
distortions
and
have
can
we
it
short- lived
r e
justify the 5% mark-up decree said in effect that fear
that the SEC would Step in and impose something more dras¬
tic on the industry was responsible for the Association's ac¬
that just can't get by on a
39 Broadway
the im¬
"we must remove
balances
ring
experience
to
do you do? Mr.
a
while
country
•week, Henry G. Riter, 3rd, of the New York Stock Exchange
firm of Riter & Co., and Chairman of the Board of the Na¬
tional Association of Securities Dealers, Inc., in endeavoring
Now isn't that a fine how
1
e c
is possible
Small Dealers To Be
Sacrificed On Altar Of Expediency
and hamlets of the country
CO!
New York 6, N. Y.
safety and security," whereas, he
York
said,
that
Economic Life Of Numerous
.that.
QUOTED
Information
will be
of the United
recent conference of the Research Bureau for Post-War
City.-
it that
-
Members New York Security Dealers Assn.
nesota, and Economist of the Chamber of Commerce
WHitehall 4-6330
St., N. Y. 5
Bell
I
New
would hurt
SOLD
r
required in the post-war era because of .the war's global character
before the economy is brought back to a self-sustaining system, it
was asserted by Prof. Emerson P. Schmidt, of the University of Min¬
Newburger, Loeb & Co.
NOTE—On account of the fluctuations
in the rate of exchange, remittances
can
Lulling Country Into
Replacement Boom
False Sense Of Security.
Monthly Earnings Record—Mth.. .$20 yr.
State & Municipal Compendium—
Semi-Annual
$35 yr.
an
-
Statistical
L I. GOLDWATER &
Transition To Post-War
Publications
Bank and Quotation Record—Mth.
Must
tations
PRUDENCE COMPANY
Cuba, $29.50 per year; Great Britain,
Continental Europe (except Spain), Asia,
Australia and Africa, $31.00 per year. »w
In
BOUGHT
Complete
INC.
Possessions, $26.00 per year; in Dominion
of Canada, $27.50 per year; South and
Central
America,
Spain,
Mexico
and
Other
Unless We Are Willing To Allow
Wages—Says Profit Expec¬
Be Maintained To Encourage Risk
Full Employment
1942, at the post office at New
Y., under the Act of March
Subscriptions
CERTIFICATES
Company
second-class matter Feb¬
as
Expect To Have
Professor Schmidt Declares We Cannot
E.C.
London,
Gardens,
TITLE COMPANY
Board of Trade Bldg.
CHICAGO 4
32
the SEC has been doing
nothing more nor less since 1940 than bend its efforts toward
changing the entire custom of the securities industry with
respect to normal mark-up practices and the whole industry
has become anemic as a consequence.
gregating 10% of yearly salaries,
and it was also announced that,
subject
to
York
New
the
approval
Stock
two
admitted
partners would be
new
of the
Exchange,
Mr.
Coleman, Mr. Lennon and
have all been asso¬
ciated
time.
the
with
firm
for
COrtlandt 7-6190
Teletype NY 1-84
SUGAR
Mr. Thompson
some
Mr. Tsolainos was a partner
SECURITIES
in Parrish & Co.
membership in the
firm as of Jan. 1, 1944—C. Gerard
Morgan, Jr., who has been man¬
to
170 Broadway
Bell System
general
the
government
firm's
ager
of
bond
department for the past 11
years,
and
Walter
-
C.
-
Pohlhaiis,
member of the sales force
investment
12 years.
department
in the
for over
Both are well known
the financial district.
in
New
On
Dec.
Partnership
the present
partnership of Kerngood & Co.
will be dissolved, a new partner¬
ship consisting of S. George Kern¬
good, member of the New York
Stock Exchange, and Blanche R.
Kerngood being formed as of Jan.
2, 1944. '•„ »
31,
•
1943,
forget if your mark-up practices are not con¬
sonant with "trade custom" you are automatically in a
DUNNE & CO.
Members Neio York
25
Security Dealers Assn,
Broad St., New York A,
Tel. WHitehall
N. Y.
'
3-0272
And don't
position where you-are perpetrating a fraud on your cus¬
unless you disclose your mark-up to him when you
tomer
consummate the transaction.
This
is
said last week that IT WAS FOR¬
TUNATE that dealers were ignoring the 5% mark-up decree
and that many of those serving on Business Conduct Com¬
mittees were doing likewise.
The members of the commit¬
tees that are so doing are properly insisting that each and
every transaction stand on its own feet.
They deserve the
thanks of the whole industry for the stand they are taking
and thereby not permitting the illegal 5% decree to change
why
we
the trade custom.
,
(Continued
,
on page
'2550)
-
,
.
Panama Coca-Cola
ific Goait
$1
dividend
15th to holders of
Payable Jan.
record
Becu/utiei
Dividends
Dec.
31st
"'$943—$4.50
1942—
'Since 1893'
Hon Rose STrsster
Established
Members N.
NEW YORK
LOS ANGELES
Menders Los Angeles Stock Exchange
Y.
1914
Security Dealers Assn
Trinity Place, New York 6, N. Y.
Telephone:
Teletype:
BOwling Green 9-7400
NY 1-375
74
*
National Radiator
Company
3.65
Approximate selling price 33
Wyeth & Co.
Public National
Bank & Trust Co.
United Gas Improvement
Residuals
C. E. Unterberg & Co.
Members New York
Security Dealers Assn.
New York 6, N. Y.
Telephone BOwling Green 9-3565
61 Broadway,
Teletype NY 1-1666
THE COMMERCIAL & FINANCIAL CHRONICLE
2528
Thursday, December 23, 1943
BOSTON
United
Light & Railways
TRADING MARKETS
BIRD & SON
When Issued
COLONIAL STORES
Dynamism-
Bought
-
Sold
-
Quoted
REMINGTON ARMS
UNITED ELASTIC CORP.
Sssence
Goodbody & Co.
of the Utility Industry
UNITED
115 BROADWAY
'.
105 WEST ADAMS ST.
NEW YORK
TELEPHONE
du
CHICAGO
BARCLAY
TELETYPE
7-0100.
NY
Shawmut
will show if it is still
So with the
.
.
DALLAS
Only tests
raction Securities
-
Bought
company
Sold
—-
Quoted
—
201
WILLIAM STREET, NEW
Members New York Stock Exchange
and Chicago Stock Exchange
Dallas
Telephone
Dearborn 0500
Direct
Check
209 South La Salle Street
East
Chicago 4, Illinois
and
RAUSCHER, PIERCE & CO.
West Coasts
DALLAS, TEXAS
Manifestations Of Inflation
Lacking: Hoving
People—President Of Lord & Taylor Sees Indications
Opposite Direction—Sensible Policy He
Says Is To Continue Price Controls, Adjustments In
YORK
]
Prices And
RAILROAD,
INDUSTRIAL BONDS
Members New York Stock
Exchange
are
is
Members
PA.
acquisition by Roy R. Coffin
Exchange
York
Stock
Scheffmeyer & Co. will
of
John McShain,
Rakestraw, Betz & Co., FidelityPhiladelphia Trust Building, mem¬
bers
of
the
Philadelphia Stock
with offices at 26
membership
Exchange, will
become
members
of the New York Exchange.
will be Roy R.
Part¬
Coffin, George
Jr., general partners, and
McShain
and
H.
Edward
lic
be formed
Broadway, New
Gas
and
Electric
Pacific
baskets
just
one
by Ira Haupt ment
Broadway, New York
Co., Ill
City, members of the New York
Exchange and other leading
national Exchanges. Copies of this
memoranda, discussing the situa¬
tion in some
detail, may be had
also
Chronicle
40
Strings in Each Binder
Accomodates 40 Sections
good
a
25 SPRUCE STREET
association
interested
in
with,
may
conservative
existing facilities. Reply ap¬
pointing
time
for
personal
interview.
cial
and
;
25
(7), N. Y.
or
expansion of profits with their
"EXPANDIT" BINDER
NEW YORK
by,
high standing firm who
be
$2.50 Plus Postage
and
references locally and through¬
out the country seeks employ¬
ment
Price
connections
N. Y.
Box S 8, Commer¬
Financial
Spruce
St.,
Chronicle,
New
York
—
N.
PH 265
Y. WH 3-7253
f
would,
in
Ger¬
in
the
1920's,
going to mar¬
full
of
money.
evidence
of
following
to
understand
such
talk.
the
Some
interest' in
Southern Advance
Bag & Paper Co.
Common
Stock
such wolf-
far
too
might
catastrophe.
BOENNING & CO.
1606 Walnut
that the American
improvident
continuing
a
American
"The inflationists would have
so
have
that
us
public
St., Philadelphia 3
Pennypacker 8200
PH 30
Phone
Private
to
COrtlandt
they.are
N. Y.
C.
7-1202
apt to go on a drunken spree and
spend
every
ing.
They
cent they
above
over
ST. LOUIS
are,'earn¬
earning, they say.
$36,000,000,000 more than they can
spend. Now why should we con¬
clude that the American public
are so foolish that
they will in¬
sist on spending all they have left
are
their
normal
An
Interesting
In
a
York
pur¬
Growth
Situation
Industry
Corporation
COMMON
chases for this year?
Analysis
"They have not done that in any.
year in the past,
so why
on
request
other
should they do it now?
If
we
feel
they will be stampeded into
spending the $36,000,000,000 why
(Continued on page 2553)
}eltason, Tenenbaum, Inc.
Landreth
Bldg.
Edwin
a
copy
Teletype—SL 486
L. D. 240
*
J.
Schlesinger, investment counsel of this city, sends us
of the following letter which he sent to Henry Morgenthau,
Jr., Secretary of .the Treasury:
TRADER
with
in
that
carried
We
hoping
are
the
to
Advocates Graduated Sales Tax
Unlisted Stock & Bond
RIT 4488
803
*
Trustworthy, Experienced,*
Philadelphia 2, Pa.
Teletype
ST. LOUIS 2, MO.
from the firm upon request.
the
to
if
is
the
motives behind
practical stiff back string
for
result
that
hard
is
fact
believe
o
say:
"It
subsidies
calamity
more
had
apparently
some
sell
calling
all
at
sanity of the American peo¬
ple and their refusal to believe
to memoranda issued
to
cost the awful
the
Stock
designed especially
must
we
Railway Company, offers that inflation is
just around the
interesting possibilities, according corner." Mr.
Hoving in his state¬
&
and
Whatever their motives,
as
with
people who are crying in¬
undoubtedly are sincere,
some
are
misguided people who
have swallowed hook,
line and
sinker, the bugaboo of inflation.
Some undoubtedly are trying to
make higher taxes more palatable,
remains
many
Walter Hoving
is
Bell
of the
flation,
the
inflation
It
excessive
no
people.
bug¬
They
saying
which
ket
Com¬
and Chicago, Rock Island &
pany
binder
the
early
The current situation in Queens
that
aboo.
avoid
result in housewives
Interesting Situations
indication
inflation
that
partner.
J. Eldridge Scheffmeyer has been
a partner in Pollard
& Company
for a number of years.
Borough
THE CHRONICLE
to
the pub¬
with
are
meyer, general partners, and Sam¬
uel K. Mitchell, limited
firm.
Copies of
trying
scare
City.
Partners will be J.
Eldridge Scheffmeyer, the Ex¬
change member; John E. Scheff¬
Rakestraw, limited partners. Mr.
is a new partner in the
For Your
those few who
York
McShain
A DIMnVD
IISJLJRS UJLK
be
must
are
2, 1944, the New
Exchange firm
of
of the New York Stock
that
condi¬
a
great disap¬
pointment to
Effective Jan.
With
—
clear
a
Philadelphia Stock Exchange
Walnut St.,,
Dec.^-
on
stated
tion
Be Formed In New York
Request
is being indulged in by the public," said Mr. Hoving,
spr^e
"this
NY Exchange
on
Members New York Slock Exchange
Phila.
18
Scheffmeyer § Bo. To
Members
ber
expectations
Cum. Pfd.
Memorandum
1529
below
Corporation
7%
the nation, but there are strong indications of a trend in the
opposite
direction." "The fact that Christmas business since the first of Decem¬
who
Rskesir&w, Betz To Be
Brill
MARKETS
BUCKLEY BROTHERS
According to Walter Hoving, President of Lord & Taylor, "there
signs at this time that widespread inflation is taking hold on
spending
PHILADELPHIA,
TRADING
Wages And Stop Using Cry Of Inflation
no
is
San Antonio
-
PHILADELPHIA
MUNICIPAL,
AND
Southwestern Securities
on
Houston
NEWARK
UTILITY
us
to-
For Political Reasons.
PUBLIC
Utility Preferred Stocks
Private
Wires
Teletype
Chicago 35
Ry. & Terminal 6% 1951
All Texas
Finds "Bugaboo Of Inflation" Swallowed By Misguided
744 Broad Street
Devonshire Street
GOVERNMENT,
A
Pepper
Southern Union Gas Common
cruttenden & co.
&
BOSTON
John
Quoted
—
SoVestern Pub. Serv. Com. & Pfd.
Of Trend In
68
W. Betz,
Dr.
Republic Insurance
Bought
Are
ners
Sold
—
•
.
r.w.
the
BS 424
/
in the past.
dynamic,
,
Teletype
you
itself—it must be dynamic
or lose its
position in an industry itself dynamic in peace
and war. It is an industry with constantly growing markets
constantly seeking new and improved methods of
finding and developing those markets... steadily improv¬
ing operating technique and consistently experiencing
changing concepts of rates and regulation.
p
*
Thus, only periodic tests will show where utility investments fitdn an
industry so marked with dynamism. You
may, therefore, find it worth* remembering that4 it is the
policy and practice of our Utilities Department to conduct
such tests—a practice we have followed .for many years.
utility
Building
MASS.
9,
Capitol 4330
\
wire, and it is static—inert. Yet
know that it has. carried current
Bank
BOSTON
a
You look at the
Pont, Homsey Co.
1-672
DID symbol
you everofthink
that a wire—just
a simple wire—is
the utility
industry from the investor's
standpoint?
STOCKYARDS, PFD.
Members N. Y. Stock Exchange and Other Principal
Exchanges
8,
"In connection with the new tax bill, proposed by your depart¬
ment, I read the following statement by you:
"'We know where the bulk of the new money lies, and where,
therefore, lies also the greatest^
danger of inflationary pressure. done by those in the income class
Today four-fifths of all the in¬ to which you refer.
of the nation is going fo
people earning less than $5,000 a
yea**.'
come
In
and
visiting
shops,
I
department
seem
to
stores
sense
that
unbridled
buying is taking place;
and I
wondering whether the
bulk
"A sales tax would not only
.
am
of
this
buying is not being
in¬
3tik
&
Co.
SAINT LOUIS
509 OLIVE ST.
Bell
System
Teletype—SL 80
taxes, but would also be
powerful weapon in the fight
crease
a
against inflation.
"I believe
uated
with
rates
a
would
merchandise
necessitv
,
sales tax with grad¬
bearing
heavy tax."
be
that
an
feasible,
is
not
a
extremely
uka
Members
St.
Louis Stock Exchange
Volume
2529
FINANCIAL CHRONICLE
THE COMMERCIAL &
Number 4240
158
Chicago & North Western
Cutting Delays
CANADIAN
New Securities
In Rail
Reorganizations
when,
St. Pqiul case
Interpretation of I. C. C. action in
and Dealers
Vilas & Hickey
Stock Exchange
York
New
Mevibers
Stock
Contracts Only
Clearing
pflugfelder, hampton & rust
■-<
61
Telephone: HAnover 2-7900
York
New
Members
New York 5, N. Y.
49 Wall Street
SECURITIES
and if issued
Bought and Sold
Exchange
Stock
York
New
Letter available to Brokers
as
Stock
Christmas
Exchange
New York 6
Broadway
Bell Teletype—NY 1-310
Telephone—DIgby 4-4933
NY 1-911
Teletype:
HART SMITH & CO.
52
Huge Travel Increase Seen If
R.R/s Provide Modern Coaches
"Almost limitless" increase
predicted by
in post-war travel was
Chicago & St. Louis have
been attracting considerable attention in the past week or so, and
sharply advancing prices.. This latest speculative spurt
the rejection by the Interstate Commerce Commission
thfe Chesapeake & Ohio's request for permission to issue new
at
fairly
from
of
Budd, President of the
war-time
t
v
r
a
e
1
them
and their fam¬
with that
travel-
ilies
that
the
lic
generally
pub¬
;
interest
just
well indicate a
may
"A
and
on
people will have
will dream dreams.
that
peace
—
concrete
WHiteftall
popularity of that kind of accom¬
modations and that a post-war
increase of 500% in travel in cer¬
tain sections is a reasonable esti¬
mate. His entire address empha¬
the
other
sized, however, that to meet
post-war
forms
must
and
and
vast
of
competition
the railroads
their equipment
of transport,
modernize
has
Government
"The
ferred
from
youth
our
trans¬
camp
to
the various types of
training. Thus the boy who was
brought up in the East will have
camp
for
traveled,
to the Marine Bar¬
say,
road
the
the recurring maturity
around
notes.
unsecured
These
6%
will
finally be eliminated in their
entirety through call for redemp¬
Jan. 1, 1944.
•
Boeing Field at Seattle, Washing¬
Secondly, the Nickel Plate man¬
agement was one of the first in
the railroad industry to recognize
ton, or to any one of hundreds of
the necessity
West, Florida, or to
racks at Key
their service, schedules
charges to the needs of the
majority of "the great pub¬
gear
there.
How will
(Continued
lic."
the
The desire to travel will
country.
be
throughout
stations
military
we
page
on
meet it?
2549)
for utilizing earnings
debt, and this program
has been followed consistently to
to
reduce
Moreover; there can be lit¬
date.
tle doubt,
judged by management
statements, that they will continue
retiring bonds to the extent that
earnings are available for that
net
Railroad Securities
Certificates :
Equipment Trust
'
Mortgage Bonds
and
Guaranteed
Special
Stocks
Serial Obligations
/
purpose.
In this debt retirement
the cpmpany has reduced
its fixed charges to an indicated
level of between $5,200,000 and
program
This represents a cut
in obligatory requirements of ap¬
proximately $2,500,000, or about
$5,300,000.
one-third
STROUD & CO.
INCORPORATED
\
123
South
PHILADELPHIA
PH 296
and 297
9
NEW
'X
N. Y.-Phila. Private
early" '30s.
over
120 Broadway
Teletype
YORK 5
Wires—Rector 2-6528 & 2-6529
level
the
sup¬
ported without undue strain in
traffic
Broad Street
below
to
little
there seems
question but that the
he post-war era>
will "enter
with fixed charges
000.
the
Considering that the
remains favorable
outlook
the visible future
be
road
.
On
such
a
do
not
COi
which
in the
feeling
towards
Nickel
is the favorable post-war
important
A11
picture.
heavy
profits tax liability.
excess
This
cushion and
affords a substantial
would absorb a large part of even
"New"
a
General Income 4s, 1996
substantial decline in traffic and
from
revenues
General Income ■'Scrip"
war-peak
general feeling,
present
It is the
levels.
that the excess profits tax
repealed with the end of
the war so that
if business is
maintained
at
reasonably
high
also,
and
will be
Stock
levels, even though considerably
below
present levels, the
road
could actually experience a post¬
Frederic H. Hatch & Co.
Incorporated
New York 5, N. Y.
Teletype NY 1-897
Wall Street
Bell
more
is the road's present
factor
ST. LOUIS RAILWAY
63
for
consideration
final
The
1-2050
earnings
-
mature
than 30 years.
MINNEAPOLIS &
pv;X
Teletype BS 259
J :
earnings upturn.
war
of
the
on
0425
Plate
largely
centered
CAP.
bullish
made,for a matter of years.
Excluding consideration of merger,
tion
Teletype: NY
3-3450
Boston, Mass,
148 State St.,
will
progress
request
on
Quoted
—
STREET, NEW YORK 5
WALL
1
'•
trains before the war dem¬
onstrated .the
possibilities
and
Sold
There is little likelihood
operating on fast schedules and catch the vision which the young apprehension as to the road's abil¬
with 'cheaper
fares,
especially
people have gotten in their stren¬ ity to support the charges on its
long-distance travel.
* .;
uous
experiences in out-of-the- debt. What fears there may have
He said that the
phenomenal
way places,
'M X; been as to the continued solvency
success of a few such modern pas¬
senger
Registered
EROY A. STRASBUR6ER &
be
of
&
Tel.
Bought
merger
any
free
sent
4s/88
Gen.
Coupon
geography has been vastly
however, the Nickel Plate securi¬
expanded by the news of the war.
comes.
While
ties have considerable merit: on
Their
sons,
relatives and even
Edward G. Budd
he believes
their own in the opinion of most
their
daughters will have seen
that
luxury
rail men."
X,X.,v'
X'
travel
cannot
be
promoted to strange places, and 'will come
As a primary consideration in
home
with
stories which will
much greater volume than in the
arouse the curiosity of the family this bullish attitude towards Nickel
past, he saw an opportunity for
and inspire all of us to go and see Plate, it is pointed out that even
"extraordinary" mass travel in
those places with our young peo¬ in the depths of the depression of
modern, comfortable coach trains
ple, so that we older folks can the '30s there was little, - if any,
when
Their
Discussion
& Pacific
possibilities is;
the least, apt to prove pre¬
based
mature.
victorious
visions
more
tion in Nickel Plate securities now
to say
People's Geography Expanded
would want to
travel
the rails and on the
on
highways,
and
minded
a
speculative
time
this
growing belief that the merger,
The desire to travel will when it does
come, will contem¬
manifest itself on the railroads,
plate a more favorable offer to
on
the highways and in the air.
Nickel Plate security holders than
Many people will use the air and
had
originally been considered
the airways will have a flood of
likelyv
X;'X/':.
,'X:\X
X
travel,
but
the
air passenger
Be that as it may, any specula¬
mileage will be small compared
the armed ser¬
make
is
renewed
the
at
R. R. Bonds
Rock Island
in the Nickel Plate securities
Appraisal of the
Louis, San Francisco
Chicago,
Plate),
sidiaries (including Nickel
A Post-War
&
As Chesapeake
St.
fighting.
and women in
would
travel as
suspension of
passenger
there
as
soon
by
vices
of
amount
men
young
will
there
War," he said
that
belief," he said, "that
be an extraordinary
"It is our
Cars After the
t
common.
<♦>-
Speaking on
"Passen ge r
Toronto
Montreal
New York
various securities of New York,
The
Edward G. Budd Manufacturing preferred stock as a dividend on its
Co., Philadelphia, in an address at the annual meeting of the Amer¬ Ohio's proposed distribution of<3>
ican Society of Mechanical Engineers in New York earlier this month,
preferred stock as a dividend was
if the railroads have the foresight to provide cheaper, faster and more
purportedly to facilitate eventual
comfortable coach trains and generally modernize their facilities.
merger with
various of its sub¬
•s
Teletype NY 1-395
Bell
dates
Edward G.
HAnover 2-0980
St., N. Y. 5
WILLIAM
below $5,000,the road
basis
would appear
proof.
N. A. McKenna To Be
virtually depression
X:'-'i,'X'
XX'
X
In addition to the lower charges
,
Partner In
arising from debt retirement, the
road's position has been improved
materially by the gradual elimi¬
nation of near and intermediate
term
company
demption
sue
of
on
Lake
Erie
Western
will
;
be¬
Broadway,
Exchange and other leading
6% notes,
Ex¬
changes, as of January 1st.
Mr.
McKenna in the past was a part¬
called
&
Reynolds
McKenna
partner in Reynolds & Co.,
New York City,
members of the New York Stock
120
for re¬
Jan. 1 the entire is¬
has
A.
come a
In addi¬
maturity problems.
tion to retirement of the
the
Norbert
1st
in Eastman,
ner
3s, 1947 (outstanding as of the
beginning of the year at $6,036,-
Dillon & Co.
Co wen & Cox To Admit
in connection with which it
proposed to contract a shortterm
bank
loan
of $2,000,000.
Aside from this bank loan and
000)
New
New
serial
equipments
the
company will have only two divi¬
sional liens maturing within the
regular
$15,000,000 of
$6,500,000
Toledo, St. Louis & Western 1st
next 10 years—some
1st
31/2s
in
4s in 1950.
1947
Co., 54 Pine Street,
City, members of the
York Stock and Curb Ex¬
Cowen
is
&
York
admit Daniel F.
partnership in their
In the past
O'Hara was with Talbot & Co.
changes,
will
O'Hara
to
firm
Jan. 1, 1944.
Mr.
on
and
These should obviously
present no problem to a road of
and the
represented
the stature of Nickel Plate
balance of the debt is
by the roundly $86,000,000 of re
funding
-
R. R,
mortgage 4V2S and 5%s
4% Stock ($50 par)
We maintain active
"Rock Island" Reorganization
Circular
on
Members New York Stock Exchange
TEL.. HANOVER
2-1355
1. h. rothchild &
.
co.
Adams & Peck
,
NEW YORK 5
X
request
SEABOARD-ALL FLORIDA 6s/35
-0
STREET
on
SEABOARD 4s/59
request
Mclaughlin, baird & reuss
WALL
Circular
Central R.R.)
SEABOARD 6s/45
,X
ONE
(Lessee New York
'
SEABOARD 4s/50
Profit Potentialities
trading markets in:
TELETYPE NY 1-1310
x,,
specialists in rails
120 broadway
COrtlandt 7-0136
5
Tele. NY 1-1293
n. y. c.
63 Wall Street,
BOwling Green
Boston
9-8120
New York 5
Tele. NY 1-724
Hartford
Philadelphia
2530
THE COMMERCIAL & FINANCIAL, CHRONICLE
Thursday, December 23, 1943
Doremus Co. Announces New Vice-Presidents
different
columns,
one for each
Those reporting se¬
kind of tax.
Long, Jr., President of Doremus & Company, has curity transactions have to attach
a special sheet because there
isn't
promotions of five members of that Organization, four
any room on the form itself to re¬
in the New York office, and one in, Boston, effective Jan. 1, 1944.
port
them.
Page 3, formerly used
Named vice-presidents in the "New, York office, are the follow¬
for capital gains and
losses, con¬
ing members of the staff:
.
tains schedules in which are list¬
Dewey B. Holland, who has been associated with the agency for
ed contributions,
taxes, interest
and other
deductions, as well as
William H.
announced
Merrg Clircstnms
schedules
to
personal
show
credits
exemption,
and earned income.
Paine, Webber, Jackson
To
figure what
Sam,
ESTABLISHED 1879
for:
dependents,
V
you
,
Uncle
owe
you must fill in over 20 lines
the
last page, but you can't
do this until you have filled in a
on
half-dozen other lines
Public
Tax.
Utility Securities
front
Pending Utility Stock Offerings
three important
The
utility stock offerings this year'—Houston
curred with the idea of distribut-<s>~—
——
,
Dewey B.
Holland
Howard
W.
Millar
—.
.
Jmutio^from
,
,
the SEC are completed and the
(compared with $2.20 in
the previous twelve months),"butvnecessary .accounting and fihansome
adjustment of this figure, cjal changes are completed, Namay prove necessary.. The com-1 tional Power & Light is expected
pany
does not pay any excess, to distribute to;commoni stockprofits. tax. Earnings in previous, holders its holdings of Carolina
years had been somewhat irreg- Power & Light common and Birmingham Electric. A reported at¬
ular due to rate changes, etc.
Central Vermont Public Service tempt to initiate a when-issued
Wm- L Kelley
Erickson
A.
Geo.
Morse, who has been
with
associated
organization
Doremus
the
in the headlines
complicated series of transactions
and changes in Order to make the
issue marketable.
When the com¬
over-the-counter
former
market
apparently
unsuccessful for technical
Many * other
companies
Tax Season
or
Tax?
of
is
still
to
be refunded,
the
form
used,-
compute
how
owed
the
with
been
since
Shawmut
October 1927, first as assistant to
and the taxes withheld from their
pay in 1943,
true tax bill.
sales
mut
the Boston "Herald" and for sev¬
months
eral
the
Boston
previous to that in
"Evening Transcript"
where he also headed the unlisted
securities
He
quotations department
at
was
one
time with the in¬
vestment counsel firm of
Russell
&
Co.,
now
Kimball,
Russell Berg
& Co. of Boston.
In
of
making
the
form" and you want to see which
results in the smaller tax
or the
Pity the married
couples who have not only this
option, but also have the option
of filing joint or separate returns
—they must figure six ways to
bigger refund.
which is the best for them.
see
Robert E.
announcement
the
Long Revenue
Mr.
promotions,
Hannegan, newly ap¬
pointed Commissioner of Internal
and.
stated that this realignment of of¬
of Internal
ficers will strengthen both the fi¬
fers
a
Collector
good sound : advice—it
and general advertising you want to
get the full benefits
departments of Doremus & Com¬ which the tax law gives your
pany.
It represents a policy of start preparing your tax return
advancing; personnel within
the
organization and offers some of
the younger
of wider
as
soon
leased.
as
the hew forms
"
-
are
re¬
:V:
a
executives positions
Bertram L. Hames Now
responsibility.
Opens As
Buckley Brothers
(Special to The Financial Chronicle)
LOS
v
Attorneys, Tax Consultants, and Co-authors of the Best
"For Personal Income Tax," Now on Sale.
'■
•
ANGELES, CALIF.—Bert¬
L. Hames
with
has become
Buckley
of
the
New
asso¬
Brothers,:
York
and
Philadelphia: Stock Exchanges, in
their Los Angeles office at 530
West
Sixth
Street.
Mr.
Hames
formerly Manager of the Mu¬
nicipal and Institutional Depart¬
ment of the local office of Conrad*
was
Seller,
Bruce & Co.
Friday morning the Treasury. Department released for pub¬
Last
,
himself, of¬
nancial
By PETER GUY EVANS and J. STANLEY IIALPERIN
reasons.
formerly
Revenue
some
members
the
is
is more than their
manager of the Shaw¬
Both forms have a
.Corporation, an investment box in which to tell the
Treasury
banking; affiliate and after 1931, whether you want the refund or
with the Bank as analyst and sta¬ Whether
you want it applied to
tistician in the investment de¬ your 1944 estimated tax.
partment. For a year prior to go¬
Your headache will be
double,
ing with the Shawmut Corpora¬ if you have the option of filing
tion he wrote a daily column in
the; "simple form" or "regular
the
Complicated Ever Devised, Say Experts, Pointing
Out Highlights
{
Most
much
About 15,000,000'
get refunds due to
will
persons
how
or
1936, has been named the fact that the total of their
vice-president. Previously he had March and June 1943 payments
ciated
proved
by
likely
so as these
the retire¬
is
tax
ram
appear
complete
Refund
special
forgiven, how much
postponed, and how much
With
distributions
the next year or
over
in
stock
holding companies
a
since July of
of $2.66
been
in
must
everyone.
■
Corp, has
result to the
your
return
much tax is
.
recently.
The holding company,
New
England
Public
Service
("NEPSCO") has planned a rather
the
Finale:
23 years and for the past 18 has
to common stock- j "sweeten" the offering, it was been account executive and*
pro¬
holders of the holding company, t said that the stock could be sold
duction manager.
He was named
and it seems doubtful whether to the new group for $14.92, with
secretary of Doremus in 1941.
this will be done, though this a public offering at $16.00, if the
Prior to joining Doremus & Com¬
method of creating a sponsored SEC should approve the deal. It
pany Mr. Holland served, as pro¬
market for the issue would per- is understood that the latter price
duction manager for the McJunhaps be more profitable to stock- is approximately ten times cur- kin
Agency and in a similar capa¬
holders than handing them the rent adjusted earnings,
city with the Corman Cheltenham
stock. Following are some of the!
Central Illinois Electric & Gas
•Agency;"'■
•"
issues which may be offered
by)isbeing sold by its holding cornW.
Howard
Millar, who has
underwriting groups in the next pany, Consolidated Electric & Gas.
been employed with Doremus; as
few weeks or months;,
*
| The SEC held a hearing Dec. 14 an account executive for the past
Derby Gas & Electric, subsidconsider the sale. The company
11 years and has been actively
iary of Ogden Corp. (formerly bas 'asked for exemption from
engaged in the financial advertis¬
Utilities Power & Light) has recompetitive bidding. Latest pub- ing agency business for : the past
gistered with the
SEC 91,577 Hshed earnings (for the 12 months
27 years;
shares of common stock out of ended
Sept. 30) would be equivGeorge A. Erickson, who has
146,606 shares outstanding.
Mi- alent to about $2.59 a share on the
been an account executive in the
liority stock is traded over-the- proposed new capitalization of
New York Office of Doremus for
counter at about 20^-21 J/4 cur¬
400,000 shares of $15 par value.
the past 10 years and prior to that
rently. Divestment of Ogden's in¬
Other new common stocks are was associated with Stone & Web¬
terest is mandatory under an SEC
expected shortly to reach the pub- ster and Blodget, Inc., and before
lias requested an exernptiow irorn lic by distribution instead of sale, that, with the Metropolitan News¬
nac TiYinrovpniprit
; Competitive bidding.; The qorpo- U-ra?e<i
Gas Improvement is sched- paper Service;
uled to, distribute Delaware Power
William J. Kelley, Who joined
is
ration
is
a
registered holding;
& Light shortly on the basis of the Doremus organization in 1942
company, owning the stock of an
l/20th of a share to each share and formerly was an account exe¬
operating
company
of
similar of its
own stock outstanding. (Sev¬ cutive, with the Hawley Advertis¬
name and two smaller companies
eral
months ago
it distributed ing. ^Agency and secretary of that
in Connecticut, stocks of the two
Philadelphia Electric). It is esti- firm. Before entering the adver¬
operating companies being pledged
^Ved^thaT
the mew'' stock lav
unrW
1Q4Q
matea
tnat UIO
I^CW SXOtJK may tising, field hej was active in pub-;
under tho
the ^ollafprnl'
collateral 3c
3s rlnA
due 1949.
have a market-somewhere around lieity work in New York and
In the twelve months ended June
16.
Washington,
i
30th
the
consolidated
earnings
In the Boston office, Charles W.
After pending negotiations with
statement reflected share earnings
,
of
Regardless
cash
the
same
summary.
Lighting, Idaho Power, and Public Service of Colorado—have proved
so successful (following the investing public's apathy in 1941-42) as
to encourage holding company executives to market holdings in addi¬
tional subsidiaries, where such liquidation is deemed essential to
retire senior securities.
Thus far, no important stock sale has oc¬
ing
then carry
you
the
on
and computed your Victory
After filling in over 30 lines
page
with
Prior thereto he
Schwabacher
&
Co.
was
and
That the forms are Sargent, Taylor & Co., arid was
securities
and the
pany asked for competitive, bids
toughest and most complicated ever devised cannot be denied. an officer of Banks, Huntley & Co.
"clear
the
decks"
for
final
disso¬
only one was submitted,; by a
The sale of aspirins and other headache remedies is bound to increase
group headed by Harriman Ripley lution, or merger with one of their after the first of
January When 50,000,000 taxpayers; sit down to figure
& Co. and First Boston Corp., at i operating subsidiaries.
their taxes.
'V-" ■'-•'j
; j"--'J
"•
ment
of
senior
lication, the 1943 individual income tax forms.
NatT Sec. & Research
.
a share for reoffering to
public at $14.25. Almost im¬
mediately after rejection of this
bid by the company, a privately
negotiated sale to a group headed
$13.25
the
by
Coffin & Burr,* Inc.
was
re¬
ported under consideration. With
,
a
.
,
„
,
reduced number of
,
shares and;
certain other changes designed to
The
Shufro Rose To Admit
Shufro, Rose & Co., 1 Wall
Street, New York City, members
of the New York Stock Exchange,
will admit Archie L. Cohn to part-
nership
wa3
as of Jan. 1,1944. Mr. Cohn
previously with Cowen & Co.
and Laird, Bissell & Meeds.
return, to be filed
tax
March
15, 1944, being the .official
will show
return for the year 1943
the
tax
true
for
1943.
The
dec¬
larations of estimated tax filed
Sept. 15
or
on
Dec. 15, were but es¬
timates.
"Simple Form" Less Simple Now
Form
1040A—"Optional
Individual
Tax
Income
and
U.
S.
must, be; used in computing the
Victory Tax which has to be figured, separately. : The
are
half-sheet
PUBLIC UTILITY SECURITIES
larged that it might not be
rect
to
refer
to
this
form
those
is still available to all
with
incomes
derived
less,
it by
its former
The option, to use
popular name.
.^rJ
cor¬
of
$3,000 or
solely from salary,
etc., dividends; interest, or
annuities, and if married, whose
wages,
Bear, Stearns
Members New York Stock
NEW YORK
»
Co.
Exchanse
CHICAGO
spouse
like
also
last
page
uses
this form.
year's
affair,
form, is
which will
a
This,
two-r
take,
a
shorter time to prepare as allow¬
is made for deductions and
ance
the
income
matically.
tax
is
of paper.
eliminates
saves;
quite
has
fewer
etc.
instructions
sides of a
Use of this
tedious
steps;
bit of arithmetic,
questions to answer,
a
:
All
don't
want
to
use
use
the
Jones
"simple
Return," also known as the "long"
"regular form." This is the
and, most
com-
plicated^ 1040 Form ever devised
for the individual taxpayer. Like
its predecessor it is still a four-
form. The accompanying in¬
structions, printed in small type,
page
consist of four pages.
Since. the Victory Tax is
ured one way and the Income
,
Vice-Presidents.
the.
Mr.
middlewestern
wholesale representative and Mr.
England and New
'
G. H. Walker Co. To
Admit Richard Smith
G. H.
or
formidable
as
kuechlev is
Form 1040—"In¬
dividual Income and Victory Tax
most
National Securities & Research
York State representative.
others; including those who
form" must
;
Corp., 120 Broadway,; New York
City, announces the election of
Manny G. H. Kuechle and Ira G.
Jones the New
"Regular Form" More
Complicated
Victory,
Return," also known as the
or "simple form" has been
completely revised and en¬
both
on
form
"short"
so
printed
Elects Vice Presidents
fig¬
Tax
deduction
figured auto- another, income and
A four decimal figure' figures must be written in two
of
the
Walker
Co.,r members
York "and
New
St. Louis
Stock Exchanges, will admit Rich¬
ard
H.
Smith, Jr., to partnership
in their firm on January 1st.
Mr.
Smith, who will acquire the New
York Stock Exchange membership
of Philip
H. Watts; will make his
leadquarters
IT
-.A
at
1
the
1XrT.11
firm's New
C+VT.A +
Volume
Price Fixing And The Securities; Business Y
;
;
(Continued from first page)
'
,
of the
We
Maloney Act. The edicts of both are intended not as
AND SELL
for J'the duration," but as a perma¬
nent system overseeing security dealers.
The existence of
these bodies and the scope of the powers which they exercise
leads to the presumption "that there is something rotten in
Denmark," that the security business is honeycombed with
those whose motives and methods are questionable and who
an
emergency measure
would not hesitate to mulct the
Fiats
established to create
are
OFFERINGS WANTED
WE BUY
"
FIRST
ISSUED BY
-
Seligman, Lubetkin & Co.
•
;
Incorporated
Members New
Title Guarantee & Trust Co.
N. Y. Title &
Real Estate Securities
Mortgage Co.
and other Title
absolutely incorrect characterization because it represents
merely a "spread" between the so-called market and the
sales price. The Securities and Exchange Commission and
the National Association of Securities Dealers are absolutely
indifferent to the issue of overhead. The cost of doing busi¬
'
V.^'yYYv Y
generally believed that the failure of the SEC
to promulgate a disclosure rule after it had the same under
consideration, particularly after the 5% NASD rule was re¬
garded as an alternative, would relieve security dealers of
that evil. Many thought the disclosure rule a dead duck,
which in view of the opposition with which it met, would
not be resurrected. The 5% rule seemed woe enough, when
It
was
Successful Syndicate Still Buying
Offering List
Cor¬
recall
York
Stock Exchange firm of Wertheim & Co. bought about 55% of the
$5,380,000 bonds outstanding of the National Hotel of Cuba and a
large amount of common stock of that corporation.
poration is about to buy the Drake Hotel of Chicago.
You will
that in May of this year, interests identified with the New
request.
LANICE & CO.
Wertheim & Co. have been
one<£—-——
——'—:—•
were selling at 11% when he took
progressive and out¬
standing factors in the Real Es¬
the
of
32 BROADWAY
New York 4, N. Y.
the
'C'.yV.'■ Y■
on
r
,
ness forms no
are
Companies
Announcement has been made that the National Cuba Hotel
December 15
an
we
HAnover 2-2100
Lawyers Title & Guaranty Co.
danger, as we pointed out frequently, is
the destruction of the small dealer by the NASD 5% rule.
This has sometimes been referred to as the 5% profit rule,
ever,
Security Dealers Association
Lawyers Mortgage Co.
Not the least
kind in the securities business.
York
Broad Street, New Ydrk 4
41
.
spread must spell extinction to many. How¬
unalterably opposecUto price ceilings of any
offerings
small blocks of
or
Real Estate Securities
v
regulate a business which is essentially honest.
YY
Price fixing as a war "emergency measure is understand¬
able. Otherwise, price fixing is a complete departure from
that system of competition which has been recognized as
part of the "American way." %
"•
,
>
:;
A-
whilst the 5%
large
CERTIFICATES
public, given an opportunity.
presumptions of dishonesty
part of their calculation and they disregard
general knowledge that overhead is a variant and not a
constant.
v ■;.:A. ;;H.Y
/YY-- YY'
■•'
■ ■ Y-In other words, an outright rule limiting profits would
not have been nearly as vicious as the existing 5% one, for
a limitation of profits would at least enable the dealer to
cover his overhead and make it possible for him to survive,
interested in
are
of
MORTGAGE
rather than to
'
2531
TkE COMMERCIAL & FINANCIAL CHRONICLE
Number 4240
158
most
Their oper¬
tate Securities field.
Telephone: DIgby 4-6886
have
ations
bondholders
Fourteen New Partners
only been of
but to the
well.
The vision
not
themselves
benefit to
as
partner, Edwin I. Hilson,
of their
Lynch Go.
markably correct
Lynch, Pierce, Fenner &
Beane, 70 Pine Street, New York
City, members of the New York
Stock Exchange and other lead¬
ing national exchanges, will ad¬
mit the following to general part¬
nership in their firm as of Jan. 1:
Herman Belth;
;
/:;
,
H.
Maurice
officer
Bent, formerly
an
Blackett-Sampleadvertising agency of
the
of
Hummert
Chicago, with Kidder, Peabody &
Co., in Chicago and in the past a
the
entered
He
in
penny
five years.
interest
received
have
and the bonds are now
selling at 28.
every year
transactions, has been proved re¬
Merrill
interest for
Since 1938, the bond¬
a
holders
hadn't
bondholders
the
received
and profitable.
estate bond
real
another
Still
who has handled their real estate
For Merrill
and
hold
Ritz
not even
ous
venture
earn
the
was
which
could
taxes under
previ¬
Hotel
Towers
and which has
management
very
few
people
this particular type of
Poor earnings of the
paid the bondholders 2% per an¬
arrears, etc. did
not bother him at all.
He backed
clude the Beaux Arts Apartments
when
field
would buy
security.
properties,
his
tax
judgment
by
buying
a
sub¬
Even¬
stantial amount of bonds.
tually he was, able to get at least
management control of several
outstanding properties and
achieved extraordinary results.
of
One
his
first
ventures
interest since he took over.
num
was
SEC
Other ventures of his firm
in¬
One Fifth Avenue Hotel
and the
equally
the
for
profitable
as
bondholders since he has handled
them.
fact
The
that
is
firm
his
con¬
tinuing to go into real estate
deals speaks well for the future
of real estate securities and indi-^
cates that there are still many op¬
partner in Field, Glore & Co., and the Delmonico Hotel, a S, W.
came the decision in the Hughes case, giving the
the benefits of a disclosure rule and now we read press head¬ Eastman, Dillon & Co.;
portunities for enhancement in
Straus issue in default with plenty
; William H. Dunkak;
value.
lines, "SEC to Reconsider Disclosure Rule."
Y-'Y, Y.YY4;'Y r, George J. Leness, previously of tax arrears. Bonds were sell¬
We cannot help but feel that
ing at 8%.
By the time he got
' One business or one industry is but one business or one
vice-president of The First Bos¬ through with it the bondholders New York City will have a good
ton Corporation of New^ York;
got pretty close to 40 for their post-war future and that.its pros¬
industry and if there were not other far reaching
Michael W. McCarthy;
perity must reflect to the advan¬
bOhds. ■/;
Y/k
YY> •
tions; the public might well let the security dealers "stew
Charles K.^Marsico, ihember of
Next'was another Straus issue tage of real estate bonds.
An their own juice."
However, there are vital far flung the New York Exchange, and pre¬ called Butler Hall. These bonds
along
■
implica¬
reasons
which must prevent such a reaction.
'
■
viously
Vl
coming post-war period is to be one of prosperity,
the financing of our industries must be put on a liquid basis
with securities readily marketable. The country will not re¬
If the
;
*
gard with approval the return of the street apple vendor.
Ready marketability of securities in the business of the na¬
tion will instill confidence into the business community, The
existence of a disclosure rule and the 5% spread "philoso¬
weiler
partner in Bendix, Luit-
a
& Co.;
selling at 26 and were also
The bondholders com¬
were
in default.
'
.
Webster, with the
for some years;
Byron
firm
in Chicago
will
following
$250,000
of
first mort¬
of
ahead
the
bondholders and give them a sec¬
become
limited partners: Jean T. Beane;
Esther
T.
Carpenter; Sadie K.
The '
mittee wanted to put a
gage
Manuel Weisbuch.
Klau; Arthur S. Laundon; Ethel
W. Skutch; and Russell T. Stern.
phy" is not calculated to encourage the outpouring of capital
during a reconstruction period. We believe these rules will
Cohu & Torrey Open
do the nation irreparable harm, that they will stem the tide
of capital investments,, result in mass unemployment; and New Florida Branch
Cohu &
Torrey, members of
make for a long reconstruction period retarding the realiza¬
New York Stock Exchange, an¬
tion of normal conditions and ultimate prosperity by many
nounce
the opening of a branch
years. In all this, the public has a tremendous stake. ;
:
office
in
the
Blount Building,
;
For another reason opposition to this rule is not special Fort -Lauderdale, Florida.
This
ond
mortgage with interest pay¬
able
V
TRADING
Mr. Hilson
only if earned.
the bond¬
4%% fixed in¬
with no mortgage
took hold and saw that
holders received a
bond
terest
MARKETS IN
REAL ESTATE
SECURITIES
*
and this year the bonds
were all paid off at par!
Another venture was the Madi¬
*
ahead,
son
Hotel, another Straus
default with interest
rears
a
Members New York Slock
Members New York Curb
and tax ar¬
almost three quarters
of
million
SHASKAN & CO.
issue in
40 EXCHANGE PL.,
of
Y
i
Bell Teletype NY
Exchange
Exchange
DIgby 4-4950
N .V.
1-953
These bonds
dollars.
.
J
.
pleading, for every man, woman and child in the nation
the gradual transformation emerging
must be concerned in
under
our
The
which threatens our way of life. - •
legislate personal habit and conduct
uniform failure. "The noble experiment,", pro¬
very eyes
new
agement of Eugene Leigh
a
Ward.
hibition, proved that beyond peradventure.
Because one
die of indigestion from eating too much pie is no reason
to prohibit the eating of pie. i You cannot legislate a people
into honesty any more than you can legislate them into mod¬
may
Dividend
Leslie Grelty To Be
Ml Holden Partner
.
To Be Partner
attempt to
has been
office will be under the man¬
•
Eisele & King,
Co., 50 Broadway, New York
members
of the New York
and
Exchange
will
admit
J.
other
C.
Leslie A. Cretty will become a
Libaire, Stout &
City,
Stock
Exchanges,
Vogeler, Jr., to
partner in Bull, Holden & Co., 14
Wall Street, New York City, mem¬
bers of the New York Stock Ex¬
Mr.
has been with the firm
change, as of Jan.
Cretty
since
its
1, 1944.
formation,
as
General
The
directors of Ely &
Walker
Dry Goods Co. have declared an
extra dividend of $1 per share on
the
common
Jan.
15
Jan.
tions
1944.
4,
were
and 1942.
payable
stock,
of
holders
to
Similar
made
Jan.
record
distribu¬
15,
1943
The common stock has
profession, there will always be a certain limited partnership in the firm as
been on a regular quarterly divi¬
Manager.
amount of knavery. That, however, will never justify, plac¬ of .Jan. 2,.1944.
dend basis of 25 cents per share
for
several
years.
Dispatches
ing the label of fraud upon any business or upon any profes¬
With bureaucracy, there should be no compromise. Ap¬ from St. Louis state that the
sion.
By and large, security dealers, as a group, compare
stockholders will take action on
favorably with those engaged in any other business or indus¬ peasement will only result in greater encroachments. One March 6 next on splitting up the
try., They are largely responsible for the progress of our of the banes promised us, one of the rights we are supposed present preferred and common
stocks.
It
is
stated
that
the
country and its phenomenal ability to reach peak production to be fighting for, is freedom from fear. The fact that the
present preferred shares will be
in the world's most trying emergency today.YY;;'A YY writers1 of so many of the letters to the Editor of the split five for one and the present
'r '
Today the security dealer, tomorrow, the butcher, the ■''Chronicle" requested that their names be withheld, cer¬ common shares two for one.
..baker, the candlestick maker. This bureaucratic trend, this tainly indicates that no such freedom exists among security
cancer upon the well-being of our nation,
needs surgery, dealers. The time has come to unite and abolish the regula¬
Townsend Graff To Admit
From its unretarded spread,'no business is secure. We have tions which give rise to fear.
Harry A. Greenhall and Irving
The CHRONICLE invites comments on the views ex¬
seen the encroachment of government in the field of busi¬
In every
eration.
„
,,
'
ness.
Metz and Kole in this article, or on any
phases of the subject under discussion. Comments
Insurance, public utilities, communications, and other pressed by Messrs.
fields have suffered from this evil.' First
then in the
.
guise of regulation
tion.
may come
regulation, related
ultimate absorp¬ should be addressed to Editor, Commercial and
Chronicle, 25 Spruce Street, New York 8, N. Y.
comes
Financial
Herzenberg will become partners
in
Townsend,
Graff
&
Co.,
120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
change,
on
January 1st.
THE COMMERCIAL
2532
& FINANCIAL
CHRONICLE
Thursday, December
Ohio Brevities
Steep Rock
Iron Mines Ltd.
i
Qillis, Russell & Co.
1
'■
"
'
i
...
.
ii.
i..
INDUSTRIAL BROWNHOIST
slightly
group, headed by
H,
(Incorporated)
Union
1899
13,
O.
Ph^ne
Bell Teletype
CHERRY 0260
CV 496-497
Commerce
Cleveland
*
Cleveland
Building
Teletype CV 565
14, Ohio
Long
Open Wire to Troster,
Distance
Johnson,
and 4,000 shares that had not been
voted.
It
needed
only
11,767
500
shares.
Currie & Summers
Had the merger been ap¬
proved,
it
Cleveland
dollar
Ohio
WANTED
OFFERINGS
Kentucky
•
West Va.
-
In recent weeks there has been considerable talk
ply of municipals that will be put
Municipals
WEIL, ROTH & IRVING
COMPANY
Member Cincinnati Stock Exchange
warranted.
In
BUILDING
TERMINAL
CINCINNATI
2,
on
they
O.
Cleveland
bonds
unless
approved by the voters.
Wire
Private
to
Members Cleveland Stock Exchange
Union
Commerce
CLEVELAND
Tele. NY 1-1541
shot
umn
As reported in this col¬
previously,
some
$2,788,000
Union
sold
"thrashing
of
new
at
public sale during the first six
issues of Ohios
the "antis"
were
Bank
out"
for four hours
months
the week-end.
over
holders
the
New Chairman of the Ohio War
John
now
were
(Continued
Kraus,
years.
Mr.
limitation to pay
do not reduce the
mill
of
it, such
amount
the
among
and
known
years
J.
business
of
each
Nutt
and
men
whom Vhave
other
for
and
long
a
;
..
..
R.
millage
subdivision
available
for
to
operating
the
pur¬
poses.
approximately $8,000,000 sold Union Trust Co., and three young
during 1943. As a matter of fact, ^partners in the firm of
Ledogarthe
issuance
of
municipals Horner & Co., were very active
throughout the country will prob¬ among those
opposing the consoli¬
ably be on a larger scale. Reliable dation. The
Ledogar-Horner part¬
during
At
years.
the
the
month,
general
only
bond
new
past
several
election
§7,705,500
in
of
new
about
or
municipal bonds after the
will
war
Norman V. Cole, George
F. Opdyke and Frank J. Schulte.
ners
probably be
twice
the
on
present
perhaps somewhat
scale
a
are
John
volume,
A.
Hadden
led
the
forces and Severance A.
more,
CLEVELAND,
Otis
"pro"
OHIO
—
C.
A.
re-entering the securities
as
associate
an
of
Field,
Richards & Co.; Union Commerce
Otis
with
the
the
absence of ten
an
has
been
investment
Cleveland for
over
formation
of
identified
business
in
44 years, since
Otis
&
Hough,
predecessor of Otis & Co., in 1899.
Mr.
Otis
seat
on
at
that time
acquired
a
the New York Stock Ex¬
change, being the first Cleveland
broker
Milliken
that
..." '•'
of
to
own
membership
a
in
Exchange.
Mr. Otis
Secretary.
was
is
business
Building, after
.
Joseph
the
estimates indicate that the volume
2551)
page
Field Richards Go.
Cleveland
many
most
groups,
on
&
meeting—
'
tax
last
months
Ball, Coons
any
both former Presidents of the old
for operating
ex¬
On the other hand, if the
electorate approves a bond issue
and the levy of a tax outside the
$7,922,683, of which $4,-
of
unofficial.
was
Defeat of the plan ended a bat¬
that had been going on for
•
1943
year
is
He replaces Percy W.
Brown,
State Executive Chairman,
following the war will be
materially greater in amount than
available
the
1
Treasurer
while.
subdivision
for
of
Area
Vice-President
proposition
Monday, before
out
.
and
amount of Ohios to be sold in the
the
be
Ohio
came
Burge,
Co.
financial
limitation, reduce the
taxes
in
news
Committee's
B.
566,000, or over half, will be re¬
funding bonds.
..'■
It is
quite probable that the
of
issues
Tele. CI-574
ex¬
Last Saturday
new
Finance
this 10 mill
amount
that
without
taxes
quite reluctant to vote
Cincinnati
prices not to
de¬
will
in
levied
mills
10
The people of Ohio have been
14, OHIO
York
then
pur¬
up nine points to
high for six years, on
the Cleveland Stock Exchange.
payable from taxes levied within
Bldg.
CV-255
Teletype
New
and
met
a
tle
of
limit
a
be
bonds
L. J. Schultz & Co.
holders
issue
104,
issues
10
York
Bank
this
the approval of the voters. Bonds
has
New
is
and that
is
penses.
Union Bank of Commerce
war
at
ceed $100 a share.
of
1943, of which $1,710,000
were
refunding bonds.
Thus, the total ..amount of new
may
of
issue
to
are
There
National City Bank
Friday, four hours after stock¬
holders of the National City Bank
had voted the merger, but Union
about the sup¬
announced
company
shares
more
last
would think that the market would
025,000.
Ohio, there is little inclina¬
the part of political sub¬
tion
divisions
;
one
$540,000,-
municipals and that, consequently, the price level cided to postpone the meeting un¬
will be much lower than that prevailing now.
This talk has already til last Monday.
Last Friday it
had some effect on the municipal market
during the past six weeks; was reported the "pros" needed
Hence, a realistic appraisal of the^——
—
—
—
about 2,700 shares, so there was
probable supply appears to be land bonds
accounted
for
$1,- little change in the sentiment of
BONDS
MUNICIPAL-CORPORATION
of this talk
some
institution
new
The
chase of 30,000 of its $6 prior pre¬
ferred
shares at $100 a share and
has authorized purchase of 10,000
flooded with
be
THE
DIXIE
From
over.
the
as
bought 98 service stations, 19 of
which are in Cleveland, for about
$2,000,000.
brought
half-billion
The meeting had been called for
»■;
a.,;A
the market when the
on
bank,
have
second
000 of assets.
'• ■ ' ;0
AUSTIN WHITE;
would
its
would have had around
Municipal Comment
By J.
Ohio
35,300 shares^
The anti -merger on 104,000 acres of land, motor
Attorney Homer vehicles and certain inventories.
In the other
claimed 9,500 shares
deal, Shell Oil Co.
outstanding.
OTIS & CO.
,
over
to
votes as the bank has
EMPIRE SHEET & TINPLATE
Tower
early this week.
tabulations, the pro-merger forces were lacking
2,500 votes to put the plan across, having polled
21,000.
They needed a two-thirds majority or 23,534
According
approximately
Prospectus on Request
Terminal
proposal to merge the Union Bank of Commerce with the
City Bank of Cleveland tmet with defeat at a meeting of
Union Bank stockholders
NATIONAL TOOL COMMON
Certificates
for Capital Stock
Trust
ESTABLISHED
The
.
National
i
.
5/4% Debentures '57
Voting
23, 1943
the first Chairman
was
'
bonds
submitted
were
voters, ' but
Land
Trust
Certificates
i
Bonds—-Pfd. &
Philip
Pfd.
&
or
only
and
only
<
§795,100,
approved.
bonds
more
it
Com.
MEMBERS
York
Cincinnati
New
Stock
Exchange
is
Associate
Terminal
Building
CINCINNATI
Tel. Main 4884
or
(Continued
be
to
predict
"
:
*
2
cinnati
vot¬
rts
ballroom
However, it is apparent
that
the
least,
are
that they
people,
not
Ohio
of
in
now
a
levies, and
will be in
we
a
at
mood to
doubt
mood
to
annual
Dec.
ent
8.
we
2551)
Toledo Edison Pfds.
Ohio P. S. Pfds.
the
last six
$2,856,000, or well over half of the
total, represent refunding bonds.
Of the remaining $2,278,683 sold
Collin, Norton & Co.
for
new
money, one
MEMBERS
New York Stock Exchange
(Associate)
Chicago Board of Trade
'•
Associate Members New York Curb
,
•
Toledo
New York
Adams 6131
BOwling Green
Bond
election
of
the
Club
of
company's Coffeyville, Kans., ^re¬
finery to the Co-Operative Re¬
fining Association of North Kansas
C.
party
in
:
.
Cowden
said
amounted
the
Metropole Hotel
to
over
transaction
$4,000,000
for
New
dent
Hall, Assistant Secretary and As¬
sistant
Treasurer,
are
in. the
Personnel
Date—
':'■■■
Dec.
22,
1.41 %
1.59%
1944:
Dec.
15,
1.24%; A;.35.%
1.42
1.59
1.24
Dec.
8,
1.41
1.59
1.24
for. the
Edw. Brockhaus &
The
year
coming
Vasey,iof H.
B.
trustees
will
to
officers
meet
next
for
the
year.
1943
•35.
'
Dec.
Changes
1,
1.41
Nov.
17,:
1.39
1.57
1.22
Oct.
13,
1.39
1.58
1.21
1.59
1.24
:35
'
Sep.
1.43
1.62
1.24
1.44
1.63
1.25
July
1.50
1.68
1.32
.36
1.76
1.97
1.55
.42
2.01
1.65
.36
2.13
1.70
.43
15,«___
Mar.
-
Jan.
1,1943
1.83
1, 1942
1.92
*
Jan.
1, 1941
1.88
2.14
1.62
Jan.
1, 1940
2.30
2.58
2.01
Jan.
1, 1939
2.78
3.33
2,24
1, 1938
2.98
3.42
2.55
Jan.
.38
(Special
lower
110
high
iSpread
grade
grade
grade
data
'
•••
1
OHIO.—Fred
Finley
&
Building.
.57
Co.,
Union
Mr.
Greiner
Commerce
was
viously
with
Cleveland
Company for many years.
1.09
.87
.
pre¬
Trust
(Special
to The Financial
Chronicle)
CLEVELAND, OHIO —Mark E.
grade
and
lower
'
"
by
J.
A.
White
Cincinnati,
of
Mirsky
has rejoined the staff of
Livingston, Williams & Co., Inc.,
Hanna
Building.
*
Joseph & Feiss Co.
Wellman
National Screw &
*:■!
I'
OHIO
SECURITIES
We Buy
Engineering Co.
Cleve. Builders
Perfection Stove Co.
3-5
Valley Mould & Iron Co.
■
'
Common
.
Tele. CV 174
Merrill, Turben & Co.
CINCINNATI
CLEVELAND
Tel.
Main
6800
14, OHIO
COMMERCE
Request
Cleveland
Stock
594
J. A. White & Co.
14
Exchange
'
■
-
Teletype CV 67
Teletype
29
BROADWAY
Divisions & Maturities
Euclid, Ohio
2-5% Bonds of 1968
.
CV
South
For Our Own Account
'•
Teletype
.unio
of. 1966
.
Union
Members
Bonds
Consumers Public Power Dist.
BUILDING
CLEVELAND
Union Commerce Bldg.
Union Cent. Bldg.
Tele. CI 150
UNION
Investment Securities
%
Nebraska All
■
INCORPORATED
Union Com. Bldg.
CLEVELAND
on
Brooklyn*
Supply Co.
Common
1
WM. J. MERICKA & CO.
to. Richards & Co.
Circulars
Common
Manufacturing Co.
NEW
YORK
6
CI
163
Central Bldg.
|
.
KLINE, LYNCH & CO. Inc.
CAREW
Cincinnati 2, Ohio
;
J.
20 bonds.
high
\.
,
.52
bonds.
compiled
Carl
Greiner has become affiliated with
bonds.
betwen
bonds.
-Above
—
to The Financial Chronicle)
CLEVELAND,
'
'Composite Index for
OHIO.
connected with Clair
Co., Union Trust Build¬
Mr. Biltz was formerly with
,38
:
'
110
now
Dominick & Dominick.
.37
15,
Jan.
ing.
-,'.35
Aug. 18,
CINCINNATI,
Biltz is
S. Hall &
.35
,
Co.; Harry T.
Co.
elect
Robert
Cleveland office.
Becker, of Field, Richards
& Co.; Clair S.
Hall, Jr., of Clair
S. Hall & Co.; John G. Heimerdinger, of Walter Woody & Heimerdinger; Thomas J. Hughes, of
&
Treasurer, and
10
Fred H.
H.
and
(■Special to The Financial Chronicle)
following ten trustees
Joseph
A. H, Richards and
Hamilton Wilson, Vice-Presidents;
Russell H. Olderman, Vice-Presi¬
of
refinery, 269 wells, 768 miles
pipeline, undeveloped oil leases
were
and
Reamy E. Field, President, and
H.
Richards, Vice-President
and Secretary of Field, Richards
& Co., make their headquarters
the
Oliver
serve
Cleveland
the wholesale grocery business
William Edwards & ,Co.
Orleans.
elected to
First
in
in Cincinnati.
■
the
&
month
Common
to
of
of
assuming that posi¬
1934.
He resigned from
that position to devote full time
tion
the
Goshia, of Collin
Co., of Toledo; James
Russell, of Gillis, Russell & Co.-,
of Cleveland, and Wallace
"Izzy"
Kingsbury, of Kingsbury & Alvis,
Cohle
M. A. Hanna Co.
the company's
property.
The one involved sale
held
Humphrey, of C. J. Devine & Co.;
sale of Cleve- Robert A. Jameson, of Pohl & Co.;
Fred F. Latscha, of Eustis &
Co.;
Leo J. Nussloch, of W. E. Fox &
Co.; Lloyd W, Shepler, of Merrill
Lynch, Pierce Fenner & Beane
Cleveland Trust Co.
9-2432
&
board
Corporation,
den.
Out-of-town guests pres¬
were
Norton
of
war.
months of
1943 a total amount of $5,134,683
par value of Ohios will have been
sold at public sale. Of this amount,
During
Hickok Oil
Stock
new
Volume of Ohios During 1943
Tele. TO 190
1943,
page
the
Refining Co. stock¬
holders approved two proposals to
dispose of more than $6,000,000 of
City, headed by Howard A; Cow-
torate at that time toward
vote such
Tele. CI 68 & 274
Exchange
be
CINCINNATI, OHIO.—The Cin¬
what
The
Cleveland ~Stock
on
of
.
National
submitted
ing additional tax levies for
after the
.
should
war
volume
I.-
Ohios
new
12.5%,
vote them in wholesale volume
.
the
of
Undoubtedly
will
difficult
bonds.
Stock Exchange
York Curb
Dixie
the
were
will be the attitude of the elec¬
W. D. Gradison & Co.
New
volume
after
twice
year
§6,384,600
the
to the voters after the war, and
Gibson Hotel L. T. C.
Bonds, Pfd.
If
sold
submitted to the voters in Ohio,
were
U. S. Printing: Co., Com. & Pfd.
Income
1942,
Common Stocks
Co.,
During the entire
proval.
of
Co., Com. & Pfd.
Carey
§735,000
the
9.5% received the necessary ap¬
Giobe-Wernicke Co.
Gruen Watch
only
to
Telephone
Parkway
TOWER
CINCINNATI
7340
MAIN
1804
2,
OHIO
TELE.
CI
140
Volume 158
Number 4240
-
THE COMMERCIAL & FINANCIAL CHRONICLE
,
changed. In thosp circumstances,
the TrCashry wilt-permit the tax¬
payer "to 'assume that 'the change
Investors, Corporations And Our
(Continued from first page)
enviable position indeed;
have a suspicion, of
a
good hunch, that
that proportion of
If you
it and
or all of
even
some
earnings will
become distributable
that way,
in
$50,000 to approximately $400,000,
and instead of paying an Excess
'does not have that information or Profits Tax on $350,000 out of that
hunch, arjd is totally blind on that $400,000, it will pay only a normal
tax. The saving will be somewhere
subject
The provisions of Section 722 of in the neighborhood of half of the
Internal
those
Revenue
Code
are
ADVERTISEMENT
Metals
(gold & silver)......... 191
mining
82
Metal
Metals
(non-ferrous)
99
had .been made two years earlier
Mill
than, was,,:
actually! the- case, and
will
permit .'it
to" reconstruct
Mining
Miscellaneous
profits to what they would have
Motion pictures & amusements
been under that assumed
Movie
state of
products
quanymg
Misceuaneous macmnery
services
.....
just
may be
such
a
Normal earnings
In fact,
amount of that increase.
the savings
because .it
is. a member
of
a
de¬
pressed industry, we have an en¬
tirely different set-up. Some in¬
dustries are depressed for a long
period of years. The machine tool
industry,
for
money
chiefly
construction.
may
under the law in
are measured
one
of two ways.
A
corporation has a free choice.
Either a stated percentage of in¬
vested capital represents normal
earnings — and that percentage
varies
with
the
of
amount
in¬
vested
capital—or normal earn¬
ings are represented by 95% of
earnings during a period deemed
by Congress to be normal.
The period of time, 1936, 1937,
1938 and 1939, generally speaking,
was
considered normal.
1936
available
taxation
tion of
a
after
stockholders
for
as
the effective prosecu¬
claim for relief.
-
Therefore, it is .your first job
in looking for relief situations to
■
see
whether
the corpora¬
not
or
tion in question is; entitled to re¬
lief.
For example, one stock ex¬
change house recently circulated
some material on a canning com¬
pany.
The Senate Finance Com¬
mittee
Report
this section of
on
was
the Jaw indicated that
one
fairly normal; 1937 was above
normal; 1938 below normal, and
1939 the closest to the average of
thefour
years;
and
Congress
stated that presumptively earn¬
ings above the average earnings
of this base period are earnings
fields where it would
apply was
attributable
the
to
inflation
war
and subject
a
90%
of the
the
canning industry,
because
earnings in that field are rarely
normal.
They
crop condition.
according
vary
to
In
estimating the prospects of
the canning company, it certainly
would be sound to communicate
'to recapture through with the
officers, the attorneys,
Of course, I have to and
the accountants for that can¬
generalities.
I cannot ning
c o m p a n y,
to
ascertain
tax.
speak in
give the 50
exceptions
to
every
rule, but I will speak in terms of
broad outlines.
whether
a
claim for relief
ing prosecuted,
and
what the chances of
"Suppose you,have
to
was
be¬
ascertain
success
might
corporation be and. how much might be in¬
that has relatively small invested
volved.
If a claim for relief was
capital, where earnings are due
allowed, earnings might double or
largely to the aptitude of and the triple or be even more than
that,
work done by the officers and the
depending upon the circumstances
personnel of the corporation, and of the case entirely.
Y
suppose, too, that you have a sit¬
I have just stated that relief may
uation where during that base
be granted where earnings in the
period, 1936 through 1939, there
base
was
a
interference with
some
tha/t normal earn¬
Such a
corporation will find itself in a
very bad situation.
;
For example, suppose we have
a
corporation which is in the
business of food distribution, and
ings
not realized,
were
commenced
it
business
in
1936.
Its invested capital is very small
in relation to its
a
as
wholesaler,
it is not
earnings^ it acts
will say, and
we
manufacturer..
a
A
period
nor¬
mal earnings, so
con¬
in).
50
(s)
(s)
(n)
(n)
(n)
example,
makes
during years of
Other
industries,
Paper &
products.......
products...,,,.,
metal products
were
ticularly, what
not normal. Par¬
are
the abnormali¬
ties which the law will recognize?
They fall into two entirley differ¬
that not
of those good years
one
(1
(n,
Precious
68
(n)
63
(s,
Railroad
equipment
41
Railroads (class I),V.i
8
Real estate
i."
5
Restaurants .1
23
Retail trade, general chains, &
(s
miscellaneous
Retail trade—groceries.,,.,.,.,
(s)
(s)
happened during 1936, 1937, 1938
or 1939.
Also, as in the canning
industry, there might have been a
bad .drought, or other conditions
interfering with earnings; or there
might have been a price war
peculiar to that industry. In those
circumstances, if it can be demon¬
strated what the earnings would
h§ve been if those abnormal in¬
had
conditions
dustrial
not
oc¬
I
be granted.
Tobacco
some,
industries
tain
(see
table).u The
average industry, speaking in the
broadest general
terms, :■ earned
75% as much in the base period of
1936 through 1939 as it did in the
years 1927 through 1930. For ex¬
ample, the automobile and truck¬
ing business made 76%
if
much,
as
take certain selective repre¬
we
sentative
and
concerns
compare
Wood
66
However,
55
70
47
which
you
are
less than 75%
period
be
it
as
sure
to
advisers
and
see
find
a
corporation in
interested made
much in the base
as
did from 1927 to 1930,
get in touch with' the
tax
cuting
a
;
that
of
corporation
whether
they are prose¬
claim for relief. You may
that
they are, and that they
may
largely increase the cor¬
poration's earnings.. You may find,
that they are not prosecuting; in
that event,
they may be very
grateful if you call their attention
to some of the foregoing interest¬
75
telegraph
100
(s)
105
(n)
68. (s
95
(s')
82
(n
90
(n
products—miscellaneous.
The
foregoing statistics shoulc
exclusively for purposes
indicating lines of further in¬
be
used
of
quiry,
In
some cases,
specific sta¬
particularly- since
of
classification.
and
the
effective-
data, frequently depend'
exact choice of industrial
For example, "Silk
Rayon" will give results
very
different from just "Rayon."
The
"(n)"
symbol
indicates
foregoing statistics
the basis of
on
a
that
the
selected
were
national group
of
Organizations, Whereas the symbol
"(s)" indicates that a more selec¬
tive choice was deemed more ac¬
curate in the
lar
of that particu¬
Fractions of a per¬
case
industry,
cent have
A
classes:
,
You prove your
industrial
of to¬
average
of
•,
period.
If
-
•
on
the
the bottle. But there
are
whiskey
on
will find it
you
people who don't know just
many
exactly what whiskey proof means.
The
explanation is quite' simple. It
a little, quick mental
requires only
arithmetic.
The easiest way to
that "proof"
say
cent
explain it is to
double per¬
label tells
means
alcohol, i.e.: when
a
that the bottle's contents is 100
proof, it means 50% alcohol, by vol¬
you
ume; 90
and 86
proof, then, would mean 45%;
proof means that the whiskey
contains 43
There is
lower
% alcohol, by volume.
definite trend to lighter,
a
proof alcoholic beverages, both
in this country and in
the British
Empire, and this trend to lightness
is not confined
People
they
seem
wear
entirely to whiskey.
to go infor lighter food;
lighter clothing (remem¬
yesteryear?),
ber the red flannels of
and they
smoke lighter, blended
cigarettes. And the
day
cars we
lighter, and
are
drive to¬
so are our
rail¬
road trains and coaches, due to
old, heavy iron.
earnings
in 19361939 was 75% to 80% of earnings
in 1927-1930.
If a given industry
in
the
base
periqd, 1936-1939,
showed earnings less than 75% as
great as the average of 1927-1930,
further inquiry should be made so
that it may be definitely ascer¬
tained whether the industry in
question was a depressed or ab¬
normal industry during the base
.
pudding by eating
it, but if you want to know the proof
lighter alloys (blends) in place of the
been eliminated.
rough general
.
And I think you should know, too,
that there is
a
.
relation between
no
proof and quality in
an
alcoholic
beverage. Proof tells you how strong
the
whiskey is in alcoholic content
by volume, but quality is more
less
a
alone
are
the sole judge.
inspired this piece
the chuckle
who
or
personal matter of which you
What really
was
given corporation showed
(1)
Abnormalities
earnings in 1936-1939 which were
peculiar to the taxpayer, to the
proportionately less than its 19271930 earnings in contrast to the
corporation itself, and (2) abnor¬
malities peculiar to the industry
relationship of industry in gen¬
ing
data.
of which it is a part.
eral, or of the particular industry
For example, a bad strike situa¬ THE SIMONS NORMAL EARNINGS TABLE of which it was a part, then in¬
Percentages which 1936-1939
dividual grounds of relief peculiar
tion during the base period, with
;
Earnings are. of 1927-1930 Earnings
to that corporation probably exist.
one
strike after another, would
Y
•'' ' Y
' ''
f'°
'■
For
cause
an
abnormal interference Advertising, printing & pubexample,
railroading
was
7
;
with earnings; fires or floods or
lishing
.7
<,
;
34
(s) definitely a depressed industry in
,
87
(s) the base period since its earnings
other physical catastrophes are Agricultural machinery
Asphalt & cement.
40
(s)
were
abnormalities which are recog¬ Auto parts & accessories
only 8% of its 1927-1930
62
(si
nized;
recognized
also
is" any Autos & trucks............... 76 (s) earnings. However, in the case of
Baking products & flour..,,,..
54
(s) cigarettes or cigarette tobacco, the
peculiar economic, condition. For
Beverages (alcoholic & soft),,. 194
(s)
percentage is 89%. This does not
example, suppose a corporation Bituminous coal
78 (n)
show a depressed industry. But, if
sold its product exclusively to the Building equipment, supplies,
& construction yy..,.,.....
69
(s)
Ford Motor Company, and in 1937
a given cigarette or tobacco cor¬
ent
Proof
tistical research will be necessary,
period 1927
tal
' \---'\Y
if
(n)
(s)
(s)
(n)
(s)
(s)
(n;
56
47
Woolen & worsted goods.,,....
with.that boom
through 1930.
&
NEW YORK
label
51
Utilities—holding companies.,
Utilities—operating companies.
their earnings during the base pe¬
riod
(s';
93
products
upon an
going to give you now
approximate figures of cer¬
am,
(s;
...
ness
curred, relief will
(s^
.
Sugar
Telephone
SCHENLEY DISTILLERS CORP.,
ui
89
Radio
will be of interest to our fellow Americans.
This is number twelve of a series.
(a,
(11 ■
76
paper
oil
NOTE—From time to time, in this space,
there will
appear ah article which we hope
(&,
Petroleum
...
;
(n)
99
......106
........
producers
(s)
(n)
82
95
124
•.
&
be a great deal
such as the railroad industry, suf¬ Rubber
products, tires, tubes,
larger because there will be a
startling result
accom¬
etc.
plished. In 1940 the Excess Profits carry-over from prior years, and fered/peculiarly; during the base Shipping &
shipbuilding...,.,
period.
Then,
too,
some
indus¬
Tax went on the books,, which, as in future years there will be like
Shoes
tries have sporadic profits. When Silk &
I said, is a tax upon earnings in savings.
rayon goods...
So you can see that
Soaps, vegetable oils, etc..,....
excess over normal earnings.
nothing will have as much in? profits are very good in, say, just Steel Ss
iron....,,..
one year out of ten..
It may be
fluence on the amount of money
which
under
(s)
(n)
Movie theatres
..126
mally have made, let us say, $400,- facts.
Y.
Office equipment, etc
78
OOu a year before the war under
Oil producing &
refining
104
Now,
passing
from
the
abnor¬
normal
circumstances,
then its
Other amusements
110
malities peculiar to the taxpayer Other rubber
Excess Profits Tax credit will be.
goods.,
131
to those; suffered by the taxpayer Packing house products.......
80
increased.
from
approximately
you will probably have an edge
Over the customers' broker who
the
2533
got from a friend
we
thought that 100 proof meant
100%, which, of course, it doesn't.
He remembered his
when lie
was a
marked his paper
all the words
spelling tests
schoolboy, His teacher
100% when he had
right; and if he missed a
couple he got 90%
or
85%, which was
pretty good, but it wasn't perfect,
-
that
like
cern
come
can
to
the
.
.
of ruin, because of the Ex¬
Profits Tax, since most of its
verge
cess
.
.
.
.
.,
..
.
...........
:
..
Also,
were
suppose normal
not realized during
period,
because
the
earnings
the basev
corporation
but. a.large portion of commenped business, during or
•those earnings will be a\result of'• shortly before that period.
Then,
the abnormality suffered by the too, relief would be granted, be¬
.of the'war,
(n)
(s)
,..
55
95
(s)
(n)
.....
110
66
(s)
pace to
58
(s)
whiskey might make your taste buds
corporation before the war. Now,
that is just where Section 722
comes in.
That corporation is go¬
ing to be taxed at a
90% rate on
everything that it makes over ap¬
proximately $50,000.
is
80%
an
.
over-all
but on this
tion,
True, there
limita¬
naturally earnings cannot
be expected to be normal imme¬
diately after the commencement
cause
of business.
occasion I am too,
relief would be available. For
to
and
situation.
If
the
that
corporation can "satisfy
Treasury that
1939
completely
its
management
revamped,
and
it would .nor¬ merchandising, system
..............
was
its
was
58
(s)
(n)
.
1........:.
..
.
..
..,,
Harware, tools, etc...,...
Hosiery & miscellaneous knit
goods
.......a
,......
Household
furnishings
........
72
99
(n)
94
(n
...
(s
92
(n
(s
68
63
70
(n)
64
69
(s)
(s)
(s)
(n)
88
(n)
86
70
ment
Meat
74
order
;........
packing
Medicines,
Metal
drugs, &
building
cosmetics."
materials
..
153
42
61
(n)
(s)
(s)
(s)
(s)
(s)
&
sorvolies
Metal fabricators
(n)
products,.
Leather, tanning, etc.75
Machinery & machine equip¬
Mail
(s)
258
109
etc
(s)
127
.
products—
bakery & confectionery...;..
Food
products—miscellaneous.
Forest products, saw mill prod¬
Or, if there were a Industrial chemicals
complete change in the method of Instruments, canoes,
production, in the method of sell¬ Knit goods
leather
ing, or in the management, there, Leather,'
boots, shoes, etc...
disregard it.
Even an instance, one very large chain
80% tax means precious little by store, a competitor of Woolworth,
is seeking relief, because in 1938
way of reserve for the post-war
going
;... v;.
etc.; ..,....;.
want to hasten to
117
89
Electric machinery
Fertilizers
ucts,
we
92
.>
........
Finance• companies
Food
&
kindred,
controversial,
(s)
(n)
(n)
4
equipment
preceded it, nor those
intended to be
73
106
..
.
Electrical
other which
which will follow, are
(n)
.
of. war,: of the. inflation
which has followed in the wake
,
(n)
..............
tribute
/
137
.
will certainly be an at¬
"proof.")
Since neither this article, nor any
139
,.
.
increase
to
comes
...
earnings today will be excessive.
earnings in the base period
were
naturally very small.
It
just had started in business.
It
had not developed its trade in
Bone products
Ford decided to make the product Business service
1939. Then, too* the retail grocery
itself.
It might take two years Candy, chewing grumi, etc.;.
trade "was depressed during that
for the corporation to replace that Canned products
period of time because of the
Carpets, etc.
y.
blue chip customer; and, there¬
Chemical
&
allied
competition by super-markets and
products,
Chemicals proper
.;...
chain stores, and by the Govern¬ fore, earnings during the base pe¬
riod would hardly be deemed nor¬ Cigarettes & cigarette tobacco..
ment itself, which gave out free
Cigars, manufactured tobaccos,
mal. m In any of those .circum¬
&' growers
food.
•..
If a corporation like that goes stances, where there is a physical Clothing
Containers. {metal & glass)....
or
economic,
interference,
which
from earnings of, let us say, $50,Cotton & cotton goods
was temporary and peculiar to the
000 a year in the base; period. to;
Dairy products •y,yY
taxpayer,
relief
would
Department & apparel stores..
probably
earnings of $1,000,000 at the pres¬
be available.'• '}• ,.•• /;. Domestic service
ent time, some portion of; that
Its
(Don't let that fool you when it
.
.......
poration made only 60% as much
during the base period- as it did
during the period 1927-1930, then
it
would
(n)
60
(s)
that
it
was
not
only below the percentage for its
industry, but also below that for
industry in general, and it is more
than likely that individual abnor¬
malities will be found.
you
that perhaps
the heavier and higher
you
prefer
proof whis¬
kies, and if you do, we won't quarrel
with you.
But, most respectfully,
we
suggest a little trip "off the main line
to
see some new
new
taste
scenery"; make some
explorations. A change of
lighter, lower proof blended
"Boss, that's it!" And, that will.be
Govt.Reterns To
say,
Owners Leather tats
ing to make... the trend's to blends.
Taken Over In Mass.:'
FREE -- Would you like a handsome book¬
"proof," too, of the point
Dec,
13
that President Roosevelt,
by executive order, has restored
to
private
the
13
plants
in
management
leather
and
Salem,
Peabody
tanning
and
*
•
let
The White House announced on
we are
try¬
•
•
containing the first ten articles in this
series? Just write your name
on
the back of a penny
me, care of Schenley
350
and address
postal and send it to
Distillers Corporation,
Fifth Avenue, New York I, N. Y.
for the asking.
It's yours
MARK MERIT
Danvers,
of
Schenley Distillers Corp.
Mass., which had been taken over
the
by the War Department on Nov.
to
24 because of labor trouble.
has been restored."
Roosevelt's
"that
108
seem
assure
the
order
said
productive
he
Mr.
found
efficiency
The
taking
seizure
reported
in
of the said nlants prevailing prior 'page 2300.
possession thereof
of
our
the
plants
was
issue of Dec.
6,
! V
THE COMMERCIAL & FINANCIAL; CHRONICLE
2534
1943
combined
The Present Position 01 Railroads
Sakolski Answers Brownell
burden
of
taxes
and
interest
charges assumes consid¬
erable importance. * Although in->
_
terest charges were reduced by
(Continued from page 2526)
$37 million during this period, tax
The"' first /factor of significance
total fixed charges in. 1942 were
accruals increased by $92 million?
larger, not smaller than in any in Table I is revealed in the' ton
In 1931 taxes and interest charges >
previous year since 1936. Class I mile and operating revenue fig¬
Editor, Commercial arid Financial Chronicle:
took 23.3% of gross,/ In 1940 they
railroads
made
a
reduction
of ures. The two "years were char¬
With reference to Mr/Francis H. BroWell's remarks, published
totaled 24% of gross;
Thus, any
some
$300 million in their out-* acterized; by godd business activ¬
in your columns on Dec. 3, concerning my article on International
emphasis that might have been :
standing debt; in 1942. Interest in ity. In fact, the Federal Reserve
Bimetallism, which was published im the;"Chronicle" of Oct. 28, I that
placed during this period on re¬
year
totaled $530 millions Index of durable manufactures
shall confine myself to answering two-of Mr, Brownell's statements.
duction in debt and fixed charges
against $481 millions in the pre¬ averaged, 139 in 1940 in contrast
Mr. Brownell states substantially that the prices of gold and
Would
have been misleading, sincq
vious year. The reduction in out¬ to a figure of 132 in 1929. Rail¬
silver will not
the; tax
burden,
another
fix
standing
debt
was large, but the road revenue-ton miles, that is,
to be a standard coin.
But it
diverge from
resulting savings were more than units of work done, declined, by charge, was becoming much greatdisappeared from circulation be¬
:the fixed mint
er.
The trend has been even more
offset by new interest charges. In 16.6%; Gross revenues - showed a.
cause it was worth more as a coin
•ratios if "the
pronounced since 1940, * although
any case it does not appear that much greater percentage decline;
than
as
an
irredeemable
bank
.several im¬
the very -abnormal rise in both
the
savings
on
interest
Costs The carriers, therefore, failed to
note, There was, accordingly, "a
portant na¬
Would justify the great emphasis keep pace with the increase in gross revenues and taxes distorts,
premium
cm
gold,"
and'this
pre¬
the ratio. Since a number of rail¬
tions,
espe¬
durable manufactures; and they
mium varied from time to time placed upon this aspect of the
roads have exhausted their excess
cially the Un¬
railroad situation by the invest¬ received less money for each unit
as happened during our own Civil
ited States and
of work performed in 1940 than pfofits credit carryover, tax pay?
ment fraternity;
War.
the B r i ti s h
./-.v.,
ments
in
1943
are
materially!
It
can
be
shown
that
the was the case iiv 1929.
Some
British
statesmen,
and
Empire, should
larger,
The fact that since 1935
fundamental weaknesses
of the
Turning next to. net operating
apply to silver
particularly the Bank of England
railway tax accruals have reflect¬
railroads
of
the .country
have revenue;. the remarkable achieve-; ed social
directors who were profiting from
the same prin¬
security levies does not
little to do • with debt or; debt ment of railroads in keeping op¬
the
alter the situation.
situation,
ascribed
the
pre¬
Prior to the
ciple that has
burden. The
railroads 'have
at erating expenses in line with rev¬
mium to an increased demand for
been
applied
railway
employee
pension
act
least two basis problems to con¬ enues is steadily apparent. Des¬
to gold, i. e.,
most of the roads had. their own
gold. A parliamentary committee,
tend with, neither of which has pite. a drop of two billion dollars
buying all sil¬
appointed to investigate the situa¬
pension plans, the cost of Which
been or is being solved fat the in " gross, the-same ratio of 28%
ver offered at
tion, issued the most -important
represented an operating expense.
present time. These are: (1) they (of gross) was maintained for To the extent that
a
fixed price
document in monetary history—
railway tax ac¬
net operating
are, tied inextricably to the durrevenues • in both
to
be
the so-called "Bullion Report." In
cruals have been increased on ac¬
agreed
able goods industries. Hence, they 1929 and
1940. This is explicit
A. M. Sakolski
this document it was pointed out
count of this item, operating ex¬
[upon
and,
are subject;to pronounced cycles
evidence of railroad managerial
what is equal¬
that "in the sound and natural
penses should correspondingly be
of depression and prosperity to efficiency in operations. The re-'
less.
There is a constant struggle
ly- important, selling whatever is state of the British currency, the
which no quick pr smooth ad¬ suits; were achieved in part by
foundation of which is gold, no
to keep costs in line while taxes
required, at the same price "
justment
has
as yet* been pos¬ drastic; cuts in maintenance ex¬
/ Now, it is obvious that when increased demand for gold Lorn sible.
go upward.
The bag must con¬
(2) Over a long period of penditures which are geared very
'anything is bought or sold, some¬ other parts of the world, however
stantly be replenished either by
years they have been unmerci¬ closely to the fluctuations of gross
thing else must be paid for it es¬ great or from whatever cause
higher gross revenues or' lower
revenues.
But perhaps no other
sentially different from what is arising, can have the effect of pro¬ fully; squeezed .by rising costs.
operating costs in order to keep
These costs have increased faster single item is more spectacular
given
or
received.
If gold
is ducing here, for a considerable
pace; with
the leak going on
than gross revenues. The result than that of compensation paid
bought, silver is to be paid for it, period, a material rise in the price
through the tax hole.
That hole
has been that railroad net income
employees. Railroads in 1940 paid can't plugged or narrowed. When
or
vice versa.
If a government of gold." And, then the Committee
employees
$932
million
remaining after .all charges has their
it gets larger the only thing to do
'agrees to buy gold with silver, at continued: "gold being our meas¬
narrowed considerably. Railroad dollars less than in 1929, even
■a
fixed ratio, and gold should ure of prices, a commodity is said
is to keep pouring more in to com¬
credit has been destroyed as; the though wage rates were materi¬
.happen to become more valuable to be dear or cheap according as
pensate for the outflow.
This is
ally
margin
of
safety
has
all
but
dis¬
higher
in
1940;
Since
com¬
.than silver, how long would it be more or less gold is given in ex¬
a rear-guard action and savings in
appeared. It has been impossible, pensation to employees consti¬
before
such, government would change for a given quantity of the
interest costs through debt reduc¬
for
the carriers to tutes the largest single item of
find itself drained of all its gold? commodity. But a given quantity moreover,
tion helps the process of defense!
build up a sufficient cushion of expense
(42.6% and ,43.2%
of
'Such a government would be in of gold itself will never be ex¬
The emphasis of late, however,
protection
in
the
peak
years
of
gross
revenues
in
1929
and
1940
the same position as a bank which changed
has been put on the latter as if
for a greater or less
the industrial cycle,
respectively),
the.
economies
;
f
has outstanding notes payable in quantity
of gold of the same
payments to creditors for money
There
is
little
questionthat brought about a ten-year period lent is an evil that must be dis¬
gold, to an amount, let us say, ten standard fineness."
/ - ;
have been responsible for the ex¬
during
the
present
period
of
times the gold it has on hand,
These
statements have
never
The owner of the
cellent "rear-guard" action of the pensed with.
when the note holders demand im¬ been refuted. When the Bank of greatly expanded industrial pro¬
property meanwhile must not get
For,
important
and
duction when gross revenues have railroads.
mediately the redemption of- their England bought gold, during the
a return on his holding until the
swollen to record highs railroads; necessary as these savings "have
notes in gold. It would just have
debt is paid off.
All of which is
period of the gold standard, it
have been in better f position to been, they have only been in line
to close up, that's all!
by way of saying that the house
rarely paid above ' the mint price
with the loss in revenues.
improve
their
financial
condition.
Perhaps Mr. Brownell has in because it paid for the gold in* its
owner may not live in his home
Interest"'charges were reduced until the
mind the payment for eithef metal own'
But, as always, such unusual cir¬
mortgage is paid off!
notes, Which'5 Were Redeem¬
cumstances tend to generate too over the ''1929-1940 period.; But it
3n .a currency redeemable partly
As in the. case with industrial
able in gold. Thus the-seller of
much confidence or dispel well- is clearly evident that, relative
in gold and partly in silver. This
•firms
it
the gold could immediately' take
may be said that the war¬
founded fears and lull the unwary to operating expenses, the change
has been called symmetallism or the
time burden of taxes will be eased
notes to the bullion depart¬
into a false sense of security. The in debt burden for all Class I
(as the late Isaac Phelps Stokes ment of the bank and
when
hostilities
end.
But,; the
get back
railroads have exercised a conserva¬ railroads is minor. Tax accruals
called it), joint-metallism.
fact remains that it is only during
essentially what he sold,
it was
in
tive
financial
1940 were almost exactly the
But even this would not change
policy in the past sev¬
periods
of
high
cyclical
produc¬
only during the periods of distress
eral years and used the golden same even though the carriers
.the situation if the jnarket ratios
tion that railroads can build up;
{hat the bank would offer a slight
had
a
reduction
in
.of the two metals diverge sub¬
gross revenues to a
opportunity created by the exig¬
significant degree, their re¬
premium,
just
as
during
the
stantially from the mint ratio, money panic of 1907 the banks of encies of war to remove them¬ of 31%. This does not at first serves. The draining off of "ex¬
selves from a precarious financial sight appear to be very startling,
cess" earning power by high; tax
(The government under such a New York paid depositors, a pre¬
situation, if it persisted in main¬ mium (credited to their deposit position. But, the latter condition Yet; tax " accruals represent one rates puts a heavy penalty on
was corollary to the basic prob¬
important
item
of
expense
over
taining the mint ratio, would be accounts) on
the capital goods industries to
deposits of actual lems that have
which the railroads have no con¬
drained of the "over valued" metal,
plagued them, which railroads as has been shown
cash, In normal times, whenever
trol.
For
all
as
practical
purposes
long as private individuals
These two points bear further
are
closely. tied.
Furthermore,gold Was needed by the bank, it
would make a profit by the ex¬
even
though unprece¬ taxes are to a large degree fixed there is a very important signifi?
could more readily obtain it by scrutiny,
dented
change transaction. Of course, if
war
demands
for
rail¬ charges. The burden of this type
cance in the fact that the prices
raising its discount rate. S
the currency, is made irredeemable
road services have resulted in all- of fixed charges has become pro¬ for railroad service in the form of
My next point of attack is Mr.
heavier
since
1929 rates are fixed by Government
(as our own is today), except at
time peaks in both gross revenues gressively
Brownell's reference to the suc¬
the. will of the government, the
and net income. The accompany¬ While there has been a serious regulation and are comparatively
cess of the Latin
Monetary Union.
erosion in railroad gross revenues.
matter is altered, because in that
ing chart depicts the Federal Re¬
inflexible. Hence, it is not an easy
In this connection let me refer to
•case
there would not be a bithe emphasis being matter to make adjustment in
serve
Board
Index of Durable Therefore,
the conclusions of the late Prof.
metallism or any other standard.
Manufactures and Revenue Ton placed on reduction of debt and rates to compensate for higher tax
Henry Barker Willis, who pub¬
;
Miles of Freight Hauled by Class - fixed charges at the present time levies.
Mr. Brownell supports his argu¬
Such a process is always
lished
a
history of the Latin I Railroads. It shows
should
apply,;with far greater slow and never certain. The prob¬
ment that a pation can maintain
emphatically
American Union in 1901, before its
force
to
another
type of fixed lem is intensified further by the
a parity between
gold and silver final dissolution. Professor Willis' the highly cyclical nature of the
railroad business. The patterns of chargetaxes — that is increas¬ factor of
by referring to the fact that, fol¬ contention is that the Union
competition .from other
was
ing
at
a
much
greater
rate.
ton miles and durable manufac¬
forms of transportation which .in/
lowing the re-establishment of the held
together only because
tures, are very similar. Next let
In Table II. the two items, tax
gold standard in Great Britain
general precludes the possibility
France, in her struggle to main¬ us make a
after the Napoleonic war, the Brit¬
comparison of certain accruals and total interest charges of making any important upward
tain the value of her silver re¬
ish Government "fixed 113 grains
pertinent figures for ' the years expressed in percentages of gross revision in rates to offset in¬
serves, "held the bag" for the other
1929 and ,1940. The latter year is revenues,
of gold to the sovereign, but did
are
shown for each creased tax costs, for example.
members of the Union.
taken for the reason that it was year from 1929. Of course this
nothing about the current market
Turning again to Table I the
"It is not difficult to predict the a
ratio
isaffected
not
good
peace-time
only by last
year; it was the
price of gold, which continued to
item, the net income figure;
fate
of
the
Latin
Monetary best -year in terms of railroad changes in the items themselves,
vary up and down with supply
shows serious deterioration from
and demand;" But what does Mr. Union," Professor Willis states in gross revenues of any since 1930 but also by the variations in gross
1929 to 1940. Net income is what
his concluding paragraphs.
"In and there were no important dis¬ revenues. But, if we compare the
Brownell mean by "fixing the
remains for the stockholder, what
case of
liquidation,
France
would torting influences created: by the two years 1931 and '1940, when
price of gold"? The British Gov¬
may be used for reinvestment in
be obliged to demand from Bel¬
ernment did not fix the price of
European war. The comparison there was a difference of less the business and what;is
gium the redemption of at least follows: •
required
•
;
than '3% in gross revenues, the
gold! It merely stated that the
to maintain or improve credit po¬
On International Bimetallism
*
.
.
.
.
.
.
-
.
,
,
.
,
.
..
250 million francs in silver five-
TABLE
sovereign
would
contain
113
franc pieces; from Italy 270 mil¬
grains of gold. In other words,
113^ grains of gold could be ex¬ lions, from
Greece 14 million.
changed for a sovereign which None of these countries are in
,
contained
the
same
amount
of
gold.
'
Ton
Miles*
I—CLASS I RAILROADS
Brownell neglects to state
was not until 1821 that the
Bank of England resumed
specie
payments, and that for a quarter
of a century prior thereto Great
Britain
was
on
a
paper
currency
'
'
•
.
Revenue
net
income
Was
million less than in 1929.
Thus, even though the railroads
$708
.
Tax Ac-
Net
did
their
in line
the fact
$2 billion less in
The Latin Union as an experi¬ Change..— —74.1
--566
58
0
—0.3
—708
—1,982
742 V
932
31.5
~i32.0
0
—8.4
0
—78.9 revenues meant $708 million less
—36.1
—32.2
Change (/c
—16.6
ment in
international monetary
in net income. The problem clear¬
^Billions.
action has proved a failure. Its
ly was not centered around the
burden of interest charges, but on
history serves merely to throw
the loss in gross revenue and a
some
light upon the difficulties common. From whatever point of volved."
("History of The Latin
continuing squeeze between what
which are likely to be encoun¬ view the Latin Union is studied,
Monetary Union," p. 267.)
comes in as revenue and what is
condition to redeem such
sums
$
1929—-
447.3
$6,279
$1,773
1940
373.2
4,297
1,207
...
—
Income
Gross
tenance
ployees
Chgs.
cruals
28.3ft
$2,058
$2,896
$693
$396.7
$897
1,316
1,964
635
396.4
189
28.1
—
with
cut
reduced
remains
expenses
revenues,
that
—
—
!basis, although the gold pound (as
tered in any international attempt it will be seen that it has resulted
A. M. SAKOLSKI.
was the case of the dollar during
our Greenback period) continued
to regulate monetary systems in only in loss to the countries in¬ New York City, Dec. 4, 1943.
In 1940
sition.
(All Figures.' Except^Percentages, Are in Millions)
Gross
Net Oper. Rev.
■
Paid
Int.
ft'of
Mainto EmOperating
—
Mr.
that it
;
-Revenue
retained
kbeen
no
as
net income.* There has
important change in this
Volume
158
the commercial & financial chronicle
Number 4240
values
Royal Bank of Scotland
Incorporated by Royal Charter 1727
strated
throughout
emphatic man¬
Of
they do form the back¬
"
1
INDEX
Manufactures
Durable
3
OFFICES:
Bishopsgate, E. C. 2
8 West
49
Smithfield, E. C. 1
long time. But putting the stress
almost entirely on earning power
1929—.
ASSETS:
of
Associated Banks:
Bank,
1932
by
has
exceeded
by
Glyn Mills & Co.
railroads
have
dle
increased
this
132
119
98
96
67
73
77
88
—
1939
—.
1940
.1941
—
1942
York
Wall
NY
41
PRIVATE
54
ST.
5
Boston
Street
WHitehall
10
Australia and New Zealand
is
WIRE
SYSTEM
LOUIS,
LOS
HARTFORD,
BANITOF
NEW SOUTH WALES
Capital
£8,780,000
6,150,000
-
-
Reserve
Fund
Reserve
Liability of Prop.
8,780,000
£23,710,000
Aggregate
Assets
Sept., 1941
30th
£150,939,354
.
ALFRED DAVIDSON, K.B.E.,
General Manager
SIR
Office:
Head
Australasia.
and largest bank In
branches
670
In
all
of
States
With over
Australia,
London,
and
efficient
traders
It
most
the
offers
banking
in
complete
to
service
investors,
in
interested
travellers
and
thess
countries.
OFFICES:
LONDON
Threadneedle
29
47
arrangements with Banks
throughout
U.
the
8,
element
The
lacking.
not
be
78
104
1109
116
139
148
201
199
279
demand
must
years
And
decreases.
carried along in
well as. bad years.
193540762
creased
A.
authorities,
well
as
Cairo
Register No.
Cairo
1
the
future
the
past.
AGENCY
LONDON
6
and
7
.
.
.
the
all
Branches
in
principal
Towns
and
C.
E.
William Street,
!-ing
EGYPT
•
in
In
has
recent
have in fact
been
where
the
in
rails
have
So that
a
NATIONAL BANK
of INDIA. LIMITED
Bankers
the
to
Kenya
Office:
Head
In
Government
Colony
and
Uganda
in
for
26, Bishopsgate,
In
India,
Burma,
Ceylon,
Kenya
Subscribed Capital
Paid-Up
Reserve
Capital
Fund
£4,000,000
__£2,000,000
____£2,200,000
Bank conducts every description
banking and exchange business
The
Trusteeships^ and
Of
any
problems
will
be
based
on
the
actions of Governmental
authori¬
ties.
seem
The
record
would
to
undamental
problem
although indicate that they have not gen¬
ibnormally high revenues conceal erally been noted for the exercise
he true nature of things. Even at of good judgment, and foresight
he
with respect to the over-all prob¬
t
lems of
present time there is pending
prospective increase in railroad
vage costs which would represent
in important increase in expenses,
rhe effect of such a boost might
)e
considered
little
of
conse¬
at the present time since
expenses
under present
:onditions are in lagre part offset
quence
greater
>y
taxes ,that are not paid.
his is
a
temporary situation while
vage rates are not.
These
considerations
erve
But,
to throw some
light
on
part
the
)ost-war difficulties that the rail-
oads will have to face. The pres:nt
>e
s
approach to them may indeed
considered less optimistic than
currently
larnings and
>rovement
lave
the
style.
a very
in
brought
Higher
material im-
financial
railroad
lar that of the railroads.
1929—_
1932___
in
position
security
transportation, in particu¬
;■
be
from
the-Ex¬
unless
the
pro¬
stock
10%
and
then
fide
of bona
individual holders did not object.
"This
rule
weeks
filed
sion
to
the
delist
upheld
adopted
two
company
had
was
after
and
the
Commis¬
the
company's
con¬
tention that it could not be made
retroactive.
:
of the Exchange's rule de¬
claring that 10% of the security
ness
holders
could
conceivable
hold
fraction of 1%
a
of the
stock
anfd
thus
frustrate
wishes of a big majority.
"Granting
the
the
application
of
the Fuller company, the Commis¬
sion said: "We are loathe to take
in
apparent
Tax
Changes
Accruals
Total
11.0%
6.3%
17.3%
12.9
6.6
19.5
16.0
7.3
23.3
not
21.2
8.8
30.0
or
21.9
8.1
30.0
20.4
7.3
27.7
19.1
6.9
26.0
16.4
7.9
24.3
which
no
such
terms
were
in
in
im¬
posed."
loss
fire
insurance
from
fire
to
and
The
insurance company statements.
protection against
other
several
pay
Commission held it would
?
destructive
such
terms
in
cases
presented under its present rules
and
"without warning."
"The matter is
15.4
7.8
23.2
17.6
9.5
27.1
1939—
15.8
8.9
14.8
9.2
24.0
11.9
10.2
22.1
increasingly
8.7
16.1
24.8
months."
the
an
controversy
outgrowth of
between
change
members
counter
dealers
Ex¬
over-the-
and,
which
bitter
:
—
agencies,
and
——
ate
—-
their
ance
company is
"Bank Stocks
financial sound¬
Hence, in relation to its
obligations, an insurance company
must have
and their
adequate capital funds
Outlook"
and its assets must be well diver¬
sified and
sufficiently liquid.
According to figures compiled
by "The Spectator" for 342 stock
fire
insurance
United
companies
the
diversified
on
as
Members
Dec. 31, 1942,
follows: U. s!
120
assets aggregate only 9.6%.
These
percentages
a
gauge
measure
th$ di¬
serve
against which to
versification
of
individual
com¬
in
of
excess
the
9.6%
noted, it is out of line with the
companies collectively and should
be further investigated in order
ascertain
if there
not be
may
special conditions which might
justify this higher degree of nonliquidity. Collectively, the assets
of
these
liquidity
342
in
companies
of
excess
have
90%,
■
a
;:>
Another check
of
a
company
of liquid
is
on the liquidity
is through the ratio
assets to
This
reserves.
determined
percentage
by calculating the
which
total
bonds,
stocks and cash bear to unearned
premium
serves.
reserves
As
of
and
Dec.
loss
re¬
31, 1942, this
has
in
been
recent
York
Stock
Exchange
Telephone: BArclay 7-8500
Bell
Teletype—NY 1-1248-49
(L. A. Glbbs, Manager Trading Department)
company whose
policyholders'
surplus is less than its unearned
a
premium
reserves.
On Dec. 31,
1942, the aggregate ratio for the
342 companies of capital and sur¬
plus to unearned premium re¬
serves
as
New
BROADWAY, NEW YORK 5, N. Y.
»
Government bonds, 28.8%; other
bonds, 12.5%; stocks, 36.8%; cash,
12.3%; real estate and mortgages,
3.4%; agents' balances and other
assets, 6.2%; total, 100%.
It will
be noted that their liquid assets,
comprising' cash,
Governments
and marketable securities, aggre¬
gate 90.4%, while their non-liquid
Request
on
Laird, Bissell & Meeds
States, their assets at the
close of business
were
in
Circular
was
165%.
Three interest¬
ing examples, by way of compari¬
son,
are
Continental Insurance
with
281.3%,
Home
Insurance
with
102.3%, and Glens Falls In¬
surance
The
with 91.1%.
of a company is
after year by means
of undistributed earnings.
Thus,
it is important to study the earn¬
ings trend of a company and its
dividend
policy.
Earnings
are
from
two
sources,
viz.: invest¬
ments and underwritings.
It is
probably fair to say that most fire
insurance
companies
predicate
surplus
built up year
their dividends
net investment
on
income, thus permitting all un¬
derwriting profits (or losses) to
be credited to the earned surplus
account, as well as a small un¬
distributed portion of net invest¬
ment income'. For example, Con¬
tinental
Co. paid out
totalling $4,000,000 in
1942, against net investment in¬
terest to note that the ratio for
come of $4,374,536 and net under¬
Insurance
Company
of
North
writing profits of $1,458,326. The
America was 257.9%,
compared ratio of total net
operating profits
with 170.8% for Home Insurance.
to dividends is worth watching,
Policyholders', surplus, i.e., cap¬ for, other things being equal, a
ital, surplus and voluntary re¬ company with a high ratio will,
serves, is. another item of signifi¬ show a better equity growth and
cance, particularly in relation to market gain for its stock over a
unearned premium reserves and
period of years than will a com¬
premium volume. The insurance pany with a low ratio.
For ex¬
law requires a company to set up
ample, Hartford Fire Insurance
an
unearned
premium
reserve Co. has had an average ratio of
based
was
for
the
218.16%.
342
com¬
total
premiums collected.
of acquiring new
premium business, however, has
to be met currently, yet the en¬
tire amount of premiums collected
must go into the unearned pre¬
The
on
Insurance
dividends
It is of in¬
(Continued
on page
2545)
expense
reserves.
This
current
Bank of
ex¬
New York
which may approximate as
high as 40% of premiums col¬
lected, is taken from the surplus
account,
which,
if
inadequate
might be seriously depleted. Con¬
sequently, a company which has
a
policyholders'
surplus
(com¬
bined capital, surplus and volun¬
tary
reserves), substantially in
excess
of, or at least equivalent
pense,
depart from its prior decision
impose
insurance companies
companies offer
it is obvious that
prime requisite of an insur¬
the
mium
1938___
24.7
faith
good
reliance upon earlier decisions,
Interest
7008
policyholders,
panies
(
filed
-Per Cent of Gross Revenues;—
some
in the analysis of
stock
liquidity-ratio
;
"Judge Robert E. Healy, memi ber of the Commission, expressed
'substantial doubt as to the fair¬
less than
Enterprise
7008
five or six weeks.?- In view of this, it
of the principal items which should
some
million dollars in claims to
only if less than
of the number
action advocated by the
Exchange
this case. This application was
Class I Railroads
Sin'ce
to
withdrawn
Enterprise
Insurance Stocks
greatly
Manufacturing Co. to de¬
in
TABLE II
be considered
—
Fuller
securities
CHICAGO,
SEATTLE
E. A. VAN DEUSEN
panies. If the proportion of nonliquid assets of a company is
its
BOSTON,
AND
TO
PORTLAND,
Chicago Stock Exchange
recently resisted the move of the
posed request had been approved
by at least 662/3% of outstanding
appear,
important solution of its
parties
Exchange adopted a rule
requiring that securities could not
important indications that the
rion,
Executorships
also undertaken
interested
"The
earn¬
If the past is a crite¬
to
times.
power.
its control.
ordered
the Commission became bitter at
suc¬
have been thrust upon it by con¬
ditions and circumstances beyond
has
change and oral argument before
several fundamental problems in¬
herent in the railroad
industry
Colony and Aden and Zanzibar
Commission
comments, and -criticism.
list
in conclusion,
that the present popular emphasis
on debt reduction
implies sins of
are
the Com¬
that such provi¬
give adequate protec¬
"The
combination of reduced
It would
of
well be,
may
proposals
commission of the past to the ex¬
clusion of other factors. But there
London, E. C.
Branches
ing
Act
study the question of
delistings: Should changes be rec¬
ommended, the Commission will
follow its practice of submitting
involun¬
important erosion of
Exchange
holds,
"The
volume lost to competing agencies
and lower rates has contributed
to the
from
also quote:
its staff to
rail¬
been
New
tion to stockholders.
tarily forced to aid in the digging
of their own graves by paying
taxes which have helped to sub¬
sidize other forms of competition
through highways, waterways and
airways. Moreover, in many cases
cessful
It
sions do not
-
been
years
Securities
1934.
holding traffic it was
necessary to make rate reductions.
SUDAN
the
it
than
the
"World- Telegram"
mission
suppose
roads
CAPITAL t}j £3,000,000
FUND
£3,000,000
FULLY PAID
RESERVE
the
competition. There is nothing
that it will be less in
to
Philadel¬
to
stockholders,
rather
merely by directors as now
required under Section 12-D of
and
.
in
recent
than
have
,;
two
noted
we
Street
7535
ness.
surrounding
company's
Related to this problem is that
of
of EGYPT
State
exchange
"The Commission, it was indi¬
cated, may require that such ap¬
plications be approved by the
volun¬
Federal,
as
registered
which advices
expenditures of Gov¬
as
mounted.
NATIONAL BANK
Commercial
be
consideration
York
standing. Taxes are the inflexible
item, thd major part of which are
not geared to income in normal
cannot
a
phia ajdvices Dec. 13
burden is hot entirely,
all, one of debt. The carry¬
ing charges on fixed plant, it has
already been noted, are far more
than just interest on bonds out¬
These
ties .from
is
was
YORK,
FRANCISCO
and reports of the fire
begin to appear in
seems
timely to discuss
daily called upon
incidents
this
Annual statements
will
monetary
under
f>0U
This Week
amend¬
an
covering applica¬
delisting of securi¬
the
3
Salle
Bank and Insurance Stocks
tions
for
La
FRanklin
NEW
SAN
PROVIDENCE,
ment of its rule
stances
if at
local
Office
The
be
as
disclosure that
by
the
Securities and Exchange Commis¬
sion, as a consequence of circum¬
Plant and facilities can¬
liquidated when the vol¬
of
ume
ernmental
Head
flex¬
of
tarily reduced, but have in more
recent years been materially in¬
Berkeley Square, W. 1
Agency
The
ibility by the nature of things is
times.
E. C.
Street,
otherwise.
burden
Zealand, Fiji, Papua and New Guinea,
and
in short, geared to handle
peak demands that came in
cycles whether induced by war or
good
George Street, SYDNEY
The Bank of New South Wales Is the oldest
New
ties are,
S.
135
122
90
Change
In Delisting Rule
the
1817)
(ESTABLISHED
Paid-Up
CONNECTING:
ANGELES,
Enterprise
108
SEC Considers
considerably larger vol¬
ume of traffic than normally can
be expected.
Its plant and facili¬
Chicago
Square
0650
CG-105
By
to carry a
!)
Office
HUBbard
1-2875
other
words, the "railroad industry
demonstrating that it is built
.Post
3-0782
TELEPHONES
83
V
.
113
,
Huff, Geyer & Hecht
New
67
65
106
1938
In
•
84
—;
1937—
been able to han¬
demand.
117
—■
1936
margin any previous peak or any
prospective normal volume.
The
Ltd,
107
139
1935__
large
a
114
135'
—
1934
Mfg.
134
—
STOCKS
Durable
138
—
1933--
The
Output of goods and services dur¬
ing the present period of war ac¬
tivities
Deacon's
handled
business
—
_V-
1931
railroads may be considered.
£108,171,956
Williams
dis¬
a
*
1930i
has
W, I
volume
TOTAL
is at
—
1928
advantage, and this disadvantage
become
greater
in recent
years. As an example, the present
Burlington Gardens, W. /
64 New Bond Street,
1926_
1927*. A
railroad industry
INSURANCE
F. R. B.
Revenue
Ton-Miles
carry the major part of freight
and
passenger movement1 for a
the
Charing Cross, S. W. !
PRIMARY MARKETS IN
and
=
that railroads will not continue to
LONDON
BOARD
RESERVE
'
Revenue Ton-Miles Hauled by
Class 1 Railways 1935-39
100
transportation. This fact
disputed, nor can pro¬
jections into the future yet show
Scotland
'
t
be
cannot
OFFICE—Edinburgh
Branches
,FEDERAL
respectable
more-
almost
of
bone
HEAD
in
that
ner
to
up
The railroads have demon¬
levels.
to, unearned premium reserves is
in a stronger position to expand
its underwriting business than is
I
'
.
•
•
Bought—Sold—Quoted
Members
and
1
WALL
New
other
ST.
Telephone
York
Stock Exchange
exchanges
leading
NEW YORK 5
Dlgby 4-2525
THE COMMERCIAL & FINANCIAL CHRONICLE
2536
Thursday, December 23, 1943
tinguished the American business we're' trying to attain post-war
(system from any.other- economic .'recovery, to load the system with
system in the world. This oppor¬ | a goal tnat is 24% higher than the
tunity has almost vanished in the best employment year in our his¬
,
Outlines Industry's Program
Economic Planning
For
last decade.
Back
which
(Continued from page 2526)
low
the
Weisen-
Mr.
of
address
ousiness leadership in that democ-
long as it emphasizes
people want.
The peo¬
so
racy,
burger in full:
what the
Full Text Of Speech
;
America's infant, but most pro¬
j
lific
is
industry,
Personal
America, however, is not eco¬
ter
planning in the collectivist
sense.
■'/,
."/'■'
/,/.
As against the inspired wisdom
of a few gifted individuals who
feel themselves qualified to think
for a whole nation, this program
nomic
of
industry
of
facts
the
expresses
basic
American
common
our
■
.
.
experience.
It is a program—action, not just
Those
forth the rules of the game and a
within
attitude
national
which
of
framework
the
the objectives of
are
This
the
The man who
'good old days."
the
into
idvances
while
future
ooking backwards over his shouller makes a tempting target.
We're
looking backward—
either to the
not
working for themselves.
Ours is a program v to win the
thirties.: •••/,''
wife
Lot's
who
year
them.
we're
get that
the front.
private says: "So I
fighting for;
we can
direct from the boys at
Succinctly
The small business
a
all
to
trying
we
are
the
'freeze
///
myself again."
"So
driver:
tank
A
I
can
live
father lived."
A military policeman: "I'm not
fighting for any particular blue¬
print, except the blueprint of freedom."
V
,;•>/ /
/./
A 19-year-old soldier: "I'm not
fighting for medals, but to go back
to the 'pursuit of happiness.' "
More realistically, an engineer
as
:
.
my
corporal adds: "I'm fighting to get
this damned war over with so I
can
present" — preserve
quo"—which is simply
the hell of a fix we've
he "status
summary
sentiment of the 200 boys
"
who gave
opinions, was given by
Army doctor: "I'm fighting to
help keep America American."
And that is, in a nutshell, the
whole story of what they're fight¬
ing £or<
Though not an enemy
remain alive, there will be no vic¬
tory for us if the war ends with the
an
American way of life a casualty.
We deem it
act of
patriotism,
therefore, to offer at this time this
program for a Better American
economy,
reflecting as it does,
long arduous work of many com¬
an
mittees, many members, many ad¬
visors.
that
presentation does not con¬
discussion of such major
immediate problems as termina¬
tion, reconversion, reserves, and
plant disposal.
Those are dealt
with elsewhere in the program of
this convention.
Industry
is
"
,
seeking
in, employables
that
leadership
free,
a
self-re¬
specting people will accept.
It is
rot just for business, except as
business
is
It is
life.
a
of American
for a better
part
a
program
America in which all
can
share—
labor, agriculture, the trades, the
professions—all the people.
With that
as
preface of purpose, I,
Executive Vice-President,
your
to
want
discuss
with
the
you
fundamentals of this program con¬
cerning which our President, Mr.
Crawford, spoke so eloquently at
lunch,
will
You
hear
next
from
| Mr. Prentis, and Mr. Adams and
Mr,
will
Harrison
tell
how
the
National
Industrial
tion Committee.
Informa¬
Now for the es¬
sentials:
Cne
of
the
remember
veil, the victories of the past ear¬
ned on to still greater results.
We
in
a
prime essentials to
we live
representative democracy.
There's
democracy,
phasis
is
nothing
so
wrong
long
the
as
the
first
with
em¬
syllable,
"democ"—"the people"—and not
on the last syllable,
"cracy."
There's nothing wrong with the
on
make
can't
Nor
be achieved
enter¬
private
throwing it out the
better America
prise better by
window.
can
in
a
hybrid economy
—half private, half collectivist.
A half slave and,half free sys¬
tem won't
provide post-war jobs.
no mistake about it,
And make
the
people will
post-war world will be
first
want in
the
thing
a
,
;1
:
fighters won't care
much about settling down to jobs
Returning
of
tatting, leaf-raking, or odd-jobboondoggling.
A
They'll take their post-war jobs
they took their wartime jobs—
is
;traight.
They
much again goods and services
than
did
it
1929
in
Whatever
the
reach
to
'
56,000,000 goal.
j
job goal is
post-war
used it must be based
produc¬
multiplica-^
tion of jobs by mirrors.
left but Government employment.
and
tion
In 1939 there were<190,00Q-man-
And
establishments
in the
employing 8,000,000
Ninety-nine and a half
not
on
how
matter
no
on
trick
you
ap¬
United States
proach it, it is well to remember
workers.
that
have
certainly
heir way
earned
the battle fronts of
he world—and they will want to
the
lo
on
same
But
'obs
the
on
where
from?
come
production
/ V '
."/' V:,
do
honest-to-Pete
ronts of peace.
From
a
sup¬
Government?
from a dreamy program to share
he wealth without producing it?
posedly
benevolent
set out to dream up
we
obs for job's
sake, we get into the
realm of the mystic, and end up
with very real debt, but very un¬
real employment,
y
/
Real
jobs
economic
or
don't
come
of
ouija
out
from
seances,
table-tTting.
much
of
what
management
/
production,
Freedom
control to
bureaucratic
from
/
permit production.
Encourage Risk Capital
^
;
The entire enterprise system is
nothing
but an elaborate system
bringing men arid money to¬
gether to get something we want.
of
Jobs
the
are
public's
first
need.
To have jobs you must first
have
employers
you must first have capital.
employers—to
have
Factories
and
equipment, and
shops and shuttles do
not
"just happen." ; Some one
must plan them^ some one with
vision
and
daring must
bring
ships
and
them into existence.
.Saving and investment lead the
pulled, like pretty l'ttle bunpies, out of hats—even out of hats
n
are
in the
political ring. Only
"make-believe land" do storks
bring
babies, and* only in fairyEagles" bring jobs.
~n this very real world, jobs, like
bab'es, are born as the result of
-perfectly natural processes.
And
'and do "Blue
I said born—not made.
try to manufacture
a
rr
bot—not
When you
get
And
a man, you
living thing,
a
were
less than 500
of
than 150%
nore
No
Learning To Test Theory
promise-weary generation
5s learning to ^ject mumbo-iurobo
economic*.
Theory is no longer
W?th sctentists, we insist
theory\nust
H has taken
freedom
has
be proved.
and
a
produced
oppor¬
tunity.
There
a
time
just
iobs weren't enough in this coun¬
we
he Potomac.
a
out
small town 'ran
post-war,// /
people "who were in need of
argess. - All had jobs except the
to
/illage half-wit.
and, be .sure
They finally sel
"iim
to
polishing " an old brass
Revolutionary cannon in the pub¬
lic square at $20 a week.
He car¬
ried his own whistle in his pocket,
before
blow
he went
work,
to
it lunch and when he quit.
weeks
five
or
After
polishing
of
Then we. can ask the
people; to go along with us—to
keep their chins up —r to fight
through, whatever difficulties the
transition may bring, to get back
the
is
I've
)ut
best
saved
job 1
enough
up
hey
md
To
money
of
means
a
bread
for
craving
and
derstand
nesians
them,
or
they
un¬
jobs
where
are
the
renv
It
they
want
something they haven't got
md I intend to get it, "come heP
or
high water."
-
-
J
v.
-
Genu'ne jobs are a means to an
md; they are never the end itself
Any job that is not born of a de¬
sire for, the useful goods or ser¬
vices that job can produce, is ?
fake.
The world has known jobs, cre¬
a
fashion, and men fed
fashion, by slavery.
Thr
nerfect.
not
is
be¬
Human
invest your, money, you
and
at
the same time
you
it
save
Only you spend it, not
pleasure, but for
spend it.
for
solu¬
age-old problem: how
cake and have it, too.
to teat your
When
\
one
immediate
productive capital equipment and
./
jobs. • "
Quite
does
,<.
'/■-
.1
obviously i the
not
think
philanthropist.
feather his
He
own
investor
himself
of
as
Just
nest.
as
a
to
invests
ob¬
viously, the farmer who feeds the
hungry does not think of himself
as a great humanitarian.
He pro¬
duces food, not as an act of char¬
ity, but to have something to sell,
so that he may buy the things he
No
wants.
is
more
does the worker,
clothes and shelter£/us do
who
it
good Samaritan. He is inter¬
ested in his wages and what he
a
buy for them.
can
That's the nice
social
and
America.
on
Every
concen¬
one
getting what he wants
himself,
only
thing about our
set-up here
economic
finds
but
that
the
he can do it is by pro¬
others with things thev
way
viding
want
and
be
enough to be willing to buy
for.
We .don't have to
philanthropists.
We can be
pay
selfish
as
all
and
hell
still
find
that, unless we can fool the police,
ings are not perfect.
And this we can't
get something without
program points out the mistakes
giving something in return. Each
of management along with those
can
prosper best as others pros¬
of everybody eTse.
We believe,
per with him.
however, that through the years
The first step to post-war jobs'
the credit side is one of which
is an overhauling of the invest¬
Americans can be proud.
ment laws to attract savings on
True, we are said to have onethe assumption that free enter¬
fhird
of
our
norulat'cn underprise is good and that private joborivileged.
Eui that; is by ocmmaking
should
be encouraged.
parison with our own high stand¬
Congress should try to make the
ards of living, not with those of
machinery of investment run bet¬
countries.
ter, and not clutter up the picture
"If
capitalism."
covs
Prof
philosophy is collectivism
Frank P. Graham, of Princeton,
You produce—they collect.
"were
allowed
to
repeat
this
per¬
There are some who say ,tha\
formance (from 1870 to 1930) fm•he answer is 64.000 000
*lave
ped
tebi
pn
annual
income .To'
$150,000,000,000.
,
!"
Personally, I don't agree. "The
above figure
contemplates that all
come
re¬
tained in peace and that 10,000,000
service people will' be'
what is already the high-
-eturnmg
c-pteyrrent peak in historv.
^xeeedmg our best peacetime,
years,
busidis-
that
a
nationally
simulated
enter¬
it
would
do
with anything that accord¬
ing to present standards could be
called poverty."
^
.
We
from the
howes and retirement w:ll be
50
another
away
cm
make
enterprise
freer
*yphin tKe rie^ts of society, more
fullv, competitive, and more tru1"""
eptorpr-ising—all of ™?1->ich should
make it
.
of
The
more
test
of
productive.
^ood government
management, of good
labor, should be—do their actions
help production?
good
The
National
prise system eventually can reach.
But
is it good business- when .Manufacturers'
once
a
simply all the ways whereby we
all earn a living.
tive of being able to go into
That
tion to that
for
is not
of "b;g shots" or an organi¬
of "stuffed shirts."
It is
gang
expanding
future—where
*vstem
zation
Poly¬
where
building something bet
are
for
ter
the
the Ubangi.
You'll -find
horizons
wn
as
Source Of Jobs
economic
or
.//•'
Investment offers the
in
Real
The
Our
machines,
new
call investment.
we
trates
breeches,
among
have fuF
must
we
our
and better
mousetraps.
'You won't find jobs,
..
takes to win.
They
satisfying
Better
deficit
dom,
and Opportunity for the
future.-././/'
The war has proved that the
caoitalistte system has what it
the aspirations
ambitions of mankind.
ire
,
a
a
based on a polit'cal
system of free men.. In voluntary
cooperation of these free men for
the common good, lies Jobs, Free¬
get back to real jobs—
born of
are
/
of
of
employment
te buy a brass cannon! So I am
going into business for myself."
But!
■
beam
instead
America
In
had
ever
real
the
future.
pf the village to resign.
'this
careful not
promises.
America/
"What dr
you want to quit for?" asked the
Vtajor
"Well," said the half-wit
be
V :'/■>: '<
n
promise" anything it can't: do*
to do everything it
on
appeared before the selectmen
m
//'.;:
,.
Business should
)f
;o
:.
employment by 12,500,000 is a goal
for himself.
If
on
,
.
The American working man
always had before him the incen¬
try.
ness
from
goal .by a little bad. road.
do we'll probably end up
our
get
.
be diverted
not
must
no
jobs.
Only those that are used
to put to work in building needed
productive equipment render that
vital service to society.
It is that
useful application of savings that
,
^dded to
urns
ambition
of man: to
...
We
the rougher detours we've been oh
/
i
!
job, and finally into his for the lasti decadec :
In the long run a fully oper-i
nvn
business, he has no chance
of fulfilling, his desires in a Gov- "ating; free...enterprise system as
jrnment-rim WPA society/ c /u
outlined: in this program is the
In the lush .days of manna from only .guarantee
of real jobs iri
rf those who have
theorv:
jobs, mixed them w'th
proved
peace
,
create
But
in a
with fear-making
excessive regu¬
lations.
1
Government
Capital
ooct-wap
This
a
employers (of
'. te :
::
problems getting, back to
production/- '•
'•/ .'i
better,
i
after
but
porary
to get a- job Opening onto
along,
and
tive causes, you get the form
not the substance.
period of many vexing and tem¬
employ¬
workers, and
much
in. the breast
stirs
ated after a
through and for produc¬
,
how
matter
similarly when you try to, manu¬
facture a job for the job's sake
not
are
less than 200.
They can't
be
hat
cent
per
our
*
Industry
always is that
5.
sock
that
People
ser¬
vices—would have to produce half
as
Adequate social security for
employ
distributors,
farmers,
Management co¬
maximum produc¬
-1;
•',•• • ' • i
1
ers
mough.
Emphasis On
4.
;
•
,
the N. A. M. members are
this
public through
can't
to
structure
Sure, we want the errors of the
)ast corrected, but we want, as
N. A. M. program for 1944 is going
to be carried to the
tories,
,
workers from
mere sake of givl
The problem is produc¬
tion, not jobs.
This nation—fac¬
bigger and to be¬
come a
bigger employer has got
to be restored if the employment
problem is to be settled satisfac¬
torily. You can, as demonstrated,
;o
kill off private employers in
.his country that there is nothing
of tax
and
operation for
ing jobs.
small business
a
Labor
tion.
people for the
...
The chance for
Industry
answer.
3.
goal
recovery
/; /•■'' /«•:
Or, it would be wiser to start
With the problem instead of the
annual
normal
the
2. Revision
stimulate production.
the
wiser
seem
1. Encouragement of risk capi¬
to provide the tools of pro¬
duction.
tal
banning.
through bureaucratic
into
;otten
boards
furnish
to
The
era,
increase
than
more
It would
that
make
more
march of industrial progress.
the savings that are buried
L.atin for
Vhenever
This
tain any
to
repre¬
growth of employment in
first. •""'
is
more
prescribes
produc¬
program
conditions for
and
employers of less plans cannot come to fullest frui¬
than 1,000 workers/
Parenthetii- tion •, the day. after peace is deZ
calJ.y, it is interesting that 75% of clared. There will be a transition
jobs,.
seven-word
best
the
of
back home.".
go
The
man
certainly not the remembered man
afacturing
..
be
can
■
6,000 common men a
had
businesses
lost
NAM
more
tion:.
This figure
somewhat
the nation.
hundering 'twenties or the dismal
of
of 1929/
normal
•
Least
year
sents
to live, to grow
enterprise system.
is
no
yearning for
to
eral deficits,
he basis of which is a free, com¬
petitive
istic
Common Man,
but of Uncommon taxes and Fed¬
of about
500,000 cannot be met. with 6,000
a year fewer employers.
137,000,000
by establishing fully, the
of the
decade
five
The
get
we
vocated
place the job load at 56,000,000, which is of itself 24%
larger than the best peacetime
go pf
a
of
striving
by
ike
victory
and make
curity.
How do
by those who want Gov¬
more
source
of
production?
It is more conservative and real¬
In the decade that followed—
only
standards
;
ernment intervention?
no
in national
jnity for the highest results from
V voluntary cooperative society,
Achieved
people can revive the quaint old
American custom of planning and
principles for which we fight.
It isn't up to us to say what
had
man
'
-
the
as
possible that the -34,000,000
job mark is being deliberately ad¬
the
management's program.
We hold that these deep-rooted
desires of free men can only be
.
planning! A simple pattern setting
too
freedom.
business
against
for themselves
the
5.
business when the
Goliath cor¬
porations, 36,000 Joe Doakeses a
year were able to go into business
3.
4.
David
chance
it.
of
Association
National
The
,
little
Economic security;
Manufacturers' agenda for a Bet¬
'
.
■;
'twenties,
supposed to have been
was
♦
Is it
roaring
the age of big
2.
Opportunity for jobs;
Economic justice; and
■!
•
living standards;
1. Higher
plan¬
post-war
ning.'.''
.
ple want:
the
in
tory.
,
production
of jobs,1 high
living, and real se¬
around more and
Association
plan
is
of
built
The
government leaners at this
"Why not let t^e
Government suoply the capital?"
Where would Government get the
point will say,
money—from taxes
From the people?
It
is
estimated
or
that
borrowing?
the
Amer¬
ican people
will end the war with
savings of 120 bullions of dollar-;
and, that the Government will
end it 300 billions in the hole.
Under those circumstances, shall
we
leave it to the Government to
supply the funds for domestic
(Continued on page 2940)
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number-4240
158
"Every Hottentot A Capitalist"
William; P,. Withcrow Speaks Out Against
Barriers
"Squandering" Our
Rebuilding World—Proclaims Need For
Not
And «Investing
Wealth
In
High Tariff On Alien "Isms"
A
r
Trade
Taxpayer.—Extols Virtue: Of Reducing
ican
,
Perpetual
People? At Expense .Of Amer-
Handouts To Foreign
:
^
that
Declaring
exist side by side in
world business and industry".
In
b
e
speech
a
t h
fore
•'
;*
N.
Y.
"something for nothing."; V
Of sound international benev¬
,
olence, we need say little. Every
real American will enthusiastic¬
t,
while America
a
must
play
world
part in
ally support postwar help
reconstruction
trade, he
is"against
permanently
aur
to
avert
actual
-
starvation
vicissitudes arising
plunder
and
destruction.
And we'll give that help gladly
and freely to the. fullest extent of
aur
ability. We shall meet this
challenge to humanity and' char¬
lorn
the
American tax¬
He
Wm.
P.
Witherow
added that the
flows
which
so
will have to be ap¬
shall ask and expect nothing in
"with full recognition
return. Second helpings-wouldn't
that the present problems require
taste
very
good to Americans,
a
rare judgment and balance be¬
tween blind generosity, farsight¬ anyhow, while half the world was
hungry. That we shall practice
edness, and intelligent interest in
of
peace
proached
our own
;
our
land."
historic "Golden Rule Diplo¬
in
macy",
that
asserted
Witherow
.;.Mr.
then
And
man.
instead
of
shortage
America's compassion for a war-
the period of world
immediately following
be taken for granted.
the war, may
he
en¬
Wood, Gundy & Co.
Incorporated
14 Wall Street,
waiting for
Direct Private
New York 5
Toronto & Montreal
Wires to
the inLernational milkman—Uncle
Sam—he
have
can
not
only
a
Canadian Securities
That makes sense. The Hotten¬
would
tot
something
get
out
of
arrangement—and so would
his self-respect
And -he d keep
we.
paying
by
his
own v way.
He
the foolish idea that
was
a
daily political
wouldn't get
Christmas
festival.' '■
.■
the Hottentot to help
my recipe for estab¬
lishing international economic se¬
curity. He may need,a few besis
kets in which to gather his coco¬
nuts. He may need a plow, or even
tractor,
a
ccultivate his land
to
and increase his crops.
he'll
need
little
a.
Most likely
education not
how to use'tools but on
of having milk,
and the desirability of unparking
himself and doing a bit of hust¬
only
the.
on
advantages
There
is sense in
him to get his start.
be
a
helping
That would
our
real humane investment and
a
good economic investment, too,
if it
the
more cocanuts in
There is nothing
brought Us
long run.
foolish about investment—it is the
seed of betterment.
very
There is
benevolence,"
international
,
increasing flood of indications from Canada's for¬
last of the
an
gotten Northlands pointing towards the development at
colossal
resources
of this vast
The
area.
Pfince Rupert Chamber of
Commerce is pressing for the construction of a road from Hazelton,
B.
Helping
himself
'
By BRUCE WILLIAMS
-
that-
C., to Whitehorse, that would open up territory with anthracite
deposits only 100 miles from tidewater at Stewart, B. C., equal in.
to
Welsh coal, and fiv <§>——-—-—1 '■ -'
' —~—-—----times as large as the Pennsylvania where buying was resumed on a
quality
field,
Resources
awaiting devel¬
half a mil¬
lion
acres
of
good agricultural
land; five to ten billion feet o.'
standing
timber;
hydro-electric
power estimated at 600,000 horse¬
opment also
include:
power.
>
According to a report from Ed¬
Dominion Govern¬
ment has finally decided
to fi¬
nance full scale operations for the
extraction of oil from the huge
monton/ the
deposits of tar-sands in the Athabaska River section of Northern
Alberta.
the
in
there
was
further hardening of
a
the Canadian dollar in the "free"
10Vs%
market to
With
discount.
increasingly
discussions
centered
post-war matters and currency
stabilization, it is probable that
on
interest
general
in Canadian in¬
ternal bonds will further develop,
with
and
will
any
the
in
result
level
selling
official
the
taining
of exchange
heavy demand
rate again at¬
supplies
limited,
now
of 9.09%.
the market as a
With regard to
Prospects are high for
discovery of major, oil fields
the neighborhood of Hudson
Consequently,,
fairly large scale.
whole, the better tone that has de¬
in the investment mar¬
generally follow.'ng the very
given by one
of the Assistant-Secretaries of the
veloped
kets
Bay and James Bay.
broad hint recently
This is only the beginning; un¬
"sound
You see, the answer to the Hot¬ told
Our compassion for a war-torn
mineral, agricultural, timber
as dis¬
tentot's dilemma is that,we would
and hydro-electric resources awa't
tinguished from "maudlin sen- world, however, should not fail to make him a
capitalist,
capable
of
only the flow of capital necessary
timentalism," explaining that • "a draw the lin'e between sane ben¬
producing for his own welfare to finance the construction of rail¬
perpetual policy of free handouts evolence and maudlin sentimen- and
security
and
contributing
to
'alism. Beyond that line lies the
roads and highways that would
for the world is not benevolence"
the welfare of his own and other
provide ready
access
to these
but "weakness." This theory of policy cf "Hottentot Internation¬
be of
should
world
torn
Obligations
External & Internal Payment
these
buy
abundantly
'hrough American veins, and we
ling in order to get it.
ity
days
difficult
this holocaust is
and the ether,
peo¬
payer."
when
help
aver,
ples at the ex¬
of
will need
There'll be plenty who
supp orting
pense
and sue-:
;:or to any > people directly dis¬
tressed :■ by., war. We; 'must rush
assistance immediately following
he : termination
of. ; hostilities.
a
and
foreign',
a nation is no more
than
an
individual, to
"entitled
City,,
tli
said-
what
is
that
and
—
Direct & Guaranteed
terprise and trade, if you please.
Then he can buy a cow of his own.
With his cow and a few rnythmic
motions, he can be his own milk¬
j premise that
e
Witherow
Mr.
coconuts—if
gathers
Canadian Gavernment Securities
quart a day, but a gallon a day.
■
NAM's Second
War Congress
in
to
quart of milk to his
doorstep—if he has a door, and
it has a step—every morning. The
real" ahsyver'.'is, to* help him find
the way to a better lite; don't try
to give it to him. Convince him
of the value of the effort; of the
need:., for gathering a few more
a
ccoconuts from him. Establish
.
"diplomatic- peace, and economic i strife cannot
the same world," William P. Witherow, Chair¬
man
of the Beard of the National Association of Manufacturers,
suggested on Dec. 9 that "American Industry be given a seat at the
forthcoming peace table" where it' could meet, "the leaders of other
!
is, not
Hottentot
the
of
lem
deliver
2537
.
level of
maintained
post-war period will also
Treasury that the present
interest rates would be
in
the
effect
its
have
on
Canadian
the
the
the
bonds
In addition, as far as
market.
,
countries.
>;
external issues are concerned,
>
''w
he alism",
virgin territories.
A perpetual policy of free hand¬
;, Last year I also spoke of my
further stated, is unfair "both to
Financial
interests
in
this
attitude toward an international
outs
for
the
world
is
not
bene¬
the American people and to the
country have nothing to lose in
WPA.
And J suspect 'that the
volence.
It
is
weakness—and
of
people it would pauperize". The
keeping close watch on this sit¬
answer to the Hottentot's
dilem¬ a dangerous sort. Sound charity storm of concern .feat broke out
uation; especially as it is be¬
for
the
Hottentots
was
mostly
stops
at
the
point.where
it
ceases
coming
increasingly
apparent
ma, Mr. Witherow said is that "we
benevolent .school of
would make him a capitalist, cap¬ to -strengthen the recipient and from., that
that the hub of the world's eco¬
new economics which favors un¬
able of producing for his own. encourags indolence. Beyond that
nomic activity continues to shift
Internationalism",
"Hottentot
society
and
welfare
and
con¬
of his
to the welfare
and other countries."
tributing
own
•'
..
.
who is also Pres¬
of the Blaw-Knox Co., as¬
Mr. Witherow,
ident
that we
serted
sidewalk pan¬
handler. a great nation, or a Hot¬
tentot. We haven't any moral right
to
make paupers of our neigh¬
bors.
■- : '.v
'
possible."
Witherow's ad¬
dress follows:
; In 1765 John Adams wrote, "I
always consider the settlement of
America with reverence and won¬
opening of a -grand
in Providence
for the illumination of the ignor¬
ant and the emancipation of the
the
design
and
part of mankind
slavish
harm
more
trade
'
as
than
good.
He who doles out charity beyond
receiver
true, whether the object of spur¬
The text of Mr.
scene
really
Board
policies designed to reduce
der
nothing
is
charitable about it for it does the
determination of
creation of an International
barriers as far as
there
ooint.
,
.
that point is not only deceiving
himself; he is cheating the one he
thinks to help. And that is equally
must propose the
of Trade for the
1
,
-
all over
the world."
ious
charity
be
a
limited
spending of
as the an¬
problem; those selfstyled
"liberals" . who .want to
combine reform and recovery in
the
government
taxpayers'
swer
money
to every
.
.
the
world, as wet attempted un¬
successfully to do at home in the
decade
before
While
world
the
in
fully
V
war.
cooperation
accord
and
with
keenly
alive to tlje immensity of our re¬
northward.
And
the
in
now
following
in
.
America, in her years
I believe
fruitation
.
and
as
she
under¬
greatest responsibility
of history, will not be found want¬
ing in her duties to our own peopie and to mankind throughout
takes
her
the world.
year's convention, you
may remember, I mentioned the
Hottentot and his bottle of milk.
•
-
At
I
last
am
grateful that the
use
of
symbol, or analogy, stirred
such a lively exchange of ideas
with so many alert minds. It seems
that
this^e&change has served
this
year, ago,
we
and the
mask
picture we sawimpoverishing herself to
pauperize the world—was not a
nationally ; to dramatize and to pleasant one.
focus attention on attitudes that;
If neither by ridicule nor by
characterize
international
postwar thinking on
economic relations.
Among these attitudes are
that
America
reason
can
Hottentot Internation¬
alism
be
laid
have
but
one
decently
recourse.
away,
We
we
must
chance of
a
the
States, Great
the recent
Vancouver,
ted
not
become
the King's
the liquidation of 'the
"Golden Rule
make
that
a
better
we can
Taylor, Di
64 WALL
one
"Times" of
ing to the New York
Dec, 14:
"We
preme
us and
recognize fully the su¬
responsibility resting upon
to
which will com¬
mand good-will from the over¬
whelming masses of the peoples
of
the
world
and
banish the
make
all the United Nations
peace
a
and
scourge
terror
of
war
The
declaration
of
page
2312.
i lk &
Company
^Hitehall3-(874
Empire."
e?
blueprints
CANADIAN
SECURITIES
.
.
Practical-minded Americans can
Internationalism". A
attitude, is based on the see that the answer to-the prob¬
'.'Hottentot
third
three
the
reported from Teheran
given in our issue of Dec. 9,
powers as
was
mistake about it, every
(Continued
on page
other
2543)
na-
Government
*
Provincial
'
for
generations."
many
STREET, NEW YORK 5
mousetrap—and
do. And the
"United Na¬
instance: the sen¬
tence in which the omission oc¬
curred should have read, accord¬
in
r
i
m
British
We will need to approach the
difficult days of peace with full
Diplomacy" that America has al¬
for it are embodied in the third recognition That the present prob¬
ways practiced when any of our
require a rare judgment
world neighbors needed a helping, possible, attitude toward interna¬ lems
band.
Another, attitude
would tional problems—the attitude held and balance between generosity,,
forever supply free milk to Hot- today by the realistic thinkers of farsightedness, and intelligent in¬
terest, in our own land.
Make no
tentots.and this may.be labelled our nation.
of benevolence:—the
from the phrase
tions"
'
First Minister■ im order to preside
over
Britain and the So¬
reported by United
Press advices Dec.
1, the word
"United" was inadventently omit¬
should approach
Ghurchill used when he said:
have
Allied Chiefs
return.
Our leadership
,
Union,
viet
our
thb post-war with the same hardheaded
realism
that
Winston
"I
.
of the Teheran, Iran,
declaration agreed to by the United
.
peeked behind the
-
In the text
.
of
mere
a
Declaration Signed At
alleged political swing in Canada
towards the vague socialistic pol¬
icies of the C. C. F. received rude
elections
'
acute.
Teheran By
of the northern re¬
gions of Canada and Russia,
civic
only
and
Correct Text Of
air-
world neigh¬
which
city, according to many
bors.
I'm
against
permanently
supposedly shrewd observers, here
There are some who
cling to supporting foreign peoples at The
and in Canada, was a hot-bed of
the theory of Hotte.ntot Interna¬ expense
of the American tax¬ C. C. F.
sympathizers. As it tran¬
tionalism as our postwar policy. payer.
Already some of these
spires, the C. C. F. and Labor
Although
unfair,
both
to
the countries needing help have de¬
Radical forces are now searching
American people and to the people clared themselves'against it. "
It for reasons for'what they admit
it would pauperize, this attitude is is plain that our people do not
is one of the worst defeats the
still qyident in some places.
want to mortgage themselves bil¬
C. C. F. has yet suffered in ah
The National Resource Plan¬ lions more—accustomed as they Canada—a complete rout. Not one
ning Board, the official govern¬ are to it—to create a world WPA. C. C. F. candidate was elected, al¬
ment postwar planning body set Uncle Sam will have a lot of home
though the party ran a full slate
up, by
fhe President, distinctly knitting to do, instead of playing for all offices.
included a good dash of it in, its Atlas to the world by supporting
During the past week, as far
it with post-war lend-lease.
If I
recipe for a new world.
■
.
as turnover and price movement"*
read
my
America right, public
We thought, a year ago, that
were
concerned, there was little
Hottentot Internationalism
could opinion will not support huge out¬
to record but the recent improve¬
pourings of taxpayers' reserves to
be laughed off the stage. Not so!
ment in undertone was well main¬
We thought that merely to recog¬ the far corners of the earth for
tained.
The only act'vity worthy
projects
(public works)
nize it for what it is, would rele¬ capital
from which there is no possible of note was in the internal issues
gate1 it to limbo. Again not sp! A
sponsibilities to
now
consequently,
the
problem of the future supply is
portance
refutation
is
where' it
trickle,
period it will
impossible to ignore the im¬
To revert to current affairs,
Canada has reached a point
from
minded post-war
be
of
flow
steady
hitherto
Ntirmcpal
*
Corporate
2538
THE COMMERCIAL & FINANCIAL CHRONICLE
HARRY WOODHEAD
Anderson Article On Post-War
Policy Elicits More Comment
Letters continue to be received regarding
the article written by
Dr. Benjamin B. Anderson, noted economist, which appeared in the
"Chronicle" of Oct. 21 and entitled, "What Can the Government
Do to Promote Post-War Reemployment?"
Dr. Anderson under¬
took to provide an answer ,to this vital question by setting forth
his views as to the policies which the Government should follow
Consolidated
Anderson's
Dr.
Can the
mote
Post-war
Reemployment?"
is
excellent
memorial
an
Senate
the
can maintain production and
employment at permanently high
levels. We have published in pre¬
vious issues
large number of the
a
letters received in connection with
the
advocated by Dr.
phases of
program
Anderson and the other
his paper.
Others are given here¬
with:
for
Lynn,
Savings,
post-war
Anderson's
Dr.
"Chronicle"
Under
in
statements
Oct.
of
conditions,
existing
statements
a
H i
his
are
nary
thinking
s
of
sound,
and I hope his
very
ideas will bear
fruit.
Concerning
t h
E
Security
e
hange
Commission, I
x c
an
am
1 d
o
-
ment
business
than
for
more
50
years,
and
I
am,
there¬
fore, without doubt, prejudiced in
iny
views.
I subscribe whole-,
heartedly to Dr. Anderson's views
on this particular subject and feel
that
sure
one
of the
very
great
the
of
SEC
changes,
kets
outstanding
regulations is
our
national
I feel that broad
essential and
are
a
restricting in volume
of transactions in
ex¬
mar¬
highly val¬
uable.
WILLIAM II.
Benjamin M. An¬
derson's
article < entitled, "What
Can the Government Do to Pro¬
mote
Post-war
with
interest
and agree
of
his
feel¬
most
ground very
effectively, but
from
KNIFFIN
of Oct. 21 with interest and
Mr.
Anderson
cryptic
tempt to
most
makes
observations
comment
profit.
so
many
that
to
at¬
would
be
al¬
climax, but I like it,
particularly the following:
a
great obstacle to govern¬
mental
economic planning
in a
democracy in peace time is that
the wisdom does not exist and the
knowledge does not exist and, I
may add, the power does not exist
to
know
what
130,000,000 people
what they will pay for
want and
and to have it produced for them."
Again, "the automatic system of
free enterprise is guided and con¬
trolled by prices, not by a super
brain
which
it all."
it
see
all
and
plans
In respect to prospectuses,
I agree that "a prospectus should
be short enough so that men will
read it."
with
severe
And I do
this:
"I
do
for
taken
are
to
occur,
no
On
the
certainly agree
my
hand,
as
regards
P.S.—Another point in which I
disagree with Dr. Anderson is the
desirability of letting a depression
wear
itself out.
Under competi¬
tion; the necfessary weeding out
process
goes
on
nearly all the
Dr.
the
to
bureaucratic
in during
come
Then, too, I
con¬
the
in sympathy
am
the Securi¬
see
that time the indebtedness of our
in
round
has
numbers
from about $26,000,000,000
$200,000,000,000 and
still
growing by leaps
and
to more than
is
from
and
fraud
the
about
ability of
care
of its
take
to
doubt
some
country
our
own and do
much for people in the for¬
eign countries allied with our
country. ;
matter
Another
is
that
the
should
ability of busi¬
itself, employ
to rehabilitate
labor and take the lead in
of
be
era
an
prosperity.
Taxes are bound
be
very
heavy because the
to
,
is
soldiers must have
consideration,
the
wounded' must
be
hospitalized,
war
over,
and when
this
is
done there will
the
on
of
part
who make false registration
violate
otherwise
or
that
there
will
legislation
equality of
be
between labor
power
management is another good
stressed
is*
by
Andeson.
Dr.
question
no
what
but
shortsighted labor leadership can
be the biggest single stumbling
block to a quick transition and
prosperous post-war erav •
E.A.WALKER
President,
The
City,
Oklahoma
Okla. ;
countries.
••
'
•
-
•
"•
special thought, but in a general
way I agree with what Dr. An¬
article, but
with/ several specific exceptions.
instance, I do net believe
that
this Government can bring
prosperity to the whole world or
that it can feed all the hungry,
people of all the other continents
on this globe.
My opinion is, that
the
of
people
country
our
their first duty to our
that the duty
of
ance
they
the
owe
country and
to the bal¬
owe
world
is
secondary.
.
Government Do to
Pro-,
Post-War
Reemployment?"
by Benjamin M. Anderson, Ph.D.,
carefully and think it is the sound7
est exposition of the subject that
In
,
saying what
preceding
paragraph,
be
want to
said in the
was
I
,.
do
misunderstood
not
as
ex¬
left to feed
citizens : of
Then, too,
and
other
Govern¬
our
ment cannot afford to increase
pense
to
even
or
tinie expense,
maintain
ex¬
of
our
be
greatly depleted and
people
to
try will do well if it
will
taxes
pay
our coun¬
finance
can
the situation at home and then at
the
time
same
reduce
the
which must be done if
have prosperity.
There
;
to
•
be
must
taxes
are
we
sufficient
centive for business to go on; and
if this is lacking then there will
ready
boom in business.
many persons
ing all
Federal and
to which
is
not
have given
because
they
after
taxes
States
subjected there
are
enough, profit left to jus¬
tify the effort put forth.
It
rather
seems
when
the
with
war
that
Germany
is
four
to
that
.
there
five
will
million
be
men
without jobs, and there might be
many more, and this is another
why our country cannot do
much for our Allies.
Under
reason
very
these
sure
conditions, it
seems
rather
that
everything pertaining to
cannot
be
successfully
controlled from Washington. Cen¬
business
tralized' government
at
our
na¬
tional capital should be decreased
at least 50% and each State should
be left to control the
business
in
that particular State, and taxes by
all means should be reduced.
Our Government should plan to
increase the flexibility of our eco¬
....
which
will
under¬
sions.
make
in
money
plan
the
how
post-war
period."
and
sound,
to
all
understand
common
and
sense.
full- of
He
well
they
of
our
will
Senators and
in
be
such
sure
study the article.
Of
a
to
way
read
Rep¬
that
and
course., some
of the rank New Dealers will not
ness
be impressed as his plan does not
fit in with their idea of "revolu¬
at
tion without violence." Neverthe¬
intimates
that
the
average
busi¬
man
may not be an expert
planning but he is an expert
at making money, and this, after
all, is the end and aim of busi¬
ness;
so
that, if he can make
money
with
without planning,
or
even
planning he will achieve the
objective of creating employment.
this
that
tion of
that copies will be sent
resentatives
I find the whole article easy to
read
seen yet, and I thoroughly
with Dr. Anderson's conclu¬
I hope
to
of good wages,
ho lines of business
are
can
pay present
scales
wage
during normal times/ If labor de¬
mands
continuation
in
rates,
opinion
my
present
of
busi-*
many
firms will be forced to close
ness
and
unemployment
than
worse
will
be
"u
If the Government tries to
these
people
employed
individual and
average
far
before.
ever
keep
and
the
corpora¬
tion is brought to a bare
existence;
who will pay the taxes to meet
the expenditures by Government
who will be able to buy bonds?
or
country was built
of free enterprise,
system
the
on
where
every"
person was free to work as
many
hours
he elected to work
as
and to accumulate
money accord¬
ing to his ability. Under our pres*
ent
system he is restricted in
hours, thus reducing every person
to the
is fixed
by
or
level and his compen¬
either by a board
same
sation
taxation.
This
is
a
war
measure, but may remain as many
favor Government control.
I
with
agree
Mr.
recommendation
ment
control
punish
of
and
those
Anderson's
less
Govern4
laws
who
that
will
conduct
busi¬
by
misrepresentation and
dishonest methods.
I want to see
the young men of this
country
have the same opportunity for ad4
less we still have many patriotic
Representatives and Senators who
will be glad to see the light and
perhaps a number of them may
have the courage to assert them¬
selves, like Senators O'Daniel and
Byrd, especially.
tries
effort,
considera¬
country/and by all
restrictions
giving to these other coun¬ the
begin after we have, around business;
should
returned
home
and
soldiers
our
have
them
aid
to
war
I believe the
to
done
reestablish
selves in business
their
to
something
them¬
jobs, and
The
American soldier
has made the record he has is thai
he has been raised as a free
in7.
dividual
and
ture
and
lower
Treasurer,
means
of
Dr.
in
his
ation
Anderson, I think,.was right
conclusion
that
will
as
the
to
exist
at
situ¬
the
end
of this war, as compared with the
situation that existed at; the end
of the first World War.
stated
by him,
As so. well
at that time,
our
Cleveland
Co.,
I have read with
Can
the
mote
Auto-,
Cleveland,
and
in
.
accom¬
is
Reemployment?"
good, sound, common sense
in
rare
to
Government Do to Pro¬
these
days, and I wish
to
commend
the
attention
utmost
change,
his
by
erning body to make
plan
for
task
is
one
act
changes
and the
industrial
too
be
Congress,
must
by
come
The
It
ernment
ment
control
"God"
played
.
■
that the trouble
so far as
Gov7
me
have in
we
is
and
*
concerned
the
Govern¬
to.. contend
seems
that
it
comprises an infinite mind cap¬
able of deciding what you and me
and
everybody else wants and
what
I
should do.
we
;
of the opinion that if Dr.,
Anderson's recommendations were
am
followed
would
time
as.
guide,
a
have
not
what is
on
planning
war
would take
business
that
waste
to
*
things
because
care
we
much
termed post¬
now
of themselves if
went back to work
men
and tried to make money.
V;V"
; A. W. SMITH,
.
/
/
President, A. W. Smith & Co., Inc.,
/
Boston.
,
\
...
.,
.
.
Dr.
Anderson's
"Memorial
Committee
think
it
some
of
on
the
to
Postwar
Planning,"
that
was
in the Chronicle.
I
unfortunate
was
the
newspapers
that
have
by
made headlines to the effect that
all
Dr.
degrees
Anderson
abolition
■
great interest
but
government and less
i appropriations.
to
seems
is that
done
general policy should be
to have less
so-
no
degrees
revival.
great to
in
one
evident
planned economy that has
been thrust upon us.
.....
T
I have read with
but
the
to
called
,
plishing; this there should be
drastic
,
great deal of
a
Post-War
published
people
The
reduce
thrown
now
\
■.
.
interest and pleasure Dr. Ander¬
son's
memorial
entitled,"What
Economic*
other countries,
efficiency off
.
matic Machine
general
the
the
MILLAR BRAINARD
It will be impossible for any gov¬
for
Gov7
people....
opinion further is that if we ,do
this we will not have resources to
much
taught to
ernment,direction and supervision
weaken our business struc¬
Senate
too
been
Too much
will
bring about the results suggested.
do
has
think for himself.
my.
or
their fathers had.
the
reason
and obvious weaknesses in the
country,
from
to
he
favor
this
but
to
that
with the individual,
or
in
am
calling
agree
namely,
I
but there
finished and the soldiers return to
I have
and
years
do not exist either in the
reserves
corporation
Such
uncertain
how
do
which enabled them
through for several
with small earnings or even losses".
Under our present system these
up
pay¬
knows
stand,
Pro¬
to
Corporations in 1929 had
reserves
to carry
Al¬
which he
to plan for full em¬
built
our
something
man
the
Do
in¬
ployment but I exhort him to do
business
exhort
Government
vancement that
war-
because the ability
their business
Without giving the subject any
For
much
the
for
not be any
Na¬
Tradesmens
Bank,
be 'too
not
care
pressing the idea that we should:, nomic
life, restore the free move¬
not do something for, the nations
ment
of capital throughout the
united with us in
not
the
mote Peace Time Reemployment?"
I feel that he is sound in his state¬
This
tion, I believe there is
financial
investors
Can
On account of this situa¬
bounds.
hauled, with a view to retaining
only those parts necessary to pro¬
certainly
Whatever we give to
the world at large is at .the ex¬
R. D. BARCLAY
pense of the citizens of our own
President; National Bank of Com¬ country, and while I believe in
merce
of San Antonio
charity, still I believe charity be¬
I have read the article, "What gins at home.
time.
mote
Before the end of the
country must be financed after the
points covered by his
expressed.
the
of
Budget;
first year
derson has said in this
article, I feel that his position is
sound and his ideas excellently
Can
Douglas
ties
and
Exchange Commission
regulations thoroughly over¬
point
he ought.
other
most of the
W.
but this economy promise did not
considered
tional
gone into this particular matter as
as
is
exhortation
of the fact that Dr.
disagrees with
thoroughly
significant
other
depressions will
certain
I believe that he has not
of view.
Lewis
materialize.
ness
point
until
aware
administra¬
Director of the
as
abolish
There
Willford L King
measures
am
Honorable
Congress to get rid of price fixing
as
speedily as possible and to
and
that,'
super
"The
.
Anderson's
bargaining
proper
I
present
very
/.
•
.
n
certain
Anderson
failure" when tried from 1933
Particularly
so
employment. I
almost
demonstrated to
was
Rectification of labor
upon
feel
War.
the
Arizona
grown
employ¬
governing securities and
exchanges.
1
-
matter what else is done.
read the Benjamin An¬
article in the "Chronicle"
1939.
of
i
the
I have read article by Dr. Ben¬
jamin M. Anderson entitled, "What
ments.
the
the laws
the volume of
be
have
a
namely, the in-
Centre, N. Y.
I
be
to
statements
point which is
credit
revival
rary
misrepresentation
fundamental-
variations
the end of
tion, begun in March, 1933, it was
strictly by virtue of the-platform
upon
which the President was
country
problem because, as he so
clearly points out, "Government
spending as a sure and quick
means
of bringing even tempo¬
any
one
influence
at
Guardian Trust Co.,
Houston, Texas
ness
dis¬
the
cussion
ized, and
Centre Trust Co., Rockville
Harry Woodhead
tect
omits
he
that
World
When
to take care of
ment
with his desire to
the
of
priming
pump
war.
covered
first
to do at home
more
was
of his administration his
son
says,
we economy program apparently was
don't
need forgotten and spending became the
Government rule and not the exception.
Singe
Dr.;Ander¬
as
trols that have
ing is that he
;
i d 1 y as
p
.
regulating the volume of credit,
employment will never be stabil¬
President, Bank of Rockville
derson
Reemployment?"
with
ideas. My
most
invest¬
York
■».
a s
possible." And
read
have
I
has
the
evils
University
having
been
KING
WILLFORD I
Professor of Economics, New
school banker,
identified with
Collins
consumption.
course,
r a
the dollar
to do their
My only adverse comment is the
article is a little too long for ordi¬
DR.
transition
is no
"voice in the
is,
A.
as
incentive to urge men
wilderness."
Charles
great
so
the
about
for the
profits,
otherwise you stifle his ambition
and his ingenuity and all his re¬
make
to
man
there
elected and his promises in his
no
but speech that he would inaugurate
what ••• "the an era of economy was applauded
problem is one throughout the country. He ap¬
of
bringing pointed a noted economist, the
possible
it
make
must
business
than
question
employment. This is just common,
ordinary, horse sense, and you
the
1943.
21,
pe¬
end
heavily indebted, its re¬
greatly depleted, and there
very
M. MALONE
President,
Government will
our
is
There
creates-employment he will
and if he
makes
money
he should create
should make money,
best, and particularly if they can
keep a goodly portion of that dol¬
lar after they make it.
Mass.
I have read with much interest
the
for
order
the
be
ment house in
If he
or
incentive
Lynn Institution
President,
Govern¬
At
C.
were
war
will be much
get
riod.
sourcefulness because there
CHARLES A. COLLINS
to
little.
but
splendid
a
resources
of this
sources
the
to
its
f
to Pro¬
Do
in
was
and
depleted
"What
article,
Government
in order that business and indus"
try
Government
condition
Vultee
Aircraft Corporation
President,
Thursday, December 23, 1943
of
is
the
advocating
SEC.
The
the
im¬
portant part of, his treatment
of
the
is
subject to my, mind is that he
advocating the replacement of
the
present
function of the
SEC
*r
mmd
Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4240
158
y/ith other functions through dif- I
ferent agencies which would be |
more
effective in protecting in¬
vestors from fraud and
sentation than has
the
been
under the present
of
misrepre¬
case
clumsy process
filing documents in such vol¬
that
ume
no
and not
even
ever
read them—
these officials under¬
them.
stand
but the lawyers
one
and bureaucrats
In
other
Views Two Years Bourn .In
of
potentialities for American participation in post-war international
trade.
W.
A.
WAR
that the invest¬
trade. It is
to
ment
me
through. its vari¬
industry,
organizations, should consider
discuss these proposals very
Seriously with a view to doing
everything ppssible to sell these
ideas to the key-men in Wash¬
ington who have the power to
steer legislation governing the in¬
ous
and
vestment business.-
/
>
.
.
,
J. GENTRY DAGGY,
as compulsory reading
member of the Congress.
designated
ARTHUR E. PENDERGAST
St. Petersburg, Fla.
I read with
a
;
approval of the article
by Dr. Benjamin M. Anderson.
I hope and trust that the Amer¬
ican people will wake up to condi¬
tions as they haxe existed the past
few years and emphatically de¬
mand a change.
I shall pass the article along to
and hope it falls into
my friends
The
conditions
and
J
SERVICE
that the United States might agree
to a gradual lowering of tariffs
operating
to
England.
the
detriment
of
Such
reductions,
the
study predicts, "would be contin¬
also
Other factors that Mr. Zelomek
important in de¬
termining American-British com¬
believes will be
contains
a
mercial relations in the post-war
and shipbuild¬ period ' are ; export subsidies and
ing,; estimating' that the United rates fpr-commercial shipping and
States and Britain will together air'/.transportation;
international
of
survey
probable
enough hands to assist in chang¬
ing the vicious trend of affairs
that have created such a deplor¬
80%
post-war
of the world's
exclusive
fleet
mer¬
coastal
of
American: post-war
vessels.
em¬
and
finance
tion;
stabiliza¬
currency
international bank.
important development
and
an
Another
ployment of 300,000 in shipbuild¬
influencing world trade after the
ing
war
be
will
partly* sustained
Government
by
subsidies
totalling
To this ship¬
building subsidy -will be added a
ship operating subsidy fourv or
five times greater than the pre-;
war
annual of $10 million.
v •/
$150 to $200 million.
great deal of in¬
and
terest
ities, competitive
political factors."
chant
of Dr.~Anderson's observa¬
The
address
should be
for every
to begin
soon
Statistical
developing a professional attitude gent on a British agreement not
by abandoning wishful thinking to use the frozen funds of other
and making a realistic study of nations for the conclusion of bilat¬
market and investment possibil¬ eral trade agreements."
control
Philadelphia.
thinking. person can refute
simplicity; and unerring ac¬
tions.
to
International
.
No
curacy
nation,
a
have been amateurs in foreign
none
the
trends in "shipping
.
H. M. Byllesby and Company,
the
"As
business:
of
POST-«>
SERVICE, emphasizes the
of foreign trade to
American
we
President
ZelomeE,
Editor of the
and
Bureau
importance
seems
Mr. Zelomek
predicts that Rus¬
will be the fact that not only
but
other
countries
building
maintain
will
tries.
This
Russia
the
on
needs
the
insistence
,
the
total about 19 million
this year,
tons
if
even
is
and
the
deadweight
15 million in
with
war
Ger¬
during the first half
of the year.
Mr. Zelomek antici¬
pates a ^distribution among sev¬
eral
over
nations
of
America's
huge
CHANNING
M.
Boston, Mass.
.
Replying to your invitation to
comment
cle, I
as
may say
whole
the
sound
The view that
sale
the
that it strikes me
valuable
most
a
Anderson's arti¬
Dr.
on
we
.should prevent
securities
fraudulent
of
through.
Germany
after
ends.
war
two
three
Unlike
Russia
years,
Federal Taxes On
and further increase in the
quantity of money, through bor¬
rowing for prosecution of the war,
money,
-cannot
avoided:
be
all
can
we
do is to attack the condition
-now
piecemeal,
somewhat
the
in
cushioned.
may
be
»■
CI1ERNE
M.
LEO
Research
The
that the
hope
dislocation
inevitable
Institute
of America,
be
the
many
ment
most
provocative
and, in
convincing state¬
position I cannot, un¬
a
financial
friend.. of
handed me-the article,
Government
Do
to
Benjamiri' M. Anderson.
I
believe
that
mine
"What Can
Promote
Post-War!: Reemployment?"
i
seek
as
the
to
United States.
;
Mr. Zelomek suggests that cor¬
dial
business
relations
between
the United States and Great Brit¬
ain
be
can
maintained by
discus¬
sion of mutual problems in inter¬
national trade that the two
coun¬
tries will have to face.
Hull
by
"has
can
author leave Chase National Bank
of New York?
Secretary
been in sym¬
always
rather than have
taken in all the
years—if he meeds to
start with
1920, then from that time to and
including at least 1942?
(3) Years are changed again in
analyzed and'suggestions
salesmen
Probably that's why
for
think
likewise
Corporations Manual
Month
helps
check
conclusions against the experience
of
a
nationally known authority.
This intensive reference
on
corpo¬
ration,tax problems contains 2,000
and is published in two vol¬
pages
umes:
year
is
(this
the
is
and
in
interested
indicated.
This
his
investment-firm
the Growth of
Manufacturing Prof
at
was
tabulation.
In
this'
con¬
busi¬
ness
men
know how to plan to
"make money," his tabulation may
have
says
proven
more ; enlightening
included
a^ columhv of
had
he
Vanderbilt
University,
who
men
and
had
thankful
am
can
logically.
that
still
there
are
think
sanely
In the interest of
itself, I wish Dr. Anderson
urged
National
This
Nashville,
is
the
Labor
one
of
sions I've read.
abolition
of
l George1
John
clientele
Norman
following
Hackney
of
JOB
investors
Hopkinson
general partners on Novem¬
move
•^James/C.
ward
A.
-
there
was
ization
and *Ed-
became
special
partners in Bendix, Luitweiler &
Co., New York City, as trustees
for
Willem
van
Marie.
Both Mr.
the
Luitweiler
Board.
discus¬
tinue
hope that
firm.
as
and
general
Mr.
Ruhfel
partners
post-war economy.
WHO
THE
sure
INVESTMENT
way
WILL
to
STICK
build
TO
an
YOU
-
in
pendence regardless of the extent
order
to
to
place the
na¬
supply
of money under
governmental regulation, since the
regulation of the money supply is
function
a
the
already performed by
Government
-
owned
central
bank."
Mr.
Spinney went on to say:
The alternative which the pro¬
nationalization
of
offer
exchange for the present sys¬
of competitive banking is a
banking monopoly under govern¬
he
con¬
of the
—
"no need for national
control.
Under
such
cir¬
borrowing
customer were
reason whatever,
any
which
ward
erg and
management,
For
the
if
of the
of finance is
the
as
most essential step
a
the whole economy.
truth
applied
of the
control
of
this
statement
nationalization
to
workingman by.:
In its
monopoly
and
government
of banking in Canada
Set
agree.
the
up
socialization
of the economy
more
tion."
reau
a
than
a
of
the
rest
would scarcely be
"mopping-up opera¬
Fo£ if a governmental bu¬
becomes
the
only source of
.
primary aspects the mat¬
ter of nationalized
field
within
these
upon
may
limits
owning
it
or
concerns
dependent
Canadian enterprise that
a
seasonal
In
banking is one
competition
credit; and even
versus
of
have need of day-to-day
its
credit
broader
implications
the
liberty
of action
as
cept of
central Government
preme
a
or
accommodation.
issue is that of individual
of
the banks I would most definitely
ponder.
entire productive facilities
everyone
recently stated, as one
points in its favorf that
may
country, such an important
element in
production as labor
cannot possibly hope that the vast
regimentation involved would ap¬
ply to everyone else and; pass the
monopoly
prominent pro¬
nationalized banking
out¬
enter¬
Of the
the
of
free
Government, directly
indirectly, is to attain control
or
of
One of the most
of
This, I suggest, is a point
employees, as well as own-
that
in
ponents
endeavor
prise.
through the
channels
of
special pleading or political influ¬
cept
of
retain the
appearance,
ex¬
recourse
no
field
any
continue to
may
a
have
would
the
once
day-to-day credit accommodation
Robert J. Theobald retired from for Canadian
industry and agri¬
Otherwise the
results may be cause for alarm, to partnership in/J. J. B. Hilliard &
culture, the Canadian economy
■will have already lost its inde¬
all groups in our economy.
:
' Son on November 30th.
thinking like this will direct the
a
is
large/
that®—
tion's
With
Luitweiler
Ruhfel
OF
this
object would be achieved and
would be productive of consequences gravely-
Mr. Spinney further stated
to control of
;.'.
PART
CUSTOMERS.
and
Hopkinson, special
Hackney
a
detrimental to the community at
denied, for
Sutphen,: New York City, be¬
Relations
us
Edgar
partners : in
the ablest
Let
THE
GOOD
ence.
;
ber 24th/
Tenri.
'V'v''."
I
:.:
are
UPON
A
DO
requirements of
weekly firm changes:
came,
DR. ROY L. GARIS
TO
cumstances
The New York Stock Exchange
the
gain
convincing
loss to understand what good
a
mental
Exchange
Weekly Firm Changes
has ; /announced
and
in
success
financial
tem
N. Y. Stock
&1
"Earnings "Per Wage-Earner."
campaign
DESIRE
said that such a
The cost of
day examination.
;
relationship
don't have
you
you can
In discussing the subject of nationalization of the Canadian bank¬
ing system, George S. Spinney, President of the Bank of Montreal,
told the recent annual meeting of/stockholders of the bank that he
in
the
way.
Banking Discussed
By Spinney—Opposes Monopoly Under Govt.
the books may be had for a five-
during
way,
this
done
be
can
ONCE THEY ARE
and
nationalism
this
really help him and that your
welfare, then one more try is
by the salesman/ If all the different
properly planned and IF THERE IS A
firm
blocked
'30's," and his increased personal
prestige in Washington suggests
securities
them
sell
so many
investor
real
a
barriers
of
can
If
twenty-second
of publication).
buy
yotff prospective client that
sition and, strategy, gives leads on
problems,
can
they
Nationalization Of Canadian
15 East 26th
specific
they
think
customer—or you will not.
channels
eco¬
/.
ready, the sales¬
are
people still have financial belly-aches.
During this office interview you will either lay the foundation
trade
by
Y
.
is
investors
many
trade
opening
customer
your
If
many
ponents
labor
(2) Being skeptical of omissions,
I'm wondering why he so consist¬
ently stuck to the years 1920-1923,
and
the volumes is fifteen dollars and
J
get my
reactions quicker by the questions
this .rather thought-provoking ar¬
ticle arouses:
(1) Why did the
you
theless,
pathy with a tariff policy directed
toward a gradual elimination of
duction
Baltimore, Md.
.the
well
nection, too, while he
GEORGE H. BEALL, JR.
A
as
exports
her
expand
respects
of
fortunately, accept.
;
to
FOR
of the
exceptional
Street, New York 10,
more competitive.
England; with N. Y., will be ready for distribu¬
a short term foreign indebtedness
tion this month, it is ainnounced.
of at least one billion pounds ster¬ This /fup-to-the-minute
m a n u al
ling, will after the war compete helps determine company tax po¬
nomic
Inc.
I found Dr. Anderson's views to
,
prestige
interview.
DEALER
Montgomery's Federal Taxes on
States,
which are largely, complementary; Corporations
1943-44,
published
trade relations between England by The Ronald Press Company,
in world markets
offer to investors.
can
should then bring the customer into the office. This interview
should be held after he has prepared the way by
building up the
United
the
you
SOMETHING
SOMETHING.
going to do the job.
SINCERE
trade relations: between
and
market, realizes that it
just cannot be done without suici¬
dal delay and expense.
There is already acute disequi¬
librium
between
property
and
tuating
objectives that
DOING
HIM
sentative to call in person.
The salesman should follow up these
inquiries and whenever possible BRING IN THE LISTS FOR AN¬
ALYSIS.
It' is always
better salesmanship for the salesman to
explain to the customer that his holdings are going to be analyzed
by AN EXPERT than for him to leave the impression that he was
steps of this
,
the
SELLING
First, you can increase
security without sacrifice Qf income. Secondly, you can increase
income without sacrifice of security. Or you can
suggest variations
of these offers to assist your clients in
getting more out of their
investments—such as, increase in marketability (if analysis indi¬
cates it is advisable), or increase in flexibility of
holdings as to
more proper
diversification, etc.
If you have some one in your organization who is good at
office interviews an exceptional opportunity for
using this approach
to new customers is presented. Such a plan would entail as a first
step, the preparation of a good mailing list. Secondly, several well
prepared pre-approach mailings, descriptive of the analytical ser¬
vice, assistance, and advice which you are offering, should be sent
to the entire list.
The mailing should be designed to bring in
inquiries for further information and requests for the firm's repre¬
merchant fleet.
says,
the
After
during
which Russia will largely exhaust
her
liquid assets, she will seek
medium term credits from export
nations while her own export in¬
dustries are recovering^
t
: ri
or
and the United States will be much:
than
rather
of
upon
,
criminal machinery
SEC, I have al¬
ways been in accord with.
Any¬
body who has tried to put a small
issue through the SEC, in a fluc¬
the
through
instead
main
two
are
based
are
.
contribution,
way
industrial
some
from
Lend-lease exports front
war:
first
HENRY
upon
reparations
There
Both
After the list
program.
New mer¬
vessels
constructed
will
chant
1944-
and
over
tionship.
person in the office who is to conduct the office
properly handled, thisris the time when the customer's
confidence is really cultivated. A sincere investigation of the-in¬
vestor's individual requirements IS THEN CALLED FOR.
After
nil, selling securities is almost on a par with selling medical advice.
One
concerns
physical health, the other financial health.
You
wouldn't think of going to a doctor and buying a handful of pink
pills just because you thought you needed some medicine. Never¬
many
hand
one
control
Portfolio analysis is one of the most effective methods of cre¬
ating business. If properly presented by the sales department, an
offer of constructive assistance to the investor can provide the
basis for the most satisfactory and lasting type of customer rela¬
WAR SERVICE predicts a gradual
than a steep decline in
com¬
United States and England on the
other will occur despite Russian
close
European
.
Business
forecasting trends in the
shipbuilding industry the POST¬
between
development of
plementary trade
in
industries
ing all the recent trying times.
''Chronicle" for, many years
that you have con¬
your
and glad to see
Way To Build Up An Investment
man
America's
coun¬
interested
In
dustrial
imports from these two
of
sistently fought for the right dur¬
I have read
good country of ours.
A Tried And True
their foreign trade.
rather
war
governments
domestic
up
sia's dependence upon the UnitedStates and Great Britain for in¬
imports, and particularly
imports of machinery, will result
in shipments far exceeding pre¬
the
Russia
"This scheme," he
"implies a greater purchas¬
ing or chartering of American
this country to Russia will be su¬ vessels by foreign nations than
the:
American shippers now con¬
perseded by regular commercial
transactions
; ■
'
.•
: '
shortly'
after
the ceive.": /
this
in
economic' condition
able
The Securities Salesman7s Corner
TIONAL POST-WAR SERVICE devotes several pages to an analysis
words, his
proposals are entirely construc¬
tive, and not destructive.
It
Foreign Trade
Predicting a two-year boom in foreign trade based largely on
Lend-Lease procedures and 'financed by foreign governments and
the accumulation of exchange the current issue of the INTERNA¬
2539
opposed to the'
con¬
su¬
not only in the field of leg¬
islative
powers
and
responsibili¬
ties,
but in the spheres of busi¬
ness,
industry and finance
This
would
inevitably
as
well.
mean
the
domination by the central author¬
ity of all
or
bodies
private which
course
whether
must
public
have
to credit facilities.
re¬
$400,000,000,000 worth
outstanding! but the,
had roughly
Some Comments
Palyi's Study
oi Inflation Prospects
on
article, "Outsmarting Inflation," which, appeared in our
Nov. 18, Dr. Melchoir Palyi of Chicago warned that the
dishoarding" of the cash reserves now being accumulated
such tremendous volume constitutes the "real danger" to the
his
In
of
issue
"future
in
economic
nation's
large
or a
income"
will
the
of
danger
interested in knowing how
held
in¬
price on gold, then it would seem
advisable to buy gold shares
to me
appli¬
the
by
especially shares in those
companies which have large un¬
now,
of "or¬
meth¬
thodox
be
follows:
would
the mass-
pocket that carries the excess;"
and by stimulating permanent in¬
order
prevent
to
money
demand."
live
Palyi's
Dr.
to
reference
With
of the subject of his
several letters have been
analysis
paper,
by the "Chronicle"
received
and
given herewith:
are
of
government bonds in
the "surplus'
from turning "into effec- !
vestment in
facts
face
"To
must
we
first
with the assertion made
by Dr. Melchior Palyi in the final
sentence of his article, "OutsmartI agree
Inflation," namely, "For a
democracy, it is fundamental that
it should be able and willing to
ing
face the naked facts.
.
importance to war¬
time savings in his consideration
of inflation, but nobody
hove)
The
how
impressed
that
thing
one
the clar-
exposition.
However,- it
to me that simply
^
°Jwould
seem
Palyi's title most
of Dr.
article
the
economics might be
mostly ■ theoretical and of little
value to the piactical business
I know in
a
own
my
man.
case
I
telt that way until completing the
I realized that
and then
article,
this
information
that
we
is
the
of
type
all should read carefully
thoroughly.
and consider
present time we have
established an' advisory unit
the
At
now
d p0S^_war adjustments
policy> estabgshed by theJ Govern_
war
widely distributed
,
ings are, and until such knowledg
ment under the head of Bernard
is gamed a complete understand-,
Ba
h
Certainl
Mr_ Baruch is
11;
la capable
achieved, far less can any effort
to solve' the problem be success¬
ful.
gainfully employed
every member or
nearly every member is now a
wage earner, and
(2) entrepre¬
neurs
now
working in the main
two
and
of
were
which
Government contracts.
on
Certainly crude guessing of this
is of little value and what
is called for is a survey to change
type
of the dis¬
of war-time savings into
the unknown quantity
tribution
a
known
one.
such
takes
a
head 'this organization.
basically some of the
problems of post-war policy cannot
be
intelligently understood
until we thoroughly understand
the inflation problem
which is
ever present today.
ity
to
However,
I, too, might-venture a guess regarding the distribution of war¬
time
savings, namely, that the
bulk of the staggering total is di¬
vided (but how?) between these
groups:
(1) families of several
adults in which formerly only one
or
man and none of us
question his practical abil¬
would
a
Whoever
-
under¬
will render
survey
greater service to business men
and others concerned with Amer¬
ica's future welfare than any ever
intelligent analyst of inflation
at the present time.
so
can
'
Wood
H.
PERL.
Ridge, N. J., Nov. 24,1943.
After
reading Dr. Palyi's re¬
marks, I am a little at sea as to
what his definite plan might be.
I would compare
the situation, in
with that of a ;surgeon^whom I knew who had a
malignancy on his finger. Realiz'ng the situation he immediately
had his finger removed, but after
small
a
Financial
&
In
the
"Chronicle" last week I
the arti¬
read with great pleasure
he
found
this to be insufficient and had the
removed.
hand
later, he
had the arm removed, first at the
elbow and then at the shoulder,
but that
Then,
failing, he passed away.
there is
this matter
In
some
dif¬
of
ference
opinion,
but
some
qualified men insist that if you
face facts squarely and if in this
case
the
had
arm
been
removed
at the shoulder
immediately, that
would
have been alive
Palyi sums up
surgeon
After
Dr.
situation
he
we
Chronicle:
time
months'
several
'oday.
Editor, .Commercial
way,
I
wonder
whether
should face facts squarely,
and
admitting the
situation is ex¬
treme, as Dr. Palyi points out, it
vould seem to me that the least
I
^zardous procedure would be to
thought Dr. Palyi's article wrs
certamly very true and covered! -Omit some type of inflation and
Cer¬
the .situation, and I agreed with devalue the dollar again.
cle
on
inflation
by
Dr.
Palyi.
practically everything he said.
However, there was one point, for
instance, that was not clear to me.
Dr.
that,
Palyi
free
made
gold
the
could
statement
be
bought
with American dollars in Bombay
and
Buenos
Aires
at
approxi¬
mately $60 per ounce. While I did
not
question this figure, yet I am
tainly
tion
none
of
and would
procedure only
In
this
us
like this situa¬
want to
as a
article
use
that
last resort.
it
is
clearly
out that the purchasing
power of the American public has
never been equalled at any time
in history in any other country.
Back in the early 1920s Germany
pointed
Thursday, December 23,1943
Outlines;Industry's Economic Planning; Program
purchasing power was simply not
(Continued frof¥r
have some
when we
Now
there.
is
far
at
doubt
or
so
no
situation
problematical!
long that
hold out is
can
would
It
to be
that
me
the
with Germany is
war
certainly
army;
article
this
the
ployment
with
ments
can
continue
there
crept
is
up
full
as
result
a
of
the
European
pint at a time,
a
The
tax
after the
Far
in"
closing of the war in the
East, depending, of course,
upon how long that took.
How¬
tion that
De
inflation,
edicts
Government
for
tions
It
economy
ends.
we
be
for
the
laws
were
of
purpose
written
making
pri¬
/. ' \
no
Because
■/.
•
have
corporations
a
politically
sopiless
status
and
don't vote, there seems to be no
of our daily lives or if we ask that
all of these Government regula-! public conscience as to how heav¬
tions be removed, then certainly ily they're taxed.- Let us not for¬
that back of the corpora¬
nflation can be only a short step get
tions are frugal-minded citizens—
around the corner. We have come
stockholders.
When corporations
through a'- ten-year1'period now,
are
taxed. 80%, real people are
laying the foundation for a- bad
taxed
80%, and then for good
inflation, if not a disastrous one.
measure "those
some
people are
Certainly none of Us can doubt
taxed
again on the remaining
that this started at the moment
Government
regulation
„
Certainly when bonds;
in
payable
fine
outlawed
were
of
gold
and
were
ounces
as
payable
of
all
down
distance
this
fair
in
question of what to do with the
situation we already have thrust
are
prey
but
upon us.
particular subject is
praise
high
your
poor,
and
more
deserving of.
certainly with
comment,; from
and
divi¬
stockholders
the
more
plus the 20%
the
sources,
of this country.
what¬
dividends.
rich
would-be
—-
Management-Labor
The
is not the real victim of
cor¬
of in¬
of
out
With
high-priced
Government
rising unit labor costs, that's
going
be
to
formula
tough
a
to
maintain.
How
can we
do it?
•
Not by lowering wage ratess
that would reduce the
be¬
cause
of
come
consumers
markets.
our
and
in¬
damage
!•■
Not by reducing
the rewards for
investment, because
and
saving
that would choke the flow of capi¬
tal
;
and
expansion.
Not by limiting the rewards of
business
enterprise,/ because that
would restrict the
important func¬
tion of creating new jobs and pro¬
viding wealth for all.
How then are prices to be re¬
duced?
and labor."
Labor
collectors
definitely get
just the walleted
every last one of us.
are really just
tax
not
from
their
are
a*
customers
cost of doing
makes
to
tribution
when
own
it
a
its
primary
Better
recognizes
that
welfare demands
an
con¬
America
Labor's
increas¬
ing output of industry and never
lower output.
Labor as producer
through more wages for
work.
Labor, too, as con¬
benefits
more
sumer
all of us—does very
we
One of the things
formula
time-tested
is, better articles cheaper for more
people.
That consumer—which includes
-
Cooperation
which our high
standard of living has been built
a
or
poration taxes, at all.
like to know is the! because taxes
that I would
as
on
stockholder,
should get soaked—and
some ideas that would help us in! wealthy, but
planning a post-war period worthy Corporations
various
the
of
We have a question¬
naire system that saps his time
and
talent, and makes him the
.
of
they get
But
that
me
of inviting comment on this
idea
80%
ever
(seem to
only
individual
One-third
a
as
are in the less than $5,000 income
short period of time. Certainly, as:
bracket.
Dr. Palyi states, we can't outsmart
The third is being taxes, not the
inflation. Now then, it is simply a
20% the withholding tax calls for,
It would
the
not
assumption is that all stock¬
holders
then
paper,
re¬
a
Simply by an increase in
productive efficiency.
More production requires an in¬
rich — and therefore creased
measure
of
cooperation
of
the sock-the-rich between management and labor
:1
which
brings me to the third
stockholders are not
necessity of post-war — "Better
' -;y. •
(
" teamwork -between management
dends.
The
distributed
is
at
that time we took the first step boys.
But
all
and we have come a long way.,
Needless to say, we can't back wealthy.
only
in
such
that
20%
the gold
that the dollar went off
standard.
head
the
over
and
.
tax
the
job.
alternative; either we must
this
face
the
in
be
enterpriser.
vate enterprise unworkable, they
regula-;
couldn't do a
more
devastating
can
is
taxation
dustry
before they can
more produc¬
away
.
If
countless!
and
there
that
war
points
is that profits are
long period of time?
a
seems
other
tion.
If
are
would
brake on investment in job-sup¬
plying and wealth-creating capi¬
tal equipment, We have a Securi¬
ties Act that hangs as a' sword
became the seed for
want inflation here?
want
our
being taxed
another ques¬
willing to suffer under
the
soon as
as
One of the great danger
in
then
have to face.
we
we
don't
we
over
business
to
taxes.
.
Going "all out" for war
does not require that we be "all
all
But
of
—
ment.
probably continue until some time
ever, when that is
there will come up
duction
centive should be left for invest¬
would
conditions
some
donors;
recovers.
stimulating thing that
happen
aren't so far-sighted. "tired
and
mired
business
They try to take it all at once. man." We have a Labor Relations
And if they succeed, there isn't Act that
gives the workers a club
any donor left.:;
and
goads them into using it
Of course, we know that high
against any one who dares to go
taxes are necessary during war. into business and furnish
jobs and
But even during war, some in¬ useful
goods.
i /■/. '•
of war,
deflationary
encour¬
use
blood
revenue?
more
The most
collectors
theater
then we can look for this
deflation, but I doubt whether it
will be radical, and certainly such
the
of
the donor
and
production and full
let-down
a
closing
their
they.take only
employment, but the minute there
is
The doctors
with
sense
long as
as
structure
Investment; is
sideration?
Costs have
up
and will
creep
ment
post-war period
all the
the life
blood of economic progress. Then,
why not treat it with a Tittle con¬
profits?:
program.
to
Structure
Tax
all the risks, and absorbs
a
that the same argu¬
used against a full
undoubtedly
business, and result in not onlyjobs but a greater volume
Of business upon which even a
lower rate will give the Govern¬
more
investment, when-it increases
age
be
production
Of
Does your tax
-
full em¬
j and I think
program,
along
the
to
could
been
have
we
fallacy Of
and invest it?
us,
Revision
tionary period, but how'far such
deflation can go would be any¬
one's guess.
"
occurred
ever
of
borrow it away
or
Is Gov¬
people/?
Why can't we do our own invest¬
ing?
We used to be players in
this game—not just kibitzers.
some
realism, but has it
ernment to tax
ernment smarter than its
cancelled, and there may even be
a period of partial unemployment.
There should and will be a defla¬
In
we
taxing agencies and" Con¬
gress that lower tax rates on busi¬
ness will lead to a larger volume
from
materials will be
orders for army
shown
of that 120 billions
supposed to have in our hip
pockets.
But, doesn't that belong
to us?
What right has the Gov¬
are
as
liquidated, there will be a defla¬
tionary period in this country. Cer¬
tainly some men will be released
from
some
.
to
seem
the
as
soon
.
fear of the value of a
How
dollar.
,
has been
least there
2536)
page
capital expansion?
What funds, I duction ! drops employment falls
ask you?
;
The Government can't off.
But the war has got to be paid
spend that 300 billion dollar debt
—that
will
already
be
spent. for, and high priced Government
Where can the Government get must live in its accustomed style
funds
for
investment?
Only if it has to borrow money to do so.
from you and me.
It will have
Forgive me for such practical
$200,000,000,000 purchasing power
outstanding the situation is dif¬
ferent, but it seems, to me1 only
different in this respect, and that
would probably
with a biased
readers
your
opinion. They would simply have
j the feeling that such an article by
great
^knows
these sav-
markets
three
or
about this article was
me
.
(quite justly, I be¬
He attaches
countries?
read
them."
know
two
these
in
it possible that
Dr. Palyi mentioned gold brings a
higher
price simply because of un¬
usual situations in those particular
of
Chronicle:
to me
Is not
gold.
because
Editor, the Commercial and
Financial
seem
lars) in that market, it would be
on some other basis than
that of
inflation of the dollar or scarcity
n g
taxes which "reach into
Aires, yet it
that if free gold
Buenos
priced at $60 (American dol¬
were
Dr. Melchior Palyi
chasing power
i
in
ation
pur¬
e v y
on
do not know the situ¬
I
While
expenditures;
absorption o f
1
than
reserves
management alone.
extravagant
b y
advantageous to rely on
more
underground
elimination of
excess
I
that
latter, he list¬
as
reserves of gold.
By
would mean that it would
derground
These
ods."
If the figure Dr. Palyi
named- was the free market
has
be
accomplished
cation
this
at
per ounce.
this
that
only
can
he ar¬
amount.
Certainly
we
all know that the .Canadian
sold mines can produce gold and
are well satisfied to sell it at $35
rived
and
flation
currency
<£>•
cur-
alleviate
represents the essence of the
neither "full employment
and
national
t
ren
equilibrium
of
Dr. Palyi contended that
inflation problem.
ed
FINANCIAL CHRONICLE
THE COMMERCIAL &
2540
,
benefits' by lower prices. this it follows that any
From
labor
policy which interferes with
cooperation for full produc¬
tion is in the long run inimical
full
to
Labor's
own
strives
to
interests.
It is
a
policy which
limit output, which re¬
short-sighted
labor
sorts to slow down tactics, or to
organization
that - Mr. • business—Government renegotiaBaruch will: build up and whether tors to the contrary, notwithstand¬ featherbedding rules that call for
the employment of more than a
ing, however, fcjut.
:
or not he has had the help of such
a capable advisor as Dr. Palyi.
So John Q. Public, in the role job requires, or stresses the rights
of seniority insead of promotion
In the same paper in Which I: of consumer, pays most of the cor¬
for merit.
read this article there appears one porate taxes in higher prices.
Labor is not exempt from the
by Walter Gifford, the title of
High prices hold sales down and
rule that any one contributor to
which starts out "Attainment of when sales are held down, pro¬
the production process who sets
Freedom From Want."
While Mr,, duction is lower, and when proout to grab more than1 his proper
Gifford is undoubtedly one of the!
share thereby hampers jiinduction
leaders in industry, yet the simple1
and
so
ultimately becomes his
outsmarting inflation is soluable
of
type
fact? that he writes
der
that
title
an
bears
article
out
im-.
what
is
commonly thought today and that
is
that
such
is
there
a
condition
and
that
all
we
have to
do is-to
get the best brains and put them
to work. < Common sense teaches
own
enemy.-
Shortsighted Manufacturer
But
how
about
short-sighted
country that attainment of us that inflation is a practical
and
that. freedom, from management? That's possible too,
freedom from want is possible. If; hazard
want is unattainable, and on that isn't it?
we start with that basis that free¬
in
our
dom from want is
attainable, then
Dr.
Palyi are
somewhat beside the point. If any
remarks
the
of
us
Utopia
must
can
in
of
vision
this
admit
a
condition
country,
that
then
the problem
of
we;
of
appreciate
in your
with reference to the proper
basis I would certainly
reading
paper
further remarks
plan to be pursued.
C. P. WILLCOX.
Columbus, Ohio, Nov.'23, 1943.
Too true!
But there'd better not be any
in
the critical days that lie ahead.
Short-sighted
—and
management
somet^es
make its
"
ha"—tried
can
to
profits by short-changing
VolUriie 158
\
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4240
it$ workers;. .That' just won't: do! pf these laws in various direc¬
Any; time; wages fall below what tions, and as far as may be fea¬
the workers produce markets dry sible.
When
that management
is offering a plan for competitive
enterprise we mean just that—no
monopolies, no fixing of prices.
We. want all the competition we
we
say
get.
can
money.
sible
for
We want free and open mar¬
kets—no special privileges and no
must
mon
fully
competitive
business
Dealer
do
make
not
Both Actions
Encouraging Venture Capital And Pro¬
viding Jobs For Returning Soldiers. Believes SEC
Could Be Popular Governmental Agency And The
Daddy Of Free Enterprise
too
man
'•> BY AN
Man, but we don't want him
to age too fast or get too common,
One
of
Freedom of Enterprise
Freedom within the law—indi¬
j
vidual and economic—is the fifth
put
its
plank in
our program
America.
house in order, and by the char¬
acter and spirit of its labor pol¬
icies create a relationship with its
employees which is built On mu¬
tual respect and
goodwill.
bargaining is
entered into, it should be carried
on
in good faith.
;
|
;
Sound
employment
relations
policies should be adopted and ad- j
ministered fairly, uniformly, and,
without discrimination through¬
out the entire organization.
We'd better realize, also, that
we have some, social responsibili¬
ties.
If it's going to be left to us
collective
to, control the forces of produc¬
tion, we'd better control them so
that they are kept!, busy in the
,
for a better
•
the
in
Nowhere
direct
for
a
shall
be
produced,
subsidize
either
run
and
or
little
float
an
fellow
issue
build
garage,
make
can
job for themselves, is practically
stymied before he starts, as it's
the
produc¬
next to impossible for a small man
tiveness or the unproductiveness
to get a deal through the SEC un¬
of any individual—no authority
he
less
to decide who shall consume what
afford
can
obtain
to
the
type of counsel, which is expen¬
produce — to
undertake
"economic planning" which sub¬ sive, that knows how to get a deal
through the SEC.
others
stitutes/compulsion for individual
freedom—to
ment
make
the
the
After
small
gets his
deal through the SEC he has to
Govern¬
responsible for the economic
Department
of
Member
change suggested to member firms
on Dec. 7 that
they make provitheir partnership articles
for meeting the problems which,
might arise where one of its part¬
ners (whether an Exchange mem¬
ber or an allied member) in the'
war
service may be reported as
"missing" with the consequent
sion in
|
If the SEC would see that just
those two obstacles were removed
man
sell
not he is alive.
or
as
It
to
was
pointed out that the inclusion of
such provisions is not a require¬
of
ment
the
adoption
Exchange and their
solely in the dis¬
rests
cretion of the partners of the firm.
The Exchange in its advices to
members adds:
Recently,
;
the
Exchange
has
considered various aspects of. the
vertise
and
circularize without problems which might arise in
first delivering a prospectus, there those instances where a partner
manufacturing that is, exempt issues up to $1,canning factory so he 000,000 and allow a dealer to ad¬
a
few of his buddies
a
who
to
a
how, or by whom—no authority
to
to
plant or a
Federal Government to dic¬
what
tate
the
that
and
The
Firms of the New York Stock Ex¬
lack'of definite information
way to
to do this is to exempt all new security issues uo to and
including
$1,000,000 from registration with the SEC. Also the SEC should see
that the necessary is done so that dealers can
again advertise aqd cir¬
cularize without prior delivery of a
prospectus.
The SEC probably doesn't real—
—■—' '■
■■
wants
authority
implied
or
ANONYMOUS DEALER IN SECURITIES
Reported
Missing in Action
employ our returning soldiers is to create lots
businesses,. corporations, ventures, etc., and the simplest way whether
new
ize
American
scheme of things do we find find
any
sure
,
■
must
too
Advocates
Exemption Of All Issues Up To
$1,000,000 From Registration And Lifting Restrictions
On Advertising And Circularizing New Issues. Sees
by stripping him of his
dignity, throttling his ambitions
and robbing him of his future.
We all want the age of the Com¬
stricted markets.
Where
to take
without
for his sins," let's be
pay
we
.tem,. *; v
Price
Management
produce
NYSE Advises Firms
8n Partners
Employment
common,
sys-
rigging
always
means
small
markets, and
enterprise
does not fully succeed with re-
enough
to
of the unproductive
the
of
advocate
produc¬
care
special protection.
Management can't go down to
Washington
seeking
regulatory
laws for his competitor or pricefixing for his industy and still be
an
are
tive
sure
considered
who
those
impovershing themselves.
In this coming century'of the
Common
Man, when "all men
are paid for existing and no man
-
-
costs
The SEC And Post-War
not forget that it
Let's make it pos¬
let's
Only,
up and management is left holdr
ing the sack of unsold inventories.
2541
would be thousands of
tures financed and each
create
ven¬
new
one
would
employment for dozens of
the returning soldiers.
Most all the big corporations to¬
day
originally; financed by
promoters
or
groups
of small
security dealers who made from
25% to 50% profit, and if the
profit opportunity had not been
were
.in
the
ing.^
is reported
service
"miss¬
In this connection,-4he fol¬
lowing policies have been deter¬
mined upon:
(1) The Exchange will, in the
computation of the net capital of
member firm, allow the capital
of a "missing" partner
a
interest
after the
date
when
he
was
de¬
clared
"missing," provided the
there for them they would not partnership articles contain pro¬
Freedom
of
enterprise,
and
visions to the effect (a) that re¬
have
handled
the
issue
and
those
other American liberties
which
small dealer and the small dealer big corporations would not exist ceipt of official notice of "miss¬
cannot
survive without
it, are
must have a large profit as his today.
ing" in the absence of actual
■
being threatened by control and
sales are few and far between un¬
Security dealers are no differ¬ knowledge of the partner's death,,
restriction
by uncontrolled and
it, and unless it's a blue chip
deal the only security dealer he
can get to handle his issue is the
welfare of individuals.
,
service, of the American people.
Keeping the wheels turning when
it happens to suit us, won't be !
quite enough.
We'd better keep'
less he
unrestricted bureaucrats.
advertise and circular¬
can
ent
than
of
owners
department
shall not be construed
as
notice of
ize
to
They and all other mer¬ death, and (b) that in any event,
bring
the
deal
before stores.
through
strangers who are willing to take chants want to sell the best mer¬ his capital shall remain at the risk
them turning all the time. Amer- jobs, freedom and opportunity,
chandise
that
gives
the
most of the business following the ac¬
not through restrictions and con¬ a gamble. ^
ica isn't going to be run for the
Every small securities dealer profit, whether it's paper or fur¬ tual date of his death at least un¬
trols.
'
\
This country grew great
,
•
:
benefit of business.
ter
business
run
We had bet¬
for
the
benefit
of America.
If
is
there
any
benefit in
in¬
dustry, Government should recog¬
nize it too.
''
;
The great
uncertainty—the fear
uppermost in the minds of man¬
agers, investors, workers, all of us
—is what Will be the post-war at¬
titude of Government toward pri¬
enterprise.
vate
give
more
Nothing
private
—which
;
fettered
encouragement—noth¬
a
full
seek
to
his
and
for
philosophy
which made this country great.
believe that
eco¬
ad¬
order to
issue
that will
put
any
buy,
deal or
thousands of in¬
over,
deal—and the only way that can
offers
an
same
full
and
—which offers, freedom—which
freedom to fail as well
freedom to succeed.
In
a
free
ling
load
of
business.
lines:
from
bureaucracy
'
<
Remember
Kipling's
famous
-'""v ;■
/
,
best
not
in
curity
that
destroy
sound
wishful
our
se¬
thinking
about "freedom from want."
We
who,
own,
their
as
productive
not
should
been
of
legislating
.a
basis for the fu¬
ture.
Each
Congressman wants
the -viewpoint of the manufactur¬
ers in his district.
None of them
realize, thai there are those
through no fault of their want to hinder; all want to help
are unable to provide for employment. But they're depend¬
own ? needs,
In a country ent upon you to advise fairly and
should
any
a
sis i America, they
have to; suffer.
American
useful
and
Nor
who has
productive
member of the community dur¬
ing his active years have to look
forward to an old age of poverty
or
"Nations
pauperism.
The NAM is
on
record
as
fav¬
whether
or
not
The security
(2) In the event the sole Ex¬
change member of a member firm
is
passed
and
away
:
.
And
history
gives
the
naked
of it-
cause
One
single, simple
cases;
•
reason
in all
■
They fell because their' people
not fit."
were
You
of
men
*"t.
America is
fit.
,
interest,
distribute
then
deliver
issues
proven
fit, its people
are
at
small'cost.'
Eighty per cent of all the secur¬
ity dealers in the country are
small dealers, and for the good of
the country, our
returning soldiers
themselves, these small
dealers should be spending their
and
time
for
Chile Extends Debt Pact'
another"
A decree extending for
three years the payment of
845,000
the
due
loan
made
Government
in
$11,City
National
Bank of New York
000
on
and
a
$15,900,-
the
Chilean
on
to
1931.
was
signed
Dec. 11 by President Juan An¬
promoting new
tonio Rios of Chile. In Associated
issues of new enterprises that will
Press advices from Santiago it was
keep the wheels of industry turn¬
further reported;
ing. The SEC has a grand chance
to
come
money
to
the
and
front
relax
rules and regulations so as to help
Otherwise
this kind of business.
management
a
slowly but surely the big invest¬
The
decree
the
authorized
Chilean Treasury to issue internal
debt bonds to
493,000
pesos
an
amount of
7®,-
(about $2,300,000) to
are
ment, banking firms and the big
corporations will be the only ones
not be
smooth-tongued wizards,, but you
have experience and accomplish¬
ment and the people's faith on
your side.
With manufacturers everywhere
stirred and inspired through this
program,
there is no cause for
pessimism, negativism or defeat-
left to finance the new ideas and
obligations.
inventions, which means they will
eventually control everything and
the rich yrill just get richer and
bondholder has the option to ex¬
■
You
men
of affairs may
the
will
poor
stay
poor
if
not
be
used for
conversion
of
•
dollar
Under its terms any
change dollar bonds for Chilean
Treasury bonds. The Chilean bond
draws 7% interest and 1% cumul¬
poorer.
The SEC could easily be the ative amortization annually. The
"daddy" of free enterprise by as¬ present exchange rate of the peso
sisting in the establishment of is 30 to the dollar.
isih in this nation.
frequently with thfem, not just in
new
ventures and assuming the
opposition but wi$h plus sugges¬ ; ;!J£he NAM's program for a Bet¬ attitude that they arc glad to see
tions.
v
ter'America in your hands can a new corporation formed with the dealer's problems. The bank¬
cause a vibrant resurgence of faith
One of the prime purposes of
the hope that it will cause em¬
ers,
brokers, dealers, directors,
this Better America program is to and progress in America.
ployment and contribute to the
etc., are the people that talk to
Because
it
is
founded
on
the
wealth of this country-.
inspire and equip management
the public about the SEC, and
with
a
specific and corrective ideals of the American people, in¬
The FHA has cooperated with
viewooint.
they could and would talk favor¬
The
program
goes dustry's agenda for post-war is every
bank*
builder and con¬
definitely into what to do to cor¬ good; it will appeal to the innate tractor, and amongst the general ably if the SEC would put the
existing Social
Security rect the legislative hindrances to
laws, with a closer approach to capital formation; on how to get
soundness in their financial set¬ revenue
without
killing enter¬
up.
And we are on record in prise; on how to help labor with¬
favor .of' extending the benefits out sponsoring class
conflict; on
oring
have
left no traces.
we
Because
minds
own
tomer's
and
how to lift the confusing and stif¬
Pennant awards in the hard work
of turning the successes of our
have available to divide.
arms into real victory.
But it's an
then,
if
nobody
has
enough we will have to get out essential,part of the victory job!
You can't afford to be any more
the lash and compel production
under compulsory methods.
The laggard in the unsung battles of
basis
of
personal
security
in peace than you were in the more
America
in the past has been spectacular waging of war.
Congress most seriously needs
personal productivity and indi¬
vidual self-reliance.
And we had your help in the stupendous task
ity
,
their
they want to buy.
,
reduce the total amount of secur¬
actual
reported "missing," the Ex¬
change will permit the firm to
continue, provided the partner¬
prospectus before the passing of ship articles of the firm contain
ity—price—and where prospectus money so the customer will know the provisions required by Section
can
be
obtained
is
a
"killer- what he is buying, which is no 5 of Article XI of the Constitu¬
It is a physical tion of the Exchange to enable
diller."
Under those conditions more than fair.
you can only use what dealers call and financial impossibility to de¬ the Surviving partners of a de¬
a
ceased member to apply for per¬
"cemetery advertisement"
or liver a prospectus before a dealer
mission to continue as a member
circular, and no one has ever, been advertises or circular) zes. ;
able to create any interest or do
The big Wall Street underwrit¬ firm, and such application ,is made
any business with those unless it ing houses or the banks are in no and approved by the Exchange at
is the kind of a security banks and position to furnish capital for new the time notice of "missing" is'
insurance
companies
buy,, and ventures—they do the refinancing received.
then no advertising is needed.
and make and support markets
and
Se¬
success
can
never
be
curity—the fourth point in our system,
post-war
program—is a
prime guaranteed. But in no other sys¬
tem is it worth the having.
and natural human objective.
Post-war recovery is an eco¬
It is not promises; it is real
nomic job.
You gentlemen of in¬
things that can come only from
real production.
Social security dustry are the practical, firsthanded,
bench-made
economists
programs don't increase the total
of this country.
And you must be
amount
of
security—they only
economic statesmen, too.
monkey with the way it is di¬
There wop't be any bands play¬
vided up.
In such tampering, we
had better be sure that we do not ing, or any flags flying, or any E
receipt of official notice or
knowledge of his death,
and, if so desired, for a specified
ers in to look at the merchandise
period following receipt of such
and then the customers make up 'notice or knowledge.
department store runs at¬
tractive ads to bring the custom¬
business should be given the same
free hand—that is, get the cus¬
make it possible for, a dealer,:-only
to mention the name of the secur¬
time mutually
establishes
til
.
The
larize; but provisions in the Se¬
curities Act and the SEC rules, that
economic
self-interest,
by
all at the
niture.
be done is to advertise and circu¬
.
includes
as
nomic security is attainable.
a
cooperation • between
industry, agriculture, labor and
all other productive groups;
Working for Security
men
Un¬
interdependent;
—which
in
vestors must be contacted to find
order which effectively1 combines
the two basic facts that we are all
are
a
but
the few that will be interested in
vancement;
—which
few friends
has
new
every
own
Washington to the voluntary
enterprise
Business
offers
opportunity
American
could motivated
ing could build greater confidence
for the future—than a forthright
rededication by
Freedom is both the Alpha and
Omega of this program, which of¬
fers full employment for employ¬
ables at steady wages;
common
What
mon
never
used
sense
we
sense.
failed
it.
of all Americans.
need is an age
Common
us
of
sense
com¬
has
yet when we've
public it has an excellent reputa¬
tion
as
agency.
a
valuable
The SEC
same''reputation
if
Government
can
have the ]
and realize there must
business formed
a
new
wouMJday to take
every
care of the ones that
thought to go out each day.
th^v
only give a little more
club away
be
Thursday, December 23, 1943
THE COMMERCIAL & FINANCIAL CHRONICLE
2542
•
Economic Problems
Al War's End
expect to
have full employment."
Prof. Schmidt pointed out that
"if conditions for profits on exist¬
ing investments are not favorable,
obviously we cannot expect any
make
to
one
investments."
new
by several hun¬
dreds per cent.
The same is true
of many other lines. Incomes have
been lifted by the war but the
increases have affected different
capacity
their
people differently. , Wages have
risen enormously in many lines of
"Therefore," he said, "we must work, while in others they have
remained almost constant.
At the
create the political and social en¬
vironment
which
will lead
to end of the war all these structural
profit expectations—first, in order changes in the economy and in
Again to
to
put to use our existing re¬ prices will plague* us.
repeat, the short-lived replace¬
sources, and second, to create new
ment boom is apt to lull us into
investment to job-creating facili¬
a feeling that we have safely tra¬
ties."
signifi-
any
cant
group wants it but because
unwittingly do those things
which
make dictatorship
inevi¬
we
This is
table.
(Continued from page 2527)
cannot
we
a
I may arise not because
i
demands,
contribute to the
dictatorship, which
unconsciously
formation of
greatest danger
our
for the post-war
period.
A Price
A Volume Economy vs.
single
greatest
the
lesson which we still have to learn
is
that
welfare does not de¬
our
pend upon our money incomes but
goods and
production of
our
on
Just
services.
increase
because
wage
a
higher price received
man sells gives him a
or a
for what
a
confidence and the
greater command over goods and
services, the average person is
apt to reason from the particular
to
the
general.
The foregoing
reasoning is correct, providing not
follows: versed the road from war to peace
too many other people also get
We will inherit from the war an production.
It is up to statesmen, the lead¬ higher wages and charge higher
economic system which will not
prices. But if we all organize our¬
ers of labor, industry, agricultural
be
well
adapted to peacetime
into
numerous
pressure
and all other groups to analyse selves
operations.
Wars, because they
these possible sources of malad¬ groups to get higher prices, higher
require
enormous
shifts
from
wages, shorter hours and, in gen¬
peacetime operations, always lead justment and urge their correc¬
with
patience, cooperation eral, become price-minded, obvi¬
to very uneven and unequal ex¬ tion
and reason.
If the rabble-rouser ously we are not going to have a
pansion of the different parts of
high standard of living. Monopoly
the economy and very uneven in¬ comes along and says, "we created
is always restrictive; it is pricecreases in prices and wages.
This prosperity for purposes of war,
minded—this applies to business
now we must have prosperity for
war, because of its global char¬
monopolies and to labor monopo¬
acter, will leave us with an econ¬ peace," the people must have
enough
education
and
under¬ lies. For this reason, in the post¬
omy that is distorted, dislocated
war
world
instead of everyone
and maladjusted.
Great patience, standing to realize that we can¬
or every group trying to get more
hard work, and much give-and- not fight a major war with our
machine and then money, the economy must be al¬
take will be necessary before the economic
lowed a high degree of flexibility
expect to convert that
economy can be adjusted back to quickly
which
more
competition
machine into a peacetime produc¬ under
a self-sustaining system.
tion system without making some and volume of output should be
the goals rather than mere dol¬
Post-War Boom?
sacrifices, changes and shifts in
Prof. Schmidt's address
conviction
the
mean
of business
the
on
Conference To Be Held
25th
The
that people gen¬
men
ABA Midwinter Trust
part
erally will spend their incomes
promptly in either the form of
personal consumption or invest¬
annual
mid-winter
trust conference of the Trust Di¬
,
ment.
Econnomy
Probably
profits, Jabor turmoil, etc., all
cause
businessmen to lose
economy will
bog down.
By "confidence"' we
on
may
When
are
un¬
people will hesitate and
certain,
the
conditions
confi¬
"loses
businessman
dence." In short, the businessman
who, in effect, is a trustee of the
assets in his charge, must avoid
losses
he
and
tries
maker
to
a
profit.
If conditions for profits
on
existing investments are not
favorable, obviously we cannot
expect anyone to make, new in¬
vestments.
Therefore, in terms of
jobs and production for the post¬
of
vision
American
the
Bankers
be-held
will
Association
Waldorf-Astoria
in
the
at
York
New
City Feb. 8-9-10, it was announced
by Henry A. Theis,* President of
the Division and Vice-President of
the
Guaranty
Co.
Trust
New
of
York. "Trust business, by its very
projects itself into, the
future," Mr. Theis, stated, "and
consequently much of our pro¬
nature,
gram will be keyed to forward
thinking and forward planning for
business
our
for
and
the
people
serve." "Special attention," he
we
said, will be given to broad fac¬
and
trends affecting trust
will lead to profit expectations- service, in addition to technical
discussions of investments,itaxes,
first, in order to put to use our
"/
existing resources, and second, to operations, and new business."
we
war,
must create the political
environment
which
social
and
tors
.
create
investment in
new
ating facilities.
job-cre¬
■
.,
will
There
be
five,
conference
V sessions, which will .include panel
discussions
on
employees' trusts
It should be noted
that high
and estate. analysis/Legal ques»
profits are not necessary, but what
tions
Will
be
discussed
by Austin
is
absolutely necessary is that
W. Scott, Professor of law at Har-*
profit expectations be maintained.
vard
University, and . Robert Ri
Powell, Professor of the Columbia
University
Law School.
high levels.
Furthermore,
the
A. L. M. Wiggins, President of
more we reduce the risks of busi¬
ness by building a favorable
ABA;
Joseph
cli¬ the
Henderson,
It
the
is
expectation
of
profits
which makes the economy click at
the lower is the President of the American Bar
which will in¬ Association; Rollin Browne, Com¬
duce high rates of industrial ac¬ missioner of Taxation and Finance
tivity. If we make the life of the of the State of New York; Elmo
businessman tougher, more uncer¬ Roper, market analyst, whose or¬
tain, and constantly threaten in¬ ganization does the research for
lars—we cannot eat dollars!
It is widely predicted that, after occupations and incomes.
vestments with all sorts of pres¬ the
public-opinion - surveys for
Unless we are willing to allow
Already some people are saying
a
reconversion period
of some
"Fortune" magazine; and Gilbert
sure group and political action, we
that we should get a huge public more flexible prices and wages to
months,
we
will experience a
will find that we cannot have high T. Stephenson, Director of Trust
great replacement boom.
Con¬ works program ready so that all make constant adjustments with levels of
production and employ¬ Research of The Graduate School
sumer
durable
goods, including workers not quickly absorbed in¬ changing supplies and demands,
of Banking, will be among thd
ment.,
'
cannot expect
to have full
motor cars and housing, have been to private civilian jobs can be put we
other speakers.
,
\
Thus a plentiful supply of jobs(
Stated in another
wearing out during the war with¬ on a public payroll. While needed employment.
The concluding feature of the
absolutely dependent ' on an
works
should
be
pre¬ way—if we continue to have our is
out much replacement. Meantime, public
conference will be a luncheon on
most people are getting
out of planned now, it would be a great major economic decisions made adequate return on investments.
Instead of "capital" and "labor" Feb.
10,
tendered
to
visiting
debt and in addition are accumu¬ mistake to try to freeze the ship by force, by pressure groups, and
airplane workers,
for ex¬ by power, we canont have a high being in opposite classes and hav¬ trustmen by the New York Clear¬
lating cash, money in the bank, and
House
Association.
The
ing
volume
ing
different
interests,
the
fact
is
speakT
economy. Pressure groups
bonds
and
other
liquid assets ample, in their present locations
er
will
be
Capt. Maurice M.
not
merely neutralize each that their interests are mutually
which they may want to spend at by means of a huge public works do
program. This would be unfair to other—rather, they tend to para¬ interdependent and we must al¬ Witherspoon of the United States
war's end.
the communities and to the work¬ lyze the economy and freeze many low no foreign "ism" to lead us Navy, ; who has seen service all
Thus it is quite possible that
over the world for 28 years in the
^
,
ers who should be encouraged
to people out of jobs, out of incomes to believe otherwise.
we may experience a replacement
navy, - .b •v
% 11 ■. /■ •"*
■ r •'
shift to other areas and occupa¬ —and then those who seemingly
boom
which will probably last
Action Needed
tions as promptly as possible, so benefit by the pressure groups
about one year for each year of
that they may get permanent jobs. merely have to support those who
Nearly every group and-, every
total war.
Nov. Cotton
During this period the
mate for business,
profit
necessary
.
,
.
.
.
price and rationing controls will
probably have to continue, per¬
haps in somewhat reduced inten¬
sity with gradual relaxation as the
supplies of goods are increased;
but we must, if we want a free
society, be on our guard to pre¬
vent these necessary controls from
continuing longer than is essential
to avoid undue price rises.
Public
of
works
character
"make-work"
a
constitute
a
tem¬
mere
are
frozen
of useful
out
employ¬
This is the greatest single
ment.
lesson
«
we
have
yet to learn.
—
ment"
There is great danger that this
boom, if it does come, will blind
our eyes to the underlying malad¬
justments created by the war and
will
lull
safety
must
into
us
false
a
security,
and
distortions
of
sense
whereas
we
the imbalances and
remove
before
can
we
have
long-time prosperity.
Perhaps
last
an
illustration from the
will make the issue
war
clear.
During the 1914-18
production of sugar in
more
the
Europe
war
dropped from 8,000,000 tons to
2,000,000 because of the scarcity
of labor.
The price of sugar went
skyward.
We tried to make up
the deficiency
and greatly ex¬
panded sugar beet production, in
spite of which the price of sugar
rose from 5 cents a pound to over
30 cents.
After the war, when
because
little
attention
is
paid to costs, the demand for in¬
struments of
the
war
is intense and all
his
to learn
former
lete.
The
a
new
craft
trade when
becomes
result
was
obso¬
that
the
industry was in a state of
depression all through
the inter-war period.
sugar
constant
That
what
is
a
wars
illustration
clear
do
to
an
of
economy.
this
war
we
are
farmers to expand many lines
why patience is
absolutely indispensable for an
effective transition to a post-war
purchasing power
for the war is gotten by
necessary
pay
not be
so
certain of "full employ¬
That is, high employment
levels are more difficult to attain
to work.
Man
will
which
face
readjustments
in
us
post-war.
Business groups and a
mists
few econo¬
cautiously drawing at¬
are
works with capi¬
ment."
tal—machines,
in
rials, etc.—and this is why we call
ours a capitalistic society.
'
free
society precisely because
it is a free society.
If we are un¬
duly impatient at war's end to
a
have
a
"full employment" society
we
adopt their methods
better
raise
whether
the
we
question
would
as
to
economic
security and
full employment can be bought at
too high a price.
F
'
For
this
recognize
reason,
that
world-shaking
a
-we
war
character
should
of such
as
that
urging through which we are passing,
of will require years of patient re¬
If
we
resist
the
production; our shipbuilding and, adjustment.
airplane industries have expanded necessary readjustment we may
During
reason
inevitable
the
to
Another
prosperity relates to the problem tention to the distortions but are
of
inducing
new
investment. not
speaking out boldly and ef¬
taxes
or
is borrowed from
the Without a
steady rate of new in¬
fectively for a more, flexible and
people and the banks, thereby vestment in productive facilities,
mobile economy which is the only
creating huge deficits. Can we do we cannot have prosperity; with¬
type of economy compatible with
this in peacetime?
out a fair return on existing in¬
freedom.
Socially and politically,
In peacetime under a free so¬ vestment wo do not have ade-'
we are inclined to allow problems
ciety and under which free con¬ quate incentive to make new in¬ to reach the crisis
stage before
sumer
choice and the free deci¬ vestment.
In our economy we
acting.
Had we the foresight to
sions. of millions of businessmen require an investment of about
aot in advance, the solution to the
and
others govern the level of $5,000 in equipment and building,
problems would be greatly facili¬
business and employment, we can¬ on the average, to put one man
tated.
to
we
may
unwittingly force the
European agriculture recovered, hand of Government to drive us
the price of sugar collapsed ber into a "forced society" or a regi¬
cause bf the over-supply.
But our mented society.
Russia, in the
farmers, now habituated to sugar past 20 years, and Hitler since
production, did not want to drop 1933, have largely solved the un¬
this line, just as a worker hesi¬ employment problem. But before
tates
planning.
If Possibily the new products, new
raw
materials, new techniques,
During a war the Government we fail to learn it, we will be
deferred and foreign demand will
directs production; a war econ¬ forced into a totalitarian society
break
through the crust of ob¬
omy is in many respects a regi¬ just because we have failed to be
stacles facing high levels of pro¬
mented and a socialized economy. wise enough to let a free society
duction and exchange in the post¬
Nearly everyone must take or¬ operate in the only way in which
war.
Beyond promotion of prod¬
ders, and liberty is substantially it can operate.
ucts and markets, insufficient at¬
reduced.
New Investment
the Key to
The Government suc¬
tention is being devoted, however,,
Post-War Prosperity
ceeds
in creating "full
porizing with the problem.
tools, naw
collected
less the current savings of
are
people
period we never
much as $5,000,000,000
as
Federal
new
securities
or
for
tive
facilities,
these savings tend
new
produc¬
to remain idle
alone
debt
in
the
post-war will require 50% more
than that sum—in addition, we
have
will
the
a
huge, standing
$5,000 are converted regu¬
larly into new, job-creating facili¬
ties
cannot absorb
we
people
force.
into
the
our
effective
work
post-war problem.
Return
sues,
in
people
,
positions
political is¬
taxes which impinge unduly
of
leadership and l'esponsibility can
be awakened in time to the
lems
life
On Existing Investment
Unsettled social and
less
young
This is the most important
at
Wash¬
month
of
November.
In the month of
cotton
consumed
■
;
bales of lint
and
bales of
linters, as
bales of lint
and
117,399
in October, 1943,
912,920 bales of lint and
linters
and with
113,430
of
bales
linters
in
vember, 1942,
the
In
to
109,987
compared with
of
bales
■"*
.
amounted
858,813
846,209
;
November, 1943,
'
No¬
**
four
months
ending
cotton consumption
with Nov, 30,
bales of lint and
of linters, against
3,770,653 bales of lint and 467,025
3,419,391
446,192 bales
was
of linters
bales
months
a
There
lint
lint
and
same
four
2,388,772 bales of
bales of linters
consuming establish¬
Nov. 30, .1943, which
with 2,203,829 bales of
437,930
in
on
compares
in the
ago.
were
and
hand
on
year
431,221
bales
of
linters
Oct. 31, 1943, and with 2,409,313 bales of lint and 480,095 bales
on
of linters
on
Nov. 30, 1943.
On.hand in public storage and
at
compresses
on
Nov.. 30,
1943,
two-ocean navy and many there were 12,936,375 bales of lint
other commitments, to fulfill. Un¬
and 51,783 bales which compare
less we have extraordinarily high
With 12,264,332 bales of lint and
we
units of
Bureau
army, a
purchasing power;
levels of industial activity, we will
have a net increase in.our
not be able to carry our burdens
labor supply (young people) esti¬
mated at nearly 700,000 persons or absorb our labor supply; This
annually. Thus unless many, many is deadly serious business and, un¬
(2)
Census
.
ington on Dec. 15 issued its re¬
port showing cotton consumed in
the United States, cotton on hand,
and. active cotton spindles for the
ordinary expenses
promptly invested, not in ex¬ of
Government,
stocks and bonds, but in
isting
The interest on
in Federal taxes.
our
for
(1) Un¬
The
ments
In the pre-war
mate¬
New investment is necessary
two fundamental reasons:
Consumption
organization
is engaging in post-war
employ¬
Post Post-War
The
business
substantial
which
can
pened
be
in
we
prob¬
face, our way of
destroyed.
many
It has hap¬
European
coun¬
tries, but it can be avoided here
if
we
act in time.
43,633 bales of linters
on
Oct. 31-,
1943, and with 13,642,209 bales of
lint and
Nov.
78,889 bales of linters
There
were
on
"
30, 1942.
22,623,406
cotton
spindles active during November,
1943,
which
978,466,
compares
22,599,426
with
active
22,-
cotton
spindles during October, 1943, and
with
22,978,466
spindles
active
during November,
cotton
1942.
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 158 " Number 4240
of
"Every Hottentot A Capitalist"
enlightenment of good example
the world; then I think the
to
United
States
been
has
a
pre¬
(Continued from page 2537)
cept supreme of government by
to
buy from ffee men, a demonstration of the
terest.
abroad.
One of our difficulties of highest attainment of mankind's
„' America must play a world part the last post-war period was that
quest through all ages for the
in world reconstruction.
we had the foolish notion that we
golden fleece of plenty in freeThis war is industrializing much could sell far more abroad than dom.
more of the world.
we
Australia is
bought from foreign sources.
It can still be the guiding star
ftiaking planes.
After the war We tried taking gold for the dif¬ of free pqople the world over; the
she'll not import 65% of her auto¬ ference; until the world's gold hope of the
oppressed and a prom¬
mobiles.
We are helping South ran" out and,
to
consequently, its ise
underprivileged
every¬
America to industrialize with steel world value as a m'edium of trade where if we
keep it so.
,
tion will look out for its
in-I
own
willing
are
we
2543
Senate Votes To Cancel Registration
Fee On Government Bond
Dealings
Elimination Urged By Coleman Of NYSE
.
„
mills
and
cilities.
other
productive
fa¬
that there must
proaching balance if world trade
is to be
direction...r
of
response;
American
:
not
in¬
the
dustry to
the requirements of
war production
has considerably
dented the doubters of the Amer¬
production.
Russia
.
has
proven
as we hoped for 15 years after
the last war.
I'm as much against
lar,
.
,
;
.
the
our com¬
the
hearts
in
preserve
accomplish
through
individual
self-reliance
and. voluntary
co¬
operation—to get all the milk
they want, and automobiles, and
radios, and bathtubs, and a thou¬
sand other things as well.
The
western world has struggled up¬
ward for two thousand years to¬
our
We
war:
1. Provide funds for emergency
enemy—the sword of honor
presented her by the British Em¬
pire at Teheran strikes a sympa¬
in
must
.
mon
chord
and
can
In the
dollars away as you ward human freedom.
are, but trade realism will cause maelstrom that is Europe today,
freedom may well be engulfed.
us to do three things quickly after
pitching
stalwart
a
ally in the fight against
thetic
that balance let's
too long with
idea that foreign debts are
ourselves
fool
going to be retired dollar for dol¬
ican system of free enterprise in
1
a success.
To help create
y, The overwhelming and stupen¬
We
We must learn America this shining example; for
be something ap¬ the world of what free men can
accounts.
eign
industrial output under the drive
of war.
We all know what Rus¬
sia is doing and will do in this
dous
out and we held a lot of for¬
ran
Canada has increased its
2. Early
stop of lend-lease for
post-war purposes; *
Americans—her economic system
seems to fully meet her needs—
it
in America.
The world will have need of
our
when that better day
comes when European homelands
can
again resume the upward
example
relief of distressed nations;
of all
not lose
must
3. Agree on a: settlement for
past lend-lease on a basis that
is possible of liquidation, thereby
path.
Elimination of the need for payment of a registration fee with
respect to dealings in Government obligations on national securities
exchanges was urged on Nov. 23 by John A. Coleman, Chairman of
the Board of Governors of the New York Stock .Exchange.
In testifying before a meeting of the Senate Banking and Cur¬
rency Committee and the House Interstate and Foreign Commerce
<$>Committee, to
"Elimination of the registration
urge passage of
bill amend¬
a
of the Securi¬
of
ties
ernment.
and
change Act of
1934,Cole¬
said that
man
fee
the
stitutes
an
E
im¬
to
e al in g s in
Government
d
Government securities
ganized
and
securities
that its elimi¬
involve
not
loss
the
"will
nation
of
ing the miracle of your American,
industrial system for war, we've
come
all gone back to
vate
enterprise
tion. of
thina."
We
the idea of pri¬
for
the -new
.
,
must
not
fear
the
indus¬
If
want
we
our
have to make
sible
to
our
to
have
loans
our
any
repaid,
markets
acces¬
We
debtors.
por¬
we'll
can't
that fact.:
Loans, new or old, have to be
that we could stop it, but it has hooked up with the purchase of
definite advantages for us. It may something.
In order. to promote
cause-some
shift in the .type of trade-with us, we'll have to put
some of our imports; but the in¬ the fewest possible restrictions on
dustrialization of South, America;, reciprocal trade. ;
for example, should make more
I: recognize the difficulties in¬
customers for American, products, volved in a -discussion of tariff
putting purchasing, power, in the, policy.. • American industry and
pockets
of millions
of
under¬ wages must be protected.
Ob¬
privileged who never were cus¬ viously free trade is not the an¬
trialization of other nations.
-
•
escape
abroad—loans where
sound loans
to the world.
,
Not
the
will be
proceeds
to assure
pect
of
will
not
fair
a
used
so
as
of at least the pros¬
us
be
Europe
return.
fertile
a
spendthrift loans.
field
for
She will have
little with which to repay unless
she uses productively what we
send her.
she
will
Our best
-
assurance
that
help produc¬
tively —r^ to: strengthens not
to
pauperize herself-^will be to in¬
our
• use
.
sist
on
a
vestments
-fair, return
and
to
only for purposes
of such return.
is
on
our
in¬
on
any
Senate
John
there
the, bill
approved
measure
an
attitude
-
-
,,
>
■
V:
swer.
The' British and others
are
not
the
or
"We
United
has
States
well.
American
close
attention
was
directed
to
"know-how" building up industries, developing
and enterprise. knowledge can be new products and processes, and
one
of the greatest factors in cultivating home markets.
But
world recognition. Not on a give¬ American industry has come a
away,
never-expectrto-be-paid- long way. It has raised its sights
basis, but on the basis of stimulat¬ mentally and physically.
It is
ing production-—hand hard work very clear that diplomatic peace
and production are the only way and economic strife* cannot exist
out
of
the
economic
hangover side by side in the same world.
Which., must follow this
world ; r. That-is why
I suggest that
American industry be given a seat
orgy of war.
„..." \. ;
;. UNRRA has recently concluded at the forthcoming peace table,
its. first deliberations. < It gives here to meet the leaders of other
hope for some measure of success.; world business and industry: For
Amongst its approaches, it has unless the/ peace is written, on
economic
suggested a method of paying the sound
basis,
it
will
bill for post-war emergency relief,: never stand.
y:
We must propose the creation
based on national income. .. Our
share in this undertaking will be of
an
International
Board
of
three billions, or 30% of the fund. Trade for the determination of
capital,
,
as
American
-
,
.
When it is realized that America
possesses
only; 5,%%' of the land,
and 6% of the people of the world,
this can be considered a fine com-;
pliment to American .civilization,
and to its system of ..free enterr
prise.
America must
in
trade.
play
a
world part
-
/
But we can't sell abroad unless
policies designed to reduce trade
barriers as far as possible.
ideas
either.
didn't
do
too
badly
For the past
dozen years,
however, we have been importing
too
many
ideas
from
abroad.
,
Ideas
that
convinced
the
failure to exempt transactions in
Government bonds from the reg¬
national
on
a
ex¬
.
up
American standards.
to
the
world
those
to
Let's export
are
.
those
who
say
fundamental
new
of the
Association
Bankers
in attendance at the recent
were
bilities.
.
While
we're
lights to go on
I'm in
no
as
also in attendance were members
of the Banking Practice Commit¬
City
tered around problems arising out
of the general war financing
the
peacetime
commercial
also,
credit
banks.
addressed
taken
by
the
of
reconversion, and
contracts,
war
prob¬
termination
including
lems,
policies
They
the
to
of
were
position
ABA with respect
to
Government-guaranteed loans
in
a
resolution
this
on
subject
adopted at its convention in Sep¬
This resolution read:
tember.
"War
production
financing
inevitably required certain
credit devices which cannot be
justified
to what we're
of
the
the
after
War
termination
Procurement
Pro¬
"
gram.
"Banking has made an im¬
pressive volume of war produc¬
tion
loans
under guarantees,
and a substantially equivalent
volume on its own responsibility.
We now declare our belief that
Government loans
antee of loans
are
or
the guar¬
not only un¬
fdr the financing of
commercial
enter¬
prise, but are actually contrary
to sound financial policy and
necessary
post
.
what beatings
I may
what
sorrow
-
war
the best interests of the Amer¬
ican economy."
Or in what
no
meeting
own
Discussions at these sessions cen¬
take,
Shed
in
gathered
who
their
for
prior to that of the ABA groups.
i.
wakes,
be my
Bankers
Chicago
Mom:
"Dear
Credit
The Association,
under date of Dec. 9, reports that
waiting for the
all over the world,
doubt
Commercial
and
.present.
tee of the Association of Reserve
manner,
"The amount of the registration
fee is small, being at the rate of
No, matter
measures
the
were
If I should die before, this world
:
of
Loans
exempted from the va¬
governmental
regulations.
It is obviously illogical to restrict
dealings in marketable Govern¬
ica American."
uct
Policy Group
Meeting
not been
bets expressed by a private who
Writest, "We fight to keep Amer¬
prod¬
the best
and
rious
edge, this is the only instance in
freedom:
our
Senate
which Government securities have
imposed by this Sec¬
tion at the time of its adoption
was an oversight.
To our knowl¬
amongst our fighting forces. The
general theme of the replies is the
that
the
members
American
letting the Govern¬ fighting for in this, the worst war
ment do it; about spending our in all history.
Neither was there
way to prosperity; about "owing any doubt in the mind of the late
it
to ; ourselves";
about
super- Lt. Robert Carl Peters, a native
planning by Government bureau¬ Detroiter, when from England, he
cracy.
I think there's one high wrote these two stanzas of verse
tariff we can afford to set up to his mother just before making
after the war-r-and that is a tar¬ his last bombing flight over Ger¬
iff on alien; "isms."
many, in which he paid the su¬
A poll has recently been taken preme sacrifice for the ideal of,
sure
in
organization meeting in Chicago,
the first meeting since it was es¬
tablished at the time of the ABA
War Service Meeting.
In addi¬
tion, 10 members from the Cbnw
mission's Subcommittee on War
istration fee
place,
fate,
or
tears and hold not hate
for I am happy.
that philosophies on which American
we never have had a foreign pol¬
greatness rests: the freedom and Because if I should live and this
world die,
dignity of the individual; repre¬
icy.
Maybe not. if you're talking sentative government by the con¬ No matter what peace in the sky,
about a selfish, narrow policy of sent of the governed; free and vol¬ Or in what cave, or hole I must
hide,
untary
productive
cooperation;
imperial aggrandizement.
But if you're talking about ,a full personal opportunity and suc¬ Give me liberty, or let me die, for
I'm not happy."
Only
foreign policy of encouragement, cess through self-reliance.
There
Thirteen
about
We must be
■1
Credit Policy Commission
own
these
■
1
respectfully urges passage bf the
a
indirect interest.
are
if
registration
no
■
Holds First
direct
would
"The New York Stock Exchange
ABA Credit
*
investments
been
bill pending
subject to the House."
the fee include the direct obliga¬
tions of the United States, obli-.
gations guaranteed as to princi¬
pal or interest by the United;
States, and securities issued or
guaranteed
by
corporations
in
which
market,
now
only good sense from our
standpoint,. but good morals $2Q per $1,000,000 of bonds. How¬
from
the
standpoint
of those ever, it constitutes an impediment
No
nation
can
ever
become seeking to protect their own in¬
to Exchange dealings in, Govern¬
dustries as much as is. compatible whom we would help.
completely self-sufficient.
His¬
ment securities, because no fee is
Finally, we can give the post¬
tory shows that when the people with, supporting • a good volume
Getting this bal¬ war world American ideas—in¬ imposed upon dealings, over-thebf any country Hind iprofitable of foreign trade.
counter in such securities. In other
ance of trade through encouraging
dustrial techniques—management
jobs in production, their increased
more
trade—and still protecting "know-how."
These are as im¬ words, our organized exchanges
consumption creates a greater de¬
are at a definite competitive dis¬
mand for goods foreign and do¬ the social gains, wage structure portant in production as physical
advantage
with
the
over-themestic.
The best customers are and living standards of this na¬ equipment—and only by produc¬
counter market.
A market for
not the
predominantly agricul¬ tion, is a problem that will sorely tion can the shattered world be
Government securities on4he or¬
tural countries but those who, like test • the political and industrial rebuilt.
ganized exchanges is desirable
Arid ■ While We
are
exporting
ourselves, also have developed in¬ statesmanship of this nation in the
and is in the public interest.
post-war years.
v
dustries.
ideas, let's not forget the funda¬
We did all right here in
America will be the great cred¬ :
American
businessmen
have mentals.
itor nation of the world when War been regarded in the past as America while we were produc¬ by our own example, only by set¬
ceases.
As such it will not always "novices" in the field of interna¬ ing our own ideas and using them ting for the world the ideal of the
be able to export all the goods it tional diplomacy.
Perhaps that here a thome. And the other na¬ free way of life can we measure
wants to; it .will have to export was true' in the days when such tions of the world who imported up to our international responsi¬
tomers before.
fee."
to the House.
securities
supply capital ment securities
giving promise changes in such
Such
had
part:
"The
the Ex--
on
have been substantially larger
Mr. Coleman's statement follows
in
proportion of transactions in
over-the-counter
Coleman
A.
9 without objection and
Dec,
believe
changes, in comparison with the
consequence
sent the
or¬
our
on
We
a
to the Government.''
The
exchanges.
Government securities
reve¬
of
revenue
to the
consequence
source was negligible, amount¬
ing to only $777 in 1940, $394 in
1941 and less than $200 in 1942.
But, however negligible in terms
of revenue, the fee is nevertheless
a constant deterrent to
dealings in
han ge
x c
any
this
con¬
pediment
obligations
loss of
a
Gov¬
During the past three
years, for example, the revenue
received by the Government from
Ex¬
,
,
Government
on
will not involve
nue
•' \
Next, we can. invest our wealth
in the rebuilding of the world.
but here again is displayed the
right of self determination as ex¬ taking the uncertainty of these But I said "invest," not "dissipate!'
We will be in¬
pressed by a prominent Chinese obligations out of the trade pic¬ or "squander."
industrialist.
In commenting on ture.
vesting only if we can know that
the world's adherence to the ideal
Our debtors have no place to what we provide will be used pro¬
of production, he recently said; get money except as we have— ductively—to
energize
not
to
"Before America entered the war from production.
And you've got enervate those who receive it.
there wore many reputable Chi¬ to sell if you keep on producing. Wevwill be investing only if our
nese
businessmen looking with So the sooner we can put the exports of Capital are not them¬
approving eyes on the, great in¬ debtor, nations back on a produc¬ selves consumed, but are used as
dustrial progress being made by tion-trading basis, the sooner the the tools for a continuing flow of
Russia.
It seemed to many to be Wheels of world trade will start goods to rebuild the war-impov¬
world.
And
our
best
the key to China's need for quick turning to the advantage of all erished
industrialization. But after view¬ and the sooner real... peace will assurance of that is to make only
fee
ing Section 31
According
to
the
Association,
the discussions at the
dicated
a
meeting in¬
strong determination
on
the part of the commercial banks
to
take
care
of
the
credit
needs
.
of business and
war
industry after the
and to do this
so
far
as
pos¬
sible without the assistance of the
Government.
THE COMMERCIAL & FINANCIAL CHRONICLE
2544
its
Fiee Enterprise
;
r
^'the continuing vital importance
prise.
laws"; (2) a new attitude toward
labor relations; (3) control of production;
(4)
government - price
control; (5) "strengthened a popu-1
lar
suspicion
that business is
t
There was no shortage of capital;
we had it lying idle, There was
no lack of skill or training or capacity or ingenuity.- There was
want of faith and conviction;
"safety first," which began ps a
mere traffic slogan; was woven
into the fabric of our economic
system.
Energy was wasted in warfare
between government and business,
really under the control of mo- Mutual suspicion absorbed attennopolists or quasi-monopolists," < tion from constructive purposes;
and (6) "the individual ceased to a3 confidence waned, enterprise
be the center of gravity; people lagged. Second and third generawere
lumped into masses and tion men fled the responsibilities
totals."
dealt with in
■
•
*
Wristoh
rail Text of Dr.
v..
s
;
v
Address
[of ownership, until a disproportionate amount
of industry is
owne(j by WOmen
enterprise is a subject
upon which, when definitions are
avoided,
nearly
everyone
can
agree.
FeW
people will
talk
against it, but many give it public
support on the basis of unspoken
definitions Which leave little sub;
Free
stance to the idea.
.
!
Recently the president of the New
Council .said: "Everyfind conviction that
risk-taking is essential to free enterprise, and everywhere we encounter a reluctancee to take
risks ...
We all know advocates
England
where
|
If this discussion is to
and often man-
aged almost as much in the spirit
of trusteeship as of enterprise,
be use-
we
,
.
of free enterprise who are contradieting their aspirations with their
experience must be learned, even actions by putting their own once
yvhen the/ are hard. I propose to dynamic dollars to sleep in the
analyze the phrase,, discuss its real manacled hands of a trust fund."
meaning, and suggest ways in
The decade before the war furwhich businessmen cart serve free nished adequate evidence* that a
ful, it must be clear, though hot
entirely palatable. The lessons of
>
enterprise.
1 devoted communist or a convinced
.VVe should begin by admitting Nazi will display more enterprise
that there is no necessary connec- than a defeated and discouraged
tion between freedom and enter- democrat.
The pre-war demon.
^
From one .point of view stration that there is
prise.
exclusive
no
that is self-evident; the very use relationship between freedom and
of the word, "free" to qualify the enterprise has been doubly proved
word
"enterprise" implies that [since the war began. Our producthere
instances Of enterprise
are
If freedom had
without freedom.
a
monopoly upon industry and re¬
sourcefulness, courage and faith,
should not be,at war; or if war
started
through
some
political
we
folly the totalitarians, could never
gain an initial advantage; nor
should
state
welcome q
we
as
|
is
at
all-time
an
high;
na-
tional income is at a new peak.
war has given us a surge of
enterprise in the midst of marked
The
restrictions
ort
Much
freedom.
the risk capital is
Of
supplied by, the
taxpayer; the government is the
entrepreneur; the government alcommunist' located.materials; the government
ally.
an
tion
,
What logic suggests,
| buys
the bulk of the product; the
of
test
does not
faith
freedom
in
when the business
come
is
the rise,
on
,
NRA
the
was
product
crisis;
Of
that is its significance for this dis¬
cussion.
r
j
proposal
from
came
Soviets
alike.
They have
led the world in the application of
higher mathematics to engineer¬
ing problems, substituting exact
calculations for wasteful empire
icism. In medicine, and more par¬
ticularly in surgery, they have
shown vigor in conception,
re¬
sourcefulness
in
technique,
and
freedom for enterprise and so
much of freedom from want and
freedom from fear?
belfeve
I
;
•
that those who
see
in
constituted
"liberal"
statesman governmental power over wages
50-year opposition to and hours in industrial relations.
monoply, .and businessmen invited It is a dominant factor in the cur¬
government interference in things rent situation—for example, in the
view.
The
abandoned
a
which.. theretofore
had
been
left
The third
to free enterprise.
Nothing could
fully epitomize the essential production.
more
is made
incoherence of the alliance.
NRA was not the product "balance
production
with
con¬
theorists, determined to commit sumption," it follows that govern¬
ment must also make a distribu¬
us by devious means to a managed
economy.
It was dominated by tion among the units of production.
practical men who knew so little Such a function cannot be dis¬
theory that they did not recognize charged by the enforcement of
general rules; it requires bureau¬
obvious similarities to fascism.
The
of
•
Fascism
the
was
union
of
an
capacity to produce can go to ex¬
treme
lengths.
I
remember
a
control, with the representatives
large business enterprises, who
who
a
believed
renegade
in
of
willing to surrender initia¬
were
tive and freedom in
exchange for
security and the discipline of the
laboring classes. There is another
terrifying parallel in the support
of
Hitler* who hated capitalism, by
Fritz
Thyssen >. and
:Whatever
other indus¬
the business
trialists.
the
to
us
widely diffused wealth,
they, boldly proclaimed an enter¬
prising , program. They snatched
markets;from beneath our noses,
and territories from beneath our
feet. We are hard put to win them
You must show forth the faith and
the fruits of freedom.
back,
people, It is for men of courage
and faith; risk is ever an essential
quality.
>
>
*
We might just as well be per¬
fectly candid. For over a decade
were
hearing about
about bal¬
economy,
ancing professional and vocational
training with shrinking opportun¬
ity, about balancing production
with consumption, about balanc¬
ing labor with management, about
social balance—about
of balance except
rested
on
every
kind
budgetary—we
balance while the
Freedom!
that
To
they
are
think
deter¬
more
Germany.
than
It
was
either. Japan- or
not
a
problem
the
paradoxes of
took a so-called
it
from
committing
.
principles and
many
prac¬
f
cure
unem¬
forgotten.
Unhappily, that failure
close
not
the
account.
The
continuing vital importance of the
is that it left ms legacies
which have bedeviled both gov¬
ernment and business
The
Government
and
powers
new
since.
ever
acquired
new
habits which still
the
linger, long after the instrumen¬
honestly, we must leave se¬
curity and safety first behind. It
tality has disappeared.
'
The first legacy was a
strength¬
ened tendency to substitute a
go\M
about
word
is
no
our
word for
a
tired
or
Government
has
perceptive
about
very
stance
and'
freedom.
In
the
hesitant
not
the
ways
it
of laws.
the
virtues
of
a
government
Instead of
accomplishing
through general stat¬
applicable to all industry
he lost
without
one
the
habits
of
of
has
A
fourth
legacy was govern¬
price control. Price regula¬
tion, almost by definition, cannot
be handled by general law; it re¬
quires
administrative
manage¬
ment
agency
which
combined
legislative, executive, and quasijudicial powers. Indeed, its func¬
Fascist
and
tration
a
was
like
that
of
the
Italian
whole
of
their
their
interests,
upon
Both
bureaucratic
Businessmen
were
Secure
status
vigorous enterprise.
Experience with the NRA
plies the clearest evidence
goal
"
sup¬
that
business should not undertake the
function of government
There is
equally good evidence that demo¬
cratic
over
government
the
function
cannot
take
business.
of
,
Business and government are dif¬
ferent kinds of activities; neither
should do the work of the other.
Government should be
concerned
with
law
primarily
its
and
en¬
forcement, business with produc¬
tion and exchange, in a free mar¬
ket. Government should operate
principally by fixed rules made
by representatives of the people,
veals
is
Now
it
moving toward a
are
war to peace.
It
was; easier to make the transition
from peace to war,
That required
energy and resourcefulness, but it
could neglect economics and per¬
mit
extravagance,
payer
for the tax¬
ultimately foots the bill. ■■■;'
The return to peace
will furnish
in freedom.
Will it be sold short as in 1933,
fresh
a
have
or
that
individual
what
justment from
Disregarding the free deci¬
of
we
wants and
pay.
crisis—-the tremendous read¬
new
of
millions
what it
willing to
we
of
test
we
faith
learned
dare
our
lesson
so
accept the tensions,
citizens
difficulties,, hazards, and frictions
ket
that freedom involves?
as expressed in the mar¬
place, the bureaucracy de¬
termines prices.
That process is
the
very
reverse
of
economic
democracy. Bitter experience has
Thus far
our
political leaders have exhib¬
ited
concern
for security, dread of
hostile to
unemployment, fear of social ten¬
sions, doubts about labor relations*
They seem immersed in problems
free enterprise even more readily
rather than fired with enthusiasm
than
for
it
made
clear
controlled in
in
its
that
a
prices can be
manner
support.
into
Calling the
this
activity
freedom.
more
Fear
still
than
frequently
appears
faith
in
opened Pandora's box.
their' basic vocabulary. Until the
A
fifth
legacy
remains
to
plague free enterprise. The NRA
strengthened a popular suspicion
that business is really tinder the
control of monopolists or quasimonopolists. The perspective of
history shows that the processes
of the NRA were markedly mon¬
opolistic.
Individual
enterprise
public reverses that psychology,
we .will 'hear
more and more of
the managed economy, and enter¬
prise will not again be free.
Businessmen must work toward
and
business
little
did
not
fare
well in that collective effort,
They
do
never
collectivism
under
of
sort; freedom requires com¬
petition. Monopoly is a form of
collectivism to. which the Amer¬
any
ican
terly
"people have long been bit¬
hostile.
The NRA was a
deviation from
tradition.
I believe
temporary
sound
that
that
that reversal of emphasis, for free
enterprise can never be recovered
as a thing apart.
No demand for
freedom for business, as such, will
succeed. It can come only as an
integral part of the larger idea of
human freedom. Only those genu¬
individual
free enter¬
prise. This is so profoundly true
that it is fair to ..say that the
phrase "free ehterprisd'7; omits the
key word. It must
understood
to mean "free individual enter¬
inely
concerned
with
liberties really support
mistake, but your
actions must reassure the Amer¬
prise*'' for freedom is the charac-,
teristic not of society, or a union,
or a
corporation, but only of man.
ican
If
are
now
con¬
people.
other
profoundly
important legacy which involves
There
a
is
one
break with
The
dition.
were
our
fundamental tra¬
individual
of
center
lumped
■
ceased to
gravity; people
into
masses
and
In a review,
we
we:
believe
must
in free
make
enterprise,'-
individual
enter¬
prise possible not only within the
framework of the
State, but also
union,-
within the-structure of the
and-within the fabric of the
cor¬
poration.
A
corporation can have only
dealt with in totals.
such rights as are granted by the
accompanying a message from the
helped President, the NRA was accurately State, for it is the creature of the
based
management.
unwittingly
the
was
instead of hazardous freedom and
sions
Ministry of Corporations— be the
"central administrative organ of
coordination."
tion.
ment.
was a
tion
NRA* which in
thought and action
vinced it
trative
achieving the
of the bureaucracy,
utes,
sub¬
or
Government control of pro¬
duction left important residues in
leaders
,
freedom
other.
business
impaired free enterprise; illustra¬
it3; conception, its execution,
for
either
enterprise; he was unconsciously
attempting to exchange freedom
for security. Events proved that
its purpose
tions
government in the
men
alike, the NRA gave broad dis¬
cretionary powers to an adminis¬
implications
many
ernment of
been
abound. But government is
total-,
itarians showed enterprise. It was not alone to
blame, for at a crit¬
net a question of population; we ical moment business
united with
have
principles."
The NRA failed to
without
we
.
ployment. If that were the whole
story, it could be Written off and
NRA
freedom
of
tices of fascism.
people to that point of view, how¬
ever, it will not suffice to exem¬
plify the virtues of enterprise.
mature
.
buggy" Supreme Court
prevent a professedly liberal
people, have shown enter¬
Without natural resources*
without an industrial tradition,
While
,
That mental disease by no means
left America unscathed.
It will
getic
our
laws,
fundamental'
own
did
■
of
who failed to realize that in vindi¬
mined to recover and protect it. If
you are to persuade the American
-
destruction
cating regimes destructive of free¬
dom they thereby disavowed their
foundly in the American tradition
1
.
*
in
Even the Japanese, that faceless
and selfless, but fearless and ener¬
of
of the
stake
common
American people. The interpehe-'
and necessity for
competitive enterprise" to
administration
pro¬
the
It accentuated al¬
Conflicts rather than
class
Convenience
new
business has learned the lessons of
so
third" entity.
leged
Chosen in free elections. Business
should function by fluid decisions
be established in his industry. He, that find their ultimate test irt a
was not preaching or
exemplifying' free market, where the public re¬
a
Government
believe
prise.
.
of
to
rtiismanagement,
over
friend assuring me that "after six
months it will require a certificate
socialist
that
leader's
Power
management.
State
of capitalism,
enemy
impressive
illustrations of enterprise,
are
cratic
"horse and
business
netogorsk
beyond the Urals
Once the assumption
government should
history
administrative
control of
was
that
In fact, the current surge
of enterprise may well show that
the Twenties and Thirties; that
despite bureaucratic confusion and
operation of Magand the other cities
legacy
one
struction
and
'
coal fields.
remain
skills which have produced mod¬
ern miracles of healing.
The con¬
consumers as
a
the present situation a vindication
of
the
planned
economy
are
wrong.
hand, industry
a'
one
opinion generally, lective contracts made binding. dom was not implemented; enter1
strange alliance Under the NRA lortg strides were prise was not stimulated. Instead
between "conservative" industry taken in the same direction. There rules restricted competition, pro¬
and a statesman who sought to is no need to elaborate the conse¬ tected prices, obstructed new de¬
embody the
"liberal" point' of quences of the habit of exercising velopments,' strove for stabiliza¬
it
.
The
the
mother, and
•
.
friend and foe
the
.
sented business
experience government determines the labor acumen of Thyssen, it is overshad¬
Impressive manifests-[ policy and controls; wages: * the owed by his
political stupidity, by
imagination, skill, 'government fixes prices and limits his failure to see that in the search
and daring in invention,
for order, freedom would be lost.
develop-jprofits.
irtent, and production have pcIndeed, many have concluded
A profound truth was expressed
curred under tyranny. The oil in- that the way to more enterprise
by. Count Sforza when he de¬
dustry,
chemicals,
pharmaceut- is by less freedom and more govclared: "The significant ,symptoms
icals, biologicals, yarns, fabrics ernment planning — a managed
of the mental disease which
and many others have had to com- economy.
How else account for
seized upon European thought is
pete with I, G. Farbenindustrie. the constant reiteration that warThey have had good reason to time controls will have to be this, that there should have been
v
'conservatives' who rejoiced
know that between the two wars maintained after peace,
perhaps
enterprising, I indefinitely? How explain otherhave
astounded wise why we hear so little of
on
men
confirms.
was
the rules of the game, and confi¬
dence
that .they
will
not
be
labor* on
changed quixotically. At the same common elements,14 indeed their
time the NRA encouraged govern¬ essential
identity, were neglected,
influential in business circles., It ment to modify the sound tech¬ The solution Of
problems was ap¬
has well been said that it reflected niques developed
by long experi¬ proached' hot' from the standpoint
of
the
ence^
and
employ
methods
which
public welfare by freely
"feeble, if not paralyzed,, initia¬
tive," and the wavering faith of disregarded the democratic proc¬ elected representatives of the pub¬
political officers and businessmen ess, and functioned only at the lic, but by bargaining among spein "the more fundamental institu¬ sacrifice of freedom.
[ cial interest groups, each seeking
tions of our economic system. In
The second legacy was a mew 'to improve, its • own- competitive
such a scene it seemed to groups attitude' toward
labor
relations. position. There was no room for
with
varied,
even
conflicting Under the corporative State in
| individualism in the NRA; the
views to offer an instrument for Italy the confederation of /fascist 'collective
idfea
was
dominant
forwarding their aspirations and labor syndicates and the confed¬ throughout
for generating economic advance." erations of fascist employers were
The historical fact, therefore, is
Whether or not it really repre¬ legally recognized and their col¬ that in the last great crisis free¬
The
tions of energy,
German business
,
profits are processes of government proved
satisfactory, and employment is disastrous both to efficiency in
regular. The acid test comes whert government and to freedom in
things are going badly and a little business. It destroyed an essential
help would be most welcome. The of free, enterprise—knowledge of
cycle
than
legacies which have bedeviled
both
government - and business
ever since." Among these legacies,1
lie mentioned (1) "a strengthened
tendency to substitute a government of men for a government of
ested economic groups as agencies
in America.
The application of the business of government." Moreover, it rec-.
technique of fluid judgment to the '.ognized groups as being partisan;—
economy
The
of resources; We have vastly more
any of our Axis enemies,
the NRA is that it has left us
of
aftermath proved detrimental Marxian theorists plant and im¬ described as "a rather radical ex¬
freedom—anc^. even to enter¬ plement the concept of a managed periment in' incorporating inter¬
to
(Continued from first page)
Thursday, December 23,1943
<2
Volume
law.
It
THE COMMERCIAL
Number 4240
158
is
not an ultimate,- but
instrument, without in¬
nate capacity for freedom. It has
no
personality, no spiritual qual¬
merely
an
corporation, in the in¬
preservation of the
the
upon
of
terest
system of free enterprise by which
functions, to show a deep
alone it
and j concern for, and active implernenexclusive
of,
individual initiative,
possession of; individ¬ tation
uals.
Properly conceived, a cor¬ personal freedom, and enterprise.
ity—those
poration
is
inherent
the
are
of
individuals. It serves the public
by supplying desirable goods and
services at prices determined by
real competition.
In that service,
it remains subsidiary to the State,
but in our democratic system the
State, however powerful, is also
the people's servant. It is perfectly
obvious, therefore, that in a free
government only the individual is
entitled to fundamental; rights—
only
the
servant
that
is, rights against the; State.
The system of free enterprise
began with individuals.
history
the
of
world
been such
never
In all the
vidual energy as freedom
By
supplied.
and
imagination, by
skill and wisdom, they succeeded.
energy
Sometimes
individual
an
became
strong that he exerted his in¬
fluence by power rather than by
so
wisdom
alone.
But
by the
over¬
whelming fact of mortality,
even
the most powerful returned even¬
tually
to
the
common
dust.
Through the corporate structure,
however, the accretion of power
might gain a kind of immortality;
it might prevent the dissolution of
power by death apd its resettle¬
ment among new figures upon the
stage. In such circumstances power
might
remain
more
important
Napoleon
last
the
to
there
War
was
century
a
profound shock of
global strife. Indeed the World
War was the first great -conflict
The
revolution.
industrial
the
since
shattering nature of its
and
pact
first
to
and
then
those
ensuing mistakes led
wide depression
world
a
to
new
a
war;
of
long
and
economic
of
world
Climax
the
were
series
under¬
little
too
were
The
stood.
dislocations
the
aftermath
im¬
of its
a
political
failures.
rough
hope
I
schoolmasters;
have learned
lessons.
our
we
May
we
from this struggle against
autarchy and tyranny with a re¬
freshed
philosophy and a new
emerge
faith in freedom, a
revived respect
for the individual
citizen and the
vented
That must be
free
if
flourish.
<■
-
of
solution
in
problems
our
the
-
and 'with the
immeasurable energy of free en¬
terprise.
'
of freedom,
spirit
■
Business
with the
market.
makes his
individual
own
to
When,a,man
decisions, he has
both . as buyer and
operate
seller, both
as
producer and con¬
sumer; he is on
wins or loses - in
both
sides
(Continued from page 2535)
net
dividends
mately
for
operating
earnings
since 1936
of
3.60,
compared
Hanover
Hartford
Fire.
shows
-
to
approxi¬
with
1.14
Meanwhile
gain in stock¬
holder's equity in excess of 41%
and
market
a
appreciation
;
of
33%, while Hanover shows a gain
in equity of only 1.5% and a mar¬
Another
value
watch
to
is
the
so-called
insurance
is hostile to freedom.
be realized for stockholders in the
is
merely a manifestation
of power, where gain or, loss de¬
pends not upon wisdom < or folly
but upon power. We can observe
that in political life.
For a con¬
siderable period, Hitler and Mus¬
solini appeared
to succeed;' the
reason
were
not
right
or
their
that
was
decisions
put to the acid test of
but only to the
wrong,
false test of power against
ness.
weak¬
the
prise
of
interest
free
enter¬
business should avoid col¬
It should.not attempt
lectivism.
to
liquidating value of
stock.
represents
amount
approximate
value,"
which
share
company
sold.
or
It
is
an
Theoretically it
the
o
per
-went
should
liqu'dated
were
than
more
"book
a
company
business
insured
net
40%
or
to liquidate, the
were
on
its books could be
our
profit to the stockholders of
or more
mium
of the unearned pre¬
Thus, the stock¬
reserves.
holder's equity or liquidating value
economy
govern; it should
powerful interest group will ulti¬
mately prevail and others will be
Then
liquidated.
collectivism,
either in the fascist or communist
form,
has
triumphed
over
enterprise.
It
becomes
clear
that
any
^familiar. It may be
done by labor union,
which in
representing the collective rights
of workers
may
suppress
their
'individuality and injure their per¬
sonal dignity. It can also be done
by the corporation, which may
.purchase labor without concern
for developing initiative and the
are
spirit of enterprise in the workers.
In fact it may resent the difficul¬
ties created by individuality and
prize docility and discipline more
deeply. That was the tragic—in¬
deed the fatal—mistake of Euro¬
business.
It rests therefore
$62.01
on
Other
31,
of $53.31
basis, but of
1942,
company
consolidated
a
items
and
basis.
ratios
Mill without
Stuart
thought
to their truth.
as
ation"
some
dicta of Adam Smith
the
of
swallowed, whole
and
careful
have
can
advance
no
in
later
eco¬
times
modern
should
and
not
ternational
which
can
balance
ports
be obtained from their
sheets
and
operating
invested
are:
assets
share, ratio of invested
assets
dollar
per
of
market
mists
shares, percent rate of return
on
invested assets by net investment
income,. loss
and
allocation
writings
to
fire,
of
premiuijn
motor
vehicle
marine, etc., and the
cent rate of return
miums
by
profits.
narison
items
ratios
expense
percent
ocean
net
on
the
underwriting
ratios
enumerated
per¬
earned pre¬
Careful'study and
of
and
above
are
com-
son
why
some
fire
insurance
proclaiming that they
never
believe in it, or that its truth
depends
which
And
too
upon
it
yet
factors
many
do remain the
never
be
may
same.
said
that
there, is really nothing wrong with
the
equation of exchange.
The
ternational board.
of
time
on
I
shall
of
one
the
serve
Fisher,
reason
Warreri
their pur¬
been
of raising domestic prices by
mess
the "devaluation" of 1933-34.
1933, all the nations agreed that
world price level should be
of
by
raise1! it should
"devaluation"
and
currencies.
managed
passed
in the
- which
all the
gold in the possession of the Fed¬
by
eral Reserve System and all other
gold
in
the
available
hands
for
the
of
use
is
public
monetary
as
i
of
It
been
have
secure,
and
the
that
use
of
transfer
of
expect
intelligible,
an
exchange lies in the word
of
a
will
the
same
commodity
then
change
in
money,
e.g.,
does not
be
found
the
gold
the
service,
or
that
any
content
dollar,
so
o'
com¬
the
price term that it
change from the previous
That
dent
is
the
Roosevelt's
the dollar
tic
"the
reason
why Presi¬
"revaluation"
of
could not raise domes¬
prices.
As
far
as
"devalua¬
tion" is concerned, domestic prices
can be raised,
directly, only by a
pur¬
rise
in the cost of
living brought
about by the. increased cost of im¬
the dollar value we hope to attain
ports.
For instance, previous to
in
the
near
future"; in other "devaluation" in this
country, imwords, the commodity dollar.
norts were
chasing and debt-paying
power as
paid for at the rate of
(one ounce of gold) per
unit of imports.
After "devalua-
Prior to this, many economists
and financiers considered they had
good
$20.67
to doubt the validity i tion," a unit of imports cost $35
quantity theory of money, (one ounce of gold), Any rise ir
Although they had never had ac I prices will be roughly prooortual experience of "devaluation"
^ional to the increased cost of imof
countries
which
basis
their
for
country, there
ports relative to the total cost of
other
home-produced products, that is.
in
cases
used
were
adverse
In these cases there
as
a
opinions,
evidence
to
show
that
although
levels
after
"devaluation,"
been very far
from commensurate with that de¬
manded by the quantity theory.
the
difference had
On the other
'dieory
tion
so
of
as
hand, the quantity
represented by the equa¬
exriianve
be
convincing that it was,looked
appeared to
The "great ex¬
upon as a truism.
periment"
which
was
to
be
tried
therefore attracted widespread at¬
tention.
On
Jan.
31, 1934, the
President fixed the
new
weight of
United
prosperous
sufficient
was
the
jn
r
;
phases
with
in
its
most
period, a rise Of prices
limit of about 4%,
an upper
other
In
things remaining the
order
chan<m
demonstrate
to
"revaluation"
not
States
the
of
dollar
same.
problems
long-term investment periods.
relating
have
to
r
never
been
convincingly expounded. No
significant
change
in
domestic
prices need now be feared when
changes
monetary
that due
in the
units
to
the
gold
are
content
made,
of
except
increased
of
cost
imports, and if the change has not
been large that
most negligible.
item will be al¬
In
importing country
case, the
whole will
any
as a
benefit by the increased profit on
exports which, in a large export¬
ing country like the United States,
will much
the
than compensate
imports.
Unfortu¬
more
loss
on
nately, the importer and the ex¬
are two quite different in¬
porter
dividuals
whose
interest may be
poles, and more profit¬
able exports have only a minor,
indirect effect in raising prices.
at opposite
It
is probable
that in the
near
future the international stabiliza¬
tion of currencies will be under¬
taken
and,
comes
better
the problem be¬
understood, "reval¬
uations"
may
be
dictated
by
legally
constituted international
as
fair
"overvalued"
as
equation of exchange that has
been disclosed, a careful scrutiny
of
alone
of
$10
(1)
per
goods at the price
ton.
gold
valued" to $36
will
be
is
per
now
ounce,
eauivalent
to
"hy^cr$10 000
133.333.3
grains (277.77 ounces) of cold, and
The equation
o^ exchange may
be stated as: M^QP.
M
represents
money;
Q is the
but
also
consti¬
find that the phantoms that have
the financial world,
especially that of the sterilization
of surplus gold and money for the
purpose
of, preventing inflation,
have no real existence,,and that
the quantity theory of money will
stand firmly as the great pillar of
monetary policy.
frightened
THOMAS FRENCH.
Seattle, Wash.
Callahan Leaves Treasury
Vincent
F.
Callahan, radio
and
ecutive
former
ex¬
newspaper¬
has resigned as Director of
Advertising, Press and Radio of
man,
the War Finance Division
of the
He leaves
Treasury to return to 'private
In
business.
1941,
Mr.
Callahan
appointed Chief of Radio for
was
the Defense Savings Staff. Later he
placed in charge of all advertis¬
ing, press and radio in connection
with the
the.
year
points
gram
than
out
was
in
,
During the current
Treasury
the
War
supported
$100,000,000
tributed
the
promotion of the sale of
Bonds.
War
of gold.
If
terms
expression
tuting the equation will uncover
other glaring inconsistencies. Not
until these are rectified shall we
was
$10,000 is 137,142,8 grams (285.71
ounces) of gold, and $10 is .28571
(2)
the
the
With cold at $35 per ounce.
ounces
of
whole
the
can¬
let us assume
that $10,000 is expended on 1.000
"underval¬
currencies, for, quite apart
from
the
interpretation of the
Treasury Department.
prices,
tons of domestic
and
ued"
how
$10 is ,27777 ouncps of gold.
stocks show superior market per¬
formance to others over mediumand
of
"devaluation"*' which
reason
numerous
of gold in each
ounces
It clarifies certain obscure
tance.
the
were
ounces
represents $10, and, thus, that
domestic
prices cannot change,
not
level.
generation
a
.27777
.28571
commissioners, in the interests of
play and justice to all, and
etc. Multiplied by that of the term such "revaluations," with gold re¬
moved
from domestic circulation,
which represents the
commodity,
; its product is equal to the magni¬ may become a more frequent oc¬
tude representing money on the currence than in the past.
It will
other side of the equation.
not, however, render
Price,
then, is money, and any constant much easier the practical deter¬
which is applied "to money on one mination of the natural gold val¬
I side of the equation must also be ues of the monetary units of in¬
-applied to price on the other side. dividual nations, commonly known
cents, in his
discretion, his avowed intention,
along with certain other laudable
objects, being to raise the price
will
terms
of
"price." What is price in the equaIt ri just a magnitude reoresenting the money value of the
unit
authorized to "devalue" the dollar
kind of dollar which
result
Only with the removal
impediment to progress
we
tion
to between 60 and 50
hence
this
often
be just a mess;
the
pensates
had
Roosevelt
level and thereafter to
to
has
equa¬
$35.
now
President
equivocal term,
| tion?
was
States
an
consistent science of economics.
The equivocal term in the
These;
'
Act
An
United
is
may
to be achieved mainly
were
said
meaning.
the
once
the
no
Economics
equivocal
After the Ottawa Conference in
raised, and
of
use
economics.
Pearson
not be permitted to relapse.
of
is, to the
logical transfer of meaning, than
and
in
terms
It is the old, old story
there is
pose
failed
the
science more full
of equivocal terms or which has
been more subject to the
fallacy
of equivocation, that
principles
to show the
Professors
the
and
hitherto unknown, will
new light on devaluation
a
and also
why
equation.
comment
def¬
worthwhile, for in them
frequently be found the rea¬
econo¬
misinterprets
other
initely
may
did
great many
a
a
fault lies with the economist who
price
of
fail¬
of foreign
currencies,
frequent, probably annual,
revaluations, dictated by an in¬
there had been slight rises in the
price
as a
have
re¬
tc
branded
was
bilization
this
evident that
a
cloud, with
be
per
liquidating value, invested assets
$35 per ounce of fine
tity theory has remained under
and the sta¬
commerce
.
It is
case
now
277,77
(ounces gold at $36)
(tons) x .27777 (ounces
gold at $36).
'
and
ure, and since that time the quan¬
must, in the interests of in¬
we
(2)
—1,000
59.06%
weight, 23.22 grains
gold, and monetary gold
fine
.,
($) 10,000-1,000 (tons) x ($)10 '
(1) 285.71 (ounces gold at $35)
—1,000 (tons) x .28571
(ounces
gold at $35).
of
experiment
I
date
hope to show
that the gold standard with con¬
vertibility is quite unsuited to
a
to
;
except for the slight effect of im¬
commodity price level did ports already referred to, however
little, as it had done in all great the "revaluation" may be.
the other cases/ but to
nothing
The result of this new inter¬
like the level that the equation
pretation of the equation of ex¬
would lead one to expect,
The
change is of far-reaching impor¬
much interest.
At
one moment.
M-QP
of the former
rise
nomics, or a solution of the finan^
cial problems which are now of
so
only at
The
and, further, I may
that until they are scrapped
say
commodity does not appear in the
equation; it represents conditions
gold.
true
not
are
equivalent
was
is thus
Concen¬
thought will show that they
trated
of the dollar in this
which
dividual fire insurance stocks and
terprise of,the individual. It can
be done by-the State, and with
pean
Dec.
parent
a
col-
organization may limit
the freedom and hamper the en¬
we
on
on
are helpful in
studying the conf*parative investment worth of in¬
lectivist
that
value
free
•
have
John
re¬
carried to expiration at
——-—
these
which
or
to equals capital plus surplus plus
stick to its true this 40%. Another point to consider
function, which is to produce and is whether or not a company has
market what the people want.
If wholly of partially owned sub¬
business
For
indulges in
collective sidiaries.
example, United
judgments, then every other in¬ States Fire Insurance Co. owns
terest group will develop collec¬
no subsidiaries, and its
liquidating
tive judgments.
Furthermore, if value per share on Dec. 31, 1942,
judgments are based upon the was $51.27; orf th e other hand,
Aetna
Insurance
Co. owns five
power of a few and not upon the
wisdom of the many, the most subsidiaries and had a liquidating
manage
our currency,
now most<§>
aiso
on
comprises capital gold, was transferred to the Treas¬
and surplus, for in addition it in¬
ury in exchange for gold certificludes the stockholder's equity in cates valued at the new rate of
the unearned premium reserves, $20.67
for 0.5906 ounce of fine
which is uniformly and conserva¬ gold, instead of the old rate of
tively figured at 40%. To put the $20.67 for one ounce which had
matter another way;
experience ruled for almost a hundred years.
over many years indicates that if
In other words, one ounce of gold
a
.
In
T
and
goals
judgment is wise or foolish.
through undue consolidation
business judgment becomes col¬
lective rather than distributive, it
which
writers
subjects the dollar, by proclamation, at
have based their arguments on the 15 5/21 grains of standard
gold,
foundational
principles of eco¬ 9/10 fine, that is, 13.71428 grains
nomics as given in the text books, of fine (pure) gold. This "revalu¬
a
If
That is the
rtmarKaDie
the
which,
his
of the bitter opposition of
the American people to monopoly,
of
is
quantity of the commodity; P is
the price.
The frequency of ex- '
change of either the money or the
a
depreciation of
or
it
throw
as
source
tion
At
and ket decline of 20%.
accordance
Currencies, and
remarkable unanimity in their demand for a gold
standard with free convertibility and their
condemnation of devalua¬
Inflation, show
only
total
judgment is Identical
public interest only when
it is the judgment of .many, indi¬
viduals freely expressed in a free
*
Bank & Insurance
to
'V
•
t
expresses
pre¬
is
enterprise
-
„
%
The comments of bankers and other business men published in
the Financial Chronicle during the past six months, on such subjects
as The Gold Standard, Devaluation, Stabilization of
revived, and that "devaluation"
his will.s in 1933-34 was not only a neces¬
If we have learned that much we
sity but that as the principles of
can advance with courage to the
devaluation are better understood
democracy that
,
than wisdom.
Interpretation Of The Eqsatien Of Exchange
>
|
we
Depression and war have proved
2545
1 Editor, Commercial & Financial Chronicle:
the
without
had
there
release of indi¬
a
From
World
The
the
& FINANCIAL CHRONICLE
Department
Bond
pro¬
with
more
worth
of
con¬
advertising in all media,
greatest promotion campaign
history.
2546
THE COMMERCIAL & FINANCIAL CHRONICLE
Sloan Of G. M. Proposes Plan To Insure
Maximum Post-War Production & Employment
Sloan, Jr., Chairman of th<* Board of the General
Motors Corp., proposed on Dec. 10 a 19-point program to be adopted
by the Government, industry and labor to insure maximum pro¬
duction and employment in the post-war period.
Mr. Sloan's program, presented before the annual meeting in
New York of the National Association of Manufacturers, as given
Alfred
Comparison of Plans for International Monetary Stabilization
Compiled by A. M. SAKOLSKI of the Faculty of the College of the City of New Yofk
P.
Form of Organization
in the New York "Times" of Dec>
obvious that the rules in¬
economic
policies relating to the period of
reconversion must
established
be
That is of prime importance.
now.
otherwise
How
manage¬
can
ligently and be prepared to act?
should
Orders
to normal standards.
should
Orders
released
be
ernmental contracts should be es¬
tablished.
sibilities of the post-war era.
in¬
volved in the cancellation of gov¬
A proper
of
cancellation
selectivity in
contract
one
as
against anpther with the objective
of reducing the time or reconver¬
sion is of great consequence.
There
alsovproblems of the
are
of
clearance
plants
bp
to
con¬
decline.
has
far
I add a problem that
given too little
been
specific consideration? It is prac¬
tically certain that enterprise will
have to operate on the basis of a
part-war and part-peace economy
following victory in the European
of
theatre
Plans
war.'
should be
made accordingly.
The major part
of
reconstruction
national
policy
in
of the essential
governmental
the period to
of
There is
must
different from that pre-
valing in the pre-war period.
It
must
proceed on the principle
that lower rates will increase dol¬
lar
by
revenue
productivity
the
against
the
sources
Double taxation is
revenue.
levied
expanding
of
corporate
of
now
enter
prise; first, on corporation .earn¬
ings and, second, on stockholders.
Some
better way
Taxes
on
The
and
itself
must
be
drastically reduced. Taxes on
individuals must not be confisca¬
tory from the standpoint of preju¬
dicing the incentive to invest. To
insure
business expansion, taxes
long-term capital gains should
be drastically reduced or,
better,
entirely eliminated. Capital should
move
within the
econ¬
Technological
efficiency
should
be
encouraged by some
form of tax
advantage, having as
omy.
of view of
An
dominating influence
selling prices.
It
point
proper economic bal¬
profit
ment
be
eliminated.
Ex¬
opportunity to
an
directly
vidual
All
workers.
according
of the American
(both export and import)
Each
of the combined member¬
5d% of
and
the
of
expan¬
sion of enterprise that
may be
expected to develop, according to
present trends, as we pass into
the
post-war period.
member, shall
Each
Contributions to Fund
—Basis
assigned
it
to
terprise to direct its planning and
its
the
resources
minimum
toward
chiefly by the
amount
of
its
foreign
trade—tentatively at 75 %
J;
of this amount.
the
period
of
ess
un¬
proc¬
of reconversion.
Orders
should
Sav¬
released
promptly for the replenishment of
required for the pro¬
inventory
duction
The
Voting Control
liquidated.
pay
of
each
be
cannot
in¬
without its
based upon
U.
S. Plan.
billion
provision
dollars
of
addi¬
tional amount represent¬
ed
by loans to the Union
(Clearing Union) not
ceeding
50%
of
ex¬
each
member's quota.
con¬
fluctuation
the
deter¬
of
measure
responsibility in the
of
tional payments,
its
man¬
agement of the Union."
no
increase
quota of any member
to
be
national
consent.
made
without
its
four-
a
member
million
quota.
shall
plus
for
one
each
dollars of its
No country shall
than
more
one-fifth
of the basic votes. In vot¬
ing
U. S. Plan with
interna¬
without
100 votes,
additional vote
cast
as
in
not to be
—
have
one
Same
provision that
majority vote.
Each
each
"shall
gold holdings,
income, etc.
of
quota
member
mine
on
the sale of foreign
the votes of
Each
member
shall
have 100 votes plus 1 vote
for the equivalent of each
100,000 units of its quota.
decisions,
except
All
where
specifically pro¬
otherwise, shall be
by majority vote.
vided
exchange,
creditor countries shall be
increased
debtor
and
those
of
countries
de¬
creased. In voting on pro¬
or
re¬
members, each
country shall have one
vote.
The
Monetary Unit
f
value
"bancor,"
in
terms
be
fixed
Governing
of
its
of
gold
by the
the value
in terms
currency
of "bancor."
Value
terms
of
of
The "unitas,"
the
—
BoardJ Each
member 'to fix
of
137 1/7
gold
in
be
may
Same
as
U. S. Plan.
gold ($10 U. S.). Value of
each member
currency of
to
be
fixed
by the fund
gold or "uni¬
in terms of
tas"
"bancor"
consisting
grains of fine
and
be al¬
not
may
tered without approval of
85% of member votes.
Changed, but nothing said
of
method
its
ac¬
complishment.^
Clearing
Powers and Operations
debit
and
credit balances to be
car¬
ried
static.
come
The price policy of enterprise is
of its most vital
one
ties.
Costs
should
the basis of
on
utilization
the
all the economic
particular
resources
business
as
productive
should
business
be
made
out
to
one-half of the gold
be
used
for
transfer
only.
on
current account. To buy
two
years
ac¬
ber
reduce
10%
savings,
from
whatever
produce the most ef¬
in
from
Union
credit
members.
may
be
balances
of
Repayment
demanded
in
gold.
from
blocked
of
not
exceed
to
each
respective
Fund may-fix exchange
rates between the
promoting
ent
shall
deal
differ¬
The fund
countries.
only
with
member governments and
not
intrude
on
the
cus¬
tomary channels of inter¬
Oscar
on
Cox
General
Dec.
as
8
of
15 to
suc¬
Assistant
the
So¬
United
States.
Hugh Cox served for
a
time
Special Assistant to the Attor¬
General,
as
Division.
head of the Ap¬
Mr. Oscar Cox resigned
Assistant
Solicitor-General
and
fi¬
Fund's
net
trade
nance.
Hugh B. Cox, Assistant Attor¬
ney General in charge of the War
Division of the Department of
Justice, was nominated by Presi¬
as
buy
to
countries
balances
elim¬
Ass't Solicitor General
ney
provisions for
borrowing
the
the governments of mem¬
Every
Hugh B. Cox Named As
as
U. S. Plan with
foreign exchange it ac¬
quires in excess of its of¬
national
Mr.
and
as
ficial holding at the time
it becomes a member. For
job
opportunities
and
expansion of
enterprise, when expressed in the
form of lower prices to the con¬
licitor
countries
member
Same
additional
quota.
Cost
ceed
member
any
from
balances, but these
of each
and
To sell to
foreign exchange re¬
quired to meet adverse
balances,
predominantly
credit
measured
capacity.
fluctuations
of
through central
banks or through other
appropriate authorities—
no gold to be paid out on
to
long term of
realistic estimate of its
a
tual
established
practical rate of
a
over
responsibili¬
be
to
become counsel to the Foreign
goods, now
T "
'
Likewise,
orders for Economic Administration.
of peacetime
quota
altered
ings must not be permitted to be¬
pellate Section of the Anti-Trust
be
to
be determined by
agreed upon formula
an
fifths
indi¬
This is of vital consequence.
reducing to
employment involved in the
as
Eight
with
To
be
quota
a
measured
plus savings should be respected.
dent Roosevelt
It must be the responsibility of
the management of private en¬
dol¬
be increased.
country
creased
sumer.
opportunities
billion
its quota in gold.
The
Labor
relationships represent
probably" the most urgent social,
economic and political question as
affecting the entire home front
under
as
sent.
about
result
expense
commerce
Same
equivalentto
lars but may
country
The economic formula that pro¬
is equal to consumption
fective
taxpayer.
—
Board provided
U. S. Plan. V
duction
can
the
foreign
fund
at.least five
ship of the Union.
contribute.
source,
ships must be on the basis of a
"two-way" street. No world WPA
the
of
ability and their willing¬
to
duction
at
Fund
tively to be equal to 75%
progress
their
to
inate their harmful effects.
International economic relation¬
Initial
should
cessive taxes should be eliminated
for the sake of
stimulating pro¬
through lower prices.
Of
shall
should apply 'not
capital in the form of a
but likewise to manage¬
and
have
ness
a
incentive
only to
effort
Extravagance of Govern¬
A
Not stated —but tenta¬
Amount
with, not as the
between all groups.
ance
duction.
should
,
and
costs
by
ment
tions.
.
store
its objective the more
rapid turn¬
over
of instrumentalities of
pro¬
members, if they fulfill
requirements and condi¬
plied to them.
posals to suspend
of its
having banking
Governing
become
volved in the whole economy be¬
cause
—
activities
what
on
should
predominating issue between two
groups but as one of the most
important economic problems in¬
on
be free to
countries
invited to join — special
conditions
may
be ap¬
rate must be recog¬
dealt
No restrictions
be
It must be
wage
nized
found.
must be
enterprise
to
physical
applied, and
aggressively, to all the functional
activities of enterprise.
sciences.
must be dealt with from the
must be
Nations
original members—others
the
on
approach
tions and Quafilications
encouraged.
be
to
tax structure.
new
United
Membership Restric¬
Research should
limit.
no
confined
be
not
International Exchange
Union
try.
The
ment
follow reconversion lies within the
The
(with alternate) appoint¬
available, to the end that new
products may become available
and old products improved.
velopments
And may
so
states.
Engineering development should
be prosecuted aggressively as ma¬
terials « and
manpower
become
responsibility of manage¬
private enterprise from
ery,
the standpoint of its longer pull
rials.
position must involve, as its most
Consideration must be given to fundamental
concept, technologi¬
the release of material for engi¬ cal
progress. That is the great in¬
neering development of post-war strumentality that enables real
products, to post-war reserves as gains to be made throughout the
a
business expense
and to the system as a whole. That point can
elimination of overtime charges never be
over-emphasized. There¬
as the demands for war products
fore research and engineering de¬
plants, machin¬
work in process and mate¬
(Canadian)
A banking organization
International Clearing
Union—Governing Board —Governing Board con¬
appointed by the member sisting
of one
director
ment
verted, of the disposition of Gov¬
ernment-owned
ILSLEY
(U. S.)
released
be
promptly",, for plant and equip¬
and -expansion of working
assets to raise capacity to the new
levels as established by the pos¬
The financial considerations
WHITE PLAN
(British)
ed by each member coun¬
promptly to modernize equipment
in line with technological prog¬
ress and to bring maintenance up
aggressively and intel¬
ment plan
KEYNES
plants are being rehabilitated.
governmental
volving
supplies and parts while
stocks of
11, follows:
It is
Thursday, December 23, 1943
.
Lending Limitations
Debit balances
quota—a
per
charge
annum,
on
of
1%
excess
of
this quota—but debit bal¬
ma'y not exceed onequarter of its quota.
If
ance
debit
balance
reaches
one-half
of
quota
average
of
two
on
an
years-
it shall be entitled to
duce the value of its
rency
When
of each
member not to exceed its
re¬
cur¬
not to exceed 5%.
the
holdings of any local cur¬
rency exceed the quota of
that country, it shall de¬
posit with the fund a spe¬
cial
reserve.
When
a
country is exhausting its
quota more rapidly than
is warranted, the Board
may place such restrict i o n s
upon
additional
sales of foreign exchange
as
it may deem necessary.
A
charge may be levied
against
any
member
country on the 'amount of
its currency held in fund
in
excess
of its quota.
Normal loans, made
only for purpose of meet¬
ing adverse balance oi
payments, but under spe¬
cified
conditions,
loans
may be made to expedite
capital transfers.
^„Jy
Volume 158
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4240
show
KEYNES
WHITE PLAN
ILSLEY
9 '
•
(British)
(U.S.)
(Canadian)
With
City proper.
(5) A comparison of industries
in New York City with the iden¬
The
the. approval of
three-fourths of the mem¬
Union shall have tical
industries
in
the
United
the right to enter into States as a whole"
may, at its discretion re¬
provides con¬
mit charges on credit bal¬ ber votes, the fund, in ex¬ special
arrangements clusive evidence that those indus¬
ances and increase corre¬
ceptional
circumstances with any member to pro¬ tries which are represented in
"The,
•
Emergency Provisions
Governing Board"
spondingly those on debit
balances, if
conditions
sell
may
foreign
vide
ex¬
member
ply
facilitate
transfer of capital or re¬
payment or adjustment of
foreign debts.
The
fund, may
make
special
arrangements
with any member coun¬
try for the purpose of
providing an emergency
supply (of currency) un¬
der conditions acceptable
to
the
Fund
and
the
any
to
expansionist change
impending country
are
in world economy.
a
to
an
emergency
sup¬
of the currency
other member.
See
Universal establishment
10
Operations
control
a
Operations
Side Head 9
Union
of
relate to current accounts
of
:
'
•
of
of capital
movements
provided if
outflow of capital from a
but
control
that all local cur¬
holdings shall be
from any restrictions
re¬
agree
(domestic)
Commer*
cial & Monetary
lating to excess of debit
and credit balances (see
rency
Operations
side
free
head 8).
However,
there is a provision that
"monetary reserves of a
member
in
of
excess
as
approval."
make
domestic
policies,'
Members
12
.
shall
be
withdraw
titled, to
year's notice, subject to
their making satisfactory
arrangements to dis¬
charge debit balance.
executive
The
13
Miscellaneous
Provisions
obligations may be
suspended and after one
year
a u to ma t i cally
offices
Special
.
provisions
balances.
York,
Governing
Union
for
may
commendations
w a r
bers
make
to
re¬
mem¬
regarding capital in¬
vestments arid change in
domestic fiscal policies.
Board meeting alternate¬
Of Hew York Oily,
and ARTHUR M. WOLKISER, Ph.D.
readers
wou/d
be interested in review¬
th factual highlights and conclusions contained in the study on the
structure of the City of New York/the "Chronicle" asked Dr.
Arthur M. Wolkiser to prepare the following digest of the voluminous
ing
economic
;
study which
prepared.)
he,
in
collaboration
,
New York City's Non-Industrial
'
Activities
The
Report
declined
New
area
from
York
1929
City,
1939
to
with Dr.J Iyan Wright, had recently
the New
(2) While
New
York
City,
in
well
as
re¬
better
York
City to
sales show a considerable decline
from 1929-39, the number of wage
earners
in wholesale and retail
establishments
has
increased
New York City as well
as
in
the New
York
as
do
parallels a
trend presented
by other, large
cities. This growth bf service in¬
6% for the average United States
tion
and the decline in immigra¬
caused
by
the
established in 1925.
has
restrictions
Since the city
York
City the significance of
which only future census figures
may
reveal.
-
(3) New York City has shown
recruited addi¬
population from the relatively more stability in its in¬
country and this trend is likely to dustrial activity than the United
continue, it is probable that New States as a whole.
York will increasingly derive new
;(4) While none of the states
foreign trade; its financial activi¬
inhabitants from the economically contiguous upon New York State
ties; the city as a cultural center;
and
New York City, such as Penn¬
and
culturally most
backward
the
new
budget make-up; the
rural areas where reproduction sylvania, Massachusetts, New Jer¬
pudget trend; long-term and £hort- rates have not
yet begun to de¬ sey, and Connecticut, as well as
term debt; city against Fe'deral
cline.
upstate New York, present a better
-centralization;
cross
internal
U.S.A.
limited
space
currents
migration.
those
only
findings which may be
of
the readers
the Commercial and Financial
particular interest to
pf
Chronicle.
to
always
its
in
The
available for ,t)iis
digest permits a review of
also
tions
;
picture in terms of wage earners
New York
City's Industries
As
than New York
area"
tendencies,
York
one
favorable and the
unfavorable.
New
York's
City, developments
in the New York
regards New York City's in¬
dustries,. the study shows two
other
(including
City "industrial
besides
New
City the counties of West¬
chester in New York State and
represented by the
non-durable type of consumers' Bergen, Essex, Hudson, Middlesex,
goods which do not fluctuate en- Passaic and Union in New Jersey)
industries
are
In
the
City the shift
in emphasis from largely regula¬
tory functions to an ever-growing
field of variegated services has
coincided with a definitely smaller
ability to carry the1 load.
Perhaps the most promising as¬
pect of the city's critical position
is the growing
understanding on
the part of its top officials that a
permanent solution of the budget¬
problems within the not-too-
treme
matter of
a
ex¬
urgency,
Conclusion
out that while the
study points
picture of New
York City's present position may
look dark indeed, there is no rea¬
son
for despair.
Of
New York City
course,
can
and wait
as Penelope for
Odysseus. Vast plans
must be laid for important
changes
in the city's physical structure to¬
gether with blue-prints for pos¬
the return of
sible solutions of various
discussed
in
the
of a sound balance between cen¬
tral and local governments is an
important condition for the future
welfare of New York.
'
'
"
the findings of the City Planning
Commission in its annual report
for 1940: "New York's current fi¬
nances are
in excellent condition.
The recent
history of public administration in
the United States has been char¬
acterized by the clear emergence
of two trends: the concentration
of
governmental functions in the
hands
and
a
of
the
Federal
authorities
corresponding decline in the
effective home rule of states and
municipalities.
The
continuation
of these trends threatens
our
rep¬
resentative
democracy as the very
foundation upon which our Amer¬
ican' commonwealth rests.
The
re¬
versal of these trends may prove
of vital importance in ameliorat¬
ing the city's fiscal position.
More than any
United
States,
.
.
as well as economic and
sociological factors. In reviewing
the report, it,is, however, neces¬
sary to, exclude from discussion
many interesting questions vWith
which it deals such as the city's
organiza¬
world.
problems
study, such as
the outlying districts of the New better freight ' and transportation
facilities. Furthermore, better le¬
York "industrial area" was
dupli¬
cated by a similar shift in the gal provisions are necessary for
wholesale and retail fields.
arriving at more beneficial land
(4) Again, as was the case in and building values through a
manufacturing, the relatively un¬ program of land use appropriate
favorable showing of New York to the recent more stable popula¬
City in wholesale nad retail trade tion trepd of New York. Appar¬
is accentuated by a larger increase ently the city is now prepared to
.4'.
raphy
the
over
of New York
case
not sit
as
so¬
In its conclusion the
wholesale trade.
a
all
of
area
performed by govern¬
York
;
rate
field of tendencies ob¬
work
tions
and the United States.
—
,
and geog¬
the urban
for
with the an increase in retail trade.)
producers'
(6) Thereare no figures for
goods, and also provide a diversi¬ service sales available.
However,
fication only surpassed by that of
the tremendous rise in the number
Los
Angeles
and Philadelphia. of
wage
earners
in New York
On the other hand, this sort of
City service industries between
consumers'
goods
industries is 1933 and
1939—remaining in per
usually carried on in relatively cent
only slightly behind the in¬
small establishments. Thus, while
creases in the New York area and
there has been a growth of about
the
United
States
cycle
on
conditioned by history
expanding demand
city services in general, The
latter is only a reflection within
distant future is
Wholesale and retail trade
(1)
plant, the average New York City
the Economic Basis!of the Wealth and Welfare factory since 1919 has shrunk by dustries seems to have
replaced
x>f New York .City fulfills at least a twofold ; mission:
to outline 16%.,
national trends in industry as a
-New York's many pressing problems ind to present the material
The following conclusions are
conditioning factor in urbaniza¬
in a form which will make it- appropriate for (use in Brooklyn drawn
from
a
comparison be¬ tion.
Incidentally, -it is the colos¬
College's course on New York City. While the study is devoted to tween New York City and the sal
growth in the service indus¬
an examination of conditions
in New/York, it deals in terms and United States in rpgard to num¬ tries
which is responsible for the
ber of wage earners and value
considerations which are appli-^
belief of certain observers that
New York City's Growth
added by manufacture:
cable to other and probably all
service employment in the future
American cities.
While New York City has con:
;
(1) The city's industrial activity will
provide ample relief for man¬
has
declined
in
inued
to
comparison with
grow until 1940, the year
For a full grasp of New York'
ufacturing unemployment of a
that
of
the
United
of
the
latest
population census, its
States, although
multi-faceted existence the study
Cyclical or secular character.
not at an alarming rate.
'
tries to see the city as a living rate of growth has slowed down
considerably.
(2)
Between
1937
and
1939
Among
the
chief
New York City's Finances
Organism of human beings -who
is the decreasing birth there has been an upturn for New
work in it but whose daily life is reasons
The study identifies itself with
^
ments and the
ary
The study indicates that
comformity
in
our
the
the
business-
of
of
some
city's most important industries.
area.
(For the United States
number
of
wage
earners
showed a decline in wholesale and
ly in these places.
(In-the belief that many
expenses
for operating
city, particularly in view of
state-imposed mandatory incre¬
Fund, may
Of Union shall be situated
By IVAN WRIGHT, Ph.D.,
creasing
obligations to
be sus¬ dropped by majority vote. in per cent of population for New do everything in its power not to
pended by a majority of Members not) indebted to York City than, for the New York alienate but to welcome and en¬
Union
maw
withdraw area and the
the member countries.
country as a whole. courage business enterprises.
after. 30 days' notice.
In addition, the re-establishment
(5) While wholesale and retail
the
in London and New
the
Member failing to meet
its
to meet its
settling / abnormal
with
least
dustries from New
draw
a
at
City Area
showing than New
York City, indicating that the sta¬
tistical shift in manufacturing in¬
Any country may with¬
by giving a year's
notice. A country failing
en¬
on
for the retarded
reason
of
(3) In wholesale
measures.
Withdrawal Provisions
principal
growth
and
the
mental bodies and civic
made
provisions re¬
garding
agreements
of
member nations respect¬
ing
internal
financial
values
unfavorable
tail trade the New York
Other
assessment
the constant pressure towards in¬
cial
to
ments.
monetary
decline in
than that of the United States, the
of payments for percentages, lost in retail sales" al¬
most twice as much as the nation
period of two years.
as
a
whole, the city held better
than the United States in regard
ures
recommendations regard¬
ing
a
City
Administration
is
haunted by a conflict between the
servable in the whole
adverse
designed to correct
the disequilibrium in the
country's balance of pay¬
be held in another coun¬
may
an
The
(6) Since the rate of population
increase in New York City during
the
1919-39 period was greater
balance
to their use. The coun¬
ing acquired by the Fund
agrees to adopt and carry
out recommended meas¬
working balance shall hot
try
without
Credit Union
if it has had
try whose currency is be¬
a
New
near
and not-so-near future."
for
is
Members may revalue
their currency up to 10%
countries
Member
control
provided, except that
of Internal
Control
method
No
H
inside
as a result of
highly effective
organization of labor forces is the
resulting in
net purchases of foreign
exchange from the Union.
'
than
cost
member
,
City have done much
outside
Budget requirements in the
York City.
development of the
former as compared with the lat¬
ter during that period is accentu¬
ated if the comparison is made in
terms of per capita wage earners.
It seems that comparative labor
A member country may
capital
movements not regarded regulate capital transfers
but
not tranfers on cur¬
as essential to the Credit
Union.
rent account.
of
Control of Capital
New York
of better
member country.
,
slightly better trend than
those in New York
"
•
a
2547
direct
other city in the
New York has a
vital
and
interest
in
the
prevention of another postwar pe¬
riod of "isolationism" which again
would,
restr.iet
as
in the 1920's and 30's,
city's activities as a
the
commercial and financial servant
both
to
own
our
country and to
the world at large,
If New York's
postwar period
are attacked in an expanding tide
of world trade, all the difficulties
problems
in
the
of detail will be
the other
minimized.
On
hand, if the decline of
world trade should continue in
a
postwar period of increasing trade
barriers and tariffs, the economic
position of New York City may be
Budgets are balanced regularly. undermined
beyond the possibility
The city is well within its debt
of repair through isolated meas¬
limit; its bonds are selling above ures of
spbsidy or reconstruction.
par, and' borrowings are at low
rates "of interest.
Judged by all
Representative Lewis Dies
past standards, New York is per¬
Representative Lawrence Lewis
haps in a more satisfactory fiscal
position than at any time in the (Dem., Colo.) died on Dec. 9 in
Walter
Reed
Hospital
in
past. It is equally true that within the
the past few years the metropolis Washington at the age of 64.
Mr.
has
made
greater progress
in Lewis was' dean of the Colorado
major public improvements than delegation, having been elected to
ever
before in a similar period. Congress in 1933 and recently re¬
to his
sixth term.
He
Yet despite this progress, and the elected
time
excellent condition of its current
served
for
finances, the City is faced with
exceptional difficulties in financ¬
mittee
on
the
and Capital mittee
on
Rules.
ing both its
expense
a
on
the
Com¬
Judiciary and -for
the past few years on the Com¬
i
ntuWswi
ftMfunwVO,
<v>-«
■
FINANCIAL CHRONICLE
THE COMMERCIAL &
2548
Dr. K. S. Latourefte Sees Peril In
Depriving
Japan Df Way To Earn Livelihood
Governments"
U0u* Reporter On
'
By S. F. PORTER
We're
holiday
the
into
now
concerned,
is
market
bond
increase plus
With the currency
typical Christmas absenteeism and year-end adjusting of portfolios
becoming dominant factors in the price trend. . , . Offsetting factors
to the seasonal dullness recently have been the retirement of 4he
of debt interest, but these
significant as the customary activi¬
professional traders and institutions at this time 01
year.
The result of all this is that'the market is quiet, shows
little trend, is best left alone unless you've extra cash you want
to invest for the "carry" between now and Jan. 18. . . . .
,
The one exception to this is the 2% loan of 1953/51. . . .
It's stopped at 100 6/32 to 7/32 at this writing, hut that repre¬
sents a considerable advance over the year's low of 100 2/32.
And as was written here last week, there's every sign that
the weak holders of the 2s have been mostly cleaned out. . . ,
The dealers still own large amounts of these, but outside of
the insiders' portfolios the main ownership of the 2s may be
placed in the "permanent" classification.
The 2s still are the cheapest bonds on the list. ,*. In comparison
with securities of slightly longer and of slightly shorter maturity. , . .
Switches from both sides into this newest of the 2% coupon may
be recommended without qualms until the bonds rise to their proper
relationship or the rest of the market sinks to the level indicated.
The latter is unlikely while the Fourth War Loan is overhangZing and official support is certain to assure the success of the next
minor and surely are not as
are
both
of
*
.
.
.
.
.
v
.
.
.
drive.
...
.
,
Forecasts
line. Vy
7.7
v
■
.
.
If the
.
will be in
.7.
movements of prices, chances
near-term
the
for
.
bring them to their appro¬
the rally in the 2s to
on
priate place range from Vs to lk point from this level.
bonds do get up to the 100 10/32 or 100% mark, they
As
the standpoint of
are
well
Dr. Kenneth Scott
of Christ in America, it
the
is learned
"Times"
York
New
of
Dec.
15, indorsed as "a measure
required by justice" the proposal
to return Manchuria, Formosa and
the Pescadores to China; declared
that
independence
Korean
was
approval
of the program of refusing to let
Japan retain the islands seized.in
and
overdue
the
last
expressed
war
mandated
the
or
does.
.
The preponderance of opinion among dealers is we'll have a
smart recovery early in January. . , . Aided by reinvestment de¬
mand.
Initiated by official sources. .
Offset in part by dealer
.
.
.
.
liquidation;
.
,
7-.71"
empire, the Cairo com¬
munique falls short of the position
of
the Atlantic
Charter, which
assures all States, victors as well
as vanquished, of access, on equal
terms, to the trade and raw ma¬
terials
of
needed
the
which
world
their
for
economic
are
pros¬
War World," the Commission's bi¬
monthly publication.
Giving the further views of Dr.
Latourette, the "Times" quoted
him
contended,
there is
with Japan
after she is defeated may be moti¬
vated by a spirit of revenge and
But,
moral
principles
of
just
a
-
basic
the
violates
attitude
islands that
are
take cognizance of
expected
the
omissions,
short of
stating the basic prerequisites for
falls
far
just and durable peace in the
Far
East," he argued.
"Hong
Kong is as Chinese historically
and in population as Formosa and
Manchuria. The Far East, equally
with Europe, requires the opera¬
tion of an international organiza¬
tion such as was proposed by the
a
Moscow declaration."
Cairo
The
in
to
2342..
page
conference
issue of
our
7.
7
was
You've the details
which
now.
with
banks
commercial
the formula under
deposits will be permitted to
Information
..
.
.
time
on
and 2!/4S during the January war loan campaign. .
predicted here several times, the formula indicates most,
banks will be forced to limit their subscriptions to meagre amounts.
They're getting "token subscriptions." . . . And that's about
buy the 2%
And
their
therefore
Dec.
9,
7;-,'/7 ,77/
.
'
7
;
:
'
7, 7 7/, 7 7 ./ 7. ■
" •
7
exact, commercial banks may subscribe up to 10% of
savings deposits or up to $200,000. .
Whichever is
They may buy 2%s, 214s or Series F and G war bonds.
or
be
total
lower.
.
....
.
And they can't hold more than
$100,000 of the Fs and Gs.
.
any of the new bonds in the
Fourth War Loan will be 200.
And the purchases made in the
Fs and Gs are of no importance to the open market, anyway. .
.
.
.
Which
that the
means
.
.
top holding of
...
.
That's
the
ties of the
.
.
attractive
most
banks
point which
one
214s.
we've
offered
been
prohibited from buying
are
will.have to depend
ings for volume.
commercial
7
may
.
.
banks
insurance
on
.
And
still
you
make
in
any
years,
the
long
no
.
.
7
insurance companies will buy heavily in the 214%
rather than the 2%% category this time.
.7 For the simple reason
that they already have huge portfolios of 2%s.
And other nonbanking institutions are expected to concentrate on the issue as
.
well.
new
.
.
.
.
As
these
confirmation of the
bonds
in
these
several
enthusiastic
comments
.
made
.
on
columns
recently is the recent statement of
John Whitney Richmond, Deputy Manager of the New York State
War
Finance
Conference
Committee.
of
the
New
.
.
.
York
from all dependence
set up currency
their
manipulated
benefit but intelli¬
own
extreme
He
measures.
be
keep the
in Japan there may
that
additional
to
urge
exchange value of the yen low to
aid in the restoration of export
trade in the face of political ob¬
stacles.
,
So despite the absence of the commercial banks, these
214s should be one of the best bonds of the war loan drives.
.
away
the West and
the
However,
.
break
adds
and trust fund deal¬
market.
nationalistic desire to
prevent
elaboration to know that
Government
expe¬
may
some
gent self interest may operate to
the
as
and China
rience
on
Speaking at the Post-War Planning
State League of Savings and Loan
Mr. Leavens describes as
"prob¬
able"; a desire almost everywhere
for a stable price level "in view
of the inflation which all of these
countries
.7
^
India
that
for
large amounts, the market
company
need
as
Dec. 16.
MY Leavens cites the possibility^
on
systems that can be
hit the trading probabili¬
For although this bond seems one of the
.
trade
rencies,
experiencing,
now
are
whether to the great
extent that is
place in China (and also
presumably in the occupied coun¬
tries) or to the milder extent in
India and presumably in jfapan."
taking
resume
to
be
to
join in any
world monetary system that may
be generally accepted by the West
at least to
or
tion
with
to
maintain
the
a
connec¬
of
the
Western country with which
they
politically connected
with
are
which
currency
or
they have the most import¬
relations."
ant trade
Indicating that "the showdown
the spirited fight by the over-
in
1
he-counter market to prevent the
York Curb Exchange from
New
making
unlisted
a
postponed
the
economy
by
mild
inflation."
:
according
to
Mr.
the most important ar¬
gument against reviving the sil¬
In
"the
is
standard
have
could
China
fact
that
assurance
no
the
date for
as
hearing on the
application by the Curb Exchange
new
a
extend unlisted
to
trading privil¬
tion
stocks of six companies, a
which faces unified opposi¬
from the National Associa¬
tion
of
move
Securities
in
others
Dealers,
the
Inc.,,
over-the--
market.
"The
involved
stocks
are
the
$10
par common of the Lukens
Steel Co., the $1 par common of
Merck & Co., Inc., the $20 pair
of Northern Natural Gas
common
Co., the
Public
no
common of the
Co.
of
Indiana,
par
Service
no
"The
of the
common
par
Co. and the $10
of the Puget Sound
common
par
Power &
Light Co.
Power
Sound
Puget
&
Light stock was the subject of a
separate hearing which was con¬
solidated
with
issues."
such
a
4
SEC on Dec.
by the
hearing
on
the other five
She would be better
basis.
lot with the
throw in her
world
to say:
on
"The Commission "set Jan. 19
with the
to
Dec. 13 for the third
on
"Times" went
political meddling
silver would not again upset
dollar
American
was
of counsel for all parties.
Phila¬
delphia advices to the New York
that" American
off
the
"
by the Securities and Ex¬
change Commission at the request
China,
Leavens,
ver
of
field"
lime
Warner & Swasey
V
stimulate
invasion
mass
securities
allied or have most important
relations, said Dickson H. Leavens/expert on Far Eastern cur¬ Inc., the
country with which they are politically
.
,
To
their
probably will find it advantageous to join
post-war world monetary system generally accepted by the West
at least maintain a connection with the currency of the western
any
.
.
all.
.
Advantageous To Far East To Join 7:777"
Post-War World Monetary System; Leavens
Far Eastern countries
or
seem
advantage
and
as
continue
eges to
re¬
■7"7/• 7 V 7:;7
THE
AND
to
Europe after the war, and it
would
counter
BANKS
THE
people of these countries
or
of
..7\7
■
these
to
"Due
ferred
"In failing to
restoration
to be taken from
,
communique
and
durable peace.
the
of
Hong Kong to China, the possible
independence of the Japaneseoccupied territories in the East
Indies and southeast Asia, or the
future
disposition
of
Pacific
he
danger that dealings
this
mention
no
Japan.'
follows:
as
mother'
1
•
.
perity."
Dr. Latourette also noted in his
.
.,.7.
tion in her
article'that the communique made
...
it always
which
in
Japan will be left by this reduc¬
The "Times" reports
that these expressions of Dr. Latourette's
personal views were
contained in an article in "Postoperations.
.
as
situation
of their
;
.
their trade relations with America
using for military
is
she
slands
obvious probability since
an
economic
those
to
national monetary system.
All of
these countries, however, may be
and
the
struc¬
do at present about an inter¬
can
of Churches
Council
Federal
the
from
economic
whole
less
"There is little that the Govern¬
ments
a
of the year. ... That has
retaliation.
November. *■ . . A year-end rally
"The disposition of the territory
may materialize but it can't be of anything but minor size under
the circumstances.
7 ■> The market is struggling with too many proposed in the communique will
adverse factors, the major of which is the money situation. . . . require so drastic an adjustment
in the economy of Japan as to
And the money market's tightness will be aggravated rather than
the
livelihood
of
her
lessened until after the Christmas holiday passes and until the banks threaten
"We believe
are relieved of heavy withdrawals.
That brings us to January, oeople," he wrote,
nothing important until after the turn
see
been
'Disappointing'
Direction of the Commission on a Just and Durable Peace of
tee of
are
countries;.
just and durable peace in the Far East,
Latourette, historian and member of the Commit¬
insuring
their
ture
relation
disappointing" from
spect to Japan and the Far East as "extremely,
and
developed than those
of the West or are in a subsidiary
Describing several features of the Cairo announcement outlining
the intentions of the United States, Great Britain and China with re¬
and Treasury payments
December notes
ties
Finds Features of Cairo Announcement
far as the Government
as
season
.
.
.
Thursday, December 23,1943
or
with
some
system that gave
reasonable promises of stability.
FHLB Directors Named
currency
To lemtser Bank Eds,
pub¬
James Twohy, Governor of the
Standards
Inquiry, New York, says the Far Federal Home Loan Bank system,
Mr.
Leavens,
in
a
paper
lished by the Monetary
expect
establishing a
Eastern Nations can hardly
have
to
post-war
voice
a
in
monetary
international
announced
banks
Loan
system.
the
"All
Far
Eastern
countries
cn
directors
of
Dec. 12 the election
Federal
of
in
Home
cities
various
by
their member institutions and the
profitable bonds
together," he says, "though con¬
reappointment,
for
four-year
taining half of the world's popula¬
terms, of the public interest di¬
"If India obtains a considerable tion, are relatively much less im¬
rectors of most of them. Associ¬
measure
of self-government," he portant in world economics." Mr.
Leavens adds:
ated Press accounts from Wash¬
adds, "it is not impossible that
"In the pre-war years they con¬
there might be a strong opinion
ington reporting this added:
a
favoring
Associations, Richmond said:
'
,
"Analysts of Government bonds connected with highly regarded
financial institutions have reviewed the general bond situation thor¬
oughly.
Considered opinion recently expr/essed to us indicates that
the new 214% issue will prove to be one of the most desirable and
ever issued by the Treasury Department.
There is
feeling that this issue will undoubtedly prove to be tremendously
and that in view of current interest rates, security and
inherent possibilities, based upon the fact that commercial banks
are
excluded from buying until September
15, 1946, these bonds
popular
should
enhance
the
lated
price around 1% points in the open market/to
bring the price around 2.10% yield/prior to the time such banks
find them eligible for purchase."
That's
observer.
is
going far and beyond the
.
.
.
And
the
reason
for
more
the
of
a
managed
tributed
world
favor
and
exports
to
than
less
trade,
or
United
the
many cases
(all for two-year terms), and the
the
214s and 214s by individuals.
bonds
new
frowned
is
upon,
for restricting purchases without
Bank borrowing to buy
but deciding upon* a formula
.
.
interfering seriously with the
financing tech¬
niques is not
...
waiting for and buying to the limit.
...
*
INSIDE THE MARKET
few
weeks,
trading.
care
over
banks
to
against
the
clue to the position of the 2V4s, when pen/
rnitted to
The bonds now are selling at 10374, to yield
about 2.18% to call date.
Which is just about right for the new
2/4s of 1959/56.
It indicates a small premium is anticipated
as
will
a
...
.
.
.
...
and
suggests the bonds will
place.
move
quietly and easily into their
proper
easy.
so
to
try
.
.
.
.
.
,
.
Best
guess
form
of
free
riding
seems
nicely timed
of
by
call
of
a
thb
$1,519,000,000 3V4S of 4-15-46/44
Secretary Morgenthau 'to give market a lift,
N.
Claude B. Gandy,
N.
Y.;
Francis
Y.,
restricting purchases of the
W. Pellett,
re-elected;
Tottenville, S. I.
V.
D.
Lloyd,
Ridgefield Park, N. J., re-elected;
and
N. J.
Henry
'
7'
N.
Paterson,
Stam,
;
r
Boston—Reuben A. Cooke, Bur¬
lington,
H.
Vt.,
re-elected;
Weeks, Providence,
Edward
I., Nor¬
addition, these bonds are man U. Armour, Salem, Mass., and
mostly in the hands of dealers and professionals.
.
Outside in¬ Sumner W. Johnson, Portland,
vestors have been getting out of the bonds for many months, and
Me., re-elected
rightly so, considering the difficulties of "rolling over" maturities ;
Public
interest
William J.
and the minor profit, if any, involved.
Best tax-exempts to hold 1
are the long ones, which will be outstanding for a while.
Pape, Waterbury, Conn....
but
Christmas factors
intervened.
.
.
In
.
.
.
these last few days on
Newburgh,
is Federal Reserve
united campaign
more and more
im¬
But Federal action to start
•.
.
—
...
No talk
now
problem locally, will ask individual
against large-scale loans, especially to
,
.
Announcement
was
.
handle
rules
pass
this
probable.
The 2%s of 1958/56 may be watched with
especial
next
Banks
i
■
New York: Legrand
.
"strangers."
.
...
worth
alone.
\
other
seem
banks
situated, the directors elected
reappointed public interest direc¬
2/4S
.
"The cities in which the
are
tors include:
long quotation just printed
.
total
In
Kingdom
optimism comes from an "official" source.
Is exact
on. a long-term basis.
Of course, Richmond and all the
optimists on this bond may be put into the wrong by an
unexpected twist of the market.
But as of this moment, the
is
of
States or
their banking systems
entire Government bond market setup and new
and
15%
about the same as
the share of the United
which could be manipu¬
to
new
cautious forecasts of this
that the
break with sterling and
establishment
currency
in
a
.
.
Volume 158
Number 4240
THE COMMERCIAL & FINANCIAL CHRONICLE
Huge Travel Increase Seen If Railroads Provide
when
to,
and
2549
generally
v'
^
companies have paid the cost.
our
Travel
Modern Coaches"
had
we
has
v%,- >\Aai
<Si
But
(Continued from
"Long Distance Visiting"
New
"Not only have the young men
women in our armed services
and
from
traveled
to
country
end
one
of
the
the
other, but there
great dislocations of
the centers of population due to
have
been
the
erection
of
enormous
war
York
the
after
the
people
is
war
travel
and
over,
our
will
undoubtedly
do
a
great deal more lorig distance vis¬
iting.
'.
v' ■
"The
reduction
time
of
be
can
increase
railroads
of
will
ORD-ABBETTGROU
Long trains could go every
An increase of 500% in this
Angeles, with the usual layover
in Chicago, takes 64 hours on
the
is
reasonable
a
service
Florida
showed
coach
estimate.
mentioned
increase of
an
after
travel
1,200%
one
year
extra fare
trains, and 85 hours
in
the
of
lower berth
operation.
other
trains.
The
fare
Improved Trains and Service
"After the
war
would
we
"I
recall
ing what
difference
could
when
make
two
young secretaries in our company
decided to take their two weeks'
vacation
in
visit
a
many
My first reaction was, 'How out¬
rageously extravagant. Why, these
young women would be put to all
the expense and would see very
the
in
the
Chicago
to
these
points
the
1935
transcontinental
passed
travel
1905
and
in
1915
a
day.
that
has
time.
500 people and would
the
$10 per mile
and would save the
30 hours in reaching
his destination.
"This
mass
the
of the American peo¬
ple, and it is from them that the
railroads expect and must seek
power
their
business.
in
will
been
Just
be
Passenger Car Pioneering
before
the
which
advantage
the
elevated
railway
arts
coaches
of
in
the
the
ad¬
thirty
promising
his
of
project with
years.
our
of
Steel
Cars
company
began the
railway
passenger
the
office force to
so
so
was
to reduce the dead
as
berth
in
the
bed
structural material
a
as
stainless
steel, which gets its great strength,
along with its ductility and re¬
sistance to fatigue, through cold
running a round trip a day (854
miles), and each in demand be-1 rolling.
This assures a vehicle
yond
their
capacities.
These which can retain all the strength
Zephyr trains are still the fastest of a 160,000 pound coach and
in the world, making the run in weigh but
100,000 pounds,, It so
6
hours
and
15
which
minutes,
happens
that the
material
has
a
averages about 70 miles per hour J beautiful color, with greater reThis service tapped such a large sistance to corrosion than even
and previously unsuspected busi- silver or gold. It needs no
paint-
that
ness
the
inaugurated
Milwaukee
Road
ing to protect it from the atmos-
similar service and
phere. Dust and dirt can readily
be wiped off. The beauty of the
lowed suit. In this instance, and trains made up of stainless steel
in almost every other" instance, l cars in itself is a commercial asset
the competition has made more to the railroad.
It is attractive to
North
the
business
a
Western
fol-
quickly
for the competing
than
they enjoyed before.
"Another
example
is
roads
the prospective rider and adds to
J the esprit de corps of the train
■
be
to
travel
where
the
Seaboard
road
inaugurated
with
its
this
'Champion.'
had
service
Within
to
pacity, and
|
service
with
,
its
in
ca-
war
j
York
Service
"From this it is easy to
a
if
project
picture of what would happen
fine
a
fleet of trains
could
put in the Boston-New York
vice,
to
there.
With
these
trains, acceleration and deceleration.. take place quickly at
new
stations, thus saving
minutes at every station
J the route.
generally.
Better Boston-New
here
the
hard to get
as
"One of the factors in encouraging travel is the lapse of time
from
both
year
before the
were
are now
a
doubled
be
even
reservations
they
Rail-
Meteor,' and the
Coast
Line
promptly
paralleled
as
be
'Silver
Atlantic
trains
fast
a
by giving them something to
proud of.
crew
found in the New York to Florida
be
ser¬
some
along
kind of equipment to make
more
rapid speed, but it is also possible
to get from station to station in a
shorter time without' excessively
high speeds,
trains
which
the
and
colors, with pure air of
right temperature,
the
service
from railroad officials so courte-
.dation
.The
hours
;the
a
the
traveler
day.
home
not
for
in
Most
and
little
less
than
comfortably
war
furnished
will be
round
to
Boston
New
trip
return
$5.
in
such
enables) pass quickly in the mind of the
the
same
people
stayj
York
occasions, but
vice will induce
a proper
1
sfer-|
women to, go to
passenger,
and
the
travel
from
one place to another, instead of
being something to dread, will be
a thrilling sense of pleasure,
"Generally
traveled
his
morning
wife
had
she
been in
a
and
emphat¬
would
sit
up
year round
was
expanded
now
have
One official
$40. The train
been
and has
bought,
capacity,
in
operation for
years.
"Of course the automobile
peo¬
ple
are
are
sure
also
to
passenger
ambitious, and they
a great share of
get
traffic.
people, too,
The
offer
comfort
and
They
have
which
Idle
Idle dollars do not grow.
dollars
do
small
save
units
for
we
men
business
folks have
and
only
prices rise.
as
earn
of
these
of
losses.
in
It
United
securities
one
or
should
States
classes
appropriate
for
the
it
can
purpose—where
earn
it should,"
as
sH
1|!
Distributors Group has just re¬
an attractive little folder on
leased
Low
Priced
Shares,
ing
letter
makes
class
a
Group Securities, Inc.
the
of
The
cover¬
flat
state¬
ment: "The record is clear that for
business.
proof
statement and
shows
yore
of
The
an
interesting
New
York
sum¬
of Dr. Edwin Walter Kem-
mary
merer's
new
pamphlet entitled,
"High Spots in the Case for a Re¬
turn
the
to
International
Standard."
Dr.
out
strongly,
quite
standard
Copies
in
of
Kemmerer
the
his
for
post-war
pamphlet
Gold
comes
such a
world.
may
be
obtained from the Economists' Na¬
tional Committee at 70 Fifth
Ave.,
City.
•'
"
Company has achieved
pleasant "change of pace" from
,
,
The Long
the usual
run
of investment
com¬
that
pany
literature
in
an
original
appreciation i "Season's
Greetings" card which
in the securities
presently owned that
sponsor is sending out. "1944"
would, amount to 175% on a re¬
is represented in the form of a
turn to their 1936-37 highs.
This
lusty youngster who looks like he
compares with a market apprecia¬
is really going places.
tion of only 50% for the Dowi|s
if
jJs
the
market
average
Jones
Industrial
basis.
same
The
Average
the
on
cember 11 Brevits shows
Investment
Research
De¬
partment of Distributors Group in
a
current
debunks
issue of Railroad
the
current
News
impression
presents a chart showing that the
ratio of railroad payrolls to oper¬
ating
has
revenues
clined
in
Massachusetts Distributors' De¬
*
of many roacls. The memorandum
opment of the arts in recent years,
and with the
application of these
issue
a
depart at frequent in¬ that a drastic increase in railroad
they will naturally wages is on its way and that such
large expansion in their increase will threaten the solvency
"But the railroads need not fear
this competition. With the devel¬
15
Letter carries
invest in low priced stocks," The
folder presents convincing
and
a
future
ber
New York
this
Incorporated
63 wall street—new
greater-than-average profits in a
rising stock market one should
of
Request
in¬
Govern¬
in other
GROUP#
more
be
on
DISTRIBUTORS
The bulletin concludes: "Cash-
remain idle to invite
Prospectus
JitST
income.
no
can
tervals,
have
they
They
A Class of Group Securities, Inc.
beyond the reserve for current
needs—should not be allowed to
airplane
ambitious.
are
time.
every
actually
since
year;
de¬
1938
new arts to the
building of future despite the increases in railroad
railway equipment, there will be wage
rates
which
have
been
a
tremendous expansion in the
granted during that period.
number of
#
*
passengers carried by
the railroads,
especially for long
National Securities & Research
divergence
between
again the
stock prices
in London and New York.
ments Brevits:
"It
Com¬
equally
seems
obvious to us, however, that if the
future destinies of England and
America are, in fact, to be as
closely
interwoven
as
indicated,
the
great divergence in financial
judgment of security values can¬
not
exist
interminably.
"Naturally, the London market
may
return to the relative levels
existing
in'this
country;
but
as
mentioned in Brevits before, if the
.
distance travel."
Corp.
in its
issue
current
of
R. N.
Nichols Is With
ject,
benefit?"
with
ILL.
—
become
on
A '
Robert
H.
associated
this
the
Barcus, Kindred & Co., 231
formerly President of Nichols
& Co. of
Nashville, Tenn.
Homans Co. To Admit
Homans &
Co., 52 Wall Street,
New
York
City, members of the
New
York
Stock
Exchange, will
admit Dora P. Homans to partner¬
ship in the firm
on
Jan. 1, 1944.
handicap
article
contains
(Continued
on
page
2553)
or
a
subject and points out that
record high level of
current
$17.7
billions
inventories
our
South La Salle Street. Mr. Nichols
was
The
—
all of the adverse influences thai
good deal of helpful information
Butts, Kindred I Co.
has
"Inventories
English markets have weathered
In¬
vestment Timing explores the sub¬
so
one-half: ous, that the time in transit will
people do
go to Boston except for un-
usual
after the
three-quarters, and of-J restful
saving of two and
to save
has
not
night the whole
Nichols
roads
four
accommo-
every
next
claimed
CHICAGO,
Making Travel A Pleasure
and
splendid coach
that
ically
six
the
they
reclining
f
will
a
said
would
covers.
.
a
(Special to The Financial Chronicle),
'
'
.
use
in
came
'
V
"The
and
and bed
that
out
sleep in
the
the follow¬
on
Dollars shrink
work and
Mr.
cents
3.
families.
and
72
value,
2.
investor's
It is possible with this
making'- the fun in three
one-half, hours instead of
fering
pointed
position
We chose
sleeper,
SHARES
purchasing
at
1939
1.
the
train, the 'El Capitan,'
running from Chicago to Los'An¬
geles, would save the passenger
$40, as compared with the lower
weight and increase the collision
car.
some
discuss
own
..a
1939.
ing points:
a
strength of the
our
popular that they had to be ex¬
panded into seven-car trains, each
problem
their
ad¬
was
not, asked
one or
Bledsoe
These became
dollar
its
RAILROAD
purchasing
since
present
the
of
bulletin elaborates
\
able
the .enterprise
would have to
three-car trains.
the
of
the
dollar
ment bonds—and
of
and that fine and
structure
Burlington inaugurated
fast service with two little
in
the
terms
possibility
"An all-coach train service was
first tried by the Santa Fe Rail¬
of
Showing
is almost limitless.
much
a
The bulletin illustrates
decline
power
vested
West
Stainless
the
luxury
continued, but it
be
These trains covered the distance
very
course
the
whether
in
our
Of
promoted to much
greater volume than, we have had
in the past.
The other
Such
car,
Keynotes.
great
to
ministrator/Mr. Samuel T. Bled¬
soe, wanting to assure himself of
taking
study
would
appeal
for the coming year, this observer is confident
as
<8>-
East, in the West
Middle
"When
service
a
enormous
never
EOS 'ANGELES
♦
"How sa$e is cash?" asks Key¬
Corp. in a recent issue of
an
can
JERSEY CITY
stone
have
travel
.
substantially greater public acceptance of
investment company offerings than has occurred in
1943.
in the
standard
the
of
sort
CHICAGO
.
that it will witness
passenger
in
a
v
many
past. And
years
con¬
gross revenue,
how to get
superior qualities of metal 'in its
Then
iv
Certainly there is more reason
for the great majority of
investment company sponsors to be
optimistic at this Christmas season than there has
been for
of
would
way,
preceding
anywhere from 9 to 11 hours.
"•
'
prosperous New Year!
certain trains in¬
and
vance
which
etc.,
trains
a
were
the
by
Minneapolis.
meals,
These
And
$irroundings in
There
there
war
between
trains
through
carried through
greatest accomplish¬
between
troduced
by
be
railroads
comfortable
since
do is found
carried
was
will
cars
improvement in these particulars
splendid service between
and
the
TwinCities.
Prior
many
of their
that
"Another instance of what im¬
can
that
pany
and
Chief.'
fare,
$70.
railroad
%ere considered comfortable seats
as
v
Merry Christmas!
hours, and at
yield
now¬
our com¬
large number of rail¬
passenger
cars
of
steel—•
fireproof, strong, and with what
Zephyr Trains Triumph
proved schedules
carry
way
established 'El Capitan,' and this
the luxurious 'Super
carried
possible
It is the belief of
building
newly
train made the same fast time
about
for
be
and comfort that is
adays.
ments
quicker than me to
appreciate the benefits of a more
rapid travel, and cheaper. They
on
in
that
been
cost
would
sleeper-coaches, would
cne
were
trip
been
there
sist of ten
"The
i found, how¬
that the cost of the round
trip was only about $100, and that
by working on three Sundays they
were able, actually, to have eight
days on the Coast. These young
their
has
he
cases
has
it
traveler
rival.
ever,
made
the
that
by vehicles which lack the charm
little of California.'
women
to
needed, that many new trains will
be put into service so as to give
more frequent times of
departure,
and to give earlier times of ar¬
California.
to
Nevertheless,
obvious
surprise at learn¬
speed and
my
a
expense
never
^
Investment Trusts
hope
a
contemplated.
^
INCORPORATED
NEW YORK
$263.62 for the round trip, and
very few people can afford it.
San Francisco in 50
otherwise
^
the good trains is
on
they have handled the war situa¬
even
v
Lord, Abbett & Co.
and.
tion.
would
Prospectus upon request
OF INVESTING COMPANIES
on
reduction of the cost of travel will
have been
e;.l
Travel
are
other trains
from New York to Los
Angeles or
trips
Preferred
Stock Fund
Cheaper, Better Coast-to-Coast
"A trip from New York to Los
travel
made
dual incentive to make
>..
busi¬
ness.
"The railways have earned and
a
'M'Ai
drifts &:!
\W*
Union
receive
passenger
received great praise for the way
which
|
the
their
possible by faster trains and the
be
i
that
gotten
•
■
saved.
The
to
seat
for coach fare and hotel bills
will
desire
for
Boston
or
reserved
hour.
a
when the great public starts
travel, price will become a fac¬
tor, and it is from the great public
to
lunch,
or calling, or shopping, or theater,
and get back to their homes the
same
day.
This
trip
between
cities'becomes inexpensive when
plants in sections of the country
sparsely populated before. All this
promote
2529)
page
"
expensive and
expected to enjoy it.
have not
we
wj & • Sm
fe
been
of
manufacturers'
not
post-war
would
In
is
the
economy
threat
to
that
it
seem.
conclusion
the
study makes
the following point: "Two factors
should
remove
apprehension
of
post-war
'dumping'
and
wide¬
spread price slashing; the pent up
civilian
ment
demand,
and
a
Govern¬
of
inaugurating
stockpiles and orderly disposal of
goods, signs of which have already
begun to appear.
program
><s
$
Hugh W. Long & Co.'s Decem-
Prospectus
from
may
authorized
be obtained
dealers,
or
The PARKER CORPORATION
ONE
COURT
ST., BOSTON
THE COMMERCIAL &
2550
Walter Whyte
Monetary System To
Reestablish Trade On Sound Basis, Says Clark
talk to the effect that commissions
beginning to
recog¬
by backing
nize old offerings
away—Look for dullness fol¬
by law
such
a
limited
The reasoning being that if
estate field it should be good
York State may exact are
real estate brokers in New
Says
on a graduated basis.
law is good in the real
field.
in the securities
"Chronicle" has been saying
reaction—Stocks to
right along—that anything done in the securities field with
become
buys when setback
respect to limiting profits or compelling the revealing of in¬
materializes.
side markets will be used as a precedent in an attempt to
just what the
Now that's
lowed by
been
hasn't
There
remake the whole of America.
WHYTE
By WALTER
much
The
factis, of course, that even if it were true
that the
limited by law in
State it would not follow that it was a good
commissions of real estate brokers were
change in either the news or New York
market
picture
since last
thing.
It so happens, however, that the commissions are
week's column was written.
not really limited at all. That is to say, in a contract of sale a
On the news side it can be
broker can stipulate any fee, large or small, that he sees fit
said
that the President is
for bringing the seller and buyer together.
It's only where
back in the United States, the
the fee is not mentioned in the contract of sale that the fees
approved
railroad workers
strike
Congress,
and
vote
a
fighting the war with at least
one, if not both eyes, peeled
on the political situation with
to next year's elec¬
tions, has packed up and gone
home for the Christmas holi¬
regard
days.
*
*
the general practice to stipulate
brokerage commission in a contract of sale, trade custom
was not changed by passage of the law in question.
It must
be remembered, too, that a i%al estate broker acts as an
was
the
agent just as does a broker in securities, and it has always
been the practice of both to disclose the commission charge
to the client.
A dealer, or operator, however, as they are
S called in real estate
parlance, IS NOT OBLIGED to
.
:H
fixed
by statute apply.
However, since it
reveal
price or profit to a buyer because of the passage of
law pertaining to commissions.
As was mentioned in our columns last week, organized
his cost
Congress, incidentally, de¬
considerable effort
the
voted
prior to recessing in attempt¬
ing to work out a solution to
the soldier-vote problem.
inflation
solution similarly
expediency and po¬
threat,
based
a
on
Authority in the investment field, they will also want to
Enterprise," by Dr. Henry M. Wriston, President
of Brown University, also starting on the cover page.
read "Free
v
•
*
*
*
Meanwhile, the stock mar¬
ket is about the
the "Chronicle" of your
the
cause
in
a
views
substantial
on
the subject you are helping
The
manner.
names
of those sub¬
mitting comments will be omitted where requested. Com¬
munications should be addressed to Editor, Commercial &
Financial
Chronicle, 25 Spruce Street, New York 8, N. Y.
only mirror
More Dealer Comments On NASD Rule
from isolated
DEALER NO.
reflect
It takes its
coming events.
occurrences
We
and acts
accordingly. Its final
judgment is translated into
market prices which you see
as prosaic movements on the
stock ticker.
Right
-t
*
now
the
mass
ket followers
American
seem
to
of
mar¬
see
economy
a
with,
their
little
disturbance
corporate
to
financial
or
structures. Whether the ideal
can
be
Rather
morass
found
is
debatable.
than
of
dig through a
figures I prefer to
look at individual market
ac-^
tion for clues. For in the final
analysis
accrue
market profits will
from
market
action
and not from involved statis¬
tical analysis.
(Continued
We
we
condone
no
a
We feel
%.«,
an excellent work and serving the
worthy cause in proving the folly in
decree, on gross profits.
page
2553)
around
around the United States. It would
profits to around 5% may drive many
that gross
■«'
profit
on
some
>
:
or
final
consum¬
mated business in certain instances should result up to 10%, partic¬
territory of over 60 miles radius
and serve a comparatively few clientele with a very broad, complete
financial service. Our service is designed to serve the special indi¬
ularly in
our
case,
as
cover
we
a
personal form of personal contact and
comparative large amout of time and
consultation.
This
attention
customer.
We
per
believe
requires
some
work the
NASD
is
Canadian
plans,
say¬
;
•
fundamental
or
,
ultimate
objective of all three plans, is to
make
possbile the restoration and
of healthy interna-^
development
tional
trade
after
the
as
war
art
perpetuation of economic
the possible danger of
fostering discrimination not only
in currency matters but in trade
as
well.
In the second place, it
perity.
would
along with other necessary collar
or
and
blocs
make
to
seem
necessary
essential condition of world pros¬
seek
teral
the
of
case
and
international
an
would
seem
vulnerable
to
agency
at least as
to be
political
criticism:
Finally, it is not enough to stabil¬
ize only the key currencies or to
Great Powers
ance—not only to one
to the major
Mr.
Clark
the
still of import¬
are
collaboration
national
one
provision of direct credit from
country to another, possibly
on
quite a large scale as each
major country must carry the bur¬
den of its satellites.
The grant¬
ing and accepting of such credits
would be just as difficult as in the
In the last analysis they
form and measure of inter¬
a
the
arrangements,
world
solve
to
which,
will
the
enable
complex
economic
problems of the post¬
period instead of merely re¬
peating the disastrous errors and
war
frustrations
thirties."
of the
Referring to critics of these
plans who have seen in them dhe
Seeds of a possible post-war infla¬
tionary boom, Mr. Clark said that
"it
would
and, if
the
desirable to
be
necessary,
control
to defer during
transition
period access to
of the credit
made available by the
part
some
facilities
least
at
monetary agency."
new
another but
powers."
explained
why
Now A
the
Partnership
LOS
ANGELES, CALIF.—The
Pacific Company of California, 623
South Hope Street, members of
portance to Canada and expressed
the Los Angeles Stock Exchange,
his pleasure at having been select¬
ed to discuss this'subject at New formerly a corporation, is now a
York University's current series partnership. Members of the firm
are Robert H. Parsons, J. L. Ryons,
of lectures on Post-War Goals and
problem of international currency
stabilization was of particular im¬
Economic
are
Reconstruction. "There
at least two important reasons
for
the^. special interest of Cana¬
dians in this problem," he said,
"First,
we
Warren A. Pike, and Kenneth M.
Payne,
All
have
a
active and healthy
world
trade.
Al¬
though our population is less than
12,000,000, we are today the third
or fourth most important trading
country in the world and even in
try
in an
functioning
normal times about a third of our
income
of
sale
The
derived from
is
goods
second
or
services
and equally
peculiar structure of our interna¬
tional balance of payments.
By
this I mean that while the United
Kingdom
is
normally
Canada's
Canada is normal¬
ly the best customer—and also the
of the United
trade and
financial relationships, our inter¬
ests are about equally divided be¬
tween
your
country
and
the
United
Kingdom. When, there¬
fore, the American dollar-pound
sterling exchange ratio is un¬
stable, Canada gets 'whipsawed'
largest
and
partners,,
King, limited partner.
formerly officers of thh
were
greater per
Investment Suggestions
capita stake than any other coun¬
national
general
Alexander
predecessor corporation.
and he added:
debtor
—
between these two
of the
and
"The
tion
States. Considering both
transactions
White
ing:
therefore tend to lead to the crea¬
best customer,
taking of excessive profits in our business, but
feel the limitation of gross
doing is fine and
key currencies.
constructive, but we are afraid they are going a little too far in this
profit limitation decree, as it is too inflexible and arbitrary to be
sound in the long-term interests of our business.
In order to protect ourselves against possible reprisals from the
In
the
Saxton &
New
issue
current
"Preferred
Stock
of
Guide,"
their
G.
A.
Co., Inc., 70 Pine Street,
York
City, have prepared a
preferred stocks
list of bonds and
which they believe offer interest¬
possibilities.
Copies of the
"Guide," which also contains quo¬
ing
tations
on
preferred and common
public utility stocks, may be had
upon request from G. A. Saxton
& Co., Inc.
Pittsburgh Rys. Look Good
The
current situation
in Pitts¬
burgh Railways System, particu¬
larly certain of the underlying
bonds, offers attractive possibili¬
ties for appreciation, according to
a
study prepared by T. J. Feible-
man
&
41
Co.,
York City.
Broad
St., Nevy
Copies of this inter¬
esting study, which is available to
dealers only, may be had upon
from
request
Co.
T. J. Feibleman &
,
DEALER NO. 101
Any dealer who fails to attempt to protect his business from
the outrageous "bid and asked disclosure rule" proposed by the SEC,
NASD at this time, we ask that you keep our name confidential in must have lost his self-respect and should take a plane to Germany
this connection.
'
and live under the rule of Adolph Hitler.
NO.
DEALER
While
100
are
the New Deal has created.
of
Get the
noses
of the Frankfurterites out
the
trough and not only investment dealers but farmers, mercchants, large and small corporation, relieved of the time and expense
of bureaucratic regulations, can again devote their energies to the
my name.
making
a
living
.
Will appreciate
under any commonsense
Constitution of the United States.
Second, it is outrageously unfair. There is no more reason why the
investment dealer should .disclose the margin of profit than the
peanut vendor or the hardware dealer.. Third, it is hot only imprac¬
tical in that it imposes obligations on the dealer, which in many cases
would consume an immense amount of his time and effort in obtaining bid and asked quotations, but'would also leave open for the
meddlesome SEC innumerable instances for dispute in • construing |
the dealer's complinace with the rules. It would cause endless frictioh j
and suspicion between the dealer and the customer, who, in many,
and probably most cases, is not a fair or competent judge of what a
To be more
waiting for the pendulum to swing from the high
point of New Deal folly, and it is surely in motion at the present
time, why not turn over to the SEC full charge of the investment
dealers and abandon the intermediary NASD. The latter is collecting
an enormous aggregate sum to police its own members.
The Congress,
in its present mood, would not add such a sum to the SEC appropria¬
tion.
In fact, under the theory of States' Rights, the Congress can
be addressed by dealers in various States, to curtail the SEC powers
through the reduction of appropriations. This is the only method
by which the country will rid itself of the multitudinous bureaus
we
actual business of
on
doing
are
small firms out of business.
an
planning
post-war changeover.
And following this reasoning
is looking for companies that
can
manage
the transition
for
you
the recent NASD 5% profit
99
vidual requirements in a very
*
.
believe
investment securities field in
in
widely separated portions
of the world, evaluates them
group
important reason is related to the
''
cue
a
revolving
abroad.
distorted reflection, as
a
sole function is to
its
of satellite countries
Great Britain
and a dollar area with a group of
satellite
countries
revolving
with
the
of events that has refused to
cast
5% profit
spread that could be accommodated in today's issue are
given below. As in the past, no letter favorable to the 5 %
wants
decree has been omitted. And don't forget that in informing
higher prices and Congress,
accordingly, reasons that a
little price boost won't hurt.
:
letters from dealers on the
Note—Additional
the prob¬
bloc
farm
The
lem.
Clark said, *f)art of his address to a discussion
proposal, Mr.
"appears to accept the splitting up ,of the respective advantages and
of the world into a sterling area disadvantages,
of
the
Keynes,
amongst
try must exert themselves to
litical considerations appears
to be the answer to
This
war,
5% rule upset will shortly be apparent. apply an 'international code to
them alone. Many countries which
all over the coun¬ are not included
efforts to have the
*
With regard to the
,';
after the
tem
Individual dealers and dealer associations
the utmost to have this rule
Finding the solution was not rescinded.
They may be sure their efforts will not be in
too difficult for some of the
vain..
THE 5% RULE MUST NOT AND WILL NOT
lawmakers. This group would
STAND.
/;
simply deny the voting privi¬
Those interested in this subject will not want to misS
lege to members of the armed
reading "Price Fixing and Securities Business," by Messrs.
forces or so involve it in red
A. M. Metz and Edw. A. Cole, which starts on the front
tape as to make the whole cover of this issue.
Since the NASD is nothing more nor
procedure meaningless.
less than a resuscitation of the much discredited NRA Code
*
set up an international monetary sys¬
W. C. Clark, Canadian Deputy Minister of Fi¬
nance, declared on Dec. 15 that unless some currency code embody¬
ing the principal features of the Keynes, White, or Canadian plans
is adopted, world trade can not be re-established on a sound basis.
In an address before the New York University Institute on
Post-war
Reconstruction,
Mr.^—1—1-——
—
Clark criticized proposals to sub¬ When pounds sterling cease to be
stitute an international monetary freely convertible into U. S. dol¬
system based upon existing "key lars, as from the beginning of this
currencies" for one based on a war, our lot may be hard indeed."
Mr. Clark devoted the major
new international monetary unit.
Defending proposals to
(Continued from page 2527)
There has been some
Market
World Needs International
Willing To Sacrifice Small Dealer
Firms To Appease SEC
NASD
Tomorrow's Markets
Thursday, December 23, 1943
FINANCIAL CHRONICLE
your
withholding
specific, in the first place,
construction, the rule violates the
reasonable
dealer's profit
should be.
_
-
»
hope the industry will arise as one unit to oppose this rule with
all they possess.
I should prefer that you do not use my name if you publish
I
this letter.
Volume 158
Number
Ohio
4240
THE COMMERCIAL & FINANCIAL
CHRONICLE
Ohio Brevities
Municipal
Comment
could expect some
bonds
per
In
year.
Chairman
$16,000,000 of
cludes
appraising
the effect of this volume
market, it is advisable
to
market
be
out
of
Beam
its
as
agent for
Penn
duced
debt
is
$28,-
McLaurin
their
total
bonded
of
average
some
northeastern
Phil J. Trounstine
surance
Life
of
Sun
Canada,
Co.
and
Victor
J.
Life
Insurance Co. and Donald E. Han¬
volume after
same
ithe war, and this amount of
duction
75%
in
available
greater than
supply
of
000.000
per
Which
bonds
of
Cold
large percentage of bonds sim¬
issued for refunding pur-
ply
poses.
,
,
William J. Perry, Acting Sec¬
keep in mind that during 1943
$8,716,000 par value of Ohio mu¬
nicipals came into the market
sellers
balloting
mittee
of
in the secondary
amount, added to
the $8,000,000 of new Ohio issues
far
funds,
the
largest
of
are now more
the
and
ities,
made
it
the
nominating
&
early last month.
#
than 50% in¬
is
available
Shepard
out
announced
questionable
to
source.
the
market
'
v. '
Technicians
representing five foreign governments will
a
of
means
replace
promotion of three of
nounced
Dec.
on
into the market after the
ing that $50,000 had been granted
the institution for the
study by a
donor whose identity he would
not make public.
The plans for
the project will be drafted in the
studio
prices
down.
Moreover,
creased volume will
be
witnessed
bonds
and
*
of
Paul
at
the
time
in¬
"Herald Tribune"
Wiener
said
went
The purchase of
construc¬
Government bonds in 1944 to
and their
vert their present
peak
until
available
are
now an
been
construction, which will likely not
pntil after Japan, as well as
Germany, have been defeated.
cannot
post-war market.
people
rates
it
to
the
as
say
same
that
war
here,
with
the
lasts.
that it is
borrowing
the
$75,-
borrowing needs
will only be a frac¬
war
General
higher
war
for
people
money
due to
home
are
rates
F. D. Kellogg has left the Presi¬
dency of the-Cleveland Quarries
Co. and has been made Chairman
the
Board
of
following
special
Kellogg
a
directors.
asked to be relieved of his duties
President
as
Elmer T.
and
recommended
Ripley who
was
President.
named
struction,
support to the feeling
that money rates will not rise,
the
and people will not be demand¬
demand for money
a
building,
consumer
other
ing loans from banks until this
con¬
currency
purchasing
in
and other demands. Again space
does not permit an adequate
discussion
can
it
is
of
anyone
this
subject,
predict
cannot be
nor
But
denied that money
today
plentiful, with over
$20,000,000,000 currency merely
in
;
circulation, to
say
nothing of
the increased billions of
deposits which individuals and cor¬
porations
*
and the
large
now
have in banks
billions of investments,
which people have in the form
of war bonds. These facts lend
in circulation, deposits
and investment accu¬
to
measure
satisfy
the
post-war demands of the people.
accurately
of money rates.
banks
mulated, have first been used in
,
the future
and all
the
units
It would appear that the inves¬
tor should concern himself, not so
much
with
the
probable^ future
level of bond prices
instead, and to
exact
gree,
vestments
to
withstand
possible
any
need
cannot
be
known
If the unit devised is
tion
to
a
railroad
"hospital, dormitory or
station," it will not do,
he
said.
"It
of
these
things
must
do
so
any
or
need
we
all
not
know in advance what its ultimate
purpose
the
:
might be."
Wiener said the
identity of
men
representing foreign
ernments
without
could
the
not
be
permission
governments.
to evolve
of
their
major intention
was
associations
and
cooperative
1943.
The
Fourth
War
Loan, in
January
and
February,
launch them well on their
will
way
to
attainment of the goal, which the
League
officials
confidently
pect will be exceeded.
goal
was
Roy
ex¬
The
1943
practically doubled.
W.
Larsen,
Minneapolis
savings and loan executive, has
been appointed General Chairman
of the 1944 drive, it is announced
by John F, Scott, St. Paul League
President.
Chairmen
for
the
drive in each of the States will be
announced before the Fourth War
Loan
begins.
adopted at the
said
that
tive
resolution
meeting
setting of the goal
the
serve
The
national
"an added incen¬
as
for
increased
purchase of
Government bonds by our associa¬
standardized construc¬
tion unit to be used in the
"relief,
tions," since
rehabilitation and reconstruction
program" in post-war Europe, Mr.
Wiener said that it could be used
ent
in
the
associations'
affairs
combine to push upward the total
of war financing they do.
A rec¬
a
in this
country in erecting housing
projects which
could
later
be
taken
for
apart
"conversion
no
funds
into
were
ord inflow of
vestments
many
petuate
"temporary
It
erecting
structures
Designs 'already
Mr.
completed
invest
was
Mr. Wiener explained,
applicable to two-story, build¬
20 to
Mr.
with
in
spans
width
from
42 feet.
Wiener
and
co-inventors of
Mr.
Sert
are
construction sys¬
a
Pearl
have
a
the
associations'
shown
a
net
increase
of
now
160-family hous¬
ing project and community center
New
Appointments
Are Announced
By
Morgan & Go.
of Newark
The board of directors
sibilities,
regular
Insurance
offers
Company
interesting pos¬
according to
memorandum
J. P.
on
a
of
J. P.
Morgan & Co. Incorporated, 23
Wall St., New York City/ at their
Ins. Stock Attractive
detailed
the situation is¬
sued
liam
I.
Arthur
McNicol,
meeting appointed Wil¬
Foley to be Treasurer;
H.
Sanford, Edward L.
George
C.
Henckel,
Berkeley Gaynor and Lathrop\S.
by Mackubin, Leg'g & Co., 22
Light
Street,
Baltimore,
Md.,
Haskins
members
Presidents; Robert P. Howe to be
of
the
New
York
and
Baltimore Stock Exchanges. Cop¬
of this memorandum and the
being used in
is*
Harbor
Firemen's
not the least of which
system
good position to
a
heavily in Governments.
pointed out that since
$675,000,000.
firm's
This
*
current
holdings of Government securities
Wiener and Mr. Sert include
designed,
are
the
by
universal parts for both wood and
steel structures. The
building parts
Ov,V
quarter of the year, plus twice as
as normal loan repayments,
place them in
ultimately result in "ghost towns."
Nor was he
interested, he said, in
adapting such a unit to private
housing.
V°
savings and in¬
new
during
available forcommunity service."
He said the aim was not to
per¬
buildings,"
which might
\P*
factors inher¬
large
ies
post-war depression.
con¬
ting this goal for the coming year,
$100,000,000 higher than that of
tem which Mr. Wiener calls "ratio
a
and
Road
Illinois
banks, according to their nation¬
wide
organization,
the
United
States Savings and Loan
League.
A resolution passed
by the war
conference of the League
recently
in Chicago is
being transmitted to
the 3,700 member
institutes, set¬
structures."
is
of savings
Cermak
inflow of
will
goal
W.
Chicago,
loan
the
adverse developments in business
conditions in the post-war years—
possibilities
Accounts Solicited
2116
be
would
*
:
a
gov¬
revealed
Savings and Investment Share
fund^ into "fighting dollars"
adaptable with equal satisfac¬
generally, but ings
far greater de¬
with the ability of his in¬
a
to
purposes—especially where
in advance."
not
adaptable
rural schools where
•
strong"
predicting
after
of
Although
'
tion of the current requirements.
Other
ture
Mr.
George Gund,; President of the
bank, announced employees of the
bank
received
approximately
$65,000 in Christmas bonuses..
low
000,000,000 a year to prosecute a
global war and yet not be able to
when
Brigadier
research department,
meeting
so
With Cleveland Trust
ated
of
after the
Statistical As¬
1931, he has been associ¬
Government
do
Vice-President
since
difficult to agree that anyone can
maintain easy money while the
is
Co., has
:
maintain
can
long
as
Suffice
feel
to
appear
Government
But these
Bankers
Leonard P. Ayres in the bank's
maintain
low money rates after the war.
Space here prohibits an adequate
discussion of this aspect of the
nominated
sociation.
Other talk has been heard that
Government
the
Assistant Vice-President
of the American
Post-War Money Rates
the
of
of the Cleveland Trust
for
be
1.
employee
New# York Telephone Co., and
more
be voted by the people
can
materials
construction
Reserves $300,000.00
Accounts Insured Up to $5,000
$400,000,000 of
tion of full-size models
of
54-years of Successful Service
By
Savs. & Loan League
on
temporary buildings, allowing
stock-piling and mass manufac¬
annum
0
Goal Is Fixed
the
system
one¬
per
January 1, 1944
$400 Million War Bond
directing the study.
*
Whittington,
Trust Co. of New York and the
probably not
all
*
M.
dividend at the
Assets of $3,900,000.1)0
Lester
for
Loren
loan
cooper¬
Housing Authority of the National
Housing Agency.
Wiener,
architect, of 33 West 42nd Street,
who with J. L.
Sert, City Planner,
Mr.
&
rate of
is. learned
from
the
News*
——
York "Herald Tribune" of Dec.
22, begun four weeks ago at Sydney,
which reports Dr. Johnson as
say¬ N. Y., under the Federal Public
for strains and stresses
under various conditions of wind
war
scale that will put
on a
Will pay a
in post-war
Europe, it was an¬
by Dr. Alvin Johnson, director of the school.
21
This
is
PAUL
bomb-shattered structures
testing
F.
ST,
federal"savings
Research, at 66 West 12th Street,
devising a demountable housing unit envisioned
economically erecting temporary public buildings to
>.
will not be
Pasadena, Calif.
association of chicago
Representing Five Foreign Governments
Participating In Project
.
come
LOAN
&
of pasadena
38 South Los Robles Avenue ★
to say:
for 23 years,
;
(ML
head¬
ate with the New School for Social
New York City, in
The
-It '
its officers.
Elmer
his
Richter, an employee
who was made Sec¬ and weather and on
various kinds
retary
and
General
Manager last of soil will take
Finally, it is quite possible that
place on a vacant
£ other institutional selling of mu¬ year, has been elevated to Vice- lot at 550
Barry Street, the Bronx.
nicipals has been on a larger President, and retains the General He said the
project would con¬
scale during 1942 and 1943 than Manager's post. A. P. Tyler moves
tinue for five months and that
will be seen after the war, espe¬ up from his job as Secretary to
preliminary uftit had already been
cially if municipal prices should the President to Secretary of the built and was
undergoing winterdecline then, as some prognotica- company.
Donald C. Adams was
testing at the Bronx location.
made Assistant Secretary and con¬
tors have indicated.
/
The ultimate aim of the
study,
Thus, it would seem1 that the tinues as Assistant Export Man¬ Mr. Wiener
said, is to "devise a
volume of new Ohios that
'.•// 1:
may ager.
universal
from this
$10,000
ASSOCIATION
Undergoing Practical Tests
Addressograph-Multigraph Corp.
secur¬
municipals will be
more
to
Co., and E. E,
Finley of Finley & Co.
Ballots
containing five names were sent
State
vested in U. S. Government
whether
Elected
ley,
the market this year through pub¬
lic sale. The two funds which are
by
com¬
election
annual
D. A. Hawley, partner of Ilaw-
into
came
the
partner of Gillis, Russell & Co.;
total of
a
nominating
on a
for
group were Richard A. Gottron,
This
during 1943, gives
$16,716,000 Ohios that
Stock
officers.
r-
of Ohios
sold
the, Cleveland
Exchange, announced results of
through sales by State funds, who
were
the
largest
institutional
market.
of
make
Technicians
as
Institutional Selling May Decline
retary
BUILDING
Dean Witter &
Demountable Housing Units Now
of
Co.
Quaife, Special Master
in Chancery at Detroit.
Furthermore, it is advisable to
to
to
Resources Over $5,000,000 ★ Largest in Pasadena
Portland, Oregon, where he
continue
Investments
associated
Lynch, Pierce, Fenand
$100.
Current yield 3%.
quarters.
Ohio,
Donald L.
-
Mr.
invited.
'
is to receive
a total of $248,359 in
royalties and
$18,669 in interest from McLouth
Steel Corp. of Detroit, on order of
after the war,
figure includes a
Co. in
will
V
Process
Metal
Youngstown,
year
latter
*
.
Life
Mutual
of Aetna Insurance Co.
*
$16,-
Sidney Rosen-
are
of Connecticut
is
estimated
an
issues
new
son
re¬
Merrill
& Beane
ner
at par —
•
Secretary-Treasurer.
in about the
blum
with
1944.
formerly
was
At all times, all investments have been paid
demand
Assurance
New directors
per
Ohio
more.
Exchange, will admit
-
As¬
Insurance
Vice-President
of
Life
Mutual
Co.; Edward L. Reilley of
Mutual
Since 1925, at all times, Mutual has paid
3% or
on
York Stock
Ragen
W. Allen
He is general
year.
It is likely
municipals will be
paid off, from cash redemption,
that
SEATTLE, WASH. — Foster &
Marshall,
1411
Fourth
Avenue
Building, members of the New
L. Brooks Ragen to
partnership in
their firm on Jan.
head.
State
During the
period between 1/1/33
1/1/43, all Ohio subdivisions re¬
an
other
25
utives' Club has named
reduction, through
of the gross debt of
subdivisions.
.000,000
'
and
Institutional Funds Invited
Admit L. B. Ragen
3,
10-year
by
in¬
.Cleveland Life Insurance Exec¬
the
by
payment,
iOhio
taken
which
area
is State Chairman.
this amount with the prob¬
able amount of Ohio municipals
will
the
Ohio counties.
com¬
pare
that
of
Cuyahoga County (Cleve¬
land)
the
on
Foster & Marshall To
(Continued from page 2532)
Herman J. Sheedy of McDonaldCoolidge & Co., was chosen Vice-
(Continued from page 2532)
2551
Insurance
Stock
Index
for
to
be
Vice-
Corporate Trust OfficerjAlfred S.
Foote
to
be
Assistant
November may be had from Mac¬
and Homer P.
kubin, Legg & Co.
vestment Officer.
upon request.
Assistant
Treasurer,
Cochran to
be
In¬
fi¬
permanent improve¬
ments.
This plan gives the city
the city's financial structure is leeway to spend $l,u00,000 a year
in new bond money, but provides
materially
stronger
than
was
a
Municipal News & Notes
housing
local
Various
ities
author¬
announcing their inten¬
are
dispose of an aggregate of
tion to
$89,220,000 notes, including $43,467,000 scheduled for award on
Dec. 29, and $45,753,000 on Jan.
6.
The issues to be sold on the
former date (all bearing date of
Feb. 10, 1944*) are as follows:
the
in
Maturity
Nov. 8, 1944
Issue
Boston, Mass.™-,$11,516,000
New York City~_
2,215,000
Authority—
1, 1944
Aug.
Washington
Pa.—
Coutity,
Allegheny Co., Pa.
Payette Co., Pa.™
McKeesport, Pa.:.
810,000
3,778,000
Nov. 28, 1944
2,016,000
Nov! 28, 1944
1,015,000
1,840,000
378,000
Detroit, Mich.
14,800,000
Decatur, 111.
,
1,719,000
Conway, Ark.
192,000
Alexandria, La.
; 665,000
Bremerton, Wash.
1,892,000
Glendale, Ariz—
207,000
Mesa, Ariz.
' 234,000
Norfolk, Va
Fla.
„
Aug.
7, 1945
May
8,1945
credit
Aug, 28, 1945
Co., Pa., and South
Calif., issues to be dated
the following issues
1944t) will be opened
1944.
Bids on
dated Feb. 17,
Jan.
6.
Name
of
$334,000
6,225,000
Jersey City, N. J.
455,000
5,157,000
203,000
368,000
1,485,000
8,100,000
9,950,000
Long Branch, N.J.
Pa.
Chester,
Montgomery, Ala.
Meridian, Miss.—
Tenn.™
111.—™
Memphis,
Chicago,
Madison
Galveston,
578,000
Ark,
710,000
Texas
990,000
Smith,
Port
.
111—
Co., 111.
Chicago,
Contra
tChester
943,000
8,553,000
Cal._
Calif.;
Pa.,
1944.
the
announcing
In
offerings,
Krooth, General Counsel
FPIiA, stated as follows:
of the
Each issue of these notes
by
secured
be
sold in 1934 to the Re¬
was
tion
to
a
Requisition
Authority,
ing
administering
the
which is now
the functions of
United States Housing Au¬
Under this Agreement
FPHA
commits
itself to
thority.
the
make
full
available
funds
of
payment
the
principal
of each of the re¬
and interest
spective
the
for
issues
of notes to the
of such notes
(who is selected by the pur¬
chaser) prior to their matur¬
ity.
Each issue, therefore, has
paying
agent
other,
matter which local authority
the same security as any
is the issuer.
of
view
civilian
air
mended
that
the
curtailment
of
traffic, it is recom¬
in mailing any bid
desire to make, you check
mailing
schedules carefully to
you
assure
that
ceived
by
thority
the
bid
will
be
re¬
the local housing au¬
before the hour set for
cash
provide
for the
school
the
in
the
a
com¬
legal bonded
debt
•
war
ends
it
tomorrow,
reported,
metropolitan
Dallas
present
about
of
extent
the
$2,041,610 in
■ debt
funds,
the
net
$31,460,390, as
tion
payment of
the
of
area
will
1970, from the
rise to 667,000 by
The board had fallen
to
estimated city popula¬
and 414,048 for
332,200
metropolitan
area.
salaries in the midst of the de¬
pression.
cured
„
by
which
dollars.
The
has
new
sold
issue
refunding
next
year
by
mortgage
a
estate
will
properties
to
of
492,000 on Jan. 1, 1944.
On the
same date in 1936 the figure was
Within the last year
certain in¬
bankers had presented
plans to the board providing for
the refunding of the outstanding
4l/2S, under an exchange offer to
present bondholders,
but these
The
rejected.
were
board
as
of
Sept.
30
had
$35,200,000 of bonds outstanding.
Taking sinking fund balances and
accrued
tion
interest
into
$16,156,000 and the all-time peak
of $16,560,000 obtained in the fol¬
lowing year.
maturities in
1936
aggregated $1,326,000
and
for 1944 the corresponding total
will be only $957,000.
It was in
the earlier year that the county
first began to operate under the
Buckley law, requiring a pay-go
policy.
'
•
...
Bond
principal
.
considera¬
indebtedness
bonded
net
amounted to
The outstanding
of $7,-
total will reach a new low
beard, and will be payable from
proposals
un¬
in its bonded debt dur¬
ing that period.
the
the
ad valorem taxes.
vestment
policy
County, N. Y.,
been
than 50%
not be
on
pay-as-you-go
operating^ for the past
eight years has enabled the coun¬
ty to effect a reduction of more
■
secured
real
The
der which Monroe
are
millions of
valued in the many
County, N. Y., Debt
Reduction
Shows Large
and the Municipal Airport,
owned by the board,
be
Monroe
Chi¬
downtown
in
properties
cago
$20,855,256.
Dallas Plans
Atlantic City
Post-War Program
Hornblower & Weeks
Atlantic
The
City, N. J.,
is investi¬
gating the prospects of refunding
its presently outstanding callable
bonds amounting to approximate¬
which
28
on
City
will
the
of
hold
Dallas,
an
question
To Admit
Texas,
election Dec.
of issuing
Beekman
is
stocks
bank
nounced
interest
evidenced
stadt has accepted
by
a
of the
Hospital Board, has an¬
that
Ferdinand
Eber¬
Beekman
investment
Expanding
in
Hospital Fund
Elisha Walker, Chairman
Stock To Public
the Chairman¬
ship of the 1944 Maintenance Fund
Campaign which will commence
derwriting group headed by Blyth
& Co., Inc., and Merrill Lynch, early in January to raise $160,000.
Situated at Beekman and Water
Pierce, Fenner & Beane of 49,002
Beekman Hospital fur¬
shares of the United States Na¬ Streets,
nishes
hospital facilities in an
tional Bank of Portland (Oregon)
area
covering
nearly 300 city
at $40 per share.
The offering
blocks in lower New York, south
represents the unsubscribed por¬
of Canal Street.
'
tion of 75,000 shares offered to
The hospital directorate is com¬
the
bank's stockholders
at
the
same
price in the ratio of one posed of a group of business men
who have for years been actively
share for each three shares held.
concerned with furnishing health
The
announcement further
Dec. 21 by an un¬
the offering on
stated:
,
"The purpose
Through a subsid¬
States
National
Corp., it owns all of the capital
stock except directors' qualifying
shares of the Clark County Na¬
Oregon cities.
United
iary,
Wash.
"Net profits
after all charges
amounted to $4.38 per share on
225,000 shares of stock for the 1C
months ended Oct.
Sergin
Hornblower
&
Weeks, 40 Wall
Street, New York City, members
of the New York Stock Exchange
31, 1943, com¬
pared with $3.99 per share on the
basis for
same
the
calendar year
1942; $4.66 in 1941; $4.57 in 1940,
$4.22 in 1939.
According to
Foundations"
is
Cullman
Stock
York
Mr,
Committee.
partner in the New
a
Exchange
of
firm
Cullman Brothers.
.
George F. Handel, President of
Cincinnati Chemical Works,
the
appointed Chairman of
Chemical Commit¬
tee, and Otto Ness and Charles J.
Saliver, of the firm of Robert
has
been
the Drugs and
Inc., manufacturing jewel¬
co-Chairmen of the Jewelry
Stoll,
ers,
Committee.
and
the prospectus,
the bank was not
to pay Federal normal
excess
profits taxes in 1941
required
or
and 1942,
and it is estimated that
the
will be true in 1943.
same
dividends
"Current
the
at
are
$1.40 annually, but direc¬
rate
of
tors
have
adopted
a
Inc.,
Merrill
and
&
Fenner
Beane
Lynch, Pierce,
in
Lamborn & Co. Honors
Quarter Cent'y Employees
In honor of 19 men and women
who
have
gave
under¬
the
been with the firm
25
longer, Larnborn & Co,
dinner on Dec. 15 at the
or
years
resolution to Hotel
dividends at an annual rate
of
$1.60
per
share
beginning
about April 1, 1944.
"Associated with Blyth & Co.,
pay
a
Delmonieo
in
New
York
attended
by 125 persons which included the
officers and employees.
Branch
Office
Managers
attending ,the
City.
dinner
Charles
The
dinner
from
A.
out
was
of
Godsell
town
of
were
Boston,
&
Hoyt C. Bonner of Chicago, James
Co.,
Blankenship,
Gould
& F. Graves of Detroit, Walter Bentz
Blakely, Inc., Conrad, Bruce & of New
Orleans, W. Carson Rhodes
Co., Ferris & Hardgrove,
and of Philadelphia, Jack H. Tandler
Hemphill, Fenton & Campbell, of
Saginaw, and Glenn Bond of
writing
Jones
Atkinson,
are
Inc."-/.
$50,000,000
*"
Refunding Program
Portland (Ore.) Offers
tional Bank of Vancouver,
The bonds are se¬
a
first mortgage on
bid-opening.
Considering
of
salaries
of
teachers.
behind
Corpora¬
Finance
construction
$25,000,000
will
Agreement between the issuer
and the Federal Public Hous¬
In
outstanding issue origin¬
The
ally
payment
David L,
no
approximately $14,000,000 from a
sale of refunding bonds to be held
Feb. 27, 1945
:Feb
6,1945
Chicago, 111. ($9,950,27, 1945), and San Fran¬
issues to be dated Feb. 10,
Co.,
Feo.
due
cisco,
8, 1945
May
fund and
hand in the sinking
on
next summer.
Calif.
Franc.,
000
1,555,000
Costa
County,
San
Feb. 27, 1945
Nov.
8, 1944
Feb. 27, 1945
172,000
Wash.
Seattle, Wash. —'
Co.,
King
to
intention
Taking
Dallas
will .be
ready to proceed with at least
$10,000,000 in work, including a
Board of Education have
their
F. Eberstadt Heads
protection to that part of the city.,
Howard S. Cullman is President of
of the issue is to
the hospital.
keep the bank's capital and sur¬
Beekman
Hospital has
been
plus in line with its rapid growth
in business,
deposits having in¬ serving the downtown community
ten-mile) 200-foot boulevard creased from
for almost 40 years.
It was orig¬
$162,522,442 on Dec.
through the heart of the city,
inally organized in 1906 under the
creation of a new lake and addi¬ 31, 1940, to $398,585,377 on Oct.
name of St. Gregory's Emergency
tional purification and pumping 18, 1943, a gain of 145%. Giving
Hospital
of the Volunteers of
facilities for water, and miles of effect to the new financing, the
America.
bank's capital account will stand
street and sewer work.
Mr. Eberstadt, senior partner of
at $6,000,000, represented by 300,The city today has the services
F. Eberstadt & Co;, is also Presi¬
000 shares of $20 par value, and
of two national authorities to su¬
dent of the Chemical Fund, Inc.
surplus, undivided profits and un¬
Mr.
Eberstadt announced that
pervise the planning work. They allocated
reserves, $10,020,959. To¬
are
Harland
Bartholomew
and
Harold C. Conick, who on Jan. 1
tal resources as of Oct. 18, 1943,
will become United States Man¬
Associates,
of
St.
Louis,
who were
$412,641,559, compared with
were retained to prepare the mas¬
ager of the Royal Insurance Co.
$307,742,191 on Dec. 31, 1942.
ter plan, with the aid of E. A.
and the Liverpool & London &
"Organized in 1891, arid subse¬
Globe Insurance Co., Ltd., will
Wood, plan engineer of the city,
quently
absorbing
five
other
and the firm of Hare & Hare, of
serve as Chairman of the Insur¬
Portland banks, The United States
Kansas City, planning engineers
National
\Bank
of
Portland's ance Committee, in the forthcom¬
and
landscape architects. Vari¬
ing drive to raise $160,000 for the
greatest expansion has taken place
ous
citizens, committees and city in the
hospital's 1944 financial require¬
past decade along with the
officials are participating in the
ments.
development of branch banking.
Howard S. Cullman, President
development of the program.
Starting with three branches in
of the hospital, it was announced,
Plans are based on the prem¬
1933, the bank now has four in
will head the Clubs, Estates and
ise that the population of the
Portland and branches in 21 other
If
was
Chicago, 111.,
recorded
undertake a
the
of
Officials
•
to
with
pared
major financing operation next
year incident to the refunding of
a large portion of the board's out¬
Maturity
standing issue of $22,300,000 4xk%
Aug. 7,1945
Aug. 7, 1945 revolving fund bonds, which ma¬
Nov. 8, 1944 ture Aug. 1, 1954, but are optional
Nov. 28, 1944 on Aug. 1, 1944.
The entire loan
Aug. 27, 1945
will be
called on the optional
Nov. < 8, 1944
Nov. 28, 1944 date and, of the funds necessary
Aug. 1,1944 to retire the obligations, $8,000,Feb. 27, 1945
000 will come from cash currently
Nov. 28, 1944
Issue
Authority—
Asbury Park, N.J.
San
Feb.
$33,502,000.
limit of $50,000,000.
.
.
"Washington
on
a
for a sub¬
stantial saving in debt service
providing
funding
f
Francisco,
17,
permit
will
amounts
city
the
of
debt
to
consideration
|nto
sinking
costs.
■
6,1945
8, 1945
6, 1945
Nov. 8,1944. Chicago School Board
Nov... 8, 1944 Plans Large Refunding
190,000
Cal.
Francisco,
(a.l
improvement
pic¬
brighter.
Bonded
amounts
the re¬
in
its
debt re¬
structure,
fiscal
Feb.
May
Feb.
,
San
ture even
is ap¬
praised of the city's demon¬
strated
debt
paying
capacity
and its progressively strength¬
ened
year
said, which makes the tax
the in¬
When
that
vesting public generally
sultant
Nov. 28, 1944
Nov. 28, 1944
Aug. 6,1945
Orlando,
South
6,1945
Feb,
which
city collect¬
ed more than 98% of its cur¬
rent taxes.
Few special levies
are
made in the city, it was
fiscal,
the
In
not been reflected
market appraisal of
credit.
felt
is
It
Name of
at a
closed Sept. 30, the
open
the city's
of old debts
U. S. Nat'I Bank Of
faster rate.
has
position
ng
retirement
for
existing program
was effected with the city's credit¬
ors in 1936.
The view is also held
that the extent of the improved
six-year plan for
constant
nance
the
when
true
Thursday, December 23,1943
COMMERCIAL & FINANCIAL CHRONICLE
THE
2552
'
:
y ■
approval of.- the
capital stock increase was noted
Stockholders'
in
these
columns, Dec.
9,
/
/
2348.
page
Savannah.
Those honored were: Norman C;
Brittin, Charles C. Riggs, Annie
Karrigan, Ody H. Lamborn, John
J. Bohan, James Clark,
Ida M.
Connor, W. Carson Rhodes, Satur-
various im¬ and other leading national Ex¬
nino Ullivarri, Henry C. Miller,
provement bonds, is well along changes, will admit Daniel T.
J.
William
Craig,
William
F.
toward the completion of a pro¬ Bergin to partnership in the firm
Schmidt,
Charles
A.
Godsell,
ly $22,711,000, with a view to ef¬
as of Jan. 1, 1944.
Mr.
Bergin
will
gram
for post-war public im¬
George Hunn, Glenn Bond, Agnes
fecting a substantial reduction in
his
headquarters
in
the
provements to involve an outlay make
the interest cost on the obliga¬
Tamm Dopson, William H. Ligof approximately $50,000,000. De¬ firm's New York office.
SAN
FRANCISCO,
CALIF.—
tions. The city, it is said, has re¬
nante, John E. Martin and Ed¬
tails of the plan were set forth
Sutro
&
Co., 407 Montgomery ward H.
Perry.
quested the Chicago bond firm of
at a recent conference on post¬
Street, members of the New York,
Mr. Norman Brittin is the old¬
Stifel, Nicolaus & Co., to arrange
Situation Of Interest
war
San Francisco, and Los Angeles
planning conducted by the
for an independent study of its
est employee in time of service.
Public
Administration
Clearing
Oklahoma-Texas
Trust
offers Stock Exchanges, will admit Stan¬ He entered the Lamborn organi¬
finances
in order to
determine
House in Chicago.
ley
E.
Symons
to
partnership
in
interesting possibilities according
the feasibility of the proposed re¬
zation in 1899.
firm
on
January 1st.
Mr.
The
city,
it was
disclosed,
to a circular being distributed by the
financing.
plans to finance the program
T. J. Feibleman & Co., 41 Broad Symons is Manager of the Statis¬
The firm has
engaged the
through the sale of bond issues
Street, New York City.
Copies tical Department for Sutro & Co.
Stein Bros. & Boyce
services of Wainwright, Ram¬
'
over
a
period of years and,
Of this interesting circular may
sey
& Lancaster, well-known
Place York Corp. Stock
while it believes that same fi¬
be had from the firm upon re¬
New York City municipal bond
Empire Sheet & Tin Plate
nancial aid may be forthcoming
quest.
Stein Bros. & Boyce, 6 South
consultants to prepare the sur¬
from the Federal government,
Situation Attractive
Calvert
Street, Baltimore, Md.,
vey.
This company has been
the
master
plan
now' being
The first mortgage 6s of 1948 of
prominently identified in the
members of the New York Stock
evolved is based on the belief
Post-War
Appraisal
Empire-Sheet & Tin Plate Co..
financial
rehabilitation
pro¬
that the municipality will be
Exchange and other leading Ex¬
An
grams that have been worked
interesting
post-war
ap¬ offers attractive possibilities ac¬
able
to
finance the program
cording
to a memorandum pre¬ changes, have placed privately a
out for many of the larger tax¬
praisal
of
the
St.
Louis-San
Fran¬
without such assistance.
ing units in New Jersey and
cisco railroad bonds has been pre¬ pared by Hill, Thompson & Co.. block of 71,658 shares of the capi¬
The city, according to the infor¬
other states in the past decade.
pared by Raymond & Co., 148 Inc., 120 Broadway, New York tal stock of the York Corporation,
mation released at the conference,
Conies of this interesting
State St., Boston, Mass. Copies of City.
In connection with the discus¬
memorandum may be had upon formerly, known as the York Ice
already has placed its financial this discussion mav be obtained
sions
incident to the
proposed
Machinery Corporation.
request.
house in order by working under upon request from Raymond & Co.
new refunding, it was noted that
total
of
$15,000,000
Stanley Symons To Be
Partner In Sutro Go.
■■
■'
,,
'
1
'
—<—»-
-
C.
.
Volume
158
Number 4240
THE COMMERCIAL &
DIVIDEND NOTICES
bonds.
Lacking
most
shouldn't
conclude
we
that
they
cumuiated
savings
from
past
years?
The wealth of the United
States amounts to about $350,000,-
000,000.
New York, N. Y.
December 15,1943.
Philip Morris & Co. Ltd.
"Wouldn't it
theory
be reasonable to expect the pub¬
lic to spend part of that, too?
Of
inc.
A regular quarterly dividend of
$1.06 Vi
per
share
the Cumulative Preferred
on
"But
000.
Preferred Stock of the respective series
of record at the close of business on
January 17, 1944.
holders
to
of
L.
G.
business
this' year?
out
Nobody said that the public
on
HANSON, Treasurer.
ple
New
York.
N,| Y.
Y
:
December 14, 1943.,
At a meeting of the Beard of
Directors held
today, a dividend of twenty-five cents per share
wes
declared, payable December 31, 1943, to
stockholders of record at 3:00 o'clock p.
m.,
December 24, 1943.
Checks will be mailed.
,
B.
O.
counts and
Corp.
Ehni
ciated with
has
become
Ehni
the Los Angeles Cor¬
has been
investment
active
business
in
the
in
Los
Angeles for the past 20 years. He
was
previously-with Lester & Co.,
Franklin Wulff & Co.,
Inc., and
Cavanaugh, Morgan & Co. Prior
thereto he
<&
>
Wood,
was
President of Ehni
Inc., and its predeces¬
sors.-'
■... v
■
than
more
Vilas &
IFckey, members of the
York
Stock
re¬
50% in the last
and many
in
be called
can
today
and
some
fall in others can, hardly be de¬
fined by the same term.
Conse¬
a
quently, rather than actual infla¬
tion, what we have had in this
country has been merely some
rather
moderate
serious
of
prices rises, the
which
in food where the
has
been
price has gone
up
22% since the war started.
However, cotton prices have actu¬
ally been falling lately.
"Now people will say that if we
hadn't had price ceilings we would
mortgages
"Of
people actu¬
at
49 Wall
Street, New
York City, are
sending out a very
clever
Christmas Card showing
Santa Claus with his reindeer and
pack at the siding of a small coun¬
try railroad station with a modern
right now?
was good
in November because the Ameri¬
heeded
and
the
appeal
the load
save
the stores.
on
As
worrying
to
on
buy
early
the mails and
if they
inflation
But
about
were
they
would be out right now buying
their heads off, wouldn't they?
But you see they have bought
largely what they need for Christ¬
mas, not because they were in an
panic, but because they
felt that buying early was helpful
and sensible.
"The
'inflation'
term
very
ferent kinds
the
public got on to
this the scare-buying stopped and
today it is nowhere in evidence.
as
"Some
things are scarce, of
but the public has learned
that by and large they can find
pretty much what they need.
inevitable
is
that
conclusion,
the
mere
it
itself
is
of
earn¬
inflation, and will not
inflation
cause
static
a
therefore,
excess
normal expenditures is
over
not of itself
by
The
condition.
of inflation
and
fect
the
if
are
sensible
we
and
continue
price controls, making adjust¬
ments in prices and wages where
they seem wise and'fair and stop
using the cry of inflation for po¬
litical reasons, we can take it for
granted that the American public
also will continue to
they
sense
whether in
always
the good
have
shown,
times or!: in peace
" : /'-'L/,
war
times."
use
1
happening in
States.
If
the
may.
pens
worst
the
American
pressing the faith cf Vilas & people were really afraid of the
Hickey in the rails in which they quality of our currency, bonds
specialize.
V'- .' "V'V
would not be selling at the high¬
DIVIDEND
recommended
resume
individual sales of MIT
the country are reported.
intimates
that
the
"load"
sales
of
on
$100,000 had
these
question
R.
officer
of
Sargent,
February 1,
'
'
14, 1944.
The
1944
to holders of
c
record
the
at
close of business January
'/
/
"
>
-.
■■/ -
transfer books'.will not be' closed in- connection with the payment of
this dividend.
'■■■'-
■'
.
OF
CHASE
THE
Snowden
Andrews, member
CITY
OF
NEW
Exchanges, will become
a partner
Doremus, 42
Broadway, New York City, mem¬
in
De
Coppet
bers of
&
the New
York
Stock Ex¬
BANK
change, on January 1st. Mr. An¬
was formerly a partner in
Fellowes, Davis & Co. for many
YORK
years.
W. H. Moorhead
.
'
■
NATIONAL
Brill
The
stock
Corp. Looks Good
7%
of
cumulative
preferred
Brill
Corporation offers
possibilities, according
interesting memorandum is¬
attractive
to
an
sued
j
j
■
,r"
'
Buckley Brothers,
St.,
Philadelphia,
members
a!
of
the
New
Chesapeake and Ohio Railway Co.
be
sent
upon
An
extra
par
dividend
common
cf
stock
fifty cents
will
be
1943, to stockholders of record
December
20, 1943.
/
per
share
at
•
close
We
other
of
that
the
accent
fiduciary
to
seem
conviction
will
be
the
on
small
ings in the initial cost.
corporation
sav¬
A great
executives,
for example, are accustomed to
from
first
35%
year's
to
45%
the
&
■
'■
>:<"
'
;
insurance
Western
of
the
Dow-Jones
8.5%
up
19,2%
a
The
recent
record
is
currently about 433/4. If it
say 44, I would
advances to
suggest
because
for
$4.87
net
per
per
don't
there's
nothing
about that
or
Not
out.
like
it, but
sacrosanct
other stock.
any
For if the market
goes down
too will
go down,
A re¬
it
purchase level will be given
here at
a
later date.
';
*
❖
More next
:1s
Thursday.
,
—Waiter Whyte
views
expressed
do not
necessarily
at
with
of the
coincide
in
those
this
any
Chronicle. They are presented
those of the author
only.)
as
Industrial
LAMBORN & CO.
:
'
'
ft
Maryland
$5.48
stepping
I
as
sjs
Fund,
Inc.
re¬
ports net assets amounting to $5,400,215 as of the fiscal year ended
Nov; 30, 1943. This was equivalent
to
long of
bought
"A"
against a rise
Selected American
..
with
already
between 42 Mj and 43 W. Stock
JfThe
Selections.
*
Union
an¬
Sj8
by the sponsor in
issue
*
are
on
companies who provide the
nuities.
"...
Steel
*
You
of
allocation
pension plans to
20M>-211/2, stop
493/4-50 *4,
47
and
Youngstown
341/2-351/£, stop at 33.
S.
is
vantages of investment company
on
Mines
U.
Sheet
fully
safeguards and ad¬
many proven
Dome
stop
concessions
itself
own
Steel
Founders 211/2-221/2,
stop 20;
in¬
an
Foundry 28V£-291/£,
fiduciary
and
field
Our
and
19;
people in the investment
realize.
Car
are
occur
any
trustee
company
purchase
stop 27; American
not
market for investment company
shares is growing faster than
many
for
of you.
care
Pending any new market
changes the following advice
still applies:
Buy American.
do
in the load.
The
a
%
but'
belief that
bound to
are
share and
assets
of
99
WALL
STREET
NEW YORK
5,
N. Y.
compares
$6,140,427
SUGAR
or
share six months earlier.
Exports—rlmports—Futures
Dividends
Fundamental Investors, Inc.—A
quarterly dividend of 20 cents per
'.hare payable Dec.
29, 1943, to
DIgby 4-2727
and
per
Certificates, Inc.
regular dividend of 10 cents
share and an extra dividend
Of 21/2 cents per share
mon
on
the
to stockholders
-
of record Dec. 20.
Investors Mutual, Inc.—A quar¬
terly dividend of 25 cents per
share payable Dec.
27, 1943, to
shareholders of record Dec. 17. '
Enamel
41
by
T.
Broad
Copies
H. Hentz & Co.
Members
New
York
Stock
New
York
Curb
New
York
Commodity
of
J.
For
Bank
Stocks
New
offers
interesting
Feibleman
&
Co.,
St., New York City.
this circular may be
had from the firm upon
request.
Laird, Bisssll & Meeds,
120
Broadway, New York City, mem¬
bers of the New York Stock Ex¬
change and other leading ex¬
changes, have prepared an inter¬
esting
circular
entitled
"Bank
Stocks and Their Outlook."
Copies
of this circular
may be had from
the firm upon request.
Orleans
And
•
possibilities, according to a cir¬
cular discussing this situation is¬
sued
Established 1856
com¬
stock, payable Dec. 28, 1943,
Chicago
Nu-Enamel Interesting
Nu
of business
Lohmeyer, Secretary
Insuranshares
—A
Outlook
on
'
H, F.
excess
Brothers.
paid December 30,
Transfer books will not close.
'
in
request by Buckley
I
$25
York
1529
Pa.
Philadelphia
Stock
Exchanges
Copies of this memorandum will
j t>
The
by
Walnut
.
decline
holders of record Dec. 22.
Vice President and Cashier
.
MIT in
judgment
and
irrespective
made
The
drews
"*
THE
Brevits
something to do
the
trustees
shows
of the New York Stock and Curb
dividend
excess
reduction
orders.
that
investors
To Admit Ondrotts
a
in
of $100,000 from two trustees lo¬
cated in widely separated parts of
article
an
.
...
In the latest issue of Brevits two
s;<
City of New York has declared
to
relationship with
English values."
jf
of 10i per share on the 7,400.000 shares of the capital stock of the Bank,
pay¬
able
closer
a
markets
time
THE CHASE NATIONAL BANK OF THE CITY OF NEW YORK
The Chase National Bank of the
American
Exchanges, will admit John
"A good 11 months" for Selected
partnership in the firm American Shares is the record
re¬
Jan. 1, 1944.
Mr. Lucas in the
ported
NOTICES
:.'h>ov
.
able
will take
the
Shares.
■'
been
Stock
was
.
- an¬
break, se¬
envisioned,
occur.
But if that hap¬
the "stops" in the stocks
for
the
Taylor & Co.
.
now
is
Average
v
has
war
J. Lucas to
past
this
that
than
them, the reasonable prospect
paying
on
,
sfc
when
of
Admii John J. Lacas
United
not
to
the
many
could have gotten around this
year
without the railroads!5' thus ex¬
.
period of
the
comes
offer and have rallied in the face
Walston, Hoffman To
Super-Chief train alongside. Santa
Claus exclaims, "Golly, I never
and
verer
to
our
If
probable)
Investment Trusts
(Continued from page 2549)
earned dollars.
therefore, that
a
possible
creasing number of large individ¬
ual sales by investment
companies
to me,
level
J-8
followed
inclined to
seems
that
further
be
frighten the American people into
a
stampede to spend their hard"It
repeat
(though at this writing not
with
%
To
opportunity to buy
stocks will present itself. Ob¬
which
were
comparatively viously this opportunity will
strong in the past few days not come tomorrow or the
are
beginning to run into of¬ next day.
Such changes of
ferings. / It is interesting to trend take time to run their
see these
offerings coming at course and reverse them¬
an
average level of approxi- selves.
It is even
But
SAN
happened in
FRANCISCO,
CALIF.—
Germany when people literally, Walston, Hoffman & Goodwin, 265
lost confidence in the credit and
Montgomery Street, members of
the New York and San Francisco
currency of their country.
./ ■
is
that
thing that might change this into
a
dynamic - force would be to
is the kind that
"This
from
strength
by new
weakness, show signs of de¬
veloping. Certain stocks
of
'
against.
is
shares rather than
only inflation that is really seri¬
ous
this
would
because
the
range
column"
being written dullness can be expected
pointed to in the next cycle calls for
last week's column, to the ef¬ other decline,"
course,
is
being
loosely and very carelessly
There are degrees and dif¬
used.
soon
materialized.
never
warned
the
week's
last week's statement ".
As
scarci¬
things, mostly
from Washington and
emanating
Whyte
136-137;
last
the indications
of
sorts
most of which
public, again being sensible,
can
Exchange, with
offices
business
course,
ties Of all
that
(Continued from page 2550)
prices
inflation,
in
mately
Savs
ago.
rise
moderate rise
a
ings
would business be off
inflation
Santa & The Railroads
New
their debts.
The instalment debt has been
asso¬
poration, 650 South Spring Street.
Mr.
are sav¬
put money in the bank, and why
ANGELES, CALIF.—Wil-
R.
They
ally believed that inflation was
just around the corner, why would
they bother paying their debts,
(Special to The Financial Chronicle)
LOS
they
have been paid off.
"If the American
William Ebni Joins
the theorists
as
believe.
us
to reduce
three years
liam
years
coming
peo¬
ing this now.
"People are using their extra
earnings
to
buy
Government
bonds, to bolster their savings ac¬
duced
BRAND, Secretary.
Los Angeles
silly
as
have
saved that then and
OF AMERICA
Avenue,
not
are
would
VANADIUM CORPORATION
Lexington
but
actual
pockets
tremendous
certainly
much
as
their
2553
Tomorrow's Markets
Walter
^
"Fortunately the American
420
times
in
part of its huge sav¬
ings then, did they? They hadn't
invented the fancy phrase /in¬
have had a very precipitous rise
flationary gap.' Well, the answer in
prices, and that is true.
But
is that it would have been just as
the reason for this is that the pub¬
foolish for the public to spend its
lic was subjected to a series of
excess earnings then as it is now.
scares
about the
Common Stock
of
"A
most
pick
wPuld spend
There also has been declared a regu¬
lar quarterly dividend of 75C per share
on the Common
Stock, payable January
1944
why
Five years ago the wealth of the
United States was $310,000,000,-
4Vfe% Series, have been declared pay¬
able February 1, 1944 to holders, of
15,
same
it would.
course
Stock, 41/4%
Series,
and
a
regular
quarterly dividend of $1.12 Va per share
the Cumulative
Preferred Stock,
on
of record at the close
December 30, 1943.
the
on
four
people have al¬
they did eight
as
also will spend some of their ac~
PHILIP MORRIS"
Nor would
currency
(Continued from page 2528)
Call for
.
est prices in years, nor would
peo¬
ple be buying more Government
Manifestations Of
Inflation
...
FINANCIAL CHRONICLE
CHICAGO
Cotton
Exchange
of
Inc.
Trade
'
Exchange
Exchanges
Exchange Bldg.
YORK
DETROIT
GENEVA,
,f u
Exchange
Exchange,
Board
other
N. Y. Cotton
NEW
Cotton
y
y
Exchange/..
4,
N. Y.
PITTSBURGH
SWITZERLAND
Thursday, December 23,1943
CHRONICLE
THE COMMERCIAL & FINANCIAL
2554
v-
\
gold standard is
ternational
ployed.
"
elab¬
The New York economist
orates
em¬
upon
his views in a paper
published today by the Monetary
Standards Inquiry.
Prof. Spahr
says:*
states
created,"
to
nations of the world
obtain
international gold stand¬
an
international
setting up an
ard by
can
Professor Spahr,
various objections
international bank.
an
if not insur¬
mountable, problems would not,
at least need not, arise in con¬
nection with the establishment of
an international clearing mechan¬
"These
"The
related
CORP.
has
statement for 197,954
no par value.
Address—121 West St., Rutland, Vt.
Business—Operating public utility.
writers will be supplied by
public
Exchange
than
clearing
international
an
operating for the various
InterDistrict
Settlement Fund clears
house,
nations in principle as our
for
Federal Reserve banks.
our
obtain an international gold
by establishing an in¬
bank, as proposed in
may
the
cept of national sovereignty. Each
would be responsible for
nation
its
keeping
monetary
own
and pay the
penalties for bad management. No
would
lend
to
another
standard
what and when it did not
to
currently-discussed
Keynes
(British), White (U. S. Treasury)
and similar plans, which would
provide not only an international
clearing house but an interna¬
tional gold unit
(such as sug¬
gested unitas in the White plan)—
a distinctly international currency
—and various banking services by
international bank.
the
to current proposals, would
superimpose upon the participat¬
ing
ing nations an international money
and
banking mechanism which
would raise important and diffi¬
cult
questions of outside encroach¬
national political sov-
ment upon
international
No
lend.
choose
body,
partly or entirely beyond its con¬
trol,* could lend a nation's funds
where it did not wish them lent,
nor
withhold funds due it from
nations.
other
Objective values,
artificial
man-made
than
rather
values, would predominate."
Professor Spahr is the most re¬
cent
contributor to a series of
pamphlets dealing with the post¬
bank, accord¬
"An international
and
nation
ternational
the
con¬
common
fiscal affairs in order
world
the
of
nations
the
"Or
with
cordance
war' question of the settlement of
international
between
balances
nations, published by the Inquiry
directed by Herbert M. Bratter.
Other writers are Amos E. Taylor,
Frank D. Graham,
Elgin
Groseclose,
Dickson
H.
Leavens and Charles A. McQueen.
E.
E.
Agger,
New Method To Eliminate Swindlers
General Nathaniel L. Goldstein has announced
Attorney
quick method of eliminating convicted stock swindlers from
the securities business in New York, in connection with the injunc¬
a
new
granted by Supreme Court Justice William T. Collins against
tions
a
year ago
The
and revolutionary as- &
new
proceeding
the
of
pect
of fraudulent oil royalties sales through the mail.
convicted
Wachtel and Jerome H, Pomeroy who had been
Bertram
decision
court's
to
put
the
dealer
was
a
permanently out of the securities
business in New York State mere¬
ly
had
convicted
been
fraud
J. G. Bessell With
in
any
of
stock
a
criminal court, the
Attorney General stated.
"In the
*■[':
will
considered
be
time
30th.
Mr.
Bollinger will be
dividual floor broker, it
the
for
in¬
is under¬
to
Transfer of the Exchange mem¬
bership of Benjamin e. Bampton,
partner in Pflugfelder, Bampton
& Rust, which will continue as a
member firm, to Stanley Hesse,
will
be
30th.
an
considered
Peirce
will
with¬
headed
SEC
The
and
Rail Reorganization
COLORADO
New
New
York
Curb
Ex¬
from
the
opinions of Mr. Percival E. Jack¬
member of the New York
City Bar Association Reorganiza¬
tion Committee and an experi¬
son,
railroad
upon
has
&
Davis
Co.,
Brothers,
& Weeks
■
>
.
-
•
•
CO.
ELEVATOR
&
Elevator Co. has filed
registration' statement for 70,000 shares
cumulative convertible preferred stock,
a
of
stock, par $1,
issuance
for
reserved
preferred stock.
rate on preferred stock will
amendment.
Equitable Building,
Denver,
dividend
The
.
269,231 shares of
representing shares
conversion of
upon
convertible
the-cumulative
filed
be
and
value,
par
common
by
Address
—.
Col.
and through
of manufac¬
Business—Engaged directly
subsidiaries
reorganization at¬
request.
MILLING
business
the
in
82
Co.
INC.
& CO.,
statement for $4,000,000
sinking fund debentures,
15due
1958.-
1,
North Meridian
Address—941
dianapolis, Ind.
Business—Engaged
Street, In¬
*
.
principally
in
the
purchase,
processing,' packing
and
de¬
hydrating and sale of an extensive line of
vegetables and fruits.
•
Underwriting—Blyth & Co.,
Inc.,
and
Reynolds & Co. are named principal under¬
writers.
Others will be named by amend¬
,
ment.
Offering Price to the public will be sup¬
plied by amendment.
of
the
retire,
to
used
be
Proceeds—Will
100'/a %
all
amount,
face
at
the
of
2%%- promissory notes of the company in
retire
aggregating $800,000
amount of $2,000,000;
provide additional working capital.
Registration Statement No. 2-5262.
Form
to
8-1.
(11-29-43.)
Stokely
the
with
&
Bros.
amendment
its
to
Co., Inc., has filed an
registration statement
in. which
SEC
it
names
under¬
for its
proposed issue of $4,000,000
sinking fund
debentures,
due Dec.
1, 1958.
The underwriters and
amounts are; Blyth & Co., Inc., and Rey¬
nolds
&
Co.,
$750,000
each;
Goldman,
Sachs
&
Co.,
Union
Securities
Corp.,
3V2 %.
15-year
&
Co.,
Sons,
000
Co.,
New
Kebbon, McCormick & Co.,
each;
cago,
Boston,
York,
New
Inc.,
Chi¬
Stroud
&
Co.,
Inc., Phila.,
each.
Offering price to the pub¬
and
$200,000
will be" supplied by amendment.
Registration
statement
effective
lic
p.m., EWT, on
Offered—Dec.
Dec.
16,
<
,
5.30
1943.
100 and
int.,
by Blyth & Co., Inc., Reynolds <fc Co.
and
17,
1943,
at
associates.
Following is a list of issues whose registration statefiled less than twenty days ago.
These issues
grouped according to the dates
are
Lehigh Coal Officers
Laurence M. Marks
and E. H. Rollins &
York,
$300,000
each;
Hemphill, Noyes & Co., New ' York,
an'd
the Wisconsin Company, Milwaukee, $250,brook
&
ments were
tion statements will in normal
associated
become
Dec,
writers
21,
Colorado Milling &
.
without
changes, have issued an interesting
circular discussing, the cutting of
delays in rail reorganizations. In¬
abstract
asso¬
.■
associates.
&
$350,000 each, all of New York City; Esta-
Hickey, 49 Wall Street,
York City, members of the
an
registration
3V2%
year
com¬
per
cumulative
$3
Stokely Brothers & Co., Inc., has filed .a
and
$16 per share, by Coffin & Burr,
at
Cutting Delays In
is
and
Blyth & Co., Inc., Lehman
Witter & Co., Hornblower
Dean
Loeb
STOKELY BROTHERS
principal
$14.92
Inc.,
Burr,
&
Inc.,
promissory notes
-''v.
ciates.
.■■■■•<■
Copies of this interesting
circular may be had from the firm
BOSTON, MASS. —John Cecil
Donald
Coffin
of
share
of
bid
'
•.
Securities Corp., A. C.
Hornblower & Weeks,
Loughridge
&
Co.,
and associates,
Union
the
Offered—194,295 shares offered Dec.
(Special to The Financial Chronicle)
Bessell
negotiated
privately
1943,
cluded
Kuhn,
i
Chanute,
3%
from the competitive bidding rule in
Inc.,
and
by
Co.,
&
Bosworth,
re¬
-
f
•
stock
(no par)
of¬
$52.50 per share,
and
.
con¬
at
Co.
exempted the
21
Dec.
on
shares of
was
.
5%
1968,
1,
\
,'7
1943,
20,
Allyn
regard to the stock issue and approved the
Raymond,
of December 31st.
Boston
jected.
pany
Stock
There was
Harriman, Ripley &
Corp., which
by
First
The
Jr., spe¬
cial partner in H. C. Wainwright &
Co., Boston, will retire from the
as
13,
Dec.
June
■;
preferred
Dec.
plus div,
168 Parker House, Boston, Mass.,
11 a.m., EWT,
to
up
cember 31st.
firm
'
only one bid received from a banking group
partnership in Proctor,
Cook & Co., Boston, Massi, on De¬
L.
4'
,;
received by the company at
were
Room No.
draw from
Robert
par)
(no
individual floor broker.
Winslow
v
:•
Registration statement effective 4.30 p.m.,
1943.
Bids
Rejected—Proposals for the pur¬
chase of 195,000 shares of common stock
Mr. Hesse will be active as
'J.
fered
EWT, on Dec. 6,
due
(8-6-43).
convertible
provide for additional working capital.
Registration Statement No. 2-5250. Form
$6,500,000
outstanding
Offered—70,000
the
registered,
bonds. Series C.
and
price
received
;
to
pf
Registration Statement No. 2-5196. Form
A-2.
mortgage
(11-11-43).
of
sale
the
proceeds
$3,000,000
net
the
the
debentures
vertible
issue and sell privately
in face amount of its
$500,000
public
the
sale of
4%
presently
be
with
stock
common
will
company
A-2.
December
on
is
that
will
Cot-,
The in¬
terest
rate
will
be
furnished by amendment.
Proceeds from
the sale of the common stock and bonds
will be used to pay a bank loan of $150,000;
to pay cash to holders
of 24,550
shares
of
7%
prior lien
stock of Twin
State as provided in merger agreement in
an
amount equal to $110 per share plus
unpaid dividends; to acquire $40,000 of
3% debentures due Dec. 1, 1956, and $8,000 of 5 % debentures of subsidiaries and
■;'v/.
stood.
the
of
cash
.
first
,
an
Electric
Contemporaneously
ago.
issuance
December
on
stock
common
plan providing
a
&
with
from
to
the
from
sinking fund debentures, pro¬
posed to be sold privately, are to be used
to redeem on or before Oct. 15, 1943, the
into Central Vermont pursuant to
the plan filed with the Commission some
individual floor
7
Gas-
price
amendment.
by
together
received
15-year
merged
Proposed transfer of the Ex¬
change membership of William H.
Guthy to Ei Edward Bollinger
enced
Donald Davis & Go.
with
past, it was the practice
long investigations,"
said, "and finally
injunction proceedings
an
State
torney.
evidence that the dealer
upon
Mr. Eis will be
the
of
part of
integral
Vilas &
From Securities Business Used In N. Y.
State
Proceeds—Sale
an
It is understood that
broker.
be
share.
Twin
supplied
stock,
Public
England
be
Proceeds—Proceeds
post-effective
by
supplied
New
underwriters
N. Y.; Boettcher
Bosworth,
Chanutje,
..
the
to
and
com-;
Co.,
Denver;
Offering—Offering
will
Service
Co. has agreed to purchase the balance of
2,954 shares of common stock at $10.25 pei
Weekly Firm Changes
cember 30th.
price
offering
and
be
will
amendment.
The New York Stock Exchange
which all na¬
regardless" of ism with gold as the international has announced the following pro¬
posed firm changes:
their nature, are cleared at their
money for settling adverse clear¬
Transfer of the Exchange mem¬
exchange values in terms of gold ing balances.
In such clearing
through some form of interna¬ each nation would exercise its bership of the late Alex. L. Sinstional clearing mechanism.
This customary political and economic heimer to Leon L. Eis will be con¬
sidered by the Exchange on De¬
mechanism might be nothing more
rights and responsibilities in ac¬
clearing system in
tional
currencies,
stock
common
difficult,
other
others.
Principal
—
Securities
Co.,
and
and
Loughridge & Co., Denver; Paul H. Davis
& Co., Chicago, and Hornblower & Weeks,
N, Y.
■
•■
7 7
names of under¬
amendment.
Offering—The company will, invite bids
for the purchase of 195,000 shares of the
and
U-50
Rule
Union
&
sacking
grinding,
grains
farmers
for
Underwriting
are
at
Commis¬
pursuant to
bidding
competitive
sion's
Exchange mem¬
beans,
modifies
to be sold
are
of storing,
cleaning
sof common stock,
Underwriting—Shares
other
business
-registration
a
share
bers, for many years.
N. Y. Stock
wheat,
Central Vermont Public Service Corp.
filed
ciated with L. F. Rothschild & Co.,
New York Stock
VERMONT rUBLIC SERVICE
CENTRAL
Far-flung economic is¬
BOSTON, MASS. — Henry J.
sues,
inherent in the conflicts
between
an
international State Dietrich, in charge of the Boston
office of L. F. Rothschild & Co.,
and a national sovereignty, arise
at 30 State Street, will become a
instantly in connection with the
partner in the firm as of January
proposal that a genuinely inter¬
1st.
Mr. Dietrich has been asso¬
national bank
and currency, be
ereignty.
in enumerating
and selling flour, meal, feed and
products and of buying and selling
grains, beans, coal and mis¬
cellaneous merchandise.
Also engaged in
turing
OFFERINGS
Admit H. J. Dietrich
(Continued from first page)
problems it raises, apparently no
important step forward can be
taken successfully unless an in¬
Calendar Of New Security Flotations
L F. Rothschild To
Spahr Urges Return To Int'l Gold Standard
on
course
whiclfthe registra¬
become effective, that
is twenty days after filing (unless accelerated at the dis¬
cretion of the SEC), except in the case of the securities of
Guests Of N. Y. S. E.
foreign public authorities which normally become
seven days.
Scott, Vice-Presi¬
These dates, unless otherwise specified, are as of 4:30
institute
& Co., and prior thereto was Man¬ dent, were guests on Dec. 20 of
only when actual evidence of
P,M. Eastern War Time as per rule 930 (b).
ager of the Municipal Department Emil
Schram, President of the
fraudulent practices were found
for Washburn &
Co., Inc., and New York Stock Exchange, upon
Offerings will rarely be made before the day follow¬
subsequent to the criminal convic¬
Washburn, Frost & Co., Inc.
In the occasion of admission to trad¬ ing.
v'..'.
/V
tion.
Under the new practice as
Devonshire
conduct
to
Mr.
Goldstein
Street.
formerly
was
the firm
name
the past
he
Mr.
Bessell
business
in
under
V. White, President of
Lehigh Coal and Navigation
Robert
The
of John C. Bessell
Co.
and
T.
with the Guar¬
ing
of
the
certain
effective in
P.
,
.
approved by the court the Attor^
General
can
immediately
conviction in any criminal
nqy
was
anty Company of New York.
an
There
dred"
who
were
"at least
convicted
would
be
stock
one
hun¬
swindlers
proceeded against
Hinchman & Watts To
Be
Ingalls Partners
Ralph
Hinchman, Jr. and
Watts, members of the
Stock Exchange, will
P.
in this way
it was said by Assis¬
Attorney General John W. M.
Rutenberg, in charge of the case
against
Mr.
Wachtel
and
Mr.
Samuel H.
tant
New
Pomeroy,
both of whom it was
stated had previous convictions.
City, members of the New York
Stock and
Curb Exchanges,
on
While the injunction granted is
temporary, a trial will be held on
the Attorney General's motion to
January 1st. Both were formerly
partners in Fellowes Davis & Co.
York
become
partners
in Ingalls
&
Snyder, 100 Broadway, New-York
(Special to The Financial Chronicle)
Flannery will shortly
become a partner in Barrett &
Co., 40 Exchange Place, New York
Angeles,
los
Los Angeles
become
Stock
Weedon &
been
Mr.
with
the
Flannery,
firm
for
Street,
tistical
in charge of the Sta¬
Department,
will
act
alternate for John E. Barrett.
as
Stock Exchange, has
with Crowell,
company's securities.
James E. Bennett To Admit
James e. Bennett &
bers
Co.,
of the New York Stock Ex¬
and
other
leading Ex¬
changes, will admit J. George R.
Graham to partnership in : their
firm
as
of
Jan.
1, 1944.
Mr.
Graham will make his headquar¬
change
ters at the firm's New York office
is
Thomas Ben¬
retiring from
in the firm
on
trust
trustees
certificates
capital
stock
The
"Rock
Island"
reorganiza¬
tion offers attractive profit po¬
tentialities according to a detailed
circular on the situation issued by
of the New York Stock Ex¬
associated with Bingham,
Walter and Hurry and its prede¬
cessor
Profit Potentialities
bers
ously
firms for many years.
a
for
shares of
28,000
the
Times-Picayune Pub¬
the
Business—Newspaper publisher.
Underwriting—None named.
Offering—Date
McLaughlin,-
change.
Copies of this interesting
circular may be had upon request
from
upon
of
offering
proposed
of
voting trust certificates is Dec. 27, 1943.
establish
a
voting
trust
agreement to be dated Dec. 27, 1943, and
run
to Dec, 26, 1953, with the right to
extend
agreement for an additional 10
years by a majority vote of the total num¬
ber of shares deposited under the voting
trust agreement.
Registration Statement No. 2-5266.
Form
Purpose—To
F-l.
(12-7-43.)
McLaughlin, Baird & Reuss
request.
Others
,
purchase" the new
preferred stock will be issued to common
stockholders of a record date to be named
later
at
the
rate of one share of pre¬
ferred for each 8 shares of common stock,
at a price to be fixed by amendment. The
unsubscribed stock will be purchased
by
the underwriters and offered to the public
at
a
price to be filed by amendment.
Stockholders of the company are to meet
on Dec. 22,
1943, to approve the new issue
of
$10,138,909 of cumulative convertible
preferred
stock and 488,888
additional
shares
of
common
stock,
a
portion of.
which are to be reserved for conversion
of the preferred.
Any shares not so re¬
served would be available for issuance for
oil
producing properties and for other
Offering—Rights
to
corporate purposes.
Proceeds—Net
proceeds from sale of the
preferred stock will
of the com¬
cumulative convertible
MONDAY, DEC. 27
STANDARD
Wall
Mr. Martin was previ¬
of
have filed
lishing Co., par value $100 per share.
Address—Of
corporation,
615
North
Street, New Orleans, La.
December 31st.
Exchange
Angeles
will
partnership
Co., 650 South Spring
Los
ton, is named principal underwriter.
be named by amendment.
CO.
registration
statement with the Commission for voting
Eleven
mem¬
Baird & Reuss, 1
Street, New York City, mem¬
affiliated
members.
many years
c a l i f.—
the
Horace E. Martin, member of
City, members of the New York
Exchange.
the
PUBLISHING
.
Groweil, Weedon Go.
F.
has
in
Underwriting—F. S. Moseley & Co., Bos¬
26
DEC.
SUNDAY,
TIMES-PICAYUNE
Standard
Partner In Barrett & Co.
who
ists
nett
Horace Martin Joins
John
officials
Exchange which was at¬
tended also by Alfred Poole Duffy
and Joseph E. McKenzie, special¬
at 30 Broad Street.
make the restraint permanent.
John F. Flannery To Be
common
the
in
in¬
junction and thereby protect the
public to^e fullest degree."
company's
company's
visited the floor and had luncheon
upon a
court for stock fraud obtain
The
shares.
OIL
Oil
OF
CO.
of
Co.
be added to
pany
OHIO
Ohio
has
filed
a
101,389 shares
of cumulative convertible preferred stock,
$100
par
value,
and
an
indeterminate
statement
registration
number
of
$25
share.
per
shares- of
for
common
stock,
dividend rate
The
on
par
the
preferred stock will be supplied by amend¬
ment.
to
The
meet
the
shares
of
common
stock
are
conversion
privilege of the
preferred stock and will not be offered
separately.
The conversion rates will be
filed by amendment.
Address—Midland
Building,
Cleveland,
Ohio.
Business—Direct activities are
the
refining
troleum
and
marketing
and products
of
principally
crude
pe¬
derived therefrom.
to
be
the general funds
available for working capital,
capital expenditures and
general corporate
purposes,
Registration Statement No. 2-5267.
A-2. (12-8-43).
Standard
amendment
Oil
to
Co.
its
Form
of Ohio has filed an
registration statement
the i^nderwriters on
offering of 101,389 shares
listing
the proposed
cumulative
of
(par $100) as
follows: F. S. Moseley &-Co., 10%; Blair
&
Co.,
1.50%; Blyth & Co., Inc., 4%;.
H. M. Byllesby & Co., Inc., 1.25%; Coffin^
&
Burr,
Inc.,
1.25%; Curtiss, House &
Co., 0.75%; J. M. Dain &
Co., 0.75%;
Paul H. Davis & Co., 1.50%; Estabrook &
Co., 1.25%; Fahey, Clark & Colt. 0.75%;
Field, Richards & Co., 1%; First Boston
convertible
preferred
stock
Volume
158
Number 4240
:
Corp.,
10%; First Cleveland -Corp.;
Harriman Ripley & Co.,
Inc., 4%; Harris,
Hall & Co;, Znc;, 2% ;
Hawley/Shepard &
Co.,
2%;' Hayden,
Miller
&
Co.,
3%;
Haydpn, Stone & Co,, 1.25%; Hornblower
& Weeks,
2.75%; W. E. Ilutton & Co., 2%;
Kidder, Peabody & Co., 2.75%; Lee Higginson Corp., 4%; Mackubin, Legg & Co.,
1.50%;
McDonald-Coolidge
Laurence
M.
Marks
&
Registration Statement No. 2-5245. Form
A-2.
TION
300
Maynard
373
H.
Murch
Co.,
StT Co.;
1.25%;
Shields
&
Co.,
4%;
2.50%;
Union
be
Oct.
due
31,
1973;
;.
South
LaSalle
Street,
"
'
,•
Chi¬
•»,
stockholders
ous
stock
the
to
public
will
.
be
supplied
other
dealer
or
lines, inc.
Lines, Inc., filed
Air
suant
registra¬
tion statement for 105,032 shares of
4>/2%
cumulative preferred stock, $100
par value
—convertible
prior
Address—5959,
;;
to
a
its
1954.
South
Avenue,
,
Inc.
is
named
will
principal
be: named
by
for
the
holders of its
subscription at $100
at
the
for
4»/2%
at
held
common
of
Dec.
of
by
to
are
preferred
series,' and
stock,
100,000
$10
208,446
to
value,
par
shares" of capital
to
be
stock,
$10
into
be
shares—against
of
2,000,000
par—and
present
to
proceeds—To
porate
capital
of
and
used
stock,
$5
authorized
continue
be
is&ue
authorized
of
officers
2,500,000
be
to
but
reserved
employes.
for
general
purposes.
cor¬
S-l.
(12-9-43).
and
Associated
to
regis¬
a
of
$100 each,
with
4,000 installment payment
units
of $100, without insur¬
v
/.'■/-'■
and
certificate
ance,.-
..
•
Address—506 Olive Street, St. Louis, Mo,
Business—Investment trust.
Underwriting;—Associated Fund, Inc.,
named
■'
sponsor.
;■./../■'"■•
is
y
■
Offering—Date of proposed offering Dec.
7, 1943.
Offering price 100.
%
<
,
.
Proceeds—For investment.
'"
Registration Statement No. 2-5270, Form
(12-10-43).
C-l.
MONDAY, JAN. 3.
STREET
Broad
Street.
registered
INVESTMENT
Investing
gold
100,000
..Address—65
shares of
Broadway,
New
investment
the open-end type.
Offering—As soon as practicable
date
of
registration
market.
.1"
Proceeds—For
will
per
be
mined
more
or
BONWIT
unknown
are
TELLER,
cumulative convertible
and
par
cludes
88,913. shares
for
issuance
us.
of
5V2%
of
of
of
The
common
latter
stockholders
the
reserved
common
conversion
of
the
cumulative., convertible
preferred
registered, at the present. rate of
conversion, which may vary from time to
time in the event of certain
contingencies.
issued and outstanding and
the offering does not represent
ing by. the company.
Address—721
Fifth
new
oL
the
Such
and
Avenue,
specialty
New
the
preferred
and
stores
the
Co.,
New
York
underwriter
common
for
stock.
sued
and
chased
shares
outstanding
by
*
the
are
and
presently
are
underwriters
being
from
is¬
Atlas
Corporation and its subsidiary Rotary Elec¬
Steel Cq.
Atlas Corporation, directly
indirectly,
has
been
the
company
controlling
since its or¬
Proceeds—Proceeds will go
to the selling
stockholder
of
the
issue
east
con¬
and
the * company
of $100 for
each
13,
:
■
share
of
1943, to defer
•.'
DERBY GAS
ELECTRIC
&
and
outstanding,
and
being offered by
-;/ /
-.
; /
./
CORP.
Corp.,
utility
the
shares
investments
Public
Ave.,
Miami
subsidiary
of
Amerlcar.
Bond
&
most
of
the
territory
Florida
of
along
the
(with
exception oi
and other portion!
area),
SEC's
Public
Utility Holding Com¬
Act.
Names of underwriters
and
public, will be supplied by postto
amendment
registration state¬
ment
will
Proceeds
be
applied
as
follows
853,170,000 to redeem at 102V4, the $52,•
900.000 of company's First Mortgage 5s o)
1954; $15,693,370 to redeem at $110 pe)
diare,
142,667
the
preferred
87
to
be
shares
stdck, no
supplied
of
company'!
Further
par.
by
de¬
post-effectlvt
amendment
Registration Statement No. 2-4845.
Font
ganization.
1943, to defer
Amendment
filed
date.
Nov.
23,
'
'
1943,
Power
to defer
to
collateral
trust
bonds
series
Corporation has filed
registration statement for 8,040 shares
of capital stock, minimum stated value of
Business—Investment
New York.
-
"
March
company
operating
engaged
in
in
Illinois,
the
public
electric
effective
through
to
the
be
to
pursu¬
Price to
U-50.
to
proposes
notes
funds
to
mortgage
April 1,
175,100
its
bonds
as
1944,
follows:
•
amount
interest
of
the
addition,
off
pay
funded
two
has
debt
Series
redeemed
tric
sale
Corp.
interest
and
Dec.
on
recent
by
in
Iowa
to
offered
000.
The
1943,
$500,000
amount
of
its
issue—to
from
sists
of
redeemed
first
and
Series
A,
&
its
be
1,
mort¬
pay
sold
from
the
competitive
bidding
proposed
$65,000,000
first
bonds.
I
I
effective
Nov.
15,
rule
the
on
and
1943,
INSURANCE CO.
Home
20,000
value
OF HAWAII,
shares of .common
filed
of
which
warrants at $30 per share,
tional
upset
1944,
full
and
interests
price
of
such
or
of
directors
in
excess
tributed
to
shares
will
$30
representing
auctioned
be
per
share
on
an
31,
are
tional
interests
not
exercised
are
sold.
or
If
D
to
Business
sponsored
date.
MUTUAL
Utility
in
56,945,
5,000.
be
received
of these securities.
Holding
One
—
Exchange
;■
;/
The
—
in
Dec,
20,
of
INSURANCE
Committee
common
of
California.
of
Pacific
stock,
Mutual
Address —Of
an
Los
523
West
Form
to
1943, to defer
CALIF.
Sixth
sal.e of
tured' gas./'
■
electric
and
energy
St., Los
■
/;
-
sealed proposals
reg¬
the
insurance.
is
in
called
plan
and
Angeles, Calif.
-*•
Co.
held by
objectives
main
to
them
tion
shares
the
of
affecting
vote
the
connection
and
with
agreement
reinsurance
the
of
Pacific
it.
and
the
of
(This list
filed Dec.
Invited—The
written
chase from
of
no
13,
1943, to defer
solicitation of offers to buy any
'
Corporation
Corp.
for
Proposals
pur¬
as a whole,
Derby Gas & Electric
to
are
be
submitted
Copies of the Prospectus
to
Ogden Corp., Room 510, 1 Exchange Place,
Jersey City, N. J., before 12 o'clock noon,
EWT,
Jan.
on
Amendment
3,
undersigned
BOND
Dec.
7,
1943,
to
MORTGAGE
CO.
;
OF
of
shares
First
Glendale,
Incorporated
Bond
of
&
common
Mortgage
Lehman Brothers
Blyth & Co., Inc.
Hornblower & Weeks
Dean Witter & Co.
Paine, Webber, Jackson & Curtis
Cal.
Address—1618
Glendale,
|
CAL.
for. 1,400
stock
of
be obtained from such of the
Coffin & Burr
\
&
Logan, voting trustee, has filed a
registration
statement
for
voting
trust
capital
may
registered dealers in securities in this State:
defer
C.
certificates
as are
1944.
filed
GLENDALE,
O.
share
is invit¬
the
it of 91,577 shares,
shares of
par
Corp.
Ogden
proposals
South
Brand
Stone & Webster and
Boulevard,
Cal.
Underwriting—None-named.
Offering—Date of
delivery of
voting
proposed
trust
offering
oi
certificates
is
Chas. W. Scranton & Co,
Blodget, Incorporated
Graham, Parsons & Co.
Whiting, Weeks & Stubbs
Incorporated
January.
Purpose
into
a
1939,
which
trust
trustee..
1,
the
desirous
an
Certain
stockholders
voting trust agreement
by
voting
Nov.
—
Said
1942,
stock
of
they
with
O.
voting
and
the
period
create
as
and
the
Pressprich & Co.
The Wisconsin
on
owners
trust
R. W.
Putnam & Co.
Vermont Securities, Inc.
a
voting
terminated
holders
in
May 26,
on
to
Logan
trust
deposited
extending
additional
agreed
C.
entered
are
the voting trust "for
of five yeafs from
December 22,
1943.
Company
Wyeth & Co.
Insur¬
is'incomplete this week)
194,295 Shares
Price $16.00 per
(9-15-43).
Life
effective date.:
equipment
later.
sealed
by
so-
rehabilita¬
(2-19-43),
Amendment
later,
Bids
ing
com¬
held
said
mutualization
Mutual
Common Stock, No Par Value
Registration Statement No. 2-5213. Form
S-l.
the
California.
Offering—Terms will be filed by amend¬
ment
However,
of
securities
Registration Statement No. 2-5098. Form
F-l.
Central Vermont Public Service
for- the purchase or
shares.The result
per
Insurance
Spring
office,
Angeles, Cal.
manufac¬
Underwriting—Ogden
Corp.,
after
the
registration becomes effective, will publicly
$1
par
Life
agreement places no lim¬
the powers of the committee
upon
vote
ance
nor a
filed
Purpose—The
sinking fund, deben¬
offer to sell
have
issuer 626 South
Angeles, Cal.
Executive
St.,
one
5 % %
as
Business—Life
OF
LIFE
F.
E; Rand
and
Leslie
the Pacific Mutual Share¬
Jersey
is
engaged
generation/distribution
the
and
Place,
Form
1943, to defer
Company
.:N;/
the
.
CALIFORNIA
The offering is made only by the Prospectus.
company
and
by
.
Protective
itation
Proceeds—For plant site, plant
and working capital.
This advertisement is neither
accordance
be
500;'
Tracey,
not
are
to
Barile,
of
Balch,
share,
investment.
filed
OF
C.
Co.
by
Processing
and
distributing
dairy products.
■'•/'
Underwriting—Dean Witter & Co.
frac¬
shares sold
will
PACIFIC
trust/
Creamery Co. of Calif, has
Address—Los
whose
L.
Amendment filed Dec. 20,
shares
units.
date.
istered $350,000
tures due 1955,
$30 per share will be dis¬
stockholders whose subscription
amounts
F.
a
selling
Names
registration statement
with
the
SEC
for
voting trust certificates for 508,200
(11-15-43).
Knudsen
date as board
determine and proceeds
Co.,
a
St., Oakland, Cal.-
KNUDSEN CREAMERY CO.
frac¬
at
Jan,
and
Edward
are:
effective
mittee
of
rights
13th
Proceeds—For
Amendment
subsequent
may
plan—Series
investment
Registration Statement No 2-5255.
effective
representing warrants which are not exer¬
cised
450,000
Underwriting—Trust fund
Securities, Inc.
Offering—At market.
C-l
shares to be taken by
Castle and
Cooke, Ltd., for investment;
6,407
shares
to
be
taken
by Hawaiian
Trust Co.,
Ltd.,
for
investment;, shares
con¬
&
the
to
share.
per
stockholders.
holders
to
Insurance
7,683
be
equipment,
Kirkland
proceeds
Marie
Waggener
820
1,400
Business—Investment
V
to
outstand¬
production
electronic
$3,125
Proceeds—All
|
has
for
create
Underwriting—No underwriter-named.
Offering—Stock is to be offered to stock¬
holders through
Incorporated
statement
payment plan—Series
400,000
investment
units;
Address—416
/
insurance.
Securities
registration
a
create
has
Present
and
net
them
CO.
T
stock,
cent
one
stock
and
named, underwriter.
Mrs.
A.
units—single
$20.
Business—General
•
units—accumulative
LTD.
of Hawaii, Ltd.,
Insurance Co.
registered
par
Form
(12-2-43.)
of
issued
Registration Statement No. 2-5264.
S-l.
(12-1-43.)
SECURITIES, INC.
Insurance
Registration Statement No. 2-5265.
stock,
shares
date.
INSURANCE
;
...
investment.
Television Corporation
statement
for
common
to defe'
tion is named sponsor.
Offering—At market.
j
■
Casagrande, 5,000; Dudley E.
Foster, 1,000; Mrs, Margaret Foster,
980;
Mrs, Florence Freese, 1,000; Joseph J. Neri,
selling
•
filed
defer
Cora
500;
,
Amendment
to
"
Mrs. Janet M. Van
Meter,
exemption
mortgage
&
stockholders
by
Mrs.
at
|
collateral
radio
is
selling
Oct,
on
will
for
1943,
registration
of
sets.
of
and
stockholders
I
21
the
TELEVISION
already
share,
Hearing Set—The SEC has set a hear¬
ing for Dec. 27, 1943, on -the request of
Dec.
6,
Underwriting—Jenks,
the
filed
of
work.
Offering—Price to the public is $3.75
Dec. 1,
1943, $994,500 face
underlying mortgage bonds.
company
Dec.
&
The
are
Phila.,
Elec¬
entire
refunding
and
and ^payment
obligations
development
manufactured for the Army and
Navy.
proceeds
Gas
Iowa
the
in
'
a
receiving
Electric Light Co.
Light Co. for $15,220,-
&
thereof.
share.
per
Address—2600 West 50th
Street, Chicago.
Business—Production and sale of radio
redeem
Moines
company
of
1943
Illinois
Des
Power
bonds,
maturity on
entire
1,
drilling of wells
ing
$73,196,022,
will
amount
Continental
the
and
expenses
of
filed
shares
value,
par
$15,827,400
face
refunding mortgage
B—the
of
of,
named.
date.
filed
70,925
including
amount of its first and
bonds
is
drilling
part
incurred
Majestic Radio
has
1944, $39,C, 5%, due
or
face
the
on
laws
purpose
CORPORATION
on
amount.
at 104%. %
1,'
issues
company
for
or
MAJESTIC RADIO
and accrued interest,
$17,321,900
all
effective
redemption cost exclusive of accrued
qr
of
Redeem
face
Series
in
organized
the
the
treasury
refunding
1953,
and on June
face
its
and
$30,681,500
1, 1956, at 105%
Total
of
first
6%, due April 1,
interest,
Dec.
portion
a
redeem
Series A,
In
and
for
and the operation
gas
Amendment
from
the sale of bonds, with
$4,000,000 to $5,000,000 to be borrowed on
bank
shares
Registration Statement No. 2-5256. Form
S-2. (11-18-43).
the
use
was
under
engaged
and
company
supplied by amendment.
Proceeds—Company
been
used
of
bidding
Rule
has filed
20,000
ject to cost of sale of issue.
the
sell
for
Proceeds—All proceeds go to
issuer, sub¬
Proceeds will
supplied by
proposes
Commission's
proceeds
gas
be
competitive
public will
net
be
1940,
Delaware
Underwriting—None
Offering—Price $35
amendment.
Offering—Company
bonds
and
11,
of
for .oil
utility
:
Underwriting—Names will
post
has
Street, Pecatur.
•/','• 7
•
■
business
company.
Underwriting—Graham-Newman Corpora¬
HOME
CORP.
statement
Business—Corporation
due
State
Business—An
5.30
Address—Caples Building, El Paso, Texas.
.
Graham-Newman
S-5.
effective
1943.
stock.
common
be
Registration Statement No. 2-5237. Form
(10-23-43).
CORPORATION
$50 per share.
Address—52 Wall Street,
registration
of
Co.—name
Address—134 East Main
111.-
'/ z
-
a
Proceeds—For
8,
KRUPP-FLAHERTY OIL
a
S-l.
GRAHAM-NEWMAN
statement
Dec.
on
1935,
primarily
of
stockholders.
10,
Nov.
on
gage
19-17-41 »
\2
effective
Iowa
and
and
uiiermg—The securi¬
ana
to
tails
Dec.
EWT,
p:m.,
1973.
Share
registered are to be sold by companj
the competitive bidding Rule U-5C
the
Form
for the account of the
or
They are to be sold by Ogden
part of its plan to dispose of its
as
of
the
sup¬
mder
of
(10-27-43).
date.
be
Florida
pf
filed
date.
Illinois
dividend
will
Address—Honolulu, Hawaii.
shares
stock will be
sum
For
the
Second
(Electric
Jacksonville
ties
the company
and
of
the
E.
Light
coast
(11-18-43).
Registration
ILLINOIS IOWA POWER CO.
^
S.
Underwriting
and
is
exchanged
capital
by
retired.
the
on
is an operating public utility, en¬
principally in generating, transmit¬
distributing and selling electric en(also manufacture and sale of gas)
serving
pres¬
represented by such share.
:/
/
Registration Statement No. 2-5241. Form
pur¬
tric
and
to
count
Co.
of
both
the
preferred
and
common
stock will be supplied
by amendment.
The
prospectus
offers
the
35,565
shares
of
5V2% preferred and 20,000 shares of com¬
The
less
issued pursuant to offer, the sum
of $1 will be deducted from capital sur¬
plus account and credited to capital ac¬
Offering—The offering price to the pub¬
stocks
unless
common
of the
in
lic
mon
srgy
if
effective
ant
ting,
company,
stock
and
stock,
York
/
Underwriting—Allen &
City, is named principal
both
the
preference
the
reduced
share
FIRST
States.
the
not
debentures
proceeds .to
shares of
Preferred
rates
System)
stock offered will consist of shares
be
each
the
Debentures,
Business—This
the
Amendment
gage
registered
Cumulative
Interest
effective date.
Business—Owns and operates one
United
de¬
of
the procure¬
and
debentures
preference
retired
•will
financ¬
City.
outstanding/large
of
warrants
and
senior
new
income
common
in¬
5'/2 %
are
serior
commitment for the purchase of
stock not subscribed for by
the
all
registra¬
a
stock
The shares
holders
purchase
Proceeds—The
Invite
shares
shares
the
upon
debentures
new
exchange
stockholders
clared effective bv
of
ment
filed
share.
per
date
CO.
rate
exceed-
tingent upon the exchange offer being de¬
preferred stock, $50
108,913
stock,
$1
deter¬
INC.
Bonwit Teller, Inc., has
statement for 35,565
value,
to
of
shares
Par.
Address—25
&
Registration Statement No. 2-5257. Form
S-l
1, 1943, to Illinois Power
Co.—has registered $65,000,000 first mort¬
Fla.
Power
be
'<
Registration Statement No. 2-5260.
(11-26-43.)
on
underwriting of these
of the bid opening will be filed
by amend¬
tion
par
whose
been
the
1,
common
Business
but
ago,
not
and
of
not been
not
indebtedness
offer
stock
common
Address
have
the
certain
a
interest
income
to
EWT
p.m.
LIGHT
&
on
the preferred
plied by amendment
The company reserves the right
City, N. J.
We present below a list of Issues
whose registration statements were filed
140.000
Bonds
will
.
changed
rate
57,250 shares of the preference stock
the offer.
The proposal to issue
sale
UNDETERMINED
or
sale
March
has
will
The
other
under
Mortgage
Oct. 1, 1971; $10,000,000 Sink¬
Debentures, due Oct. 1, 1958,
$100
accept
public
dates
to
5:30
&
Light Co.
$45,000,000
First
Stock,
terms
by post-effective amendment..
Proceeds—For capital and surplus.
of
sinking fund
due
The
but
annum.
and
company,
to
revoke
within
A,
debentures
subordinated
company;
investment.
DATES OF OFFERING
days
debentures
the
of
5 y2%
Series
determined,
bentures
Act
offering
certain
$5,500,000
serior
new
proceeds
senior
new
4%%
with
twenty
under
sell
after
/./
(12-15-43.)
.
common
of its common stock without par value with
the
SEC.
This
stock
is
already issued
/Registration Statement No. 2-5271, Form
A-2.
of
com¬
statement.
■
.•
and
common,
Derby Gas & Electric Corp., a subsidiary
of Ogden Corp.,
registered 91,577 shares
City.
/Business—Diversified
effective
the
outstanding.
now
the
finally
effective
stock.
York
out¬
has
pany, of
At
and
Amendment/filed Dec.
capital
of
proposes,
issue
debentures,
1948,
of
%
CORP.
Corporation
presently
shares
face amount of 20-year
S-l.
BROAD
the
new
senior debentures,
together with
funds, to the redemption of the out¬
standing debentures.
There are $7,100,000
payment,, certificates
insurance,
certain
stock
such
also
apply
common
Inc., has filed
that
due
Fund
and
other
any
FUND, INC.
Fund,
states
shares
sell
and
ment of a
tration statement for 5,000 full paid certi¬
ficate units of $100 each; 1,000 installment
of
share
the
ent
ASSOCIATED
additional
common
WEDNESDAY, DEC. 29
oonds,
two
stock purchase warrants
common
company
than
-
Registration Statement No. 2-5269. Form
v
each
under
common
conditions/ to
common
to
statement
principal amount of
authorize
corporation
of
and that authorized
shares
common
saie
to
the
increased
2,817/ shares
unissued
for
of
principal
and
prior preference stock. The
proposes,
issue
The
on
management
shares
value,
par
thereof
of
the
com¬
stock not taken up by the warrant holders.
amendments
Also
stock
changed
number
shares
for
effective
Power
SEC
2555
underwritten
Krupp-Flaherty Oil Corporation
statement
POWER
Florida
•ffective
29,
on
for
filed
presi¬
Co.
are
Francisco.
deficiency
FLORIDA
pany
ex¬
Stockholders
$100
debentures
the
Mortgage
1943.
9,
price
will
vote
Oct.
of
condi¬
Dec.
200,000 shares of cumulative
stock,
$100
par,
issuable
in
stock
shares of
of
San
notice
gaged
shares
and
stock
common
of
business
amendment.
1943,
in
tions, to issue to the holders of the 625,340
warrants
authorize
the
pur¬
entitling the holders in the aggregate to
purchase, at a price to be announced; later,
3 p.m. on Jan. 10, 1944.
Under¬
will purchase unsubscribed shares
them to public at price to' be
22,
of
standing,
preferred
such
&
auction
*
S-l.
Registration
shares
offer
named
to
close
of
for
stock
preference
basis
income
cumulative
company
stock,
filed
pay
exchange.
prior
the
on
registration
share, pro rata,
a
of
subscription
6%
corpo¬
common
shares
seven
shares
the
The
writers
And
100
at
1943.
pire
of
rate
each
record
stock
shares
amendment.
Offering—The 105,032 shares of
are being offered by the
to
Co.,
underwriter.
preferred
ration
cumulative
amount • of.
&
preference
of
income debentures
mon
transport, system.
Underwriting—Harriman Ripley
commission
a'
of
offer
an
right to exchange
new
Business—Air
Others
6%
the
Cicero
to
will
company
Offering—The company offers to
the
holders of the outstanding 67,373 shares of
Chicago.
:
dealers
.
-
deposit of shares
air
United
and
manager
selected
to
TUESDAY, DEC. 28
united
products,;
Underwriting—Paul
H.
Davis
&
Co.,
Chicago, is named principal underwriter,
by;
director and
Bond
Statement No. 2-5215. Form
(9-20-43).
Registration
originally
ing
..
consists
common
unsubscribed
present a
at
Registration
with
White, Weld <te Co., 2%.
%
.The
dividend
rate
on
the
preferred,
conversion, rate and offering price, first to
and
at
par
67,cumulative prior prefer¬
Business—Business
amendment,
-
to
generally of
manufacturing and selling asphalt roofing,
shingles and related products,' wallboard
and gypsum products, boxboard and vari¬
and
;
has
of common stock,' $1
certificates of deposit for
Address—120
111.
as
is
F-l.
Corporation
shares
and
cago,
Barney &
Corp.; 2.50%,
CORPORA¬
stock.
ence
Smith,
Securities
act
tee
with O. C. Logan continuing
voting trustee.
The voting trus¬
1942,
of, First
Glendale, Cal.
:
Products
shares of 6%
1,
dent
registration statement for $6,737,4%
cumulative
income
debentures
value,
1%; Paine, Webber, Jackson & Curtis,
2.75%; Arthur Perry & Co., Inc., 1.50% ;
filed
a
134,746
Ohio
'
"<*
/
;
PRODUCTS
(subordinated)
Co.;
Co.,
defer:.effective .date
.......
Certain-teed
filed
Nov.
to
.
to
1943.
CERTAIN-TEED
1.50% ; Mellon
Securities Corp., 4% ; Memll
Lynch, Pierce,
Fenner & Beane,
2.75%; Merrill, Turben
& Co,, 2%;
Morgan Stanley & Co., 10%;
&
(10-29-43).
Amendment
Dec.. 15,
2%;
Co.,
THE COMMERCIAL & FINANCIAL CHRONICLE
.
.
Brush, Slocumb & Co.
,
/
Markets
Firm Trading
BRAZIL
A
For Dealers
Teletype—N. Y. 1-971
IIAnover 2-0050
PERU
-
■
•'
'
v
Bendix Home
CO- INC.
r ARL MARKS &
FOREIGN SECURITIES
Harvill
Members
the re¬
greatly
Robert C. Stanley, Chairman and
stated
production and use of alloy
The trend in most cases
the Sudbury steels.
district of has been in the nature of lowered
Canada, where nickel content* The development
the most im¬ in the United States of the Na¬
portant known tional Emergency grades of steel
nickel
de¬ of lower nickel content is most
nickel
in
posits are lo¬
cated, has in
recent months
10%
peak
dropped
below
broad¬
have become
steels
ened. '
due to the
the
the installation of surface and un¬
c o n
was
t i
n u
ed.
decline
e
of
effects
short age
Robert C. Stanley
labor
of
well
as
the
as
Nickel this year
completion of its extensive
war
expansion program involv¬
ing opening additional ore prop¬
erties, sinking of mine shafts and
"T h
conse¬
of having to use many new
inexperienced workers.
quence
neared
plant
derground
well
as
equipment,
and
the enlargement of con¬
as
centrating, smelting and refining
works.
Through this plan the
company's capacity has been in¬
"The
demands of the United creased by about 50,000,000 pounds
of nickel per year over the 1940
Nations' war program for nickel
The
entire
expansion,
have been met.
Control of dis¬ output,
tribution by governmental author¬ costing approximately $35,000,000,
ities in Ottawa, Washington and is being financed with the com¬
London mastered what appeared pany's own funds. It must be real¬
be
to
critical
a
in the
These authori¬
situation
supply of nickel.
ties
also
made
use
ma¬
accumulated
that
industries
within
of scrap
had
which
terial
pro¬
were
equipment in order to
supplement the supply of primary
metal. It is understood that in the
ducing
war
current ingot production of alloy
steel within the United States, the
United
Kingdom
Canada
and
about half of the required nickel
obtained from revert and pur¬
is
chased
scrap.
has
"There
of
the
As
been
recent
easing
restrictions in other metals.
war
demands
war
for
nickel
decline with consequent easing
television set,
the picture will -be larger than
most of those available .today, and
some receivers may provide a pic¬
ture as large as the average road
map," Mr. Smith said. "You will
probably have the television set
in your living room, and you'll
turn the lights down, but not out,
when you look at it.
In New
York, Philadelphia and other At¬
"In the post-war
It
is
requirements.
estimated
that consumption
by the United Nations
this year will be nearly double
that used by those countries in the
of
nickel
pre-war
peak
The largest
year.
continues
consumer
to
be
the
United States, with Great Britain
the next sizable
of the United
Canada
70%
of
are
user.
Steel mills
States, England and
currently taking
the
new
nickel
over
of
these
in
nickel
essential
war
applications, industry has gained
a
far greater knowledge of the
metal's advantages and this will
be reflected in peacetime demand.
"Many changes have been made
in the specifications which govern
V
several
and scenes from
the United
war
States throughout the
have remained at levels pre¬
vailing for
Produc¬
many years,.
tion costs have risen and
cial
burden has been
finan¬
a
assumed in
expanding operations.
"After victory is won,
industry will be in
a
share
in
war
substantially
prosperity
—
a
the nickel
position to
any
post-
which cannot be attained without
tolerant
cooperation between gov¬
ernment, management and labor."
Calendar of New
Canadian
71
Broadway N. Y. BOwling Greeo 9-7027
..,.2535
Teletype NY 1-61
Security Flotations.2554
Securities,,....,.,..... .2537
choice
within
have
#
Railway
Bought
Members
Corporation and other re¬
groups to link television
transmitters
together, and these
television audience in the
United
Qtwted
~—>
30
jv.
Pine
f.
Security Dealers Ass'n
Street, New York 5
Tel. WHitehall 4-7970 Tele. NY 1-2218
Philco
search
Sold
! L. D. SHERMAN & CO.
been developed by
already
—
Pfd.
&
Com.
stations
relay
a
Washington, per¬
Seaboard Air Line
f.
BUY WAR BONDS
history
made
S. F. Bond Club Fetes
by
Centra! Vermont Shares
An
Municipal News and Notes...
Our Reporter on
Utility
Railroad
.
.....2552
Service
,,
for
,2539
Markets—Walter Whyte
2550
was
of
Christmas
and is scheduled to convene
recess
at
$16
a
share.
Dec. 18 in
approving
a
concurrent
Congress
left
of
Committee*.
Frank
:
the' Entertainment
He
Weeden
The
new
assisted
was
by
of Weeden & Co.
officers
ducted at the party.
were
in¬
Frank Wee¬
den, the new President, received
the
gavel of office from retiring
President
resolution.
The
entertainment.
78th Chairman
adjourned on Dec.
three-week
a
the
radio
Lee Kaiser of Kaiser & Co. was
J.
Postlethwaite
R.
of
several im¬ Brush, Slocumb & Co. Russell Kent
through which the company ac¬ portant issues in the unfinished of Bank of America is to be the
and Frank
quired the Vermont properties of legislative stages and will have new Vice-President
the Twin State Gas & Electric Co., to confront these problems when
Barnett of Henderson & Co., Sec¬
Among these matters
there will be outstanding 323,000 it returns.
retary-Treasurer. Charles Quine
are the new revenue bill, the food
shares of common stock.
The
proceeds
of the issue, to¬
gether with the sale Of 2,954 ad¬
ditional shares of common stock
England Public Serv¬
at
the public
offering
to the New
Co.
private
sale
of
subsidy question, soldier absentee
voting and the mustering-out pay
for servicemen.
There are
bills affecting infla¬
tion on which action has been sus¬
plan
also
several
Gas
&
Electric Co. at $110
per
share and dividends.
a
York Central
Railroad, offers in¬
a
circular
issued
by
Adams
partner in Henderson, Harrison
City.
City, members of the New' York
Stock Exchange, as
of Jan. 1,1944.
■
.
Copies of this circular dis¬
cussing
may
Empire Sheet &
Tin Plate
First Mortgage
6s,~1948
the
be had
situation
upon
Adams & Peck.
in
Memorandum
available
upon
request
&
Peck, 63 Wall Street, New York
40 Wall Street, New York
acted as toast-
master. ,v.T■«
to
John S. Williamson will become
& Co.,
Co., retiring Sec¬
retary-Treasurer,
Railroad, a lessee of New
Creek
teresting possibilities according
To Admit Williamson
of Bankamerica
pended.
mortgage
3 lA%
bonds, series C, due 1973, will be Beech Creek Railroad
used chiefly for the redemption
Situation Interesting
of the outstanding 24,550 shares
The
of 7% prior lien stock of the Twin
4%
stock of the Beech
.2529
....2531
Security Salesman's Corner........
Says
Corp.
Upon completion of this financing,
which
follows
a
transaction
Governments..... .2548
Securities.
Tomorrow's
underwriting group headed
21
session
first
The
Congress
and
by Coffin & Burr, Inc., on Dec. 21 for the second session on Jan. 10.
offered publicly 194,295 shares of
Formal action to this effect was
the common stock (no par value)
taken by the Senate and House on
of
the Central
Vermont Public
Securities.,........2530
Real Estate Securities
supplied a seven-piece orchestra,
a midnight supper, beer and stage
Congress Adjourns
Until January 10
Coffin & Burr Heads
2549
Trusts
from the AWVS aided in en¬
tertaining the veterans., The club
State
Investment
Public
Bell
television
quency
Pfd.
&
Com.
esses
price and
the
$500,000
first
Bank and Insurance Stocks.
Yor,?c Stock Exchange
York, New Haven
its
period of greatest growth and ex¬
pansion when network operation
got underway, and the same prin¬
ciples will apply to television,"
Mr. Smith said.
"Ultra high fre¬
States
prosperity
INDEX
Members New
may
you
"Sound broadcasting entered
of
few are in successful operation today.
sporting events Through these links most of the
your
programs
You'll see
years.
ice
HAY, FALES & CO.
have
well
very
cities,
seaboard
lantic
restrictions.
"Prices of nickel in Canada and
made
available to those countries.
Y. 1-1719
& Hartford R. R.
Smith pointed out.
by manufacturers of war equip¬
Through the increased use
war
civilian
Xelelype N.
DIgby 1-4832
New
viewing audience, Mr,
able to the
ment.
that in the not too distant future
for
Phone
.
Many interesting new nickel uses
cannot now be publicized due to
nickel
Dealers Ass'n
Exchange PI..H- V- 5, N. Y.
40
viewiqg
haps the President making-a fire¬
side chat or sessions of Congress, the official motion pictures of the
ized
that
through
its
present
Cairo and Teheran meetings of
or variety shows and drama from
New Officials Inducted
greatly augmented production In¬
New York.
New kinds of enter¬ President Roosevelt, Prime Min¬
ternational
Nickel is
paying a
SAN
FRANCISCO,
CALIF.—
tainment may be created as a re¬ ister Churchill, and Marshal Stalin
The
San
Francisco
Bond Club
high toll in the form of non-result
of
television
just
as
the that were put on the air in New
closed its activities for the year
plenishable ore.
movies changed vaudeville and York City and relayed to Phila¬
with a party for
100 wounded
delphia and Schenectady.
In the
"Thd'high qualities inherent in the theatre."
;
•
: !
veterans from Oak Knoll Naval
various types of nickel steels and
Rapid expansion of television as post-war years, through television
The party was held
non-ferrous alloys which had been soon as the war is over will de¬ people in their own homes will be Hospital.
Dec. 7 in the Shrine Auditorium
developed during peacetime have pend upon the creation of net¬ able to see these historic events
in Oakland.
One hundred host¬
been the very properties sought works linking stations together, so as they occur."
of
the supply position, it is possible
there will also be relaxation upon
Security
Y.
Members- N.
.
■
"International
S. H. JungerCo.
technicians, mechanics, carpenters,
and other skilled laborers required to build television stations and
several times that number of people needed to manufacture receivers,
there is every reason to believe that television in. the post-war period
will be a bigger industry than radio ever was, it was predicted by
David- p. Smith, director of research for Philco Corporation, in an
address
on
"Electronics" -before<&the
Association
of
Customers' that the best entertainment and
news programs can be made avail¬
Brokers last week.
•
prod uction,"
Mr. Stan ley
Inquiries invited
With thousands of engineers,
Through these changes, the appli¬
cations and the markets for nickel
alloy
In
Expansion
Television Field In Post-War Era
respect.
that
in
OR
1-576
yorr
new
Sees Rapid
the
prominent
5
Teletype
Bell
telephone
Enterprise 6015
2-3600
Executive
Philco
output^
"The
of
Y O R K
N E W
Ltd.,
Company of Canada,
Tuesday.
on
BONDS WITH
BIDS MADE ON
Association
Dealers
STREET,
philadelphia
TELEPHONE
REotob
Security
York
New
4 51 N ASSAU
•
previous year, despite an acute shortage of labor and
sultant inability of the industry to use to the fullest extent its
expanded production facilities,"
of the International Nickel
-
INCORPORATED
approximate the all-time high
President
HAnover 2-8780
1-1397
Y.
N.
Teletype
request1
on
Dealers Ass'n
Y. Security
Members N.
Kobbe, Gearhart & Company
High Level Despite Labor Shortage
of the
S
Corporation
Majestic Radio & Television Corp.
CO. Inc. CHICAG0r=^^==:
1943 will
Inc.
25 Broad St.. N.Y.
To Approximate
"Production of nickel in
To Alt
Appliances, Inc.
Trading markets and Information
Nickel Output
Christmas
Inc.
Allen B. DuMont Laboratories,
New York 4, N. Y.
-AFFIIIATF: CARL MARKS &
A Ittcvvy
,
SPECIALISTS
50 Broad Street
the Non-Stop Air Pick Up,
A11 American Aviation,
I
,
all issues
,r
post-war prospects in
Laundry, Electronics, Die Casting and Television fields.
Home
BOLIVIA
-
'
•
with
stocks
5
Offering"
"Our Firm
....
.
1943
Thursday, December 23,
FINANCIAL CHRONICLE
THE COMMERCIAL &
«
2556
detail
request from
Hill, Thompson & Co., Inc.
Markets and Situations
120
for Dealers
Broadway, New York 5
Tel. REctor 2-2020
Tele. NY 1-2660
@FedFRASER